The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
1978 ANNUAL REPORT OF THE FEDERAL DEPOSIT INSURANCE CORPORATION Ill LETTER OF TRANSMITTAL FEDERAL DEPOSIT INSURANCE CORPORATION Washington, D.C., November 26, 1979 SIRS: In accordance with the provisions of section 17(a) of the Federal Deposit Insurance Act, the Federal Deposit Insurance Corporation is pleased to submit its annual report for the calendar year 1978. This report is a reprint of the report issued on March 15, 1979, expanded to include bank merger decisions, statistical tables and other updated information pertinent to the operations of the Corporation. Very truly yours, Irvine H. Sprague Chairman THE PRESIDENT OF THE SENATE THE SPEAKER OF THE HOUSE OF REPRESENTATIVES IV FEDERAL DEPOSIT INSURANCE CORPORATION V FE DE RA L DEPOSIT INSURANCE C OR POR ATI ON BOARD OF DIRECTORS Acting Chairman..................................................................................John G. Heimann Director ..................................................................................................William M. Isaac Comptroller of the Currency.............................. ............................John G. Heimann OFFICIALS Deputy to the Chairman..................................................................Lewis G. Odom, Jr. Special Assistant to the Chairman ..........................................Sherwin R. Koopmans Special Assistant to the Chairman ..................................................Douglas H. Jones Special Assistant to the Chairman ....................................................Leonard Lapidus Special Assistant to the Chairman ........................................................Harold Nathan Assistant to the Chairman..........................................................Alfred H. Teichler, Jr. Assistant to the Director..........................................................................Edwin B. Burr Special Assistant to the Director..................................................David B. Jacobsohn Special Assistant to the Director............................................................Alison L. Falls Assistant to the Director (Comptroller of the Currency)..................David C. Motter Executive Secretary....................................................................................Alan R. Miller Director; Division of Bank Supervision ....................................................John J. Early Acting General Counsel........................................................................Reford J. Wedel Controller ................................................................................................James A. Davis Director, Division of Liquidation ............................................................George W. Hill Director, Division of Management Systems and Financial Statistics...................................................................Robert P. Rogers Director o f Research ....................................................................Stanley C. Silverberg Director, Office of Corporate Audits ................ ..........................Robert D. Hoffman Acting Director, Office of Consumer Affairs and Civil Rights..............................................................................Carmen J. Sullivan Director, Office of Personnel Management......................................Jack C. Pleasant Director, Office of Employee Relations ..................................................Joe S. Arnold Assistant to the Board of Directors..................................................Sydney S. Sterns December 31, 1978 VI FEDERAL D EPO SIT IN S U R A N C E C O R P O R A T IO N R E G IO N S Regional Directors Atlanta Lewis C. Beasley 233 Peachtree St., N.E. Suite 2400 Atlanta, Georgia 30303 Boston Anthony S. Scalzi 60 State Street, 17th Floor Boston, Massachusetts 02109 Chicago W. Harlan Sarsfield 233 South Wacker Drive, Suite 6116 Chicago, Illinois 60606 Columbus Vacant 1 Nationwide Plaza, Suite 2600 Columbus, Ohio 43215 Dallas Quinton Thompson 350 North S t Paul Street, Suite 2003 Dallas, Texas 75201 Kansas City Robert V. Shumway 2345 Grand Avenue, Suite 1500 Kansas City, Missouri 64108 Madison James E. Halvorson 1 South Pinckney Street, Room 813 Madison, Wisconsin 53703 Memphis Roy E. Jackson 1 Commerce Square, Suite 1800 Memphis, Tennessee 38103 Minneapolis Robert P. Gough 730 Second Avenue South, Suite 266 Minneapolis, Minnesota 55402 New York Bernard J. McKeon 345 Park Avenue, 21st Floor New York, New York 10022 Omaha Burton L. Blasingame 1700 Farnam Street, Suite 1200 Omaha, Nebraska 68102 Philadelphia James L. Sexton 5 Penn Center Plaza, Suite 2901 Philadelphia, Pennsylvania 19103 Richmond John Stathos Eighth & Main Building, Suite 2000 707 East Main Street Richmond, Virginia 23219 San Francisco Charles E. Doster 44 Montgomery Street, Suite 3600 San Francisco, California 94104 December 3 1 ,1 97£ FEDERAL DEPOSIT Main 550 Office: 17th INSURANCE Street, CORPORATION N. W„ W a s h i n g t o n , D. C. 20429 VII CONTENTS Chairman's statem ent................................................................ PART ONE OPERATIONS OF THE CORPORATION Administration of the Corporation......................................................... Supervision of Banks............................................................................. Bank Closings and Liquidation Activities............................................... Consumer and Civil Rights Protection................................................... Finances of the Corporation.................................................................. xi 3 5 17 23 26 PART TWO ENFORCEMENT PROCEEDINGS Actions to terminate insured status....................................................... Cease-and-desist actions........................................................................ 37 37 PART THREE MERGER DECISIONS OF THE CORPORATION Bank absorptions approved by the Corporation.................................. 47 Bank absorptions denied by the Corporation........................................ 103 PART FOUR REGULATIONS AND LEGISLATION Legislation— 1978 ................................................................................. Rules and regulations............................................................................. 113 114 PART FIVE STATISTICS OF BANKS AND DEPOSIT INSURANCE Number of banks and branches............................................................ .120 Assets and liabilities of b a nks.............................................................. .141 Income of insured banks.........................................................................165 Banks closed because of financial difficulties; FDIC income, disbursements, and losses.................................................................. .181 VIII TABLES NUMBER OF BANKS AND BRANCHES: Explanatory note....................................................................................................... 120 101. Changes in number and classification of banks and branches in the United States (States and other areas) during 1 9 7 8 ............................ 122 102. Changes in number of commercial banks and branches in the United States (States and other areas) during 1978, by State........................ 124 103. Number of banking offices in the United States (States and other areas), December 31, 1978 Banks grouped by insurance status and class of bank, and by State or area and type of office .................................................................... 126 104. Number and assets of all commercial and mutual savings banks in the United States (States and other areas), December 31, 1978 Banks grouped by class and asset size .............................................. 135 105. Number, assets, and deposits of all commercial banks in the United States (States and other areas), December 31, 1978 Banks grouped by asset size and State .............................................. 136 ASSETS AND LIABILITIES OF BANKS: Explanatory note....................................................................................................... 106. Assets and liabilities of all commercial banks in the United States (States and other areas), June 30, 1978 Banks grouped by insurance status and class of bank .................... . 107. Assets and liabilities of all commercial banks in the United States (States and other areas), December 31, 1978 Banks grouped by insurance status and class of bank .................... 108. Assets and liabilities of all mutual savings banks in the United States (States and other areas), June 30, 1978, and December 31, 1978 Banks grouped by insurance status .................................................... 109. Assets and liabilities of insured commercial banks in the United States (States and other areas), December call dates, 1973-19 78 .............. 110. Assets and liabilities of insured commercial banks (domestic and foreign offices), United States and other areas, 1973-19 77 .......................... 110A. Assets and liabilities of insured commercial banks (domestic and foreign offices), United States and other areas, December 31, 1978 .. 111. Assets and liabilities of insured mutual savings banks in the United States (States and other areas), December call dates, 1 9 7 3-19 78 .. 112. Percentages of assets, liabilities, and equity capital of insured commer cial banks operating throughout 1978 in the United States (States and other areas), December 31, 1978 Banks grouped by amount of assets .................................................. 113. Percentages of assets and liabilities of insured mutual savings banks operating throughout 1978 in the United States (States and other areas), December 31, 1978 Banks grouped by amount of assets .................................................. 114. Distribution of insured commercial banks in the United States (States and other areas), December 31, 1 9 7 8 .................................................... 141 143 146 150 152 155 156 158 160 161 162 IX INCOME OF INSURED BANKS: Explanatory note........................................................................................................ 115. Income of insured commercial banks in the United States (States and other areas), 1 9 7 3 -1 9 7 8 .......................................................................... 116. Ratios of income of insured commercial banks in the United States (States and other areas), 19 7 3 -1 9 7 8 .................................................... 117. Income of insured commercial banks in the United States (States and other areas), 1978 Banks grouped by class of bank.......................................................... 118. Income of insured commercial banks operating throughout 1978 in the United States (States and other areas) Banks grouped by amount of assets .................................................. 119. Ratios of income of insured commercial banks operating throughout 1978 in the United States (States and other areas) Banks grouped according to amount of assets.................................. 120. Income of insured mutual savings banks in the United States (States and other areas), 1 9 7 3 -1 9 7 8 .......................................................................... 121. Ratios of income of insured mutual savings banks in the United States (States and other areas), 1973-19 78 .................................................... BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES: FDIC INCOME, DISBURSEMENTS, AND LOSSES Explanatory note........................................................................................................ 122. Number and deposits o f banks closed because o f financial difficulties, 1934-19 78 ................................................................................................ 123. Insured banks requiring disbursements by the Federal Deposit Insurance Corporation during 1978 .......................................................................... 124. Depositors, deposits, and disbursements in failed banks requiring dis bursements by the Federal Deposit Insurance Corporation, 19341978 Banks grouped by class of bank, year of deposit payoff or deposit assumption, amount of deposits, and State ...................................... 125. Recoveries and losses by the Federal Deposit Insurance Corporation on principal disbursements for protection of depositors, 1 9 34-19 78 . . . 126. Analysis of disbursements, recoveries, and losses in deposit insurance transactions, January 1, 1934-December 31, 1 9 7 8 ............................ 127. Income and expenses, Federal Deposit Insurance Corporation, by year, from beginning of operations, September 1 1 ,1 9 3 3 , to December 31, 1978 ............................................................................................................ 128. Protection of depositors of failed banks requiring disbursements by the Federal Deposit Insurance Corporation, 1934-19 78 ............................ 129. Insured deposits and the deposit insurance fund, 1 934-19 78 .............. 165 168 170 171 173 175 177 179 181 183 184 185 188 189 190 191 192 X BACKGROUND The Federal Deposit Insurance Corporation came into being during the economic and banking crises of the early 1930s, when thousands of banks were forced to close their doors. For over a century, it had proved impossible to overcome the impact of bank failures on noteholders and depositors. A number of States had tried various forms of insurance or guaranty plans, some with fair success, but all of these had become inoperative by 1933. While during the period 1886-1933 numerous attempts were made to provide insurance pro tection to bank depositors on a national rather than statewide basis, it took the severe depression of the 1930s to convince the people of the nation that positive measures were required to eliminate the dis astrous losses associated with bank failures. The Federal Deposit Insurance Corporation was created by the Banking Act of 1933 to protect depositors in the nation's banking system, and to promote safe and sound banking practices. The Cor poration accomplishes these purposes through a program of Federal deposit insurance and through the regulation and supervision at the Federal level of the more than 8,500 FDIC-insured State-chartered banks that are not members of the Federal Reserve System. Incorporated banks and trust companies that are engaged in the business of receiving deposits may participate in Federal deposit insurance. This insurance is mandatory for national banks and State bank members of the Federal Reserve System. Of the 15,205 banks in operation in the United States at year-end 1978, including com mercial banks and mutual savings banks, about 97 percent were insured by the FDIC. Each depositor in an insured bank is protected by Federal deposit insurance on the aggregate of all deposits held in the same right and capacity up to the maximum limit provided by the Federal Deposit Insurance Act. The maximum was $2,500 when Federal deposit insurance became effective on January 1, 1934. Over the 44-year life of the deposit insurance program, the amount has been increased several times, with the most recent increase becoming effective on November 27, 1974, when the general limit was raised to $40,000. XI CHAIRMAN'S STATEMENT An im provem ent in the nation's general econom ic condition during 1978 resulted in a strengthening of the banking system. Preliminary p ro fit figures indicate a recovery by many banks from the depressed levels of the 1974-76 period. Industry improvement was reflected by the decline in the number o f banks on the FDIC's problem list. Also, seven insured banks failed in 1978, continuing the decline begun in 1977 from the large number of failures in 1975 and 1976. Maintaining the safety and sound ness of the banking system is a primary function of the FDIC. While the FDIC's activities in carrying out this function have grown as banks have grown in size and expanded their services, it also has been given responsibilities fo r enforcing compliance by banks with an increasing number of laws designed to protect consumers and to safeguard equal opportunities and civil rights. The FDIC's supervisory role was expanded greatly in 1978 by the enactment of tw o new laws— the Inter national Banking A ct of 1978 and the Financial Institutions Regulatory and Interest Rate Control A ct of 1978.The International Banking Act provides for Federal regulation of foreign banking activities in domestic financial markets. The Financial Institutions Regulatory and Interest Rate Control A ct covers several subjects relating to commercial and mutual savings banks, savings and loan associations, and credit unions. Among the provisions of the act most relevant to the FDIC are the expansion of the FDIC's enforcement powers, restrictions on loans by banks to their insiders, prohibitions on certain bank management interlocks, the authority over the establishment and operation of foreign branches by insured State nonmember banks, the authority to dis approve changes in control of insured State nonmember banks, and the rais ing of the deposit insurance limit on time and savings deposits in Individual R e tire m e n t A c c o u n ts and Keogh accounts to $100,0 00. Several regulations of major signifi cance to banks and their depositors were issued during the year. The automatic transfer of funds from sav ings to checking accounts maintained in the same institution was authorized. Regulations governing savings and time deposits were amended to author ize the issuance of 6-m onth "money m arket" certificates of deposit and 8year certificates paying a maximum of 7 -3 /4 percent for commercial banks. The payment of interest on Treasury Tax and Loan Accounts was also authorized. The Board in conjunction with the other Federal banking supervisory agencies has sought to obtain unifor mity in many regulations applicable to all types of banks, and in some cases to all types of depository financial institu tions. A number of uniform regulations and procedures were adopted during the past year, among them uniform rat ing systems for bank condition and electronic data processing and trust operations, guidelines for enforcing truth-in-lending laws, and f actors fo r evaiuating^country risk in fo re ig rijoans. The Board has also sought, wherever statutes permit, to simplify regulations and paperwork and, if possible, to avoid the im position o f additional regulations. The recent emphasis on consumer protection, equal opportunities, and civil rights continued in 1978. As a result, an increasing amount of the C orporation's resources has been devoted to these activities. Regulations were adopted late in the year to carry out the provisions of the Community Reinvestm ent Act. New regulations also were adopted relating to the FDIC's enforcement of the Fair Housing A ct and the Equal Credit Opportunity XII FEDERAL DEPOSIT INSURANCE CORPORATION Act, as it affects the home mortgage market. Some major studies are under way to assess the impact and effec tiveness of some of the consumer pro tection laws. They include a study on the Home Mortgage Disclosure Act and another on mortgage market trends in Brooklyn, New York. The study of the Home Mortgage Disclosure A ct is a comprehensive one being funded joint ly by the FDIC and the Federal Home Loan Bank Board. The m ortgage market study of Brooklyn will analyze real estate transactions from 1969 to 1978. Examiners will use these data when conducting Community Rein v e s tm e n t A c t e xam in a tio n s, and economic analysis will attempt to ex plain trends in this market. The examination process continues to be a focal point of FDIC regulatory activities; however, the examination perspective has changed in response to the changing banking industry and r e g u la to r y e n v ir o n m e n t. M o re emphasis is being placed on manage ment policies of banks and the effec tiveness of director oversight and less time is being directed to physical verification of assets held by banks. D ire c t c o m m u n ic a tio n w ith bank boards by the examining staff has increased, particularly in problem bank situations. Examination priorities have been established so that large banks or banks that present supervisory prob lems are examined more frequently and extensively than small banks or banks that do not present problems. U tiliz in g c o n d itio n and incom e reports submitted by banks, financial analysts at the FDIC monitor bank per fo rm a n c e betw een exam in a tio n s through a computerized information system. This system compiles data that permit an analyst to evaluate a bank's current condition. Finally, exam inations have been specialized due to the increasing scope of examinations and growth in tech nology and size of banks. Thus, the examination process has evolved from one report to a number of specialized examinations. Electronic data process ing, trust, and consumer protection and civil rights compliance examinations have been added in recent years. Over the years the Corporation's expanding activities have reflected the changes in the banking and regulatory environment. We at the FDIC feel that our organization has responded rapidly and effectively to these changes and are confident of our ability to do so in the future. John G. Heimann Acting Chairman [Ill I 111 I I iiiiuii mum OPERATIONS OF THE CORPORATION PART ONE 3 ADMINISTRATION OF THE CORPORATION Board of Directors. The FDIC is headed by a three-member Board of Directors, including the Comptroller of the Currency who acts as an ex-officio member. Two of the directors are appointed by the President with the advice and consent of the Senate for 6-year terms, and one of those direc tors is elected Chairman by the Board. The Comptroller is also appointed by the President, but for a 5-year term. As required by law, Mr. John G. Heimann, Comptroller of the Currency, became the acting Chairman on August 16, 1978, following the retirement of Mr. George A. LeMaistre. Mr. LeMaistre had served as a member of the Board since August 1, 1973 and as Chairman since June 1, 1977. Mr. William M. Isaac was appointed as a member of the Cor poration's Board of Directors on March 28, 1978. The remaining posi tion on the Board was vacant at yearend. Organizational changes. On Febru ary 16, 1978, the Board of Directors established a Budget and Management Committee. The committee is responsi ble fo r reviewing existing and proposed projects, programs, and routine operat ing procedures, in terms of (1) the Cor poration's mission and objectives, (2) cost effectiveness, (3) impact within and outside the Corporation, and (4) urgency and priority of resource alloca tions. The committee consists of the Deputy to the Chairman, the principal assistants to the other tw o members of the Board, the Controller, the Executive Secretary, and the General Counsel. On April 25, 1 9 78 , the Board adopted a resolution creating the Office of Congressional Relations. This office is responsible for congressional and legislative relations and related matters, and such other matters as may be designated by the Chairman and the Board of Directors. The office, which reports directly to the Board, was staffed by reassignment of certain positions and employees previously assigned to the Executive Office and Legal Division. On May 30, 1978, the Board dissolved the Office of Corpor ate Planning and the responsibilities of that office were assumed by the Divi sion of Research, the Budget and Management Com m ittee, and the Office of the Controller. Employees. The total employment of the Corporation increased by 82 in 1978 to a year-end total of 3,773. Approximately 70 percent of the Cor poration's employees were assigned to the Division of Bank Supervision, and about 74 percent of that division's employees were field bank examiners. During the year, the number of com missioned examiners rose by 115 to a total of 1,138 at year-end. The turn over rate for field examiners was 8.0 percent compared to 8.2 percent in 1977. Of the 158 examiners who left the FDIC during the year, 40 found employment in banks. The turnover rate for all employees excluding tem porary personnel and college students participating in the cooperative workstudy program was 16.6 percent in 1978, compared to 11.2 percent in 1977. The percentage of women in the C o r p o r a tio n 's g e n e ra l s c h e d u le w orkforce increased from 28.8 percent as of December 31, 1977, to 30.0 per cent as of December 3 1 ,1 9 7 8 . During the same 12-month period, the per centage of minorities rose from 13.1 percent to 13.8 percent. Continued progress is evident in the recruitment o f women and minorities for positions as bank examiners. As of December 4 FEDERAL DEPOSIT INSURANCE CORPORATION NUMBER OF OFFICIALS AND EMPLOYEES OF THE FEDERAL DEPOSIT INSURANCE CORPORATION DECEMBER 31, 1977 AND 1978 Unit Total............................................. Directors..................................... Executive O ffic e s ..................... Legal D ivision........................... Division of Bank Supervision .. Division of Liquidation............. Division of Management Systems and Financial S ta tistics ............................... Division of Research................. Office of Congressional Relations................................... Office of the Controller............ Office of Corporate Audits Office of Consumer Affairs and Civil Rights....................... Office of Employee Relations .. Office of Personnel Management........................... Total 1978 1977 3,773* 2 44 105 2,648 459 3,691* 2 54** 104 2,564 479 Washington office 1978 1977 Regional and field offices 1978 1977 1,201 2 44 86 376 194 1,183 2 54 87 372 195 2,572 0 0 19 2,272 265 2,508 0 0 17 2,192 284 191 31 191 17 191 31 191 17 0 0 0 0 5 186 34 0 178 30 5 170 34 0 163 30 0 16 0 0 15 0 13 9 11 9 13 9 11 9 0 0 0 0 46 52 46 52 0 0 'Includes nonpermanent employees on short-term appointment or when actually employed: 528 in 1978 and 511 in 1977. Nonpermanent employees include college students participating in the work-study program, clerical workers employed on a temporary basis at banks in process of liquidation, and other personnel. "Includes employees in the Office of Corporate Planning, which was dissolved in 1978. 31, 1977, 9.3 percent and 5.5 percent o f the examiner w orkfo rce were respectively women and minorities; by December 31, 1978, those percen tages had increased to 10.9 percent and 6.0 percent. Late in 1978, the FDIC adopted amendments to its regulations dealing with actual or apparent conflicts of interest by its employees. In general, these amendments (1) prohibit senior policym akers from obtaining credit from banks or affiliates of banks pri marily supervised by the FDIC, (2) establish guidelines for ownership of bank-related securities, (3) eliminate disclosure requirem ents fo r certain fin a n c ia l in te re s ts ow ned by an employee's spouse or dependents, (4) g re a tly increase the num ber o f employees required to file disclosure sta te m e n ts, (5) e sta b lish fo rm a l guidelines for processing these state ments, and (6) unite in one regulation the various disclosure systems used by the FDIC. During 1978, four petitions to serve as e xclu sive re p re se n ta tive s fo r b a rg ain ing u n its o f C o rp o ra tio n employees were filed with the Depart ment of Labor by labor organizations. By year-end 1978, tw o bargaining units of bank examiners and one unit of clerical employees were represented by a labor organization, tw o of which were added during the year; tw o petitions fo r representation o f other units remained pending. 5 SUPERVISION OF BANKS SUPERVISION OF BANKS The FDIC has some supervisory authority over all insured banks, but its primary supervisory responsibilities are for insured State-chartered banks that are not members o f the Federal Reserve System (insured State non member banks). As of December 31, 1978, there were 9,152 insured non member commercial and mutual sav ings banks with assets of $453.6 bil lion. These banks accounted for 60.2 percent of all the nation's banks and 30.5 percent of the assets of all banks in the United States. Exam ination a c tiv itie s . The FDIC's examination policy takes into account examination priorities, frequency, and scope, and specifies areas where the FDIC Regional Directors may use dis cretion while still maintaining a unifor mity of approach. Banks with known supervisory or financial problems are given first priority and receive a fullscale examination by the FDIC at least once every 12 months. Large banks (commercial banks w ith assets of $ 1 0 0 million or more and mutual sav ings banks with assets of $5 0 0 million or more) that do not present superviso ry or financial problems receive a fullscale examination during each 18month period. For smaller banks, a modified examination may be alter nated with a full-scale examination if the banks do not present supervisory or financial problems and meet criteria indicating satisfactory management, adequate capital, acceptable fidelity BANK EXAMINATION ACTIVITIES OF THE FEDERAL DEPOSIT INSURANCE CORPORATION IN 1977 AND 1978 Activity Number 1978 1977 Bank examination activities - total................................... 20,248 21,746* Safety and soundness examinations............................. Regular examination of insured banks not members of Federal Reserve System................. Re-examinations.............................................................. Other examinations.................................................. . 6,961 7,473 6,745 149 67 7,265 181 27 Consumer protection examinations............................... 6,684 7,061 Examinations of departm ents......................................... Trust departments............................................................ Data processing facilities................................................ 2,092 1,387 705 2,162 1,425 737 Investigations...................................................................... 2,755 3,007 Application review s.......................................................... New banks: State banks members of Federal Reserve System......................... New banks: Banks not members of Federal Reserve System............................................... New branches.................................................................. Mergers and consolidations............................................. Other.................................................................................. 1,756 2,043 26 9 136 877 103 614 160 931 122 821 *This total does not agree with the total shown in the 1977 Annual Report (27,502) because of a new table format. For more meaningful reporting, the number of branches examined (7,314) was deleted and the number of examinations of data processing facilities (237) and certain application reviews (821) were added. FEDERAL DEPOSIT INSURANCE CORPORATION S U P E R V IS O R Y C L A S S E S OF B A N K S IN T H E U N IT E D S T A T E S , D E C E M B E R 31, 1978 C o m m erc ial B an ks and M u tu a l Savings B anks N U M B E R OF B A N K S A S S E T S OF B A N K S 7 SUPERVISION OF BANKS coverage, good earnings, and adequate internal routine and controls. To increase director participation in the supervisory process, the examiner-incharge meets with either the board of directors or an appropriate committee o f th e board at each fu ll-s c a le examination, and more often if neces sary. The Regional Director or his designated representative participates in the meetings if the banks has been or may be form ally designated as a problem bank. The C o rp o ra tio n also re vie w s Reports of Examination for national and State-chartered banks that are members o f the Federal Reserve System (State member banks). The reports for large banks that are not of special s u p e rv is o ry concern are reviewed annually and the reports for smaller banks are reviewed at least once every 3 years. Examination reports of banks that are of special concern, regardless of deposit size, are reviewed as soon as they are made available. Reports on the condition of bank holding companies, prepared by the Federal Reserve, are also reviewed regularly. For the past several years, the Cor poration has participated with various S ta te b a n k in g d e p a r tm e n ts in programs that share or reduce routine examination activities. In 1978 the Corporation entered into a Divided Examination Program with the States of Missouri and New Jersey. That program was initiated in Georgia in 1977 and continued there in 1978. Under the program, problem banks, other banks in need of special supervi sion, and large banks are examined by both the FDIC and the State supervisor at least once each year. Examinations of the remaining banks are divided be tween the State supervisor and the FDIC and the supervisors alternate examination of these banks annually. Either supervisor may modify or cancel the divided examination arrangement w ithout prior notice. Problem banks. The general decline in the number of banks on the FDIC's list o f problem banks, w hich had peaked at 385 in November 1976, continued through 1978. A fter remain ing relatively steady during the first few months of the year, the list of problem banks declined to 342 by year-end 1978, a net reduction of 26 for the year. The continued reduction of the number of problem banks reflected the improvement in the economy and, in particular, the continuing improvement in the real estate sector and improved agricultural prices, areas that had caused problems for many banks in the recent past. The problem bank list is far from static and most banks do not remain on the list very long. During 1978, 192 banks were removed from problem status, while 166 banks were added to the list. Problems in the newly desig nated problem banks included lack of adequate liquidity, asset deficiencies re su ltin g fro m m ism a na ge m e nt or insider abuses, poor earnings, and inadequate capital. Of those banks on the list at the end of 1978, 50 percent had been in problem status for 18 months or less, while only 23 percent had been on the list for more than 3 years. In light of the FDIC's role as the insurer of bank deposits, the FDIC problem list includes national banks and State member banks as well as nonmember insured banks. There is some overlap between those banks considered by the Comptroller of the Currency and the Federal Reserve to be in need of close supervision and the banks on the FDIC's problem bank list, but not all banks being closely super vised by the Comptroller of the Curren cy and the Federal Reserve are on the FDIC's problem list. Many of those 8 FEDERAL DEPOSIT INSURANCE CORPORATION banks are strictly supervisory problems and do not represent an undue risk to the Corporation's insurance fund. The FDIC Regional Offices maintain similar lists of banks in need of close supervi sion but not formally designated as problems by the Corporation. For purposes of insurance risk exposure, the FDIC list divides the problem banks into three categories: Serious Problem - Potential Payoff: An advanced serious problem situation with an estimated 50 percent chance or more of requiring financial assistance from the FDIC. Serious Problem: A situation that threatens ultimately to involve the FDIC in a financial outlay unless drastic changes occur. O ther P roblem : A situation wherein a bank contains significant weaknesses but where the FDIC is less vulnerable. Such banks require more than ordinary concern and aggressive supervision. A review of the problem bank list since year-end 1973 indicates that about 30 percent of the banks that at one time or another were considered S erious P ro b le m -P o te n tia l P a y o ff ultimately did fail. An additional 10 per cent were merged with other banks without financial assistance from the Corporation. Financial assistance from N U M B E R OF PRO BLEM B A N K S 1 9 7 0 -1 9 7 8 Number of B anks 4 0 0 ------------------ SUPERVISION OF BANKS the Corporation was received by 2 per cent. Fifty percent received a less severe rating or were removed from problem status. The tw o most serious categories accounted for 93 of the problem banks at year-end 1978, down from 112 at the end of 1977. The number of problem banks at year-en d 1 9 7 8 broken d ow n by deposit size was: Deposit size Less than $25 million $ 2 5 -$ 5 0 million $ 5 0 -$ 100 million $ 1 0 0 -$ 5 0 0 million $5 0 0 million-$1 billion Over$1 billion TOTAL N um ber of banks 233 48 24 26 5 6 342 Banks on the problem list had total deposits of $ 6 4 billion. The total num ber of banks on the problem list repre sented only about 2 percent of all the banks insured by the FDIC. During 1978 the FDIC expanded its program of notifying the directors of nonmember banks when their bank is recommended for problem status, a program that had been tried experi mentally in tw o regions during 1977. Also, the examiner-in-charge and a representative of the Regional Office meet with the directors of a problem bank at th e co n c lu s io n o f each examination. This program is useful not only in keeping the directors of problem banks informed of the Cor poration's concern about their bank, but also in pointing out the respon sibilities and duties of the directors in developing and implementing correc tive programs. Trust departm ents. A State non member bank wishing to operate a trust department must receive the Cor poration's consent to exercise trust powers. The Corporation supervised 9 2,01 7 trust departments in State non member banks, with 58 new ones beginning operations, in 1978. Each of these trust departments is regularly examined by FDIC examiners. Beginning in 1978, the annual survey that trust departments submit to the FDIC was revised to require that banks report only those assets over which they exercise investment discre tion. The objective of this change is to provide more meaningful information a b o u t the e x te n t o f in ve stm e n t authority and control over trust and agency assets administered by bank trust departments. Examiner training. The Corporation has a well-established training program directed tow ard maintaining highly qualified examiners. Courses on such subjects as bank examination funda mentals, examination of computerized banks, accounting and auditing techni ques, financial analysis, and FDIC policies and regulations are offered. Content of these courses is updated and new courses are frequently added to the program in response to current banking developments. In recent years, extensive training on consumer protec tion laws and their enforcement has been provided. In 