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ANNUAL REPORT OF THE
FEDERAL DEPOSIT INSURANCE CORPORATION
1974
V.
A preliminary report, highlighting the Corporation's operations
during 1974, was published and submitted to the Congress on
February 28, 1975.
L E T T E R OF T R A N S M I T T A L
F E D E R A L D E P O S IT IN S U R A N C E C O R P O R A T IO N
W ashington, D.C., A ugu st 15, 1975
SIRS: Pursuant to the provisions of section 17(a) o f the Federal Deposit
Insurance A ct, the Federal Deposit Insurance C orporation is pleased to subm it
its annual report fo r the calendar year 1974.
Respectfully yours,
F R A N K W ILLE
Chairman
TH E P R E S ID E N T OF T H E S E N A T E
TH E S P E A K E R OF T H E H OUSE OF R E P R E S E N T A T IV E S
hi
FEDERAL DEPOSIT INSURANCE CORPORATION
F E DE R A L DEPOSIT I NSURANCE CORPORATI ON
BOARD OF DIRECTORS
Chairm an ............................................................................ Frank Wille
D ire cto r ............................................................... George A. LeMaistre
Comptroller of the Currency ..................................... James E. Smith
OFFICIALS
Deputy to the Chairman......................................... Robert E. Barnett
Assistant to the Director ...................................John C.H. Miller, Jr.
Assistan t to the Director .................................................... (Vacancy)
(Comptroller of the Currency)
Executive Secretary ...................................................... Alan R. Miller
General Counsel .................................................... Edward Bransilver
Director, Division of Bank Supervision................. Edward J. Roddy
Chief, Division o f Liquidation ...................................George W. Hill
Director, Division o f Research .................................Paul M. Horvitz
Controller ...........................................................Edward F. Phelps, Jr.
Director, Office of Management
Systems and Financial A u dits ............................ Robert E. Barnett
Special Assistant to the Chairman ......................Stephen C. Hansen
Special Assistant to the Chairman ............................ Edwin B. Burr
Special Assistant to the Director ......................C. F. Muckenfuss, 111
Executive Assistant to the B o a rd ............... Tim othy J. Reardon, Jr.
Decem ber 31, 1974
FEDERAL DEPOSIT INSURANCE CORPORATION REGIONS
’A
ig M H i................... .......
REGIONAL DIRECTORS
Atlanta
Minneapolis
Lewis C. Beasley
2 Peachtree St., N.W., Suite 3030
A tlanta, Georgia 30303
Boston
Roger B. West
730 Second Avenue South, Suite 266
Minneapolis, Minnesota 55402
New York
Mark J. Laverick
2 Center Plaza, Room 810
Boston, Massachusetts 02108
Claude C. Phillippe
345 Park Avenue, 21st F loor
New Y o rk, New Y o rk 10022
Chicago
Omaha
James A. Davis
233 S. Wacker Drive, Suite 6116
Chicago, Illino is 60606
Columbus
B urton L. Blasingame
1700 Farnam Street, Suite 1200
Omaha, Nebraska 68102
Philadelphia
John R. Curtis
37 West Broad Street, Suite 600
Columbus, O hio 43215
Dallas
Charles E. Doster
5
Penn Center Plaza, Suite 2901
Philadelphia, Pennsylvania 19103
Richmond
Q uinton Thompson
300 N orth Ervay Street, Suite 3300
Dallas, Texas 75201
John Stathos
908 E. Main Street, Suite 435
Richmond, V irginia 23219
Madison
St. Louis
Bernard J. McKeon
1 South Pinckney Street, Room 813
Madison, Wisconsin 53703
R obert V. Shumway
720 Olive Street, Suite 2909
St. Louis, Missouri 63101
Memphis
San Francisco
Roy E. Jackson
165 Madison Avenue, Suite 1010
Memphis, Tennessee 38103
John J. Early
44 Montgomery Street, Suite 3600
San Francisco, C alifornia 94104
D ecem ber 3 1 , 1974
FED ERAL
DEPOSIT
Main
550
VI
Office:
17th
INSURANCE
Street,
N.
W„
CORPORATIO N
W ashington,
D.
C. , 2 0 4 2 9
CONTENTS
Banking offices— bank performance— 1974
...............................
Deposit insurance participation and coverage
..........................
xi
xm
PART ONE
OPERATIONS OF THE CORPORATION
Deposit insurance disbursements ................................................
3
Supervisory a c tiv itie s ....................................................................
8
Administration of the Corporation
Finances of the Corporation
............................................
22
.......................................................
23
PART TWO
MERGER DECISIONS OF THE CORPORATION
......................
33
............................
168
Bank absorptions approved by the Corporation
Bank absorption denied by the Corporation
PART THREE
LEGISLATION AND REGULATIONS
Federal legislation (summary)— 1974 .........................................
175
Rules and regulations of the Corporation (summary)— 1974 . . 178
PART FOUR
STATISTICS OF BANKS AND DEPOSIT INSURANCE
Number of banks and branches .................................................. 184
Assets and liabilities of banks
.................................................... 205
Income of insured banks ............................................................. 227
Banks closed because of financial difficulties;
deposit insurance disbursements ............................................243
Maximum interest rates on time and savings deposits
............. 251
V II
TABLES
DEPOSIT INSURANCE DISBURSEMENTS:
1. Protection of depositors o f failed banks requiring disbursements by the
Federal Deposit Insurance C orporation, 1934-1974 ............................
6
2. Analysis o f disbursements, recoveries, and losses in deposit insurance
transactions, January 1, 1934-December 31, 1974 ..............................
7
3. Insured banks closed during 1974 requiring disbursements by the Fed
eral Deposit Insurance C o rp o ra tio n ..........................................................
7
SUPERVISORY A C T IV IT IE S :
4. Bank examination activities o f the Federal Deposit Insurance Corpora
tio n in 1973 and 1 9 7 4 .................................................................................. 11
5. Mergers, consolidations, acquisitions o f assets and assumptions o f lia b il
ities approved under section 18(c) of the Federal Deposit Insurance
A c t during 1974 ........................................................................................... 14
6. Approvals under section 18(c) of the Federal Deposit Insurance A c t
during 1974— banks grouped by size and in States according to sta
tus o f branch banking .................................................................................. 15
7. Cease-and-desist orders and actions to correct specific unsafe or un
sound practices or violations of law or regulations, 1974 ................... 16
8. Actions to term inate insured status o f banks charged w ith unsafe
or unsound banking practices or violations of law or regula
tions, 1936-1974 ......................................................................................... 17
A D M IN IS T R A T IO N OF THE CORPORATION:
9. Number o f officers and employees o f the Federal Deposit Insurance
Corporation, December 31, 1973 and 1974 .......................................... 23
FINANCES OF THE CORPO RATIO N:
10. Statement of financial condition, Federal Deposit Insurance Corpora
tion, December 31, 1974 ............................................................................. 24
11. Statement o f income and the deposit insurance fund, Federal Deposit
Insurance Corporation, year ended December 31, 1974 ..................... 25
12. Determ ination and d istrib u tio n o f net assessment income, Federal
Deposit Insurance C orporation, year ended December 31, 1974 . . . . 27
13. Sources and application o f funds, Federal Deposit Insurance Corpora
tion, year ended December 31, 1974 ........................................................ 27
14. Income and expenses, Federal Deposit Insurance C orporation, by year,
from beginning o f operations, September 11 ,1 9 3 3 , to December 31,
1974 ................................................................................................................ 28
15. Insured deposits and the deposit insurance fund, 1934-1974 ................... 30
VIII
NUMBER OF BANKS A N D BRANCHES:
Explanatory note
.......................................................................................................184
101. Changes in number and classification of banks and branches in the
United States (States and other areas) during 1974 ............................ 186
102. Changes in number o f commercial banks and branches in the United
States (States and other areas) during 1974, by S t a t e ....................... 188
103. Number o f banking offices in the United States (States and other
areas), December 31, 1974
Grouped according to insurance status and class of bank, and by
State or area and type o f office ........................................................ 190
104. Number and deposits o f all commercial and mutual savings banks
(States and other areas), December 31, 1974
Banks grouped by class and deposit s iz e .......................................... 199
105. Number and deposits o f all commercial banks in the United States
(States and other areas), December 31, 1974
Banks grouped by deposit size and State ........................................200
ASSETS A N D L IA B IL IT IE S OF BANKS:
Explanatory note
.......................................................................................................205
106. Assets and liabilities o f all commercial banks in the United States
(States and other areas), June 30, 1974
Banks grouped by insurance status and class o f b a n k ...................207
107. Assets and liabilities o f all commercial banks in the United States
(States and other areas), December 31, 1974
Banks grouped by insurance status and class o f b a n k ...................211
108. Assets and liabilities of all mutual savings banks in the United States
(States and other areas), June 30, 1974, and December 31, 1974
Banks grouped by insurance status..................... ..............................215
109. Assets and liabilities o f insured commercial banks in the United States
(States and other areas), December call dates, 1964, 1970-1974 . . .217
110. Assets and liabilities of insured mutual savings banks in the
United States (States and other areas), December call dates,
1964, 1970-1974 ...................................................................................... 220
111. Percentages o f assets and liabilities o f insured commercial banks oper
ating th roughout 1974 in the United States (States and other
areas), December 31, 1974
Banks grouped by amount o f deposits ............................................ 222
112. Percentages o f assets and liabilities o f insured mutual savings banks
operating throughout 1974 in the United States (States and other
areas), December 31, 1974
Banks grouped by amount o f deposits ............................................ 223
113. D istrib ution of insured commercial banks in the United States (States
and other areas), December 31, 1974
Banks grouped according to amount o f deposits and by ratios o f
selected items to assets or deposits................................................... 224
IX
INCOME OF INSURED BAN KS:
Explanatory note
.......................................................................................................227
114. Income o f insured commercial banks in the United States (States and
other areas), 1966-1974 ...........................................................................230
115. Ratios o f income o f insured commercial banks in the United States
(States and other areas), 1966-1974 ......................................................232
116. Income o f insured commercial banks in the United States (States and
other areas), 1974
Banks grouped by class o f bank ........................................................ 233
117. Income o f insured commercial banks operating thro u g h o u t 1974 in
the United States (States and other areas)
Banks grouped by amount o f deposits ............................................ 235
118. Ratios o f income o f insured commercial banks operating thro u g h o u t
1974 in the United States (States and other areas)
Banks grouped according to amount o f deposits............................ 237
119. Income o f insured mutual savings banks in the United States (States
and other areas), 1970-1974 ....................................................................239
120. Ratios of income of insured mutual savings banks in the U nited States
(States and other areas), 1970-1974 ......................................................241
BANKS CLOSED BECAUSE OF F IN A N C IA L D IF F IC U L T IE S ;
DEPOSIT INSURANCE DISBURSEMENTS:
E xplanatory note
.......................................................................................................243
121. Number and deposits o f banks closed because o f financial d if f i
culties, 1934-1974 .................................................................................... 245
122. Insured banks requiring disbursements by the Federal Deposit Insur
ance C orporation during 1974 ................................................................. 246
123. Depositors, deposits, and disbursements in failed banks requiring dis
b u rs e m e n ts b y the Federal Deposit Insurance Corporation,
1934-1974
Banks grouped by class o f bank, year of deposit payoff or deposit
assump tion, amoun t o f deposits, and State ..................................... 247
124. Recoveries and losses by the Federal Deposit Insurance C orporation on
principal disbursements fo r protection o f depositors, 1934-1974 . . .250
M A X IM U M IN TER EST RATES ON TIM E A N D SAVING S DEPOSITS:
125. M aximum interest rates payable on tim e and savings deposits in fe d
erally insured nonmember mutual savings b a n k s .................................252
126. M axim um interest rates payable on tim e and savings deposits fo r com
mercial banks ............................................................................................. 253
BANKING OFFICES— BANK PERFORMANCE-1974
The number of commercial banks in operation in the United
States rose by 287 in 1974, marking a fifth consecutive annual
increase. These increases reversed the declining trend in numbers of
banks which, except for 1963 to 1965, had continued for many
years until 1970. During 1974, a total of 394 commercial banks
began operations— 54 more than in 1973— while the 117 banks
closed due to mergers were 19 more than in the year before. Mutual
savings banks, operating in 17 States and Puerto Rico, declined by
two, as one bank began operations and three ceased operations
due to mergers during the year.
As in other recent years, the commercial banks beginning opera
tions in 1974 were heavily concentrated in unit banking States,
especially in Florida, Texas, and Illinois, which accounted for more
than one-third of all banks opened during 1974. In States that
permit branching, and that in most cases also permit multibank
holding companies, 185 banks began operations in 1974, and after
mergers and other changes, the net increase in commercial banks in
these States was 75.
The number of FDIC-insured commercial banks rose by 254 dur
ing 1974 to a total of 14,230. The number of national banks in
creased during the year by 49, State bank members of the Federal
Reserve System declined by 4, and insured State nonmember banks
increased by 209. A net total of 31 member banks— 5 national
banks and 26 State member banks— shifted to insured nonmember
status during the year.
A net addition of one noninsured trust company and 32 other
noninsured banks occurred during 1974. Of the 25 noninsured
banks of deposit that began operations, 21 were branches of foreign
banks (13 in Chicago, 5 in New York City, and 3 in Seattle). Four
noninsured banks ceased operations and six noninsured banks be
came insured.
The number of branches of commercial banks, totaling over
28,700 at the end of 1974, rose by 7.4 percent during the year,
matching the percentage growth in 1973. The growth of branching
in recent years is indicated by the increase in the number of com
mercial bank branches by more than 8,200 during the past 5 years,
and the corresponding rise from about 3.1 to 4.2 in the average
number of branches per bank in States permitting branching.
In 1974, commercial banks in the United States conducted busi
ness in a climate of record inflation, tight monetary policy, high
interest rates, and toward the end of the year, slackening economic
activity. During the year, total assets of insured commercial banks
increased 9.6 percent to a total o f $912.5 billion, following a 12.9
XI
F E D E R A L DEPOSIT INSURANCE CORPORATION
percent increase in 1973. Bank loans increased by about 10.4 per
cent from the year-end 1973 level, with most of the increase occur
ring in the first three quarters of 1974. Residential real estate loans
rose by 9.9 percent for the year, but virtually no growth occurred
in the last quarter.
Total deposits grew 9.5 percent in 1974, compared to 10.5 per
cent in the year before. A large share o f the rise in 1974— almost 60
percent— was in large certificates of deposit. Demand deposits in
creased in the last half of the year, reversing the downward trend of
the previous 12-month period. Savings deposits showed a rise of 6.6
percent in 1974, more than double the percentage growth in 1973.
Banks continued to increase their borrowings of funds, though the
increase was substantially less than in 1973.
Income from loans of insured commercial banks grew almost $13
billion, or 34.3 percent, in 1974, reflecting a larger volume than in
1973 and a substantial increase in the average return on loans.
However, interest on borrowed money and on deposits were up
54.3 percent and 40.6 percent, respectively, from 1973. Provision
for loan losses jumped 80.8 percent in 1974. These increases were
largely responsible for a one-third rise in total operating expenses
and a resulting 2.85 percentage-point decline in the margin of oper
ating earnings in 1974. Despite the decline in margins, net income
after securities transactions and taxes rose by 7.9 percent in 1974.
The rise of money market rates well above the rates paid by
mutual savings banks on deposits caused disintermediation of funds
from these institutions into higher yielding securities during 1974.
There was some improvement in the fourth quarter of the year
when short-term interest rates fell somewhat, reversing deposit
flows back into mutual savings banks. Despite the nearly $5 billion
addition to deposits from interest and dividend payments, total
deposits of insured mutual savings banks rose only $2 billion, or 2.3
percent, during the year. In response to the reduction in deposit
flows, mutual savings banks were able to increase loans by less than
2 percent during 1974, compared to the prior year's 9 percent
growth in loans. Large declines in loan activity occured in 1- to 4family FHA-insured and VA-guaranteed mortgages, as well as in
contruction loans.
As interest rates rose in 1974, so did earnings from loans and
investments. For FDIC-insured mutual savings banks, return on real
estate loans increased about 19 basis points over the 1973 level.
However, average interest and dividend payments on deposits in
creased even more, about 34 basis points, in part because of a shift
of passbook deposits into the higher yielding time deposits and also,
the full impact of the 1973 increases in rates permitted on certain
X II
DEPOSIT INSURANCE P A R TIC IP A T IO N A N D COVERAGE
deposits was felt in 1974. Overall, net operating income increased
$292 million, about 5.6 percent, in 1974. However, large increases
in interest paid on deposits and substantial losses on securities sold
caused a $161 million decrease in the net earnings of FDIC-insured
mutual savings banks from 1973— a drop of more than one-third.
DEPOSIT INSURANCE PARTICIPATION AND COVERAGE
Incorporated banks and trust companies that are engaged in the
business of receiving deposits may participate in Federal deposit
insurance. Of the 14,481 commercial banks in the United States on
December 31, 1974, 14,230, or about 98.3 percent, were insured
by the Corporation. The 260 noninsured commercial banks in oper
ation at the close of 1974 included 42 banks of deposit, 72 non
deposit trust companies, 16 private banks, 59 branches of foreign
banks, and 71 industrial banks. The noninsured banks of deposit
were located in 24 States or other areas— no State having more than
four such banks; the nondeposit trust companies were operating in
22 States; and the private banks were divided among 6 States. In
contrast, all except five industrial banks were located in Colorado,
and more than two-thirds of the foreign bank branches were oper
ating in New York and Illinois.
A total of 320 mutual savings banks were insured by the Cor
poration at the close of 1974. Of the 160 noninsured mutual sav
ings banks, 159 were located in Massachusetts and insured under
that State's deposit insurance program; one noninsured bank was
located in the State of Maine.
Effective November 27, 1974, by amendment to the Federal
Deposit Insurance Act, the general lim it of insurance per depositor
was increased from $20,000 in each insured bank to $40,000. A t
the same time, a higher maximum level of insurance was established
for certain deposits of public units. For time and savings deposits of
Federal units, and such deposits of State and local governments
deposited in the depositor's own State, the lim it of deposit insur
ance was increased to $100,000 per depositor.
The amendments that increased the lim it of Federal deposit
insurance did not change the rules governing the insurance of de
posits. Federal deposit insurance protects depositors in insured
banks that are closed. Different types of deposits— for example, a
demand account, savings account, or other time deposit accountheld by any depositor in the same right and capacity are insured up
to $40,000 in the aggregate. On the other hand, different accounts
in which the interest of any single depositor in each of such ac
counts represents a different right and capacity— for example, the
XIII
F E D E R A L DEPOSIT INSURANCE CORPORATION
account of a single holder, a valid jo in t account, or the account of an
irrevocable trust— are separately insured up to the general lim it of
insurance.
It is estimated that total insured deposits amounted to about
$520.3 billion, or 62.5 percent of all deposits in insured banks, on
December 31, 1974. This estimate is based on relationships derived
from the results of the Corporation's survey of deposits made on
June 30, 1972 and subsequent surveys. Other estimated percentages
of insured deposits on that date include 62.8 percent for demand
deposits of individuals and businesses, 96.3 percent for savings de
posits, and 30.7 percent for time accounts o f government units.
Although the general lim it of deposit insurance available for each
depositor was doubled in 1974, the resulting increase in the per
centage of all insured deposits to total deposits in insured banks is
estimated to have been less than 2 percentage points. The moderate
increase in insured deposits resulted from the fact that only a rela
tively small number of accounts were affected by the higher insur
ance ceiling. A t the time of the 1972 deposit survey, for example,
relative to the total accounts in specific types of deposits in com
mercial banks, 98.7 percent of demand deposit accounts of indi
viduals, partnerships, and corporations, 99.4 percent of savings de
posit accounts, and 71.6 percent of accounts of State and local
governments were accounts of $20,000 or less.
XIV
N
r
OPERATIONS OF THE CORPORATION
PART ONE
V
J
DEPOSIT INSURANCE DISBURSEMENTS
Methods of protecting depositors. The principal methods used by
the Corporation to protect depositors in failed insured banks are
directly paying insured deposits, and assisting in the absorption of
failing institutions by other insured banks.
In deposit payoff cases, immediately following closure of the
bank by the chartering authority, the Corporation sends its claim
agents to the bank to begin preparations for the payment of insured
deposits. The claims presented by depositors, together with the
records of the bank, are used to determine the total amount of
deposits held by each depositor. From this total, any matured debt
owed by the depositor to the bank may be deducted, and the net
amount that is eligible for deposit insurance is paid by the Corpora
tion. In recent years, payment of insured deposits has usually begun
within 5 to 7 days following the closure of the bank.
Whenever, in the judgment of its Board of Directors, the Cor
poration's risk or losses will thereby be reduced, the Corporation is
authorized to assist financially in the absorption of an insured bank
in financial d ifficu lty by another insured bank. This assistance may
take various forms which can be adapted to individual situations:
the Corporation may purchase the assets or grant a loan secured by
the assets of the distressed bank, and it may agree to indemnify an
insured bank against actual and potential loss by reason of its
assuming the liabilities and taking over the assets of another insured
bank.
The deposit assumption method has significant advantages in pro
viding full protection to all depositors and otherwise minimizing
any disruption of banking services to the community. Aside from
the statutory requisites, however, in many situations the use of this
method is not a feasible alternative and, in fact, may not even be
possible. In cases where fraud or misconduct appears to have been
pervasive, the FDIC may decide that the indemnities that would
have to be given to the assuming bank as protection against un
known or undetermined liabilities of the failing bank involve too
much risk to the Corporation, even allowing for the premium which
the assuming bank would pay for the sound assets and the liabilities
it assumes. In unit banking States w ithout holding companies, there
may be too few banks eligible under State law to be acquiring banks
and none of them may be able to get the necessary approvals for
the transaction— because of their size relative to the failed bank,
because of their own condition, or because of their existing com
petitive position in the market.
Enactment of the Federal Deposit Insurance Act in 1950 pro
vided the Corporation with additional authority to deal with dis
tressed banks short of actual failure. Section 13(c) of the Act
4
F E D E R A L DEPOSIT INSURANCE CORPORATION
authorizes the Corporation to provide assistance to an operating
insured bank under specified limited conditions. Such assistance to
enable an insured bank to remain in operation can be granted only
after a finding that (a) but for the contemplated assistance, the bank
is in danger of closing and (b) the bank is essential in providing
adequate banking service to the community. The Corporation has
used this authority on only three occasions. The Corporation first
used its section 13(c) authority to assist a small bank in the Boston,
Massachusetts, area in 1971, and the authority was used in the
following year in the case of a large bank in Detroit, Michigan. In
1974 the Corporation provided a short term loan under this author
ity to American Bank & Trust, Orangeburg, South Carolina, shortly
before that bank's liabilities were assumed by Southern Bank and
Trust Company with the Corporation's assistance.
The Federal Deposit Insurance Act requires that the Corporation
be appointed receiver for all national banks that are placed in re
ceivership, and that it accept appointment as receiver for closed
State banks when such appointment is authorized by State law and
is tendered by the State authorities. The Corporation's Division of
Liquidation has responsibility for liquidating the assets of closed
insured banks, as well as the assets the Corporation acquires when it
provides financial assistance in deposit assumption cases. A t the end
of 1974, the Division was handling 61 liquidation cases.
Protection of depositors, 1934-1974. Deposits held in all insured
banks that required the disbursements of the Corporation from 1934
through 1974 amounted to $4.5 billion (chart A), of which about
99.5 percent have been paid or made available. Included in the total
are the deposits of banks that continued in operation following
assistance by the Corporation under the section 13(c) authority.
Over 71 percent o f the deposits were held in banks whose deposits
were assumed by other insured banks, with the Corporation's assis
tance. By far the largest proportion of the recovery to depositors in
payoff cases has been provided by FDIC payments of insured de
posits, with additional payments received from the proceeds of
liquidated assets, offsets against matured indebtedness, and pledged
assets (table 1).
The Corporation makes disbursements when it pays depositors
up to the insurance lim it in payoff cases and in return acquires their
claims against the failed banks, when it acquires banks' assets held
in receiverships, when it assists deposit assumptions through loans
or purchases of assets, and when it provides assistance to enable an
operating bank to remain open. In all cases since 1934, the Corpora
tion's disbursements have totaled $1.3 billion (table 2). The net loss
incurred or likely to be incurred by the FDIC in connection with all
such assistance transactions exclusive of United States National
DEPOSIT INSURANCE DISBURSEMENTS
C h a rt A
5
D E P O S IT S A N D L O S S E S
IN A L L IN S U R E D B A N K S R E Q U IR IN G D IS B U R S E M E N T S
BY F D IC , 1 9 3 4 - 1 9 7 4
D E P O S IT O R S
T o t a l D e p o s it s
R e c o v e r ie s b y D e p o s it o r s
A m o u n ts N ot Y e t M a d e
A v a ila b le to o r
L o s t b y D e p o s it o r s
FDIC
T o ta l D is b u r s e m e n t s
b y F D IC
$1,113
m illio n
R e c o v e r ie s b y F D IC
L o s s e s b y F D IC
$224
j m illio n
Bank, which was merged in 1973 with the Corporation's assistance,
and Franklin National Bank is estimated to be about $75 million.
As of year-end, the Corporation's Board of Directors established a
reserve for loss in the United States National Bank failure of $150
million. It could make no provision for loss in the Franklin National
Bank failure because the assets it will have to collect were not then
completely identified and very few of these assets had then been
appraised. The Corporation estimates that it will have assets carried
on Franklin National Bank's books of approximately $2.1 billion
with which to discharge Franklin's liability to the Federal Reserve
System which the Corporation assumed on the date of the bank's
failure.
Banks failing in 1974. Four insured banks failed during 1974
(table 3), including Franklin National Bank, New York City, the
largest insured bank to fail in the Corporation's history. In all four
failures in 1974, the Corporation provided financial assistance to
enable other insured banks to assume substantially all the deposit
liabilities of the banks which failed.
The failures of the four insured banks were attributable to vari
ous causes. In the case of Franklin National, a decline in earnings,
resulting in part from large foreign exchange trading losses, con
6
FED ER A L DEPOSIT INSURANCE CORPORATION
Table 1. PFlOTECTION OF DEPOSITORS OF FA ILE D BANKS REQUIRING
DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION,
19 34-1974
Deposit
p a y o ff cases
(297 banks)
A ll cases
(506 banks)
D eposit
assum ption cases
(209 banks)
Item
Percent
Percent
2,853,847
100.0
100.0
2.261.009
2,848,345
99.8
587,336
99.1
2.261.009
100.0
100.0
2,801,457
40,879
3,116
2,893
98.2
1.4
5 40,4 4 8 4
40,879
3,116
2,893
91.2
6.9
0.5
0.5
2.261.009
100.0
Full recovery not received as of December 31,
1974 ................................................
5,502
0.2
5,502
0.9
T erm in ated c a s e s ..............................................
A ctive c a s e s ........................................................
3,433
2,069
0.1
0.1
3,433
2,069
0.6
3,634,052
3,612,245
100.0
409,946
388,139
100.0
3.224.106
3.224.106
3,512,841
21,085
37,338
40,981
96.7
1.1
2 8 8,735s
21,085
37,338
40,981
100.0
100.0
100.0
21,807
0.6
21,807
5.3
2,642
19,165
0.1
2,642
19,165
0.6
Num ber of depositors or a cco u n ts-to ta l1 .
Full recovery received 9r a vailable ___
From
From
From
From
F D IC 3 .........................................
o ffs e t5.........................................
security or pieference6 ..........
asset liq u id a t o n 7......................
A m oun t of deposits (in th o u sa n d s)-to ta l.
Paid or made available......................
By
By
By
By
F D IC 3 .......................................
o ffs e t9 .......................................
security or preference10 . . .
asset liq u id a tio n 1 1.................
N ot paid as of December 3 1 ,1 9 7 4
T e rm in ated c a s e s ........................
A c tiv e cases1 2................................
0.1
0.1
99.4
0.6
1.0
0.5
592,8382
0.3
94.7
70.4
5.2
9.1
3.224.106
10.0
4.7
1 N um ber o f depositors in deposit p a y o ff cases; num ber o f accounts in deposit assum ption cases.
2 Revised.
3 T h rough d ire c t p a ym e nt to depositors in deposit p a y o ff cases; through assum ption o f deposits by oth e r insured banks, fa cilita te d
by FD IC disbursem ents o f $763 ,5 2 5 thousand, in deposit assum ption cases.
4 1ncludes 6 0 ,0 1 0 depositors, in term inated cases, w h o failed to claim th e ir insured deposits (see note 8).
i n c lu d e s o n ly depositors w ith claim s offset in fu ll; m ost o f these w o u ld have been fu ily protected by insurance in the absence of
offsets.
6 Excludes depositors, paid in pa rt by F D IC , whose deposit balances were less than the insurance m axim um .
7The insured p o rtio n s o f these depo sito r claims were paid by the C orporation.
8 1ncludes $181 thousand jn cla im e d insured deposits in term inated cases (see note 4).
9 1ncludes all am ounts paid by offset.
1° ln c lu d e s all secured and preferred claims paid fro m asset liq u id a tio n ; excludes secured and preferred claim s paid by the
C orporation.
1 1 1ncludes unclaim ed deposits paid to authorized pub lic custodians.
1 2 1ncludes $ 14 ,2 87 thousand representing deposits available, expected through offset, or expected fro m proceeds o f liquidations.
tributed to other difficulties which eventually led to subtantial de
posit runoffs. Franklin National was declared insolvent and closed
by the Comptroller of the Currency on October 8. A t the time of
its closing, the bank operated 109 offices and had assets of over
$3.6 billion and deposits of about $1.4 billion. Immediately upon
closing the bank, the Comptroller of the Currency, pursuant to
applicable provisions of the Federal Deposit Insurance Act, ap
pointed the Corporation as receiver. Almost simultaneously, in re
sponse to competitive bids submitted in accordance with predrafted
papers, the Corporation's Board of Directors entered into a pur
chase and assumption transaction with European-American Bank &
Trust Company, a bank chartered by the State of New York.
European-American, for a purchase price of $125 million, agreed to
assume substantially all the deposit liabilities of the failed bank. In
a companion transaction, the trust business of Franklin National
was acquired by Bradford Trust Company, a New York chartered
DEPOSIT INSURANCE DISBURSEMENTS
Table 2. ANALYSIS OF DISBURSEMENTS, RECOVERIES, AND LOSSES
IN DEPOSIT INSURANCE TRANSACTIONS,
JA N U A R Y 1, 1934— DECEMBER 31, 1974
(In thousands)
Disbursements
Recoveries1
Losses
..............................................................................................
$1,337,644
$1,113,171
$224,473
P rincipal disbursem ents in deposit assum ption and p a y o ff c a s e s -to ta l____
1,209,262
993,926
209,336
763,525
379,736
213,573
158,000
170,216
158,000
286,834
903
216,566
32,051
39,120
T ype o f disbursem ent
A ll d is b u rs e m e n ts -to ta l2
Loans and assets purchased (209 deposit assum ption cases):
T otal Decem ber 3 1 ,1 9 7 4 .............................................................................
Estimated additional ....................................................................................
Notes purchased to fa c ilita te deposit a ssum ptions.......................................
Deposits paid (297 deposit p a y o ff cases):
To December 3 1 ,1 9 7 4 ..................................................................................
Estimated a d d itio n a l....................................................................................
Advances and expenses in deposit assum ption and p a y o ff c a s e s - to ta l------
$
Expenses in liq u id a tin g assets:
Advances to p ro te c t a sse ts...........................................................................
L iq u id a tio n e x p e n se s ....................................................................................
Insurance expenses.........................................................................................
Field p a y o ff and other insurance expenses in 297 deposit p a y o ff cases.
O ther d is b u rs e m e n ts -to ta l.......................................................................................
72,061
$
$
56,321
$
62,238
$
3,636
6,187
51,007
$
4,965
42
(3)
46,000
9,683
638
46,000
9,823
-0 -
41,061
21,177
(3)
(3)
41,061
21,177
3,636
6,187
Assets purchased to fa c ilita te te rm in a tio n of liq u id a tio n s:
To December 3 1 ,1 9 7 4 ..................................................................................
Estim ated a d d itio n a l.......................................................................................
Unallocated insurance expenses........................................................................
Assistance to operating insured b a n k s ............................................................
-0 -
5,314
4,676
638
-0 -
1 Excludes am ounts returned to closed bank eq u ity holders and $23.0 m illio n o f interest and allowable return received by FDIC.
in c lu d e s estimated am ounts fo r pending and unpaid claim s in active cases.
3 N o t recoverable.
institution. As a result of these transactions, some 630,000 de
positors, including 6,000 whose individual accounts exceeded the
$20,000 insurance lim it then in effect, were fully protected with no
perceptible interruption in banking services.
American Bank & Trust, Orangeburg, South Carolina, at the time
of its closing the sixth largest bank in the State, held assets totaling
nearly $150 million and operated 29 offices in 20 communities. In
Table 3. INSURED BANKS CLOSED DURING 1974 REQUIRING
DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION
Name and location
Date o f
deposit
assum ption
T o t a l ..........................................................
Num ber
o f de
positors'
accounts
Am ount
o f de
posits
(in th o u
sands)1
FD IC dis
bursem ent
(in th o u
sands)2
704,283
$1,575,832
$174,211
Am erican Bank & Trust
Orangeburg, South Carolina
September 20, 1974
66,232
112,703
61,289
T ri-C ity Bank
Warren, M ichigan
S eptem ber 27, 1974
6,517
14,876
10,976
Fra n klin National Bank
New Y o rk , New Y o rk
O ctober 8, 1974
6 30,000
1,444,982
100,000
Crom well State Savings Bank
C rom w ell, Iowa
O ctober 9, 1974
1,534
3,271
1,946
1 A ll deposits were made available in fu ll through assuming banks.
in c lu d e s disbursements made to December 31, 1974, plus additional disbursements required in these cases; includes notes
purchased to fa c ilita te deposit assumptions.
8
FE D E R A L DEPOSIT INSURANCE CORPORATION
10 communities AB&T was the only bank providing commercial
banking services. On September 8, 1974, the Board of Directors of
the Corporation, under the authority of section 13(c) of the Fed
eral Deposit Insurance Act, announced that it had arranged to pro
vide whatever cash the bank needed to enable it to deal with a short
term liquidity problem. The announcement stated that the d iffi
culties of the bank involved a number of sizable real estate loans
which had become illiquid under the prevailing economic con
ditions. Shortly thereafter, on September 20, the Board of Direc
tors of the FDIC and the South Carolina authorities announced that
Southern Bank and Trust Company, Greenville, as part of a pur
chase and assumption transaction with the Corporation, had agreed
to assume all the deposit liabilities of AB&T. The action, which
avoided any need for a statutory payoff of AB&T's 65,000 de
positors, followed a decision by the State authorities that the bank
must be closed because o f an inability to meet the demands of its
depositors. In this transaction, Southern Bank and Trust assumed
approximately $132 million of deposits and other liabilities and, in a
competitive bidding procedure, paid a purchase premium of nearly
$5.6 million. The Corporation stated that the large quantity of
illiquid and adversely classified loans in AB&T resulted in a negative
earnings situation with no prospect for reversal in the forseeable
future, making impossible any solution that would have kept that
bank as an ongoing institution.
Two much smaller institutions, Tri-City Bank, Warren, Michigan,
and Cromwell State Savings Bank, Cromwell, Iowa, failed during
1974. Involved in these cases were self-serving loans and other mis
applications of funds. The total deposits of these banks, which were
assumed by other insured banks with the Corporation's assistance,
were about $14.9 million and $3.3 million, respectively.
SUPERVISORY ACTIVITIES
The Corporation has some supervisory authority with respect to
all insured banks, and has general supervisory responsibilities for
insured banks that are not members of the Federal Reserve System.
A total of 8,448 nonmember insured commercial banks, holding
assets (domestic) of $193.6 billion, were in operation in 1974. Non
member insured commercial banks represented 58.3 percent of all
commercial banks in the U.S. and 20.9 percent o f commercial bank
assets (domestic), compared to 46.4 percent and 13.0 percent, re
spectively, in 1950 (chart B).
Examinations. Along with the State banking departments which
chartered them, the Corporation regularly conducts examinations
SUPERVISO RY A C T IV IT IE S
9
C h a rt B
N U M B E R A N D A S S E T S OF C O M M E R C IA L B A N K S
IN T H E U N IT E D S T A T E S , 1 9 5 0 - 1 9 7 4
Thousands
of Banks
------- 25
Thousands
of Banks
2 5 --------
N U M B E R OF B A N K S
ALL C O M M E R C IA L B A N K S
NONM EMBER
o— h H — h I ..4
1950 '51
'5 2
'5 3
'5 4
IN S U R E D
i— I— I— I— M — h H — I— h i
'55
'5 6
'5 7
'5 8
'5 9
'6 0
'61
'6 2
'6 3
'6 4
'6 5
I
'6 6
I" I
'6 7
'6 8
BANKS
I— I— I ■4 - I— |— o
'6 9
'7 0
'71
'7 2
'7 3
'7 4
Billions
of Dollars
Billions
of Dollars
---- 1,000
1,000----
ASSETS
1950 '51
'5 2
'5 3
'5 4
(D O M E S T I C ) OF B A N K S
'5 5
*l\let assets, excluding loss reserves.
'5 6
'5 7
'5 8
'5 9
'6 0
'61
'6 2
'6 3
'6 4
'6 5
'6 6
'67
70
'71
'7 2
'7 3
'7 4
10
FED ER A L DEPOSIT INSURANCE CORPORATION
of such nonmember insured banks to determine their current con
dition, to evaluate bank management, and to discover and obtain
correction of unsafe and unsound practices or violations of laws and
regulations. Special investigations are also made in connection with
applications for Federal deposit insurance, mergers, establishment
of branches, and other actions requiring the prior approval of the
Corporation.
A 13-month experimental program in the examination of Statechartered nonmember banks was started in three States at the be
ginning of the year. Under this program, the Corporation withdrew
from its usual examination of all insured nonmember State banks in
Iowa, Georgia, and Washington and, for a specified number of such
banks in each State, agreed to rely heavily upon examinations by
the respective State banking departments for determination of their
financial condition. A t year-end 1974, 527 banks were affected by
the Selective Withdrawal Program, 430 of which had been examined
by the respective State authority. Banks not under the Selective
Withdrawal Program continued to be examined by the Corporation
in each of the three States. The FDIC has reserved the right to
examine any such bank whether or not it is scheduled for exclusive
State examination, and has also reserved the right to terminate or
m odify the program at any time.
During the test period, which has since been extended through
December 31, 1975, the Corporation intends to examine each bank
under the program for compliance with certain Federal laws utiliz
ing a Compliance Examination Report developed specifically for
this purpose. The same type of independent compliance examina
tion is also being conducted among non-program banks in the 3
States, and 95 such examinations were made in other States as a
further experiment. In September, independent compliance exami
nations were adopted on a limited basis throughout the country,
and 2,182 such examinations were completed in 1974.
The Corporation conducted over 7,400 examinations of main
offices and approximately the same number of examinations of
departments and branches of nonmember insured banks during
1974 (table 4). It also made 304 investigations in connection with
applications of proposed new banks or operating noninsured banks
for Federal deposit insurance, 1,013 investigations in connection
with applications for the Corporation's consent to the establish
ment of new branches, and 212 investigations in connection with
applications for consent to consolidate, merge, purchase assets, or
assume liabilities.
Applications for deposit insurance and branches. Before ap
proving an application for deposit insurance, the Corporation is
required, under section 6 of the Federal Deposit Insurance Act, to
11
SUPERVISO RY A C T IV IT IE S
consider the financial history and condition of the bank, the ade
quacy of its capital structure, its future earnings prospects, the
general character of its management, the convenience and needs of
the community, and finally, the consistency of the bank's corporate
powers with the purposes of the Act. National banks receive deposit
insurance upon their chartering and State member banks upon join
ing the Federal Reserve System— in both cases after certification by
the responsible Federal agency that the criteria mentioned above
were given consideration. State nonmember banks apply directly to
the Corporation for deposit insurance.
The Corporation's Board of Directors considered 215 applica
tions for Federal deposit insurance during 1974, approving 207
applications (chart C) and denying 8 (one of which was subse
quently approved following amendment to the application). Sixtytwo o f the approved applications came from the unit-banking States
of Florida, Illinois, and Texas.
The Federal Deposit Insurance Act requires that the Corpora
tion's approval be obtained before a nonmember insured bank may
establish or change the location of a branch office. A "branch" is
defined in section 3(o) of the Act as " . . . any branch place o f busi
ness . . . at which deposits are received, checks paid, or money
lent." This definition includes tellers' windows and other limitedservice facilities that may not be "branches" under the laws of the
respective States.
The Corporation's Board of Directors approved 241 applications
for new branches during 1974, and 581 were approved under dele
gated authority by the Director of the FDIC's Division of Bank
Table 4. BANK E X A M IN A T IO N A C TIV ITIE S OF
THE FED ER AL DEPOSIT INSURANCE CORPORATION
IN 1973 AND 1974
N um ber
A c tiv ity
Field exam inations and investigations-total
1974
1973
19,959
........................................................................
22,699
Exam inations of main o f f ic e s - t o t a l...............................................................................
7,451
7,995
Regular exam in a tio ns o f insured banks n o t members o f Federal Reserve S y s te m ...............
Re-exam inations; or o th e r than regular e x a m in a tio n s ..................................................................
Entrance exam inations o f operating noninsured b a n k s ...............................................................
Special e x a m in a tio n s ..............................................................................................................................
7,331
98
13
9
7,863
111
14
7
Examinations of departments and b r a n c h e s ....................................................................
7,558
7,474
Exam inations o f tru s t d e p a rtm e n ts ....................................................................................................
E xam inations o f b ra n c h e s .....................................................................................................................
1,296
6 ,262
1,452
6,022
In v e stig a tio n s..............................................................................................................
4,515
4,490
New bank investigations .......................................................................................................................
State banks members o f Federal Reserve S y s te m ....................................................................
Banks n o t members o f Federal Reserve S y s te m .......................................................................
New branch in v e s tig a tio n s .....................................................................................................................
Mergers and c o n s o lid a tio n s ..................................................................................................................
M iscellaneous investigations ................................................................................................................
304
6
298
1,013
212
2,986
431
15
416
1,118
264
2,677
Compliance e x am in atio n s..............................................................................................
3,175
F u l l ..............................................................................................................................................................
L i m it e d ......................................................................................................................................................
993
2,182
F E D E R A L DEPOSIT INSURANCE CORPORATION
12
Chart c A P P L IC A T IO N S FOR D E P O S IT IN S U R A N C E A N D
B R A N C H E S A P P R O V E D B Y T H E F E D E R A L D E P O S IT
IN S U R A N C E C O R P O R A T IO N , 1 9 6 0 - 1 9 7 4
Hundreds
Hundreds
1 1 ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 11
^Includes facilities and other limited service offices
Supervision or by the Regional Directors. Four such applications
were denied. Two were denied primarily because they appeared
substantially anticompetitive under the facts presented; the other
two denials were based on one, or a combination of more than one,
of the other factors considered. Of 174 applications considered in
1974 for the Corporation's prior consent to the operation of lim it
ed branch facilities, 13 were approved by the Board o f Directors
and 161 were approved under delegated authority.
Mergers. The Bank Merger Act of 1960, amending section 18(c)
of the Federal Deposit Insurance Act, requires the approval of a
Federal bank supervisory agency before any insured bank may en
gage in a merger transaction, as defined in the Act. If the surviving
institution is to be an insured nonmember bank, or in any merger of
an insured bank with a noninsured institution, the Corporation is
the deciding agency.
The Act, as amended in 1966, provides further that, before ap
proving any proposed merger of an insured bank, the deciding Fed
eral agency must consider the effect of the transaction on competi
tion, the financial and managerial resources of the banks, the future
prospects of the existing and proposed institutions, and the con
venience and needs of the community to be served. A merger that
SUPERVISO RY A C T IV IT IE S
13
would be in furtherance o f an attempt to monopolize or that would
result in a monopoly under the Sherman Antitrust Act may not be
approved. A merger whose effect may be to substantially lessen
competition in any section of the country, or tend to create a
monopoly, may be approved, but only if the responsible agency
finds that these anticompetitive effects are clearly outweighed in
the public interest by the probable effects on the needs and con
venience of the community to be served. Following approval of a
bank merger by the Federal supervisory agency, the Justice Depart
ment may, within a 30-day period (or in emergency cases, within 5
days), bring an action under the antitrust laws to prevent the mer
ger.
The Corporation acted on 56 merger-type applications in 1974,
approving 55 and denying one. The Corporation also approved 67
applications for merger transactions involving corporate reorganiza
tions which, as such, had no competitive effect. The Act requires
that descriptive material on each merger case that is approved, the
basis for approval, and the Attorney General's advisory report be
published in the deciding agency's annual report. This information
for the year 1974 is contained on pages 33— 172 of this report.
The Bank Merger Act requires in addition that before deciding on
any application, unless the agency finds that it must act imme
diately in order to prevent the probable failure of one o f the banks
involved, the deciding agency shall request, from the other two
Federal bank supervisory agencies and from the Attorney General
of the United States, a report on the competitive factors involved in
the case. In 1974, 52 advisory reports were filed on the competitive
factors involved in merger transactions where the resulting institu
tion would be a national or State member bank. In two of those
reports, the deciding agency was informed that the Corporation
considered the competitive factors presented to be adverse in one or
more respects. In one of these cases, the Board o f Governors of the
Federal Reserve System subsequently approved the application; in
the other, the Comptroller of the Currency had taken no action by
the end of the year. A total of 79 advisory reports involved cor
porate reorganizations that, as such, had no competitive effect.
Merger approvals by each of the Federal bank supervisory agen
cies under section 18(c) of the Federal Deposit Insurance Act in
1974 are detailed in tables 5 and 6. In 1974, a total of 124 institu
tions were absorbed, compared to 101 in 1973 (chart D). (The
merger statistics in chart D do not include corporate reorganizations
of individual banking institutions, such as banks in process of form
ing one-bank holding companies, and other merger transactions
which did not have the effect of lessening the number of existing
operating banks; see table 5, note 1.)
14
F E D E R A L DEPOSIT INSURANCE CORPORATION
Table 5. MERGERS, CONSOLIDATIONS, ACQUISITIONS OF ASSETS AND
ASSUMPTIONS OF LIA B ILIT IE S APPROVED UNDER SECTION 18(c)
OF THE FEDERAL DEPOSIT INSURANCE ACT DURING 1974
Offices operated
B arks
N um ber of
banks
Resources
(in thousands)
P rior to
transaction
A fte r
transaction
239
1152
124
43
14
56
11
$46,869,539
4 0 ,3 3 7 ,5203
6,532,019
4,893,369
204,324
1,340,207
94,119
2929
24713
458
250
28
169
11
2926
29263
120
57
63
29
9
24
1
27,986,807
26,500,578
1,486,229
667,629
138,935
679,399
266
1747
1571
176
78
21
76
1
1745
1745
18
9
9
7
2
2,807,008
2,444,558
362,450
345,463
16,987
187
145
42
39
3
187
187
101
49
52
7
5
30
104
16,075,724
11,392,384
4,68 3 ,3 4 0
3,880,277
65,389
643,821
93,853
995
755
240
133
7
90
10
994
994
A L L C ASES1
Banks in v o lv e d ................................................................................
A bsorbing b a n k s ......................................................................
Absorbed banks ......................................................................
N a tio n a l...............................................................................
State m em ber F R S .............................................................
N ot m em ber F R S ...............................................................
N oninsured inst t u t i o n s ...................................................
CASES W ITH R E S U LT IN G B A N K
A N A T IO N A L B A N K
Banks in v o lv e d ................................................................................
A bsorbing b a n k s ......................................................................
Absorbed banks ......................................................................
N a tio n a l................................................................................
State m em ber F R S .............................................................
N o t m em ber F R S ...............................................................
Noninsured in s titu tio n .....................................................
CASES W ITH R E S U LT IN G B A N K
A S T A T E B A N K M E M B E R OF TH E
F E D E R A L RESERVE SYSTEM
Banks in v o lv e d ................................................................................
A bsorbing b a n k s .......................................................................
Absorbed banks ......................................................................
N a tio n a l................................................................................
N ot m em ber F R S ..............................................................
CASES W IT H R E S U LT IN G B A N K
NOTAM EM BEROFTHE
F E D E R A L RESERVE SYSTEM
Banks in v o lv e d ................................................................................
A bsorbing b a n k s ......................................................................
Absorbed banks ......................................................................
N a tio n a l................................................................................
State mem ber F R S .............................................................
N ot mem ber F R S ...............................................................
Noninsured inst t u t i o n s ...................................................
10 m itte d are corporate reorganizations and oth e r absorptions involving banks th a t p rio r to the transaction did n o t in d iv id u a lly
operate an o ffice in the U nited States, and some mergers of banks w ith in the same h o lding com pany.
2The num ber of absorbing banks is sm aller than the num ber of cases because a fe w banks participated in more than one case.
3Where an absorbing bank engaged in more than one transaction, the resources included are those o f the bank before the latest
transaction and the num ber o f offices before the firs t and a fte r the latest transaction.
4 AII merged in s titu tio n s were savings and loan associations.
Cease-and-desist and termination-of-deposit-insurance proceed
ings. When insured banks are found to be in violation of laws or
regulations, or engaging in unsafe or unsound banking practices, the
Corporation usually is able to gain corrective action by consulta
tion with the bank's management and other supervisory officials. In
the event such efforts to gain voluntary compliance do not succeed,
the Corporation may initiate cease-and-desist proceedings against an
insured nonmember bank and termination-of-deposit-insurance pro
ceedings against any insured bank involved.
Under section 8(b) of the Federal Deposit Insurance Act, the
Corporation initiates cease-and-desist proceedings by the issuance of
a Notice of Charges. The Notice specifies the alleged violations or
the unsafe or unsound practices engaged in and fixes a time for an
administrative hearing at which the bank may respond to the
charges.
If the evidence presented at the hearing establishes the
15
SUPERVISO RY A C T IV IT IE S
existence of the violations or practices, or upon consent of the bank
to the issuance of such an order, the Corporation may order the
bank not only to stop the violations or practices but also to take
affirmative action to correct the conditions that have resulted. Of
the 18 cease-and-desist orders against insured State nonmember
banks that were outstanding at the beginning of 1974, 9 were termi
nated during the year (table 7). In 1974 the Corporation initiated
five section 8(b) proceedings; four culminated in the entry of
cease-and-desist orders, and one proceeding was pending at year-end
after the completion of an administrative hearing. As a conse
quence, 13 cease-and-desist orders against insured State nonmember
banks were outstanding at the end of 1974.
In termination-of-deposit-insurance proceedings initiated under
section 8(a), a failure to correct the specified unsafe or unsound
practices or violations with the designated period may result, fo l
lowing an administrative hearing at which the bank may respond to
the Corporation's charges, in a Board of Directors' order to term
inate the bank's deposit insurance. If the insurance is terminated,
insured funds on deposit at the time of the termination, less any
subsequent withdrawals, continue to be insured for a period of 2
Table 6. APPROVALS UNDER SECTION 18(c) OF THE FEDERAL
DEPOSIT INSURANCE AC T DURING 1974,
BANKS GROUPED BY SIZE AN D IN STATES
ACCORDING TO STATUS OF BRANCH BANKING
A bsorbing banks
Absorbed banks
N um ber of banks by size
N um be r o f banks by
size (resources in $ m illio n s )
(resources in $ m illio n s )
Num ber
of
banks
N um ber
of
branches
Resources
(in
thousands)
-5
5 -1 0
1 0 -2 5
2 5 -1 0 0
Over
100
T o ta l-U .S .
-5
5 -1 0
1 0 -2 5
2 5 -1 0 0
1 0 0 -5 0 0
Over 500
...............
...............
...............
...............
...............
...............
115
2
5
11
34
45
18
124
2
5
11
36
49
21
334
7
0
8
69
112
138
$6,532,019
50,189
18,649
103,763
777,835
1,410,530
4,171,053
22
0
4
5
9
2
2
28
1
1
3
8
12
3
46
0
0
2
14
20
10
20
1
0
1
4
11
3
8
0
0
0
1
4
3
(A ) Statewide
branching
-5 . . .
1 0 -2 5
2 5 -1 0 0 . . . .
1 0 0 -5 0 0 . . . .
Over 500 ___
...............
...............
...............
...............
...............
38
1
2
11
15
9
44
1
2
13
16
12
125
6
1
37
53
28
1,303,547
42,010
7,778
356,648
424,519
472,592
4
0
1
1
2
0
7
0
1
1
2
3
18
0
0
8
6
4
11
1
0
3
4
3
4
0
0
0
2
2
(B) Lim ited-area
branching
-5
5 -1 0
1 0 -2 5
2 5 -1 0 0
1 0 0 -5 0 0
Over 500 ------
...............
...............
...............
...............
...............
...............
69
1
4
7
20
28
9
72
1
4
7
20
31
9
209
1
0
7
32
59
110
5,176,989
8,179
14,737
88,976
395,411
971,225
3,698,461
13
0
3
2
6
0
2
19
1
1
2
7
8
0
27
0
0
2
5
14
6
9
0
0
1
1
7
0
4
0
0
0
1
2
1
(C) U n it
banking
5 -1 0
1 0 -2 5 . .
2 5 -1 0 0
1 0 0 -5 0 0 . . . .
...............
...............
...............
...............
8
1
2
3
2
8
1
2
3
2
0
0
0
0
0
51,483
3,912
7,009
25,776
14,786
5
1
2
2
0
2
0
0
0
2
1
0
0
1
0
0
0
0
0
0
0
0
0
0
0
F E D E R A L DEPOSIT INSURANCE CORPORATION
16
M E R G E R S A P P R O V E D BY
F E D E R A L B A N K S U P E R V IS O R Y A G E N C IE S , 1 9 6 0 - 1 9 7 4
C h a rt D
Number of Approvals
Number of Approvals
EH
Approved by C om p tro lle r o f the Currency
A pproved by Board o f Governors o f the Federal Reserve System
| A pproved by FDIC
0
0
1 9 60*
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
*Period beginning M ay 12, 1960, to end of year.
years. In the three termination-of-deposit-insurance cases which re
mained open at the beginning of 1974 awaiting expiration of the
time periods specified in which to make corrections, re-examination
of the banks, or analysis of their most recent reports o f examina
tion, two proceedings were concluded after corrections were effect
ed. During 1974, the Corporation initiated three new proceedings
to terminate deposit insurance (table 8). Consequently, four such
proceedings remained open at year-end 1974.
Removal proceedings. Removal proceedings, against an officer or
director of an insured State nonmember bank who violates a law,
rule, regulation, or final cease-and-desist order or who engages in an
unsafe or unsound banking practice that constitutes a breach of his
fiduciary duty, may be initiated by the Corporation under section
Table 7. CEASE-AIMD-DESIST ORDERS AND ACTIONS TO CORRECT SPECIFIC UNSAFE
OR UNSOUND PRACTICES OR V IO LA TIO N S OF LAW OR REGULATIONS, 1974
Total actions taken: 1971-1974
...............................................................................................................................
Cease-and-desist orders issued in 1 97 4 1..................................................................................................................
Cease-and-desist orders d is c o n tin u e d ....................................................................................................................................................
Cease-and-desist orders outstanding as o f December 31, 1974 ....................................................................................................
35
42
9
13
1T he F D IC 's a u th o rity to issue cease-and-desist orders was added in 1966 (12 U.S.C. 1818 (b )). The firs t use o f th is a u th o rity
occured in 1971.
2 0 ne proceeding in 1974, included in the to ta l, did n o t result in entry o f a cease-and-desist order.
SUPERVISO RY A C T IV IT IE S
17
8(e) of the Federal Deposit Insurance Act. The Corporation is
authorized to take such action if it determines that the conduct will
cause substantial financial loss or other damages to the bank or will
seriously prejudice the interests of the bank's depositors, and that
the conduct involves personal dishonesty. During 1974, one direc
tor of an insured State nonmember bank was removed pursuant to
an order issued under section 8(e).
Suspension proceedings. When an officer, director, or other per
son who participates in the management of an insured nonmember
bank is charged, in an information, indictment, or complaint
authorized by a U.S. Attorney, with the commission of, or partici
pation in, a felony involving dishonesty or a breach of trust, the
Corporation may suspend or prohibit the person from participating
in the affairs of the bank under section 8(g) of the Federal Deposit
Insurance Act. Suspension proceedings are initiated by the issuance
of a Notice and Order of Suspension and Prohibition, served on the
individual involved, that specifies the charges and further orders the
individual to be suspended from his position and prohibited from
participating in the affairs of the bank. The Corporation may issue a
formal Order of Removal on the person found guilty o f the offenses
charged. A finding of not guilty or other disposition of the charges
does not preclude the Corporation from thereafter instituting re
moval or prohibition proceedings pursuant to section 8(e).
During 1974, the Board of Directors issued orders suspending
three persons who were charged with felonies involving dishonesty
or breach of trust from their offices in insured State nonmember
banks. Ten individuals charged with felonies involving dishonesty or
Table 8. ACTIONS TO TERM IN ATE INSURED STATUS OF BANKS CHARGED
WITH UNSAFE OR UNSOUND BANKING PRACTICES OR V IO LA TIO N S
OF LAW OR REGULATIONS, 1936-1974
Started
D isposition or status
1 9 3 6 -1 9 7 4 1
during 1974
T o ta l banks against w h ic h action was t a k e n ................................................................................................
224
Cases c lo s e d .....................................................................................................................................................
220
3
Corrections m a d e ....................................................................................................................................
Banks absorbed o r succeeded by other banks.................................................................................
W ith financial aid o f the C o rp o ra tio n ..........................................................................................
W ith o u t financial aid of the C o r p o r a tio n .................................................................................
Banks suspended p rio r to setting date o f te rm in a tio n o f insured status by C orporation .
Insured status term inated, or date fo r such te rm in a tio n set by C orporation fo r
fa ilu re to make c o r r e c tio n s .....................................................................................................
Banks suspended p rio r to or on date of te rm in a tio n o f insured status .........................
95
73
64
9
37
Banks c o ntin ue d in o p e ra tio n 2 .....................................................................................................
Form al w ritte n co rrective program imposed and 8(a) action d is c o n tin u e d .........................
Cease-and-desist o rd er issued and 8(a) action discontinued .....................................................
4
1
1
Cases n o t closed December 31, 1974 ...................................................................... .. ............................
4
3
A c tio n deferred pending com p le tio n o f corre ctio n period, reexam ination o f the bank,
or analysis o f its m ost recent re p o rt o f e x a m in a tio n .....................................................
4
3
13
9
1 No action to term in ate the insured status o f any bank was taken before 1936. In 5 cases where in itia l action was replaced by
action based upon a dd ition al charges, o n ly the last action is included.
2 0ne o f these suspended 4 m onths a fte r its insured status was term inated.
18
F E D E R A L DEPOSIT INSURANCE CORPORATION
breach of trust voluntarily resigned or suspended themselves from
their positions with insured State nonmember banks following
indications that the Corporation might initiate suspension pro
ceedings against them if they continued to hold their offices.
Interest rate ceilings. Public Law 74-305 (the Banking Act of
1935), signed into law on August 23, 1935, granted authority to
the FDIC to establish maximum rates o f interest payable on time
and savings accounts by nonmember insured commercial banks. The
Board of Governors of the Federal Reserve System was given this
authority with respect to member banks by the Banking Act of
1933, signed on June 16 of that year. Effective September 21,
1966, a bill was enacted by Congress (80 Stat. 824) providing the
regulatory agencies with more fle xib ility in setting rate ceilings, and
bringing savings and loan associations under rate regulation. Fed
erally insured mutual savings banks were brought under this author
ity of the Corporation with the enactment of Public Law 89-597 in
October 1966. Pursuant to its authority, the Corporation has estab
lished maximum rates applicable to nonmember insured banks in
Part 329 of its rules and regulations. Tables 125 and 126 of this
report contain a recapitulation o f changes in the ceiling rates for
insured commercial banks and mutual savings banks in the U.S.
Consumer protection. The FDIC is responsible for administrative
enforcement of the Truth in Lending Act and the Fair Credit Re
porting Act with respect to insured nonmember banks. The Truth
in Lending Act requires creditors to disclose the cost and other
terms of consumer credit in a prescribed manner and at specified
times so that consumers may shop for the best credit terms and
make sound judgments regarding the use of consumer credit. The
Fair Credit Reporting Act requires creditors to make certain dis
closures when information in a credit report from a consumer
reporting agency or obtained from a third party contributes to a
denial or an increase in the cost of consumer credit. These dis
closures are designed to enable consumers to seek out and correct
erroneous information regarding their credit standings. Checks for
compliance with these laws were a routine part of the bank exami
nations conducted by FDIC examiners during 1974.
Under the Securities Exchange Act of 1934, the Corporation
exercises all "the powers, functions, and duties" otherwise vested in
the Securities and Exchange Commission "to administer and en
force" the registration, company-reporting, and related provisions
of that Act with respect to insured nonmember banks. These pro
visions are applicable to banks with more than $1 million in assets
which have 500 or more holders of any class of equity security.
Under these provisions and the Corporation's regulations there
under, the banks are required to file an initial registration statement
and periodic reports (annually, semi-annually, and quarterly) as well
SUPERVISORY A C T IV IT IE S
19
as a special report covering any material event which occurred in
the preceding month. Any matter presented for a vote of security
holders must be effectuated through a proxy statement complying
with the Corporation's regulations, and where directors are to be
elected, the proxy statement must be accompanied or preceded by
an annual report disclosing the financial condition of the bank.
Officers and directors of a bank whose securities are registered and
any person or related group of persons holding more than 5 percent
of such securities must report their holdings and any changes which
occur to the Corporation.
All required statements and reports filed with the Corporation
under the Securities Exchange Act are public documents. All such
statements and reports are available for inspection at the Corpora
tion's headquarters and copies of registration statements and com
pany reports, proxy statements, and annual reports to shareholders
are also available at the New York, Chicago, and San Francisco
Federal Reserve Banks as well as at the Reserve Bank of the district
in which the bank filing the report is located.
During 1974, the Corporation received securities registration
statements from 61 banks, bringing the year-end total o f registered
nonmember banks to 290 compared to 262 a year earlier. Additions
included two registered banks that withdrew from the Federal Re
serve System and six banks that converted from national to State
charters. Termination of the registration o f 33 banks resulted
primarily from their merging into other operating banks or be
coming subsidiaries o f bank holding companies.
Changes in bank ownership and loans secured by bank stock.
Section 7 of the Federal Deposit Insurance Act, as amended in
1964, requires the chief executive officer of an insured bank to
report to the appropriate Federal supervisory agency any change in
the bank's outstanding voting stock that results in a change of
control of the bank. In addition, a report is required whenever any
insured bank makes a loan secured by 25 percent or more of the
outstanding stock of an insured bank (except stock held for more
than 1 year or for newly organized banks). This report is filed by
the institution making such a loan with the supervisory agency
having primary responsibility for the bank whose stock secures the
loan. Banks must also report any change or replacement of the
bank's chief executive officer or of any director that occurs during
a 12-month period following the change in control. The Corpora
tion received 483 notices of change in control involving insured
nonmember banks during 1974.
Bank security. Under the Bank Protection Act of 1968 the Cor
poration has responsibility, with respect to banks under its general
supervision, to establish minimum standards for the installation,
maintenance, and operation of security devices and procedures to
20
F E D E R A L DEPOSIT INSURANCE CORPORATION
discourage certain external bank crimes, and to assist in apprehend
ing persons who commit those crimes. Part 326 of the Corpora
tion's rules and regulations was adopted in early 1969 to implement
the Bank Protection Act, and on November 1, 1973, several re
visions were adopted. Each bank is required, under section 326.5 of
the Corporation's rules and regulations to submit compliance re
ports as of the last business day of June of each calender year, and
to submit crime reports following the perpetration of a robbery,
burglary, or nonbank employee larceny. During 1974 the Corpora
tion received 833 crime reports filed pursuant to section 326.5(d)
of its regulations.
Supervisory training activities. Formal programs for bank exam
iners include, for new trainees, a course in the fundamentals of
banking and bank examinations; for assistant examiners, a second
course emphasizing accrual accounting, audit techniques, and bank
operations, with a portion devoted to examinations of computer
ized banks; and for senior assistant examiners, a program centering
on credit analysis, asset appraisal, bank management simulation,
and Corporation policies and objectives. An advanced course in
examination of computerized banks, and basic and advanced
courses in examining trust departments are also included for bank
examiners. A course designed to provide further advanced training
for senior examiners was recently initiated.
During 1974, the number of examiners from the Corporation,
State banking departments, and foreign central banks participating
in programs of the Bank Examination School totaled approximately
1,100. The participation by the State banking departments involved
about 150 examiners under a joint program with the Conference of
State Bank Supervisors. The numbers o f participants under these
various programs were approximately the same as in 1973.
Employees enrolled during 1974 in training courses outside the
Corporation included 80 in graduate and specialized banking
schools, and others at the American Institute of Banking and in
miscellaneous programs sponsored by Government agencies and
private organizations.
Research and statistics. The Federal bank supervisory agencies
receive a report of condition quarterly and a report of income and
expenses annually from banks for which the respective agencies
have general supervisory responsibility. The Corporation also
receives semiannual reports of condition from noninsured banks. The
data for all banks, collected on reporting forms that are identical
among the Federal agencies, are processed by the Corporation and
are published for the mid-year and year-end call dates.
During 1974, the Corporation's Research Division conducted, or
participated in, surveys of the geographic distribution of deposit
accounts, trust assets o f insured commercial banks, mortgage rates
SUPERVISO RY A C T IV IT IE S
21
and mortgage lending by banks, and interest rates paid on savings
and time deposits. Results of these surveys are released in publica
tions of the FDIC and other Government agencies. Two other sur
veys were initiated during the year. A monthly survey of insured
and noninsured mutual savings banks was instituted to gather in
come and deposit flow data. Weekly reports on various deposit and
cash items from a sample of nonmember commercial banks were
initiated on a test basis in July to determine whether these data
would be useful in improving the Federal Reserve System's esti
mates of the nation's money supply.
During 1974 several "Working Papers" were prepared by staff
members of the Division of Research. These papers are not to be
construed as official Corporation publications. The analytical tech
niques used and the conclusions reached are the responsibility of
the author and in no way represent a policy determination endorsed
by the Federal Deposit Insurance Corporation.
Working
Paper N um ber
74— 1
"Recursive Bank Asset Management: Actual Versus O ptim al Re
sults" by David A. Walker and John A. Castner, Jr.
74— 2
"Dem and fo r Commercial Bank Production Workers and A d
m inistrators: Demand Deposit O perations" by W illiam A . Longbrake and H. Douglas M errill.
74— 3
"Problem Banks: Id e n tifica tio n and Characteristics" by Joseph
F. Sinkey, Jr. and David A. Walker.
74— 4
" A M ultivariate Statistical Analysis o f the Characteristics o f
Problem Banks" by Joseph F. Sinkey, Jr.
74— 5
"O u tp u t M ix and Jointness in Production in the Banking F irm "
by Zvi Adar, Tam ir Agmon, and Yair E. Orgler.
74— 6
"T h e Recent Loan Loss Experience of New M inority-O w ned
Commercial Banks" by John T. Boorman.
74— 7
"D iffe re n tia l Effects o f Single-Plant, M ulti-Plant, and M u lti-F irm
Organizational Forms on Cost E fficiency: A Commercial Bank
ing Illu s tra tio n " by W illiam A. Longbrake.
74— 8
"Reserve Requirements, Federal Reserve Membership and Bank
Perform ance" by Gary G. G ilbert and Manferd 0 . Peterson.
74— 9
"T h e NOW A ccount E xperim ent" by W illiam A . Longbrake and
Sandra B. Cohan.
74— 10
"T h e Im pact o f Changes in Federal Reserve Membership on
Commercial Bank Performance" by Gary G. G ilbert and Man
ferd 0 . Peterson.
F E D E R A L DEPOSIT INSURANCE CORPORATION
22
Working
Paper Number
74— 11
" A n Integrated Model fo r Accounts Receivable P o licy" by Zvi
Lieber and Y air E. Orgler.
74— 12
" A Comparative Analysis o f the P o rtfo lio and Performance
Operations o f Problem Commercial Banks'" by Joseph F. Sinkey, Jr.
74— 13
"C apital Adequacy and Net Recoveries fro m Failed Banks" by
Y air E. Orgler.
74— 14
"M o n e y Illusion and the N e u tra lity o f M o n e y" by Stephen A.
Buser.
74— 15
"T h e Failure o f the United States National Bank o f San Diego:
A P o rtfo lio and Performance A nalysis" by Joseph F. Sinkey, Jr.
74— 16
"Com m ercial Banking Structure in the United States: Its De
velopm ent and F u tu re " by W illiam A. Longbrake and John A .
Haslem.
74— 17
' Adverse P ublicity and Bank Deposit Flows: The Cases o f
Franklin National Bank o f New Y o rk and United States Na
tional Bank o f San Diego" by Joseph F. Sinkey, Jr.
74— 18
"F inancial Policy in Bank Holding Companies" by W illiam A.
Longbrake.
74— 19
" A Survey o f Some Major Issues on E lectronic Funds Transfer
Systems" by W illiam H. Roelle and David A. Walker.
The Corporation announced during the year the awarding of dis
sertation fellowships to three Ph.D. candidates. These fellowships
are intended to promote research in banking and related fields as
part of a program to improve and expand the information available
to the bank supervisory agencies and the banking community. They
are designed to provide graduate students an opportunity to devote
full time to the preparation of their dissertations. Selection was
based on the assessment of the importance of their proposed re
search, the relevance of their research to the interests of the Cor
poration, and the ability of the applicants to complete their pro
jects successfully and within the time covered by the fellowships.
ADMINISTRATION OF THE CORPORATION
Structure and employees. The Corporation is managed by a
three-member Board of Directors. Two are appointed to the Board
by the President of the United States, with the advice and consent
of the Senate, and the third member is the Comptroller of the
A D M IN IS T R A T IO N OF THE CORPORATION
23
Currency, also a Presidential appointee. Members appointed directly
to the Board serve 6 years, while the Comptroller of the Currency
serves a 5-year term of office. There was no change in the member
ship of the Board o f Directors during 1974. Mr. Frank Wille, who
was elected Chairman of the Board on April 1, 1970, continued in
that capacity throughout 1974. Continuing as Directors were Mr.
George A. LeMaistre, who took office on August 1, 1973, and Mr.
James E. Smith, who was sworn in as Comptroller of the Currency
on July 5, 1973.
Corporation officials, Regional Directors, and Regional Offices
are listed on pages v and vi.
The Corporation's total employment increased by 167 during
1974 to 2,808 at the end of the year (table 9). Of this increase,
118 were temporary employees, including clerical workers em
ployed at banks in process of liquidation. Over 72 percent of the
Corporation's employees were field bank examiners and others as
signed to the Regional Offices. The turnover rate for field exam
iners in 1974 was 11.4 percent compared to 11.2 percent for 1973.
Among the 182 bank examiners leaving the Corporation's employ
ment during the year were 60 who resigned to accept positions with
banks, other financial institutions, or other supervisory agencies.
Table 9. NUMBER OF OFFICERS AND EMPLOYEES
OF THE FED ER AL DEPOSIT INSURANCE CORPORATION, DECEMBER 31, 1973 A N D 1974
Washington
office
T otal
Regional and oth e r
fie ld offices
U n it
T o ta l ...............................................................
D ire c to rs ...................................................
E xecutive O f f ic e s ..................................
Legal D iv is io n .........................................
D ivision o f Bank Supervision ............
Division o f L iq u id a tio n ........................
D ivision o f R ese a rch.............................
O ffice o f the C o n tro lle r ......................
O ffice o f Management Systems
and Financial A u d i t s ......................
1974
1973
1974
1973
1974
1973
2 ,8 0 8 *
2 ,6 4 1 *
775
691
2,033
1,950
3
39
78
2,054
233
91
193
3
41
79
1,943
190
89
190
3
39
70
191
85
91
179
3
41
70
121
83
89
178
0
0
8
1,863
148
0
14
0
0
9
1,822
107
0
12
117
106
117
106
0
0
^Includes 261 nonperm anent employees on short term a p p o in tm e n t or when actually em ployed in 1974, and 143 in 1973.
IMonpermanent employees include college students participating in the w ork-stu d y program , clerical w orkers em ployed on a
tem porary basis at banks in process o f liq u id a tio n , and o th e r personnel.
FINANCES OF THE CORPORATION
Assets and liabilities. The Corporation's assets totaled $8,178
million on December 31, 1974 (table 10). Cash and U.S. Govern
ment securities, valued at amortized cost plus accrued interest,
amounted to $5,985 million. Various assets acquired in receivership
and deposit assumption transactions, including the subrogated
claims of depositors against closed insured banks and assistance to
operating insured banks, totaled $2,185 million after allowance of
F E D E R A L DEPOSIT INSURANCE CORPORATION
24
Table 10. STATEMENT OF F IN A N C IA L CONDITIO N,
FEDERAL DEPOSIT INSURANCE CORPORATION,
DECEMBER 31, 19741
(In thousands)
ASSETS
$
U.S. Government obligations:
Securities at a m ortized cost (face value $ 5 ,8 8 1 ,3 1 5 ; cost $ 5 ,8 6 5 ,9 6 5 ) .................
Accrued interest r e c e iv a b le ...................................................................................................
Assets acquired in receivership and deposit assumption transactions:
Subrogated claim s o f depositors against closed insured b a n k s ..................................
Net insured balance:; o f depositors in closed insured banks, to be subrogated
when paid-see related lia b ility ........................................................................................
E q u ity in assets a cq jire d under agreements w ith insured banks2 ............................
Assets purchased o u t r i g h t ......................................................................................................
$ 5 ,8 7 4 ,3 7 4
91,868
$
18,857
5,966,242
53,644
903
2,113,341
4,609
$2,172,497
Less reserves fo r lo s s e s ............................................................................................................
Notes purchased to fa cilita te deposit assum ption:
(C rocker N ational C orp., $ 5 0 ,0 0 0 ; S outhern B a n corporation, $ 8 ,0 0 0 ;
E uropean-A m erican Bank & T ru st C om pany, $ 100,000)
Principal ...............................................................................................................................
A ccrued interest re c e iv a b le ..............................................................................................
Assistance to operating insured banks:
Notes purchased:
(Bank o f the C o m m onw ealth, $ 3 5 ,5 0 0 ; U n ity Bank & T ru st, $1,500)
P rin c ip a l..................................................................................................................................
A ccrued interest re c e iv a b le .............................................................................................
Miscellaneous assets
$
$
185,743
1,986,754
158,000
3,445
161,445
37,000
1
37,001
......................................................
628
Land and office building, less depreciation on b u ild in g .........................................
6,824
Total a s s e t s ........................................................................................
$8,177,751
L IA B IL TIE S A N D DEPOSIT IN S U R A N C E FU N D
Accounts payable and accrued lia b ilitie s ...............................................................
$
4,494
Earnest money, escrow funds and collections held for o t h e r s .................................
1,630
Accrued annual leave of e m plo ye es......................................................................
2,979
Due insured banks:
N et assessment incom e credits available Ju ly 1, 1975 (see table 1 2 ) ..........................
O ther assessment credits available im m e d ia te ly ...............................................................
$
285,433
4,831
290,264
$1,723,000
30,291
1,753,291
Liabilities incurred in receivership and deposit assumption transactions:
Federal Reserve Bank indebtedness:
N ote payable .......................................................................................................................
Accrued interest payable3
............................................
Net insured balances of depositors in closed insured bank s-see related asset . . .
Total liab ilitie s ..................................................
Deposit insurance fund, net income accumulated since inception (see table 11) ...
Total liabilities and deposit insurance f u n d ...........................................
903
$2,053,561
6,124,190
$8,177,751
1These statements do not in clu d e a c c o u n ta b ility fo r the assets and lia b ilitie s o f the closed insured banks fo r w hich the C orporation
acts as receiver or liq u id a tin g agent.
2 E q u ity in assets acquired under agreements w ith insured banks increased $ 1 ,9 2 8 b illio n during calendar year 1974. A p p ro x i
m ately $1,723 b illio n o f th is increase is related to the closing o f F ra n k lin N ational Bank on O ctober 8, 1974.
3 A ccrued interest payab e o f $30.3 m illio n represents interest fo r 84 days at the rate o f 7.52 percent simple interest per annum
on the unpaid principal am ount plus $472 thousand o f unpaid interest due on F ra n klin N ational B ank's indebtedness to the
Federal Reserve Bank c f New Y o rk . This am o u n t is subject to adjustm ent fo r certain o u t-o f-p o c k e t expenses incurred by the
C orporation as providec fo r in the A greem ent o f Sale.
reserve for losses. Of this total, approximately $1,723 million rep
resents the carrying value to the Corporation of assets acquired
upon assumption of Franklin National Bank's debt to the Federal
25
FIN ANCES OF THE CORPORATION
Reserve Bank of New York, as of the close of business the day
Franklin National Bank failed. The FDIC's headquarters building in
Washington, D.C. (which was appraised in 1972 for insurance pur
poses at approximately $12 million exclusive of land), less deprecia
tion, was valued at $6.8 million. On the same date, the Corpora
tion's liabilities totaled $2,054 million, of which $1,723 million was
the note payable to the Federal Reserve Bank of New York and
$290 million represented net assessment credits due to insured
banks.
The excess of the Corporation's assets over its liabilities consti
tutes the deposit insurance fund and represents its accumulated
income or surplus for the period since 1933. This fund, which is the
Corporation's basic resource for the protection of depositors,
amounted to $6,124 million at the end of 1974. The Corporation
also has the authority, which it has never exercised, to borrow up to
$3 billion from the U.S. Treasury whenever its Board of Directors
determines that the funds are needed for insurance purposes.
Income and expenses. The Corporation's gross revenues available
for insurance purposes reached $953 million in 1974 (table 11). Of
this amount, $587 m illion was derived from gross assessments pay
able by insured banks during the year, $357 million from interest
Table 11. STATEM ENT OF INCOME AND THE DEPOSIT INSURANCE FUND,
FED ER AL DEPOSIT INSURANCE CORPORATION,
YEAR ENDED DECEMBER 3 1 ,197 4
(In thousands)
Incom e from operations:
D eposit insurance assessments:
Assessments earned during 1974
Less net assessment incom e credits to insured b a n k s ..................................................................
..............................................
$ 5 8 7,322
285,420
$
301,902
$
301,946
350,533
7 ,115
186
8,634
$
668,042
$
59,214
A djustm ents to assessments earned in p rio r p e r io d s .........................................................................
44
Interest on U.S. G overnm ent s e c u ritie s .................................................................................................
Discounts earned on U.S. G overnm ent securities ..............................................................................
Less adjustm ent to securities in c o m e -p rio r years1..............................................................................
O ther in c o m e ...............................................................................................................................................
Total income from o p e r a tio n s ........................................
....................
Operating expenses and losses:
A d m in is tra tiv e and operating expe n se s
Provision fo r insurance lo s s e s
A dju s tm e n ts to provisions made in p rio r p e r io d s
............................................
....................................................
...................................
N onrecoverable insurance expenses incurred in pro te ctin g depositors .................
Total operating expenses and l o s s e s .........................................
Net inco m e -add itio n to the deposit insurance fu n d ....................................
$
5,625
92,238
97,863
2,111
$
$
159,188
508,854
Deposit insurance fu n d -J a n u a ry 1 , 1 9 7 4 ...........................................................................
5,615,336
Deposit insurance fu n d -D e ce m b e r 3 1,19 7 4, net income accumulated since in ce p tio n ...........
$6,124,190
1The $ 186 thousand a djustm ent to p rio r years resulted fro m restatem ent o f incom e due to : (1) a change in procedures fo r the
a m o rtiz a tio n o f prem ium s and discounts fro m a m o n th ly to a daily rate, and (2) a change fro m the "average" m ethod in accounting
fo r sales o f securities to the F IF O m ethod. These changes were im p lem ented in co n ju n ctio n w ith a u to m a tio n o f the C orporate
P o rtfo lio .
26
F E D E R A L DEPOSIT INSURANCE CORPORATION
C h a rt E
S O U R C E S A N D A P P L IC A T IO N S O F G R O S S IN C O M E
F E D E R A L D E P O S IT IN S U R A N C E C O R P O R A T IO N , 1 9 7 4
SOURCES
A P P L IC A T IO N S
$ 9 5 3 . 5 m illio n
In c o m e f r o m
S e c u r it i e s
$ 3 5 7 . 5 m illio n
A sse ssm en t
C r e d it s
$ 2 8 5 .4
m illio n
A d d e d to
G ross
A sse ssm e n ts
$ 5 8 7 . 3 m illio n
In s u r a n c e
Fund
$ 5 0 8 . 9 m illio n
O th e r
In c o m e
$ 8 .7 m illio n
\
E x p e n se s
and L o sse s
$ 1 5 9 .2 m illio n
income on the Corporation's portfolio of U.S. Government secur
ities, and $9 million from other sources. A fter deducting the Cor
poration's expenses totaling $61.1 million, additions to reserves for
insurance losses of $97.9 million, and $285 million for statutory
assessment credit, an amount of $509 million was added to the
deposit insurance fund (chart E).
Additions to reserves for insurance losses were substantially
higher in 1974 than in 1973, primarily because of the increase of
$101.7 million in reserves held against assets acquired in the U.S.
National Bank failure. Total expenses and losses were more than 50
percent above 1973. Despite this increase, the coverage of expenses
and losses by the Corporation's gross income was 6.0 times, com
pared to 8.1 times in 1973. The dollar amount added to the deposit
insurance fund in 1974, however, was appreciably larger than in
1973.
The basic assessment rate established in 1935 by Federal stat
ute— 1/12 of one percent of total assessable deposits— has not been
changed; however, legislation enacted in 1950 reduced the effective
rate of assessments by providing for a credit to be applied against
forthcoming assessments payable in cash. This credit, set initially at
60 percent and raised to 66 2/3 percent in 1961, is derived by
applying the percentage to the gross assessments due in the calendar
27
FIN ANCES OF THE CORPORATION
Table 12. DETER M IN ATIO N AND D ISTRIBUTION OF
NET ASSESSMENT INCOME,
FEDERAL DEPOSIT INSURANCE CORPORATION,
YEAR ENDED DECEMBER 31, 1974
(In thousands)
Determination of net assessment income:
T o ta l assessments th a t became due during the calendar year............................................
Less:
A d m in is tra tiv e and operating e xpenses...........................................................................
Net ad d itio n s to reserve to provide fo r insurance losses:
Provisions applicable to banks assisted in 1974........................................................
A djustm ents to provisions fo r banks assisted in p rio r y e a rs ................................
$ 5 8 7,322
$ 59,214
$
5,625
92,243
97,868
Nonrecoverable insurance expenses incurred to p ro te c t d e p o s ito r s - n e t...............
2,111
T o ta l deductions ......................................................................................................
$ 159,193
Net assessment income for 1974 ............................................................................
$428,129
Distribution of net assessment income, December 3 1,1974:
Net assessment incom e fo r 1974:
33 1/3% transferred to the deposit insurance f u n d .....................................................
66 2/3% credited to insured b a n k s ...................................................................................
$ 1 4 2,710
285,419
T o t a l ...................................................................................................
$428,129
Percentage o f
to ta l assess
m ent becoming
due in 1974
Allocation of net assessment income credit among insured banks, December 31,1974:
C redit fo r 1974 ............................................................................................................................
A djustm ents o f credits fo r p rio r y e a r s ...................................................................................
$ 2 8 5,419
-3 8
48.596%
.006
T o t a l ...................................................................................................
$285,381
48.590%
year after subtracting the Corporation's administrative and oper
ating expenses and insurance losses and reserves for losses in this
calendar year. The net assessments received from banks in 1974
amounted to $302 million, or about 51.4 percent of the gross
assessments earned by the Corporation, and represented about 1/23
of one percent of the banks' assessable deposits. The determination
and allocation of net assessment income in 1974 and sources and
application of funds are shown in tables 12 and 13.
Table 13. SOURCES AND APPLICATION OF FUNDS,
FEDERAL DEPOSIT INSURANCE CORPORATION,
YEAR ENDED DECEMBER 31, 1974
(In thousands)
Percent
Funds provided by:
N et deposit insurance assessments......................................................................................................
Incom e fro m U.S. G overnm ent securities, less am ortized net d is c o u n ts ..................................
M atu ritie s and sales o f U.S. G overnm ent s e c u ritie s ......................................................................
C ollections on assets acquired in receivership and deposit assum ption tra n s a c tio n s ............
Total funds p r o v id e d .................................................................................
301,946
350,532
1,035,021
81,989
17.1
19.8
58.5
4.6
$1,769,488
100.0
$
Funds applied to:
A d m in is tra tiv e , operating, and insurance expenses, less miscellaneous c r e d its ......................
A c q u is itio n o f assets in receivership and deposit assum ption tra n s a c tio n s .............................
Purchase o f U.S. G overnm ent se cu ritie s............................................................................................
Decrease in assessment credits due b a n k s ..........................................................................................
N et changes in other assets and lia b ilitie s ..........................................................................................
Total funds a p p lie d ...................................................................................
52,555
344,367
1,348,394
8,803
15,369
3.0
19.4
76.2
.5
.9
$1,769,488
100.0
$
28
F E D E R A L DEPOSIT INSURANCE CORPORATION
Income and the deposit insurance fund. Additions to the deposit
insurance fund and other tabulated data are shown in table 14.
Since the beginning of Federal deposit insurance, 87.2 percent of
the Corporation's net income (after deduction o f deposit insurance
credits in 1950-1974) has been added to the fund (charts F and G).
Total deposits in all insured banks increased about 8.7 percent in
1974, to $833.2 billion at the end of the year. Reflecting the in
crease in November 1974 in the general lim it of deposit insurance
Table 14. INCOME AND EXPENSES, FEDERAL DEPOSIT INSURANCE CORPORATION,
BY YEiAR, FROM BEGINNING OF OPERATIONS,SEPTEMBER 11,1933,
TO DECEMBER 31, 1974
(In millions)
Incom e
Interest
on capital
s tock3
A d m in is
trative
and
operating
expenses
Net
income
added to
deposit
insurance
fu n d 4
$897.8
$224.3
$80.6
$592.9
$ 6,124.2
159.2
108.2
59.7
60.3
46.0
34.5
29.1
27.3
19.9
22.9
18.4
15.1
13.8
14.8
12.5
12.1
11.6
9.7
9.4
9.0
7.8
7.3
7.8
6.6
7.8
6.4
7.0
9.9
10.0
9.4
9.3
9.8
10.1
10.1
12.9
16.4
11.3
12.2
10.9
11.3
10.0
100.0
53.8
10.1
13.4
3.8
1.0
.1
2.9
.1
5.2
2.9
0.7
0.1
1.6
0.1
0.2
T otal
$7,0 2 2.0
$3,760.5
$ 3,261.5
6K8.1
5(11.0
467.0
4 15.3
382.7
335.8
2&5.0
2f;3.0
241.0
214.6
197.1
181.9
161.1
147.3
144.6
136.5
126.8
117.3
111.9
105.7
99.7
94.2
88.6
83.5
84.8
111.1
145.6
H 7 .5
130.7
121.0
99.3
86.6
69.1
62.0
E5.9
E1.2
47.7
48.2
4 3.8
20.8
7.0
302.0
246.0
188.5
175.8
159.3
144.0
132.4
120.7
111.7
102.2
93.0
84.2
76.5
73.4
79.6
78.6
73.8
69.1
68.2
66.1
62.4
60.2
57.3
54.3
54.2
122.7
119.3
114.4
107.0
93.7
80.9
70.0
56.5
51.4
46.2
40.7
38.3
38.8
35.6
11.5
366.1
315.0
278.5
239.5
223.4
191.8
162.6
142.3
129.3
112.4
104.1
97.7
84.6
73.9
65.0
57.9
53.0
48.2
43.7
39.6
37.3
34.0
31.3
29.2
30.6
28.4
26.3
43.1
23.7
27.3
18.4
16.6
12.6
10.6
9.7
10.5
9.4
9.4
8.2
9.3
7.0
T otal
1 9 3 3 -7 4 ..
Deposit
insurance
losses and
expenses
Deposit
insurance
assess
m ents1
Y ear
1974
1973
1972 ..........
1971 ,
1970
1969
1968 ,
1967 ..........
1966 ..........
1965 ..........
1964 . , .
1963
1962 .
1961 . .
1960
1959
1958
1957
1956 .
1955
1954 , ,
1953 .
1952 ..........
1951
1950
1949
1948 .
,.
1947
1946
1945
1944
1943
1942
1941 .
1940
1939 .
.
1938 ..........
1937
1936 .
1935 . .
1 9 3 3 -3 4 ..
Expenses and losses
Invest
ments
and
oth e r
sources2
(4 )
0.1
0.3
0.3
0.1
0.1
0.8
1.4
0.3
0.7
0.1
0.1
0.1
0.1
0.2
0.5
0.6
3.5
7.2
2.5
3.7
2.6
2.8
0.2
0.6
4.8
5.8
5.8
5.8
5.8
5.8
5.8
5.8
5.8
5.8
5.8
5.8
5.8
5.6
59.2
54.4
49.6
46.9
42.2
33.5
29.0
24.4
19.8
17.7
15.5
14.4
13.7
13.2
12.4
11.9
11.6
9.6
9.1
8.7
7.7
7.2
7.0
6.6
6.4
6.1
5.7
5.0
4.1
3.5
3.4
3.8
3.8
3.7
3.6
3.4
3.0
2.7
2.5
2.7
4 .2 5
508.9
452.8
407.3
355.0
336.7
301.3
265.9
235.7
221.1
191.7
178.7
166.8
147.3
132.5
132.1
124.4
115.2
107.6
102.5
96.7
91.9
86.9
80.8
76.9
77.0
144.7
138.6
147.6
120.7
111.6
90.0
76.8
59.0
51.9
43.0
34.8
36.4
36.0
32.9
9.5
-3 .0
1 For the period fro m 1950 to 1974, inclusive, figures are net a fte r deducting the p o rtio n o f net assessment incom e credited to
insured banks pursuan: to provisions o f the Federal D eposit Insurance A c t o f 1950, as amended. Assessment credits to insured
banks fo r these years a r io u n t to $3,693 m illio n .
2 1ncludes $ 1 1.0 m illio n o f interest and allowable return received on fun d s advanced to receivership and deposit assum ption cases and
$12 m illio n o f interest on capital notes advanced to fa c ilita te deposit assum ption transactions and assistance to open banks.
3 Paid in 1950 and 1951, b u t allocated among years to w h ich it applies. In itia l capital o f $289 m illio n was retired by paym ents to the
U.S. Treasury in 1947 end 1948.
4 Assessments collected from members o f the te m p o ra ry insurance funds w hich became insured under the perm anent plan were
credited to th e ir accounts at the te rm in a tio n o f the tem porary funds and were applied tow ard paym ent o f subsequent assessments
becom ing due u nder 1he perm anent insurance fu n d , resulting in no incom e to the C orporation fro m assessments during the
existence o f th e tem p o ra ry insurance funds.
5 N et a fte r deducting the p o rtio n o f expenses and losses charged to banks w ith d ra w in g fro m the tem porary insurance funds on June
30, 1934.
29
FINANCES OF THE CORPO RATIO N
IN C O M E , E X P E N S E S A N D L O S S E S ,
A N D A D D IT IO N S T O T H E D E P O S IT IN S U R A N C E F U N D ,
F E D E R A L D E P O S IT IN S U R A N C E C O R P O R A T IO N ,
1 9 5 0 -1 9 7 4
C h a rt F
M illions
of Dollars
M illions
of Dollars
------------------------------------------------------------------------- E X P E N S ES-300
..*>•
-------------------------------
AND
LOSSES
--------------------------- 200
IN C O M E
.......... ^ - ' ^ A D D E D
TO
D E P O S IT IN S U R A N C E
. . . . . j i - - - ----------------------------------------------F U N D -----------------------------------------------------100
— I— I—
1950 '51
hH —
'5 2
'5 3
I I
'5 4
'5 5
11 I1 I ■■I - I- 1—
'5 6
'57
'5 8
'5 9
'6 0
'61
I— I— I— I- f f- I— I- 1- I- I—
'6 2
'6 3
'6 4
'6 5
'6 6
'6 7
'6 8
'6 9
'7 0
'71
'7 2
h -f-
'7 3
'7 4
30
F E D E R A L DEPOSIT INSURANCE CORPORATION
from $20,000 to $40,000, and to $100,000 for some State and
local government deposits, the amount of insured deposits reached
an estimated total of $520.3 billion on December 31, 1974. The
latter figure represents an increase o f $55 billion from 1973, and in
relation to insured deposits, the deposit insurance fund declined
from 1.21 percent to 1.18 percent (table 15). The ratio of the fund
to total deposits in insured banks, .73 percent, was unchanged from
1973.
Audit. Thti financial transactions of the Corporation are audited
annually by the General Accounting Office. A continuous internal
audit is provided by the Financial Audits Branch, Office of Manage
ment Systems and Financial Audits.
Table 15. INSURED DEPOSITS AND THE DEPOSIT INSURANCE FUND, 1934-1974
Deposits in
insured banks
(in m illio n s)
Year
(Dec. 31)
T otal
Insured1
1974 ...................
1973 ......................
1972 ......................
1 9 7 1 ......................
$833,227
766,509
6 9 7,480
610,685
1970 ......................
545,198
$520,309
4 6 5 ,6 0 0
41 9 ,7 5 6
3 7 4 ,5684
349,581
1969
1968
1967
1966
1965
495,858
4 9 1,513
4 48,7 0 9
4 0 1,096
3 7 7,400
1964 ......................
1963 ......................
1962 ......................
1 9 6 1 ......................
1960 ......................
1959
1958
1957
1956
1955
Percent
age of
deposits
insured
Ratio o f deposit
insurance fu n d toT otal
deposits
Insu red
deposits
.73%
.73
.74
.78
.80
1.18%
1.21
1.23
1.274
1.25
64.1
$ 6,124.2
5,615.3
5,158.7
4,739.9
4,379.6
313,085
296,701
261,149
234,150
209,690
63.1
60.2
58.2
58.4
55.6
4,051.1
3,749.2
3,485.5
3,252.0
3,036.3
.82
.76
.78
.81
.80
1.29
1.26
1.33
1.39
1.45
348,981
3 1 3 ,3 0 4 2
2 9 7 ,5 4 8 3
281,304
260,495
191,787
177,381
170,2104
160,3 0 9 4
149,684
55.0
56.6
57 .2 4
5 7 .04
57.5
2,844.7
2,667.9
2,502.0
2,353.8
2,222.2
.82
.85
.84
.84
.85
1.48
1.50
1.474
1.474
1.48
......................
......................
......................
......................
......................
247,589
2 42,445
225,507
219,393
212,226
142,131
137,698
127,055
121,008
116,380
57.4
56.8
56.3
55.2
54.8
2,089.8
1,965.4
1,850.5
1,742.1
1,639.6
.84
.81
.82
.79
.77
1.47
1.43
1.46
1.44
1.41
1954 ......................
1953 ......................
1952 ......................
1 9 5 1 ......................
1950 ......................
2 03,195
193,466
188,142
178,540
167,818
110,973
105,610
101,842
96,713
91,359
54.6
54.6
54.1
54.2
54.4
1,542.7
1,450.7
1,363.5
1,282.2
1,243.9
.76
.75
.72
.72
.74
1.39
1.37
1.34
1.33
1.36
1949
1948
1947
1946
1945
......................
......................
......................
......................
......................
156,786
153,454
154,096
148,458
157,174
76,589
75,320
76,254
73,759
67,021
48.8
49.1
4 9.5
49.7
42.4
1,203.9
1,065.9
1,006.1
1,058.5
929.2
.77
.69
.65
.71
.59
1.57
1.42
1.32
1.44
1.39
1944 ......................
1943 ......................
1942 ......................
1 9 4 1 ......................
1940 ......................
134,662
111,650
89,869
71,209
65,288
56,398
48 ,4 4 0
32,837
28,249
26,638
41.9
43.4
36.5
39.7
40.8
804.3
703.1
616.9
553.5
496.0
.60
.63
.69
.78
.76
1.43
1.45
1.88
1.96
1.86
57,485
50,791
48,228
50,281
4 5 ,125
40 ,0 6 0
24,650
23,121
22,557
22,330
20,158
18,075
42.9
45.5
46.8
44.4
44.7
45.1
452.7
420.5
383.1
343.4
306.0
291.7
.79
.83
.79
.68
.68
.73
1.84
1.82
1.70
1.54
1.52
1.61
1939
1 93
1937
1936
1935
1934
......................
......................
......................
......................
......................
......................
8 . . . . ............
......................
......................
......................
......................
62.5%
60.7
60.2
6 1 .3 4
D eposit
insurance
fu n d
(in
m illio n s)
1 Figures estim ated by a p plying, to the deposits in the various types o f account at the regular call dates, the percentages insured as
determ ined fro m special reports secured fro m insured banks.
2 Decem ber 20, 1963.
3 Decem ber 28, 1962.
4 Revised.
r
\
MERGER DECISIONS OF THE CORPORATION
PART TWO
V.
J
BANKS IN V O L V E D IN ABSORPTIONS APPROVED BY
THE FE D E R A L DEPOSIT INSURANCE CORPO RATIO N IN 1974
State
Town or C ity
Alabama
Andalusia
Anderson
Bayou La Batre
F o rt Payne
Goodwater
Guntersville
Hartselle
Lineville
Roanoke
Selma
Tuskegee
California
Beverly Hills
Lakeport
San Francisco
Bank
Alabama Bank o f Andalusia (in
organization; change title to
Covington C ounty Bank)
Covington C ounty Bank
Alabama Bank o f Lauderdale
C ounty (in organization;
change title to Farmers Bank)
Farmers Bank
Farmers and Marine Bank
Mobile C ounty Bank (in organiza
tion)
F o rt Payne Bank
Valley Bank of F o rt Payne (in
organization; change title to
F o rt Payne Bank)
Alabama Bank o f Goodwater (in
organization; change title to
C ity Bank o f Goodwater)
C ity Bank o f Goodwater
Bank o f Guntersville (in organiza
tio n ; change title to Citizens
Bank o f Guntersville)
Citizens Bank o f Guntersville
American Bank & Trust Company
Bank o f Hartselle (in organization;
change title to Am erican Bank
& T rust Company)
Alabama Bank of Linevilie (in
organization; change title to
C ity Bank o f Lineville)
C ity Bank o f Lineville
Alabama Bank o f Roanoke (in
organization; change title to
C ity Bank o f Roanoke)
C ity Bank o f Roanoke
Alabama Bank o f Selma (in organi
zation; change title to Citizens
Bank & T rust Company)
Citizens Bank & T rust Company
Alabama Bank of Tuskegee (in
organization; change title to
C ity Bank o f Tuskegee)
C ity Bank o f Tuskegee
Ahmanson Bank and T rust Com
pany
C alifornia Overseas Bank
Bank o f Lake C ounty
New Bank o f Lake C ounty (in
organization; change title to
Bank o f Lake C ounty)
Barclays Bank of C alifornia
L ib e rty National Bank
The Chartered Bank o f London
33
Page
164
164
165
165
165
165
162
162
164
164
163
163
165
165
164
164
164
164
165
165
164
164
144
144
166
166
131
79
79
34
F E D E R A L DEPOSIT INSURANCE CORPO RATIO N
State
T o w n o r C ity
C onnecticut
The C ounty Bank, Santa Barbara—
Carpinteria
131
Deep River
Deep River Bank and T rust Com
pany
C om m unity Banking Company
125
125
C laym ont Savings and Loan Asso
ciation
Bank o f Delaware
Commercial Trust Company
W ilm ington Savings Fund Society
105
43
43
105
Claym ont
W ilm ington
Georgia
Page
Santa Barbara
N orth Branford
Delaware
Bank
Chamblee
Dalton
Dublin
Rentz
Stone M ountain
Peachtree Bank and T ru st Com
pany
50
Dalton State Bank (in organization) 163
H am ilton Bank of Dalton
163
Citizens and Southern Bank of
Dublin
81
The Rentz Banking Company
81
The Citizens Bank of Georgia
50
Hawaii
Honolulu
FHB Bank (in organization; change
title to First Hawaiian Bank)
164
First Hawaiian Bank
164
Idaho
Grangeville
Pocatello
Bank o f Central Idaho
53
IBT, Inc. (in organization)
166
Idaho Bank & T rust Co.
53/
Madison State Bank (in organiza
tio n ; change title to V alley Bank)166
Valley Bank
166
Rexburg
Illinois
Chicago
MBT Bank (in organization;
change title to Madison Bank
and Trust Company)
165
Madison Bank and Trust Company 165
Indiana
M iddletow n
Farmer's State Bank (change
title to Farmers State Bank of
Henry County)
Farmers State Bank
Farmers-Central Bank
Citizens State Bank
Mooreland
West Lebanon
W illiam sport
Iowa
A tla n tic
Clear Lake
Creston
Cromwell
F o rt Dodge
H arcourt
Sioux C ity
Ventura
First W hitney Bank and Trust
W hitney Building Company, Inc.
C om m unity State Bank of Clear
Lake
Iowa State Savings Bank
Cromwell State Savings Bank
Union Trust & Savings Bank
H arcourt Savings Bank
Farmers Loan and Trust Company
The T oy National Bank of Sioux
C ity
Ventura State Bank
97
97
145
145
96
96
140
139
139
159
159
102
102
140
B A N K ABSORPTIONS APPROVED BY THE CORPORATION
Bank
35
State
Town or C ity
Kentucky
Louisville
Citizens F id e lity Bank and Trust
Company
162
Citizens F id e lity State Banking and
T rust Company (in organization) 162
Maryland
Salisbury
The Shoreman's Bank (in organiza
tio n ; change title to Truckers
and Savings Bank)
165
Truckers and Savings Bank
165
Massachusetts
Lynn
N orth Shore Bank and Banking
Company
165
N orth Shore Bank and T ru st Com
pany (in organization)
165
Michigan
Ann A rb o r
Ann A rb o r Bank
162
Ann A rb o r State Bank (in organiza
tion)
162
55
The Clio State Bank
Frankenm uth Bank & T rust Com
55
pany
155
The Hastings C ity Bank
FSB Bank (in organization; change
164
title to First Security Bank)
164
F irst S ecurity Bank
Farmers State Bank o f M iddleville 155
CBT Bank Company (in organiza
164
tion)
Chemical Bank and T ru st Company 164
Bank o f M ount Clemens (in organi
zation; change title to M ount
166
Clemens Bank)
166
M ount Clemens Bank
FSN Bank (in organization)
166
First State Bank o f Newaygo
166
OSS Bank (in organization; change
title to The Oscoda State
Savings Bank)
166
The Oscoda State Savings Bank
166
OSB Bank (in organization)
165
The Owosso Savings Bank
165
First State Bank o f Saginaw
67
Manufacturers Bank o f Saline (in
organization; change title to
Saline Savings Bank)
164
Saline Savings Bank
164
SBTC Bank (in organization)
162
Security Bank and T rust Company 162
The State Bank o f Vassar
67
First Michigan Bank and T rust Com
pany
162
Zeeland State Bank (in organization;
change title to First Michigan
Bank and Trust Company)
162
Clio
Frankenm uth
Hastings
Ionia
M iddleville
Midland
M ount Clemens
Newaygo
Oscoda
Owosso
Saginaw
Saline
Southgate
Vassar
Zeeland
Page
36
F E D E R A L DEPOSIT INSURANCE CORPORATION
State
T o w n o r C ity
Mississippi
Grenada
Greenwood
Kosciusko
Lena
Tupelo
West Point
Bank
Page
Grenada Bank
Grenada Trust and Banking Com
pany
First National Bank o f Greenwood
Merchants and Farmers Bank
The Bank o f Lena
Bank o f Mississippi
The Peoples Bank and T ru st Com
pany
Clay C ounty Bank and T ru st Com
pany
111
83
111
133
133
83
103
103
Missouri
St. Louis
Central West End Bank
C ity Bank
85
85
Nebraska
N orth Platte
Wallace
American Security Bank
Citizens S ecurity Bank
69
69
New Hampshire
Berlin
Berlin C ity National Bank (change
title to Berlin C ity Bank)
C ity Savings Bank of Berlin
Colebrook Guaranty Savings Bank
The Colebrook National Bank
(change title to The First
Colebrook Bank)
Colebrook
New Y o rk
Albany
Beacon
B uffalo
Cheektowaga
Elmira
F o rt Edward
Groveland
Hudson
Ithaca
Kingston
New Y o rk
Randolph
Rochester
Tarry tow n
T ro y
Tuckahoe
A lbany Savings Bank
Home Savings Bank o f Upstate
New Y o rk
Beacon Savings Bank
Erie C ounty Savings Bank
Frontier Savings and Loan Asso
ciation
The Elmira Savings Bank
Mechanics Savings Bank of Elmira
F o rt Edward-Hudson Falls Savings
and Loan Association
Groveland State Bank
Hudson Savings and Loan Asso
ciation
Savings Bank o f Tom pkins C ounty
Heritage Savings Bank
Bradford Trust Company
European-American Bank & T rust
Company
Franklin National Bank
State Bank o f Randolph
Marine Midland Bank-Rochester
Westchester C ounty Savings Bank
First Savings and Loan Association
of T ro y
T ro y Co-operative Savings and Loan
Association
Tuckahoe Savings and Loan Asso
ciation
45
45
146
146
135
57,
148
63
63
99
48
57
138
78
99
148
137
138
137,
151
138
142
135
94
142
BA N K ABSORPTIONS APPROVED BY THE CORPO RATIO N
State
T o w n o r C ity
Waverly
Wei Isville
N orth Carolina
Charlotte
Raleigh
Ramseur
Wilson
Ohio
Bellevue
Clyde
Columbus
Harrisburg
Wooster
Bank
Waverly Savings and Loan Asso
ciation
F irst T rust U nion Bank
The Bank o f Commerce
First-Citizens Bank & T ru st Com
pany
The Bank of Coleridge
Branch Banking and T ru st Com
pany
Wilson C ounty Bank and Trust
Company (in organization;
change title to Branch Banking
and T rust Company)
37
Page
48
151
114
114
114
164
164
The U nion Bank and Savings Com
pany
60
The Home Savings Building and
60
Loan Company
Citizens Savings and Loan Com
88
pany
The Am erican Bank o f Central Ohio 88
The Commercial Banking & T rust
Company
162
The Wooster Banking and T rust
Company (in organization;
change title to The Commercial
Banking & T rust Company)
162
Oklahoma
Oklahoma C ity
N orthw est Bank
N orthw est B uilding C orporation
Oregon
M ilwaukie
Portland
First State Bank o f Oregon
Great Western National Bank
157
157
Pennsylvania
A ltoona
Avis
Bensalem Township
Jenkintow n
The First National Bank of A ltoona
The State Bank o f Avis
The Neshaminy Valley Bank
Industrial Valley Bank and Trust
Company
The Loganton National Bank
Commonwealth Bank and T rust
Company
State Bank o f Paradise
The Plym outh National Bank
American Bank and T ru s t Co. of Pa.
Citizens Bank o f Renovo
First Laurel Bank
Northeastern Bank o f Pennsylvania
Central Counties Bank
Susquehanna Valley Bank and
Trust Company
The Pennsylvania Bank and Trust
Company
The Miners Bank and T rust Com
pany o f West Hazleton, Pa.
127
117
153
Loganton
Muncy
Paradise
Plym outh
Reading
Renovo
St. Marys
Scranton
State College
Sunbury
T itusville
West Hazleton
59
59
153
117
90
118
121
118
90
107
121
127
64
107
123
38
F E D E R A L DEPOSIT INSURANCE CO RPORATION
State
T o w n o r C ity
Wilkes-Barre
W illiam sport
Bank
United Penn Bank
N orthern Central Bank and Trust
Company
Page
123
64
Rhode Island
Providence
Old Stone Savings Bank
Old Stone T rust Company (change
to Old Stone Bank)
South Carolina
Greenville
Orangeburg
Prosperity
Southern Bank and T rust Company 92, 130
American Bank & Trust
130
The Bank o f Commerce
92
Tennessee
Chattanooga
Chattanooga State Bank (in organization; change title to Pioneer
Bank)
Pioneer Bank
First T rust & Savings Bank
The State Bank o f Clarksville (in
organization; change title to
First T rust & Savings Bank)
The State Bank of McEwen (in
organization; change title to The
Union Bank)
The Union Bank
Citizens State Bank
H am ilton State Bank of M cM inn
ville (in organization; change
title to Citizens State Bank)
Bank o f M ount Juliet
M ount Juliet State Bank (in organi
zation; change title to Bank o f
M ount Juliet)
Clarksville
McEwen
M cM innville
M ount Juliet
Texas
A rlin g to n
Beaumont
Coleman
Corpus Christi
Cuero
75
75
165
165
163
163
166
166
163
163
165
165
A rlin g to n Bank and T ru st
162
South Street State Bank (in organi
zation; change title to A rlin g to n
Bank and Trust)
162
New U nion State Bank o f Beaumont
(in organization; change title to
Union State Bank of Beaumont) 166
Union State Bank of Beaumont
166
Coleman Bank
166
Pecan Street State Bank (in organi
zation; change title to Coleman
Bank)
166
Everhart Staples State Bank (in
organization; change title to
Parkdale State Bank)
163
Parkdale State Bank
163
Farmers State Bank & T rust Com
pany
162
New Farmers State Bank & Trust
Company; (in organization;
change title to Farmers State
Bank & T ru st Company)
162
B A N K ABSORPTIONS APPROVED BY THE CORPORATION
State
Town or C ity
Deer Park
F o rt W orth
Houston
Kilgore
K irbyville
New Braunfels
Runge
Bank
Deer Park Bank
New Deer Park Bank (in organiza
tio n ; change title to Deer Park
Bank)
Union Bank of F o rt W orth
Union Commerce Bank (in organi
zation; change title to U nion
Bank o f F o rt W orth)
39
Page
163
163
162
162
Almeda-Genoa Bank
164
Am erican Bank and T ru st Com
pany
166
Cullen Center Bank & T ru st
166
Fairbanks Bank of Houston
163
Memorial Bank
163
Meyerland Bank
165
New Almeda-Genoa Bank (in
organization)
164
New American Bank and T rust Com
pany (in organization; change
title to American Bank and
Trust Company)
166
New Cullen Center Bank & Trust
(in organization; change title to
Cullen Center Bank & Trust)
166
New Fairbanks Bank of Houston (in
organization; change title to
Fairbanks Bank o f Houston)
163
New Memorial Bank (in organiza
tio n ; change title to Memorial
Bank)
163
New Meyerland Bank (in organiza
tion)
165
New N orthline State Bank (in organ
ization)
163
N orthline State Bank
Citizens Bank
163
New Citizens Bank (in organization;
change title to Citizens Bank)
163
New K irbyvilie State Bank o f
K irbyville (in organization;
change title to The K irb yville
State Bank o f K irb yville )
166
The K irbyville State Bank o f
K irbyville
166
First Guaranty State Bank (in
organization)
164, 165
The Guaranty State Bank o f New
Braunfels
164, 165
C om m unity State Bank
162
New C om m unity State Bank (in
organization; change title to
C om m unity State Bank)
162
40
F E D E R A L DEPOSIT INSURANCE CORPORATION
State
Town or C ity
Bank
San A n to n io
Highland Commerce Bank (in
organization; change title to
Highland Park State Bank)
Highland Park State Bank
Clear Creek Bank
New Clear Creek Bank (in organi
zation; change title to Clear
Creek Bank)
New Smiley State Bank (in organi
zation; change title to Smiley
State Bank)
Smiley State Bank
New S ecurity Bank (in organiza
tio n ; change title to S ecurity
Bank)
Security Bank
Home State Bank
New Home State Bank (in organi
zation; change title to Home
State Bank)
Seabrook
Smiley
Spring
W esthoff
Page
164
164
163
163
162
162
167
167
163
163
Utah
Ogden
Orem
Commercial Security Bank
Orem State Bank
73
73
V erm ont
Hyde Park
Saint Albans
Lamoille C ounty Bank
Franklin Bank (change title to
Franklin-Lam oille Bank)
41
V irginia
Accomack C ounty
Gloucester
Gore
Bank o f Virginia-Eastern Shore (in
organization)
163
H ailwood Branch o f Bank o f
Virginia-Central
163
Bank o f Gloucester
166
United V irginia Bank o f
Gloucester (in organization)
166
Bank o f Gore, Inc. (in organization;
change title to Western Frederick
Bank)
164
Western Frederick Bank
164
Washington
lone
Spokane
lone State Bank
American Commercial Bank
Wisconsin
Milwaukee
Heritage Bank o f Milwaukee
Jacobus State Bank (in organiza
tio n ; change title to Heritage
Bank o f Milwaukee)
41
71
71
165
165
41
BANK ABSORPTIONS APPROVED BY THE CORPORATION
Resources
(in
thousands
o f do llars)
Franklin Bank
B anking O ffices
In
op e ra tio n
44,741
4
19,430
3
T o be
operated
7
St. Albans, V erm ont
(change title to F ra n k lin -L a m o ille
Bank)
to merge with
Lamoille County Bank
Hyde Park
Summary report by A tto rn e y General, October 31, 1973
The nearest offices o f the parties are separated by a distance o f about 32
miles; thus, it does not appear th a t the proposed acquisition would elim inate
substantial existing com petition. A lthough Lamoille C ounty Bank ranks firs t
among the fo u r banks w ith offices in Lamoille C ounty, the effects o f this
proposed transaction on potential com petition are dim inished by the existence
of other significant potential entrants.