1978, EDP training was expanded to include a course in mini-computers and a course in bank analysis using externally available infor mation was added. U niform supervision. The Corpora tion works with the other Federal bank ing agencies to develop to the extent possible uniform supervisory policies and procedures and to elim inate unnecessary duplication of regulatory e ffo rt. An Interagency Supervisory Committee, which includes representa tives from the three Federal banking agencies as well as the Federal Home Loan Bank Board and the National Credit Union Adm inistration, was 10 FEDERAL DEPOSIT INSURANCE CORPORATION established in early 1 977 to coordinate certain supervisory policies and pro cedures. The committee already has a number of accomplishments, including the establishment of uniform bank, EDP, and trust rating systems; the con tinuation of a program for rating and reviewing shared national credits (loans of $ 2 0 million or more to one borrower shared by tw o or more banks); agree ment upon a definition of a concentra tion of credit; the adoption of the annual Trust Department Report and the Country Exposure Report; and the issuance of a joint policy statement and the establishment of examination pro cedures covering improper or illegal payments by banks and bank holding companies. The uniform interagency system for rating the condition and soundness of the nation's banks, adopted in 1978, is based upon an evaluation by examiners of five key measures of a bank's opera tion that reflect an institution's finan cial condition, compliance with banking statutes and regulations, and overall operating soundness. The specific dimensions appraised are capital ade quacy, asset quality, management, earnings, and liquidity. Based on its summary rating, a bank is placed in one of five groups, ranging from banks that are sound in almost every respect to those with weaknesses that require immediate corrective action and con stant supervisory attention. The agreement by the Federal bank supervisory agencies on what con stitutes the main elements of a bank's operation and condition, and on how these elements can be combined into an overall rating, provides a basis for comparable appraisals by the agencies of all of the nation's federally insured banks. The adoption of the uniform rat ing system also makes possible more meaningful reporting on the condition of the nation's banking system to the Congress and the public. The ratings fo r individual insured nonmember banks are confidential. A new uniform interagency trust rat ing system also was implemented in 1978. Bank examiners assess a trust d e p a rtm e n t's a d m in is tra tio n and operations in such areas as the depart ment's management capabilities, the soundness of the policies and pro cedures to carry out the department's fiduciary obligations, the quality of ser vice rendered to the public, and the effect of the department's activities on the soundness of the bank. As in the past, these ratings are considered con fidential by the banking agencies. Financial In stitution s Regulatory and Interest Rate Control A c t of 1978. Bank supervision in a number of areas was affected by a comprehen sive act passed late in 1978. The Financial Institutions Regulatory and Interest Rate Control A ct of 1978 (FIRIRCA) expands the Federal financial re g u la to ry agencie s' e n fo rc e m e n t powers, imposes restrictions on lend ing to "bank insiders," and authorizes the agencies to disapprove changes in control of financial institutions. The FIRIRCA also provides the FDIC with authority over the establishment and operation of foreign branches and foreign bank acquisitions by insured State nonmember banks. Other provi sions of the act that importantly affect the FDIC are the raising of the deposit insurance limit for time and savings d e p o s its in In d ivid u a l R etire m e n t Accounts and Keogh accounts from $ 4 0 ,0 0 0 to $ 1 00,0 00, and the exten sion of the authority to establish ceil ings on interest rates paid by financial in s titu tio n s on tim e and savings deposits. Interest rate regulations. The FDIC amended its regulations to perm it insured State nonmember banks to transfer funds automatically from an SUPERVISION OF BANKS individual's savings account to a checking or other account of the same depositor. The FIRIRCA subsequently imposed a limitation requiring that the interest rate that could be paid on sav ings deposits from which automatic transfers may be made was not to exceed the maximum rate of interest a commercial bank may pay on savings deposits. The FDIC amended its regula tions to limit the maximum rate payable by mutual savings banks on savings deposits subject to automatic transfer authorizations to not more than the commercial bank rate. Another amendment made in 1978 provides fo r a money market certificate of deposit. This is a variable rate time deposit of $ 1 0 ,0 0 0 or more w ith a maximum rate equivalent to each week's Treasury auction discount rate on 6-m onth Treasury bills and w ith a fixed term of 26 weeks. This deposit category is designed to permit banks to compete for short-term money market funds. The regulations were also amended to provide for a new category of 8-year time deposits w ith a 7 -3 /4 percent maximum interest rate for commercial banks and an 8 percent maximum for mutual savings banks. Individual Retire ment Account, Keogh Plan, and public unit time deposits were made eligible for the 8 percent rate. Effective May 1 1 ,1 9 7 8 , an amend ment was made to allow insured State nonmember banks to pay interest on Treasury tax and loan accounts (TTLs). According to recent Treasury regula tions, interest must be paid on such accounts that are in the nature of over night borrowings. In effect, the Treas ury regulations require payment of a higher rate of interest than the rate which normally may be paid on a bank's short-term funds. The amend ment to the FDIC regulation has the effect of exempting TTLs from the interest rate restrictions in Section 11 329.10 by expanding the regulation's exceptions to include obligations of both the United States and its agen cies. E n fo rce m e n t proceedings. Upon finding that an insured State nonmem ber bank has operated in an unsafe or unsound manner or has violated an applicable law, rule, regulation, or w rit ten agreement entered into with the FDIC, the FDIC may initiate a ceaseand-desist proceeding if the bank does not correct the violations or unsound banking practices. If the bank does not observe a cease-and-desist order, the FDIC may seek enforcement in a U.S. District Court or it may initiate proceed ings to terminate deposit insurance. Also, where an insured bank's condi tion has become unsound, the FDIC may initiate proceedings to terminate the bank's deposit insurance. The FDIC may issue cease-anddesist orders under Sections 8(b) and 8(c) of the Federal Deposit Insurance Act. During 1978, there were 51 such actions authorized by the Board of D ire c to rs w h ic h resulted in the issuance of 26 final orders under Sec tion 8(b) and 5 temporary cease-anddesist orders under Section 8(c). In addition, six final orders were issued during the year covering the ceaseand-desist proceedings initiated during 1977. During 1978, the FDIC also brought an enforcement action in the appropriate United States D istrict Court against one bank for violations of a Section 8(b) order. The C o rp o ra tio n has used its authority to issue cease-and-desist orders as a means to achieve correc tion of certain weaknesses in banks more frequently in recent years. It first used the authority in 1971 and from 1971 through 1975 issued 37 ceaseand-desist orders. In the last 3 years it has issued 118 orders under Sections 8(b) and 8(c). For the first time the FEDERAL DEPOSIT INSURANCE CORPORATION 12 FDIC issued a cease-and-desist order during 1978 against a bank for the sole purpose of correcting unsatisfactory operations in the bank's trust depart ment operations. Four other ceaseand-desist orders were issued to cor rect violations of various consumeroriented laws and regulations. The remaining 32 orders were issued pri marily fo r the purpose of correcting unsatisfactory financial conditions or management practices. The FIRIRCA gives the Federal bank ing supervisors expanded authority to issue cease-and-desist orders. In addi tion, it gives the banking supervisors the power to levy fines of up to $1 ,000 per day on both banks and bankers for certain violations. The FDIC may initiate terminationof-insurance proceedings under Sec tion 8(a) o f the Federal Deposit Insurance A ct if it finds that a bank has been conducting its affairs in an unsafe or unsound manner and is in an unsafe or unsound financial condition. If a bank does not correct deficiencies noted by the FDIC within a prescribed tim e period after notification, an administrative hearing is held at which the bank can respond to the Corpora tion's charges. If the charges are sub stantiated, the FDIC may terminate the insured status of the bank. The deposi tors of the bank are then notified of the termination, but each deposit (less sub sequent withdrawals) continues to be insured for 2 years. During 1978, the FDIC initiated three term ination-of-insurance pro ceedings by issuing Findings of Unsafe or Unsound Practices and Condition and Orders of Correction. All three pro ceedings were still pending at year-end. From 1934 to 1978, action was taken under Section 8(a) against a total of CEASE-AND-DESIST ORDERS AND ACTIONS TO CORRECT SPECIFIC UNSAFE OR UNSOUND PRACTICES OR VIOLATIONS OF LAW OR REGULATIONS, 1976, 1977, AND 1978 1978 1977 1976 Actions authorized by Board of Directors........................................... 51 50 41 Actions in negotiation at end of y e a r.................................................. 22 6 15 Cease-and-desist orders outstanding at beginning of year-total . . . Section 8(b)........................................................................................... Section 8(c)........................................................................................... 65 63 2 36 34 2 15 15 0 Cease-and-desist orders issued during year-total............................. Section 8(b)........................................................................................... Section 8(c)......................................................................................... 31 26 5 39 31 8 26 21 5 Cease-and-desist orders issued in actions authorized in prior year-total............................................................................................. Section 8(b)........................................................................................... 6 6 13 13 3 3 Cease-and-desist orders term inated-total......................................... Section 8(b)........................................................................................... Section 8(c)........................................................................................... 32 28 4 23 15 8 8 5 3 Cease-and-desist orders in force at end of year-total....................... Section 8(b)........................................................................................... Section 8(c)........................................................................................... 70 67 3 65 63 2 36 34 2 SUPERVISION OF BANKS 243 banks, and 240 cases had been closed at the end of 1978. In slightly less than one-half of the closed cases, corrections were made, and in most of the other closed cases the banks were absorbed by other insured banks or ceased operations prior to the estab lishment of a date for deposit insurance termination. In 15 cases, insurance was terminated or the bank ceased opera tions following the fixing of a date for insurance termination. Under Section 8(e) of the Federal Deposit Insurance Act, the FDIC may remove an officer, director, or other person participating in the manage ment of an insured State nonmember bank if it determines that the person has violated a law, rule, regulation, or fin a l c e a s e -a n d -d e s is t o rd e r; has engaged in unsafe or unsound banking practices; or has breached his fiduciary duty. The individual's action also must involve personal dishonesty and entail substantial financial damage to the bank, or s e rio u sly p re ju d ice the interests of the bank's depositors. The FIRIRCA amended Section 8(e) to allow for action where the individual has re c e iv e d fin a n c ia l g a in o r has demonstrated a willful or continuing disregard for the safety and soundness of the bank. During 1978, no removal proceedings were initiated. Section 8(g) of the Federal Deposit Insurance A ct authorizes the Corpora tion to suspend or remove officers, directors, and other persons participat ing in the affairs of insured State non member banks who are indicted for a felony involving dishonesty or a breach of trust. Three individuals were sus pended during 1978. Bank control and insider transac tions. Insured State nonmember banks must report to the FDIC any change in the bank's outstanding voting stock that will result in a change of control of the bank. During 1978, 521 notices 13 were filed with the Corporation. In con nection with a change in control, an insured bank must also report the change or replacement of its chief executive officer or any director occur ring within the subsequent 12-month peiod. The FIRIRCA gives the Corporation and the other Federal banking agencies the power to disapprove changes in control of insured banks and bank holding companies. Persons acquiring control of an insured State nonmember bank will be required to provide 60 days' prior written notice of their inten tions to the Corporation, including detailed personal background and financial data, contemplated organiza tional changes, and information relating to the terms and financing of the pro posed acquisition. A fter considering the views of the State supervisory authority, the Corporation may disap prove the proposed acquisition on the basis o f anticom petitive considera tions, or if the financial status, compe tence, experience, and integrity of the acquiring persons or their management might jeopardize the financial stability of the bank or would prejudice the interests of the depositors. In addition, the reports required relating to changes in chief executive officers and directors occurring w ithin 12 m onths o f a change in control have been expanded by the 1978 legislation to include information on past and present busi ness and professional affiliations. The FIRIRCA also addresses many of the areas covered by a special survey of bank stock loans, loans to officials and major shareholders of other banks, and insider loans and overdrafts, which was conducted at the request of the U.S. Senate Banking Com m ittee in October 1977. This survey of all insured commercial banks, conducted jointly by the three Federal bank supervisory agencies, was com pleted in March 1978 and revealed that 14 FEDERAL DEPOSIT INSURANCE CORPORATION in a small percentage of cases, a bank's insiders, insiders of other banks, or public officials were given special con sideration. The majority of instances of preferential interest rates reported by State nonmember banks had already been identified during FDIC examina tions. The FIRIRCA imposes restrictions on lending to bank insiders of correspon dent banks. It prohibits loans or exten sions of credit to these individuals that are not made on substantially the same terms as those for comparable transac tions with other persons. The act also places limits on borrowings from a bank by its executive officers and shareholders owning 10 percent or more of its stock. International banking. The Cor poration's involvement in the area of in te r n a tio n a l b a n k in g in c re a s e d markedly during 1978 and resulted in new supervisory approaches to this important segment of the banking business. Much of the increase can be traced to the FIRIRCA and the Interna tional Banking A ct of 1978, which added significantly to the Corporation's supervisory responsibilities. Under the FIRIRCA, State nonmem ber insured banks must now obtain the prior written consent of the Corpora tion before establishing or operating a foreign branch, or before obtaining any interest in a bank or other entity organized under the laws of a foreign country. The International Banking A ct is intended to provide a framework for Federal supervision and regulation of foreign banks operating in the United States through branches, agencies, or commercial lending companies in a manner similar to domestic banks. Specifically, it provides foreign banks w ith the option o f establishing a Federal branch, w ith the approval of the Office of the Comptroller of the Currency, in any State where the establishment of a branch or agency is not prohibited by State law and where the bank does not presently have State-chartered branches or agencies. It gives the Corporation primary super visory responsibility for insured Statelicensed branches. This act also pro vides fo r interstate branching by foreign banks under certain conditions. Under the International Banking Act, no foreign bank may establish or oper ate a Federal branch that receives deposits of less than $ 1 0 0 ,0 0 0 w ith o u t o b ta in in g F e d e ra l d e p o s it insurance. In States that require deposit insurance for State-chartered banks, State branches that receive deposits of less than $ 1 0 0 ,0 0 0 must be insured. An exemption from mandatory deposit insurance may be granted, by the FDIC in the case of a State-licensed branch or by the Comptroller of the Currency in the case of a Federal branch, if the branch is not engaging in domestic retail deposit activity. Foreign bank branches that are not subject to man datory insurance may voluntarily apply for Federal deposit insurance coverage. In keeping with the objective of striving toward a uniform approach to common examination problems, the th re e F ed e ra l b a n k in g a g e n c ie s adopted procedures for evaluating and commenting on country risk factors in the international loan portfolios of U.S. banks. Country risk in bank lending refers to the possibility that economic, political, or social conditions in a coun try might create a situation in which borrowers in that country would be unable to service or repay their debts to foreign lenders in a timely manner. Under the new system, examiners will segregate country risk factors from the evaluation of other lending risks and will assess bank management's ability to analyze and monitor country risk in its international lending. The new procedure will emphasize diversifica tion of exposure to individual countries SUPERVISION OF BANKS as the primary method of moderating country risk in international portfolios. Examiners will adversely classify a bank's aggregate credits to a country on the basis of country risk only when there has been an interruption in debt servicing or when such an interruption is considered imminent. The commer cial credit risks in the bank's inter national portfolios will continue to be assessed on an individual loan basis in accordance with traditional standards of credit analysis. The Country Exposure Report is an outgrowth of an experimental program initiated by the three Federal bank supervisory agencies in June 1977. Due to the success of this program, the agencies agreed to make the report mandatory for any domestic bank with a foreign branch, a foreign subsidiary, or an Edge A ct or Agreement corpora tion and aggregate foreign claims in excess of $ 20 million. This semi annual report is intended to capture data on foreign credit activity of U.S. banks in all countries, by type of bor rower and maturity of claims. Banks are also required to report firm com m it ments to extend additional credit in any country. 15 In response to the Corporation's increased involvement in international banking, a concerted effort has been made to enhance the expertise of its s ta ff in this area. A number of examiners have attended specialized courses and seminars designed to increase their knowledge of interna tional banking activities. In 1979, it is anticipated that the Corporation will join with the other tw o Federal bank supervisory agencies in a joint 2-week international banking school with the objective of making this program a required course for examiners encoun tering international activities in their bank examination work. The Corpora tion has also created a staff position in its Washington Office with the specific responsibility of focusing on interna tional activities of domestic banks and domestic operations of foreign banks. A p p lic a tio n s . State nonmember banks must apply to the FDIC to obtain deposit insurance. The Corporation's approval is also required before an insured nonmember bank may estab lish a new branch office or relocate an existing office. The FDIC also rules on merger transactions when the surviving bank is to be an insured State non FDIC APPLICATIONS 1978 1977 Deposit insurance—to ta l ....................................... ............. Approved......................................................................................... Denied............................................................................................... 98 94 4 104 98 6 New branches (prior co n sent)-to tal............................... ............. Approved......................................................................................... Branch.................................................................... Limited B ran ch.............................................................. .......... Remote Service Facility .................................... ........ Denied............................................................. ............. 1,055 1,045 680 162 203 10 974 969 691 194 84 5 M erg e rs *-to ta l.................................................................... ............. Approved............................................................................ ............ Denied.................................................................................. ............ 70 65 5 76 72 4 ’ Certain mergers undertaken as part of internal reorganizations not included. 16 FEDERAL DEPOSIT INSURANCE CORPORATION member bank, or in any merger of an insured bank with a noninsured institu tion. During 1978, the FDIC considered 98 applications for Federal deposit insurance, including 36 from State member banks which applied for con tinuation of their insured status follow ing voluntary withdrawal of their mem bership from the Federal Reserve System, and 1,055 applications to establish new branches or operate limited branch facilities. It acted on 70 m erger-type proposals, including 7 emergency cases, in 1978. In a p p ro v in g or denying such applications, the Corporation considers such factors as the bank's financial history and condition, its capital ade quacy, its future earnings prospects and management, the needs of the community to be served, and in a merger or consolidation, the competi tive effects of the transaction. In addi tion, as required by the Community Reinvestm ent A ct of 1977 w hich became effective in 1978, the Cor poration also takes into account the record of a financial institution in meet ing the credit needs of its community, including low- and moderate-income neighborhoods. A bank's poor perfor mance in meeting the credit needs of its community may be grounds for denial of an application. Reports and surveys. In carrying out its broad supervisory respon sibilities, the FDIC requires reports on certain activities of insured nonmember banks. The Corporation administers and enforces the registration and reporting provisions of the Securities Exchange A ct of 1 934 with respect to insured nonmember banks. The num ber of registered banks reporting to the FDIC was 377 at year-end 1978 com pared to 357 the year earlier. State nonmember banks acting as registrars and transfer agents for certain classes of securities must also register with the Corporation. Late in 1978, amend ments to FDIC regulations made its s e c u ritie s d isclo su re requirem en ts substantially similar to those of the Securities and Exchange Commission, in accordance with Section 1 2(i) of the Securities Exchange Act. All federally insured banks are required to file Reports of Income and Condition with their respective Federal bank supervisory agency. State non member banks and mutual savings banks file their reports with the FDIC. The FDIC may assess a penalty against a bank for late filing of these reports. In the first court challenge to a penalty imposed under Section 7(a)(1) of the Federal Deposit Insurance Act, a Federal judge in Texas recently upheld a $ 1 ,000 fine assessed against a Texas bank. The court dismissed the allegation that the Corporation's action was arbitrary, capricious, and an abuse o f d is c re tio n (Federal D eposit Insurance Corporation v. The Bevans State Bank of Menard' No. C A -6-78002 5 (N.D. Tex. Nov. 22, 1978)). The Reports of Income and Condi tion for commercial banks were revised at the end of 1978. As a result of these revisions, which were made jointly by the three Federal bank agencies, more information will be provided on banks with foreign offices. Also, for the first time, small banks (those with less than $ 1 0 0 million in total assets) could choose to file shorter versions of the Reports of Income and Condition. Revi sions to the Reports of Income and Condition for mutual savings banks, after being presented to the industry for comments, were adopted at yearend and will go into effect with the March 1979 reports. In addition to its continuing surveys, the Corporation in conjunction with the Federal Reserve Board conducted statistical sample surveys on money market certificate activity and the auto mated transfer of funds from savings BANK CLOSINGS AND LIQUIDATION ACTIVITIES to checking accounts. Information from these surveys is used by the Federal Reserve Board to assess and monitor the economic effect of these new financial transactions. Also in 1978, information on holdings of New York City obligations and of Cleveland obligations was requested from certain banks. Computerized analysis. The Inte grated Monitoring System (IMS) is a c o m p u te riz e d in fo rm a tio n system designed to monitor bank performance between examinations and aid in the exam ination process. Currently this system is applied only to insured non member commercial banks, but it is expected to be expanded to include insured mutual savings banks in 1979. From data submitted by banks in their Reports of Condition and Income, the IMS performs certain basic tests which measure a bank's capital ade quacy, liquidity, asset and liability mix and growth, and profitability. If a bank fails one or more of the tests, additional data are obtained for further analysis. Where analysis indicates a potential p ro b le m or a d v e rs e c o n d itio n , appropriate supervisory action is initi ated, such as a visitation or an early examination. The system enables the Corporation to identify with greater accuracy banks, or particular aspects of a bank's operation, that especially m erit closer supervisory attention, thereby facilitating a swifter and more effective response by the Corporation. In the coming year, the Comparative Performance Report will serve to sup plem ent the Integrated M onitoring System data given to FDIC examiners and financial analysts. This report is a revision of the Comparative Perfor mance Tables the FDIC sends to banks, w hich show data based on their Reports of Income and Condition. Many of the changes in the report resulted from the responses of nearly 4,300 17 bankers to a survey of their informa tional needs sent in early 1978. In 1978 the Corporation's com puterized on-line system was upgraded to improve the speed and efficiency w ith which examination and other bank reports are edited and processed. The system is designed to accommodate additions, such as those required by the new interagency uniform bank rat ing system, and modifications to the exam ination and report form s. By redesigning the com puterized bank structure data base and the systems fo r processing banks' Reports of Income and Condition, and by installing a new computer which processes data three times faster than the model it replaced, the Corporation is now able to provide information more quickly to the banking community. BANK CLOSINGS AND LIQUIDATION ACTIVITIES Federal deposit insurance covers the aggregate deposits of individuals and businesses in each insured bank up to $ 4 0 ,0 0 0 and, as provided by the Financial Institutions Regulatory and Interest Rate Control Act of 1978, covers Individual Retirement Accounts and Keogh accounts up to $100,000. Time and savings deposits held by government units (except deposits held in out-of-State banks) are insured up to $ 1 0 0 ,0 0 0 fo r each depositor. On December 31, 1978, nearly 98 percent of all commercial banks in the United States and about 70 percent of all mutual savings banks were covered by Federal deposit insurance. When an insured bank fails, the FDIC has tw o principal methods available to protect the depositors: the deposit assumption method and the deposit payoff method. In the 548 insured bank failures that have required Cor poration disbursements since 1934, FEDERAL DEPOSIT INSURANCE CORPORATION DEPOSITS A N D LOSSES IN A LL IN S U R E D B A N K S R EQ U IR IN G D IS B U R S E M E N T S BY FDIC, 1 9 3 4 -1 9 7 8 TOTAL DEPOSITS $7.29* billion DISBURSEMENTS BY FDIC*' $5.07 billion ••Includes collections and disbursements by liquidators in the I,eld ($1.5 billion) which were previously excluded from this chart. BANK CLOSINGS AND LIQUIDATION ACTIVITIES 244 were deposit assumption cases and 304 were direct payoff cases. In a deposit assumption case, the deposi to rs' accounts in the failed bank becom e d e p o s it a cco u n ts in the assuming bank. All depositors are thereby afforded full protection with minimal, or no, disruption of banking services to the community. When the deposit payoff method is used, the FDIC pays directly to depositors the net amount eligible for deposit insurance. These payments begin usually within 5 to 7 days of the bank closing. Pay ments of the uninsured portions of deposits are made from the proceeds of liquidated assets and other sources. The FDIC may also provide direct assistance to an operating insured bank in danger of failing to enable it to remain open if that bank is essential to maintain adequate banking services in a community. It has provided such assistance in four cases, most recently in 1976. In the 548 failed bank cases, 99.8 percent of the depositors had received or were assured of payments of their deposits in full at the end of 1978, and 99.8 percent of the total deposits had been paid or made available to them. In the 304 deposit payoff cases, more than 98.8 percent of depositors had received full recovery, and while the recovery of uninsured deposits varies b etw een in d iv id u a l cases, in the aggregate almost 97 percent of total deposits had been paid or made availa ble. About 70 percent of the total amount already recovered by or made available to depositors in deposit payoff cases was provided by FDIC payments of insured deposits, with additional amounts provided from the proceeds of liquidated assets, offsets against indebtedness, and pledged assets. Bank fa ilu re s in 1 9 7 8 . Seven insured banks ranging in deposit size 19 from about $1 million to about $608 million failed in 1978. The Corporation used the direct payoff method in one case and assisted sound banks to assume the deposits of the other six banks. The assuming banks paid purchase premiums totaling $42.3 mil lion. The purchase premiums are added to the capital cushion available to the FDIC to absorb losses. In the largest insured bank failure in 1978, the Corporation arranged an assumption of the $607.6 million in deposits of Banco Credito y Ahorro Ponceno, Ponce, Puerto Rico— and for the first time, the deposits of a failed bank w ere d ivid e d betw een tw o assuming banks. Banco Popular de Puerto Rico, San Juan, acquired 36 offices comprising approximately tw othirds of the deposits of the failed bank and also the bank's trust department. The other 14 offices, including the New York branch office, were taken over by Banco de Santander-Puerto Rico, San Juan. By allowing the two purchasers to select those branches which more closely fit their operations and competitive requirements, sub s ta n tia l purchase prem ium s w ere received, and the anticom petitive effects of one very large bank acquiring another were avoided. The one statutory payout in 1978 was of the Watkins Banking Company in Faunsdale, Alabama, a small bank w ith less than 500 depositors. Virtually all the deposits of approximately $1 million were either secured or within the $ 4 0 ,0 0 0 FDIC insurance max imum. L itigation on standby letters of credit. A fter United States National Bank failed in October 1973, the FDIC arranged for Crocker National Bank to assume approximately $1 billion in deposit and other liabilities. However, C ro cker did not assum e certain standby letters of credit issued by 20 FEDERAL DEPOSIT INSURANCE CORPORATION USNB to guarantee the debts of com panies dominated by C. Arnholt Smith and his associates. Two holders of such standby letters of credit, First Empire Bank and Societe Generale, sued the FDIC, maintaining that the bank's obligations to them should have been provided for in the same way as those assumed by Crocker since they were not associated with Smith. A federal district court in California held that the FDIC, in determining not to pay those suspect letters of credit, had prop erly exercised the discretion granted to it under Federal banking law. That decision was appealed to the Ninth Circuit Court of Appeals and was reversed in favor of th e l e t t e r o f c r e d it h o ld e r s [First Empire bank v. Federal Deposit Insurance Corporation, 572 F.2d 1361 (9th Cir. 1978)). In October 1978, the Supreme Court declined to review the Ninth Circuit's opinion. The effect of that denial is that the FDIC must pay the amount due on the letters of credit that were not assumed by Crocker. The FDIC has provided for the liability in its reserve for potential losses in litigation. IN S U R E D B A N K F A IL U R E S 1 9 3 4 -1 9 7 8 Number of banks 8 0 ------------------------------------------------------------------------------------------------------- 70 ■ [ I Depo sit P a y o f f Deposit Assumption 60- 50 40- 0 1 0 Ifflyy^^illillilCHr^r'nN n ylnJUi]Ji II \m m m m m m m m m m m rnm m m m m m m m m m nm i i n i i t it m m u m m m m n m m m m m m 1934 '36 '38 '40 '42 '44 '46 '48 '50 '52 '54 '56 '58 '60 '62 '64 '66 '68 70 72 74 76 78 21 BANK CLOSINGS AND LIQUIDATION ACTIVITIES INSURED BANKS CLOSED DURING 1978 REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION Name and location Date of deposit payout or assumption Number of depositors or accounts Amount of deposits (in millions of dollars) The Drovers' National Bank of Chicago Chicago, Illinois....................... January 19, 1978 43,800 197.2 First Bank of Macon County Notasulga, Alabama............... January 26, 1978 2,919 3.8 Wilcox County Bank Camden, Alabama............... March 1, 1978 3,447 10.6 Banco Credito y Ahorro Ponceno Ponce, Puerto Rico................. March 31, 1978 294,000 607.6 Watkins Banking Company Faunsdale, Alabama............... July 21, 1978 492 1.3 Banco de Ahorro de Puerto Rico San Juan, Hato Rey, Puerto R ic o ................... September 5, 1978 4,202 11.8 North Point State Bank Arlington Heights, Illinois........ December 16, 1978 15,500 21.8 Liquidation a c tiv itie s . The Division of Liquidation was handling 79 open liquidation cases in 30 States, the Virgin Islands, and Puerto Rico at yearend 1978. There were over 75,000 assets having a book value of more than $2 billion to be liquidated. A pproxim ately one-third o f these assets were real estate related. The FDIC's policy is to convert the assets of closed banks to cash as early as practical for distribution to the credi tors and stockholders and to realize a maximum recovery through these efforts. The Division of Liquidation closed 31 transactions in 1978 involv ing bulk sales of assets totaling $2 02 million, setting an all-time collection record for the division of $812.8 mil lion. Sixty-six insured banks closed from January 1, 1970, to December 31, 1978, involving total assets of approx imately $8 billion and total deposits of approximately $5 billion. In the 46 purchase and assumption transactions, new banks acquired approxim ately $3.6 billion of assets at book value from the FDIC, as receiver, which had the effect of immediately recovering those substantial am ounts fo r the benefit of the creditors. For the same period, the FDIC, as liquidator, collected approximately $3.5 billion, in principal, interest, and costs, from the remaining assets. In addition, the Corporation recovered $317 million from purchase premiums paid by new banks for the right to acquire the failed banks' deposits and valuable banking loca tions. T h e C o r p o r a tio n 's liq u id a tio n expenses amounted to about $129 million versus collections of $3.5 bil lion for the period January 1, 1970, 22 FEDERAL DEPOSIT INSURANCE CORPORATION to December 31, 1978. This repre sents a very favorable 3.7 percent ratio of expenses to collections. Legal fees for the same period amounted to 1.1 percent of collections. Both ratios are exceptional when measured against typical expenses and legal fee results in bankruptcies. R e c o v e ry f o r c r e d it o r s and stockholders can also result in some L IQ U ID A T IO N A C T IV IT Y 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 0 - 1 9 7 8 M illio n s of d o llars 2 ,7 0 0 -------— ---------------------------------------------------------------------------------------------------------------------------- 2 ,4 0 0 ----------------------------------------------- BO O K VALUE OF A S S E T S 2,100 ------------------------------------------------ 1 ,8 0 0 1 ,5 0 0 1,200 900 600 300 CONSUMER AND CIVIL RIGHTS PROTECTION cases from directors' liability actions initiated by the receiver. Because many bank closings are the direct result of bank directors' failure to use reasona ble care in discharging their duties or their allowance of violations of banking laws, the FDIC normally investigates potential negligence and files claims against members of the bank's board when such action is warranted. In 1 9 78, the FDIC filed 9 dire cto rs' liability suits; at the end of 1978, 28 such suits were pending. Whenever it is determined that the bank suffered losses due to the fraudule n t and d is h o n e s t a c ts o f its employees, the Corporation pursues a claim against the bank's Bankers Blanket Bond carrier. Most claims are settled w ithout litigation; however, at the end of 1978 there were 16 such suits pending. CONSUMER AND CIVIL RIGHTS PROTECTION The FDIC is responsible fo r enforc ing a growing number of consumer protection and civil rights laws and regulations w ith respect to insured State nonmember banks. These laws include the Truth in Lending Act, the Fair Credit Reporting Act, the Real Estate Settlement Procedures Act, the Equal Credit Opportunity Act, the Fair Housing Act, the Home Mortgage Dis closure Act, the Fair Debt Collection Practices Act, and the Community Reinvestment Act. The FDIC carries out these enforce ment responsibilities primarily through a program o f separate specialized examinations directed solely to check ing fo r compliance with the various laws and regulations. These examina tio n s are c o n d u c te d by tra in e d examiner specialists at times other than during the regular safety and sound ness examinations, with special follow up examinations or visitations as the 23 circumstances may require. Violations or exceptions noted in the c o m p lia n ce re p o rts are ro u tin e ly followed up by the Regional Offices to assure that corrective measures are taken. If voluntary compliance cannot be obtained by additional follow-up exam inations, visitations, meetings w ith the boards of directors of the banks involved, or other means, the Division of Bank Supervision or the Office of Consumer Affairs and Civil Rights may recommend that formal enforcement action under Section 8(b) of the FDI Act be initiated. During 1978, the FDIC's Board of Directors issued four such orders involving in whole or in part violations of consumer protection or civil rights laws and regulations. Fair housing. A new FDIC regulation became effective in m id-1978 that is intended to provide a basis for a more effective FDIC housing lending enfor cement program under the Fair Housing and Equal Credit Opportunity Acts. The regulation establishes recordkeeping requirements for insured State non member banks with respect to inquiries and applications for home loans. A home loan is defined as any extension of credit relating to the purchase, con struction, refinancing, im provem ent, repair, or maintenance of a one- to four-fam ily residential dwelling which an applicant intends to occupy as a principal residence and which is used to secure the loan. All banks subject to the regulation are required to request and retain information on the name, address, race, national origin, sex, marital status, and age of persons who inquire about or apply for home loans, and on the location of the property to be financed. If a bank is located within a Standard M etropolitan S tatistical Area (SMSA) and has assets of more than $ 10 million, it is also required to obtain extensive credit-related infor mation about the financial status of the 24 FEDERAL DEPOSIT INSURANCE CORPORATION loan applicant and the characteristics of the property involved and the loan being requested. The purpose of this data collection effort is to provide a valid statistical basis for detection of possible home loan discrimination. The Corporation began developing a computerized Fair Housing statistical analysis system in 1978 to analyze the home loan inquiry and application data maintained by State nonmember banks. The relation ship between inquiries and applica tions, the relationship between suc cessful and unsuccessful applications, and the loan terms granted to bor rowers will be categorized and com pared by the race, sex, age, and marital status of inquirers and applicants. Use of this system will not definitely estab lish the existence of illegal discrimina tion but should identify fo r FDIC examiners those banks requiring more extensive examination and follow-up efforts. M ortgage disclosure. Substantial progress was made on a study of hous ing-related loan data required of certain depository institutions under the Home Mortgage Disclosure Act. The study, which is being jointly funded by the FDIC and the Federal Home Loan Bank Board, is designed to assess the accuracy with which depository institu tions are compiling the loan disclosure reports and to identify the proportion of mortgage loans made by institutions subject to the act. A series of reports will be prepared on a variety of issues, including the costs of compliance, possible amendments to the act and the im plem enting Regulation C to increase the usefulness of these data to the public and the regulatory agen cies, and improvements in location coding and enforcement procedures. A lthough the study was originally scheduled to be completed by late 1978 , the breadth o f the issues addressed and technical problems associated with collection of certain of the necessary information have caused a postponement in the anticipated completion date to early 1979 C om m unity reinvestm ent. Late in 1977 a new Federal law, the Com munity Reinvestment Act, directed the Federal financial regulatory agencies to encourage the institutions they regu late to help meet the credit needs of their communities, including low- and moderate-income neighborhoods. The agencies were fu rth e r required to assess the institutions' records in doing so and to take those records into account when evaluating applications requiring prior agency approval. To implement this law, the FDIC issued jointly with the Comptroller of the Cur rency, the Federal Home Loan Bank Board, and the Federal Reserve Board final regulations which became effec tive in late 1978. The regulations give FDIC-supervised banks 90 days in which to pre pare Com m unity Reinvestment A ct Statements. These statements must define the bank's local community, without excluding any low- and moder ate-income neighborhoods, and iden tify the types of credit needs within that community which the bank is pre pared to serve. Both the statement and any written comments on it must be made available to the public. FDIC examiners will review the CRA State m ents d uring regular com p lia n ce examinations, with the results weigh ing heavily in Corporation decisions concerning pending bank applications. The H o u s in g and C o m m u n ity Development Am endm ents A ct of 1978 established a National Neighbor hood Reinvestment Corporation. The Chairman of the FDIC is a member of the board of directors. The Neighbor hood Reinvestment Corporation was created for the purpose of promoting CONSUMER AND CIVIL RIGHTS PROTECTION reinvestment in older neighborhoods through the efforts of local financial institutions, community groups, and local government. Consumer com plaints and inqu iries. The Office of Consumer Affairs and Civil Rights is responsible for the appropriate disposition of consumer complaints and inquiries directed to the FDIC. During 1978, 2,263 complaints and 2,474 inquiries were received by the FDIC nationwide, up 6.5 percent and down 1.3 percent respectively over the number processed during 1977. The increase in consumer complaints and inquiries, which is expected to con tinue over the next few years, is attributable primarily to greater con sumer awareness of their rights under the various consumer protection and civil rights statutes. Also, more con 25 sumers may be filing complaints as a result of the FDIC's consumer informa tion brochure explaining how to file a complaint. Corrective action is sought in all cases where a bank error or viola tion of law is discovered as a result of a complaint and follow -up action is taken to ensure subsequent compliance. Consumer and banker education. During 1978, the staff from the Office of Consumer Affairs and Civil Rights m ade num erous p re se n ta tio n s to bankers and industry groups. They par ticipated in a series of eight workshops, sponsored by the American Bankers Association and held at various loca tions around the country, to promote banker education in the areas of con sumer protection and civil rights. Also, a special 2-day FDIC training program on the new Community Reinvestment CONSUMER COMPLAINTS AND INQUIRIES, 1977 AND 1978 Complaints and inquiries - total. 1978 4,737 1977 4,657 Deposit function....................... Payment of in te re st............... Account differences............... Advertising............................... Early withdrawal penalties. . . . Policies and practices.............. Other......................................... 1,315 158 182 34 217 574 150 962 131 238 35 148 332 78 Loan function............................................................ ........ State or contract la w ............................................. Equal Credit Opportunity A c t ............................... Fair Credit Reporting A c t....................................... Individual bank loan policy..................................... Collection and repossession................................. Fair housing............................................................ Truth in lending...................................................... Other Federal la w s ................................................. Other........................................................................ 1,931 115 543 133 308 100 70 183 48 431 1,601 101 508 165 242 58 49 145 21 312 Trust services.................................................................. 68 55 Safe deposit - safekeeping services........................... 32 42 Insurance coverage.......................................................... 685 822 General, 706 1,175 26 FEDERAL DEPOSIT INSURANCE CORPORATION A ct regulation was presented in late 1978 to examiner personnel in all 14 Regional Offices. The program's major goal was to provide instruction and training in CRA examination techniques to the special compliance examiners, who will, in turn, be providing similar instruction and guidance to the bankers who must comply w ith the regulations. It was felt this approach offered the best opportunity for maximizing the number of examiners and bankers to be reached in the shortest possible time. The FDIC also distributed more than half a million pamphlets on consumer information, fair credit billing, truth in lending, and equal credit opportunity during 1978. FINANCES OF THE CORPORATION Deposit insurance fund. The Cor poration's basic financial resource for the protection of depositors is the deposit insurance fund which has been accumulated entirely from net income over the years. The fund increased by $803.2 million during the year to a total of $ 8 . 8 billion. That amount equaled about 1 .2 percent of estimated insured deposits. Should additional funds ever be needed, the Corporation is authorized to borrow up to $3 billion from the U.S. Treasury, but it has never exercised this authority. The Corporation disbursed $470.7 million in the failures of seven insured banks during 1978. Based on current estimates, approximately 1.7 percent of this amount will not be recovered by the Corporation, and accordingly, $7.8 m illio n o f the d is b u rs e m e n t w as charged against current income. In addition, the Corporation purchased $4.3 million in capital notes from banks that acquired the major part of the assets and liabilities of tw o of the cur rent year's failed banks. Income. Assessments and interest income are the tw o principal sources of C orporation income. During 1978, gross assessments of $810.5 million accounted for 58.1 percent of total income and interest on the portfolio of U.S. Government securities of $567 million equaled 40.6 percent of the total. Other income is primarily from interest earned on capital notes. The basic assessment rate paid by insured banks has been 1 / 1 2 of one percent of total assessable deposits since 1935, but legislation enacted in 1950 in effect reduced the statutory rate of assessment by providing a cred it to be applied against gross assess ments levied, after subtracting the Cor poration's expenses and provision for losses, each year. This credit to insured banks has been 6 6 - 2/3 percent since December 31, 1961. A fter allowing for the FDIC's administrative and operating expenses of $103.2 million and provi sion for insurance losses and expenses incurred to protect depositors of $41.9 million, the statutory credit to banks amounted to approximately $443.1 million in 1978, an increase of $ 31.5 million from the previous year. This made the net assessment paid by insured banks equal to approximately 1/26 of one percent of assessable deposits in 1978. The assessment credit for 1978, which becomes availa ble to the insured banks on July 1, 1979, constituted 91 percent of the FDIC's liabilities at year-end. In te re s t on U.S. G o v e rn m e n t securities increased by $ 73 million from year-end 1977 and the yield on cost rose from 7.15 percent to 7.55 percent. The improved yield in large part is due to the Corporation's ability to take advantage of changes in general m a rke t c o n d itio n s w h ic h favorably influenced the current year's net purchases of about $ 1.1 billion, and to some extent is due to the re placement of a limited amount of securities w ith others more in line with prevailing yields. Following conven tio n a l a c c o u n tin g p rin cip le s, the FINANCES OF THE CORPORATION approximately $3 million loss on the sale of the low-yield issue was charged against current income. Audits. In m id-1978, the Board of Directors adopted a resolution redefin ing the functions of the Office of Cor porate Audits in a manner consistent with Government policies on audits of Federal operations and programs. In the past the Office of Corporate Audits has been charged w ith evaluating whether the FDIC's financial, fiscal, and accounting operations are properly conducted and accurately reported. The resolution expands the Office's jurisdiction to include the determination of whether applicable laws and regula tio n s have been co m p lie d w ith , resources are managed in an efficient manner, and desired results and objec tives are being achieved in an effective manner. In addition to the continuing internal audit activity, the Corporation's finan cial operations are audited annually by the General Accounting Office and audit results are reported to Congress. The Federal Banking Agency Audit Act (Public Law 9 5 -3 2 0 ), w hich was enacted during 1978, authorizes the General Accounting Office to conduct periodic performance audits of the Corporation also. A P P LIC A TIO N OF REVENUES FEDERAL DEPO SIT IN S U R A N C E C O R PO R A TIO N 1 9 6 8 -1 9 7 8 M illions of dollars 1 ,40 0 — HHm Expenses and Provision for Losses_ f ljlf lj Assessm ent Credits 1,200 — | 1,000 — | Additions to Insurance Fund 27 FEDERAL DEPOSIT INSURANCE CORPORATION 28 COMPARATIVE STATEMENT OF FINANCIAL CONDITION (In thousands) ASSETS: December 31, 1978 Cash $ 4,343 December 31, 1977 $ 8,663 U.S. Government obligations: 8,210,441 162,720 8,373,161 7,129,055 137,957 7,267,012 33,980 861 940,309 19,104 135,568 273,949 855,873 49,764 900. 1,171,083 19,122 132,155 244,741 1,128,283 23,936 37,028 20,700 40,264 27,765 37,423 15,400 49,788 Miscellaneous assets 2,759 2,370 Land and office building, less depreciation on building 6,283 6,418 $9,282,683 $8,462,534 Securities at amortized cost Accrued interest Equity in assets acquired from deposit payoff cases and insured banks assisted under Section 13(e) of the FDI Act: Depositors' claims paid Depositors' claims unpaid Loans and assets purchased Assets purchased outright Notes purchased plus accrued interest Less reserves for losses Equity in assets acquired from insured banks assisted under Section 13(c) of the FDI Act: Assets purchased outright Notes purchased plus accrued interest Less reserves for losses Total Assets FINANCES OF THE CORPORATION 29 F E D E R A L DEPOSIT INSU RANCE CO RPO R ATIO N LIABILITIES AND THE DEPOSIT INSURANCE FUND: Accounts payable and accrued liabilities December 31, December 31, 1978 1977 $ 4,963 $ 5,947 Earnest money, escrow funds, and collections held for others 4,893 12,086 Accrued annual leave 4,716 4,316 0 443,101 11,990 455,091 411,947 0 16,789 428,736 16,166 861 17,027 17,761 900 18,661 486,690 469,746 8,795,993 7,992,788 $9,282,683 $8,462,534 Due insured banks: Net assessment income credits: Available July 1, 1978 Available July 1, 1979 Other Liabilities incurred in failures of insured banks: Notes payable plus accrued interest Depositors' claims unpaid Total Liabilities Deposit Insurance Fund Total Liabilities and the Deposit Insurance Fund 30 FEDERAL DEPOSIT INSURANCE CORPORATION COMPARATIVE STATEMENT OF INCOME AND THE DEPOSIT INSURANCE FUND (In thousands) For th e tw e lv e m o n th s ended December 31, 1978 Revenues: Assessments earned Interest on U.S. Government securities Amortization of premiums and discounts (net) Interest earned on notes receivable Other income Total $ 810,532 567,042 (1,264) 11,974 7,313 1,395,597 December 31, 1977 $ 731,468 493,990 9,171 14,841 442 1,249,912 Assessment Credits, Expenses, and Losses: Provision for assessment credits Administrative and operating expenses (net) Nonrecoverable insurance expenses Provision for insurance losses Loss on sale of securities Total Net Income Deposit Insurance Fund-January 1 Deposit Insurance Fund-December 31 443,534 103,289 5,409 36,532 3,628 592,392 412,086 89,344 3,492 20,827 0 525,749 803,205 724,163 7,992,788 7,268,625 $8,795,993 $7,992,788 FINANCES OF THE CORPORATION COMPARATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION (In thousands) 31 F E D E R A L DEPOSIT INSU RANCE C O RP O R ATIO N For th e tw e lv e m o n th s ended December 31, 1978 December 31, 1977 Operations: Net deposit insurance assessments Interest on U.S. Government obligations Interest on notes receivable Other income Total $ 366,998 567,042 11,974 7,313 953,327 $ 319,382 493,990 14,841 442 828,655 Less: Administrative and operating expenses, net of depreciation Nonrecoverable insurance expense Total 103,154 5,409 108,563 89,209 3,492 92,701 Resources provided from operations 844,764 735,954 794,469 1,369,625 799,248 26,355 4,320 $2,469,156 419,095 21,956 14,197 $2,560,827 $1,686,705 $1,877,394 Financial Resources Were Provided From: Maturity and sale of U.S. Government obligations, less, $3,628 net loss in 1978 Collections received on assets acquired in receivership and deposit assumption transactions, excluding $261,000 in 1977 in Franklin National Bank liquida tion collections applied directly to the reduction of the F.R.B. indebtedness before F.R.B. payoff Increase in assessment credits due banks Decrease in cash Total Financial Resources Provided Financial Resources Were Applied To: Purchase of U.S. Government obligations Increase (decrease) in U.S. Treasury one-day certifi cates (Total purchases - $37,679,123 in 1978 and $32,543,000 in 1977 Total maturities - $37,485,081 in 1978 and $32,561,000 in 1977) Acquisition of Assets acquired in receivership and deposit assumption transactions, excluding $ 19,100 in 1977 representing the increase in prin cipal and accrued interest on the F.R.B. indebtedness and other notes payable before F.R.B. payoff Increase in accrued interest on securities Net change in other assets and liabilities Payment of F.R.B. indebtedness: Principal Accrued interest Total Financial Resources Applied 194,042 (18,000) 554,280 24,763 9,366 95,880 7,844 (10,167) 0 0 $2,469,156 389,000 218,876 $2,560,827 32 FEDERAL DEPOSIT INSURANCE CORPORATION NOTES TO FINANCIAL STATEMENTS GENERAL These statements do not include accountability for assets and liabilities of closed insured banks for which the Cor poration acts as receiver or liquidating agent. Periodic and final accountability reports of its activities as receiver or liquidating agent are furnished by the Cor poration to courts, supervisory authorities, and others as required. Reclassifications. Certain reclassifica tions were made in the 1977 financial statements to conform to the presentation used in 1978. U.S. GOVERNMENT OBLIGATIONS Investment in securities at December 31, 1978 and 1977 was. (in thousands) Face Value Purchase Price Market Value 1978 1977 $8,210,911 8,216,348 7,718,383 $7,119,458 7,132,322 7,073,876 ACCOUNTING POLICIES U.S. G o v e rn m e n t o b lig a tio n s . Securities are shown at amortized costs which is the purchase price of the securities less the amortized premium or plus the accreted discount. Such amortiza tion and accretion are computed on a daily straight-line basis from the date of acquisi tion to the date of maturity. Deposit insurance assessments. The Corporation assesses insured banks at the rate of 1/12 of one percent per year on the bank's average deposit liability less certain exclusions and deductions. Assessments are due in advance for each six-month period and credited to income each month. Section 7(d) of the Federal Deposit Insurance Act states that each July 1, six ty-six and two-thirds percent of the Cor poration's net assessment income from the prior calendar year be made available to insured banks as a prorated credit against the current assessment due. Reserve for losses. It is the policy of the Corporation to establish an estimated reserve for loss at the time a bank fails. These reserves are reviewed every six months and adjusted as required, based on the financial developments which accrue during each six-month period. The Cor poration does not state its estimated con tingent liability for unknown future bank closings because such estimates are impossible to make. The Corporation's contingent liability for eventual net losses depends upon factors which cannot be assessed until or after a bank has actually failed. The Corporation's entire deposit insurance fund and borrowing authority are available, however, for such contingencies. Depreciation. The headquarters build ing is depreciated on a straight-line basis over a 50-year estimated life. The cost of furniture, fixtures, and equipment is expensed at time of acquisition. RESERVE FOR LOSSES As of December 31, 1978 and 1977 the Corporation's reserve for losses on deposit payoff cases and on banks assisted under Sections 13(c) and 13(e) of the Federal Deposit Insurance Act are as follows: 1978 1977 Depositors'claims paid Loans and assets purchased Assets purchased outright $ 14,475,000 $ 16,032,000 240,763,500 210,709,400 39,410,000 33,400,000 $ 294 , 648,500 $ 260 , 141,400 NOTES PURCHASED TO FACILITATE DEPOSIT ASSUMPTIONS The Corporation's outstanding principal on notes receivable, purchased to facilitate deposit assumptions and mergers of closed insured banks under Section 13(e) of the Federal Deposit Insurance Act, at December 31, 1978 and 1977 are: 1977 1978 $ 1,000,000 $ Clearing Bank 1,500,000 Marine National Exchange Bank 1,500,000 1,500,000 of Milwaukee First Tennessee National Cor 16,000,000 16,000,000 poration 8,000,000 8,000,000 First Tennessee National Bank Bank Leumi Trust Company of New York 10,000,000 10,000,000 New Orleans Bancshares, Inc. 6,666,667 7,500,000 European-American Bancorp. 85,000,000 85,000,000 Drovers Bank of Chicago 4,000,000 250,000 Town-Country National Bank - $ 132 ,416,667 $ 129 , 500,000 NOTES P UR CH A SE D TO A S S I S T OPERATING BANKS The Corporation's outstanding principal on notes receivable, purchased under authority of Section 13(c) of the Federal Deposit Insurance Act, at December 31, 1978 and 1977 are: 1978 1977 Unity Bank and Trust Company Bank of the Commonwealth $ 1,500,000 35,500,000 $ 1,500,000 35,500,000 $ 37 , 000,000 $ 37 ,000,000 FINANCES OF THE CORPORATION LIABILITIES INCURRED IN FAILURES OF INSURED BANKS Notes payable. This amount represents the unpaid principal and accrued interest on the Corporation's unsecured notes desig nated “ 5.775% Series A Notes due January 1, 1988" and “ 5.775% Series B Notes due January 1, 1990“ as set forth in the con sents, exchange agreement, and agree ments of release and satisfaction related to the sale of Franklin Buildings, Inc. to European-American Bank and Trust Company. 33 CONTINGENT LIABILITIES S o u th e rn B a n c o r p o ra tio n n o te receivable. On December 9, 1976, Southern Bancorporation repaid in full the $8 million note that the Corporation had purchased on September 24, 1974. Southern Bancorporation financed this transaction by obtaining a loan from First Union National Bank of North Carolina. To induce FUNB to enter the loan agreement, the FDIC agreed to guarantee the payment of 75 percent of the unpaid principal amount of the loan on the terms and condi tions set forth in the guarantee agreement. As of December 31, 1978 and 1977, FUNB's outstanding principal due on the loan totaled $6.6 million and $7.4 million, respectively. ENFORCEMENT PROCEEDINGS PART TWO CEASE-AND-DESIST ACTIONS Actions to Terminate Insured Status Federal Deposit Insurance Act-Section 8(a) 37 reduce adversely classified assets; obtain current credit and other sup porting documentation for all existing loans; eliminate all concentrations of credit; eliminate without loss or liability to the bank all overdrafts and prohibit future overdrafts to directors, officers, and employees, or their interests; adopt and fo llo w acceptable loan policies; adopt an acceptable audit program; correct internal routine and control deficiencies; correct violations of laws, rules, and regulations; discon tinue cash dividends; and obtain a cer tain level of capital if continued insured status was desired. The Corporation has issued 33 termination of insurance orders since January 1971; 3 were issued in 1978. In each case, the bank was found to be in unsafe or unsound condition. Also, a number of other termination of insurance actions have been recommended but were withdrawn by the Board of Directors because of favorable interim affirmative actions by the bank involved. As in the case of ceaseand-desist actions, the threat of termination of insurance has caused many of the banks to take affirmative steps to correct deficiencies, thus eliminating the need for finalizing the actions. Summary of cases Cease-and-Desist Actions Federal Deposit Insurance Act-Section 8(b) Bank No. 31 Deposits— -$101.3 million Notice of intention to terminate insured status issued on April 19, 1978. Bank ordered to provide accept able management; eliminate or reduce adversely classified assets; reduce loan volume; establish a plan to control operating losses; correct violations of laws, rules, and regulations; take necessary steps to comply, where appropriate, with the Order to Cease and Desist issued on January 25, 1978 and the Letter Agreement dated June 16, 1977; adopt and follow acceptable loan and investment policies; imple ment a plan to provide stability and diversification to the deposit structure; discontinue cash dividends; and obtain a certain level of capital if continued insured status was desired. 32 Deposits— $3.7 million Notice of intention to terminate insured status issued on June 9, 1978. Bank ordered to provide acceptable management; eliminate or reduce adversely classified assets; reduce overdue loans; correct violations of laws, rules, regulations, and loan docu m entation exceptions; discontinue cash dividends; and obtain a certain level of capital if continued insured status was desired 33 Deposits— $30.8 million Notice of intention to terminate insured status issued on September 15,1978. Bank ordered to provide acceptable management; eliminate or The Corporation has issued 137 cease-anddesist orders since January 1971; 32 were issued in 1978. In addition, 18 temporary cease-and-desist orders have been issued, including 5 in 1978. In each case, the bank was ordered to cease and desist from unsafe or unsound practices and to take affirmative action to correct conditions. Several such actions are now in various stages of processing. In addition, a number of other cease-anddesist proceedings were terminated when the banks involved, in response to a threatened cease-and-desist order, took affirmative steps to correct the problems. In four other cases, one in 1978, formal w rit ten agreements between banks and the Cor poration were ratified by the FDIC Board of Directors. Noncompliance with these formal written agreements can result in a cease-anddesist action. Summary of cases Bank No. 106 Deposits— $ 18.0 million Consent cease-and-desist order entered on January 25, 1978. Bank ordered to cease and desist from unsafe or unsound practices and take affirm ative action w ith respect to acceptable management; reduction of adversely classified assets; adoption of acceptable loan policies; limitations on credit to any person or concern, includ ing any person related to such person or concern; and credit to or for the FEDERAL DEPOSIT INSURANCE CORPORATION 38 benefit o f tw o or more unrelated obligors where repayment is based upon the assets or revenue derived from the same source; compliance with laws, rules, and regulations; and elimination of loan documentation defi ciencies. 107 108 Deposits— $7.8 million Consent cease-and-desist order entered on January 25, 1978. Bank ordered to cease and desist from unsafe or unsound practices and take affirm ative action w ith respect to acceptable management; reduction of adversely classified assets and overdue loans; adoption of acceptable loan and investment policies; compliance with laws, rules, and regulations; dis closures and restrictions relating to a credit life insurance agency operated on bank premises by insiders; and dis continuance of cash dividends. Deposits— $3.4 million Consent cease-and-desist order entered on January 25, 1978 to re place a temporary order to cease and desist. Bank ordered to cease and desist from unsafe or unsound prac tices and take affirmative action with respect to acceptable management; reduction of adverse classifications; adoption of written lending policies; collection of outstanding and limita tions on future out-of-area loans; limitations on credits to insiders or for the benefit of tw o or more obligors where payment is based on the assets of or revenue derived from the same source; elimination of loan documenta tio n d e ficie n cie s; p ro h ib itio n o f repurchase of participations sold w ith out recourse; recording on the books any liability for repurchase agreements outstanding; adopting a schedule for the periodic balancing of all general ledger accounts; correction of all viola tions of laws and regulations; injection of new capital; review of and restric tions on all compensation to, and expense allowance of, directors and officers; review of income and expense statements monthly; maintenance of adequate records for Federal and State income taxes; disclosures and restric tions relating to a credit life insurance agency operated on bank premises by insiders; restrictions on payment of cash dividends; compliance with a separate letter agreement between the bank and the chartering authority; and efforts to collect loans made to or related to control owners and prohibi tion of any new credit to these individuals. 109 Deposits— $102.5 million Consent cease-and-desist order entered on January 25, 1978 to re place a temporary order to cease and desist. Bank ordered to cease and desist from unsafe or unsound prac tices and take affirmative action with respect to entering into any business transactions which exceed $1 0,00 0 in the aggregate with the chairman of the board, his interests, or any person related to him. 110 Deposits— $20.1 million Consent cease-and-desist order entered on March 14, 1978. Bank ordered to cease and desist from unsafe or unsound practices and take affirmative action with respect to com pliance with laws and regulations relat ing to consumer protection, financial recordkeeping and reporting, and bank protection. 111 Deposits— $24.8 million Consent cease-and-desist order entered on March 14, 1978. Bank ordered to cease and desist from unsafe or unsound practices and take affirm ative action w ith respect to acceptable management; reduction of adversely classified assets; adoption of acceptable loan policies; restrictions on new loans to certain insiders; internal control procedures; injection of new capital; and discontinuance of cash dividends. 112 Deposits— $526.0 million Consent cease-and-desist order entered on March 14, 1978. Bank ordered to cease and desist from unsafe or unsound practices and take affirm ative action w ith respect to acceptable management; reduction of adversely classified assets and delin quent loans; injection of new capital; adoption of acceptable loan policies; elimination of loan documentation defi ciencies; and discontinuance of cash dividends. 113 Deposits— $12.2 million Consent cease-and-desist order entered on April 7, 1978. Bank ordered to cease and desist from unsafe or unsound practices and take affirmative CEASE-AND-DESIST ACTIONS action w ith respect to acceptable management; reduction of adversely classified assets; compliance w ith laws, rules, and regulations; reduction of loan volume and overdue loans; adoption of acceptable loan policies; increasing and maintaining capital at a specified relationship to assets; provi sion for adequate liquidity; and internal control procedures. 114 Deposits— $109.7 million Consent cease-and-desist order entered on April 7, 1978. Bank ordered to cease and desist from unsafe or unsound practices and take affirmative action with respect to compliance with consumer protection laws and regula tions pertaining to bank protection and real estate settlement procedures. 115 Deposits— $3.5 million Consent cease-and-desist order entered on April 19, 1978. Bank ordered to cease and desist from unsafe or unsound practices and take affirm ative action w ith respect to acceptable management; reduction of adversely classified and special men tioned assets and loan volume; adop tion of acceptable loan and investment policies; compliance with laws, rules, and regulations; provisions for increas ing capital; discontinuance of cash dividends; procurement of fide lity insurance; and disclosures and restric tions related to the sale of credit life insurance or any o th e r type o f insurance written by bank personnel or written on bank premises incidental to bank loans. 116 Deposits— $12.4 million Notice of charges issued on April 19, 1978 and consent cease-and-desist order entered on May 5, 1978. Bank ordered to cease and desist from unsafe or unsound practices and take affirma tive action with respect to acceptable management; increasing capital; reduc tion of adversely classified assets and overdue loans; limitations on credit to directors, officers, their affiliates and interests, or any tw o unrelated direc tors, o ffice rs, th e ir a ffilia te s and interests where payment is based upon the assets of or derived from the same source; adoption of acceptable loan policies; compliance w ith laws, rules, and regulations; restrictions on credit to out-of-trade-area borrowers and/or loans secured by collateral 39 located out of trade area; elimination of loans secured by certain bank stocks and loans made fo r the pur pose of facilitating the carrying of investment in such bank stocks; and elim ination of loan docum entation deficiencies. 117 Deposits— $1.6 million Notice of charges issued on April 19, 1978 and consent cease-and-desist order entered on June 9, 1978. Bank ordered to cease and desist from unsafe or unsound practices and take affirma tive action with respect to acceptable management; reduction of adversely classified assets and loan volume; adoption of acceptable loan policies; limitations of credit to any person or concern, including any person who controls, is controlled by or under common control w ith such person or concern, or any tw o or more unrelated obligors where payment is based upon the assets of or revenue derived from the same source; prohibition of extensions of credit to out-of-tradearea borrowers and brokered deposits w ith tie-in loans; elimination of loan documentation deficiencies; com pli ance w ith laws, rules, and regulations; internal control procedures; and dis continuance of cash dividends. 118 Deposits— $7.1 million Consent cease-and-desist order entered on April 25, 1978. Bank ordered to cease and desist from unsafe or unsound practices and take affirm ative action w ith respect to acceptable management; reduction of adversely classified assets and overdue loans; adoption of acceptable loan policies; compliance with laws, rules, and regulations; elimination of loan docum entation deficiencies; discon tinuance of cash dividends; increasing capital; internal control procedures; obtaining shareholder and board of director approval of the conduct of an insider related insurance business on bank premises and assurance from the bank's insurer that such operations will not adversely a ffe ct blanket bond coverage; and review of the structure for salaries of officers, directors, and employees. 119 Deposits— $7.3 million Notice of charges issued on May 19, 1978 and consent cease-and-desist order entered September 6, 1978. 40 FEDERAL DEPOSIT INSURANCE CORPORATION Bank ordered to cease and desist from unsafe or unsound practices and take affirm ative action w ith respect to acceptable management; reduction of adversely classified assets and a con centration of credit; adoption of accep table loan policies; compliance with laws, rules, and regulations; provisions for increasing capital; restrictions on payment of cash dividends; and dis closures and restrictions relating to a credit life insurance agency operated on bank premises. 120 Deposits— $7.8 million Consent cease-and-desist order entered on May 24, 1978. Bank ordered to cease and desist from unsafe or unsound practices and take affirm ative action w ith respect to acceptable management; reductions of adversely classified assets and loan v o lu m e ; re p u rc h a s in g a d v e rs e ly classified assets sold to a certain bank; prohibition of the sale or purchase of any assets or services from a certain bank; adoption of acceptable loan and investment policies; compliance with laws, rules, and regulations; dis closures and restrictions relating to a credit life insurance agency operated on bank premises by insiders; and discontinuance of cash dividends. 121 Deposits— $6.1 million Notice of charges issued on June 9, 1978 and consent cease-and-desist order entered on July 14, 1978. Bank ordered to cease and desist from unsafe or unsound practices and take affirm ative action w ith respect to acceptable management; reduction of adversely classified assets, concentra tions of credit, and overdue loans; pro visions for an adequate loan valuation reserve and liquidity; elimination of loan d o cu m e n ta tio n d e ficie n cie s; restrictions on loans to insiders; adop tion of acceptable loan and investment policies; and internal control pro cedures. 