A ccordingly, we conclude th a t the proposed transaction w ould not have a
substantial com petitive impact.
Basis fo r C orporation approval, January 14, 1974
Franklin Bank, St. Albans, Verm ont, a State nonmember insured bank w ith
total resources o f $44,741,000 and total I PC deposits o f $38,655,000, has
applied, pursuant to Section 18(c) and other provisions o f the Federal Deposit
Insurance A ct, fo r the C orporation's p rio r consent to merge w ith Lam oille
C ounty Bank, Hyde Park, V erm ont, having to ta l resources o f $19,430,000 and
total I PC deposits of $16,282,000. The banks w ould merge under the charter
o f Franklin Bank and w ith the title Franklin-Lam oille Bank. The three offices
o f Lamoille C ounty Bank, as an incident to the merger, w ould become
branches o f the resulting bank, increasing to seven the to ta l number o f its
offices.
Competition. Franklin Bank operates its fo u r offices in northwestern V er
m ont. Its prim ary trade area comprises the counties o f Franklin and Grand Isle
and includes an adjacent p ortion of northwestern Chittenden C ounty. The
total population o f this area is estimated at 39,500, having increased some 14.3
percent during the 1960s in close parallel to the statewide increase o f 14
percent during the same decade. A griculture, although o f decreasing economic
importance in recent years, continues to lend support to the area, supple
mented by tourism and a scattering o f light industry. Many residents o f south
ern Franklin C ounty travel southward to the Burlington-Essex Junction area
fo r em ploym ent. Unem ploym ent in the St. Albans area over recent years has
been reported at rates varying fro m 7 to 10 percent, and 1972 median house
hold incomes in Franklin C ounty were 3.3 percent below the State average
42
F E D E R A L DEPOSIT INSURANCE CORPO RATIO N
($7,890). Franklin Bank is one o f five commercial banks com peting in Franklin
C ounty, holding the largest share o f their local I PC deposits (47.9 percent).
T w o o f the five banks competing in Franklin C ounty are the State's tw o largest
banks, both headquartered in B urlington. The smaller of these banks is approx
im ately fo u r times the deposit size o f Franklin Bank.
Lamoille C ounty Bank has its main office in Hyde Park and tw o branches in
Stowe and M orristow n, all in Lamoille C ounty (population 13,309, up 20.7
percent since 1960). Lamoille C ounty is situated im m ediately eastward o f
Franklin and Chittenden Counties. Its economy is prim arily agricultural and
residential, although in the mountainous southwestern po rtio n o f the county,
skiing and summer tourism are o f major economic importance. 1972 income
levels of the county were approxim ately 10 percent below the State household
median income. Lam oille C ounty Bank, one of fo u r banks w ith offices in the
county, holds 43 percent o f the to ta l commercial bank I PC deposits in
Lamoille County. A nearby com petitor, Union Savings Bank and T rust Com
pany, headquartered in Morrisville, holds approxim ately the same percentage
share o f such deposits.
Franklin Banc and Lamoille C ounty Bank operate in separate, although
adjacent, banking markets. Their closest offices, Franklin Bank's office in
M ilton and Lamoille C ounty Bank's main office, are separated by some 32
road-miles o f sparsely populated terrain, as well as the Green Mountain range.
L ittle vehicular travel is evident between St. Albans and Hyde Park, and reason
ably convenient banking alternatives exist fo r residents in St. Albans, the M il
ton area, and the Hyde Park area. It appears th a t no significant existing com
petition between the tw o banks w ould be eliminated by th e ir proposed merger.
A lthough V e rn o n t law permits statewide branching, there is little potential
fo r increased com petition in the fu tu re between Franklin Bank and Lamoille
C ounty Bank through de novo branching. Lamoille C ounty Bank has confined
its modest office expansion to points w ith in 10 miles o f its main office and it
lacks the managerial resources and incentive to branch de novo beyond the
confines o f Lamoille C ounty into the area served by Franklin Bank. For its
part, Franklin Bank w ould n o t likely fin d Lamoille C ounty attractive fo r de
novo entry at the present tim e, since income levels are 10 percent below the
statewide average; each banking office presently serves an average o f 1,664
people, as compared w ith an average o f 3,043 people per banking o ffice state
wide; and each com m unity of any size in Lamoille C ounty, the largest o f which
is M orristow n (population 4,052), already has commercial bank facilities.
Moreover, to the extent future grow th m ight w arrant additional de novo fa c il
ities, there are larger and more like ly entrants than Franklin Bank, such as the
State's three Burlington-based banks. A ccordingly, any elim ination o f potential
com petition between Lam oille C ounty Bank and Franklin Bank which m ight
result from the ir proposed merger is viewed as n o t significant com petitively.
Statewide, Franklin Bank controls only 3.8 percent o f the to ta l IPC deposits
held by all 146 offices o f the 38 commercial banks represented therein— a share
that w ould be increased by the proposed merger to 5.4 percent. It appears
unlike ly th a t the transaction w ould have an adverse com petitive im pact upon
the structure o f commercial banking in this relevant potential market.
Under the circumstances presented, the Board o f Directors is o f the opinion
that the proposed merger w ould not, in any section of the c o u n try, substan
tia lly lessen com petition, tend to create a m onopoly, or in any other manner
be in restraint o f trade.
B A N K ABSORPTIONS APPROVED BY THE CO RPORATION
43
Financial and Managerial Resources; Future Prospects. Both Franklin Bank
and Lam oille County Bank have adequate financial and managerial resources
fo r their present operations. The resulting bank w ould have adequate financial
and managerial resources and favorable future prospects.
Convenience and Needs o f the Community to be Served. The proposed
merger w ould provide the resulting bank w ith an unsecured lending lim it o f
$630,000. There are few borrowers in the market, however, whose credit re
quirements approach this amount. Services of Franklin Bank's more sophis
ticated tru st departm ent w ould be offered at the present locations o f Lam oille
C ounty Bank. Demand fo r such services w ith in Lamoille C ounty, however,
appears to be lim ited. While there is little to suggest th a t banking needs are not
being satisfactorily served by each o f the tw o banks in their respective local
markets at the present tim e, their merger w ould produce a bank better able to
compete w ith V erm ont's five largest commercial banks, three of which are
headquartered in northern V e rm o n t and tw o of which presently compete in
Franklin County.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.
Bank of Delaware
B a n k in g O ffic e s
R esources
(in
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
379,125
25
3,607
1
T o be
o p e ra te d
26
W ilm ington, Delaware
to merge with
Commercial Trust Company
W ilm ington
Summary report by A tto rn e y General, December 21, 1973
Commercial banking in W ilm ington and in New Castle C ounty is highly
concentrated; the fo u r largest o f the eight banks in the county hold a p p ro xi
mately 96 percent o f total county deposits. A pplicant, the second largest bank
in the county, holds slightly more than 23 percent o f county deposits, w hile
Bank's share o f the New Castle m arket is less than 1 percent. A p p lica n t and
Bank are direct com petitors; their headquarters are located about tw o blocks
apart in do w ntow n W ilm ington.
The proposed merger w ould eliminate direct com petition and slightly in
crease concentration in commercial banking in W ilm ington.
Basis fo r C orporation approval, January 29, 1974
Bank of Delaware, W ilm ington, Delaware (total resources $379,125,000;
total IPC deposits $304,896,000), a State nonmember insured bank, has
applied, pursuant to Section 18(c) and other provisions o f the Federal Deposit
Insurance A ct, fo r the C orporation's p rio r consent to merge w ith Commercial
Trust Company, W ilm ington, Delaware ("C om m ercial") (total resources
$3,607,000; total IPC deposits $2,543,000), under the charter and title o f
44
F E D E R A L DEPOSIT INSURANCE CORPO RATIO N
Bank o f Delaware. The sole office o f Commercial, as an incident to this merger,
w ould become a branch o f Bank o f Delaware, increasing to 27 the number o f
its authorized offices.
Competition. Commercial has its sole office on the fringe o f dow ntow n
W ilm ington im m ediately adjacent to a largely vacant redevelopment area w hich
was cleared o f residents and businesses some years ago. The bank's deposits are
trending downward and after 53 years o f operation, it presently holds only
$2.5 m illion in IPC deposits (or 0.4 percent o f the IPC deposits held by all
dow ntow n W ilm ington commercial bank offices). Commerciars only active
officer is 74 years old and wishes to retire, and efforts to obtain a satisfactory
replacement have been unsuccessful. It has a loan-to-deposit ratio o f less than
35 percent, and relatively low p ro fita b ility compared to other Delaware banks.
Commercial is obviously an ineffective com petitor in its market.
Bank of Delaware is the second largest commercial bank in the State w ith
21.7 percent o f its to ta l commercial bank IPC deposits, and the second largest
such bank in the W ilm ington market. In both areas, Bank o f Delaware substan
tia lly lags behird the $456-m illion-IPC-deposit W ilm ington Trust Company.
While commercial banking in the relatively small State o f Delaware (1970
population 5 4 8 ,104) and in the W ilm ington market is presently dominated by
Delaware's fo u r largest commercial banks, testamentary restrictions on almost
47 percent o f Commerciars stock effectively preclude Commerciars sale ex
cept to one of these fo u r banks. O nly tw o o f these banks expressed an interest
in acquiring Commercial, however, and there appears to be no compelling
reason to prefer the other o f these banks to Bank o f Delaware as a merger
partner.
In any event, while some relatively insignificant com petition between the
tw o banks in do w ntow n W ilm ington w ould be elim inated by their proposed
merger, acquisition o f Commerciars lim ited resources by Bank o f Delaware
w ould have no perceptible effe ct on the structure o f commercial bank com
petitio n either in the W ilm ington m arket or in the State as a whole. Following
the merger, a total o f 9 offices o f 5 other commercial banks w ould remain
available to the public in dow ntow n W ilm ington, and Delaware as a whole
w ould continue to have 111 offices o f 17 other commercial banks.
The Board o f Directors has concluded, under the circumstances presented,
th a t the proposed merger w ould not, in any section of the co u n try, substan
tia lly lessen com petition, tend to create a m onopoly, or in any other manner
be in restraint o f trade.
Financial and Managerial Resources; Future Prospects. Financial resources
o f both proponents are adequate, b u t the age o f present management at Com
mercial presents an immediate succession problem fo r th a t in stitu tio n . Bank o f
Delaware has capable management and the proposed merger w ould resolve
Commerciars problem. The fu tu re prospects o f the resulting bank are favor
able.
Convenience and Needs o f the Community to be Served. Customers o f
Commercial w ould be offered broader banking services by one o f the State's
major commercial banks. Commercial's present banking quarters would be
modernized while three alternative offices of the resulting bank w ould be
conveniently available w ith in the local m arket to all Commercial customers.
Their regular savings deposits w ould earn interest at 5 percent per annum,
increased from the present 4.5 percent annual rate, and the greater variety o f
BA N K ABSORPTIONS APPROVED BY THE CORPO RATIO N
45
certificates o f deposit to be made available w ould bear the m axim um allowable
interest rates.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.
R eso u rce s
(in
th o u s a n d s
o f d o lla rs )
Berlin City National Bank
B a n k in g O ffic e s
In
o p e r a tio n
6,898
1
26,656
1
T o be
o p e ra te d
1
Berlin, New Hampshire
(change title to Berlin C ity Bank)
to purchase the assets an d assume the deposit
liabilities o f
City Savings Bank of Berlin
Berlin
Summary report by A tto rn e y General, August 15, 1973
The tw o banks, although located in the same building, do n o t o ffe r com
parable services. Thus, it does not appear th a t the proposed merger w ould
eliminate any significant existing com petition.
In view o f the new legislation p ro hibiting the type o f relationship these tw o
banks have enjoyed in the past, it could be expected th a t absent the proposed
merger both w ould expand their services w ith in permissible lim its, resulting in
com petition between them. If management succession problems prevent C ity
Bank from remaining independent, it could join w ith other banks elsewhere in
the State as part o f a bank holding company. Thus, the merger would elim inate
potential com petition between the banks.
In addition, the merger w ould entrench the leading position w hich C ity
Savings enjoys among the financial institutions in the Berlin area (which in
cludes the nearby tow n o f Gorham). It is the largest o f three savings banks,
three commercial banks, and one cooperative bank in the area. Its share o f the
total deposits o f all the financial in stitu tio n s in the area w o u ld increase from
34.9 percent to 43.8 percent as a result o f the merger. Factors which lim it
these adverse effects are the relatively large number o f banks compared to total
population in the area and the current d ifficu ltie s in the economy o f the area.
We conclude th a t the proposed merger would eliminate some potential com
petition.
Basis fo r C orporation approval, January 29, 1974
Berlin C ity National Bank, Berlin, New Hampshire ("C ity N a tio n a l")(to ta l
resources $6,898,000; to ta l I PC deposits $4,247,000), has applied, pursuant to
Section 18(c) and other provisions o f the Federal Deposit Insurance A c t, fo r
the C orporation's p rio r consent to purchase the assets of, and assume the
lia b ility to pay deposits made in, C ity Savings Bank o f Berlin, Berlin, New
F E D E R A L DEPOSIT INSURANCE CORPO RATIO N
46
Hampshire ("C ity S avings")(total resources $26,656,000; total IPC deposits
$24,664,000). Both banks share quarters in a single location and the resulting
bank w ould operate fro m th a t office. Prior to consumm ation of the trans
action, C ity National w ould convert to a State nonmember insured bank under
the title "B e rlin C ity Bank."
Competition. C ity National ranks 53rd among
mercial banks, w ith 0.4 percent o f all commercial
Its only office, which it shares w ith C ity Savings, is
(population 15,256) in the northernm ost portion
C ounty (population 34,291).
New Hampshire's 73 com
bank deposits in the State.
located in the city o f Berlin
of New Hampshire in Coos
C ity Savings ranks 23rd among the State's 36 mutual savings banks (in
cluding 6 guaranty savings banks), w ith 1.6 percent o f their total deposits. C ity
Savings shares a single lobby and various overhead and operating expenses w ith
C ity National. In addition, the tw o banks had interlocking directors, trustees,
and officers prio r to July 1, 1973, when State legislation became effective
requiring separate managements fo r mutual savings banks and commercial
banks. On that date, management was allocated to either C ity National or C ity
Savings, pending the outcom e o f this reorganization proposal w hich was in i
tiated by the tw o banks in December 1971.
The area in which the com petitive effects o f the proposed merger w ould be
most direct and immediate is determined largely by the local topography in the
v icin ity o f the c ity o f Berlin. The Berlin market is contained w h o lly w ith in
Coos C ounty and extends approxim ately 10 miles south and west to the White
Mountains, 8 miles east to the Maine border, and as far as 20 miles north into
more sparsely settled, unbanked areas. The Berlin m arket appears to be rela
tively unattractive when compared to others, particularly in the southern p or
tion o f New Hampshire. This m arket had a 1970 population o f about 20,000
which represents a 10-year decline o f about 11 percent from its 1960 level. The
population of Berlin c ity and Coos C ounty declined 14.4 percent and 7.7
percent, respectively, during this same period. Coos C ounty is the only one o f
New Hampshire's 10 counties that failed to record at least a 10-percent gain in
population during the 1960s. During this tim e the State as a whole grew by
21.5 percent. Median household income in 1972 fo r Coos C ounty was $7,339,
w hich was about 15 percent below the statewide median o f $8,663, and the
second lowest in New Hampshire. The market's economy is based upon various
small- and medium-sized industries. The largest employer, a paper manu
facturer, has reduced its w o rk force to 2,000, about half o f w hat it was 10
years ago. Unem ploym ent is relatively high, and there appears to be little
prospect of reversing current economic trends.
Three commercial banks, tw o mutual savings banks, and one cooperative
bank serve this local banking market. C ity National holds about 63.8 percent
of the market's IPC demand deposits (or $4.2 m illio n ou t o f a total o f $6.7
m illio n ), and C ity Savings holds about 48.0 percent o f their total tim e and
savings deposits (or $24.6 m illio n o u t o f a to ta l o f $51.3 m illio n ). I n terms o f
total IPC deposits o f $58.0 m illio n in the market, C ity National and C ity
Savings combined w ould control about 49.9 percent, far in excess o f the 19.5
B A N K ABSORPTIONS APPROVED BY THE CORPO RATIO N
47
percent held by the second largest in stitu tio n . Moreover, there is no bank
w ith in the statutory branching lim it o f 15 miles of the market's boundaries
whose overall size would approach th a t o f the resulting bank.
Because o f the ir previous interlocking management, C ity National and C ity
Savings offered virtu a lly no overlapping services. C ity National had no tim e or
savings deposits and solicited no real estate loans, w hile C ity Savings did not
offer consumer or business loans. Prior to July 1, in other words, the tw o
institutions did not compete fo r comparable services and were considered by
the public at large as one in s titu tio n .
While the same is true today, C ity National and C ity Savings have had
technically independent managements since July 1, and absent this proposal,
the tw o institutions could be expected to remain independent in the future.
Past associations m ight restrict co m petition in the immediate fu tu re , b u t over
the longer run, the tw o institutions could become much more significant com
petitors if each were to o ffe r all the services allowed them by applicable law.
This aspect o f the proposal receives additional significance in view of the
likelihood th at NOW accounts w ill encourage increased deposit com petition
between th r ift institutions and commercial banks in New Hampshire in the
future.
There are, however, im p o rta n t factors relating to the characteristics o f the
Berlin m arket which mitigate the possible adverse com petitive effects which
m ight arise in the fu tu re from consumm ation o f this proposal. S pecifically, in
order fo r both C ity Savings and C ity National, as well as other institutions
presently in the market, to remain and develop as viable and effective com
petitors, there must be a reasonable prospect that the Berlin m arket w ould
support th e ir continued existence as independent com petitors. The Corpora
tion does not feel th a t such a finding can be made in this case. The Berlin
market has experienced declining population, declining economic a ctivity, and
below-average income levels at a tim e when other portions o f the State have
been growing. It is a relatively small banking market in terms o f both popula
tion (about 20,000 people) and deposit potential ($58.0 m illio n in total IPC
deposits). Moreover, it lacks significant prospects fo r future expansion and
industrial grow th. A ll o f this indicates a market in which a desirable level o f
deposit grow th and p ro fita b ility w ould be d iffic u lt fo r depository in stitutions
to maintain if C ity National and C ity Savings continued to operate separately
and were to expand into activities and services they presently do n o t offer. It is
also relevant th a t if the proposed transaction is consummated, the 20,000
people in the Berlin market would continue to have 5 separate institutions
com peting
fo r
their tim e
and savings deposits, or one fo r each 4,000
people.
It is the C orporation's view, under these facts, th a t the elim ination o f fu tu re
potential com petition between C ity National and C ity Savings and the increase
in deposit concentration w hich their consolidation w ould e ffe ct is n o t as com
petitively adverse or significant as such factors m ight be in a d iffe re n t local
market w ith in New Hampshire. Under these circumstances, the Board o f Direc
tors is o f the opinion th a t the proposed acquisition w ould not, in any section
F E D E R A L DEPOSIT INSURANCE CO RPO RATIO N
48
of the co untry, substantially lessen com petition, tend to create a m onopoly, or
in any other m anner be in restraint o f trade.
Financial and Managerial Resources; Future Prospects. C ity National and
C ity Savings have satisfactory financial and managerial resources under th e ir
present operational arrangement, as would the resulting bank.
In itia lly there may be a reduction in the resulting bank's savings and tim e
accounts since by regulation it w ould no t be able to pay the m axim um rates o f
interest allowed mutual savings banks on similar amounts. However, the de
posit a ttritio n may be relatively slight in view o f the interest w hich present
depositors o f C ity Savings w ould have, as stockholders, in the success o f the
resulting bank. The fu tu re prospects o f the resulting bank are considered satis
factory.
Convenience and Needs o f the Community to be Served. The proposed
transaction w ould have little effect on the convenience and needs of the Berlin
market. The resulting bank w ould not o ffe r any services not presently available
in the market, b u t the lending lim it o f the resulting bank w ould be a p p ro xi
mately $150,000, more than three times C ity National's present lim it and
larger than any other commercial bank loan lim it in the market. Conceivably
this and more vigorous commercial lending efforts could help to stimulate the
declining local economy.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted, contingent upon C ity National's conversion to
a State nonmember insured bank.
Mechanics Savings Bank of Elmira
B a n k in g O ffic e s
R eso u rce s
(in
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
T o be
o p e ra te d
27,295
4
5
5,900
1
Elmira, New Y o rk
to merge with
Waverly Savings and Loan Association
Waverly
Summary report by A tto rn e y General, November 30, 1973
Waverly Savings' single office is located about 17 miles east o f Mechanics'
Elmira headquarters. Elmira and Waverly are linked by Route 17, w ith both
cities expanding along the Route 17 " c o rrid o r" that presently separates the
tw o comm unities. A lthough there may be some overlap between the service
areas o f the parties, it does n o t appear th a t the proposed merger w ill elim inate
substantial existing com p e titio n . And while Mechanics could expand de novo
into the area served by Waverly Savings, the latter's modest size coupled w ith
the existence o f other potential entrants dim inish the effect o f the merger on
potential com petition.
B A N K ABSORPTIONS APPROVED BY THE CORPO RATIO N
49
Therefore, we conclude th a t the proposed transaction w ould not have a
substantial com petitive impact.
Basis fo r Corporation approval, January 29, 1974
Mechanics Savings Bank o f Elmira, Elmira, New Y ork ("M echanics"), an
insured mutual savings bank w ith total resources o f $27,295,000 and total
deposits o f $25,728,000, has applied, pursuant to Section 18(c) and other
provisions o f the Federal Deposit Insurance A ct, fo r the C orporation's prio r
consent to merge w ith Waverly Savings and Loan Association, Waverly, New
Y ork ("W averly S & L "), a federally insured savings and loan association w ith
total resources o f $5,900,000 and total deposits of $5,149,000. The in s titu
tions w ould merge under the charter o f Mechanics and w ith the title Mechanics
Savings Bank. As an incident to the merger, the sole office o f Waverly S&L
would become a branch o f the resulting bank, increasing the number o f its
offices to five.
Competition. Mechanics has its main office and tw o branches in Elmira
(1970 population 39,945, down 14.1 percent since 1960) and one branch in
the tow n o f Big Flats (1970 population 6,837, up 86.5 percent since 1960),
about 9 miles northwest of the main office. Elmira is centrally located in
Chemung C ounty (population 101,537), which is in south central New Y o rk
State and form s a p o rtio n o f the border w ith Pennsylvania. Waverly S & L has its
only office in the village o f Waverly, a com m unity o f 5,261 persons, some 17
miles southeast o f Elmira, in the extreme southwest corner o f Tioga C ounty.
Tioga C ounty is im m ediately to the east o f Chemung C ounty and also borders
Pennsylvania. Waverly S &L's only office is only 100 feet fro m the Pennsylvania
line.
The Mechanics offices closest to Waverly are 17 miles away, b u t the tw o
areas are connected by a good four-lane highway, and there is some com m uta
tion to Elmira fo r em ploym ent. The prim ary service areas of the tw o in s titu
tions appear to overlap slightly, b u t the volume o f business each draws fro m
the area o f overlap is modest and the amounts involved are no t considered
significant relative to the total deposit or loan business in the area. In the
relevant banking market, which w ould include most o f Chemung and Tioga
Counties plus a number o f com m unities in Bradford C ounty, Pennsylvania,
Mechanics holds 10.7 percent o f all th r ift in s titu tio n deposits and Waverly S &L
only 2.1 percent. Nine other th r ift institutions (i.e., tw o mutual savings banks
and seven savings and loan associations) also compete in this market, including
the $69-m illion-deposit Elmira Savings Bank and three savings and loan associa
tions which also exceed $25 m illio n in total deposits. The proposed merger
would not appear to eliminate any significant am ount o f existing com petition
between Mechanics and Waverly S & L, and w ould not appear to have any
significant effect in the th r if t industry structure w ith in the market.
As to the possibility o f increased com petition in the fu tu re between Me
chanics and Waverly S & L through de novo branching, the latter is a small
in stitu tio n w ith lim ited financial and managerial resources which has never
attempted to branch de novo in its 70 years o f existence. Mechanics m ight fin d
F E D E R A L DEPOSIT INSURANCE CORPORATION
50
Tioga C ounty attractive fo r future de novo branching, b u t there are larger
th r ift institutions which are also potential entrants, and Waverly S & L is one o f
the smaller th r if t institutions in the immediate Waverly area. A n y loss o f poten
tial com petition between the tw o institutions thus appears to be com petitively
insignificant.
W ithin the Seventh Banking D istrict, which is the widest geographic area
w ith in which mutual savings banks may presently branch or merge under New
Y ork law, Mechanics is the 10th largest of 15 th r if t institutions in terms o f
total resources and Waverly S & L is the 14th largest, w ith 3.1 and 0.7 percent,
respectively, o f the district-w ide totals at year-end 1972. The resulting in s titu
tion w ould be the ninth largest o f 14 such in stitutions w ith 3.8 percent o f all
th r ift in stitu tio n assets in the d istrict, far outdistanced by the 4 largest th r if t
institutions, ranging fro m the $ 301-m illion Binghamton Savings Bank (36.3
percent o f the total assets) to the $70-m illion Elmira Savings Bank (8.4 percent
o f the to tal assets).
Based on the foregoing, the Board o f Directors has concluded th a t the
proposed merger w ould not, in any section o f the country, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future Prospects. Mechanics and the
resulting bank have satisfactory prospects fo r the future. Waverly S & L has
satisfactory financial resources, but an impending management succession
problem. Mechanics and the resulting bank w ould have adequate managerial
and financial resources.
Convenience and Needs o f the Community to be Served. Customers o f
Waverly S & L and residents o f the local Waverly area should benefit from the
increased mortgage lending capability o f the resulting bank, more liberal terms
on mortgage loans, greater emphasis on V A mortgages, a wider range o f deposit
instruments, and an on-line data processing system. C om petition w ith th r if t
institutions d ire ctly across the border in Pennsylvania should be stimulated.
Based on the foregoing, the Board o f Directors has concluded th a t approval
o f the application is warranted.
Peachtree Bank and Trust Company
R eso u rce s
(in
th o u s a n d s
o f d o lla rs )
B a n k in g O ffic e s
In
o p e ra tio n
T o be
o p e ra te d
42,060
6
9
13,388
3
Chamblee, Georgia
to merge with
The Citizens Bank of Georgia
Stone M ountain
Summary report by A tto rn e y General, November 30, 1973
Peachtree Bank's offices are clustered in the northern part o f De Kalb
C ounty, w hile Citizens Bank's offices are located in the eastern po rtio n o f the
B A N K ABSORPTIONS APPROVED BY THE CORPORATION
51
county. The head offices o f the tw o banks, however, are only about 13 miles
apart, and the closest offices are about 10 miles apart. The approved but
unopened offices o f both banks, located in the southern p o rtio n o f De Kalb
C ounty, are only about 4 miles apart. Thus, while the banks do not operate in
close p ro x im ity to each other, it appears th a t there is some potential fo r
increased com petition between them which w ould be elim inated by the mer
ger.
Twenty-one commercial banks presently operate in De Kalb C ounty. Peach
tree Bank and Citizens Bank are not among the largest, holding only 6.7
percent and 2.2 percent, respectively, o f to ta l county deposits on June 30,
1972. The resulting bank w ould be one o f the largest banks headquartered in
De Kalb C ounty outside A tlanta, but would control only 8.9 percent o f total
county deposits, the leaders being the much larger Atlanta-based institutions.
This consolidation o f tw o small banks which were fo rm e rly "a ffilia te d " w ith
large A tlanta banking organizations may well give the resulting organization the
capability to compete more vigorously w ith the large A tlanta institutions
which now dominate De Kalb C ounty. In view of these facts, and since only a
minimal am ount of existing com petition w ould be eliminated, we conclude
that this proposed transaction w ould not have an adverse com petitive effect.
Basis fo r C orporation approval, February 8, 1974
Peachtree Bank and Trust Company, Chamblee, Georgia ("Peachtree"), a
State nonmember insured bank w ith to ta l resources o f $42,060,000 and total
IPC deposits o f $29,815,000, has applied, pursuant to Section 18(c) and other
provisions o f the Federal Deposit Insurance A ct, fo r the C orporation's p rio r
consent to merge w ith The Citizens Bank of Georgia, Stone M ountain, Georgia
("C itize n s"), w hich has total resources o f $13,388,000 and total IPC deposits
of $10,172,000. The banks w ould merge under the charter and title o f Peach
tree and, as an incident to the merger, the three approved offices o f Citizens
w ould become branches of the resulting bank.
Competition. Peachtree is the seventh largest commercial bank in De Kalb
C ounty, w ith 6.3 percent o f the total IPC deposits held by the 21 commercial
banks represented therein. It serves northern De Kalb C ounty w ith five offices
and has recently established its sixth office in the county's central-southern
area. O riginally sponsored in 1960 by Trust Company o f Georgia, Peachtree
now has no holding company a ffilia tio n . Citizens, w ith 2.2 percent o f De Kalb
C ounty commercial IPC deposits, is the 14th largest bank in this market and
was established in 1957. It operates its main office in the c ity of Stone M oun
tain (population 1,899) and one branch in an unincorporated area some 2.8
road-miles west o f its main o ffic e .* A p rio r a ffilia tio n w ith the Citizens and
Southern holding company system was severed in December 1970. Citizens is
very much oriented to retail banking business, drawing most o f it fro m a radius
w ith in 5 road-miles o f its main office, in central-eastern De Kalb C ounty.
Both banks serve areas which are, in the main, rapidly growing residential
suburbs o f the c ity of A tlanta, although De Kalb C ounty is also one o f the
* C itiz e n s has th e necessary a p p ro v a ls to e s ta b lis h an a d d itio n a l b ra n c h in an u n in c o r p o r
a te d area 5 .3 ro a d m ile s s o u th w e s t o f its m a in o ffic e .
52
F E D E R A L DEPOSIT INSURANCE CORPO RATIO N
more im p o rta rt industrial areas o f the State. The population o f De Kalb
C ounty grew by 61.8 percent during the decade 1960— 1970 to a to ta l o f
415,387, w ith much o f the increase having occurred in unincorporated areas o f
the county. De Kalb C ounty is part o f the A tlanta SMSA, a 15-county region
o f growing affluence, industrialization, and economic activity. Its 1970 popula
tio n was 1,597,816, up 36.7 percent over 1960, w ith almost tw o-thirds o f the
total living in F ulton and De Kalb Counties. Banking activity th roughout the
SMSA is dominated by the fo u r largest Atlanta-based banking systems. Peach
tree and Citizens together have only 1.0 percent o f total commercial bank IPC
deposits in the SMSA. De Kalb C ounty alone has 82 offices o f 17 d iffe re n t
commercial banking systems. The 4 largest banking organizations each hold
between 10.6 percent and 37.7 percent (all C & S affiliates) o f to ta l De Kalb
C ounty commercial bank IPC deposits, co n tro llin g in the aggregate 77.3 per
cent o f such deposits and 54 offices.
Peachtree's cffice closest to Citizens is some 8.5 miles south o f the latter's
established branch. Offices o f five other commercial banks intervene and serve
to m inim ize com petition between the participants. The insubstantial volume o f
business which each draws from areas d ire ctly served by the other and the
relatively small shares o f De Kalb C ounty and A tlanta SMSA bank deposits
which each bank holds indicate th a t the proposed merger w ould eliminate no
significant existing com petition between them.
Both banks may legally branch thro u g h o u t rapidly growing De Kalb C oun
ty. Citizens has lim ited resources fo r this purpose, however, and both banks
would face keen com petition from the fo u r m ajor banking organizations fo r
the attractive and available de novo branch sites in De Kalb County. The
elim ination of some residual potential fo r increased com petition between
Peachtree and C tizens through de novo branching in the future appears to have
little com petitive significance in view o f the existing commercial bank structure
of De Kalb C o jn ty and the likelihood th a t the resulting bank w ould be a
stronger com petitor fo r all purposes, including the establishment o f de novo
branches, than either Peachtree or Citizens separately.
For the reasons stated, the Board of Directors is o f the opinion th a t the
proposed merger w ould not, in any section o f the co untry, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future Prospects. Both banks have
adequate financial and managerial resources fo r the business they presently
conduct. These resources fo r the resulting bank w ould likewise be adequate.
Both banks also have favorable fu tu re prospects, as w ould the resulting bank.
Convenience and Needs of the Community to be Served. The merger would
make available to Citizens' customers the services of an in stitu tio n whose
higher lending lim its (secured, $600,000 rather than $160,000; unsecured,
$380,000 rather than $80,000) and more aggressive management should serve
to stimulate com petition w ith in the market. Four-year consumer certificates at
the maximum rate o f interest allowed by current regulations w ould be offered,
as well as more significant commercial lending capabilities. For De Kalb Coun
ty residents and businessmen generally, the increased stature of the resulting
bank should enable it to compete more effectively w ith the largest banks in the
county w ith attendant benefits to all banking customers.
B A N K ABSORPTIONS APPROVED BY THE CORPO RATIO N
Idaho Bank & Trust Co.
53
B a n k in g O ffic e s
R eso u rce s
(in
th o u s a n d s
o f d o lla rs )
1n
o p e r a tio n
T o be
o p e ra te d
166,399
13
16
15,474
3
Pocatello, Idaho
to acquire the assets and assume
the deposit liabilities o f
Bank of Central Idaho
Grangeville
Summary report by A tto rn e y General, January 29, 1974
The nearest offices o f Idaho Bank and Central Bank are 70 miles apart. The
proposed acquisition w ould eliminate only a lim ited am ount o f existing com
petition.
Central Bank, w ith 38 percent o f county deposits as o f December 31, 1972,
is the largest o f the three banks operating in Idaho C ounty. Idaho Bank, the
fo u rth largest o f the 23 banks in the State o f Idaho, is thus one of a small
number o f significant potential entrants into Idaho C ounty. C ounty popula
tio n , however, declined by 5 percent fro m 1960 to 1970 to less than 13,000.
Thus, the area may not be particularly attractive fo r de novo entry.
Idaho banking is highly concentrated. A t the end of 1971 the State's fo u r
largest banks held approxim ately 85 percent of statewide commercial bank
deposits. A dd itio n a l acquisitions by these largest banks may tend to prevent
deconcentration o f banking in the State by elim inating potential elements in
new regional or statewide organizations.
Basis fo r C orporation approval, February 14, 1974
Idaho Bank & T rust Co., Pocatello, Idaho ("Id a ho B ank"), a State non
member insured bank w ith total resources o f $166,399,000 and total I PC
deposits of $120,829,000, has applied, pursuant to Section 18(c) and other
provisions o f the Federal Deposit Insurance A ct, fo r the C orporation's p rio r
consent to acquire the assets of, and assume the lia b ility to pay deposits made
in, Bank o f Central Idaho, Grangeville, Idaho ("C e n tra l"), a State nonmember
insured bank w ith to ta l resources o f $15,474,000 and total IPC deposits o f
$12,183,000. The 3 offices o f Central w ould be operated as branches o f Idaho
Bank, increasing the number o f its authorized offices to 17.
Competition. Idaho Bank has 14 authorized offices in 9 o f the 44 counties
in Idaho, 10 o f w hich have been established de novo over the years. Most o f
these offices are concentrated in the more populous southeast section o f the
State, although Idaho Bank is represented in all the major population centers.
Idaho Bank has no office, however, in Idaho C ounty where all o f Central's
offices are located. Idaho as a whole is a sparsely populated State (1970 popu
lation 713,008, up only 6.9 percent fro m 1960, compared to a nationwide
increase in population o f 13.3 percent), w ith a high degree o f concentration in
banking resources. The three largest banks in the State hold, respectively, 35.9
percent, 27.9 percent, and 13.9 percent o f the total commercial bank deposits
in the State. Idaho Bank is the fo u rth largest commercial bank in Idaho, w ith
7.5 percent o f such deposits.
Central, which is the 12th largest o f Idaho's 23 commercial banks, has its
main office in Grangeville (population 3,636), 1 branch in Kooskia (population
54
F E D E R A L DEPOSIT INSURANCE CORPORATION
809), and 1 branch in Riggins (population 533). A ll three locations are in
western Idaho C ounty (population 12,891) which constitutes the upper central
part o f the State and stretches fro m Montana's western border to Oregon's
eastern boundary. A p p ro xim a te ly the eastern tw o-thirds o f Idaho C ounty is
rugged wilderness area w ith only nominal population so that 93 percent o f the
county's population is concentrated in the western th ird o f the county where
Central has its offices. Economic a ctivity in the western part o f the county is
centered in agriculture, lumbering, and, to a lesser extent, tourism . The 1972
median household income fo r Idaho C ounty was $6,463, about 12 percent
below the State figure o f $7,384.
The effects o f the proposed transaction w ould be almost entirely confined
to western Idaho C ounty and a small p o rtio n o f eastern Lewis C ounty, where
the com m unity o f Kamiah is located. The closest office o f Idaho Bank to any
office of Central is a branch office in Lewiston, over 70 miles to the northwest.
The tw o banks serve com pletely d iffe re n t banking markets and neither orig
inates any meaningful volume o f business from areas served p rim arily by the
other. The proposed transaction therefore w ould not eliminate any significant
existing com petition between the tw o banks.
Idaho law permits statewide branch banking, b u t increased com petition
between Idaho Bank and Central does not appear likely. Central does no t have
the financial or managerial resources to be a meaningful com petitor in local
markets presently served by Idaho Bank and the three major statewide banks,
even if it could overcome the operational d iffic u ltie s o f opening de novo o f
fices at the distances required. Idaho Bank in turn is un like ly to fin d Idaho
C ounty attractive fo r de novo branching because o f its sparse population,
stable economy, lack of population grow th, and the already low population per
commercial banking office (about 2,600 persons).
Central's only com petitors today are the tw o largest commercial banks in
Idaho, which between them share the bulk o f local IPC deposits. The com m er
cial banking structure in this western Idaho County-Lewis C ounty area w ould
be changed only to the extent th a t the State's tw o largest commercial banks
would be faced w ith a stronger, more aggressive com petitor locally.
Statewide, Idaho Bank w ould increase its relatively lim ited share o f total
commercial bank deposits by only 0.7 percent and the resulting bank w ould
have 8.2 percent o f such deposits. Its position relative to Idaho's three largest
commercial banks, however, w ould remain unchanged, while the fifth largest
bank in the State would continue to be less than half its size.
The Board of Directors, accordingly, is of the opinion that the proposed
transaction would not, in any section o f the country, substantially lessen com
petition , tend tc create a m onopoly, or in any other manner be in restraint o f
trade.
Financial and Managerial Resources; Future Prospects. The financial and
managerial resources and future prospects o f Idaho Bank and Central are satis
factory, and are so projected fo r the resulting bank.
Convenience and Needs o f the Community to be Served. The residents and
businessmen in western Idaho and Lewis Counties w ould realize only modest
benefits from the proposed acquisition, deriving principally from the increased
com petition which the resulting bank could o ffe r to the tw o largest banks in
the State across the fu ll range o f commercial bank services. Customers o f
B A N K ABSORPTIONS APPROVED BY THE CORPORATION
55
Central w ould fin d tru st services, a greater variety of deposit accounts, sophis
ticated and specialized banking services, and a lending lim it almost 20 times
th at o f Central more conveniently available to them than at present.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.
Frankenmuth Bank & Trust Company
B a n k in g O ffic e s
R eso u rce s
(in
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
T o be
o p e ra te d
109,975
12
14
19,151
2
Frankenm uth, Michigan
to consolidate with
The Clio State Bank
Clio
Summary report by A tto rn e y General, August 27, 1973
Frankenm uth Bank and Clio State Bank are headquartered 12 miles apart
and their nearest offices are separated by about 8 miles. There are no banking
offices in the intervening area. Despite the close p ro x im ity o f the parties'
banking offices, the application indicates th a t very little direct com petition w ill
be eliminated by the proposed acquisition. Frankenm uth Bank's service area
and th a t of Clio State Bank are adjoining, b u t do no t overlap to any significant
extent.
Frankenm uth Bank has a strong current financial position and could legally
branch de novo in to the F lin t (Genesee C ounty) market. But because o f Clio
State Bank's modest m arket position in the Flint-Genesee market (2 percent o f
county deposits) and the existence o f other significant potential entrants, we
conclude th a t the proposed acquisition w ill not elim inate substantial potential
com petition.
Therefore, we conclude th a t the proposed transaction w ould not have a
substantial com petitive impact.
Basis fo r Corporation approval, February 14, 1974
Frankenm uth Bank & Trust, Frankenm uth, Michigan ("F ra n ke n m u th
B a n k " ) , a State nonmember insured bank having to ta l resources o f
$109,975,000 and total IPC deposits o f $82,924,000, has applied, pursuant to
Section 18(c) and other provisions o f the Federal Deposit Insurance A c t, fo r
the C orporation's prior consent to consolidate w ith The Clio State Bank, Clio,
Michigan ("C lio B a n k"), w ith to ta l resources of $19,151,000 and total IPC
deposits o f $14,973,000. The banks w ould consolidate under the charter and
title o f Frankenm uth Bank and, as an incident to the transaction, the 2 offices
of Clio Bank w ould become branches o f the resulting bank, increasing to 14
the number o f its offices.
Competition. Frankenm uth Bank operates eight offices in eastern Saginaw
C ounty and fo u r offices in the neighboring counties o f Bay and Tuscola, in
east-central Michigan. Saginaw C ounty comprises the Saginaw SMSA and had a
56
F E D E R A L DEPOSIT INSURANCE CO RPO RATIO N
1970 population o f 219,743, up 15.2 percent during the 1960s. A p p ro x i
mately 91,900 o f the inhabitants o f eastern Saginaw C ounty live in the heavily
industrialized c ity o f Saginaw, and many residents o f the o u tly in g agricultural
and suburban areas comm ute to th a t c ity fo r em ploym ent, shopping, o r enter
tainm ent. Frankenm uth Bank has three offices in its headquarters c ity o f
Frankenm uth (1970 population 2,834), 10 miles southeast o f the c ity o f Sag
inaw, w hile its branch nearest to Clio Bank is at Birch Run, about 13 miles to
the southeast o f th a t c ity . Frankenm uth Bank is not affiliated w ith any bank
holding company. It is the 37th largest o f Michigan's 329 commercial banks
w ith 0.37 percent of th e ir aggregate deposits.
Clio Bank has its main office in the c ity o f Clio (1970 population 2,357) in
Genesee C ounty, and its only branch 4 miles south of Clio in M ount Morris
Township (1970 population 29,349, up 42.2 percent fro m 1960). The Clio
area, w hich adjoins southeastern Saginaw C ounty, is largely agricultural. M ount
Morris Township, however, includes the rapidly expanding northwestern sub
urbs o f the c ity o f F lin t (1970 population 193,317), the major c ity o f Genesee
C ounty, which lies about 10 miles south o f Clio. Many residents o f both the
Clio area and M ount Morris Township commute to F lin t fo r em ploym ent.
Total population in Genesee C ounty, the fo u rth most populous county in
Michigan, numbers 445,589 residents, up 19 percent fro m 1960. Median house
hold income fo r Genesee C ounty is presently about 13 percent above the State
level.
The proposed consolidation w ould have its most immediate and direct e f
fects in an area which may be approximated by Genesee C ounty and the
southeastern corner o f Saginaw C ounty. The Saginaw C ounty po rtio n of this
local market w ould include the townships o f Frankenm uth and Birch Run
w hich are both w ith in 10 miles o f Clio. Ten commercial banks cu rre n tly oper
ate 72 offices in this banking market, 2 more banks than at midyear 1973. O f
the eight banks operating in the m arket as o f June 30, 1973, Frankenm uth
Bank ranked fo u rth w ith 4.7 percent o f the market's total IPC deposits, w hile
Clio Bank ranked sixth w ith 1.6 percent. The 3 most prom inent local banks are
among or affiliated w ith the 10 largest banking organizations in Michigan and
collectively hold about 89 percent o f the market's total IPC deposits. In terms
o f total deposit size, these three organizations range fro m $464 m illio n to $1.3
b illio n . While Frankenm uth Bank and Clio Bank both operate w ith in the local
banking market, the in fo rm a tio n filed w ith the application indicates that
neither derives much business fro m the immediate areas served prim arily by the
other. This may be explained by the natural pull towards the c ity o f Saginaw in
areas served by Frankenm uth Bank, and to the c ity o f F lin t in areas served by
Clio Bank. In any event, w hile th e ir proposed consolidation w ould eliminate
some existing com petition between them , the e ffect w ould not be com peti
tively significant in view o f the present banking structure and deposit concen
tration o f the market. The resulting bank w ould in fact have only 6.3 percent
o f the market's total IPC deposits.
Michigan law perm its both Frankenmuth Bank and Clio Bank to branch de
novo in areas served prim a rily by the other, although neither may branch de
novo into cities or villages already served by some other banking office. Clio
Bank does not appear presently to be a likely candidate fo r de novo expansion.
Frankenm uth Bank, on the other hand, if this proposed consolidation is
denied, could find areas o f the rapidly expanding suburbs o f F lin t south o f Clio
BA N K ABSORPTIONS APPROVED BY THE CORPORATION
57
attractive to it fo r de novo branching. The elim ination o f this potential fo r
increased com petition between the tw o banks by virtue o f the proposed con
solidation is o f m inor significance, however, in view o f the number o f larger
banks and bank holding companies th a t could also branch de novo in the same
area. Both o f Clio Bank's large Flint-based com petitors, fo r example, are pro
posing additional branches near Clio if this proposed transaction is approved.*
The legal branching area o f Frankenm uth Bank includes Saginaw C ounty
and portions o f the adjacent counties o f Bay, Genesee, Shiawassee, and Tus
cola w ith in a 25-mile radius o f the bank's main office. In this region, Franken
m uth Bank holds the sixth largest share (5.4 percent) of total I PC deposits,
aggregating in excess of $1.5 b illio n , held by all area offices o f the 22 com m er
cial banks presently represented therein. The 5 largest commercial bank IPC
deposit shares range fro m 8.8 percent to 24.5 percent, and in each instance are
held by a bank which is among the 20 largest commercial banks in Michigan.
The resulting bank w ould retain Frankenm uth Bank's sixth position in this
market, holding 6.3 percent o f the region's commercial bank IPC deposits. It
w ould rank 31st largest o f Michigan's commercial banks, holding 0.44 percent
o f th e ir aggregate IPC deposits.
Based on the foregoing, the Board o f Directors has concluded th a t the
proposed consolidation would not, in any section o f the country, substantially
lessen com petition, tend to create a m onopoly, or in any other manner be in
restraint o f trade.
Financial and Managerial Resources; Future Prospects. Each o f the con
solidating banks has satisfactory financial and managerial resources. Future
prospects of the resulting bank are favorable.
Convenience and Needs o f the Community to be Served. Customers o f the
Clio Bank w ould experience the greatest benefits o f the proposed consolida
tion. The normal lending lim it o f the resulting bank would be about six times
greater than th a t o f Clio Bank, and tru st facilities, FH A mortgage loans, and
electronic data processing w ould be made available. In addition, a much larger
and more aggressive in stitu tio n w ould o ffe r significantly strengthened com
p etitio n to the tw o major Flint-based commercial banks th ro u g h o u t the local
banking market.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.
Home Savings Bank of Upstate New York
R eso u rce s
(in
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
T o be
o p e ra te d
174,108
6
7
7,116
1
B a n k in g O ffic e s
Albany, New Y o rk
to merge with
Fort Edward-Hudson Falls Savings
and Loan Association
F o rt Edward
* C itiz e n s C o m m e rc ia l & S a vin g s B a n k w o u ld e s ta b lis h a b ra n c h 1 /2 m ile east o f C lio
B a n k 's m a in o ffic e ; Genessee M e rc h a n ts B a n k & T r u s t C o ., 2 m ile s s o u th o f C lio B a n k 's
b ra n c h .
F E D E R A L DEPOSIT INSURANCE CORPO RATIO N
58
Summary report by A tto rn e y General, November 30, 1973
W ith the exception of its Greenwich office, Home Savings' offices are s it
uated in the Albany-Schenectady-Troy area, a considerable distance from F o rt
Edward. However, Home Savings' Greenwich office is located in Washington
C ounty about 12-15 miles south o f F ort Edward. Home Savings and F o rt
Edward S &L each hold approxim ately 8 percent o f Washington C ounty's total
savings and tim e deposits. Their combined share o f about 16 percent w ould
rank the resulting in stitu tio n second among the six commercial banks and tw o
savings banks w ith savings and tim e deposits in the county. Thus, it appears
that the proposed merger may eliminate some existing com p e titio n and in
crease concentration in savings and tim e deposits in Washington C ounty.
Basis fo r C orporation approval, March 1, 1974
Home Savings Bank o f Upstate New Y o rk, A lbany, New Y o rk ("H om e
S a v in g s " ) , an insured mutual savings bank w ith to ta l resources o f
$174,108,000 and to ta l deposits o f $163,234,000, has applied, pursuant to
Section 18(c) and other provisions o f the Federal Deposit Insurance A c t, fo r
the C orporation's p rio r consent to merge w ith F o rt Edward-Hudson Falls
Savings and Loan Association, F ort Edward, New Y o rk (" S & L "), a federally
insured, State-chartered savings and loan association w ith total resources o f
$7,116,000 and to ta l deposits o f $6,043,000. The institutions would merge
under the charter and title o f Home Savings and, as an incident to the merger,
the sole office o f S & L w ould become a branch o f the resulting bank, increasing
to seven the number o f its offices.
Competition. Home Savings operates its main o ffice and one branch in the
city o f Albany, one branch each in the suburban towns o f Colonie and Guilderland, and one branch each in the counties o f Rensselaer and Washington. The
bank acquired the tw o latter branches during 1971 by merging tw o Statechartered savings and loan associations. Under present law, Home Savings may
acquire any number o f branches by merger th ro u g h o u t the Fourth Banking
D istrict, a 15-county region in northeastern New Y ork State, but it may open
de novo branches w ith in the d is tric t at a rate o f only one each year. Com
mencing January 1, 1976, mutual savings banks w ill be able to branch state
wide subject to the same lim ita tio n o f one de novo branch per year th a t exists
today.
S & L has its only office in F o rt Edward, Washington C ounty, New Y ork and
serves the Glens Falls market, a residential and industrial area having an esti
mated population o f 50,000, on the Hudson River in central-eastern New Y o rk
State. S&L is the smallest o f the 14 insured savings and loan associations
operating in the Fourth Banking D istrict.
S &L's office is in the Glens Falls banking market, some 50 road-miles north
of A lbany and about 15 road-miles northw est o f Home Savings' nearest branch,
in Greenwich, Washington C ounty. A lthough there is some overlap o f trade
areas w ith in Washington C ounty, neither Home Savings nor S & L draws a
significant am ount o f its business fro m areas served by the other. Moreover, the
$500-m illion A lbany Savings Bank dominates th r if t in s titu tio n deposits in the
areas w ith in Washington C ounty, neither Home Savings nor S &L draws a
National Savings Bank o f the c ity o f A lbany has entered the market area w ith a
de novo branch, and other savings banks can be expected to fo llo w in the years
to come. Because of this and because o f the lim ited deposits held by S & L, any
BA N K ABSORPTIONS APPROVED BY THE CORPORATION
59
loss o f potential com petition between S & L and Home Savings w hich m ight be
occasioned by the ir merger appears to have lim ited com petitive significance.
Home Savings is the sixth largest mutual in s titu tio n in the Fourth Banking
D istrict, holding about 6.1 percent o f the deposits held by all th r if t in stitu tio n s
in the district. S &L holds only 0.2 percent of such deposits.
Effects o f the merger should have an early im pact on com petition in the
Glens Falls market. The resulting bank, offering larger size mortgage loans and
introducing services not now available at the S & L office, should increase com
petition w ith the tw o nearby offices o f the A lbany Savings Bank.
The Board o f Directors is o f the opinion th a t the proposed merger w ould
not, in any section o f the co u n try, substantially lessen com petition, tend to
create a m onopoly, or in any other manner be in restraint o f trade.
Financial and Managerial Resources; Future Prospects. Financial and man
agerial resources o f each in s titu tio n , and o f the resulting bank, are considered
satisfactory. Future prospects o f the resulting bank are favorable.
Convenience and Needs o f the Community to be Served. As a result o f the
proposed merger, day-of-deposit-to-day-of-withdrawal accounts and Savings
Bank Life Insurance w ould be introduced to the S &L location. The resulting
bank, operating under a more liberal lending p olicy and having a greater capa
city than S & L to meet the demands fo r both residential and commercial m o rt
gage funds, should provide more effective com petition in the field o f real estate
lending than S & L to the commercial banks as well as to the other tw o savings
banks in the Glens Falls market.
Based on the foregoing, the Board o f Directors has concluded th a t approval
o f the application is warranted.
R esources
(in
th o u s a n d s
o f d o lla rs )
Northwest Bank
17,610
B a n k in g O ffic e s
In
o p e r a tio n
T o be
o p e ra te d
2
2
Oklahoma C ity, Oklahoma
to merge with
Northwest Building Corporation
351
Oklahoma C ity
Summary report by A tto rn e y General, December 6, 1973
N orthw est Bank operates its single office in Oklahoma C ity, Oklahoma
C ounty, Oklahoma. On September 30, 1973, N orthw est Bank held total de
posits o f $16.6 m illio n (including IPC demand deposits o f $5.2 m illion) and
net loans and discounts o f $9.9 m illio n . N orthwest Building C orporation is
located in Oklahoma C ity, Oklahoma C ounty, Oklahoma; it owns the land and
building upon which N orthw est Bank is located.
We conclude that the proposed merger o f N orthw est Bank and N orthw est
Building Corporation w ill not have any com petitive impact.
60
F E D E R A L DEPOSIT INSURANCE CORPORATION
Basis fo r C orporation approval, March 1, 1974
N orthw est Bank, Oklahoma C ity, Oklahoma, a State nonmember insured
bank w ith total resources of $17,610,000, has applied, pursuant to Section
18(c) and other provisions o f the Federal Deposit Insurance A ct, fo r the Cor
poration's p rio r consent to merge w ith N orthw est Building C orporation, O kla
homa C ity, Oklahoma, ("B u ild in g "), a noninsured, nonbanking e n tity w ith
total resources of $351,000, under the charter and title o f N orthw est Bank.
The resulting bank w ould operate the tw o banking offices o f N orthw est Bank
in th e ir present locations.
Building's assets are p rincipally the land and buildings presently occupied by
the tw o offices o f N orthw est Bank. The proposed merger w ould result in the
transfer o f ownership to N orthw est Bank of its banking premises subject to an
outstanding mortgage and the exchange of newly issued stock o f N orthw est
Bank fo r stock o f Building. W ith the merger effected, Building w ould no longer
exist as a corporate e n tity .
Competition. The proposed merger w ould accomplish the consolidation of a
bank w ith its banking premises affiliate. No effect on existing or potential
com petition, or on the structure o f banking in any relevant area would result.
The merger, moreover, w ould n o t alter in any manner the com petitive stance
of N orthw est Bank or o f any other bank.
Financial and Managerial Resources; Future Prospects. Financial and man
agerial resources o f both participants are acceptable. Future prospects o f the
resulting bank appear to be favorable.
Convenience and Needs o f the Community to be Served. The resulting bank,
w ith its services, personnel, and office locations unchanged from those o f
Northw est Bank, would have an equal capability to serve the convenience and
needs o f the com m unity.
The Union Bank and Savings Company
R eso u rce s
(u\nn
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
T o be
o p e ra te d
35,591
3
4
2,451
1
B a n k in g O ffic e s
Bellevue, Ohio
to acquire the assets and assume
the deposit liabilities o f
The Home Savings Building and Loan
Company
Clyde
Summary report by A tto rn e y General, October 15, 1973
Union Bank's Bellevue offices are located about 8 miles southeast o f Home
Savings' office in Clyde. U nion Bank holds approxim ately 8 percent of Huron
C ounty's total tim e and savings deposits held by commercial banks and savings
and loan associations, w hile Home Savings holds about 1.3 percent o f such
deposits in adjacent Sandusky C ounty. A lthough Union Bank apparently de
rives some business fro m the area served by Home Savings, it does not appear
B A N K ABSORPTIONS APPROVED BY THE CORPO RATIO N
61
th a t the proposed transaction w ould substantially increase concentration in
tim e deposits or mortgage loans in any relevant geographic market.
Therefore, we conclude th a t the proposed transaction w ould not have a
substantial com petitive impact.
Basis fo r C orporation approval, March 11, 1974
The Union Bank and Savings Company, Bellevue, Ohio ("U n io n B ank"), an
insured State member bank w ith total resources o f $35,591,000 and total IPC
deposits o f $28,256,000, has applied, pursuant to Section 18(c) o f the Federal
Deposit Insurance A ct, fo r the C orporation's prior consent to acquire the assets
of, and assume lia b ility to pay deposits made in, The Home Savings Building
and Loan Company, Clyde, Ohio ("H om e Savings"), a nonfederally insured
mutual savings and loan association w ith total resources o f $2,451,000 and
total IPC deposits o f $2,305,000. The transaction w ould be effected under the
charter and w ith the title o f Union Bank. Union Bank has also applied to the
Ohio Division o f Banks and the Federal Reserve Bank o f Cleveland fo r per
mission to establish a branch at the sole location of Home Savings. Consum
mation o f the proposed transaction, including establishment o f the Clyde
branch, w ould increase the number o f Union Bank's offices to four.
Competition. Union Bank operates its main office and one branch in Belle
vue (1970 population 8,604) and one additional branch in M onroeville (1970
population 1,455), about 6 miles southeast o f Bellevue. Bellevue is located in
both Sandusky and Huron Counties in the central po rtio n o f northern Ohio.
Home Savings operates its only office in the village o f Clyde (1970 population
5,503), about 7 miles northwest o f Bellevue.
The most appropriate geographic area in which to assess the effects o f the
proposed transaction lies w ith in an approximate 10-mile radius o f Clyde. This
area w ould include most o f Sandusky C ounty (1970 population 60,983, up 8.0
percent since 1960) and portions o f Huron, Seneca, and Erie Counties. The
economy o f the area has a good mix o f industry and agriculture, and the
W hirlpool C orporation has a large plant in Clyde. Am ple rail and highway
facilities make the area attractive to new industry.
Home Savings is a limited-service savings and loan association offering only
5-percent passbook savings accounts, residential mortgages, and passbook
loans. Since its passbook rate is the same as Union Bank's and other com m er
cial banks in the area, and since it competes w ith all other deposit in stitutions
in the geographic m arket area fo r residential mortgages, it w ould appear
appropriate to include commercial bank IPC time and savings deposits as well
as the mortgage loans o f all such institutions in determ ining the likely im pact
of the proposed acquisition on com petition w ith in the local market.
W ithin a 10-mile radius of Clyde there are seven commercial banks and five
savings and loan associations. The W hirlpool Corporation also has a credit
union w ith about $6.5 m illio n in deposits that competes fo r the savings o f
Clyde residents. Union Bank ranks sixth among the 12 commercial banks and
savings and loan associations in terms of total IPC tim e and savings deposits,
w ith approxim ately 9.5 percent of the aggregate, w hile Home Savings has only
about 1.4 percent o f such deposits. The resulting bank's relative position
among these institutions would no t change significantly and the proposed
transaction w ould not have any appreciable effect on this d istrib u tio n of tim e
and savings deposits in the relevant geographic area. Further, the number o f
62
F E D E R A L DEPOSIT INSURANCE CORPORATION
alternatives available to the local Clyde com m unity fo r tim e and savings de
posit services w ould not be changed. Union Bank is not cu rre n tly represented
there, and the branch w hich w ould replace Home Savings w ould pay the same
interest rate on passbook savings th a t Home Savings now pays, besides offering
demand deposit and tim e deposit services not presently available at Home
Savings. S ignificant com petition w ould remain fo r all commercial bank and
th r ift in stitu tio n services in both Frem ont and Bellevue, each o f which is 7
miles from Clyde;.
There is very little existing com petition between Union Bank and Home
Savings, even though their closest offices are only about 7 miles apart in an
area w ith good roads. This is equally true w hether passbook deposits or resi
dential mortgage loans are considered. The proposed transaction therefore
w ould not eliminate any significant existing com petition between Union Bank
and Home Savings.
Increased com p e titio n between the tw o institutions in the fu tu re appears
unlikely. There are sta tu to ry restrictions relative to the powers o f savings and
loan associations w hich w ould effectively prevent Home Savings fro m be
coming a more significant co m p e tito r of Union Bank. In addition, Home Sav
ings has little in the way o f financial and managerial resources, having accumu
lated only $2,200,000 in to ta l deposits in over 75 years in operation, and it is
currently function in g w ith only one fu ll-tim e employee. A ccordingly, the pro
posed transaction w ould eliminate no significant potential com petition be
tween Union B ark and Home Savings.
Inasmuch as :he resulting bank w ould operate as a commercial bank, it is
also appropriate to consider w hat effect the proposed transaction m ight have
on the structure o f commercial banking in Union Bank's m aximum branching
and merging area. De novo branching in Ohio is generally restricted to the
confines of a single co u n ty, b u t because Bellevue, the location o f Union Bank's
main office, is located in both Sandusky and Huron Counties, Union Bank may
legally branch throughout both o f those counties. In this 2-county area there
are 13 commercial banks operating 32 offices w ith an aggregate o f
$342,581,000 in total deposits. Union Bank is the fifth largest o f these banks
w ith 9.0 percent o f th e ir to ta l deposits. The addition of Home Savings'
$2,200,000 in deposits w ould raise this share to 9.6 percent and w ould make
Union Bank approxim ately the same size as the fourth-ranked commercial
bank. Tw o of the commercial banks in this tw o -co u n try area, however, are
affiliated w ith m ultibank holding companies, each of which has in excess o f $1
b illion in total deposits. It is apparent th a t the proposed transaction w ould
have no significant effect on the structure o f commercial banking in Sandusky
and Huron Counties.
Under these c rcumstances, the Board o f Direcors is o f the opinion th a t the
proposed transaction w ould not, in any section o f the co untry, substantially
lessen com petition, tend to create a m onopoly, or in any other manner be in
restraint o f trade.
Financial and Managerial Resources; Future Prospects. Both Union Bank
and Home Savings have satisfactory financial and managerial resources fo r the
business they presently do, as w ould the resulting bank. Union Bank and the
resulting bank have satisfactory prospects fo r the future, b u t it w ould appear
that Home Savings w ould fare better as part o f the resulting bank rather than
operating independently.
B A N K ABSORPTIONS APPROVED BY THE CORPORATION
63
Convenience and Needs o f the Community to be Served. The proposed
transaction would benefit individuals and businesses in the Clyde area by in
troducing an alternative fo r the fu ll range o f commercial banking services
(except tru st services) now available only fro m one other small commercial
bank there. Residents o f the Clyde co m m u n ity w ould benefit fro m a second
local alternative fo r checking account services, higher-yield tim e deposits, a
significantly larger lending lim it, and increased local availability o f commercial
and industrial loans.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.
R esources
(in
th o u s a n d s
o f d o lla rs )
Erie County Savings Bank
B a n k in g O ffic e s
In
o p e r a tio n
T o be
o p e ra te d
1,085,498
8
9
553
1
B uffalo, New Y o rk
to merge with
Frontier Savings and Loan Association
Cheektowaga
Summary report by A tto rn e y General, December 6, 1973
Erie Savings and F rontier are both situated in the immediate B uffalo area in
eastern Erie C ounty. The service area o f Erie Savings com pletely encompasses
that o f Frontier. Thus, it appears th a t the proposed transaction w ould e lim i
nate some existing com petition. However, in view o f the relatively small size o f
F rontier, it does not appear that the proposed merger w ould substantially
increase concentration in the greater B uffalo area.
Therefore, we conclude th a t the proposed transaction w ould not have a
substantial com petitive impact.
Basis fo r C orporation approval, March 20, 1974
Erie C ounty Savings Bank, Buffalo, New Y o rk ("E rie S B "), an insured
mutual savings bank w ith total resources o f $1,085,498,000 and total deposits
of $1,007,438,000, has applied, pursuant to Section 18(c) and other provisions
of the Federal Deposit Insurance A ct, fo r the C orporation's prio r consent to
merge w ith F rontier Savings and Loan Association, Cheektowaga, New Y o rk
("F ro n tie r S & L "), a noninsured mutual savings and loan association w ith total
resources of $553,000 and total deposits of $491,000. The in stitu tio n s w ould
merge under the charter and title o f Erie SB and, as an incident to the merger,
the sole office of Frontier S &L would become a branch o f the resulting bank,
increasing the number o f its offices to nine.
Competition. Erie SB is headquartered in B uffalo and operates a total o f
eight offices, all in Erie C ounty at the western end of New Y o rk State on Lake
Erie. B uffalo, the State's second largest city, is an im p o rta n t rail center and
lakeport. A lthough the area's economy is diversified, flo u r m illing and steel and
autom obile production are im p o rta n t contributors. Erie SB is the second larg
est th r ift in stitu tio n in Erie C ounty, w ith 32.1 percent o f the deposits held by
FE D E R A L DEPOSIT INSURANCE CORPO RATIO N
64
the 14 such institutions there. It is also the second largest th r ift in stitu tio n in
New Y ork's N inth Banking D istrict, w ith 27.9 percent o f the total deposits
held by all th r if t in stitutions in the d is tric t as of December 31, 1972.
F rontier S &L operates its only office in Cheektowaga, a growing suburban
tow n which is adjacent to B uffalo and w hich is an integral part o f the B uffalo
m etropolitan area. It is not, however, an effective com petitor. In more than 80
years since its organization in 1891, F rontier S &L has accumulated only
$491,000 in total deposits. T w o-thirds o f this total originates fro m only three
families. It is open only 141/2 hours each week, has no active fu ll-tim e officers
and only tw o part-tim e employees, has only seven mortgages w ith principal
amounts in excess o f $20,000, and has had operating deficits or only nominal
operating income in each o f the past 4 years. While some existing com petition
and some potential fo r increased com petition in the fu tu re between the tw o
institutions m ight be eliminated by their proposed merger, it is apparent th a t
the overall effect o f th e ir merger on com petition w ould be de minimis. M ore
over, should this merger be consummated, 41 offices o f 12 competing th r if t
institutions would remain available to residents o f B uffalo and Erie C ounty,
including 8 offices o f the $1.3-billion-deposit B uffalo Savings Bank, the largest
th r ift in stitu tio n in the market.
Under the circumstances presented, the Board o f Directors is o f the opinion
that the proposed merger w ould not, in any section o f the co u n try, substan
tia lly lessen com petition, tend to create a m onopoly, or in any other manner
be in restraint o f trade.
Financial and Managerial Resources; Future Prospects. Erie SB has, and the
resulting bank w ould have, adequate financial and managerial resources and
favorable futu re prospects. A lthough Frontier S&L's financial and managerial
resources appear acceptable fo r the lim ited business it does, its future prospects
are bleak as an independent in s titu tio n tryin g to compete effectively in the
heavily populated and urbanized Erie market.
Convenience and Needs o f the Community to be Served. Customers o f
Frontier S &L w ould benefit fro m the broad range o f services offered by the
resulting bank, including higher interest rates on longer term tim e deposits,
FH A and V A mortgage loans, student loans, savings bank life insurance, safe
deposit box rentals, and fu ll banking hours. F rontier S & L's customers w ould
find more lendable funds available and w ould also gain the protection and
security o f Federal deposit insurance.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.
R esources
(in
th o u s a n d s
o f d o lla rs )
Northern Central Bank and Trust Company
B a n k in g O ffic e s
In
o p e r a tio n
128,468
8
14,086
3
W illiam sport, F’ennsylvania
to merge with
Susquehanna Valley Bank and Trust Company
Sunbury
T o be
o p e ra te d
11
B A N K ABSORPTIONS APPROVED BY TH E CORPORATION
65
Summary report by A tto rn e y General, February 13, 1974
While Northern Central Bank is headquartered in Lycom ing C ounty about
27 miles from Susquehanna Valley Bank's head office, it operates a branch
office in M ilton , Northum berland C ounty, Pennsylvania. This M ilto n office is
about 10 miles from the N orthum berland branch o f Susquehanna Valley Bank
and about 13 miles fro m the other tw o offices o f Susquehanna Valley Bank.
N orthern Central Bank was the fifth largest of the 17 banks operating in
N orthum berland C ounty as o f June 30, 1973 w ith $12.9 m illio n , or 5 percent,
of total county deposits. Susquehanna Valley Bank was the seventh largest
bank in the county w ith $12.6 m illio n , or 4.9 percent, o f total county deposits
as o f th a t date. Although the application indicates th a t there is only slight
deposit and loan overlap between the tw o banks, the short distance and easy
access between them , combined w ith the absence o f other bank offices be
tween N orthum berland and M ilto n , indicate th a t this transaction w ould e lim i
nate some existing com petition in western N orthum berland County.
Basis fo r C orporation approval, March 20, 1974
N orthern Central Bank and Trust Company, W illiam sport, Pennsylvania
("C e n tra l"), a State nonmember insured bank w ith to ta l resources o f
$128,468,000 and to ta l IPC deposits o f $103,959,000, has applied, pursuant
to Section 18(c) and other provisions o f the Federal Deposit Insurance A ct, fo r
the C orporation's p rio r consent to merge w ith Susquehanna Valley Bank and
Trust Company, Sunbury, Pennsylvania ("V a lle y B a n k"), w ith total resources
o f $14,086,000 and total IPC deposits o f $10,844,000. These banks w ould
merge under the charter and title o f Central. The resulting bank w ould have a
total o f 11 offices, including the 3 offices presently operated by Valley Bank.
Competition. Central operates a total of eight offices: its main office and
tw o branches in W illiam sport and tw o branches in the Montgom ery area, about
11 road-miles southeast of W illiam sport, all in Lycom ing C ounty; tw o branches
in the M ilton area o f Northum berland C ounty, some 25 road-miles southeast o f
W illiam sport; and one branch in Athens, Bradford C ounty, about 80 road-miles
northeast o f W illiam sport. Central is the largest commercial bank operating in
Lycom ing C ounty, although fo u r other commercial banks in the co u n ty in d i
vidually co ntrol IPC deposits o f more than $60 m illio n .
Valley Bank operates its three offices in Northum berland C ounty: its main
office and one branch in the c ity o f Sunbury (1970 population 13,025, rep
resenting a decline o f 4.8 percent during the 1960s) and one branch in N o rth
umberland borough (1970 population 4,102). The economy o f N orthum ber
land C ounty is prim a rily agricultural and 1972 income levels are about 23
percent below the State level.
The com petitive im pact o f the proposed merger w ould be most immediate
and direct w ith in approxim ately a 12-mile radius o f Sunbury, an area which
w ould include M ilto n and Lewisburg to the north, Shamokin Dam to the west,
and Selinsgrove to the southwest. In this market, 15 commercial banks w ith 25
offices hold IPC deposits aggregating $229,906,000. Valley Bank has the 11th
largest share (4.7 percent) of such deposits, while the tw o M ilto n area offices
of Central hold the 7th largest share (5.5 percent). The largest share (17.8
66
F E D E R A L DEPOSIT INSURANCE CORPORATION
percent) is held by First National Trust Bank, a $64.4-m il!ion-lPC -deposit
in stitu tio n headquartered in Sunbury, and the second largest share (12.1 per
cent) is held by Snyder C ounty Trust Company, a $ 27.7-mil Iion-l PC-deposit
in stitu tio n headquartered in Selinsgrove. The resulting bank w ould hold the
fo u rth largest share (10.2 percent) o f IPC deposits held by all such offices. The
elim ination of existing com petition between the tw o banks which w ould be
occasioned by their merger appears to have only lim ited com petitive signif
icance in view of the number o f alternatives fo r banking services in the relevant
market and the small share o f area IPC deposits held by Valley Bank.
Pennsylvania law permits a commercial bank to branch de novo or to merge
throughout its main office county and all counties contiguous thereto. Central,
thus, may enter Sunbury c ity and N orthum berland borough. Neither o f these
com m unities w ould appear attractive to Central fo r de novo entry, however,
because o f a stagnant economy and buying levels 23 percent below the State
level. Valley Bank, fo r its part, has lim ited financial and managerial resources
and is not like ly to seek de novo expansion at the present time. The potential
fo r increased connpetition between Central and Valley Bank through de novo
branching in the future is thus considered remote.
W ithin the 10-county region in which Central may expand de novo or by
merger (its maximum potential market since Pennsylvania law does not perm it
the operation of m ultibank holding companies), a total of 59 commercial
banks operate 142 offices and hold area IPC deposits aggregating $1,212 m il
lion. Central has 8.6 percent— the largest share— o f such deposits and 5.6 per
cent o f the area's commercial banking offices. The proposed transaction w ould
increase Central':; IPC deposit share in this region to 9.5 percent, w hile the fo u r
next ranking banks w ould hold in the aggregate about 24.2 percent of such
deposits. In view o f the relatively unconcentrated nature of this 10-county area
and the presencs in it of other com petitors o f substantial size, it does not
appear tha t the proposed merger w ould have any significant adverse effect on
the concentration of banking resources or the commercial bank structure in
this relevant area.
Under these circumstances, the Board o f Directors is o f the opinion th a t the
proposed merger would not, in any section o f the country, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future Prospects. The resulting bank
would have adequate financial and managerial resources. Its future prospects
w ould be satisfactory.
Convenience and Needs o f the Community to be Served. The proposed
merger w ould have virtu a lly no e ffect on Central's present customers. The
merger w ould provide customers o f Valley Bank, however, w ith the specialized
lending services o f a m ajor area bank w ith a lending lim it o f more than $1
m illion. Interest paid on regular savings accounts w ould be increased from 4
percent to 4.5 percent per annum. Data processing facilities and broadened
trust services w ould be available.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the a pplicatior is warranted.
BA N K ABSORPTIONS APPROVED BY THE CORPO RATIO N
First State Bank o f Saginaw
Saginaw, Michigan
67
B a n k in g O ffic e s
R esources
(in
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
T o be
o p e ra te d
35,768
5
6
11,746
1
to consolidate with
The State Bank o f Vassar
Vassar
Summary report by A tto rn e y General, October 31, 1973
The nearest offices o f the parties are situated approxim ately 20 miles apart,
w ith several com petitive alternatives in the intervening area. However, because
a substantial number o f residents in the Vassar area com m ute to Saginaw, it
appears th a t the proposed consolidation may elim inate some existing com peti
tion. It does not appear, however, th a t the transaction w ould substantially
increase concentration in any relevant market.
A pplicant could legally establish de novo offices near Vassar, in the area
served by Bank. However, in view of the nature of th a t co m m u n ity and the
existence o f other significant potential entrants, we conclude th a t the con
solidation w ill not eliminate substantial potential com petition.
Therefore, we conclude th a t the proposed transaction w ould not have a
substantial com petitive impact.
Basis fo r C orporation approval, A p ril 11, 1974
First State Bank o f Saginaw, Saginaw, Michigan ("F irs t S tate"), a State
nonmember insured bank w ith total resources of $35,768,000 and total IPC
deposits o f $25,550,000, has applied, pursuant to Section 18(c) and other
provisions o f the Federal Deposit Insurance A ct, fo r the C orporation's prio r
consent to consolidate w ith The State Bank o f Vassar, Vassar, Michigan
("Vassar B ank"), which has total resources o f $11,746,000 and total IPC de
posits o f $9,363,000. The banks w ould consolidate under the charter and title
of First State. As an incident to the transaction, the sole office o f Vassar Bank
would become a branch o f the resulting bank, increasing the number o f its
offices to six.
Competition. First State operates five offices in Saginaw C ounty in eastcentral Michigan and holds 5.3 percent o f total commercial bank IPC deposits
in the county. The main office and tw o branches are in the c ity o f Saginaw,
one branch is in Spaulding Township, and one branch is in Hem lock, an un
incorporated village approxim ately 17 miles west o f Saginaw. While the popula
tion o f the c ity o f Saginaw declined fro m 98,265 in 1960 to 91,849 in 1970,
the population o f Saginaw C ounty increased 15.2 percent to 219,743 during
the same period. The c ity of Saginaw and its suburbs are highly industrialized,
w ith the manufacture o f autom otive components being the principal a ctivity.
Other portions o f the county are dependent upon agriculture.
Vassar Bank operates its only office in the tow n o f Vassar (1970 population
2,802) in Tuscola C ounty (1970 population 48,603) and holds 9.8 percent o f
total commercial bank IPC deposits in the county. The economy o f this area is
similar to th a t o f the much larger Saginaw area.
68
F E D E R A L DEPOSIT INSURANCE CORPORATION
The proposed consolidation would have its most immediate and direct e f
fects w ith in a 15-mile radius o f the tow n of Vassar. This area includes the
western half o1 Tuscola C ounty, a portion o f eastern Saginaw C ounty, and the
northeastern corner o f Genesee C ounty. Eight banks operate 19 offices w ith in
this area. Vassar Bank holds 7.1 percent o f to ta l commercial bank IPC deposits
and is the fifth largest bank in the market. The largest bank in the market holds
50.2 percent o f the area's commercial bank IPC deposits and has just con
solidated w ith the second largest bank which holds 11.1 percent o f such de
posits. The closest o ffice o f First State is located approxim ately 21 miles west
o f Vassar, and there are numerous offices o f larger banks located in the in te r
vening area. Consequently, First State is not considered com petitive in this
market and approval o f the subject proposal w ould have no significant e ffect
on existing com petition between the tw o banks.
Michigan law perm its both banks to enter de novo the m arket areas o f the
other, although it prohibits de novo entry into cities or villages already served
by a banking office. Vassar Bank has operated its single office ever since its
organization in 1934, and the possibility th a t it would begin de novo branching
now is considered remote in view of its small size, its unaggressive and con
servative management, and the form idable com petition offered by the larger
banking institutions operating in its legal branching area. First State, however,
has an aggressive and expansion-minded management and w ould probably ex
pand eventually into Vassar Bank's market area despite the present number o f
banking offices there and despite the lower-than-average income levels th a t
prevail. The proposed consolidation w ould foreclose this potential fo r in
creased com petition between the tw o banks, b u t this appears to be o f m inor
com petitive significance in view o f the number o f larger banks in Vassar Bank's
m arket and the relatively small share of commercial bank IPC deposits pres
ently held by Vassar Bank.
The m axim um legal branching area o f First State includes Saginaw C ounty
and portions o f the adjacent counties of Bay, Genesee, G ratiot, Midland,
Shiawassee, and Tuscola w ith in a 25-mile radius o f the bank's main o ffice at
Saginaw. In this area there are 16 commercial banks w ith to ta l IPC deposits o f
$823,712,000. First State holds the 10th largest share (2.8 percent) of such
deposits. The five largest banks are represented, including an affiliate o f the
$2.5-billion-deposit Michigan National C orporation, and hold 73.3 percent o f
these deposits; their shares range from 8.9 percent to 24.6 percent. Upon
consummation of this proposed consolidation, the resulting bank w ould hold
4.0 percent of IPC deposits and w ould have the ninth largest IPC deposit share.
Based on the foregoing, the Board o f Directors has concluded th a t the
proposed consolidation w ould not, in any section o f the country, substantially
lessen com petition, tend to create a m onopoly, or in any other manner be in
restraint o f trade.
Financial and Managerial Resources; Future Prospects. Each o f the con
solidating banks has satisfactory financial and managerial resources. Future
prospects o f the resulting bank are favorable.
Convenience and Needs o f the Community to be Served. The increased
lending lim it o f the resulting bank w ould benefit customers in each o f the areas
presently served by the tw o banks, particularly those in the service area o f
Vassar Bank. In addition, in Vassar Bank's market, the resulting bank w ould
provide an alternative to the larger banks presently represented there fo r free
B A N K ABSORPTIONS APPROVED BY THE CORPORATION
69
checking accounts, 5-percent 90-day passbook accounts, 7 percent 4-year tim e
deposits, and commercial and industrial loans. The consequent increase in com
petition should benefit all consumers o f banking services in Vassar Bank's
m arket area.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.
R eso u rce s
(in
th o u s a n d s
o f d o lla rs )
American Security Bank
B a n k in g O ffic e s
In
o p e r a tio n
-
T o be
o p e ra te d
1
-
N orth Platte, Nebraska
to merge with
Citizens Security Bank
499
1
Wallace
Summary report by A tto rn e y General, March 4, 1974
Citizens Security Bank ("C itize n s") is a u n it bank located in Wallace, L in
coln C ounty, Nebraska. The application indicates th a t as o f December 31,
1973, Citizens had total assets o f $498,981, held total deposits of $218,372,
and had loans am ounting to $16,769. American Security Bank ("A m e ric a n ") is
in organization and has been chartered to operate in N orth Platte (population
20,000), the county seat of Lincoln C ounty about 35 miles northeast o f
Wallace (population 241).
In view o f the nature o f the corporate parties to this transaction, we con
clude th a t it w ould be unlikely to have any significant adverse com petitive
effects.
Basis fo r C orporation approval, A p ril 11, 1974
Pursuant to Sections 5 and 18(c) and other provisions of the Federal De
posit Insurance A ct, applications have been filed on behalf o f Am erican Secu
rity Bank, N orth Platte, Nebraska ("A m e ric a n "), a proposed new bank, fo r
Federal deposit insurance and fo r the C orporation's p rio r consent to its merger
w ith Citizens Security Bank, Wallace, Nebraska ("C itiz e n s "), a State non
member insured bank w ith to ta l resources o f $499,000 and IPC deposits o f
$186,000, under the charter and title o f American. The sole office o f the
resulting bank would be located at 410 Rodeo Road, N orth Platte. Am erican
would not be in operation prior to the proposed merger. Upon consumm ation
of th a t transaction, the sole office o f Citizens, now being operated in Wallace,
w ould be term inated.
Competition. N orth Platte (population 19,447) is the seat o f Lincoln
C ounty (population 29,538). Located in west-central Nebraska some 240
road-miles west o f Omaha and a similar distance northeast o f Denver, N orth
Platte is the commercial center fo r an agricultural region which lies w ith in a
radius of some 75 miles o f the c ity and has a population estimated at 75,000.
The c ity had its origins as a railroad tow n and the Union Pacific Railroad, the
70
F E D E R A L DEPOSIT INSURANCE CORPORATION
area's largest employer, maintains extensive facilities here. The railroad's rightof-way runs through the c ity and, w ith lim ited crossings available, rather effec
tively divides it into a northern and southern section. The city's principal
business d istrict lies in the southern section and contains all three commercial
banks which serve the c ity . These three banks control IPC deposits aggregating
$62,387,000.
American w ould be established in the northern section of the c ity and
w ould o ffe r the services of drive-up tellers and convenient parking facilities. No
commercial bank facilities are presently located in this area, and the estimated
4,800 inhabitants and businessmen when seeking commercial bank services
must travel a m inim um o f one mile to obtain such services. A survey o f the
northern section of the c ity indicated th a t the proposed bank w ould have
considerable acceptance. It appears that this market has su fficie n t population
and commercial activity to support a new bank. By virtue o f the proposed
merger, American would commence business w ith deposits of some $150,000.
It w ould be affiliated through common stock ownership w ith tw o other L in
coln C ounty commercial banks: Farmers State Bank, Wallace, and The Hershey
State Bank, Hershey. Combined, the IPC deposits held by these three banks
w ould approxim ate 7.7 percent o f the total IPC deposits held by all eight
insured commercial banks in the county.
Citizens operates its sole office 2 hours a week in Wallace (population 241),
some 45 road-miles southwest o f North Platte. It has not been an effective
com petitor during recent years and presently holds only 0.3 percent o f Lincoln
C ounty's total commercial bank IPC deposits. A t year-end 1973, it had only 7
loan accounts and 13 active depositors. It has been controlled since October
1972 by the same group which controls Farmers State Bank in Wallace.
Citizens and American w ill not be in operation concurrently and, thus,
com petition between them on the date of merger w ould be nonexistent. By
virtue of their common ownership, there is no likelihood th a t effective com
pe tition w ould develop between the tw o banks in the fu tu re through de novo
branching.
Under these circumstances, the Board o f Directors is o f the opinion th a t the
proposed merger w ould not, in any section o f the country, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future Prospects. The resulting bank
would have adequate capital funds fo r the volume of business it is expected to
draw during the several early years of its operations, and its financial resources
are anticipated to be satisfactory. Its management is also considered accept
able, and its future prospects are favorable.
Convenience and Needs o f the Community to be Served. The merger w ould
provide residents and businessmen of the northern section o f N orth Platte a
convenient local source of banking services-the firs t to be established in this
area o f an estimated 4,800 inhabitants. Drive-up tellers and ample parking
facilities w ould be provided and these should prove attractive in the c ity , where
such facilities are at a m inim um . Furtherm ore, residents and businessmen in
Wallace w ould experience no perceptible change in the banking services avail
able to them in view o f Citizens' present activities and the presence in tow n,
under common control, of Farmers State Bank.
The Board o f Directors has concluded, fo llow in g a careful evaluation o f all
B A N K ABSORPTIONS APPROVED BY THE CORPO RATIO N
71
available facts and in form ation relevant to the application fo r Federal deposit
insurance, tha t approval o f the application is warranted. In addition, the Board
o f Directors has concluded th a t American's application fo r consent to merge
w ith Citizens should be approved.
American Commercial Bank
B a n k in g O ffic e s
R esources
(in
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
T o be
o p e ra te d
21,093
5
6
2,511
1
Spokane, Washington
to purchase the assets an d assume
the deposit liabilities o f
lone State Bank
lone
Summary report by A tto rn e y General, December 21, 1973
The nearest offices o f American Bank and lone Bank are approxim ately 90
miles apart, w ith several banking offices intervening. Thus, the proposed ac
quisition w ill n ot eliminate substantial existing com petition. A nd in view o f the
modest size o f the parties, coupled w ith the existence of other potential
entrants into their respective service areas, it does not appear th a t the proposed
transaction w ill eliminate substantial potential com petition.
Therefore, we conclude th a t the proposed transaction w ould no t have a
substantial com petitive impact.
Basis fo r Corporation approval, A p ril 11, 1974
American Commercial Bank, Spokane, Washington ("A m e ric a n ")(to ta l re
sources $21,093,000; IPC deposits $14,380,000), a State nonmember insured
bank, has applied, pursuant to Section 18(c) and other provisions o f the Fed
eral Deposit Insurance A ct, fo r the C orporation's p rio r consent to purchase the
assets of, and assume lia b ility to pay deposits made in, lone State Bank, lone,
W a s h in g to n ( " l o n e S ta te ")(to ta l resources $2,511,000; IPC deposits
$1,967,000). As an incident to the transaction, the sole o ffice o f lone State
w ould be operated as a branch o f American, increasing to six the number o f its
offices.
Competition. American operates five offices in Spokane C ounty: its main
office and three branches w ith in the city o f Spokane and one branch in the
tow n of A irw ay Heights, located some 10 road-miles west o f the main office.
Spokane c ity is the county seat and the center of trade and finance fo r the
county and fo r much o f eastern Washington as well. Lum bering, agriculture,
manufacturing, mining, and m ilita ry installations are all significant in the econ
om y o f the area.
The c ity of Spokane and its environs, centrally located in the cou n ty, are
the prim ary trade area o f American. This area accounts fo r all b u t a small
72
F E D E R A L DEPOSIT INSURANCE CORPO RATIO N
fraction o f the county's population, and the county may, thus, fo r convenience
be considered American's present market. Ten commercial banks compete in
Spokane C ounty, their 57 area offices holding IPC deposits aggregating
$553,661,000. The three largest commercial banks in this market, Seattle-First
National Bank, Old National Bank o f Washington, and Washington T rust Bank,
together control a to ta l o f 81.7 percent o f the IPC deposits held by all com
mercial banking offices w ith in the county. American, although the sixth largest
in terms of area commercial IPC deposits held, has only 2.6 percent of such
deposits.
lone State is located in a small com m unity (population 529) in sparsely
populated Pend Oreille C ounty (population 6,025) in the extreme northeast
corner o f the State o f Washington. It is the only Washington-based bank w ith in
40 miles and is one o f only tw o banks operating in Pend Oreille C ounty, the
other being a branch o f the State's second largest bank located in the southern
part o f the county. Median household income in the county was 21.7 percent
below the State median in 1972.
A pp ro xim ate ly 85 road-miles separate the closest office of American from
lone State and neither bank draws more than a nominal am ount o f business
from the service area of the other. The proposed transaction, thus, w ould
eliminate no significant existing com petition between the tw o banks.
American, under Washington law, may branch de novo in unbanked, in
corporated areas o f Pend Oreille C ounty, as may lone State in Spokane Coun
ty. Pend Oreille C ounty contains three such areas, b u t all three lost population
during the 1960s and the largest presently has 307 inhabitants. The only such
area in Spokane C ounty has a population of 48. None of these areas is like ly to
be attractive fo r de novo branching purposes in the foreseeable future.
Commercial banking is concentrated to a high degree in the State o f Wash
ington, w ith fiv/e banks having more than 76 percent o f the deposits held by all
83 of this State's commercial banks as o f June 30, 1973. American by the
proposed transaction w ould increase its ranking from 25th largest commercial
bank in the State to 23rd largest. It w ould, however, hold only 0.3 percent o f
the State's total commercial bank deposits.
The Board o f Directors, fo r the reasons stated, is o f the opinion th a t the
proposed transaction w ould not, in any section o f the country, substantially
lessen com petition, tend to create a m onopoly, or in any other manner be in
restraint o f trade.
Financial and Managerial Resources; Future Prospects. Both financial and
managerial resources of the resulting bank w ould be adequate fo r the business
it w ould conduct. Future prospects of the resulting bank are considered fa vo r
able.
Convenience and Needs o f the Communities to be Served. The proposed
transaction w ould have no perceptible im pact on American's present trade
area. In northern Pend Oreille C ounty, however, the only commercial bank
office in the area, w hich recently had only 18 percent o f its to ta l assets in
loans, w ould be operated under less restrictive lending policies than those
prevailing prior to the sale o f the bank in May 1973 to stockholders and
directors of American. In general, management of the resulting bank w ould be
more responsive than prio r management to the banking requirements o f n o rth
ern Pend Oreille C ounty.
Based on the foregoing, the Board o f Directors has concluded th a t approval
o f the application is warranted.
B A N K ABSORPTIONS APPROVED BY TH E CORPORATION
Commercial Security Bank
Ogden, Utah
73
B a n k in g O ffic e s
R eso u rce s
(in
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
225,401
12
11,126
1
T o be
o p e ra te d
13
to purchase the assets and assume
the deposit liabilities o f
Orem State Bank
Orem
Summary report by A tto rn e y General, March 7, 1974
Commercial Security does not presently operate in Utah C ounty. Its office
nearest to Bank is located in Midvale, Salt Lake C ounty, about 30 miles n o rth
west o f Orem. In view o f the distance between the offices w ith several banking
alternatives intervening, the proposed transaction would not appear to eliminate
substantial existing com petition.
Utah C ounty and the com m unities o f Orem (estimated population 30,000)
and Provo (population exceeding 53,000) have recently experienced substantial
economic and population grow th.
Commercial banking in Utah C ounty is highly concentrated. As o f June 30,
1972, the fo u r largest banking organizations accounted fo r about 77.1 percent
o f total county deposits. Bank, w ith the largest share o f deposits held by the
3 banks serving Orem, ranked eighth among the 11 banks in the county.
Though Commercial Security may not, under Utah law, branch in to Orem, its
parent holding company, Commercial Security Bancorporation, the State's
fo u rth largest banking organization, could establish a de novo bank there.
Moreover, as indicated above, prio r to the filin g o f this application both Com
mercial S ecurity and Bank applied fo r permission to establish branches in
Provo, the county seat o f Utah C ounty, about 10 miles south o f Orem. Thus,
the proposed transaction may elim inate some potential com petition. However,
it does not appear th a t the overall com petitive effects of the transaction w ould
be significantly adverse.
Basis fo r C orporation approval, A p ril 26, 1974
Commercial Security Bank, Ogden, Utah ("C o m m e rcia l"), a State non
member insured bank w ith total resources o f $225,401,000 and IPC deposits
of $139,771,000 has applied, pursuant to Section 18(c) and other provisions o f
the Federal Deposit Insurance A ct, fo r the C orporation's p rio r consent to
purchase the assets of, and assume lia b ility to pay deposits made in, Orem
State Bank, Orem, Utah ("O rem B a n k"), which has total resources o f
$11,126,000 and IPC deposits o f $8,405,000. The sole office o f Orem Bank
w ould be operated as a branch of Commercial, increasing the number o f its
offices to 13.
Competition. Commercial operates a total of 12 offices: 3 in Ogden and 1 in
South Ogden, in Weber C ounty; 4 in Salt Lake C ity, 1 in Midvale, and 1 in
Murray, all in Salt Lake C ounty; 1 in the to w n o f Grantsville and 1 in the tow n
o f Tooele, both in Tooele C ounty. Orem Bank, w hich was organized in 1957,
operates its only office in the c ity o f Orem in Utah C ounty.
The c ity o f Orem (1970 population 25,729, an increase o f 39.9 percent over
the 1960 population) is located about 6 miles northwest of Provo (1970 popu
74
F E D E R A L DEPOSIT INSURANCE CO RPO RATIO N
lation 53,131) and about 40 miles southeast o f Salt Lake C ity. Orem is an
increasingly im p o rta n t commercial center, and a very large regional shopping
center which was recently opened there is attracting a substantial po rtio n o f
the area's residents w ho fo rm e rly drove to Salt Lake C ity to shop. The largest
industrial em ployer is a steel m ill which employs about 5,000 persons. H ow
ever, the Provo-Orem SMSA, which consists of Utah C ounty (1970 population
137,776, an increase o f 28.8 percent since 1960), has a level of household
median income approxim ately 13 percent below the State average.
Orem Bank's m arket is considered to be all of Utah C ounty. There are 11
commercial banks operating 24 offices in Utah C ounty and Orem Bank is the
eighth largest, holding 3.8 percent o f the market's total commercial bank IPC
deposits. The 4 largest banks represented there hold 74.9 percent o f such
deposits and operate 17 offices. Commercial is not a co m p e tito r in this market
since it has no office in Utah C ounty, and its o ffice nearest to Orem is in
Murray, 33 miles northwest. A ccordingly, no significant existing com petition
between the tw o banks would be eliminated by the proposed transaction.
Orem Bank may legally branch de novo into Salt Lake C ity b u t this possib lity is considered u n likely in view of the distance involved, its relatively small
size, and the number o f much larger banking organizations which already com
pete there. Orem Bank may not branch de novo into Ogden, where Commercial
is headquartered, nor could Commercial branch de novo into Orem, where
Orem Bank and Wasatch Bank are headquartered. Both Commercial and Orem
Bank have pending applications, however, to establish de novo branches in
Provo, about 6 miles south o f Orem. Thus, assuming both branches are ap
proved, the consummation proposal w ould foreclose a potential fo r increased
com petition between the tw o banks in the local market in the future. However,
in view o f the larger banks already represented in Utah C ounty and the small
share o f the market presently held by Orem Bank or likely to be developed in
these tw o new branches, the proposed acquisition should have no substantial or
significant effect on the commercial bank structure o f the county in the fo re
seeable future.
Commercial banking in the State o f Utah is concentrated in its three largest
banking organizations, w hich held 60.6 percent o f the total deposits held by all
insured commercial banks in the State. The largest share of such deposits is
held by First Security C orporation, Salt Lake C ity, w ith 29.4 percent. The
next tw o largest organizations hold 17.0 percent and 14.2 percent. Commercial
is the fo u rth largest commercial bank in the State w ith 6.9 percent o f such
deposits and Orem Bank holds only 0.4 percent. A fte r consummation of this
proposal, the resulting bank w ould still be much smaller than the three largest
organizations w ith only 7.3 percent o f total deposits. The commercial bank
structure of the State w ould obviously remain virtu a lly unchanged.
Under the circumstances, the Board o f Directors is o f the opinion th a t the
proposed transaction w ould not, in any section o f the country, substantially
lessen com petition, tend to create a m onopoly, or in any other manner be in
restraint o f trade.
Financial and Managerial Resources; Future Prospects. Commercial has satis
fa cto ry financial and managerial resources, as w ould the resulting bank. Future
prospects fo r the resulting bank are favorable.
Convenience and Needs o f the Community to be Served. This proposed
transaction w ould n o t have any perceptible effect in areas where Commercial
BA N K ABSORPTIONS APPROVED BY THE CORPORATION
75
presently does business. Customers o f Orem Bank, however, w ould benefit
from the w ider range of commercial bank services th a t w ould be offered by the
resulting bank, including tru st services, residential mortgage loans, credit card
services, and com puter services. In addition, the present lending lim it o f Orem
Bank, $45,000, w ould be increased to over $2,000,000. While sim ilar services
are now offered by other commercial bank offices in the Orem area, con
summation o f this proposed transaction should stimulate co m petition in Utah
C ounty by providing an alternative source fo r such services.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.
Old Stone
Trust Company
B a n k in g O ffic e s
R esources
(in
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
103,301
31
688,459
31
T o be
o p e ra te d
31
Providence, Rhode Island
(change title to Old Stone Bank)
to acquire the assets and assume
the deposit liabilities o f
Old Stone Savings
Bank
Providence
Summary report by A tto rn e y General, October 15, 1973
In view o f the longstanding control o f Trust Company by Savings Bank, it
does not appear th a t the transaction w ould eliminate any significant com peti
tion between them . The e ffect o f the transaction is to convert Savings Bank to
a commercial bank. Commercial banking in Rhode Island is dominated by tw o
Providence banks, Industrial National Bank and Rhode Island Hospital T rust
National Bank. The resulting bank could offe r significant new co m petition to
these leaders.
Basis fo r Corporation approval, May 15, 1974
Old Stone T rust Company, Providence, Rhode Island ("T ru s t C om pany"), a
State nonmember insured bank w ith total resources o f $103,301,000 and total
IPC deposits o f $58,050,000, has applied, pursuant to Section 18(c) and other
provisions o f the Federal Deposit Insurance A ct, fo r the C orporation's prio r
consent to acquire the assets of, and assume the lia b ility to pay deposits made
in, Old Stone Savings Bank, Providence, Rhode Island ("Savings B a n k"), an
insured mutual savings bank w ith total resources of $688,459,000 and total
IPC deposits o f $621,856,000, under Trust Company's charter and w ith the
title , "O ld Stone B ank." Both banks presently operate in shared quarters at 31
locations and the resulting bank w ould continue to operate from these same
locations.
Competition. The State o f Rhode Island had a 1970 population o f 949,723,
76
F E D E R A L DEPOSIT INSURANCE CORPORATION
an increase of 10.5 percent over 1960's 859,488. A lthough 1972 household
median income fo r the State was $8,946 (the national figure was $8,605), the
State's econom y is not dynam ic and it faces uncertain prospects fo r future
development clue, in large measure, to planned curtailm ents in the operations
o f the United States Navy, the State's largest single employer. E fforts are under
way to attract new industry and business to the State and the economic o u t
look depends largely on the success o f such efforts.
There is no com petition whatever between the tw o banks. Trust Company
and Savings Bank share common quarters at their Providence main office and
at each o f their 30 branches located thro u g h o u t Rhode Island. Trust Company
is w h o lly owned by Old Stone Corporation, a one-bank holding compnay
which is in turn w h o lly owned by Savings Bank. Both banks also share the
same management. Each bank offers banking services appropriate to its respec
tive charter at all locations, b u t the combined operation presents a single face
to the public w ith o u t d istin ctio n as to which bank w ill actually supply the
services. The proposed transaction is therefore, in essence, an internal reorgani
zation, the principal result o f which w ould be the conversion o f Savings Bank
into a commercial bank. Furtherm ore, unlike the situation in other States
which have acted to end dire cto r and o ffice r interlocks between commercial
banks and mutual savings banks, there appears to be little support fo r such a
pro h ib itio n in Rhode Island, which has nine other a ffiliated groups sim ilar to
Old Stone. W ith o u t such a legislative mandate in Rhode Island to disaffiliate,
the tw o banks are not like ly to be com petitors in the future. In short, the
proposed transaction w ould not eliminate any existing com petition or any
significant potential fo r fu tu re com petition between Trust Company and Sav
ings Bank.
The resulting bank w ould hold approxim ately 16 percent of the total IPC
deposits in Rhode Island held by all financial organizations which o ffe r fu ll
service banking under one roof, the same aggregate percentage now held by
Trust Company and Savings Bank as separate institutions. The difference
would be th a t all o f the assets and all o f the deposits w ould be held under a
commercial bank charter, thereby providing the resulting bank w ith the fin a n
cial resources to compete more effectively than Trust Company alone w ith the
State's tw o largest commercial banks, the $ 1 .4-billion-deposit Industrial Na
tional Bank of Rhode Island and the $658-m illion-deposit Rhode Island Hos
pital Trust National Bank, fo r commercial and industrial loans and fo r w hole
sale banking business generally. This should intensify the com petition in Rhode
Island fo r the business customer w ith o u t adversely affecting the present com
petition fo r th r ift in s titu tio n services.
Under the circumstances, the Board o f Directors is o f the opinion th a t the
proposed transaction w ould not, in any section o f the country, substantially
lessen com petition, tend to create a m onopoly, or in any other manner be in
restraint o f trade.
Financial and Managerial Resources; Future Prospects. T rust Company
and Savings Bank have satisfactory financial and managerial resources and satis
factory fu tu re prospects, as w ould the resulting bank.
Convenience and Needs o f the Community to be Served. Savings Bank
presently pays less on regular passbook deposits and on tim e deposits than the
ceiling rates authorized by Federal regulation fo r mutual savings banks. Since
the rates now being paid fall w ith in the ceiling rates authorized fo r commercial
B A N K ABSORPTIONS APPROVED BY TH E CORPORATION
77
banks, depositors of Savings Bank w ill experience no change in rate after the
proposed transaction takes place. A ll services presently offered by either T rust
Company or Savings Bank w ill be continued by the resulting bank at all present
locations, w hile a higher lending lim it ($3 m illio n as compared w ith $1 m illio n )
w ill be available fo r commercial and industrial loans. Under the circumstances,
the proposed consolidation should not change significantly the public con
venience and needs now being served by either Savings Bank or Trust Company
separately. What changes there are may benefit certain commercial loan cus
tomers and this weighs in favor o f approval.
The Board o f Directors has carefully considered the several submissions o f
the National Association o f Mutual Savings Banks opposing the proposed trans
action and urging the Corporation to deny the instant application. B riefly
stated, the Association opposes any consolidation in which some or all o f the
surplus funds accumulated by Savings Bank over the years are distributed to
persons w ho are Savings Bank depositors as o f a specified record date, since the
distrib u tio n results in a " w in d fa ll" return, either in cash or Old Stone Corpora
tion stock, which was never anticipated at the tim e o f deposit. The proposed
d istrib u tio n , however, conform s w ith Rhode Island law, has received all neces
sary State approvals, and has w ith sto o d judicial scrutiny in litigation in the
State courts o f Rhode Island. It appears, moreover, not to violate any existing
FDIC regulation, including specifically Part 329 o f the C orporation's regula
tions which establishes the m axim um rates o f interest which may be paid on
deposits held at mutual savings banks. Furtherm ore, since both Trust Company
and Savings Bank are insured by the C orporation at the present tim e, the
proposed consolidation under Trust Company's charter w ould have no im pact
whatever on the C orporation's deposit insurance fund.
In the absence o f any e x p lic it authorization or direction from the Congress to
consider the " w in d fa ll" aspect o f the proposed transaction, the Board o f Direc
tors believes th a t fairness to the applicants requires it to fo llo w past precedents
in w hich, after finding th a t normal Bank Merger A c t standards had been met,
mutual savings banks have been allowed to consolidate w ith a ffiliated com
mercial banks despite the d istrib u tio n o f accumulated surplus to depositors o f
the mutual savings bank involved. See, e.g., the C orporation's approval o f the
acquisition by The Manchester Trust Company o f Manchester, New Hampshire,
o f the assets and the deposit liabilities o f Manchester Savings Bank, 1970 FDIC
Annual Report, page 88, and the C orporation's approval o f the acquisition by
Berlin C ity Bank o f the assets and the deposit liabilities o f C ity Savings Bank o f
Berlin, Berlin, New Hampshire, 1974 FDIC O pinion B-2 (decided January 29,
1974). The Board o f Directors notes fu rth e r th a t the "conversion" o f mutual
savings banks to commercial bank status, either d ire ctly or by merger, consoli
dation or sale o f assets and liabilities, appears to be authorized in at least 9 o f
the 17 States where such banks exist, regardless o f any resulting d is trib u tio n o f
accumulated surplus to depositors o f record on a particular date.
Under all the circumstances, the Board o f Directors believes it inappropriate
fo r the C orporation to assert an overriding Federal interest in preventing such
conversions where Congress itself has been silent on the subject and has not
included mutual savings banks in the m oratorium on such conversions pres
ently applicable to federally insured savings and loan associations.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.
78
F E D E R A L DEPOSIT INSURANCE CO RPO RATIO N
Home Savings Bank of Upstate New York
R esources
(in
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
T o be
o p e ra te d
178,749
7
8
10,933
1
B a n k in g O ffic e s
Albany, New Y o rk
to merge with
Hudson Savings and Loan Association
Hudson
Summary report by A tto rn e y General, February 19, 1974
Hudson Savings' office in Hudson (population 8,900) is located about 20
miles south of Home Savings' nearest office. Thus, it appears th a t the proposed
transaction would n o t elim inate substantial existing co m p e titio n . And in view
o f the small absolute size o f Hudson Savings, we conclude th a t the proposed
merger w ill not elim inate substantial potential com petition.
Basis fo r C orporation approval, May 29, 1974
Home Savings Bank o f Upstate New Y o rk , A lbany, New Y o rk ("H om e
S a v in g s " ) , an insured mutual savings bank w ith total resources o f
$178,749,000 and to ta l deposits o f $167,295,000, has applied, pursuant to
Section 18(c) and other provisions o f the Federal Deposit Insurance A c t, fo r
the C orporation's prior consent to merge w ith Hudson Savings and Loan Asso
ciation, Hudson, New Y o rk (" S & L "), a federally insured, State-chartered sav
ings and loan association w ith total resources o f $10,933,000 and to ta l de
posits o f $9,412,000. The institutions w ould merge under the charter and title
of Home Savings and, as an incident to the merger, the sole o ffice o f S &L
w ould become a branch o f the resulting bank, increasing to eight the number
o f its offices.
Competition. Home Savings operates a total o f seven offices: its main office
and one branch in the c ity o f Albany, one branch each in the suburban towns
o f Colonie arid Guilderland, tw o branches in Washington C ounty and one
branch in Rensselaer C ounty. The bank acquired the three latter branches
during 1971 and 1974 by merging three State-chartered savings and loan asso
ciations. Under present law, Home Savings may acquire by merger any number
o f branches th ro u g h o u t the Fourth Banking D istrict, a 15-county region in
northeastern New Y o rk State, b u t it may establish de novo branches w ith in the
d istrict at the rate o f only one such branch each year. Commencing January 1,
1976, mutual savings banks w ill be perm itted to branch statewide subject to
the continuing lim ita tio n o f one de novo branch each year.
S & L maintains its only office in Hudson, Columbia C ounty, New Y o rk. Its
prim ary service area comprises th a t section o f central-western Columbia C oun
ty lying east of the Hudson River w ith in 15 miles o f Hudson. This is a
residential and industrial area whose estimated population increased some 5.8
percent during the 1960s to 37,800. The 1972 median household buying level
in Columbia C ounty ($8,407) was 10.8 percent below th a t o f the State as a
whole. S &L had approxim ately 8 percent o f the deposits held on June 30,
1973, by the th r if t in s titu tio n offices in this market. The Hudson C ity Savings
In stitu tio n , the eighth largest mutual th r ift in s titu tio n in the Fourth Banking
D istrict, has its main office and tw o branches in S&L's local market, the o n ly
other th r ift in s titu tio n offices in this market.
79
B A N K ABSORPTIONS APPROVED BY THE CORPO RATIO N
S&L's office is located some 40 road-miles south of the main office o f
Home Savings, its closest to S&L. There are reported to be a few depositors
and no borrowers common to both institutions and th e ir service areas do not
overlap to any appreciable extent. Because o f lim ited financial and managerial
resources, S &L w ould fin d unfeasible the establishment o f de novo branches in
Home Savings' present market, w hile the latter, lim ited by law to one de novo
branch a year, w ould fin d other locations both in the Fourth Banking D istrict
and, after 1975, in other parts o f the State more attractive fo r de novo ex
pansion than S &L's present market, w ith its below average buying levels and no
substantial population grow th during recent years. It is thus indicated th a t
neither com petition existing between the tw o institutions nor a significant
potential fo r increased com petition between them in the fu tu re through de
novo branching w ould be elim inated by their proposed merger.