122 Deposits— $2.7 million Notice of charges issued on June 9, 1978 and consent cease-and-desist order entered on August 1 1, 1978. Bank ordered to cease and desist from unsafe or unsound practices and take affirm ative action w ith respect to acceptable management; reduction of adversely classified assets and overdue loans; provision for an adequate loan valuation reserve; maintenance of an acceptable level of capital; adoption of acceptable loan policies; and obtaining written appraisals for all criticized real estate loans. 123 Deposits— $4.2 million Notice of charges issued on June 26, 1978 and consent cease-and-desist order entered on August 2, 1978. Bank ordered to cease and desist from unsafe or unsound practices and take affirm ative action with respect to acceptable management; increasing capital; compliance with laws, rules, and regulations; reduction of adver sely classified assets, loan volume, and overdue loans; restriction on credit to insiders and reduction of concentrations of credit to insiders or form er insiders; adoption of accepta ble loan policies; restrictions on credit to out-of-trade-area borrowers and/ or loans secured by collateral located out of trade area; and elimination of loan documentation deficiencies. 124 Deposits— $35.3 million Notice of charges issued on July 14, 1978 and consent cease-and-desist order entered on September 6, 1978. Bank ordered to cease and desist from unsafe or unsound practices and take affirm ative action w ith respect to acceptable management in the trust department; elimination of estimated losses; compliance with the Corpora tion's Statement of Principles of Trust Department Management; mainte nance of accurate and adequate files and documentation; discontinuance of investing trust funds in notes secured by junior liens on real estate; a written program for the orderly disposition of all imprudent trust investments; com pliance with laws, rules, and regula tions; provisions for a comprehensive outside audit of the trust department; and provisions for adequate internal audit control. 125 Deposits— $109.0 million Notice of charges issued on July 14, 1978 and consent cease-and-desist order entered on August 11, 1978. Bank ordered to cease and desist from unsafe or unsound practices and take affirm ative action w ith respect to acceptable management; reduction of adversely classified assets; provisions for an adequate loan valuation reserve; adoption of acceptable loan policies; CEASE-AND-DESIST ACTIONS desist from unsafe or unsound prac tices and take affirm ative action with respect to acceptable management; reduction o f adversely classified assets and loan volume; adoption of an acceptable loan policy; elimination of loan documentation deficiencies; injection of new capital; provisions fo r an ad eq ua te loan v a lu a tio n reserve; and discontinuance of cash dividends. elimination of loan documentation defi ciencies; internal control procedures; compliance w ith laws, rules, and regulations; and provisions for an out side audit. 126 127 128 129 Deposits— $3.2 million Notice of charges issued on August 2, 1978 and consent cease-and-desist order entered on September 6, 1978. Bank ordered to cease and desist from unsafe or unsound practices and take affirm ative action with respect to acceptable management; increasing capital; compliance with laws, rules, and regulations; reduction of adver sely c la s s ifie d assets and loan volum e; restrictio ns on cred it to insiders; adoption of acceptable loan policies; provisions for an adequate loan valuation reserve; o ve rd ra ft limitation; elimination of loan docu mentation deficiencies; and provi sions for an outside audit. Deposits— $3.7 million Consent cease-and-desist order entered on August 2, 1978 to replace a temporary order to cease and desist. Bank ordered to cease and desist from unsafe or unsound practices and take affirm ative action w ith respect to entering into any business transaction with and/or from extending direct or indirect credit of any kind to or for the benefit of the controlling shareholder and/or any person related to that per son; acceptable management; reduc tions of adversely classified assets; adoption of acceptable loan policies; prohibition of credit to borrowers who reside out of bank's trade area; com pliance with laws, rules, and regula tions; and the discontinuance of cash dividends. Deposits— $13.0 million Notice of charges issued on August 11, 1978 and consent cease-and-desist order entered on September 15, 1978. Bank ordered to cease and desist from unsafe or unsound practices, and take affirm ative action w ith respect to compliance with consumer protection laws and regulations pertaining to financial recordkeeping and reporting. Deposits— $13.7 million Notice of charges issued on Septem ber 6, 1978 and consent cease-anddesist order entered on November 8, 1978. Bank ordered to cease and 41 130 Deposits— $7.2 million Notice of charges issued on Septem ber 6, 1978 and consent cease-anddesist order entered on November 17, 1978. Bank ordered to cease and desist from unsafe or unsound prac tices and take affirm ative action with respect to acceptable management; reduction o f adversely classified assets and overdue loans; provision fo r an a d eq ua te loan v a lu a tio n reserve; implementation of a reasona ble repayment schedule for one type of loan; elimination of loan documen ta tio n d e fic ie n c ie s ; a d o p tio n o f acceptable loan policies; internal con tro l procedures; com pliance w ith laws, rules, and regulations; and reviewing the appropriateness of and providing documentation w ith respect to fees or compensation for services paid to any d irector or business interests of any officer or director. 131 Deposits— $7.4 million Notice of charges issued on Septem ber 6, 1978 and consent cease-anddesist order entered on November 17, 1978. Bank ordered to cease and desist from unsafe or unsound prac tices and take affirm ative action w ith respect to acceptable management; provisions fo r increasing capital; adoption of acceptable investment and loan policies; reduction of adver sely classified assets; provisions fo r an adequate loan valuation reserve; restrictions on overdrafts and adop tion of an acceptable overdraft policy and extensions of credit to insiders; and compliance w ith laws, rules, and regulations. 132 Deposits— $12.1 million Notice of charges issued on Septem ber 28, 1978 and consent cease-anddesist order entered on December 20, 1978. Bank ordered to cease and desist from unsafe or unsound prac tices and take affirm ative action w ith FEDERAL DEPOSIT INSURANCE CORPORATION 42 respect to acceptable management; reduction o f adversely classified assets and a concentration of credit; p r o h ib itio n o f th e sale a n d /o r purchase of assets involving indebt edness of certain persons or their interests; adoption of policies relating to excess funds sold and loans; com pliance w ith laws, rules, and regula tions; injection of new capital; dis closures and restrictions relating to a credit life insurance agency operated on bank premises by insiders; and dis continuance of cash dividends. 133 Deposits— $4.5 million Notice of charges issued on Septem ber 28, 1978 and consent cease-anddesist order entered on December 20, 1978. Bank ordered to cease and desist from unsafe or unsound prac tices and take affirm ative action with respect to acceptable management; reduction of adversely classified assets and a concentration of credit; p ro h ib itio n on th e sale a n d /o r purchase of assets involving indebt edness of certain persons or their interests; adoptions of policies relat ing to excess funds sold and loan p o lic ie s ; c o m p lia n c e e w ith laws, rules, and regulations; provisions for an adequate loan valuation reserve; adequate documentation of securities transactions; and discontinuance of cash dividends. 134 Deposits— $2.2 million Notice of charges issued on Septem ber 28, 1978 and consent cease-and desist order entered on December 20, 1978. Bank ordered to cease and desist from unsafe or unsound prac tices and take affirm ative action with respect to acceptable management; reduction o f adversely classified assets and a concentration of credit; p r o h ib itio n o f th e sale a n d /o r purchase of assets involving indebt edness of certain persons or their interests; compliance w ith laws, rules, and regulations; remuneration to an insider; adoptions of policies relating to excess funds sold and loans; injec tion of new capital; discontinuance of cash d iv id e n d s ; d is c lo s u re s and restrictions relating to a credit life insurance agency operated on bank premises by an interest of insiders; and assurance that deposit balances at other banks are maintained at reasonable levels. 135 Deposits— $1 2.8 million Notice of charges issued on October 12, 1978 and consent cease-and-desist order entered on December 7, 1978. Bank ordered to cease and desist from unsafe or unsound practices and take affirm ative action with respect to acceptable management and board membership requirements; reduction of adversely classified assets and loan volume; adoption of acceptable loan policies; o ve rd ra ft and cash item restrictions to a certain corporation; restrictions and limitations on exten sions of credit to any person or con cern, including any person who con trols, is controlled by or under com mon control with such person or con cern, or any tw o or more unrelated obligors where repayment is based upon the assets of or revenue derived from the same source, and the sale of excess funds to another financial in s titu tio n ; com pliance w ith laws, rules, and regulations; elimination of loan d o c u m e n ta tio n d e fic ie n c ie s ; injection of new capital; limitations and restrictions on the payment of cash dividends; provision for an ade quate loan valuation reserve; policies regarding other real estate; obtaining appraisals for other real estate and reducing book values accordingly; disclosure and restrictions related to the sale of credit life insurance or any other type of insurance written by bank personnel or written on bank premises incidental to bank loans; and internal control procedures. 136 Deposits— $5.5 million Notice of charges issued on Novem ber 8, 1978 and consent cease-anddesist order entered on December 20, 1978. Bank ordered to cease and desist from unsafe or unsound prac tices and take affirmative action with respect to acceptable management; reduction of adversely classified assets and overdue loans; provision for an ad equate loan valuation reserve; and adoption of acceptable loan policies. 137 Deposits— $5.3 million Consent cease-and-desist order entered on November 17, 1978 to re place a temporary order to cease and desist. Bank ordered to cease and desist from unsafe or unsound prac tices and take affirmative action with respect to acceptable management; CEASE-AND-DESIST ACTIONS reduction of adversely classified assets and overdue loans; provision for ade quate liquidity; prohibition as lender to a certain corporation; prohibition of acting as lead bank in any loan, with or without guarantee, which exceeds the bank's legal lending limit; collection of or conditions under which obligations of tw o insiders may be continued; limitation on loan volume; adoption of acceptable loan policies; prohibition a g a in s t p ro v id in g c o m p e n s a tin g balances at other banks for the benefit of the bank's customers except as per mitted by law and upon approval by the supervisory authorities; compliance with violations of laws and regulations; and elimination of loan documentation deficiencies. of the controlling shareholder and/or any person related to that person. A permanent cease-and-desist order was issued on August 2, 1978. 15 Formal W ritten Agreement Federal Deposit Insurance Act-Section 8(b) Summary of cases Bank No. Deposits— $5.1 million W ritten Agreement entered into on November 8, 1978. Bank agreed for purposes of effecting correction of unsafe or unsound practices to provide acceptable management; reduce loan volume; remove all nongovernmental o u t-o f- tr a d e - a r e a ra te -s e n s itiv e deposits; correct violations of laws, rules, regulations, and technical excep tions; adopt an acceptable loan policy; reduce concentrations of credit and adversely classified assets; submit a plan to increase capital and, until such time as a satisfactory capital condition is achieved, take commissions from the sale of credit life into the income of the bank; contract for an independent out side audit; and discontinue cash divi dends. 17 Deposits— $13.1 million Temporary cease-and-desist order issued on August 4, 1978. Bank was ordered to cease and desist from engaging in any business transaction w ith an uninsured affilia te d bank; extending credit, directly or indirectly, to or for the benefit of the controlling stockholder, his interests, or persons related to him; transacting business of the affiliate in any authorized office of the bank; and permitting any employee of the bank from serving simultaneous ly as an employee of the affiliate. The order was outstanding at yearend. Bank No. Deposits— $3.7 million Temporary cease-and-desist order issued on April 25, 1978. Bank was ordered to cease and desist from enter ing into any business transaction with and/or from extending direct or indirect credit of any kind to or for the benefit Deposits— $12.8 million Temporary cease-and-desist order issued on August 2, 1978. Bank was ordered to cease and desist from extending any additional credit, directly or indirectly, to or for the benefit of a director, or any payment against uncollected funds; engaging in the sale of any loan participation with recourse; and repurchasing any loan or participa tion sold by the bank without approval from the supervisory authorities. The order also placed certain restrictions on credit to insiders and the bank's loan volume. The order was outstanding at yearend. Temporary Cease-and-Desist Actions Federal Deposit Insurance Act-Section 8(c) 14 Deposits— $5.3 million Temporary cease-and-desist order issued on June 16, 1978. Bank was ordered to cease and desist from acting as lender in a proposed guaranteed extension of credit; and participating as lead bank in any loan, with or w ith out guarantee, which exceeds the bank's legal lending limit, without prior a p p ro v a l fro m th e s u p e rv is o ry authorities. A permanent cease-and-desist order was issued on November 17, 1978. 16 4 43 18 Deposits— $103.9 million Temporary cease-and-desist order issued on December 15, 1978. Bank was ordered to cease and desist from entering into or consummating any transaction for the sale of any bank asset, whether book or nonbook, for FEDERAL DEPOSIT INSURANCE CORPORATION 44 any amount less than face value. The order was outstanding at yearend. Suspension and Prohibition Actions Federal Deposit Insurance Act-Section 8(g) When an officer, director, or other person who participates in the management of an insured nonmember bank is charged, in an in fo rm a tio n , in d ic tm e n t, or c o m p la in t authorized by a U.S. Attorney, with the com mission of, or participation in, a felony involving dishonesty or a breach of trust, the Corporation may suspend or prohibit the person from par ticipating in the affairs of the bank. Suspension proceedings are initiated by the issuance of a Notice and Order of Suspension and Prohibi tion, which is served on the individual involved, specifies the charges, and orders the individual to be suspended from his position and prohibited from participating in the affairs of the bank. The suspension and/or prohibition remains in effect until the matter is disposed of or terminated by the FDIC. If convicted of the offense, a removal order may be issued. After the s ta tu to ry a u th o rity fo r suspending individuals was ruled unconstitutional by a Federal district court in 1976 (Feinbergv. FDIC, 420 F. Supp. 109 (D.D.C. 1976)), the FDIC issued regulations during November 1977 to address the deficiencies found by the court. The FIRIRCA provides hearing requirements for section 8(g) actions and thus remedies the con stitutional defects found by the court. Four such orders were issued in 1978 against three individuals serving as officers and/or directors of four banks. MERGER DECISIONS OF THE CORPORATION PART THREE BANKS INVO LVED IN ABSORPTION APPROVED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION IN 1 9 7 8 State Town or City Bank Alabama Cullman First Alabama Bank of Cullman (in organization) First State Bank of Cullman, Alabama, Inc. Bank of East Lauderdale (in organization; change title to East Lauderdale Banking Company) East Lauderdale Banking Company Rogersville California Connecticut Healdsburg Branch— The First National Bank of Cloverdale Encino (Los Angeles) First State Bank of Encino (in organization) La Jolla La Jolla Bank & Trust Company Los Angeles (Sun Valley) American Pacific State Bank Los Angeles Imperial Bank North Hollywood North Hollywood Branch— The Hongkong Bank of California Oceanside W est Coast National Bank Palo Alto *San Jose and San Francisco Branches— Camino— California Bank San Francisco Encino Branch— The Hongkong Bank of California Santa Rosa Bank of Sonoma County 102 102 102 102 Cloverdale Hartford New Haven Plainville Waterbury Florida Page Auburndale Brooksville Cocoa Collier County (P.O. Naples) Deerfield Beach Dunedin Fort Lauderdale Haines City Hernando County (P.O. Spring Hill) Hollywood Indialantic Jacksonville 53 94 60 80 95 Colonial Bank of Hartford Colonial Bank of New Haven (change title to Colonial Bank) Colonial Bank of Plainville Colonial Bank of Waterbury 82 82 82 Barnett Bank of Auburndale (change title to Barnett Bank of East Polk County) Hernando State Bank Southeast National Bank of Cocoa Barnett Bank of Collier County 100 100 100 100 Southeast Bank of Deerfield Beach Southeast National Bank of Dunedin Southeast Everglades Bank of Fort Lauderdale (change title to Southeast Bank of Broward) Southeast Bank of Galt Ocean Mile The Exchange Bank of Central Florida (change title to Exchange Bank of Polk County) First American National Bank of Hernando County Southeast Bank of Hollywood Hills Landmark Bank of Brevard Atlantic Bank of Lake Forest Atlantic Bank of Normandy Atlantic Bank of South Jacksonville Atlantic Bank of Springfield (change title to Atlantic Bank of Jacksonville) Atlantic Bank of West Jacksonville Atlantic University Bank 'Banks absorbed in "emergency” approvals under provisions of Section 18(c). 95 80 94 53 60 82 100 100 100 100 100 100 100 100 100 100 100 100 100 100 48 State FEDERAL DEPOSIT INSURANCE CORPORATION Town or City Lake W orth Largo Lauderhill Melbourne Miami Miramar Naples North Palm Beach Oakland Park Orlando Pensacola Pinellas Park Sanford Satellite Beach South Pasadena Tallahassee Titusville Winter Haven Georgia Dalton Columbus Griffin Montezuma Oglethorpe Bank Flagship State Bank of Arlington Flagship State Bank of Jacksonville (change title to Flagship Bank of Jacksonville) Flagship State Bank of North Jacksonville Flagship State Bank of South Jacksonville First American Bank of Lake Worth, National Association Southeast First Bank of Largo (change title to Southeast Bank of Pinellas) Pan American Bank of Inverrary (change title to Pan American Bank of Broward) Landmark Bank of Melbourne, National Association Southeast Bank of Melbourne Commercial Bank & Trust Company North Miami Branch — City National Bank of Miami Southeast Bank of Miramar Barnett Bank of Naples First American Bank of North Palm Beach (change title to First American Bank of Palm Beach County) Pan American Bank of Broward County, National Association Flagship Bank of Orlando Flagship Bank of West Orlando, National Association The Bank of West Florida The W est Pensacola Bank (change title to The W est Florida Bank) Southeast Bank of Pinellas Park Flagship U.S. Bank of Seminole Flagship Bank of Sanford (change title to Flagship Bank of Seminole) Southeast First National Bank of Satellite Beach Southeast National Bank of St. Petersburg Flagship American Bank of Tallahassee Flagship Peoples Bank of Tallahassee The Gulf National Bank The Lewis State Bank Southeast Bank of Titusville (change title to Southeast Bank of Brevard) Barnett Bank of East Polk County, National Association The Exchange National Bank of W inter Haven Hardwick Bank & Trust Company Normandy Carpets Employees' Credit Union CB&T Second Mortgage Company (in organization) Columbus Bank and Trust Company CBT-lnterim, Inc. (in organization) Commercial Bank & Trust Company The Citizens Bank of Montezuma (change title to The Bank of Macon County) Bank of Oglethorpe Page 100 100 100 100 96 100 101 100 100 68 68 100 100 96 101 101 101 90 90 100 100 100 100 100 101 101 100 100 100 100 100 56 56 102 102 102 102 54 54 BANK ABSORPTIONS APPROVED BY THE CORPORATION State Illinois Town or City Bank Valdosta Investors of Georgia, Inc. The Park Avenue Bank Arlington Heights Chicago Indiana Cross Plains East Enterprise New Albany Versailles Vevay *North Point State Bank The Bank & Trust Company of Arlington Heights Drovers Bank of Chicago (in organization) *The Drovers' National Bank of Chicago The Cross Plains State Bank East Enterprise State Bank American Bank Floyd County Bank Bank of Versailles Vevay Deposit Bank Kentucky Cynthiana Harrison State Bank Company (in organization) The Harrison Deposit Bank and Trust Company Maine Bangor Depositors Trust Company of Bangor (change title to Depositors Trust Company of Eastern Maine) The Liberty National Bank in Ellsworth Gardiner Savings Institution Hallowell Savings and Loan Association Depositors Trust Company of Portland (change title to Depositors Trust Company of Southern Maine) Springvale National Bank Ellsworth Gardiner Hallowell Portland Springvale Maryland Baltimore Hancock Hyattsville Potomac Salisbury Silver Spring Towson Michigan Brighton Frankenmuth Hartford Merrill Newport Missouri Hawk Point Troy The Equitable Trust Company Blue Ridge Trust Company (in organization; change title to The Peoples National Bank of Hancock) The Peoples National Bank o f Hancock Suburban Trust Company Free State Bank and Trust Company Truckers and Savings Bank American Bank of Maryland (change title to First American Bank of Maryland Chesapeake National Bank BSB Bank (in organization) The Brighton State Bank Frankenmuth Bank & Trust VB State Bank (in organization; change title to Van Buren State Bank) Van Buren State Bank The Farmers and Merchants State Bank of Merrill Newport Bank (in organization; change title to The Newport State Bank) The Newport State Bank Peoples Bank of Hawk Point (change title to Peoples Bank of Lincoln County) Citizens Bank of Troy 'Banks absorbed in “ emergency" approvals under provisions of Section 18(c). 49 Page 56 56 98 98 54 54 57 85 63 63 57 85 102 102 98 98 86 86 99 99 83 102 102 75 75 83 87 87 102 102 88 102 102 88 102 102 91 91 50 FEDERAL DEPOSIT INSURANCE CORPORATION State Town or City Bank New Jersey Atlantic City Clifton Guarantee Bank Phillipsburg and Pohatcong Branches— New Jersey Bank (National Association) Bank of West Jersey 64 97 Burlington County Trust Company Swedesboro Trust Company The Town & Country Bank 97 69 64 Albany Savings Bank The Citizens Bank Erie Federal Savings and Loan Association The Bank of Le Roy (change title to Genesee Country Bank) East River Savings Bank 71 81 58 The New York Bank for Savings Oneida Federal Savings and Loan Association First Chartered Savings and Loan Association 84 The Cumberland Bank Morehead Plaza Branch— Bank of North Carolina, National Association County Bank & Trust Company (in organization) Peoples Bank & Trust Company 81 Delran Township (P.O. Delran) Moorestown Swedesboro Raritan Township (P.O. Flemington) New York Albany Attica Buffalo Le Roy New York (Manhattan) Oneida Port Jervis North Carolina Fayetteville Jacksonville Morehead City Rocky Mount Ohio Harpster Union Township (P.O. Morristown) Page 69 81 58 71 84 79 79 81 Upper Sandusky The Harpster Bank F. S. B. C. State Bank (in organization; change title to The Eastern Ohio Bank) The Eastern Ohio Bank The Commercial Savings Bank Oregon Coos Bay Lincoln City McMinnville Medford Western Bank Lincoln Bank Yamhill County Bank Crater National Bank 89 67 67 89 Pennsylvania Abbottstown Bedford Brockway Brookville Hanover Hawley Johnstown Scranton Abbottstown State Bank The First National Bank in Bedford Brockway Citizens Bank Brookville Bank and Trust Company Farmers Bank and Trust Company of Hanover The First National Bank of Hawley Johnstown Bank and Trust Company West Side Bank (change title to First State Bank) 73 60 72 72 73 76 60 76 South Dakota Morristown W atertown First Security Bank Farmers and Merchants Bank and Trust of Watertown 93 65 102 102 65 93 BANK ABSORPTIONS APPROVED BY THE CORPORATION State Town or City Bank Texas Austin 900 Congress State Bank (in organization; change title to Texas State Bank) Texas State Bank Clifton Bank New Clifton State Bank (in organization) Greenville Avenue Bank & Trust Walnut Hill & Greenville Bank (in organization; change title to Greenville Avenue Bank and Trust) Bank of Fort W orth Camp Bowie Bank (in organization; change title to Ridglen Bank) New Bank of Fort W orth (in organization; change title to Bank of Fort Worth) Ridglen Bank Allied Champions Bank (in organization) Champions Bank East Freeway State Bank (in organization; change title to First State Bank and Trust Company of Houston) First State Bank and Trust Company of Houston Main Bank of Houston New Main Bank of Houston (in organization) Lewisville State Bank New Lewisville State Bank (in organization) Clifton Dallas Fort W orth Houston Lewisville Utah Helper Kamas Logan Ogden Salt Lake County (P.O. Salt Lake City) Virginia Herndon McLean Springfield Other Areas Puerto Rico Mayaguez Ponce San Juan (P.O. Hato Rey) San Juan The Helper State Bank Kamas State Bank Commercial Security Bank of Logan Commercial Security Bank Citizens National Bank (change title to The Citizens Bank) Commercial Security Bank of Salt Lake Arlington Trust Company, Incorporated (change title to First American Bank of Virginia) Clarendon Bank & Trust Alexandria National Bank of Northern Virginia Page 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 67 77 70 67 77 55 59 59 59 Banco Comercial de Mayaguez "Banco Credito y Ahorro Ponceno *Banco de Ahorro de Puerto Rico 78 62 78 Banco de Santander-Puerto Rico Banco Popular de Puerto Rico 62 62 *Banks absorbed in “ emergency” approvals under provisions of Section 18(c). 51 FEDERAL DEPOSIT INSURANCE CORPORATION 52 BANKS INVOLVED IN ABSORPTIONS DENIED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION IN 1978 State Town or City Indiana Edinburg Franklin The Edinburg State Bank Franklin Bank and Trust Company 103 103 Mississippi Magnolia McComb Southwest Mississippi Bank (change title to First Bank of Southwest Mississippi) BankofM cCom b 105 105 Linwood Westmont The Mainland Bank First Peoples Bank of New Jersey 107 107 New Jersey Bank Page 53 BANK ABSORPTIONS APPROVED BY THE CORPORATION Resources (in thousands of dollars) American Pacific State Bank Los Angeles (Sun Valley), California Banking offices in operation Before After 16,584 to acquire assets and assume deposit liabilities o f North Hollywood Branch— The Hongkong Bank of California North Hollywood 3,372* *Total deposits of office to be transferred by the Hongkong Bank of California. Assets not reported by office. Summary report by Attorney General, September 21, 1977 We have reviewed this proposed transaction and conclude that it would not have a substan tial competitive impact. Basis for Corporation approval, January 1 1 ,1 9 7 8 American Pacific State Bank, Los Angeles, California ("Am erican"), a State nonmember insured bank w ith to ta l reso urce s o f $ 1 6 ,5 8 4 ,0 0 0 and IPC deposits of $ 1 2 ,2 7 9 ,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the FDIC's prior consent to acquire a portion of the assets of and assume liability to pay a portion of the deposits made in The Hongkong Bank of California, San Fran cisco, California ("Hongkong"), and to estab lish the North Hollywood Branch (total deposits $3 ,372 ,0 00 ) of the latter as a branch of American, increasing the number of its offices to two. Competition. American operates its sole office in Sun Valley, a section of the city of Los Angeles located approximately 15 miles northwest of the downtown area. Hongkong operates nine offices with its head office and one branch in San Francisco, five branches in Los Angeles County, one branch in S acram ento, and one in Agana, Guam. Hongkong has indicated its intention to confine its operations to major financial and foreign trade centers and to reduce its retail business, and the disposition of its North Hollywood Branch is a part of this retrenching program. The proposed transaction would have its most direct and immediate effects in the trade area of Hongkong's North Hollywood Branch. This branch is located approximately 11 miles northwest of downtown Los Angeles in a section of the city known locally as North Hollywood (estimated population 93,000). The area is primarily a "bedroom " community with economic activity limited to retail and service type businesses. In this local area, five banks maintain seven offices holding aggregate IPC deposits of $198,368,000. Hongkong holds the smallest share ($2,946,000), a nominal 1.5 percent of IPC deposits. American is not represented in the trade area. Following the proposed transaction, American would acquire Hongkong's small share of these deposits. Hongkong's North Hollywood Branch is located approximately 4 road-miles southwest of American's sole office. Both banks are located in the Los Angeles metropolitan area which can be approximated by Los Angeles County. Within Los Angeles County, American ranks as the 64th largest commercial banking organization and has a 0.04-percent share of the countywide IPC deposits. Hongkong ranks 31 st with a 0.16-percent share. Although some existing competition between the two banks w o uld be elim ina ted by the proposed tra n sa ctio n , the ad d itio n o f H o ng kong 's deposits to American's totals would constitute a de minimus addition to existing concentration levels w ithin the county and would not perceptibly a ffe ct its commercial banking structure. As California law provides for statewide branching, American could enter the trade area through de novo branching, although expansion into this area dominated by other banks is not anticipated. Hongkong is retrenching and is not likely to expand its operations in the area through de novo branching. For these reasons, it appears that the approval of the transaction would not eliminate significant existing or potential competition be tween the proponents, nor would it affect the structure of commercial banking in any relevant area. The Board of Directors, therefore, has concluded that the proposed transaction would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. American has satisfactory financial and managerial resources and the proposed transaction should have no adverse effect on these resources. Its future prospects appear favorable. FEDERAL DEPOSIT INSURANCE CORPORATION 54 Convenience and Needs of the Community to be Served. American will not offer the trust and international services presently offered by Hongkong, and American's lending limits are lower. The effect on convenience and needs is not considered meaningful, however, as the two largest banks in the State serve the area and can provide these services to the small segm ent o f the p o pu latio n w ith in the community of Sun Valley who require them. American will offer more aggressive retail services in this area. Based on the foregoing, the Board of Directors has concluded that approval of the application is warranted. notice, dispenses with the solicitation of competi tive reports from other agencies, and authorizes the transaction to be consummated immediately. Resources (in thousands of dollars) The Citizens Bank of Montezuma Montezuma, Georgia (change title to The Bank of Macon County) Banking offices in operation Before After 13,729 1 2 8,831 1 to consolidate w ith Bank of Oglethorpe Oglethorpe Resources (in thousands of dollars) Drovers Bank of Chicago (in organization) Chicago, Illinois Banking offices in operation Before 12,127 0 After 1 to purchase certain assets and assume the deposit liabilities o f The Drovers' National Bank of Chicago Chicago 260,275 1 Approved under emergency provisions. No report received from the Attorney General. Basis for Corporation approval, January 19, 1978 Pursuant to Sections 5 and 18(c) and other provisions of the Federal Deposit Insurance Act, applications have been filed for Federal deposit insurance on behalf of Drovers Bank of Chicago, Chicago, Illinois, a newly chartered State non member bank having $12,126,501 in capital, and for consent to its purchase of certain assets of and assumption of liability to pay deposits made in The Drovers' National Bank of Chicago, Chicago, Illinois, w ith total resources of $260,275,000 as of June 30, 1977. As of January 19, 1978, The Drovers' National Bank of Chicago had deposit and other liabilities of some $233,100,000 and operated one office. On January 19, 1978, the Federal Deposit Insurance Corporation was appointed as Receiver of The Drovers' National Bank of Chicago. The Board of Directors finds that the failure of The Drovers' National Bank of Chicago requires it to act immediately and thus waives publication Summary report by Attorney General, October 18, 1977 We have reviewed this proposed transaction and conclude that it would not have a substan tial competitive impact. Basis for Corporation approval, January 25, 1 978 The Citizens Bank of Montezuma, Mon tezuma, Georgia ("Citizens Bank” ), an insured State nonmember bank with total resources of $1 3,72 9,00 0 and total IPC deposits of $10,022,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior consent to consolidate with the Bank of Oglethorpe, Oglethorpe, Georgia ("Oglethorpe Bank"), an insured State nonmember bank with total resources of $8,831,000 and total IPC deposits of $7,267,000, under a new charter with the title "The Bank of Macon County." Oglethorpe Bank's sole office would become the only branch of the resultant bank. Competition. The two banks are located in cities situated about 2 miles apart in Macon County which is in south-central Georgia. The county had a 1970 population of 12,933 which represented a 1.8-percent decline from the 1 960 figure. In this very sparsely populated agricultural area, the banking market most relevant to an evaluation of this proposed transaction would, in our opinion, be an area within a radius of approximately 20 road-miles of Montezuma and Oglethorpe. This would include all of Macon County and adjoining portions of Sumter, Schley, Taylor, Crawford, Peach, Houston, and Dooly Counties. This area is primarily rural with an economy predicated chiefly upon agriculture. The city of Americus, with a 1970 population of 16,091, is located BANK ABSORPTIONS APPROVED BY THE CORPORATION 17 road-miles southwest of Oglethorpe and serves as the area's economic center. Americus and the city of Perry, which had a 1970 population of 7,771 and is about 20 road-miles northeast of Montezuma, provide the major sources of nonfarm employment and shopping convenience to local residents. The relevant market, with the exception of Americus and Perry, has experienced a moderate decline in population. Its median household buying level is substantially below the 1976 state median. Some direct competition would be elimi nated by this proposal. The competitive effect of the transaction, however, is regarded as insignificant in light of the number of alternative sources of commercial banking services avail able. Of the 18 banks operating 22 banking offices in the relevant area, the proponents rank 6th and 1 2th in percentage of total deposits held. The resultant bank would hold merely 10.2 percent of such deposits and would rank third. It appears that a competitive banking cli mate would continue and no significant adverse competitive effects would accrue as a result of the proposed consolidation.* Under Georgia's statutes, each bank may branch within Macon County, and as a result, the prospect of increased competition between the proponents by their de novo expansion would be eliminated by the proposal. In light of the low population density, below average economic indices (such as median household buying levels), and the current employment and shopping commutation patterns, however, such expansion does not appear to be likely. Based on the foregoing, the Board of Direc tors is of the opinion that the proposed transac tion would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. Both banks have satisfactory finan cial and managerial resources, and the resultant bank would have favorable future prospects. Convenience and Needs of the Community to be Served. The proposed consolidation would not substantially change the services now available to customers of either bank, except that the resultant bank would have an increased lending limit. ’ Principals of Citizens Bank acquired effective stock con trol of Oglethorpe Bank on June 27, 1977. Since the cur rent affiliation of the two banks has not heretofore been subject to regulatory scrutiny, the affiliation is of no per suasive value in determining, for purposes of the Bank Merger A ct what competitive impact, if any, the proposed transaction may have. Therefore, the Board of Directors has ignored the affiliation in its assessment of the pro posal. 