Home Savings is the sixth largest mutual th r if t in s titu tio n in the Fourth
Banking D istrict, w ith approxim ately 6.1 percent o f the deposits held by all
offices o f such institutions in the d istrict. S&L holds 0.3 percent o f such
deposits.
The Board o f Directors is o f the opinion th a t the proposed merger w ould
not, in any section o f the co u n try, substantially lessen com p e titio n , tend to
create a m onopoly, or in any other manner be in restraint o f trade.
Financial and Managerial Resources; Future Prospects. Financial and man
agerial resources o f each in s titu tio n are satisfactory, as w ould be those o f the
resulting bank. Its future prospects appear to be favorable.
Convenience and Needs o f the Community to he Served. The proposed
merger w ould introduce day-of-deposit-to-day-of-withdrawal accounts, Savings
Bank Life Insurance, Series E bonds, and travelers checks at the S &L location.
The resulting bank, operating under a more liberal lending p olicy and w ith a
greatly expanded lending capability, should provide more effective com petition
in the area o f real estate financing to the other savings bank and commercial
banks in S&L's local market.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.
The Chartered Bank of London
R esources
( in
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
T o be
o p e ra te d
59,385
3
14
101,379
11
B a n k in g O ffic e s
San Francisco, California
to merge with
Liberty National Bank
San Francisco
Summary report by A tto rn e y General, February 19, 1974
Chartered Bank is headquartered in San Francisco, where L ib e rty Bank also
maintains its main o ffice and five branch offices. Thus, the proposed merger
80
F E D E R A L DEPOSIT INSURANCE CO RPO RATIO N
w ill eliminate some existing com petition between the parties in the San Fran
cisco area. However, it does not appear th at the proposed transaction w ill
result in any substantial increase in banking concentration in th a t area.
We conclude th a t the proposed merger w ould not have a substantial com
petitive impact.
Basis fo r C orporation approval, May 31, 1974
The Chartered Bank o f London, San Francisco, California ("Chartered
B a n k " ) , a State nonmember insured bank having to ta l resources o f
$59,385,000 and total IPC deposits o f $39,281,000, has applied, pursuant to
Section 18(c) and other provisions of the Federal Deposit Insurance A ct, fo r
the C orporation's p rio r consent to merge w ith L ib e rty National Bank, San
Francisco, California ("L ib e rty N a tio n a l"), which has total resources o f
$101,379,000 and to ta l IPC deposits o f $85,531,000. The banks would merge
under the charter and title o f Chartered Bank. As an incident to the trans
action, the 11 existing offices and 1 approved b u t unopened office of L iberty
National would become branches o f the resulting bank, increasing the number
of its offices to 15.
Competition. Chartered Bank operates its main office in San Francisco, a
branch in Oakland about 10 miles east o f the main o ffice, and a branch in Los
Angeles about 400 miles south o f San Francisco. In the past, Chartered Bank,
which is a ffil ated w ith a major British bank, has emphasized international
trade, and its three offices were established convenient to large and im portant
p o rt facilities. San Francisco (1970 population 715,674) is the economic and
administrative center o f the San Francisco-Oakland M etropolitan Area and o f
Northern California. Commercial a ctivity includes finance, insurance, real es
tate, wholesale and retail sales, and shipping.
Liberty National's main office is also in San Francisco, where it operates a
total o f five offices and holds 0.4 percent o f the area's to ta l IPC deposits. One
branch is in Los A ltos, about 35 miles south o f San Francisco in Santa Clara
C ounty, and five branches are operated in San Diego C ounty in the southern
part o f the State. In addition to its 11 existing offices, L iberty National has an
approved but jnopened branch in San Bruno, about 12 miles fro m San Fran
cisco in San Mateo County. Neither of the merging banks has a significant
m arket share in any local banking market it serves.
The proposed merger w ould have its most immediate and direct effect in
San Francisco, which is the only area where the tw o banks involved compete
directly to any degree. W ithin this area a total o f 24 banks operate 189 offices
and hold total IPC deposits o f $8,941,221,000. Chartered Bank and Lib e rty
National have a very m inor share o f these deposits, holding only 0.3 percent
and 0.4 percent, respectively. Even though their head offices are located less
than fo u r blocks apart in the financial d is tric t o f the city, there are numerous
banking offices between them, including head offices o f three o f the fo u r
largest banks in the State. Records of the tw o banks indicate no common loan
customers and only 33 common deposit accounts totaling about $100,000.
Liberty National has always emphasized retail lending, and 82 percent o f its
loan account consists o f real estate and consumer loans. Chartered Bank's loan
p o rtfo lio consists prim a rily of commercial credits generated by its international
department. In view o f the foregoing, it appears that the proposed merger
would eliminate no significant existing com petition between the tw o banks.
BA N K ABSORPTIONS APPROVED BY THE CORPO RATIO N
81
C alifornia law permits statewide de novo branching, b u t in view o f Char
tered Bank's lack of experience in retail banking and its emphasis on in te r
national financing, the possibility th a t present management w ould consider de
novo branching into the service areas o f Lib e rty National appears remote.
Liberty National could also branch into the service areas o f Chartered Bank,
but because o f the cost involved, its low capital position, and the very com
petitive banking situation already existing in these market areas, it is con
sidered unlike ly th a t it w ould consider such central-city expansion in the fo re
seeable fu ture. While the proposed merger w ould foreclose some eventual
possibility o f increased com petition between the tw o banks in the fu tu re , no
com petitive significance can be attached to th a t result in view of the small
m arket shares involved and the vigorous com petition the resulting bank w ould
face even if the proposed merger is consummated.
Commercial banking in the State o f California is highly concentrated w ith
the 10 largest banking organizations holding 87.4 percent o f all commercial
bank IPC deposits. A fte r consumm ation o f this proposed merger, the resulting
bank w ould hold only 0.2 percent o f such deposits.
Based on the foregoing, the Board o f Directors has concluded th a t the
proposed merger w ould not, in any section o f the country, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
o f trade.
Financial and Managerial Resources; Future Prospects. L ib e rty National's
capital is low , bu t both banks have satisfactory managerial resources fo r the
business they presently conduct. Financial and managerial resources of the
resulting bank w ould be acceptable and its future prospects appear favorable.
Convenience and Needs o f the Community to be Served. Consummation o f
the proposed merger w ould result in a larger commercial bank w ith higher
lending lim its and expanded services to o ffe r to present customers o f both
banks. Lib erty National customers w ould benefit from the e x p o rt-im p o rt
financing and diverse commercial lending services which the resulting bank
w ould offer, w hile customers o f Chartered Bank w ould have more convenient
access to the usual retail services and to trust services.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.
Citizens and Southern Bank of Dublin
B a n k in g O ffic e s
R esources
(in
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
T o be
o p e ra te d
42,372
2
3
2,982
1
D ublin, Georgia
to purchase the assets an d assume
the deposit liabilities o f
The Rentz Banking Company
Rentz
Summary report by A tto rn e y General, January 11, 1974
Both banks are located in Laurens C ounty, b u t are separated fro m each
other by about 12 miles. No other banking offices are located in the in te r
vening area. Both banks draw some business fro m the areas prim arily served by
82
F E D E R A L DEPOSIT INSURANCE CO RPORATION
the other. Duolin Bank derives a relatively small pro p o rtio n o f its deposits and
loans from Rentz Bank's prim ary service area, but such deposits and loans
equal approxim ately 40 percent o f Rentz Bank's total deposits and loans.
Thus, there is some com petition between the tw o banks which w ould be e lim i
nated by the merger.
Seven commercial banks operate in Laurens C ounty. Dublin Bank is the
largest of the seven, holding 42 percent o f total county deposits. Rentz Bank is
the fifth largest, holding 3.7 percent. Thus, Dublin Bank's already large share
of county deposits w ould increase to 45.7 percent as a result o f the merger. We
conclude that the proposed transaction w ould have at least some adverse com
petitive effect
Basis fo r C orporation approval, May 31, 1974
Citizens and Southern Bank o f D ublin, Dublin, Georgia ("C &S D u b lin "), an
insured State nonmember bank w ith to ta l assets o f $42,372,000 and IPC de
posits of $27,665,000, has applied, pursuant to Section 18(c) and other p ro
visions o f the Federal Deposit Insurance A ct, fo r the C orporation's prior con
sent to purchase the assets of, and assume the lia b ility to pay deposits made in,
The Rentz Banking Company, Rentz, Georgia ("R entz B ank"), having total
assets o f $2,982,000 and IPC deposits o f $2,382,000. As an incident to the
transaction, C&S D ublin w ould operate the sole office o f Rentz Bank as a
branch, thereby increasing to three the number o f its offices.
Competition. C&S D ublin presently operates its main office in Dublin and
one branch in East D ublin, both of which are located in Laurens C ounty,
Georgia. Dublin, the county seat, is located in the north-central part of the
county and is the center o f commercial and industrial a ctivity fo r the county,
which is becoming less dependent upon agriculture. Because o f this, the local
banking m arket in w hich C&S Dublin operates may be viewed as all o f Laurens
C ounty. Laurens C ounty in 1970 had a population o f 32,738, w ith only slight
growth reported over its 1960 population. In 1972, the median household
income fo r Laurens C ounty was $5,399, about 30 percent below the com
parable figure ($7,646) fo r the State as a whole.
Rentz Bank has its sole office in Rentz, a small tow n o f 392 persons, also in
Laurens C ounty, about 12 miles southwest of Dublin. There are only a few
commercial establishments located in Rentz and the economy of the surround
ing area is based p rim a rily on agriculture-related activities. There is no common
ownership or management between C&S Dublin and Rentz Bank.
There are 7 banks operating 10 offices in this sparsely populated, lowincome county. Total commercial bank IPC deposits totaled slightly over $60
m illion as o f June 30, 1973. C&S Dublin is the largest o f these local banks
while Rentz Bank is one of the three smallest. A lthough some existing com peti
tion between the tw o banks w ould be elim inated by their proposed merger, the
dollar amounts are not substantial. Moreover, the addition o f Rentz Bank's
deposits and loans to C&S D ublin's totals w ould constitute a de minimis addi
tion to existing concentration levels in Laurens C ounty and w ould n o t percep
tib ly a ffect the commercial bank structure o f the market, particularly in view
of Rentz Bank's conservative management policies and its less than vigorous
stance as a com petitor (total loans at Rentz Bank, exclusive o f Federal funds
sold, are less than 40 percent of assets, and the in s titu tio n does n o t o ffe r
passbook savings accounts). Five banks in any event w ould continue to be
BA N K ABSORPTIONS APPROVED BY THE CORPORATION
83
available as alternative sources o f banking services if customers of the resulting
bank found themselves dissatisfied fo r any reason.
Furtherm ore, the proposed merger should not eliminate any significant
potential fo r increased com petition between C&S Dublin and Rentz Bank
through de novo branching. C&S Dublin clearly has de novo branching capabil
ities, but Laurens C ounty is no t an attractive market fo r this type of expansion
in view o f its relatively static population, low income levels, and the existing
number o f commercial bank offices (one fo r each 3,274 people). Rentz Bank,
w ith lim ited resources, aging management, and 60 years experience as a u n it
bank, is most unlike ly to undertake any such expansion.
Citizens and Southern Holding Company, Savannah, Georgia, owns 93.6
percent o f the outstanding stock o f C&S D ublin. The holding company, in
turn, is 100 percent owned by The Citizens and Southern National Bank,
Savannah, w hich controls nine banks w ith deposits totaling $2,132,242,000.
This represents 20.3 percent o f the total commercial bank deposits fo r the
State, and makes The Citizens and Southern National Bank the largest banking
organization in the State. Consummation o f the proposed merger w ould con
stitute a de minimis change in these figures.
Under the circumstances here presented, where realistic merger alternatives
are lim ited by the State o f Georgia's countyw ide branching laws, the Board o f
Directors is o f the opinion that the proposed merger w ould not, in either
Laurens C ounty or the State o f Georgia, substantially lessen co m p e titio n , tend
to create a m onopoly, or in any other manner be in restraint o f trade.
Financial and Managerial Resources; Future Prospects. Both o f the p a rtic i
pating banks have adequate financial and managerial resources, although Rentz
Bank has a management succession problem since its tw o senior officers are o f
advanced age and have indicated a desire to retire. A merger w ith C&S Dublin
w ould solve tha t problem. Future prospects fo r the resulting bank w ould be
favorable.
Convenience and Needs o f the Community to be Served. The proposed
merger w ould have little effect on the Dublin area, bu t present customers o f
Rentz Bank w ould have access to a variety o f services o f The Citizens and
Southern National Bank, w hich are available to customers o f all a ffilia te banks.
Services offered w hich are not presently available to customers o f Rentz Bank
include tru st services, passbook savings accounts, and safe deposit services. The
resulting bank should also be more w illin g to undertake residential mortgage
lending and installm ent loan services.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the proposed merger is warranted.
Bank of Mississippi
R esources
(in
th o u s a n d s
o f d o lla rs )
B a n k in g O ffic e s
In
o p e r a tio n
164,336
23
14,636
2
Tupelo, Mississippi
to merge with
Grenada Trust and Banking Company
Grenada
T o be
o p e ra te d
25
84
F E D E R A L DEPOSIT INSURANCE CO RPORATION
Summary report by A tto rn e y General, May 6, 1974
The nearest offices o f the parties are approxim ately 40 miles apart. There
fore, it does riot appear th a t the proposed merger w ould elim inate substantial
existing com petition.
Bank of Mississippi is the largest bank which may branch de novo into
Grenada. (Mississippi law perm its commercial banks to branch de novo w ith in a
100-mile radius o f the headquarters office.) Grenada Trust, the smaller o f tw o
banks presently operating in Grenada C ounty, holds approxim ately 27 percent
o f total coun:y deposits. Thus, the proposed merger may eliminate some po
tential com petition between the parties. However, the relatively small absolute
size o f Grenada T rust and the existence o f other potential entrants somewhat
dim inish the effect on potential com petition.
Basis fo r C orporation approval, May 31, 1974
Bank o f Mississippi, Tupelo, Mississippi, an insured State nonmember bank
w ith to ta l resources of $164,336,000 and IPC deposits o f $127,762,000, has
applied, pursuant to Section 18(c) and other provisions o f the Federal Deposit
Insurance A ct, fo r the C orporation's p rio r consent to merge under its charter
and title w ith Grenada T rust and Banking Company, Grenada, Mississippi
("Grenada T ru s t"), w hich has total resources o f $14,636,000 and IPC deposits
o f $12,300,000. As an incident to the merger, Bank o f Mississippi w ould
operate the 2 offices o f Grenada Trust as branches, thereby increasing the
number o f its offices to 25.
Competition. Bank o f Mississippi operates offices in nine counties o f n o rth
eastern Mississippi. It derives a significant am ount o f business fro m these coun
ties and from Union C ounty as well. These 10 counties comprise the bank's
prim ary trade area. The economy of this region, historically agricultural, has
become fa irly well balanced between agriculture and light industry during the
past decade. The population o f these 10 counties increased during the 1960s
by 9.3 percent and now totals 239,783— comparing favorably w ith the 1.8
percent population increase o f the State as a whole. Bank of Mississippi pres
ently has no office in Grenada C ounty.
Grenada Trust has its tw o offices in Grenada (population 9,944), the county
seat and trading center o f Grenada C ounty (1970 population 19,854— up 7.8
percent from 1960). Grenada C ounty is largely an agricultural section o f
north-central Mississippi, although Grenada c ity contains a significant am ount
o f industry. This county adjoins Calhoun C ounty, a p o rtio n o f Bank o f Missis
sippi's prim ary trade area.
The area in which the com petitive effects o f the proposed merger w ould be
most immediate and direct is basically Grenada C ounty. Tw o commercial
banks presently operate offices in the county. The $165.9-m illion Grenada
Bank, th ird largest bank in the State, maintains tw o offices in the c ity o f
Grenada and holds tw o-thirds o f the market's IPC deposits. Grenada T rust
holds the balance o f such deposits in its tw o offices. The respective m arket
shares held by these tw o banks are likely to change in the near fu tu re upon the
entry of a th ird co m petitor in to the market. The $ 52.2-m illion Peoples Bank o f
Mississippi, N .A., Union, recently received the necessary approvals to open a de
novo branch in the c ity o f Grenada.
Bank o f Mississippi's office nearest to Grenada T rust is in Vardaman, Cal
houn C ounty, about 37 road-miles to the east. The banks operate in separate
B A N K ABSORPTIONS APPROVED BY TH E CORPO RATIO N
85
trade areas and there is no significant existing co m p e titio n w hich the proposed
merger w ould eliminate.
There appears to be no significant potential fo r increased com petition be
tween the tw o banks in the fu tu re through de novo branching if this proposed
transaction is n ot consummated. Grenada Trust, in operation fo r more than 70
years, has its only branch in close p ro x im ity to its main o ffice and w ould be
unlikely to enter de novo the m arket o f Bank o f Mississippi because o f its
lim ited financial and managerial resources, the distances involved, and the com
petition it w ould encounter. A lthough Bank o f Mississippi may legally establish
de novo offices in Grenada C ounty and clearly has the capacity to do so, it is
unlike ly to fin d such entry particularly attractive in view o f the recent approval
of a th ird bank and a fifth office in th a t market. Further, there are a number o f
other potential entrants if the market becomes attractive fo r additional bank
ing offices.
In its m aximum potential m arket under State law— an area w ith in a 100-mile
radius o f Tupelo— Bank o f Mississippi controls 11.1 percent o f aggregate IPC
deposits held on June 30, 1973, by all offices o f the 71 commercial banks
presently represented therein. The proposed merger would increase this share
to 12.2 percent. Statewide, Bank o f Mississippi holds 3.0 percent o f aggregate
commercial bank IPC deposits. The resulting bank w ould hold 3.2 percent o f
such deposits. The proposed merger, in view o f this data, appears u n lik e ly to
affect adversely the structure o f commercial bank com petition in any relevant
market.
Based on the foregoing, the Board o f Directors has concluded th a t the
proposed merger between Bank o f Mississippi and Grenada Trust w ould not, in
any section o f the co u n try, substantially lessen com petition, tend to create a
m onopoly, or in any other manner be in restraint o f trade.
Financial and Managerial Resources; Future Prospects. Both parties to the
proposed merger have adequate financial and managerial resources, as w ould
the resulting bank. Future prospects appear favorable fo r the resulting bank.
Convenience and Needs o f the Community to be Served. The merger w ould
provide Grenada C ounty w ith the fu ll services o f one o f the State's major
commercial banks. A n aggressive management operating w ith a lending lim it in
excess o f $1 m illio n should stim ulate co m petition in this market. The resulting
bank w ould o ffe r trust, data processing, and investment services fo r the firs t
tim e at the Grenada Trust locations, and w ould provide a convenient alter
native source fo r such services in the market.
The Board o f Directors, accordingly, has concluded th a t approval o f the
application is warranted.
R esources
( in
th o u s a n d s
o f d o lla rs )
City Bank
B a n k in g O ffic e s
In
o p e r a tio n
28,959
1
22,488
1
St. Louis, Missouri
to acquire the assets and assume
the deposit liabilities o f
Central West End Bank
St. Louis
T o be
o p e ra te d
2
86
F E D E R A L DEPOSIT INSURANCE CORPORATION
Summary report by A tto rn e y General, March 7, 1974
C ity Bank and Central Bank are situated about one-half mile apart in the
western area o f the city o f St. Louis. The proposed transaction, therefore, w ill
eliminate existing com petition between the parties. However, it does not ap
pear that the proposed transaction w ill substantially increase concentration in
commercial banking in any relevant geographic market.
Basis fo r C orporation approval, May 31, 1974
C ity Bank, St. Louis, Missouri, a State nonmember insured bank w ith total
resources of $28,959,000 and total IPC deposits o f $21,543,000, has applied,
pursuant to Section 18(c) and other provisions o f the Federal Deposit Insur
ance A ct, fo r the C orporation's prio r w ritte n consent to acquire the assets o f,
and assume the lia b ility to pay deposits made in, Central West End Bank, St.
Louis, Missouri ("C e n tra l"), a State member bank w ith total resources o f
$22,488,000 and total IPC deposits o f $15,977,000, under the charter and
w ith the title o f C ity Bank. The only office of Central w ould be operated as a
fa c ility of the resulting bank.
Competition. C ity Bank is a u n it bank located in the Central West End
section o f St. Louis. It is a ffilia te d through common ownership w ith the
$60.3-m illion-deposit American National Bank in St. Louis (5.2 miles south o f
C ity Bank) and the $36.1-m illion-deposit The Brentwood Bank, Brentwood,
Missouri (5 miles west o f C ity Bank). Central is also a u n it bank located in the
Central West End section o f St. Louis.
St. Louis c ty had a 1970 population of 622,236, w hich is a 17.0 percent
decline from 750,026 in 1960. St. Louis C ounty outside o f the c ity , however,
had a population increase o f 35.3 percent during the like period to 951,671.
The other counties in the St. Louis, M issouri-Illinois SMSA also experienced
significant population gains— ranging fro m 8.6 percent in St. Clair C ounty,
Illinois to 75.5 percent in St. Charles C ounty, Missouri. This out-m igration
from St. Louis c ity is largely attributable to spreading urban b light in many o f
its residential and commercial sections. The dow ntow n section o f the city
remains the financial center o f the m etropolitan area, however, and St. Louis
retains a diversified m anufacturing and industrial economy upon which many
residents o f St. Louis C ounty depend fo r em ploym ent. The 1972 median
household income fo r St. Louis city was $7,193 compared to $11,108 fo r St.
Louis C ounty and $7,664 fo r Missouri.
Although both C ity Bank and Central are in the Central West End section o f
St. Louis, the immediate area surrounding each is radically diffe re n t. In C ity
Bank's area, active com m unity associations representing relatively a fflu e n t
residents and the close p ro x im ity o f the Washington University Medical Center
have served to stabilize the area and stem the spread o f blight. Central, ho w
ever, is located in an area w hich is in an advanced state o f deterioration and
prospects fo r im provem ent are n o t favorable.
Central is situated about 0.5 mile north of C ity Bank and presently there
are no other banks located w ith in 1 mile o f either o f them . (The $39-m illiondeposit Mound C ity Trust Company has an approved b u t unopened fa c ility to
be located 0.4 mile south of C ity Bank.) The areas p rim a rily served by C ity
B A N K ABSORPTIONS APPROVED BY THE CORPORATION
87
Bank and Central appear to overlap, and the proposed transaction w ould e lim i
nate some existing com petition between them. This existing com petition is not
considered significant, however, in view of the relatively small size o f both
participating banks and of the resulting bank, the relatively small market shares
that Central and C ity Bank have in the c ity and county o f St. Louis banking
m arket (0.4 percent and 0.5 percent, respectively), and the presence o f numer
ous large banks in the m arket w hich are easily accessible by public transporta
tion and good roads.
The potential fo r increased com petition between C ity Bank and Central as a
result of de novo branching is m inim al. Missouri law permits only tw o detached
facilities, both o f which must be located w ith in the lim its o f the c ity in which
the main banking office is located. Further, the powers o f these facilities are
lim ited, principally by a p ro h ib itio n against extending credit. In view o f the
unattractiveness o f Central's area, it is u n like ly th a t C ity Bank, or any other
bank, w ould choose to locate a de novo fa c ility there. As far as Central is
concerned, there are indications that in the absence of acquisition o f Central
by another bank, the control owners probably w ould o p t fo r its voluntary
liquidation, which w ould leave the area w ith o u t a banking office. The proposed
transaction w ould therefore eliminate no significant potential com petition be
tween C ity Bank and Central.
In the c ity and county o f St. Louis there are 79 banks operating 118 offices
w ith aggregate bank deposits of $5,182 m illio n . The resulting bank's share (0.9
percent) in this market, combined w ith its tw o affiliates, w ould to ta l only 2.7
percent. By contrast, the largest banking organization in the market is a holding
company controllin g tw o banks w ith 18.3 percent of the commercial bank
deposits w hile the fo u r largest banking organizations have 45.8 percent of such
deposits.
If consideration were given to the position o f the resulting bank and its
affiliates in the entire St. Louis SMSA, these three banks w ould have an even
less significant 2.1 percent o f total commercial bank deposits. It is apparent
tha t the proposed transaction would have no significant effect on the structure
o f commercial banking in any relevant area.
Under these circumstances, the Board o f Directors is o f the opinion th a t the
proposed transaction w ould not, in any section o f the co untry, substantially
lessen com petition, tend to create a m onopoly, or in any other manner be in
restraint o f trade.
Financial and Managerial Resources; Future Prospects. The financial and
managerial structures o f C ity Bank and Central are largely com plem entary and
should serve to produce a stronger resulting bank whose future prospects
w ould be satisfactory.
Convenience and Needs o f the Community to be Served. Central's cus
tomers w ould benefit fro m the proposed transaction by an increase in the rate
o f interest paid on savings deposits fro m 3 percent to 4 percent. In addition, a
very conservatively operated bank w ould be replaced by an office of a more
aggressively operated in s titu tio n which has assisted in the past in upgrading the
area in which it is located. The proposed transaction w ould also keep open a
banking office which otherwise eventually would probably be closed, to the
d etrim ent o f the local neighborhood.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.
F E D E R A L DEPOSIT INSURANCE CO RPO RATIO N
88
R esources
(in
th o u s a n d s
o f d o lla rs )
The American Bank of Central Ohio
B a n k in g O ffic e s
In
o p e r a tio n
T o be
o p e ra te d
17,069
3
4
14,932
1
Harrisburg, Ohio
to acquire the assets and assume
the deposit liabilities o f
Citizens Savings and Loan Company
Columbus
Summary report by A tto rn e y General, May 30, 1973
The closest offices o f the parties to this transaction are about 7 miles apart.
The application indicates th a t American Bank plans to establish additional
offices in dow ntow n Columbus, where Citizens is located. A lthough the parties
may compete to a lim ited exte n t in the greater Columbus area fo r certain types
o f deposits and loans, th e ir m arket shares in any appropriate m arket w ould be
very small, anc no significant increase in concentration w ould occur as a result
of the proposed transaction.
We conclude th a t the proposed transaction w ould have no adverse com peti
tive effect.
Basis fo r C orporation approval, May 31, 1974
The American Bank o f Central Ohio, Harrisburg, Ohio ("A m e ric a n "), having
total resources of $17,069,000 and IPC deposits o f $12,912,000, has applied,
pursuant to Section 18(c) and other provisions o f the Federal Deposit Insur
ance A ct, fo r the C orporation's p rio r consent to acquire the assets of, and
assume the lia b ility to pay deposits made in, Citizens Savings and Loan Com
pany, Columbus, Ohio ("C itizens S & L "), a federally insured stock savings and
loan association having total resources o f $14,932,000 and IPC deposits o f
$13,594,000, under the charter and title o f American, and to establish the sole
office of Citizens as a branch of the resulting bank. Pursuant to Section 18(d)
of the Federal Deposit Insurance A ct, an application has also been filed fo r
consent fo r American to establish a branch in the IBM Building, Fourth and
Town Streets, Columbus, Ohio. If both proposals are approved, the resulting
bank w ould have a total of five authorized offices.
Competition. American operates its main office in Harrisburg, a small com
m unity o f 556 population about 15 miles southwest of dow ntow n Columbus,
the State capital. It has one branch w ith in the Columbus city lim its about 8
miles southwest o f d ow ntow n and one branch in Grove C ity about 10 miles
southwest o f the center c ity. Citizens S & L operates its only office in d ow n
tow n Columbus. A ll offices o f both institutions are in Franklin County.
Columbus ( T970 population 540,025, up 14.6 percent from 1960) is in
central Franklin C ounty (1970 population 833,288, up 22.0 percent from
1960), which is located in the approxim ate center o f the State. The area has a
diversified economy w ith heavy and light industry, service business, and State
and Federal offices. The Ohio State University also makes an im p o rta n t con
trib u tio n to the local economy. The 1972 median household income fo r
Columbus was $8,531 w hile the figure fo r Franklin C ounty was $9,200, com
pared to $9,094 fo r the State.
B A N K ABSORPTIONS APPROVED BY THE CORPORATION
89
There is no substantial com petition between Am erican and Citizens S & L at
the present tim e. Their closest offices are about 8 miles apart in the populous
city o f Columbus, and these locations are separated by numerous offices o f the
city's largest banks. In addition, American offers the usual commercial bank
loan services w hile Citizens S &L has almost all of its loans in residential m o rt
gages. While both institutions o ffe r such real estate loans, neither has more
than a nominal share o f the total o f such loans outstanding in Franklin C ounty.
In competing fo r deposits, Citizens S & L offers the higher ceiling rates per
m itted to savings and loan associations under Federal rate ceilings. The p ro
posed transaction w ould not elim inate any significant existing com petition
between American and Citizens S &L.
It is unlike ly th a t increased com p e titio n w ould develop between American
and Citizens S &L in the foreseeable future. A lthough American has pending an
application fo r a de novo branch in dow ntow n Columbus only a few blocks
from Citizens S & L, the overlap in loan and deposit services between the tw o
institutions is m inim al. Further, any potential co m petition w hich may be e lim i
nated by the proposed transaction is com petitively insignificant because o f the
dom inant positions o f the city's three largest commercial banks, w hich have
numerous offices thro u g h o u t the Columbus area, and the presence o f numer
ous large savings and loan associations, five o f w hich have more than $100
m illion each in deposits. Thus, fu lly adequate banking and th r ift in s titu tio n
alternatives w ould rem ain.*
The proposed transaction w ould have no discernible effect on the structure
o f commercial banking or th r if t in s titu tio n banking because each o f the p a rtic i
pating institutions is o f only nominal significance in its respective line o f
commerce in Franklin C ounty. As o f June 30, 1973, Am erican had o n ly 0.6
percent o f the total deposits held by all commercial banks in the cou n ty, w hile
the three dom inant banks had an aggregate o f 92.6 percent of such total
deposits. As o f March 31, 1973, Citizens S &L apparently held less than one
percent o f the tota l th r if t in s titu tio n deposits in Franklin C ounty.
Under the circumstances, the Board o f Directors is o f the opinion th a t the
proposed acquisition w ould not, in any section o f the country, substantially
lessen co m p etition , tend to create a m onopoly, or in any other manner be in
restraint o f trade.
Financial and Managerial Resources; Future Prospects. W ith the contem
plated addition o f $1,400,000 in new capital funds, American and the resulting
bank w ould have satisfactory financial and managerial resources and satis
factory fu tu re prospects.
Convenience and Needs o f the Community to be Served. The proposed
transaction in the context of the Columbus banking m arket w ould have little
im pact on public convenience and needs, given the relatively insignificant mar
ket shares held by each in stitu tio n . A somewhat larger commercial bank w ould
o ffer additional com petition, however, to the larger banks already represented
in the geographic m arket area.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of American's application to acquire the assets of, and to assume the lia b ility
* F o r p u rp o s e s o f assessing th e c o m p e t itiv e im p a c t o f th is p ro p o s a l u n d e r th e B a n k M e rg e r
A c t, th e B o a rd o f D ire c to rs has ig n o re d th e a c q u is itio n o f s to c k c o n t r o l o f C itiz e n s S & L
b y an a ssocia te o f A m e ric a n 's c o n t r o l o w n e rs in M a y 1 9 7 2 .
F E D E R A L DEPOSIT INSURANCE CO RPO RATIO N
90
to pay deposits in, Citizens S &L is warranted. In so acting, the Board o f
Directors expresses no opinion as to whether the May 1, 1972, acquisition by
an associate o f American's control owners o f stock control of Citizens S &L
w ith o u t the prior approval of the Federal Savings and Loan Insurance Corpora
tio n or the Board o f Governors o f the Federal Reserve System violated any
provision o f law applicable to such an acquisition.
The Board o f Directors has also reviewed separately Am erican's application
fo r the C orporation's consent to the establishment o f a branch office in the
IBM Building, Fourth and Town Streets, Columbus, has found favorably (w ith
the contem plated addition o f $1,400,000 in new capital funds) on each o f the
statutory factors required to be considered, and hereby grants the requested
consent.
Commonwealth Bank and Trust Company
R eso u rce s
(in
th o u s a n d s
o f d o lla rs )
B a n k in g O ffic e s
In
o p e r a tio n
T o be
o p e ra te d
107,651
13
14
5,404
1
Muncy, Pennsylvania
to merge with
Citizens Bank of Renovo
Renovo
Summary report by A tto rn e y General, May 3, 1974
Commonwealth Bank and Citizens Bank are headquartered about 66 miles
apart and the nearest offices o f the tw o banks are separated by about 43 miles.
There are several banking offices in the intervening area. It appears th a t the
proposed acquisition w ould not eliminate substantial existing com petition.
And in view o f the modest size o f the bank to be acquired and the existence o f
other potential entrants, we conclude th a t the proposed transaction w ill no t
eliminate substantial potential com petition.
Therefore, we conclude th a t the proposed transaction w ould not have a
substantial com petitive impact.
Basis fo r C orporation approval, May 31, 1974
Commonwealth Bank and T rust Company, Muncy, Pennsylvania ("C o m
m o nw ealth"), a State nonmember insured bank w ith total resources o f
$107,651,000 and total IPC deposits o f $84,194,000, has applied, pursuant to
Section 18(c) and other provisions of the Federal Deposit Insurance A c t, fo r
the C orporation's p rior w ritte n consent to merge w ith Citizens Bank o f Renovo, Renovo, Pennsylvania ("C itiz e n s "), a State nonmember insured bank
w ith to ta l resources o f $5,404,000 and to ta l IPC deposits o f $4,725,000. The
banks w ould merge under the charter and title o f Commonwealth and, as an
incident to the merger, the sole office o f Citizens w ould become a branch o f
the resulting bank, increasing the number o f its authorized offices to 15.
Competition. Commonwealth operates 13 offices in 4 o f the 10 counties in
which it may legally branch or merge under Pennsylvania law. Its main o ffice
and three branches are in Lycom ing C ounty, tw o branches are in Bradford
BA N K ABSORPTIONS APPROVED BY THE CORPORATION
91
C ounty, tw o are in Potter C ounty, and five are in Tioga C ounty. C om m on
wealth also has approval fo r an additional branch in Lycom ing C ounty. A ll
fo u r o f these counties are in north-central Pennsylvania and their combined
1970 population was 227,344— an increase o f 4.6 percent over the 1960 figure.
Pennsylvania as a whole had a 4.2 percent population increase in the like
period. The 1972 median household income fo r these fo u r counties ranged
from $7,104 in Potter C ounty to $7,840 in Lycom ing C ounty, compared to
the State figure o f $8,785.
Citizens, a very conservative in s titu tio n , operates its only office in Renovo
(1970 population 2,620— down 21.0 percent since 1960), which is in the
north-central part o f C linton C ounty. C linton C ounty is bounded on the north
by Potter C ounty and on the east by Lycom ing County. The population o f
C linton C ounty remained stable during the 1960s and the 1970 count was
37,721— the bulk o f which is concentrated in the southern half o f the county.
Renovo's economy is dependent on three principal employers w ith 500 to 600
employees. Some other residents o f the area comm ute fo r em ploym ent to
Lock Haven, some 30 miles dow nriver fro m Renovo. C linton C ounty's 1972
median household income was $7,357.
The only local co m petition faced by Citizens is the Renovo branch o f the
$90-m illion-deposit Central Counties Bank, which was established in 1971 and
has 32.3 percent o f the total IPC deposits held by the tw o offices. Because o f
the com m utation patterns fo r em ploym ent and shopping, however, the three
commercial banking offices in Lock Haven may represent realistic alternatives
fo r commercial banking services fo r a significant p ortion o f the residents o f the
Renovo area. These five offices operated by fo u r banks have aggregate IPC
deposits o f $69.5 m illio n , and Citizens has the smallest share w ith 7.1 percent.
Because Commonwealth is not now represented in this local market, the pro
posed merger w ould not a ffect the commercial banking structure there.
Commonwealth w ould replace a small ineffective com petitor, and w ould be a
more aggressive alternative fo r commercial banking services in the RenovoLock Haven market.
Com m onwealth's closest offices to Renovo are in Jersey Shore, about 42
miles southeast, and in Galeton, about 40 miles north o f Renovo. Five offices
o f three other banks are in the intervening area between Renovo and Jersey
Shore, and the area between Renovo and Galeton is rugged m ountain terrain
traversed by a poor road system. The participating banks operate in separate
and distin ct markets, and there is no significant existing com p e titio n between
them w hich w ould be eliminated by their proposed merger.
Commonwealth may legally branch de novo into Renovo, b u t this does not
appear to be a realistic pro b a b ility. The entire northern half o f C linton C ounty
is sparsely populated, and there are already tw o commercial banking offices to
serve the lim ited population of the area. Renovo's declining population and
relatively static economy also serve to discourage such a course of action.
A lthough Citizens may legally branch de novo into portions of C om m on
wealth's trade area, it lacks the financial and managerial resources to do so. The
proposed merger w ould therefore eliminate no significant potential fo r in
creased com petition between Commonwealth and Citizens through de novo
branching.
W ithin the 10-county area where Commonwealth may branch or merge,
there are 60 commercial banks operating over 140 offices. As o f June 30,
92
F E D E R A L DEPOSIT INSURANCE CORPORATION
1973, the largest o f these banks was Northern Central Bank and T rust Com
pany, W illiam sport, w ith 8.6 percent o f the IPC deposits held by all com m er
cial banks in th a t area. Commonwealth ranks th ird w ith 6.8 percent of the IPC
deposits. The resulting bank w ould have 7.2 percent of such deposits and
would be the second largest commercial bank in this branching and merging
area. In view o f the relatively unconcentrated nature o f the area and the large
number o f commercial banks represented there, however, the addition of C iti
zens' 0.4 percent share o f IPC deposits to Com m onwealth's share w ould have
no significant effect on the structure o f commercial banking there.
Based on the foregoing, the Board o f Directors has concluded th a t the
proposed merger w ould not, in any section o f the country, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
o f trade.
Financial and Managerial Resources; Future Prospects. The financial and
managerial resources of Commonwealth and the resulting bank are adequate,
and their future prospects are favorable. Citizens has a management succession
problem w hich the proposed merger w ould resolve, and its future prospects
would appear to be improved by the merger.
Convenience and Needs o f the Community to be Served. Consummation o f
the proposed merger w ould bring to customers of Citizens the broad range o f
services o f a larger commercial bank, such as significantly larger lending lim its,
bank credit card services, trust services, higher interest rates on savings de
posits, fu ll installm ent loan services, and a greater variety o f deposit instru
ments. There is at present only one local source fo r these services, and the
proposed merger w ould provide Renovo residents w ith a second option w ith
out the necessity o f going the 30 miles to Lock Haven.
Based on the foregoing in fo rm a tio n , the Board of Directors has concluded
that approval o f the application is warranted.
Southern Bank and Trust Company
R eso u rce s
(in
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
T o be
o p e ra te d
174,172
29
32
9,958
3
B a n k in g O ffic e s
Greenville, South Carolina
to merge with
The Bank of Commerce
Prosperity
Summary report by A tto rn e y General, May 16, 1974
The nearest offices o f the parties are separated by a distance o f about 21
miles. Thus, it does no t appear that the proposed merger w ould eliminate
substantial existing com petition.
A pplicant does no t presently operate any banking offices in Newberry or
Lexington Counties. Since South Carolina permits statewide branching, A p p li
cant could legally establish de novo offices in the Newberry and Lexington
C ounty areas presently served by Bank. However, in view of the existence o f
other potential entrants and the relatively modest market position o f Bank, we
B A N K ABSORPTIONS APPROVED BY THE CORPORATION
93
conclude th at the proposed transaction w ill not elim inate substantial potential
com petition.
Therefore, we conclude th a t the proposed merger w ould not have a sub
stantial com petitive impact.
Basis fo r C orporation approval, May 31, 1974
Southern Bank and Trust Company, Greenville, South Carolina ("S o u th
e rn "), an insured State nonmember bank w ith to ta l resources o f $174,172,000
and IPC deposits o f $122,961,000, has applied, pursuant to Section 18(c) and
other provisions o f the Federal Deposit Insurance A ct, fo r the C orporation's
prio r consent to merge under its charter and title w ith The Bank o f Commerce,
Prosperity, South Carolina ("C om m erce"), which has total resources o f
$9,958,000 and IPC deposits o f $7,747,000. Southern, as an incident to the
merger, w ould operate the 3 offices of Commerce as branches, thereby in
creasing the number o f its offices to 32.
Competition. Southern operates offices in eight counties of northwestern
South Carolina, w ith its offices concentrated in large part in and near the
southern terminus o f the rapidly expanding Piedmont Industrial Crescent. The
economy o f the area, p rincipally concerned w ith textiles, has been broadened
over recent years by diversification o f industry and expansion o f d istrib u tio n
facilities. The population o f these eight counties increased during the 1960s by
10.5 percent to a total o f 637,423. Southern has no office in the counties in
which Commerce is represented.
Commerce has its main o ffice in Prosperity (population 762), a to w n in
southern Newberry C ounty, and one branch each in Chapin (population 342)
and Irm o (population 517) in northern Lexington C ounty, towns respectively
13 and 27 road-miles southeast o f Prosperity. The banking market served by
Commerce comprises southeastern Newberry C ounty and a small p o rtio n o f
northern Lexington C ounty, extending some 6 miles northwest of Prosperity
to include Newberry tow n and some 8 miles south o f Irm o to include Lexing
ton to w n and West Columbia city . The northern p o rtio n o f this market is
predom inantly agricultural; the southern po rtio n is w ith in the fringe o f the
rapidly expanding residential suburbs o f Columbia city. The estimated popula
tion o f this area increased during the 1960s by some 50 percent to a to ta l o f
57,200. In its local market, Commerce holds approxim ately 8.5 percent— the
fifth largest share— o f the IPC deposits held by the 8 commercial banks which
presently maintain a total o f 19 offices therein. The Lexington State Bank,
headquartered w ith in the market, holds the largest share— approxim ately 30
percent— o f this market's IPC deposits in fo u r area offices. Each o f the five
largest banks in the State are also represented in this local market.
Offices o f Southern nearest to Commerce are located some 40 road-miles
northwest o f Prosperity and a like distance to the northeast. The banks operate
in separate markets and no significant existing com petition w ould be e lim i
nated by their proposed merger.
A lthough statewide branching is perm itted by South Carolina law, Com
merce is not like ly to enter de novo the areas presently served by Southern
because o f the distances involved and the com petition it w ould encounter.
Southern, on the other hand, may fin d attractive the rapidly expanding west
ern suburbs of Columbia c ity fo r de novo entry w ith in the foreseeable future.
E lim ination by the proposed merger of this potential fo r increased com petition
94
F E D E R A L DEPOSIT INSURANCE CORPO RATIO N
between the tw o banks has lim ited significance, however, in view of the m inor
size o f Commerce in its market and the presence therein o f a su fficie n t number
of convenient alternatives fo r banking services.
Statewide, Southern held only 4.1 percent o f the aggregate deposits held by
all South Carolina commercial banks at year-end 1973. The resulting bank's
share w ould be 4.3 percent. The proposed merger, accordingly, appears un
likely to affect adversely the structure of commercial bank com petition in any
relevant market.
Based on the foregoing, the Board o f Directors has concluded th a t the
proposed merger w ould not, in any section o f the co u n try, substantially lessen
co m petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future Prospects. Financial and man
agerial resources o f both Southern and Commerce are adequate, as w ould be
those o f the resulting bank. Future prospects appear favorable fo r the resulting
bank.
Convenience and Needs o f the Community to he Served. The increased
lending capability o f the resulting bank, together w ith a lending lim it of
approxim ately $1.6 m illio n , should benefit the rapidly expanding market in
which Southern operates. Trust services w ould be offered fo r the firs t tim e at
the Commerce locations. These offices, operated by a much larger, more ag
gressive in stitu tio n , should present significantly strengthened com petition in
southeastern Newberry C ounty and adjoining northern Lexington C ounty to
the five major banks o f the State, all of which have representation therein.
The Board o f Directors, accordingly, has concluded th a t approval o f the
application is warranted.
Home Savings Bank of Upstate New York
B a n k in g O ffic e s
R eso u rce s
(in
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
T o be
o p e ra te d
185,865
7
8
17,702
1
A lbany, New Y o rk
to merge with
Troy Co-operative Savings and Loan
Association
T ro y
Summary report by A tto rn e y General, February 19, 1974
T ro y Savings;' office in T ro y (population 62,900) is located in western
R e n sse la e r C ounty (population 152,500) in the four-county AlbanySchenectady-Troy Standard M etropolitan Statistical Area. Home Savings' o f
fices in A lbany and Colonie appear to be w ith in about 10 miles o f T ro y
Savings. The application indicates that much of T ro y Savings' deposits are
w ith in Home Savings' prim ary service area, and that Home Savings holds sub
stantial deposits w ith in the T ro y area.
BA N K ABSORPTIONS APPROVED BY THE CORPORATION
95
The proposed merger w ill eliminate some existing com petition in the T ro y
area, in Rensselaer C ounty, and in the Rensselaer-Albany tw o -co u n ty area,
slightly increasing concentration among savings institutions serving these areas.
Basis fo r C orporation approval, June 19, 1974
Home Savings Bank o f Upstate New Y o rk, A lbany, New Y o rk ("H om e
S a v in g s " ) , an insured mutual savings bank w ith to ta l resources o f
$185,865,000 and total deposits o f $173,338,000, has applied, pursuant to
Section 18(c) and other provisions of the Federal Deposit Insurance A ct, fo r
the C orporation's p rio r consent to merge w ith T ro y Co-operative Savings and
Loan Association, T ro y, New Y ork (" S & L ") , a federally insured, Statechartered savings and loan association w ith to ta l resources o f $17,702,000 and
total deposits of $16,054,000.* The tw o institutions w ould merge under the
charter and title o f Home Savings and, incident to the merger, the sole office o f
S &L would become a branch o f the resulting bank, increasing to nine the
number o f its offices.
Competition. Home Savings presently operates a total o f seven offices: its
main office and one branch in the c ity o f A lbany, one branch each in the
suburban towns o f Colonie and Guilderland, tw o branches in Washington
C ounty, and one branch in Rensselaer County. The latter three branches were
acquired during 1971 and 1974 by mergers w ith three State-chartered savings
and loan associations. A n eighth office w ill be established in Columbia C ounty
incident to the consumm ation o f the proposed merger o f Home Savings w ith
Hudson Savings and Loan Association, Hudson, which the C orporation ap
proved May 29, 1974. Under present law, Home Savings may acquire by
merger any number o f branches throughout New Y ork's F ourth Banking Dis
tric t, a 15-county region in northeastern New Y o rk State, but it may establish
de novo branches w ith in the d is tric t at the rate o f only one such branch each
year. Commencing January 1, 1976, mutual savings banks w ill be perm itted to
branch statewide subject to the continuing lim ita tio n o f one de novo branch
each year.
S & L has its sole office in T ro y, Rensselaer C ounty. Its prim ary service area
comprises the city o f T ro y (1970 population 62,918, o ff 6.8 percent since
1960) and its environs, including W atervleit (1970 population 12,404, o ff 10.9
percent since 1960), a c ity in A lbany C ounty lying im m ediately west o f T ro y
and connected thereto by a bridge spanning the Hudson River. The 1972
median household buying level in T ro y ($6,857) was 27 percent below th a t o f
the State as a whole. S &L competes in this prim ary service area w ith tw o
Troy-based savings banks, which hold approxim ately 90.4 percent o f the area's
th r ift in stitu tio n deposits, and another Troy-based savings and loan association,
which shares the remainder o f such deposits w ith S&L.
Home Savings and S &L both compete in the Albany-Schenectady-Troy
SMSA, w hich approximates the local banking market, and th e ir nearest offices
are about 7 miles apart. Home Savings holds approxim ately 6.7 percent o f the
deposits held by the 18 th r ift institutions in that market, w hile S & L holds less
than 1 percent o f such deposits. Five larger savings banks also compete in the
* Financial data as o f D ecem ber 31, 1973, adjusted fo r th e subsequent m erger o f H om e
Savings w ith F o rt E dw ard -H ud son Falls Savings and Loan A ssociation.
96
F E D E R A L DEPOSIT INSURANCE CO RPO RATIO N
SMSA, the largest holding approxim ately 22 percent o f such deposits. It ap
pears th a t the proposed merger w ould elim inate some relatively insignificant
existing com petition between the tw o in stitu tio n s and th a t numerous th r if t
in stitu tio n alternatives w ould remain to serve the public.
Furtherm ore, there appears to exist no significant potential fo r increased
com petition in the fu tu re between the tw o institutions resulting fro m de novo
branching. Home Savings, lim ited by law to one de novo branch a year, is like ly
to find other locations in the Fourth Banking D is tric t (and, subsequent to the
close o f 1975, in the State) more attractive fo r de novo expansion than the
T ro y banking market, an area o f declining population where buying levels are
below average and tw o savings banks o f substantial size are firm ly entrenched.
S &L, fo r its peirt, has operated fro m a single o ffice during its 87-year history
and is not likely to attem pt de novo expansion at the present time, because o f
lim ited financial and managerial resources.
Home Savings is the sixth largest mutual th r ift in s titu tio n in the Fourth
Banking D istrict, w ith approxim ately 6.4 percent o f the deposits held by all
offices o f such institutions in the d is tric t.** The resulting bank w ould hold 7.0
percent o f such deposits and continue as the sixth largest mutual th r ift in s titu
tion in the district.
The Board o f Directors is of the opinion th a t the proposed merger w ould
not, in any section o f the co u n try, substantially lessen com petition, tend to
create a m onopoly, or in any other manner be in restraint o f trade.
Financial and Managerial Resources; Future Prospects. Both institutions
have satisfactory financial and managerial resources, as w ould the resulting
bank. The fu tu re prospects of the resulting bank appear to be favorable.
Convenience and Needs o f the Community to be Served. Operating fro m the
location of S & L under a more liberal lending policy and w ith a greatly ex
panded lending capability, the resulting bank should provide more effective
com petition in the area of real estate financing to the other th r if t institutions
and commercial banks available locally. In addition, Home Savings w ould o ffe r
a number o f services not presently offered by S &L to its customers.
Based on the; foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.
R esources
(in
th o u s a n d s
o f d o lla rs )
First Whitney Bank and Trust
29,149
B a n k in g O ffic e s
In
o p e r a tio n
1
T o be
o p e ra te d
1
A tla n tic, Iowa
to merge with
Whitney Building Company, Inc.
-
A tla n tic
* * T h e indicate d de p o s it share includes b o th deposits acquired b y H om e Savings in its
A p ril 1, 1974 m erger w ith F o rt E dw ard -H ud son Falls Savings and Loan A ssociation
and deposits to be acq uired in its m erger w ith H udson Savings and Loan A sso cia tio n .
B A N K ABSORPTIONS APPROVED BY THE CORPO RATIO N
97
Summary report by A tto rn e y General, May 15, 1974
The W hitney Building Corporation is a w holly-ow ned subsidiary o f First
W hitney Bank and Trust. The subject merger is sim ply a corporate reorganiza
tion w hich w ill have the e ffect o f elim inating W hitney Building as a separate
corporate e n tity. Therefore, it w ill have no com petitive effects.
Basis fo r C orporation approval, June 26, 1974
First W hitney Bank and Trust, A tla n tic , Iowa ("W hitney B a n k ")(to ta l re
sources $29,149,000), an insured State nonmember bank, has applied, pur
suant to Section 18(c) and other provisions o f the Federal Deposit Insurance
A ct, fo r the C orporation's retroactive consent to merge w ith W hitney Building
Company, Inc., A tla n tic , Iowa ("W h itn e y C om pany"), a noninsured corpora
tio n w hich held title to W hitney Bank's banking office and w hich was w h o lly
owned by W hitney Bank.
Competition. This transaction was essentially a m inor internal reorganiza
tio n whose purpose was to return d irect ownership o f W hitney Bank's banking
premises to the bank from its w holly-ow ned subsidiary. As such, it has had no
effect on com petition.
Financial and Managerial Resources; Future Prospects. The financial and
managerial resources and fu tu re prospects of W hitney Bank are satisfactory.
Convenience and Needs o f the Community to be Served. Due to the nature
o f the transaction as an internal reorganization, there has been no effect on the
convenience and needs o f any com m unity.
On the basis o f the foregoing in fo rm a tio n , the D irector o f the Division o f
Bank Supervision acting on behalf o f the Board o f Directors under delegated
a u th o rity has concluded that approval o f the application is warranted.
R esources
(in
th o u s a n d s
o f d o lla rs )
Farmer's State Bank
B a n k in g O ffic e s
In
o p e r a tio n
T o be
o p e ra te d
8,181
2
3
3,371
1
M iddletow n, Indiana
(change title to Farmers State Bank
o f Henry County)
to merge with
Farmers State Bank
Mooreland
Summary report by A tto rn e y General, May 15, 1974
A p p lica n t and Bank are both headquartered in northern Henry C ounty in
east-central Indiana. The banks' offices are separated by a distance o f nearly 20
miles w ith tw o other banking offices intervening; and there are banking alter
natives nearer to each in both Henry and adjoining counties. It w ould not
appear, therefore, th a t the proposed merger w ill eliminate substantial existing
com petition between the parties or significantly increase concentration in any
relevant banking market.
98
F E D E R A L DEPOSIT INSURANCE CO RPO RATIO N
Basis fo r C orporation approval, July 24, 1974
Farmer's State Bank, M iddletow n, Indiana ("M id d le to w n B ank"), a State
nonmember insured bank w ith total resources o f $8,181,000 and total IPC
deposits o f $6,243,000, has applied, pursuant to Section 18(c) and other pro
visions o f the Federal Deposit Insurance A ct, fo r the C orporation's prior con
sent to merge w ith Farmers State Bank, Mooreland, Indiana ("M ooreland
B ank"), also a State nonmember insured bank, w ith total resources o f
$3,371,000 and to ta l IPC deposits o f $2,487,000, under the charter of M iddle
tow n Bank and w ith the title of Farmers State Bank of Henry C ounty. As an
incident to the merger, the sole office o f Mooreland Bank would become a
branch o f the resulting bank, increasing the number o f its offices to three.
Competition. M iddletow n Bank operates its main office and only branch in
M iddletow n which is in the northwest corner o f Henry C ounty, while Moore
land Bank operates its only o ffice in Mooreland w hich is in the northeast part
of the county. Henry C ounty is located in east-central Indiana, roughly 40
miles northeast o f Indianapolis, the State capital. It is south o f Muncie and
southeast o f Anderson.
Henry C ounty is agriculturally oriented, bu t there is considerable industry
in New Castle, the county seat, which is located about 17 miles southeast o f
M iddletow n and 10 miles southwest o f Mooreland. The population o f Henry
C ounty in 1970 was 52,603, an increase o f 7.6 percent over 1960. M iddle
tow n's population increased only slightly in the 1960s, and it had a 1970
population of 2,046. Mooreland's population was 495 in 1970. The 1973
median household buying level fo r Henry C ounty was $10,086, about 4.4
percent above the State figure of $9,665.
M iddletow n and Mooreland are located at opposite ends o f Henry C ounty
and are about 20 miles apart. There are tw o commercial bank offices in this
intervening area, including a branch of the largest bank in the county. A l
though both M iddletow n Bank and Mooreland Bank have offices in the same
county, neither originates any appreciable volume o f business fro m the local
area served by the other. Further, each bank faces com petition fro m other
larger commercial banks at closer locations. Given these facts, it appears that
there is no significant existing com petition between the tw o banks which
w ould be eliminated by the proposed merger.
The proposed merger w ould have its most immediate com petitive im pact in
and around Mooreland, the area served by the smaller of these tw o rural banks.
W ithin a 10-mile radius o f Mooreland, there are 7 commercial banks operating
from 13 offices. Mooreland Bank holds only 3.6 percent o f their combined IPC
deposits. The resulting bank should be better able to compete w ith the larger
banks in this market, both in the breadth o f services rendered and the size o f
loans it could handle.
The proposed merger w ould also perm it M iddletow n Bank, in its present
trade area, to compete more effectively w ith larger banks in Anderson and
elsewhere, because o f the increase in its lending lim it from $42,000 to almost
$75,000.
Either o f the participating banks could legally establish de novo branches
anywhere in Henry C ounty, subject to home office protection. This does not
appear like ly, however, because o f the lim ited financial and managerial re
sources o f both banks and the localized scope o f th e ir operations. In addition,
there is already one banking office fo r each 2,768 persons in Henry C ounty,
B A N K ABSORPTIONS APPROVED BY THE CORPORATION
99
even w ith o u t considering the easily accessible commercial banking offices in
the Anderson area. The proposed merger would therefore eliminate no signifi
cant potential com petition between the tw o banks.
In Henry C ounty, the m aximum legal branching and merging area o f both
banks, there are 8 commercial banks operating 19 offices w hich hold aggregate
IPC deposits o f $74.2 m illio n . M iddletow n Bank holds 7.5 percent and Mooreland Bank holds 2.6 percent o f these deposits. Commercial banking in the
county is dom inated by tw o New Castle banks which between them hold 58.2
percent o f the to ta l IPC deposits. It is apparent th a t the proposed merger
w ould have little e ffect on commercial bank com petition in Henry C ounty.
Under these circumstances, the Board o f Directors is o f the opinion th a t the
proposed merger w ould not, in any section o f the co untry, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
o f trade.
Financial and Managerial Resources; Future Prospects. Financial and man
agerial resources o f each in s titu tio n , and o f the resulting bank, are considered
satisfactory. Future prospects o f the resulting bank are favorable.
Convenience and Needs o f the Community to be Served. The principal
benefit o f the proposed merger w ould accrue to the residents and businesses in
M iddletow n and Mooreland, by virtue o f the relatively significant increase in
the resulting bank's lending lim it which w ould be locally available.
Based on the foregoing in fo rm a tio n , the Board o f Directors has concluded
tha t approval o f the application is warranted.
The Savings Bank of Tompkins County
B a n k in g O ffic e s
R eso u rce s
(in
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
T o be
o p e ra te d
121,814
4
7
74,980
3
Ithaca, New Y o rk
to merge with
The Elmira Savings Bank
Elmira
Summary report by A tto rn e y General, A p ril 4, 1974
The nearest offices o f the parties are separated by a distance o f a p p ro xi
mately 31 miles. Thus, it does not appear th at the proposed merger w ould
eliminate substantial existing com petition.
The Savings Bank o f Tom pkins C ounty and The Elmira Savings Bank, the
largest th r if t institu tio n s in Tom pkins C ounty and Chemung C ounty, respec
tively, could become more com petitive either by branching de novo into the
area served by the other or by merger w ith a smaller th r ift in s titu tio n operating
in the other's immediate area. Thus, we conclude th a t the proposed transaction
w ould eliminate some potential com petition.
100
F E D E R A L DEPOSIT INSURANCE CORPORATION
Basis fo r C orporation approval, July 24, 1974
The Savings Bank o f Tom pkins C ounty, Ithaca, New Y o rk ("T o m p kin s
S a v in g s " ) , ari insured mutual savings bank w ith to ta l resources o f
$121,814,000 and total deposits o f $112,772,000, has applied, pursuant to
Section 18(c) and other provisions o f the Federal Deposit Insurance A ct, fo r
the C orporation's prior consent to merge w ith The Elmira Savings Bank, E l
mira, New Y o rk ("E lm ira Savings"), an insured mutual savings bank w ith total
resources o f $74,980,000 and total deposits of $69,520,000. These banks
w ould merge under the charter and title o f Tom pkins Savings and, as an inci
dent to the merger, the three offices o f Elmira Savings w ould be established as
branches of the resulting bank, increasing to eight the number o f its approved
offices.
Competition. Tom pkins Savings operates a total of fo u r offices: its main
office and one branch in the c ity o f Ithaca and one branch in the suburban
tow n o f Lansing, all three offices being located in central Tom pkins C ounty,
and another branch in the tow n o f C ortlandville, in Cortland C ounty. T o m p
kins Savings also has the necessary supervisory approvals to establish an addi
tional branch in the village o f Johnson C ity, in Broome C ounty. Much o f the
population o f Tom pkins C ounty (77,064 in 1970) is concentrated in the Ithaca
area, the c ity o f Ithaca having a population o f 26,226 and the surrounding
tow n of Ithaca 15,620. C ortlandville (population 7,469) adjoins the c ity o f
Cortland (population 19,621) and is the second largest co m m u n ity in C ortland
C ounty (population 45,894). The 1973 median household buying levels in
these three counties— Tom pkins $9,973, Cortland $8,585, and Broome
$9,694— compare w ith $10,264 fo r the State as a whole.
Elmira Savings has its main office in the c ity o f Elmira (population 39,945)
and one branch each in the suburban towns o f Horseheads (population 20,552)
and S outhport (population 11,976). These are the three major com m unities in
Chemung C ounty (1970 population 101,537— up 2.9 percent since 1960). The
1973 median household buying level in Chemung C ounty ($9,213) is 10.2
percent below th a t o f the State as a whole.
Tom pkins Savings derives more than 80 percent o f its deposits fro m T o m p
kins C ounty. Chemung C ounty, sim ilarly, is the prim ary trade area of Elmira
Savings. Chemung C ounty borders the State o f Pennsylvania and is adjacent to,
and southwest of, Tom pkins C ounty, both counties lying im m ediately west o f
the Binghamton, New York-Pennsylvania SMSA. Cornell University is Ithaca's
major employer. The Elmira area is one o f diversified industry. Much o f the
remaining area o f the tw o counties is h illy , forested, and sparsely populated.
T w o th r ift institutions are represented in Tom pkins C ounty. Tom pkins
Savings holds approxim ately 75 percent o f the deposits held on June 30, 1973,
by the area offices o f these in stitu tio n s; Ithaca Savings and Loan Association
holds the remainder. The Chemung C ounty market is shared by 2 mutual
savings banks arid 3 savings and loan associations, their 11 area offices holding
deposits aggregating $191,900,000. Elmira Savings holds the largest share (36.1
percent) o f these deposits.
No office of Tom pkins Savings is w ith in 31 road-miles o f any office o f
Elmira Savings. A survey o f the accounts o f the proponents indicated a m in i
mum o f depositors and few borrowers comm on to both institutions, w hile the
deposits and loans each bank derives fro m the trade area o f the other are not
B A N K ABSORPTIONS APPROVED BY TH E CORPORATION
101
substantial in amount. It appears, therefore, th a t no significant existing com
petition between the tw o banks w ould be elim inated by th e ir proposed merger.
Under present law, the proponents may establish de novo branches th ro u g h
out the Seventh Banking D istrict, an eight-county region in central-southern
New Y o rk State, at the rate o f one such branch each year, subject to home
office protection. Commencing January 1, 1976, New Y ork's mutual savings
banks w ill be perm itted to branch statewide, subject to home office protection
and a continued lim it o f one de novo branch each year.
Elmira Savings has its tw o branches in close p ro x im ity to its main office and
has established no additional offices since its legal branching area was broad
ened in 1971 to include the eight counties o f the Seventh Banking D istrict.
Under nonaggressive management, the bank is unlikely to engage in de novo
expansion in the foreseeable future. Tom pkins Savings, on the other hand, is
pursuing an office expansion program. It entered Cortland C ounty de novo in
1972 and has established a public accomm odation branch in Ithaca in 1974. It
holds the necessary approvals to enter Broome C ounty de novo and, by the
subject merger, proposes to enter Chemung County. If the proposed merger is
denied, however, it cannot be said th a t Tom pkins Savings w ould be like ly to
enter Chemung C ounty de novo in view o f the county's lack o f significant
population grow th during recent years, the fact th a t Elmira itself would be
closed to such de novo branching because o f home office protection, the
county's prevailing below average buying levels, and the existence o f 11 th r if t
in stitu tio n offices today. Even if some lim ited potential fo r increased co m p e ti
tion between the tw o banks through de novo branching in the fu tu re or
through some alternative merger were to be eliminated by the proposed merg
er, the advent o f statewide branching in 1976 w ill m u ltip ly dram atically the
number o f th r if t institutions legally able to establish offices in both Chemung
and Tom pkins Counties and reduce the significance o f th a t consequence in the
merger proposed.
Tom pkins Savings is the second largest mutual th r ift in s titu tio n in the
Seventh Banking D istrict, w ith 13.5 percent o f the deposits held by all such
institutions in this market. The resulting bank, w ith 21.8 percent of such
deposits, w ould continue to rank second largest in the d istrict, substantially
smaller than the $304-m illion-deposit Binghamton Savings Bank. On a state
wide basis, the resulting bank w ould rank 80th largest o f New Y o rk's th r if t
institutions w ith 0.3 percent o f th e ir aggregate deposits.
The Board o f Directors is o f the opinion th a t the proposed merger w ould
not, in any section o f the c o u n try, substantially lessen co m p e titio n , tend to
create a m onopoly, or in any other manner be in restraint o f trade.
Financial and Managerial Resources; Future Prospects. Financial and man
agerial resources o f Tom pkins Savings are satisfactory, those o f Elmira Savings
are acceptable. The resulting bank w ould have satisfactory financial and man
agerial resources and its future prospects appear to be favorable.
Convenience and Needs o f the Community to be Served. The resulting bank,
w ith an increased lending capability in Tom pkins, C ortland, and Chemung
Counties and w ith its offices in Chemung C ounty reflecting the policies of a
more sophisticated and aggressive management, w ould o ffe r additional services
than the banks do today and should prove attractive to all area residents who
seek th r if t in stitu tio n services.
102
F E D E R A L DEPOSIT INSURANCE CORPORATION
Based on the foregoing, the Board o f Directors has concluded th a t approval
o f the application is warranted.
R esources
(in
th o u s a n d s
o f d o lla rs )
The Toy National Bank of Sioux City
B a n k in g O ffic e s
In
o p e r a tio n
90,911
1
866
1
T o be
o p e ra te d
1
Sioux C ity, Iowa
to merge with
Farmers Loan and Trust Company
Sioux C ity
Summary report by A tto rn e y General, June 12, 1974
According to the application, both institutions share the same quarters, and
employees and officers of one have simultaneously done w o rk as employees
and officers of the other. The application also states th a t since a 1952 decision
to enlarge the tru st departm ent o f Bank, the principal use o f Farmers T rust has
been to administer fa m ily trusts.
Under Iowa law, the charter of Farmers Trust, one o f tw o remaining trust
companies in Iowa, w ill expire in 1983, and cannot be renewed.
We do not believe th a t the proposed transaction w ould have any significant
adverse com petitive effects.
Basis fo r C orporation approval, August 12, 1974
The T oy National Bank of Sioux C ity ("T o y B ank"), w ith to ta l resources o f
$90,911,000 and IPC deposits o f $55,458,000, has applied, pursuant to Sec
tion 18(c) and other provisions o f the Federal Deposit Insurance A ct, fo r the
C orporation's prio r consent to merge under its charter and title w ith Farmers
Loan and Trust Company, Sioux C ity, Iowa ("Farm ers T ru s t"), a noninsured
trust company w ith total resources o f $866,000 and IPC deposits of $542,000.
Competition. Toy Bank and Farmers T rust were organized in 1912 and
1883, respectively, by the same individual, and Farmers T rust was originally
founded to manage the investments o f th a t individual's fam ily. Both in s titu
tions are now sjb sta n tia lly owned by their founder's grandchildren and over
the years, T oy Bank and Farmers Trust have fo r the most part shared the same
directors, officers, and employees. In addition, since Toy Bank's organization,
both institutions have operated fro m the same Sioux C ity office. Toy Bank's
trust department administers about $22 m illio n in trust assets and Farmers
Trust has about $5.3 m illio n in trust assets, largely tru st accounts o f the
founding fam ily.
For over 20 years the comm on management of the participating in stitutions
has concentrated the development of new fiduciary business in the tru s t de
partm ent o f T c y Bank rather than Farmers Trust, resulting in a significant
decline in the latter's resources during th a t time. The charter o f Farmers T rust
w ill expire in 1983 and under present Iowa iaw cannot be renewed.
BA N K ABSORPTIONS APPROVED BY THE CO RPORATION
103
It is apparent th a t there has never been any significant com petition between
Toy Bank and Farmers Trust and th a t there is little likelihood th a t com petition
w ould develop between them in the future. Further, the proposed merger
w ould not have any material e ffect on the structure o f commercial or fid u cia ry
banking in any relevant area.
Under the circumstances in this case, the Board o f Directors is o f the o p in
ion th a t the proposed merger w ould not, in any section o f the co untry, sub
stantially lessen co m p e titio n , tend to create a m onopoly, or in any other
manner be in restraint o f trade.
Financial and Managerial Resources; Future Prospects. Both institutions
have adequate financial resources fo r the business they presently do. The man
agerial resources of both institutions are largely the same individuals, who
w ould continue to operate the resulting bank. Managerial resources are satis
factory. Future prospects o f T oy Bank and the resulting bank are satisfactory,
but Farmers Trust is essentially a vehicle fo r managing fa m ily trusts and it must
cease its existence in about 9 years. Its fu tu re would therefore be more favor
able as part o f the resulting bank.
Convenience and Needs o f the Community to be Served. The proposed
merger w ould have lim ited effects on convenience and needs. The resulting
bank w ould have somewhat higher legal lending lim it and the integration o f the
tw o separate tru st operations into a $27-m illion trust departm ent o f the result
ing bank could result in im proving the efficiency of the adm inistration o f its
fiduciary activities.
Based on the foregoing, the Board o f Directors has concluded th a t approval
o f the application is warranted.
The Peoples Bank and Trust Company
R esources
(in
th o u s a n d s
o f d o lla rs )
B a n k in g O ffic e s
In
o p e r a tio n
T o be
o p e ra te d
84,555
11
13
6,211
2
Tupelo, Mississippi
to merge with
Clay County Bank and Trust Company
West P oint
Summary report by A tto rn e y General, June 19, 1974
Clay C ounty Bank's West Point offices are located about 40 miles south o f
Peoples Bank's nearest office. There are several intervening banking offices.
Thus, it does not appear th a t the proposed merger w ould elim inate substantial
existing com petition. And in view o f Clay C ounty Bank's small size and market
position, we conclude th a t the proposed merger w ould not elim inate substan
tial potential com petition.
Basis fo r Corporation approval, August 12, 1974
The Peoples Bank and Trust Company, Tupelo, Mississippi ("Peoples
B ank"), a State nonmember insured bank w ith total resources of $84,555,000
and IPC deposits o f $65,094,000, has applied, pursuant to Section 18(c) and
104
F E D E R A L DEPOSIT INSURANCE CORPORATION
other provisions o f the Federal Deposit Insurance A ct, fo r the C orporation's
prior consent to merge under its charter and title w ith Clay C ounty Bank and
Trust Company, West Point, Mississippi ("C lay C ounty B a n k"), which has total
resources of $6,211,000 and IPC deposits o f $3,361,000. The 2 offices o f the
latter bank would be established as branches o f the resulting bank, increasing
to 14 the number of its approved offices.
Competition. Peoples Bank operates eight offices, including its main office,
and has one approved, unopened office in Lee C ounty, Mississippi (population
46,148), and three offices in Prentiss C ounty (population 20,133), which ad
joins Lee C ounty to the north. H istorically agricultural, the economy o f these
tw o counties during recent years has become reasonably well diversified w ith
the development o f significant light industry in the Tupelo area— the center o f
trade and em ploym ent fo r the entire northeast Mississippi area. The population
o f Lee C ounty increased 13.7 percent during the 1960s, while Prentiss C ounty
had similar grow th, 12.2 percent. Both counties compared favorably w ith the
statewide population increase of only 1.8 percent. Peoples Bank has no office
in Clay C ounty.
Clay C ounty Bank has its main office and only branch in West Point (popu
lation 8,714), the only incorporated area in Clay C ounty (1970 population
18,840, virtu a lly unchanged during the 1960s). Clay C ounty is an agricultural
area located south o f Lee C ounty and is separated fro m Lee C ounty by C hick
asaw and Monroe Counties. Clay C ounty Bank has Clay C ounty as its prim ary
service area. Established in late 1972, it holds only 8.1 percent o f the IPC
deposits contro led by offices in Clay C ounty o f the three commercial banks
operating there. The First National Bank o f West Point and Bank o f Mississippi
(its representation w ith in the county recently acquired by merger) each have
far larger shares; o f Clay C ounty IPC deposits. Median household income in
Clay C ounty in 1973 was $7,939 compared to a statewide median of $6,928.
W ithin a 15-mile radius o f West Point, Clay C ounty Bank holds only 1.1
percent o f the local IPC deposits held by the area's nine commercial banks.
The closest office o f Peoples Bank to Clay C ounty Bank's offices in West
Point is located in Shannon, 9 road-miles south o f Tupelo and some 38 miles
north of West Point. A nother commercial bank operates a branch office be
tween the tw o locations. Residents o f the Shannon area seeking convenient
alternatives fo r bank services w ould, moreover, be like ly to turn to bank offices
in either Chickasaw or Monroe C ounty rather than traveling a considerably
greater distance to West Point. People in the latter area have alternatives w ith in
West Point as well as three banks w ith numerous branches in the city o f
Columbus, 15 miles southeast of West Point, all more convenient than traveling
to Shannon. For all o f these reasons, it appears th a t the tw o banks operate in
separate banking markets and th a t no significant existing com petition w ould be
eliminated by their proposed merger.
State law permits both banks to establish branch banks w ith in the market
served by the other. For Peoples Bank, however, neither Clay C ounty nor the
area w ith in 15 miles o f West P oint is attractive fo r de novo entry. In the c ity o f
West Point, each banking office presently serves an average of 1,743 inhab
itants while there is no other center of significant population in sparsely popu
lated Clay C ounty. Other population centers, (Columbus, S tarkville, and A b e r
deen) w ith in 15 miles o f West Point also have numerous existing offices and
low population fo r each commercial bank office. As fo r Clay C ounty Bank, it
BA N K ABSORPTIONS APPROVED BY THE CO RPO RATIO N
105
has only recently established its firs t branch and w ith lim ited financial and
managerial resources it w ould not be likely to enter the market o f Peoples
Bank de novo because o f the distances involved and the strong co m petition
existing among commercial banks in th a t market.
In its broadest potential m arket under State law— all Mississippi points w ith
in 100 miles o f T upelo— Peoples Bank controls 5.4 percent o f the IPC deposits
held by all area offices o f the 74 commercial banks presently represented
therein. The proposed merger w ould increase its percentage share o f the same
area to 5.6 percent. Statewide, Peoples Bank holds 1.5 percent o f aggregate
commercial bank deposits; its post-merger share would be 1.6 percent. The
proposed merger, accordingly, appears u n like ly to a ffect adversely the struc
ture o f commercial bank com petition in any relevant area.
The Board o f Directors, in view o f the foregoing, has concluded th a t the
proposed merger w ould not, in any section o f the co u n try, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
o f trade.
Financial and Managerial Resources; Future Prospects. Both Peoples Bank
and Clay C ounty Bank have adequate financial resources, as w ould the result
ing bank. The satisfactory managerial resources o f Peoples Bank w ould over
come deficiencies in the managerial resources o f Clay C ounty Bank. Future
prospects fo r the resulting bank appear favorable.
Convenience and Needs o f the Community to be Served. The merger w ould
replace a modest-sized commercial bank, recently established in Clay C ounty,
w ith offices o f the State's eighth largest commercial bank. A sophisticated and
aggressive management, operating w ith a lending capability in excess o f $1
m illio n , should stimulate com petition w ith the other tw o firm ly entrenched
commercial banks in the Clay C ounty market to the benefit of its residents,
farmers, and businessmen. Customers o f Clay C ounty Bank w ould also benefit
from the in troductio n o f tru st services.
The Board o f Directors, accordingly, has concluded th a t approval o f the
application is warranted.
Wilmington Savings Fund Society
B a n k in g O ffic e s
R esources
( in
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
T o be
o p e ra te d
486,414
15
16
1,003
1
W ilm ington, Delaware
to purchase the assets and assume
the deposit liabilities o f
Claymont Savings and Loan Association
C laym ont
Summary report by A tto rn e y General, May 15, 1974
W ilm ington Savings holds the dom inant share of savings and tim e deposits in
New Castle C ounty. In m id-1972, it held 66.6 percent o f savings and tim e
106
F E D E R A L DEPOSIT INSURANCE CORPORATION
deposits in county th r if t institutions (savings banks and savings and loan asso
ciations) and 36.7 percent of such deposits in county offices o f th r ift in s titu
tions and commercial banks. C laym ont Savings held about 0.2 percent o f
savings and tim e deposits in county offices o f th r ift institutions, and 0.1 per
cent o f such deposits in county offices o f th r ift institutions and commercial
banks.
C laym ont Savings' sole office is located in the far northeastern corner o f the
State, about 15 miles northeast o f W ilm ington. W ilm ington Savings operates an
office about 1-1/2 miles north o f C laym ont Savings w hich serves much o f the
same area as th a t served by C laym ont Savings. The proposed acquisition w ould
thus elim inate existing com petition between the tw o institutions. However, in
view o f C laym cnt Savings' small size ($861,000 in deposits; 466 savings ac
counts) and modest com petitive capabilities, we conclude th a t the proposed
acquisition w ould not have a significantly adverse effect on com petition.
Elasis fo r Corporation approval, August 26, 1974
W ilm ington S>avings Fund Society, W ilm ington, Delaware ("S o c ie ty ")(to ta l
resources $486,414,000; total deposits $451,504,000), an insured mutual
savings bank, has applied, pursuant to Section 18(c) and other provisions o f the
Federal Deposit Insurance A ct, fo r the C orporation's p rio r consent to purchase
the assets of, and assume lia b ility to pay deposits made in, C laym ont Savings
and L o a n Association, Claym ont, Delaware ("S & L ") (total resources
$1,003,000; total deposits $861,000 at November 23, 1973), an uninsured
association. The sole office o f S & L w ould be established as a branch o f So
ciety.
Competition. Society is headquartered in W ilm ington, Delaware, located
w ith in the densely populated, highly developed NewYork-W ashington corridor.
Extensive manufacturing is carried on in the W ilm ington area, the c ity serving
also as the commercial and services center fo r Delaware and portions o f adja
cent M aryland, Pennsylvania, and New Jersey. Society operates 15 offices at
the present time, o f which 11, including its main office, are located in New
Castle C ounty, the northernm ost o f Delaware's 3 counties. One additional
office has been approved, bu t is no t yet in operation. Society is the largest o f
24 th r ift institutions in Delaware, w ith approxim ately 65 percent o f th e ir
aggregate deposits.
S & L holds only 0.1 percent o f the deposits held by the 36 offices in New
Castle C ounty o f the 16 th r if t institutions represented therein, and its deposits
have been declining in recent years. (S&L's passbook rate is well below the
5.25 percent ceiling rate offered by Society and others in the market.) Its net
operating income approxim ated $3,000 fo r its last fiscal year. S & L originated
only seven loans in one recent calendar year and it has only one active officer.
S & L is clearly not an effective c o m p e tito r in its market. Even though Society
operates in the same market as S & L and has deposit relationships w ith 129 o f
S&L's 466 savings depositors, no substantial com petition between them w ould
be elim inated nor w ould the structure o f th r ift institutions in the area change
perceptibly. Furtherm ore, were the proposed transaction to be consummated,
a su fficien t number o f th r ift institutions w ould remain in New Castle C ounty
to serve as alternatives fo r people seeking th r ift in s titu tio n services at locations
other than the tw o offices maintained by Society in the close v ic in ity o f
C laym ont.
107
BA N K ABSORPTIONS APPROVED BY THE CORPORATION
Under the circumstances presented, the Board o f Directors is o f the opinion
that the proposed purchase and assumption transaction would not, in any
section o f the co u n try, substantially lessen com petition, tend to create a m onop
oly, or in any other manner be in restraint o f trade.
Financial and Managerial Resources; Future Prospects. Society has adequate
financial and managerial resources. W ith the proposed transaction effected, its
future prospects w ould be favorable.
Convenience and Needs o f the Community to be Served. Customers o f S &L
w ould have three offices o f Society conveniently located w ith in S&L's market
at which to transact business. They w ould benefit from the broad range o f
Society's services including its lending expertise and capacity to make signifi
cantly larger loans. Checking accounts w ould be offered fo r the firs t tim e at
the S &L location. Regular savings depositors w ould receive interest at 5.25
percent annually as compared w ith the 4.8 percent being paid by S & L, rates
fo r certain other tim e deposits w ould be increased, and all depositors w ould
gain the protection and security o f Federal deposit insurance.
Based on the foregoing, the Board o f Directors has concluded th a t approval
o f the application is warranted.
The Pennsylvania Bank and Trust Company
B a n k in g O ffic e s
R esources
(in
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
T o be
o p e ra te d
232,660
17
24
100,831
7
Titusville, Pennsylvania
to merge with
First Laurel Bank
St. Marys
Summary report by A tto rn e y General, September 17, 1973
The main offices o f the parties are located about 52 miles apart w hile their
nearest offices are separated by approxim ately 25 miles, w ith several banking
alternatives in the intervening area. Thus, it does not appear th a t the proposed
acquisition w ould eliminate substantial existing com petition.
Pennsylvania law prohibits m ultibank holding companies. Under State law,
commercial banks may branch w ith in their headquarters' county and w ith in
contiguous counties. Pennsylvania Bank is now headquartered in Crawford
C ounty b u t must sh ift its home office designation to one o f its Warren C ounty
offices in order to complete this transaction, since Crawford C ounty is not
contiguous to either Elk or McKean Counties, where Laurel Bank presently
operates. By designating a Warren C ounty office as its registered headquarters,
as it proposed to do in connection w ith this proposed acquisition, Pennsylvania
Bank could legally branch into both McKean and Elk Counties.
McKean and Elk Counties are highly concentrated banking markets. Laurel
Bank, w ith 38 percent o f McKean C ounty deposits, is the largest o f six com
mercial banks operating in th a t c o u n ty; the three largest McKean C ounty banks
hold approxim ately 74 percent o f county deposits. Laurel Bank is also the
largest o f five banks operating in Elk C ounty, holding 55.7 percent o f total
county deposits. The three largest Elk C ounty commercial banks hold 86 per
cent o f county deposits.
108
F E D E R A L DEPOSIT INSURANCE CORPORATION
Should it move its home office into Warren C ounty, Pennsylvania Bank
w ould be the largest commercial bank which could branch into McKean or Elk
Counties, although in so doing, it w ould yield its present a b ility to branch in
Mercer C ounty. And w hile n o t one o f the largest banks in the region, Laurel
Bank nevertheless has the capability to branch in to adjacent Warren C ounty,
where Pennsylvania Bank, w ith five banking offices, is one o f only tw o com
mercial banks serving the county. However, the effects of this transaction on
potential com petition are dim inished somewhat by the lim ited growth pros
pects o f the area and the fact th a t several substantial banking institutions in
Erie and Crawford Counties could, by establishing a c/e novo branch in Warren
C ounty and designating the newly opened office as its headquarters, thereafter
enter McKean and Elk Counties.
We conclude th a t the proposed transaction w ould eliminate some potential
com petition.
Basis fo r C orporation approval, August 26, 1974
The Pennsylvania Bank and Trust Company, Titusville, Pennsylvania
("T itu sville B ank"), an insured State nonmember bank w ith to ta l resources o f
$232,660,000 and to ta l IPC deposits o f $178,579,000, has applied, pursuant
to Section 18(c) and other provisions o f the Federal Deposit Insurance A ct, fo r
the C orporation's p rio r consent to merge w ith First Laurel Bank, St. Marys,
Pennsylvania ("L a u re l B a n k"), w ith to ta l resources o f $100,831,000 and to ta l
IPC deposits o f $80,431,000, under the charter and title o f Titusville Bank.
A pplication has also been made under Section 18(d) of the said A c t to estab
lish Laurel Bank's seven offices as branches o f the resulting bank and to re
locate Titusville Bank's main office fro m Titusville, C rawford C ounty, Penn
sylvania, to the borough o f Warren, Warren C ounty, Pennsylvania, in w hich
latter location it w ill become the main office o f the resulting bank.
Competition. Titusville Bank operates a to ta l o f 17 offices: 6 in Crawford
C ounty (1970 population 81,342— up 4.3 percent since 1960), 2 in Erie Coun
ty (1970 population 263,654— up 5.2 percent since 1960), 4 in Venango C oun
ty (1970 population 62,353— down 4.5 percent since 1960), and 5 in Warren
C ounty (1970 population 4 7 ,6 8 2 — up 4.6 percent since 1960). While its offices
are thus scattered th ro u g h o u t the northwestern corner o f Pennsylvania, it
serves prim arily the fo llo w in g com m unities and their environs: Titusville (1970
population 7,331), Meadville (1970 population 16,573), Union C ity (1970
population 3,631), Oil C ity and Franklin (combined 1970 populations
23,662), and Warren (1970 population 12,998). Economies of these areas have
various bases ranging fro m steel m anufacturing, oil and gas production, and
strip mining to light industry, dairy farm ing, logging, and tourism . Titusville
Bank, under Pennsylvania law, may also establish branches in Mercer C ounty
(1970 population 127,225— approxim ately the same as 1960), b u t it presently
has no representation in th a t county.
Titusville Bank, in connection w ith the proposed merger and to com ply
w ith provisions o f State law relating to location o f main offices, w ould relocate
its main office fro m C rawford C ounty to Warren C ounty, thus abandoning
Mercer C ounty as a potential m arket while acquiring the right, w ith supervisory
approvals, to branch or merge in the counties of Elk (population 3 7 ,770— up
1.2 percent during the 1960s), Forest (1970 population 4 ,926— up 9.8 percent
during the 1960s), and McKean (population 5 1 ,9 1 5 -d o w n 4.8 percent during
the 1960s).
BA N K ABSORPTIONS APPROVED BY THE CORPORATION
109
Laurel Bank has a total o f seven offices: fo u r in southern Elk C ounty and
three in northern McKean C ounty. A p p ro xim a te ly one-quarter o f this tw ocounty area is included in National or State forests and the economy is largely
based upon agriculture, logging, and tourism . Because of the terrain and the
fact th at 47 road-miles separate the nearest Laurel Bank office in McKean
C ounty from its nearest office in E lk county, Laurel Bank must be viewed as
serving tw o separate and d istin ct local markets. In each of these, Laurel Bank
has the largest percentage share o f the local IPC deposits, b u t it faces com peti
tio n in both areas from the $13 0 .7-m illion-deposit Warren National Bank and
from three much smaller banks in Elk C ounty and fo u r smaller banks in
McKean C ounty.
The closest offices o f Titusville Bank and Laurel Bank are separated by
some 43 miles o f a two-lane roadway th a t traverses sparsely settled m oun
tainous terrain and the Allegheny National Forest. Neither bank draws any
substantial business fro m areas served by the other. It appears th a t no signifi
cant existing com p e titio n between the tw o banks w ould be eliminated by their
proposed merger.
Pennsylvania law permits commercial banks to expand by merger or de novo
branching w ith in their headquarters' counties and all contiguous counties.
T itusville Bank, fo llo w in g relocation o f its headquarters in to Warren C ounty,
may thus enter both Elk and McKean Counties. Neither o f these counties
w ould appear significantly attractive fo r de novo entry by T itusville Bank in
the foreseeable fu tu re , however, in view o f economic conditions, buying levels,
population trends, and existing ratios o f population to banking offices. Mc
Kean C ounty has substantial unem ploym ent and a 1973 median household
buying level approxim ately 15 percent below the State level. In addition, it lost
4.8 percent of its population during the 1960s and already has a low popula
tion fo r each commercial bank office (3,461 persons). Elk C ounty, although
significantly better o ff than McKean C ounty as an em ploym ent center, grew in
population by only 442 people during the decade ending w ith the 1970 census
and had a 1973 median household buying level some 10 percent below the
State level. It presently has one commercial bank office fo r every 4,200 people.
In the event fu tu re economic developments ju s tify additional de novo branch
ing in Elk C ounty, there are tw o banks w ith more than $50 m illio n in deposits,
headquartered in Clearfield C ounty and as yet unrepresented in Elk C ounty,
th a t must be considered potential de novo entrants. For its part, Laurel Bank
has both the financial and managerial resources to accomplish de novo entry
into Warren C ounty, a heavily concentrated banking m arket where the Warren
National Bank has 7 o f 12 offices and Titusville Bank the other 5. Warren
C ounty buying levels are approxim ately 4.7 percent below the statewide level,
its population grew by only 2,100 persons between 1960 and 1970, and it
presently has one commercial bank office fo r every 4,000 residents. While
Warren C ounty w ould appear to be more attractive fox de novo expansion than
either county in which Laurel Bank presently has offices, it remains o f mar
ginal attraction fo r any outside bank. Moreover, in the case of Warren C ounty,
there are five other potential entrants, larger than Laurel Bank and head
quartered in contiguous counties, th a t m ight be considered more likely poten
tial entrants than Laurel Bank should economic developments w arrant addi
tional de novo branches in Warren County. Under all o f these circumstances,
the C orporation considers the possible elim ination o f increased com petition
110
F E D E R A L DEPOSIT INSURANCE CORPORATION
between Titusville Bank and Laurel Bank through de novo branching in the
future to be a relatively insignificant fa cto r in assessing the com petitive im pact
of th e ir proposed merger.
The change in Titusville Bank's headquarters fro m C rawford to Warren
C ounty, which is necessary to consummate the proposed merger, w ill result in
its losing the a u th o rity under Pennsylvania law to expand de novo or by merger
into Mercer C ounty, w hich is located south o f C rawford C ounty adjacent to
the Ohio State line. S im ilarly, by merging Laurel Bank into the relocated
Titusville Bank, the resulting bank w ould lose Laurel Bank's existing a u th o rity
to expand de novo o r by merger into Cameron, Clearfield, and Jefferson Coun
ties. The com petitive im pact o f the proposed merger in each o f these fo u r
counties, however, is like ly to be minim al. Mercer C ounty experienced no
grow th at all in the 1960s, its median household buying level is slightly below
the State average, and its 7 commercial banks presently have 38 offices fo r its
127,225 residents— an average population fo r each commercial bank o ffice o f
only 3,348. Four banks w ith more than $50 m illio n in deposits headquartered
in counties contiguous to Mercer C ounty and presently unrepresented there
w ould remain as potential entrants even if T itusville Bank moves its main office
to Warren C ounty. A similar analysis o f the banking structure of Cameron,
Clearfield, and Jefferson Counties leads to a sim ilar conclusion. Each o f these
counties lost population in the 1960s; Clearfield and Jefferson have median
household buy ng figures more than 20 percent below the State level (Cam
eron's is 5.4 percent higher b u t it has o n ly 7,096 residents); the population fo r
each existing commercial bank o ffice is already low (except in sparsely popu
lated Cameron which has only one commercial bank o ffice ); and each county
has at least one bank w ith deposits over $50 m illio n , headquartered in a con
tiguous county and presently unrepresented there, which must be considered a
potential entrant in the fu tu re , even if Laurel Bank is merged into Titusville
Bank (actually Clearfield C ounty has eight such potential entrants, Cameron
C ounty tw o , and Jefferson C o u n ty— w ith only 2,731 residents fo r each existing
o ffice — one). The C orporation has accordingly concluded th a t the proposed
merger w ould have no adverse com petitive consequences in any of these fo u r
counties.
The proposed merger w ould result in a greater concentration o f commercial
banking resources in the seven-county area o f Pennsylvania w ith in which the
resulting bank could merge or branch de novo (Erie, C rawford, Venango,
Warren, Forest, McKean, and Elk Counties). W ithin th a t area, Titusville Bank
presently holds 13.6 percent o f the total IPC deposits held at commercial bank
offices in the seven counties, w hile Laurel Bank holds 5.9 percent o f such
deposits. The resulting bank, w ith 19.5 percent o f all such deposits, w ould rank
second in this regard, ta ilin g slightly the 21.1 percent share held by The First
National Bank o f Pennsylvania, headquartered in Meadville. There w ould re
main, in addition to these tw o lead banks, however, five other commercial
banks w ith more than $75 m illio n each in local IPC deposits. While the result
ing bank's share o f its largest potential m arket w ould be at a level where any
significant fu tu re acquisitions by merger o f banks it may propose m ight have to
be denied, the C orporation does not view th a t decision as necessary here where
neither significant existing nor significant potential com petition w ould be e lim
inated, where the existing bank structure w ith in the several local markets in
volved w ould n o t be significantly affected, and where some benefits to the
111
BA N K ABSORPTIONS APPROVED BY THE CORPO RATIO N
convenience and needs o f the public can be shown.
On the facts presented, the Board o f Directors is o f the opinion th a t the
proposed merger w ould not, in any section o f the co untry, substantially lessen
com pe tition , tend to create a m onopoly, or in any other manner be in restraint
o f trade.
Financial and Managerial Resources; Future Prospects. Both o f the p a rtici
pating banks have adequate financial and managerial resources, as w ould the
resulting bank. Future prospects fo r the resulting bank w ould be favorable.
Convenience and Needs o f the Community to be Served. The Laurel Bank
customers in McKean and Elk counties w ould benefit from Titusville Bank's
"one statem ent" banking service, fro m the ceiling rates consistently paid by
Titusville Bank on passbook savings and consumer savings certificates, and
from the generally lower service charges it imposes on checking accounts. They
w ould also benefit from a significantly higher lending lim it ($2.3 m illio n as
compared w ith Laurel Bank's present $800,000), while Titusville Bank's busi
ness customers should also fin d the increase in lending lim its (from $1.5 m il
lion to $2.3 m illion) helpful.
Based on the foregoing, the Board o f Directors has concluded th a t approval
o f the application is warranted.
Grenada Bank
Grenada, Mississippi
B a n k in g O ffic e s
R esources
(in
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
T o be
o p e ra te d
165,866
20
22
14,453
2
to merge with
First National Bank o f Greenwood
Greenwood
Summary report by A tto rn e y General, May 22, 1974
The Itta Bena branch o f Grenada Bank is located in a small co m m u n ity o f
2,500 about 10 miles west of Greenwood. It appears th a t there is some com
p etitio n between Grenada Bank and Greenwood Bank in Leflore C ounty.
Greenwood is the commercial center o f the county, and it w ould appear th a t
the banks located there derive business from th roughout Leflore C ounty.
The fo llo w in g banks operate offices in Leflore C ounty:
Bank
Bank o f Greenwood (Branch o f
First National Bank o f Jackson)
Leflore C o u n ty
Deposits (in millions)
6/30/73
$34.8
Share
42.0%
Bank o f Commerce
15.6
18.8
Leflore Bank & T rust Co.
15.3
18.5
Greenwood Bank
11.7
14.1
5.4
6.5
Grenada Bank - Itta Bena Branch
Total
$82.8
100.0%
112
F E D E R A L DEPOSIT INSURANCE CO RPO RATIO N
First National Bank o f Jackson, second largest bank in the State, acquired
Bank of Greenwood in 1969. In addition, Deposit Guaranty National Bank,
Jackson, largest bank in the State, has applied fo r permission to acquire Leflore
Bank & T rust Company.
Absent the recent d iffic u ltie s encountered by Greenwood Bank, therefore,
the proposed merger o f Grenada Bank and Greenwood Bank could have ad
verse effects on com petition, although the extent to w hich the parties compete
w ith each other and w ith other banks fo r banking business th roughout Leflore
C ounty is unclear from the application. The merger w ould combine tw o o f
only five banks operating in the county, creating the second leading bank
therein, holding approxim ately 20.6 percent o f to ta l county deposits. H ow
ever, the bank has been weakened by recent events, which m itigate these
com petitive effects. The application does not disclose to w hat extent merger
w ith other banks outside Leflore C ounty w ould have been possible, and
whether any such merger could have solved Greenwood Bank's problems.
Basis fo r Corporation approval, August 30, 1974
Grenada Bank, Grenada, Mississippi, an insured State nonmember bank w ith
total assets of $165,866,000 and IPC deposits of $129,317,000, has applied,
pursuant to Section 18(c) and other provisions o f the Federal Deposit Insur
ance A ct, fo r the C orporation's prior consent to merge under its charter and
title w ith First National Bank o f Greenwood, Greenwood, Mississippi ("G reen
wood B ank"), w ith total assets o f $14,453,000 and IPC deposits o f
$11,480,000. The main o ffice and only branch of Greenwood Bank w ould
become branches of the resulting bank as an incident to the merger, increasing
to 22 the total number o f its authorized offices.
Competition. Grenada Bank operates offices in 10 counties in northern
Mississippi. The areas p rim a rily served include all or parts o f the counties o f
Grenada, Bolivar, W inston, Tallahatchie, Chickasaw, Calhoun, Choctaw, Le
flore, Sunflower, and Webster. The economy o f this region is predom inantly
agricultural, b u t light industry has assumed greater importance in the past
decade. The 1970 population o f these 10 counties was 236,080, representing a
9.5 percent decrease since 1960. W ith the exception o f Grenada C ounty,
median household buying levels thro u g h o u t the region are substantially below
the State level which itself is the second lowest in the nation.
Greenwood Bank has its main office and one branch in Greenwood (1970
population 22,400, up 9.6 percent since 1960) in Leflore C ounty (1970 popu
lation 42,111, down 10.7 percent since 1960). Leflore C ounty is in n o rth
western Mississippi im m ediately to the east o f S unflow er C ounty. Its economy
is predom inantly agricultural, although some light manufacturing is located in
the c ity o f Greenwood. Its median household buying level income ($5,143) is
25.8 percent below the statewide level ($6,928).
The effects o f the proposed merger w ould be confined almost entirely to
the area w ith in approxim ately 15 miles o f Greenwood. There are 13 com m er
cial banking offices in the service area, and they held aggregate IPC deposits o f
$70,195,000 as o f June 30, 1973. Greenwood Bank had 13.7 percent o f the
total IPC deposits in the service area and the tw o Greenwood offices o f the
First National Bank o f Jackson (the second largest commercial bank in the
State) held 38.3 percent o f such deposits. Bank o f Commerce, Greenwood, and
Leflore Bank & T rust Company, Greenwood, held 18.8 percent and 18.6 per
B A N K ABSORPTIONS APPROVED BY THE CORPO RATIO N
113
cent, respectively. Grenada Bank's Itta Bena office, 10 miles west of Green
w ood, had 6.3 percent o f local IPC deposits, and the resulting bank w ould have
20.0 percent. In view o f the large share o f the local m arket held by the State's
second largest bank and the fact th a t Deposit Guaranty National Bank, the
largest bank in the State, w ill soon succeed to Leflore Bank & T rust Company's
18.6 percent share o f the m arket by merger, the proposed merger o f Grenada
Bank and Greenwood's smallest local bank w ould not have a significant effect
on the local commercial banking structure. While there is some overlap o f areas
served between Greenwood Bank and Grenada Bank's Itta Bena office, their
locations w ould indicate th a t no significant existing co m petition between them
would be eliminated by their proposed merger.
The possibility o f increased co m petition in the fu tu re between the merging
banks exists, b u t such increased com petition is not regarded as probable.
Mississippi law w ould perm it Grenada Bank to branch de novo in to Green
wood, b u t this is u n like ly to be very attractive to Grenada Bank: the existing
population per banking office in Greenwood is only 2,240, the State's tw o
largest banks w ill both be in an established com petitive position, and a low
median household buying level prevails. For its part, Greenwood Bank lacks
the financial and managerial resources to attem pt de novo branching into areas
served by Grenada Bank. Its com petitive position has also been eroded in the
past 2 years by well-publicized misappropriations o f bank funds by form er
staff members and disclosure of the bank's involvement in certain bogus trans
actions.
In its m aximum potential market, w hich under State law is th a t p o rtio n o f
Mississippi w ith in a 100-mile radius o f Grenada, Grenada Bank controlled only
5.2 percent of the total IPC deposits held by all offices o f the 114 commercial
banks represented there. The proposed merger would increase this share to 5.6
percent. In the State as a whole, Grenada Bank holds only 3.0 percent o f all
Mississippi commercial bank IPC deposits, and the proposed merger w ould raise
this figure to 3.3 percent. In view o f these figures, it appears th a t the proposed
merger w ould have no significant e ffe ct on the structure o f commercial bank
ing in any relevant area.
Based on the foregoing, the Board o f Directors is o f the opinion th a t the
proposed merger w ould not, in any section o f the co untry, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future Prospects. Grenada Bank has
adequate financial and managerial resources. Greenwood Bank has had p ro b
lems w ith its financial and managerial resources which the proposed merger
w ould resolve. The resulting bank w ould have satisfactory financial and man
agerial resources and favorable future prospects.
Convenience and Needs o f the Community to be Served. The proposed
merger w ould bring to Greenwood Bank's customers a broader selection o f
banking services w hich include a lending lim it o f nearly $1.5 m illio n , tru st and
com puter services, and the general banking expertise o f a com petent staff o f
experienced banking personnel. It should also stimulate com p e titio n w ith the
First National Bank o f Jackson's branches as well as the State's largest com m er
cial bank w hich w ill soon be represented locally. This could have a salutary
effect on the qua lity o f banking services offered to Greenwood residents and
businessmen.
114
F E D E R A L DEPOSIT INSURANCE CO RPO RATIO N
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.
R eso u rce s
(in
th o u s a n d s
o f d o lla rs )
First-Citizens Bank & Trust Company
1,175,033
B a n k in g O ffic e s
In
o p e r a tio n
200
T o be
o p e ra te d
202
Raleigh, N orth Carolina
to merge with
The Bank of Commerce
9,635
1
6,010
1
Charlotte
and
The Bank of Coleridge
Ramseur
Summary report by A tto rn e y General, May 16, 1974
The im pact o f this proposed transaction w ill be fe lt prim a rily in the c ity o f
Charlotte, Mecklenburg C ounty, where A p p lica n t operates 12 offices and Bank
maintains its only office. A pplicant's nearest branch is located about one block
from Bank's (o f Commerce) headquarters office. Thus, the proposed merger
w ould eliminate some existing com petition.
A pplicant ranks fo u rth among the 14 banks w ith offices in C harlotte h o ld
ing approxim ately 3 percent o f to ta l c ity deposits. Bank (o f Commerce) ranks
ninth among the 14 banks in the c ity , accounting fo r less than 1 percent o f
total c ity deposits. Thus, w hile the proposed merger w ould elim inate existing
com petition between A p p lica n t and Bank (o f Commerce) in Charlotte and in
surrounding Mecklenburg C ounty, it does not appear th a t the transaction
would substantially increase concentration in commercial banking in th a t area.
A ccordingly, we conclude th a t the proposed transaction w ould not have a
substantial com petitive impact.
Summary report by A tto rn e y General, May 15, 1974
A pplicant's office nearest Bank (o f Coleridge) is located in Thomasville,
Davidson C ounty, about 27 miles northwest o f Ramseur. Thus, it does not
appear th a t the proposed transaction w ould eliminate substantial existing com
petition. And w hile A p p lica n t could legally establish de novo branches in the
Randolph C ounty area served by Bank (o f Coleridge), the latter's small abso
lute size and modest m arket position in Randolph C ounty dim inish the effect
o f this proposed merger on potential com petition.
Therefore, we conclude th a t the proposed transaction w ould n o t have a
substantial com petitive impact.
Basis fo r C orporation approval, August 30, 1974
First-Citizens Bank & T rust Company, Raleigh, N orth Carolina ("C itiz e n s "),
an insured State nonmember bank w ith to ta l resources o f $1,175,033,000 and
BA N K ABSORPTIONS APPROVED BY THE CORPORATION
115
IPC deposits o f $803,305,000, has filed applications, pursuant to Section 18(c)
and other provisions o f the Federal Deposit Insurance A ct, seeking the Cor
poration's prior w ritte n consent to Citizens' mergers under its charter and title
w ith the fo llo w in g tw o banks:
(1) The Bank o f Commerce, Charlotte, N orth Carolina ("B ank o f Com
m erce"), a State member bank w ith total resources o f $9,635,000
and IPC deposits o f $6,557,000; and
(2) The Bank o f Coleridge, Ramseur, N orth Carolina ("B ank o f Cole
ridge"), an insured State nonmember bank w ith to ta l resources o f
$6,010,000 and IPC deposits o f $4,809,000.
As an incident to each merger, the sole office o f each o f the latter tw o
banks would be established as a branch of the resulting bank.
Competition. Citizens is the fo u rth largest commercial bank in N orth Caro
lina. It has some 200 offices w idely distributed throughout the State and holds
8.53 percent o f the State's total commercial bank deposits. The control share
holders o f Citizens have owned a co n tro llin g share o f Bank o f Commerce since
1966 and purchased control o f Bank o f Coleridge in November 1973.
Bank o f Commerce has its sole office in C harlotte (population 241,178), the
largest c ity in N orth Carolina and the leading center o f trade in the Carolina. A
total of 22 commercial banks have 191 offices in the Charlotte-Gastonia
SMSA, a 3-county m etropolitan area o f which C harlotte is the core city . O f the
IPC deposits held by these offices, Bank o f Commerce has the 15th largest
share, 0.3 percent, w hile Citizens has the 6th largest share, 3.3 percent. The
major IPC deposit shares o f this market, 50.1 percent, 18.0 percnet, and 10.3
percent, are held by the second, th ird , and firs t largest o f N orth Carolina's
commercial banks, respectively.
In the c ity o f C harlotte, Citizens has a total o f 12 branches, including 2 in
close p ro x im ity to Bank o f Commerce's only office. While the three offices
obviously draw fro m an overlapping area, the proposed merger o f Citizens and
Bank o f Commerce w ould have scant com petitive significance in view o f the
very small share o f the market Bank of Commerce holds, the area deposits
concentrated in the State's three larger banks, and the presence in the SMSA o f
many convenient alternatives fo r banking service. Citizens, fo llo w in g the
merger, w ould hold 3.6 percent o f the IPC deposits o f all commercial bank
offices in the SMSA and in this respect would continue to have the sixth largest
share o f the market.
Bank o f Coleridge operates its sole office in Ramseur (population 1,328), a
textile tow n in central N orth Carolina some 29 road-miles south o f Greensboro
and 60 road-miles west o f Raleigh. W ithin a 15-road-mile radius o f Ramseur, 8
commercial banks now maintain a total of 19 offices. Bank of Coleridge has
the fifth largest share, 4.5 percent, o f area IPC deposits held by these banks.
The F id e lity Bank, headquartered in Fuquay-Varina and recently affiliated
w ith Bank o f Coleridge through common ownership, has a branch in L ib e rty,
some 10 road-miles northeast o f Ramseur. This branch holds 1.5 percent o f the
IPC deposits held by commercial bank offices in the m arket area served by
Coleridge. Combined the m arket shares o f Bank o f Coleridge and The F id e lity
Bank, 6.0 percent, represent the fifth largest share o f the relevant market,
substantially smaller than the fo u r larger shares, 30.2 percent, 27.5 percent,
22.4 percent, and 11.9 percent.
116
F E D E R A L DEPOSIT INSURANCE CORPORATION
There appears to be no significant existing com petition between Citizens
and Bank o f Coleridge. A lthough Citizens has nine branches in Greensboro,
some 29 road-miles north o f Ramseur, and one branch in Pittsboro, a similar
distance east o f the tow n (no other branch of Citizens is closer to Ramseur),
other banks intervene in both directions.
It fu rth e r appears th a t neither o f the proposed mergers w ould result in the
elim ination of any significant potential com petition between the three banks
involved. Bank o f Commerce and Citizens have such small shares of the
Charlotte-Gastonia market, and there are so many other banks in the market,
that the merger o f these tw o should have almost no e ffect on the establishment
of de novo offices in the m arket in the future, thereby assuring vigorous
com petition. In the case o f Bank of Coleridge, its banking market presently has
one commercial banking office fo r each 2,000 inhabitants, a factor w hich
would be likely to deter any e ffo rt by Citizens to enter this market de novo in
the foreseeable future.
As previously noted, Citizens has 8.53 percent (the fo u rth largest share) o f
the aggregate deposits held on June 30, 1974, by all commercial banks in
N orth Carolina. The three largest banks in the State held 21.56 percent, 18.41
percent, and 12.56 percent, respectively, o f such deposits. Citizens' share o f
such deposits w ould increase 0.07 percent by its merger w ith Bank o f Com
merce and 0.05 percent by its merger w ith Bank o f Coleridge. The resulting
share, 8.65 percent, w ould continue to be substantially less than those o f its
three larger com petitors.
For the reasons stated, the Board of Directors is o f the opinion th a t the
proposed mergers w ould not, in any section o f the country, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.*
Financial and Managerial Resources; Future Prospects. The financial re
sources o f Citizens, Bank o f Commerce, and Bank o f Coleridge are adequate.
Managerial resources of Citizens are satisfactory. Future prospects o f the result
ing bank are favorable.
Convenience and Needs o f the Communities to be Served. In the c ity o f
C harlotte, the merger o f Citizens and Bank o f Commerce w ould appear to have
insufficient significance to weigh either in favor o f or against approval o f the
proposed transaction. Citizens' acquisition o f Bank o f Coleridge has already
resulted in a more aggressive management at the Ramseur location. This man
agement, operating w ith a greatly increased credit capability, a much larger
lending lim it, and offering the specialized loan and tru st services of one o f the
State's major banks, should serve to stim ulate com petition in the local market
to the benefit o f inhabitants and businessmen alike.
Based on the foregoing, the Board o f Directors has concluded th a t approval
o f the tw o applications is warranted.
* T h e C o r p o r a tio n , d u r in g c o n s id e ra tio n o f th e s u b je c t a p p lic a tio n s , has ig n o re d th e f a c t
th a t a ll th re e b a n k s are p re s e n tly u n d e r c o m m o n c o n t r o l, s in c e th e a c q u is itio n o f s to c k
c o n t r o l in B a n k o f C o m m e rc e a n d B a n k o f C o le rid g e has n o t p re v io u s ly been re v ie w e d
u n d e r th e B a n k M e rg e r A c t (as a m e n d e d ).
117
BA N K ABSORPTIONS APPROVED BY THE CORPORATION
The State Bank of Avis
B a n k in g O ffic e s
R esources
(in
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
T o be
o p e ra te d
21,963
2
3
4,247
1
Avis, Pennsylvania
to merge with
The Loganton National Bank
Loganton
Summary report by A tto rn e y General, May 3, 1974
The parties to this proposed merger are both headquartered in C linton
C ounty. Loganton Bank is situated in the southeastern part o f the county
about 21 miles southwest o f Avis Bank's headquarters and approxim ately 10
miles southeast o f Avis Bank's W oodward Township branch. Thus, the pro
posed acquisition may eliminate some existing com petition in southeastern
C linton C ounty. However, it does not appear th a t the proposed transaction
would substantially increase banking concentration in any relevant market.
Basis fo r C orporation approval, August 30, 1974
The State Bank o f Avis, Avis, Pennsylvania ("A vis B ank"), a State non
member insured bank w ith total resources of $21,963,000 and total IPC de
posits of $17,044,000, has applied, pursuant to Section 18(c) and other pro
visions o f the Federal Deposit Insurance A ct, fo r the C orporation's prio r
consent to merge w ith The Loganton National Bank, Loganton, Pennsylvania
("Loganton B ank"), w ith total resources o f $4,247,000 and total IPC deposits
of $3,702,000. These banks would merge under the charter and title of Avis
Bank and, as an incident to the merger, the sole office of Loganton Bank
w ould be established as a branch o f the resulting bank, thereby raising to three
the total number o f its offices.
Competition. Avis Bank operates its main office in Avis Borough (1970
population 1,749) and its only branch in Woodward Township (1970 popula
tion 2,427), 7 miles southwest o f the main office, both in southeastern C linton
C ounty. Population of this central Pennsylvania county totaled 37,721 in
1970, virtu a lly unchanged from 1960. Much o f the county's northern po rtio n
is mountainous, sparsely populated State forest and game lands. The popula
tion is concentrated in the southern half o f the county, in residential-industrial
com m unities o f the Susquehanna River Valley. Avis Bank serves southern C lin
ton C ounty and the borough o f Jersey Shore and its close environs in adjoining
southwestern Lycom ing C ounty, all o f w hich are com m unities north of the
Susquehanna River. In these com m unities and in Lock Haven (1970 population
11,427), Avis Bank competes w ith three significantly larger banks and one o f
approxim ately the same deposit size. The 1973 median buying levels in both
C linton C ounty ($8,492) and Lycom ing C ounty ($8,567) were both signifi
cantly below those o f the State as a whole ($9,588).
Loganton Bank serves comm unities along the extreme southern border o f
C linton C ounty, south of the Susquehanna River and separated fro m W ood
ward, Avis, and Jersey Shore by d iffic u lt m ountain terrain. The bank alter
natives closest to Loganton (1970 population 436) are the M ill Hall branch o f
the $89.9-m illion-deposit Central Counties Bank, 13 road-miles northwest o f
118
F E D E R A L DEPOSIT INSURANCE CORPORATION
Loganton, and the Rebersburg Branch o f the $43.8-m illion-deposit The Peoples
National Bank o f Central Pennsylvania, 11 miles southwest o f Loganton.
The main office o f Avis Bank and its branch are, respectively, 22 road-miles
north and 19 road-miles northwest, of Loganton. A lthough it appears th a t the
area served by Avis Bank overlaps th a t o f Loganton Bank, neither draws any
significant volume o f business from the service area o f the other, and the
terrain places them in essentially separate markets. A ccordingly, no significant
existing com petition would be eliminated by their proposed merger.
Although Pennsylvania law permits both banks to branch de novo th ro u g h
o u t C linton C ounty and the six adjoining counties, there appears to be minim al
potential fo r increased com petition between them in the fu tu re by this means
o f expansion. Loganton Bank w o u ld be inhibited fro m such de novo a ctivity
by a lack of financial and managerial resources. Avis Bank, fo r its part, w ould
not find de novo entry into the Loganton market attractive because o f the
sparse population and low income levels prevailing.
W ithin the 7-county region in w hich Avis Bank may expand de novo or by
merger (its maximum m arket since State law does not perm it operation o f
m ulti-bank holding companies), a total o f 42 commercial banks operate 97
offices and held area IPC deposits on June 30, 1973, aggregating $849.7 m il
lion. Avis Bank had 2.1 percent— the 16th largest share— of such deposits. The
resulting bank would hold only 2.5 percent— the 13th largest share— of such
deposits.
Under these circumstances, the Board o f Directors is o f the opinion th a t the
proposed merger w ould not, in any section o f the country, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future Prospects. The resulting bank
would have adequate financial and managerial resources. Its future prospects
would be satisfactory.
Convenience and Needs o f the Community to be Served. Effects of the
proposed merger w ould be most apparent in the Loganton market. The merger
w ould make available services of an in s titu tio n whose lending capability
($215,000 rather than $31,000) and more aggressive management should con
trib u te to the area's development, meanwhile stim ulating com petition w ith
neighboring banks.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.
R esources
(in
th o u s a n d s
o f d o lla rs )
American Bank and Trust Co. of Pa.
B a n k in g O ffic e s
In
o p e r a tio n
1,017,510
48
12,279
2
Reading, Pennsylvania
to merge with
State Bank of Paradise
Paradise
T o be
o p e ra te d
50
BA N K ABSORPTIONS APPROVED BY THE CORPORATION
119
Summary report by A tto rn e y General, May 17, 1974
American Bank's tw o Lancaster C ounty offices are located in western and
northeastern Lancaster C ounty, respectively, and account fo r approxim ately 3
percent o f total county deposits. Tw o offices, to be located in the c ity o f
Lancaster in the central part o f the county, have been approved b u t not
opened. Paradise Bank's main office is located about 10 miles southeast o f
Lancaster C ity, and its Greenfield branch is located just outside the Lancaster
city lim its. The nearest offices o f the parties, American Bank's Columbia
branch and the Paradise Bank's Greenfield branch, are separated in the in te r
vening area.
A lthough American Bank can be expected to continue to increase its com
petitive efforts in Lancaster C ounty, we do not believe that the proposed
transaction w ould result in any significant elim ination o f com petition or in
crease in banking concentration therein.
Basis fo r C orporation approval, August 30, 1974
American Bank and Trust Co. o f Pa., Reading, Pennsylvania ("A m e ric a n "),
a State nonmember insured bank w ith total resources o f $1,017,510,000 and
total IPC deposits of $786,619,000, has applied, pursuant to Section 18(c) and
other provisions o f the Federal Deposit Insurance A ct, fo r the C orporation's
prior consent to merge w ith State Bank o f Paradise, Paradise, Pennsylvania
("Paradise B ank"), w ith total resources o f $12,279,000 and to ta l IPC deposits
of $10,831,000, under the charter and title o f American. As an incident to the
merger, the main office and only branch of Paradise Bank w ould become
branches of the resulting bank, increasing the number o f its authorized offices
to 52.
Competition. American operates 48 offices in the 7 counties where it may
legally branch or merge under Pennsylvania law, i.e., Berks, Chester, Lancaster,
Lebanon, Lehigh, Montgomery, and S chuylkill Counties. U n til recently, A m er
ican had only tw o offices in Lancaster C ounty, located at opposite ends o f the
county. In August, however, it established a de novo branch in western Lan
caster city . American also has approval to establish one more de novo branch in
dow ntow n Lancaster and one de novo branch in Berks C ounty. American is an
aggressive, full-service bank w ith a large trust department.
Paradise Bank operates its main office in Paradise (1970 population 3,751),
about 10 miles east of Lancaster (1970 population 57,690, a decline o f 5.5
percent from 1960), and its only branch is located in a residential area in
eastern Lancaster.
The c ity o f Lancaster is centrally located in Lancaster C ounty, w hich is
coterminous w ith the Lancaster SMSA. The county had a 1970 population o f
320,079, an increase o f 15.0 percent from 1960, far in excess o f the 4.2
percent increase fo r the State as a whole. The 1973 median household buying
level fo r Lancaster C ounty was $9,901, some 3.3 percent higher than the State
figure. Lancaster C ounty is economically active and has a wealth o f good
farmland as well as a significant industrial base. As the home of the Penn
sylvania D utch, the county is also one o f the major to u rist attractions in the
United States.
The effects of the proposed merger w ould be confined to Lancaster C ounty.
Seventeen commercial banks operate 85 offices in the county, and the 4 largest
such banks (in terms of the local deposit market) control 64.9 percent o f the
120
F E D E R A L DEPOSIT INSURANCE CO RPORATION
$875 m illion aggregate in commercial bank IPC deposits. American has a m od
est presence in the m arket at this tim e w ith only 3.1 percent o f such aggregate
IPC deposits. The addition of Paradise Bank's 1.1 percent share o f the market
to American's small share w ould obviously n o t disturb the local structure o f
commercial banking.
The closest existing office of American to either office o f Paradise Bank is
its newly opened branch on the west side o f the c ity o f Lancaster, and many o f
the city's commercial banking offices lie in between. Further, neither o f the
participating banks generates any significant volume o f business from areas
presently served by the other. The proposed merger therefore w ould not e lim i
nate any significant existing com petition between the tw o banks.
The proposed merger would eliminate the potential fo r increased com
petition to develop between American and Paradise Bank in the future. A l
though Paradise Bank has only lim ited financial and managerial resources fo r
de novo expansion into areas served by American, the latter clearly has the
capacity fo r such expansion w ith in the market as demonstrated by the fact
that it recently established one de novo branch and has another under con
struction in the c ity o f Lancaster. The latter is expected to be opened this year,
and it is only about 4 miles west o f Paradise Bank's branch. However, in view
of the numerous commercial banking offices which lie between these tw o
locations, the small share o f the Lancaster C ounty m arket the resulting bank
w ould have, and the numerous potential entrants presently unrepresented in
Lancaster C ounty, the elim ination o f this potential com petition is not viewed
as com petitively significant.
W ithin the 7-county area where American may branch or merge, there are
over 500 offices o f 81 commercial banks. As o f June 30, 1973, these offices
held over $5 b illio n in to ta l IPC deposits, w ith American having 13.1 percent
of the total commercial bank IPC deposits held in these 500-plus offices. While
American's percentage o f such deposits places it in the first-ranking position,
there are six commercial banks w ith total resources in excess o f$ 1 b illio n each
(including three w ith total resources over $2.5 b illion) which operate, or have
the a u th o rity to operate, offices in fo u r o f the seven counties in which A m er
ican has offices (Chester, Berks, Lehigh, and M ontgom ery Counties). In addi
tion, another 22 commercial banks, each w ith total resources in excess o f $100
m illion may branch into various portions of American's trade area. Thus,
American is faced w ith many significant com petitors throughout its service
area, and the proposed merger, which w ould add only 0.2 percent to A m er
ican's share o f commercial bank IPC deposits w ith in the seven-county area,
w ould not significantly affect the structure o f commercial banking in this
larger area.
Based on the foregoing, the Board o f Directors is o f the opinion th a t the
proposed merger would not, in any section o f the co untry, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
o f trade.
Financial and Managerial Resources; Future Prospects. Both banks have
satisfactory financial and managerial resources fo r the business they do as
independent institutions, and the same w ould be true o f the resulting bank.
Convenience and Needs o f the Community to be Served. Consummation o f
the proposed merger w ould bring to customers o f Paradise Bank the broad
range of services o f a large commercial bank, such as significantly larger lending
BA N K ABSORPTIONS APPROVED BY THE CORPO RATIO N
121
lim its, bank credit card services, com puter services, trust services, and a more
complete line o f credit services.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.
Northeastern Bank of Pennsylvania
R esources
(in
th o u s a n d s
o f d o lla rs )
B a n k in g O ffic e s
In
o p e r a tio n
T o be
o p e ra te d
475,717
13
14
30,459
1
Scranton, Pennsylvania
to merge with
The Plymouth National Bank
Plym outh
Summary report by A tto rn e y General, May 6, 1974
Northeast Bank operates three offices in Luzerne C o u n ty— one in WilkesBarre in the north-central part o f the county and tw o in Hazleton in the far
southern part o f the county. Plym outh National Bank is located approxim ately
4 miles west o f Northeast Bank's Wilkes-Barre office and 20 miles northeast o f
Northeast Bank's Hazleton offices. The proposed acquisition w ould appear to
eliminate existing com petition between the banks in the northern part o f the
county, particularly in the Wilkes-Barre area, and w ould somewhat increase
concentration in commercial banking therein.
Basis fo r C orporation approval, August 30, 1974
Northeastern Bank of Pennsylvania, Scranton, Pennsylvania (" N o rth
e a s te rn "), a State nonmember insured bank w ith total resources o f
$475,717,000 and to ta l IPC deposits o f $383,043,000, has applied, pursuant
to Section 18(c) and other provisions o f the Federal Deposit Insurance A ct, fo r
the C orporation's prior consent to merge under its charter and title w ith The
P lym outh National Bank, Plym outh, Pennsylvania ("P lym o u th N a tio n a l"),
w ith total resources of $30,459,000 and total IPC deposits o f $25,152,000.
Northeastern, as an incident to the merger, w ould establish the sole office o f
Plym outh National as a branch. The resulting bank w ould have a to ta l o f 14
offices.
Competition. Northeastern operates a to ta l o f 13 offices: its main office and
4 branches in Lackawanna C ounty, 5 branches in Monroe C ounty, and 3
branches in Luzerne C ounty. Northeastern is the largest commercial bank oper
ating in this three-county region o f northeastern Pennsylvania, although tw o
other commercial banks, both w ith extensive representation w ith in the market,
individually control IPC deposits in their area offices o f more than $235 m il
lion.
Plym outh National maintains its sole office in P lym outh Borough (1970
population 9,536— down 8.3 percent from 1960) in Luzerne C ounty. This
county is a portio n o f a region w hich was dominated fo r many years by
anthracite mining u n til this industry declined during the 1950s and early 1960s.
Presently the te xtile industry offers em ploym ent to many local residents w hile
122
F E D E R A L DEPOSIT INSURANCE CO RPO RATIO N
others fin d w ork in Wilkes-Barre (1970 population 58,856), the county seat
and center o f trade, located some 5 road-miles northeast o f Plym outh. Income
levels of the county are about 13 percent below the State level. Economic
recovery in the area has been fu rth e r hampered by the lingering effects o f
1972's severe flo o d damage.
The proposed merger w ould have its most immediate and direct im pact
w ith in a 10-mile radius o f P lym outh along the Susquehanna River Valley to
ward P ittston on the northeast and Nanticoke to the southwest. This relatively
populous banking m arket includes Wilkes-Barre b u t n o t Scranton. Fifteen com
mercial banks operate a total of 45 offices in this relevant geographic market
w ith IPC deposits aggregating approxim ately $900 m illion. P lym outh National
has the ninth largest share (2.9 percent) of these deposits; Northeastern, the
sixth largest share (4.4 percent). The tw o largest IPC deposit shares, 31.1
percent and 20.4 percent, are held, respectively, by the $348.6-m illion-IPC deposit United Penn Bank and the $259.1-m illion-IPC -deposit The First Na
tional Bank of Eastern Pennsylvania, w hich between them also have about half
o f the commercial bank offices in the market. Both o f these banks are head
quartered in Wilkes-Barre. The banks w ith the th ird and fo u rth largest shares o f
this local banking m arket hold, respectively, 9.7 percent and 8.2 percent o f
such IPC deposits. The resulting bank w ould hold the fifth largest share (7.3
percent) o f such commercial bank IPC deposits.
The merging banks each have one office in this relevant geographic market,
and these offices are located about 4 miles apart, although they are separated
by the Susquehanna River. Given prevailing com m uting patterns, it appears
that some existing co m petition between the tw o banks w ould be eliminated by
their proposed merger, b u t this appears to have lim ited com petitive significance
in view o f the small share o f area IPC deposits held by P lym outh National and
the number of convenient alternatives fo r banking services w hich w ould remain
in the relevant market fo llo w in g consumm ation of the proposed merger.
A commercial bank in Pennsylvania may legally branch de novo or merge
throughout the county where its main office is located and all counties con
tiguous thereto. Thus, Northeastern and Plym outh National may establish de
novo offices at locations w hich w ould result in increased com petition between
them. Plym outh National, however, has operated as a u n it bank fo r many years
and is now under the conservative policies of an aging management; it is not
likely to engage in any significant de novo expansion. Northeastern, w ith more
promising locations available elsewhere fo r de novo branching, appears u n like ly
to increase the number o f its offices w ith in Plym outh National's market in
view o f the declining population, substantially below average buying levels, and
sluggish economy. L ittle potential fo r increased com petition between the tw o
banks through de novo branching in the future is likely to be elim inated,
therefore, by the proposed merger.
W ithin the 6-county region in which Northeastern may expand de novo or
by merger (its m aximum potential market since Pennsylvania law does not
perm it the operation of m ultibank holding companies), a to ta l o f 52 com m er
cial banks now operate 164 offices and hold area IPC deposits aggregating
$2,343 m illio n . Northeastern has the largest share (15.4 percent) o f such de
posits and 7.9 percent o f the commercial bank offices in the region. The
proposed merger w ould increase Northeastern's IPC deposit share o f this mar
ket to 16.5 percent, w hile the fo u r next ranking banks would hold in the
B A N K ABSORPTIONS APPROVED BY THE CORPO RATIO N
1 23
aggregate 32.7 percent o f such deposits. This six-county region is, thus, n o t one
o f substantial concentration, and the proposed merger w ould n o t have a signifi
cant adverse effect on commercial bank structure in the region.
Under these circumstances, the Board o f Directors is o f the opinion th a t the
proposed merger w ould not, in any section o f the co untry, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future Prospects. The resulting bank
w ould have adequate financial and managerial resources. Its future prospects
w ould be satisfactory.
Convenience and Needs o f the Community to be Served. The merger w ould
result in no significant change in the services now available to Northeastern's
customers. Customers o f P lym outh National, however, w ould benefit fro m an
expansion o f commercial bank services, including a greatly increased lending
lim it and more sophisticated loan services, as well as trust facilities and com
puter services.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.
United Penn Bank
B a n k in g O ffic e s
R esources
(n
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
T o be
o p e ra te d
428,050
18
20
12,914
2
Wilkes-Barre, Pennsylvania
to purchase the assets an d assume
the deposit liabilities o f
The Miners Bank and Trust Company
of West Hazleton, Pa.
West Hazleton
Summary report by A tto rn e y General, August 29, 1974
United Penn currently has no offices in Lackawanna C ounty. The main
offices o f the parties are located approxim ately 20 miles apart. Their nearest
branches are separated by a distance o f about 10 miles, w ith several com peti
tive alternatives in the intervening area. A lthough the proposed merger may
eliminate some existing com p e titio n , it does not appear th a t concentration
would be substantially increased in any relevant banking market.
While United Penn, the largest bank in Luzerne C ounty, may legally branch
de novo into the area served by Westside Bank, the economy of th a t area has
been on the decline since 1930. While there are currently some signs o f im
provement, the region is not one o f the stronger grow th centers o f Penn
sylvania. Lackawanna C ounty is currently served by 16 other banks; Westside
Bank is fifth largest w ith only 4.8 percent o f total deposits. In view o f its
relatively modest m arket position, we conclude th a t the proposed transaction
would not eliminate significant potential com petition.
124
F E D E R A L DEPOSIT INSURANCE CORPORATION
Basis fo r C orporation approval, August 30, 1974
United Penn Bank, Wilkes-Barre, Pennsylvania ("U n ite d Penn"), a State
nonmember insured bank w ith to ta l resources o f $428,050,000 and total IPC
deposits of $348,622,000, has applied, pursuant to Section 18(c) and other
provisions o f the Federal Deposit Insurance A ct, fo r the C orporation's prio r
w ritte n consent to purchase the assets of, and assume the lia b ility to pay
deposits made in, The Miners Bank and Trust Company o f West Hazleton, Pa.,
West Hazleton, Pennsylvania ("M iners B a n k"), a State nonmember insured
bank w ith total resources o f $12,914,000 and IPC deposits of $11,818,000,
under the charter and w ith the title o f United Penn. The main office and only
branch o f Miners Bank w ould become branches o f the resulting bank, in
creasing the number o f its offices to 20.
Competition. United Penn is now operating 18 banking offices in 3 n o rth
eastern Pennsylvania counties. The main office and 10 branches are located in
Wilkes-Barre and the W yoming Valley area in central Luzerne C ounty, 3
branches are in W yoming C ounty, and there are 4 branches in Columbia C oun
ty. Miners Bank operates its main office and only branch in West Hazleton, in
the extreme southern portion o f Luzerne C ounty.
The population o f Luzerne C ounty declined 1.3 percent in the decade pre
ceding 1970 fro m 346,972 to 342,301. During the same period o f tim e the
population o f the c ity of Wilkes-Barre declined 7.4 percent from 63,551 to
58,856. Form erly dependent upon anthracite mining and its transport, the
county now has diversified industrial a ctivity. Income levels in Luzerne C ounty
are about 12.7 percent below the statewide level. West Hazleton's 1970 popula
tion was 6,059, dow n 3.5 percent fro m 1960. It is adjacent to Hazleton which
had a 1970 population o f 30,426, o ff 5.1 percent from 1960.
The local banking market which w ould be most affected by the proposed
transaction may be approxim ated by the area which includes West Hazleton,
Hazleton, Conygham, Drums, and Nuremberg. In this market, there are 18
offices o f 6 commercial banks w hich have an aggregate o f $198 m illio n in IPC
deposits. Miners Bank, an unaggressive com petitor, has 5.6 percent o f these
deposits, the fifth largest share, and is by far the smallest commercial bank
represented there. Four of the banks represented in Miners Bank's m arket are
among the 10 largest in United Penn's legal branching area, and 2 o f these are
larger than United Penn in terms o f total deposits. Inasmuch as United Penn is
not now represented in the local market and is succeeding to a relatively small
share o f local IPC deposits, the proposed transaction should have no adverse
effect on the local commercial banking structure and may in fact stimulate
com petition locally.
The closest offices o f United Penn to offices of Miners Bank are at Berwick,
about 15 miles west of West Hazleton, and M ountaintop, about 18 miles north
of West Hazleton. Rugged terrain separates these locations from West Hazleton,
and each is naturally oriented to other areas. Further, each bank derives only a
nominal am ount o f business fro m areas served by the other. It is apparent th a t
United Penn and Miners Bank operate in d iffe re n t banking markets and th a t
the proposed transaction w ould not eliminate any significant existing com peti
tion between them .
While Pennsylvania law w ould legally entitle either bank to branch de novo
into areas presently served by the other, this does no t appear to bo probable
BA N K ABSORPTIONS APPROVED BY THE CORPO RATIO N
125
under the circumstances presented. Miners Bank recently demonstrated its in
ab ility to pursue this course when it was forced to abandon plans fo r a de novo
branch in Slocum Township, Luzerne C ounty, because it was unsuccessful in
raising the required capital which was a co n d itio n o f the approval. United Penn
undoubtedly has the resources fo r de novo branching, b u t it is u n likely to seek
to enter the Hazleton area in this manner because of the declining population,
the lower-than-average income levels, and the d iffic u lty and expense o f pene
trating a new m arket w hich already has a number o f significant com petitors.
There are undoubtedly other more attractive areas w hich United Penn w ould
choose to more effectively utilize its resources. The proposed transaction there
fore w ould not elim inate any significant potential fo r increased co m petition in
the fu tu re between United Penn and Miners Bank as a result o f de novo
branching.
W ithin the 8-county area where United Penn may legally establish branches
(its greatest potential m arket), 71 commercial banks operate 224 offices. A
Scranton-based bank holds the largest share of this market, w ith 12.4 percent
o f the area's tota l IPC deposits. The second largest share, 11.4 percent, is held
by United Penn, and its share after consumm ation o f the proposed purchase
and assumption w ould be 11.8 percent.
Under these circumstances, the Board o f Directors is o f the opinion th a t the
proposed transaction w ould not, in any section o f the co untry, substantially
lessen com petition, tend to create a m onopoly, or in any other manner be in
restraint o f trade.
Financial and Managerial Resources; Future Prospects. United Penn has, and
the resulting bank w ould have, adequate financial and managerial resources,
and each has favorable future prospects. Miners Bank's fu tu re prospects w ould
appear to be more favorable as part o f the resulting bank than operating
independently.
Convenience and Needs o f the Community to be Served. Customers o f
Miners Bank w ould benefit fro m a fu ll range o f specialized lending services, a
considerably larger lending lim it, trust services, credit card services, and higher
rates o f interest paid on savings and tim e deposits. The general public in the
Hazleton area should benefit fro m a more com petitive banking environm ent.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.
C om m unity Banking Company
N orth Branford, C onnecticut
B a n k in g O ffic e s
R esources
(vin
in
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
T o be
o p e ra te d
26,020
5
8
13,438
3
to merge with
Deep River Bank and Trust Company
Deep River
F E D E R A L DEPOSIT INSURANCE CORPO RATIO N
126
Summary report by A tto rn e y General, June 19, 1974
C om m unity Banking's offices are located in southern C onnecticut in the
area east of New Haven. Deep River Bank's offices are about 15 miles east o f
C om m unity Banking's nearest office in Madison. There appears to be some
com petition between these banks, especially in the intervening towns of Killingw orth, C linton, and Westbrook. However, it does not appear th a t the pro
posed merger w ould substantially increase concentration in commercial bank
ing in any relevant market. Thus, we conclude that the proposed transaction
w ould not have a significant adverse effect on com petition.
Basis fo r C orporation approval, September 18, 1974
C om m unity Banking Company, N orth Branford, C onnecticut ("C o m m u n
ity " ) , an insured State nonmember bank w ith total resources of $26,020,000
and IPC deposits of $19,415,000, has applied, pursuant to Section 18(c) and
other provisions o f the Federal Deposit Insurance A ct, fo r the C orporation's
prio r consent to merge w ith Deep River Bank and Trust Company, Deep River,
C onnecticut ("D eep R ive r"), w ith total resources o f $13,438,000 and IPC
deposits o f $10,043,000. The banks would merge under the charter o f Com
m un ity and the three offices o f Deep River w ould be operated as branches o f
the resultant bank. C om m unity has also applied fo r consent to exercise fu ll
trust powers.
Competition. C om m unity operates a total o f five offices: fo u r are located in
New Haven C ounty (population 744,948) and one is in Middlesex C ounty
(population 115,018). C om m unity also has regulatory approval fo r one addi
tional branch to be located in New Haven C ounty. Each o f Deep River's three
offices is located in Middlesex C ounty. Both counties are located in the southcentral area of the State and each experienced healthy population grow th in
the 1960s. C om m unity and Deep River both serve prim arily residential areas in
which the im portance o f agriculture as a source o f em ploym ent is declining as
the population increases, new industry is established, and commercial develop
ment takes place.
The main offices o f the tw o banks are 19 miles apart and their closest
offices are 14 miles apart. The only com petition existing between applicants is
in the towns o f K illin g w o rth , C linton, and W estbrook, w hich constitute the
area o f overlap o f the local service areas. These com m unities contribute only a
moderate am ount to the deposit or loan structure o f either bank, and the
proposed merger w ould eliminate no significant degree o f existing com petition.
There are 7 other commercial banking alternatives, operating 21 offices, in
the combined area o f applicants, the area where the proposed merger w ould
have its greatest com petitive impact. Six o f the seven are out-of-area banks
operating 20 offices as branches. A ll o f the out-of-area banks are among the 10
largest commercial banking organizations in the State or are a ffiliated w ith
them. The resultant bank w ith 21.6 percent o f total IPC deposits w ould have
the largest share o f such deposits in the combined service area, b u t five o f the
six out-of-area banks w ould have market shares ranging fro m 12.4 to 17.2
percent o f such IPC deposits. In view o f the nature o f its com p e titio n , the
resultant bank's percentage o f the market undoubtedly overstates its com peti
tive influence w ith in the market.
State law allows fo r statewide de novo branching subject to home office
protection. Thus, neither o f the tw o banks proposed to be merged may branch
BA N K ABSORPTIONS APPROVED BY THE CO RPORATION
127
de novo into the main office com m unity o f the other. A lthough increased
com petition between the tw o banks via de novo branching is possible in other
comm unities, it appears u n likely in the foreseeable future due to their rela
tively lim ited resources, the scarcity o f locations not subject to home office
protection, and the com petitive situation w ith which each is confronted. The
proposed merger w ould, however, open Deep River to de novo branching by
other commercial banks.
Based on the foregoing, the Board o f Directors has concluded th a t the
proposed merger w ould not, in any section o f the co u n try, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future Prospects. Both C om m unity
and Deep River have adequate financial and managerial resources and favorable
future prospects, as w ould the resultant bank.
Convenience and Needs o f th& Community to be Served. The proposed
merger w ould expand trust services fo r Deep River's customers and extend
such services to C om m unity's present customers. S ignificantly larger lending
lim its and a broader range o f commercial bank services than are now offered by
either bank w ould be available to all customers o f the resultant bank. The
merger w ould also provide an additional alternative fo r these services in com
petition w ith the large statewide commercial banks w ith offices in the area.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.
Central Counties Bank
R esources
( in
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
T o be
o p e ra te d
104,404
9
18
90,143
9
B a n k in g O ffic e s
State College, Pennsylvania
to merge with
The First National Bank of Altoona
A ltoona
Summary report by A tto rn e y General, May 22, 1974
Central Counties Bank is headquartered in State College, about 36 miles
northeast o f A ltoona, where A ltoona Bank is headquartered, and about 20
miles northeast o f A ltoona Bank's branch in Tyrone. There are tw o com peti
tive alternatives in Tyrone and tw o in the area intervening between T yrone and
State College. Thus, it does no t appear th a t the proposed merger w ould e lim i
nate substantial existing com p e titio n or significantly increase concentration in
any banking market.
Central Counties Bank is one o f only a few substantial banks th a t may
legally branch de novo in to Blair C ounty, where A ltoona Bank is the second
128
F E D E R A L DEPOSIT INSURANCE CORPORATION
largest o f five banks and holds approxim ately 26 percent of total county
deposits. S im ilarly, A ltoona Bank may legally branch into adjacent Centre
C ounty, where Central Counties Bank ranks second among the 12 banks w ith
offices in the county and holds approxim ately 20 percent of total county
deposits. Thus, we conclude th a t the proposed merger may have some adverse
effects on potential co m petition in central Pennsylvania.
Basis fo r C orporation approval, September 18, 1974
Central Counties Bank, State College, Pennsylvania, a State nonmember
insured bank w ith total resources o f $104,404,000 and IPC deposits o f
$74,416,000, has applied, pursuant to Section 18(c) and other provisions o f
the Federal Deposit Insurance A ct, fo r the C orporation's p rio r w ritte n consent
to merge w ith The First National Bank o f A ltoona, A ltoona, Pennsylvania
("F N B A lto o n a ” ), w ith total resources o f $90,143,000 and IPC deposits o f
$75,591,000. The banks w ould merge under the charter and title o f Central
Counties Bank. The resulting bank, w ith the 9 offices o f FNB A lto o n a estab
lished as branches, w ould operate a total o f 18 offices.
Competition. Central Counties Bank has nine offices in tw o o f the seven
counties which are open to it under Pennsylvania law fo r branching or merging.
The main office and three branches are located in State College (population
33,778) and its close environs in southern Centre C ounty, w ith one office in
Milesburg (population 1,196), some 14 road-miles to the north. In C linton
C ounty, which lies im m ediately north o f Centre C ounty, three offices are
operated in Lock Haven (population 11,427) and in suburban M ill Hall (popu
lation 1,838) and one office is operated in Renovo (population 2,620), 20
road-miles northwest of Lock Haven. These tw o mid-Pennsylvania counties had
a combined 1970 population o f 136,988, an increase o f some 17.9 percent
during the 1960s. The 1973 median household incomes fo r Centre C ounty
($9,014) and C linton C ounty ($8,492) lagged the statewide figure o f $9,588.
The Pennsylvania State University is the major economic influence in the State
College area, w hile agriculture and mixed industry are significant thro u g h o u t
the tw o counties.
FNB A ltoona operates its nine offices in Blair C ounty (1970 population
135,356, o ff 1.4 percent during the 1960s): six in A lto o n a (population 63,115)
and its suburbs and one office each in Hollidaysburg (population 6,262), 4
miles southeast o f A lto o n a ; Roaring Spring (population 2,811), 14 road-miles
to the southeast; and Tyrone (population 7,072), 18 miles to the northeast.
Blair C ounty is situated im m ediately southwest of Centre C ounty. A ltoona
developed as a railroad tow n and the Penn Central Company continues to be
one o f the major factors in the county's mixed industrial-agricultural economy.
Income levels in Blair C ounty are about 7.5 percent below those o f the State as
a whole.
Major com petitors fo r Central Counties Bank in its tw o -co u n ty prim ary
trade area include the $ 1 72.1-m illion-deposit Mid-State Bank and T rust Com
pany, A ltoona; the $ 51.3-m illion-deposit The Peoples National Bank of Central
Pennsylvania, State College; and the $94.8-m illion-deposit F id e lity National
Bank o f Pa., W illiam sport. FNB A ltoona is not represented in either C linton or
Centre C ounty.
The com petitive effect o f the proposed merger w ould be most immediate
and direct in Blair C ounty. This county, w hich comprises the A ltoona SMSA, is
B A N K ABSORPTIONS APPROVED BY THE CO RPORATION
129
the prim ary trade area o f FNB A ltoona. Offices o f the 5 commercial banks in
this market, now totaling 32, hold aggregate IPC deposits of $265.6 m illio n .
FNB A ltoo na is the second largest commercial bank in this market, con tro llin g
approxim ately 28.5 percent o f such deposits. Mid-State Bank and T rust C om
pany, also headquartered in A ltoona, holds the largest share o f such deposits
(41.5 percent) and operates 10 offices in the market. Central Counties Bank is
not represented in Blair C ounty.
Some 29 road-miles separate FNB A ltoona's branch in T yrone fro m the
closest office o f Central Counties Bank. T w o other commercial banks have
offices in the intervening area. People o f the Tyrone area travel south to
A ltoona fo r shopping and entertainm ent and have numerous convenient bank
ing alternatives in the area south of Tyrone. State College, on the other hand, is
the established trading center o f southern Centre C ounty and inhabitants o f
the area w ould have little incentive to shop elsewhere or to seek alternative
bank choices beyond those available in the local market. The tw o banks, thus,
operate in separate banking markets and neither draws a significant am ount o f
business fro m areas served by the other.
Under Pennsylvania law, FNB A ltoona may branch de novo in to Centre
C ounty, and Central Counties Bank may branch de novo into Blair County.
Neither county, however, appears to be attractive fo r any significant number o f
additional de novo facilities w ith in the foreseeable future. Blair C ounty's popu
lation has been declining, its buying levels are below the State average, and the
population fo r each commercial bank office in the county is less than 4,000
people. Centre C ounty also has below average buying levels and, although the
population is expanding in this market, there presently is a commercial banking
office fo r each 3,545 people. Furtherm ore, should fu tu re developments w ar
rant additional commercial bank facilities, there are other large banks besides
Central Counties Bank capable o f entering Blair C ounty de novo, and sim ilarly
other banks than FNB A ltoona capable o f entering Centre C ounty de novo.
Given the economic and structural characteristics of both counties, and th e ir
future prospects, the C orporation doubts th a t significant de novo branching
w ill occur in either in the foreseeable future. Thus, even though both banks
may be capable o f entering areas served by the other de novo, it w ould appear
that w ith few de novo facilities in prospect and other potential entrants avail
able in any case, the proposed merger w ould not significantly reduce o p p o rtu n
ities fo r more intensive com petition in either county in the future.
W ithin the 7-county branching area open to Central Counties Bank (its
maximum geographic m arket since Pennsylvania law does n o t perm it the oper
ation o f m ultibank holding companies), there are 137 offices operated by 45
commercial banks. These banks hold to ta l area IPC deposits o f $1,019 m illio n .
Central Counties Bank has approxim ately 7.3 percent of such deposits and
FNB A lto ona 7.4 percent.* Mid-State Bank and Trust Company w ould con
tinue to hold the largest share o f such deposits, 15.8 percent. The five largest
IPC deposit shares in this area w ould then aggregate 44.4 percent o f the to ta l.
Under these circumstances, the Board o f Directors has concluded th a t the
proposed merger w ould not, in any section o f the co untry, substantially lessen
* D a ta have been a d ju s te d to r e fle c t th e N o v e m b e r 12, 1 9 7 4 m e rg e r o f T h e L o g a n to n
N a tio n a l B a n k in to T h e S ta te B a n k o f A v is .
FE D E R A L DEPOSIT INSURANCE CORPORATION
130
com petition, tend to create a m onopoly, or in any other manner be in restraint
o f trade.
Financial and Managerial Resources; Future Prospects. The resulting bank
w ould have adequate financial and managerial resources. Its future prospects
appear to be favorable.
Convenience and Needs o f the Community to be Served. Consummation o f
the proposed merger w ould provide customers o f FNB A ltoona a broader range
o f credit services, a higher rate of interest on savings deposits, and a signifi
cantly larger lending lim it. The resulting bank should accordingly strengthen
com petition w ith in Blair C ounty, to the benefit o f local businessmen and
residents generally.
The Board o f Directors, in view o f the foregoing, has concluded th a t ap
proval of the application is warranted.
Southern Bank and Trust Company
B a n k in g O ffic e s
R esources
(in
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
T o be
o p e ra te d
174,172
29
58
146,463
29
Greenville, South Carolina
to acquire the assets and assume
the deposit liabilities o f
American Bank & Trust
Orangeburg
Approved under emergency provisions. No report requested from
A tto rn e y General.
the
Basis fo r C orporation approval, September 20, 1974
Southern Bank and Trust Company, Greenville, South Carolina ("S o u th
e rn "), an insured State nonmember bank w ith total resources o f $174,172,000,
has applied, pursuant to Section 18(c) o f the Federal Deposit Insurance A ct,
fo r the C orporation's consent to purchase the assets of, and assume lia b ility to
pay deposits made in, American Bank & Trust, Orangeburg, South Carolina
("A m e rica n "), an insured State nonmember bank w ith total resources o f
$146,463,000. As an incident to the proposed transaction, the 29 operating
and 3 approved but unopened offices o f American w ould become branches o f
Southern.
As of September 20, 1974, American had deposits and other liabilities o f
some $132 m illio n and operated 29 offices. On September 20, 1974, the
Federal Deposit Insurance C orporation was appointed as Receiver of American.
The Board o f Directors finds th a t the failure o f Am erican requires it to act
im mediately and thus waives publication o f notice, dispenses w ith the solicita
tion o f com petitive reports fro m other agencies, and authorizes the transaction
to be consummated im m ediately.
BA N K ABSORPTIONS APPROVED BY THE CORPORATION
R esources
(in
th o u s a n d s
o f d o lla rs )
Barclays Bank of California
131
B a n k in g O ffic e s
In
o p e r a tio n
303,791
31
44,624
7
T o be
o p e ra te d
38
San Francisco, California
to acquire the assets and assume
the deposit liabilities o f
The County Bank, Santa BarbaraCarpinteria
Santa Barbara
Summary report by A tto rn e y General, June 19, 1974
The nearest offices o f the parties are separated by approxim ately 17 miles,
w ith a number o f com petitive alternatives in the intervening area. County
Bank's proposed Woodland Hills office, approved but n o t yet opened, w ill be
w ith in 5 miles of the nearest Barclays California branch. Thus, it appears that
the proposed transaction may elim inate some co m p e titio n between the parties
in the Los Angeles-Ventura C ounty area. However, it does not appear th a t
concentration w ill be substantially increased in any relevant banking market.
Although California law permits statewide branching, the relatively modest
position o f each o f the parties in their respective markets diminishes the effect
o f this transaction on potential com petition.
Therefore, we conclude th a t the proposed transaction w ould n o t have a
substantial com petitive impact.
Basis fo r C orporation approval, October 1, 1974
Barclays Bank of California, San Francisco, California ("B a rcla ys"), a State
nonmember insured bank having total resources o f $303,791,000 and total IPC
deposits of $207,906,000, has applied, pursuant to Section 18(c) and other
provisions o f the Federal Deposit Insurance A ct, fo r the C orporation's prior
consent to acquire the assets of, and assume the lia b ility to pay deposits made
in, The C ounty Bank, Santa Barbara-Carpinteria, Santa Barbara, C alifornia
("C o u n ty B ank"), w ith total resources o f $44,624,000 and total IPC deposits
of $30,462,000. The banks w ould complete the proposed transaction under
the charter and title of Barclays and, incident to the transaction, the 7 existing
offices and 2 approved b u t unopened offices o f C ounty Bank w ould become
branches of the resulting bank, increasing the number o f its authorized offices
to 42.
Competition. Barclays has its main office in San Francisco and eight branch
es in the San Francisco-Oakland SMSA. Eleven branches are located in the San
Jose-Santa Clara area at the southern part o f the San Francisco Peninsula; eight
are in the Anaheim-Garden Grove-Santa Ana area o f Orange C ounty about 25
miles southeast o f Los Angeles and three are in the Los Angeles-Long Beach
area. Barclays also has approval fo r tw o additional branches— one in Los
Angeles C ounty and one in Palm Springs, Riverside C ounty. Only in the San
Jose-Santa Clara SMSA does Barclays have more than a nominal share o f the
commercial bank deposits held at offices in these local banking markets.
C ounty Bank's main office is in Santa Barbara w ith branches in Goleta,
Santa Barbara, and Carpinteria, along 22 miles o f the Pacific Coast in Santa
Barbara C ounty. Other branches include Ventura on the Pacific Coast, about
132
F E D E R A L DEPOSIT INSURANCE CORPORATION
28 miles southeast o f the main office; Malibu, located on the Pacific Coast
approxim ately 70 miles southeast of the main o ffice; and Thousand Oaks,
located east-southeast about 55 miles from the main office in the Conejo
Valley. C ounty Bank also has approval to establish tw o additional branches—
one in Oxnard, Ventura C ounty, and one in Woodland Hills, Los Angeles
C ounty. In each o f its local banking markets, C ounty Bank's share o f com m er
cial bank deposits is markedly lower than the shares held by tw o or more o f
the five largest commercial banks in California.
Barclays and C ounty Bank have no common borrowers, and except in the
Los Angeles-Long Beach SMSA, there is negligible overlapping in the geo
graphic areas from which they draw their loans and deposits, their nearest
offices being about 15 miles apart. However, the approved bu t unopened
Woodland Hills Branch of C ounty Bank w ill be located 4 miles from Barclays'
Tarzana O ffice. Thirteen offices representing nine other banks, including the
five largest commercial banks in California, are w ith in 1 mile o f the Tarzana
O ffice. This service area is on the western edge of the Los Angeles-Long Beach
SMSA, in w hich Barclays controls only 0.07 percent of total commercial bank
deposits and C ounty Bank, only 0.01 percent. In view o f these nominal market
shares, any elim ination of either existing or potential com petition between the
tw o banks in this SMSA is considered inconsequential com petitively.
U nlim ited statewide de novo branching is perm itted in C alifornia, and it is
highly probable th a t in the absence o f this proposal, Barclays w ould in tim e
branch de novo into all of the local banking markets served by C ounty Bank.
C ounty Bank, on the other hand, due to its relatively small size and lim ited
financial resources, is u n likely to become a significant c o m p e tito r o f Barclays
anywhere except possibly in the Los Angeles-Long Beach SMSA. Presently
Barclays Bank controls only 0.3 percent o f total statewide commercial bank
deposits and C ounty Bank, 0.1 percent. In view o f the minim al shares o f State
and local m arket deposits held by the tw o banks and the intense statewide
com petition o f the largest California banks, any elim ination o f potential com
pe tition caused by consum m ation o f this proposed transaction has no signifi
cance fo r the future. The 10 largest banks hold 88.1 percent o f total deposits
in this highly concentrated State banking system. A p p ro xim a te ly 0.4 percent
o f total deposits w ould be held by the resulting bank.
Based on the foregoing, the Board o f Directors has concluded th a t the
proposed transaction w ould not, in any section o f the co untry, substantially
lessen com petition, tend to create a m onopoly, or in any other manner be in
restraint o f trade.
Financial and Managerial Resources; Future Prospects. Both banks have
satisfactory managerial resources to conduct their present volume o f business.
Financial and managerial resources o f the resulting bank w ould be acceptable
and its fu tu re prospects appear favorable.
Convenience and Needs o f the Community to be Served. On consumm ation
o f the proposed transaction, customers o f C ounty Bank should benefit from
the significantly higher lending lim its afforded the resulting bank. They w ould
also benefit through the addition o f international banking services, a lowering
of certain service charges, and the adjustment o f loan interest rates to a more
com petitive level.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.
B A N K ABSORPTIONS APPROVED BY THE CO RPO RATIO N
Merchants and Farmers Bank
Kosciusko, Mississippi
133
B a n k in g O ffic e s
R eso u rce s
(in
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
T o be
o p e ra te d
44,639
11
12
1,213
1
to merge with
The Bank o f Lena
Lena
Summary report by A tto rn e y General, August 20, 1974
We have reviewed this proposed transaction and conclude th a t it would not
have a substantial com petitive impact.
Basis fo r C orporation approval, October 1, 1974
Merchants and Farmers Bank, Kosciusko, Mississippi ("M e rch a n ts"), a State
nonmember insured bank w ith total resources of $44,639,000 and total IPC
deposits of $32,700,000, has applied, pursuant to Section 18(c) and other
provisions o f the Federal Deposit Insurance A ct, fo r the C orporation's prio r
consent to merge w ith The Bank of Lena, Lena, Mississippi, w ith to ta l re
sources o f $1,213,000 and total IPC deposits o f $1,029,000. These banks
w ould merge under the charter and title o f Merchants and, as an incident to the
merger, the sole office o f The Bank o f Lena w ould be established as a branch
of the resulting bank, which w ould then have 12 offices in operation, plus one
approved but unopened office.
Competition. Merchants operates 11 offices in 5 central Mississippi coun
ties: 6, including its main office, in A ttala C ounty (1970 population 19,570), 2
in Holmes C ounty (1970 population 23,120), and 1 each in Choctaw C ounty
(1970 population 8,440), Leake C ounty (1970 population 17,085), and
Oktibbeha C ounty (1970 population 28,752). Merchants has the necessary
supervisory approvals to establish one additional office in Kosciusko.
The Bank o f Lena operates its sole office in Lena (1970 population 233), a
very small incorporated com m unity in southern Leake C ounty, some 35 roadmiles south o f Kosciusko. Leake C ounty's population loss of 8.4 percent
during the 1960s reflects a declining economy.
The proposed merger w ould have its most direct and immediate effe ct in
southern Leake C ounty w ith in about 17 miles o f Lena— an area which includes
the county seat o f Carthage, located some 14 road-miles north o f Lena, and
Walnut Grove, another small incorporated com m unity about 17 road-miles east
o f Lena. There are no significant roads which d irectly connect Lena w ith
com m unities to the west, and to the south, Lena is separated from com
munities in adjacent S cott C ounty by the Bienville National Forest. Southern
Leake C ounty is agricultural, w ith row crops and the production of cattle and
hogs having replaced co tto n as the principal source o f income in recent years.
The economy o f the relevant market has been declining and the 1973 median
household effective buying level o f Leake C ounty ($5,156) is significantly
134
F E D E R A L DEPOSIT INSURANCE CO RPO RATIO N
lower than th a t o f the State ($6,928)— the latter being well below the com
parable national level.
This local market in southern Leake C ounty, which had a population o f
somewhat more than 9,000 in 1970, is served by a total o f five offices of fo u r
commercial banks. O f the $29.4 m illio n o f IPC deposits held by these offices,
The Bank o f Lena has the smallest share, 3.5 percent. T w o banks in Carthage,
the county seat and trading center o f Leake C ounty, hold 79.6 percent o f the
commercial bank IPC deposits in this relevant geographic area, while the bank
in W alnut Grove holds the remaining 16.8 percent. Merchants is not rep
resented in this m arket at all; its closest office to Lens is located in Thomastow n, in northern Leake C ounty, about 22 road-miles north o f Lena and 11
miles northwest o f Carthage. The highway and road configuration of Leake
C ounty makes even more remote any direct com petition between Merchants
and The Bank o f Lena than actual distance indicates. A ccordingly, the pro
posed merger may be viewed as elim inating no significant am ount of. com peti
tion between the tw o banks.
There also appears to be no significant potential fo r increased com petition
between the tw o banks in the fu tu re through de novo branching. The Bank o f
Lena has experienced only minimal deposit growth during recent years and has
neither the financial nor managerial resources to pursue de novo expansion.
Merchants, fo r its part, would fin d southern Leake C ounty unattractive fo r de
novo entry. This is an area of sparse and declining population and significantly
below average buying levels. Four commercial banks presently have offices in
the area and none o f its three incorporated com m unities is legally open fo r de
novo e ntry by other banks.
In its maximum branching area under Mississippi law, i.e., the area w ith in
100 miles o f Kosciusko, the resulting bank w ould control only 1.2 percent o f
total commercial bank deposits, ranking 17th in this regard w ith in the area.
Statewide, the resulting bank w ould hold less than 1.0 percent o f all com
mercial bank deposits in Mississippi.
Based on the foregoing in fo rm a tio n , the Board o f Directors is o f the opinion
that the proposed merger would not, in any section of the c o u n try, substan
tia lly lessen com petition, tend to create a m onopoly, or in any other manner
be in restraint o f trade.
Financial and Managerial Resources; Future Prospects. Both Merchants and
The Bank o f Lena have satisfactory financial resources. There is a lack o f
management depth at The Bank o f Lena w hich this proposed merger w ould
resolve. Future prospects o f the resulting bank appear favorable.
Convenience and Needs o f the Community to be Served. The merger would
make available in the Lena market the fu ll services of a much larger, more
sophisticated and aggressive bank. Consumer installm ent credit, credit cards,
tim e deposit open accounts, safe deposit facilities, and tru st services w ould
become availabe fo r the firs t tim e at The Bank o f Lena's location. These
conveniences,
together w ith
a lending
lim it
increased fro m
$12,000 to
$600,000, should stim ulate com petition in southern Leake C ounty to the
benefit o f farmers, businessmen, and the general public.
BAN K ABSORPTIONS APPROVED BY THE CO RPO RATIO N
135
The Board of Directors, in view o f the foregoing, has concluded th a t ap
proval of the application is warranted.
Albany Savings Bank
R esources
(in
th o u s a n d s
o f d o lla rs )
B a n k in g O ffic e s
In
o p e r a tio n
T o be
o p e ra te d
563,792
7
8
14,455
1
Albany, New Y o rk
to merge with
First Savings and Loan Association of Troy
T roy
Summary report by A tto rn e y General, July 13, 1974
The cities o f A lbany and T ro y are only about 8 miles apart, located on
opposite sides o f the Hudson River. While Albany Savings Bank does not now
operate offices in T ro y or in Rensselaer C ounty, in w hich T ro y is located,
A lbany Savings Bank derives a substantial p ro p o rtio n o f its business fro m th a t
area. It appears, therefore, th a t the merger w ould eliminate some existing
com petition between the tw o institutions.
A lbany Savings Bank is the largest th r ift in s titu tio n in the A lbany-T roy area,
holding about 33 percent o f to ta l deposits held by such institutions. First S &L,
on the other hand, holds only about 0.9 percent o f total th r if t in stitu tio n
deposits in the A lbany-T roy area. Thus, because o f the small size o f First S &L,
the effect o f the merger on com petition w ould not be significantly adverse.
Basis fo r C orporation approval, October 1, 1974
Albany Savings Bank, A lbany, New Y o rk ("A lb a n y Savings"), an insured
mutual savings bank w ith to ta l resources o f $563,792,000 and total deposits o f
$519,408,000, has applied, pursuant to Section 18(c) and other provisions o f
the Federal Deposit Insurance A ct, fo r the C orporation's p rio r consent to
merge w ith First Savings and Loan Association of T ro y , T ro y, New Y o rk
(" S & L "), a federally insured, State-chartered savings and loan association w ith
total resources o f $14,455,000 and total deposits o f $13,579,000. The 2 in sti
tutions w ould merge under the charter and title o f A lbany Savings and, in ci
dent to the merger, the 2 approved offices o f S &L w ould be established as
branches of the resulting bank, increasing the number of its approved offices to
10.
Competition. A lbany Savings operates a total o f seven offices: its main
office and one branch in A lbany, tw o branches in Glens Falls, and one branch
each in Colonie, Schenectady, and Johnstown. The offices in Glens Falls and
Johnstown were acquired during 1970 and 1971 by mergers w ith tw o Statechartered savings and loan associations. A lbany Savings also holds the necessary
supervisory approvals to establish an o ffice in Plattsburgh. Under present New
Y o rk law, A lbany Savings may acquire by merger any number o f branches
throughout the Fourth Banking D istrict, a 15-county region in northeastern
New Y o rk State, b u t its establishment o f de novo branches is lim ited to one
136
F E D E R A L DEPOSIT INSURANCE CORPORATION
such branch each year. Beginning January 1, 1976, mutual savings banks may
branch throug ho u t the State subject to the continuing lim ita tio n of one de
novo branch each year.
S & L has its sole office in T ro y (1970 population 62 ,9 1 8 — down 6.8 percent
from 1960). It holds the necessary supervisory approvals, however, to establish
a branch in East Greenbush (population 10,679), located some 11 miles south
o f T roy. The area p rincipally served by S &L comprises the c ity o f T ro y and its
close environs. In 1973, the median household buying level in the c ity ($8,055)
was 21.5 percent below th a t o f the State as a whole. A p p ro xim a te ly 90.9
percent o f the th r ift in s titu tio n deposits in T ro y on June 30, 1973, were
controlled by tw o Troy-based savings banks. An Albany-based savings bank,
which recently acquired a toe-hold in this market by merger w ith another
savings and loan association, shares the remainder of such deposits w ith S&L.
A lbany Savings has no office in the c ity o f T roy.
The local banking m arket served by A lbany Savings comprises the counties
of A lbany, Rensselaer, Saratoga, Schenectady, and Warren, a mixed residential
and industrial region in northeastern New Y ork State. S&L serves a small
portion o f this market, b u t A lbany Savings, whose nearest office to T ro y is 8
miles away, across the Hudson River, also draws deposit and loan business from
the same portion o f the market. A ccordingly, some direct com petition between
the tw o institutions w ould be eliminated by their merger. This consequence o f
the proposed merger is o f little significance, however, in view of the fact th a t
S & L holds so m inor a share o f all th r ift in stitu tio n deposits in the whole
market, and th a t numerous th r ift in s titu tio n alternatives are available. This
wide choice of alternatives, moreover, is like ly to increase fu rth e r after January
1, 1976, when New Y o rk law w ill perm it statewide branching by th r ift in s titu
tions.
It appears, moreover, th a t there is no significant potential fo r increased
com petition between the tw o institutions in the future through de novo
branching. A lbany Savings is likely to fin d other locations in the Fourth Bank
ing D istrict and, after January 1, 1976, in the State th a t are more attractive
than T roy fo r the lim ited de novo expansion perm itted by New Y o rk law. For
its part, S & L has operated as a u n it in s titu tio n ever since its 1889 organization
and w ould be u nlikely in the foreseeable future to undertake additional de
novo expansion because of its lim ited financial and managerial resources.
A lbany Savings is the second largest th r ift in s titu tio n in the Fourth Banking
D istrict, holding approxim ately 18.0 percent o f the deposits held on June 30,
1973, by the 21 th r if t institutions operating therein. The resulting bank, w ith
approxim ately 18.4 percent o f such deposits, would continue to be the dis
tric t's second largest th r ift in s titu tio n . Statewide branching and merging sub
sequent to January 1, 1976, is likely to bring additional th r ift in stitu tio n
com petition to the m arket presently served by A lbany Savings and should tend
to deconcentrate present holdings o f th r ift in s titu tio n deposits.
The Board o f Directors is o f the opinion th a t the proposed merger w ould
not, in any section o f the co u n try, substantially lessen com petition, tend to
create a m onopoly, or in any other manner be in restraint o f trade.
Financial and Managerial Resources; Future Prospects. Financial resources
of both institutions are satisfactory. Under the satisfactory management o f the
resulting bank, the fu tu re prospects o f S &L are more favorable than if S&L
were to continue to operate as an independent in stitu tio n . The resulting bank
has favorable fu tu re prospects.
BA N K ABSORPTIONS APPROVED BY THE CORPO RATIO N
137
Convenience and Needs o f the Community to be Served. The resulting bank
w ould o ffe r a broader spectrum o f credit services, including FHA and V A
mortgages, and a greatly increased lending capability at the S &L location and
should provide more effective com petition in the field o f real estate financing
to the other savings banks and commercial banks in the T ro y market. Cus
tomers o f S & L should also benefit from the availability o f savings bank life
insurance.
Based on the foregoing, the Board o f Directors has concluded th a t approval
o f the application is warranted.
R eso u rce s
(in
th o u s a n d s
o f d o lla rs )
Bradford Trust Company
B a n k in g O ffic e s
In
o p e r a tio n
21,633
1
T o be
o p e ra te d
1
New Y o rk, New Y o rk
to acquire the trust business o f
Franklin National Bank
3,590,554
104
New Y o rk
Approved under emergency provisions. No report requested fro m the
A tto rn e y General.
Basis fo r C orporation approval, October 8, 1974
Bradford Trust Company, New Y ork (M anhattan), New Y o rk , an insured
State nonmember trust company, has applied, pursuant to Section 18(c) o f the
Federal Deposit Insurance A ct, fo r the C orporation's prior approval to acquire
the trust business o f Franklin National Bank, New Y o rk (B ro o klyn ), New Y o rk
("F ra n k lin "). Under this proposal, Bradford T rust Company w ould become
successor trustee on all personal and corporate accounts now administered by
Franklin.
As of October 8, 1974, Franklin National Bank had deposits and other
liabilities o f more than $3.4 b illio n and operated 104 offices. On October 8,
1974, the Federal Deposit Insurance C orporation was appointed Receiver o f
Franklin.
The Board o f Directors finds th a t the failure o f Franklin requires it to act
im mediately on the proposed purchase and assumption transaction. The Board
thus waives publication o f notice, dispenses w ith the solicitation o f com petitive
reports from other agencies, and authorizes the transaction to be consummated
im mediately.
F E D E R A L DEPOSIT INSURANCE CORPO RATIO N
138
European-American Bank & Trust Company
B a n k in g O ffic e s
R eso u rce s
(in
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
T o be
o p e ra te d
504,710
3
107
New Y o rk, New Y o rk
to acquire the assets and assume
the deposit liabilities o f
Franklin National Bank
3,590,554
104
New Y o rk
Approved under emergency provisions. No report requested from
A tto rn e y General.
the
Basis fo r C orporation approval, October 8, 1974
Pursuant to Section 18(c) of the Federal Deposit Insurance A ct, EuropeanAmerican Bank & Trust Company, New Y o rk (M anhattan), New Y o rk
("E uropean-A m erican"), an insured State nonmember bank w ith total re
sources o f $466,824,000 as o f December 31, 1973, has applied fo r the Cor
poration's consent to purchase the assets of, and assume lia b ility to pay de
posits made in, Franklin National Bank, New Y o rk (B ro o klyn ), New Y o rk
("F ra n k lin "). As an incident to the proposed transaction, the 104 offices o f
Franklin w ould become branches of European-American.
As of October 8, 1974, Franklin had total deposits and other liabilities o f
more than $3.4 b illio n and operated 104 offices. On October 8, 1974, the
Federal Deposit Insurance C orporation was appointed as Receiver o f Franklin.
The Board o f Directors finds th a t the failure o f Franklin requires it to act
im mediately. The Board thus waives publication o f notice, dispenses w ith the
solicitation o f com petitive reports from other agencies, and authorizes the
transaction to be consummated im m ediately.
Marine Midland Bank-Rochester
B a n k in g O ffic e s
R eso u rce s
(in
th o u s a n d s
o f d o lla rs )
In
o p e r a tio n
T o be
o p e ra te d
719,324
34
35
2,160
1
Rochester, New Y o rk
to merge with
Groveland State Bank
Groveland
Approved under emergency provisions. No report requested from the A tto rn e y
General.
BA N K ABSORPTIONS APPROVED BY THE CORPORATION
139
Basis fo r C orporation approval, October 11, 1974
Marine Midland Bank-Rochester, Rochester, New Y o rk, an insured State
nonmember bank w ith total resources o f $719,324,000, has applied, pursuant
to Section 18(c) o f the Federal Deposit Insurance A ct, fo r the C orporation's
prior consent to merge w ith Groveland State Bank, Groveland, New Y o rk, an
insured State nonmember bank w ith total resources o f $2,160,000. As an
incident to the proposed merger, the sole office o f Groveland State Bank
w ould become a branch of Marine Midland Bank-Rochester.
The Board of Directors has determined th a t the C orporation must act
im mediately in order to prevent the probable failure o f Groveland State Bank.
Based on this finding the proposed merger is approved. Under Section
18(c)(4) of the Federal Deposit Insurance A ct, the transaction may be con
summated im mediately.
R esources
(in
th o u s a n d s
o f d o lla rs )
Iowa State Savings Bank
Creston, Iowa
B a n k in g O ffic e s
In
o p e r a tio n
20,505
1
3,579
1
T o be
o p e ra te d
2
to acquire the assets and assume
the deposit liabilities o f
Cromwell State Savings Bank
Cromwell
Approved under emergency provisions. No report requested fro m
A tto rn e y General.
the
Basis fo r C orporation approval, October 12, 1974
Iowa State Savings Bank, Creston, Iowa, an insured State nonmember bank
w ith total resources o f $20,505,000, has applied, pursuant to Section 18(c) o f
the Federal Deposit Insurance A ct, fo r the C orporation's consent to purchase
the assets of, and assume lia b ility to pay deposits made in, Cromwell State
Savings Bank, Crom well, Iowa, an insured State nonmember bank w ith total
resources o f $3,579,000. As an incident to the proposed transaction, the one
office of Cromwell State Savings Bank w ould become a branch o f Iowa State
Savings Bank.
As of October 9, 1974, Cromwell State Savings Bank had deposits and other
liabilities o f some $3.5 m illio n and operated one office. On October 10, 1974,
the Federal Deposit Insurance C orporation was appointed as Receiver o f C rom
well State Savings Bank.
The Board o f Directors finds th a t the failure of Cromwell State Savings
Bank requires it to act im m ediately and thus waives publication of notice,
dispenses w ith the solicitation o f com petitive reports from other agencies, and
authorizes the transaction to be consummated im m ediately.
F E D E R A L DEPOSIT INSURANCE CORPORATION
140
R esources
(in
th o u s a n d s
o f d o lla rs )
Community State Bank of Clear Lake
B a n k in g O ffic e s
1n
o p e r a tio n
8,834
1
3,912
1
T o be
o p e ra te d
2
Clear Lake, Iowa
to merge with
Ventura State Bank
Ventura
Summary report by A tto rn e y General, July 5, 1974
Clear Lake is located in west central Cerro Gordo C ounty, about 15 miles
west o f Mason C ity. Ventura is located 4 miles west of Clear Lake in western
Cerro Gordo C ounty, near the Hancock C ounty line. Thus, the offices o f the
parties to this proposed merger are separated by a distance o f about 4 miles,
w ith no banks in the intervening area. Each party to this proposed merger
derives substantial deposits and loans fro m the service area o f the other. A c
cordingly, the proposed transaction w ould apparently eliminate com petition
between the parties and increase concentration in western Cerro Gordo C oun
ty.
According to the application, there is some indirect comm on stock ow ner
ship o f the tw o banks, as well as some indirect office r-d ire cto r interlocks. The
application does no t contain su fficie n t in fo rm a tio n to fu lly evaluate the exist
ence, origin, or relevance o f these facts, and we express no opinion on their
effect on the foregoing com petitive analysis.
Basis fo r C orporation approval, November 4, 1974
C om m unity State Bank o f Clear Lake, Clear Lake, Iowa ("C o m m u n ity
B a nk"), a State nonmember insured bank w ith total resources o f $8,834,000
and total IPC deposits o f $7,252,000, has applied, pursuant to Section 18(c)
and other provisions o f the Federal Deposit Insurance A ct, fo r the Corpora
tion's prior consent to merge w ith Ventura State Bank, Ventura, Iowa
("V e ntura B a nk"), w hich has total resources of $3,912,000 and total IPC
deposits o f $3,204,000, under the charter and title o f C om m unity Bank. The
sole office o f Ventura Bank w ould become a branch o f the resulting bank,
which thereupon w ould operate tw o offices.
Competition. Both C om m unity Bank and Ventura Bank are located in Cerro
Gordo C ounty, in north-central Iowa. The population o f Cerro G ordo C ounty
declined during the 1960s fro m 49,894 to 49,223. Clear Lake c ity (population
6,430) adjoins the to w n o f Ventura (population 543). Both are resort com
munities, dependent in large part on business attracted by a 3,640-acre lake
located nearby, w hich is surrounded by homes and cottages, many occupied
seasonally. The area's trading center is Mason C ity (population 30,379), the
county seat, located 10 miles east o f Clear Lake c ity and providing e m ploy
ment fo r many residents o f both Clear Lake city and Ventura. Cerro Gordo
C ounty's median household effective buying level in 1973 ($9,385) ap p ro xi
mates th a t o f the State ($9,499).
Both C om m unity Bank and Ventura Bank are controlled by Earl W. Nelson
and several associates w ho also c o n tro l, d ire ctly or in d ire ctly, five other banks
in the State o f Iowa. None o f these banks, other than Ventura Bank, has an
B A N K ABSORPTIONS APPROVED BY THE CO RPO RATIO N
141
office w ith in 95 miles o f Clear Lake city . However, the First State Bank o f
T h ornton, Iowa, located about 18 miles southeast o f Ventura and 14 miles
south o f Clear Lake c ity , is controlled by Earl W. Nelson and tw o associates
not involved in the control o f the seven Iowa banks already mentioned.
The proposed merger w ould have its most immediate and direct effects in an
area w ith in an approxim ate 15-mile radius o f Ventura. A total o f 12 com m er
cial banks maintain 21 offices in this area, holding IPC deposits of $197.6
m illion and serving an estimated 50,200 people. C om m unity Bank holds 3.7
percent, the 10th largest share o f these deposits; Ventura Bank, its office
located 4 miles west o f C om m unity Bank, holds 1.6 percent, the smallest share.
The First State Bank o f T h o rn to n holds 3.9 percent o f these commercial bank
IPC deposits. The local market is dominated, however, by tw o Mason C ityheadquartered banks, The First National Bank o f Mason C ity and United Home
Bank & T rust Co., w ith 28.1 percent and 21.8 percent o f such deposits, re
spectively. A lthough some existing com petition between C om m unity Bank and
Ventura Bank was elim inated when they came under common control and this
result w ould be made permanent by the proposed merger, the C orporation
does not view th a t existing com petition as substantial in view o f the size o f the
market and its present structure. The resulting bank, in fact, w ould have only
5.3 percent o f the market's total commercial bank IPC deposits. Including the
deposits held by The First State Bank o f T h o rn to n , Iowa, o n ly 9.2 percent o f
such deposits are involved.
Under Iowa law, both C om m unity Bank and Ventura Bank may establish de
novo offices in Cerro Gordo C ounty and the eight surrounding counties, except
in com m unities which are already banked. The potential fo r increased com
petition between the tw o banks through de novo branching is considered re
mote, however, even assuming th e ir disa ffilia tio n , because o f their lim ited re
sources, the lack o f grow th in the area, the already low population fo r each
commercial bank office, and Iowa's restrictive branching law.
A total o f 79 offices o f 54 commercial banks are located in the 9-county
legal branching region o f the resultant bank; these offices hold IPC deposits o f
$570.3 m illio n. The resultant bank, holding 1.8 percent o f such deposits,
w ould become the 22nd largest in the region. Statewide, the resultant bank
w ould hold less than 0.125 percent o f the IPC deposits held by all commercial
banks in Iowa.
For the reasons stated, the Board o f Directors is o f the opinion th a t the
proposed merger w ould not, in any section o f the co untry, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future Prospects. Both C om m unity
Bank and Ventura Bank have satisfactory financial and managerial resources
fo r the business they do, as w ould the resultant bank. Future prospects o f the
resultant bank are considered to be favorable.
Convenience and Needs o f the Community to be Served. The resultant bank
would operate w ith an increased lending lim it (o f $156,000), and its aggregate
size may lead in tim e to the establishment o f a trust departm ent which should
be a convenience fo r a p o rtio n o f the area's population. However, the merger
would not in itia lly provide residents o f the Clear Lake-Ventura area w ith ser
vices not presently available at the offices o f the tw o banks. The com petitive
position o f the resultant bank, vis-a-vis larger banks already in the market, may
142
F E D E R A L DEPOSIT INSURANCE CORPORATION
be enhanced. However, overall considerations o f convenience and needs weigh
only slightly in favor of the proposed transaction.
In view o f the lack o f significant com petitive impact, however, the Board o f
Directors has concluded that approval o f the application is warranted.
Westchester County Savings Bank
R esources
(in
th o u s a n d s
o f d o lla rs )
B a n k in g O ffic e s
In
o p e r a tio n
T o be
o p e ra te d
173,283
5
6
18,808
1
T arrytow n, New Y o rk
to merge with
Tuckahoe Savings and Loan Association
Tuckahoe
Summary report by A tto rn e y General, March 28, 1974
A p plicant presently operates five offices in Westchester C ounty and has
been given approval fo r a sixth. Applicant's main office in T a rryto w n and the
site o f the proposed branch in Greenburgh are w ith in approxim ately 13 miles
of Tuckahoe. Thus, it appears th a t the proposed transaction may eliminate
some existing com petition.
However, it does not appear th a t the proposed transaction w ould substan
tia lly increase concentration in any relevant geographic market. A pplicant
holds approxim ately 6 percent of total deposits held by Westchester C ounty
th r ift institutions, w hile Tuckahoe accounts fo r less than 1 percent of such
deposits.
Therefore, we conclude th a t the proposed merger w ould not have a substan
tial com petitive impact.
Basis fo r Corporation approval, November 4, 1974
Westchester C ounty Savings Bank, T a rryto w n , New Y o rk ("W C S B "), an
insured mutual savings bank w ith total resources on June 30, 1974, o f
$173,283,000 and total deposits o f $159,568,000 has applied, pursuant to
Section 18(c) and other provisions o f the Federal Deposit Insurance A ct, fo r
the C orporation's prio r consent to merge w ith Tuckahoe Savings and Loan
Association, Tuckahoe, New Y o rk (" S & L "), a federally insured, Statechartered savings and loan association w ith total resources on February 8,
1974, of $18,808,000 and total deposits o f $17,023,000. The tw o institutions
w ould merge under the charter and title o f WCSB and, incident to the merger,
the sole office o f S & L w ould become a branch o f the resulting bank, increasing
to six the number of its offices.
Competition. WCSB's main office is located in T a rryto w n w ith branch o f
fices in Ossining, B ria rc liff Manor, A rm o n k, and Somers T ow nship— all of which
are in Westchester C ounty, as is its approved bu t unopened branch in the tow n
of Greenburgh. Through a 1971 merger w ith The Bank fo r Savings o f West
chester (Ossining), WCSB acquired the Ossining and B ria rc liff Manor offices.
BA N K ABSORPTIONS APPROVED BY THE CORPORATION
143
The other branches were established de novo. New Y o rk State law allows WCSB
to establish only one de novo branch per year in the T h ird Banking D istrict,
but any number o f branches may be established in the Third Banking D istrict
by merger. Statewide branching w ill become effective on January 1, 1976;
however, the one branch per year lim ita tio n w ill remain.
Westchester C ounty (1970 population 891,409) covers an area o f 457 square
miles just north o f New Y o rk C ity. This county has some industrial develop
ment and the executive offices o f a number o f large corporations; however, it is
prim arily a residential area, w ith a sizable portion o f the population com
m uting to New Y ork C ity fo r em ploym ent. A ll o f WCSB's offices are located in
Westchester C ounty where it is the fifth largest of the 11 mutual savings banks
headquartered there as o f June 30, 1974. It controlled 7.0 percent o f all
deposits held by the 52 mutual savings bank offices in the county (11 o f which
represent 10 mutual savings banks headquartered in New Y o rk C ity). It ranks
sixth o f the 29 mutual savings banks headquartered in the T h ird Banking
D istrict, holding 4.8 percent o f the deposits held at such institutions. The
proposed transaction w ould n o t change either ranking nor w ould it affect the
de novo branching capabilities o f the resultant bank.
S &L's only office is located in the village of Tuckahoe in southern West
chester C ounty. This village and the villages o f Bronxville and Eastchester make
up the tow n o f Eastchester (1970 population 36,660). A n area o f a p p ro xi
mately 5 square miles surrounding Tuckahoe constitutes S &L's prim ary trade
area and includes the village o f Tuckahoe, sections o f the villages o f Eastchester
and Bronxville, and the Crestwood section o f the c ity o f Yonkers. S &L holds
less than 1.0 percent o f all deposits held by mutual savings banks and savings
and loan associations in Westchester C ounty offices.
The main office o f WCSB is located 13 miles fro m S&L's sole office, and
WCSB's unopened branch in the tow n o f Greenburgh w ill be 10 miles away.
The trade areas o f the tw o institutions, however, are considered separate and
distinct, and neither draws any substantial business from areas served by the
other. As to potential com petition in the fu tu re , S&L has not established a
branch in its 84-year existence and the possibility o f its establishing one now is
considered remote, given its lim ited financial and managerial resources. WCSB
has the capability o f establishing a branch in the Tuckahoe area at some fu tu re
tim e, b u t the elim ination of this potential fo r increased com petition in the
future is considered insignificant in view o f the size o f S & L, the small share o f
the market it holds, and the likelihood o f significant additional co m p e titio n in
the futu re from savings banks headquartered in New Y o rk C ity.
Under the circumstances described, the Board of Directors has concluded
that the proposed transaction w ould not, in any section o f the co u n try, sub
stantially lessen com petition, tend to create a m onopoly, or in any other
manner be in restraint o f trade.
Financial and Managerial Resources; Future Prospects. Both institutions
have satisfactory financial resources. A management succession problem at
S & L w ould be resolved by the proposed merger. The resultant bank's financial
and managerial resources w ould be satisfactory and its fu tu re prospects appear
favorable.
Convenience and Needs of the Community to be Served. Increased lending
lim its, more liberal loan policies, new types o f loans, including FHA home
mortgage and education loans, and savings bank life insurance are among the
F E D E R A L DEPOSIT INSURANCE CORPORATION
144
services w hich would be offered to customers of S&L by the resultant bank,
thus allowing this o ffice to compete more effectively w ith the much larger
th r ift institutions and commercial banks represented in the area it serves.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.
R eso u rce s
(in
th o u s a n d s
o f d o lla rs )
California Overseas Bank
—
B a n k in g O ffic e s
In
o p e r a tio n
—
T o be
o p e ra te d
3
Beverly Hills, California
to purchase a portion o f the assets and assume
a portion o f the liabilities o f
Ahmanson Bank and Trust Company
21,780
3
Beverly Hills
Summary report by A tto rn e y General, October 7, 1974
California Overseas Bank ("C a lifo rn ia B ank") is a nonoperating in stitu tio n
organized fo r the purpose of effectuating the sale of the commercial banking
business (except fo r the trust business) o f Ahmanson Bank to a separate new
banking organization. A fte r consumm ation of the proposed plan, the capital
stock of California Bank w ill largely be owned by a group of investors (in
cluding foreign investors) not connected w ith either Ahmanson Bank or its
corporate parent.
It does not appear that the proposed transaction w ill have any adverse
com petitive effect.
Basis fo r C orporation approval, November 20, 1974
Pursuant to Sections 5 and 18(c) and other provisions of the Federal De
posit Insurance A ct, applications have been filed on behalf of California Over
seas Bank, Beverly Hills, C alifornia, a proposed new bank in organization, fo r
Federal deposit insurance and fo r consent to its purchase o f a p ortion of the
assets and assumption o f a po rtio n o f the liabilities o f Ahmanson Bank and
Trust Company, Beverly Hills, California ("Ahm anson B ank"), a State non
member insured bank (total resources $21,780,000; IPC deposits $16,597,000
as o f June 30, 1974). The main office and tw o existing branches o f Ahmanson
Bank would be established as the main office and branches of California Over
seas Bank.
Organization o f California Overseas Bank and the proposed purchase and
assumption transaction are being utilized by H.F. Ahmanson & Company, Los
Angeles, C alifornia, a holding company co n tro llin g 100 percent o f the voting
shares of Ahmanson Bank, to divest the commercial banking business presently
conducted by Ahmanson Bank. California Overseas Bank w ould not be in
operation as a commercial bank prior to the proposed transaction. Subsequent
to consumm ation of th a t transaction, California Overseas Bank w ould be sold
to a group o f investors, none of whom presently has an interest in any United
145
BAN K ABSORPTIONS APPROVED BY THE CORPORATION
States bank. The sale consummated, California Overseas Bank w ould be oper
ated as a commercial bank under a new management at the existing locations
of Ahmanson Bank. The proposal, o f itself, would n o t affect the com petitive
structure of commercial banking in the trade area of Ahmanson Bank or result
in a change o f the commercial banking services which Ahmanson Bank has
heretofore made available to the public. A ll factors considered pertinent to the
subject applications are favorably resolved.
On the basis o f the foregoing in fo rm a tio n , the Board o f Directors has con
cluded th at approval o f the applications is warranted.
R esources
(in
th o u s a n d s
o f d o lla rs )
The Citizens State Bank
B a n k in g O ffic e s
In
o p e r a tio n
16,327
1
6,529
1
T o be
o p e ra te d
2
W illiam sport, Indiana
to merge with
Farmers-Central Bank
West Lebanon
Summary report by A tto rn e y General, August 29, 1974
The banks are located about 6 miles apart, and are the only tw o banks in
Warren C ounty. T heir p ro x im ity and the absence o f intervening banking alter
natives indicate th a t the proposed merger would generally be regarded as like ly
to eliminate com petition between them, although the existence o f other com
petitive alternatives in adjoining Fountain C ounty and the small size o f West
Lebanon Bank w ould ameliorate this com petitive effect. We note th a t the
application indicates th a t longstanding comm on ownership and management
has already elim inated any meaningful com petition between the banks.
Basis fo r C orporation approval, November 20, 1974
The Citizens State Bank, W illiam sport, Indiana ("C itiz e n s "), an insured
State nonmember bank w ith total assets o f $16,327,000 and IPC deposits o f
$12,592,000, has applied, pursuant to Section 18(c) and other provisions o f
the Federal Deposit Insurance A ct, fo r the C orporation's p rio r consent to
merge under its charter and title w ith Farmers-Central Bank, West Lebanon,
Indiana ("F a rm e rs"), which has total assets o f $6,529,000 and IPC deposits o f
$5,291,000. As an incident to the merger, the sole office o f Farmers w ould
become a branch o f the resulting bank, increasing the to ta l number o f its
offices to two.
Competition. Citizens and Farmers each have sole offices in Warren C ounty,
about 6 miles apart. Warren C ounty (population 8,705) is in northwestern
Indiana on the Illinois border, and the area is prim arily agricultural.
For over 20 years, nearly 80 percent o f the stock o f Citizens and over 93
percent o f the stock o f Farmers have been owned by the same individual and
members o f his fa m ily. He serves as president o f both banks and, w ith other
fam ily members, controls both boards of directors. This comm on control
F E D E R A L DEPOSIT INSURANCE CORPORATION
146
antedates the original Bank Merger A ct, thereby distinguishing this application
from those involving subsequently acquired control. The proposed merger
w ould not eliminate any existing com petition, and it is highly u n likely that
control o f either bank w ould change in the foreseeable future. Moreover, the
proposed merger w ould have no effect on the structure o f commercial banking
in and around Warren C ounty, where the tw o banks have been operated in
much the same way fo r 20 years, and where both compete w ith tw o banks o f
approxim ately the same size as Citizens and Farmers combined in Fountain
C ounty.
Under the circumstances presented, the Board o f Directors is o f the opinion
that the proposed merger w ould not, in any section of the c o u n try, substan
tia lly lessen com petition, tend to create a m onopoly, or in any other manner
be in restraint o f trade.
Financial and Managerial Resources; Future Prospects. Both institutions
have adequate financial resources fo r the business they presently do. Man
agerial resources and fu tu re prospects are the same fo r both institutions and
the resulting bank, and are satisfactory.
Convenience and Needs o f the Community to be Served. The proposed
merger w ould have virtu a lly no effect on the convenience and needs o f the
Warren C ounty co m m unity. It could, however, result in sim plified operating
procedures which m ight have the effect of im proving the q u a lity o f banking
services offered to customers o f Citizens and Farmers.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.
R eso u rce s
(in
th o u s a n d s
o f d o lla rs )
The Colebrook National Bank
B a n k in g O ffic e s
In
o p e ra tio n
3,110
1
16,720
1
T o be
o p e ra te d
1
Colebrook, New Hampshire
(change title to The First Colebrook Bank)
to merge with
Colebrook Guaranty Savings Bank
C olebrook
Summary report by A tto rn e y General, October 7, 1974
Colebrook (1970 population 2,100) is located in extreme northwestern New
Hampshire, very near the V erm ont border and about 8 miles south of the
Canadian border. Guaranty Bank and National Bank are tw o o f three banks
operating in C olebrook. The th ird bank in the com m unity is a full-service
commercial bank, holding total deposits o f about $10 m illion.
Guaranty Bank and National Bank are not now in substantial com petition
w ith each other. Guaranty Bank accepts only tim e and savings deposits and
makes prim arily real estate loans, while National Bank accepts only demand
deposits and makes no real estate loans. It could be expected, however, th a t
the tw o banks w ould u ltim a te ly compete w ith each other, in view of the
recently enacted New Hampshire law which forbids continuation o f this type
BA N K ABSORPTIONS APPROVED BY THE CO RPORATION
147
of "ta n d e m " arrangement after July 1, 1975. In view o f the small size o f
National Bank, however, and of the Colebrook com m unity, the effect o f the
merger on potential com p e titio n would no t be significantly adverse.
Basis fo r C orporation approval, November 20, 1974
The Colebrook National Bank, Colebrook, New Hampshire ("C olebrook
N ational") (total resources $3,110,000; total IPC deposits $2,069,000), has
applied, pursuant to Section 18(c) and other provisions o f the Federal Deposit
Insurance A ct, fo r the C orporation's prior consent to merge w ith the Cole
brook Guaranty Savings Bank, C olebrook, New Hampshire ("C olebrook
Savings") (total resources $16,720,000; total IPC deposits $15,028,000. Cole
brook National w ould convert to State nonmember insured status under the
title "T h e First Colebrook B ank" prior to consumm ation of the merger.
Competition. C olebrook National ranks 66th among the State's 76 com
mercial banks, w ith 0.2 percent o f all commercial bank deposits in the State as
of December 31, 1973. Its only office, which it shares w ith Colebrook Savings,
is located in Colebrook (1970 population 2,094) in the northernm ost p ortion
of New Hampshire in Coos C ounty (1970 population 34,291). Colebrook
Savings is a stock in s titu tio n , one of New Hampshire's six guaranty savings
banks. It ranks 28th among all guaranty savings banks and mutual savings
banks in New Hampshire, w ith 0.9 percent of their total deposits.
Colebrook National and Colebrook Savings were organized fo r business in
the same year, share common management, as well as banking quarters, and do
not compete fo r the same services. This application fo r consent to merge is the
result o f a change in New Hampshire law p ro h ib itin g such interlocking manage
ment arrangements after July 1, 1975.
The market served by the tw o banks is considered to be C olebrook and the
adjoining towns o f Columbus, D ixville, and Stew artstown, located in the n o rth
west po rtion o f Coos C ounty, New Hampshire, an area w ith approxim ately
3,600 people. The described market and Coos C ounty had population declines
o f 5.2 percent and 7.7 percent, respectively, between 1960 and 1970, com
pared to the statewide gain o f 21.5 percent. The median household buying
level fo r Coos C ounty was $8,000 in 1973, the second lowest in the State, and
contrasts w ith a statewide median o f $9,600. The principal economic activities
in the area are dairy farm ing and lum bering, w ith a few small industrial plants
manufacturing fu rn itu re , w ood products, and plastic goods. Tourism is im
portant, b ut the remoteness o f the area restricts any major grow th fro m resort
or vacation activities. Economic a ctivity is stagnant and there appears to be
little prospect o f im provement.
C olebrook National, Colebrook Savings, and The Farmers and Traders
National and Savings Bank, also o f Colebrook, are the only banks presently
serving this lim ited and sparsely populated market. Together, Colebrook Na
tional and Colebrook Savings control 63.7 percent o f the to ta l IPC deposits in
the market, w ith th e ir only co m petitor co n trolling 36.3 percent.
C olebrook National and Colebrook Savings presently have v irtu a lly no over
lapping services. C olebrook Savings offers lim ited commercial and installm ent
lending and Colebrook National does not accept savings and tim e deposits and
makes no real estate loans. The banks do no t compete fo r comparable services
and they give the public the impression th a t they are b u t one bank. However,
because o f the impending requirements of New Hampshire law to separate th e ir
148
F E D E R A L DEPOSIT INSURANCE CORPORATION
operations, there is the prospect th a t the tw o banks could become com petitors
in the future , particularly if Colebrook Savings were to begin o ffering NOW
accounts and Colebrook National were to begin offering tim e deposits and real
estate loans. In order fo r all three Colebrook banks to continue to operate as
viable and effective com petitors, there must be a reasonable prospect th a t the
market area w ould support their independent operations. The C orporation
does not feel th a t such a finding can be made in this case. The future economy
of the area is not brig h t in view o f the small population served, its declining
trend, the relatively stagnant economic activity of the area, below average
income levels, and the lack of any significant prospects fo r fu tu re expansion or
industrial development. Even if the proposed merger is approved, the relatively
small population of 3,600 persons in the relevant market w ould still have a
choice between tw o "fu ll-se rvice " institutions. In addition, the merger w ould
avoid the necessity o f dividing the scarce managerial resources cu rre n tly avail
able to both Colebrook National and Colebrook Savings.
It is the C orporation's view, under these facts, th a t the elim ination o f fu tu re
potential com petition between Colebrook National and Colebrook Savings and
the increase in deposit concentration which their consolidation w ould effect is
not as com petitively adverse or significant as such factors m ight be in a d iffe r
ent local market in New Hampshire. The Board o f Directors, accordingly, is o f
the opinion th a t the proposed merger w ould not, in any section o f the co u n try,
substantially lessen com petition, tend to create a m onopoly, or in any other
manner be in restraint o f trade.
Financial and Managerial Resources; Future Prospects. Colebrook National
and Colebrook Savings are in satisfactory co n d itio n under their present oper
ations and the resulting bank w ould have acceptable financial and managerial
resources as well as fu tu re prospects.
Convenience and Needs o f the Community to be Served. The proposed
merger w ould have little effect on the bank services presently offered in the
C olebrook area. The one negative aspect o f the transaction w ould be the reduc
tion o f interest rates paid by Colebrook Savings on tim e deposits under
$100,000 in order to conform w ith the ceiling rate established fo r commercial
banks. The im pact o f this reduced rate would be offset to a large degree by the
emergence o f a commercial bank which w ould have the legal capacity to make
larger loans and o ffe r a broader range o f banking services. Conceivably this and
more vigorous commercial lending efforts could help stimulate the local econ
omy.
Based on the foregoing, the Board o f Directors has concluded th a t approval
o f the application is warranted contingent upon Colebrook National's con
version to the status o f a State nonmember insured bank.
Heritage Savings Bank
R esources
\ in
th o u s a n d s
o f d o lla rs )
B a n k in g O ffic e s
In
o p e r a tio n
T o be
o p e ra te d
132,082
3
6
58,386
3
Kingston, New Y o rk
to merge with
Beacon Savings Bank
Beacon
BA N K ABSORPTIONS APPROVED BY THE CO RPO RATIO N
149
Summary report by A tto rn e y General, September 10, 1974
The nearest offices o f the parties are separated by a distance o f about 20
miles w ith several com petitive alternatives located in the intervening area. A l
though the application indicates some deposit and loan overlap between the
parties, it does not appear th a t the proposed merger w ould elim inate sub
stantial existing com petition. However, Heritage's proposed office in Fishkill
w ill place th a t in s titu tio n in Dutchess C ounty w ith in about 6 miles o f Beacon's
main office. Thus, it appears th a t the proposed merger w ould eliminate the
likelihood o f increased com p e titio n between the parties in the future.
A lthough Heritage, the largest mutual savings bank in Ulster C ounty, could
branch de novo into the area served by Beacon (indeed, it w ill soon do so), the
effects o f the transaction on potential co m petition are dim inished somewhat
by the existence o f other significant potential entrants.
Basis fo r C orporation approval, November 20, 1974
Heritage Savings Bank, Kingston, New Y o rk, an insured mutual savings bank
w ith total resources o f $132,082,000 and total deposits o f $122,527,000, has
applied, pursuant to Section 18(c) and other provisions o f the Federal Deposit
Insurance A ct, fo r the C orporation's p rio r consent to merge w ith Beacon Sav
ings Bank, Beacon, New Y o rk , w ith total resources o f $58,386,000 and total
deposits o f $54,240,000, under the charter and w ith the title o f Heritage
Savings Bank. The three offices o f Beacon Savings Bank w ould become
branches o f the resulting bank, increasing the number o f its offices to seven,
including its one approved b u t unopened branch.
Competition. Heritage Savings Bank has its main office in Kingston, one
branch in Ulster, and another branch in Spring Valley in Rockland C ounty,
approxim ately 60 miles south o f the main office. A ll three o f these existing
offices are west o f the Hudson River in New Y ork's T h ird Banking D istrict.
Heritage Savings Bank has one approved but unopened branch, located in
Fishkill in the southern p o rtio n o f Dutchess C ounty. This proposed branch
represents its initial e ntry east o f the Hudson River. Beacon Savings Bank has
its main office in Beacon and branches in Red Oaks M ill and Pleasant Valley,
all three o f which are in Dutchess C ounty. The trade areas o f the tw o banks
overlap to a small degree in the Poughkeepsie area o f Dutchess C ounty.
The m arket area most affected by this proposed transaction w ould be those
areas o f Dutchess and Putnam Counties east of the Hudson River w ith in a
1 0 -1 5 m ile radius o f Beacon. The 1970 population o f Dutchess C ounty was
222,295, up 26.3 percent during the p rio r 10-year period, and the population
o f Putnam C ounty was 56,696, up 78.7 percent fo r the same period. The
economy o f the area is dominated by the presence of a large IBM complex
located near Poughkeepsie. A p p ro xim a te ly 75 percent o f the area w ork force is
employed by IBM in management, technical, and highly skilled positions, w ith
above average incomes. The 1973 household median buying levels fo r Dutchess
and Putnam Counties were $11,287 and $10,746, respectively. The comparable
figure fo r the State o f New Y o rk was $10,264. The described m arket area is
located north of, and in close p ro x im ity to , expanding m etropolitan New Y o rk
C ity w hich seems to assure continued favorable prospects fo r grow th.
There are 14 offices o f 6 th r ift in stitu tio n s— 4 mutual savings banks and 2
savings and loan associations— in the relevant m arket area. The Poughkeepsie
Savings Bank is dom inant in the area w ith almost 62 percent o f the total
150
FE D E R A L DEPOSIT INSURANCE CORPO RATIO N
deposits in such institutions. Beacon Savings Bank ranks th ird w ith about 11.5
percent o f such deposits. Both m arket shares would be lowered if the w ith
drawable funds o f the local credit unions, including the $ 4 5 -m illio n IBM credit
union, were included. The proposed transaction w ould n o t elim inate significant
existing com petition between Heritage Savings Bank and Beacon Savings Bank,
since th e ir trade areas overlap only in the Poughkeepsie area w hich is presently
dominated by The Poughkeepsie Savings Bank. The deposits the tw o banks
now hold in this area are insignificant relative to th e ir to ta l deposits, and they
have only a small number o f common deposit and loan accounts. If this pro
posed transaction were to be approved, there w ould remain an adequate num
ber o f alternate institutions located in the area to provide fo r customer con
venience and choice.
While Heritage Savings Bank and Beacon Savings Bank do not compete
significantly w ith each other at the present tim e, there is some potential fo r
increased com petition between them in the future through de novo branching.
Heritage Savings Bank has an approved but unopened branch at Fishkill in
Dutchess C ounty, only 6 miles east o f Beacon Savings Bank's main office. The
proposed transaction w ould eliminate th a t potential fo r fu tu re com petition,
but it is not considered com petitively significant in view o f the many alternate
th r ift institutions operating in the relevant m arket and the large number that
can enter this market as it becomes attractive fo r fu rth e r de novo branching.
As provided by New Y ork State law, mutual savings banks and savings and
loan associations may branch de novo anywhere w ith in the banking d istrict in
which they are headquartered, subject to home o ffice protection restrictions.
Only one o f the T h ird Banking D istrict's 10 largest mutual th r ift institutions is
presently in the growing and a fflu e n t m arket most likely to be affected by the
proposed merger. Furtherm ore, on and after January 1, 1976, New Y o rk State
law provides th a t mutual savings institutions may branch de novo anywhere
w ith in the State o f New Y o rk , subject to sim ilar restrictions. The number o f
potential entrants in addition to Heritage Savings Bank is therefore high, both
before and after January 1, 1976. In addition, this proposed transaction w ill
convert the home office o f Beacon Savings Bank into a branch office o f the
resulting bank, thus elim inating the home office protection presently provided,
to Beacon Savings Bank and allowing another th r if t in s titu tio n to branch into
Beacon.
If the proposed transaction is approved, the resulting bank w ould rank sixth
in deposit size among all mutual savings banks and savings and loan associations
in the Third Banking D istrict, w ith only 3.4 percent o f th e ir to ta l deposits.
W ith the rapid population grow th projected fo r the Third Banking D istrict, and
w ith the provisions fo r statewide branching effective in 1976, this increase in
the concentration o f banking resources is no t substantial and in any event is
not likely to be permanent.
Under the circumstances described, the Board of Directors has concluded
that the proposed transaction w ould not, in any section o f the country, sub
stantially lessen com p e titio n , tend to create a m onopoly, or in any other
manner be in restraint o f trade.
Financial and Managerial Resources; Future Prospects. Both Heritage Sav
ings Bank and Beacon Savings Bank have satisfactory financial and managerial
resources fo r th e ir respective businesses and both institutions have favorable
prospects fo r the future.
151
B A N K ABSORPTIONS APPROVED BY THE CORPORATION
Convenience and Needs o f the Community to be Served. The resulting bank
w ould o ffe r services no t now available to Beacon Savings Bank customers,
including no-passbook savings accounts fo r deposit customers and tra ct acquisi
tion and development lending services. The larger resulting bank w ould also
have an increased lending capability and should provide more effective com
p e tition fo r numerous banking services offered by other institutions in the
areas served.
Based on the foregoing, the Board o f Directors has concluded th a t approval
o f the application is warranted.
First Trust Union Bank
R eso u rce s
(in
th o u s a n d s
o f d o lla rs )
B a n k in g O ffic e s
In
o p e r a tio n
T o be
o p e ra te d
103,833
12
13
10,622
1
Wellsville, New Y o rk
to merge with
State Bank of Randolph
Randolph
Summary report by A tto rn e y General, September 4, 1974
Bank is located about 18 miles west of A pplicant's nearest office in Cat
taraugus C ounty, w ith no com petitive alternatives in the intervening area.
Thus, it appears th a t the proposed merger w ould eliminate some existing com
petition between the parties. However, it does not appear th a t concentration
w ould be substantially increased in any relevant banking market.
Therefore, we conclude th a t the proposed transaction w ould not have a
substantial com petitive impact.
Basis fo r C orporation approval, November 20, 1974
First T rust Union Bank, Wellsville, New Y o rk ("F irs t U n io n "), a State non
member insured bank w ith total resources o f $103,833,000 and total IPC
deposits o f $77,816,000, has applied, pursuant to Section 18(c) and other
provisions o f the Federal Deposit Insurance A ct, fo r the C orporation's p rio r
w ritte n consent to merge w ith State Bank o f Randolph, Randolph, New Y o rk
("S B -R andolph"), a State nonmember insured bank w ith total resources o f
$10,622,000 and total IPC deposits o f $8,364,000. The banks would merge
under the charter and title of First Union and, as an incident to the merger, the
sole o ffice of SB-Randolph would become a branch o f the resulting bank,
increasing the number o f its authorized offices to 13.
Competition. First Union operates 12 offices (2 are lim ited service facilities)
in Allegany and Cattaraugus Counties o f New Y ork's N inth Banking D istrict.
These tw o contiguous counties in western New Y o rk border Pennsylvania.
Their combined 1970 population was 128,124, an increase o f 3.2 percent over
1960. New Y o rk State, as a whole, had an 8.7 percent population increase in the
like period. The 1973 median household buying level was $8,263 fo r Allegany
C ounty and $8,534 fo r Cattaraugus C ounty, considerably below the State level
152
F E D E R A L DEPOSIT INSURANCE CORPORATION
of $10,264. First Union is a subsidiary o f Security New Y ork State Corpora
tion, Rochester, New Y ork ("S ecurity NYS C o rp o ra tio n "), a registered m u lti
bank holding company whose nine banks have to ta l deposits o f $745.5 m illion.
SB-Randolph operates its only office in Randolph (1970 population 1,498,
up 5.9 percent since 1960), Cattaraugus C ounty, which is approxim ately 70
miles west o f Wellsville. The population of Cattaraugus C ounty is 81,666, an
increase of only 1.8 percent over 1960. The Randolph area is prim a rily agri
cultural (dairy farm ing), w ith some industry located in the cities o f Jamestown
and Salamanca.
SB-Randolph's prim ary market area, where the impact o f the proposed
merger w ould be most immediate and direct, is believed to include those parts
of southwest Cattaraugus and southeast Chautauqua Counties w ith in a 15road-mile radius o f Randolph, plus the city o f Salamanca (1970 population
7,877, down 7.1 percent from 1960) which lies 20 road-miles to the east o f
Randolph b ut is easily reached by area residents. W ithin this market o f approx
im ately 80,000 persons, 8 commercial banks operate 24 offices holding IPC
deposits aggregating $277,592,000.
SB-Randolph has the sixth largest share o f such deposits, 3.0 percent, w hile
the tw o m arket area offices of First Union, both located in Salamanca, have
the fifth largest share, 3.6 percent. The resulting bank w ould have 6.6 percent
of total IPC commercial bank deposits, the fo u rth largest share o f the prim ary
market area, bu t far behind the holders (all subsidiaries of large m ultibank
holding companies) o f the three largest shares: Marine Midland BankChautauqua, National Association, Jamestown, 31.1 percent; Bankers T rust
Company o f Western New Y o rk, Jamestown, 28.4 percent; and The First
National Bank of Jamestown, a subsidiary o f Lincoln First Banks, Inc., 25.8
percent.
In view o f the number of alternatives fo r banking services available w ith in
the relevant market, the small share of area deposits held by SB-Randolph, and
the possibility th a t statewide branching, which becomes effective January 1,
1976, w ill bring new com petitors to the Jamestown and Salamanca areas, the
elim ination of existing com petition between the tw o banks by virtue of the
proposed merger appears to have only lim ited com petitive significance.
Both banks may, under present law, branch de novo th roughout the N inth
Banking D istrict, subject to home office protection. SB-Randolph, due to lim it
ed resources and a lack of branching experience, is not likely to expand
through de novo branching. First Union, although having both the resources
and experience fo r de novo branching, is not expected to branch de novo in the
relevant banking market due to the static population trend of the area, the
below average income level, the already low population fo r each existing com
mercial bank office, and the lack of attractive branching sites. However, even if
First Union were to establish additional de novo branches in this area, it w ould
not significantly affect com petition due to the small share of the market both
applicant banks presently have. Thus, it appears the proposed merger w ould
eliminate no significant potential fo r increased com petition between the tw o
banks in the future through de novo branching.
Consummation of the proposed merger w ould have no significant e ffect on
the concentration of commercial bank resources or the banking structure o f
the N inth Banking D istrict. In terms o f to ta l deposits held by the 26 banking
organizations presently operating in this d istrict, Security NYS C orporation,
153
BA N K ABSORPTIONS APPROVED BY THE CORPO RATIO N
w ith 2.7 percent of such deposits, ranks fifth largest. SB-Randolph, w ith 0.2
percent, ranks 20th. Security NYS C orporation, as a result o f the merger,
would become the fo u rth largest commercial banking organization in the dis
tric t, but w ould hold only 2.9 percent o f total commercial bank deposits. The
three largest commercial banking organizations in the N inth Banking D is tr ic tMarine Midland Banks, Inc., B uffalo (41.1 percent); First Empire State Cor
poration, B uffalo (26.5 percent); and United Bank C orporation o f New Y o rk,
Albany (11.2 percent)— have 78.8 percent o f the d istrict's total commercial
bank deposits.
Under these circumstances, the Board of Directors has concluded th a t the
proposed merger w ould not, in any section o f the co untry, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future Prospects. The financial and
managerial resources o f First Union and the resulting bank are adequate, and
their fu ture prospects are favorable.
Convenience and Needs o f the Community to be Served. Consummation o f
the proposed merger w ould provide customers o f SB-Randolph w ith a w ider
variety o f savings plans (including higher interest rates on passbook savings),
convenient trust services, credit card services, and significantly larger lending
limits.
Based on the foregoing inform ation, the Board of Directors has concluded
that approval o f the application is warranted.
Industrial Valley Bank and Trust Company
B a n k in g O ffic e s
R eso u rce s
(in
th o u s a n d s
o f d o lla rs )
In
o p e ra tio n
T o be
o p e ra te d
978,172
46
48
14,912
2
Jenkintow n, Pennsylvania
to merge with
The Neshaminy Valley Bank
Bensalem Township
Summary report by A tto rn e y General, August 23, 1974
Industrial Bank and Neshaminy Bank are headquartered about 11 miles
apart w ith several o f Industrial Bank's offices situated w ith in 10 to 15 miles o f
the nearest office of Neshaminy Bank. There are, however, several com petitive
alternatives in the intervening area. Thus, it appears th a t the proposed trans
action w ould elim inate some existing com petition. However, it does not appear
that banking concentration w ould be substantially increased in any relevant
market.
The modest size o f Neshaminy Bank in relation to other banks presently
operating in lower Bucks C ounty, together w ith the existence of other signifi
cant potential entrants in the Philadelphia area capable o f entering Neshaminy
Bank's service area, indicates th a t the proposed merger w ould not eliminate
substantial potential com petition.
Therefore, we conclude th a t the proposed transaction w ould not have a
substantial com petitive impact.
154
F E D E R A L DEPOSIT INSURANCE CORPORATION
Basis fo r C orporation approval, November 20, 1974
Industrial Valley Bank and Trust Company, Jenkintow n, Pennsylvania
( " I V B " ) , a State nonmember insured bank w ith to ta l resources o f
$978,172,000 and total IPC deposits o f $578,008,000, has applied, pursuant
to Section 18(c) and other provisions o f the Federal Deposit Insurance A ct, fo r
the C orporation's p rio r consent to merge w ith The Neshaminy Valley Bank,
Bensalem Township, Pennsylvania ("Nesham iny B a n k"), w ith total resources
of $14,912,000 and total IPC deposits of $9,531,000. The resulting bank
would have a total o f 52 approved domestic offices, including the 2 offices
presently operated by Neshaminy Bank.
Competition. IVB operates 47 domestic offices (8 in Chester C ounty, 1 in
Delaware C ounty, 7 in Lehigh C ounty, 14 in Philadelphia, 14 in Montgomery
C ounty, and 3 in Bucks C ounty) and 1 offshore fa c ility at Grand Cayman,
Cayman Islands. Three additional branches, tw o in Chester C ounty and one in
Lehigh C ounty, are approved but unopened. IVB is engaged in a wide range o f
commercial banking and trust activities and operates throughout southeastern
Pennsylvania and the adjoining States, prim arily in the Pennsylvania section o f
the Philadelphia, Pennsylvania-Camden, New Jersey Standard M etropolitan
Statistical Area ("S M S A "). Many other businesses are conducted by its w h o lly
owned subsidiaries: Industrial Valley T itle Insurance Company, Industrial
Valley Real Estate Company, and IVB-Philadelphia G olf Classic, Incorporated.
Neshaminy Bank operates its main office in unincorporated Bensalem
Township and a single branch 7 miles northeast in unincorporated Falls T o w n
ship, both in fast growing Bucks C ounty, Pennsylvania, which is contiguous to
Philadelphia and included in the SMSA. The 1970 population o f Bucks C ounty
was 415,056, up 34.5 percent from 1960, compared to the 11.0 percent in
crease fo r the SMSA over the same period. The 1973 median household buying
level fo r Bucks C ounty was $12,018, compared to $10,587 fo r the SMSA and
$9,588 fo r the State o f Pennsylvania.
The local market in which the im pact o f the proposed merger w ould be
most immediate and direct is the Pennsylvania p o rtio n o f the SMSA. F o rty
commercial banks operate 661 offices w ith in this m arket and hold IPC deposits
of more than $11.3 b illio n . Neshaminy Bank is the 31st largest commercial
bank in this market, holding 0.1 percent o f such deposits, while IVB, the 8th
largest commercial bank, holds 4.3 percent o f such deposits and the fo u r
largest banks hold 63.2 percent. The IVB office nearest to an office o f
Neshaminy Bank is approxim ately 10 miles away, and several offices o f com
peting banks lie between the applicant banks. While each bank competes in the
Philadelphia market, there is very little duplication o f deposit or loan business
and the m arket share o f Neshaminy Bank w ould indicate th a t no significant
existing co m petition between them would be eliminated by the proposed mer
ger.
Pennsylvania law permits a commercial bank to branch de novo in its main
office county and in counties contiguous thereto, but does not perm it statewide
branching or statewide operation o f m ultibank holding companies. Neshaminy
Bank, although it has one branch, is not expected to undertake fu rth e r de novo
branching a ctivity because o f its lim ited financial and managerial resources.
IVB has both the resources arid a b ility to expand by means of de novo branch
ing, but even if it were to branch de novo into the Bensalem-Falls Township
area, the effect on co m p e titio n between the tw o banks w ould be slight in view
BA N K ABSORPTIONS APPROVED BY THE CORPORATION
155
of the nominal share o f the market held by Neshaminy Bank. There are,
moreover, numerous other potential entrants into this same area. Thus it
appears that any potential com petition likely to be elim inated by the proposed
merger w ould have no significant com petitive effect.
W ithin IV B 's 7-county legal branching area, a to ta l o f 60 commercial banks
operate 784 offices and hold area IPC deposits aggregating more than $13.2
billion. IVB has the eighth largest share, 4.3 percent, w hile Neshaminy Bank,
one o f the smaller com petitors, has o nly 0.1 percent. The resultant bank w ould
retain IVB's ranking and hold 4.4 percent of the commercial bank IPC deposits
in its legal branching area. The fo u r largest banks represented in this contiguous-county area hold m arket shares varying from 18.6 percent to 9.4 per
cent o f such IPC deposits, w ith an aggregate o f 54.1 percent. In view o f the
relatively small share o f its potential branching area which the resultant bank
would control and the number o f significant sized com petitors, it appears that
the proposed merger w ould have no significant effect on commercial bank
structure or concentration of banking resources in this contiguous-county area.
Under these circumstances, the Board o f Directors is o f the opinion th a t the
proposed merger w ould not, in any section o f the country, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future Prospects. The resulting bank
w ould have satisfactory financial and managerial resources, significantly im
proving those available to Neshaminy Bank. The future prospects of the re
sulting bank w ould be satisfactory.
Convenience and Needs o f the Community to be Served. The proposed
merger w ould have no discernible e ffect on IVB's present customers. The
merger w ould provide customers o f Neshaminy Bank w ith increased lending
lim its, expanded commercial and installm ent loan accommodations, a variety
o f customer services made possible by the resulting bank's com puter, and tru st
facilities.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.
The Hastings City Bank
Resources
(in
thousands
o f dollars)
In
operation
To be
operated
24,844
1
2
8,132
1
Banking Offices
Hastings, Michigan
to consolidate with
Farmers State Bank of Middleville
M iddleville
Summary report by A tto rn e y General, May 15, 1974
Hastings and M iddleville are located in Barry C ounty, a m ixed residential,
industrial, and agricultural area located southeast o f Grand Rapids. The offices
of the parties are separated by about 11 miles and, w hile there is one com
peting bank in Hastings, there are no com petitive alternatives in the area be
tween Hastings and M iddleville. As a result o f the close p ro x im ity of the
156
F E D E R A L DEPOSIT INSURANCE CORPORATION
parties, there appears to be a substantial overlap in th e ir respective service
areas. The application indicates th a t Hastings Bank derives approxim ately 10
percent o f its deposits and loans from M iddlevilie Bank's service area, and
Middleville Bank draws approxim ately 30 percent o f its deposits and loans
from the service area o f the Hastings Bank. A ccordingly, we conclude th a t the
proposed transaction w ill eliminate existing co m p e titio n in Barry C ounty.
Five commercial banks maintain offices in Barry C ounty. Hastings Bank,
w ith approxim ately 39 percent o f county deposits, is the leading bank in the
county; the tw o largest banks hold approxim ately 65 percent o f county de
posits. Middleville Bank holds approxim ately 13 percent o f county deposits
and ranks fo u rth among the five banks w ith offices in Barry C ounty. This
proposed transaction, if consummated, w ill increase the share of the tw o larg
est banks to approxim ately 78 percent.
This increase in concentration may overstate the com petitive effect o f the
proposed transaction, due to the p ro x im ity o f com petitive alternatives in the
Grand Rapids area, w hich is about 15-20 miles northw est of M iddleville. Never
theless, we believe th a t the proposed consolidation w ould have an adverse
effect on com petition in Barry C ounty.
Basis fo r C orporation approval, November 29, 1974
The Hastings C ity Bank, Hastings, Michigan ("Hastings B ank"), an insured
State nonmember bank w ith total resources of $24,844,000 and total IPC
deposits of $19,201,000, has applied, pursuant to Section 18(c) and other
provisions o f the Federal Deposit Insurance A ct, fo r the C orporation's prio r
consent to consolidate w ith Farmers State Bank of Middleville, M iddleville,
Michigan ("F arm e rs"), w ith to ta l resources o f $8,132,000 and total IPC de
posits of $5,784,000. The banks w ould consolidate under the charter and w ith
the title o f Hastings Bank and, as an incident to the consolidation, the sole
office o f Farmers w ould become a branch o f the resulting bank, increasing the
number o f its offices to tw o.
Competition. Hastings Bank operates its only o ffice in Hastings (population
6,501) and Farmers operates its sole o ffice in M iddleville (population 1,865).
Both com m unities are in northern Barry C ounty (1970 population 38,166, up
20.3 percent since 1960) w hich is located in the southwestern po rtio n o f the
lower peninsula o f Michigan. The economy is a m ixture o f residential, indus
tria l, and agricultural activities w ith the latter expected to decrease in relative
importance as residential development increases as a result o f urban expansion.
The 1973 median household buying level fo r Barry C ounty was $8,953, about
18 percent below the State figure o f $10,932.
Barry C ounty is surrounded by fo u r o f Michigan's larger cities, each o f
which is the central c ity o f a d iffe re n t SMSA. These cities are: Lansing, the
State capital, 42 miles east o f Hastings; Grand Rapids, 35 miles northwest o f
Hastings; Kalamazoo, 36 miles southwest o f Hastings; and Battle Creek, 25
miles south o f Hastings. In view o f the fact th a t each o f these population
centers has an influence on a p o rtio n o f the participating banks' service areas,
and because o f extensive com m utation fo r em ploym ent and shopping, the
effects o f the proposed consolidation w ould appear to be most pronounced in
the legal branching area o f Hastings Bank. This consists of Barry C ounty and
tha t area outside the co u n ty contained w ith in a 25-mile radius o f Hastings. In
this region there are 23 commercial banks operating 52 offices w ith aggregate
BA N K ABSORPTIONS APPROVED BY THE CORPORATION
157
IPC deposits o f $440,348,000, including offices o f the State's larger banks.
Hastings Bank has 4.4 percent o f this total and Farmers has 1.3 percent. The
resulting bank's 5.7 percent share w ould not represent a significant change in
the existing commercial banking structure.
Hastings Bank and Farmers are about 11 miles apart, and both Hastings and
M iddieville are located on the main road between Grand Rapids and Battle
Creek. Each bank derives some business fro m the area served by the other, and
there appears to be some overlapping in th e ir service areas. The proposed
consolidation w ould, therefore, eliminate existing com petition between
Hastings Bank and Farmers, b u t because o f the relatively small size o f both
banks and the number o f much larger com petitors w ith in reasonable driving
distance, this aspect o f the proposed consolidation is n o t viewed as significant.
Michigan law w ould perm it Hastings Bank and Farmers to branch de novo
throughout Barry C ounty and w ith in 25 miles o f th e ir main offices into areas
outside Barry C ounty. De novo entry is prohibited, however, in a c ity or
village, like Hastings or M iddleville, in w hich another bank office is located.
Neither bank has ever attem pted to establish de novo branches; the population
per office in this relevant geographic area is already low and income levels are
below statewide average. It is highly d o u b tfu l th a t significant additional com
petition between the tw o banks in the future w ould be elim inated by th e ir
proposed consolidation.
Neither o f the participating banks is a ffiliated w ith a holding company, b u t
many of the banks they compete w ith are subsidiaries o f some o f the largest
m ultibank holding companies in Michigan. The proposed consolidation should
improve the com petitive stance o f the resulting bank vis-a-vis these large com
mercial banking organizations.
Based on the foregoing, the Board o f Directors has concluded th a t the
proposed consolidation w ould not, in any section o f the country, substantially
lessen com petitio n , tend to create a m onopoly, or in any other manner be in
restraint o f trade.
Financial and Managerial Resources; Future Prospects. Each of these factors
is favorable w ith respect to the consolidating banks and is so projected fo r the
resulting bank.
Convenience and Needs o f the Community to be Served. The proposed
consolidation w ould have only a lim ited effect on existing customers o f Hast
ings Bank. Farmers' customers w ould be offered tru st services and more liberal
lending policies w ith significantly larger lending lim its. In addition, Farmers'
physical facilities w ould be modernized.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.
First State Bank of Oregon
Resources
(in
thousands
of dollars)
In
operation
To be
operated
137,498
16
21
51,157
5
Banking Offices
M ilw aukie, Oregon
to merge with
Great Western National Bank
Portland
158
FE D E R A L DEPOSIT INSURANCE CORPO RATIO N
Summary report by A tto rn e y General, July 5, 1974
T w o o f Great Western's offices are located in dow ntow n Portland, as is one
office o f First State. Both banks also operate offices in close p ro x im ity in the
suburban com m unities o f Beaverton and Gresham. Great Western's remaining
office is located east o f the W illam ette River opposite dow ntow n Portland;
First State's remaining offices are distributed th ro u g h o u t the Portland area. In
view o f the p ro x im ity o f their offices, it w ould appear th a t the proposed
merger w ould elim inate direct com petition between the merging banks.
The effects o f the proposed merger on concentration in commercial banking
may be approxim ated by considering the three Oregon counties in the Portland
area: Washington, M ultnom ah, and Clackamas. Banking in this area is highly
concentrated, the tw o largest banks together accounting fo r about 73 percent
o f total commercial bank deposits. First State holds about 4.6 percent o f
tri-cou n ty deposits w hile Great Western holds about 1.7 percent. Thus, con
centration w ould be somewhat increased by the proposed merger.
Basis fo r Corporation approval, November 29, 1974
F irst State Bank o f Oregon, Milwaukie, Oregon ("F irs t S tate"), a State
nonmember insured bank w ith total resources of $143,309,000 and IPC de
posits o f $115,031,000, has applied, pursuant to Section 18(c) and other p ro
visions o f the Federal Deposit Insurance A ct, fo r the C orporation's prior con
sent to merge under its charter and title w ith Great Western National Bank,
Portland, Oregon ("G reat W estern") (total resources $49,042,000; IPC deposits
$32,850,000). The 5 offices o f Great Western, as an incident to the merger,
w ould be established as branches o f the resulting bank, w hich thereupon would
have a total o f 23 approved offices.
Competition. First State operates 16 offices in the 3 adjoining counties o f
Clackamas, M ultnom ah, and Washington w hich comprise the Oregon po rtio n o f
the Portland, Oregon-Washington SMSA, and holds the necessary supervisory
approvals to establish 2 additional offices, 1 in each o f the latter 2 counties.
The c ity o f Portland (population 380,620), the hub o f this SMSA, is a center
o f commerce, industry, and finance and is the State's largest city. The aggre
gate 1970 population o f these 3 counties was 878,676, an increase o f 20.7
percent during the 1960s, and the area now accounts fo r 42 percent o f O r
egon's total population.
Great Western has five offices, tw o in dow ntow n Portland and one each in
the nearby com m unities o f East Portland, Beaverton, and Gresham. It com
petes w ith First State in each o f these com m unities except East Portland and
faces significant co m p e titio n in all fo u r com m unities fro m First National Bank
o f Oregon and United States National Bank of Oregon, the State's tw o d o m i
nant banks, w ho together control local area IPC deposit shares ranging from
61.3 percent in d ow ntow n Portland to 90.2 percent in East Portland.
While there is existing com p e titio n between First State and Great Western in
the immediate area o f all Great Western branches except the one in East
Portland, the tw o banks have tended to cater to somewhat d iffe re n t clientele.
First State encourages commercial customers, w hile Great Western is oriented
more tow ard individual and installm ent borrowers. Moreover, since there are
decent roads and municipal transit th roughout the three-county area, this area
appears to be the most relevant banking m arket w ith in which to measure the
com petitive im pact o f the proposed merger. In th a t local banking market, 16
B A N K ABSORPTIONS APPROVED BY THE CORPORATION
159
commercial banks have 167 offices, w ith 108 such offices and 72.6 percent o f
total commercial bank IPC deposits held by the State's tw o largest banks. First
State, the fifth ranking bank in this market, holds 4.9 percent of such IPC
deposits and Great Western only 1.4 percent. Three other banks each have IPC
deposit shares in excess o f 2 percent w ith the nine remaining banks sharing the
balance o f the deposits. While some existing com p e titio n between First State
and Great Western w ould undoubtedly be elim inated by th e ir proposed merger,
the relative volume o f such com petition does n o t appear to be substantial.
Oregon law permits a commercial bank to establish de novo branches
throughout the State except in those incorporated places th a t have fewer than
50,000 inhabitants and contain the home office o f a commercial bank. In the
relevant three-county banking market, there is a potential fo r increased com
pe tition between the tw o banks in the fu tu re by virtue of de novo branching,
particularly on the part o f First State. The elim ination o f this potential com
petitio n by the proposed merger is un like ly to have much significance, how
ever, in view o f the extensive branch networks th a t the State's tw o major
commercial banks have th roughout the area and the number o f other banks
that may also be expected to pursue de novo branching opportunities as they
become feasible.
Under these circumstances, the Board o f Directors is o f the opinion th a t the
proposed merger w ould not, in any section o f the country, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future Prospects. Both banks have
adequate financial resources, as w ould the resulting bank. Great Western's
earnings performance, however, has been relatively poor and the earnings
capability o f its assets, under improved management in the resulting bank,
should be strengthened. Managerial resources and fu tu re prospects of the re
sulting bank are considered satisfactory.
Convenience and Needs o f the Community to be Served. C redit cards, per
sonal trust facilities, and com puter services would become available at Great
Western's offices fo llo w in g the merger. In addition, Great Western customers
should benefit fro m the greater lending capacity of the resulting bank.
Based on the foregoing, the Board o f Directors has concluded th a t approval
o f the application is warranted.
Union Trust & Savings Bank
Resources
(in
thousands
o f dollars)
Banking Offices
In
operation
To be
operated
51,357
5
6
3,022
1
F o rt Dodge, Iowa
to merge with
Harcourt Savings Bank
H arcourt
160
F E D E R A L DEPOSIT INSURANCE CORPO RATIO N
Summary report by A tto rn e y General, September 18, 1974
Union Bank's main office is 17 miles north o f H arcourt Savings Bank. Union
Bank's offices in Burnside and Lehigh are both located about 12 road-miles
northeast o f H arcourt Savings Bank, w ith no banking offices in the intervening
area. Thus, it appears th a t the proposed merger w ould elim inate existing com
petition between the parties.
Union Bank holds 29 percent o f commercial bank deposits in Webster C oun
ty, the second largest share held by the eight banks w ith offices in the county.
H arcourt Savings Bank holds 1.7 percent of county deposits. A ccordingly, we
conclude th at the proposed merger w ould have some adverse effects on com
petition in Webster C ounty.
A ccording to the application, certain directors o f Union Bank currently
hold 50.4 percent o f the stock o f Harcourt Savings Bank. Directors or officers
o f Union Bank also constitute a m a jo rity of the board o f directors o f H arcourt
Savings Bank. However, the application does not contain su fficie n t in fo rm a tio n
to fu lly evaluate the relevance o f these facts, and we express no opinion on
their e ffect on the foregoing com petitive report.
Basis fo r C orporation approval, December 23, 1974
Union Trust & Savings Bank, F o rt Dodge, Iowa ("U n io n T ru s t"), a State
nonmember insured bank w ith total resources o f $51,357,000 and IPC deposits
o f $41,172,000, has applied, pursuant to Section 18(c) and other provisions o f
the Federal Deposit Insurance A ct, fo r the C orporation's p rio r consent to
merge under its charter and title w ith H arcourt Savings Bank, Harcourt, Iowa
("H a rco u rt B ank"), w ith to ta l resources of $3,022,000 and IPC deposits o f
$2,634,000. As an incident to the merger, Union T rust w ould establish the sole
office of H arcourt Bank as a branch, thereby increasing the number o f its
offices to six.
Competition. Union Trust operates a total of five offices: its main office
and one branch in F o rt Dodge and one branch each in Burnside, Duncombe,
and Lehigh, small suburban towns w ith in 17 road-miles of F ort Dodge, all in
Webster C ounty (population 48,391) in the northwestern quadrant o f the State
o f Iowa. F ort Dodge (population 31,263), w hich is located 90 road-miles
northwest o f Des Moines, is the county seat o f Webster C ounty and the trading
center fo r a much broader region. Industry in F o rt Dodge is diversified w ith
meat packing and the manufacture o f pharmaceuticals, electrical equipm ent,
and gypsum products being the major activities. Corn and soybeans are ex
tensively raised in the surrounding area.
The area in w hich com petitive effects o f the proposed merger w ould be
most immediate and direct comprises southern Webster C ounty and portions o f
contiguous Boone and Greene Counties— com m unities w ith in a radius o f some
15 road-miles of Harcourt. Seven commercial banks are represented in this
local market, the ir 8 area offices serving an estimated population of 9,700 and
holding IPC deposits aggregating about $23.4 m illion. H arcourt Bank holds the
fifth largest share, about 11.2 percent, of these deposits. U nion T rust has tw o
offices in this market, located 12 road-miles and 14 road-miles northeast o f
Harcourt, w ith no other commercial bank offices intervening. These tw o area
offices o f Union Bank hold the fo u rth largest share, some 13.6 percent, of such
B A N K ABSORPTIONS APPROVED BY THE CO RPORATION
161
deposits.* A lthough existing com petition between Union T rust and Harcourt
Bank would be eliminated by their merger, this anticom petitive effect is m iti
gated by the small size of the local m arket and the number o f banking alter
natives remaining in the market. The First State Bank o f Gowrie, 6 miles west
of Harcourt, w ith about 24.4 percent o f the market's IPC deposits and Iowa
State Bank and T rust Company, located in Dayton 6 miles east o f Harcourt,
w ith about 23.4 percent o f such deposits both have market'shares comparable
to the resulting bank's 24.8 percent, while the three other banks in this market
w ould continue to be effective com petitors.
A close relationship has existed between Union Trust and H arcourt Bank
since 1950 when the m a jo rity of H arcourt Bank's stock was acquired by several
directors of Union Trust. Were this relationship to term inate, it is d o u b tfu l that
a significant potential fo r increased com petition between the tw o banks
through de novo branching w ould exist. H arcourt Bank has been operated as a
u n it bank ever since its establishment in 1905 and does no t possess the man
agerial and financial resources to facilitate its de novo expansion. Union Trust,
fo r its part, has tw o branches (established in 1934 and 1949) in H arcourt
Bank's market and w ould probably fin d fu rth e r de novo branching in this
m arket uneconomical.
In its maximum potential m arket u n d e rs ta te law— Webster C ounty and the
7 counties contiguous to or cornering upon Webster C o u n ty— the resultant
bank would hold the second largest share (7.5 percent) o f the IPC deposits
controlled by all area offices of the 52 commercial banks represented therein.
The largest share o f this potential market, 7.9 percent o f such deposits, is held
by First National Bank, F o rt Dodge. Three other banks in the market, holding
7.2 percent o f such deposits, are controlled by Brenton Banks, Inc., Des
Moines, the fo u rth largest banking organization in the State. One other m u lti
bank holding company is represented: Hawkeye Bancorporation, Des Moines,
the State's th ird largest banking organization, which controls a bank having 3.7
percent o f the area's total commercial bank IPC deposits.
Based on the foregoing, the Board o f Directors has concluded th a t the
proposed merger w ould not, in any section o f the country, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future Prospects. Each o f the p ro
ponent banks has satisfactory financial resources. Managerial resources of Har
co urt Bank, were Union Trust's supervision o f the bank's affairs term inated,
w ould be less than adequate. Future prospects of the resultant bank appear to
be favorable.
Convenience and Needs o f the Community to be Served. Customers o f
H arcourt Bank w ould fin d the resultant bank's lending lim it 13 times greater
than th a t o f Harcourt Bank. T rust facilities w ould become available at the
H arcourt location and an interest-bearing savings club w ould be introduced.
The rate o f interest now being paid on Harcourt Bank's savings deposits w ould
be increased from 4 percent to 5 percent per annum.
Based on the foregoing, the Board o f Directors has concluded th a t approval
o f the application is warranted.
*P ro p o n e n ts ' percentage shares w o u ld be reduced w ere data available con ce rn in g deposits
held b y one area o ffic e o f a c o m p e tin g ba nk.
162
F E D E R A L DEPOSIT INSURANCE CORPO RATIO N
Merger transactions were involved in the acquisitions o f banks by holding
companies in the fo llo w in g approvals in 1974. In each instance, the A tto rn e y
General's report stated th a t the proposed transaction w ould have no e ffect on
com petition. The C orporation's basis fo r approval in each case stated th a t the
proposed transaction w ould not, per se, change the com petitive structure o f
banking, nor affect the banking services th a t the (operating) bank has provided
in the past, and th a t all other factors required to be considered pertinent to the
application were favorably resolved.
Citizens Fidelity Bank and Trust Company, Louisville, K entucky; offices:
39; resources: 819,850 ($000); to merge w ith Citizens Fidelity State Banking
and Trust Company, Louisville, in organization; offices: 0; resources: 600
($000). A pproved: January 14.
Ann Arbor Bank, Ann A rb o r, Michigan; offices: 11; resources: 191,387
($000); to consolidate w ith Ann Arbor State Bank, Ann A rb o r, in organiza
tio n ; offices: 0; resources: 120 ($000). Approved: January 14.
Security Bank and Trust Company, Southgate, Michigan; offices: 7; re
sources: 400,259 ($000); to merge w ith SBTC Bank, Southgate, in organiza
tio n ; offices: 0; resources: 121 ($000). Approved: January 14.
Valley Bank o f Fort Payne, F o rt Payne, Alabama, in organization; offices:
0; resources: 100 ($000); to merge w ith and change title to Fort Payne Bank,
F ort Payne; offices: 1; resources: 15,600 ($000). Approved: January 29.
Zeeland State Bank, Zeeland, Michigan, in organization; offices: 0; re
sources: 120 ($000); to consolidate w ith and change title to First Michigan
Bank and Trust Company, Zeeland; offices: 10; resources: 107,324 ($000).
Approved: January 29.
The Wooster Banking and Trust Company, Wooster, Ohio, in organization;
offices: 0; resources: 625 ($000); to merge w ith and change title to The Com
mercial Banking & Trust Company, Wooster; offices: 4; resources: 28,380
($000). A pproved: January 29.
South Street State Bank, A rlin g to n , Texas, in organization; offices: 0; re
sources: 200 ($000); to merge w ith and change titie to Arlington Bank and
Trust, A rlin g to n ; offices: 1; resources: 92,993 ($000). A pproved: January 29.
New Farmers State Bank & Trust Company, Cuero, Texas, in organization;
offices: 0; resources: 75 ($000); to merge w ith and change title to Farmers
State Bank & Trust Company, Cuero; offices: 1; resources: 10,214 ($000);
Approved: January 29.
Union Commerce Bank, F ort W orth, Texas, in organization; offices: 0; re
sources: 200 ($000); to merge w ith and change title to Union Bank o f Fort
Worth, F ort W orth; offices: 1; resources: 28,591 ($000). Approved: January
29.
New Community State Bank, Runge, Texas, in organization; offices: 0;
resources: 50 ($000); to merge w ith and change title to Community State
Bank, Runge; offices: 1; resources: 3,474 ($000). Approved: January 29.
New Smiley State Bank, Smiley, Texas, in organization; offices: 0; re
sources: 50 ($000); to merge w ith and change title to Smiley State Bank,
Sm iley; offices: 1; resources: 1,849 ($000). Approved: January 29.
B A N K ABSORPTIONS APPROVED BY THE CO RPO RATIO N
163
New Home State Bank, W esthoff, Texas, in organization; offices: 0; re
sources: 50 ($000); to merge w ith and change title to Home State Bank,
W esthoff; offices: 1; resources: 1,125 ($000). Approved: January 29.
Hamilton Bank o f Dalton, Dalton, Georgia; offices: 4; resources: 42,352
($000); to merge w ith Dalton State Bankr Dalton, in organization; offices: 0;
resources: 600 ($000). Approved: February 8.
New Deer Park Bank, Deer Park, Texas, in organization; offices: 0; re
sources: 75 ($000); to merge w ith and change title to Deer Park Bank, Deer
Park; offices: 1; resources: 20,610 ($000). Approved: February 14.
New Fairbanks Bank o f Houston, Houston, Texas, in organization; offices:
0; resources: 200 ($000); to merge w ith and change title to Fairbanks Bank o f
Houston, Houston; offices: 1; resources: 17,071 ($000). Approved: February
14.
New Memorial Bank, Houston, Texas, in organization; offices: 0; resources:
200 ($000); to merge w ith and change title to Memorial Bank, Houston; o f
fices: 1; resources: 40,012 ($000). A pproved: February 14.
New Citizens Bank, Kilgore, Texas, in organization; offices: 0; resources: 75
($000); to merge w ith and change title to Citizens Bank, Kilgore; offices: 1;
resources: 20,700 ($000). A pproved: February 14.
New Clear Creek Bank, Seabrook, Texas, in organization; offices: 0; re
sources: 50 ($000); to merge w ith and change title to Clear Creek Bank,
Seabrook; offices: 1; resources: 11,937 ($000). Approved: February 14.
Bank o f Guntersville, Guntersville, Alabama, in organization; offices: 0;
resources: 100 ($000); to merge w ith and change title to Citizens Bank o f
Guntersville, Guntersville; offices: 3; resources: 15,354 ($000). Approved:
March 1.
Everhart Staples State Bank, Corpus Christi, Texas, in organization; offices:
0; resources: 200 ($000); to merge w ith and change title to Parkdale State
Bank, Corpus C hristi; offices: 1; resources: 28,952 ($000). Approved: March
20 .
Hamilton State Bank o f McMinnville, M cM innville, Tennessee, in organiza
tio n ; offices: 0; resources: 112 ($000); to merge w ith and change title to
Citizens State Bank, M cM innville; offices: 2; resources: 5,468 ($000). A p
proved: A p ril 11.
Bank o f Virginia — Eastern Shore, Accomack C ounty, V irginia, in organiza
tio n ; offices: 0; resources: 2,000 ($000); to acquire the assets and assume the
deposit liabilities o f the Hailwood Branch o f Bank o f Virginia — Central, Hallwood; offices: 1; resources: 20,041 ($000). A pproved: A p ril 11.
The State Bank o f Clarksville, Clarksville, Tennessee, in organization; o f
fices: 0; resources: 150 ($000); to merge w ith and change title to First Trust &
Savings Bank, Clarksville; offices: 5; resources: 39,366 ($000). Approved:
A p ril 26.
Northline State Bank, Houston, Texas; offices: 1; resources: 14,687 ($000);
to merge w ith New Northline State Bank, Houston, in organization; offices: 0;
resources: 200 ($000). A pproved: A p ril 26.
164
F E D E R A L DEPOSIT INSURANCE CO RPORATION
The Guaranty State Bank o f New Braunfels, New Braunfels, Texas; offices:
1; resources: 18,671 ($000); to merge w ith First Guaranty State Bank, New
Braunfels, in organization; offices: 0; resources: 200 ($000); Approved: A p ril
26.
Bank o f Gore, Inc., Gore, Virginia, in organization; offices: 0; resources: 50
($000); to merge w ith and change title to Western Frederick Bank, Gore;
offices: 1; resources: 4,384 ($000). A pproved: A p ril 26.
Alabama Bank o f Andalusia, Andalusia, Alabama, in organization; offices:
0; resources: 100 ($000); to merge w ith and change title to Covington County
Bank, Andalusia; offices: 1; resources: 19,777 ($000). Approved: May 2.
Alabama Bank o f Goodwater, Goodwater, Alabama, in organization; o f
fices: 0; resources: 225 ($000); to merge w ith and change title to City Bank o f
Goodwater, Goodwater; offices: 1; resources: 9,341 ($000). Approved: May 2.
Alabama Bank o f Lineville, Lineville, Alabama, in organization; offices: 0;
resources: 25 ($000); to merge w ith and change title to City Bank o f Lineville,
Lineville; offices: 1; resources: 7,715 ($000). Approved: May 2.
Alabama Bank o f Roanoke, Roanoke, Alabama, in organization; offices: 0;
resources: 255 ($000); to merge w ith and change title to City Bank o f Roan
oke, Roanoke; offices: 2; resources: 11,045 ($000). Approved: May 2.
Alabama Bank o f Tuskegee, Tuskegee, Alabama, in organization; offices: 0;
resources: 100 ($000); to merge w ith and change title to City Bank o f Tus
kegee, Tuskegee; offices: 2; resources: 10,276 ($000). Approved: May 2.
FHB Bank, H onolulu, Hawaii, in organization; offices: 0; resources: 1,500
($000); to merge w ith and change title to First Hawaiian Bank, H onolulu;
offices: 44; resources: 864,650 ($000). Approved: May 2.
FSB Bank, Ionia, Michigan, in organization; offices: 0; resources: 120
($000); to consolidate w ith and change title to First Security Bank, Ionia;
offices: 5; resources: 61,273 ($000). Approved: May 2.
Chemical Bank and Trust Company, M idland, Michigan; offices: 9; re
sources: 137,555 ($000); to consolidate w ith CBTBank Company, Midland, in
organization; offices: 0; resources: 120 ($000). A pproved: May 2.
Manufacturers Bank o f Saline, Saline, Michigan, in organization; offices: 0;
resources: 120 ($000); to consolidate w ith and change title to Saline Savings
Bank, Saline; offices: 2; resources: 14,182 ($000). Approved: May 2.
Highland Commerce Bank, San A n to n io , Texas, in organization; offices: 0;
resources: 200 ($000); to merge w ith and change title to Highland Park State
Bank, San A n to n io ; offices: 1; resources: 73,415 ($000). Approved: May 2.
Wilson County Bank and Trust Company, Wilson, N orth Carolina, in organ
ization; offices: 0; resources: 375 ($000); to merge w ith and change title to
Branch Banking and Trust Company, Wilson; offices: 64; resources: 388,765
($000). A pproved: May 29.
Almeda- Genoa Bank, Houston, Texas; offices: 1; resources: 10,203
($000); to merge w ith New Almeda - Genoa Bank, Houston, in organization;
offices: 0; resources: 200 ($000). Approved: May 29.
BA N K ABSORPTIONS APPROVED BY THE CO RPORATION
165
Meyerland Bank, Houston, Texas; offices: 1; resources: 22,083 ($000); to
merge w ith New Meyerland Bank, Houston, in organization; offices: 0; re
sources: 200 ($000). Approved: June 4.
Bank o f Hartselle, Hartselle, Alabama, in organization; offices: 0; resources:
100 ($000); to merge w ith and change title to American Bank & Trust Com
pany, Hartselle; offices: 1; resources: 14,776 ($000). Approved: July 2.
Chattanooga State Bank, Chattanooga, Tennessee, in organization; offices:
0; resources: 300 ($000); to merge w ith and change title to Pioneer Bank,
Chattanooga; offices: 12; resources: 120,354 ($000). Approved: July 8.
M B T Bank, Chicago, Illinois, in organization; offices: 0; resources: 350
($000); to merge w ith and change title to Madison Bank and Trust Company,
Chicago; offices: 1; resources: 86,011 ($000). Approved: July 11.
Mount Juliet State Bank, M ount Juliet, Tennessee, in organization; offices:
0; resources: 75 ($000); to merge w ith and change title to Bank of Mount
Juliet, M ount Juliet; offices: 1; resources: 10,348 ($000). Approved: July 26.
Rescinded: December 16.
The Shoreman's Bank, Salisbury, Maryland, in organization; offices: 0; re
sources: 90 ($000); to merge w ith and change title to Truckers and Savings
Bank, Salisbury; offices: 3; resources: 15,672 ($000). A pproved: September
12.
Alabama Bank o f Lauderdale County, Anderson, Alabama, in organization;
offices: 0; resources: 77 ($000); to merge w ith and change title to Farmers
Bank, A nderson;offices: 1; resources: 6,306 ($000). Approved: September 20.
Alabama Bank o f Selma, Selma, Alabama, in organization; offices: 0; re
sources: 100 ($000); to merge w ith and change title to Citizens Bank & Trust
Company, Selma; offices: 2; resources: 21,528 ($000); A pproved: September
20 .
First Guaranty State Bank, New Braunfels, Texas, in organization; offices:
0; resources: 200 ($000); to merge w ith and change title to The Guaranty State
Bank o f New Braunfels, New Braunfels; offices: 1; resources: 18,790. A p
proved: September 20.
Mobile County Bank,Bayou La Batre, Alabama, in organization; offices: 0;
resources: 100 ($000); to merge w ith Farmers and Marine Bank, Bayou La
Batre; offices: 2; resources: 5,824 ($000). Approved: October 1.
OSB Bank, Owosso, Michigan, in organization; offices: 0; resources: 120
($000); to consolidate w ith The Owosso Savings Bank, Owosso; offices: 8;
resources: 102,184 ($000). A pproved: October 1.
Jacobus State Bank, Milwaukee, Wisconsin, in organization; offices: 0; re
sources: 600 ($000); to acquire the assets and assume the deposit liabilities o f
(and change title to) Heritage Bank o f Milwaukee, Milwaukee; offices: 3; re
sources: 45,588 ($000). Approved: October 1.
North Shore Bank and Trust Company, Lynn, Massachusetts, in organiza
tio n ; offices: 0; resources: 0 ($000); to merge w ith North Shore Bank and
Banking Company, Lynn; offices: 2; resources: 5,943 ($000). Approved:
October 15.
166
F E D E R A L DEPOSIT INSURANCE CO RPORATION
United Virginia Bank o f Gloucester, Gloucester, Virginia, in organization;
offices: 0; resources: 50 ($000); to merge w ith Bank o f Gloucester, Gloucester;
offices: 2; resources: 28,693 ($000). Approved: October 15.
First State Bank o f Newaygo, Newaygo, Michigan; offices: 1; resources:
8,326 ($000); to consolidate w ith FSN Bank, Newaygo, in organization; o f
fices: 0; resources: 120 ($000). A pproved: October 22.
Madison State Bank, Rexburg, Idaho, in organization; offices: 0; resources:
1,300 ($000); to merge w ith and change title to Valley Bank, Rexburg; offices:
6; resources: 85,011 ($000). Approved: October 29.
Bank o f Mount Clemens, M ount Clemens, Michigan, in organization; offices:
0; resources: 122 ($000); to consolidate w ith and change title to Mount
Clemens Bank, M ount Clemens; offices: 7; resources: 102,252 ($000). A p
proved: October 30.
New Bank o f Lake County, Lakeport, C alifornia, in organization; offices: 0;
resources: 67 ($000); to merge w ith and change title to Bank o f Lake County,
Lakeport; offices: 3; resources: 14,776 ($000). Approved: November 6.
OSS Bank, Oscoda, Michigan, in organization; offices: 0; resources: 130
($000); to consolidate w ith and change title to The Oscoda State Savings Bank,
Oscoda; offices: 2; resources: 12,717 ($000). Approved: November 8.
Idaho Bank and Trust Company, Pocatello, Idaho; offices: 18; resources:
209,258 ($000); to merge w ith IBT, Inc., Pocatello, in organization; offices: 0;
resources: 0 ($000). Approved: November 14.
Pecan Street State Bank, Coleman, Texas, in organization; offices: 0; re
sources: 75 ($000); to merge w ith and change title to Coleman Bank, Coleman;
offices: 2; resources: 19,050 ($000). Approved: November 21.
New Cullen Center Bank & Trust, Houston, Texas, in organization; offices:
0; resources: 200 ($000); to merge w ith and change title to Cullen Center Bank
& Trust, Houston; offices: 4; resources: 241,541 ($000). Approved: November
29.
The State Bank o f McEwen, McEwen, Tennessee, in organization; offices: 0;
resources: 75 ($000); to merge w ith and change title to The Union Bank,
McEwen; offices: 2; resources: 15,110 ($000). A pproved: December 31.
New Union State Bank o f Beaumont, Beaumont, Texas, in organization;
offices: 0; resources: 200 ($000); to merge w ith and change title to Union
State Bank o f Beaumont, Beaumont; offices: 1; resources: 9,723 ($000). A p
proved: December 31.
New American Bank and Trust Company, Houston, Texas, in organization;
offices: 0; resources: 200 ($000); to merge w ith and change title to American
Bank and Trust Company, Houston; offices: 2; resources: 51,174 ($000). A p
proved: December 31.
New KirbyviUe State Bank o f Kirbyville, K irbyville, Texas, in organization;
offices: 0; resources: 50 ($000); to merge w ith and change title to The Kirby
ville State Bank o f Kirbyville, K irb yville ; offices: 1; resources: 8,903 ($000).
A pproved: December 31.
BA N K ABSORPTIONS APPROVED BY THE CO RPO RATIO N
167
New Security Bank, Spring, Texas, in organization; offices: 0; resources: 75
($000); to merge w ith and change title to Security Bank, Spring; offices: 1;
resources: 17,758 ($000). Approved: December 31.
168
F E D E R A L DEPOSIT INSURANCE CORPORATION
BANK ABSORPTION DENIED BY THE CORPORATION
The Bank of South Texas
Banking Offices
Resources
(in
thousands
of dollars)
In
operation
To be
operated
25,447
1
1
16,260
1
Alice, Texas
to merge with
First National Bank of Alice
Alice
Summary report by A tto rn e y General, December 10, 1974
There are six banks, each w ith one office, in Jim Wells C ounty. Three are in
A lice; one is in Orange Grove about 15 miles fro m Alice; one is in Sandia about
20 miles from Alice; and one is in Premont, about 30 miles from Alice. A p p li
cant ranks second in total county deposits w ith nearly 25 percent, w hile Bank
ranks th ird w ith approxim ately 18 percent. The county's largest bank, located
in Alice, controls about 47 percent o f to ta l deposits.
The proponents' offices are located about 2 miles apart in the c ity o f Alice.
A pplicant is the second largest o f three Alice banks, accounting fo r nearly 28
percent o f total city deposits, w hile Bank is the smallest o f the three w ith
almost 20 percent.
The application indicates th a t the banks are presently under common
ownership and management. A group o f 16 persons (one of these is actually an
estate) currently owns 181,871 shares, or about 73 percent, o f the 250,000
authorized and outstanding shares of capital stock of A pplicant; the same
group owns 119,976 shares, or about 80 percent, o f the 150,000 authorized
and outstanding shares o f Bank's capital stock. Even more significant is the fact
tha t one individual, W. Frederick Erck, owns nearly 57 percent (141,628
shares) o f A pplicant's stock and nearly 59 percent (87,999 shares) of Bank's
stock. The application indicates that the existing common ownership was
established in early 1970, when A pplicant and Bank each held approxim ately
$9 m illio n in deposits.
In addition to comm on ownership, the proponents have tw o cases o f com
mon management. Mr. Erck serves as Chairman of the Board o f both Bank and
A pplicant and as President o f Bank; he is also d irector o f both banks. Mr. N.O.
Adams, Jr. serves as President o f A pplicant and Vice President of Bank; he too
is a director o f both banks.
In view o f their comm on ownership and management, it appears u n like ly
that substantial com p e titio n presently exists between the parties to the pro
posed transaction. Their merger w ould, however, make permanent whatever
lessening o f com petition occurred when the banks became com m only owned.
Basis fo r Corporation denial, December 31, 1974
The Bank o f South Texas, Alice, Texas, a State nonmember insured bank
w ith tota l resources o f $25,447,000 and total IPC deposits o f $18,422,000, has
applied, pursuant to Section 18(c) and other provisions o f the Federal Deposit
BA N K ABSORPTION DEN IED BY THE CORPORATION
169
Insurance A ct, fo r the C orporation's p rio r w ritte n consent to merge under its
charter and title w ith First National Bank o f Alice, Alice, Texas ("F irs t Na
tio n a l"), w ith total resources o f $16,260,000 and to ta l IPC deposits o f
$11,182,000. In order to com ply w ith State law, the only office o f First
National w ould be discontinued and the resulting bank w ould operate at the
present office o f Bank o f South Texas.
In January 1970, Fredrick Erck purchased a m a jo rity interest in the o u t
standing capital stock o f Bank of South Texas (57.9 percent) and o f First
National (58.6 percent). Both banks (or their predecessors) had operated in
dependently fo r more than 30 years prio r to Mr. Erck's acquisitions. For
several years, Mr. Erck has served as chairman o f each bank and is now also
president o f First National. While it is argued th a t no meaningful com petition
between the tw o banks now or in the fu tu re w ould be eliminated by the
proposed merger because of their present a ffilia tio n , and th a t the merger
should be speedily approved, the C orporation believes th a t any such summary
disposition o f the application w ould encourage widespread evasion o f the p ur
poses o f the Bank Merger A ct.
A central purpose o f the Bank Merger A c t is, o f course, to preclude bank
mergers th a t are significantly anticom petitive. If ownership or control of tw o
or more banks by an individual, or group, were treated, ipso facto, as im m u
nizing the proposed merger o f the banks from scrutiny under the com petitive
standards of the Bank Merger A ct, then the A c t w ould, in substantial respects,
be rendered a n u llity , since the purchase o f stock control gives rise to no such
supervisory review. A nd, presumably, under the reading o f the law urged by
the applicant, there w ould be no lim it to the number o f banks, in a given
geographic market, th a t an individual, or group, could so acquire. Congress
could not have intended the Bank Merger A c t to be so easily frustrated.
The C orporation has consistently taken the position that, in cases such as
this, it is pertinent to inquire whether the banks proposing to merge were
meaningful com petitors prior to their a ffilia tio n , whether such a ffilia tio n was
effected before or after June 17, 1963 (the "g ra n d fa th e r" date used in connec
tion w ith the Bank Merger A c t Amendments o f 1966), and whether the banks
have now, or had at the tim e o f a ffilia tio n , the potential to become meaningful
com petitors but for the a ffilia tio n .* If the acquisition o f stock control e lim i
nated substantial existing com petition, or foreclosed significant potential com
petition, between tw o or more banks sought to be merged, the merger w ould,
obviously, give permanence to th a t anticom petitive effect. In the absence o f
any overriding banking factors or considerations o f the convenience and needs
*See, e.g., Basis fo r C o rp o ra tio n approval o f th e merger o f The Farmers and M erchants
Savings Bank w ith The Lone Tree Savings Bank, 1970 F D IC A nnu al Report 118, f. 1;
Basis fo r C o rp o ra tio n approval o f th e c o n s o lid a tio n o f C itizens S tate B ank w ith E m ba r
rass State Bank, 19 70 F D IC A nnual Report 127, f. 1; Basis fo r C o rp o ra tio n denial o f the
proposed a c q u is itio n o f The C itizens and S outh ern Bank o f T u cke r b y The C itizens and
S outh ern E m o ry Bank, 1971 F D IC A nnu al Report 152, 15 4; Basis fo r C o rp o ra tio n
approval o f th e a c q u is itio n o f The Oil C ity B ank b y Caddo T ru s t and Savings B ank, 1972
F D IC A nnu al Report 119, f. 1; Basis fo r C o rp o ra tio n approval o f m erger o f Peoples B ank
and T ru s t C om pany w ith th e N o rto n v ille Bank, 1972 F D IC A nnu al Report 141, f. 1; and
Basis fo r C o rp o ra tio n approval o f th e m erger o f State Savings B ank w ith The F irst
N ation al Bank o f K lem m e, 1973 F D IC A nnu al Report 94 , f. 1. Cf. K in tn e r, A n A ntitrust
FRASER
Primer, 89 -90.
Digitized for
170
F E D E R A L DEPOSIT INSURANCE CORPORATION
o f the com m unity to be served, the C orporation believes such proposed merg
ers should be denied whether or not denial leads to d is a ffilia tio n .**
The C orporation has, therefore, proceeded to analyze the com petitive fac
tors presented by the proposed merger in the light o f the situation existing at
the tim e stock control o f the tw o banks was acquired by Mr. Erck in 1970.
Competition. Alice is located in southern Texas some 43 miles west o f
Corpus Christi. It serves as the seat o f Jim Wells C ounty and is the principal
commercial center fo r the county and a somewhat larger area. Alice's popula
tion was 20,121 in 1970, having declined by 3.5 percent since 1960. Median
household income in Jim Wells C ounty was $6,354 in 1973, which was 27.7
percent below the statewide median. The economy of this area is based on
agriculture and various industries in and around Alice, including oil field supply
and meat packing.
The local banking m arket most relevant to an evaluation of the proposed
merger can be approxim ated by the c ity o f Alice and th a t area w ith in a radius
of about 15 miles. This market covers a large area in central Jim Wells C ounty
and smaller portions o f adjacent Duval, Kleberg, and Nueces Counties, where
median household incomes in 1973 were $4,153, $7,492, and $8,556, respec
tively. The overall population o f about 36,000 in the m arket is heavily con
centrated in and around Alice. A t the present tim e, there are five commercial
banks in this market, w ith total deposits of approxim ately $79 m illio n . Bank
o f South Texas and First National rank second and th ird w ith respect to local
m arket shares, which are 27.4 percent and 17.8 percent, respectively. Alice
National Bank, Alice, Texas, ranks firs t w ith 43.6 percent; First State Bank o f
San Diego, San Diego, Texas, ranks fo u rth w ith 6.5 percent; and Farmers State
Bank, Orange Grove, Texas, ranks fifth w ith 4.7 percent. (Mr. Erck controls
approxim ately 49.0 percent o f the outstanding capital stock o f this bank as
well as m a jo rity control of the tw o banks sought to be merged.)
As of December 31, 1969, just prior to Mr. Erck's purchase o f m a jo rity
control o f the merging banks, the same five banks were the only banks com
peting in the A lice market. T heir market shares in terms o f to ta l commercial
bank deposits were: Alice National Bank, 46.1 percent; First National, 18.6
percent; Bank of South Texas, 17.9 percent; First State Bank o f San Diego,
13.0 percent; and Farmers State Bank, 4.5 percent. Thus, p rio r to their a ffilia
tion, the merging banks were direct and significant com petitors in Alice, where
they represented tw o o f the three banks in to w n , and they were also direct and
significant com petitors w ith in the relevant geographic m arket where they and
the Farmers State Bank, Orange Grove, represented three o f only five com
peting banks.
A t the tim e o f a ffilia tio n , the Alice market had approxim ately tw o-thirds
the total deposits th a t are currently held by commercial banks in the market.
The tota l o f such deposits was $50.0 m illio n as o f January 1, 1970, as com
pared to $79.2 m illio n as o f June 30, 1974. While the population and aggregate
deposits of the relevant geographic market in and around A lice were quite
small in 1970 and still are, compared to the markets involved in ju d icia lly
* * A stated in te n tio n n o t to d is a ffilia te even if th e proposed m erger is de nied is, o f course,
self-serving and s ub je ct to change.
B A N K ABSORPTION DEN IE D BY THE CORPO RATIO N
171
decided bank merger cases, the A lice banking m arket appears to constitute an
econom ically significant "section o f the c o u n try " whose center is an in co r
porated c ity of more than 20,000 persons.***
T hat being so, it w ould appear th a t the merger o f the tw o banks in 1970
w ould have been a clear violation o f Section 7 of the C layton A c t under the
criteria established in United States v. Phillipsburg National Bank, 399 U. S.
350 (1970). In th a t case, seven commercial banks were found to be com
petitors in the relevant geographic market. Here, there are five. The banks there
seeking to merge ranked th ird and fifth largest among the seven, the larger
having 13.7 percent o f the total commercial bank deposits in the market, and
the tw o banks together having 23.4 percent o f such deposits. Here, First Na
tional alone had 18.6 percent and Bank o f South Texas, 17.9 percent o f the
tota l commercial bank deposits in the m arket in 1970, ranking second and
th ird in this respect. There, the largest bank operating in the m arket held a
much larger share o f the to ta l commercial bank deposits in the m arket (41.4
percent) than either bank proposed to be merged and a much larger share o f
such deposits than the bank resulting fro m their merger w ould have held. Here,
Alice National Bank held a much larger share in the market (46.1 percent) than
either First National or Bank o f South Texas although the bank resulting from
their proposed merger w ould have been only slightly smaller than the largest
bank. There, the merger increased the share of deposits held by the three
largest banks in the m arket fro m 70 percent to 80 percent. Here, the com
parable percentage in 1970— even counting Farmers State Bank, Orange Grove,
as an independent bank— w ould have increased fro m 83 percent to 96 percent.
N ot only was substantial existing com petition between Bank o f South Texas
and First National elim inated by Mr. Erck's acquisition o f common control in
1970, a significant potential fo r increased com petition between them in the
future was also elim inated. Such future com petition w ould have developed
regardless o f w hether the bank n o t acquired by Mr. Erck had remained in
dependent or had been acquired by one o f the growing number o f m ultibank
holding companies operating in Texas.
The C orporation finds accordingly th a t the e ffect o f the 1970 acquisition o f
stock control was "substantially to lessen c o m p e titio n " in the A lice banking
m arket and th a t the proposed merger w ould give permanence to th a t a n ti
com petitive result in fru stra tio n o f the Bank Merger A ct.
Convenience and Needs o f the Community to be Served. The proposed
merger w ould adversely a ffect the convenience and needs of the co m m u n ity
being served by First National. Under Texas law, First National's office w ould
have to be closed and discontinued. This office, along w ith the o ffice o f A lice
National Bank, is located in Alice's business district, a deteriorating area w ith
an increasing number o f vacant buildings. While the continuance o f First Na
tional's o ffice may not reverse this trend, its closing w ill surely serve to acceler
ate it. Arguments have been made th a t the closing o f this office w ill make A lice
more attractive fo r de novo entry. But outside banks today are like ly to view
the office o f Bank o f South Texas and First National as being com ponent parts
o f one banking organization. Since no outside bank has attem pted de novo
***Cf. United States v. County N at'l Bank o f Bennington, 3 3 0 F. S upp. 155 (D . V t.
19 7 1 ), 339 F. Supp. 85 (D . V t. 1 9 7 2 ).
172
F E D E R A L DEPOSIT INSURANCE CORPO RATIO N
entry since 1970, the C orporation finds no reason to believe th a t the proposed
merger w ould enhance the prospects fo r de novo entry in the future. In its
view, the d isaffilia tio n of one o f these banks subsequent to denial of the
proposed merger and the acquisition o f th a t bank by a com peting organization
is at least an equal possibility w ith a healthier com petitive result.
While the resulting bank's increased lending lim it m ight make it more com
petitive w ith Alice's largest bank, loan participations w ith Mr. Erck's out-ofarea banks can provide loans o f the same size at the present time. The resulting
bank, moreover, intends to o ffe r no banking services th a t are not presently
available at Bank o f South Texas and First National. Considerations o f con
venience and need are, therefore, either neutral or negative and add no w eight
towards approval o f the proposed merger.
Financial and Managerial Resources; Future Prospects. These factors are
adequate w ith respect to both o f the merging banks, as they were in 1970.
They, too, add no decisive w eight tow ard approval of a proposed merger under
the com petitive considerations here presented.
Conclusion. The application now before the C orporation presents the firs t
o p p o rtu n ity fo r supervisory review o f the anticom petitive effects o f the 1970
a ffilia tio n o f Bank o f South Texas and First National through Mr. Erck's
purchase of common control. Since it is clear th a t a merger application sub
m itted in 1970 w ould have been denied by the C orporation under guidelines
similar to those enunciated in the Phillipsburg case, there being present no
overriding banking factors or considerations o f convenience and need, the C or
poration has concluded th a t the present application should also be denied so as
to encourage compliance w ith the standards o f the Bank Merger A c t as deter
mined in decided co u rt cases.
LEGISLATION AND REGULATIONS
PARTTHREE
v
y
175
FEDERAL LEGISLATION - 1974
Depository Institutions Amendments of 1974. The Depository
Institutions Amendments o f 1974, Title I of Public Law 93-495,
approved by the President on October 28, 1974, contain provisions
significant to deposit insurance and insured banks. Effective
November 27, 1974, the deposit insurance lim it is increased to
$100,000 for funds deposited in time and savings accounts in in
sured banks, or in federally insured savings and loan associations or
credit unions, by any person having official custody of funds of the
Federal Government or of the State where the financial institution
is located, or of any political subdivision of that State. Federal
financial regulatory agencies are given the authority to lim it the
aggregate amount of public funds deposited in any bank, savings
and loan association, or credit union. This higher insurance lim it is
designed to increase competition among financial institutions for
the deposits of public units. Also effective on November 27, 1974,
the ceiling on the insurance coverage afforded other depositors in
federally insured banks, savings and loan associations, and credit
unions is increased from $20,000 to $40,000.
The Depository Institutions Amendments of 1974 also provide
that the Federal agencies regulating financial institutions, and under
the authority of the Securities Exchange Act of 1934 (15 U.S.C.
§§ 78a et seq.) also the securities issued by such institutions, must
adopt regulations substantially similar to those prescribed by the
Securities and Exchange Commission under the statutory provisions
in question, unless a financial regulatory agency finds that such
regulations would not be necessary or appropriate in the public
interest or for protection of investors and publishes such findings in
the Federal Register.
In addition, a moratorium is imposed (until June 30, 1976) on
the conversion of insured mutual savings banks to the stock form of
organization, unless the responsible Federal bank regulatory agency
determines that the conversion is required to maintain the safety,
soundness, and stability of an insured bank. A similar moratorium
applies to conversions of mutual savings and loan associations, ex
cept for a limited number of test cases.
The authority of the Federal financial regulatory agencies under
section 7 of the Act of September 21, 1966, (Public Law 89-597)
to set flexible interest or dividend rate maximums on the time and
savings deposits of financial institutions is extended until December
31, 1975. This authority was due to expire on December 31, 1974.
The Depository Institutions Amendments of 1974 also granted
the Board of Governors o f the Federal Reserve System authority to
issue cease-and-desist orders against bank holding companies and
nonbank subsidiaries engaging in unsafe or unsound practices.
176
F E D E R A L DEPOSIT INSURANCE CORPORATION
National Commission on Electronic Fund Transfers. Title II of
Public Law 93-495 established the National Commission on Elec
tronic Fund Transfers. The Commission is composed of 26 mem
bers, including the heads of 12 Federal agencies having an interest
in this subject and 14 members appointed by the President— 2 from
State financial regulatory agencies, 7 from various segments of the
business community, and 5 from the public at large. The Com
mission is directed to conduct a thorough study and investigation of
electronic fund transfer systems and to recommend appropriate
administrative action and legislation. The Commission's final report
must be made w ithin 2 years.
The Fair Credit Billing Act. The Fair Credit Billing Act, Title III
of Public Law 93-495, which becomes effective 1 year after the
date of its enactment, amends the Truth in Lending Act (15 U.S.C.
§ § 1601 -1665) to prohibit certain unfair and inaccurate billing and
credit card practices. The Fair Credit Billing Act will prevent banks
and other financial institutions which issue credit cards from o ff
setting an unpaid credit card bill against a customer's checking or
savings account unless a court order has been obtained. Issuers of
credit cards will also be subject to the same claims that cardholders
may assert against the sellers of the merchandise, provided that the
transaction exceeded $50 and occurred in the State where the cus
tomer lives or within 100 miles of his residence.
Equal Credit O pportunity Act. The Equal Credit Opportunity
Act, Title V of Public Law 93-495, amends the Consumer Credit
Protection Act (Public Law 90-321) to prohibit any creditor from
discriminating against any applicant for credit on the basis of sex or
marital status. The Board of Governors of the Federal Reserve
System is instructed to prescribe regulations to carry out the pur
poses of the new legislation, which becomes effective 1 year after
the date of its enactment. Compliance by insured banks will be
enforced by the Federal bank regulatory agencies under section 8 of
the Federal Deposit Insurance Act (12 U.S.C. § 1818). The Equal
Credit Opportunity Act provides for civil liability equal to actual
damages plus punitive damages up to $10,000 in an individual ac
tion. In a class action, punitive damages are limited to $100,000 or
1 percent of the creditor's net worth, whichever is smaller.
Abandoned Traveler's Checks and Money Orders. Title VI of
Public Law 93-495 states that the proceeds of unclaimed traveler's
checks and money orders may escheat to the State where they were
purchased, if that State has the power to escheat such sums under
its own laws. If the State of purchase is unknown, or if that State
does not have the power to escheat such funds under its own laws,
the State where the issuer's principal place of business is located is
entitled to escheat the funds if so empowered by its laws, until
F E D E R A L L E G IS L A T IO N -1 9 7 4
177
another State demonstrates that it is the State of purchase or until
the State of purchase obtains the power to escheat the unclaimed
funds under its laws.
Public Law 93-501. Title I of Public Law 93-501, approved on
October 29, 1974, confers on the Board of Governors of the Fed
eral Reserve System, the Federal Deposit Insurance Corporation,
and the Federal Home Loan Bank Board the discretionary authority
to regulate interest rates payable on debt obligations issued by af
filiates of insured financial institutions, regardless of whether the
proceeds of the debt obligations are used for the benefit of the
financial institution. The extension of authority is in response to
several large issues of variable rate notes by bank holding companies
at rates of interest generally higher than the rates which can be
legally paid by banks and th rift institutions.
Title II of Public Law 93-501 amends the National Bank Act, the
Federal Deposit Insurance Act, and the National Housing Act to
permit all federally insured banks and savings and loan institutions,
notwithstanding any State law to the contrary, to charge interest on
business or agricultural loans in the amount of $25,000 or more at a
rate of not more than 5 percent in excess of the discount rate on
90-day commercial paper in effect at the Federal Reserve bank in
the Federal Reserve district where the institution is located. This
exemption from State usury laws does not apply to loans made
after July 1, 1977, or after the enactment of any State law which
prohibits the charging of interest at the rates provided in the
amendments. Public Law 93-501 also exempts the borrowings and
bank deposit obligations of any insured bank or th rift institution,
or of affiliates of these institutions, from State usury laws until July
1, 1977, or the date of any overriding State law, whichever is
earlier.
Real Estate Settlement Procedures Act of 1974. Approved by the
President on December 23, 1974, the Real Estate Settlement Pro
cedures Act of 1974 (Public Law 93-533) revises settlement cost
practices connected with federally related mortgages on residential
property. The new legislation is intended to provide that consumers
receive greater and more tim ely information on the cost of settle
ment and to protect them from unnecessarily high settlement
charges. It is provided, for example, that no financial institution,
including uninsured mutual savings banks and cooperative banks,
may make a mortgage loan to an agent or other, person acting in a
fiduciary capacity w ithout the prior condition that the identity of
the person receiving the beneficial interest of the loan be disclosed
to the lender. The details of any such transaction must be reported,
upon request, to the Federal Deposit Insurance Corporation and the
178
F E D E R A L DEPOSIT INSURANCE CO RPO RATIO N
Federal Home Loan Bank Board. These two agencies are empow
ered to exempt certain classes or types of transactions from the
disclosure requirement.
RULES AND REGULATIONS AND STATEMENTS
OF GENERAL POLICY
Loans in Areas Having Special Flood Hazards. The Flood Disaster
Protection Act of 1973 (Public Law 93-123) mandated that the
Federal agencies supervising or insuring banks, savings and loan
associations, and other financial institutions issue regulations, pur
suant to sections 102(b) and 202(b) of the Act, to restrict loans in
areas having special flood hazards. Accordingly, effective March 2,
1974, the Corporation adopted a new regulation (12 C.F.R. part
339) to implement the Act. The regulation generally requires that
on or after March 2, 1974, no insured State nonmember bank shall
make any loan secured by improved real estate or a mobile home
located in an area that has been identified by the Secretary of
Housing and Urban Development as an area having special flood
hazards and in which flood insurance has been made available under
the National Flood Insurance Act of 1968, unless the building or
mobile home and any personal property securing the loan are
covered for the term of the loan by adequate flood insurance. In
addition, on and after July 1, 1975, insured State nonmember
banks will be prohibited from making loans secured by improved
real estate or mobile homes in designated flood hazard areas unless
the community in which the area is located is then participating in
the National Flood Insurance Program.
On September 22, 1974, the Corporation added a new section to
its flood hazard regulations (12 C.F.R. § 339.5), as required by
section 816(a) of the Housing and Community Development Act of
1974 (Public Law 93-383). The new section provides that each
insured State nonmember bank, before making, increasing, ex
tending, or renewing any loan secured by improved real estate or a
mobile home located in an area designated as having special flood
hazards, must notify the borrower in writing that the property
securing the loan is in an area so designated. In lieu of such notifica
tion, the bank may receive written assurances from the seller or
lessor that the seller or lessor has notified the buyer that the prop
erty is located in a designated flood hazard area.
Delegation of A u tho rity to Washington Staff and Regional Direc
tors. Effective May 8, 1974, the Corporation amended its regula
tions to further delegate the authority of the Board o f Directors to
act on certain applications. Section 303.11 of the Corporation's
RULES AN D R EG U LA TIO N S OF THE CO RPO RATIO N
179
regulations was amended to delegate to the Director of the Division
of Bank Supervision or the Regional Directors the additional
authority to approve but not to deny:
(1) applications by State member banks to retain their sta
tus as insured banks upon withdrawal from membership in the
Federal Reserve System;
(2) applications for approval of "phantom " bank mergers;
and
(3) applications for deposit insurance filed by new banks
which are formed in connection with "phantom " bank mer
gers.
It is the understanding of the Board of Directors that applications
under (1) above will be handled, wherever possible, at the Regional
Office level.
Section 303.12 o f the Corporation's regulations (12 C.F.R. §
303.12) precludes the delegation of authority to the Director of the
Division o f Bank Supervision and the Regional Directors, where, in
the case o f branch applications, certain prerequisites are not met.
The Regional Directors are delegated authority under existing regu
lations to approve branch applications by commercial banks only
where, for example, the applicant's adjusted capital and reserves,
including written commitments for additional capital funds, con
stitute at least 7.5 percent of its adjusted gross assets. Section
303.12 was amended to authorize the Director of the Division of
Bank Supervision, but not the Regional Directors, to approve appli
cations of commercial banks with adjusted capital-asset ratios
below 7.5 percent where he is satisfied that the applicant's capital is
adequate when viewed in light of all the circumstances which bear
on such a determination. The amendments also eliminate the pre
requisite that the branch applicant's aggregate fixed asset invest
ment, including its investment in the proposed branch, meet a
minimum percentage of its adjusted capital and reserves. This pre
requisite is replaced with a "reasonableness" requirement, which is
met if the applicant's aggregate fixed asset investment, including its
direct and indirect investment in the proposed branch, is deter
mined to be reasonable relative to the applicant's earnings capacity
and other pertinent bases of consideration.
Finally, the Board of Directors amended section 303.13 of the
Corporation's regulations, relating to other delegations o f authority
(12 C.F.R. § 303.13). The amendment delegates authority to the
Director of the Division of Bank Supervision and, where confirmed
in writing by the Director, to the Regional Directors to furnish
reports to other Federal banking agencies on the competitive fac
tors involved in "phantom " bank mergers required to be approved
by those agencies.
180
F E D E R A L DEPOSIT INSURANCE CORPORATION
"Standby" Letters o f Credit. On September 15, 1974, new regu
lations concerning certain letter of credit practices of insured State
nonmember banks became effective. Section 332.1 of the Corpora
tion's regulations (12 C.F.R. § 332.1) was amended to allow any
insured State nonmember bank to issue letters of credit in the usual
course of its banking business w ithout regard to the limitations
prescribed by that section. Section 332.1 enumerates certain
powers inconsistent with the purposes of the Federal Deposit Insur
ance Act. In addition, the Corporation adopted a new regulation
(12 C.F.R. part 337) dealing with unsafe and unsound banking
practices. The immediate purpose of the new regulation is to estab
lish guidelines for handling certain kinds of letters of credit which
may have adverse effects on the safety and soundness of the issuing
bank and which the Board of Directors has determined may involve
practices which would warrant the enforcement procedures set
forth in subsection 8(b) of the Federal Deposit Insurance Act (12
U.S.C. § 1818(b)). The regulation requires that all "standby" let
ters of credit, as defined therein, issued by an insured State non
member bank be combined with all its loans for the purpose of
applying any legal lim itation on loans, unless the letter of credit is
prepaid, or unless the bank segregates an amount equal to its maxi
mum potential liability on the letter of credit in a deposit account
clearly earmarked for that purpose. "Standby" letters of credit are
defined to include letters of credit which guarantee the payment of
a money obligation by an account party or which condition pay
ment on the default of an account party.
Deposit Insurance Coverage. Public Law 93-495, signed into law
by the President on October 28, 1974, increased the maximum
deposit insurance from $20,000 to $40,000 and also provided addi
tional insurance coverage of up to $100,000 for certain time and
savings deposits of official custodians of public funds. On Novem
ber 20, 1974, the Corporation amended parts 306, 308, 328, 330,
and 331 of its regulations (12 C.F.R. parts 306, 308, 328, 330, and
331) to reflect the increase in the deposit insurance ceiling and to
clarify the deposit insurance coverage of public funds. Under the
new regulations, each official custodian of funds of the United
States is entitled to insurance coverage of up to $100,000 for any
such funds deposited in time and savings accounts in an insured
bank and additional coverage of up to $40,000 for any such funds
deposited in demand accounts in the same insured bank. Official
custodians of States or their political subdivisions who deposit pub
lic funds in time and savings accounts in an insured bank in the
same State are insured up to $100,000 and up to $40,000 for any
such funds deposited in demand accounts in the same insured bank.
All such funds deposited outside of the State are insured only up to
RULES AN D R EG U LA TIO N S OF THE CO RPO RATIO N
181
$40,000 in the aggregate, regardless of whether deposited in
demand, time, or savings accounts.
Interest Rate Regulations. On November 27, 1974, the Board of
Directors, after consultation with the Board of Governors of the
Federal Reserve System and the Federal Home Loan Bank Board as
required by law, amended sections 329.1 329.6, and 329.7 of
the Corporation's regulations (12 C.F.R. §§ 329.1, 329.6, and
329.7), which restrict the amount of interest insured State non
member banks can pay on deposits. The amendments are designed
to reflect the changes made by Public Law 93-495, approved on
October 28, 1974, which, among other things, allowed insurance
coverage of up to $100,000 for certain time and savings deposits of
public funds. The new amendments allow all depositors of public
funds to hold, for the first time, savings deposits in commercial
banks, subject to existing interest rate limitations. In addition, a
special ceiling rate for interest payable on time deposits of public
funds deposited in both commercial and mutual savings banks, re
gardless of maturity, has been established at the highest rate which
any insured nonmember bank (including a mutual savings bank)
may pay on any time deposit under $100,000. The Board of Direc
tors, after consultation with the Board o f Governors of the Federal
Reserve System and the Federal Home Loan Bank Board, further
amended its interest rate regulations, effective December 23, 1974,
specifying a new ceiling for interest payable on time deposits with a
minimum maturity of 6 years and in a minimum amount o f $1,000
to be 7 3/4 percent per annum for mutual savings banks and 7 1/2
percent per annum for commercial banks.
Policy Statement on Gold. Public Law 93-373, effective on De
cember 31, 1974, removed the 40-year-old ban on the ownership of
monetary gold by individuals, including banks. On December 9,
1974, the Corporation issued a statement of policy on gold ad
dressed to insured nonmember banks. The statement instructs each
insured nonmember bank which intends to deal in gold to notify
the Corporation and warns banks of the potential risks o f dealing in
gold with respect to each capacity in which banks are likely to hold
gold. Those banks which deal in gold for their own account should
be aware of adverse fluctuations in market value and that gold is a
non-earning asset. Those banks which sell gold to customers on a
consignment basis should be aware of problems relating to the
physical security of the gold, liability under repurchase agreements,
bogus gold, and the necessity of weighing and assaying any gold
which comes into the bank's possession. Banks which engage in the
safekeeping of gold owned by their customers should be concerned
with the adequacy of their security arrangements. Any receipt or
advertisement issued in connection with the bank's safekeeping
182
F E D E R A L DEPOSIT INSURANCE CO RPO RATIO N
activities should state that the gold is not a deposit insured by the
FDIC.
The policy statement on gold further advises banks that con
tracts, including deposit contracts, which are payable in gold and
where the parties to the contract view the gold as a medium of
discharging the debt, rather than as a commodity to be traded, may
be unenforceable under the so-called Gold Clause Resolution of
1933 (31 U.S.C. § 463). Those banks which hold gold as collateral
for loans should be aware of the valuation and security problems
involved and that loans made for the purchase of gold are specula
tive and nonproductive, unless made for commercial or industrial
purposes.
Similar policy statements were issued by the other Federal bank
regulatory agencies with respect to the banks under their juris
diction.
r
STATISTICS OF BANKS
AND DEPOSIT INSURANCE
PART FOUR
NUMBER OF BANKS AND BRANCHES
Table 101. Changes in number and classification o f banks and branches in the U nited States (States and
o ther areas) during 1974
Table 102. Changes in num ber o f commercial banks and branches in the U nited States (States and other
areas) during 1974, by State
Table 103. Num ber o f banking offices in the United States (States and other areas), December 31, 1974
Grouped according to insurance status and class o f bank, and by State or area and type o f
office
Table 104. Number and deposits o f all commercial and mutual savings banks (States and other areas),
December 31, 1974
Banks grouped by class and deposit size
Table 105. Num ber and deposits o f all commercial banks in the United States (States and other areas),
December 31, 1974
Banks grouped by deposit size and State
OF BANKS
AND
BRANCHES
185
Banks w h ic h have suspended op e ra tio n s o r have ceased to accept new
deposits and are proceed in g to liq u id a te th e ir assets and pay o ff existin g
deposits;
B u ild in g and loan associations, savings and loan associations, c re d it
unions, personal loan com panies, and s im ila r in s titu tio n s , chartered un der
laws a p p ly in g to such in s titu tio n s o r u n der general in c o rp o ra tio n laws, re
gardless o f w h e th e r such in s titu tio n s are a u th o riz e d to accept deposits fro m
the p u b lic or fro m th e ir m em bers and regardless o f w h e th e r such in s titu tio n s
are called "b a n k s ” (a fe w in s titu tio n s acce pting deposits under powers
granted in special charters are in c lu d e d );
M o rris Plan com panies, in d u s tria l banks, loan and investm ent com panies,
and s im ila r in s titu tio n s e xce p t those m e n tio n e d in the d e scrip tio n o f in s titu
tio n s in c lu d e d ;
Branches o f fo re ig n banks and p riva te banks w h ich co n fin e th e ir business
to fo re ig n exchange dealings and do n o t receive "d e p o s its " as th a t te rm is
c o m m o n ly u n d e rsto o d ;
In s titu tio n s ch a rte re d u n d e r ba n kin g or tru s t co m p a n y laws, b u t o p e r
ating as in ve stm e n t o r title insurance com panies and n o t engaged in de posit
ba nking o r fid u c ia ry a c tiv itie s ;
Federal Reserve Banks and o th e r banks, such as th e Federal Hom e Loan
Banks and th e Savings and Loan B ank o f the S tate o f New Y o rk , w h ic h
operate as re d isco u n t banks and do n o t accept deposits exce pt fro m fin a n cia l
in s titu tio n s .
Branches: Branches in clu d e all o ffic e s o f a ba nk o th e r than its head
o ffic e , at w h ic h deposits are received, checks paid, or m oney lent. B anking
fa c ilitie s separate fro m a b a nking house, ba n kin g fa c ilitie s at governm ent
establishm ents, o ffic e s , agencies, pa yin g or receiving station s, drive -in fa c il
ities, and o th e r fa c ilitie s operated fo r lim ite d purposes are de fin e d as
branches u n der th e Federal D epo sit Insurance A c t, S ection 3 (o ), regardless
o f th e fa c t th a t in ce rta in States, in c lu d in g several w h ic h p r o h ib it th e op era
tio n o f branches, such lim ite d fa c ilitie s are n o t considered branches w ith in
the m eaning o f S tate law.
NUMBER
Banks: Com m ercial banks in c lu d e th e fo llo w in g categories of b a nking
in s titu tio n s :
N a tio n a l banks:
In c o rp o ra te d S ta te banks, tru s t com panies, and bank and tru s t c o m
panies re g u la rly engaged in th e business o f receiving deposits, w h e th e r de
m and o r tim e , e x c e p t m u tu a l savings banks;
S to c k savings banks, in c lu d in g g u a ra n ty savings banks in N ew H am pshire;
In d u s tria l and M o rris Plan banks w h ic h operate un der general ba n kin g
codes, o r are s p e c ific a lly a u th o riz e d b y la w to accept deposits and in practice
do so, o r th e o b lig a tio n s o f w h ic h are regarded as deposits fo r de posit in s u r
ance;
Special typ e s o f banks o f d e p o s it; regulated c e rtific a te d banks, and a
savings and loan c o m p a n y o p e ra tin g under S upe rior C o u rt ch a rte r in
G eo rgia; g o v e rn m e n t-o p e ra te d banks in N o rth D akota and Puerto R ico ; a
co o p e ra tive b a n k , us u a lly classifie d as a c re d it u n io n , operating un der a
special c h a rte r in N ew H am p shire; a savings in s titu tio n , k n o w n as a " tr u s t
c o m p a n y ," o p e ra tin g u n d e r special c h a rte r in Texas; th e Savings Banks T ru s t
C o m p a n y in N ew Y o r k ; th e Savings B ank and T ru s t C om pany N o rth w e s t
W ashing ton in th e S tate o f W a s h in g to n ; and branches o f fore ig n banks en
gaged in a general d e p o s it business in Illin o is , Massachusetts, New Y o rk ,
O regon, W ashing ton, P uerto R ic o , and V irg in Islands;
Private banks u n d e r S ta te su p e rvisio n , and such o th e r priva te banks as are
re p o rte d b y re lia b le u n o ffic ia l sources to be engaged in de posit banking.
N ondeposit trust companies in c lu d e in s titu tio n s op eratin g un der tru s t
c o m p a n y cha rters w h ic h are n o t re g u la rly engaged in de posit ba nking b u t are
engaged in fid u c ia ry business o th e r th a n th a t in c id e n ta l to real estate title o r
in ve stm e n t a c tiv itie s .
Mutual savings banks in c lu d e all banks o p eratin g under State ba nking
codes a p p ly in g to m u tu a l savings banks.
Institutions excluded. In s titu tio n s in th e fo llo w in g categories are e x
clude d, th o u g h such in s titu tio n s m ay p e rfo rm m any o f the same fu n c tio n s as
co m m e rcia l and savings banks:
186
Table 101. CHANGES IN NUMBER AN D C LASSIFICATION OF BANKS A N D BRANCHES IN THE U N ITE D STATES
(STATES AND OTHER AREAS) DURING 1974
A ll banks
N oninsured
Insured
T y p e o f change
Insured
N on
insured
Na
tio n a l
State
N ot
m em
bers
F .R .
System
M embers F.R .
System
T o ta l
T o ta l
Banks
of
de
posit
Non
deposit
tru s t
c om
panies1
T o ta l
Insured
N on
insured
44 ,5 6 6
42,182
742
704
43 ,1 8 6
40,9 1 2
4 2,859
40,619
2 0,498
1 9,627
5,281
5,129
1 7,080
1 5 ,8 6 3
246
2 13
81
80
2,122
1,974
1,707
1 ,5 63
415
411
+ 2,422
+ 2,384
+38
+ 2 ,2 7 4
+ 2,240
+871
+152
+ 1 ,2 1 7
+ 33
+1
+ 148
+144
+4
190
1
189
185
1
184
5
0
5
O ffice s o p e n e d ............................................................................................................
Banks ......................................................................................................................
B ra n c h e s .................................................................................................................
2,730
408
2,322
2,679
365
2,314
51
43
8
2,540
407
2,133
2,4 9 4
364
2,130
1,090
97
993
281
35
246
1,123
232
891
40
37
3
6
6
0
O ffice s c lo s e d ..............................................................................................................
Banks ......................................................................................................................
B ra nc h es .................................................................................................................
308
123
185
301
119
182
7
4
3
272
120
152
2 66
116
150
134
43
91
44
14
30
88
59
29
3
1
2
3
3
0
36
3
33
35
3
32
1
0
1
Changes in c la s s ific a tio n ........................................................................................
A m o n g b a n k s .......................................................................................................
A m o n g bra n c h e s ..................................................................................................
0
0
0
+6
+6
0
-6
-6
0
+6
0
+6
+12
+6
+6
-8 5
-5
-8 0
-8 5
-2 5
-6 0
+ 182
+36
+ 146
-4
-4
0
-2
-2
0
-6
0
-6
-6
0
-6
0
0
0
N u m be r o f banks, D ecem ber 3 1 , 1 9 7 4 ...........................................................................
N u m b e r o f banks, D ecem ber 3 1 ,1 9 7 3 ...........................................................................
14,961
14,676
14,550
14,298
411
378
14,481
14 ,1 9 4
14,230
13,976
4 ,7 1 0
4,661
1,072
1,076
8,4 4 8
8,239
179
147
72
71
480
482
320
322
160
160
N et change d u rin g y e a r ..................................................................................................
+285
+ 252
+33
+287
+254
+49
-4
+ 209
+32
+1
-2
-2
Banks beginning o p e ra tio n .....................................................................................
N ew b a n k s ............................................................................................................
Banks added to c o u n t2 .....................................................................................
408
395
13
365
365
0
43
30
13
407
394
13
3 64
3 64
0
97
97
0
35
35
0
2 32
232
0
37
25
12
6
5
1
1
1
0
1
1
0
0
0
0
Banks ceasing o p e ra tio n ..........................................................................................
A b s o rp tio n s , c o n so lid a tio n s, and m erg e rs..................................................
O th e r l iq u i d a t io n s .............................................................................................
Banks deleted fro m c o u n t................................................................................
123
120
1
2
119
119
0
0
4
1
1
2
120
117
1
2
116
116
0
0
43
43
0
0
14
14
0
0
59
59
0
0
1
0
0
1
3
1
1
1
3
3
0
0
3
3
0
0
0
0
0
0
N o nin sure d banks becom ing in s u r e d .................................................................
0
+6
0
+6
0
+1
+5
0
0
0
BANKS
-6
-4
-2
0
INSURANCE CORPORATION
4 5 ,308
42 ,8 8 6
DEPOSIT
A L L B A N K IN G O F F IC E S
N u m be r o f o ffic e s , D ecem ber 3 1 , 1 9 7 4 1.........................................................................
FEDERAL
T o ta l
M utua l savings banks
C om m ercial banks and n o ndeposit tr u s t com panies
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-5
+ 15
-2 0
0
0
-2 6
-7
0
+9
-2 8
+31
-8
+20
-9
+ 28
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Changes n o t in v o lv in g n um b e r in any class
Change in t i t l e ...................................................................................................
Change in lo c a t io n ............................................................................................
Change in t it le and lo c a t io n ..........................................................................
Change in lo c a tio n w ith in c i t y ......................................................................
435
32
17
336
432
32
16
331
3
0
1
5
4 25
32
17
321
423
32
16
319
151
14
8
94
24
0
2
8
248
18
6
217
2
0
0
2
0
0
1
0
10
0
0
15
9
0
0
12
1
0
0
3
Change in c o rp o ra te pow ers
Granted tru s t p o w e r s .......................................................................................
88
88
0
87
87
0
0
87
0
0
1
1
0
N um b e r o f branches, D ecem ber 3 1 , 1 9 7 4 1 ...................................................................
N u m b e r o f branches, D ecem ber 31 , 1 9 7 3 1 ...................................................................
30,347
28,210
30,016
2 7,884
331
326
28 ,7 0 5
2 6 ,718
2 8 ,629
26 ,6 4 3
15,788
1 4 ,966
4,209
4 ,0 5 3
8,632
7 ,6 2 4
67
66
9
9
1 ,642
1,492
1,387
1,241
255
251
N et change du rin g y e a r .................................................................................................
+2,137
+2,132
+5
+1 ,9 8 7
+ 1 ,9 8 6
+ 822
+1 5 6
+1 ,0 0 8
+1
0
+ 150
+ 146
+4
Branches opened fo r b u s in e s s .............................................................................
A bsorbed bank converted to b ra n c h ............................................................
Branch replacing head o ffic e re lo c a te d ......................................................
N ew b ra n c h e s ......................................................................................................
Branches a n d /o r fa c ilitie s added to c o u n t2 ...............................................
2,322
106
40
2,134
42
2 ,3 1 4
106
40
2,132
36
8
0
0
2
6
2 ,133
106
40
1,951
36
2 ,130
106
40
1,951
33
9 93
57
14
908
14
246
10
2
226
8
891
39
24
817
11
3
0
0
0
3
0
0
0
0
0
189
0
0
183
6
184
0
0
181
3
5
0
0
2
3
Branches d is c o n tin u e d ............................................................................................
F acilitie s designated by T r e a s u r y .................................................................
Branches ..............................................................................................................
Branches a n d /o r fa c ilitie s deleted fro m c o u n t .......................................
185
4
159
22
182
3
158
21
3
1
1
1
152
4
127
21
150
4
126
21
91
1
79
11
30
0
24
6
29
2
23
4
2
1
1
0
0
0
0
0
33
0
32
1
32
0
32
0
1
0
0
1
O th er changes in c la s s ific a tio n .............................................................................
Branches changing class as a re su lt o f c o n v e r s io n ..................................
Branches tra n s fe rre d th ro u g h a b s o rp tio n , co n s o lid a tio n , or merger .
Branches o f insured banks w ith d ra w in g fr o m F .R . S y s te m .................
0
0
0
0
0
0
0
0
0
0
0
0
+6
0
+6
0
+6
0
+6
0
-8 0
-1 9
-6 1
0
-6 0
0
+2
-6 2
+146
+19
+65
+ 62
0
0
0
0
0
0
0
0
-6
0
-6
0
-6
0
-6
0
0
0
0
0
Changes n o t in v o lv in g n u m b e r in any class
Changes in op e ra tin g p o w e r o f b ra n ch e s....................................................
Branches tra n s fe rre d th ro u g h a b s o rp tio n , co n s o lid a tio n , o r m erger .
Changes in title , lo c a tio n , o r name o f l o c a t io n .......................................
2
123
652
2
123
651
0
0
1
2
123
652
2
123
620
1
61
338
0
1
77
1
61
205
0
0
0
0
0
1
0
0
31
0
0
31
0
0
0
BRANCHES
BRANCHES
0
0
0
0
0
OF BANKS AND
0
0
0
0
0
NUMBER
O th e r changes in c la s s ific a tio n .............................................................................
N a tio n a l succeeding State b a n k......................................................................
S tate succeeding n a tio n a l b a n k ......................................................................
A d m ission o f insured b a n k to F.R . S y s te m ...............................................
W ith d ra w a l fro m F .R . System w ith c o n tin u e d in s u ra n c e ....................
1 1ncludes fa c ilitie s established a t request o f th e T reasury o r com m anding o ffic e r o f.governm ent insta lla tio n s, and also a fe w seasonal branches th a t w ere n o t in o p e ra tio n as o f Decem ber 31.
2 Banks o r branches opened p r io r to 197 4 b u t n o t inclu d e d in c o u n t as o f D ecem ber 3 1 ,1 9 7 3 .
187
Table 102. CHANGES IN NUMBER OF COMMERCIAL BANKS AND BRANCHES IN THE UNITED STATES
(STATES AND OTHER AREAS) DURING 1974, BY STATE
In o p e ra tio n
State
Dec. 31, 1974
Banks
Branches
Branches
Banks
Banks
Branches
Banks
Ceasing ope ra tio n in 1974
Beginning ope ra tio n in 1974
Net change
during 1974
Dec. 31, 1973
Branches
New
O ther
Branches
Banks
New
O ther
A b s o rp tio n s
O th e r
Branches
O ther
14,481
28 ,7 0 5
1 4 ,1 9 4
26,718
+ 287
+ 1,987
394
13
1,987
152
117
3
127
25
50 S tates and D .C ........................
14 ,4 5 8
2 8 ,4 3 2
14,171
26,449
+287
+ 1,983
394
13
1,981
152
117
3
127
23
6
0
0
0
0
2
O th e r areas ...................................
+4
0
0
23
2 73
23
269
IMA
A la b a m a ........................................
Alaska .............................................
A r iz o n a ...........................................
Arkansas ........................................
C a lif o r n ia ......................................
293
10
25
262
198
417
81
4 25
281
3,490
287
10
22
258
185
369
73
405
227
3,391
+6
NA
+3
+4
+13
+48
+8
+20
+54
+99
8
0
3
4
19
0
0
1
0
0
47
8
22
52
117
3
0
0
2
7
2
0
0
0
6
0
0
1
0
0
2
0
2
0
24
0
0
0
0
1
C o lo ra d o ........................................
C o n n e c tic u t...................................
D e la w a re .......................................
D is tric t o f C o lu m b ia ..................
F lo r id a ...........................................
3 24
71
18
16
716
50
547
130
126
121
302
68
19
15
646
42
518
118
117
67
+22
+3
-1
+1
+70
+8
+29
+12
+9
+54
11
5
0
1
70
12
0
0
0
0
8
28
11
9
55
0
2
1
0
1
0
2
1
0
0
1
0
0
0
0
0
1
0
0
1
0
0
0
0
1
G e o rg ia ...........................................
H aw aii ...........................................
Id a h o ................................................
Illin o is .............................................
In d ia n a ...........................................
4 47
12
24
1,204
4 10
656
151
191
194
842
4 36
12
24
1,172
410
558
150
179
175
777
+11
NA
0
+32
0
+98
+1
+ 12
+ 19
+65
13
0
1
32
3
0
0
0
0
0
97
1
11
18
65
4
0
1
3
3
2
0
1
0
3
0
0
0
0
0
2
0
0
2
2
1
0
0
0
1
I o w a .......... .....................................
Kansas.............................................
K e n tu c k y ......................................
Lou is ia n a ........................................
M a in e .............................................
6 65
6 13
342
249
49
385
127
471
541
277
670
6 12
342
2 45
48
369
89
424
490
260
-5
+1
NA
+4
+1
+16
+ 38
+47
+51
+17
0
2
0
4
1
0
0
0
0
0
11
37
51
52
16
6
1
0
2
1
5
1
0
0
0
0
0
0
0
0
1
0
3
2
0
0
0
1
1
0
M a ry la n d ........................................
M a s s a c h u s e tts .........................
M ich igan .........................................
M in n e s o ta ......................................
M is s is s ip p i......................................
114
152
347
745
181
703
885
1,480
32
503
112
153
340
740
181
643
853
1,400
24
449
+2
-1
+7
+5
0
+ 60
+32
+ 80
+8
+54
5
2
11
5
8
0
0
0
0
0
50
38
86
8
45
10
3
4
0
9
3
3
4
0
8
0
0
0
0
0
0
7
4
0
0
0
2
6
0
0
M issouri ........................................
M o n ta n a ........................................
N e b ra s k a ........................................
N e v a d a ...........................................
New H a m p s h ire ............................
7 00
154
453
8
82
261
14
83
105
99
687
151
449
8
82
203
12
56
96
90
+ 13
+3
+4
NA
0
+58
+2
+27
+9
+9
14
3
5
0
1
0
0
0
0
0
59
2
28
9
8
4
0
0
0
1
1
0
1
0
1
0
0
0
0
0
5
0
1
0
0
0
0
0
0
0
States
FEDERAL DEPOSIT INSURANCE CORPORATION
T o ta l U n ite d S ta te s ....................
2 18
77
305
92
171
1,336
189
3,0 9 0
1,547
80
222
74
304
90
170
1,250
177
2,879
1,444
74
-4
+3
+1
+2
+1
+86
+ 12
+211
+ 103
+6
11
3
13
6
1
0
0
0
0
0
73
13
214
109
6
16
0
12
5
1
14
0
12
4
0
1
0
0
0
0
1
1
13
9
1
2
0
2
2
0
O h i o ................................................
O k la h o m a .....................................
O r e g o n ...........................................
P e n n s y lv a n ia .................................
R hode Is la n d .................................
498
460
49
4 06
16
1,613
96
420
2,193
214
498
452
46
422
16
1,525
91
401
2,061
207
0
+8
+3
-1 6
NA
+ 88
+5
+19
+ 132
+7
6
8
3
1
0
0
0
0
0
0
90
4
19
130
7
6
1
0
17
0
6
0
0
17
0
0
0
0
0
0
7
0
0
14
0
1
0
0
1
0
S outh C a r o lin a ............................
S outh D ako ta ..............................
T e n n e s s e e ......................................
Texas .............................................
U t a h ................................................
91
158
3 37
1,313
55
581
115
723
123
186
91
159
321
1,266
54
548
108
658
110
171
0
-1
+16
+47
+1
+33
+7
+ 65
+13
+ 15
4
0
16
47
3
0
0
0
0
0
34
5
66
12
13
4
2
2
1
2
4
1
0
0
2
0
0
0
0
0
4
0
3
0
0
1
0
0
0
0
V e r m o n t ........................................
V ir g in ia ...........................................
W a s h in g to n ...................................
West V ir g in ia .................................
W is c o n s in ......................................
W y o m in g ........................................
34
288
93
214
6 25
74
131
1,112
661
26
326
2
39
271
88
210
621
71
109
1,045
640
15
310
2
-5
+17
+5
+4
+4
+3
+22
+67
+21
+11
+16
NA
0
20
7
4
7
3
0
0
0
0
0
0
17
73
20
11
16
0
5
5
3
0
2
0
5
3
2
0
3
0
0
0
0
0
0
0
0
11
2
0
2
0
0
0
0
0
0
0
1
0
14
8
28
2
214
29
1
0
14
8
27
2
210
30
+1
NA
+4
-1
0
0
0
0
0
0
0
0
2
0
4
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
0
0
1
O ther areas
Pacific Is la n d s ..............................
Panama Canal Z o n e ....................
P uerto R ic o ...................................
V irg in Is la n d s ..............................
N A — No a c tiv ity
189
NA
0
NA
IMA
NUMBER OF BANKS AND BRANCHES
New J e r s e y ...................................
New M e x i c o .................................
N ew Y o r k ......................................
N o rth C a r o lin a ............................
N o rth D a k o t a ..............................
190
T able 103. N U M B E R OF B A N K IN G O F F IC E S IN T H E U N IT E D S TA T E S (S TA T E S A N D O T H E R A R E A S ), D E C E M B E R 3 1 , 1974
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE
Noninsured
Insured
4 5 ,3 0 8
14,961
Insured
Noninsured
4 4 ,5 6 6
14,550
742
411
T o ta l
43 ,1 8 6
14,481
Na
tio n a l
State
Non
m em
bers
F.R.
Sys
tem
20,498
4 ,710
5,281
1,072
17,080
8,448
246
179
M embers F.R.
System
T o ta l
42,859
14,230
Banks
o f de
p o s it2
N on
deposit
tru s t
com
panies9
81
72
T o ta l
Insured
Non
insured
2 ,122
480
1,707
320
4 15
160
A ll
banks
of
de
p osit
C om
m ercial
banks
of
deposit
98 .5
9 7.7
9 9 .4
98.8
80 .4
66.7
97.6
97.9
98.3
99.6
49.2
72.9
M utua l
savings
banks
9,421
5,540
9,130
5,420
291
120
9,295
5,186
9,068
5,162
2,720
1,990
584
488
5,764
2,684
160
19
67
5
126
354
62
258
64
96
3 0 ,3 4 7
30 ,0 1 6
331
28,705
28,629
15,788
4,209
8,632
67
9
1,642
1,387
255
98.9
9 9.8
84.5
50 States & D .C .- a ll o f f ic e s ..........
Banks .............................................
Unit Banks..............................
4 5 ,011
14,937
4 4 ,3 0 8
14,537
703
4 00
4 2 ,8 9 0
14,458
4 2,602
14,218
20,437
4,708
5,281
1,072
16,884
8,438
207
168
81
72
2,121
479
1,706
319
4 15
160
9 8.6
97.8
9 9.5
98.8
8 0.4
6 6.6
48.8
72.9
Banks operating branches .
9,411
5,526
9,127
5,410
284
116
9,286
5,172
9,066
5,152
2,719
1,989
584
488
5,763
2,675
153
15
67
5
125
354
61
258
64
96
97.7
98.0
98.3
99.7
Branches ........................................
3 0 ,0 7 4
29,771
303
2 8 ,432
28,384
15,729
4,209
8,446
39
9
1,642
1,387
255
99.0
99.9
84.5
O the r a re a s -a ll o f f ic e s .....................
Banks .............................................
Unit banks ..............................
297
24
258
13
39
11
7
296
23
257
12
0
0
196
10
7
39
11
7
0
0
1
1
7
1
1
7
0
0
86.9
54.2
86.8
52.2
100.0
100.0
4
9
14
2
10
28
273
245
61
2
7
7
59
710
293
0
0
710
293
710
293
0
0
163
130
163
130
Banks operating branches .
10
14
3
10
Branches ........................................
273
245
710
293
9
4
0
0
0
0
0
0
30.0
71.4
22.2
71.4
100.0
0.0
0
186
28
0
0
0
0
89.7
89.7
0.0
364
93
39
19
307
181
0
0
0
0
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
35
58
12
7
116
65
0
0
0
0
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
0
0
State
A la b a m a -a ll o f f ic e s .........................
Banks .............................................
Unit banks ..............................
Banks operating branches .
163
130
163
130
Branches ........................................
417
417
0
417
417
271
20
126
0
0
0
0
0
100.0
100.0
0.0
A la s k a -a ll o ffic e s ..............................
Banks .............................................
Unit banks ..............................
94
12
94
12
0
0
91
10
91
10
75
5
0
0
16
5
0
0
0
0
0
0
100.0
100.0
100.0
100.0
100.0
100.0
2
10
2
10
0
0
1
9
1
0
5
0
0
1
4
0
0
0
0
3
2
7
7
1
0
0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Branches ........................................
82
82
0
81
,81
70
0
11
0
0
3
2
7
7
1
0
100.0
100.0
A r iz o n a - a ll o ffic e s .........................
Banks .............................................
Unit banks ..............................
4 50
25
442
17
7
8
8
4 50
25
146
13
0
0
8
8
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0 .0
0.0
10
15
10
269
3
7
27
1
8
0
442
17
7
6
7
0
0
8
0
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
4 25
0
425
133
0
0
0
0
0
100.0
100.0
0.0
Banks operating branches .
Banks operating branches .
15
10
Branches ........................................
425
10
2
0
1
425
266
26
INSURANCE CORPORATION
Banks operating branches .
Branches ........................................
DEPOSIT
U nited S ta te s -a ll o f f i c e s ...............
Banks .............................................
Unit banks ..............................
T o ta l
FEDERAL
State and ty p e o f bank
o r o ffic e
Percentage in sure d 1
M u tu a l savings banks
Com m ercial banks and nondeposit tru s t com panies
A ll banks
A rk a n s a s -a ll o ff ic e s .........................
Banks .............................................
Unit banks ..............................
Banks operating branches .
543
262
539
258
4
4
543
262
539
258
219
74
26
9
2 94
175
1
1
3
3
0
0
0
0
0
0
99 .8
99.6
99.8
99.6
0.0
0.0
132
130
128
130
4
0
132
130
128
130
20
54
1
8
107
68
1
0
3
0
0
0
0
0
0
0
99.2
100.0
99.2
100.0
0.0
0.0
B ra n c h e s ........................................
281
281
0
281
281
145
17
119
0
0
0
0
0
100.0
100.0
0.0
C a lifo rn ia -a ll o f f i c e s .......................
Banks .............................................
Unit banks ..............................
3,6 8 8
198
3 ,670
186
18
12
3,688
198
3,670
186
2,731
55
3 26
8
613
123
0
0
18
12
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
67
131
58
128
9
3
67
131
58
128
10
45
0
8
48
75
0
0
9
3
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
3 ,4 9 0
3 ,4 8 4
6
3,490
3,484
2,676
3 18
490
0
6
0
0
0
100.0
100.0
0.0
C o lo r a d o - a ll o ffic e s .......................
Banks .............................................
Unit banks ............................
374
324
3 13
263
61
61
374
324
313
263
154
127
20
17
139
119
61
61
0
0
0
0
0
0
0
0
83.7
81.2
83.7
81.2
0.0
0.0
279
45
218
45
61
0
279
45
218
45
102
25
15
2
101
18
61
0
0
0
0
0
0
0
0
0
78.1
100.0
78.1
100.0
0.0
0.0
Banks operating branches .
Branches ........................................
C o n n e c tic u t-a ll o f f i c e s ..................
B a n k s .............................................
Unit banks ..............................
50
913139
0
50
50
27
3
20
0
0
0
0
0
100.0
100.0
0.0
1
1
618
71
617
70
275
24
82
2
2 60
44
1
1
0
0
295
68
295
68
0
0
99.9
99.3
99.8
98.6
100.0
100.0
100.0
100.0
Banks operating branches .
33
106
32
106
1
0
19
52
18
52
3
21
1
1
14
30
1
0
0
0
14
54
14
54
0
0
97.0
100.0
94.7
100.0
B ra n c h e s .........................................
7 74
774
0
547
547
251
80
216
0
0
227
227
0
100.0
100.0
100.0
D e la w a re -a ll o ffic e s .......................
Banks .............................................
Unit banks ..............................
172
20
171
19
1
1
148
18
147
17
9
5
0
0
138
12
0
0
1
1
24
2
24
2
0
0
100.0
100.0
100.0
100.0
100.0
100.0
9
11
8
11
1
0
9
9
8
9
3
2
0
0
5
7
0
0
1
0
0
2
0
2
0
0
100.0
100.0
100.0
100.0
0.0
100.0
152
152
0
130
130
4
0
126
0
0
22
22
0
100.0
100.0
100.0
D .C .- a ll o f f i c e s .................................
Banks .............................................
Unit banks ..............................
142
16
1 42
16
0
0
142
16
142
16
100
13
30
1
12
2
0
0
0
0
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
0.0
0.0
Banks operating branches .
2
14
2
14
0
0
2
14
2
14
2
11
0
1
0
2
0
0
0
0
0
0
0
0
0
0
100.0
100.0
100.0
100.0
Branches ........................................
126
126
0
126
126
87
29
10
0
0
0
0
0
100.0
100.0
0.0
F lo r id a - a ll o f f i c e s ............................
B a n k s .............................................
Unit banks ..............................
837
716
8 33
712
4
4
837
716
833
712
318
282
35
33
480
397
1
1
3
3
0
0
0
0
0
0
99.9
99.9
99.9
99.9
0.0
0.0
0.0
0.0
Banks operating branches .
602
114
598
114
4
0
602
114
598
114
247
35
31
2
320
77
1
0
3
0
0
0
0
0
0
0
99.8
100.0
99.8
100.0
Branches ........................................
121
121
0
121
121
36
2
83
0
0
0
0
0
100.0
100.0
0.0
G e o rg ia -a ll o f f ic e s ............................
B a n k s .............................................
Unit banks ..............................
1 ,1 0 3
447
1,099
443
4
4
1,103
447
1,099
443
382
64
84
9
6 33
370
4
4
0
0
0
0
0
0
0
0
99 .6
99.1
99 .6
99.1
0.0
0.0
0.0
0.0
Banks operating branches .
242
205
238
205
4
0
242
205
238
205
17
47
2
7
219
151
4
0
0
0
0
0
0
0
0
0
98.3
100.0
98.3
100.0
B ra n c h e s ........................................
656
6 56
0
656
656
318
75
263
0
0
0
0
0
100.0
100.0
0.0
H a w a ii- a ll o ffic e s ............................
Banks .............................................
Unit banks ..............................
163
12
156
8
7
7
148
7
4
163
12
156
8
12
2
0
0
1 44
6
0
0
7
4
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
Banks operating branches .
3
9
Branches ........................................
151
2
2
3
9
1
7
1
1
0
0
0
6
0
0
2
2
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
3
151
148
10
0
138
0
3
0
0
0
100.0
100.0
0.0
BRANCHES
Banks operating branches .
Branches ........................................
OF BANKS AND
50
912
138
NUMBER
Banks operating branches .
Branches ........................................
192
T ab le 103. N U M B E R O F B A N K IN G O F F IC E S IN TH E U N IT E D S T A T E S (S TA T E S A N D O T H E R A R E A S ),
D EC EM BE R 31, 19 7 4 -C O N T IN U E D
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE
A ll banks
Com m ercial banks and nondeposit tru s t com panies
Insured
T o ta l
Insured
N on
insured
T o ta l
Total
Mem bers F.R .
System
Na
tio n a l
215
24
215
24
0
0
215
24
Banks operating branches .
11
13
11
13
0
0
11
13
13
5
Branches ........................................
191
191
0
191
191
155
I llin o is - a ll o f f i c e s ............................
B a n k s .............................................
Unit banks ..............................
1,398
1,204
1,377
1,183
21
21
1,398
1,204
1,377
1,183
Id a h o — all o f f i c e s ..............................
B a n k s .............................................
Unit banks ..............................
215
24
77
State
Nonm em
bers
F.R.
Sys
te m
Banks
o f de
p o s it2
N on
deposit
tru s t
com
panies9
T o ta l
Insured
Non
insured
A ll
banks
of
de
posit
C om
m ercial
banks
of
depo sit
M utua l
savings
banks
100.0
100.0
10 0 .0
100.0
0.0
0.0
0.0
0.0
44
14
0
0
0
0
0
0
0
0
0
0
2
2
8
6
0
0
0
0
0
0
0
0
0
0
100.0
100.0
100.0
100.0
6
30
0
0
0
0
0
100.0
100.0
0.0
518
420
83
71
776
692
15
15
6
6
0
0
0
0
0
0
98.9
98.7
9 8 .9
98.7
0.0
0.0
0.0
0.0
161
6
7
10
4
Banks operating branches .
1r016
188
995
188
21
0
1,016
188
995
188
326
94
59
12
610
82
15
0
6
O
0
0
0
0
0
0
98.5
100.0
98.5
100.0
Branches ........................................
194
194
0
194
194
98
12
84
0
0
0
0
0
100.0
100.0
0.0
In d ia n a -a ll o f f ic e s ............................
Banks .............................................
Unit banks ..............................
1,257
4 14
1 ,255
4 12
2
2
1,252
410
1,250
4 08
562
121
103
51
585
236
777
1
1
7
1
1
7
5
4
5
4
0
0
99.9
99.8
99 .9
9 9 .8
1 00.0
100.0
Banks operating branches .
186
228
184
228
2
0
183
227
181
227
38
83
26
25
119
0
0
3
1
3
1
0
0
99.5
100.0
99.5
100.0
100.0
100.0
Branches ........................................
843
843
0
842
842
441
52
349
0
0
1
1
0
100.0
100.0
100.0
Io w a - a ll o f f ic e s .................................
B a n k s .............................................
Unit banks ..............................
1,050
665
1 ,042
6 57
8
8
1,050
665
1,042
657
175
99
86
47
781
511
0
0
0
0
99.3
98.9
9 9 .3
98.9
0.0
0.0
409
248
8
O
417
248
409
248
52
47
27
20
330
181
1
1
7
0
0
417
248
7
7
7
0
0
0
0
0
0
0
0
98.3
100.0
98.3
100.0
0.0
0.0
Branches ........................................
385
385
0
385
385
76
39
270
0
0
0
0
0
100.0
100.0
0.0
K an sa s-a ll o ffic e s ............................
B a n k s .............................................
Unit banks ..............................
740
613
739
6 12
1
1
7
740
613
739
612
224
171
36
27
479
414
1
1
7
0
0
0
0
0
0
0
0
99.9
99.8
99.9
9 9 .8
0.0
0.0
0.0
0.0
Banks operating branches .
Banks operating branches .
512
101
511
101
0
512
101
511
101
130
41
20
7
361
53
0
0
0
0
0
0
0
0
0
99.8
100.0
99.8
100.0
Branches ........................................
127
127
0
127
127
53
9
65
0
0
0
0
0
100.0
100.0
0.0
K e n tu c k y - a ll o f f i c e s .......................
B a n k s .............................................
Unit banks ..............................
813
342
812
341
1
1
813
342
812
341
274
80
90
11
448
250
1
1
7
0
0
0
0
0
0
0
0
99.9
99.7
995
99.7
0.0
0.0
Banks operating branches .
177
165
176
165
1
O
177
165
176
165
29
51
4
7
143
107
0
0
0
0
0
0
0
0
0
99.4
100.0
99.4
100.0
0.0
0.0
Branches ........................................
471
471
0
471
471
194
79
198
0
0
0
0
0
100.0
100.0
0.0
FEDERAL DEPOSIT INSURANCE CORPORATION
S tate and ty p e o f bank
o r o ffic e
Percentage ins u re d 1
M utual savings banks
N oninsured
L o u is ia n a -a ll o f f i c e s .......................
Banks .............................................
Unit banks ..............................
790
249
790
249
0
0
790
249
790
249
278
52
51
9
Banks operating branches .
91
158
91
158
0
0
91
158
91
158
13
39
1
8
B ra n c h e s ........................................
541
541
0
541
541
226
42
273
0
0
M a in e -a ll o f f i c e s ..............................
Banks .............................................
Unit banks ..............................
4 05
81
4 00
76
5
5
326
49
322
45
146
20
34
3
142
22
4
4
0
0
461
188
77
111
0
0
0
0
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
0
0
0
0
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
0
0
0
100.0
100.0
0.0
79
32
78
31
1
1
98.8
93.8
98.8
9 1.8
98.7
96.9
23
58
18
58
5
0
13
36
9
36
4
16
0
3
5
17
4
0
0
0
10
22
9
22
1
0
78.3
100.0
69.2
100.0
90.0
100.0
324
324
0
277
277
126
31
120
0
0
47
47
0
100.0
100.0
100.0
M a ry la n d — a ll o ffic e s .......................
Banks .............................................
Unit banks ..............................
862
117
862
117
0
0
817
114
817
114
381
40
0
0
0
0
45
3
45
3
0
0
100.0
100.0
100.0
100.0
100.0
100.0
Banks operating branches .
37
80
0
0
37
77
37
77
8
32
94
7
7
3 42
67
37
80
6
28
39
0
0
0
0
0
3
0
3
0
0
100.0
100.0
100.0
100.0
0.0
100.0
Branches ........................................
745
745
0
703
703
341
87
275
0
0
42
42
0
100.0
100.0
100.0
M assachusetts— all o f f i c e s ...............
Banks .............................................
Unit banks ..............................
1,505
319
1,083
155
422
164
1,037
152
1,029
147
569
78
180
13
280
56
8
5
0
0
468
167
54
8
414
159
72.0
48.6
9 9.2
96.7
11.5
4.8
Banks operating branches .
91
228
25
130
66
98
28
124
25
122
13
65
0
13
12
44
3
2
0
0
63
104
0
8
63
96
27.5
57.0
89.3
98.4
0.0
7.7
Branches3 ......................................
1,186
9 28
258
885
882
491
167
224
3
0
301
46
255
78.2
99.7
15.3
M ic h ig a n -a ll o ffic e s .......................
B a n k s .............................................
Unit banks ..............................
1,827
347
1,8 2 4
346
3
1
1,827
347
1,824
346
814
117
577
93
4 33
136
3
1
0
0
0
0
0
0
0
0
99.8
99.7
9 9.8
99.7
0.0
0.0
Banks operating branches .
98
249
98
248
0
1
98
249
98
248
25
92
24
69
49
87
0
0
0
0
0
0
0
0
100.0
99.6
100.0
99.6
0.0
0.0
B ra n c h e s ........................................
1,480
1,478
2
1,480
.1 ,4 7 8
697
484
297
0
1
2
0
0
0
0
99.9
99.9
0.0
M in n e s o ta -a ll o ff ic e s .......................
Banks .............................................
Unit banks ...............................
779
746
776
743
3
3
777
745
774
742
218
202
30
28
526
512
3
3
0
0
2
1
2
1
0
0
99 .6
99.6
99 .6
99.6
100.0
100.0
Banks operating branches .
717
29
714
29
3
0
717
28
714
28
190
12
26
2
498
14
3
0
0
0
0
1
0
1
0
0
99.6
100.0
99.6
100.0
0.0
100.0
Branches ........................................
33
33
0
32
32
16
2
14
0
0
1
1
0
100.0
100.0
100.0
M is s is s ip p i-a ll o ffic e s ....................
Banks .............................................
Unit banks ..............................
6 84
181
684
181
0
0
684
181
684
181
2 53
39
23
6
408
136
0
0
0
0
0
0
0
0
100.0
100.0
0.0
0.0
53
128
0
0
100.0
100.0
53
128
0
0
53
128
53
128
6
33
2
4
45
91
0
0
0
0
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
Banks operating branches .
Branches ........................................
503
503
0
503
503
214
17
272
0
0
0
0
0
100.0
100.0
0.0
M isso u ri— all o f f i c e s .........................
B a n k s .............................................
Unit banks ..............................
961
700
955
694
6
6
961
700
955
694
163
110
96
65
696
519
2
2
4
4
0
0
0
0
0
0
99.8
99.7
99.8
99.7
0.0
0.0
0.0
0.0
Banks operating branches .
477
223
471
223
6
0
477
223
471
223
67
43
40
25
364
155
2
0
4
0
0
0
0
0
0
0
99.6
100.0
99.6
100.0
B ra n c h e s ........................................
261
261
0
261
261
53
31
177
0
0
0
0
0
100.0
100.0
0.0
M o n ta n a - a ll o f f ic e s .........................
Banks .............................................
Unit banks ..............................
168
154
166
152
2
2
168
154
166
152
59
55
49
44
58
53
0
0
2
2
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
Banks operating branches .
140
14
138
14
2
0
140
14
138
14
51
4
39
5
48
5
0
0
2
0
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
Branches ........................................
14
14
0
14
14
4
5
5
0
0
0
0
0
100.0
100.0
0.0
NUMBER OF BANKS AND BRANCHES
Banks operating branches .
Branches ........................................
194
T ab le 103. N U M B E R O F B A N K IN G O F F IC E S IN TH E U N IT E D S T A T E S (S TA T E S A N D O T H E R A R E A S ),
D E C EM BE R 31, 1 9 7 4 -C O N T IN U E D
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE
Insured
T o ta l
Insured
Non
insured
T o ta l
Mem bers F.R.
System
T otal
Na
tio n a l
State
Non
mem
bers
F.R.
Sys
tem
Banks
o f de
p o s it2
Non
deposit
tru s t
com
panies9
T o ta l
Insured
N on
insured
A ll
banks
of
de
posit
C om
m ercial
banks
of
depo sit
M utua l
savings
banks
0
0
5
5
0
0
0
0
0
0
100.0
100.0
1 0 0 .0
1 00.0
0.0
0.0
1
290
29
0
0
5
0
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
1
38
0
0
0
0
0
100.0
100.0
0.0
19
3
0
0
0
0
0
0
0
0
0
0
100.0
100.0
1 00.0
100.0
0.0
0.0
0.0
0.0
531
448
5
5
536
453
531
448
165
121
385
63
83
88
33
44
78
4
16
1
9
8
7
Banks operating branches .
390
63
385
63
5
0
390
63
Branches ........................................
83
83
0
83
N e v a d a -a ll o ffic e s .........................
Banks .............................................
Unit banks ..............................
113
8
113
8
0
0
113
8
1
7
1
3
0
1
0
3
0
0
0
0
0
0
0
0
0
0
100.0
100.0
100.0
100.0
105
74
15
16
0
0
0
0
0
100.0
100.0
0.0
51
29
51
29
0
0
99.6
99.1
9 9 .4
9 8.8
100.0
100.0
Banks operating branches .
1
7
1
7
0
0
B ra n c h e s ........................................
105
105
0
113
8
7
7
105
N ew H a m p s h ire -a ll o f f i c e s ..........
Banks .............................................
Unit banks ..............................
232
111
230
109
2
2
181
82
179
80
125
47
3
1
51
32
1
1
1
1
Banks operating branches .
55
56
53
56
2
0
37
45
35
45
16
31
1
0
1
0
18
11
18
11
0
0
98.1
100.0
97.2
100.0
100.0
100.0
121
121
0
99
99
78
0
1
2
19
13
Branches ........................................
19
0
0
22
22
0
100.0
1 00.0
100.0
New J e rs e y -a ll o f f ic e s ....................
Banks .............................................
Unit banks ..............................
1,667
238
1,667
238
0
0
1 ,554
218
1,554
218
1,044
122
231
23
279
73
0
0
0
0
113
20
113
20
0
0
100.0
100.0
10 0.0
100.0
100.0
100.0
Banks operating branches .
53
185
53
185
0
0
48
170
48
170
20
102
2
21
26
47
0
0
0
0
5
15
5
15
0
0
100.0
100.0
100.0
100.0
100.0
100.0
Branches ........................................
1,429
1,429
0
1,336
1,336
922
208
206
0
0
93
93
0
100.0
100.0
100.0
N ew M e x ic o - a ll o f f i c e s ..................
Banks .............................................
Unit banks ..............................
26 6
77
265
76
1
1
266
77
265
76
135
34
21
7
109
35
0
0
1
1
0
0
0
0
0
0
100.0
100.0
1 00 .0
100.0
0.0
0.0
0.0
0.0
Banks operating branches .
17
60
16
60
1
0
17
60
16
60
5
29
2
5
9
26
0
0
1
0
0
0
0
0
0
0
100.0
100.0
100.0
100.0
B ra n c h e s ........................................
189
189
0
189
189
101
14
74
0
0
0
0
0
100.0
100.0
0.0
N ew Y o r k - a l l o f fic e s .......................
B a n k s .............................................
Unit banks ..............................
4 ,0 9 5
424
4 ,0 5 2
390
43
34
3,395
305
3,352
271
1,699
154
1,438
70
215
47
38
29
5
5
700
119
700
119
0
0
99.1
93.1
98.9
90.3
100.0
100.0
Banks operating branches .
106
318
78
312
28
6
101
204
73
198
40
114
14
56
19
28
23
6
5
0
5
114
5
114
0
0
77.2
98.1
76.0
97.1
100.0
100.0
Branches3. ......................................
3,671
3 ,6 6 2
9
3,090
3,081
1,545
1,368
168
9
0
581
581
0
99.8
99.7
100.0
INSURANCE CORPORATION
357
319
536
4 53
DEPOSIT
l\le b ra s k a -a ll o ffic e s .......................
Banks .............................................
Unit banks ...............................
Percentage in sure d1
N oninsured
FEDERAL
State and ty p e o f b ank
o r o ffic e
M u tu a l savings banks
Com m ercial banks and nondeposit tru s t com panies
A ll banks
N o rth C a ro lin a -a ll o f f i c e s .............
B a n k s .............................................
Unit banks ..............................
1,639
92
1 ,628
91
11
1
1,639
92
1,628
91
786
26
3
2
839
63
11
1
0
0
0
0
0
0
0
0
99 .3
98.9
9 9.3
98.9
0.0
0.0
Banks operating branches .
21
71
21
70
0
1
21
71
21
70
4
22
1
1
16
47
0
1
0
0
0
0
0
0
0
0
100.0
98.6
100.0
98.6
0.0
0.0
B ra n c h e s ........................................
1,547
1,537
10
1,547
1,537
760
1
776
10
0
0
0
0
99.4
9 9.4
0.0
N o rth D a k o ta -a ll o f f i c e s ...............
Banks .............................................
Unit banks ..............................
251
171
246
168
5
3
251
171
246
168
61
43
6
4
179
121
5
3
0
0
0
0
0
0
0
0
98 .0
98.2
9 8.0
9 8.2
0.0
0.0
2
1
2
2
2
2
0
0
0
0
0
0
0
0
0
98.2
98.2
98.2
98.2
0.0
0.0
0
0
0
0
97 .5
9 7.5
0.0
0
0
0
0
0
0
0
0
99.9
99.6
9 9.9
99.6
0.0
0.0
0
0
0
0
0
0
0
0
98.8
100.0
98.8
100.0
0.0
0.0
114
57
112
56
2
1
114
57
112
56
29
14
78
2
80
78
18
3
1
2
80
41
80
O h io - a ll o f f ic e s .................................
B a n k s .............................................
Unit banks ..............................
2,111
4 98
2,1 0 9
4 96
2
2
2,111
4 98
2,109
496
1,163
219
505
112
441
165
Banks operating branches .
172
326
170
326
2
0
172
326
170
326
50
169
48
64
72
93
B ra n c h e s ........................................
1,613
1,613
0
1,613
1,613
944
393
276
0
0
0
0
0
100.0
100.0
0.0
O k la h o m a -a ll o ffic e s .......................
Banks .............................................
Unit banks ..............................
556
460
551
455
5
5
556
460
551
455
250
193
18
15
283
247
1
1
4
4
0
0
0
0
0
0
99 .8
99 .8
9 9.8
9 9.8
0.0
0.0
0.0
0.0
58
368
92
363
92
5
0
368
92
363
92
140
53
12
3
211
36
1
0
4
0
0
0
0
0
0
0
99.7
100.0
99.7
100.0
96
96
0
96
96
57
3
36
0
0
0
0
0
100.0
100.0
0.0
O re g o n -a ll o f f i c e s ............................
B a n k s .............................................
Unit banks ..............................
47 4
50
472
48
2
2
469
49
467
47
298
8
0
0
169
39
2
2
0
0
5
1
5
1
0
0
99 .6
96.0
9 9 .6
9 5.9
100.0
100.0
19
31
17
31
2
0
19
30
17
30
1
7
0
0
16
23
2
0
0
0
0
1
0
1
0
0
89.5
100.0
89.5
100.0
0.0
100.0
424
4 24
0
420
420
290
0
130
0
0
4
4
0
100.0
100.0
100.0
P e n n s y lv a n ia -a ll o ffic e s ...............
B a n k s .............................................
Unit banks ..............................
2 ,7 5 3
414
2 ,7 4 4
407
9
7
2,599
406
2,590
399
1,578
250
201
15
811
134
7
5
2
2
Banks operating branches .
138
269
6
1
143
263
137
262
95
155
6
9
36
98
2
0
Branches3 ......................................
2,339
2,337
2
2,193
2,191
1,328
186
677
4
1
2
0
154
8
7
7
146
154
8
7
7
146
100.0
100.0
144
270
R hode I s la n d - a ll o f f i c e s ...............
Banks .............................................
Unit banks ..............................
297
22
285
20
12
2
230
16
218
14
119
5
0
0
99
9
12
2
0
0
67
6
67
6
Banks operating branches .
3
19
3
17
0
2
3
13
3
11
0
5
0
0
3
6
0
2
0
0
0
6
0
6
Branches ........................................
2 75
265
10
214
204
114
0
90
10
0
61
61
S o uth C a r o lin a - a ll o f f i c e s .............
Banks .............................................
Unit banks ..............................
672
91
672
91
0
0
672
91
672
91
308
18
15
6
349
67
0
0
0
0
0
0
Banks operating branches .
28
63
28
63
0
0
28
63
28
63
2
16
2
4
24
43
0
0
0
0
Branches ........................................
581
581
0
581
581
290
9
282
0
S o uth D a k o ta - a ll o f f i c e s ...............
Banks .............................................
Unit banks ..............................
273
158
27 3
158
0
0
273
158
273
158
100
31
40
27
133
100
Banks operating branches..
113
45
113
45
0
0
113
45
113
45
20
11
18
9
Branches ........................................
115
115
0
115
115
69
13
99 .7
98 .8
9 9.7
9 8.8
97.2
99.6
97.2
99.6
100.0
100.0
0
99.9
99.9
100.0
0
0
96.0
90.9
9 4.8
87.5
100.0
100.0
0
0
100.0
89.5
100.0
84.6
0.0
100.0
0
96.4
95.3
100.0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
0
0
0
0
100.0
100.0
0.0
0
0
0
0
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
75
25
0
0
0
0
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
33
0
0
0
0
0
100.0
100.0
0.0
195
0
0
0
0
BRANCHES
Banks operating branches .
Branches3 ......................................
OF BANKS AND
Banks operating branches .
B ra n c h e s ........................................
NUMBER
Banks operating branches .
B ra n c h e s ........................................
196
T able 103. N U M B E R OF B A N K IN G O F F IC E S IN TH E U N IT E D S T A T E S (S TA T E S A N D O T H E R A R E A S ),
D ECE M BE R 31, 1 9 7 4 -C O N T IN U E D
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE
N on insured
Insured
T o ta l
Insured
N on
insured
T o ta l
T o ta l
Members F.R.
System
Na
tional
Tennessee— all o f f ic e s .................
Banks .............................................
Unit banks ..............................
Banks operating branches .
State
N on
m em
bers
F.R.
Sys
tem
Banks
o f de
p o sit2
Non
deposit
tru s t
com
panies9
To ta l
Insured
N on
insured
A ll
banks
of
de
posit
C om
mercial
banks
of
d ep osit
M utual
savings
banks
1,060
337
1,056
3 34
4
3
1,060
337
1,056
334
427
75
58
15
571
244
3
2
1
1
0
0
0
0
0
0
99.7
99.4
99.7
99 .4
0.0
0.0
138
199
136
198
2
1
138
199
136
198
13
62
8
7
115
129
1
1
1
0
0
0
0
0
0
0
99.3
99.5
99.3
99.5
0.0
0.0
Branches ........................................
723
722
1
723
722
352
43
327
1
0
0
0
0
99.9
99.9
0.0
T e x a s-a ll o f f i c e s .......................
Banks .............................................
Unit banks ..............................
1,436
1,313
1,429
1,306
1,436
1,313
1,429
1,306
589
569
49
38
791
699
0
0
0
0
0
0
99.5
99.5
99.5
9 9 .5
0.0
0.0
1,196
110
1,203
110
1,196
110
551
18
29
9
616
83
7
7
7
0
0
1,203
110
7
7
7
0
0
0
0
0
0
0
0
99.4
100.0
99.4
100.0
0.0
0.0
100.0
0.0
Banks operating branches .
0
0
Branches ........................................
123
123
0
123
123
20
11
92
0
0
0
0
0
100.0
U t a h -a ll o f f ic e s .........................
Banks .............................................
Unit banks ..............................
241
55
240
54
241
55
240
54
107
11
41
5
92
38
0
0
1
1
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
Banks operating branches .
35
20
34
20
1
1
7
0
35
20
34
20
6
5
2
3
26
12
0
0
1
0
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
Branches ........................................
186
186
0
186
186
96
36
54
0
0
0
0
0
100.0
100.0
0.0
V e rm o n t-a ll o ffic e s ...................
B a n k s .............................................
Unit banks ..............................
178
40
177
39
1
1
165
34
164
33
7
63
17
0
0
101
16
0
0
1
1
13
6
13
6
0
0
100.0
100.0
100.0
100.0
100.0
100.0
2
4
1
2
4
1
0
0
100.0
100.0
100.0
100.0
100.0
100.0
0
100.0
100.0
100.0
Banks operating branches .
10
30
9
30
1
0
8
26
26
5
12
0
0
2
14
0
0
1
0
Branches ........................................
138
138
0
131
131
46
0
85
0
0
V irg in ia -a ll offices ...................
Banks .............................................
Unit banks ..............................
1,400
288
1,400
2 88
0
0
1,400
288
1,400
288
742
109
275
65
383
114
0
0
0
0
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
Banks operating branches .
94
194
94
194
0
0
94
194
94
194
18
91
33
32
43
71
0
0
0
0
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
Branches ........................................
1 ,112
1,112
0
1,112
1,112
633
210
269
0
0
0
0
0
100.0
100.0
0.0
W ash in gto n -all o ffic e s ...............
B a n k s .............................................
Unit banks ..............................
848
101
842
95
6
6
754
93
748
87
529
23
7
41
5
178
59
5
5
1
1
94
8
94
8
0
0
99.4
95.0
99.3
94.6
100.0
100.0
O
8
0
0
87.5
100.0
87.5
100.0
0.0
100.0
0
100.0
100.0
100.0
Banks operating branches .
41
60
35
60
6
0
41
52
35
52
Branches3. ......................................
747
747
0
661
661
16
2
3
26
33
5
0
1
0
0
8
506
36
119
0
0
86
86
FEDERAL DEPOSIT INSURANCE CORPORATION
State and ty p e o f bank
o r o ffic e
Percentage in sure d1
M utual savings banks
Com m ercial banks and nondeposit tru s t com panies
A ll banks
240
214
240
214
0
0
240
214
240
214
113
100
32
29
95
85
0
0
0
0
0
0
0
0
0
0
Banks operating branches .
188
26
188
26
0
0
188
26
188
26
87
13
26
3
75
10
0
0
0
0
0
0
0
0
0
0
Branches ........................................
26
26
0
26
,.,26
13
3
10
0
0
0
0
0
W is c o n s in -a ll o f f i c e s .......................
Banks .............................................
Unit banks ..............................
954
628
949
623
5
5
951
625
946
620
210
128
55
33
681
459
0
0
5
5
3
3
3
3
0
0
100.0
100.0
West V ir g in ia - a ll o f f i c e s ...............
B a n k s .............................................
Unit banks ..............................
100.0
100.0
100.0
100.0
0.0
0.0
100.0
100.0
100.0
100.0
0.0
0.0
100.0
100.0
0.0
100.0
100.0
100.0
100.0
100.0
0.0
431
197
426
197
5
0
428
197
423
197
84
44
0
0
5
0
3
0
3
0
0
0
100.0
100.0
100.0
100.0
326
0
326
326
82
23
10
22
316
143
326
222
0
0
0
0
0
100.0
100.0
0.0
W y o m in g -a ll o ffic e s .........................
Banks .............................................
Unit banks ..............................
76
74
76
74
0
0
76
74
76
74
45
44
13
13
18
17
0
0
0
0
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
Banks operating branches .
72
2
72
2
0
0
72
2
13
0
16
1
0
0
0
0
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
2
2
0
2
72
2
2
43
1
Branches ........................................
1
0
1
0
0
0
0
0
100.0
100.0
0.0
29
1
18
1
7
11
0
29
1
7
18
1
7
9
1
7
11
0
0
0
0
0
n
0
0
0
62.1
100.0
62.1
100.0
0.0
0.0
0
0
0
0
0
0
0
0
100.0
0.0
100.0
0.0
0.0
0.0
O ther areas
P acific Is.— all o ffic e s 4 .......................
Banks .............................................
Unit banks ..............................
9
0
0
0
0
0
Banks operating branches .
1
0
0
0
0
0
0
0
0
0
0
0
Branches5 ......................................
28
17
11
28
17
9
0
8
11
0
0
0
0
60.7
60.7
0.0
Canal Z o n e - a ll o f f i c e s ....................
B a n k s .............................................
Unit banks ..............................
2
0
0
0
2
0
2
0
0
0
0
0
0
0
0
0
2
0
0
0
0
0
0
0
0
0
0.0
0.0
0.0
0.0
0.0
0.0
0
0
2
0
0
0
0
0
0
0
0
0.0
0.0
0.0
0.0
0.0
0.0
0
0
0
0
0.0
0.0
0.0
20
5
7
0
0
1
1
7
1
1
7
0
0
91.3
66.7
91.2
64.3
100.0
100.0
Banks operating branches .
0
0
0
0
0
0
0
0
0
0
0
0
2
0
0
0
2
0
0
Branches6 ......................................
2
0
0
0
0
Puerto R ic o - a ll o f f i c e s ..................
Banks .............................................
Unit banks ..............................
229
15
209
10
20
5
228
14
208
9
7
23
1
0
0
185
8
Banks operating branches .
3
12
2
8
1
4
2
12
0
8
4
0
0
0
0
0
0
66.7
66.7
50.0
66.7
10Q.0
0.0
199
15
214
199
1
0
22
0
0
Branches7 ......................................
214
0
177
15
0
0
0
0
93.0
93.0
0.0
V irg in Islands— a ll o f f i c e s ...............
B a n k s .............................................
Unit banks ..............................
37
8
31
2
6
6
37
8
31
2
29
1
0
0
2
1
6
6
0
0
0
0
0
0
0
0
83.8
25.0
83.8
25.0
0.0
0.0
Banks operating branches .
6
2
0
2
6
0
6
2
0
2
0
1
0
0
0
1
6
0
0
0
0
0
0
0
0
0
0.0
100.0
0.0
100.0
0.0
0.0
Branches8 .....................................
29
29
0
29
29
28
0
1
0
0
0
0
0
100.0
100.0
0.0
197
8
NUMBER OF BANKS AND BRANCHES
Banks operating branches .
B ra n c h e s ........................................
198
Table 103. NUMBER OF BAN K IN G OFFICES IN THE U N ITED STATES (STATES AN D OTHER AREAS),
INSURANCE CORPORATION
M a s s a c h u s e tts : 1 branch operated by a noninsured b ank in N ew Y o rk .
N ew Y o r k : 19 branches operated by a 3 S tate n o n m em ber banks in P uerto Rico.
O regon: 1 branch operated by a n a tio na l bank in C alifo rn ia .
P ennsylvania: 2 branches operated by a noninsured bank in N ew Y o r k and a national bank in New Jersey.
W ash ing to n: 3 branches operated by a n ational bank in C a lifo rn ia .
4 U.S. Possessions: A m e ric a n Sam oa, Guam , M id w a y Islands, and Wake Island. T ru st T e rrito rie s : Caroline
Islands, M ariana Islands, and M arshall Islands.
5 Pacific Islands: 28 branches:
A m e ric a n S am oa: 2 insured branches o perated b y a State n o n m e m b e r b ank in Hawaii.
G uam : 15 insured branches operated by 2 State n onm em ber banks in H aw aii, 1 State nonm em ber bank in
C a lifo rn ia , a na tio na l bank in C a lifo rn ia , and 2 national banks in N ew Y o rk .
Caroline Islands: 4 noninsured branches operated by a national bank in C a lifo rn ia and a S tate n o nm e m be r
bank in Hawaii.
Mariana Islands: 3 noninsured branches operated by a national bank in C alifo rn ia and a State non m em b er
bank in Haw aii.
Marshall Islands: 3 noninsured branches operated by a national bank in C alifo rn ia and a State non m em b er
bank in Haw aii.
M id w ay Islands: 1 noninsured branch operated b y a State n onm em ber bank in Hawaii.
6 Canal Z one: 2 noninsured branches operated by 2 national banks in New Y o rk .
7 Puerto R ico: 22 insured branches operated b y 2 national banks in N ew Y o rk .
8 V irg in Islands: 21 insured branches operated by 2 national banks in N ew Y o rk , 1 n atio na l bank in
C a lifo rn ia , and 1 national bank in Pennsylvania,
in c lu d e s a noninsured nondeposit tru s t com pany th a t is a m em ber o f Federal Reserve System .
DEPOSIT
1 N o n d e p o s it tru s t com panies are exclud e d in c o m p u tin g these percentages.
i n c lu d e s 13 nonin su red branches o f insured banks: 11 in th e P acific Islands and 2 in the Canal Zone.
FEDERAL
D E C E M B E R 3 1 , 1 9 7 4 — C O N T IN U E D
GROUPED AC CO RD IN G TO INSU RANCE STATUS AN D CLASS OF BA N K , AND BY STATE OR A R E A AN D TYPE OF OFFICE
Table 104. NUMBER AND DEPOSITS OF A L L COM M ER C IAL A N D M U T U A L SAVINGS BANKS
(STATES AND OTHER AR EA S ), DECEMBER 31, 1974
BANKS GROUPED BY CLASS AND DEPOSIT SIZE
Insured com m ercial banks
D eposit size
(in dollars)
A ll
banks
T o ta l
20
54
360
743
1,666
888
490
369
61
57
14,968
14,228
4,708
Insured
Non
insured
9
15
108
200
349
162
107
85
15
24
56
287
1,784
2,258
2,623
901
336
181
17
3
134
23
33
16
16
6
10
21
0
1
0
0
0
11
22
71
62
103
29
22
0
0
2
5
29
38
50
34
2
0
1,074
8,446
260
320
160
(In thousands o f dollars)
A m o u n t o f deposits
Less th a n 1 m i l l i o n .........................
1 to 2 m i l l i o n ...................................
2 to 5 m i l l i o n ...................................
5 to 10 m i l l i o n .................................
10 to 25 m i l l i o n ..............................
25 to 50 m i l l i o n ..............................
50 to 100 m i l l i o n ............................
100 to 500 m i l l i o n .........................
500 m illio n to 1 b i ll io n ..................
1 b illio n o r m o r e ..............................
90,291
6 0 2 ,3 4 5
8 ,2 2 2 ,3 5 0
2 3 ,8 7 6 ,0 5 9
7 5 ,8 6 8 ,5 5 0
72,374,651
7 2 ,9 2 7 ,7 6 4
1 6 3 ,7 0 6 ,2 5 7
8 9 ,5 5 8 ,2 7 6
3 4 5 ,7 8 3 ,0 1 0
60,423
564,358
8,100,779
23,635,770
74,667,687
68,0 9 0 ,2 4 8
64,5 2 4 ,3 1 7
130,276,022
68,1 8 4 ,3 8 4
3 08 ,3 0 8 ,9 3 4
15,127
88,489
1,361,549
5,6 6 3 ,6 9 4
27,644,777
31,4 5 0 ,6 4 5
3 3 ,9 7 5 ,9 6 7
77,417,153
4 4 ,2 7 4 ,5 5 5
2 11,269,632
6,294
22,739
39 0 ,3 3 3
1,476,739
5,709,299
5,666,883
7,40 4 ,5 8 5
1 9,500,005
10,751,636
9 3 ,8 7 0 ,3 0 0
3 9 ,0 0 2
4 5 3 ,1 3 0
6 ,3 4 8 ,8 9 7
1 6 ,495,337
4 1,313,611
3 0 ,9 7 2 ,7 2 0
23 ,1 4 3 ,7 6 5
33 ,3 5 8 ,8 6 4
13,15 8 ,1 9 3
3 ,1 6 9 ,0 0 2
29 ,8 6 8
3 7,987
114,485
113,643
281,316
2 8 4 ,3 3 5
702,773
4,4 9 7 ,0 6 9
0
1,155,743
0
0
0
86,809
4 0 0 ,4 4 0
2,61 4 ,8 5 3
4,235,851
2 3 ,1 4 9 ,9 2 0
20,0 0 8 ,2 0 9
3 6 ,3 1 8 ,3 3 3
0
0
7,086
39,837
519,107
1,38 5 ,21 5
3 ,4 6 4 ,8 2 3
5 ,78 3 ,24 6
1,36 5,6 83
0
T o ta l ......................................
853,009,553
746,412,922
433,161,588
144,798,813
168,452,521
7,217,219
86,814,415
12,564,997
199
BRANCHES
......................................
85
356
2,252
3,201
4,638
1,951
933
635
93
84
M utual savings banks
OF BANKS AND
T o ta l
219
379
2,287
3 ,2 3 3
4 ,7 0 5
2,066
1,055
793
124
107
State
Non
insured
banks
and tru s t
com panies
NUMBER
N ational
N um be r o f banks
Less th a n 1 m i l l i o n .........................
1 to 2 m i l l i o n ...................................
2 to 5 m i l l i o n ...................................
5 to 10 m i l l i o n .................................
10 to 25 m i l l i o n ..............................
25 to 50 m i l l i o n ..............................
50 to 100 m i l l i o n ............................
100 to 500 m i l l i o n .........................
500 m illio n to 1 b i ll io n ..................
1 b illio n o r m o r e ..............................
Non
m em bers
F.R . System
M embers F.R . System
200
Table 105. NUMBER A N D DEPOSITS OF A L L COMM ERCIAL BANKS1 IN THE U N ITE D STATES (STATES A N D OTHER AREAS),
D E C E M B E R 31, 197 4
BANKS GROUPED BY DEPOSIT SIZE AN D STATE
(Am ounts in thousands of dollars)
Banks w ith deposits o f Less
than
$1 m illio n
$1 m illio n
to
$2 m illio n
$2 m illio n
to
$5 m illio n
$5 m illio n
to
$10 m illio n
$10 m illio n
to
$25 m illio n
$25 m illio n
to
$50 m illio n
$ 50 m illio n
to
$10 0 m illio n
$ 100 m illio n
to
$5 0 0 m illio n
$ 5 0 0 m illio n
to
$1 b illio n
$1 b illio n
or
m ore
T o ta l U n ite d States
Banks ........................................
T o ta l d e p o s its .........................
1 4,488
75 1 ,229,991
219
88,003
379
5 9 2 ,7 1 5
2,285
8,183,975
3,217
23,712,569
4 ,6 5 4
7 4 ,709,586
1,957
6 7 ,9 5 5 ,3 2 7
943
6 4 ,9 2 0 ,5 4 9
6 56
133,94 0 ,8 5 7
93
67,6 6 1 ,7 3 3
85
3 0 9 ,4 6 4 ,6 7 7
Alabam a
Banks ........................................
D e p o s its ...................................
293
8 ,3 6 7 ,0 1 0
0
0
6
10,041
31
117,808
76
565,203
123
1,872,055
34
1,091,892
11
79 3,180
10
2 ,3 8 0 ,5 9 8
2
1,536,233
0
0
Alaska
B a n k s ........................................
D e p o s its ...................................
10
1,003,920
0
0
0
0
0
0
1
7,284
0
0
4
124,808
2
172,711
3
6 9 9 ,1 1 7
0
0
0
0
A rizo n a
Banks ........................................
D e p o s its ...................................
25
5,7 1 0 ,3 7 3
9
957
0
0
3
10,921
2
13,172
2
25,059
1
42 ,5 1 7
1
8 3,590
4
884,641
1
7 93,587
2
3 ,855,929
Arkansas
B a n k s ........................................
D e p o s its ...................................
262
5,42 8 ,4 3 7
6
2,2 4 2
5
7,665
31
110,893
70
508,776
93
1,494,556
36
1,179,127
16
1,145,997
5
9 79,181
0
0
0
0
C alifo rn ia
Banks ........................................
D e p o s its ...................................
198
7 9 ,1 8 3 ,7 7 0
13
714
1
1,530
16
52,402
27
204,438
51
866,253
36
1,294,716
16
1,140,185
26
4 ,5 4 5 ,9 5 0
4
2,668,343
8
6 8 ,409,239
C olorado
B a n k s ........................................
D e p o s its ................................ ..
329
7 ,0 8 3 ,9 8 6
44
1 9,445
24
36 ,9 2 2
46
156,821
71
513,540
92
1,449,680
26
9 1 7 ,2 5 8
19
1,290,959
5
1,162,699
2
1,536,662
0
0
C o n n e c tic u t
Banks ........................................
D e p o s its ...................................
71
6 ,9 8 4 ,9 5 7
0
0
1
1,120
7
21,873
15
117,792
19
32 3 ,3 8 0
12
39 0 ,1 3 5
6
3 9 1 ,4 5 5
8
2 ,2 3 8 ,0 0 3
1
6 4 4 ,4 3 5
2
2 ,8 5 6 ,7 6 4
Delaware
Banks ........................................
D e p o s its ...................................
18
1 ,840,146
1
0
0
0
2
7,612
4
3 0,752
5
64,922
1
35,417
1
52,225
3
1 ,05 6 ,7 6 2
1
5 92,456
0
0
FEDERAL
State
A ll
banks
INSURANCE
CORPORATION
DEPOSIT
State
16
3,5 8 5 ,6 0 4
0
0
0
0
1
3,154
0
0
2
24 ,6 1 5
5
178,282
2
152,148
4
1,151,821
1
843,173
1
1,232,411
Florida
B a n k s ........................................
D e p o s its ...................................
716
24 ,1 1 4 ,5 2 3
15
8,707
16
23,999
76
2 63,454
110
857,382
216
3 ,4 9 0 ,1 2 2
151
5 ,246,109
97
6,6 3 1 ,1 8 2
34
6 ,2 5 4 ,0 4 8
0
0
1
1,339,520
Georgia
Banks ........................................
D e p o s its ...................................
447
12 ,1 5 9 ,6 6 8
6
2,811
21
34,138
71
256,136
122
886,843
161
2 ,5 6 5 ,5 1 6
36
1,176,026
20
1,388,471
6
1,039,406
2
1,379,466
2
3 ,430,855
Hawaii
Banks ........................................
D e p o s its ...................................
11
2 ,4 6 3 ,6 2 0
0
0
0
0
1
2,326
1
6,987
2
26 ,395
0
0
0
0
5
736,705
2
1,691,207
0
0
Idaho
Banks ........................................
D e p o s its ...................................
24
2,432,981
0
0
2
3,116
0
0
8
54,508
6
1 10,444
2
60 ,8 2 7
2
146,993
2
510,562
2
1,546,531
0
0
Illinois
Banks ........................................
D e p o s its ...................................
1,206
58,854,661
17
4 ,5 2 8
17
26,138
184
671,347
278
2,08 6 ,6 9 4
352
5 ,590,487
199
7 ,0 3 9 ,3 7 8
100
6 ,7 7 2 ,2 6 6
52
8 ,6 1 5 ,3 9 8
3
2,06 7 ,6 9 7
4
2 5,980,728
Indiana
B a n k s ........................................
D e p o s its ...................................
4 10
1 6,512,931
3
972
4
6,844
26
101,168
71
531,695
161
2 ,7 0 7 ,7 5 4
74
2 ,5 8 1 ,6 5 0
43
2 ,850,027
25
4 ,4 1 0 ,8 0 3
1
67 2 ,7 6 0
2
2,64 9 ,2 5 8
Iow a
Banks ........................................
D e p o s its ...................................
665
1 0 ,6 1 2 ,1 1 5
3
940
4
6,083
122
472,2 7 6
218
1,561,089
232
3 ,6 4 1 ,6 8 0
56
1,838,209
22
1,483,154
8
1,608,684
0
0
0
0
Kansas
Banks ........................................
D e p o s its ...................................
613
7,9 6 5 ,7 2 5
4
3,141
38
59,643
187
646,377
160
1,161,578
156
2 ,4 5 6 ,7 8 0
54
1,787 ,0 8 2
6
43 2 ,9 4 2
8
1 ,418,182
0
0
0
0
Kentucky
Banks ........................................
D e p o s its ...................................
342
9 ,0 9 0 ,8 6 0
3
2,538
4
6,476
57
207,018
68
515,830
136
2 ,1 1 1 ,2 7 4
43
1,450,682
21
1,422,017
8
1,847,839
2
1,527,186
0
0
Louisiana
B a n k s ........................................
D e p o s its ...................................
249
1 1 ,0 1 7 ,3 2 6
0
0
3
5,202
21
75,425
41
305,2 1 4
99
1,667,765
47
1,612,003
13
817,730
22
4 ,1 7 2 ,1 2 5
2
1,343,824
1
1,018,038
Maine
B a n k s ........................................
D e p o s its ...................................
49
1 ,8 2 8 ,0 7 8
3
1,918
2
2,819
3
12,535
5
36,456
20
3 1 6 ,8 9 8
7
2 4 5 ,3 3 5
4
283,807
5
92 8 ,3 1 0
0
0
0
0
Maryland
Banks ........................................
D e p o s its ...................................
114
8 ,0 1 1 ,8 9 4
0
0
3
4,549
10
38,437
24
167,389
36
6 1 4 ,5 6 7
19
61 1 ,1 8 3
13
803,306
4
943,7 3 6
4
3 ,2 7 1 ,2 5 0
1
1,557,477
Massachusetts
Banks ........................................
D e p o s its ...................................
152
1 4 ,9 3 3 ,8 5 9
1
567
0
0
5
16,891
23
172,390
50
766,121
25
9 1 7 ,7 7 0
24
1,677,599
20
3 ,9 3 4 ,5 4 4
0
0
4
7,447,977
201
NUMBER OF BANKS AND BRANCHES
W ashington D.C.
Banks ........................................
D e p o s its ...................................
202
Table 105. NUMBER A N D DEPOSITS OF A L L COMM ERCIAL BANKS1 IN THE U N ITE D STATES (STATES A N D OTHER A R EAS),
D E C E M B E R 3 1, 1 9 7 4 -C O N T IN U E D
BANKS GROUPED BY DEPOSIT SIZE AN D STATE
(Am ounts in thousands of dollars)
Banks w ith deposits o f Less
than
$1 m illio n
$1 m illio n
to
$ 2 m illio n
$2 m illio n
to
$5 m illio n
$5 m illio n
to
$10 m illio n
$ 1 0 m illio n
to
$ 2 5 m illio n
$25 m illio n
to
$ 5 0 m illio n
$ 50 m illio n
to
$10 0 m illio n
$10 0 m illio n
to
$50 0 m illio n
$5 0 0 m illio n
to
$1 b illio n
$1 b illio n
or
m ore
FEDERAL
State
A ll
banks
0
0
6
8,299
20
79,275
59
4 5 9,805
118
1,954,926
66
2 ,3 3 5 ,8 3 6
40
2,865,671
29
5 ,661,240
5
3 ,7 6 9 ,2 2 6
4
10,9 7 1 ,8 8 0
745
1 3 ,8 9 6 ,1 0 4
2
969
17
2 7,513
202
746,096
226
1,623,579
209
3 ,2 6 2 ,2 6 5
57
1,994,550
22
1 ,382,953
7
1,154,226
0
0
3
3,70 3 ,9 5 3
Mississippi
Banks ........................................
D e p o s its ...................................
181
5 ,1 4 4 ,3 9 7
0
0
5
8,691
19
62,663
39
285,941
76
1,209,589
25
8 9 1 ,3 3 8
10
628,151
5
764,962
2
1,293,062
0
0
M issouri
Banks ........................................
D e p o s its ...................................
700
1 6 ,1 6 1 ,7 6 8
12
5,139
19
27,969
153
514,215
175
1 ,295,107
220
3 ,4 8 3 ,1 1 4
74
2 ,5 9 3 ,0 0 5
30
2 ,1 0 2 ,1 9 4
13
2 ,4 3 8 ,8 8 7
2
1,121,368
2
2 ,5 8 0 ,7 7 0
M ontana
Banks ........................................
D e p o s its ...................................
154
2 ,6 1 6 ,7 2 5
2
0
4
6,2 1 9
34
127,992
42
320,000
46
71 4,674
15
526 ,4 9 8
8
541,271
3
380,071
0
0
0
0
Nebraska
Banks ........................................
D e p o s its ...................................
453
5 ,7 6 6 ,5 9 9
12
5 ,014
44
6 7 ,8 8 2
142
484,2 8 6
115
831,253
105
1,555,440
24
90 2 ,4 0 9
6
3 8 9 ,9 8 4
5
1,530,331
0
0
0
0
Nevada
Banks ........................................
D e p o s its ...................................
8
1 ,7 5 2 ,4 2 4
0
0
0
0
0
0
0
0
1
13,969
1
3 8 ,8 8 5
1
7 9,676
4
814,5 9 8
1
805,296
0
0
New H am pshire
Banks ........................................
D e p o s its ...................................
82
1 ,5 0 4 ,0 7 5
2
868
1
1,290
20
74,528
13
96,079
31
492 ,5 8 5
10
3 5 9 ,7 2 3
3
2 3 2,436
2
246,566
0
0
0
0
New Jersey
Banks ........................................
D e p o s its ...................................
218
2 0 ,8 8 2 ,3 8 7
0
0
4
5,8 4 8
6
19,707
22
164,753
57
1,034,063
48
1,638,819
32
2 ,0 6 9 ,5 5 5
41
9,6 0 2 ,7 7 7
6
4,1 6 2 ,9 1 0
2
2 ,1 8 3 ,9 5 5
New M exico
Banks ........................................
D e p o s its ...................................
77
2 ,6 5 0 ,8 4 2
1
0
0
0
5
18,073
8
65,071
39
625,659
14
510,2 7 7
7
4 6 7 ,8 1 9
3
963,9 4 3
0
0
0
0
INSURANCE CORPORATION
347
2 8 ,1 0 6 ,1 5 8
M in nesota
Banks ........................................
D e p o s its ...................................
DEPOSIT
M ich igan
Banks ........................................
D e p o s its ...................................
2
3,298
23
77,276
31
247,6 8 5
64
1 ,086,133
53
1,90 3 ,6 1 8
47
3 ,4 4 6 ,7 7 4
58
13,850,841
5
3 ,1 8 6 ,1 8 2
18
114,045,844
N o rth C arolina
Banks ........................................
D e p o s its ...................................
92
1 1 ,9 5 2 ,8 7 0
0
0
1
1,702
11
42 ,7 3 2
17
126,123
26
4 1 4 ,5 1 5
13
4 4 7 ,2 5 7
9
5 8 9,518
10
2 ,1 1 9 ,6 9 8
1
92 2 ,5 4 4
4
7,288,781
N o rth D akota
Banks ........................................
D e p o s its ...................................
171
2 ,4 9 9 ,5 5 2
2
1,440
2
3,150
30
113,172
63
4 5 0 ,9 0 6
55
8 41,8 8 6
10
3 4 2 ,8 0 2
8
492,571
1
2 5 3,625
0
0
0
0
O hio
B a n k s ........................................
D e p o s its ...................................
49 8
2 9 ,6 4 8 ,6 4 9
0
0
6
10,414
40
155,859
90
6 7 1,769
174
2 ,8 2 2 ,0 0 6
92
3 ,2 5 1 ,6 0 5
50
3 ,4 4 6 ,4 6 8
33
6,1 6 8 ,9 7 9
9
6 ,3 2 5 ,4 0 5
4
6,796,144
O klahom a
B a n k s ........................................
D e p o s its ...................................
460
9 ,216 ,0 2 1
5
3,139
21
32,851
121
420,621
108
7 7 6,488
136
2 ,110 ,7 2 6
51
1 ,826,002
9
591,014
5
785,321
4
2,6 6 9 ,8 5 9
0
0
Oregon
B a n k s ........................................
D e p o s its ...................................
49
5 ,6 5 0 ,6 7 3
1
289
0
0
8
30,591
8
62 ,167
14
2 3 6,987
9
3 0 0 ,8 3 0
4
2 6 3,465
3
5 5 1,315
0
0
2
4,205,029
Pennsylvania
Banks ........................................
D e p o s its ...................................
4 06
4 2 ,6 7 7 ,4 6 7
4
234
2
3,010
19
72,827
56
4 1 6 ,1 8 9
141
2 ,359 ,0 4 3
83
2 ,9 1 8 ,1 0 0
46
3,2 1 5 ,6 6 7
41
9 ,0 5 7 ,6 8 7
6
4 ,8 6 1 ,3 2 0
8
19,773,390
R hode Island
B a n k s ........................................
D e p o s its ...................................
16
3 ,1 9 0 ,8 9 0
1
573
0
0
1
3,390
3
24,799
4
54,951
1
3 6 ,0 2 4
2
178,534
1
104,978
2
1,423,236
1
1,364,405
S outh C arolina
Banks ........................................
D e p o s its ...................................
89
3 ,8 6 7 ,2 7 0
0
0
2
3,731
14
4 6 ,115
27
199,337
23
3 3 5 ,0 7 4
15
503,003
1
56,310
6
1,919,187
1
804,513
0
0
S ou th D akota
Banks ........................................
D e p o s its ...................................
158
2 ,6 1 4 ,0 5 2
0
0
2
3,494
48
177,600
51
33 8 ,6 5 7
37
5 4 3,124
14
516,463
2
150,927
4
883,787
0
0
0
0
Tennessee
B a n k s ........................................
D e p o s its ...................................
337
1 2 ,3 0 9 ,5 9 0
3
1,200
12
20,293
43
155,015
79
583,384
116
1,936,652
53
1,8 7 6 ,9 2 5
17
1,109,223
9
2,209,193
5
4 ,4 1 7 ,7 0 5
0
0
Texas
B a n k s ........................................
D e p o s its ...................................
1,313
4 2 ,5 3 0 ,4 3 1
14
9 ,5 9 8
51
79,433
222
779,304
287
2,0 8 6 ,8 5 7
4 45
7 ,185,386
172
5 ,9 7 8 ,5 1 2
64
4,643,941
49
9 ,9 8 0 ,3 2 0
5
3,65 0 ,2 6 9
4
8,136,811
U tah
Banks ........................................
D e p o s its ...................................
55
2 ,9 5 8 ,5 9 7
4
2,447
1
1,787
8
26,907
14
96 ,1 1 8
16
2 4 4,800
4
137,084
1
67 ,5 1 0
5
1,064,340
2
1,317,604
0
0
V e rm o n t
B a n k s ........................................
D e p o s its ...................................
34
1 ,2 3 7 ,2 3 6
1
0
1
1,762
2
6,675
7
56,259
13
207,237
3
104,0 4 8
3
183,898
4
6 7 7,357
0
0
0
0
203
BRANCHES
7
293
OF BANKS AND
3 08
1 3 7 ,8 4 7 ,9 4 4
NUMBER
N ew Y o r k
Banks ........................................
D e p o s its ...................................
204
Table 105. NUMBER A N D DEPOSITS OF A L L COMM ERCIAL BANKS1 IN THE U N ITE D STATES (STATES AN D OTHER AREAS),
D E C E M B E R 31, 1 9 7 4 -C O N T IN U E D
BANKS GROUPED BY DEPOSIT SIZE AN D STATE
(Am ounts in thousands of dollars)
Banks w ith deposits o f -
State
Less
th a n
$1 m illio n
$1 m illio n
to
$ 2 m illio n
$2 m illio n
to
$5 m illio n
$5 m illio n
to
$10 m illio n
$10 m illio n
to
$25 m illio n
$ 2 5 m illio n
to
$ 5 0 m illio n
$ 50 m illio n
to
$10 0 m illio n
$100 m illio n
to
$500 m illio n
$5 0 0 m illio n
to
$1 b illio n
$1 b illio n
or
m ore
FEDERAL
A ll
banks
6
4 ,0 1 4
8
11,953
39
131,867
45
340,345
98
1,681,642
49
1,732,521
19
1,406,321
20
3 ,9 8 5 ,4 2 2
2
1,342,956
2
2 ,446,826
W ashin gton
Banks ........................................
D e p o s its ...................................
93
8 ,7 8 9 ,7 4 4
3
708
5
7,394
18
67,500
16
123,797
28
4 4 2 ,7 5 0
10
3 7 2 ,5 6 4
4
315,971
5
1,272,388
2
1,416,076
2
4 ,7 7 0 ,5 9 6
West V irginia
Banks ........................................
D e p o s its ...................................
214
4 ,9 7 9 ,6 1 4
2
1,522
3
5,045
19
69,036
51
395,953
84
1,381,887
33
1,138,026
17
1 ,210,954
5
777,191
0
0
0
0
W isconsin
B a n k s ........................................
D e p o s its ...................................
625
1 3 ,9 5 0 ,9 1 6
6
6 58
8
11,795
104
3 8 6,060
154
1 ,148,939
233
3 ,7 9 3 ,5 9 7
73
2 ,389,039
34
2,357,491
11
1,842,104
1
603,136
1
1,418,097
W yom ing
Banks ........................................
D e p o s its ...................................
74
1 ,4 2 1 ,7 7 2
1
418
1
1,607
12
42,141
14
103,985
29
4 6 7 ,4 9 3
12
3 9 1,929
3
158,941
2
255,2 5 8
0
0
0
0
Guam
Banks ........................................
D e p o s its ...................................
1
29 ,6 5 4
0
0
0
0
0
0
0
0
0
0
1
29 ,6 5 4
0
0
0
0
0
0
0
0
Puerto Rico
Banks ........................................
D e p o s its ...................................
14
2 ,8 2 4 ,1 7 5
0
0
0
0
1
3,089
0
0
0
0
4
147,575
3
2 2 3,493
4
99 5 ,7 6 2
2
1,454,256
0
0
V irgin Islands
Banks ........................................
D e p o s its ...................................
8
2 8 1 ,0 8 4
0
0
0
0
1
4,489
2
16,212
2
3 1,090
0
0
2
119,904
1
109,389
0
0
0
0
Other areas
1 E xcludes data fo r branches in U.S. te rrito rie s and tru s t te rrito rie s o f banks headquartered in the United States and fo r 19 insured branches, in N ew Y o rk , o f 3 insured n onm em ber banks in Puerto Rico. Includes nondeposit
tru s t com panies.
INSURANCE CORPORATION
288
1 3 ,0 8 3 ,8 6 7
DEPOSIT
Virginia
Banks ........................................
D e p o s its ...................................
Table 106.
ASSETS AND L IA B IL IT IE S OF BANKS
Assets and liabilities of all commercial banks in the United States (States and other areas) June
30, 1974
Banks grouped by insurance status and class o f bank
Assets and liabilities of all mutual savings banks in the United States (States and other areas),
June 30, 1974, and December 31, 1974
Banks grouped by insurance status
Table 109.
Assets and liabilities of insured commercial banks in the United States (States and other areas),
December call dates, 1964, 1970-1974
Assets and liabilities o f insured mutual savings banks in the United States (States and other
areas), December call dates, 1964, 1970-1974
Percentages of assets and liabilities of insured commercial banks operating thro u g h o u t 1974 in
the U nited States (States and other areas), December 31, 1974
Banks grouped by amount of deposits
Table 110.
Table 111.
Table 112.
OF BANKS
Percentages of assets and liabilities of insured mutual savings banks operating th roughout 1974
in the United States (States and other areas), December 31,1974
Banks grouped by amount of deposits
Table 113. D istrib u tio n of insured commercial banks in the United States (States and other areas),
December 31, 1974
Banks grouped according to amount o f deposits and by ratios of selected items to assets or
deposits
L IA B IL IT IE S
Table 108.
AND
Assets and liabilities o f all commercial banks in the United States (States and other areas),
December 31, 1974
Banks grouped by insurance status and class o f bank
ASSETS
Table 107.
Comm ercial banks
incom e taxes on an accrual basis.
Since 1 9 6 9 , all m a jo rity -o w n e d premises subsidiaries are fu lly co n so li
d a ted; o th e r m a jo rity -o w n e d do m e stic subsidiaries (b u t n o t com m ercial ba nk
subsidiaries) are c o n s o lid a te d if th e y m eet any o f the fo llo w in g c rite ria : (a)
any sub sid iary in w h ic h the p a rent bank's in ve stm e n t represents 5 pe rcent o r
m ore o f its e q u ity ca p ita l a cco u n ts; (b) any sub sid ia ry whose gross op e ra tin g
revenues a m o u n t to 5 p e rcent o r m ore o f th e p a re n t ba nk's gross o p e ra tin g
revenues; o r (beginning in D ecem ber 1972) (c) any subsidiary whose " I n
com e (loss) b e fo re in co m e taxes and securities gains o r losses" am ounts to 5
p e rcent o r m ore o f th e "In c o m e (loss) before incom e taxes and securities
205
B efore 19 69, statem en ts o f assets and lia b ilitie s were s u b m itte d b y in
sured co m m e rc ia l banks on e ith e r a cash o r an accrual basis, depending upon
the ba nk's m e th o d o f b o o k k e e p in g . In 1969, insured com m ercial banks
having resources o f $ 5 0 m illio n o r m ore, and beginning in 1970, $25 m illio n
or m o re, w ere re q u ire d to re p o rt th e ir assets and lia b ilitie s on the basis o f
accrual a c c o u n tin g . W here th e results are n o t s ig n ific a n tly d iffe re n t, p a rtic
ular accounts m ay be re p o rte d on a cash basis. Banks n o t subject to fu ll
accrual a c c o u n tin g are re q u ire d to re p o rt the in s ta lm e n t loan fu n c tio n on an
accrual basis, o r else to s u b m it a s ta te m e n t o f unearned incom e on in s ta l
m e n t loans c a rrie d in surplus accounts. A ll banks are required to re p o rt
Mutual savings banks
Sources o f data
Insured ba nks: see p. 229; no nin su re d ba nks: S tate b a n kin g a u th o ritie s ;
and re ports fro m in d iv id u a l banks.
C O R P O R A T IO N
Since June 3 0 , 1 9 7 4 , a c o n so lid a te d sta te m e n t o f d o m e stic and foreign
assets and lia b ilitie s o f U.S. banks has been p u blishe d se m ia n n u a lly b y the
C o rp o ra tio n in "A ssets and L ia b ilitie s — C om m ercial and M u tual Savings
B a n ks." On D ecem ber 3 1 , 19 74, th e co n so lid a te d assets o f insured c o m m e r
cial banks to ta le d $ 1 ,0 4 6 .0 b illio n , com pare d to d o m e stic assets o f $ 9 1 2 .5
b illio n (see ta b le 10 7). The 142 insured co m m e rcia l banks w h ic h re p o rte d
fore ig n o p e ra tio n s he ld c o n s o lid a te d assets o f $ 5 7 8 .4 b illio n .
INSURANCE
Foreign assets of banks
DEPOSIT
E ffe c tiv e D ecem ber 3 1 , 19 71, th e R eports o f C o n d itio n and Incom e fo r
m u tual savings banks were revised. A m o n g th e changes was a re q u ire m e n t fo r
c o n s o lid a tin g th e accounts o f branches and subsidiaries w ith the p a rent
ba nk, on a co m para ble basis w ith co m m e rcia l b a n k re ports (see above). A
1972 revision broadened th e c rite ria fo r co n so lid a te d re p o rtin g ; it also p ro
vided fo r the re p o rtin g o f investm ents in u n co n so lid a te d subsidiaries on an
e q u ity basis, com p a ra b le w ith c o m m e rcia l b a n k re p o rtin g .
One o b je ctive o f the revisions in 1971 was to p ro v id e a s im p lifie d re p o rt
ing fo rm . T o th is end, th e schedules fo r deposits and securities w ere co n
densed and s im p lifie d .
Several changes were made in th e re p o rtin g o f spe cific item s. Loans are
re p o rte d in so m e w h a t m o re de ta il tha n fo rm e rly . In real estate loans, co n
s tru c tio n loans are sho w n sep arately, and loans secured b y re sid ential p ro p
erties are de ta ile d as to those secured b y 1- to 4 -fa m ily pro p e rtie s and by
m u ltifa m ily (5 o r m ore) pro p e rtie s.
A n o th e r im p o rta n t change s h ifte d various reserve accounts w h ich had
been ca rrie d as d e d u c tio n s against assets (a b o u t $ 2 0 0 m illio n in 19 71) in to
the surplus accounts. Figures fo r ea rlier years in tab le 110 have been revised
in o rd e r to p ro v id e c o m p a ra b ility w ith th e 1 9 7 1 -1 9 7 4 data.
B eginning June 3 0 , 19 72, m u tu a l savings banks w ith to ta l resources o f
$25 m illio n o r m ore are re q u ire d to prepare R eports o f C o n d itio n on the
basis o f accrual a cco u n tin g . A ll banks, irre spective o f size, are re quired to
re p o rt in co m e taxes on an accrual basis.
FEDERAL
d e taile d as those s u b m itte d b y insured banks.
A d d itio n a l data on assets and lia b ilitie s o f all banks as o f June 3 0 , 1974
and D ecem ber 3 1 , 1 9 7 4 , are s h o w n in th e C o rp o ra tio n 's sem iannual p u b lic a
tio n Assets and Liabilities—Commercial and M utual Savings Banks.
206
gains o r losses" o f th e p a re n t ba nk. B e ginn ing in 1 9 7 2 , investm ents in sub
sidiaries n o t c o n s o lid a te d in w h ic h th e b a n k d ire c tly o r in d ire c tly exercises
e ffe c tiv e c o n tro l are re p o rte d on an e q u ity (ra th e r tha n co st) basis w ith th e
in ve stm e n t and u n d iv id e d p r o fits a d ju s te d to in c lu d e the pa rent's share o f
the su b sid ia rie s' net w o rth .
In th e case o f insured banks w ith branches ou ts id e th e 50 States, net
am o u n ts du e fro m such branches are in c lu d e d in "O th e r assets," and net
am o u n ts due to such branches are in c lu d e d in "O th e r lia b ilitie s ." Branches
o f insured banks o u ts id e th e 50 States are tre a te d as separate en titie s b u t are
n o t in c lu d e d in th e c o u n t o f banks. Data fo r such branches are n o t included
in th e c o u n t o f banks. Data fo r such branches are n o t in c lu d e d in the figures
fo r th e States in w h ic h th e p a re n t banks are lo c a te d .
P rio r to 1 9 6 9 , secu ritie s he ld b y c o m m e rc ia l banks were re p o rte d net o f
v a lu a tio n reserves; to ta l loans w ere re p o rte d b o th gross (before de d u ctio n s
fo r reserves) and ne t, th e la tte r in c lu d e d in " T o ta l assets." B eginning in
19 69, loans and securities are s ho w n on a gross basis in "T o ta l assets" o f
c o m m e rcia l banks. A ll reserves on loans and securities, in c lu d in g the reserves
fo r bad debts set up p u rs u a n t to In te rn a l Revenue Service rulings, are in
c lu d e d in "R eserves on loans and s e c u ritie s " on the lia b ility side o f the
balance sheet.
In d iv id u a l loan ite m s are re p o rte d gross. In s ta lm e n t loans, how ever, are
o r d in a rily re p o rte d n e t i f th e in s ta lm e n t p a y m e n ts are ap plied d ire c tly to th e
re d u c tio n o f th e loan. Such loans are re p o rte d gross if, u n der c o n tra c t, the
pa ym ents d o n o t im m e d ia te ly reduce th e u n paid balances o f th e loan b u t are
assigned o r pledged to assure re p a y m e n t a t m a tu rity .
The c a te g o ry " T ra d in g a c c o u n t s e c u ritie s " was added to th e c o n d itio n
re p o rt o f c o m m e rc ia l banks in 1 9 69 to o b ta in th is segregation fo r banks th a t
re g u la rly deal in se cu ritie s w ith o th e r banks o r w ith the p u b lic . Banks
oc ca sio n a lly h o ld in g secu ritie s purchased fo r possible resale re p o rt these
u n der "In v e s tm e n t s e c u ritie s ."
Assets and lia b ilitie s he ld in o r a d m in is te re d b y a savings, b o n d , in su r
ance, real estate, fo re ig n , o r a n y o th e r d e p a rtm e n t o f a b a n k, exce pt a tru s t
d e p a rtm e n t, are c o n s o lid a te d w ith th e respective assets and lia b ilitie s o f the
c o m m e rcia l d e p a rtm e n t. "D e p o s its o f in d iv id u a ls , pa rtne rships, and c o rp o ra
tio n s " in c lu d e tru s t fu n d s d e p o s ite d b y a tru s t d e p a rtm e n t in a com m ercial
o r savings d e p a rtm e n t. O th e r assets held in tru s t are n o t included in state
m ents o f assets and lia b ilitie s .
D em and balances w ith , and de m and de posits due to , banks in the U n ite d
States, e xce p t p riv a te banks and A m e ric a n branches o f foreign banks, e x
clude re cip ro ca l in te rb a n k de posits. (R e cip ro ca l in te rb a n k deposits arise
w hen tw o banks m a in ta in d e p o s it a c c o u n ts w ith each o th e r.)
Asset and lia b ility data fo r n o n in s u re d banks are ta b u la te d fro m re ports
p e rta in in g to the in d iv id u a l banks. In a fe w cases, these re ports are n o t as
Table 106. ASSETS A N D L IA B IL IT IE S OF A L L COMM ERCIAL BANKS IN THE U N ITE D STATES (STATES A N D OTHER A R EAS),
JUNE 30, 1974
BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK
(Amounts in thousands of dollars)
Insured banks
Asset, lia b ility , o r cap ita l a c co u n t item
N oninsured banks
Members o f
Federal Reserve System
T o ta l
N ational
State
N ot
m embers
o f F.R .
System
T otal
Total
T o ta l a s s e ts ..............................................................................................................
T o ta l
Banks
of
d e p o s it1
N ondeposit
tru s t
com panies2
695,247,286
519,351,008
175,896,278
182,530,446
14,178,596
13,667,652
510,944
127,217,155
8,430,237
30,1 5 1 ,5 7 4
124,167,454
8,395,754
3 0 ,151,574
109,122,518
6,25 8 ,5 8 9
3 0 ,1 5 1 ,5 7 4
73,854,417
4 ,8 4 1 ,4 9 4
2 2 ,9 7 9 ,0 8 9
35,268,101
1,41 7 ,0 9 5
7 ,1 7 2 ,4 8 5
15,044,936
2 ,1 3 7 ,1 6 5
0
3,049,701
34,483
0
2,946,693
33 ,7 5 4
0
103,008
729
0
31,962,051
2,752,081
1,472,138
5 2,449,074
29,902,044
2,302,183
1,060,096
52,355,803
19,737,249
1,299 ,0 8 8
900,5 6 6
5 0 ,775,452
13,108,402
1,049,373
572,301
3 1 ,3 0 3 ,7 5 8
6 ,6 2 8 ,8 4 7
2 4 9 ,7 1 5
3 2 8 ,2 6 5
19,4 7 1 ,6 9 4
1 0 ,164,795
1 ,003,095
159,530
1,580,351
2,06 0 ,0 0 7
4 4 9 ,8 9 8
41 2 ,0 4 2
93,271
1,974,851
4 3 2 ,9 8 2
4 1 2 ,0 1 7
9 3 ,08 9
8 5,156
16,916
25
182
S e c u ritie s -to ta l ..................................................................................................
U.S. Tre asu ry s e c u r itie s .............................................................................
O b lig atio n s o f o th e r U.S. G o vern m en t agencies and c o r p s ............
O b lig atio n s o f States and p o litic a l s u b d iv is io n s ................................
O th e r s e c u r itie s ............................................................................................
190,793,820
52,534,762
3 1 ,4 1 7 ,7 0 8
100,405,140
6 ,436,210
188,998,775
52,188,524
3 1 ,055,790
9 9,566,845
6,187,616
135,357,593
3 5 ,9 3 7 ,3 5 3
2 0 ,5 2 3 ,4 9 4
7 4,484,651
4 ,4 1 2 ,0 9 5
104,701,721
2 7 ,6 3 4 ,2 3 0
1 6,208,406
57,421,813
3 ,4 3 7 ,2 7 2
30,655,872
8,30 3 ,1 2 3
4 ,3 1 5 ,0 8 8
17.0 6 2 ,8 3 8
9 7 4 ,8 2 3
53,641,182
16,251,171
10,532,296
2 5 ,0 8 2 ,1 9 4
1,775,521
1,795,045
3 4 6 ,2 3 8
361,9 1 8
838,295
24 8,594
1,582,875
3 3 4 ,7 7 2
35 8 ,7 1 9
71 0,026
179,358
212,170
11,466
3,199
128,269
69,2 36
In v e s tm e n t securities— t o t a l ......................................................................
U.S. Treasury securities ......................................................................
184,421,129
182,627,891
1 2 9,076,094
9 9 ,6 6 2 ,4 1 9
29 ,4 1 3 ,6 7 5
5 3 ,5 5 1 ,7 9 7
51,483,541
29,581,092
95,644,988
5,918,270
1,793,238
1,581,106
212,132
51,827,972
29,943,010
96,483,283
6,166,864
35,246226
19,061,414
70,609,091
4,159,363
26,789,650
15,015,804
54,608,505
3,248,460
8,456,576
4,045,610
16,000,586
910,903
16237,315
10,519,678
25,035,897
1,758,907
344,431
361,918
838 2 9 5
248,594
333,003
358,719
710,026
179,358
11,428
3,199
128269
69,236
Obligations of other U.S. Government agencies and corps . . .
Obligations of States and political subdivisions .........................
Other securities .....................................................................................
T ra d in g a c c o u n t s e c u r it ie s - t o t a l............................................................
U.S. Treasury securities ......................................................................
Obligations of other U.S. Government agencies and corps . . .
Obligations of States and political subdivisions .........................
Other securities .....................................................................................
6,372,691
6,370,884
6 ,2 8 1 ,4 9 9
5 ,039 ,3 0 2
1 ,242,197
8 9,385
1.807
1.769
38
706,790
1,474,698
3,921,857
269,346
704,983
1,474,698
3,921,857
269,346
691,127
1,462,080
3,875,560
252,732
844,580
1,192,602
2,813,308
188,812
153,453
269,478
1,062252
63J920
13,856
12,618
46 2 9 7
16,614
1.807
0
0
0
1.769
0
0
0
38
0
0
0
Federal fu n d s sold and securities purchased u n d e r agreem ents
to r e s e ll-to ta l ........................................................................................
W ith dom estic com m ercial b a n k s ............................................................
W ith brokers and dealers in s e cu ritie s....................................................
W ith o t h e r s ....................................................................................................
35,355,397
3 1,6 4 8 ,4 6 9
2,657,720
1,049,208
33,274,049
29,567,121
2,657,720
1,049,208
25,377,328
21,78 3 ,5 0 9
2 ,6 2 8 ,1 8 0
965,6 3 9
20,408,067
17,174,679
2 ,48 5 ,4 8 2
747,906
4,969,261
4 ,6 0 8 ,8 3 0
1 42,698
2 1 7,733
7,896,721
7,783 ,6 1 2
2 9 ,540
83,569
2.081.348
2.08 1 .3 4 8
0
0
2.057.878
2 .0 5 7 .8 7 8
0
0
23.470
23.470
0
0
207
LI ABI LITI ES OF BANKS
877,777,732
ASSETS AND
891,956,328
Cash, balances w ith o th e r banks, and cash item s in process
o f c o lle c t io n - t o ta l .....................................................................................
C u rren cy and c o i n .......................................................................................
Reserve w ith Federal Reserve banks (m em ber banks) ....................
Dem and balances w ith banks in U.S. (e xcept A m e rica n
branches o f fo re ig n b a n k s ) .................................................................
O the r balances w ith banks in U n ited S tates .....................................
Balances w ith banks in fo re ig n c o u n tr ie s .............................................
Cash item s in process o f c o lle c tio n .......................................................
208
Table 106. ASSETS AN D L IA B IL IT IE S OF A L L COMM ERCIAL BANKS IN THE U N ITE D STATES (STATES AN D OTHER AR EAS),
J U N E 3 0 , 1 9 7 4 — C O N T IN U E D
BANKS GROUPED BY INSURANCE STATUS AN D CLASS OF BA N K
(Am ounts in thousands of dollars)
N oninsured banks
Insured banks
Asset, lia b ility , o r cap ital ac co u n t item
Total
N ational
State
Not
mem bers
o f F .R .
System
Members o f
Federal Reserve System
T o ta l
T o ta l
Credit cards and related plans:
Retail (charge account) credit card p la n s ..............................
Check credit and revolving credit plans ...................................
Other retail consumer instalment loans:
Mobile homes, not including travel trailers ............................
Other retail consumer goods .......................................................
Residential repair and modernization instalment loans .............
Other instalment loans for personal expenditures.......................
Single-payment loans for personal expenditures.........................
498,559,443
1 2 7,320,100
492,040,464
126,990,955
391,933,536
92,626,904
295,170,829
72,4 4 6 ,4 7 7
96,762,707
20 ,1 8 0 ,4 2 7
100,106,928
3 4,364,051
6,518,979
3 2 9 ,1 4 5
6,472,845
313,5 6 0
46,134
15,585
5,828,439
5,807,663
2,598,627
2,096,696
501,931
3209,036
20,776
2 02 7 4
502
6,563,349
3,394,833
62,295,134
6,515,426
3,345,411
62,172,660
5,535,192
2,856,394
44,900,666
4,619,765
2,373,667
35,937,736
915,427
482,727
8,962230
9 80 2 3 4
489,017
17,271 J) 94
47,923
49,422
122,474
47,894
49,384
113,674
29
38
8,800
1,082,221
6^30,231
41225,893
1,064,700
6,228,627
41,856,468
953,558
5,076,170
30,706,297
629,731
3,428,308
23,360,574
323,827
1,647,862
7,345,723
111,142
1,152,457
11,150,171
17,521
1,604
69,425
17,521
1,604
63,209
0
0
6,216
1 3,257,450
3 3,6 9 6 ,3 8 0
5,317,701
4,230,491
18,454,811
1 7 9,012,686
1 0 3,454,759
11,253,600
3 3 ,547,042
5,294,807
4,179,386
18,432,512
175,813,391
102,933,424
10,820,138
32,028,003
5,176,299
3,533,220
10,888,926
150,025,433
74,480,601
6 ,3 0 7 ,4 2 4
21,4 7 7 ,9 5 6
2,485,109
2 ,73 7 ,7 8 6
9 ,4 2 6 ,0 2 5
111,636,186
5 9,608,887
4 ,5 1 2 ,7 1 4
1 0,550,047
2 ,6 9 1 ,1 9 0
795,4 3 4
1,462,901
3 8 ,3 8 9 ,2 4 7
14,87 1 ,7 1 4
4 3 3 ,4 6 2
1,519,039
118,508
6 4 6 ,1 6 6
7 ,5 4 3 ,5 8 6
2 5 ,7 8 7 ,9 5 8
2 8 ,4 5 2 ,8 2 3
2,0 0 3 ,8 5 0
149,338
2 2,894
51,105
22,299
3 ,1 9 9 ,2 9 5
521,335
2 ,0 0 3 ,8 5 0
149,338
2 2,46 4
47,771
21,70 5
3 ,1 8 2 ,9 5 8
517,873
0
0
4 30
3 ,3 34
594
16,337
3,4 62
34,108,640
33,833,341
23,064,498
19,172,423
3,892,075
10,768,843
275,299
273,897
1,402
7,061,712
2,453,063
7,061,570
2,452,989
6,334,485
2,085,743
5,058,940
1,323,766
1,275,545
761J977
727,085
367,246
142
74
142
74
0
0
8,849,500
6,689,195
5,238,166
15,297,908
23,756,575
8,847,488
6,655,768
5,228,451
15,185,634
23,668,183
6,398,859
4,495,580
3,797,680
10,488,258
17,815,498
5,388,451
3,839,497
3,025,243
8,229,801
13,570,766
1,010,408
656,083
772,437
2,258,457
4,244,732
2,448,629
2,160,188
1,430,771
4,697,376
5,852,685
2,012
33,427
9,715
112,274
88,392
2,012
33,185
9,574
111,564
87,425
0
242
141
710
967
1 3,815,065
13,595,347
12,354,012
9,0 4 4 ,9 7 9
3 ,3 0 9 ,0 3 3
1 ,241,335
2 1 9 ,7 1 8
213,326
6 ,39 2
Total loans and se c u ritie s...................................................
724,708,660
714,313,288
552,668,457
420,280,617
132,387,840
161,644,831
10,395,372
10,113,598
281,774
Bank premises, fu rn itu re and fix tu re s , and o th e r assets
representing bank premises ...............................................................
Real estate ow ned o th e r than bank p re m is e s ......................................
Investm ents in subsidiaries n o t c o n s o lid a te d ......................................
C ustom ers' lia b ilitie s on acceptances o u ts ta n d in g ............................
O ther assets .................................................................................................
13,642,596
60 6 ,8 6 4
1,594,678
6,6 5 9 ,9 0 3
1 7,526,472
13,578,645
591,451
1,586,242
6 ,5 0 4 ,9 4 8
17,035,704
10,404,191
423,659
1,568,109
6,250,451
14,809,901
8,381,181
248,270
1,224,764
4 ,0 5 3 ,6 4 5
11,308,114
2 ,0 2 3 ,0 1 0
175,389
3 4 3 ,3 4 5
2,1 9 6 ,8 0 6
3 ,5 0 1 ,7 8 7
3 ,1 7 4 ,4 5 4
167,792
18,133
254 ,4 9 7
2 ,2 2 5 ,8 0 3
63,951
15,413
8,436
154,955
4 9 0 ,7 6 8
46 ,7 2 4
4,017
7,719
154,955
393,9 4 6
17,227
11,396
717
0
9 6,822
A ll o th e r loans (in c lu d in g o ve rdra fts)
.............................................
INSURANCE CORPORATION
Loans to dom estic c om m ercial and fo re ig n b a n k s ............................
Loans to o th e r fin a n c ia l in s t it u t i o n s .....................................................
Loans to bro k e rs and dealers in s e c u r it ie s ...........................................
O the r loans fo r purchasing c r c a rry in g s e c u ritie s ..............................
Loans to farm e rs (e x c lu d in g loans on real estate) ............................
C om m ercial and in d u s tria l loans (in c l. open m a rke t p a p e r ) ..........
Loans to in d iv id u a ls - t o t a l.........................................................................
Passenger automobile instalment loans .............................................
N o n d ep osit
tru s t
com panies2
DEPOSIT
Secured by residential properties:
Secured by 1 - to 4 - family residential properties:
Insured by Federal Housing Administration....................
Guaranteed by Veterans Adm inistration .........................
Not insured or guaranteed by FHA or V A .......................
Secured by multi family (5 or more) residential properties:
Insured by Federal Housing Administration ....................
Not insured by F H A ...............................................................
Secured by other properties ...............................................................
Banks
of
d e p o s it1
FEDERAL
Other l o a n s - t o t a l ........................................................................
Real estate l o a n s - t o t a l .............................................................................
Secured by farm land ...........................................................................
T o ta l
T o ta l lia b ilitie s , reserves, and c a p ita l a c c o u n t s ........................................
891,956,328
877,777,732
695,247,286
519,351,008
175,896,278
182,530,446
14,178,596
13,667,652
510,944
Business and personal d e p o s its - to ta l....................................................
Ind ivid u a ls, partnerships, and c o r p o r a tio n s - d e m a n d ...............
Ind ivid u a ls, partnerships, and c o r p o r a tio n s - tim e ......................
Savings deposits ..............................................................................
Deposits accumulated for payment of personal loans ____
576,492,652
217,49 3 ,6 7 2
3 43 ,8 2 5 ,5 7 4
572,500,107
216,528,441
341,85 8 ,4 0 5
435,381,375
1 6 6,231,514
256,93 0 ,3 9 3
334,829,471
128,132,853
199,7 3 9 ,0 5 4
100,551,904
3 8,098,661
5 7,19 1 ,3 3 9
137,118,732
5 0 ,296,927
8 4 ,928,012
3,992,545
965,231
1,967,169
3,954,527
9 29,5 4 0
1,966,906
38,018
35,691
263
134,098,249
460,688
209,266,637
133,769,748
456,793
207,631,864
96,671,984
329,715
159,928,694
76,310,317
265,127
123,163,610
20,361,667
64,588
36,765,084
37,097,764
127,078
47,703,170
328,501
3,895
1,634,773
328,500
3,893
1,634,513
1
2
260
Other deposits of individuals, partnerships, and corps . . .
15,173,406
14,113,261
1 2,219,468
6 ,9 5 7 ,5 6 4
5 ,2 6 1 ,9 0 4
1,893,793
1,060,145
1,058,081
2,064
G overnm ent d e p o s its - to ta l......................................................................
U nited States G o v e rn m e n t-d e m a n d ...............................................
U n ite d States G o v e r n m e n t- tim e ....................................................
States and p o litic a l s u b d iv is io n s -d e m a n d ...................................
States and p o litic a l subdivisio n s— t i m e ..........................................
76,471,187
8,395,306
4 48 ,9 3 5
19,657,515
47,969,431
76,118,978
8,373,819
4 4 6,772
19,504,002
4 7,7 9 4 ,3 8 5
56,589,425
6,629,021
33 4 ,3 2 4
1 4,313,342
3 5 ,3 1 2 ,7 3 8
44,361,474
5 ,0 4 2 ,8 3 8
25 6 ,6 6 5
10,8 9 6 ,4 8 0
28,165,491
12,227,951
1,586,183
7 7,659
3 ,4 1 6 ,8 6 2
7,1 4 7 ,2 4 7
19,529,553
1,744,798
112,448
5 ,190,660
12,481,647
352,209
21,487
2,163
153,513
175,046
350,240
19,519
2,163
153,513
175,045
1,969
1,968
0
0
1
D om estic in te rb a n k d e p o s i t s - t o t a l .......................................................
C om m ercial banks in the U nited S ta te s -d e m a n d ......................
C om m e rcia l banks in th e U n ite d S ta te s - tim e ..............................
M u tu a l savings banks in th e U n ite d S ta te s -d e m a n d .................
M u tu a l savings banks in th e U n ite d S ta te s -tim e ......................
44,094,834
3 4 ,624,839
7,683,161
1,298,368
4 8 8,466
42,729,884
3 3,596,478
7,479,778
1,185,695
467,933
40,987,095
3 2 ,5 9 4 ,4 1 3
6,8 3 3 ,3 8 2
1,102,668
4 5 6 ,6 3 2
22,001,615
16,692,509
4 ,3 9 5 ,3 4 6
63 4 ,0 6 3
279,6 9 7
18,985,480
1 5,901,904
2,4 3 8 ,0 3 6
4 6 8 ,6 0 5
176,935
1,742,789
1,002,065
646,3 9 6
83,027
11,301
1,364,950
1,028,361
203,383
112,673
20,533
1,364,950
1,028,361
203,383
112,673
20,533
0
0
0
0
0
Foreign g o ve rnm e nt and b an k d e p o s i t s - t o t a l ...................................
Foreign governm ents, central b a n k s -d e m a n d ..............................
Foreign governm ents, central b a n k s - t i m e ...................................
Banks in fo re ig n c o u n trie s -d e m a n d ...............................................
Banks in fo re ig n c o u n trie s -tim e ....................................................
18,455,960
1,698,629
9,627,229
6,1 3 4 ,7 1 4
9 95 ,3 8 8
16,901,543
1,534,325
8,866,570
5,788,623
712,025
16,366,805
1,514,075
8,691,527
5,532,550
6 2 8,653
8,686,232
601 ,0 5 2
4 ,9 6 9 ,3 2 8
2,777,931
337,921
7,680,573
91 3 ,0 2 3
3 ,7 2 2 ,1 9 9
2,7 5 4 ,6 1 9
29 0,732
534,738
20,250
175,043
256,073
83,372
1,554,417
164,304
760,659
346,091
283,363
1,553,915
163,802
760,659
346,091
283,3 6 3
502
502
0
0
0
T o ta l d e p o s its ...........................................................................
Demand ................................................................................
Time .......................................................................................
715,514,633
708,250,512
549,324,700
409,878,792
139,445,908
158,925,812
7,264,121
7,223,632
40,489
304,476,449
411,038,184
300,624,644
407,625,868
240,137,051
309,187,649
171,735,290
238,143,502
68,401,761
71,044,147
60,487,593
98,438,219
3,851,805
3,412,316
3,811,580
3,412,052
40,225
264
106,449,830
100,273,062
92,429,213
69,668,538
22,760,675
7,843,849
6,176,768
5,913,487
263,281
57,168,613
10,620,383
1,204,774
6 ,930,726
30,52 5 ,3 3 4
56,087,413
9,590,369
1,201,273
6,765,142
26,628,865
53,6 5 2 ,1 4 4
9 ,1 8 3 ,9 8 3
1,003,040
6 ,5 1 0 ,5 5 5
22,079,491
4 1 ,8 0 8 ,0 1 7
6 ,3 1 5 ,2 0 7
3 9 9 ,3 0 6
4 ,112,901
17,0 3 3 ,1 0 7
1 1 ,844,127
2 ,8 6 8 ,7 7 6
6 0 3 ,7 3 4
2 ,3 9 7 ,6 5 4
5 ,0 4 6 ,3 8 4
2,435,269
40 6 ,3 8 6
198,233
254,587
4 ,5 4 9 ,3 7 4
1,081,200
1,030,014
3,501
165,584
3,89 6 ,4 6 9
1,081,200
1,014,410
1,734
165,584
3 ,6 5 0 ,5 5 9
0
15,604
1,767
0
245,910
303,770
M iscellaneous lia b ilitie s — t o t a l .................................................................
Federal fu n d s purchased and securities sold u nder
agreements to re p u rc h a s e ............................................................
O th e r lia b ilitie s fo r b o rro w e d m o n e y .............................................
M ortgage in d e b te d n e s s ........................................................................
Acceptances o u ts ta n d in g ...................................................................
O ther lia b ilitie s .....................................................................................
T o ta l lia b ilitie s
.........................................................................
821,964,463
808,523,574
641,753,913
479,547,330
162,206,583
166,769,661
13,440,889
13,137,119
...................................
4,362
3,524
1,066
1,047
19
2,458
838
0
838
Reserves on loans and s e c u ritie s -to ta l ...............................................
Reserve fo r bad d e b t losses on loans .............................................
O ther reserves on lo a n s ........................................................................
Reserves on s e c u ritie s ...........................................................................
8,035,205
7,728,352
136,209
170,644
8,003,229
7,701,057
135,754
166,418
6,536,598
6 ,3 4 8 ,1 3 5
78,632
109,831
4,826,659
4 ,6 9 2 ,3 8 2
6 4,619
6 9 ,6 5 8
1,709,939
1 ,655,753
1 4,013
40 ,1 7 3
1,466,631
1,352,922
57,122
56,587
31,976
27,295
455
4,226
31,820
2 7 ,196
4 28
4 ,1 9 6
156
99
27
30
M in o r ity in te re st in con so lid a te d subsidiaries
209
ASSETS AND LIABl LITIES OF BANKS
C e rtifie d and o ffic e rs ' checks, letters o f cre d it, travelers'
checks, etc..........................................................................................
210
Table 106. ASSETS A N D L IA B IL IT IE S OF A L L COMM ERCIAL BANKS IN THE U N ITE D STATES (STATES A N D OTHER A R EAS),
J U N E 3 0 , 1 9 7 4 — C O N T IN U E D
BANKS GROUPED BY INSURANCE STATUS AN D CLASS OF BA N K
(Am ounts in thousands of dollars)
Insured banks
T o ta l
To ta l
T otal
State
T o ta l
Banks
of
d e p o s it1
N on de po sit
tru s t
com panies2
61,247,405
4,2 3 7 ,7 9 2
57,009,613
46,955,709
3,419,240
43,536,469
34,975,972
2,300 ,5 2 0
3 2 ,6 7 5 ,4 5 2
11,979,737
1,118,720
1 0 ,861,017
14,291,696
8 1 8,552
13,4 7 3 ,1 4 4
704,893
177,700
527,193
498,713
177,60 5
3 2 1 ,1 0 8
206,180
95
2 0 6,0 8 5
63,844
14,588,571
24,503,503
17,455,913
924,975
58,671
14,485,734
24,354,805
17,252,505
857,898
40,994
10,886,717
18,659,846
13,333,159
615,753
30,514
8296,182
13,682,733
10,189,838
476,185
10,480
2,590,535
4,977,113
3,143,321
139,568
17,677
3,599,017
5,694,959
3,919,346
242,145
5,173
102,837
148,698
203,408
67,077
4,839
55,358
116,079
89,039
55,793
334
47,479
32,619
114,369
11,284
PERCENTAGES
Of to ta l assets:
Cash and balances w ith o th e r banks .....................................................
U.S. Tre asu ry securities and o b lig a tio n s o f o th e r U.S. G overnm ent
agencies and c o rp o ra tio n s .................................................................
O th e r s e c u r itie s .............................................................................................
Loans (in c lu d in g federal fu n d s sold and securities
purchased u n d e r agreem ents to r e s e l l; ...........................................
O th e r a s s e ts ....................................................................................................
T o ta l cap ita l a cco u n ts 3 .............................................................................
14.3%
14.1%
15.7%
14.2%
20.1%
21.5%
21.6%
9.2
12.2
9.2
12.3
7.8
11.7
8.0
12.1
7.1
10.3
14.7
14.7
5.0
7.7
5.1
6.5
2.9
38.7
59.9
4.5
7.0
59.8
4.5
7.0
60.0
4.8
6.8
60.8
4.9
6.8
57.8
4 .7
6.8
59.2
3.2
7.8
60.7
5.2
12.9
62.4
4.4
9.5
13.6
24.7
40 .4
15.04
10.84
52.0
240
168
8.2%
O f to ta l assets o th e r th a n cash and U.S. T reasury securities:
T o ta l capital a ccounts3 .............................................................................
8.8
8.8
8.6
8.4
9.1
9.5
N u m b e r o f banks ...............................................................................................
1 4,360
14,120
5,763
4,695
1,068
8,357
20.2%
72
1 1ncludes asset and lia b ility figures fo r branches o f fo re ig n banks (ta b u la te d as banks) licensed to do a deposit business. Capital is n o t allocated to these branches by th e p arent banks.
2 A m o u n ts show n as deposits are special accounts and uninvested tru s t fu n d s, w ith the la tte r classified as demand deposits o f individuals, partnerships, and co rp o ra tio n s.
3 0 n ly asset and lia b ility data are included f o r branches located in " o th e r areas" o f banks headquartered in one o f the 50 States; because no capital is allocated to these branches, th e y are excluded fro m th e c o m p u ta tio n o f
ra tio s o f capital accounts to assets.
4 Data fo r branches o f fo re ig n banks referred to in fo o tn o te 2 have been excluded in co m p u tin g th is ra tio fo r noninsured banks o f deposit and in to ta l colum ns.
N o te : F u rth e r in fo rm a tio n on the reports o f assets and lia b ilitie s o f banks m ay be fo u n d on pp. 205-206.
INSURANCE CORPORATION
61,952,298
4 ,4 1 5 ,4 9 2
5 7,5 3 6 ,8 0 6
DEPOSIT
C apital a c c o u n ts - to ta l ..............................................................................
C apital notes and d e b e n tu r e s ............................................................
E q u ity c a p it a l- t o t a l ...........................................................................
Preferred sto ck ................................................................................
Common sto ck ................................................................................
Surplus ...............................................................................................
Undivided p ro fits ...........................................................................
Reserve for contingencies and other capital reserves ..........
N ational
N ot
m embers
o f F .R .
System
FEDERAL
Assets, lia b ility , or ca pital a c co u n t item
N oninsured banks
Members o f
Federal Reserve System
Table 107. ASSETS A N D L IA B IL IT IE S OF A L L COMM ERCIAL BANKS IN THE U N ITE D STATES (STATES A N D OTHER AREAS),
D E C E M B E R 31, 1974
BANKS GROUPED BY INSURANCE STATUS AN D CLASS OF BA N K
(Am ounts in thousands of dollars)
Insured banks
Asset, lia b ility , o r cap ita l acco u n t item
N oninsured banks
M embers o f
Federal Reserve System
T o ta l
N ational
State
N ot
m embers
o f F.R.
System
T o ta l
Total
T o ta l a s s e ts ...........................................................................................................
T o ta l
Banks
of
de p o s it1
N o nd e po sit
tru s t
com panies2
718,957,185
537,274,573
181,682,612
193,572,076
14,956,344
14,481,974
474,370
128,841,854
1 1,759,998
2 7 ,118,296
126,081,191
1 1,727,595
27,118,296
107,126,236
8 ,868,049
2 7 ,118,296
76,653,262
6 ,8 4 5 ,0 5 2
2 1 ,1 0 0 ,1 6 9
30,472,974
2 ,0 2 2 ,9 9 7
6 ,0 1 8 ,1 2 7
18,954,955
2,85 9 ,5 4 6
0
2,760.663
32,403
0
2,676,208
3 1,066
0
84,455
1,337
0
3 6 ,2 0 1 ,2 3 2
4,405,361
1,898,598
4 7 ,4 5 8 ,3 6 9
34,414,497
4,090,428
1,449,086
47,281,289
2 1 ,7 1 4 ,1 7 6
2,60 7 ,1 5 6
1,173,584
4 5 ,6 4 4 ,9 7 5
15,2 5 6 ,8 4 2
2 ,1 7 7 ,9 8 5
7 09,653
30,563,561
6 ,4 5 7 ,3 3 4
429,171
463,931
15 ,081,414
12,700,321
1,483,272
2 75,5 0 2
1,636,314
1,786,735
31 4,933
4 4 9 ,5 1 2
177,080
1,725,580
296,3 8 0
4 4 9 ,4 9 0
173,692
61,155
18,553
22
3,388
S e c u ritie s -to ta l ..........................................................................................
U.S. Treasury s e c u r itie s ......................................................................
O b lig a tio n s o f o th e r U.S. G overnm ent agencies and corps . . .
O b lig a tio n s o f States and p o litic a l subdivisions .........................
O th e r s e c u r itie s ..................................................................................
195,934,814
54,799,687
3 2 ,9 0 5 ,0 8 5
100,962,097
7,267 ,9 4 5
193,902,967
54,416,710
3 2 ,439,312
100,161,606
6,885,339
139,062,948
3 8 ,9 2 7 ,3 6 8
2 0 ,8 5 8 ,6 2 2
7 4,322,181
4,9 5 4 ,7 7 7
107,035,815
29,081,381
16,7 8 8 ,5 4 4
5 7 ,3 3 0 ,4 1 6
3 ,8 3 5 ,4 7 4
32,027,133
9 ,8 4 5 ,9 8 7
4 ,0 7 0 ,0 7 8
16,99 1 ,7 6 5
1,119,303
54,840,019
1 5 ,489,342
1 1 ,580,690
2 5 ,8 3 9 ,4 2 5
1,930,562
2,031,847
38 2 ,9 7 7
46 5 ,7 7 3
8 00,491
38 2 ,6 0 6
1,841,363
3 7 2 ,6 4 2
4 5 8 ,5 8 6
69 8 ,9 8 7
3 1 1 ,1 4 8
190,484
10,335
7,187
101,504
71,458
In ve stm e n t s e c u r it ie s - t o t a l..............................................................
U.S. Treasury securities ..............................................................
187,945,321
185,919,136
13 1,147,427
52,251,301
31,553,114
97,591,851
6,549,055
1 0 1 ,6 5 5 ,9 4 8
29 ,4 9 1 ,4 7 9
54,771,709
2 ,0 2 6 ,1 8 5
1,835,709
51,873,986
31,087,341
96,791,360
6,166,449
190,476
36,406,282
19,511,133
70,985,460
4,244,552
27,440,982
15,828230
55,060,602
3,326,134
8,965,300
3,682J903
15,924,858
918,418
15,467,704
11,576208
25,805,900
1£21 ,89 7
377,315
465,773
800,491
382,606
3 66£88
458,586
698,987
311,148
10,327
7,187
101,504
71,458
Obligations o f other U.S. Government agencies and corps.
Obligations o f States and political subdivisions....................
Other securities................................................................................
Tra d in g acco u n t s e c u r i t ie s - t o t a l ....................................................
U.S. Treasury securities ..............................................................
7 ,989,493
7,983,831
7,915,521
5 ,37 9 ,8 6 7
2 ,5 3 5 ,6 5 4
6 8 ,310
2,548,386
1,351£ 7 1
3,370,246
718,890
5.662
5.654
2,542,724
1,351,971
3,370,246
718,890
8
Obligations o f other U.S. Government agencies and corps.
Obligations o f States and political subdivisions .................
Other securities .............................................................................
2,521,086
1,347,489
3,336,721
710,225
1,640,399
960,314
2,269,814
509,340
880,687
387,175
1,066,907
200,885
21,638
4,482
33,525
8,665
5.662
0
O
0
5.654
0
0
0
8
0
0
0
Federal fu n d s sold and securities purchased u n d e r agreements
t o r e s e l l- t o t a l ..................................................................................
W ith dom estic com m e rcia l b a n k s ....................................................
W ith brokers and dealers in s e c u ritie s ............................
W ith others .......................................................................................
40,098,970
3 3 ,833,646
4 ,3 8 6 ,1 3 8
1,879,186
38,937,288
3 2,671,964
4,386,138
1,879,186
29,852,763
2 3 ,726,986
4 ,330,471
1,795,306
23,751,238
19 ,022,833
3 ,3 1 8 ,6 8 4
1,409,721
6,101,525
4 ,7 0 4 ,1 5 3
1,011 ,7 8 7
3 8 5 ,5 8 5
9,084,525
8 ,9 4 4 ,9 7 8
55,667
8 3 ,880
1,161,682
1,161 ,6 8 2
0
0
1.136.517
1.136.517
0
0
25.165
2 5.165
0
0
211
LI ABI LITI ES OF BANKS
912,529,261
ASSETS AND
927,485,605
Cash, balances w ith o th e r banks, and cash item s in process of
c o l le c t i o n - t o t a l .............................................................................
C urrency and c o i n ................................................................................
Reserve w ith Federal Reserve banks (m em ber b a n k s )...............
Dem and balances w ith banks in U.S. (except A m e rica n
branches o f fo re ig n b a n k s ) .........................................................
O th e r balances w ith banks in U nited S ta te s ................................
Balances w ith banks in fo re ig n c o u n t r ie s .....................................
Cash item s in process o f c o lle c tio n ..................................................
212
Table 107. ASSETS A N D L IA B IL IT IE S OF A L L C O M M ERCIAL BANKS IN THE U N ITE D STATES (STATE A N D OTHER AR EA S ),
D E C E M B E R 31, 1 9 7 4 -C O N T IN U E D
BA NK S GROUPED BY INSURANCE STATUS AN D CLASS OF B A N K
(Am ounts in thousands of dollars)
N oninsured banks
Insured banks
Asset, lia b ility , o r cap ital a c c o u n t ite m
T otal
N ational
State
Not
mem bers
o f F.R .
System
M em bers o f
Federal Reserve System
T o ta l
T o ta l
Credit cards and related plans:
Retail (charge account) credit card p la n s ..............................
Check credit and revolving credit plans ...................................
Other retail consumer instalment loans:
Mobile homes, not including travel trailers ............................
Other retail consumer goods ........................................................
Residential repair and modernization instalment loans .............
Other instalment loans for personal expenditures .......................
Single-payment loans for personal expenditures .........................
514,242,243
1 3 2 ,1 0 4 ,8 5 2
506,378,800
1 3 1,751,383
402,175,818
95,48 3 ,1 8 9
299,931,553
7 4 ,5 7 2 ,1 3 2
102,244,265
2 0 ,9 1 1 ,0 5 7
104,202,982
3 6 ,2 6 8 ,1 9 4
7,863,443
35 3 ,4 6 9
7,819,105
3 3 7 ,6 1 8
44,338
15,851
6,048,519
6,030,620
2,771,180
2,2 5 2^ 60
518£20
3259 ,4 4 0
17,899
17,592
307
6,200,357
3,237,732
65,319,740
6,154,725
3,193,583
65,204,281
5,169,777
2,706,831
46,773,867
4,298,626
2,243,723
37,277,473
871,151
463,108
9,496,394
984£48
486,752
18,430,414
45,632
44,149
115,459
45,603
44,111
106,884
29
38
8,575
955,463
6,663,531
43,679,510
939,083
6,652,445
43,576,646
823,136
5,441,570
31,796,828
562,379
3,624,003
24,313,668
260,757
1,817,567
7,483,160
115,947
1,210,875
11,779,818
16,380
11,086
102,864
16,380
11,027
96,021
0
59
6,843
1 2,388,357
3 5 ,3 4 4 ,0 5 7
5,24 1 ,3 7 8
4,0 3 7 ,3 8 8
18,2 4 7 ,6 4 5
188 ,5 6 4 ,4 2 3
1 0 4 ,0 4 5 ,2 5 4
10,082,525
3 5 ,1 1 9 ,9 0 4
5,192,896
4 ,0 0 3 ,0 1 5
18,225,296
184,216,999
1 0 3,714,164
9,563,647
33,66 0 ,6 6 4
5,072,503
3,343 ,9 0 5
10,503,917
157,060,771
74,659,158
5,486,741
2 2 ,1 1 5 ,5 2 6
1 ,873,344
2 ,6 0 2 ,1 4 0
9 ,1 2 2 ,3 4 6
115,508,631
5 9 ,6 3 0 ,4 5 4
4 ,0 7 6 ,9 0 6
1 1 ,5 4 5 ,1 3 8
3 ,1 9 9 ,1 5 9
7 4 1 ,7 6 5
1 ,381,571
4 1 ,5 5 2 ,1 4 0
1 5 ,0 2 8 ,7 0 4
5 1 8,878
1,459,240
120,393
6 5 9 ,1 1 0
7,7 2 1 ,3 7 9
2 7 ,1 5 6 ,2 2 8
2 9 ,0 5 5 ,0 0 6
2 ,3 0 5 ,8 3 2
2 2 4,153
4 8 ,4 8 2
34,373
22,349
4 ,3 4 7 ,4 2 4
3 3 1 ,0 9 0
2 ,3 0 5 ,8 1 4
2 2 4,153
48 ,4 8 2
30 ,8 5 3
21,951
4,330 ,6 9 1
327,8 0 3
18
0
0
3,5 20
3 98
16,733
3,28 7
33,054,722
32,949,382
22,245,004
18,465,052
3,779£52
10,704,378
105,340
103£38
1,402
8,329,376
2,§10,885
8,327,292
2,810,808
7,443,203
2,376,876
6,065,401
1,387,261
1,377,802
989,615
884,089
433,932
2,084
77
2,084
77
0
0
9,000,453
6,546,568
5,636,834
15,599,741
23,066,675
8,998,167
6,514,415
5,625,691
15,491,334
22,997,075
6,520,470
4,313,836
4,086,682
10,640,363
17,032,724
5,498,863
3,658,215
3,273,324
8,251,808
13,030,530
1,021,607
655,621
813,358
2,388,555
4,002,194
2,477,697
2£00 ,5 7 9
1,539,009
4,850,971
5,964,351
2,286
32,153
11,143
108,407
69,600
2,286
31 £ 1 1
11,002
107,697
68,808
0
242
141
710
792
A ll o th e r loans (in c lu d in g o v e rd ra fts ).....................................................
14,2 6 8 ,8 8 9
1 4,07 2 ,6 1 8
12,828,064
9 ,0 2 0 ,2 3 9
3 ,8 0 7 ,8 2 5
1,24 4 ,5 5 4
196,271
191,740
4,531
T o ta l loans and s e c u r itie s .............................................................
750,276,027
739,219,055
571,091,529
430,718,606
140,372,923
168,127,526
11,056,972
10,796,985
259,987
INSURANCE CORPORATION
Loans to dom estic c o m m e rcia l and fo re ig n b a n k s ......................... ..
Loans to o th e r fin a n c ia l in s t it u t i o n s .....................................................
Loans to bro ke rs and dealers in s e c u r itie s ...........................................
O ther loans fo r purchasing or c a rryin g s e c u ritie s ..............................
Loans to farm e rs (e x c lu d in g loans on real e s ta te )..............................
C om m e rcia l and in d u s tria l loans (in c l. open m a rk e t p a p e r ) ..........
Loans to in d iv id u a ls - t o t a l.........................................................................
Passenger automobile instalment loans ...........................................
N on de p osit
tru s t
com panies2
DEPOSIT
Secured by residential properties:
Secured by 1 - to 4 -fa m ily residential properties:
Insured by Federal Housing Adm inistration ..................
Guaranteed by Veterans Adm inistration .........................
Not insured or guaranteed by FHA or VA .......................
Secured by multi family (5 or more) residential properties:
Insured by Federal Housing Adm inistration ..................
Not insured by F H A ...............................................................
Secured by other properties ...............................................................
Banks
of
d e p o s it1
FEDERAL
Other l o a n s - t o t a l .........................................................................
Real estate l o a n s - t o t a l ..............................................................................
Secured by farm lan d ............................................................................
T o ta l
14,362,581
828,552
1,763,296
1 0,872,745
20 ,5 4 0 ,5 5 0
14,296,959
811,080
1,739,054
10,653,382
19,728,540
T o ta l lia b ilitie s , reserves, and c a p ita l a cc o u n ts ........................................
927,485,605
Business and personal d e p o s it s - to t a l.....................................................
In d iv id u a ls , pa rtn ersh ip s, and c o r p o r a tio n s - d e m a n d ...............
In d iv id u a ls , pa rtn ersh ip s, and c o r p o r a tio n s - tim e ....................
Savings deposits ..............................................................................
Deposits accumulated for payment o f personal loans . . . .
Other deposits of individuals, partnerships, and corps . . .
C e rtifie d and o ffic e rs ' checks, le tte rs o f c re d it, tra ve le rs'
checks, e tc .........................................................................................
608,877,244
237,08 4 ,2 0 9
3 6 0 ,7 0 8 ,8 7 5
136,578,392
389,918
223,740,565
1 0,8 1 0 ,6 0 8
585,300
1,722,639
1 0,365,650
1 7 ,255,223
8 ,6 9 2 ,8 8 4
376 ,8 9 5
1,3 1 7 ,3 1 8
7 ,0 3 8 ,6 4 8
1 2 ,476,960
912,529,261
718,957,185
537,274,573
604,637,647
2 35,984,680
358,273,861
458,977,022
181,37 5 ,3 2 2
26 9 ,1 4 5 ,2 9 9
352,177,731
137,87 0 ,9 3 7
20 8 ,6 2 2 ,3 7 3
136,268,612
386,635
221,618,614
97,768,353
274,692
171,102,254
77,142,783
236,138
131,243,452
20,625,570
38,554
39,858,802
2 ,1 1 7 ,7 2 4
2 0 8 ,4 0 5
405,321
3 ,3 2 7 ,0 0 2
4 ,7 7 8 ,2 6 3
3 ,486,351
2 2 5 ,7 8 0
16,415
2 8 7 ,7 3 2
2 ,4 7 3 ,3 1 7
6 5 ,6 2 2
17,472
2 4 ,242
2 1 9,363
81 2 ,0 1 0
4 9 ,9 4 4
4 ,1 0 5
2 3 ,332
21 9 ,3 6 3
71 2,037
15,678
13,367
910
0
99,973
181,682,612
193,572,076
14,956,344
14,481,974
474,370
106,799,291
4 3 ,5 0 4 ,3 8 5
6 0 ,5 2 2 ,9 2 6
145,660,625
5 4 ,6 0 9 ,3 5 8
8 9 ,1 2 8 ,5 6 2
4,239,597
1 ,099,529
2 ,4 3 5 ,0 1 4
4,214,369
1 ,074,517
2 ,4 3 4 ,7 9 8
25,228
25,012
216
38,500,259
111,943
50,516,360
309,780
3,283
2,121,951
309,780
3283
2,121,735
0
0
216
8,456,401
5,684,421
2 ,7 7 1 ,9 8 0
1,92 2 ,7 0 5
7 0 5 ,0 5 4
705 ,0 5 4
0
74,219,736
4,8 2 1 ,9 6 9
500,147
18,710,659
50,186,961
53,899,221
3 ,1 8 7 ,6 2 4
3 5 1 ,6 6 6
1 3,15 5 ,7 8 8
3 7 ,2 0 4 ,1 4 3
43,039,157
2,441,591
273,0 2 0
1 0 ,571,668
2 9 ,7 5 2 ,8 7 8
10,860,064
7 4 6,033
7 8 ,646
2 ,5 8 4 ,1 2 0
7 ,4 5 1 ,2 6 5
20,320,515
1 ,6 3 4 ,3 4 5
148,481
5,554,871
12 ,9 8 2 ,8 1 8
369,770
19,552
9,7 6 0
153,111
187,347
369,733
19,516
9,7 6 0
153,111
187,346
37
36
0
0
1
D o m estic in te rb a n k d e p o s i t s - t o t a l .....................................................
C om m ercial banks in th e U n ite d S ta te s - d e m a n d ....................
C o m m ercial banks in th e U n ite d S ta te s - tim e ............................
M u tu a l savings banks in th e U n ite d S ta te s - d e m a n d ...............
M u tu a l savings banks in th e U n ite d S ta te s -tim e ....................
45,972,530
3 5 ,3 6 8 ,5 8 2
8,758,470
1,362,905
4 8 2,573
45,328,505
35,1 0 1 ,5 5 3
8,563,604
1,197,332
4 66,016
43,338,106
33,849,811
7,91 4 ,3 3 6
1,121,236
4 5 2 ,7 2 3
26,236,287
1 9 ,969,068
5,5 5 5 ,1 2 9
4 9 7 ,7 6 3
2 1 4,327
17,101,819
1 3 ,880,743
2 ,3 5 9 ,2 0 7
62 3 ,4 7 3
23 8 ,3 9 6
1,990,399
1 ,251,742
6 4 9 ,2 6 8
76,096
13,293
644,025
2 6 7 ,0 2 9
194,866
165,573
16,557
643,925
26 6,929
194,866
165,573
16,557
100
100
0
0
0
Foreign g o v e rn m e n t and b a n k d e p o s i t s - t o t a l .................................
Foreign governm ents, central banks, e tc .- d e m a n d ..................
F oreign governm ents, ce n tra l banks, e t c . - t i m e .......................
Banks in fo re ig n c o u n tr ie s - d e m a n d .............................................
Banks in fo re ig n c o u n tr ie s - tim e ..................................................
24,190,861
2,123 ,9 0 0
12,735,060
6,80 9 ,4 7 5
2,522,426
22,227,034
1,882,054
12,078,963
6,339,583
1,926,434
21,746,052
1,854 ,6 5 0
1 1,9 2 0 ,4 6 8
6 ,1 1 6 ,4 4 6
1 ,8 5 4 ,4 8 8
11,708,413
908,451
6 ,5 9 3 ,3 6 3
3,055,541
1 ,151,058
10,037,639
94 6 ,1 9 9
5 ,3 2 7 ,1 0 5
3 ,0 6 0 ,9 0 5
70 3 ,4 3 0
480,982
27,404
1 5 8,495
2 2 3 ,1 3 7
71,946
1,963,827
24 1 ,8 4 6
6 5 6 ,0 9 7
4 6 9 ,8 9 2
595 ,9 9 2
1,962,881
241 ,4 1 0
655 ,5 8 7
4 6 9 ,8 9 2
595,9 9 2
946
436
510
0
0
T o ta l d e p o s its .........................................................................
Demand ..............................................................................
Time......................................................................................
7 53,630,141
746 ,4 1 2 ,9 2 2
577,960,401
4 3 3 ,1 6 1 ,5 8 8
144 ,7 9 8 ,8 1 3
168,452,521
7 ,2 1 7 ,2 1 9
7 ,1 9 0 ,9 0 8
26,311
317,538,522
436,091,619
314,416,936
431,995,986
249,117,278
328,843,123
180£99,440
252,162,148
68,117,838
76,680,975
65^99,658
103,152,863
3,121,586
4,095,633
3,096,002
4,094^06
25,584
727
101,141,270
94,147,074
85,649,400
63,091,043
22,558,357
8,497,674
6,994,196
6,739,992
254,204
5 2,409,710
6,141,193
7 2 8,232
1 1,448,900
3 0 ,4 1 3 ,2 3 5
51,224,639
4 ,867,119
724,845
1 1,226,448
26,104,023
4 8 ,3 5 0 ,6 6 8
4 ,5 0 5 ,0 7 2
510,159
1 0 ,937,743
2 1 ,3 4 5 ,7 5 8
3 6 ,3 2 2 ,9 4 6
3 ,2 8 5 ,5 0 9
366,011
7,1 4 3 ,0 7 8
15,973,499
1 2 ,0 2 7 ,7 2 2
1 ,2 1 9 ,5 6 3
1 4 4,148
3 ,7 9 4 ,6 6 5
5 ,3 7 2 ,2 5 9
2,873,971
3 6 2 ,0 4 7
21 4 ,6 8 6
2 8 8 ,7 0 5
4 ,7 5 8 ,2 6 5
1,185,071
1 ,2 7 4 ,0 7 4
3,387
2 2 2 ,4 5 2
4 ,3 0 9 ,2 1 2
1,185,071
1,249,371
1,643
22 2 ,4 5 2
4 ,0 8 1 ,4 5 5
0
24,703
1,744
0
227,757
.......................................................................
854,771,411
840,559,996
663,609,801
496,252,631
167,357,170
176,950,195
14,211,415
13,930,900
280,515
M in o r ity in te re s t in c o n s o lid a te d subsidiaries .................................
5,896
5,113
2,479
2,479
0
2,634
783
0
783
M isce llaneous l i a b i l i t i e s - t o t a l ...............................................................
Federal fu n d s purchased and securities sold u n d e r
agreem ents to r e p u rc h a s e ..........................................................
O th e r lia b ilitie s fo r b o rro w e d m o n e y ...........................................
Mortgage in d e b te d n e s s .......................................................................
A cceptances o u ts ta n d in g ....................................................................
O th e r lia b ilitie s ...................................................................................
T o ta l lia b ilitie s
213
OF BANKS
10,379,106
74,589,506
4,841,521
509,907
18,863,770
50,37 4 ,3 0 8
LIABILITIES
1 1,084,160
G o ve rn m e n t d e p o s it s - t o t a l....................................................................
U n ite d S tates G o v e rn m e n t-d e m a n d ...........................................
U nite d S tates G o v e r n m e n t - tim e ..................................................
States and p o litic a l s u b d iv is io n s -d e m a n d .................................
S tates and p o litic a l s u b d iv is io n s - t im e ........................................
ASSETS AND
B ank premises, fu r n itu r e and fix tu re s , and o th e r assets
representing b a n k prem ises .......................................................
Real estate ow ned o th e r th a n ba n k p re m is e s ......................................
In vestm e n ts in subsidiaries n o t c o n s o lid a te d ......................................
C usto m ers' lia b ilitie s on acceptances o u ts ta n d in g ............................
O th e r a s s e ts .....................................................................................................
214
Table 107. ASSETS A N D LIA B I L IT I ES OF A L L C O M M ERCIAL BANKS IN THE U N ITE D STATES (STATES A N D OTHER A R EA S ),
D E C E M B E R 31, 1 9 7 4 -C O N T IN U E D
BANKS GROUPED BY INSURANCE STATUS AND CLASS OF B A N K
(Am ounts in thousands o f dollars)
Insured banks
T o ta l
T o ta l
T o ta l
N ational
Banks
of
State
d e p o s it1
N on d e p o s it
tru s t
com panies2
8,676,953
8,376,683
131,581
168,689
7,090,069
6,910,291
69,677
110,101
5,189,328
5 ,065,229
54,200
6 9,899
1,900,741
1 ,845,062
15,477
4 0 ,2 0 2
1,586,884
1 ,4 6 6 ,3 9 2
6 1 ,9 0 4
5 8,588
47,939
4 4 ,7 2 3
1,314
1,902
47,806
4 4 ,6 4 7
1,287
1,872
133
76
27
30
C apital a c c o u n ts - to ta l ..............................................................................
C apital notes and d e b e n tu re s .............................................................
E q u ity c a p i t a l- t o t a l ..............................................................................
Preferred sto ck .................................................................................
Common sto ck .................................................................................
Surplus ................................................................................................
Undivided p ro fits ............................................................................
Reserve for contingencies and other capital reserves..........
63,983,406
4 ,3 9 3 ,2 6 0
59 ,5 9 0 ,1 4 6
63,287,199
4,259,531
59,0 2 7 ,6 6 8
48,254,836
3,4 2 2 ,5 5 7
44 ,832,279
35,830,135
2 ,2 5 7 ,8 9 5
33 ,5 7 2 ,2 4 0
12,424,701
1,1 6 4 ,6 6 2
11,2 6 0 ,0 3 9
15,032,363
8 3 6 ,9 7 4
14,1 9 5 ,3 8 9
696,207
133,729
56 2 ,4 7 8
503,268
1 33,634
3 6 9 ,6 3 4
192,939
95
192,844
54,006
14,886,410
25,497,294
18,175,709
976,727
43,460
14,789,463
25,313,257
17,969,789
911,699
23,550
11,015,947
19231,446
13212,001
649,335
13,070
8,336,240
14,067,301
10,652,267
503,362
10,480
2,679,707
5,164,145
3259,734
145273
19,910
3,773,516
6,081,811
4,057,788
262,364
10,546
96247
184,037
2 05 2 2 0
65,028
10212
50,579
152,257
97257
58,629
334
46,368
31,780
107,963
6,399
PERCENTAGES
O f to ta l assets:
Cash and balances w ith o th e r b a n k s ........................................................
U.S. T rea sury secu ritie s and o b lig a tio n s o f o th e r
U.S. G o v e rn m e n t agencies and c o rp o ra tio n s ...............................
O the r s e c u r itie s .............................................................................................
Loans (in c lu d in g fed era l fu n d s sold and securities
purchased u n d e r agreem ents to r e s e l l) ...........................................
O th e r a s se ts.....................................................................................................
T o ta l cap ita l a cco u n ts3 ..............................................................................
9.8%
13.8%
14.9%
14.3%
16.8%
18.5%
18.5%
9.0
12.1
9.1
12.2
7.8
11.6
8.1
11.9
7.0
10.7
14.0
14.4
5.6
7.9
5.7
7.0
3.7
36.5
59.8
5.2
7.0
59.8
5.2
7.0
60.1
5.7
6.7
60.2
5.6
6.7
59.6
6.0
6.8
58.5
3.4
7.8
60.3
7.6
11.7
6 1 .8
7.0
8.6
14.7
27.4
4 0.7
O f to ta l assets o th e r th a n cash and U.S. T reasury securities:
T o ta l ca p ita l a cco u n ts3.................................................................................
8.7
8.7
8.4
8.3
8.7
9.5
N u m b e r o f b a n k s ................................................................................................
14,488
14,228
5,782
4,7 0 8
1,074
8,446
1 , 2 , 3 , 4 g ee notes t0 ta b le 106.
N o te : F u rth e r in fo rm a tio n on th e reports o f assets and lia b ilitie s o f banks m ay be fo u n d on pp. 205-206.
17.8%
13.9%
13.54
9 .9 4
260
188
50.8
72
INSURANCE CORPORATION
8,724,892
8 ,4 2 1 ,4 0 6
1 32,895
170,591
DEPOSIT
Reserves on loans and s e c u r it ie s - to t a l...................................................
Reserve f o r bad d e b t losses on lo a n s ................................................
O th e r reserves on loans .......................................................................
Reserves on secu ritie s .........................................................................
FEDERAL
Asset, lia b ility , or cap ita l a c c o u n t item
N oninsured banks
Not
m em bers
o f F .R .
Total
System
Mem bers o f
Federal Reserve System
Table 108. ASSETS A N D L IA B IL IT IE S OF A L L M U T U A L SAVINGS BANKS IN THE U N ITE D STATES (STATES A N D OTHER AR EAS),
JUNE 30, 1974, AN D DECEMBER 31, 1974
BANKS GROUPED BY INSURANCE STATUS
(Amounts in thousands of dollars)
Decem ber 31, 1974
June 3 0 ,1 9 7 4
Asset, lia b ility , o r surplus a c c o u n t item
109.544.456
95,589,401
13,955,055
2,192,849
3 1 6 ,0 9 0
7 5 0,683
1,0 3 6 ,1 9 5
89,881
2,053,353
26 8 ,1 0 2
68 3 ,9 4 3
1,022,757
78,551
139,496
4 7,98 8
6 6,74 0
13,438
11,330
3,420,049
1,025,831
25,966,961
6 ,8 4 3 ,9 2 5
22,684,614
5 ,9 6 7 ,8 3 5
3,282,347
8 76 ,0 90
229,120
442,006
163,648
191,057
876,671
2,020,126
824,357
3,122,771
7 12274
1,604,165
694,251
2,957,145
164,397
415,961
130,106
165,626
1,2 2 7 ,9 2 5
3 1 ,527
4 8 7 ,6 2 7
11,75 7 ,8 8 9
9 3 6 ,8 5 3
2 ,2 8 3 ,4 8 6
10,56 0 ,3 0 3
8 8 2 ,6 2 0
1 ,856,557
1 ,19 7,5 8 6
5 4,233
4 26 ,9 29
N oninsured
T o ta l
108,575,630
94,678,209
13,897.421
1,701,867
24 6 ,9 4 8
5 6 5,152
783 ,0 5 4
106,713
1,574,068
2 0 6,458
495,211
7 8 0,207
9 2 ,1 9 2
127,799
40 ,4 9 0
69,941
2,847
14,521
S e c u r itie s - t o ta l............................................................................................................................................
U nite d S tates G ove rn m e n t and agency s e c u r it ie s - t o t a l........................................................
Securities maturing in 1 year or less .......................................................................................
Securities maturing in 1 to 5 y ea rs .........................................................................................
Securities maturing in 5 to 10 yea rs .......................................................................................
Securities maturing after 10 years ............................................................................................
25,946,953
6 ,9 3 7 ,0 3 9
22,526,904
5 ,9 1 1 ,2 0 8
924,504
1,940,486
874,382
3,197,667
695,384
1,498,480
710,734
3,006,610
C orp ora te b o n d s ....................................................................................................................................
S tate, c o u n ty , and m u n ic ip a l o b lig a tio n s ....................................................................................
O th e r bon ds, notes, and d e b e n tu re s ..............................................................................................
1 1,833,561
89 2 ,9 8 7
2,244,571
10,6 0 5 ,6 3 6
8 6 1,460
1,7 5 6 ,9 4 4
C orp ora te s t o c k - t o t a l ..........................................................................................................................
Bank .................................................................................................................................................
O th e r ................................................................................................................................................
4 ,0 3 8 ,7 9 5
3 ,3 9 1 ,6 5 6
6 4 7 ,1 3 9
4 ,1 4 4 ,8 0 8
3 ,4 1 7 ,2 9 9
72 7 ,50 9
399,684
3,639,111
348,385
3,043271
51299
595,840
534,662
3,610,146
3 48 2 9 0
3,069,009
186,372
541,137
T o ta l a s s e ts ...........................................................................................................................................................
Cash, balances w ith banks, and c o lle c tio n ite m s - to ta l ................................................................
C u rren cy and c o i n ...............................................................................................................................
D em and balances w ith banks in th e U n ite d S ta te s ...................................................................
O th e r balances w ith banks in th e U n ite d S ta te s ........................................................................
Cash item s in process o f c o l le c t i o n .................................................................................................
1,845,898
1,566,243
279,655
1,208,873
964,856
244,017
76,605,857
7 4 ,2 2 5 ,1 6 3
66,736,164
6 4 ,8 0 0 ,8 0 6
9,869,693
9 ,4 2 4 ,3 5 7
77,499,189
7 4 ,9 1 9 ,6 8 8
67,449,217
6 5 ,3 3 9 ,7 4 8
10,049,972
9,5 7 9 ,9 4 0
1239,501
51J96
1,017,660
39,348
221,841
11,948
967,161
61,815
821,250
49,185
145,911
12,630
13,322,583
12,808,873
22,541,333
1 2 2 6 0 25 7
11,629,653
17,748,978
962,226
1,179220
4,792,355
13,065,571
12,703,447
23,197,755
12,052,069
11,501239
18275,751
1,013,502
1 202208
4,922,004
1,754,756
10,289,604
12,217,217
1,608,623
9,722,123
10,674,064
146,133
567,481
1,543,153
1,741,715
10,746,970
12,435,254
1,688,126
10,076268
10,875,860
53,589
670,702
1,559,394
3 5 ,5 2 0
4 0 ,7 4 6
541
2,204
1,263
1 2 2,518
34 ,1 2 8
4 0 ,7 1 8
541
1,801
1,263
114,441
1,392
28
0
403
0
8,077
19,768
26,349
743
2,355
1,416
186,732
18,339
2 6,3 2 4
743
930
1,416
175,360
1,429
25
0
1,425
0
11,372
Secured by residential properties:
Secured by 1 - to 4 -fa m ily residential properties:
Insured by Federal Housing Administration ...........................................................
Guaranteed by Veterans Administration ...................................................................
Not insured or guaranteed by FHA or V A ..............................................................
Secured by multifamily (5 or more) residential properties:
Insured by Federal Housing Administration ...........................................................
Not insured by F H A ........................................................................................................
Secured by other properties ......................................................................................................
Loans to dom estic co m m e rcia l and fo re ig n banks ...................................................................
Loans to o th e r fin a n c ia l in s titu tio n s ..............................................................................................
Loans to b ro ke rs and dealers in s e c u ritie s ....................................................................................
O ther loans fo r purchasing o r ca rry in g s e c u r itie s .....................................................................
Loans to farm ers (e xclu d in g loans on real e s ta te ).....................................................................
Com m ercial and in d u s tria l loans ...................................................................................................
215
F ederal fu n d s sold and se curities purchased u n d e r agreem ents to re s e ll..................................
O th e r l o a n s - t o t a l ......................................................................................................................................
Real estate lo a n s - t o t a l.......................................................................................................................
Construction lo an s ........................................................................................................................
Secured by farmland ..................................................................................................................
LIABI LITIES OF BANKS
N oninsured
Insured
ASSETS AND
Insured
T o ta l
Table 108. ASSETS A N D L IA B IL IT IE S OF A L L M U T U A L SAVINGS BANKS IN THE U N ITE D STATES (STATES A N D OTHER A R EAS),
216
JU N E 3 0, 1974, A N D D E C E M B E R 31 , 1 9 7 4 -C O N T IN U E D
BANKS GROUPED BY INSURANCE STATUS
(Am ounts in thousands of dollars)
Decem ber 31, 1974
June 3 0 ,1 9 7 4
Asset, lia b ility , o r surplus a c co u n t item
N oninsured
T o ta l
N oninsured
Insured
2,066,363
111,539
1,699,201
4 3 ,2 6 5
3 6 7 ,1 6 2
6 8 ,2 7 4
2 ,2 1 4 ,5 9 9
127,539
1,812,329
74,028
4 0 2 ,2 7 0
53,511
............................................................................
104,398,708
90,829,311
13,569,397
104,675,023
91,098,687
13,576,336
Bank premises, fu rn itu re and fix tu re s , and o th e r assets representing bank p re m ise s. . .
Real estate ow ned o th e r th a n bank p re m is e s .............................................................................
Investm ents in subsidiaries n o t c o n so lid a te d .............................................................................
O ther a s s e ts ............................................................................................................................................
897,682
226,175
82,499
1,268,699
792,681
206,929
77,431
1 ,197,789
105,001
19,246
5 ,068
7 0 ,910
9 7 6 ,5 5 6
271 ,2 6 8
86,580
1 ,342,180
8 5 7,879
23 3 ,7 7 5
8 2 ,292
1 .263,415
118,677
3 7,493
4,2 8 8
7 8 ,765
Loans to in d iv id u a ls f o r personal e x p e n d itu re s ........................................................................
A ll o th e r loans (in c lu d in g o v e rd ra fts )............................................................................................
Total loans and securities
108,575,630
94,678,209
13,897,421
109,544,456
95,589,401
13,955,055
98,769,053
86,278,609
12,490,444
99,379,412
86,814,415
12,564,997
9 7 ,858,376
8 5 ,3 8 0 ,3 1 0
1 2,478,066
98 ,4 4 8 ,8 3 0
85 ,9 0 4 ,8 2 5
12,544,005
65,728,511
7,655
32,122,210
56,959,275
515
28,420,520
8,769,236
7,140
3,701,690
65,123,561
2,470
33,322,799
56,497,626
295
29,406,904
8,625,935
2,175
3,915,895
910,6 7 7
898,299
12,378
9 3 0 ,5 8 2
9 0 9 ,5 9 0
2 0,992
M iscellaneous lia b ilit ie s - t o t a l.....................................................................................
Securities sold under agreem ents to re p u rc h a s e .........................................................................
O th e r b o r r o w in g s ..................................................................................................................................
O ther lia b ilitie s .....................................................................................................................................
2,032,408
27,671
530,989
1,473,748
1,729,675
27,671
503,7 1 4
1,1 9 8 ,2 9 0
302,733
0
27 ,2 7 5
27 5 ,4 5 8
2,207,995
217,561
6 80,0 1 3
1,310,421
1,952,443
217,561
6 6 7 ,2 5 6
1,067,626
255,552
0
12,757
2 4 2 ,7 9 5
100,801,461
88,008,284
12,793,177
101,587,407
88,766,858
12,820,549
0
0
0
0
0
6,669,925
132,675
6 ,5 3 7 ,2 5 0
1,104,244
4 ,1 8 2
1,1 0 0 ,0 6 2
7,957,049
175,647
7 ,7 8 1 ,4 0 2
6,822,543
169,460
6 ,6 5 3 ,0 8 3
1,134,506
6,187
1 ,128,319
1.6%
6.4
17.5
1.7%
6.2
17.5
.9%
7.4
17.2
2.0%
6.2
17.5
2.1%
6.2
17.5
1.0%
6.3
17.2
72.3
2.3
7.2
72.1
2.4
7.0
73.0
1.4
7.9
71.9
2.4
7.3
71.6
2.5
7.1
73.8
1.7
8.1
Total liabilities
...........................................................................................
0
M in o rity interest in consolidated subsidiaries ...............................................................
Surplus a c c o u n t s - t o t a l ...............................................................................................
C apital notes and d e b e n tu re s ............................................................................................................
O th e r surplus a c c o u n ts ........................................................................................................................
PERCENTAGES
O f total assets:
Cash and balances w ith o th e r banks ....................................................................................................
U.S. G ove rn m e n t and agency s e c u ritie s ...............................................................................................
O th e r s e c u ritie s ............................................................................................................................................
Loans (in c lu d in g federal fu n d s sold and securities purchased und e r
agreem ents to r e s e ll) ......................................................................................................................
O th e r a ss e ts ....................................................................................................................................................
T otal surplus accounts .............................................................................................................................
7,774,169
136,857
7 ,637,312
O f total assets other than cash and U.S. Governm ent obligations:
T o ta l surplus a c c o u n ts ................................................................................................................................
7.8
7.6
8.7
1567.3
7.8
8.8
N um b e r o f b a n k s ...............................................................................................................................................
480
320
160
480
320
160
INSURANCE CORPORATION
................................................................................
D e p o sits-to ta l ..........................................................................................................
Savings and tim e d e p o s its - to ta l......................................................................................................
Savings deposits .............................................................................................................................
Deposits accumulated for payment o f personal loans .......................................................
Fixed maturity and other time deposits ................................................................................
Demand d e p o s its -to ta l ......................................................................................................................
Total liabilities and surplus a ccounts
DEPOSIT
Insured
FEDERAL
T o ta l
Table 109. ASSETS A N D L IA B IL IT IE S OF INSURED COMM ERCIAL BANKS IN THE U N ITE D STATES (STATES A N D OTHER AR EA S ),
DECEMBER C A LL DATES, 1964, 1 9 7 0 -1 9 7 4
(Amounts in thousands of dollars)
Asset, lia b ility , o r cap ita l a cc o u n t item
T o ta l a s s e ts ..................................................................................................................................................................
Dec. 31, 1964
Dec. 31, 1 9 7 0 1
Dec. 31 , 1971
Dec. 31, 1972
348,682,8812
Dec. 3 1 ,1 9 7 3
Dec. 31, 1974
639,903,322
737,699,385
832,658,280
912,529,261
60,032,916
4 ,5 5 1 ,8 8 9
17,580,743
14 ,090,586
5 5 8,335
300,841
2 2 ,9 5 0 ,5 2 2
93,048,095
7 ,0 8 4 ,4 3 0
2 3 ,3 2 5 ,1 2 3
2 1 ,0 8 8 ,7 3 7
1,401,661
3 9 5 ,3 5 6
3 9 ,7 5 2 ,7 8 8
98,690,700
7 ,5 9 1 ,5 9 0
2 7 ,4 8 2 ,8 1 7
2 1 ,9 6 2 ,4 5 6
2 ,4 2 7 ,9 1 4
5 6 7,033
3 8 ,6 5 8 ,8 9 0
111,844,113
8 ,7 0 3 ,0 0 8
2 6 ,0 7 4 ,8 9 0
2 8 ,1 5 6 ,0 6 4
2,7 8 3 ,3 7 9
739 ,9 2 8
4 5 ,3 8 6 ,8 4 4
116,939,181
1 0 ,7 6 8 ,8 4 4
2 7 ,8 2 0 ,7 4 2
3 0 ,1 2 8 ,7 6 8
2,771,041
787 ,9 6 0
4 4 ,6 6 1 ,8 2 6
126,081,191
11 ,7 27 ,5 95
2 7,1 1 8 ,2 9 6
3 4,4 1 4 ,4 9 7
4 ,0 9 0 ,4 2 8
1,44 9,0 86
4 7,2 8 1 ,2 8 9
In v e s tm e n t s e c u r it ie s - t o t a l............................................................................................................................
U.S. T re asu ry s e c u r it ie s ............................................................................................................................
S ecurities o f o th e r U.S. G o ve rnm e nt agencies and c o r p o ra tio n s .................................................
O bligations o f States and p o litic a l subdivisions ...............................................................................
O ther securities ...........................................................................................................................................
100,959,700
6 2 ,5 8 8 ,0 5 2
3,4 4 6 ,1 4 4
3 3 ,3 4 3 ,8 0 7
1,581,697
141,554,863
58,880,431
1 2 ,481,059
6 7 ,4 1 4 ,3 9 3
2,7 7 8 ,9 8 0
163,859,514
62 ,6 9 6 ,6 6 7
17,07 1 ,8 3 6
80,135,021
3 ,9 5 5 ,9 9 0
178,632,700
6 4 ,7 0 9 ,7 1 5
2 1 ,1 5 6 ,6 7 8
8 7 ,4 1 8 ,5 3 8
5 ,3 4 7 ,7 6 9
179,574,763
5 5 ,2 9 3 ,3 0 0
2 7 ,5 3 8 ,2 1 4
9 1 ,2 2 7 ,8 8 2
5 ,5 1 5 ,3 6 7
185,919,136
5 1,873,986
31,087,341
96 ,7 9 1 ,3 6 0
6 ,16 6 ,4 4 9
5,307,564
5,128,096
8,655,329
7,983,831
15,952,321
19,643,272
25,634,862
34,379,920
38,937,288
178,648,870
4 3 ,7 3 3 ,0 8 6
298,189,504
7 3 ,0 5 3 ,3 6 4
328,225,896
8 2 ,3 1 4 ,2 9 0
388,902,133
9 9 ,0 8 6 ,2 7 6
459,755,788
118,787,181
506,378,800
131,751,383
2,616,604
4,319,352
4,173,726
4,752270
5,420,190
6,030,620
7,243,497
2,684,468
18,810,798
7,302,286
2,563,475
32,321,718
7,476243
2,966,378
37,438,104
7236,346
3,181,876
46,425,199
6J902,779
3,253,738
57,639,300
6,154,725
3,193,583
65,204281
12.377.719
588,760
2,718,829
2 3238,944
803,880
3,177,970
26,277,989
1225,769
4,550,113
31,714,703
1293,191
5,636,229
38,641,754
939,083
6,652,445
43,576,646
3,4 2 0 ,9 8 9
1 0,84 9 ,6 4 6
5 ,3 5 5 ,5 5 0
2 ,7 9 4 ,2 1 7
7,4 9 6 ,2 2 3
6 0 ,0 4 0 ,3 8 3
3 9 ,8 1 4 ,7 7 8
2,5 8 1 ,0 7 8
15,79 4 ,2 9 9
6,2 0 8 ,5 7 0
3 ,517,601
11,15 3 ,5 8 3
1 1 2 ,2 1 4 ,9 9 0
6 6 ,0 0 5 ,7 0 0
4 ,4 0 5 ,2 9 8
16,908,213
7 ,2 0 2 ,4 4 0
3 ,6 4 6 ,0 6 4
1 2 ,5 0 6 ,2 0 6
1 1 8,401,203
7 4 ,7 9 6 ,8 4 8
6 ,1 1 9 ,8 4 3
2 3 ,4 0 7 ,6 9 5
11,1 6 5 ,5 7 2
4 ,4 6 7 ,1 4 5
14,3 0 2 ,1 0 6
132 ,4 9 7 ,5 5 5
8 7 ,6 2 9 ,9 0 4
9 ,1 5 5 ,4 9 6
3 0 ,5 4 0 ,9 8 2
7 ,625,741
4 ,3 0 0 ,9 4 6
17,1 5 0 ,3 2 0
1 5 8 ,6 8 8 ,2 0 2
1 0 0 ,3 8 2 ,5 1 0
10,082,525
35 ,1 1 9 ,9 0 4
5,192 ,8 9 6
4 ,0 0 3 ,0 1 5
18,225,296
184,216,999
103,714,164
14.661.720
22,366,443
24,850,695
29,084,924
33,477,132
32,949,382
3,807,987
1,343,990
4,523,889
1,463,857
5,443,349
1,780,153
6,878,593
2 262,700
8,327,292
2,810,808
O ther l o a n s - t o t a l ..............................................................................................................................................
Real estate lo a n s - t o t a l...............................................................................................................................
Secured by farmland ............................................................................................................................
Secured by residential properties:
Secured by 1 - to 4 -fa m ily residential properties:
Insured by Federal Housing Administration ...................................................................
Guaranteed by Veterans Administration ..........................................................................
Not insured or guaranteed by FHA or V A .....................................................................
Secured by mu It if amity (5 or more) properties:
Insured by Federal Housing Administration 3 ................................................................
Not insured by FHA 3 ...........................................................................................................
Secured by other properties .............................................................................................................
Loans to dom estic com m e rcia l and fo re ig n b a n k s .........................................................................
Loans to o th e r fin a n c ia l in s titu tio n s .....................................................................................................
Loans to b ro k e rs and dealers in se curities .........................................................................................
O the r loans f o r purchasing o r c a rry in g s e c u r itie s ............................................................................
Loans to farm ers (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 loans (in c lu d in g open m a rke t p a p e r).................................................
O ther loans to in d iv id u a ls -to ta l ..........................................................................................................
Passenger automobile instalment loans .........................................................................................
Credit cards and related plans:
Retail (charge account) credit card plans5 .....................................................................
Check credit and revolving credit plans? ...............................................................................
217
5,664,059
Federal fu n d s s o ld 4 ...........................................................................................................................................
LI ABI LITI ES OF BANKS
Trading a c c o u n t securities3 ............................................................................................................................
ASSETS AND
576,350,801
Cash, balances w ith banks, and c o lle c tio n ite m s - to ta l ........................................................................
C urrency and c o in ......................................................................................................................................
Reserve w ith Federal Reserve b anks (m e m b e r b a n k s ).....................................................................
Dem and balances w ith banks in th e U.S. (except A m e rica n branches o f foreign b a n k s ). . .
O th er balances w ith banks in th e U.S....................................................................................................
Balances w ith b anks in fo re ig n c o u n t r i e s ...........................................................................................
Cash item s in process o f c o lle c t io n ........................................................................................................
Asset, lia b ility , o r ca p ita l a cco u n t item
Dec. 31, 1964
3,748,783
7,306295
3,012,861
6,441,204
11250210
3,716,802
10,534,538
16^28,945
Dec. 3 1 ,1 9 7 1
Dec. 31 , 1972
Dec. 31, 1973
4,674,364
4,655,510
3,865,597
11,409,477
19,353,459
6,436,145
5,170,118
4,326,916
12203,659
22,484,640
8,371286
6,206,851
4206240
14,538,048
23,740260
Dec. 3 1 , 1974
8,998,167
6,514,415
5,625,691
15,491,334
22297,075
5,143,998
7 ,6 6 0 ,3 1 9
8 ,0 4 5 ,3 3 4
1 0 ,2 2 6 ,0 3 7
1 3,1 2 4 ,4 1 0
1 4 ,0 7 2 ,6 1 8
T o ta l loans and s e c u ritie s ..............................................................................................................
279,608,570
461,360,747
517,036,246
598,297,791
682,365,800
739,219,055
9 ,1 4 3 ,4 3 2
4 0 6 ,8 3 2
7 4 0,897
3 ,7 5 3 ,2 4 6
7 ,8 9 7 ,5 5 2
1 0 ,2 8 5 ,3 8 4
3 9 0 ,8 3 3
9 1 1 ,5 5 0
3 ,9 1 4 ,1 8 6
8 ,6 7 4 ,4 2 3
1 1 ,5 2 4 ,6 4 6
3 6 9 ,1 9 3
1,0 7 7 ,7 0 0
3 ,4 7 1 ,2 0 3
1 1 ,114,739
1 2 ,788,763
4 3 3 ,8 6 0
1 ,4 0 3 ,4 0 0
4 ,3 5 6 ,5 2 7
14,370,749
1 4 ,29 6,95 9
8 1 1 ,0 8 0
1 ,7 3 9 ,0 5 4
1 0,6 5 3 ,3 8 2
1 9,7 2 8 ,5 4 0
Bank premises, fu rn itu re and fix tu re s , and o th e r assets representing b ank pre m ise s ............
Real estate o w ned o th e r th a n ba n k p r e m is e s .....................................................................................
In vestm e nts in subsidiaries n o t c o n s o lid a te d 3 .....................................................................................
C ustom ers' lia b ilit y on acceptances o u ts ta n d in g .............................................................................
O the r a s s e ts ...................................................................................................................................................
}
4 ,7 5 3 ,5 8 8
1,697,120
2,590,687
576,350,801
639,903,322
737,699,385
832,658,280
912,529,261
252,983,403
134,300,734
112,804,696
395,246,811
1 8 1 ,8 9 7 ,2 8 4
2 0 4 ,9 6 2 ,7 5 6
439,568,884
1 9 1 ,7 7 5 ,5 1 5
2 3 7,930,791
504,283,757
2 2 1 ,2 0 4 ,6 4 5
2 7 1 ,8 2 6 ,5 6 7
555,151,799
2 3 1 ,9 5 6 ,8 8 0
3 1 2 ,3 3 2 ,8 2 7
604,637,647
2 3 5 ,9 8 4 ,6 8 0
3 5 8,273,861
82,966,971
956,410
28,881,315
98,815,863
802,924
105,343,969
112,165,951
677,179
125,087,661
124,188,716
554,001
147,083,850
127,818,434
503,468
184,010225
136,268,612
386,635
221,618,614
5,877,973
8,386,771
9 ,8 6 2 ,5 7 8
1 1 ,2 5 2 ,5 4 5
10,8 6 2 ,0 9 2
10,379,106
G overnm ent d e p o s it s - t o t a l.............................................................................................................................
U nited States G o v e rn m e n t-d e m a n d .......................................................................................................
U nited States G o v e r n m e n t- tim e ............................................................................................................
States and s u b d iv is io n s - d e m a n d ............................................................................................................
States and s u b d iv is io n s - tim e ...................................................................................................................
30,068,312
6 ,5 0 0 ,8 7 6
270,832
13,497,662
9 ,79 8 ,9 4 2
49,455,597
7 ,9 1 4 ,9 6 2
4 6 5 ,4 7 6
17 ,784,768
23,290,391
58,987,158
10,263,251
5 3 0,769
1 7 ,7 1 4 ,5 8 6
30 ,4 7 8 ,5 5 2
67,554,342
1 0 ,9 3 9 ,6 7 2
6 1 4 ,0 3 5
1 8 ,6 7 2 ,7 7 4
3 7,327,861
73,660,934
9 ,8 8 7 ,6 6 8
440,641
1 8 ,7 4 6 ,9 0 0
4 4 ,5 8 5 ,7 2 5
74,219,736
4 ,8 2 1 ,9 6 9
500,147
1 8 ,710,659
50,186,961
D om estic in te rb a n k d e p o s i t s - t o t a l ..............................................................................................................
C om m ercial banks in th e U nited S ta te s -d e m a n d .............................................................................
C om m ercial banks in th e U n ite d S t a t e s - t i m e ...................................................................................
M u tu a l savings banks in th e U n ite d S ta te s -d e m a n d ......................................................................
M u tu a l savings banks in th e U nited S ta te s -tim e .............................................................................
16,754,488s
15,492,798
3 82,943
740,382
1 18,835
28,968,652
26 ,2 9 0 ,9 3 9
1,424,049
9 75,4 1 3
278,251
31,906,847
28 ,0 1 4 ,7 3 2
2 ,4 4 1 ,4 8 9
1 ,1 6 3 ,7 4 0
2 8 6 ,8 8 6
33,677,534
2 8 ,5 6 9 ,7 2 7
3 ,5 4 8 ,5 0 3
1 ,2 0 5 ,6 8 8
3 5 3 ,6 1 6
37,444,862
29 ,8 6 1 ,8 7 9
5,7 8 3 ,9 0 7
1,155 ,6 8 2
6 4 3 ,3 9 4
45,328,505
3 5 ,1 0 1 ,5 5 3
8 ,5 6 3 ,6 0 4
1 ,197,332
4 6 6 ,0 1 6
F oreign g o ve rn m e n t and ba n k d e p o s i t s - t o t a l ..........................................................................................
Foreign governm ents, central banks, e tc .-d e m a n d ........................................................................
Foreign governm ents, central banks, e t c . - t i m e ................................................................................
Banks in fo re ig n c o u n trie s -d e m a n d ....................................................................................................
Banks in fo re ig n c o u n trie s -tim e ...........................................................................................................
6,424,074
8 26,137
3,893 ,6 9 3
1,454,685
249,559
8,842,795
9 1 9 ,6 8 3
4 ,6 2 7 ,3 0 6
3 ,0 0 0 ,6 2 6
2 9 5 ,1 8 0
8,721,173
8 0 3 ,3 6 4
5 ,0 5 3 ,5 5 4
2 ,6 8 1 ,0 9 6
183,159
11,391,934
908,731
6 ,5 1 7 ,4 9 3
3 ,6 3 7 ,3 0 9
328,401
15,361,830
1,355,645
8,506,931
5 ,2 7 9 ,6 3 5
219,6 1 9
22,227,034
1,88 2 ,0 5 4
12,07 8 ,9 6 3
6 ,3 3 9 ,5 8 3
1 ,926,434
T o ta l d e p o s its ..........................................................................................................................................
Demand ...............................................................................................................................................
T im e ....................................................................................................................................................
306,230,277s
482,513,855
539,184,062
616,907,567
681,619,425
746,412,922
178,691,247
127,539,030
247,170,446
235,343,409
262^78,862
276^05,200
296,391,091
320,516,476
309,106,381
372,513,044
314,416,936
431,995,986
CORPORATION
348,682,881
Business and personal d e p o s it s - t o t a l...........................................................................................................
In d iv id u a ls , p a rtne rship s, and c o r p o r a tio n s - d e m a n d ......................................................................
In d iv id u a ls , pa rtne rships, and c o r p o r a tio n s - tim e .............................................................................
Savings deposits .....................................................................................................................................
Deposits accumulated for payment o f personal loans ..............................................................
Other deposits o f individuals, partnerships, and corporations ...............................................
C e rtifie d and o ffic e rs ' checks, le tte rs o f c re d it, tra ve le rs' checks, e tc .........................................
INSURANCE
T o ta l lia b ilitie s , reserves, and c a p ita l acco unts ...............................................................................................
DEPOSIT
A ll o th e r loans (in c lu d in g o v e rd ra fts )....................................................................................................
FEDERAL
Other retail consumer instalment loans 1 .......................................................................................
Mobile homes, not including travel trailers3 ...........................................................................
Other retail consumer goods3.......................................................................................................
Residential repair and modernization instalment loans ............................................................
Other instalment loans for personal expenditures ......................................................................
Single-payment loans for personal expenditures ........................................................................
Dec. 31, 1970
218
Table 109. ASSETS A N D L IA B IL IT IE S OF INSURED COM M ERCIAL BANKS IN THE U N ITE D STATES (STATES A N D OTHER AREAS),
DECEMBER C A LL DATES, 1964, 1 9 7 0 -1 9 7 4 -C O N T IN U E D
(Amounts in thousands of dollars)
Miscellaneous lia b ilit ie s - t o t a l..........................................................................................
Federal fu n d s purchased ( b o rro w e d )7 ...................................................................................................
O th e r lia b ilitie s f o r b o rro w e d m o n e y ..................................................................................................
M ortgage indebtedness3 ............................................................................................................................
A cceptances o u t s ta n d in g ..........................................................................................................................
O th e r lia b ilitie s ....................................................................................................................................
11,461,821
Total lia b ilit ie s ......................................................................................................
1,737,101
7 ,1 3 3 ,5 8 7
44,968,169
16,609,041
2 ,5 7 2 ,5 2 8
6 6 8 ,5 4 5
3 ,8 4 8 ,6 6 6
2 1 ,2 6 9 ,3 8 9
47,367,281
2 4 ,1 7 9 ,7 4 2
1,463,429
668,331
4 ,0 3 9 ,6 4 3
17,1 0 6 ,1 3 6
61,509,222
3 3 ,7 3 1 ,0 6 9
3 ,9 1 9 ,7 9 6
1,16 0 ,6 7 5
3 ,5 7 0 ,9 0 0
19,1 2 6 ,7 8 2
85,386,177
5 0 ,4 8 0 ,9 9 6
7 ,1 7 9 ,6 4 4
7 71,519
4 ,4 8 6 ,3 0 9
2 2 ,4 6 7 ,7 0 9
94,147,074
5 1 ,22 4,63 9
4 ,8 6 7 ,1 1 9
7 24 ,8 4 5
1 1,2 2 6 ,4 4 8
2 6 ,10 4,02 3
317,692,098
527,482,024
586,551,343
678,416,789
767,005,602
840,559,996
3,219
3,551
5,594
5,473
5,113
2,5 9 1 ,1 3 3
M in o rity interest in consolidated subsidiaries ...................................................................
6,443,382
6 ,1 5 1 ,2 7 4
113,427
178,681
6,909,306
6,623,801
112,167
173,338
7,808,584
7 ,5 2 6 ,7 4 4
107,994
173,846
8,676,953
8 ,376,683
131,581
168,689
Capital a c c o u n t s - t o t a l ....................................................................
C apital notes and d e b e n tu re s ..................................................................................................................
E q u ity c a p i t a l- t o t a l ....................................................................................................................................
Preferred s to ck ...............................................................................................................................
Common sto ck .............................................................................................................................
Surplus ...................................................................................................................
Undivided p ro fits ..........................................................................................................................
Reserve for contingencies and other capital reserves................................................................
27,438,107
810,6 5 7
2 6 ,6 2 7 ,4 5 0
42,566,408
2,0 9 1 ,8 7 9
4 0 ,4 7 4 ,5 2 9
46,905,046
2 ,9 5 6 ,1 8 0
4 3 ,9 4 8 ,8 6 6
52,367,696
4 ,0 9 2 ,8 2 0
4 8 ,2 7 4 ,8 7 6
57,838,621
4 ,117,351
5 3 ,7 2 1 ,2 7 0
63,287,199
4,259,531
59,02 7 ,6 6 8
41,747
7,886,432
12,893,189
5,113,007
693,075
107,304
11,137,824
18,072,590
10,145,848
1,010,963
91,930
11,811,129
19,895,816
11,135,068
1,014,923
68,924
12,853,653
21,528,422
13,012^32
811,645
65,650
13,846,071
23,593,311
15,361,857
854,381
43,460
14,789,463
25,313,257
17,969,789
911,699
17.2%
18.9
10.0
16.1%
12.4
13.2
15.4%
12.5
14.0
15.2%
11.6
13.3
14.0%
9.9
12.7
13.8%
9.1
12.2
51.2
2.6
7.9
54.5
3.8
7.4
54.4
3.8
7.3
56.2
3.7
7.1
59.3
4.0
7.0
59.8
5.2
7.0
O f total assets other than cash and U.S. Treasury securities:
T o ta l cap ita l a c c o u n ts ......................................................................................................................................
12.1
10.0
9.8
9.4
8.8
8.7
N u m b e r o f banks .....................................................................................................................................................
13,493
13,511
13,612
13,733
PERCENTAGES
O f total assets:
Cash and balances w ith o th e r b a n k s .............................................................................
U.S. T reasury securities and securities o f o th e r U.S. G o vernm ent agencies and c o rp o ra tio n s . .
O th e r s e c u ritie s ..........................................................
Loans (in c lu d in g Federal fu n d s sold and securities purchased under
agreem ents to r e s e ll) ............................................................................................................................
O th e r a sse ts..........................................................................................................................................................
T o ta l cap ita l a c c o u n ts ....................................................................................................................................
13,976
OF BANKS
6,299,150
5,9 9 8 ,6 8 9
115,601
184,860
LIABILITIES
3,552,676
3 ,5 5 2 ,6 7 6
ASSETS AND
Reserves on loans and s e c u ritie s-to ta l...............................................................................
Reserves fo r bad d e b t losses on l o a n s ...................................................................................................
O th e r reserves on loans3 .....................................................................................................................
Reserves on securities3 .............................................................................................
14,228
1 F o r d e s c rip tio n o f changes in 1969 in th e R e p o rt o f C o n d itio n , see pp. 205-206 and notes to tables.
2 Assets inclu d e " O th e r loans and d is c o u n ts " a t gross (b e fo re d e d u c tio n o f va lu a tio n reserves) value, as repo rte d in 1 9 7 0 -1 9 7 4 .
3 N o t available p rio r to fig u re show n, see n ote 1.
4 P rio r to D ecem ber 31, 1966, "F e d e ra l fu n d s sold (lo a n e d )" n o t reported separately; m ost were included w ith loans to banks; since 1967, includes securities purchased under agreements to resell, w h ic h previously were
rep o rte d w ith " L o a n s to d o m estic co m m e rcia l and fo re ig n b a n k s " and "O th e r loans fo r purchasing o r ca rryin g s e cu ritie s."
5 B efore 1967, loans extended u n d e r c re d it cards and related plans were d is trib u te d am ong o th e r instalm ent loan item s.
6 Includes postal savings deposits, $ 1 9 ,5 3 0 th ousand.
7 P rio r to Decem ber 31, 1966, Federal fu n d s purchased were included in "O th e r lia b ilitie s fo r borrow ed m o n e y "; since 1967, includes securities sold under agreem ents to repurchase w h ic h previously w ere reported w ith "O th e r
lia b ilitie s f o r b o rro w e d m o n e y ."
219
Asset, lia b ility , o r surplus a c c o u n t item
T o ta l a s s e ts ...........................................................................................................................
Dec. 3 1 ,1 9 6 4
Dec. 31, 1970
47,044,18 4 1
68,739,5241
S e c u r itie s - t o ta l............................................................................................................
9,125,108
13,550,8491
U nite d S tates G o v e rn m e n t and agency s e c u r i t ie s - t o t a l .........................
Securities maturing in 1 year or less2........................................................
Securities maturing in 1 to 5 years2..........................................................
Securities maturing in 5 to 10 years'2 .....................................................
Securities maturing after 10 years2 ..........................................................
4,859,671
3 ,8 6 0 ,2 7 6
C orp o ra te s t o c k - t o t a l ........................................................................................
Bank ...................................................................................................................
Other....................................................................................................................
367 ,8 4 6
192,606
2 ,9 0 4 ,7323
7 ,4 1 3 ,7 4 2 s
Loans to dom estic c o m m e rcia l and fo re ig n banks ...................................
Loans to o th e r fin a n c ia l in s titu tio n s .............................................................
Loans to b ro k e rs and dealers in s e c u ritie s .....................................................
O th e r loans fo r purchasing o r c a rryin g s e c u r itie s ......................................
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 lo a n s .......................................................................
Loans to in d iv id u a ls fo r personal e x p e n d itu re s ...........................................
A ll o th e r loans (in c lu d in g o v e rd ra fts ).............................................................
87,650,051
93,012,515
95,589,401
1,273,735
195,679
5 5 1,149
4 4 5 ,3 8 4
81,523
1,520,399
2 1 5 ,3 4 5
568,211
6 2 7 ,5 3 0
1 0 9,313
1,847,776
2 2 6 ,9 0 5
71 1 ,1 7 2
8 1 7 ,4 9 5
9 2 ,2 0 4
2,053,353
26 8 ,1 0 2
68 3,943
1,022,757
78,551
18,491,379
22,636,737
21,871,412
22,684,614
5 ,1 5 6 ,3 2 1 5
6 ,3 8 6 ,0 0 3 5
5 ,9 7 1 ,2 0 0 5
5 ,9 6 7 ,8 3 5 s
867,992
1,823,997
832,859
1,631,473
968,157
1 J 15,014
1,095,116
2,407,716
831,719
1,513,476
789J936
2,836,069
712,274
1,604,165
694,251
2,957,145
37 3 ,8 1 0
9 ,2 9 3 ,5 0 7
1,194,941
85 7 ,3 5 3
11,0 8 6 ,0 0 4
1 ,37 0 ,8 6 2
90 7 ,0 1 3
1 0,0 2 6 ,9 2 0
1 ,713,867
88 2,620
1 0,560,303
1,856,557
2,4 7 2 ,8 0 0
2 ,9 3 6 ,5 1 5
3,2 5 2 ,4 1 2
3 ,4 1 7 ,2 9 9
251,321
1,832,904
288,373
2,184,427
329,426
2,607,089
364,066
2,888,346
348,290
3,069,009
493,536
596,255
1,252,753
964,856
36,442,8261
3 5 ,8 2 3 ,2 8 8
52,753,8 0 8 1
5 0 ,6 9 5 ,6 9 3
56,066,722
5 4 ,2 2 2 ,0 7 7
60,950,481
5 9 ,0 9 4 ,3 3 0
65,870,714
6 3 ,9 4 6 ,5 1 3
67,449,217
6 5 ,3 3 9 ,7 4 8
48,629 5
112,723s
736,386
41,656
1,002,712
51,459
1,090262
51,160
821 2 5 0
49,185
11,527,827 6
10,129,274 6
10,739,893 6
13,563,069
10,884,718
12,089,288
13,532,344
10,923,517
13,031,229
13,388,433
11,413,769
14,804,568
12,828,775
11,728,249
17,087,533
12,052,069
11,501,239
18275,751
3,377,665
1,358,590
6,015,291
6,672,014
1,396,791
7,136,586
7,423,568
1,399,794
8 ,265226
8,767,669
1,523,751
9,416,887
10219,896
1,688,126
10,076,268
10,875,860
4 9 ,6 2 8
3 6 ,4 9 2
5,951
3 ,4 8 5
29,751
2 9,927
28 ,9 2 2
3 ,4 4 6
1,305
2 5 2 ,4 3 8
1,451,401
58,961
13,679
29,473
4,441
18,339
2 6,324
743
930
1,416
175,360
1,812,329
7 4,028
1 6 ,2 2 8 4
9,322
2 5,759
4,807
2,152
156,977
3 9 1,145
13,148
2 8 0 ,9 9 9 4
53,867
16,342
1,838
1,068
58 6,589
1,081,513
3 5 ,8 9 9
1,110
463,001
1,26 0 ,1 4 4
24 ,8 3 4
2,221
1,323
173,322
1,66 5 ,3 6 5
3 4 ,3 7 7
CORPORATION
Secured by residential properties:
Secured by 1 - to 4 -fa m ily residential properties:
Insured by Federal Housing Administration ............................
Guaranteed by Veterans Administration....................................
Not insured or guaranteed by FHA or V A ...............................
Secured by multifamily (5 or more) residential properties:
Insured by Federal Housing Administration ............................
Not insured by F H A .........................................................................
Secured by other properties..................................................................
77,891,927
2,0 8 4 ,2 2 5
99 2 ,8 5 9
Federal fu n d s sold and securities purchased u n d e r agreem ents to resell4 .
O ther l o a n s - t o t a l .......................................................................................................
Real estate l o a n s - t o t a l........................................................................................
Construction loans2........................................................................................
Secured by farmland ......................................................................................
Dec. 31, 1973
INSURANCE
S tate, c o u n ty , and m u n ic ip a l o b lig a tio n s .....................................................
C orp o ra te b o n d s .....................................................................................................
O th e r bonds, notes, and d e b e n tu re s ...............................................................
Dec. 3 1 ,1 9 7 2
DEPOSIT
893,139
138,843
4 7 6 ,6 4 4
22 4,274
5 3,378
Dec. 3 1 ,1 9 7 1
FEDERAL
1,115,656
173,646
53 8 ,8 5 8
3 1 6 ,5 8 4
Cash, balances w ith banks, and c o lle c tio n ite m s - to ta l .................................
C u rre ncy and c o i n ................................................................................................
D em and balances w ith banks in th e U nited S ta te s ....................................
O th e r balances w ith banks in th e U n ite d S ta te s .........................................
Cash item s in process o f c o lle c t io n ..................................................................
220
Table 110. ASSETS A N D L IA B IL IT IE S OF INSURED M U T U A L SAVINGS BANKS IN THE U N ITE D STATES (STATES A N D OTHER A R EAS),
DECEMBER C A LL DATES, 1964, 1 9 7 0 -1 9 7 4
(Amounts in thousands of dollars)
Total loans and securities...................................................................................
Bank prem ises, fu r n itu r e and fix tu re s , and o th e r assets representing bank premises . . .
Real estate ow n e d o th e r th a n b a n k prem ises ............................................................................
Investm ents in subsidiaries n o t c o n s o lid a te d 2 .............................................................................
O th e r assets ...........................................................................................................................................
Total liabilities and surplus accounts
45,358,1601
31 6 ,1 8 9
2 6,709
4 4 9 ,9 8 7
66,304,6571
5 2 8,680
6 2 ,8 0 5
7 2 7,726
75,051,637
84,183,473
88,994,879
91,098,687
59 0,326
90 ,987
4 1 ,5 1 8
84 3 ,7 2 4
6 6 1 ,1 1 8
147,340
59,309
1 ,0 7 8 ,4 1 2
76 0 ,2 8 9
180,671
64,883
1,164 ,0 1 7
85 7 ,8 7 9
2 3 3,775
82,292
1,263,415
.....................................................................................
47,044,184
68,739,524
77,891,927
87,650,051
93,012,515
95,589,401
D e p o s its -t o ta l.................................................................................................................
Savings and tim e d e p o s it s - t o t a l.............................................................................................................
Savings deposits......................................................................................................................................
Deposits accumulated for payment of personal loans ..............................................................
Fixed maturity and other time deposits .......................................................................................
D em and d e p o s i t s - t o t a l ....................................................................................................
42,751,099
62,683,783
6 2 ,0 9 0 ,1 6 8
71,500,831
70,818,051
80,571,993
79,781,381
84,890,128
86,814,415
57,989,110
64
4,100,994
84,008,571
57,644,100
80
13,173,871
60,573,427
25
19,207,929
8 5,904,825
57,591,849
476
26,416,246
56,497,626
295
29,406,904
Total liabilities
................................................................................................
332,851
59 3,615
562,242
1,000,127
2 0,4 0 2
541,840
252,171
74 7 ,9 5 6
43,313,341
63,683,910
6 8 2 ,7 8 0
7 90,6 1 2
88 1,557
909,5 9 0
100,045
875,951
1,114,469
2 2,757
9 8 ,9 8 0
9 9 2 ,7 3 2
1,609,538
26,089
44 5,901
1,1 3 7 ,5 4 8
1,952,443
217,561
667,2 5 6
1,067,626
72,476,827
81,686,462
86,499,666
88,766,858
1
o
o
o
975,9961
M in o rity interest in consolidated subsidiaries2 ...................................................................
3,730,843
674
3 ,7 3 0 ,8 4 3 1
5,055,614
6,068
5 ,0 4 9 ,5 4 6 1
5,415,099
10,456
5 ,4 0 4 ,6 4 3
5,963,589
59,372
5 ,9 0 4 ,2 1 7
6,512,849
114,953
6,3 9 7 ,8 9 6
6,822,543
169,460
6 ,653,083
1.9%
10.3
9.1
1.6%
5.6
14.1
1.7%
6.6
17.1
1.7%
7.3
18.5
2.0%
6.4
17.1
2.1%
6.2
17.5
77.5
1.2
7.9
76.8
1.9
7.4
72.6
2.0
7.0
70.2
2.2
6.8
72.2
2.3
7.0
71.6
2.5
7.1
PERCENTAGES
Of total assets:1
Cash and balances w ith o th e r banks ...........................................................................................................
U.S. G ove rn m e n t and agency s e c u ritie s ...................................................................................................
O th e r s e c u ritie s ...................................................................................................................................................
Loans (in c lu d in g Federal fu n d s sold and securities purchased
u n d e r agreem ents to r e s e ll) ................................................................................................................
O th e r assets ........................................................................................................................................................
T o ta l surplus a c c o u n ts ......................................................................................................................................
O f total assets other than cash and U.S. Governm ent and agency securities:
T o ta l surplus acco u n ts ....................................................................................................................................
9.1
7.9
7.6
7.5
7.6
7.8
N um b e r o f banks .....................................................................................................................................................
327
329
327
3 26
322
320
LIAB! LITIES OF BANKS
Surplus a c c o u n t s - t o t a l ....................................................................................................
Capital notes and d e b e n tu re s ..................................................................................................................
O ther surplus a c c o u n ts ...............................................................................................................................
ASSETS AND
Miscellaneous l ia b ilit ie s - t o t a l..........................................................................................
S ecurities sold u n d e r agreem ents to repurchase..................................................................................
O ther b o r r o w in g s ...................................................................................................................
O ther lia b ilitie s ...........................................................................................................................................
42 ,4 1 8 ,2 4 8
42,374,371
800
1 Figures on loans and on securities have been revised to a gross basis to p rovide c o m p a ra b ility w ith data fo r 1 9 7 1 -1 9 7 4 . See page 206 fo r in fo rm a tio n on changes in re p o rts in 1971.
2 N o t reported separately p rio r to 1971.
3 C orporate bonds in clu d e d w ith o th e r bonds, notes, and debentures p rio r to 1971.
4 Federal fu n d s sold in clu d e d w ith loans to banks p rio r to 1971.
5 Farm ers Hom e A d m in is tra tio n insured notes, p re vio u sly re p o rte d as loans secured by fa rm la n d , included in U.S. G ove rn m e n t and agency securities in 1 9 7 1 -1 9 7 4 .
6 P rio r to 1970, real estate loans secured by m u ltifa m ily residential properties were com bined w ith those secured by 1 - to 4 - f a m i ly residential p roperties.
221
Table 111. PERCENTAGES OF ASSETS A N D L IA B IL IT IE S OF INSURED C O M M ER C IA L BANKS OPERATIN G TH R O U G H O U T 1974 IN
THE U N ITE D STATES (STATES AN D OTHER AR EA S ), DECEMBER 31, 1974
BANKS GROUPED BY AMOUNT OF DEPOSITS
222
Banks w ith deposits o f -
A ll
banks
Less
th a n
$1 m illio n
$1 m illio n
to
$2 m illio n
$2 m illio n
to
$5 m illio n
$5 m illio n
to
$ 1 0 m illio n
$ 1 0 m illio n
to
$ 2 5 m illio n
$ 2 5 m illio n
to
$ 5 0 m illio n
$ 5 0 m illio n
to
$1 0 0 m illio n
$1 0 0 m illio n
to
$5 0 0 m illio n
$ 5 0 0 m illio n
to
$1 b illio n
$1 b illio n
or
m ore
Asset, lia b ility , o r ca pita l a c c o u n t ite m
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
13.8
25.7
3.6
.9
11.9
11.0
23.5
7.4
.8
8.6
10.5
19.3
11.7
.6
6.9
10.3
15.3
14.1
.8
5.6
10.6
12.9
14.8
.9
4.7
11.4
11.6
14.7
1.0
4.3
13.4
9.9
13.0
.9
4 .4
13.9
7.3
11.8
.7
5.6
16.1
5.7
7.3
.4
3.3
O th e r loans and d is c o u n t s - t o t a l ..............................................
Real estate lo a n s - t o t a l..........................................................
Loans to banks and o th e r fin a n c ia l in s t it u t i o n s ..........
Loans to purchase o r c a rry s e c u r itie s ...............................
Loans to farm e rs (e x c lu d in g loans on real e s ta te ) ____
C o m m ercial and in d u s tria l loans ......................................
In s ta lm e n t loans f o r personal e x p e n d itu r e s ..................
S in g le -p a ym e n t loans fo r personal e x p e n d itu re s ..........
A ll o th e r loans (in c lu d in g o v e r d r a fts ) ..............................
5 5.4
14.4
5.0
1.0
2.0
20.2
8.8
2.5
1.5
3 3.8
4.5
.0
.1
13.5
4.3
8.3
1.6
1.5
42.1
9.3
.4
.1
14.7
5.9
8.6
2.7
.4
46 .5
12.6
.3
.2
13.3
7.2
9.5
2.9
.5
48.7
14.9
.3
.2
10.9
8.6
10.2
3.1
.5
51.3
17.6
.3
.3
7.0
10.4
11.8
3.3
.6
52.9
18.5
.5
.3
3.3
13.0
13.1
3.6
.6
53.6
19.1
.8
.4
1.5
15.2
12.6
3.4
.6
54.5
17.9
1.7
1.0
.9
16.9
12.1
2.9
1.1
55.6
16.6
3.3
.7
.8
19.5
9.6
3.4
1.7
58.2
10.3
9 .5
1.6
.6
27.1
5.3
1.6
2.2
...................................................................................
6.0
.8
2.0
2.2
2.3
2.6
3.2
3.4
3.9
5.1
9.0
T o ta l lia b ilitie s , reserves, and c a p ita l a c c o u n t s .........................
10 0 .0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100 .0
1 00.0
O th e r assets
..............................................................................
81.9
8 2.8
86.2
88.0
88.7
88.7
87.7
86.8
84.3
80.6
77.1
D e m a n d ..............................................................................
Tim e ......................................................................................
34.5
47.4
61.3
21.5
49.1
37.1
38.2
49.8
35.7
53.0
34.3
54.4
33.7
54.0
33.5
53.3
35.0
49.3
35.4
45.2
34.3
42.8
In d iv id u a ls , p artn e rsh ips, and c o rp o ra tio n s -d e m a n d .
In d iv id u a ls , pa rtn ersh ip s, and c o r p o r a tio n s - tim e . . . .
U.S. G o v e r n m e n t....................................................................
S tates and s u b d iv is io n s ..........................................................
D om estic in te rb a n k ..................................................................
Foreign go ve rn m e n t and b a n k ...........................................
O th e r d e p o s its .........................................................................
26.0
3 9 .4
.6
7.6
5.7
1.5
1.1
54.8
17.1
.5
9.9
.1
.0
.4
43.1
32.7
.5
8.9
.4
.0
.6
32.7
4 4.7
.8
8.8
.3
30.1
47.9
1.0
8.7
.2
28.7
4 8 .8
1.2
8.9
.3
28.2
47.9
1.2
9.0
.5
27.6
4 5.6
.8
10.2
1.6
( 5)
(5)
( 5)
(5)
( 5)
.7
.8
.8
.9
1.0
2 7.5
41 .6
.6
9.8
3.7
.1
1.0
27.2
3 7.6
.4
9.5
5.0
.1
.8
2 3.5
3 3.4
.3
5.1
10.0
3.4
1.4
Federal fu n d s purchased (b o rro w e d )3 ...................................
O th e r lia b ilitie s f o r b o rro w e d m o n e y ......................................
O th e r lia b ilitie s 4 ..............................................................................
Reserves on loans and s e c u ritie s ................................................
C apital notes and d e b e n tu re s .....................................................
O th e r c a p ita l a c c o u n ts .................................................................
5.6
.5
4.1
.9
.5
6.5
.0
.0
1.1
.2
.0
15.9
.0
12.2
.1
.1
1.5
.5
.1
9.7
.3
.1
1.7
.6
.1
8.5
.4
.1
2.2
.8
.2
7.6
1.0
.1
2.8
.8
.3
7.3
2.0
.2
2.8
.8
.4
7.0
4.6
.2
2.7
.9
.5
6.8
7.6
.6
3.3
.9
.6
6.4
8.7
.9
5.9
1.1
.6
5.7
1 3,863
29
260
2,103
3 ,160
4 ,627
1,942
931
634
93
84
D e p o s its - to ta l
(5)
1.1
.5
(5)
1 S ecurities held in tra d in g accounts are in c lu d e d in " O th e r assets."
i n c lu d e s securities purchased u n d e r agreem ents to resell,
i n c lu d e s securities sold u n d e r agreem ents to repurchase.
4 In cludes m in o rity in te re st in con so lid a te d subsidiaries.
5 Less th a n 0 .0 5 percent.
N o te : F o r in co m e and expense data b y size o f bank, see tables 117 and 118. Assets and lia b ilitie s (in $ 0 0 0 ) o f all com m ercial banks b y size o f bank are c o n ta in e d i n Assets and
Banks
(w ith 1 974 re p o rt o f inco m e ), Decem ber 31, 1974.
Liabilities-Commercial and Mutual Savings
INSURANCE CORPORATION
100.0%
14.8
28.3
1.4
1.8
19.1
DEPOSIT
100.0%
1 3.8
9.1
10.7
.7
4.3
FEDERAL
100.0%
Cash and due fr o m banks ..........................................................
U.S. T reasury and agency se cu ritie s1 ......................................
O b lig a tio n s o f States and p o litic a l s u b d iv is io n s ..................
O th e r s e c u ritie s ..............................................................................
Federal fu n d s sold (lo a n e d )2 .....................................................
T o ta l a s s e ts .............................................................................................
Table 112. PERCENTAGES OF ASSETS AN D LI ABI LITIES OF INSURED M U T U A L SAVINGS BAN KS OPE RATI NG TH R O U G H O U T 1974 IN
THE U N ITED STATES (STATES A N D OTHER A R EA S ), DECEMBER 31, 1974
BANKS GROUPED BY AMOUNT OF DEPOSITS
Banks w ith deposits o f Asset, lia b ility , o r s u rplu s a c c o u n t item
A ll
banks1
$5 m illio n
to
$10 m illio n
$ 1 0 m illio n
to
$ 25 m illio n
$ 2 5 m illio n
to
$ 50 m illio n
$ 5 0 m illio n
to
$1 0 0 m illio n
$ 1 0 0 m illio n
to
$ 5 0 0 m illio n
$ 5 0 0 m illio n
to
$1 b illio n
$1 b illio n
or
more
T o ta l a s s e ts .....................................................................................................
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
5.5
9.4
7.2
.9
6.8
2.4
6.8
9.6
.8
5.3
1.7
5.6
6.8
.8
6.0
2.2
7.4
8.3
.7
5.4
2.0
7.6
8.6
.8
6.0
2.5
6.4
10.3
.8
5.6
2.0
5.2
13.6
1.1
5.1
1.0
3.5
2.5
2.1
2.2
1.5
.9
.6
O th e r loans and d is c o u n t s .................................................................
Real estate lo a n s - t o t a l.........................................................................
Construction lo an s .........................................................................
Secured by farmland .......................................................................
70.6
68.4
64.7
59.6
71.0
66.1
74.9
70.0
71.6
68.1
71.0
68.4
70.9
68 .8
69.7
68.1
1.1
1.2
.1
.9
.1
1:5
.3
.6
.6
.9
.3
1.0
.2
Secured by residential properties:
Insured by F H A .........................................................................
Guaranteed by I/A ....................................................................
Not insured or guaranteed by FHA or V A .......................
Secured by other properties .......................................................
14.4
12.0
29.7
11.4
4.1
2.4
43.7
7.7
2.7
4.9
48.7
8.7
5.1
5.2
51.2
7.3
7.4
7.1
45.3
7.1
11.9
10.5
36.7
8.1
15.2
11.4
30.2
10.6
C om m ercial and in d u s tria l lo a n s .......................................................
Loans to in d iv id u a ls fo r personal e x p e n d itu re s ............................
A ll o th e r loans in c lu d in g o v e r d r a fts ................................................
.2
1.9
.1
1.1
3.9
.1
.3
4.3
.3
.2
4.4
.3
.3
3.0
.2
.2
2.4
.1
.2
1.8
.1
(2)
.5
(2)
17.1
14.5
21.3
14.7
.2
1.3
.1
O th e r a s s e ts .............................................................................................
2.5
1.9
1.7
2.2
2.2
2.4
2.7
2.6
T o ta l lia b ilitie s and surplus a c c o u n ts .....................................................
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
D e p o s its - to ta l........................................................................................
Savings d e p o s its ..............................................................................
Deposits a ccum ulated fo r p a y m e n t o f personal loans . . . .
Fixe d m a tu rity and o th e r tim e d e p o s its .................................
Dem and deposits ............................................................................
90.8
59.1
(2)
30.8
1.0
90.4
60.3
(2)
29.6
.4
91.3
65.7
(2)
24.9
.7
91.1
62.9
(2)
27.5
.6
90.7
61.7
(2)
28.3
.8
91.2
61.5
(2)
28.6
1.1
90 .4
59.2
(2)
30.3
.9
90.8
56.9
(2)
33.0
.9
2.0
1.1
.6
1.1
1.6
1.5
2.4
2.4
7.1
.2
7.0
8.5
.4
8.1
8.0
.4
7.6
7.8
.3
7.5
7.7
.2
7.5
7.3
.2
7.1
7.3
.2
7.1
6.9
.2
6.7
N u m b e r o f b a n k s ...........................................................................................
320
11
22
71
62
103
29
22
1 D o lla r am o u n ts o f assets and lia b ilitie s o f all m u tu a l savings banks are shown in
2 Z ero o r less than 0.0 5 percent.
Assets and Liabilities-Commercial and Mutual Savings Banks
(w ith 1974 re p o rt o f incom e), D ecem ber 31, 1974.
223
M iscellaneous l i a b i l i t i e s .......................................................................
S urplus a c c o u n t s ...................................................................................
C apital notes and d e b e n tu r e s .....................................................
O th e r surplus a c c o u n ts ..................................................................
LIABI LITIES OF BANKS
100.0%
2.1
6.2
11.0
.9
5.5
ASSETS AND
100.0%
Cash and due fro m b a n k s ....................................................................
U n ite d S tates G o v e rn m e n t and agency s e c u r itie s .......................
C orp o ra te b o n d s ......................................................................................
S tate, c o u n ty and m u n ic ip a l o b lig a tio n s ........................................
O th e r s e c u r itie s ......................................................................................
Federal fu n d s sold and securities purchased u n d e r
agreem ents to re s e ll.........................................................................
224
Table 113. D IS TR IB U TIO N OF INSURED C O M M ERCIAL BANKS IN THE U N ITE D STATES (STATES A N D OTHER AR EA S ),
DECEMBER 31, 1974
BANKS GROUPED AC CO RD IN G TO AM O U N T OF DEPOSITS AN D BY RATIOS OF SELECTED ITEMS TO ASSETS OR DEPOSITS
4 5 to 4 9 .9 9 .................................................................................
50 o r m o r e .................................................................................
$25 m illio n
to
$ 50 m illio n
$1 m illio n
to
$2 m illio n
1,045
396
460
8 25
1,156
1,645
1,970
1,918
1,638
1,209
1,285
643
48
3
1
5
0
1
1
1
0
0
1
0
169
45
43
29
15
10
12
9
7
4
4
4
455
197
207
279
244
238
201
127
103
86
65
49
247
80
113
225
312
405
493
415
315
191
255
149
104
50
62
188
354
560
675
697
622
509
552
263
19
12
25
47
105
195
297
339
311
234
246
118
4,1 9 9
4 ,6 1 6
2,641
1,240
6 35
371
213
110
64
49
52
25
10
6
6
0
4
6
0
1
0
3
76
81
65
41
25
21
12
11
7
7
5
459
537
469
293
191
113
72
41
27
20
29
807
909
681
3 58
206
118
63
27
11
11
9
1,373
1,616
906
387
161
95
43
26
14
10
5
669
774
329
107
39
11
13
2
2
1
1
$2 m illio n
to
$5 m illio n
$5 m illio n
to
$ 10 m illio n
$10 0 m illio n
to
$ 500 m illio n
$ 5 0 0 m illio n
to
$1 b illio n
$1 b illio n
or
m ore
3
4
4
22
51
103
136
175
169
109
113
43
0
5
5
20
39
91
122
125
98
69
45
15
0
0
0
3
14
22
15
17
10
7
3
2
0
0
0
7
22
20
18
13
3
0
1
0
369
388
118
34
9
9
2
2
1
0
0
302
252
59
13
4
0
2
1
1
0
0
54
33
6
0
0
0
0
0
0
0
0
65
16
2
1
0
0
0
0
0
0
0
$50 m illio n
to
$ 1 0 0 m illio n
INSURANCE CORPORATION
R atios o f U.S. T re asu ry secu ritie s to to ta l assets o f Less tha n 5 .................................................................................
5 to 9 . 9 9 ......................................................................................
10 to 1 4 .9 9 .................................................................................
15 to 1 9 .9 9 .................................................................................
20 to 24.99 .................................................................................
25 to 29.99 .................................................................................
30 to 3 4 .9 9 .................................................................................
3 5 to 39 .9 9 .................................................................................
$ 10 m illio n
to
$25 m illio n
I ess
t^ n
$1 m illio n
DEPOSIT
R atios o f o b lig a tio n s o f States and s u b divisions to
to ta l assets o f Z e r o .............................................................................................
M ore tha n 0.0 b u t less tha n 1.0 ........................................
1.0 to 2 . 4 9 .................................................................................
2.5 to 4 . 9 9 .................................................................................
5.0 to 7 . 4 9 .................................................................................
7 .5 to 9 . 9 9 .................................................................................
10.0 to 1 2 . 4 9 ............................................................................
12.5 to 1 4 . 9 9 ............................................................................
15.0 to 1 7 . 4 9 ............................................................................
17.5 to 1 9 . 9 9 ............................................................................
2 0.0 to 2 4 .9 9 ............................................................................
2 5.0 or m ore ............................................................................
A ll
banks
FEDERAL
N um ber o f banks w ith deposits o f Ratios
(In p erce nt)
7
3
2
3
0
3
4
5
8
7
7
5
7
9
11
8
15
25
33
30
26
39
53
39
31
32
28
20
50
91
127
196
256
282
331
326
254
148
142
12
21
61
104
187
263
399
406
508
478
3 78
241
142
6
22
45
83
163
3 14
517
717
826
887
634
306
116
2
4
10
34
35
93
198
321
412
437
2 84
88
30
1
3
2
9
16
51
93
122
205
240
127
50
13
3
0
2
2
8
25
44
94
141
177
112
19
7
0
0
0
0
1
1
4
9
18
37
15
6
2
0
0
0
0
0
1
1
9
23
29
16
5
0
R atios o f cash and due fr o m banks to to ta l assets o f Less th a n 5 .................................................................................
5.0 to 7 . 4 9 .................................................................................
7.5 to 9 . 9 9 .................................................................................
10.0 to 1 2 . 4 9 ............................................................................
12.5 to 1 4 . 9 9 ............................................................................
15.0 to 17.49 ............................................................................
17.5 to 1 9 . 9 9 ............................................................................
20.0 to 2 4.99 ............................................................................
25.0 to 2 9.99 ............................................................................
30 .0 o r m ore ............................................................................
837
3,155
3,649
2,601
1,555
911
567
518
201
196
6
6
8
9
6
6
5
5
5
5
12
58
67
57
39
30
18
31
17
22
167
514
521
3 86
216
140
93
101
51
62
220
8 20
827
530
314
171
113
113
44
48
270
1,146
1,280
839
503
251
143
130
38
36
87
410
550
412
211
128
72
49
22
7
55
144
234
205
115
85
48
31
6
9
19
49
145
129
106
71
53
42
14
6
1
8
13
15
23
9
12
10
2
0
0
0
4
19
22
20
10
6
2
1
R atios o f to ta l dem and deposits to to ta l deposits o f Less th a n 2 5 ..............................................................................
25 to 29.99 .................................................................................
30 to 3 4 .9 9 .................................................................................
35 to 39 .9 9 .................................................................................
40 to 4 4 .9 9 .................................................................................
4 5 to 4 9 .9 9 .................................................................................
50 to 54.99 .................................................................................
55 to 5 9.99 .................................................................................
60 to 6 4 .9 9 .................................................................................
65 to 6 9 .9 9 .................................................................................
70 to 79.99 .................................................................................
80 to 89 .9 9 ................................................................................
90 o r m o r e .................................................................................
1,000
1,649
2 ,387
2,566
2,286
1,715
1,051
636
332
197
162
62
147
3
0
1
4
5
8
5
8
7
2
3
3
12
6
13
32
31
50
44
30
34
30
14
19
12
36
122
193
306
373
353
286
204
137
82
58
55
19
63
231
3 74
553
583
531
3 60
228
142
74
44
37
15
28
372
611
845
876
714
548
337
165
78
48
32
8
2
146
261
3 72
3 86
317
228
119
71
26
13
6
1
2
78
127
165
180
162
103
54
30
13
11
6
1
2
39
62
96
111
117
99
53
29
15
5
3
3
2
3
5
11
11
17
22
11
8
3
1
1
0
0
0
3
6
11
20
17
10
12
4
1
0
0
0
225
LIABI LITIES OF BANKS
68
84
180
341
562
980
1,546
1,991
2,511
2,671
1,866
899
491
ASSETS AND
R atios o f loans to to ta l assets o f Less th a n 2 0 ..............................................................................
20 to 2 4 .0 9 .................................................................................
2 5 to 2 9.9 9 .................................................................................
30 to 3 4 .9 9 .................................................................................
35 to 3 9 .9 9 .................................................................................
4 0 to 4 4 .9 9 .................................................................................
45 to 4 9 .9 9 .................................................................................
50 to 5 4.99 .................................................................................
55 to 59.99 .................................................................................
60 to 64.9 9 .................................................................................
65 to 6 9 .9 9 .................................................................................
70 to 74.99 .................................................................................
75 o r m o r e .................................................................................
226
Table 113. DISTRIBUTION OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
D E C EM BE R 3 1, 1 9 7 4 -C O N T IN U E D
BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS AND BY RATIOS OF SELECTED ITEMS TO ASSETS OR DEPOSITS
N um ber o f banks w ith deposits o f Ratios
(In pe rc e n t)
A ll
banks
$1 m illio n
to
$2 m illio n
$2 m illio n
to
$5 m illio n
$5 m illio n
to
$10 m illio n
$10 m illio n
to
$25 m illio n
$25 m illio n
to
$ 5 0 m illio n
$5 0 m illio n
to
$ 1 0 0 m illio n
$10 0 m illio n
to
$5 0 0 m illio n
$ 5 0 0 m illio n
to
$1 b illio n
$1 b illio n
or
m ore
2
7
36
47
34
19
26
22
30
23
22
83
28
311
533
390
274
174
130
76
122
70
44
99
98
881
973
555
293
155
90
47
59
28
8
13
353
1,915
1,472
535
206
79
38
14
13
7
2
2
179
963
568
158
42
19
3
10
2
3
1
0
132
482
239
54
16
3
4
1
1
0
0
0
76
359
153
29
11
3
0
1
0
0
0
2
21
53
14
5
0
0
0
0
0
0
0
0
26
49
8
1
0
0
0
0
0
0
0
0
R atios o f to ta l ca p ita l acco u n ts to to ta l assets o f Less th a n 5 .................................................................................
5 to 5 . 9 9 ......................................................................................
6 to 6 . 9 9 ......................................................................................
7 to 7 . 9 9 ......................................................................................
8 to 8 . 9 9 ......................................................................................
9 to 9 . 9 9 ......................................................................................
10 to 1 0 .9 9 .................................................................................
11 to 1 1 .9 9 .................................................................................
12 to 1 2 .9 9 .................................................................................
13 to 1 4 .9 9 .................................................................................
15 to 1 6 .9 9 .................................................................................
17 o r m o r e .................................................................................
239
1,261
2,9 7 3
3 ,5 3 7
2 ,4 7 4
1,327
742
456
271
290
137
483
0
0
0
1
2
3
1
1
2
4
7
40
1
3
9
25
37
35
26
30
25
26
15
119
8
95
300
4 14
332
276
184
128
103
120
58
233
26
236
597
758
595
353
220
145
79
83
39
69
92
475
1,083
1,259
9 02
4 10
207
100
42
37
14
15
57
179
489
565
367
159
66
38
5
17
0
6
31
140
237
292
134
48
25
9
9
3
3
1
16
91
201
179
87
39
11
3
6
0
1
0
1
21
27
27
11
3
2
1
0
0
0
0
7
21
30
17
7
1
0
1
0
0
0
0
N um b e r o f b a n k s ............................................................................
1 4,190
61
351
2,251
3,200
4,6 3 6
1,948
9 32
634
93
84
CORPORATION
0
1
1
2
1
3
3
2
3
4
5
36
INSURANCE
915
5,021
3 ,9 9 7
1,776
877
455
294
173
230
135
82
235
DEPOSIT
Ratios o f to ta l c a p ita l a c c o u n ts to to ta l assets o th e r th a n
cash and due fr o m b anks, and U.S. T rea su ry
securities, and U.S. G ov e rn m e n t agency securities
o fLess th a n 7 . 5 ..............................................................................
7.5 to 9 . 9 9 .................................................................................
10.0 to 1 2 .4 9 ..............................................................................
12.5 to 1 4 . 9 9 ............................................................................
15.0 to 1 7 . 4 9 ............................................................................
17.5 to 1 9 . 9 9 ............................................................................
20.0 to 22 .4 9 ............................................................................
22.5 to 24 .9 9 ............................................................................
25.0 to 29 .9 9 ............................................................................
3 0 .0 to 3 4 .9 9 ............................................................................
35 .0 to 3 9 .9 9 ............................................................................
4 0 .0 o r m ore ............................................................................
FEDERAL
Less
than
$1 m illio n
INCOME OF INSURED BANKS
Table 114.
Table 115.
Table 116.
Income of insured commercial banks in the United States (States and other areas), 1966-1974
Ratios of income of insured commercial banks in the United States (States and other areas),
1966-1974
Income of insured commercial banks in the United States (States and other areas), 1974
Banks grouped by class o f bank
Table 118.
Ratios of income of insured commercial banks operating throughout 1974 in the United States
(States and other areas)
Table 119.
Income of insured mutual savings banks in. the United States (States and other areas),
1970-1974
Ratios of income of insured mutual savings banks in the United States (States and other areas),
1970-1974
Banks grouped by amount of deposits
Banks grouped according to amount of deposits
Table 120.
OF INSURED
Income of insured commercial banks operating throughout 1974 in the United States (States
and other areas)
INCOME
Table 117.
BANKS
T h e in c o m e data received and pu b lish e d b y th e C o rp o ra tio n relate to
c o m m e rcia l and m u tu a l savings banks insured b y th e C o rp o ra tio n .
Com m ercial banks
227
P rio r to 1 9 6 9 , re p o rts o f in c o m e and dividend s were s u b m itte d to th e
Federal su p e rv is o ry agencies o n e ith e r a cash o r an accrual basis. In 1969,
banks w ith assets o f $ 5 0 m illio n o r m o re, and beginning in 1970, $25 m illio n
o r m o re , w ere re q u ire d to re p o rt c o n s o lid a te d incom e accounts on an accrual
basis. S m a lle r banks c o n tin u e to have th e o p tio n o f s u b m ittin g th e ir re ports
on a cash o r an accrual basis, e xce p t th a t unearned d is c o u n t on in sta lm e n t
loans, and in co m e taxes, m u st be re p o rte d on an accrual basis. Then, there
was the re q u ire m e n t fo r c o n s o lid a tio n o f m a jo rity -o w n e d subsidiaries and
o th e r n o n -b a n k subsidiaries m e eting certain tests. F o r m ore detail on the
m e th o d o f cash o r accrual re p o rtin g b y banks, and on th e in clu sio n o f
subsidiaries in c o n so lid a te d statem ents o f c o n d itio n and incom e, re fer to
page 2 0 5 o f th is re p o rt.
Inco m e data are in clu d e d fo r all insured banks o p e ra tin g a t the end o f the
respective years, unless in d ica te d oth erw ise. In a d d itio n , w hen a p p ro p ria te ,
ad ju stm en ts have been made fo r banks in o p e ra tio n d u rin g p a rt o f the year
b u t n o t at the end o f the year.
Mutual savings banks
FEDERAL
INSURANCE
C O R P O R A T IO N
F o r a discussion o f th e re p o rt o f inco m e and expenses fo r m u tu a l savings
banks in 19 70 and previous years, see the 1951 A nnu al R e p o rt, pp . 50 -52.
B eginning Decem ber 3 1 , 19 71, inco m e and expenses fo r m u tu a l savings
banks are re p o rte d on a c o n so lid a te d basis in th e same m anner as re quired o f
com m ercial banks, in c lu d in g all do m e stic branches, do m e stic b a n k premises
subsidiaries, and o th e r s ig n ific a n t n o n b a n k in g do m e stic subsidiaries (see page
20 6).
B eginning in 19 7 2 , banks w ith to ta l resources o f $ 2 5 m illio n o r m o re are
re quired to prepare th e ir re ports on th e basis o f accrual a c co u n tin g . A ll
banks are re q u ire d to re p o rt incom e taxes on an accrual basis.
U nde r o p e ra tin g incom e, c e rta in in co m e fro m securities fo r m e r ly in the
" o t h e r " cate gory are sho w n separately be gin n in g in 1971. Incom e fro m U.S.
Treasury secu ritie s is co m b in e d w ith incom e fro m U.S. G o ve rn m e n t agency
and c o rp o ra tio n securities. S om e w h at fe w e r item s are d e ta ile d u n der o p e r
ating expense. B eginning in 19 71, actual net loan losses (charge-offs less
recoveries) are in clu d e d as an expense ite m in the op e ra tin g section o f the
re p o rt (see discussion b e lo w ). In 1970 and p r io r years (table 1 1 9 ), the
am ounts sh o w n fo r this expense ite m are "R eco veries cre d ite d to v a lu a tio n
ad ju stm e n t p rovision s on real estate m ortgage lo a n s " less "T h e realized losses
charged to va lu a tio n a d ju s tm e n t p rovision s on these lo a n s ," w h ic h were
re p o rte d in those years in th e m em ora nda section .
The n o n o p e ra tin g sections o f the re p o rt were condensed in 1971, w ith
realized gains and losses on securities, m ortgage loans, and real estate re
p o rte d " n e t " ra ther tha n in separate sections and cap tio ns as be fore . De
ta ile d data fo rm e rly re p o rte d on re c o n c ile m e n t o f v a lu a tio n a d ju s tm e n t p ro
visions was a lm o st e n tire ly e lim in a te d , e x c e p t fo r a sim ple re c o n c ilia tio n o f
surplus.
DEPOSIT
stated, com pare d w ith th e c u rre n t o p e ra tin g incom e o f p rio r re ports. On the
o th e r hand, " N e t in c o m e " fo r years p r io r to 1969 ten ds to be som ew hat
understated because it includes transfers to bad d e b t reserves w h ic h w o u ld
generally exceed th e p ro visio n fo r loan losses. Table 115 provides several
op e ra tin g ra tio s w h ic h a ffo rd com parison s betw een years p r io r to 1969 and
m ore re ce n t earnings experience.
228
In 1 9 6 9 th e R e p o rt o f Inco m e was revised to in c lu d e a m ore de tailed
b re a k d o w n o f in v e s tm e n t inco m e and s e p aratio n o f incom e fro m Federal
fun ds tra n s a c tio n s fro m o th e r loan incom e. The a c c re tio n o f bo nd d is c o u n t
was encouraged.
U n d e r "O p e ra tin g exp enses," expense o f Federal Funds tra nsactions,
w h ic h is n o w ite m iz e d sep arately, was in c lu d e d p r io r to 19 69 un der " I n t e r
est on b o rro w e d m o n e y ." "In te re s t on c a p ita l notes and de b e n tu re s," now
in c lu d e d in o p e ra tin g expenses, b e fo re 1 9 69 was n o t tre a te d as a charge
against o p e ra tin g earnings o r net inco m e . F ix e d assets were re quired to be
carried on a co st less d e p re c ia tio n basis w ith p e rio d ic d e p re c ia tio n charged to
expenses. B eginning in 19 6 9 , the ite m "P ro v is io n fo r loan losses" was in
clu d e d u n der o p e ra tin g expenses. P rio r to 19 6 9 , transfers to loan loss re
serves w ere in c lu d e d as a charge against ne t in c o m e (b u t n o t against o p e r
a tin g in c o m e ); actual losses charged to loan loss reserves were tre ated as a
m e m o ra n d u m ite m (see discussion b e lo w ).
B eginn ing in 19 6 9 , "A p p lic a b le in c o m e ta x e s " on incom e be fore secur
ities gains o r losses is an estim a te o f th e ta x lia b ility th a t a bank w o u ld in c u r
if its taxes w ere based s o le ly on o p e ra tin g in c o m e and expenses; th a t is, if
the re w ere no s e c u rity gains o r losses, no e x tra o rd in a ry item s, etc.
In co m e fro m securities gains and losses, re p o rte d b o th gross and a fte r
taxes, p r io r to 1 9 69 was re p o rte d as separate gain o r loss item s. It is now
in c lu d e d , alon g w ith a s u b tra c tio n fo r m in o r ity in te re s t in con solida ted sub
sidiaries, b e fo re a rriv in g a t ne t in c o m e (a fte r taxes).
T he m e m o ra n d u m ite m to ta l p ro v is io n fo r inco m e taxes includes a p p li
cable taxes on o p e ra tin g inco m e , a p p lic a b le taxes on securities gains and
losses and e x tra o rd in a ry item s, and ta x e ffe cts on difference s betw een th e
p ro v is io n fo r loan losses charged to o p e ra tin g expense and transfers to the
reserve fo r bad d e b t losses on loans. F o r banks ge nera lly th e transfers to
reserve fo r bad de bts have exceeded th e p ro v is io n fo r loan losses and c o n
se q u e n tly have te n d e d to reduce ta x lia b ility . (S ince en actm e nt o f the Tax
R e fo rm A c t o f 1 9 6 9 , a d d itio n s to loan loss reserves fo r Federal ta x purposes
have been s u b je c t to a schedule o f lim ita tio n s th a t w ill e v e n tu a lly p u t these
reserves on a c u rre n t exp erience basis.)
In co m p a rin g th e 1 9 6 9 -1 9 7 4 re p o rts w ith p r io r data, certain generaliza
tio n s are a p p lic a b le . Because o f th e in c lu s io n o f a d d itio n a l item s in "O p e r
atin g expenses," "In c o m e b e fo re taxes o r s e c u rity gains o r losses" is u n d e r
Sources o f data
N a tio n a l banks and S ta te banks in th e D is tric t o f C o lu m b ia n o t m em bers
o f th e Federal Reserve S yste m : O ffic e o f th e C o m p tro lle r o f th e C u rre n cy.
S tate b a n k m em bers o f th e Federal Reserve S ystem : Board o f G overnors
o f th e Federal Reserve S ystem .
O th e r insured banks: Federal D e p o s it Insurance C o rp o ra tio n .
R E P O R T IN G O F L O S S E S A N D R E S E R V E S F O R LO S S E S O N L O A N S ,
1948 - 1974
Mutual savings banks
BANKS
229
W hile m u tu a l savings banks re p o rte d loan losses and transfers to loss
reserves p rio r to 19 51, th e C o rp o ra tio n 's p u blishe d sta tistics d id n o t show
these data sep arately, as was th e case also f o r recoveries and transfers fro m
reserves. W hen th e re p o rtin g fo r m was revised e xte n sive ly in 19 51, these
various n o n o p e ra tin g expenses w ere ite m ize d , and a m em oranda section was
added to sho w also th e losses and recoveries in reserve accounts. "R e a liz e d "
losses (and recoveries) fo r w h ic h no p ro visio n had been made, and transfers
w ere in clu d e d in th e n o n o p e ra tin g expense (in co m e ) section , w h ile d ire c t
w rite -d o w n s and o th e r loan losses fo r w h ic h p ro v is io n had been made, were
re p o rte d separately in m e m ora nda acco unt.
F o llo w in g 19 51, th e loan loss section o f th e re ports o f c o n d itio n and
incom e and expense rem ained unchanged u n til 1971. B eginning in 19 7 1 , th e
inco m e re p o rt was revised in a m a nner s im ila r to changes in 1969 ap plicab le
to co m m e rcia l banks, to sho w actu al net loan losses as op e ra tin g expenses
(m u tu a l savings banks d o n o t have th e o p tio n available to com m ercial banks
o f re p o rtin g losses based on re cent years average experience.) A t th e same
tim e , all v a lu a tio n reserves w ere merged in to surplus accounts on statem ents
o f c o n d itio n s u b m itte d to th e Federal sup ervisory agencies.
INSURED
OF
Use o f th e reserve m e th o d o f loan acco u n tin g was g re a tly encouraged
w h e n , in 1 9 4 7 , th e In te rn a l R evenue Service set fo rm a l standards fo r loan
loss tra nsfers to be p e rm itte d fo r Federal ta x purposes. In th e ir re p o rts to
th e Federal b a n k s u p e rv is o ry agencies p r io r to 19 48, insured com m ercial
banks in c lu d e d in n o n -o p e ra tin g in c o m e th e am ounts o f recoveries on loans
(a p p lica b le to p r io r cha rg e -o ffs fo r losses) w h ic h included , fo r banks using
th e reserve m e th o d , tra nsfers fro m loan loss reserves. D ire c t charge-offs and
losses on loans, and tra nsfers to reserves were included tog e th e r in n o n
o p e ra tin g expenses. Banks using th e reserve m e th o d w ere n o t re quired to
re p o rt separately th e ir ac tu a l losses, th a t is, charges against loan loss reserves.
(In statem en ts o f c o n d itio n p r io r to 19 4 8 , insured banks re ported loans on a
net basis o n ly , a fte r a llo w a n c e fo r loan loss reserves. B eginning w ith th e June
30, 19 48 re p o rt, banks w ere re q u ire d to re p o rt gross loans, w ith to ta l valua
tio n reserves these set u p p u rs u a n t to In te rn a l Revenue Service re gulations,
and o th e r reserves s h o w n sep arately. H ow ever, in s ta lm e n t loans o rd in a rily
c o n tin u e d to be re p o rte d n e t if th e in s ta lm e n t pa ym ents were applied d ire c t
ly to th e re d u c tio n o f th e loan .)
B eginning w ith th e yea r 19 48, th e incom e reports were revised to show
sep arately, in a m e m o ra n d a s e c tio n , th e losses charged to reserves. These
item s c o n tin u e d to be c o m b in e d in th e n o n -op era tin g expense section u n til
1961. Recoveries c re d ite d to reserves w ere also item ized in th e m em oranda
se ctio n , be g in n in g in 1 9 4 8 , as w ere th e am ounts tra nsferred to and fro m
INCOME
Com m ercial banks
reserves d u rin g th e year. Each o f these d e b its and cre dits w ere segregated as
to reserves set up pu rsuan t to IRS re gulations, and o th e r reserves. Losses and
recoveries, and tra nsfers to and fro m reserves, b u t n o t th e spe cific ta x-re la te d
transfers, w ere separately re p o rte d in th e C o rp o ra tio n 's p u blishe d statistics.
Several im p o rta n t revisions w ere made in th e fo rm a t o f the incom e re
p o rts o f co m m e rcia l banks in 1969 (see above). A new e n try e n title d " P ro
visio n fo r loan losses" was in clu d e d u n der o p e ra tin g expenses. T h is item
includes actual loan losses (charge-offs less recoveries) d u rin g the year or, at
th e o p tio n o f th e ba nk, an a m o u n t de rived b y a p p ly in g th e average loan loss
percentage fo r th e fiv e m ost recent years to th e average a m o u n t o f loans
d u rin g th e c u rre n t year. Since 19 69, banks c o n tin u e to re p o rt transfers to
and fro m reserves in m em oranda section o f th e in co m e statem en t, b u t th is
d e ta ile d in fo r m a tio n is n o t re g u la rly publishe d b y th e C o rp o ra tio n . (B egin
ning June 30, 19 69, all loan loss reserves are s h o w n on th e rig h t side o f th e
c o n d itio n s ta te m e n t; gross loans o n ly are re p o rte d o n th e assets side.)
230
Table 114. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1966-1974
(A m o u n ts in thousands o f dollars)
In c o m e item
1966
O perating i n c o m e - t o t a l...........................................................................
Interest and fees on lo a n s2 ..................................................................
In com e on Federal fu n d s sold and securities p urchased under
1967
1968
19691
1971
19 7 0
1974
19 7 3
1972
21,781,611
25,478,404
30,806,805
34,716,420
36,364,008
40,247,555
53,036,327
68,160,779
1 3 ,2 8 6 ,40 0
1 4 ,646,637
17,121,079
20 ,7 2 6 ,6 6 4
2 2 ,9 6 7 ,36 6
23 ,0 6 9 ,35 4
2 5 ,6 3 0 ,4 9 8
35 ,3 7 5 ,6 3 8
4 7 ,1 3 8 ,74 0
1,006,367
3 ,0 7 8 ,7 25
8 7 1 ,1 6 7
3 ,3 9 5 ,6 63
1 ,0 2 6 ,5 50
3,3 9 6 ,3 65
2 ,4 8 6 ,6 95
3 ,4 6 5 ,1 92
3 ,7 1 2 ,3 04
3 ,4 4 1 ,2 73
2,018,561
4,4 5 3 ,8 76
4 6 7 ,8 7 3
1 ,5 06,206
1,4 5 9 ,8 58
2 ,3 1 7 ,7 9 4
2 ,601,900
3,004,655
Interest and d iv id e nd s on other securities3 ...........................................
Trust departm ent in c o m e ....................................................................
Service charges on deposit a c c o u n t s ....................................................
Other service charges, collection and exchange charges, com m issio ns,
and fees .......................................................................................
Other operating i n c o m e ......................................................................
1 ,5 3 1 ,5 17
7 5 6 ,1 3 0
9 1 5 ,0 4 9
1,904,886
8 2 0 ,2 6 9
9 8 7 ,1 8 7
2,376,223
9 0 6 ,2 0 6
1,055,964
5 5 1 ,0 6 8
2,215,971
134 ,5 4 8
1 ,0 21,900
1 ,1 2 0 ,1 96
688,421
2 ,6 2 0 ,2 57
151 ,8 3 2
1 ,1 32,292
1 ,178,192
9 1 6 ,5 5 9
3 ,1 2 7 ,1 36
2 3 8 ,0 3 3
1 ,257,807
1 ,2 31,470
1,144,761
3,493,981
3 2 2 ,2 3 9
1,3 6 6 ,4 55
1,262,022
1 ,4 7 2 ,4 67
3 ,8 6 4 ,7 85
3 7 1 ,9 8 7
1 ,4 59,879
1 ,3 2 6 ,9 92
3 5 4 ,0 3 6
3 4 7 ,4 8 8
411,021
409,711
478,0 2 8
5 36,249
6 9 3 ,5 7 8
6 8 6 ,0 4 3
8 4 2 ,4 8 0
1 ,050,488
9 8 9 ,4 3 2
1 ,2 67,387
1,0 8 3 ,1 04
1,5 2 1 ,5 80
1,251,651
1,961,041
1,4 0 8 ,5 25
2 ,5 5 3 ,5 63
19,354,237
24,076.791
27,588,602
29,650,981
32,996,608
44,329,800
4 ,5 3 7 ,8 96
6 6 7 ,3 4 5
7 ,379,863
5,101,803
755 ,7 4 4
8,681,705
5 ,8 7 8 ,8 12
9 0 3 ,4 6 9
9 ,7 8 9 ,8 93
6,6 5 6 ,8 84
1,060,167
1 0,483,795
7 ,2 0 2 ,9 72
1,192,011
12 ,2 1 7 ,99 4
7,7 5 4 ,7 73
1 ,3 30,440
13,8 4 4 ,02 0
8,574,731
1 ,553,077
19 ,8 3 4 ,81 7
9 ,7 9 7 ,7 06
1 ,788,727
2 7 ,8 8 8 ,77 2
3 0 1 ,7 6 8
2 6 6 ,4 7 6
5 2 8 ,9 8 6
1 ,2 05,787
4 3 3 ,1 2 0
100,7 4 2
1 ,073,339
1,400,838
46 4 ,5 6 8
104,730
1,254,520
1 ,095,648
139,3 8 8
142,381
1 ,410,190
1,429,171
115,240
2 1 3 ,5 3 2
1 ,583,538
3 ,8 9 9 ,0 16
5 03,941
25 4 ,4 5 8
1 ,782,956
5,9 8 5 ,5 04
9 1 7 ,6 3 8
2 8 3 ,2 0 3
2,0 5 2 ,3 45
1,331,926
258,587
1,555,734
301,214
1,730,402
320,212
1,926,695
343,157
2,152,621
369,665
2,438,528
386,183
7 7 3 ,0 7 2
5 2 1 ,0 6 4
3 ,3 9 7 ,4 93
9 0 9 ,0 9 0
7 0 3 ,1 5 0
4,5 5 0 ,8 60
1 ,0 18,128
8 6 7 ,2 6 0
4 ,3 6 5 ,0 09
1 ,087,844
9 7 3 ,2 3 8
4 ,6 6 4 ,8 1 2
1,201,241
1 ,2 6 4 ,6 95
5 ,4 6 0 ,8 68
1,360,721
2,2 8 6 ,1 32
6 ,5 4 9 ,2 50
6,730,014
7,127,818
6,713,027
7,250,947
8,706,527
9,250,781
Ap plica b le incom e ta xes6 .......................................................................
2,164,419
2,173,775
1,689,146
1,707,495
2,121,100
2,084,028
In co m e before securities gains or losses6 ..................................................
4,565,595
4,954,043
5,023,881
5,543,452
6,585,427
7,166,753
Securities gains or losses net6 ..................................................................
G r o s s ................................................................................................
-237,707
-103,695
213,245
92,456
-27,135
-5 1 2 ,2 4 2
-2 7 4 ,5 3 5
-2 2 4 ,0 2 8
-1 2 0 ,3 3 3
3 5 9 ,2 7 9
1 4 6 ,0 3 4
1 6 6 ,7 3 0
7 4 ,2 7 4
-7 3 ,4 5 8
-4 6 ,3 2 3
-1 6 1 ,2 4 7
-7 4 ,1 9 5
Net incom e before extra ordin a ry item s6 ..................................................
4,327,888
4,850,348
5,237,126
5,635,908
6,558,292
7,079,701
E x tra o rd in a ry charges or credits net6 ......................................................
6,914
-12,810
-639
19,153
21,561
11,920
3,9 9 4
-2 ,9 2 0
-3 5 ,8 6 5
-2 3 ,0 5 5
-1 2 ,5 5 2
-1 1 ,9 1 3
23 ,9 5 3
4 ,8 0 0
3 0 ,8 1 7
9,2 5 6
17,877
5,957
357
7,091,264
In co m e before incom e taxes and securities gains or losses6
9 7 0 ,0 3 4
8 0 2 ,0 6 0
873,541
980,444
178,387
1,059,785
186,244
4 5 8 ,6 9 5
53 3 ,8 4 6
6 31 ,5 6 4
2 ,0 4 5 ,3 47
2,294,675
2,684,401
4,946,562
5,227,969
6,124,167
1,173,423
203,389
...
Net c urrent operating earnings (old basis)
-3 9 2 , 4 4 7
-4 ,3 1 2
-4 3 8 ,5 2 0
TaxeS
Less m in o rity interest in consolidated subsidiaries6 ...................................
Net incom e
.........................................................................................
Recoveries charge~offs transfers f ro m reserves net
-839,869
-904,645
-992,665
235
245
282
663
659
4,334,567
4,837,293
5,236,205
5,654,398
6,579,194
-87,052
CORPORATION
16,553,642
4 ,0 9 5 ,7 4 2
59 8 ,7 6 8
6 ,2 5 9 ,4 72
O perating e x p e n s e -t o ta l4 ........................................................................
Salaries and w ages of officers and e m p lo y e e s .......................................
P ensions and other em ployee b e n e f i t s ................................................
Interest on d e p o s i t s ...........................................................................
E xp ense of Federal fu n d s purchased and securities sold under
agreem ents to repurchase5 ............................................................
Interest on other b orrow ed m o n e y 5 ....................................................
.............
Interest on capital notes and debentures4
.
O ccu p an c y expense of b a n k prem ises, n e t ..........................................
Gross occupancy expense ..............................................................
Less rental income.........................................................................
F u rniture and equipm ent, depreciatio n, rental costs, servicing, etc. .. .
P rovision fo r loan losses4 ...................................................................
O ther operating e x p e n s e s ....................................................................
INSURANCE
14,561,852
58,909,998
DEPOSIT
In terest on U.S. Trea sury s e c u r it ie s ....................................................
Interest and d iv id e nd s on securities of other U.S. G o vernm ent
8 1 1 ,5 8 0
2 ,8 4 5 ,2 57
FEDERAL
19,508,414
1,267,044
1,505,336
1,863,787
1,651,807
1,598,869
1,715,439
1,759,739
1,0 2 0 ,9 88
1 5 6 ,1 6 6
1 ,0 8 6 ,8 89
1 ,2 8 7 ,5 14
2 1 7 ,8 2 2
1 ,6 19,790
2 4 3 ,9 9 7
1 ,3 67,492
2 8 4 ,3 1 5
1 ,2 8 8 ,7 25
3 1 0 ,1 4 4
1 ,3 3 6 ,3 17
3 7 9 ,1 2 2
1 ,357,394
4 0 2 ,3 4 5
Net incom e after taxes (old b a s i s ) ............................................................
2,684,340
3,141,858
3,425,938
D iv id e n d s on c a p it a l- to t a l7 ......................................................................
Cash d iv id end s declared on c o m m o n s t o c k ..........................................
Cash d iv id e nd s declared on preferred st o c k 7 .......................................
1,307,387
1,426,202
1,589,114
1,769,314
2,040,027
2,230,556
2,196,868
2,429,330
2,768,104
1,2 4 0 ,0 48
6 7 ,3 3 9
1 ,3 4 2 ,5 38
8 3 ,6 6 4
1 ,4 8 8 ,6 7 0
1 0 0 ,4 4 4
1 ,7 6 2 ,2 79
7 ,0 3 5
2 ,0 3 3 ,2 8 8
6,7 3 9
2 ,2 2 5 ,1 2 5
5,431
2 ,1 9 3 ,0 5 2
3 ,8 1 6
2 ,4 2 5 ,6 3 3
3 ,6 9 7
2 ,7 6 5 ,6 7 4
2 ,430
1 4 3 ,8 5 9
3,3 0 0
1 6 8 ,6 8 0
5 ,638
2 1 9 ,1 1 5
1 ,913
2 0 9 ,1 2 4
1,986
2 5 5 ,3 5 0
1,260
3 1 7 ,3 2 0
2 ,2 5 3
3 6 3 ,6 6 3
6 ,2 4 3
3 8 8 ,8 4 6
2 ,061
4 6 1 ,3 5 0
1,651
5 4 5 ,6 4 7
6 0 ,2 8 2
6 0 1 ,1 9 4
2 9 ,0 7 2
6 2 9 ,7 0 7
3 2 ,2 6 2
6 9 7 ,8 7 4
1 2 ,4 4 8
1 ,2 3 6 ,9 88
2,881
1 ,4 0 4 ,5 20
3 ,7 1 4
1 ,2 5 0 ,9 8 9
4 ,3 3 3
1 ,5 4 8 ,0 3 3
5 ,4 4 0
2,418,281
3,1 2 0
391,255,121
425,619,337
473,138,013
516,325,483
543,880,408
603,422,720
679,113,973
776,702,572
871,394,495
6 2 ,8 6 7 ,39 8
5 6,0 8 8 ,64 9
7 0 ,248,679
57 ,3 5 7 ,58 4
7 8 ,5 0 4 ,0 2 4
6 1 ,5 4 5 ,80 7
4 7 ,0 5 4 ,81 2
2 1 4 ,3 8 1 ,6 2 8
1 0 ,862,634
55,2 1 3 ,29 3
2 3 0 ,6 3 6 ,1 4 9
1 2 ,163,632
6 5 ,3 1 8 ,37 4
2 5 3 ,6 7 8 ,3 1 9
14,091,481
8 6 ,6 6 3 ,3 8 4
5 6 ,7 2 4 , 0 8 3 1 1
5 8 , 0 1 1 ,2 0 0 11
1 1 ,8 3 9 , 1 3 0 11
2 8 3 ,479,251
1 9 , 6 0 8 , 4 3 5 11
8 9 ,0 8 9 ,60 7
5 4 ,1 9 8 , 4 0 7 1 1
6 2 , 0 1 2 , 7 7 1 11
1 2 ,8 2 1 ,6 8 7 11
3 0 1 ,6 6 7 ,2 4 2
2 4 ,0 9 0 , 6 9 4 1 1
9 5 ,6 7 3 ,5 2 7
5 9 ,9 2 3 , 5 6 2 11
7 4 ,6 0 6 , 1 5 3 11
1 8 ,2 1 6 , 0 6 4 1 1
3 2 7 ,6 3 3 ,6 8 7
2 7 ,3 6 9 ,7 2 7 11
1 0 2 ,9 6 9 ,9 3 3
6 1 ,9 7 8 , 4 9 0 1 1
8 4 ,2 1 0 , 3 9 6 1 1
2 3 ,8 6 3 , 0 5 1 11
3 7 6 ,5 4 3 ,3 4 7
2 9 ,5 4 8 , 7 5 6 1 1
11 0 ,1 6 8 ,1 4 3
5 8 ,6 0 3 ,9 2 5 1 1
8 9 ,2 4 1 . 7 8 0 1 1
2 9 ,3 5 5 , 7 1 5 11
4 5 3 ,2 3 8 ,9 0 7
3 6 ,0 9 4 ,1 0 2 11
1 22,224,773
5 2 ,8 2 2 ,0 4 3 11
9 4 ,5 2 4 ,5 3 5 1 1
3 5 ,2 5 6 ,6 0 3 11
519,572,131
4 6 ,9 9 4 ,4 1 0 1 1
Lia b ilities and c a p ita l-to ta l
T otal d e p o sits.....................................................................................
Demand deposits...........................................................................
Time and savings deposits..............................................................
B o rro w in g s and other lia b ilit ie s ..........................................................
T otal capital acco u n ts ........................................................................
Capital notes and debentures..........................................................
Equity capital...............................................................................
391,255,121
425,619,337
3 4 0 ,3 3 6 ,7 1 4
3 68,906,501
4 0 7 ,5 0 8 ,2 6 0
4 3 1 ,4 6 8 ,3 3 9
4 4 9 ,5 2 2 ,1 4 1
50 7 ,1 0 1 ,9 6 8
5 6 8 ,2 4 0 ,2 6 8
6 4 0 ,8 0 6 ,2 0 8
8 7 1 ,3 9 4 ,4 9 5
71 0 ,0 2 9 ,8 6 8
185,336,407
155,000,307
194,982,924
173,923,577
213,628,389
193,879,871
230,490,525
200,977,814
237,588,875
211J 3 3,266
251,447,347
255,654,621
271,122,732
297,117,536
293,708,282
347,097,926
307,363,186
402,666,682
2 0,067,721
3 0 ,8 5 0 ,68 6
2 3 ,8 3 6 ,16 2
3 2 ,8 7 6 ,67 4
3 0 ,2 9 7 ,6 0 5
3 5 ,3 3 2 ,14 8
4 6 ,6 4 2 ,4 8 6
3 8 ,2 1 4 ,65 8
5 3 ,2 1 2 ,87 8
4 1 ,1 4 5 ,38 9
5 1 ,5 0 7 ,00 5
4 4 ,8 1 3 ,7 4 7
6 1 ,1 7 9 ,88 5
4 9 ,6 9 3 ,8 2 0
8 0 ,6 7 7 ,8 4 6
5 5 ,2 1 8 ,5 1 8
100,573,737
6 0 ,7 9 0 ,89 0
1,710,785
29,139,901
1,884,844
30$91,830
2,096,175
33^35,973
2,027,427
36,187,231
2,047,429
39,097,960
2,548,014
42265,733
3,546,497
46,147,323
4,044,715
51,173,803
4,204,891
56,585,999
N u m b er of e m ployees (end of p e r io d ) ......................................................
777,361
8 1 5 ,0 3 7
8 6 6 ,7 2 5
9 0 4 ,0 0 8
9 5 9 ,8 6 7
9 8 0 ,6 6 0
1 ,025,997
1 ,0 9 3 ,6 16
1,160,585
N u m b er of b a nk s (end of p e rio d )..............................................................
13,541
13,517
13,488
13,473
13,511
1 3,612
1 3,733
13,9 7 6
1 4,228
M e m o ra n d a 8
R ecoveries credited to reserves:
O n l o a n s .............................................................................................
O n se c u rit ie s.......................................................................................
L osses charged to reserves:
O n l o a n s .............................................................................................
O n se c u ritie s.......................................................................................
Ave rage assets and liab ilities9
A s s e t s -t o t a l ...........................................................................................
Cash and due fro m b a n k s ...................................................................
U.S. T reasury s e c u r it ie s .....................................................................
O bliga tio ns of States and political su b d iv isio n s1 0 .................................
O ther securities1 0 ...............................................................................
L o a n s and d is c o u n t s ...........................................................................
A ll other a s s e t s ...................................................................................
1 8 0 ,1 5 5
473,138,013
516,325,483
543,880,408
603,422,720
679,113,973
776,702,572
BANKS
4,692,982
1,177,154
9 1 1 ,5 8 5
118,321
OF INSURED
4,319,012
1,029,906
INCOME
3,714,246
To tal p ro visio n fo r in co m e t a x e s ..............................................................
Federal in com e t a x e s .........................................................................
State and local incom e taxes ..............................................................
1 Figures before 1 9 6 9 m ay differ slightly fro m those published by the Board of G overnors of the Federal Reserve System and the C om p tro ller of the C urrency because of differences in ro u nd in g techniques. Revisio n s in R ep ort of Incom e in 1969 are
discussed on pp. 2 2 7 -2 2 9 ; also see notes to tables.
2 "ln c o m e on Federal fu n d s s o l d " w as included in "In te re st and d isco u n t on lo a n s " in 196 8 and prior years (see 1968 report, p. 198).
3 lncom e fro m "S e c u r itie s of other U.S. G ove rn m e nt agencies and c o rp o ra tio n s " and from "O b lig a tio n s of States and political su b d iv isio n s" was included in incom e from " O t h e r se curities" in 1 9 6 8 and prior years.
4 "ln te re s t on capital notes and d eb en tu res" and "P ro v is io n fo r loan lo sse s" not included in "O p e ra ting e x p e n se -to ta l" in 1 9 6 8 and prior years.
5 "E x p e n s e of Federal fu n d s purchased and securities sold under agreem ents to repurchase" was included in "In tere st on borrow ed m o n e y " in 1 9 6 8 and prior years.
6 Data are not available p rio r to 19 6 9 . See page 2 2 8 of this report.
7 ln 1 9 6 8 and p rio r years, "D iv id e n d s declared on preferred s t o c k " w as reported in com bination w ith "In tere st on capital notes and debentures."
i n c l u d e s o n ly recoveries credited to, and losses charged to, reserves. A ll other recoveries and losses on loans and securities are credited to, and charged to, undivided profits and are in cluded above.
9 Averages of a m o u n ts reported at beginning, middle, and end of year. 1 9 6 6 - 1 9 6 8 averages of securities and loans have been revised to gross basis.
1 0 ln 1 9 6 8 and p rio r years, "O b lig a t io n s of States and political su b d iv is io n s " were included in "O t h e r securities."
11 Securities held in trading acco u n ts are included in " A l l other assets."
231
Table 115. RATIOS OF INCOME OF INSURED C O M M ERCIAL BANKS IN THE U N ITE D STATES (STATES A N D OTHER AR EA S ), 1 9 6 6 -1 9 7 4
1970
1971
1972
1973
1974
A m o u n ts per $10 0 of operating income
Operating i n c o m e - t o t a l..........................................................................
Incom e on loans1 ..........................................................................................................
In te re st on U.S. T reasury s e c u ritie s .......................................................................
$100.00
68.11
11.88
$100.00
6 7.24
11.95
$100.00
67.20
11.79
In te re st and divid e n d s on o th e r securities3 ..........................................................
T ru s t d e p a rtm e n t incom e ........................................................................................
Service charges on d eposit accounts ....................................................................
O ther charges, com m issions, fees, e tc.....................................................................
O ther o perating in c o m e .............................................................................................
7.85
3.88
4.69
1.81
1.78
8.74
3.77
4.53
1.89
1.88
9 .33
3 .56
4 .14
1.88
2.10
$100.00
69.91
9.23
7 19
2.23
3.32
3.6 4
2.25
2.23
$100.00
69.05
8.87
7 55
2.42
3.26
3.39
2.43
3.03
$100.00
65.84
9.3 4
8 60
3.17
3.46
3.39
2.72
3.48
$100.00
66.23
8 .44
8 .65
3.64
3.40
3 .14
2.67
3.78
$100.00
71.39
6.53
7.29
3.48
2.75
2.50
2.36
3.70
$100.00
74.60
5.05
6.53
3.65
2.21
2.14
2.07
3.75
Operating e xp e n se -to tal4 ........................................................................
Salaries and w a g e s .......................................................................................................
Pensions and o th e r b e n e fits ......................................................................................
Inte re st on tim e and savings d e p o s its ....................................................................
Inte re st on b o rro w e d m o n e y 5 ................................................................................
O ccupancy expense o f bank premises, n e t ..........................................................
F u rn itu re and e q u ip m e n t, e tc ...................................................................................
74.64
20.99
3.07
32.09
1.55
4.11
2.35
76.00
20.83
3.07
3 3.88
1.22
4.01
2.45
75.96
20.02
2.97
34.07
2.08
3.81
2.48
10.48
10.54
10.53
78.15
19.08
2.93
31.78
5.65
3.48
2.51
1.69
11.03
79.47
19.18
3.05
30.20
5.67
3.61
2.62
2.03
13.11
81.54
19.81
3.28
33.60
3.79
3.88
2.80
2.38
12.00
81.98
19.27
3.30
34.40
4.37
3.93
2.70
2.42
11.59
83.58
16.17
2.93
3 7.40
8.78
3.36
2.26
2.38
10.30
86.43
14.38
2.62
4 0 .9 2
10.54
3.01
2.00
3.35
9.61
21.85
20.53
18.46
18.02
16.42
13.57
25.36
24.00
24.04
4.99
1.26
5.12
1.23
5.38
1.29
5.97
6.38
6.03
5.93
6.83
7.82
1.30
.84
1.31
.89
1.11
.87
1.07
.33
1.12
.85
1.06
.81
11.4 8 7
4.61
6.71
1 1.8 9 7
4.94
6.80
1 1 .8 5 7
4.97
6.71
1 1 .6 0 7
4.41
6.96
1 2 .1 4 7
4.39
7.51
1 1 .8 9 7
4 .55
7.11
O ther o p erating expenses
......................................................................... ..............
Incom e before income taxes and securities gains or lo sse s...........................
Net current operating earnings (old b a s is ) ..................................................
A m o u n ts per $100 of total assets
O perating i n c o m e - t o t a l ..................................................................................................
Net c u rre n t opera tin g earnings (old basis)
Incom e before incom e taxes and securities gains o r losses...................................
Net in c o m e 6 .........................................................................................................................
.69
.74
.72
A m o u n ts per $ 100 of total capital accounts
Net in c o m e 6 .........................................................................................................................
Cash d ivid en d s declared on c o m m o n s t o c k ...............................................................
N et a d d itio n s to cap ital fro m in c o m e .........................................................................
8.70
4 .02
4 .46
9.56
4.08
5.22
9.70
4.21
5.20
A m o u n ts per $ 10 0 of equity capital
N et in c o m e 6 .........................................................................................................................
9.21
10.14
10.31
11.98
12.37
12.39
12.25
12.86
12.53
Special ratios
Incom e on loans per $1 00 o f lo an s1 ............................................................................
Incom e on U.S. T reasury securities per $1 0 0 o f U.S. T reasury securities . . .
Incom e on o b lig a tio n s o f States and p o litic a l subdivisions per $ 1 0 0 o f
o b lig a tio n s o f States and p o litic a l s u b div isions2 ................................................
Incom e on o th e r secu ritie s per $ 10 0 o f o th e r securities3 ...................................
Service charges per $ 1 0 0 o f dem and d e p o s its ..........................................................
Inte re s t paid per $ 1 0 0 o f tim e and savings d e p o s its ................................................
6.20
4.13
6.35
4.54
6.75
4 .8 8
7.60
5.02
7.95
5.68
7.31
5.67
7.08
5.48
8.35
5.91
9 .79
6.51
3.25
.49
4 .04
3.45
.51
4.24
3.64
.49
4 .48
3.82
5.79
.49
4.87
4.23
6.55
.50
4.95
4.19
6.34
.49
4.78
4.15
6.15
.47
4.66
4.33
6.28
.45
5.71
4.71
7 .05
.47
6.93
N um b e r o f banks (end o f p e r i o d ) .................................................................................
13,541
13,517
13,488
13,473
13,511
13,612
13,733
13,9 76
14 ,22 8
1 1ncludes Federal fu n d s sold.
2 "In te re s t on State and local g o ve rn m e n t o b lig a tio n s " in cluded in " In te re s t and dividends on oth e r secu ritie s" in 1968 and p rio r years. Incom e fro m securities held in tra d in g accounts is included in "O th e r o pe ratin g in c o m e ” ,
in c lu d e s inte re s t and d ivide nd s on securities o f o th e r U.S. G ove rn m e n t agencies and c o rp o ra tio n s; includes interest on State and local governm ent o b lig a tio n s before 1969.
I nterest on ca p ita l notes and d e b e n tu re s ", w h ich is in cluded in "In te re s t on b o rrow ed m o n e y " in 1 9 6 9 -1 9 7 4 , and "P ro visio n fo r loan losses” was n o t included in "O p e ra tin g e x p e n s e -to ta l" in 1968 and p r io r years,
i n c lu d e s in te re s t on ca pita l notes and d ebentures (see note 4 ) and Federal fu n d s purchased.
6 Because o f changes in the fo rm o f re p o rtin g by banks, figures in 1 9 6 9 - 1 9 7 4 are no t fu lly com parable w ith those in 1968 and p rio r years; see table 114 and pp. 227-229.
7 ln c o m p u tin g th is ra tio , in te rest on capita l notes and debentures has been added to net incom e, w ith tax a djustm ent at th e regular c o rp o ra te ta x rate.
INSURANCE CORPORATION
1969
DEPOSIT
1968
FEDERAL
1967
232
1966
In com e item
Table 116. INCOME OF INSURED COM M ERCIAL BANKS IN THE U N ITE D STATES (STATES A N D OTHER A R EA S ), 1974
BANKS GROUPED BY CLASS OF BA N K
(Am ounts in thousands of dollars)
M em bers F .R . System
In com e item
N ational
State
N on
m em bers
F .R . System
O perating
th ro u g h o u t
the year
O perating
less than
fu ll year
To ta l
40,448,342
2 8 ,4 1 8 ,5 6 3
2,1 7 3 ,0 8 9
1 ,752,716
1 ,018,360
2 ,5 3 1 ,2 9 9
258,901
8 5 3 ,7 2 8
827,191
9 3 8 ,5 1 5
1,67 5 ,9 8 0
13,392,280
9 ,6 4 7 ,1 1 4
549,879
59 0,079
250,081
76 9 ,4 8 2
6 6 ,8 0 0
5 2 5,317
195,502
21 3 ,2 0 3
5 8 4,823
14,320,157
9 ,0 7 3 ,0 6 3
9 8 9 ,3 3 6
1,098 ,4 7 8
7 5 0 ,1 2 0
1 ,1 5 3 ,0 9 5
142,172
127,161
4 3 7 ,1 6 5
2 5 6 ,8 0 7
2 9 2 ,7 6 0
68,067,597
4 7 ,0 9 9 ,1 4 7
3 ,6 8 3 ,1 9 2
3,4 3 4 ,1 5 5
2 ,0 1 4 ,2 9 6
4 ,4 5 1 ,9 7 9
4 6 5 ,9 2 5
1 ,503,646
1,457,839
1 ,407,094
2 ,5 5 0 ,3 2 4
93,182
3 9,593
29,112
7,118
4,265
1,897
1,948
2,560
2,019
1,431
3,239
Operating e x p e n s e - t o t a l ......................................................................................................
Salaries and wages o f o ffic e rs and e m p lo y e e s .........................................................................................
Pensions and o th e r e m plo yee b e n e fits ........................................................................................................
In te re s t on de posits .........................................................................................................................................
Expense o f federal fu n d s purchased and securities sold u n d e r agreements to repurchase . . . .
In te re s t on o th e r b o rro w e d m o n e y .............................................................................................................
In te re s t on c a p ita l notes and d e b e n tu re s ...................................................................................................
O ccupancy expense o f ba n k prem ises, net ..............................................................................................
Gross occupancy expense .......................................................................................................................
Less rental income ......................................................................................................................................
F u rn itu re and e q u ip m e n t, d e p re c ia tio n , ren ta l costs, servicing, e tc ..................................................
P rovision fo r loan lo s s e s ..................................................................................................................................
O th e r o p e ra tin g e x p e n s e ..................................................................................................................................
58,909,998
9 ,7 9 7 ,7 0 6
1,788,727
2 7 ,8 8 8 ,7 7 2
5 ,9 8 5 ,5 0 4
9 1 7 ,6 3 8
2 8 3 ,2 0 3
2 .0 5 2 ,3 4 5
35,241,442
5 ,5 9 3 ,0 2 5
1,033,991
16,5 8 4 ,9 8 0
4 ,2 7 7 ,2 2 0
51 9 ,2 5 6
147,782
1 ,146,564
11,577,100
1,835,066
3 7 2 ,4 5 2
5 ,2 2 8 ,0 5 4
1,436,533
35 2 ,4 4 6
6 9 ,5 0 8
4 5 6 ,8 1 4
12,091,456
2,3 6 9 ,6 1 5
3 8 2 ,2 8 4
6 ,0 7 5 ,7 3 8
271,751
4 5 ,9 3 6
6 5 ,9 1 3
4 4 8 ,9 6 7
58,813,939
9 ,7 7 3 ,5 0 3
1,786,159
2 7 ,8 6 0 ,8 9 4
5,9 8 4 ,7 5 3
9 1 7 ,3 1 4
283,161
2 ,0 4 5 ,7 2 7
96,059
24,2 03
2,56 8
2 7,878
751
324
42
6 ,618
2,438,528
386,183
1,398,737
252,173
530,176
73,362
509,615
60,648
2,431,759
386,032
6,769
151
1,360,721
2 ,2 8 6 ,1 3 2
6 ,5 4 9 ,2 5 0
81 1 ,8 9 7
1,391,805
3 ,7 3 4 ,9 2 2
22 4 ,7 4 3
4 6 6 ,1 7 3
1,135,311
324,081
4 2 8 ,1 5 4
1,6 7 9 ,0 1 7
1 ,357,229
2 ,2 8 2 ,0 9 0
6 ,5 2 3 ,1 0 9
3,492
4 ,042
26,141
-2 ,8 7 7
9,250,781
5,206,900
1,815,180
2,228,701
9,253,658
2,084,028
1,122,623
468,344
493,061
2,083,755
273
Incom e before securities gains or l o s s e s .................................................................................
7,166,753
4,084,277
1,346,836
1,735,640
7,169,903
-3 ,1 5 0
Net securities gains or lo s s e s ..................................................................................................
Gross .....................................................................................................................................................................
Taxes .....................................................................................................................................................................
-8 7 ,0 5 2
- 1 6 1 ,2 4 7
- 7 4 ,1 9 5
-4 2 ,4 2 0
- 8 0 ,6 9 5
- 3 8 ,2 7 5
-2 6 ,8 3 5
- 5 2 ,9 8 7
- 2 6 ,1 5 2
-1 7 ,7 9 7
- 2 7 ,5 6 5
- 9 ,7 6 8
- 8 7 ,3 5 6
- 1 6 1 ,7 6 7
- 7 4 ,4 1 1
304
520
216
Net income before extraordinary i t e m s .................................................................................
7,079,701
4,041,857
1,320,001
1,717,843
7,082,547
-2 ,8 4 6
Extraord in ary charges or credits, n e t .....................................................................................
Gross .....................................................................................................................................................................
T a xe s.......................................................................................................................................................................
11,920
17,877
5,957
2,758
7,991
5,233
480
-5 5 2
- 1 ,0 3 2
8,682
10,438
1,756
11,844
17,785
5,941
76
92
16
233
In com e before income taxes and securities gains or l o s s e s ......................................................
Applicable income ta x e s........................................................................................................
BANKS
68,160,779
47 ,1 3 8 ,7 4 0
3,7 1 2 ,3 0 4
3 ,4 4 1 ,2 7 3
2,018,561
4,4 5 3 ,8 7 6
4 6 7 ,8 7 3
1,506,206
1 ,459,858
1 ,408,525
2 ,5 5 3 ,5 6 3
INCOME OF INSURED
Operating in c o m e - t o t a l........................................................................................................
In te re s t and fees on l o a n s ...............................................................................................................................
In com e on federal fun d s sold and securities purchased u n d e r agreements to r e s e ll....................
In te re st on U.S. T reasury securities ...........................................................................................................
In te re st and d ividends on securities o f o th e r U.S. G o ve rn m e n t agencies and co rp o ra tio n s . . .
In te re st on o b lig a tio n s o f States and p o litic a l s u b d iv is io n s ................................................................
In te re s t and d ividends on o th e r s e c u ritie s .................................................................................................
T ru s t d e p a rtm e n t in c o m e ...............................................................................................................................
Service charges on de p o sit a c c o u n ts ...........................................................................................................
O th e r service charges, c o lle c tio n and exchange charges, com m issions, and fe e s...........................
O th e r o p e ra tin g in c o m e .................................................................................................................................
234
Table 116. INCOME OF INSURED C O M M E R C IA L BANKS IN THE U NITED STATES (STATES A N D OTHER A R EA S ), 1974— C O N TIN U ED
BANKS GROUPED BY CLASS OF B A N K
(Am ounts in thousands of dollars)
M em bers F .R . System
In co m e item
N on
m em bers
F .R . System
T o ta l
N atio n a l
State
O perating
th ro u g h o u t
the year
O p erating
less tha n
fu ll year
216
357
0
1,320,481
1,726,309
7,094,034
-2 ,7 7 0
D ivide nd s on c a p i t a l- t o t a l .....................................................................................................................................
Cash divid e n d s declared o n c o m m o n s t o c k ...............................................................................................
Cash d iv id e n d s declared o n pre fe rre d s to c k ...............................................................................................
2,768,104
2 ,765,674
2,430
1,671,209
1,67 0 ,2 3 2
977
600,228
6 0 0 ,0 6 0
168
496,667
4 9 5 ,3 8 2
1 ,285
2,767,452
2 ,7 6 5 ,0 2 2
2,4 3 0
652
652
0
T o ta l p ro v is io n f o r in c o m e t a x e s ........................................................................................................................
Federal in com e ta x e s ..........................................................................................................................................
State and local inco m e ta x e s ...........................................................................................................................
1,759,739
1,357,394
402,3 4 5
968,418
751,1 7 7
217,241
348,996
2 27,4 3 6
1 2 1,560
442,325
378,781
6 3 ,5 4 4
1,759,507
1 ,3 5 7 ,2 7 5
4 0 2 ,2 3 2
232
119
113
M e m o ra n d a 1
461,3 5 0
1,651
3 0 3 ,0 1 8
1,066
6 0 ,5 1 0
38
9 7 ,8 2 2
547
4 6 1 ,2 2 7
1,651
123
0
2,418,281
3,120
1 ,4 9 3 ,9 4 8
2,115
4 5 8 ,4 8 8
140
4 6 5 ,8 4 5
865
2 ,4 1 7 ,5 4 4
3,1 2 0
737
0
N u m b e r o f em ployees (end o f p e r i o d ) ..............................................................................................................
1 ,160,585
6 6 4 ,4 1 6
190,909
3 0 5 ,2 6 0
1,156,111
4 ,47 4
N u m b e r o f b anks (end o f p e r io d ) ........................................................................................................................
14,228
4 ,7 0 8
1,074
8,446
13,863
3 65
1 1ncludes o n ly recoveries c re d ite d , and losses charged, to reserves. A ll o th e r recoveries and losses on loans and securities are cre d ite d and charged to u n d ivid e d p ro fits and are inclu d e d above.
CORPORATION
Recoveries c re d ite d to reserves:
On lo a n s .................................................................................................................................................................
On s e c u r itie s .........................................................................................................................................................
Losses charged to reserves:
On lo a n s .................................................................................................................................................................
On s e c u r itie s .........................................................................................................................................................
INSURANCE
0
4,044,474
DEPOSIT
141
7,091,264
FEDERAL
357
.................................................................................................................................................................
Less m in o r ity in te re s t in c o n s o lid a te d s u b s id ia rie s ........................................................................................
N et in c o m e
Table 117. INCOME OF INSURED COM M ERCIAL BANKS OPERATING TH R O U G H O U T 1974 IN THE U N ITE D STATES
(STATES A N D OTHER AREAS)
BANKS GROUPED BY A M O U N T OF DEPOSITS
(Am ounts in thousands of dollars)
Banks w ith deposits o f In com e item
$1 m illio n
to
$2 m illio n
$2 m illio n
to
$5 m illio n
$5 m illio n
to
$1 0 m illio n
$10 m illio n
to
$25 m illio n
$2 5 m illio n
to
$ 50 m illio n
$ 5 0 m illio n
to
$ 1 0 0 m illio n
$ 1 0 0 m illio n
to
$ 5 0 0 m illio n
$ 5 0 0 m illio n
to
$1 b illio n
$1 b illio n
or
m ore
O p erating in c o m e - t o ta l.....................................................
In te re st and fees on lo a n s ...........................................
In co m e on federal fu n d s sold and securities
purchased u n d e r agreem ents to r e s e l l .............
In te re s t on U.S. T rea sury s e c u r it ie s .......................
In te re s t and d iv id e n d s on secu ritie s o f o th e r
U.S. G o v e rn m e n t agencies and c o rp o ra tio n s .
In te re s t on o b lig a tio n s o f S tates and
p o litic a l s u b d iv is io n s ..............................................
In te re s t and d iv id e n d s on o th e r secu rities ..........
T ru s t d e p a rtm e n t in c om e ...........................................
Service charges on d e p o s it a c c o u n ts .......................
O th e r service charges, c o lle c tio n and exchange
charges, com m issions, and f e e s ..........................
O th e r o p e ra tin g i n c o m e ..............................................
68,067,597
4 7 ,0 9 9 ,1 4 7
2,063
786
34,605
16,357
614,795
3 2 5 ,0 4 6
1,850,723
1,042,353
5,894,016
3 ,5 6 2 ,6 3 3
5,490,383
3 ,4 9 3 ,3 2 6
5,310,631
3 ,4 6 1 ,4 2 9
11,521,803
7 ,7 1 0 ,2 7 6
6,519,197
4 ,5 5 7 ,1 7 4
30,829,381
2 2 ,929,767
3 ,6 8 3 ,1 9 2
3 ,4 3 4 ,1 5 5
551
339
6 ,283
6 ,134
85,731
8 6 ,5 6 7
203,701
210,301
4 9 4 ,3 5 4
547,461
363,071
412,901
3 1 6 ,6 8 5
343,351
6 8 4 ,6 2 5
6 1 3 ,6 7 0
3 6 6 ,7 4 7
2 94 ,0 5 9
1 ,1 61 ,4 44
91 9 ,3 7 2
O perating e x p e n s e - t o t a l...................................................
Salaries and wages o f o ffic e rs and em ployees . . .
Pensions and o th e r e m ployee b e n e f i t s ..................
In te re st on d e p o s its .....................................................
Expense o f federal fu n d s purchased and securi
ties sold u nder agreem ents to repurchase . . .
In te re st on o th e r b o rro w e d m o n e y ..........................
In te re st on cap ita l notes and d e b e n tu re s ...............
O ccupancy expense o f ba n k prem ises, n e t ..........
Gross occupancy expense ....................................
Less rental income ...................................................
F u rn itu re and e q u ip m e n t, d e p re c ia tio n , rental
costs, servicing, e tc ..................................................
P rovision fo r loan lo s s e s ..............................................
O th e r o p e ra tin g e x p e n s e s ...........................................
251
2,605
51,5 8 5
136,948
337,051
2 6 5 ,0 0 4
2 3 7 ,4 6 0
4 0 3 ,9 6 5
1 2 0,92 2
4 5 8 ,5 0 5
18
16
0
43
686
284
1
979
24,571
4 ,7 6 6
4 59
17,697
127,139
13,392
4,5 8 6
57,754
5 1 5 ,2 7 5
4 6 ,0 1 5
1 7,452
200,621
5 1 6 ,5 3 8
4 8 ,5 5 2
3 6 ,6 0 7
183,876
4 9 5 ,9 0 9
5 1 ,812
7 3 ,4 4 4
153,860
9 1 3 ,8 5 8
9 7 ,4 0 6
2 9 7 ,3 4 0
2 8 4 ,2 4 6
4 5 4 ,3 8 2
4 9 ,1 8 4
1 72,939
143,3 0 2
1,40 3,60 3
15 4,498
9 0 0 ,8 1 8
415,461
1 ,4 0 7 ,0 9 4
2 ,5 5 0 ,3 2 4
48
11
590
686
10,626
7,747
31 ,4 5 0
23,099
97,901
7 5,253
92,461
78 ,0 4 7
9 5 ,7 7 5
80 ,9 0 6
279 ,0 6 3
2 3 7 ,3 5 4
1 82,300
1 78,1 8 8
61 6 ,8 8 0
1,869,033
58,813,939
9 ,7 7 3 ,5 0 3
1,7 8 6 ,1 5 9
2 7 ,8 6 0 ,8 9 4
1,359
655
72
280
26,560
9 ,197
858
8,961
492,360
128,370
15,035
22 0 ,7 3 7
1,490,997
3 30 ,7 4 6
4 5 ,6 4 7
735,021
4,805,589
9 5 6 ,7 3 2
149,479
2 ,4 8 7 ,4 4 5
4,611,218
8 7 1 ,1 2 4
143,653
2 ,3 8 8 ,4 5 0
4,561,633
83 9 ,0 4 6
143,286
2 ,3 6 1 ,3 3 8
10,077,751
1,8 4 8 ,1 1 7
3 3 0 ,4 5 3
4 ,7 5 6 ,8 2 8
5,742,662
9 7 7 ,8 6 2
1 83,413
2 ,4 9 1 ,8 7 0
27,003,810
3 ,8 1 1 ,6 5 4
774,263
1 2,409,964
5 ,9 8 4 ,7 5 3
9 1 7 ,3 1 4
283,161
2 ,0 4 5 ,7 2 7
4
3
0
59
17
8
7
966
891
641
298
17,083
5,531
2,230
1,883
4 9 ,4 7 4
2 6 ,6 5 0
11,410
11,098
164,356
59,812
12,534
15,534
169,006
122,249
18,101
2 1 ,0 9 5
1 7 3,298
72 8 ,7 6 4
6 8 ,9 9 0
56 ,6 3 5
4 0 5 ,0 6 6
6 8 1 ,1 7 4
81,986
3 7 ,2 1 4
200 ,8 1 8
4,359,661
721,411
139,397
865,601
2,431,759
386,032
60
1
1,002
36
17,977
894
52,599
3,125
176,447
12,091
186,281
17,275
203,290
29,992
494,461
89,395
270,845
70,027
1,028,797
163,196
1 ,3 5 7 ,2 2 9
2 ,2 8 2 ,0 9 0
6 ,5 2 3 ,1 0 9
34
26
226
755
909
4,8 8 2
14,919
14,808
79,5 7 8
4 2 ,6 7 0
50,120
227,6 7 5
133,3 1 2
158,563
7 0 6 ,5 4 4
126,576
164,531
6 5 9 ,9 9 8
125,211
1 56,197
6 0 1 ,8 1 2
3 0 8 ,9 9 6
3 18,821
1,255,081
158,971
236,491
69 2 ,8 6 3
445 ,7 8 5
1,181,624
2,294,450
In co m e b e fo re incom e taxes and securities gains
or lo s s e s ............................................................................
9,253,658
704
8,045
122,435
359,726
1,088,427
879,165
748,998
1,444,052
776,535
3,825,571
A p p lic a b le incom e t a x e s ...................................................
2,083,755
167
2,049
35,419
95,120
263,790
185,839
134,477
262,364
147,136
957,394
235
2 ,0 1 4 ,2 9 6
4 ,4 5 1 ,9 7 9
4 6 5 ,9 2 5
1,5 0 3 ,6 4 6
1,4 5 7 ,8 3 9
BANKS
Less
than
$1 m illio n
INCOME OF INSURED
A ll
b anks1
236
Table 117. INCOME OF INSURED C O M M ER C IAL BANKS OPERATING TH R O U G H O U T 1974 IN THE U N ITE D STATES
(STATES A N D OTHER A R EAS)— CO N TIN U ED
BANKS GROUPED BY AMOUNT OF DEPOSITS
(Amounts in thousands of dollars)
Banks w ith deposits o f A ll
b a n ks1
Less
th a n
$1 m illio n
$1 m illio n
to
$2 m illio n
$2 m illio n
to
$5 m illio n
$5 m illio n
to
$10 m illio n
$ 10 m illio n
to
$ 25 m illio n
$25 m illio n
to
$ 5 0 m illio n
$ 5 0 m illio n
to
$ 1 0 0 m illio n
$ 1 0 0 m illio n
to
$ 5 0 0 m illio n
$ 5 0 0 m illio n
to
$1 b illio n
$1 b illio n
or
m ore
537
5,996
87,016
264,606
824,637
693,326
614,521
1,181,688
629,399
2,868,177
-8 7 ,3 5 6
- 1 6 1 ,7 6 7
- 7 4 ,4 1 1
1
-2
-3
-6 6
-6 8
-2
-1 ,2 7 5
- 1 ,4 9 2
-2 1 7
-3 ,2 3 3
- 4 ,5 5 6
- 1 ,3 2 3
-7 ,3 0 5
- 1 0 ,9 6 4
- 3 ,6 5 9
-5 ,7 5 5
- 1 0 ,1 3 5
- 4 ,3 8 0
-5 ,7 6 6
- 1 0 ,5 9 4
- 4 ,8 2 8
-9 ,9 4 7
-1 7 ,9 0 1
- 7 ,9 5 4
-9 ,5 9 3
- 1 7 ,4 3 5
- 7 ,8 4 2
-4 4 ,4 1 7
- 8 8 ,6 2 0
- 4 4 ,2 0 3
Net incom e before extraordinary i t e m s .................
7,082,547
538
5,930
85,741
261,373
817,332
687,571
608,755
1,171,741
619,806
2,823,760
E x traord in ary charges or credits, n e t .....................
G r o s s .................................................................................
T axes .................................................................................
11,844
17 ,7 8 5
5,941
0
0
0
-3 0
-3 3
-3
397
479
82
1,185
1,486
301
3,007
2,847
-1 6 0
3,412
3 ,9 8 0
568
5,766
7,142
1,376
3,938
3,7 2 2
-2 1 6
5,076
7,981
2 ,9 05
-1 0 ,9 0 7
-9 ,8 1 9
1,088
Less m ino rity interest in consolidated s u b s id ia rie s ..
357
0
0
0
0
99
31
44
34
42
107
820,240
690,952
614,477
1,175,645
624,840
2,812,746
Net i n c o m e .........................................................
7,094,034
538
5,900
86,138
262,558
Dividends on ca p ita l-to ta l ..................................
Cash d iv id e n d s declared on c o m m o n s t o c k ..........
Cash d iv id e n d s declared on p re fe rre d s to ck . . . .
2,767,452
2 ,7 6 5 ,0 2 2
2 ,4 3 0
77
77
0
1,136
1,136
0
17,704
17,694
10
55,284
55,247
37
196,104
195,808
296
206,979
206,741
238
214,384
21 4 ,0 4 2
342
498,456
4 9 7 ,3 5 3
1,103
305,790
3 0 5 ,7 8 9
1
1,271,538
1 ,2 7 1 ,1 3 5
403
Total provision fo r incom e t a x e s ...........................
Federal incom e t a x e s ...................................................
State and local incom e ta x e s ......................................
1,759,507
1,3 5 7 ,2 7 5
4 0 2 ,2 3 2
163
152
11
2,016
1,823
193
34,061
30,870
3,191
89,676
80 ,824
8,852
239,615
2 1 4,756
2 4,859
161,609
14 0,768
20,841
111,801
9 1 ,803
19,998
218,313
176,132
42,181
127,362
106,416
20,946
774,891
513,731
2 6 1 ,1 6 0
M e m oran d a2
Recoveries c re d ite d to reserves (n o t included above)
On lo a n s ...........................................................................
On securities ..................................................................
Losses charged to reserves (n o t inclu d e d above):
On lo a n s ...........................................................................
On securities .................................................................
4 6 1 ,2 2 7
1,651
2
0
185
0
4 ,8 8 6
10
16,433
64
5 7,832
248
50,3 7 6
96
4 0 ,7 5 6
245
77 ,3 3 0
309
5 2,040
200
161,387
479
2 ,4 1 7 ,5 4 4
3 ,1 2 0
20
0
903
0
14,752
38
57 ,058
3 97
199,362
4 28
20 5 ,6 8 7
313
185,093
447
37 4 ,4 6 4
1,372
2 5 3 ,1 0 0
125
1,1 2 7 ,1 0 5
0
N u m b e r o f em ployees, Decem ber 3 1 ............................
1,156,111
92
1,302
16,391
4 1 ,7 6 0
124,925
114,480
108,299
23 3 ,7 0 3
117,643
39 7 ,5 1 6
N u m b e r o f banks, Decem ber 3 1 ......................................
13,863
29
260
2,103
3 ,1 6 0
4,627
1,942
931
634
93
84
1T h is group o f banks is th e same as the group show n in ta b le 116 u n d e r th e heading "O p e ra tin g th ro u g h o u t the ye a r".
2 Includes o n ly recoveries c re d ite d , and losses charged, to reserves. A ll o th e r recoveries and losses on loans and securities are cre d ite d , and charged, to u n d ivid e d p ro fits and are included above.
INSURANCE CORPORATION
7,169,903
DEPOSIT
Incom e before securities gains or lo s s e s .................
Net securities gains or losses ................................
G r o s s .................................................................................
T axes .................................................................................
FEDERAL
In c o m e ite m
Table 118. RATIOS OF INCOME OF INSURED COMM ERCIAL BANKS OPERATING TH R O U G H O U T 1974 IN THE U N ITE D STATES
(S T A T E S A N D O T H E R A R E A S ) 1
BANKS GROUPED ACCORDING TO A M O U N T OF DEPOSITS
Banks w ith deposits o f Less
than
$1 m illio n
$1 m illio n
to
$2 m illio n
$2 m illio n
to
$5 m illio n
$5 m illio n
to
$ 1 0 m illio n
$10 m illio n
to
$25 m illio n
$ 2 5 m illio n
to
$ 5 0 m illio n
$50 m illio n
to
$ 1 0 0 m illio n
$1 0 0 m illio n
to
$ 500 m illio n
$ 5 0 0 m illio n
to
$1 b illio n
$1 b illio n
or
m ore
Operating i n c o m e - t o t a l....................................................................
Incom e on loans2 ...............................................................................................
Inte re st on U.S. T reasury securities3 ............................................................
In te re st on S tate and local g o ve rn m e n t o b lig a tio n s 3 ..............................
In te re st and divid e n d s on o th e r securities4 ................................................
T ru s t d e p a rtm e n t incom e ................................................................................
Service charges on de p o sit a c c o u n ts ..............................................................
O th e r charges, com m issions, fees, e tc ............................................................
O ther o p e ra tin g in co m e 3 ...................................................................................
$100.00
64.81
16.43
.87
12.94
0
2.09
2.33
.53
$100.00
6 5.42
17.73
1.98
8.35
0
2.83
1.71
1.98
$100.00
66.81
14.08
4.0 0
9.17
.07
2.88
1.73
1.26
$100.00
67.33
11.36
6.87
8.12
.25
3.12
1.70
1.25
$100.00
68.83
9.29
8.74
6.50
.30
3.40
1.66
1.28
$100.00
70.24
7.52
9.41
5.71
.67
3.35
1.68
1.42
$100.00
71.14
6.47
9.3 4
5.45
1.38
2.90
1.80
1.52
$100.00
72.86
5.33
7.93
4 .3 5
2.58
2.47
2.42
2.06
$100.00
75.53
4.51
6.97
2.61
2.65
2.20
2.80
2.73
$100.00
78.15
2.98
4.55
1.99
2.92
1.35
2.00
6.06
Operating e x p e n se -to tal ..................................................................
Salaries and w a g e s ..............................................................................................
Pensions and o th e r b e n e fits ..............................................................................
Inte re st on tim e and savings d e p o s its ............................................................
Inte re st on b o rro w e d m o n e y 5. ........................................................................
O ccupancy expense o f bank premises, n e t ..................................................
F u rn itu re and e q u ip m e n t, e tc ...........................................................................
Provision fo r loan losses ...................................................................................
O ther o p e ra tin g expenses...................................................................................
65.87
31.75
3.49
13.57
.34
2.86
1.65
1.26
10.95
76.75
26.58
2.48
25.89
.09
2.79
2.18
2.63
14.11
80.09
20.88
2.45
35.90
.30
2.78
2.43
2.41
12.94
80.56
17.87
2.47
39.71
.52
2.67
2.31
2.71
12.30
81.53
16.23
2.54
4 2 .2 0
.83
2.79
2.26
2.69
11.99
83.99
15.87
2.62
4 3 .5 0
1.60
3.08
2.30
3.00
12.02
85.90
15.80
2.70
4 4 .4 7
3.04
3.2 6
2.36
2.94
11.33
87.47
16.04
2.87
4 1 .2 8
7.42
3 .52
2.68
2.77
10.89
88.09
15.00
2.81
38 .2 2
12.28
3.0 8
2.44
3.63
10.63
87.59
12.37
2.51
40.25
16.93
2.81
1.45
3.83
7.44
Incom e before income taxes and securities gains or losses
...................
34.13
23.25
19.91
19.44
18.47
16.01
14.10
12.53
11.91
12.41
Operating i n c o m e - t o t a l ..........................................................................................
Incom e before incom e taxes and securities gains o r losses...........................
N e t in c o m e ...................................................................................................................
7.29
2.49
1.90
7.16
1.66
1.22
7.10
1.41
1.00
7.04
1.37
1.00
7.05
1.30
.98
7.14
1.14
.90
7.20
1.02
.83
7.52
.94
.77
7.76
.92
.74
7.71
.96
.70
.01
0
.04
0
.06
.06
.07
.07
.06
.05
.06
.04
(7)
(7)
( 7)
(7)
( 7)
(7)
(7)
(7)
.07
0
.19
0
.17
.22
.24
.27
.25
.24
.30
.28
(7)
(7)
(7)
( 7)
(7)
(7)
(7)
(7)
In com e item
A m o u n ts per $10 0 of operating income
INCOME OF INSURED
BANKS
A m o u n ts per $100 o f total assets6
237
M e m o ran d a 8
Recoveries c re d ite d to reserves:
On loans .................................................................................................................
On s e c u r itie s .........................................................................................................
Losses charged to reserves:
On loans .................................................................................................................
On s e c u r itie s .........................................................................................................
238
Table 118. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1974 IN THE UNITED STATES
(S TAT ES A N D O T H E R A R E A S )1 - C O N T IN U E D
BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS
Banks w ith deposits o f In c o m e item
$1 m illio n
to
$2 m illio n
$2 m illio n
to
$5 m illio n
$ 5 m illio n
to
$10 m illio n
$10 m illio n
to
$2 5 m illio n
$ 25 m illio n
to
$ 50 m illio n
$50 m illio n
to
$100 m illio n
$ 1 0 0 m illio n
to
$5 0 0 m illio n
$ 5 0 0 m illio n
to
$1 b illio n
$1 b illio n
or
m ore
A m o u n ts per $ 1 0 0 o f to ta l c a p ita l a c co u n ts6
10.00
1.93
8.07
10.26
2.10
8 .14
11.72
2.46
9.22
12.74
3.02
9 .63
11.96
3 .5 4
8.29
11.54
3.96
7.39
1 0.94
4 .52
6.16
10.93
5 .20
5.42
11.51
5.08
6 .16
.04
0
.31
0
.58
.73
.89
.86
.75
.70
.88
.6 4
(7)
( 7)
(7)
(7)
( 7)
(7)
( 7)
(7)
.45
0
1.53
0
1.75
3.08
.01
3.5 2
.01
3.42
3.41
4.3 0
4.5 0
(7)
2.54
.02
.01
.01
( 7)
0
11.97
10.04
10.30
11.83
12.97
12.27
11.96
11.46
11.65
12.39
8.93
7.89
8.69
7.58
8.62
7.23
8.53
7.26
8.52
7.18
8.71
7.00
8.85
6.81
9.29
6.79
9.6 0
6.72
9.80
5.94
4 .46
6.31
.25
4 .60
3.90
6.03
.41
4.99
3 .82
6.20
.54
5.11
4 .14
6 .40
.62
5.27
4.36
6.55
.70
5.46
4.5 4
6.69
.71
5.75
4.5 7
6.73
.62
6.00
4 .59
6 .73
.53
6 .29
4.5 8
7.06
.48
6 .57
4.8 4
6.74
.3 0
7.25
29
260
2,103
3,160
4 ,627
1 ,942
931
634
93
84
INSURANCE
M e m o ra n d a 8
Recoveries c re d ite d to reserves:
On l o a n s .................................................................................................................
On s e c u r itie s ..........................................................................................................
Losses charged to reserves:
On loans .................................................................................................................
On s e c u r itie s ..........................................................................................................
11.97
1.71
10.26
DEPOSIT
N et in c o m e 9 .................................................................................................................
Cash d ivid e n d s declared on c o m m o n s t o c k ........................................................
N et a d d itio n s to cap ita l fro m in c o m e ..................................................................
FEDERAL
Less
than
$1 m illio n
A m o u n ts per $ 1 0 0 o f e q u ity ca p ita l6
Special ra tio s 6
In co m e on loans per $ 1 0 0 o f loans2 ....................................................................
In co m e on U.S. T rea sury securities per $ 1 0 0 o f U.S. T reasury securities3
Incom e on o b lig a tio n s o f States and p o litic a l subdivisions per $ 1 0 0
o f o b lig a tio n s o f States and p o litic a l s u b divisions3 .................................
Incom e on o th e r se cu ritie s per $ 1 0 0 o f o th e r securities4 ............................
Service charges per $ 1 0 0 o f dem and d e p o s its ...................................................
Interest paid per $ 1 0 0 o f tim e and savings d e p o s it s ......................................
N u m b e r o f banks, D ecem ber 3 1 ,1 9 7 4 ...............................................................
1T h is group o f banks is th e same as the group show n in ta b le 116 u n d e r heading "O p e ra tin g th ro u g h o u t the y e a r."
in c lu d e s Federal funds.
3 ln co m e fro m securities held in tra d in g accounts is in clu d e d in " O th e r o perating in c o m e ."
in c lu d e s in te re st and d ividends on securities o f o th e r U.S. G o ve rn m e n t agencies and corpo ra tio n s.
5 Includes in te re st on capital notes and debentures and Federal fu n d s purchased.
6 Ratios are based on assets and lia b ilitie s re p o rte d at end o f year.
7 Less th a n 0.005.
8 Includes o n ly recoveries c re d ite d , and losses charged, to reserves (see table 117, note 2).
9 R eported data are adjusted (see ta b le 115, no te 7).
CORPORATION
N et in c o m e ....................................................................................................................
Table 119. INCOME OF INSURED M U T U A L SAVINGS BANKS IN THE U N ITE D STATES (STATES AN D OTHER AR EA S ), 1 9 7 0 -1 9 7 4
(Amounts in thousands of dollars)
Incom e item
Operating i n c o m e - t o t a l .................................................................................................................
In te re s t and fees on real estate m ortgage loans, n e t ...........................................................................................
Interest and fees on real estate mortgage loans, gross .................................................................................
Less: Mortgage servicing fe e s ..............................................................................................................................
In te re s t and fees on o th e r loans ........................................................................................................
In te re s t on U.S. G ov e rn m e n t and agency se cu ritie s2 ........................................................................................
In te re s t on c o rp o ra te b o n d s ...........................................................................................................
In te re s t on S ta te , c o u n ty , and m u n ic ip a l o b lig a tio n s 2 ......................................................................................
In te re s t on o th e r bonds, notes, and d eb entures2
Operating e x p e n s e s -t o ta l...............................................................................................................
Salaries .................................................................................................................................................
Pensions and o th e r e m ploye e b e n e f it s ....................................................................................................................
In te re s t on b o rro w e d m o n e y ......................................................................................................................................
O ccup an cy expense o f b ank prem ises (in c lu d in g taxes, d e p re cia tio n , m aintenance, rentals), n e t . . . .
F u rn itu re and e q u ip m e n t (in c lu d in g re c u rrin g d e p re c ia tio n ) .......................................................................
A c tu a l net loan losses (c ha rge -offs less re co v e rie s )......................................................................................
O th e r op e ra tin g e xpe n se s................................................................................................................
1971
1972
1973
1974
3,874,870
2 ,9 6 3 ,8 5 9
4,529,014
3,27 5 ,8 5 9
5,295,449
3,690,871
6,064,895
4 ,1 7 1 ,5 2 0
6,483,654
4 ,5 0 3 ,2 1 4
3,031,157
67,298
3,344,057
68,198
3,760,908
70,037
4,240,926
69,406
4,570,902
67,688
154,230
163,675
26 8 ,3 7 0
546,0 3 3
12,789
178,126
3 5 2 ,2 9 7
726,6 6 5
30 ,857
283,506
414,3 5 9
7 3 0 ,1 3 2
52 ,982
35 ,1 0 7
27,6 8 8
75,489
105,592
27,669
53 ,5 3 8
91 ,856
126,256
30 ,0 7 2
6 8 ,449
116,901
148,781
35,771
110,943
3 3 7 ,8 4 4
4 0 3 ,9 4 0
7 4 3 ,9 44
4 7 ,0 2 8
1 25 ,7 18
170,27 3
2 7,8 75
1 23,818
520,8 6 2 1
2 1 7,536
4 7 ,0 7 2
20,327
60 ,6 5 5
22,603
1,363
151,306
581,693
243,446
5 5 ,944
7,862
71,113
28,365
3,3 2 8
171,635
671,818
270,353
63 ,8 8 2
6,713
8 2,820
32 ,237
4 ,500
211,313
811,689
3 0 7 ,0 3 0
72,567
28,907
9 6 ,1 2 8
37 ,1 0 4
8,994
260,959
938,705
3 4 4 ,3 04
83,3 38
6 6 ,11 0
11 4 ,206
4 3 ,8 1 5
1 0,034
27 6 ,8 9 8
69 3 ,9 8 6
3 ,3 54 ,0 0 8 1
3,947,321
4,623,631
5,253,206
5,544,949
2,987,200
3,418,845
3 ,0 5 8 ,6 4 5
3 6 0 ,2 0 0
3,943,233
3 ,3 9 2 ,7 9 8
5 5 0,435
4,480,901
3 ,5 6 7 ,5 9 5
9 1 3 ,3 0 6
4,916,724
3 ,6 0 7 ,1 7 0
1 ,3 09 ,5 54
366,808
528,476
680,398
772,305
628,225
Net realized gains (or losses) o n -t o ta l ............................................................................................
S ecurities ............................................................................................................................................
Real estate m ortgage lo a n s ..............................................................................................................
Real e s ta te ............................................................................................................................................
. .
O ther tr a n s a c tio n s ....................................................................................................................................
— 121 ,3721
— 9 1 ,7 6 0
- 2 6 ,3 3 4
-5 6 8
- 2 ,7 1 0
-5 8 ,2 8 6
- 4 4 ,2 9 0
-1 2 ,1 3 3
- 1 ,6 9 0
-1 7 3
-1 4 ,8 9 6
3,481
- 2 5 ,9 4 4
-5 0 9
8,076
-9 2 ,3 5 7
- 6 5 ,9 7 3
- 2 0 ,1 8 7
-6 7 3
- 5 ,5 2 4
-1 4 8 ,8 4 4
-1 1 1 ,5 0 1
- 3 8 ,5 5 6
588
6 25
o
34
o
q
Net income before t a x e s .................................................................................................................
245,4 3 6 1
470,190
665,468
679,948
479,381
Franchise and income ta x e s-to ta l ............................................................................
... .
Federal incom e t a x ..........................................................................................................................
State and local franchise and incom e t a x e s ..........................................................................................................
78,421
2 5,310
53,111
126,601
6 3,833
62 ,7 6 8
186,303
108,679
77,6 2 4
201,792
114,500
87 ,2 9 2
161,870
81,089
80,781
Net in c o m e ..................................................................................................................................
167,015 1
343,589
479,165
478,156
317,511
Less m inority interest in consolidated subsidiaries2 .........................................................................
239
Net operating income after interest and dividends on d e p o s it s .........................................................
BANKS
Net operating incom e before interest and dividends on d e p o s it s .......................................................
Interest and dividends on d e p o sits-to ta l ........................................................................................
Savings d ep o sits2 ............................................................................................................................................................
O th er tim e d ep o s its 2 ........................................................................................................................
INCOME OF INSURED
D ivid en d s on c o rp o ra te s to c k 2 ..............................................................................................................................
In com e fro m service o p e r a tio n s .................................................................................................................................
O th e r op e ra tin g in c o m e ................................................................................................................................................
1970
240
Table 119. INCOME OF IN SURED M U T U A L SAVIN GS BANKS IN THE UNITED STATES (STATES A N D OTHER A R EA S ), 1 9 7 0 -1 9 7 4 -C O N T IN U E D
(Amounts in thousands of dollars)
Incom e item
1974
1972
1973
4 8 6 ,2 3 4
16,513
534,229
19,630
56 1 ,6 9 5
27 ,8 0 5
3 6 9 ,1 6 6
3 2 ,4 0 6
73.661.663
1,156,181
4 ,4 3 7 ,6 6 6
1 1 ,9 3 2 ,3 5 5
5 2 ,3 6 4 ,7 5 9
2,3 0 9 ,4 9 8
75 ,5 2 0
1 ,3 8 5 ,6 8 4
82.995.606
1,329,972
5 ,7 4 0 ,0 9 7
1 5 ,0 3 3 ,3 8 8
5 6 ,5 5 3 ,6 0 2
2 ,5 6 6 ,4 6 0
1 16,406
1,655,681
90.850.840
1,6 7 6 ,2 1 6
6 ,2 9 9 ,0 8 2
16,2 3 8 ,9 8 3
6 1 ,6 0 0 ,1 7 8
2 ,9 6 7 ,7 4 0
170,868
1,897 ,7 7 3
94.426.708
1,8 2 5 ,0 6 6
5,950,081
16,4 1 0 ,8 9 6
6 4 ,6 9 5 ,6 8 9
3 ,2 5 0 ,9 6 0
2 0 7 ,1 2 5
2,086,891
1970
1971
1 8 8 ,4 8 4 1
M em oran da
Average assets and liabilities3
65.986.370
59,862,839
73.661.663
6 7 ,4 4 3 ,3 0 2
82.995.606
76 ,2 2 6 ,1 7 0
90.850.840
8 3 ,2 1 2 ,4 4 2
94.426.708
8 5 ,9 9 4 ,3 8 4
59,296,823
566,016
66,784,186
659,116
75,472,194
753,976
82,350,237
862,205
85,097,902
896,482
1,162,859
4 ,9 6 0 ,6 7 2
9 8 2 ,6 5 5
5,2 3 5 ,7 0 6
1,074,401
5,6 9 5 ,0 3 5
1,381,121
6 ,2 5 7 ,2 7 7
1,7 6 3 ,8 8 5
6,6 6 8 ,4 3 9
.........................................................................................................
27 ,5 0 5
3 0 ,1 3 4
32,866
3 5 ,6 6 8
3 7 ,4 9 4
N u m b e r o f b a n k s (e n d o f p e r i o d ) ..................................................................................................................
329
327
326
322
320
Liabilities and surplus a c c o u n t s -to t a l4 .............................................................................................
T o ta l d e p o s its ...................................................................................................................................................................
Savings and time deposits .......................................................................................................................................
....................................................................
........................................................................
..................................................................
Demand deposits
O the r l ia b i li t ie s
T o ta l surplus a c co u n ts4
N u m b e r o f e m p lo y e e s (e n d o f p e r io d )
1 F ig u r e s h a v e b e e n re v ise d to p r o v id e c o m p a r a b il it y w it h 1 9 7 1 - 1 9 7 4 d a t a - s e e page 2 2 8 f ° r in f o r m a t io n o n c h a n g e s in r e p o r t s in 1 9 7 1 .
2 D a t a are n o t a v a ila b le p r io r to 1 9 7 1 . S e e p a ge 2 2 8 .
3 F o r 1 9 7 0 , a v e ra g e s o f a m o u n t s f o r f o u r c o n s e c u t iv e o f f ic ia l call d a te s b e g in n in g w it h the e nd o f the p re v io u s y e a r a n d e n d in g w it h th e fa ll call o f th e c u r r e n t y e a r; f o r 1 9 7 1 - 1 9 7 4 , a v e ra g e s o f a m o u n t s
r e p o r t e d a t b e g in n in g , m id d le , a n d e nd o f ye a r.
4 A v e r a g e s f o r 1 9 7 0 h a v e b e e n re v ise d t o a g r o s s b a sis; see n o t e s to t a b le 1 1 0 .
INSURANCE CORPORATION
65.986.370
7 7 8 ,4 3 0
3,893 ,4 2 9
8,4 7 1 ,5 5 3
4 9 ,7 4 5 ,2 5 0
1,904,974
57,981
1,134,753
DEPOSIT
A s s e t s -to t a l4 .................................................................................................................................
Cash and due fr o m banks ............................................................................................................................................
U.S. G o vern m en t and agency se curities4 ................................................................................................................
O th er se curities4 .............................................................................................................................................................
Real estate m ortgage loans4 .........................................................................................................................................
O the r loans and d is c o u n ts 4 .........................................................................................................................................
O the r real estate .............................................................................................................................................................
A ll o th e r assets ................................................................................................................................................................
FEDERAL
.............................................................
Change in surplu s a ccou nts, net
D isco un t on securities, t o t a l2 ............................................................................................................................................
Table 120. RATIO S OF INCOME OF INSURED M U T U A L SAVINGS BANKS IN THE U N ITE D STATES (STATES A N D OTHER AR EA S ), 19 7 0 -1 9 7 4
Incom e item
1970
1971
1972
1973
1974
$100.00
76.49
3.98
$100.00
72.33
3.61
5.93
12.06
.28
1.67
2.33
.61
1.18
$100.00
69.70
3 .36
6 65
13.72
.58
1.74
2 39
.57
1.29
$100.00
68 .7 8
4 .6 8
6.83
12.04
.87
1.93
2 45
.59
1.83
$100.00
6 9.4 5
5.21
6.23
11.47
.73
1.94
2.63
!43
1.91
13.38
5.06
1.20
.48
1.58
.61
.15
4.30
14.48
5.31
1.29
1.02
1.76
.68
.15
4.27
A m o u n ts per $ 1 0 0 o f opera tin g incom e
O pera ting i n c o m e - t o t a l ........................................................................................................................................................
In te re s t and fees on real estate m ortgage lo a n s - n e t ...........................................................................................
In te re s t and fees on o th e r lo a n s ..................................................................................................................
In te re s t on U.S. G o v e rn m e n t and agency se cu ritie s2 .....................................................................................................
In te re s t on c o rp o ra te b o n d s ......................................................................................................
In te re s t on S ta te, c o u n ty , and m u n ic ip a l o b lig a tio n s 2 .........................................................................................
In te re s t on o th e r bonds, notes, and d eb entures2 ................................................................................................
D ivid e nd s on c o rp o ra te s to c k 2 .................................................................................................
In com e fro m service o p e r a tio n s .................................................................................................................................
O th e r o pe ra tin g in c o m e ..............................................................................................................
. .
17.91
.91
.71
12.84
5.37
1.24
.17
1.57
.63
.07
3.79
12.69
5.11
1.21
.13
1.56
.61
.08
3.99
N et o p e ra tin g in c o m e be fo re in te re s t and d ivid e n d s on d e p o s its ......................................................................................
8 6.56 1
87.16
87.31
86.62
85.52
In te re s t and d iv id e n d s o n d e p o s it s - t o t a l.................................................................................................................................
Savings d e po sits2 ..................................................................................................................................................................
O th e r tim e d ep o s its 2 ...................................................................................................................................................
77.09
75.49
67.54
7.95
74.46
64.07
10.39
73.88
58.82
15.06
75.83
55.63
20.20
N e t o p e ra tin g in c o m e a fte r in te re s t and div id e n d s on d e p o s its .........................................................................................
9 .4 7 1
11.67
12.85
12.74
9.69
N et realized gains (o r losses) o n - t o t a l ......................................................................................................................................
S e c u ritie s ........................................................................................................................................................................................
Real estate m ortgage lo a n s .....................................................................................................................................................
Real e s ta te ......................................................................................................................................................................................
O th e r tr a n s a c tio n s .......................................................................................................................................................................
— 3.14 1
— 2.37
-.6 8
-.0 2
-.0 7
- 1 .2 9
-.9 8
-.2 7
-.0 4
-. 2 8
.07
- .4 9
- .0 1
.15
-1 .5 3
-1 .0 9
-.3 4
- .0 1
-.0 9
-2 .3 0
-1 .7 2
-.6 0
-.0 1
.01
Less m in o r ity in te re s t in c o n s o lid a te d s u b s id ia rie s ...............................................................................................................
(5)
.00
(5)
.00
.00
10.38
12.57
11.21
7.39
N e t in c o m e b e fo re t a x e s ..................................................................................................................................................................
6.3 3 1
Franchise and in c o m e t a x e s - t o t a l ..............................................................................................................................................
Federal incom e ta x ....................................................................................................................................................................
S tate and local fra nch ise and incom e t a x e s .......................................................................................................................
2.02
.65
1.37
2.79
1.41
1.38
3.52
2.05
1.47
3.33
1.89
1.44
2.49
1.25
1.24
N e t in c o m e ...........................................................................................................................................................................................
4.3 1 1
7.59
9.05
7.88
4.90
241
BANKS
1 3.441
5.61
1.22
.52
1.57
.58
.04
3.90
INCOME OF INSURED
O perating e x p e n s e -to ta l .................................................................................................................
Salaries ............................................................................................................................................
Pensions and o th e r e m p lo y e e b e n e f it s ...................................................................................................
In te re s t on b o rro w e d m o n e y ......................................................................................................................................
O ccupancy expense o f b an k prem ises (in c lu d in g taxes, d e p re cia tio n , m aintenance, r e n t a l s ) - n e t .................
F u rn itu re and e q u ip m e n t (in c lu d in g re c u rrin g d e p r e c ia tio n ) ...................................................................................
A c tu a l ne t loan losses (cha rge -offs less re c o v e rie s )................................................................................................
O th e r o pe ra tin g e x p en ses..............................................................................................................................................
242
Table 120. RATIOS OF INCOME OF IN SURED M U T U A L SAVINGS BANKS IN THE U N ITE D STATES (STATES A N D OTHER A R EA S ),
1970— 1974— CONTINUED
Incom e item
1970
1971
1972
1973
1974
A m o u n ts per $ 1 0 0 o f to ta l assets3
6.15
.79
5.36
4.64
.72
-.0 8
.64
.17
.47
6.38
.81
5.57
4.75
.82
-.0 2
.80
.22
.58
6.68
.90
5.78
4 .93
.85
-.1 0
.75
.22
.53
6 .87
.99
5 .88
5.21
.67
-.1 6
.51
.17
.34
5.61
DEPOSIT
5.87
.79
5.08
4.52
.56
-.1 9
.37
.12
.25
FEDERAL
O perating i n c o m e - t o t a l ..................................................................................................................................................................
O perating e x p e n s e - t o t a l..................................................................................................................................................................
N et o p e ratin g in com e b e fo re in te re s t and d iv id e n d s on d e p o s its .......................................................................................
In te re s t and div id e n d s on d e p o s its - to ta l ..................................................................................................................................
N et o p e ratin g in com e a fte r in te re s t and divid e n d s on d e p o s its .........................................................................................
N et realized gains (o r losses)— t o t a l ..............................................................................................................................................
N et incom e be fo re t a x e s ..................................................................................................................................................................
Franchise and incom e ta x e s - to ta l ..............................................................................................................................................
N e t in c o m e ............................................................................................................................................................................................
Special ra tio s 3
6.05
6.20
6.26
7.09
5.12
6.56
6.14
6.49
6.53
6.94
5.22
8.41
6.58
6.46
6.77
9.55
5.44
7.64
6.79
6 .6 2
6 .96
10.39
5.78
4 .7 6
N u m b e r o f banks (end o f p e r i o d ) .................................................................................................................................................
329
327
326
322
320
1,
2.
3 , 4 g ee notes t0 ta b le 1 19.
5 Less th a n 0 .0 0 5 .
CORPORATION
5.96
8 .10
5.04
3.37
INSURANCE
In te re st on U.S. G o ve rn m e n t and agency securities per $ 1 0 0 o f U.S. G o ve rn m e n t and agency securities4..........
In te re s t and div id e n d s on o th e r se curities per $ 1 0 0 o f o th e r securities4 . .
...
..........................................
In te re s t and fees on real estate m ortgage loans per $ 1 0 0 o f real estate loans4 ..............................................................
In te re s t and fees on o th e r loans per $ 1 0 0 o f o th e r loans4 ....................................................................................................
Inte re s t and div id e n d s on de posits per $1 0 0 o f savings and tim e d e p o s its .....................................................................
N et incom e per $ 1 0 0 o f to ta l surplus a c c o u n ts4 .....................................................................................................................
BANKS CLOSED BECAUSE OF F IN AN C IAL D IFFICULTIES;
DEPOSIT INSURANCE DISBURSEMENTS
Table 121.
Table 122.
Table 123.
Number and deposits of banks closed because of financial difficulties, 1934-1974
Insured banks requiring disbursements by the Federal Deposit Insurance Corporation during
1974
Depositors, deposits, and disbursements in failed banks requiring disbursements by the
Federal Deposit Insurance Corporation, 1934-1974
Banks grouped by class of bank, year o f deposit payoff or deposit assumption, amount of
deposits, and State
Table 124.
Recoveries and losses by the Federal Deposit Insurance Corporation on principal disburse
ments for protection of depositors, 1934-1974
ro
£
FEDERAL
S ta tistics in th is re p o rt on fa ilu re s o f noninsure d banks are c o m p ile d
fro m in fo r m a tio n o b ta in e d fro m S tate b a n kin g d e p a rtm e n ts, fie ld super
vis o ry o ffic ia ls , and o th e r sources. T h e C o rp o ra tio n received no re p o rts o f
fa ilu re s o f n o ninsure d banks in 1974.
F o r d e ta ile d da ta regarding no nin su re d banks w h ic h suspended in th e
years 1 9 3 4 -1 9 6 2 , see th e A nnual Report fo r 19 63, pp. 27-41. F o r
19 63 -1 9 7 4 , see ta b le 121 o f th is re p o rt, and previous re ports fo r respective
years.
Sources o f data
Insured banks: b o o ks o f b a n k at date o f closing; and b o o k s o f F D IC ,
D ecem ber 31 , 1974.
C O R P O R A T IO N
D isbursem ents b y th e Federal D e p o s it Insurance C o rp o ra tio n to p ro te c t
d e p o sito rs are made w hen th e insured deposits o f banks in fin a n cia l d i f f i
cu ltie s are pa id o ff , o r w hen the de posits o f a fa ilin g ba nk are assumed by
a n o th e r insured b a n k w ith th e fin a n c ia l aid o f the C o rp o ra tio n . In de posit
p a y o ff cases, th e d is b u rs e m e n t is th e a m o u n t pa id b y th e C o rp o ra tio n on
insured deposits. In d e p o s it a s s u m p tio n cases, th e p rin c ip a l disbursem ent is
the a m o u n t loan ed to fa ilin g banks, o r th e price paid fo r assets purchased
fro m th e m ; a d d itio n a l disbu rsem e nts are made in those cases as advances fo r
p ro te c tio n o f assets in process o f liq u id a tio n and fo r liq u id a tio n expenses.
U n d e r its se c tio n 18 (c) a u th o r ity , th e C o rp o ra tio n has made disburse
m ents to th re e o p e ra tin g banks. The a m o u n ts o f these disbursem ents are
in clu d e d in ta b le 2 (page 7 ), b u t are n o t in c lu d e d in tables 123 and 124.
INSURANCE
Noninsured bank failures
DEPOSIT
Deposit insurance disbursements
Table 121. NUMBER AND DEPOSITS OF BANKS CLOSED BECAUSE OF FIN A N C IA L D IFFICULTIES, 1934-1974
N um ber
D e p o sits (in thou san d s o f dollars)
Insured
Year
9
26
69
77
74
60
43
15
20
5
2
1
1
5
3
5
4
2
3
4
2
5
2
2
4
3
1
5
1
2
7
5
7
4
3
9
7
6
1
6
4
" V
1
4
1
3
1
1
2
V
1
5
" V
4
2
1
4
1
" i«
2
8
506
3 ,8 1 6 ,8 9 9
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
3 7 ,3 3 2
1 3 ,9 8 8
2 8 ,1 0 0
3 4 ,2 0 5
6 0 ,7 2 2
160,211
1 4 2 ,7 8 8
2 9 ,7 9 6
1 9 ,5 4 0
12 ,5 2 5
1,9 1 5
5 ,6 9 5
494
7 ,2 0 7
10 6 7 4
9^217
5 ,5 5 5
6 ,4 6 4
3 ,3 1 3
45 ,1 0 1
2 ,9 4 8
11 9 5 3
1 1 *6 9 0
12 ,5 0 2
10 ,4 1 3
2,5 9 3
7,9 6 5
10,611
4,231
2 3 ,4 4 4
2 3 ,8 6 7
4 5 ,2 5 6
1 0 6 ,171
1 0 ,8 7 8
2 2 ,5 2 4
4 0 ,1 3 3
5 5 ,7 9 5
1 3 2 ,1 5 2
9 9 ,7 8 6
9 71 3 1 2
1,5751832
"l
1
5
7
4
3
9
7
6
1
6
4
1 4 1 ,7 0 0
3 ,6 7 5 ,1 9 9
4 1 ,1 4 7
3 ,6 3 4 ,0 5 2
3 5 ,3 6 4
583
592
528
1 .038
2,4 3 9
358
79
355
1 ,968
1 3 ,4 0 5
2 7 ,5 0 8
3 3 ,6 7 7
5 9 ,6 8 4
1 5 7 ,7 7 2
1 4 2 ,4 3 0
2 9 ,7 1 7
1 9 ,1 8 5
1 2 ,5 2 5
1 ,915
5 695
347
7 ,0 4 0
10 6 7 4
6 '6 6 5
5 ,5 1 3
3 ,4 0 8
3 ,1 7 0
4 4 ,7 1 1
998
11 9 5 3
11 ^330
11 ,247
8 ,2 4 0
2 59 3
6 ,9 3 0
8 ,9 3 6
3,011
2 3 ,4 4 4
2 3 ,4 3 8
4 3 ,861
10 3 ,5 2 3
1 0 *8 7 8
22^524
4 0 ,1 3 3
5 5 ,3 7 2
1 3 2 ,1 5 2
2 0 ,4 8 2
971 3 1 2
1,5 7 5 *8 3 2
147
16 7
2 ,5 5 2
42
3 ,0 5 6
143
390
1,9 5 0
360
1,2 5 5
2,1 7 3
1,0 3 5
1,6 7 5
1,2 2 0
429
1,3 9 5
2,6 4 8
4234
7 9 ,3 0 4
85
328
1,190
2 6 ,4 4 9
1 0 ,0 8 4
1,968
1 3 ,320
2 7 ,5 0 8
3 3 ,3 4 9
59,6 8 4
1 5 7 ,7 7 2
1 4 2 ,4 3 0
2 9 ,7 1 7
19,1 8 5
1 2 ,5 2 5
1,915
5 695
'3 4 7
7 ,040
10 6 7 4
M 75
5,513
3 ,4 0 8
3 ,170
1 8,262
998
11 9 5 3
1U30
1,163
8,240
2 593
6*9 3 0
8,936
3,011
2 3 ,4 4 4
2 3 ,4 3 8
43,861
103 523
10*878
22^524
4 0 ,1 3 3
5 5 *3 7 2
132152
20^482
971 3 1 2
1,5 7 5 *8 32
245
F o r in fo rm a tio n regarding each o f these banks, see table 2 2 in the 1 9 6 3 Annual Report (1 9 6 3 and p rio r years), and e xp lan atory notes to tables regarding b anks closed because of fin ancial difficu lties in su b se qu e nt annual reports. O ne noninsured
b a n k placed in receivership in 1 9 3 4 , w ith no d ep o sits at tim e of closing, is om itted (see table 22, note 9). D eposits are unavailable fo r 7 banks.
2 F o r in fo rm a tio n regarding these cases, see table 2 3 o f the Annual Report fo r 1963.
3 F o r in fo rm a tio n regarding each bank, see the Annual Report fo r 19 5 8 , pp. 4 8 - 8 3 and pp. 9 8 - 1 2 7 , and tables regarding d ep osit insurance disbu rsem en ts in su bsequent annual reports. D e posits are adjusted as o f D ecem b er 31, 1 974.
4 Revised.
DISBURSEMENTS
514
52
6
3
7
7
12
5
2
3
With
d isbursem ents
by F D I C 3
INSURANCE
134
61
32
72
84
81
72
48
17
23
5
2
1
2
6
3
9
5
5
4
5
4
5
3
3
9
3
2
9
3
2
8
9
8
4
3
9
84
6
3
6
4
Total
W ith o u t
d isbu rsem en ts
by F D I C 2
DEPOSIT
648
Total
Non
in su re d 1
AND
...............
................
...............
...............
................
...............
...............
...............
...............
................
...............
...............
...............
................
...............
...............
...............
...............
...............
...............
...............
...............
...............
...............
................
...............
...............
...............
................
................
...............
................
................
................
...............
...............
...............
................
................
...............
................
In sured
With
disbu rsem en ts
by F D IC 3
CLOSED
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
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
Total
W itho u t
disbursem ents
by F D I C 2
BANKS
Total ..............
T otal
Non
in su re d 1
246
Table 122. INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION DURING 1974
Class o f
b ank
N um b e r of
depositors or
acco u n ts1
Date o f
d eposit assum ption
F D IC
d isbursem ents2
A m e ric a n B ank & T ru s t
O rangeburg, S o u th C arolina
NM
6 6 ,2 3 2
S eptem ber 20, 1974
$ 6 1 ,2 8 8 ,7 3 6
S outh e rn Bank and T ru s t C om pany
G reenville, S o u th C arolina
207
T r i- C ity B ank
W arren, M ich igan
SM
6,517
S eptem ber 27, 1974
1 0,9 7 6 ,2 7 7
M ichigan N atio n a l B ank o f M acom b
W arren, M ichigan
2 08
F ra n k lin N a tio n a l Bank
N ew Y o r k , N .Y .
209
C ro m w e ll S tate Savings B ank
C ro m w e ll, Io w a
Case
num ber
Name and lo c a tio n
NM
6 3 0 ,0 0 0
O c to b e r 8 ,1 9 7 4
1 0 0 ,0 0 0 ,0 0 0
1,534
O cto b e r 9, 1974
1,946,301
1 ,1 0 0 ,8 0 2
$
9 ,1 0 4 ,9 5 2
1 ,8 8 1 ,9 0 5
O ther
securities
$ 1 8 ,8 2 4 ,0 5 8
3 9 ,4 5 0
$
9 7 ,5 9 4 ,1 1 2
$ 3 ,2 1 2 ,0 7 8
11,7 9 0 ,5 5 3
170,464
2 08
3 4 5 ,3 4 0 ,3 2 6
3 1 2 ,3 4 8 ,0 8 2
4 8 7 ,8 8 9 ,3 8 6
2 ,3 8 7 ,1 2 5 ,7 8 8
3 7 ,9 6 8 ,7 2 0
209
42 8 ,2 5 1
1 9 2 ,6 1 8
5 3 9 ,8 3 5
2 ,3 2 2 ,5 1 0
18,708
O ther
real
estate
$
T o ta l
O th e r
lia b ilitie s
D eposits
O the r
capital
accounts
Capital
sto ck
$
7,288,731
931,979
$ 6 ,8 8 4 ,3 3 7
2 4 ,4 2 1 ,8 3 0
$ 2 ,7 2 3 ,3 3 0
1,150,766
1 60,964
1 6 ,2 9 4 ,9 0 4
1 4 ,8 7 6 ,2 8 4
6,9 0 9
81 0 ,0 0 0
601,711
2,359,488
8 2 ,6 3 0 ,6 8 2
3 ,6 5 5 ,6 6 2 ,4 7 3
1 ,4 4 4 ,9 8 1 ,6 0 6
2 ,0 3 4 ,8 9 5 ,5 1 1
5 7 ,0 3 5 ,2 2 0
1 18 ,7 5 0 ,1 3 6
3 ,5 0 1 ,9 2 2
3 ,2 7 0 ,5 3 7
33 ,2 0 7
3 0 ,0 0 0
1 68 ,1 78
-0 -
1 Figures as d e te rm in e d b y F D IC agents a fte r a d ju s tm e n t o f b o o ks o f th e ba n k im m e d ia te ly fo llo w in g its closing.
2 In c lu d e s disb u rse m en ts m ade to D ecem ber 31 , 1974, plus a d d itio n a l disbursem ents required in these cases.
O th e r
assets
-0 -
$
1 4 7 ,1 3 6 ,8 8 8
$
1 1 2 ,7 0 2 ,9 9 7
$
CORPORATION
207
$ 1 0 ,5 8 5 ,3 7 0
U.S. G overn
m ent
o b lig a tio n s
B anking
house,
fu rn itu re and
fix tu re s
INSURANCE
D eposit
a ssu m ption
206
Cash and
due fr o m
banks
Loans,
discounts,
and
o ve rd ra fts
Iow a S tate Savings Bank
Creston, Iow a
L ia b ilitie s and capital a cco u n ts 1
Assets1
Case
num ber
E uropean-A m erican Bank
& T ru s t C o m pany
N ew Y o rk , N .Y .
DEPOSIT
N
FEDERAL
D e p osit
a ssu m ption
206
Assum ing b an k
Table 123. DEPOSITORS, DEPOSITS, AN D DISBURSEMENTS IN F A IL E D BANKS REQ U IR IN G DISBURSEMENTS BY THE
FED E R AL DEPOSIT INSURANCE CORPORATION, 1 9 3 4 -1 9 7 4
BANKS GROUPED BY CLASS OF BANK, YEAR OF DEPOSIT PAYOFF OR DEPOSIT ASSUMPTION, AMOUNT OF DEPOSITS, AND STATE
N u m b e r o f banks
T o ta l
P a y o ff
cases
Assum p
tio n
cases
T o ta l
P a yo ff
cases
A ssum p
tio n
cases
T o ta l
P a y o ff
cases
D isbursem ents by F D IC 1
(in thousands o f dollars)
Assum p
tio n
cases
Advances and
expenses2
Prin cip a l disbursem ents
T o ta l
P a y o ff
cases3
A ssum p
tio n
cases4
P a y o ff
cases5
Assum p
tio n
cases6
2,853,845
592,836
2,261,009
3,634,052
409,946
3,224,106
1,209,262
287,737
9 21,525
6,187
65,875
95
28
3 83
34
10
253
61
18
130
1,329,667
382,7 7 6
1,141,402
9 8 ,5 4 5
88,894
40 5 ,3 9 7
1 ,23 1 ,1 2 2
2 9 3 ,8 8 2
736 ,0 0 5
2,6 1 5 ,3 7 3
2 1 2,550
806,129
1 03,738
3 4 ,3 8 8
27 1 ,8 2 0
2 ,5 1 1 ,6 3 5
178,162
534,309
59 5 ,8 0 4
118,870
4 9 4 ,5 8 8
57,849
26 ,506
20 3 ,3 8 2
5 3 7,955
9 2 ,3 6 4
2 9 1,206
2,22 4
3 00
3,6 63
10,030
19,921
3 5 ,92 4
Y e a r7
1934 .....................................................
1935 .....................................................
1936 .....................................................
1937 .....................................................
1938 .....................................................
1939 .....................................................
1940 .....................................................
1 9 4 1 .....................................................
1942 .....................................................
1943 .....................................................
1944 .....................................................
1945 .....................................................
1946 .....................................................
1947 .....................................................
1948 .....................................................
1949 .....................................................
1950 .....................................................
1 9 5 1 .....................................................
1952 .....................................................
1953 .....................................................
1954 .....................................................
1955 .....................................................
1956 .....................................................
1957 .....................................................
1958 .....................................................
1959 .....................................................
1960 .....................................................
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
9
24
42
50
50
32
19
8
6
4
1
15,767
4 4 ,6 5 5
8 9,018
130,387
203,961
3 9 2 ,7 1 8
256,361
73,005
6 0,688
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
15,767
32,331
4 3 ,2 2 5
74,148
4 4 ,2 8 8
90,169
20,667
3 8,594
5,717
16,917
899
1 968
13*320
2 7,5 0 8
33,349
59,684
157,772
142,430
2 9,717
19,185
12,525
1,915
5,695
347
7,040
1 0,674
5*475
5*513
3,408
3 J 70
1 968
9^091
11,241
14,960
10,296
32 ,7 3 8
5,657
14,730
1,816
6,637
4 56
941
8,891
14,460
19,481
30 ,4 7 9
6 7 ,7 7 0
74 ,1 3 4
2 3 ,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
3,4 5 8
1 031
3J326
1,835
4J65
941
6,026
7,7 3 5
12,365
9,0 9 2
2 6,196
4 ,8 9 5
12,278
1,612
5,500
404
....
8,080
5,465
2,338
4 ,3 8 0
3,073
11,171
12,324
4 5 ,7 9 3
56,239
159,673
3 0 2 ,5 4 9
23 5 ,6 9 4
34,411
54,971
10,454
4 ,5 8 8
12,483
1*383
10,637
18,540
5*671
6 ,3 6 6
5,276
6 ,7 5 2
24*469
1 811
9,7 1 0
9 ,7 3 2
5,207
18*262
998
11,953
11,330
1 163
8,240
2 593
6*930
6,503
4,7 0 2
1 163
4*156
2 593
6^930
4,2 2 9
16,267
18,389
4 9 ,3 8 8
1 25,034
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 ,6 2 8
4 ,0 8 4
4 ,4 3 8
2,7 9 5
1 031
2>96
1,835
4J65
2,865
6 ,7 2 5
7,116
2 1,387
4 1 ,5 7 4
69 ,2 3 9
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
663
230
43
108
67
103
93
162
89
50
38
53
9
106
87
20
38
51
82
272
934
905
4 ,902
17,603
17,237
1,479
1,076
72
37
96
11
381
200
166
524
127
195
428
145
665
51
31
247
” 4
1
1
3
3
1
" V
27
25
24
28
24
7
14
1
1
1
1
5
3
4
4
2
3
2
2
1
1
DISBURSEMENTS
209
INSURANCE
297
DEPOSIT
506
Class of bank
N a t i o n a l ..............................................
State m e m b er F .R .S .........................
N o n m e m b e r F .R .S ............................
AND
A ll b a n k s ......................................
BANKS CLOSED
C la ssifica tion
D eposits1
(in thousands o f dollars)
N um ber o f depositors1
C la ssificatio n
T o ta l
P a y o ff
cases
A ssum p
tio n
cases
T o ta l
P a yo ff
cases
Disbursem ents by F D IC 1
(in thousands o f dollars)
D eposits1
(in thousands o f dollars)
N um ber o f d e p o sito rs1
N u m b e r o f banks
Assum p
tio n
cases
T o ta l
P a y o ff
cases
A ssum p
tio n
cases
5
2
7
3
1
4
8,301
4
5
1
3
4
107
109
62
71
57
50
27
12
S tate
A la b a m a .............................................
A rk a n s a s .............................................
C a lif o r n ia ...........................................
C o lo r a d o .............................................
C o n n e c tic u t ......................................
83
86
37
35
21
21
6
6
1
1
1
4
7
5
6
2
2
6
3
3
2
3'
4
24
23
25
36
36
29
21
6
4
2
1
1
1
3 8 ,347
83,370
92 ,1 7 9
160,000
2 0 9 ,8 1 8
2 8 0 ,3 0 6
266 ,3 0 6
256,931
284 ,8 0 9
150,547
6 6 ,2 3 2
3 3 5 000
6 3 0 ,0 0 0
29,695
65,512
57,287
73,908
7 0,334
85,353
4 3,947
126,916
12,481
27,403
2
1
2
3
9,170
5,446
3 5 6 ,0 5 9
11,492
5,379
2,059
4,541
17,890
2,312
5,379
3
5
3
1
" 4
7
"
36 433
19,934
14,363
1,012
4,729
6 ,544
20,407
31,850
23,655
8,379
Assum p
tio n
cases4
P a y o ff
cases5
8,936
6,201
6,201
154
2 3,444
2 3,438
42 ,8 8 9
774
1 0,878
19,230
13,744
10,958
735
8,126
346
595
630
35
241
3 4 1,317
704,283
2 3 ,4 4 4
2 3 ,4 3 8
43,861
103,523
10,878
2 2 ,5 2 4
40 ,1 3 3
55,372
132,152
2 0 ,482
9 7 1 ,3 1 2
1,575,832
945,501
1,575,832
1 9,230
13,744
11,431
8,732
8,126
5,572
3 7 ,443
4 9 ,1 7 4
160,913
16,275
396 ,3 1 7
173,201
8,652
17,858
3 4 ,8 9 2
86,092
139,484
194,953
222,359
130,015
2 72,328
123,144
6 6 ,232
335 000
630,000
6 ,418
17,759
2 2 ,3 1 5
53,869
7 6,462
163,086
185,619
2 0 1 ,8 8 0
199,594
21 7 ,4 0 9
112,703
9 3 1 ,9 5 5
1 ,444,982
4,947
13,920
12,921
2 6,265
2 7 ,8 8 8
67 ,7 7 7
48 ,4 4 3
100,707
4 0 ,1 7 6
66 ,9 0 2
1,471
3,839
9,3 9 4
2 7 ,6 0 4
4 8 ,5 7 4
95 ,3 0 9
137,176
101,173
159,418
150,507
112,703
9 3 1 ,9 5 5
1,444 ,9 8 2
5,000
12,906
15,615
35,521
4 4 ,2 6 7
9 4 ,8 7 5
95 ,2 3 6
120,306
95 ,4 1 4
157,801
6 0.589
3 7 1 .7 3 0
100,00U
4 ,3 0 9
11,554
10,549
20,426
22,0 6 8
49 ,6 5 3
3 3 ,1 8 0
79,246
9,7 0 0
4 7 ,0 5 2
7,111
905
3 3 8,169
9,180
6 ,170
2,538
9 7 9 ,2 5 3
18,593
1,526
3,9 8 5
1,942
4 6 ,2 2 0
3,7 9 7
1,526
2,185
596
93 3 ,0 3 3
14,796
3,567
1,720
3 9 7 ,5 9 8
8,417
1,242
2,572
1,576
12,946
2,1 9 0
1,242
8,301
36 433
19,934
15,817
9 5 ,4 2 4
4 ,729
12 850
2 7 ,374
31 ,4 3 7
71,950
2 3 ,655
3 4 9 ,6 9 6
704,2 8 3
2
6
P a y o ff
cases3
8,936
1,454
9 4 ,412
12,850
2 0 ,830
11,030
4 0 ,1 0 0
9,011
3 4 ,0 4 0
7 4,605
20,482
25,811
972
1 02,749
22,5 2 4
3 1 ,1 2 2
21 ,3 3 2
57,547
7,612
29,4 0 8
53,821
16,275
16,924
473
7 ,997
5,572
29,831
19,766
107,092
3 7 9 ,3 9 3
173,201
292
66 6
734
3 64
931
691
1,352
5,066
15,095
2 2,199
4 5 ,2 2 2
62,0 5 6
4 1 ,0 6 0
8 5 ,714
110,749
6 0 ,5 8 9
3 7 1 ,7 3 0
100 ,0 0 0
88
209
164
408
691
1,053
745
1,223
571
4 69
566
995
144
3 8 4 ,6 5 2
6,2 2 7
94
43
1 ,232
187
8
A ssum p
tio n
cases6
123
1,258
1,094
4 ,27 7
1,455
7,24 0
544
2,345
154
173
611
2,339
3,70 9
6,891
9,20 3
7 ,21 0
2 6 ,07 5
7,57 8
1,041
889
91
48
1,490
1,623
FEDERAL DEPOSIT INSURANCE CORPORATION
Banks w ith deposits o f
Less th a n $ 1 0 0 ,0 0 0 .........................
$ 1 0 0 ,0 0 0 to $ 2 5 0 ,0 0 0 ..................
$2 5 0 ,0 0 0 to $ 5 0 0 ,0 0 0 ..................
$5 0 0 ,0 0 0 to $ 1 ,0 0 0 ,0 0 0 ...............
$ 1 ,0 0 0 ,0 0 0 to $ 2 ,0 0 0 ,0 0 0 ..........
$ 2 ,0 0 0 ,0 0 0 to $ 5 ,0 0 0 ,0 0 0 ..........
$ 5 ,0 0 0 ,0 0 0 to $ 1 0 ,0 0 0 ,0 0 0 . . . .
$ 1 0 ,0 0 0 ,0 0 0 to $ 2 5 ,0 0 0 ,0 0 0 . . .
$ 2 5 ,0 0 0 ,0 0 0 to $ 5 0 ,0 0 0 ,0 0 0 . . .
$ 5 0 ,0 0 0 ,0 0 0 to $ 1001000,000 . . .
$ 100,0 0 0 ,0 0 0 to $ 50 0 ,0 0 0 ,0 0 0
$ 5 oo! ooo! ooo to $1 ,0 00 ,0 0 0 ,0 0 0 .
$1 0 00 0 0 0 0 0 0 o r m ore
5
2
7
5
7
4
A dvances and
expenses2
P rin cip a l disbursem ents
T o ta l
1961
...
. . . .
1962
...
..........
1963
1964 ..................................................
1965 .....................................................
1966 .....................................................
1967
1968 .....................................................
1969 .....................................................
1970 .....................................................
1 9 7 1 .....................................................
1972
................................................
1973 .....................................................
1974
......................................
248
Table 123. DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN FAILED BANKS REQUIRING DISBURSEMENTS BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, 1934-1974-CONTINUED
BANKS GROUPED BY CLASS OF BANK, YEAR OF DEPOSIT PAYOFF OR DEPOSIT ASSUMPTION, AMOUNT OF DEPOSITS, AND STATE
F lo rid a ................................................
G e o rg ia ................................................
Idaho ..................................................
Illin o is ................................................
In d ia n a ................................................
M aryland ...........................................
M a s sa ch u se tts...................................
M ic h ig a n .............................................
M in n e s o ta ...........................................
M is s is s ip p i...........................................
M issouri .............................................
M o n ta 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 ........................................
2
8
2
10
12
15
5
5
5
4
3
2
10
10
6
25
4
19
4
6
1
1
5
3
14
5
3
2
1
3
5
5
3
9
51
5
37
3
14
8
1
8
40
13
27
3
24
5
27
7
29
4
O r e g o n ................................................
P e n n s y lv a n ia ......................................
S outh C a r o lin a .................................
S o u th D ako ta ...................................
T e n n e s s e e ...........................................
2
12
30
3
23
12
Texas ..................................................
U t a h .....................................................
V e r m o n t .............................................
V ir g in ia ................................................
W a s h in g to n ........................................
40
West V irg in ia ...................................
W is c o n s in ...........................................
W yo m in g ...........................................
3
31
2
18
2
8
11
2
4
1
22
2
1
31
9
"2
1
1
4
1
1
y
1
8
1
22
8
1
3
9
2
■■
4
5
1
3
20
V l‘
1
1,725
8,797
2,451
44,379
12,549
23,824
6 ,7 1 5
39,925
8 998
9 ,710
5,736
3,824
18,964
8,998
1 8 ,088
2,891
20,961
22,567
32,701
172,607
2 ,650
1 651
6,643
23,655
10,452
2 650
1 651
15,924
9,0 4 6
162,155
49,057
1,500
7 ,773
1,780
532,458
3 1 ,480
849
7,773
17,577
651
12,357
613
3 7 ,9 1 9
17,457
17,665
1,959
1,894
54,656
13,595
2,668
1,870
1,894
28 ,9 7 2
3,933
14,997
89
2 5 ,6 8 4
9,6 6 2
24,3 6 4
5,052
15,522
9,7 4 6
5,450
8,535
4 ,3 5 8
5,213
9,746
15,829
694
10,309
4,5 6 6
23,501
194,950
818
334
828
20,482
14,028
818
334
3,7 3 8
3,019
180,922
10,731
215
1 1,644
10,985
880
113,692
1,780
4 1 8 ,7 6 6
2 1,716
1,095
11,644
296
21 0 ,6 2 4
4 9 ,1 2 2
296
161,502
899,621
10,408
14,103
13,751
27,650
28,440
3,677
6,760
7,585
20,149
871,181
6,731
7,343
6,1 6 6
7,501
1,590,421
3 ,266
3,8 3 0
7,222
18,920
13,286
1,421
1,552
2 ,345
11,053
1,5 7 7 ,1 3 5
1,845
2 ,278
4,877
7,867
3,439
168,834
6 8,080
12,515
12,358
1,230
4 3 ,8 2 8
403
11,412
9,993
2,209
125,006
6 7 ,6 7 7
1,103
2,365
2,6 7 0
8 4,595
113,553
2,988
1,942
1 ,368
14,340
136
2 ,862
1,620
90,716
3 ,2 5 4
11,057
35 ,7 1 5
4 ,179
72,500
18,216
3 254
134,534
5 992
108,102
8,687
12,638
2,310
3,72b
23 ,0 7 7
4,179
17,779
1,538
3 ,3 7 5
7,652
8,346
2 6,898
3,212
8,346
18,739
8,159
3 ,2 1 2
2,006
9,511
2,033
9 710
5,450
2,006
5,966
6,171
1,620
1,493
3 1,906
6 ,197
2,139
1,551
1,493
23^924
3,0 9 6
4 ,0 3 2
69
14,431
4 ,0 9 3
11,943
5,069
2^346
6,471
3,601
4 ,5 0 5
5,069
7,960
4 92
7,4 3 8
3,109
17,839
141,285
640
257
735
16,275
12,293
640
257
2,374
1,564
128,992
16,328
639
8,116
117
9 5 ,7 0 6
9 ,0 6 2
186
8,116
7,266
453
7,982
3,101
65
33
29
502
39
697
33
139
59
119
141
341
72
538
2 ,346
791
384
665
9
363
203
17
371
1,030
8,987
5
140
1,025
6
21
146
8
4 0 ,0 4 9
117
5 5 ,657
500
20,154
167,997
2,387
2,656
2,098
10,284
10,836
1,156
1,397
1,610
7,936
157,161
1,231
1,259
488
2,348
32
23
24
7
178
11,736
179
203
44
547
1,302
70 ,2 5 5
113,417
126
322
1,948
60 ,1 4 9
6 0 ,8 6 3
2,411
1,278
986
10,133
136
2,388
1,164
962
50,016
60 ,7 2 7
23
114
11
81
9,9 7 5
1,051
9
25
26 ,4 3 2
5 9 92
350
10,127
1,538
9 0 ,5 0 0
3 349
3^445
8,263
935
76,327
14,173
3 349
'1 8 6
4,3 9 6
935
1,317
1 458
7J88
1 458
5*096
2,092
54
3 ,5 4 5
2,033
202
3,2 5 9
3,8 6 7
75
26
28
1,874
284
21
22
301
505
512
11
202
439
19
249
1 A d ju s te d to D ecem ber 3 1, 1974. In assu m ption cases, n u m b e r o f depositors refers to num ber o f deposit accounts.
2 Exclu d es $ 6 3 8 tho usa nd o f n o nre co vera ble insurance expenses in cases th a t were resolved w ith o u t pa ym e n t o f claim s o r a disbursem ent to fa c ilita te assum ption o f deposits by a n o th e r insured b ank and o th e r expenses o f fie ld
liq u id a tio n em ployees n o t chargeable to liq u id a tio n a ctivitie s,
i n c lu d e s estim ated a d d itio n a l disbursem ents in active cases.
4 Exclud es excess c o lle c tio n s tu rn e d over to banks as a d d itio n a l purchase price at te rm in a tio n o f liq u id a tio n .
5These disbursem ents are n o t recoverable by th e C o rp o ra tio n ; th e y consist alm ost w h o lly o f fie ld p a y o ff expenses.
6 1ncludes advances to p ro te c t assets and liq u id a tio n expenses o f $62 ,0 5 0 thousand, all o f w h ich have been fu lly recovered by th e C o rp o ra tio n , and $ 3 ,6 3 6 thousand o f nonrecoverable expenses.
7 N o cases in 1962 requ ire d disbursem ents. D isbursem ents to ta ls fo r each year relate to cases occurring du rin g th a t year, in clu d in g disbursem ents made in subsequent years.
N O T E : Due to ro u n d in g d iffe re nce s, co m p o n e n ts m ay n o t add to totals.
INSURANCE DISBURSEMENTS
N ew Y o r k ...........................................
N o rth C a r o lin a .................................
N o rth D a k o t a ...................................
O h i o .....................................................
O k la h o m a ...........................................
2
14,082
9,410
2,451
82,298
30,006
BANKS CLOSED AND DEPOSIT
I o w a .....................................................
Kansas..................................................
K e n tu c k y ...........................................
Louisiana ...........................................
M a i n e ..................................................
5
10
2
22
20
T a b le 1 2 4 . R E C O V E R IE S A N D L O S S E S B Y T H E F E D E R A L D E P O S IT IN S U R A N C E C O R P O R A T IO N O N P R I N C I P A L
D IS B U R S E M E N T S F O R P R O T E C T IO N O F D E P O S IT O R S , 1 9 3 4 - 1 9 7 4
(A m ounts in thousands o f dollars)
1,209,262
596,302
403.624
51
455
88 6 ,2 4 5
3 2 3 ,0 1 7
3 0 1 ,7 1 9
29 4 ,583
4 0 3 .6 2 4
1934
1935
1936
1937
1 938
9
25
69
75
74
941
8,891
14,460
19,481
3 0,479
1939
1 940
1941
1 942
1943
60
43
15
1 944
1 945
1946
1947
1 948
2
Total ..........
Num ber
of
banks
Principal
disburse
ments2
Recoveries
to Dec.
3 1 ,1 9 7 4
Num ber
of
banks
Estimated
additional
recoveries
32,051
Principal
disburse
ments3
Recoveries
to Dec.
31, 1974
Estimated
additional
recoveries
371.573
39,120
371.573
158,407
11,809
720,893
20 0 ,632
190,913
188,823
27
25
24
2,865
6,725
7,116
21,387
1,932
5,730
6,090
20,147
930
99 5
1,025
1,241
28
24
7
14
1
4 1 ,5 7 4
69,239
11,602
9,213
1,672
40,219
66 ,025
11,225
8,816
1,672
1,355
3,214
37 8
396
1,099
1,768
265
1,724
2,990
1,099
1,768
26 5
1,665
2,349
369
1,385
2,552
3,986
1,885
1,369
5,017
2,183
2,601
1,885
577
5,017
258
230
213
230
213
913
2,346
663
654
2,346
66 3
28
' ' ' '2 3 0
‘ ' 23 0
47 3
7,997
326
7,403
5^572
29,831
5] 503
29,526
15
306
55
19,766
107,092
18,866
92 ,909
598
14,182
300
379,393
' 26,'531'
13,514
2 02,312
154,062
150,550
5,625
180,902
28,434
25
272
165,352
122,385
110,806
105,760
22,495
16,625
26
183
734
6,206
12,127
15,808
2 8,055
207
2,682
2,333
3,672
2,425
9
24
42
50
50
941
6,026
7,735
12,365
9,092
734
4,274
6,397
9,718
7,908
207
1,752
1,338
2,647
1,184
67 ,7 7 0
74 ,1 3 4
23,880
10,825
7,172
60 ,6 1 8
7 0,338
23 ,2 9 0
10,136
7,048
7,152
3,796
591
32
19
123
26,196
4,895
12,278
1,612
5,500
20,399
4,313
12,065
1,320
5,376
5,797
582
213
292
123
1,503
1,768
26 5
1,724
2,990
1,462
1,768
2 65
1,665
2,349
40
40 4
36 3
40
1949
1 950
1951
1952
1953
2,552
3 ,986
1,885
1,369
5,017
2,183
2,601
1,885
577
5,017
1 954
19 5 5
1956
1957
19 5 8
913
6 ,784
3,4 5 8
1,031
3 ,026
654
6,554
3,2 4 5
1,031
2,998
1959
1 960
1961
1963
1 964
1,835
4,7 6 5
19,230
13,744
1,738
4 ,765
4,699
18,792
11,786
108
322
1,502
330
1,636
1 965
1966
1967
19 6 8
1969
11,431
8,732
8,126
5,572
37 ,443
5,996
8,138
6,779
5,503
36 ,4 5 5
103
15
834
1 970
1971
1 972
1973
19 7 4
49 ,1 7 4
160,913
16,275
3 9 6 ,3 1 7
173,201
4 1 ,1 8 2
122,435
8,241
3 7 ,6 6 4
13,514
6,8 3 5
30 ,0 0 2
4 ,034
2 0 6 ,5 0 3
154,062
Y ear4
20
5
1
1
6,201
688
54
641
4,438
2.795
1,031
2.796
4,208
2,582
1,031
2,768
1,835
4,765
6,201
19,230
13,744
1,738
4 ,765
4,699
18,792
11,786
4,725
508
1,244
55
155
10,958
735
8,126
5,670
735
6,779
1,155
8,475
4,000
152,150
5,625
29,408
53,821
16,275
16,924
7,612
22,316
29,526
8,241
11,133
"
54
641
369
1,385
"7 9 2
258
97
108
32 2
1^502
33 0
1,636
4,580
145
508
T .2 4 4
528
155
6,237
15,820
4,034
4,191
855
8,475
4,000
1,600
1 1ncludes estimated losses in active cases. N o t adjusted for interest or allowable return, which was collected in some cases in which the disbursem ent was fully recovered,
i n c l u d e s estimated additional disbursem ents in active cases.
3 Exclu de s excess collections turned over to banks as additional purchase price at term ination of liquidation.
4 N o case in 19 6 2 required disbursements.
Note: Due to rounding differences, c om ponents may not add to totals.
1
173,201
INSURANCE CORPORATION
Estimated
additional
recoveries
FEDERAL DEPOSIT
Recoveries
to Dec.
31, 1 974
Status
A c t iv e .........
Te rm in a ted ..
Deposit assum ption cases
Deposit payoff cases
Principal
disburse
ments
Num ber
of
banks
250
Liquidation
status and year
of deposit payoff
or deposit
assum ption
M A X IM U M INTEREST RATES ON TIM E A N D S AV IN G S DEPOSITS
Table 125.
M axim um interest rates payable on tim e and savings deposits in federally insured nonmember
m utual savings banks
Table 126.
M axim um interest rates payable on tim e and savings deposits fo r commercial banks
252
Table 125. MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS
IN FEDERALLY INSURED NONMEMBER MUTUAL SAVINGS BANKS1
(Percent per annum)
E ffe c tiv e date
E ffe c tiv e date
O ct. 1,
19662
Savings d e p o s it s .............................................
5
T im e deposits
M u ltip le m a tu r ity :
9 0 days to 1 y e a r ..............................
1 to 2 y e a r s ........................................
2 years o r m o re ...................................
Single m a tu rity :
Less th a n $ 1 0 0 ,0 0 0 :
9 0 days to 1 y e a r .......................
1 to 2 y e a rs ...................................
2 years o r m o r e ............................
$ 1 0 0 ,0 0 0 o r m ore:
3 0 to 59 d a y s ..............................
6 0 to 89 d a y s ..............................
90 to 179 d a y s ............................
180 days to 1 y e a r.......................
1 year o r m o r e ............................
5
5
5
Jan. 21,
1970
5
June 24,
1970
5
May 17,
1973
Savings dep o sits...............................................
5
b%
5%
5%
6
5%
6
51/4
53/4
6
51/4
5%
6
5J4
5%
6
51/4
53/4
6
6 1/4
*
*
*
*
*
*
*
61
/2
6%
7
7/4
S%
7
TA
T yp e o f deposit
T im e deposits (m u ltip le and s in g le -m a tu rity )3 :
Less than $ 1 0 0 ,0 0 0 :
90 days to 1 y e a r ..............................
1 year to TA y e a r s ...........................
TA years o r m o r e ..............................
M in. d e n o m in a tio n
o f $ 1 ,0 0 0 :
4 to 6 years4 ................................
6 years o r m o r e ...........................
G overnm ent u n i t s ...........................
$1 0 0 ,0 0 0 or m o r e ...................................
NOW accounts5 ...............................................
J u ly 1,
1973
N ov. 1,
1973
J a n . 1,
1974
N ov. 27,
1974
Dec. 23,
1974
5 1/4
51/4
51
/4
5 1/4
5%
5%
5%
6'A
61
A
6%
5%
61/2
6%
5 3/4
6 Y2
6%
BY?
6%
*
TA
TA
7'A
TA
TA
7%
7%
5
5
*
*
*
5
*
5%
6%
*M a x im u m rate ceilings suspended.
1 Excludes fe d e ra lly insured n o n m e m b e r m u tu a l savings banks in M assachusetts; these rates are available fro m the FD IC . The F D IC regulated Massachusetts n o n fe d e ra lly insured m u tu a l savings banks fro m January 21, 1970 to
J u ly 31, 1970. The Massachusetts C om m issioner o f Banks began regulating inte re st rates on deposits o f n o n fe d e ra lly insured m u tu a l savings banks on J u ly 31, 1970. The F D IC reassumed th is re g u la to ry p o w e r on S eptem ber
20, 1973. Rate ceilings fo r n o n fe d e ra lly and fe d e ra lly insured banks have been identical since then.
2 M u tu a l savings banks in A laska w ere granted a 5% p e rce n t rate c e ilin g fro m O cto b e r 1 ,1 9 6 6 , to June 3 0 ,1 9 6 7 . Also, a "g ra n d fa th e r clause" p e rm itte d them to co n tin u e paying a higher rate on c e rtific a te s issued before
S eptem ber 22, 1966. T h is was extended on June 30 , 1967.
3 The d is tin c tio n betw een single- and m u ltip le -m a tu rity deposits was e lim in a te d e ffe ctive J u ly 1 ,1 9 7 3 .
4 Between J u ly 1 and O cto b e r 31, 1973, th e re was no c e ilin g fo r 4 -year ce rtific a te s w ith m in im u m deno m in a tio n s o f $ 1 ,0 0 0 . T h e a m o u n t o f such c e rtific a te s th a t a bank co u ld issue was lim ite d to 5 percent o f its to ta l tim e
and savings deposits. Sales in excess o f th a t a m o u n t were subject to a 6% p e rce n t ceiling th a t applied to tim e deposits m a tu rin g in 2'A years o r m ore. E ffe c tiv e w ith th e N ovem ber 1 ,1 9 7 3 ceiling rate, th e re is no lim ita tio n on
th e a m o u n t o f these ce rtific a te s th a t banks m ay issue.
N e g o tia b le O rder o f W ith d ra w a l (NO W ) acco u n ts w ere in tro d u c e d in June 1 972 in Massachusetts and in S eptem ber 1972 in N ew Ham pshire. Before Federal regulations w ere imposed on January 1, 1974, th e in te re st rate
ceilings on N O W accounts w ere th e same as th e rates on savings deposits in each State.
FEDERAL DEPOSIT INSURANCE CORPORATION
T y p e o f d e p os it
Table 126. MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS FOR COMMERCIAL BANKS1
(Percent per annum)
E ffe c tiv e date
T y p e o f d e p o s it
Nov. 1,
1933
Savings d eposits:
12 m o n th s o r m o r e .....................................................................................
Less th a n 12 m o n t h s ...................................................................................
3
3
J a n .1,
1936
2 /2
V2
V/2
3
3
4
314
4
V/2
V/2
3
3
4
3 1/2
V/2
V/2
1
1
4
4
4
1
V/2
VA
3
3
3
3
2/4
V/2
V/2
2
2
1
Jan. 1,
1957
Jan. 1,
1962
J u ly 17,
1963
Nov. 24,
1964
3V2
Savings d e p o s it s .............................................
O th e r tim e d ep o s its 2 :
M u ltip le m a t u r it y 3 :
3 0 to 89 d a y s ......................................
90 days to 1 y e a r ..............................
1 to 2 years ........................................
2 years o r m o r e .................................
Single m a tu r ity :
Less th a n $ 1 0 0 ,0 0 0 :
30 days to 1 y e a r .......................
1 to 2 y e a rs ...................................
2 years o r m o r e ............................
$ 1 0 0 ,0 0 0 o r m ore:
30 to 59 d a y s ..............................
60 to 89 d a y s ..............................
9 0 to 179 d a y s ............................
1 80 days to 1 year ....................
1 y e a r o r m ore ............................
4
Sept. 26,
1966
4
4
4
4
5
5
5
Jan. 21,
1970
4/4
434
5
5/4
5%
5/4
5
534
4 y2
51
/z
51/2
5/4
51
/2
E ffe c tiv e date
A p r. 19,
1968
4
5 y2
4
4
5
51/2
5%
6
cv
0/4
5
514
5%
(4 )
(4 )
(4 )
(5 )
(5 )
T yp e o f d eposit
Savings deposits .............................................
O th e r tim e deposits (m u ltip le and s in g le -m a tu rity ):
Less th a n $ 1 0 0 ,0 0 0 :
30 to 89 days . .
90 days to 1 y e a r ..............................
1 to 214 y e a r s ......................................
214 years o r m o r e ..............................
M in im u m d e n o m in a tio n o f
$ 1, 0 0 0 :
4 to 6 y e a rs ...................................
6 years o r m o r e ............................
G overnm ent u n i t s ............................
$ 1 0 0 ,0 0 0 o r m o r e ...................................
J u ly 1,
1973
5
5
N ov. 1,
1973
5
Nov. 27,
1974
Dec. 23,
1974
5
5
5
5
5
5 1/2
5 1/2
514
514
6
6
6
6
614
614
614
614
(6)
7%
7%
VA
V/2
VA
V/2
*
*
*
*
RATES ON TIME AND SAVINGS DEPOSITS
J u ly 20,
1966
4
4
4 1/2
454
4
E ffe c tiv e date
T y p e o f d e po sit
Dec. 6,
1965
INTEREST
O th e r tim e de po sits2 :
12 m o n th s o r m o r e .....................................................................................
6 m o n th s to 12 m o n th s ..............................................................................
90 days to 6 m o n t h s ...................................................................................
Less th a n 90 d a y s ........................................................................................
(30 to 89 days)
F e b .1,
1935
^M a x im u m rate ceilings suspended.
6 Between J u ly 1 and O cto b e r 31, 197 3 , th e re was no ce ilin g fo r 4-year c e rtifica te s w ith m in im u m denom in a tio n s o f $ 1 ,0 0 0 . The a m o u n t o f such ce rtific a te s th a t a bank c o u ld issue was lim ite d to 5 percent o f its to ta l tim e
and savings deposits. Sales in excess o f th a t a m o u n t w ere sub je ct to the 614 percent ceiling th a t applies to tim e deposits m a tu rin g in 214 years or m ore. E ffe c tiv e w ith th e N ovem ber 1, 1973 ceiling rate, th e re is no longer a
lim ita tio n on th e a m o u n t o f these c e rtific a te s th a t banks m ay issue.
SO URCE:
Federal Reserve Bulletin,
D ecem ber 1966 and January 1975.
253
1 M a xim u m rates th a t m ay be paid by m em ber banks as established by th e Board o f G overnors under provisions o f R egulation Q. U nder th is re g u la tio n , th e rate payable by a m em ber b ank m ay n o t in any event exceed th e
m a xim u m rate payable b y S tate banks o r tru s t com panies on lik e deposits u nder the laws o f th e State in w h ic h th e m em ber b ank is located. E ffe c tiv e F ebruary 1, 1936, m a xim u m rates th a t m ay be paid by insured n o n
m em ber c o m m e rcia l banks, as established by th e FD IC , have been th e same as those in e ffe c t fo r mem ber banks. F o r rates on postal savings deposits, see B oard's Annual Reports.
2 F o r e xc e p tio n s w ith respect to ce rta in fo re ig n tim e deposits, see Federal Reserve Bulletin, O ctober 1962, p. 12 7 9 ; A ugust 1965, p. 10 9 4 ; and F ebruary 1968, p. 167.
3 M u ltip le ~ m a tu rity tim e deposits in clu d e deposits th a t are a u to m a tic a lly renewable at m a tu rity w ith o u t a c tio n by th e d e p o s ito r and deposits th a t are payable a fte r w ritte n n o tice o f w ith d ra w a l.
4 M a xim u m rates suspended on June 24, 1970.
5 M a xim u m rates suspended on M ay 16, 1973.
INDEX
J
2 57
INDEX
Absorptions:
O f insured banks requiring disbursements by FDIC. See
Banks in financial d ifficu ltie s.
O f operating banks, 1974 ......................................................................... 14-16
O f operating banks approved by FDIC, 1974 ..................... 14, 15, 33-167
O f operating bank denied by FDIC, 1 9 7 4 ........................................ 168-172
Regulation o f ..............................................................................................12-13
Admission o f banks to insurance. See also Applications fro m banks:
Applications fo r, 1974 ............................................................................. 10-11
Number o f banks adm itted, by class of bank, 1974 .............................. 186
American Bank & T r u s t ............................................................................... 4,7-8, 246
A pplications from banks ....................................................................10-13, 178-179
Areas outside continental United States, banks and branches located in:
Number, December 31, 1974 ................................................... 189, 197-198
Assessments fo r deposit in s u ra n c e ............................................................. 25-27, 28
Assets and liabilities o f F D I C ............................................................................. 23-25
Assets, liabilities, and capital o f banks. See also Deposits:
Commercial banks:
Changes during 1974 ............................................................................. x i -x ii
Foreign, o f U.S. b a n k s ............................................................................. 206
Grouped by insurance status,
June 30, 1974, and December 31, 1974 ................................. 207-214
Sources o f data .........................................................................................229
Insured commercial banks:
Am ounts, December call dates, 1964, 1970-1974 ................... 217-219
A m ounts, June 30, 1974, and December 31, 1974
by class of bank ........................................................................... 207-214
Major categories, average, 1966-1974 ................................................... 231
Percentage d istrib u tio n , by size o f bank, 1974 .......................... 224-226
Percentages o f items, by size o f bank, 1974 ........................................222
Mutual savings banks:
Changes during 1974 ...........................................................................xii-xm
Grouped by insurance status, June 30, 1974, and December
31, 1974 ......................................................................................... 215-216
Sources o f data ........................................................................................ 211
Insured mutual savings banks:
A m ount, December call dates, 1970-1974 ................................. 220-221
Major categories, average, 1970-1974................................................... 240
Percentages o f items, by size o f bank, 1974 ........................................223
Assets, purchase of, by FDIC from banks in financial d iffic u ltie s ...................3-4
Assumption o f deposits o f insured banks w ith financial aid o f FDIC.
See Banks in financial difficulties.
A tto rn e y General o f the United S ta te s....................................................................13
A tto rn e y General o f the United States, summary
reports on absorptions ..................................................................................41-168
A u d it o f F D I C ..............................................................................................................30
Bad-debt reserves. See Valuation reserves.
Bank Merger A c t o f 1 9 6 0 .................................................................................... 12-13
258
FE D E R A L DEPOSIT INSURANCE CORPO RATIO N
Bank ownership, changes, regulation o f ................................................................. 19
Bank performance, 1974 .................................................................................... x i - x i m
Bank Protection A c t o f 1968 ............................................................................. 19-20
Bank supervision. See Supervision o f banks; Examination of
insured banks.
Banking offices, number of. See Number o f banks and branches.
Banks in financial d ifficu ltie s:
Insured banks requiring disbursements by FDIC:
Assets and liabilities o f ..................................................................................246
Deposit size o f ................................................................................................248
Deposits protected, 1934-1974 ............................................... 4,5,6, 247-249
Disbursements by FDIC, 1934-1974 ..................................... 5,6,7, 247-250
Failures in 1974 ............................................................................................. 5-8
Loans made and assets purchased by F D IC ................................................... 7
Location by State, 1934-1974 .......................................................... 248-249
Losses incurred by d e p o s ito rs ...........................................................................6
Losses incurred by FDIC ........................................................................ 7, 250
Number of, 1934-1974 ..................................................................................245
Number o f deposit accounts, 1934-1974 ........................................ 247-249
Recoveries by FDIC on assets acquired, 1934-1974 ....................... 5,7,250
Noninsured banks:
Number and deposits o f commercial banks closed,
1934-1974 ........................................................................................... 244-245
Banks, number of. See Number o f banks and branches.
Board o f Directors o f FDIC. See Federal Deposit Insurance Corporation.
Board o f Governors o f the Federal Reserve System. See Federal Reserve
authorities.
Bradford Trust C o m p a n y .........................................................................................6-7
Branches:
Establishment approved by FDIC, 1974 ............................................... 11-12
Exam ination of, 1973 and 1974 .............................................................10, 11
Number of. See Number of banks and branches.
Call reports. See Assets, liabilities, and capital ot banks;
Reports from banks.
Capital o f banks. See Assets, liabilities, and capital o f banks; Banks in
financial difficu ltie s ; Income o f insured commercial banks;
Exam ination o f insured banks.
Cease-and-desist proceedings ...................................................................... 14-15,16
Charge-offs by banks. See Income o f insured commercial banks;
Income o f insured mutual savings banks; Valuation reserves.
Class o f bank, banking data presented by:
A bsorptions ............................................................................................. 14, 186
Income o f insured commercial banks, 1974 ................................... 233-234
Insured banks requiring disbursements by FDIC, 1934-1974 .............. 247
Number o f banks and banking offices, 1 9 7 4 .......................... 186, 190-198
Number o f banks and d e p o s its ....................................................................199
Classification o f b a n k s ............................................................................................. 185
Closed banks. See Banks in financial difficulties.
Commercial banks. See Assets, liabilities, and capital o f banks; Deposits;
Income o f insured commercial banks; Number of banks and branches.
IN D EX
259
C om ptroller of the C u rre n c y ............................................................... 6,13,16,22-23
Consolidations. See Absorptions.
Consumer C redit Protection A c t ...........................................................................176
Credit, bank. See Assets, liabilities, and capital o f banks.
Crime reports received by F D IC ............................................................................... 20
Demand deposits. See Assets, liabilities, and capital o f banks; Deposits.
Department o f Housing and Urban D evelopm ent...............................................178
Deposit insurance, applications fo r ................................................................. 10-11
Depository Institutions Amendments o f 1974 ................................................... 175
Deposits insured by FDIC:
Estimated insured deposits, December 31, 1934-1974 ..................... 28-30
Increase in m axim um per d e p o s ito r ................ xm -xiv,28,30,175,180-181
Survey of, on June 30, 1974 ...........................................................................20
Deposits o f: See also Assets, liabilities, and capital o f banks:
Banks closed because of financial difficu ltie s, 1934-1974 . ................... 245
Commercial banks:
By insurance status and type o f bank, and type o f account,
June 30, 1974 ..................................................................................209
By insurance status and type o f bank, and type o f account,
December 31, 1974 ........................................................................ 213
By State and deposit size o f b a n k .......................................... 200-204
Insured commercial banks:
Average demand and tim e deposits, 1 9 6 6 -1 9 7 4 ............................ 231
By class o f bank, December 31, 1974 ............................................ 199
By deposit size o f bank, December 3 1 ,1 9 7 4 .................................199
December call dates, 1964, 1970-1974 .......................................... 218
Mutual savings banks, by insurance status, June 30, 1974, and
December 31, 1974 ....................................................................................216
Insured mutual savings banks:
Average demand and tim e deposits, 1970-1 9 7 4 ............................ 240
December call dates, 1970-1974 ......................................................223
Deposits, number o f insured commercial banks w ith given ratios o f
demand to total d e p o sits...................................................................................... 225
Directors o f FDIC. See Federal Deposit Insurance C orporation.
Disbursements. See Banks in financial difficu ltie s.
Dividends:
To depositors in insured mutual savings banks. See Income o f insured
mutual savings banks.
To stockholders o f insured commercial banks. See Income o f insured
commercial banks.
Earnings of banks. See Income o f insured commercial banks; Income o f
insured mutual savings banks.
Employees:
FDIC ........................................................................................................... 22-23
Insured commercial banks, number and
compensation, 1966-1974 ............................................................... 230-231
Insured mutual savings banks, number and
compensation, 1970-1974 ............................................................... 239-240
Equal Credit O p p o rtu n ity A c t ............................................................................... 176
European-American Bank & T rust C o m p a n y ................................................. 6, 246
260
F E D E R A L DEPOSIT INSURANCE CORPORATION
Exam ination o f insured banks:
By FDIC, 1974 .........................................................................................9-10,11
Regions and regional directors ...................................................................... vi
Expenses o f banks. See Income o f insured commercial banks;
Income o f insured mutual savings banks.
Expenses o f FDIC ................................................................................................25-29
Failures. See Banks in financial difficu ltie s.
Fair C redit B illing A c t ............................................................................................. 176
Fair C redit Reporting A c t .........................................................................................18
Federal Deposit Insurance C orporation:
Actions on applications ...........................................................................10-13
Assessments on insured b a n k s ................................................... ............. 25-27
A u d it .................................................................................................................. 30
Banks examined by, and subm itting reports t o ............................................ 8
Borrow ing power ............................................................................................. 25
Capital s to c k .......................................................................................................28
Consumer protection ............................................................................... 18-19
Coverage o f deposit insurance..........................xm -xiv, 28,30,175,180-181
Delegation o f a u th o rity ...................................................................... 178-179
Deposit insurance disbursements ...............................................3-4, 248-250
Deposit insurance fund (surplus) ...............................................24-25, 28-30
Directors (members o f the Board) ................................................... v, 22-23
D iv is io n s ..............................................................................................................iv
Employees .................................................................................................. 22-23
Examination o f b a n ks..................................................................................8-11
Fellowships aw arded.........................................................................................22
Financial statements, 1974 ...................................................................... 23-27
Income and expenses, 1933-1974 ................................................................. 28
Insured banks requiring disbursements by. See Banks in
financial difficulties.
Liquidation activities .........................................................................................4
Loans to, and purchase o f assets fro m , insured b a n k s ............................ 3-4
Losses incurred, 1934-1974 ............................................................... 4-7, 250
Methods o f protecting d e p o s ito rs ............................................................... 3-4
O fficials ................................................................................................................v
O rg a n iza tio n ...................................................................... ......................... . . . iv
Payments to insured depositors ................................................. 3-8, 246-250
Receiver, appointm ent a s ..................................................................................4
Recoveries ................................................................................................5,7,250
R egions................................................................................................................ vi
Regulation o f bank s e c u ritie s ................................................................. 18-19
Regulation o f interest ra te s ....................................................................18, 175
Reports from banks ..................................................................................20-21
Reports o f changes in bank o w n e rs h ip ........................................................ 19
Research.......................................................................................................20-22
Reserve fo r losses on assets a c q u ire d ......................................................24-26
Rules and re g u la tio n s ...........................................................................178-182
Sources and application o f funds ................................................................. 27
Supervisory activities ..................................................................................8-22
Surveys during 1974 .................................................................................. 20-21
IND EX
261
Training p rogram s............................................................................................. 20
W orking Papers completed in 1 9 7 4 ........................................................ 21-22
Federal Home Loan Bank Board ........................................................ 177-178, 181
Federal legislation, 1974 ........................................................................ \ . . 175-178
Federal Reserve authorities ........................................ 5,13,18-19,25,175-177,181
Federal Reserve member banks. See Class o f bank, banking data presented by.
Flood Disaster Protection A c t ............................................................................... 178
Franklin National B a n k ........................................................................ 5-7,24-25,246
General Accounting O ffic e .........................................................................................30
Gold, statement o f policy o n ........................................................................ 181-182
Housing and C om m unity Development A ct o f 1974 ........................................178
Income o f F D IC .................................................................................................... 25-29
Income o f insured commercial banks:
Am ounts of principal components:
A nnually, 1966-1974 ...................................................................... 230-231
By class o f bank, 1974 .................................................................... 233-234
By size o f bank, 1974 ...................................................................... 237-238
Classification o f income data ............................................................. 227-229
Developments in 1974 .....................................................................................xn
Ratios o f income items:
A nnually, 1966-1974 ............................................................................... 232
By size o f bank, 1974 ...................................................................... 237-238
Sources o f d a ta ................................................................................................229
Income o f insured mutual savings banks:
Am ounts o f principal com ponents,1970-1974 ...............................239-240
Developments in 1974 ............................................................................. xii-xm
Ratios o f income and expense items, 1970-1974 ............................ 241-242
Sources o f d a ta ................................................................................................229
Insolvent banks. See Banks in financial d ifficulties.
Insurance status, banks classified by:
Assets and liabilities of, June 30, 1974, and December 31, 1974 207-214
Changes in number o f, 1974 ............................................................... 186-187
Class o f bank and s iz e .................................................................................... 199
Income o f insured commercial b a n k s ............................................... 233-234
Number o f banking offices, by State, December 31, 1974 .......... 190-198
Insured banks. See Assets, liabilities, and capital o f banks; Banks in
financial d iffic u ltie s ; Deposits; Income o f insured commercial banks;
Income o f insured mutual savings banks; Number of banks and branches.
Insured commercial banks not members o f the Federal Reserve System.
See Class o f bank, banking data presented by.
Insured deposits. See Banks in financial d ifficu ltie s; Deposit insurance
coverage.
Insured State banks members o f the Federal Reserve System. See Class
o f bank, banking data presented by.
Interest rates:
Exem ption from usury la w s ........................................................................ 177
Maximum rates on deposits ................................................. 18,181,251-253
On debt obligations, regulation o f .............................................................177
Paid on d e p o s its .................................................................................... 232,242
262
F E D E R A L DEPOSIT INSURANCE CO RPORATION
Surveys o f:
Mortgage lending a ctivity and r a t e s .......................................................... 21
Rates paid by b a n k s...................................................................................... 21
Investments. See Assets, liabilities, and capital o f banks; Assets and
liabilities o f FDIC; Banks in financial difficulties.
Legislation relating to deposit insurance and banking:
Federal, enacted in 1974 .................................................................... 175-178
Loans. See Assets, liabilities, and capital o f banks; Banks in financial
difficulties.
Losses:
O f banks. See Income o f insured commercial banks; Income of
insured mutual savings banks.
O f F D I C ............................................................................................. 5,7,26,250
On loans, reserves for. See Valuation reserves.
Provision for, in insured banks, 1966-1974 ..............229-230,232,239,241
Mergers. See Absorptions.
Methods o f tabulating banking data. See Banking data, classification of.
Mortgage lending by insured commercial banks, survey o f ..........................20-21
Mutual savings banks. See Assets, liabilities, and capital o f banks;
Deposits; Income o f insured banks; Number o f banks and branches.
National banks. See Class o f bank, banking data presented by.
National Commission on E lectronic Fund Transfers.......................................... 176
National Housing A c t ................................................................................................177
New banks, 1974 ..................................................................................x i,186,188-189
Noninsured banks. See also Absorptions; Admission o f banks to insur
ance; Assets, liabilities, and capital o f banks; Banks in financial
d iffic u ltie s ; Classification o f banks; Class o f bank, banking data presented
by; Deposits; Number o f banks and branches; Reports from banks.
Number o f banks and branches:
Banks:
By insurance status and type o f bank, June 30, 1974, and
December 31, 1974 .............................................................186,210,214
By insurance status, type o f bank, number o f branches, and
State, December 31, 1974 ........................................................ 190-198
By State and deposit size o f b a n k ................................................. 200-204
By supervisory status and deposit size ................................................. 199
Changes during 1974 ................................................................. x i, 186-189
Branches:
By insurance status and type o f bank, December 31, 1 9 7 4 .............. 187
By insurance status, type o f bank, and State, December 31,
1 9 7 4 ................................................................................................ 190-198
Changes during 1 9 7 4 ........................................................................ 187-189
O f foreign b a n k s .........................................................................................xm
Insured commercial banks:
December call dates, 1966-1974 .......................................................... 231
Distributed by capital ratios and distrib u tio n o f assets and
deposits, December 31, 1974 ................................................... 224-226
Insured mutual savings banks:
December call dates, 1970-1974 .......................................................... 240
Noninsured banks by State, December 31, 1974............................ 190-198
IN D EX
26 3
U n it banks, by insurance status and State, December 31, 1974 . .190-198
Obligations o f banks. See Assets, liabilities, and capital o f banks.
Officers o f insured banks. See Employees.
O fficials o f F D I C ........................................................................................................... v
Operating banks. See Number o f banks and branches.
Payments to depositors in closed insured banks. See Banks in financial
d ifficu lties.
Personnel. See Employees.
Possessions, banks and branches located in. See Areas outside
continental United States, banks and branches located in.
Protection o f depositors. See Banks in financial d iffic u ltie s ; Deposit
insurance coverage.
Real Estate S ettlem ent Procedures A c t o f 1 9 7 4 ........................................ 177-178
Receivership, insured banks placed in. See Banks in financial d ifficu ltie s.
Recoveries:
By banks on assets charged o ff. See Income o f insured commercial
banks; Income o f insured mutual savings banks.
By FDIC on disbursements. See Banks in financial d ifficu ltie s.
Regions, F D I C ..............................................................................................................vi
Removal pro cee d in g s..................................................................................................17
Reports from b a n k s ............................................................................................. 20-21
Reserves:
O f FDIC, fo r losses on assets acquired ............................................ 5, 24-27
O f insured banks fo r losses on assets. See Valuation reserves.
W ith Federal Reserve Banks. See Assets, liabilities, and capital o f
banks.
Rules and regulations of the FDIC. See Federal Deposit Insurance
C orporation.
Salaries and wages o f insured banks. See Income o f insured commercial banks;
Income o f insured mutual savings banks.
Savings and loan associations................................................... 18,175,177-178,181
Savings and tim e deposits. See also Deposits ........................................................ x i i
Securities. See Assets, liabilities, and capital o f banks; Assets and liabilities o f
FDIC; Banks in financial difficulties.
Securities and Exchange C om m ission.............................................................18,175
Securities, bank, regulation o f ...........................................................................18-19
Securities Exchange A c t of 1934 ...................................................................... 18-19
Security, b a n k .......................................................................................................19-20
Selective W ithdrawal Program ..................................................................................10
Sherman A n titru s t A c t ................................................................................................13
Size o f bank, data fo r banks classified by am ount o f deposits:
Assets and liabilities, percentages of, insured banks, 1974 ......... 222-223
Banks requiring disbursements by FDIC, 1934-1974 ............................ 248
Income o f insured commercial banks, 1974 ................................... 235-236
Income ratios o f insured commercial banks, 1974 ........................237-238
Number and deposits o f all b a n k s ............................................................... 199
Num ber o f employees o f insured commercial banks, 1966-1974 . . . .231
Number o f insured commercial banks, grouped by ratios o f selected
items to assets and deposits, December 31, 1974 ....................... 224-226
Southern Bank and T rust C o m p a n y ................................................................. 8, 246
26 4
FE D E R A L DEPOSIT INSURANCE CORPORATION
Standby letters of credit .........................................................................................180
State banking a u th o ritie s .................................................................................... 4,8,10
State, banking data classified by:
Changes in commercial banks and branches, 1974 ....................... 188-189
Disbursements, deposits, and depositors in insured banks requiring
disbursements by FDIC, 1934-1974 ............................................ 247-249
Number and deposits o f commercial
banks, by deposit size o f b a n k ........................................................ 200-204
Number o f banks and branches, by class o f bank and type o f office,
December 31, 1974 ........................................................................... 190-198
Percentage o f banks insured, December 31, 1974 .......................... 190-198
State banks. See Class o f bank, banking data presented by.
Stockholders o f banks, net profits available for. See Income o f insured
commercial banks.
Supervision o f banks by F D I C ....................................................................................8
Suspension p ro ce e d in g s......................................................................................17-18
Suspensions. See Banks in financial d ifficulties.
Taxes paid by insured banks. See Income o f insured commercial banks;
Income o f insured mutual savings banks.
Term inations o f insurance fo r unsafe and unsound p ra c tic e s ..................... 14-16
Travelers checks and money orders, a b a n d o n e d ........................................176-177
T rust assets o f insured commercial banks, survey o f ............................................ 20
Truth-in-Lending A c t .........................................................................................18,176
U n it banks, by insurance status and State, December 31, 1974 ............ 190-198
United States National Bank ..................................................................................4-5
Valuation reserves. See also Assets, liabilities, and capital o f banks:
Am ounts held, June 30, 1974, and December 31, 1974 .............. 209-214
A m ounts held, December call dates, 1964, 1970-1974 ..........................219
V iolations o f law or regulations, banks charged w i t h ................................... 14-18
@FedFRASER