55 Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tion is warranted. Commercial Security Bank Ogden, Utah Resources Banking offices in operation of dollars) Before After 323,987 15 17 20,865 2 to merge with Commercial Security Bank of Salt Lake Salt Lake County (P.O. Salt Lake City) Summary report by Attorney General, November 15, 1977 The merging banks are both wholly owned subsidiaries of the same bank holding company. As such, their proposed merger is essentially a corporate reorganization and would have no effect on competition. Basis for Corporation approval, January 25, 1978 Commercial Security Bank, Ogden, Utah ("Applicant"), an insured State nonmember bank with total resources o f$ 323 ,9 87 ,0 00 and total IPC deposits of $238,877,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior consent to merge with Commercial Security Bank of Salt Lake, Salt Lake County (P.O. Salt Lake City), Utah ("Other Bank"), an insured State nonmember bank with total resources of $2 0,86 5,00 0 and total IPC deposits of $14,956,000. The banks would merge under the charter and title of Applicant, and incident to the transaction, the 2 offices of Other Bank would be established as branches of the resulting bank bringing the total number of its offices to 17. Competition. E ssentially a co rp o ra te reorganization, the proposal would provide a m eans by w h ic h C o m m e rc ia l S e c u rity Bancorporation, Ogden, Utah, a registered bank holding company, may consolidate most of its operations. The proponents have been under common control since 1974. The proposed merger would not affect the structure of commercial banking or the concentration of banking resources within any relevant market. In view of the foregoing, the Board of Directors is of the opinion that the proposed FEDERAL DEPOSIT INSURANCE CORPORATION 56 merger would not, in any section of the country, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The proponents' financial and managerial resources are considered adequate for the purposes of this proposal. The financial and managerial resources of the resultant bank would be satisfactory and its future prospects appear favorable. Convenience and Needs of the Community to be Served. The services to be offered in the relevant market by the resultant bank would not differ materially from those presently offered by each proponent. On the basis of the foregoing information, the Board of Directors has concluded that approval of the application is warranted. Resources (in thousands of dollars) The Park Avenue Bank Valdosta, Georgia 11,237 Banking offices in operation Before After 2 2 to merge with Investors of Georgia, Inc. Valdosta 271 Summary report by Attorney General, November 30, 1977 We have reviewed this proposed transaction and conclude that it would not have a substan tial competitive impact. Basis for Corporation approval, February 16, 1978 Resources (in thousands of dollars) Hardwick Bank & Trust Company Dalton, Georgia 49,972 Banking offices in operation Before 4 After 4 to purchase the assets and assume the liabilities o f Normandy Carpets Employees' Credit Union Dalton 99 Approved under emergency provisions. No report requested from the Attorney General. Basis for Corporation approval, February 1 6, 1 978 Pursuant to Section 18(c) and other provi sions of the Federal Deposit Insurance Act, Hardwick Bank & Trust Company, Dalton, Georgia, a State nonmember insured bank with total resources of $4 9,97 2,00 0 and total IPC deposits of $41,468,000, has applied for the Corporation's prior consent to purchase the assets and assume the liabilities of Normandy Carpets Employees' Credit Union, Dalton, Georgia ("Credit Union” ), a State-chartered, noninsured financial institution w ith total resources o f $ 9 9 ,0 0 0 and lia b ilitie s of $91,000. The Board of Directors finds that the fact that the Georgia Department of Banking and Finance has taken possession as receiver of Credit Union requires it to act immediately and thus waives publication of notice and dispenses with ths solicitation of competitive reports from other agencies, and authorizes the transaction to be consummated immediately. The Park Avenue Bank, Valdosta, Georgia ("Park Bank"), an insured State nonmember bank with total resources o f$ 1 1,237,000 and total IPC deposits of $8,734,000, has applied pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior consent to merge, under its charter and title, with Investors of Georgia, Inc., Valdosta, Georgia ("Company"), a noninsured financial company with total resources of $2 71 ,0 00 (as of November 14, 1977). Park Bank presently operates one branch in the city of Valdosta. Company occupies office space at Park Bank's main office, and no additional offices are involved in the proposed merger. Competition. Both institutions operate in Lowndes County, Georgia, which borders on the State of Florida. The county, which had a 1970 population of 55,112, is primarily rural with an economy predicated chiefly upon agriculture. The city of Valdosta, (1970 population 32,303) serves as the county seat and the area's economic center. Six banking organizations operated a total of 14 banking offices in the county. The local banking market is dominated by three offices of the State's largest banking organization, which holds 37.8 percent of the county's IPC deposits. Park Bank holds 7.3 percent of such deposits and ranks fourth in the county by that measure. The proposed transaction will have no effect upon these percentages and is not regarded as having any significant effect upon competition in Lowndes County. Due to the asset structure and nature of Company, and the fact that it was established by the principal shareholders of Park Bank, it is doubtful that direct competition with Park Bank has ever existed. As Company is phasing down its activities with a view toward possible BANK ABSORPTIONS APPROVED BY THE CORPORATION dissolution, the potential for future competition is nonexistent and not regarded as material to the consideration of the proposed transaction. Based on the foregoing, the Board of Directors is of the opinion that the proposed transaction would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. Both institutions have adequate financial and managerial resources for the p u rp o s e o f th is p ro p o s a l. W ith th e contemplated increase in capital, the resultant bank would have favorable future prospects. Convenience and Needs of the Community to be Served. The proposed merger would have no material effect on services now available to customers in the service area. Considerations of convenience and needs of the community are consistent with approval of the application. Based on the foregoing, the Board of Directors has concluded that approval of the application is warranted. Resources (in thousands of dollars) Bank of Versailles Versailles, Indiana Banking offices in operation Before After 7,257 2 3 1,957 1 to merge with The Cross Plains State Bank Cross Plains Summary report by Attorney General, September 14, 1977 We have reviewed this proposed transaction and conclude that it would not have a substan tial competitive impact. Basis for Corporation approval, February 16, 1978 Bank of Versailles, Versailles, Indiana, a State nonmember insured bank, with total resources of $7 ,257,000 and total IPC deposits of $5,602,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior consent to merge, under its charter and title, with The Cross Plains State Bank, Cross Plains, Indiana ("S ta te B a n k"), a S tate nonmember insured bank with total resources of $1 ,957,000 and total IPC deposits of $1,510,000. Incident to the transaction, the sole office of State Bank would be established as a branch of the resultant bank. 57 Competition. The proponents are located in Ripley County, which is in southeastern Indiana. Bank of Versailles operates a main office and a branch in Versailles (1970 population 1,120), the county seat, approximately 10 road-miles northwest of Cross Plains where State Bank maintains its sole office. Ripley County (1970 population 21,138) is rural with an economy predicated chiefly upon agricultural activities. The s o u th e rn p o rtio n s o f th e c o u n ty experienced a population decline in the period 1960 to 1970 with the town of Versailles recording a 12-percent loss. The county ranks substantially below the 1976 State median household buying level. Of the 8 commercial banks operating 11 offices in Ripley County, Bank of Versailles and State Bank are the smallest 2, holding 5.0 per cent and 1.3 percent of the county's IPC deposits, respectively. The resultant bank would hold 6.3 percent of such deposits and continue to rank as the county's smallest com mercial bank in IPC deposit holdings. It would appear that the structure of commercial bank ing in Ripley County would not be significantly effected by the proposed transaction.* Under Indiana statutes, banks headquartered in Ripley County may branch de novo and merge only within the confines of the county, subject to home office protection. In light of the limited scope of operation of the proponents and the limited number of towns in the county which are not already served by a home office or branch of an established bank, de novo branching appears an unlikely vehicle for increased future competition between these two banks. The primary trade area most affected by the proposed transaction would be the area within a 10-mile radius of Cross Plains, including the southern portion of Ripley County and adjoining portions of Dearborn, Ohio, Switzerland, and Jefferson Counties. The population of the area is approximately 8,700. A total of four com mercial banks operate five offices in the area with the proponents ranking third and fourth in percentage of IPC deposits held. The resultant bank would hold 30.3 percent of such deposits ‘ On May 23, 1977, Mr. John House, principal stockholder of the Bank of Versailles, purchased effective stock con trol of State Bank. In December, 1977, effective stock control of both proponents was sold to Frank L. Farrar. Since the current affiliation of the two banks has not heretofore been subject to regulatory scrutiny, the affilia tion is of no persuasive value in determining, for purposes of the Bank Merger Act, what competitive impact, if any, the proposed transaction may have. Therefore, the Board of Directors has ignored the affiliation in its assessment of the proposal. FEDERAL DEPOSIT INSURANCE CORPORATION 58 and remain the smallest competitor in the trade area. Due to the depressed economic situation and relatively small market area, the slight increase in concentration that will result from this merger is not competitively significant. A number of alternate sources of commercial banking services are available in the nearby urban areas of Madison and LawrenceburgAurora, where a number of the trade area's resi dents commute for shopping alternatives and nonfarm employment. It would appear that a competitive banking climate would continue in the market and that no significant adverse com petitive effect would accrue as a result of the proposed transaction. Based on the foregoing, the Board of Direc tors is of the opinion that the proposed transac tion would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The considerations relating to finan cial and managerial resources of each institu tion have been satisfactorily resolved. The resultant bank is anticipated to have favorable future prospects. Convenience and Needs of the Community to be Served: The proposed merger would result in no substantial change in the services now available to customers of either bank. Con siderations of convenience and needs of the community are consistent with approval of the application. Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tion is warranted. Resources (in thousands of dollars) East River Savings Bank New York (Man hattan), New York Banking offices in operation Before After 1,495,334 13 17 57,384 4 to merge with Erie Federal Savings and Loan Asso ciation Buffalo Summary report by Attorney General, January 4, 1977 The closest offices of Applicant and Erie are 4 50 miles apart, and according to the applica tion, each has an insignificant number of accounts originating from the area served by the other. The proposed transaction, therefore, would not eliminate any significant existing competition. Erie holds the seventh largest share (1.2 percent) of deposits held by the 10 thrift institutions presently operating in Erie County (three savings banks, which hold approximately .91 percent of Erie County thrift institutions deposits, and four savings and loan associations). In view of Erie's size and position among Erie County thrift institutions, Applicant's entry into Buffalo by means of the proposed acquisition would not have an adverse effect upon com petition. Basis for Corporation approval, February 24, 1978 East River Savings Bank, New York (Manhat tan), New York ("Savings Bank” ), an insured mutual savings bank with total resources of $ 1 ,4 9 5 ,3 3 4 ,0 0 0 and to ta l de p o sits o f $1,391,594,000, has applied, pursuant to Section 18(c) and other provisions of the Federal D eposit Insurance A ct, fo r the Corporation's prior consent to merge, under its charter and title, with Erie Federal Savings and Loan A s s o c ia tio n , B u ffa lo , New Y o rk (“ Association” ), a federally insured savings and loan association w ith total resources of $ 5 7 , 3 8 4 , 0 0 0 and t o t a l d e p o s its o f $51,357,000. Incident to the merger, the 4 offices of Association would become branches of the resultant bank, increasing to 17 the number of its offices. Competition. The market most affected by the proposed transaction would be Erie County, New York, where Association operates its head office and three branches. Erie County (1970 population 1,1 13,49 1) is located in the northwestern portion of New York State adjacent to the Canadian border. Buffalo (1970 population 462,768) is the area's largest city and chief economic center and is regarded as a regional center for wholesale, retail, and foreign trade. While the city of Buffalo has sustained a decrease in population in the period 1960 to 1970 and ranks below the 1976 State median household buying level, the surrounding area of Erie County has shown a reversal of those trends. Erie County has a stable, diversified economic base predicated upon heavy industry, manufacturing, transportation, service, and retail business. The Erie County thrift institution market contains 3 mutual savings banks and 7 savings and loan associations operating a total of 60 banking offices. Association is the seventh largest of these institutions, holding 1.3 percent of the county's thrift institution deposits. BANK ABSORPTIONS APPROVED BY THE CORPORATION The primary service area of Savings Bank consists of the New York City - Long Island metropolitan market which is located in the extreme southeastern portion of New York State. The trade areas of the two proponents are regarded as separate and distinct, with a distance of more than 400 miles separating their nearest offices. It is evident that there is no significant existing competition between the two institutions which would be eliminated by their merger. Any possibility that competition may develop between the proponents through de novo branching appears remote. The modest size of Association would seem to preclude its entry in to the d ista n t, in te nsive ly co m p e titiv e metropolitan New York City market. Savings Bank, governed by a State statute limiting its de novo expansion to one such office each year, would likely prefer entry into an area less distant than the Buffalo market. Under the circumstances, the Board of Directors is of the opinion that the proposed merger would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The fin a n cia l and m anagerial resources of each institution, and of the resulting bank, are considered satisfactory. W ith th e c o n te m p la te d a d d itio n o f subordinated debentures to the surplus, the future prospects of the resulting bank are favorable. Convenience and Needs of the Community to be Served. Savings Bank's entry into the Buffalo market would make available certain services not now offered by Association. Considerations of convenience and needs of the community to be served are consistent with approval of the application. Resources (in thousands of dollars) Arlington Trust Company, In corporated Herndon, Virginia (change title to First American Bank of Virginia) 59 Banking offices in operation Before After 276,603 15 43 248,595 16 148,222 12 to merge with Clarendon Bank & Trust McLean and Alexandria National Bank of Northern Virginia Springfield Summary report by Attorney General, December 20, 1977 The merging banks are both wholly owned subsidiaries of the same bank holding company. As such, their proposed merger is essentially a corporate reorganization and would have no effect on competition. Basis for Corporation approval, February 24, 1978 A rlington Trust Company, Incorporated, Herndon, Virginia ("A rlingto n T ru st''), an insured State nonmember bank with total resources o f$ 2 7 6 ,6 0 3 ,0 0 0 and total IPC deposits of $ 2 0 9 ,2 4 8 ,0 0 0 , has filed an application pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, seeking the Corporation's prior written approval to merge with Clarendon Bank & Trust, McLean, Virginia ("Clarendon Bank"), with total resources of $2 48 ,5 95 ,0 00 and total IPC deposits of $204,137,000, and Alexandria National Bank of Northern Virginia, Springfield, Virginia ("Alexandria N ational"), w ith total resources of $1 48 ,2 22 ,0 00 and total IPC deposits of $126,991,000. The resultant bank will operate under the charter of Arlington Trust and with the title First American Bank of Virginia. The 17 offices of Clarendon Bank (including 1 approved but unopened branch) and 12 offices of Alexandria National would be established as branches of the resultant bank, and incident to the merger, the main office location would be redesignated to the present main o ffice site of Clarendon Bank. The resultant bank would commence operations with a total of 44 offices. 60 FEDERAL DEPOSIT INSURANCE CORPORATION Competition. All three banks are controlled by Financial General Bankshares, Inc., Washington, D.C. This holding company is the eighth largest commercial banking organization in Virginia, controlling eight commercial banks w h o s e t o t a l d e p o s it s a g g r e g a t e $773,670,000, or 5.0 percent of the State's total commercial bank deposits. The sole purpose of the proposed merger is to enable F in a n cia l G eneral B an ksha res, Inc. to consolidate its operations in Northern Virginia. The proposed merger is essentially a corporate reorganization and would not a ffe c t the structure of commercial banking or the concentration of banking resources in any relevant market area. Under those circumstances, the Board of Directors is of the opinion that the proposed merger would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. Each of the three proponents has adequate financial and managerial resources for the business they conduct, as would the resultant bank. The future prospects of the resultant bank are favorable. Convenience and Needs of the Community to be Served. The services to be offered in the relevant market by the resultant bank would not differ materially from those presently offered by each proponent. On the basis of the foregoing, the Board of Directors has concluded that approval of the application is warranted. Basis for Corporation approval, March 10, 1978 Pursuant to Section 18(c) and other provi sions of the Federal Deposit Insurance Act, Imperial Bank, Los Angeles, California, an insured State nonmember bank with total resources o f$ 3 1 5 ,8 5 4 ,0 0 0 and total IPC deposits of $24^,1 76,000, has applied for the Corporation's prior consent to purchase certain assets and assume the liability to pay deposits made in two branches of Camino — California Bank, Palo Alto, California ("Camino Bank” ), also an insured State nonmember bank, with total resources of $22,111,000 and total IPC deposits of $17,267,000. The San Jose and the San Francisco branches (total IPC deposits of $10,386,000) of Camino Bank would be established as branches of Imperial Bank under the terms of the proposed transaction. The Board of Directors finds that the probability of imminent failure of the Camino Bank requires it to act immediately and thus waives publication of notice and dispenses with the solicitation of competitive reports from other agencies, and authorizes the transaction to be consummated immediately. Resources (in thousands of dollars) Johnstown Bank and Trust Company Johnstown, Pennsylvania Banking offices in operation Before After 149,748 16 20 30,191 4 to merge w ith Resources (in thousands of dollars) Imperial Bank Los Angeles, California 315,854 Banking offices in operation Before After 13 15 to purchase certain assets and assume the deposit liabilities o f San Jose and San 10,386* Francisco Branches — Camino—California Bank Palo Alto 2 'Total IPC deposits of two branches of Camino — California Bank to be acquired by Imperial Bank. Assets not reported by office. Approved under emergency provisions. No report requested from the Attorney General. The First National Bank in Bedford Bedford Summary report by Attorney General, December 13, 1977 Bank's office locations are limited to Bedford County, where Applicant at present has no offices. The closest offices of the two institu tions are approximately 25 miles apart and are located in different markets. No branch offices of either bank will be closed if the merger is consummated. Accordingly, the merger should have no appreciable effect on actual competi tion in the market area now served by Bank. The proposed merger, however, will have an adverse effect on potential competition in Bed ford County. At present eight banks have office locations there, of which Bank is the second largest. Banking is highly concentrated: the top two banks have a combined market share of 51 BANK ABSORPTIONS APPROVED BY THE CORPORATION percent and the top four have a combined market share of 76 percent. Bank's market share is approximately 21 percent. As a relatively large regional bank, Applicant has the resources to enter the Bedford County market de novo or by a less anticompetitive acquisition of one of the smaller banks. However, there are numerous potential entrants into the market from among the banks located in counties sur rounding Bedford County, under Pennsylvania's contiguous county branching laws. We have reviewed this proposed transaction and conclude that it would not have a substan tially adverse effect on competition. Basis for Corporation approval, March 14, 1978 Johnstow n Bank and Trust Company, Johnstown, Pennsylvania (“ Johnstown Bank''), an insured State nonmember bank with total resources of $1 49 ,7 48 ,0 00 and total IPC deposits of $ 1 2 7 ,2 2 8 ,0 0 0 , has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the FDIC's prior consent to merge with The First N a tio n a l B an k in B e d fo rd , B e d fo r d , Pennsylvania ("B edford Bank''), w ith total resources of $ 3 0 ,1 9 1 ,0 0 0 and total IPC deposits of $25,840,000, under the charter and title of Johnstown Bank. Incident to the merger, the 4 existing offices of Bedford Bank would become branches of the resultant bank, increasing the number of its authorized offices to 21. Competition. Johnstown Bank operates 16 offices: its main office and 7 branches in Cambria County, 6 branches in Somerset County, and 2 branches in Westmoreland County. It has received approval to establish an additional branch in Cambria County. Bedford Bank operates four offices in Bedford County: its main office and one branch in Bedford, one branch in Schellsburg, and one branch in Manns Choice. Bedford County (1970 population 42,353, down from 42,451 in 1960) is situated immediately southeast of Cambria County. Approximately two-thirds of Bedford County is forest land while the remainder is devoted pri marily to agricultural pursuits. Light manufac tu rin g , re ta il e s ta b lis h m e n ts , s e rv ic e enterprises, and tourism provide some diver sification for the county's economy. Bedford County's 1976 median household buying level was $11,399, some 21 percent below the comparable State figure. The effects of the proposed merger would be confined primarily to the central portion of Bedford County within a radius of approximate ly 1 2 road-miles of the town of Bedford. Bed Bank is one of five commercial banks Digitized for ford FRASER 61 operating a total of nine offices in this portion of the county and holds the largest share, 32.5 percent, of IPC deposits as of June 30, 1977. The First National Bank of Everett, located 10 miles east of Bedford, and The Hartley National Bank of Bedford each hold 24.4 percent, which is the next largest share of IPC deposits. Johns town Bank is not represented in Bedford County and would merely succeed to Bedford Bank's share of the deposits. Thus, the structure of commercial banking in the local market would not be affected by the proposed merger. There is no significant existing competition between the two proponents. Travel between Johnstown and Bedford is impeded by the mountainous terrain. Major highways in the area run north to south, and except for the Penn sylvania Turnpike, east-west travel is quite limited. Residents of the two areas are not likely to cross commute for shopping or employment. The closest offices of the proponents are 35 miles apart, and neither bank draws a signifi cant measure of business from the other's pri mary trade area. Pennsylvania law limits commercial bank expansion by either merger or de novo branch ing to the county in which the main office is located and to contiguous counties. Johnstown Bank has a maximum legal branching area con sisting of Bedford, Blair, Cambria, Clearfield, Indiana, Somerset, and Westmoreland Coun ties. Thus, each proponent could legally branch de novo into areas presently served by the other. Bedford County, however, recorded a slight population decline between 1960 and 1970, and its income level is substantially below that of the State as a whole, which makes de novo expansion into Bedford County unattractive for Johnstown Bank. Bedford Bank is not likely to attempt further de novo expan sion due to its relatively limited financial and managerial resources. Therefore, the proposed merger would not eliminate any significant potential competition between the proponents. As of June 30, 1976, within its maximum legal branching area, Johnstown Bank had the sixth largest share of the total deposits of $2.8 billion with 4.4 percent of such deposits. The proposed merger would add only 0.9 percent to that share. The proposed merger would not eliminate any significant existing or potential competition between Johnstown Bank and Bedford Bank, nor would it materially affect the structure of commercial banking in any relevant area. Based on the preceding, the Board of Direc tors is of the opinion that the proposed merger would not, in any section of the country, sub stantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. FEDERAL DEPOSIT INSURANCE CORPORATION 62 Financial and Managerial Resources; Future Prospects. Both banks have satisfactory finan cial and managerial resources and the resultant bank would have favorable future prospects. Convenience and Needs of the Community to be Served. As a result of the proposed merger, Bedford Bank's customers will enjoy higher savings deposit interest rates, higher certificate of deposit rates, easier access to trust services, and a substantially increased legal lending limit. Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tion is warranted. Resources (in thousands of dollars) Banco de S antanderPuerto Rico San Juan, Puerto Rico 51,664 Banking offices in operation Before After 1 15 196,852* 14 'Deposits of 14 offices of Banco Credito y Ahorro Ponceno to be acquired by Banco de Santander — Puerto Rico. Approved under emergency provisions. No report requested from the Attorney General. Basis for Corporation approval, March 31, 1978 Banco de Santander— Puerto Rico, San Juan, Puerto Rico, an insured Commonwealth-char tered nonmember bank with total resources of $51,664,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's consent to purchase a portion of the assets of and assume a portion of the liability to pay deposits made in Banco Credito y Ahorro Ponceno, Ponce, Puerto Rico, an insured Commonwealth-chartered nonmember bank. As an incident to the transaction, 14 offices of Banco Credito y Ahorro Ponceno with deposits of $ 1 96 ,8 52 ,0 00 would become branches of Banco de Santander-Puerto Rico. As of March 31, 1978, Banco Credito y Ahorro Ponceno had deposits and other liabilities of some $6 40 million and operated 50 offices. On that date Puerto Rico Secretary of Treasury Julio Cesar Perez closed the bank, Digitized forthe FRASER Resources (in thousands of dollars) Banco Popular de Puerto Rico San Juan, Puerto Rico to purchase a portion o f the assets and assume a portion o f the deposit liabilities o f Banco Credito y Ahorro Ponceno Ponce and the FDIC was named Receiver. This purchase and assumption transaction is a companion to another transaction by which Banco Popular de Puerto Rico, San Juan, Puerto Rico, acquired the other 36 offices of Banco Credito y Ahorro Ponceno. The majority of the offices acquired by Banco Santander-Puerto Rico were in close proxim ity to existing branches of Banco Popular de Puerto Rico. The Board of Directors finds that the failure of Banco Credito y Ahorro Ponceno requires it to act immediately and thus waives publication of notice, dispenses with the solicitation of competitive reports from other agencies, and authorizes the transaction to be consummated immediately. Banking offices in operation Before 1,250,233 82 401,346* 36 After 118 to purchase a portion of the assets and assume a portion o f the deposit liabilities o f Banco Credito y Ahorro Ponceno Ponce 'Deposits of 36 offices of Banco Credito y Ahorro Ponceno to be acquired by Banco Popular de Puerto Rico. Approved under emergency provisions. No report requested from the Attorney General. Basis for Corporation approval, March 31, 1978 Banco Popular de Puerto Rico, San Juan, Puerto Rico, an insured Commonwealth-char tered nonmember bank with total resources of $1,250,233,000, has applied, pursuant to Section 18(c) and other provisions of the Federal D eposit Insurance A ct, fo r the Corporation's consent to purchase a portion of the assets and assume a portion of the liability to pay deposits made in Banco Credito y Ahorro Ponceno, Ponce, Puerto Rico, an insured Commonwealth-chartered nonmember bank. As an incident to the transaction, 36 offices of Banco Credito y Ahorro Ponceno with deposits of $4 01 ,3 46 ,0 00 would become branches of Banco Popular de Puerto Rico. As of March 31, 1978, Banco Credito y Ahorro Ponceno had deposits and other liabilities of some $6 40 million and operated 50 BANK ABSORPTIONS APPROVED BY THE CORPORATION offices. On that date Puerto Rico Secretary of the Treasury Julio Cesar Perez closed the bank, and the FDIC was named Receiver. This purchase and assumption transaction is a companion to another transaction by which Banco de Santander-Puerto Rico, San Juan, Puerto Rico, acquired the other 14 offices of Banco Credito y Ahorro Ponceno, most of which were in close proximity to offices of Banco Popular de Puerto Rico. The Board of Directors finds that the failure of Banco Credito y Ahorro Ponceno requires it to act immediately and thus waives publication of notice, dispenses with the solicitation of competitive reports from other agencies, and authorizes the transaction to be consummated immediately. Resources (in thousands of dollars) Floyd County Bank New Albany, Indiana Banking offices in operation Before 40,099 3 19,266 4 After 7 to purchase the assets and assume the deposit liabilities of Am erican Bank New Albany Summary report by Attorney General, March 14, 1978 The main offices of Applicant and Bank are approximately 1 mile apart in New Albany, plus Applicant operates two branch offices and Bank operates one branch in New Albany. It is therefore obvious that Applicant and Bank are direct competitors and that the proposed acquisition would eliminate existing competition to a significant degree. Selection of an appropriate geographic market within which to assess the effect of the proposed merger on concentration in commer cial banking is very difficult because of the proximity to New Albany of the commercial area of Clark County and of the city of Louis ville, Kentucky. Neither the application nor other data presently available to the department con tains information sufficient to permit a precise calculation of a relevant geographic market. We note, however, that of the eight commercial banks presently operating in Floyd and Clark Counties, Indiana, Applicant, as of June 30, 1977, was the fifth largest and Bank was the eighth largest with 11.3 percent and 5.5 per cent respectively, of the total deposits held by the commercial banks in those two counties. If the merger were consummated, the resulting 63 bank would become the third largest bank with 16.9 percent of the total commercial bank deposits in the two-county area, and the fourfirm concentration ratio in that area would increase from 69.2 percent to 73.6 percent. Basis for Corporation approval, April 7, 1978 Floyd County Bank, New Albany, Indiana ("Applicant"), an insured State nonmember bank with total resources of $4 0,09 9,00 0 and total IPC deposits of $34,005,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior consent to purchase the assets of and assume the liability to pay deposits made in American Bank, New Albany, Indiana, an insured State nonmember bank with total resources of $19,266,000 and total IPC deposits of $15,772,000. The four offices of American Bank would be operated as branches of Applicant, increasing the number of its offices to seven. In order to effectuate the transaction, the resultant bank w ill issue 30,000 shares of common stock and place $ 1 ,400 ,0 00 in subordinated capital notes to augment its capital structure. Competition. Floyd County, the State's second smallest county in land area is located in southern Indiana and is part of the five-county L o u is v ille , K e n tu c k y -ln d ia n a S ta n d a rd Metropolitan Statistical Area. W ith only a limited amount of industry and manufacturing activity, the county's economy is largely depen dent upon and closely tied to that of Louisville and Jefferson County, Kentucky, where an esti mated one-half of its work force commutes for employment. Shopping patterns also point to a close economic tie between Floyd County and the neighboring, more populous Clark County, where recent development activity has cen tered. Floyd County's median household buying level of $13,162 (1976) was substantially lower than that of the Louisville metropolitan area and that of Jefferson County, Kentucky. The proponents' main offices are approx imately 1 mile distant from each other along Spring Street in New Albany, which is a major east-west artery connecting the city with the urbanized area of adjoining Clark County. The main office and drive-in branch of American Bank are located in the downtown section of New Albany while Applicant's main office is situated at the junction of a major north-south highway providing access to the city of Louis ville on the south. Other offices of the propo nents serve the western and northern portions of developed areas of the county and are not regarded to be in direct competition with each 64 FEDERAL DEPOSIT INSURANCE CORPORATION other. Of the four commercial banks headquar tered in Floyd County, the proponents rank as the two smallest in share of deposits held. The resultant bank would hold 34.2 percent of the county's commercial bank deposits and would rank as the second largest of three banks in the county by such a measure. Intense competition exists in Floyd County emanating from banks headquartered in neighboring Jefferson County, Kentucky, which due to their relative size and central location exert a significant com petitive influence throughout the entire Louisville metropolitan area. In light of the established commutation patterns, existence of common communication media, and strong economic ties, the threecounty area of Floyd and Clark Counties, Indiana and Jefferson County, Kentucky is regarded as the relevant geographic market for purposes of determining the com petitive effects of the proposed transaction. The three largest Louisville-based commer cial banks together hold 70.5 percent of the area's commercial bank deposits. In com parison, A p p lic a n t and A m erican Bank aggregately hold only 1.6 percent of the market's commercial bank deposits and rank as the 11 th and 1 5th largest banks, respectively. Considering the modest relative size and market share of the proponents, the proposed transac tion is seen as having little competitive impact on the structure of commercial banking in the market. Likewise, although a potential exists for increased competition between the proponents through future de novo branching activity, because of the dominance of the Jefferson County-based banking organizations, elimina tion of such future competition is regarded as having only a limited competitive significance. Under the circumstances, the Board of Direc tors is of the opinion that the proposal would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The considerations relating to finan cial and managerial resources have been satisfactorily resolved. The resultant bank, with the proposed additions to its capital structure, is anticipated to have favorable future prospects. Convenience and Needs of the Community to be Served. The proposed transaction would result in no substantial change in the services now available to customers of either bank. Con siderations of convenience and needs of the community are consistent with approval of the application. Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tion is warranted. Resources (in thousands of dollars) The Town & Country Bank Raritan Township (P.O. Flemington), New Jersey Banking offices in operation Before 36,612 3 18,435* 2 After 5 to purchase the assets and as sume the deposit liabilities o f Phillipsburg and Pohatcong Branches — New Jersey Bank (National Association) Clifton 'Total IPC deposits of two offices to be transferred by New Jersey Bank (National Association). Assets not reported by office. Summary report by Attorney General, January 30, 1978 We have reviewed this proposed transaction and conclude that it would not have a substan tial competitive impact. Basis for Corporation approval, May 5, 1978 The Town & Country Bank, Raritan Town ship (P.O. Flemington), New Jersey ("Town Bank” ), an insured State nonmember bank with total resources of $3 6,612,000 and total IPC de po sits o f $ 2 7 ,4 1 0 ,0 0 0 , has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior consent to purchase the assets of and assume the liability to pay deposits made in two branches of New Jersey Bank (National Association), Clifton, New Jersey ("National Bank''), with total resources of $8 34 ,5 11 ,0 00 and total IPC deposits of $ 6 8 4 ,2 7 2 ,0 0 0 . The P h illip s b u rg and Pohetcong branches of National Bank, with total IPC deposits of $18,435,000, would be established as branches of Town Bank. Competition. The proposed transaction involves National Bank's only two branches in W a rre n C o u n ty , w h ic h are lo c a te d approximately 72 miles west of its main office. Warren County (1970 population 73,879) is located in the western portion of the State adjoining the Delaware River boundary with Pennsylvania. Both branches to be acquired are located along major traffic arteries, north of and sou th e a st o f the d o w n to w n sectio n o f P hillip sbu rg. These branches, w h ich are approximately 15 road-miles distant from the nearest branch of Town Bank, are regarded as BANK ABSORPTIONS APPROVED BY THE CORPORATION competing in a market area which includes the town of Phillipsburg, the borough of Alpha, and the townships of Pohatcong, Lopatcong, and Greenwich in New Jersey and the city of Easton, Pennsylvania. The market, which had a 1970 population of approximately 60,000, has a diversified economy encompassing industrial, agricultural, and commercial activity. Ten commercial banks operate a total of 20 offices in this market area, with the 3 largest institutions holding a 77.6-percent market share of IPC deposits. National Bank presently holds 7.1 percent of such deposits and ranks as the market's fifth largest competitor. Town Bank does not compete in this market and thus, the proposed transaction is regarded as having no effect on existing competition or on the local market structure. State statutes permit de novo branching activity throughout New Jersey, subject to certain home office protection provisions Town Bank, as an aggressive, rapidly growing Hunterdon County institution can be regarded as a potential competitor in adjoining Warren County markets. N ational Bank has em barked upon a retrenchment program with its management desirous o f concentrating their e ffo rts in markets in the northeastern portion of the State where they are more heavily represented. The potential for increased future competition by National Bank in this market is not regarded as significant. In view of the foregoing, the Board of Directors is of the opinion that the proposed merger would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The considerations relating to financial and managerial resources have been satisfactorily resolved. The resultant bank, with the contem plated addition to its capital structure, is anticipated to have favorable future prospects. Convenience and Needs of the Community to be Served. The proposed transaction would result in no substantial change in the services now available in the market. Considerations of convenience and needs of the community are consistent with approval of the application. Based on the foregoing, the Board of Directors has concluded that approval of the application is warranted. 65 Resources (in thousands of dollars) The Commercial Savings Bank Upper Sandusky, Ohio Banking offices in operation Before After 39,324 2 3 7,978 1 to acquire the assets and assume the deposit liabilities of The Harpster Bank Harpster Summary report by Attorney General, January 13, 1 978 Ohio law, presently prohibiting branches across State lines, permits statewide operation of multibank holding companies. Hence, an outof-county bank could acquire Bank as a means of entering the Wyandot County market. The proposed acquisition eliminates Bank as an entry vehicle. Given the relatively small size of the banks and the rural nature of the area, it appears that the relevant geographic market is— at m ost— Wyandot County. Applicant, on the other hand, states that the relevant market includes adja cent Marion County. While we recognize that some residents may go to Marion County to satisfy their banking needs, a situation common to most rural banking markets, it nevertheless appears that the preponderance of Wyandot County residents bank within the county. None of the Marion County banks are so large that they could offer substantially different services than Applicant. Applicant and Bank are direct competitors. Bank is 7 miles from Applicant's main office in Upper Sandusky and 1 7 miles from its branch in Carey. There are no intervening banks be tween Applicant's main office and Bank. Two other banks also have offices in Upper San dusky. The county's other banks are in Carey, Sycamore, and Wharton. Those towns are each 10 miles on the "fa r” side of Upper Sandusky from Harpster. The nearest banks to Bank out side the county are the three previously men tioned Marion County banks, 15 miles from Bank. Thus the three banks in Upper Sandusky, including Applicant, are Bank's only meaningful com petitors. A pplicant admits that it has attracted 350 customers from Bank in recent years. Six banks operate in Wyandot County. Appli cant is the second largest in terms of total deposits, with a 28 percent market share. It is the largest in terms of net loans with a 33 per cent market share. Bank is the second smallest with 6 percent of deposits and 7 percent of net FEDERAL DEPOSIT INSURANCE CORPORATION 66 loans. If the proposed acquisition is consum mated Applicant will increase its share of the market by 6 percent to 34 percent, although its rank as second largest in terms of deposits and largest in terms of net loans will remain con stant. In sum, the proposed acquisition would elimi nate existing direct competition, increase con centration, and diminish potential competi tion— in short, it would adversely affect com petition. It clearly would be more consistent with the public interest for an out-of-county bank, via the holding company vehicle, to acquire bank as a means of entering the market de novo than for the second largest bank and a direct competitor to acquire Bank. Basis for Corporation approval, May 5, 1978 The Commercial Savings Bank, Upper Sandusky, Ohio ("A p p lic a n t"), a State non member insured bank w ith total resources of $ 3 9 ,3 2 4 ,0 0 0 and total IPC deposits of $ 3 3 ,4 4 7 ,0 0 0 , has applied, pu rsua nt to Section 18(c) and other provisions of the Federal D eposit Insurance A ct, fo r the Corporation's prior consent to acquire the assets of and assume liability to pay deposits made in The Harpster Bank, Harpster, Ohio ("O ther Bank"), w ith total resources of $ 7 ,9 7 8 ,0 0 0 and to ta l IPC d e po sits of $ 6 ,9 8 3 ,0 0 0 . Incident to the transaction, the sole o ffic e o f O th e r Bank w o u ld be established as a branch of Applicant. Competition. Applicant operates its main office in Upper Sandusky, in central Wyandot County, and one branch in Carey, in northwest Wyandot County. Other Bank operates its sole office in Harpster, in south-central Wyandot County. Wyandot County is located in the northwest portion of Ohio. The area is primarily agriculturally oriented with some small industry in the Upper Sandusky area. The population of the county was 21,826 in 1970, an increase of 178 persons over 1960. Upper Sandusky's p o pu latio n in 1 9 7 0 was 5 ,6 4 5 , w h ile Harpster's population in 1970 was 291. The 1976 median household buying level in W yan dot County was $12,071, considerably less than the State level of $14,648. The primary trade area of Applicant is the whole of Wyandot County. Applicant has the second largest share, 29.7 percent, of IPC deposits aggregating $11 million held by 11 offices of 6 commercial banks located in the county. Other Bank's trade area is the southern onehalf of W yandot County, including the town of Upper Sandusky, and the upper portion of adjoining Marion County, including the town of The market had a population estimated Digitized for Marion. FRASER at 45,072 in 1970, having registered an increase of some 2,184 persons since 1960. Other Bank has the second smallest share, 3.2 percent, of IPC deposits aggregating $21 5 mil lion held by 1 7 offices of 7 commercial banks located in the area. Upper Sandusky and Harpster are only 7 road-miles apart with no other banking offices intervening. Therefore, it is evident that some degree of overlapping of trade areas exists. Although the proposed transaction would eliminate some competition between the two proponents, customers in Other Bank's trade area would still have a number of choices for commercial banking services. The resulting bank would still have only the fourth largest share, 16.5 percent, of the IPC deposits held by 17 offices of the 6 commercial banks remaining in the area. Although both banks may legally establish de novo branches in Wyandot County, it does not appear likely that Applicant will establish a branch in the Harpster area due to the limited deposit potential there. It also does not appear likely that Other Bank would establish a branch in Upper Sandusky considering the fact that Other Bank has been in business for approx imately 95 years and is still operating as a unit bank. In addition, the elimination of Other Bank as an independent institution is not regarded as significant since the bank is not considered a viable competitor and its future growth poten tial is considered weak under present economic conditions. Although the Board of Directors recognizes that consummation of the proposal would have some serious anticompetitive effects, Other Bank's weakened condition prevents it from providing effective competitive banking serv ices. In view of the foregoing, the Board of Direc tors is of the opinion that the proposed merger would not, in any section of the country, sub stantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The fin a n cia l and m anagerial resources of Applicant are considered satisfac tory. Other Bank has experienced sizable operating losses during the past few years and its financial resources are considered marginal. W ith the contemplated addition to capital, the future prospects of the resulting bank are favorable. Convenience and Needs of the Community to be Served. The proposed transaction would assure more competitive banking services in the local market of Other Bank. Based on the foregoing information, the Board of Directors has concluded that approval of the application is warranted. 67 BANK ABSORPTIONS APPROVED BY THE CORPORATION Resources (in thousands of dollars) Lincoln Bank Lincoln City, Oregon Banking offices in operation Before After 41,045 7 8 2,992 1 to merge with Yamhill County Bank McMinnville Summary report by Attorney General, February 24, 1978 We have reviewed this proposed transaction and conclude that it would not have a substan tial competitive impact. Basis for Corporation approval, May 19, 1978 Lincoln Bank, Lincoln City, Oregon, an insured State nonmember bank with total resources of $ 4 1 ,0 4 5 ,0 0 0 and total IPC deposits of $ 3 2,04 0,00 0,has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the FDIC's consent to merge, under its charter and title, with Yamhill County Bank, McMinnville, Oregon (“ County Bank"), a State member bank with total resources of $2,992,000 and total IPC deposits of $2,469,000. The sole office of County Bank would be established as a branch of Lincoln Bank increasing the total number of its offices to eight. Competition. Lincoln Bank operates seven offices in three counties on the coast of Oregon, with its head office located in Lincoln City. County Bank operates as a unit bank in McMinnville, approximately 45 road-miles northeast of Lincoln City. The proposed merger would have its most direct and immediate impact in Yamhill County. Yamhill County, with a 1970 population of 40,213, is located on the eastern side of the Coast Range of mountains in Oregon's most heavily developed corridor running between Portland and Eugene. The county is considered to have a primarily agricultural economy. McMinnville, w ith a 19 70 population of 10,125, is the largest city and serves as the county seat. The city has experienced rapid growth in recent years and has a favorable economic outlook. Six commercial banks operate a total of 12 offices in Yamhill County. Dominating the area is a Portland-based bank with five offices and 51.5 percent of the market's IPC deposits. County Bank is the smallest institution in the market holding only a 2.1 -percent market share of the IPC deposits. Lincoln Bank operates one branch in Willamina (located approximately 21 road-miles southwest of McMinnville) which holds 5.4 percent of the county's IPC deposits. The resultant bank's 7.5-percent market share of the IPC deposits would have no significant effect on competition or on the structure of the local market. State statutes preclude branching into com munities of less than 50,000 population that already have banking offices. Lincoln Bank, therefore, is precluded from engaging in any de novo expansion into McMinnville. County Bank's modest size and limited resources pre clude any expansion activity at this time. The potential for increased future competition be tween these tw o institutions is not regarded as significant. Financial and Managerial Resources; Future Prospects. Lincoln Bank has satisfactory finan cial and managerial resources. The resultant bank is anticipated to have favorable future prospects. Convenience and Needs of the Community to be Served. Comparisons of loan rate schedules indicate that Lincoln Bank's rates are generally lower than the prevailing rates in effect at County Bank. This, along with an increased lending limit, should be favorably received by customers in Yamhill County. Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tion is warranted. Resources (in thousands of dollars) Commercial Security Bank Ogden, Utah Banking offices in operation Before After 353,852 19 22 15,969 3 to purchase the assets and assume the deposit liabilities of The Helper State Bank Helper Summary report by Attorney General, May 11, 1978 We have reviewed this proposed transaction and conclude that it would not have a substan tial competitive impact. Basis for Corporation approval, May 24, 1978 Commercial Security Bank, Ogden, Utah ("Commercial Bank"), an insured State nonmem ber bank with total resources of $353,852,000 and total IPC deposits of $253,833,000, has 68 FEDERAL DEPOSIT INSURANCE CORPORATION applied, pursuant to Section 18(c) and other provi sions of the Federal Deposit Insurance Act, for the FDIC's consent to purchase the assets of and assume the liability to pay deposits made in The Helper State Bank, Helper, Utah ("State Bank” ), an insured State nonmember bank with total resources of $15,969,000 and total IPC deposits of $13,666,000.* Incident to the transaction, the 3 offices of State Bank would be established as branches of Commercial Bank, increasing the num ber of its offices to 22. Competition. Commercial Bank's operations are primarily confined to the central portion of the State in an area known as the "W asatch Front.” This highly developed strip running north-south is bordered on the west by moun tains, desert, and the Great Salt Lake, and on the east by rugged mountainous terrain. The Wasatch Front, while representing less than 5 percent of the State's land area, holds more than 75 percent of its population in an urbanized area that includes most of Utah's major cities. State Bank operates in Carbon and Emery Counties located on a plateau east of these mountains. This area's 1970 population was 20,784 and it had a 1976 median household buying level substantially below the State's figure. Population declines are in evidence for the period 1960 to 1970; however, the future economic prospects appear favorable due to vast deposits of coal found in the area. The city of Price (1970 population 6,218) serves as the seat of Carbon County and is a principal com mercial center. The proposed transaction would have its most direct and immediate effect in Carbon and Emery Counties, which contain 5 commercial banks operating 12 offices. State Bank, Utah's 24th largest bank, holds 15.4 percent of this market's commercial bank deposits thereby ranking as the market's 3rd largest bank. The State's three largest commercial banks are rep resented in this market and aggregately hold 82.8 percent of the deposits. Since Commercial Bank, the State's fourth largest bank, is not rep resented, the proponents operate in separate, distinct markets and are not in direct competi tion. Therefore, consummation of the proposed transaction would have no significant effect on existing competition. Utah statutes permit statewide branching, except in cities or towns where banks already do business. Although Commercial Bank is presently prohibited from branching into the community of Helper, it could establish de novo offices at other sites in State Bank's trade area. However, in light of the number of existing banking offices in this large, but relatively sparsely populated area, the elimination of some potential for future competition between the proponents is not regarded as significant. State Bank's modest size and limited financial and managerial resources appear to preclude any meaningful de novo expansion into areas now served by Commercial Bank. Based on the foregoing, the Board of Direc tors is of the opinion that the proposed transac tion would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. Both banks have acceptable financial and managerial resources and the proposed transaction should have no adverse effect on these resources. The future prospects of the re sultant bank appear favorable. Convenience and Needs of the Community to be Served. Consummation of the proposed transaction will provide residents with a number of commercial banking services not presently available at State Bank, including trust services, credit card plans, mortgage banking, and a sub stantially increased lending limit. Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tion is warranted. Resources (in thousands of dollars) Commercial Bank & Trust Company Miami, Florida Banking offices in operation Before 95,223 3 12,513* 1 After 4 to purchase assets and as sume deposit liabilities of North Miami B ranchCity National Bank of Miami Miami ‘ Total deposits of office to be transferred by City National Bank of Miami. Assets not reported by office. Summary report by Attorney General, April 11, 1978 'Data concerning Commercial Security Bank, Ogden, Utah have been adjusted to reflect the merger of that bank with Commercial Security Bank of Salt Lake, Salt Lake County (P.O. Salt Lake City), Utah, effected February 28, 1978. We have reviewed this proposed transaction and conclude that it would not have a substan tial competitive impact. 69 BANK ABSORPTIONS APPROVED BY THE CORPORATION Basis for Corporation approval, June 26, 1978 Commercial Bank & Trust Company, Miami, Florida ("Commercial Bank” ), an insured State nonmember bank w ith total resources of $ 9 5 ,2 2 3 ,0 0 0 and total IPC deposits of $80,628,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the FDIC's prior con sent to purchase the assets of and assume the liability to pay certain deposits made in the North Miami branch of City National Bank of Miami, Miami, Florida ("City Bank"), with total resources of $3 96 ,4 51 ,0 00 and total IPC deposits of $332,750,000. The North Miami branch, with aggregate deposits of approx imately $12,513,000, would be operated as a branch of Commercial Bank. Competition. The proposed transaction would have its most direct and immediate impact in Dade County. The economy of the area relies primarily upon recreation and tour ism. The county's population as of year-end 1976 was approximately 1.5 million. Commercial Bank operates its three offices in the county. City Bank's North Miami branch is located approximately 5 miles north of Com mercial Bank's nearest office. Given the prox imity of the applicant's offices to the North Miami branch, approval of the proposed trans action would eliminate some direct competi tion between City Bank and Commercial Bank. However, within Dade County, 71 banks, repre senting 47 banking organizations, operate 161 offices. Commercial Bank holds 1.3 percent of the county's IPC deposits, thereby ranking 18th largest in IPC deposits among commercial banks. The proposed transaction would transfer only 0.2 percent of the deposits to Commercial Bank, increasing its share of the deposits to 1.5 percent. The deposits to be acquired appear even more inconsequential when the existing concentration level of commercial banking in the county is analyzed. The three largest bank ing organizations hold an aggregate share of 41 percent. Overall, given Commercial Bank's small deposit percentage and the existing level of commercial banking concentration in Dade County, the proposed transaction would have no significant effects on existing competition. Consummation of the proposed transaction would not affect future competition in the county. The proponents would continue to operate in the county and the deposits to be acquired by Commercial Bank' constitute such an insignificant share of the total deposit base that Commercial Bank would not derive any major competitive advantage over other banks in the area. The Board of Directors is of the opinion that the proposed transaction would not, in any sec tion of the country, substantially lessen com petition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The considerations relating to finan cial and managerial resources have been satisfactorily resolved. The resultant bank is anticipated to have favorable future prospects. Convenience and Needs of the Community to he Served. The proposed transaction would serve to substitute Commercial Bank for City Bank at the North Miami branch site and would result in little change in the level of services offered the community. Considerations of con venience and needs of the community are con sistent with approval of the transaction. Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tion is warranted. Resources (in thousands of dollars) Guarantee Bank Atlantic City, New Jersey Banking offices in operation Before After 252,102 16 18 21,025 2 to merge with Swedesboro Trust Company Swedesboro Summary report by Attorney General, April 27, 1978 We have reviewed this proposed transaction and conclude that it would not have a substan tial competitive impact. Basis fo- Corporation approval, June 26, 1978 Guarantee Bank, Atlantic City, New Jersey, an insured State nonmember bank with total resources of $2 52 ,1 02 ,0 00 and total IPC deposits of $200,412,000, has applied, under Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the FDIC's prior con sent to merge with Swedesboro Trust Com pany, Swedesboro, New Jersey, a State-char tered member bank with total resources of $ 2 1 ,0 2 5 ,0 0 0 and total IPC deposits of $18,176,000. The proposed merger would be effected under the charter and title of Guarantee Bank. 70 FEDERAL DEPOSIT INSURANCE CORPORATION Competition. Guarantee Bank operates 15 branches in Atlantic, Cape May, and Cumber land Counties in southeast New Jersey. Swedesboro Trust Company operates its main office in Swedesboro and a branch in W oolwich Township located approximately 3 road-miles from its main office. Both offices are located in western Gloucester County in an area that has remained relatively rural and undeveloped. The borough of Swedesboro (1970 population of 2,287) and surrounding area are experiencing some new commercial and residential construc tion and appear to have favorable future prospects. The relevant market in which to assess the impact of the proposed merger is regarded as the area within an approximate 10-road-mile radius of Swedesboro, which includes portions of Gloucester and Salem Counties. Thirteen commercial banks operate a total of 28 offices in this market, with representatives of several of the S tate's larger banking organizations included. Swedesboro Trust Company holds 9.9 per cent of the market's IPC deposits and ranks as the fifth largest bank in the market by such a measure. Guarantee Bank is not represented in the market as its nearest office is located a p p r o x im a t e ly 3 0 r o a d - m ile s f r o m Swedesboro. The proponents, therefore, are not in direct competition and the transaction is viewed as having no significant effect on exist ing competition. State statutes permit de novo branching throughout New Jersey, subject to certain home office protection provisions. Swedesboro Trust Company, which presently operates only one branch a short distance from its main office, does not possess the financial or managerial resources to mount any meaningful de novo expansion into areas relatively distant from Swedesboro. Guarantee Bank, while experienced in de novo activity and branch operation, has confined its operations to the southeast portion of the State. Although Guarantee Bank is capable of successfully branching into the Swedesboro market, it is not likely to do so in light of the number and size of other competitors already established in the area and the distance of that market from its present base of operation. Thus, the elimination of some potential for increased future competi tion between the proponents is regarded as having little competitive impact. The Board of Directors is of the opinion that the proposed merger would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other man ner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The considerations relating to finan cial and managerial resources have been satisfactorily resolved. While capitalization of Guarantee Bank is considered to be below desired levels, the proposed merger will have a slightly positive effect due to the strong capitalization of Swedesboro Trust Company. The resultant bank would appear to have favorable future prospects. Convenience and Needs of the Community to be Served. The proposed transaction would result in no substantial change in the services now available in the Swedesboro market. The considerations of convenience and needs of the com m unity, however, are consistent w ith approval of the application. Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tion is warranted. Resources (in thousands of dollars) Commercial Security Bank Ogden, Utah Banking offices in operation Before After 353,852 19 20 7,694 1 to merge with Commercial Security Bank of Logan Logan Summary report by Attorney General, April 11, 1978 The merging banks are both wholly owned subsidiaries of the same bank holding company. As such, their proposed merger is essentially a corporate reorganization and would have no effect on competition. Basis for Corporation approval, June 26, 1978 Commercial Security Bank, Ogden, Utah ("Applicant” ), an insured State nonmember bank with total resources of $3 53 ,852,000 and total IPC deposits of $253,833,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the FDIC's prior consent to merge with Commercial Security Bank of Logan, Logan, Utah ("Other Bank"), an insured State non m em ber bank w ith to ta l resources o f 71 BANK ABSORPTIONS APPROVED BY THE CORPORATION $ 7 ,6 9 4 ,0 0 0 and to ta l IPC de po sits o f $6,247,000.* The banks would merge under the charter and title of Applicant, and the sole office of Other Bank would be established as a branch of the resultant bank, increasing the total number of its offices to 20.** Competition. E ssentially a co rp o ra te reorganization, the proposed transaction would provide a means by which Commercial Security Bancorporation, Ogden, Utah, a registered bank holding company, may consolidate its opera tions. The proponents have been under com mon control since 1973 when Other Bank was organized as a wholly owned subsidiary of the holding company. The proposal would not affect the structure of commercial banking or the concentration of banking resources within any relevant area, nor would it have any signifi cant effect on existing or potential competition. In view of the foregoing, the Board of Direc tors is of the opinion that the proposed merger would not, in any section of the country, sub stantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The proponents' financial and managerial resources are considered adequate for the purposes of this proposal. The resultant bank would appear to have favorable future prospects. Convenience and Needs of the Community to be Served. The services to be offered in the relevant market by the resultant bank would not differ materially from those presently available through either proponent. On the basis of the foregoing information, the Board of Directors has concluded that approval of the application is warranted. ’ Financial data as of June 30, 1977. Data concerning Com mercial Security Bank, Ogden, Utah, have been adjusted to reflect the merger of that institution with Commercial Security Bank of Salt Lake, Salt Lake County (P.O. Salt Lake City), Utah, effected February 18, 1978. **On May 24, 1978, the Board of Directors of the Federal Deposit Insurance Corporation granted its approval to Applicant to purchase the assets of and assume the liability to pay deposits made in The Helper State Bank, Helper, Utah. The Helper State Bank operates three offices and, as of June 30, 1977, had total resources of $15,969,000 and total IPC deposits of $13,666,000. Resources (in thousands of dollars) Albany Savings Bank Albany, New York Banking offices in operation Before After 829,643 12 13 26,544 1 to merge with Oneida Federal Savings and Loan Association Oneida Summary report by Attorney General, May 2, 1978 We have reviewed this proposed transaction and conclude that it would not have a substan tial competitive impact. Basis for Corporation approval, August 2, 1978 Albany Savings Bank, Albany, New York ("Savings Bank"), an insured mutual savings bank with total resources of $8 29 ,6 43 ,0 00 and total deposits of $771,298,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior consent to merge, under its charter and title, with Oneida Federal Savings and Loan Association, Oneida, New York ("Association"), a federally insured sav ings and loan association with total resources o f $ 2 6 ,5 4 4 ,0 0 0 and to ta l d e po sits of $24,334,000, upon the latter institution's con version to a State charter. Incident to the merger, the sole office of Association would be established as a branch of the resultant bank. Competition. Savings Bank operates 12 offices in central and northern New York State and has received regulatory approval for an additional de novo branch. Branches in Glens Falls, Johnstown, and Troy have been acquired since 1970 through mergers with three Statechartered savings and loan associations. Association, established in 1887, operates its sole office in the city of Oneida, approximately 120 road-miles west of Albany, New York. Oneida (1970 population 11,658) is situated in the eastern portion of Madison County adjoin ing the Oneida County boundary. A good high way system provides ready access to the neighboring city of Rome (1970 population 50,148) which is regarded as the economic center for the area. The relevant market in which to assess the competitive impact of the proposed merger is regarded as the area within an approximate 15road-mile radius of the city of Oneida, which includes portions of Madison and Oneida Coun ties. Six th rift institutions operate a total of 10 offices in the market with mutual savings banks 72 FEDERAL DEPOSIT INSURANCE CORPORATION holding the dominant market share. Association ranks as the fourth largest thrift institution in the market, holding 7.4 percent of the market's in s t i t u t io n d e p o s its . S a v in g s B a n k, whose nearest office is located north of the city of Syracuse, approximately 25 road-miles dis tant from Oneida, is not represented in the market and the proponents are thus not in direct competition. Consummation of the trans action will merely serve to substitute a large mutual savings bank for a relatively small, local savings and loan association and will have no significant adverse effect on existing competi tion. The possibility that competition may develop between the proponents through de novo branching appears remote. The modest size and conservative management of Association, which has operated as a unit institution since in ce p tio n , w o uld seem to preclude any meaningful expansion activity into areas now served by Savings Bank. Savings Bank, governed by State statutes limiting such de novo expansion to a single branch each year, is viewied as an unlikely entrant into the Oneida market in the near future. The Board of Directors is of the opinion that the proposed merger would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other man ner be in restraint of trade. Financial and Managerial Resourcesiy Future Prospects. The fin a n cia l and m anagerial resources of each institution, and of the result ant bank, are considered satisfactory. The future prospects of the resultant bank are regarded as favorable. Convenience and Needs of the Community to be Served. Savings Bank's entry into the Oneida market would make available an addi tional alternative for certain thrift institution ser vices not now offered by Association. Con siderations of convenience and needs of the community to be served are consistent with approval of the application. Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tion is warranted. Resources (in thousands of dollars) Brookville Bank and Trust Company Brookville, Penn sylvania (change title to Unibank) Banking offices in operation Before 46,206 3 27,443 1 After 4 to merge with Brockway Citizens Bank Brockway Summary report by Attorney General, May 2, 1978 Jefferson County (1970 population 47,000) is located in the west-central portion of Penn sylvania. Its economy is based primarily on farm ing, coal mining, and lumbering and, according to the application, is expected to experience slow but steady growth. Bank's sole office in Brockway is approx imately 15 miles northeast of Brookville in which Applicant operates its main office and one branch. There are no bank offices in the intervening area (which is sparsely populated), although Deposit National Bank, DuBois, oper ates a branch in both Brookville and Brockway. It appears, therefore, that the proposed trans action would eliminate some direct competition between Applicant and Bank. Nine banks currently operate offices in Jefferson County. As of June 30, 1977, Appli cant held the second largest share (17.3 per cent) and Bank held the fifth largest share (9.8 percent) of the total deposits held in Jefferson County banking offices. If the proposed trans action is consummated, the resulting bank would be the largest bank in the county with a 27.1-percent share of deposits held in county banking offices. Concentration among the four largest banks in the county (in terms of county deposits) would increase from 77.1 percent to 87.0 percent. We note, however, that the pro posed transaction's effect on concentration would be less substantial if the banking offices in DuBois, in adjacent Clearfield County, were considered to be in the same market area as the Jefferson County banking offices. Overall, in our view, the proposed transaction would have an adverse effect on competition. Basis for Corporation approval, August 2, 1978 Brookville Bank and Trust Company, Brook ville, Pennsylvania ("Brookville Bank"), an insured State nonmember bank with total resources of $4 6,206,000 and total IPC BANK ABSORPTIONS APPROVED BY THE CORPORATION deposits of $37,675,000, has applied, pur suant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Cor poration's prior consent to merge with Brock way Citizens Bank, Brockway, Pennsylvania ("Citizens Bank” ), with total resources of $ 2 7 ,4 4 3 ,0 0 0 and total IPC deposits o f $22,240,000, under the charter of Brookville Bank and with the title "Unibank” . Incident to the merger, the one existing office of Citizens Bank would become a branch of the resultant bank, increasing the number of its offices to four. Competition. Brookville Bank operates its main office in Brookville, one branch just out side Brookville, and one branch in Summerville. Citizens Bank operates its sole office in Brock way. All offices of both banks are located in Jefferson County, which is in the west-central portion of Pennsylvania. Jefferson County's 1970 population was 43,695, a decline from 46,792 in 1960. Approximately 70 percent of Jefferson County is forest lands and 16 percent is pasture and crop lands. Lumbering, agriculture, and light manufacturing are the main economic activities. The county's median buying level in 1976 was $11,266, some 22 percent below the State figure. Essentially, the effects of this merger would be limited to Citizens Bank's local market area, encompassing the northeast section of Jeffer son County, the southern part of Elk County, and the northwest portion of Clearfield County. Citizens Bank is one of six commercial banks operating in the local market area and holds 11.5 percent of the IPC deposits. Brookville Bank is not represented in this market and would merely succeed to Citizens Bank's share of the deposits. The structure of commercial banking in the local market would not be affected by the proposed merger. The trade areas of the proponents are dis tinct, and travel between the two areas is impeded by mountainous terrain and a limited number of roads. The major highway in the area, Interstate Highway 80, runs east-west close to Brookville, but other highways are restricted by mountain ranges. The closest offices of the proponents are 18 miles distant, and neither bank draws a significant measure of business from the other's service area. No sig nificant existing competition would be elimi nated by the proposed merger. Pennsylvania law limits commercial bank expansion by either merger or de novo branch ing to the county in which the main office is located and to contiguous counties. Thus, each proponent could branch de novo in Jefferson County and the surrounding counties of Forest, Clarion, Armstrong, Indiana, Clearfield, and Elk. 73 Neither Brookville Bank nor Citizens Bank are likely to attempt de novo expansion into distant markets where much larger banks are well established, and economic conditions and the low population per banking office in Jefferson County are not conducive to such expansion there. It, therefore, appears unlikely that any substantial potential for increased competition between the proponents through their de novo branching in the future would be eliminated by the proposed merger. Within its maximum legal branching area, Brookville Bank holds 2.7 percent of the total com mercial bank deposits. The proposed merger would increase Brookville Bank's total deposit share to 4.2 percent. Thus, the com mercial banking structure in the legal branching area would not be materially affected. Based on the foregoing, the Board of Direc tors is of the opinion that the proposed merger would not, in any section of the country, sub stantially lessen competiton, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The proponents have satisfactory financial and managerial resources for the busi ness they conduct, as would the resultant bank. The future prospects for both existing banks and the resultant bank appear favorable. Convenience and Needs of the Community to be Served. The proposed merger would bring Citizens Bank's customers trust services and larger lending limits. Although there are other alternative sources for these services in the market, the considerations of convenience and needs are consistent with approval of the application. Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tion is warranted. Resources (in thousands of dollars) Farmers Bank and Trust Company of Hanover Hanover, Penn sylvania Banking offices in operation Before 107,232 4 2,914 1 to merge with Abbottstown State Bank Abbottstown After 5 74 FEDERAL DEPOSIT INSURANCE CORPORATION Summary report by Attorney General, June 8, 1978 Each bank at present operates in different counties. Adams County, where Bank is located, had a 1970 population of 56,937. York County, where Applicant is located, had a 1970 population of 272,603. A t present 10 banks operate a total of 24 offices in Adams County; 8 of these banks are headquartered in the county. Bank is the smallest of these institu tions, with 1.1 percent of total deposits in the county. Fifteen banks operate a total of 82 offices in York County; 10 banks are headquar tered there. Applicant ranks fifth among the banks in York County with 7.5 percent of coun ty deposits. Although Applicant and Bank at present operate their offices in separate counties, the acquisition will have a direct impact on actual competition in the Abbottstown area. Hanover, where Applicant is located, is a commercial hub for the rural area surrounding it, including Abbottstown, and Applicant is one of the domi nant banks in this area. Abbottstown and Hanover are only 7 miles apart; in fact, Appli cant concedes that the primary service areas of the two banks overlap. Within Bank's service area, Applicant holds 88 percent of the total loans and 69 percent of the total deposits, Bank having 1.2 percent and 2.1 percent, respective ly. The overlap of the two banks' service areas is of concern because Bank is the only commer cial bank in Abbottstown, although other banks are located in the vicinity. A purchaser with a smaller presence in this area would obviously be preferable to Applicant. Overall, in our view, the proposed transaction would have an adverse impact on competition. Basis for Corporation approval, August 2, 1978 Farmers Bank and Trust Company of Hanover, Hanover, Pennsylvania ("Farmers Bank” ), an insured State nonmember bank with total resources of $107 ,2 32 ,0 00 and total IPC de po sits o f $ 8 9 ,9 8 8 ,0 0 0 , has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior consent to merge with A b b o tts to w n S tate Bank, A b b o tts to w n , Pennsylvania ("S ta te B a n k "), w ith to ta l resources of $ 2 ,9 1 4 ,0 0 0 and total IPC deposits of $2,542,000. The banks would merge under the charter and title of Farmers Bank and the sole office of State Bank would be operated as a branch of the resultant bank, which would commence operation with a total of five offices. Competition. Farmers Bank operates its head office and three branches in Hanover (1970 population 15,623) and its environs in the western portion of York County, in southcentral Pennsylvania. The borough of Abbotts town (1970 population 552) is located 7 roadmiles north of Hanover in the extreme eastern portion of adjoining Adams County. Hanover functions as the service and commercial center of the large, generally rural area encompassing the western portion of York County and the eastern portion of Adams County in Penn sylvania and a small adjoining portion of the State of Maryland. While agricultural pursuits remain the area's chief economic activity, steady growth in residential construction and industrial expansion has been in evidence. The median household buying levels for both Penn sylvania counties are above the comparable figure for the State. Future economic prospects appear favorable as the Hanover area is expected to continue to attract industrial development due to its skilled, stable work force and proximity to large urban markets. The relevant market area in which to assess the competitive impact of the proposed trans action is regarded as the area within a 1 2 roadmile radius of the borough of Abbottstown, which would include the commercial center of Hanover and surrounding portions of Adams and York Counties. Ten commercial banks operate a total of 22 offices in the market with State Bank (the State's smallest commercial bank) holding only a nominal 0.9 percent of the market's IPC deposits. State Bank is located only 7 road-miles north of the closest office of Farmers Bank. As the major portion of State Bank's service area is contained within the service area of Farmers Bank and the local shopping and commutation patterns indicate that Hanover is the likely and probable source of retail, commercial, and alter nate banking services for residents of the area in which State Bank is located, clearly the pro ponents are in direct competition. Elimination of this existing com petition, however, is not regarded as significant in light of the de minimis volume of deposits generated by State Bank in its over 58 years of operation and its stagnant growth pattern in a market in which other com petitors have been able to increase their deposit volume substantially in recent years. Represented among the 10 banks already in the local market are several regional banks with substantial deposit bases and branching net works. Among these are National Central Bank, Lancaster; Dauphin Deposit Trust Company, Harrisburg; and Cumberland County National Bank and Trust Company, New Cumberland, which have organizational deposits ranging from approximately $225 million to $9 10 mil lion. There appears to be a sufficient number of alternate sources of commercial banking serv BANK ABSORPTIONS APPROVED BY THE CORPORATION ices to assure the continuance of a competitive banking environment in the market if the pro posed merger is consummated. Farmers Bank's share of the market coupled with State Bank's minute volume of deposits, therefore, does not have an adverse effect upon competition. In addition, a total of six other commercial banks, e a c h w ith d e p o s its g r e a te r th a n $100,000,000, have the ability under State statutes to branch de novo into this local market. Although some potential for future competition between the proponents would be eliminated by the proposal, in light of the limited resources of State Bank and the number of other large competitors now serving or able to enter this market, the effect on the potential for future competition would be insignificant. The Board of Directors is of the opinion that the proposed transaction would not, in any sec tion of the country, substantially lessen com petition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The financial resources of both pro ponents are considered satisfactory. Potential problems concerning aging management and management succession at State Bank would be resolved by the proposed merger. The result ant bank is anticipated to have favorable future prospects. Convenience and Needs of the Community to be Served. Farmers Bank offers a wider range of customer services, including a modest-sized trust department, and pays higher rates of interest on savings and time deposits than pres ently available at State Bank. Adoption of Farm ers Bank's interest rate schedule and the availability of additional banking services should be of benefit to the present customers of State Bank. The considerations of convenience and needs of the community to be served are fac tors in favor of approval of the application. Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tion is warranted. Resources (in thousands of dollars) Suburban Trust Company Hyattsville, Mary land Banking offices in operation Before After 1,057,686 65 67 14,484 2 to merge w ith Free State Bank and Trust Company Potomac 75 Summary report by Attorney General, July 14, 1978 We have reviewed this proposed transaction and conclude that it would not have a signifi cant adverse effect upon competition. Basis for Corporation approval, August 1 1 ,1 9 7 8 Suburban T ru s t Com pany, H ya ttsville , Maryland (“ Suburban T ru st” ), an insured State nonmember bank w ith total resources o f $ 1 ,0 5 7 ,6 8 6 ,0 0 0 and total IPC deposits of $ 8 8 2 ,2 6 6 ,0 0 0 , has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, fo r the Cor poration's prior consent to merge w ith Free State Bank and Trust Company, Potomac, Maryland ("F S B "), w ith total resources of $ 1 4 ,4 8 4 ,0 0 0 and total IPC deposits of $ 1 2 ,4 6 6 ,0 0 0 . Suburban Trust is a w holly owned subsidiary o f Suburban Bancorporation, a registered bank holding company w hich controls three Maryland banks. The proponents would merge under the charter and title o f Suburban Trust and the tw o o ffic e s o f FSB w o u ld be operated as branches of the resultant bank. Competition. Suburban Trust, headquartered in Hyattsville, operates 65 offices in 5 counties and the city of Baltimore. Fifty-one of these offices, holding almost 90 percent of the bank's aggregate deposits, are located in the Maryland portion of the Washington, D.C. Standard Metropolitan Statistical Area, with a total of 24 offices serving Montgomery County. Required approvals have been obtained to estab lish an additional two offices in Montgomery County: one in Gaithersburg and another in R ockville. FSB com m enced op e ra tio n in Potomac in the southern portion of Montgom ery County in August 1972. One de novo branch, established in May 1977, is operated in Rockville, approximately 6.8 road-miles north east of Potomac. M o n tg o m e ry C ounty, M aryland (1 9 7 0 population 552,809), adjoins the District of Columbia and has an economy that can be con sidered intricately tied to the city of Washing ton. A number of the county's residents are employed in the District of Columbia and there is substantial commutation daily between the two areas. This common economic tie is par ticularly in evidence in the southern portion of the county, which includes the communities of Potomac and Rockville. Median household buy ing levels for Montgomery County for 1976 were significantly higher than comparable figures for neighboring counties and 42.1 per cent higher than the State's figure. Intense competition exists between banks in Montgom ery County and those in the city of Washington, 76 FEDERAL DEPOSIT INSURANCE CORPORATION and thus, it is appropriate to consider the com bined area of the District of Columbia and Montgomery County, Maryland, as the relevant geographic market in which to consider the competitive impact of the proposed transac tion.* A total of 38 commercial banks operate 330 offices in this market. Suburban Trust, which holds 7.2 percent of the m arket's total deposits, ranks as the area's fifth largest com petitor by such a measure. FSB ranks as the 31st largest bank in the market, holding only 0.2 percent of the total deposits. Upon consum mation of the proposed transaction, Suburban Trust would increase its market share of deposits only a nominal amount to 7.4 percent, which would have no significant effect on the structure of commercial banking in the market. The proponents' closest offices are located approximately 2 road-miles apart in the city of Rockville, with a second Rockville branch of Suburban Trust located 4 miles south of FSB's branch office. FSB's main office in Potomac is located approximately 5 miles west of one of Suburban Trust's Bethesda branches. While the proximity of offices indicates that some exist ing competition between the proponents would be eliminated by the proposed transaction, the existence of numerous offices of other banks in the immediate area indicates that a competitive banking environment would continue in the market if the merger were consummated. Maryland State statutes permit statewide merging and de novo branching. Due, however, to restrictive zoning ordinances, Suburban Trust has been effectively prevented from de novo entry into Potomac. FSB, which has experienced initial start-up problems, lacks the financial and managerial resources to mount effectively any meaningful expansion into other areas now served by Suburban Trust. Thus, the effect of the proposed transaction on the potential for future competition would be of lit tle significance. The Board of Directors is of the opinion that the proposed transaction would not, in any sec tion of the country, substantially lessen com petition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. FSB experienced initial start-up problems and presently lacks the financial and managerial resources to develop into an effec tive competitor, while Suburban Trust has had a ’ See Basts for Corporation Approval of the merger of The Commerce Bank and Trust Company of Maryland, Bethesda, Maryland, and Potomac National Bank, Maryland. FDIC Annual Report-1977, pp.80-81. for Potomac, FRASER Digitized satisfactory record in both of these areas of consideration. The resultant bank is anticipated to have favorable future prospects. Convenience and Needs of the Community to be Served. The services to be offered by the resultant bank are presently available at offices of a number of large competitors in the relevant market. The proposed transaction, thus, would have a minimal effect on the convenience and needs of the community to be served. Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tion is warranted. Banking offices in operation Resources (in thousands Before After of dollars) W est Side Bank Scranton, Pennsyl vania (change title to First State Bank) 67,495 4 20,151 3 7 to merge with The First National Bank of Hawley Hawley Summary report by Attorney General, May 25, 1978 We have reviewed this proposed transaction and conclude that it would not have a substan tial competitive impact. Basis for Corporation approval, August 1 1 ,1 9 7 8 West Side Bank, Scranton, Pennsylvania ("W est Bank” ), an insured State nonmember bank with total resources of $6 7,495,000 and total IPC deposits of $60,554,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's consent to merge, under its charter, with The First National Bank of Hawley, Hawley, Pennsylvania ("First National” ), with total resources of $2 0,151,000 and total IPC deposits of $18,220,000. Incident to the trans action, the three offices of First National would be established as branches of West Bank and the present main office of First National would be designated as the main office of the result ant bank, which would commence operation with seven offices and with the title "First State Bank” . Competition. W est Bank operates its main office and three branches in the Scranton area of Lackawanna County. First National operates 77 BANK ABSORPTIONS APPROVED BY THE CORPORATION two offices in Hawley, Wayne County, and one office in Lackawaxen Township, Pike County. The borough of Hawley (1970 population 1,331) is located in the relatively sparsely populated hill region on the northern fringe of the Pocono Mountains. The borough of Honesdale (1970 population 5,224), located approximately 10 road-miles northwest of Hawley, serves as the area's principal commer cial center. Wayne and Pike Counties contain a large percentage of crop and pasture land, with the principal agricultural activity being dairy farming. While some manufacturing activity is in evidence, recreational activity and tourism have grown in economic importance in recent years. A sizable number of seasonal or "second” homes are located in the two-county area. While the median household buying levels for Wayne and Pike Counties are somewhat below the comparable figure of the State, the area has experienced increases in population and has a favorable economic prospect. The relevant market in which to assess the competitive impact of the proposed transac tion is regarded as the area within a 15 -to-2 0road-mile radius of Hawley which would include portions of Wayne and Pike Counties. Ten com mercial banks operate a total of 14 offices in this market, with First National holding a 10.3percent share of the market's IPC deposits. First National ranks as the fourth largest bank in the market by such a measure, with the three larger institutions, based in neighboring Honesdale, aggregately holding 51.8 percent of the IPC deposits in the market. As West Bank is not rep resented in this market (proponents' nearest offices are located approximately 35 road-miles apart), they are not regarded as being in direct competition and the proposed transaction is seen as having no significant effect on existing competition or on the structure of commercial banking in the local market. Pennsylvania statutes permit de novo branching activity in a bank's home office coun ty and in contiguous counties, and as such, each proponent is permitted to enter the market now served by the other. West Bank, based in the western portion of the city of Scranton, has limited its branching activity to the urbanized area in and around that city and appears an unlikely candidate for de novo expansion into the rural Hawley market in light of the numerous banking offices already serving the relatively limited population of the area. First National does not possess the financial resources to mount any meaningful expansion effort into the urban area of Scranton now served by West Bank. It therefore follows that no significant potential for increased future competition be tween the proponents would be eliminated by consummation of the proposed transaction. The Board of Directors is of the opinion that the proposed transaction would not, in any sec tion of the country, substantially lessen com petition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The considerations relating to finan cial and managerial resources have been satisfactorily resolved. The resultant bank is anticipated to have favorable future prospects. Convenience and Needs of the Community to be Served. The proposed transaction would not substantially change the services now available to the customers of either bank. The considerations of convenience and needs of the community are consistent with approval of the application. Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tion is warranted. Resources (in thousands of dollars) Citizens National Bank Ogden, Utah (change title to The Citizens Bank) Banking offices in operation Before 23,119 3 7,462 1 After 4 to consolidate with Kamas State Bank Kamas Summary report by Attorney General, April 27, 1978 The consolidating banks are both majorityowned subsidiaries of the same bank holding company. As such, their proposed consolida tion is essentially a corporate reorganization and would have no effect on competition. Basis for Corporation approval, August 1 1 ,1 9 7 8 Citizens National Bank, Ogden, Utah ("Citizens Bank” ), with total resources of $2 3,119,000 and total IPC deposits of $14,915,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior consent to consoli date with Kamas State Bank, Kamas, Utah ("Kamas Bank"), w ith total resources of $ 7 ,4 6 2 ,0 0 0 and total IPC deposits of $5,487,000, under a new State charter with the title "The Citizens Bank". The sole office of Kamas Bank would- be established as a branch of the resultant bank which would commence 78 FEDERAL DEPOSIT INSURANCE CORPORATION operation as an insured State nonmember bank operating a total of four offices. Both proponents have been under effective common control since December 1968. The principal shareholders of Kamas Bank hold a majority of the outstanding shares of Citizens Bankshares, Inc., a one-bank holding company, whose principal asset and subsidiary is Citizens Bank. The eight members of Citizens Bank's board of directors are members of the ninemember board of directors of Kamas Bank. Senior officers of Citizens Bank serve in a dual capacity with corresponding titles and respon sibilities of Kamas Bank. Competition. Citizens Bank has confined its operations to three offices located in the urbanized Ogden-Salt Lake City corridor along the eastern shore of the Great Salt Lake. They serve an area described as a narrow strip of developed land bounded on the east by a fo r midable mountain range which serves as a natural barrier restricting travel and easy access. Kamas Bank operates its sole office east of the mountains approximately 40 roadmiles east of Salt Lake City (site of nearest office of Citizens Bank) and approximately 75 road-miles southeast of Ogden. Kamas Bank is the third largest commercial bank in its local market holding 14.6 percent of the market's IPC deposits. The State's largest and thirdlargest banking organizations are represented in this market and both hold larger market shares than Kamas Bank; together they hold 62.1 per cent of the market's IPC deposits. Due to the geographic barrier and distance between the proponents' closest offices, little or no existing competition is in evidence. Likewise, and because of the modest size and resources of the two proponents, the prospects for increased future competition are regarded as remote. The Board of Directors is of the opinion that the proposed transaction would not, in any sec tion of the country, substantially lessen com petition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The considerations relating to finan cial resources of each bank and of the resultant bank have been satisfactorily resolved. The managements of both institutions are essentially identical and would be unaffected by the pro posed transaction. The future prospects of the resultant bank are regarded as favorable. Convenience and Needs of the Community to be Served. There would be no significant effect on the volume or types of services to be offered upon consummation of the proposed transaction. Considerations of convenience and needs of the community are, therefore, consis tent with approval of the application. Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tion is warranted. Resources (in thousands of dollars) Banco Comercial de Mayaguez Mayaguez, Puerto Rico Banking offices in operation Before After 74,102 3 4 13,565 1 to purchase the assets and as sume the deposit liabilities of Banco de Ahorro de Puerto Rico San Juan (P.O. Hato Rey) Approved under emergency provisions. No report requested from the Attorney General. Basis for Corporation approval, September 5, 1978 Banco Comercial de Mayaguez, Mayaguez, Puerto Rico, an insured State nonmember bank with total resources of $74,102,000, has applied, pursuant to Section 18(c) of the Federal D eposit Insurance A ct, fo r the Corporation's consent to purchase the assets of and assume the liability to pay deposits made in Banco de Ahorro de Puerto Rico, San Juan (P.O. Hato Rey), Puerto Rico, an insured State nonmember bank w ith total resources of $13,565,000. Incident to the proposed trans action, the sole office of Banco de Ahorro de Puerto Rico would become a branch of Banco Comercial de Mayaguez. As of September 5, 1978, Banco de Ahorro de Puerto Rico had deposits of $1 1,900,000 and operated one office. On September 5, 1978, the Federal Deposit Insurance Corpora tion was appointed as Receiver of Banco de Ahorro de Puerto Rico. The Board of Directors finds that the failure of Banco de Ahorro de Puerto Rico requires it to act immediately and thus waives publication of notice, dispenses with the solicitation of com petitive reports from other agencies, and authorizes the transaction to be consummated immediately. BANK ABSORPTIONS APPROVED BY THE CORPORATION Resources (in thousands of dollars) Banking offices in operation Before After 1 County Bank & Trust Company (in organization) Morehead City, North Carolina to purchase the assets and as sume the deposit liabilities of Morehead Plaza Branch —Bank of North Carolina, National Associa tion Jacksonville 2,352* 1 'Total IPC deposits of office to be transferred by "Bank of North Carolina, National Association” . Assets not reported by office. Summary report by Attorney General, May 11, 1978 We have reviewed this proposed transaction and conclude that it would not have a substan tial competitive impact. Basis for Corporation approval, September 6, 1978 Pursuant to Sections 5 and 18(c) and other provisions of the Federal Deposit Insurance Act, applications have been filed on behalf of Coun ty Bank & Trust Company, Morehead City, North Carolina ("CBT"), a proposed new bank in organization, for Federal deposit insurance and for the Corporation's prior consent to purchase the assets of and assume the liability to pay deposits made in the Morehead Plaza branch of Bank of North Carolina, National A sso cia tio n , Ja ckso n ville , N orth Carolina ("BNC"). The Morehead Plaza branch, with total IPC deposits of $2,352,000, would be operated as the sole office of CBT. Competition. The proposed transactions are a vehicle by which a group of Carteret County, North Carolina, businessmen can establish an independent, locally owned commercial bank in the Morehead City area. Carteret County (1970 population 31,603) is located in southeastern coastal North Carolina. It is of irregular shape of some 50 miles from east to west and 10 to 15 miles from north to south, occupying a penin sula and series of coastal islands between Pam lico Sound and the Atlantic Ocean. A large por tion of the county's land is described as low swampy woodland unsuitable for extensive cultivation and sparsely populated. The county has a diversified economic base encompassing manufacturing of apparel, processing of fish products, and tourism. Agricultural activities 79 include the raising of tobacco, potatoes, and vegetables. Morehead City has a large port facility operated by the State and has developed into a deep water harbor and ship ping center. Only two major highways connect the county with other centers of commercial activity. New Bern (1970 population 14,660) is located approximately 35 road-miles northwest of Morehead City and Jacksonville (1970 population 16,021) is located approximately 45 road-miles west. Morehead City (1970 population 5,233) and the neighboring tow n of Beaufort (19 70 population of 3,368), located 3 road-miles east, form the principal economic and commercial centers of the county. The proposed site of the new bank is in the Morehead Plaza Shopping Center located on U.S. Route 70 in Morehead City, which contains over 200,000 square feet of retail space. It is expected to attract residents from throughout the county and has the poten tial of replacing the downtown portion of Morehead City as the area's chief retail center. The relevant market in which to assess the competitive impact of the proposed transac tions is regarded as Carteret County, where 4 banks operate a total of 14 offices. Under the proposal, BNC, which holds a modest 1.7 per cent of the county's IPC deposits, will withdraw from representation in thee market and be re placed by CBT, which hopes to capture a larger market share by aggressively marketing its characteristics as a locally owned, independent bank. Eleven of the remaining 13 banking offices in the county are offices of the State's la rgest and f if th la rgest banks, w h ich aggregately hold 90.3 percent of the market's IPC deposits. The proposed transaction is seen as having no significant effect on existing com petition or on the structure of commercial bank ing in this local market. North Carolina statutes concerning de novo branching permit statewide activity. BNC has operated its sole office in Carteret County since February 1973 and has failed to make a signifi cant market penetration. It is thus seen as unlikely to attempt a further expansion in the area in light of the number of other banking offices present. In this concentrated market, with large, well established statewide institu tions, it is believed that the proposed transac tions would have little effect on the potential for future competition between the proponents. Under these circumstances, the Board of Directors is of the opinion that the proposed transaction would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The resultant bank would have an 80 FEDERAL DEPOSIT INSURANCE CORPORATION adequate volume of capital funds for the type and nature of business it is expected to draw during its early years of operation, and its finan cial resources are anticipated to be satisfactory. CBT's management is also considered ade quate, and its future prospects are regarded as acceptable. Convenience and Needs of the Community to be Served. It is anticipated that CBT will develop into an effective competitor. CBT pro poses to offer free checking accounts and expanded banking hours, which are expected to be favorably received by potential customers in the Morehead City market. The considerations of convenience and needs of the community are consistent with approval of the applications. Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tion for Federal deposit insurance and the application to purchase assets and assume liabilities is warranted. Resources (in thousands of dollars) Banking offices in operation Before After 1 First State Bank of Encino (in organization) Encino (Los Angeles), California to purchase the assets and as sume the deposit liabilities of Encino Branch— The Hongkong Bank of California San Francisco 5,537* 1 Summary report by Attorney General, June 26, 1978 We have reviewed this proposed transaction and conclude that it would not have a substan tial competitive impact. 'Total deposits of office to be transferred by The Hongkong Bank of California. Assets not available by office. Basis for Corporation approval, September 28, 1978 Pursuant to Sections 5, 18(c), and other pro visions of the Federal Deposit Insurance Act, applications have been filed on behalf of First State Bank of Encino, Encino (Los Angeles), California ("First Bank"), a proposed new bank in organization, for Federal deposit insurance and for the FDIC's prior consent to purchase the assets of and assume the liability to pay deposits made in the Encino Branch of The Hongkong Bank of California, San Francisco, California ("HKB"). The Encino Branch, with total deposits of $5,537,000, would be oper ated as the sole office of First Bank. Competition. The proposed transaction would have its most direct and immediate impact in the trade area of Encino. Encino is an approximately 15-to-2 0-sq uare -m ile com munity containing an estimated population of 44,000. Ventura Boulevard serves as a major east-west thoroughfare in the San Fernando Valley and has experienced extensive "s trip " commercial development along much of its 17mile route. In this corridor, several distinct retail and commercial centers are in evidence with residential development centered on the north and south side of the boulevard. In Encino, several high-rise office buildings have opened and the community serves as a focal point for extensive retail and commercial activity. Ten commercial banks operate a total of 12 offices in the above-described Encino market. Represented in this group are the five largest banking organizations in California. Under the proposals, HKB, which presently holds only a modest 2.8 percent of the m arket's IPC deposits, will withdraw from representation in Encino and be replaced by First Bank which will be locally owned and managed. Thus, the pro posed transaction is seen as having no signifi cant adverse effect on existing competition or on the structure of commercial banking in the local market. The possibility of potential com petition developing between the subject banks is remote since HKB desires to withdraw from this area. Based on the foregoing, the Board of Direc tors is of the opinion that the proposed transac tion would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The proposed First Bank would have an adequate level of capital funds to support the type and nature of business it is expected to draw during its early years of operation. Its financial resources are anticipated to be satisfactory and its management is regarded as adequate. First Bank's future prospects appear to be favorable. Convenience and Needs of the Community to be Served. The proposals will not affect the number of banks or banking offices serving the Encino community and will merely serve to substitute an independent, locally owned and managed commercial bank for a branch of an out-of-area bank whose interests appear to lie in other fields. It is anticipated that the new bank will attain sufficient deposit volume to 81 BANK ABSORPTIONS APPROVED BY THE CORPORATION become a profitable operation. The considera tions of convenience and needs of the com m unity to be served are consistent w ith approval of the transactions. Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tion for Federal deposit insurance and the application to purchase assets and assume liabilities is warranted. Resources (in thousands of dollars) The Bank of Le Roy Le Roy, New York (change title to Genesee Country Bank) Banking offices in operation Before 37,285 3 20,096 2 After 5 to merge with The Citizens Bank Attica Summary report by Attorney General, July 14, 1978 The merging banks are both wholly owned subsidiaries of the same bank holding company. As such, their proposed merger is essentially a corporate reorganization and would have no effect on competition. New York State's total deposits), may consoli date its operations in Genesee and Wyoming Counties. The proponents have been owned by Security New York State Corporation since 1970, and their proposed merger would not affect the structure of commercial banking or the concentration of banking resources within the relevant market. The Board of Directors is of the opinion that the transaction, would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. While the proponents' capital posi tions are somewhat below desired levels, their financial and managerial resources are con sidered adequate for purposes of this proposal. The resultant bank should be able to operate more efficiently and its future prospects appear favorable. Convenience and Needs of the Community to be Served. The services to be offered in the relevant market by the resultant bank would not differ from those presently offered by each proponent. The considerations of convenience and needs of the community are consistent with approval of the transaction. On the basis of the foregoing information, the Board of Directors has concluded that approval of the application is warranted. Resources (in thousands of dollars) Basis for Corporation approval, September 28, 1978 The Bank of Le Roy, Le Roy, New York ("Applicant"), an insured State nonmember bank with total resources of $3 7,285,000 and total IPC deposits of $24,648,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the FDIC's prior consent to merge with The Citizens Bank, Attica, New York ("Other Bank"), with total resources of $20,096,000 and total IPC deposits of $16,883,000. The banks would merge under the charter of Applicant with the title "Genesee Country Bank,” and the two offices of Other Bank would become branches of the resultant bank, which would commence operations with a total of five offices. Competition. E ssentially a co rp o ra te reorganization, the proposal would provide a means whereby Security New York State Cor poration, Rochester, New York, the 19th largest of the State's commercial banking organiza tions, controlling nine banks with aggregate total deposits of $9 68 ,9 57 ,0 00 (0.7 percent of Peoples Bank & Trust Company Rocky Mount, North Carolina Banking offices in operation Before After 294,674 42 47 23,334 5 to merge with The Cumberland Bank Fayetteville Summary report by Attorney General, August 30, 1978 We have reviewed this proposed transaction and conclude that it would not have a signifi cant adverse effect upon competition. Basis for Corporation approval, October 5, 1978 Peoples Bank & Trust Company, Rocky Mount, North Carolina ("Peoples Bank"), an insured State nonmember bank with total resources of $294 ,6 74 ,0 00 and total IPC 82 FEDERAL DEPOSIT INSURANCE CORPORATION deposits of $232,129,000, has applied, pur suant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Cor poration's prior consent to merge with The Cumberland Bank, Fayetteville, North Carolina ("Cumberland Bank"), with total resources of $ 2 3 ,3 3 4 ,0 0 0 and total IPC deposits of $16,412,000. The banks would merge under the charter and title of Peoples Bank, and inci dent to the merger, the 5 existing offices of Cumberland Bank would become branches of the resultant bank, increasing the number of its offices to 47. Competition. Peoples Bank is the 11 th largest banking organization in North Carolina. It currently operates 42 offices located predomi nantly in the northeastern portion of the State. The nearest office of Peoples Bank to an office of Cumberland Bank is located in Raleigh, approximately 60 miles north. Cumberland Bank operates four offices in Fayetteville and one in nearby Spring Lake. The areas served by the two banks do not overlap. The effects of this proposal would be most pronounced in Cumberland County, the primary market of Cumberland Bank. Fayetteville is the only urban area in the county, but Fort Bragg, one of the Nation's largest military installations, and adjoining Pope Air Force Base add con siderable population to the area. There are 9 banking in s titu tio n s , o p e ra tin g 65 banking offices, located in the county. This includes 7 of the State's 10 largest banking organizations. Cumberland Bank has 5.8 percent of the total IPC deposits in the county. Peoples Bank is not represented in the county, and inasmuch as the proposal would merely substitute Peoples Bank for Cumberland Bank, at the same sites, it is not expected that relative local market shares would be affected. Under North Carolina law each bank could establish de novo branches in areas serviced by the other bank. Because of its limited resources and the distances involved, Cumberland Bank is unlikely to engage in any such de novo branch ing activity. Peoples Bank has the capability for de novo branching, but there is little incentive to enter by this means because of the number of commercial banking offices already in Cumber land County. It therefore appears unlikely that any significant potential competition would be eliminated by the proposed merger. Based on the foregoing, the Board of Direc tors is of the opinion that the proposed merger would not, in any section of the country, sub stantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. Both proponents have satisfactory financial and managerial resources, as would the resultant bank. The future prospects appear favorable. Convenience and Needs of the Community to be Served. Consummation of this proposed merger would make available larger lending limits and more sophisticated banking services to Cumberland Bank's customers. These serv ices are available at a number of other large commercial banks in the area, but the con siderations of convenience and needs are nevertheless consistent with approval of the proposed merger. Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tion is warranted. Resources (in thousands of dollars) Colonial Bank of New Haven New Haven, Connecticut (change title to Colonial Bank) Banking offices in operation Before After 292,064 20 66 523,834 34 42,134 6 43,336 6 to merge with Colonial Bank of Waterbury and Colonial Bank of Hartford Hartford and Colonial Bank of Plainville Plainville Summary report by Attorney General, June 26, 1978 The merging banks are all wholly owned sub sidiaries of the same bank holding company. As such, their proposed merger is essentially a cor porate reorganization and would have no effect on competition. Basis for Corporation approval, October 12, 1978 Colonial Bank of New Haven, New Haven, Connecticut ("Applicant"), an insured State nonmember bank w ith total resources of $ 2 9 2 ,0 6 4 ,0 0 0 and total IPC deposits of $238,224,000, has applied, pursuant to Sec tion 18(c) and other provisions of the Federal Deposit Insurance Act, for the FDIC's prior con sent to merge with Colonial Bank of Waterbury, Waterbury, Connecticut, with total resources of $ 5 2 3 ,8 3 4 ,0 0 0 and total IPC deposits of BANK ABSORPTIONS APPROVED BY THE CORPORATION $3 40 ,4 17 ,0 00 ; Colonial Bank of Hartford, Hartford, Connecticut, with total resources of $ 4 2 ,1 3 4 ,0 0 0 and total IPC deposits of $37,841,000; and Colonial Bank of Plainville, Plainville, Connecticut, with total resources of $ 4 3 ,3 3 6 ,0 0 0 and total IPC deposits of $35,047,000. These banks would merge under the charter of Applicant and, w ith the title "Colonial Bank." The 46 authorized offices of the other banks would be established as branches of the resultant bank. The main office location will be redesignated to the pres ent main office site of Colonial Bank of Waterbury. Competition. E ssentially a co rp o ra te reorganization, the proposal would provide a means by which Colonial Bancorp, Inc., Waterbury, Connecticut, a bank holding company which controls these four banks only, may con solidate its operations. The proponents have been under common control since 1977. The proposed merger would not affect the structure of commercial banking or the concentration of banking resources within the relevant markets. In view of the foregoing, the Board of Direc tors is of the opinion that the proposed merger would not, in any section of the country, sub stantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The proponents' financial and managerial resources are considered adequate for the purposes of this proposal. The financial and managerial resources of the resultant bank would be satisfactory and its future prospects appear favorable. Convenience and Needs of the Community to be Served. The services to be offered in the relevant markets by the resultant bank would not d iffe r materially from those presently offered by each proponent. On the basis of the foregoing information, the Board of Directors has concluded that approval of the application is warranted. Resources (in thousands of dollars) The Equitable Trust Company Baltimore, Mary land Banking offices in operation Before After 1,448,598 95 99 18,220 4 to merge with Truckers and Savings Bank Salisbury 83 Summary report by Attorney General, August 28, 1978 We have reviewed this proposed transaction and conclude that it is essentially a corporate reorganization and would have no effect on competition. Basis for Corporation approval, October 12, 1978 The Equitable Trust Company, Baltimore, Maryland ("Applicant"), an insured State non m em ber bank w ith to ta l resources o f $1 ,448 ,5 98 ,0 00 and total IPC deposits of $1,138,728,000, has applied, pursuant to Sec tion 18(c) and other provisions of the Federal Deposit Insurance Act, for the FDIC's prior con sent to merge with Truckers and Savings Bank, Salisbury, Maryland ("Truckers"), with total resources of $ 1 8 ,2 2 0 ,0 0 0 and total IPC deposits of $14,827,000. These banks would merge under the charter and with the title of Applicant and the fou r existing and one approved but unopened offices of Truckers would be established as branches of the result ant bank. Competition. Applicant and Truckers are wholly owned subsidiaries of Equitable Bancorporation, Baltimore, Maryland, a bank holding company, and have been under common con trol since 1974. Essentially a corporate reorganization, this proposal would result in the business of these tw o banks being conducted under the charter and title of Applicant. The proposed merger would not affect the structure of commercial banking or the concentration of banking resources within the relevant market. In view of the foregoing, the Board of Direc tors is of the opinion that the proposed merger would not, in any section of the country, sub stantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The proponents' financial and managerial resources are considered adequate for the purposes of this proposal. The financial and managerial resources of the resultant bank would be acceptable and its future prospects appear favorable. Convenience and Needs of the Community to be Served. The services to be offered in the relevant market by the resultant bank would not differ materially from those presently offered by each proponent. On the basis of the foregoing information, the Board of Directors has concluded that approval of the application is warranted. 84 FEDERAL DEPOSIT INSURANCE CORPORATION Resources (in thousands of dollars) The New York Bank for Savings New York, (Man hattan), New York Banking offices in operation Before After 3,765,557 26 32 96,265* 6 to merge with First Chartered Savings and Loan Association Port Jervis 'Total deposits. Summary report by Attorney General, August 8, 1978 The closest offices of the merging parties (Applicant's Bedford Hills office in Westchester County and First Chartered's Nyack office in Rockland County) are 21 miles apart. The application indicates that, based upon a samp ling of accounts, the merging parties have a negligible number of common depositors. However, according to the application, there is some deposit overlap between Applicant and First Chartered; thus, as of December 31, 1977, Applicant held $27.7 million in deposits drawn from First Chartered's primary and secondary service areas, and First Chartered held $2.3 million in deposits drawn from Appli cant's primary and secondary service areas. It therefore appears that the proposed merger would eliminate some existing competition be tween Applicant and First Chartered. However, it does not appear that concentration among t h r if t in s titu tio n s w o uld be s ig n ific a n tly increased in any relevant market. Finally, under New York law, thrift institutions may establish one de novo branch office per year. The poten tial for increased future competition between Applicant and First Chartered through de novo branching is therefore limited. Basis for Corporation approval, October 30, 1978 The New York Bank for Savings, New York (Manhattan), New York ("NYBS"), an insured mutual savings bank with total resources of $ 3 ,7 6 5 ,5 5 7 ,0 0 0 and to ta l d e po sits o f $3,359,764,000, has applied, pursuant to Sec tion 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior consent to merge with First Chartered Savings and Loan Association, Port Jervis, New York ("First Chartered"), a Federally insured savings and loan association with total deposits of $96,265,000. The 2 institutions would merge under the charter and title of NYBS, and incident to the merger, the 6 offices of First Chartered would become branches of the re sultant bank, which would commence operating with a total of 32 offices and 1 approved, but unopened office. Competition. NYBS operates its main office and 16 branches in Manhattan, 2 branches in W estchester County, 3 branches in the Rochester area of Monroe County, and 4 branches in the Syracuse area of Onondaga County. An additional branch has been approved for the Syracuse area. NYBS is the third largest thrift institution in New York State. The relevant market in which to assess the competitive impact of the proposed transaction is regarded as Orange and Rockland Counties, where First Chartered operates its six offices. While there is some evidence of commutation to New York City and other nearby areas for employment, the majority of the residents of the two-county area are employed locally. Several well-known industrial firms have estab lished manufacturing facilities in this market and contribute to a stable economic base. There are 31 thrift institutions operating 65 offices in the relevant market. First Chartered, which ranks as the market's fifth largest thrift institution, holds a modest 6.4 percent of the area's thrift institution deposits. NYBS, whose nearest office is located 21 road-miles distant from the closest office of First Chartered, is not represented in this market. The proposed trans action would have no significant effect on exist ing competition between the proponents or on the structure of thrift institution banking in the local market. NYBS's ranking as the State's third largest thrift institution would not be materially affected by the relatively modest volume of deposits held by First Chartered. The potential for substantial competition to develop between the tw o banks through de novo branching is considered remote due to the very strong competition First Chartered would encounter in the New York City area and the statutory limitation of one de novo branch a year applicable to NYBS. Based on the foregoing, the Board of Direc tors is of the opinion that the proposed merger would not, in any section of the country, sub stantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The considerations relating to finan cial and managerial resources have been satisfactorily resolved, and the resultant bank is anticipated to have favorable future prospects. Convenience and Needs of the Community to be Served. NYBS's entry into the Orange and Rockland Counties market would make avail able an additional alternative for certain thrift vvsy ; p ^ o v t r ’ s v i Hrr '.G ^ -e ^ v ^ f.v : institution services not now offered by First Chartered. The considerations of convenience and needs of the community to be served are consistent with approval of the application. Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tion Is warranted. Resources (in thousands of dollars) Vevay Deposit Bank Vevay, Indiana Banking offices in operation Before After 16,568 1 2 2,979 1 to merge with East Enterprise State Bank East Enterprise Summary report by Attorney General, August 28, 1978 We have reviewed this proposed transaction and conclude that it would not have a substan tial competitive impact. Basis for Corporation approval, November 8, 1978 Pursuant to Section 18(c) and other provi sions of the Federal Deposit Insurance A c t an application has been filed on behalf of Vevay Deposit Bank, Vevay, Indiana ("Applicant"), an insured State nonmember bank with total resources of $ 1 6 ,5 6 8 ,0 0 0 and total IPC deposits of $13,252,000, for the FDIC's prior consent to merge, under its charter and title, with East Enterprise State Bank, East Enterprise, Indiana ("State Bank"), also an insured State nonmember bank, with total resources of $ 2 ,9 7 9 ,0 0 0 and to ta l IPC de po sits o f $2,434,000. The sole office of State Bank would be established as a branch of the result ant bank. Competition, Applicant operates its sole office in the town of Vevay (1970 population 1,463) in the southern portion of Switzerland County of southeastern Indiana and has received approval to establish its first de novo branch, also in Vevay. State Bank operates its sole office at the village of East Enterprise (esti mated population 1 50) in the northern part of Switzerland County approximately 12 roadmiles northeast of Vevay. Switzerland County and adjoining Ohio County (1970 population 6,306 and 4,289, respectively), which form the relevant market in 85 which to assess the competitive impact of the proposed transaction, are among the smallest of Indiana's counties in both area and popula tion. These counties are located in the rural, extreme southeastern portion of the State adjoining the Ohio River. The terrain is generally hilly and the economy predicated, to a large exte nt, upon live sto ck p ro d u ctio n and agriculture. The city of Madison (1970 popula tion 13,081) and the Aurora-Lawrenceburg area (estimated population 9,000) contain diversified industry and manufacturing plants which serve, to some extent, as centers for nonagricultural employment for the market's rural residents. In the relevant market, four commercial banks each operate a single office. Applicant, holding 38.7 percent of the market's IPC deposits, ranks as its largest bank; State Bank is the smallest, holding a 6.8-percent share of such funds which are drawn from a limited local area. The two-county market is sparsely popu lated with the city of Madison and the AuroraLawrenceburg area providing, to some extent an alternate source of commercial banking service. Represented in these cities are banks of a substantially larger size than the institutions competing in Switzerland and Ohio Counties. While the proposed merger would eliminate some existing competition between the propo nents and increase concentration levels in the market these consequences have only limited significance in light of the small size of the rele vant market and its deposit potential Although the proposed merger would reduce from four to three the number of commercial banks in this market the effectiveness of State Bank as a c o m p e tito r appears lim ite d. S tate Bank, organized in 1909, has attained less than $3 million in total deposits in its almost 70-year history and presently administers a loan portfolio of only $770,000. Indiana statutes permit de novo branching throughout a bank's home office county, sub ject to a home office protection provision. State Bank's limited size., however, appears to pre clude its expansion by such means. Applicant, while possessing the necessary resources and ability to engage in de novo branching, is ham pered by Switzerland County's limited popula tion, particularly in the northern portion of the county m the vicinity of East Enterprise. The proposed transaction is thus viewed as having no significant effect on the potential for future competition between the proponents. Under the circumstances, the Board of Direc tors is of the opinion that the proposed transac tion would n o t in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. -tDLRA*. 0- " " l r 86 Financial and Managerial Resources; t> rrre P rospects. The fin a n cia l and m anagerial resources of both proponents ar;d of the result ant bank are consde'ed adequate lor purposes of this proposal Fr«t rasultain bank is antic; paled to have T s v o r b le future prospects, Convenience and Needs o f the Community to he Served. State Bank's limited resources have prevented it from offering many full serv ice commercial banking ^er sees that vvouic oe available at the resuitart c»jK In aactoio*». a modernization program is ^ r for State Bank's building, and a drive-up ‘ability wojk.1 be added. The considerations of convenience and needs of the community to be served appear to add some weight in favor of approval of the application. Available inform ation indicates that no inconsistencies with the purposes of the Com munity Reinvestment Act appear to exist. Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tion is warranted. 1— ■ Banking offices in operation | Resources I (in thousands | of dollars) Gardiner Savings Institution Gardiner, Maine to merge with Hailowell Savings and Loan Association Hailowell Before j| After .. | 50,058 4,618 i 4 ! j Summary report by Attorney General, October 3, 1978 The primary service area of Applicant over laps that of Bank. The main offices of both are located 4.3 miles apart in Kennebec County. In view of the overlapping service areas of Appli cant and Bank and the closeness of their offices, the proposed acquisition would elimi nate both present and future direct competition for deposits. As of June 30, 1977, Applicant was the seventh largest banking institution in Kennebec County, with 7.9 percent of total savings deposits in all financial institutions. Bank is the smallest of fo ur savings associations in the county, with 1.1 percent of total savings deposits in financial institutions. Consummation of the proposed acquisition would give the resulting bank a totai of 9,0 percent of savings deposits in county financial institutions. Tr: si „ c?_ ' «■ , m _G *" --if * * ' , a M ’■* >r Basis for Corporation approval, November 8f 1978 Gardiner Savings Institution, Gardiner, Maine ("Gardiner Savings"), an insured mutual sav ings b&nx with total resources of $5 0,058,000 and tctr-s deposits of $ 4 5 ,7 3 0 ,0 0 0 , has applied Pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the prior consent to merge with Hailowell Savings and Loan Association, Hailowell, Maine ("S&L"), a federally insured savings and loan association with total resources of $4,618,000 and total deposits of $4,441,000 T he merger would be effected 'e* tne charter and title of Gardiner Savings r id thr, so!e office of S&L would be established as * oranch of the resultant bank. Competition, Gardiner Savings operates three offices in the three-county area in the cap till region of Maine, with its main office in (; jiner, Kennebec County, approximately 7 .«* south of the city of Augusta, and •_> . nohes 10 miles south and 17 miles southeast of Gardiner, in Richmond, Sagadahoc County, and Wiscasset, Lincoln County, respec tive:’/ Gardiner Savings is the 16th largest mutual savings bank in Maine, having 2.3 per cent of deposits held by all mutual savings banks in the State. S&L's sole office is located in Hailowell (1970 population 2,814), approx imately 4 miles north of Gardiner Savings' main office, S&L's service area is located wholly within the service area of Gardiner Savings. In addition to Hailowell, the relevant trade area in which to assess the competitive impact of the proposed transaction consists of the cities of Augusta to the north and Gardiner to the south, along with the surrounding municipalities of Farmingdale, W e st Gardiner, P itts ton, Randolph, and Chelsea. The combined population of this area in 1970 was 40,755, a modest increase of 2.5 percent over 1960 The area serves as a shop ping and service center for a number of sur rounding towns, in addition to having heavy manufacturing, some tourism, and a concentra tion of governmental activity. Gardiner Savings holds approximately 20.8 percent of deposits held by thrift institution offices in the relevant market. It ranks third in market share among five thrift institutions which operate a totai of seven offices in the trade area, S&L is the smallest of these five institutions, holding 2.9 percent of area thrift institution deposits, in view of S&L's relatively small size, limited resources, and weakened condition, the proposed transaction is seen as j -NS i' having no significant effect on existing com petition or on the potential for increased future competition between the proponents. Under the circumstances, the Board of Direc tors is of the opinion that the proposed merger would not, in any section of the country, sub stantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The fin a n cia l and m anagerial resources of Gardiner Savings are satisfactory. S&L's financial resources have deteriorated to the point where the institution functions as only a weak competitor. Its acquisition by Gardiner Savings will eliminate such problems. The future prospects of the resultant bank are regarded as satisfactory. Convenience and Needs of the Community to be Served. S&L's sole office would become a branch of Gardiner Savings which will offer a broader range of thrift institution services than have been available to S&L's patrons. The re placement of a small, weakened, and unaggressive institution with a sound and more aggressive one should benefit local residents. The considerations of convenience and needs of the community appear to add some support to approval of the transaction. Available inform ation indicates that no inconsistencies with the purposes of the Com munity Reinvestment Act appear to exist. Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tion is warranted. Resources (in thousands of dollars) American Bank of Maryland Silver Spring, Maryland (change title to First American Bank of Maryland) Banking offices in operation Before After 212,570 20 24 41,963 4 to merge with Chesapeake National Bank Towson Summary report by Attorney General, August 8, 1 978 The merging banks are both majority-owned subsidiaries of the same bank holding company. > h O. ' - As such, her :soo -sed merger is essentially a corporate reorganization and would have no effect on competition. Basis for Corporation approval, November 8, 1978 American Bank of Maryland, Silver Spring, Maryland ("American"), an insured State non m em ber bank w ith to ta l resources o f $ 2 1 2 ,5 7 0 ,0 0 0 and total IPC deposits of $184,338,000, has applied, pursuant to Sec tion 18(c) and other provisions of the Federal Deposit Insurance Act, for the FDIC's prior con sent to merge with Chesapeake National Bank, Towson, Maryland ("Chesapeake"), with total resources of $ 4 1 ,9 6 3 ,0 0 0 and total !rC deposits of $36,182,000. These banks wo merge under the charter of American and w; the title "First American Bank of Maryland The four existing offices of Chesapeake would be established as branches of the resultant bank. Competition. E ssentially a co rp o ra te reorganization, the proposal would provide a vehicle by which Financial General Bankshares, Inc., Washington, D.C., a multi-bank holding company, may consolidate its operations in central Maryland. The proponents are both par tially owned by a wholly owned subsidiary of the holding company, Financial General Cor poration of Maryland, which owns 45.8 percent of American and 93.6 percent of Chesapeake. American, based in Silver Spring, operates a total of 20 offices serving central Maryland from the Baltimore area to suburban Washing ton, D.C. Chesapeake, based in Towson north of the city of Baltimore, operates four offices in the Baltimore and Annapolis areas. While the primary service areas of the proponents do overlap to some minor extent, the service ar are viewed as generally complementary. Eh tive, direct competition, absent the comrownership factor, is in evidence only at off? located in the vicinity of Annapolis. In ligh v the number of other banking alternatives av: ■able to residents of that area, consummatior . the proposed transaction would have little com petitive impact. The common ownership interest in both pro ponents by the holding company precludes any significant existing or potential competition. Chesapeake was established in 1964 and has remained under majority control of the holding company since that time. Minority "co ntrol" of American dates from 1955, and while actual ownership of that institution by the holding company is slightly less than 50 percent, it seems unlikely that the actual majority control of the institution would be allowed to pass to another individual or group. FEDERAL DEPOSIT INSURANCE CORPORATION 88 Under these circumstances, the Board of Directors is of the opinion that the proposed transaction would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The proponents' financial and managerial resources are considered adequate for the purposes of this proposal. The financial and managerial resources of the resultant bank would be acceptable, and its future prospects appear favorable. Convenience and Needs o f the Community to be Served. The services to be offered in the relevant market by the resultant bank would not differ materially from those presently offered by each proponent or available at competing banks. The considerations of convenience and needs of the community, however, are consis tent with approval of the transaction. Available inform ation indicates that no inconsistencies with the purposes of the Com munity Reinvestment Act appear to exist. On the basis of the foregoing, the Board of Directors has concluded that approval of the application is warranted. Resources (in thousands of dollars) Frankenmuth Bank & Trust Frankenmuth, Michigan Banking offices in operation Before After 1 9 3 ,1 3 9 14 15 9 ,2 1 0 1 to consolidate w ith The Farmers and M erchants State Bank of M e rrill Merrill Summary report by Attorney General, June 26, 1978 We have reviewed this proposed transaction and conclude that it would not have a signifi cantly adverse effect upon competition. Basis for Corporation approval, November 8, 1978 Frankenmuth Bank & Trust, Frankenmuth, Michigan ("Frankenmuth Bank"), an insured State nonmember bank with total resources of $ 1 9 3 ,1 3 9 ,0 0 0 and total IPC deposits of $1 58,085,000, has applied, pursuant to Sec tion 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior consent to consolidate with The Farmers and Merchants State Bank of Merrill, Merrill, Michigan ("Farmers Bank” ), an insured State m em ber bank w ith to ta l resources of $ 9 ,2 1 0 ,0 0 0 and to ta l IPC d e po sits o f $7,703,000, under the charter and title of Frankenmuth Bank. Farmers Bank's sole office would be operated as a branch of the resultant bank. Competition. The tw o banks are located in cities situated about 30 miles apart in Saginaw County, which is in east-central Michigan. The county had a 1970 population of 219,743, which was a 1 5.2-percent increase from the 1960 population figure. The banking market most relevant to an evaluation of this proposed transaction would be an area within an approxi mate 20-road-mile radius of Merrill, including portions of Saginaw, Midland, and Gratiot Counties. Much of the area is rural with the economy chiefly predicated upon agriculture. The cities of Saginaw, 19 70 population 9 1 ,8 4 9 , and M idland, 1 9 7 0 p o pu latio n 34,921, serve as the area's economic centers and provide nonfarm employment and shop ping convenience to residents of the trade area. The area, with the exception of the city of Saginaw, has experienced a moderate growth in population, and except for Gratiot County, income averages are near or above the 1977 State median household buying level. The proponents are in direct competition to the extent that tw o of Frankenmuth Bank's branches are in the relevant market of Farmers Bank. The competitive effect of the transaction, however, is regarded as nominal in light of the number of alternate sources of commercial banking available in the market area and the relative size of such competing institutions. The closest offices of the tw o banks are 14 miles apart with offices of other banks in the inter vening area. Of the 14 banks operating a total of 53 offices in the relevant market, the proponents rank 7th and 13th in percentage of total deposits held. The resultant bank would hold 4.4 percent of such deposits and would con tinue to rank seventh in the market. It would appear that a competitive banking climate would continue in the market and that the pro posed consolidation would not have any material effect on the structure of commercial banking. Under Michigan statutes, each bank may branch within 25 miles of its main office within Saginaw County or any of the counties con tiguous thereto, but no de novo branch may be established in any community in which another bank is already in operation. Thus, the potential for competition to increase via de novo branch ing is not significant. BANK ABSORPTIONS APPROVED BY THE CORPORATION The proposed consolidation of Frankenmuth Bank and Farmers Bank would not eliminate any significant existing or potential competition be tween them, nor would it materially affect the concentration of banking resources in the local market. Based upon the foregoing, the Board of Directors is of the opinion that the proposed transaction would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. Both banks have satisfactory finan cial and managerial resources, and the resultant bank, with the proposed addition to its capital stru c tu re , w o uld have fa vo ra b le fu tu re prospects. Convenience and Needs o f the Community to be Served. The proposed consolidation would result in some improvement in the serv ices available to the customers of Farmers Bank. The resultant bank would have an increased lending limit and would provide trust services and expertise in specialized lending areas. The considerations of convenience and needs of the community are consistent with approval of the application. Available inform ation indicates that no inconsistencies with the purposes of the Com munity Reinvestment Act appear to exist. Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tion is warranted. Resources (in thousands of dollars) W estern Bank Coos Bay, Oregon Banking offices in operation Before After 2 4 6 ,6 1 6 26 35 4 8 ,0 7 2 9 to merge with Crater National Bank Medford Summary report by Attorney General, October 13, 1978 We have reviewed this proposed transaction and conclude that it would not have a substan tial competitive impact. Basis for Corporation approval, November 8, 1978 Western Bank, Coos Bay, Oregon, an insured State nonmember bank with total resources of Digitized$for 2 4FRASER 6 ,6 1 6 ,0 0 0 and total IPC deposits of 89 $ 1 89,797,000, has applied, pursuant to Sec tion 18(c) and other provisions of the Federal Deposit Insurance Act, for the FDIC’s prior con sent to merge, under its charter and title, with Crater Natonal Bank, Medford, Oregon ("Crater Bank” ), with total resources of $48,072,000 and total IPC deposits of $39,450,000. The nine offices of Crater Bank will be established as branches of the resultant bank. Incident to the transaction, Class A Convertible Preferred Stock will be issued, and the FDIC's advance consent to the retirement thereof is also sought. Competition. Based in Coos Bay on the southwestern coast of Oregon, Western Bank operates 26 offices in 12 of the State's coun ties. Crater Bank operates all of its nine offices within Jackson County in southern Oregon, which is regarded as the relevant market in which to assess the competitive impact of the proposed transaction. Jackson County (1970 population 94,533) has experienced rapid growth in recent years with development most evident along a series of valleys and centered at the city of Medford (1970 population 28,454), which serves as a principal commercial, retail, and economic center for a wide area. Approximately one-third of the county's manufacturing is engaged in the wood products industry; however, tourism, related recreational pursuits, and specialized agricultural crops contribute to a stable economic base. Seven commercial banks operate a total of 28 offices in this market, including offices of the State's three largest commercial banks. Crater Bank, which is ranked as the third largest commercial bank in this market, holds 12.4 per cent of its IPC deposits. This market share is significantly smaller than the 72.C-percent combined share held by the tw o Portland-based commercial banks that dominate this local market as well as other markets in the State. Western Bank, whose nearest office is more than 40 road-miles from any office of Crater Bank and separated by mountainous terrain, is not represented in the market. Its merger with Crater Bank would have no effect on existing competition between the institutions or on the structure of the local market. Oregon State statutes prohibit de novo branching in communities of less than 50,000 population that contain existing banking offices. Western Bank is therefore precluded from de novo entry into the city of Medford and most other developed areas of Jackson County. While some potential de novo branch sites do remain. Western Bank is not viewed as likely to expend the time and resources necessary to make a significant market penetration in light of the number of established banking offices in the developed portions of the county and the 90 FEDERAL DEPOSIT INSURANCE CORPORATION concentrated nature of the local banking market. Crater Bank, which has chosen to con fine its operations to Jackson County, is not anticipated to expand into geographic areas removed from this base to become a major competitor of Western Bank in the near future. The proposed transaction is thus seen as hav ing no significant effect on potential competi tion between the proponents. Western Bank, ranked as Oregon's fifth largest commercial bank with 2.2 percent of the State's total commerciai bank deposits, would acquire only an additional 0.4 percent of such funds as a consequence of the proposed trans action. This modest increase in share of State deposits would have little material effect on the concentration of banking resources in light of the substantially larger shares held by the State's two largest commercial banks, which aggregately hold 55.3 percent of Oregon's commercial bank deposits. Based on the foregoing, the Board of Direc tors is of the opinion that the proposed transac tion would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The fin a n cia l and m anagerial resources of both proponents are regarded as satisfactory. W ith the proposed additions to the resultant bank's capital structure, its future prospects appear favorable. Convenience and Needs o f the Community to he Served. The resultant bank will offer more , ensive commercial banking services than are f sently available at Crater Bank. These serv; are available at local offices of Oregon's * ?.e largest banks, but the proposed merger ,-uld bring another source for such services to ir e local market. The considerations of con venience and needs of the community to be served are consistent with approval of the application. Available inform ation indicates that no inconsistencies with the purposes of the Com munity Reinvestment Act appear to exist. Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tion is warranted. Resources (in thousands of dollars) The W est Pensacola Bank Pensacola, Florida (change title to The West Florida Bank) Banking offices in operation Before After 37,883 2 4 13,797 2 to merge with The Bank of W est Florida Pensacola Summary report by Attorney General, August 30, 1 978 Both Applicant and Bank operate in the Pen sacola SMSA, which consists of Escambia and Santa Rosa Counties. Bank's home office is located 8.7 miles north of Applicant's home office; Applicant's branch office is 3.5 miles east of the home office of Bank. However, numerous other banking institutions operate in the area served by Bank and Applicant. Appli cant ranks sixth of 20 banks in the SMSA, con trolling 6.85 percent of total deposits. Bank ranks 1 5th in the SMSA, controlling 2.1 8 per cent of total deposits. In Escambia County Applicant ranks 6th with 8.2 percent of total deposits and Bank ranks 11 th with 2.60 per cent of total deposits of 16 banks in the county. The resulting bank would rank 5th with 9.04 percent of total deposits in the SMSA and 5th with 10.7 percent of total deposits in the coun tyIt thus appears that the two institutions com pete directly in both Escambia County and the Pensacola SMSA and that the proposed merger would eliminate some existing competition. In view of the size of the institutions, their relative market shares, and the presence of alternative banking institutions, we conclude that this merger would have a slightly adverse effect on competition. Basis for Corporation approval, November 1 7, 1978 The W est Pensacola Bank, Pensacola, Florida ("W est Pensacola''), an insured State nonmember bank w ith total resources of $ 3 7 ,8 8 3 ,0 0 0 and total IPC deposits of $27,100,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior consent to merge, under its charter, with The Bank of West Florida, Pensacola, Florida ("W est Florida''), an insured State nonmember bank with total resources of $1 3,79 7,00 0 and total IPC deposits of $11,186,000. Incident to the -’O’" *'•-* '• ~ c . ' - -* of West honda '* o d ' ^'s^pf a*, branches of t h e re-«J? r , t or- ^ «.;o w ' m , . commence operation *vith f^ut of* ces and w th the title "The West Flor da , Competition, The proponents are located in Escambia County, the westernmost county in the Florida panhandle. West Pensacola operates its head office near downtown Pensacola (1970 population 59,507), the county seat, and its only branch approximately 9 miles to the north. W est Florida's main office is located approximately 9 miles northwest of downtown Pensacola and its only branch is located 16 miles north of the main office in the town of Molena, Florida In addition to the Pensacola Naval Air Station and support facilities which are the principal contributors to the local economy, a number of manufacturing plants are important to the economy of Escambia County (1970 population 205,334), as are commercial and sport fishing and shipping. The county experienced a population increase of 1 8.1 percent in the period 1960 to 1970. Of the 13 commercial banks operating 25 banking offices in Escambia County, West Pen sacola and West Florida are ranked sixth and ninth by deposit size, holding 8.1 percent and 2.8 percent of the county's total deposits, respectively. The resultant bank would hold 10.9 percent of such deposits, making it the fifth largest bank in the county. It would appear that the structure of commercial banking in Escambia County would not be significantly affected by the proposed transaction.* While the proponents' nearest offices are located less than 4 miles apart in the unincor porated Ensley portion of the county, and the proponents' head offices are only 9 miles dis tant, actual direct competition between the two institutions appears to be somewhat limited. West Pensacola, established in 1950, has grown into a commercially oriented institution centered near the downtown business district of Pensacola, while West Florida, established in 1967, has chosen to operate principally as a consumer-oriented bank serving outlying por tions of the county. In light of the proponents' differing customer bases and the presence of v . - } ■i i •r * r(c * d -t* consumma- r>,ofG'-'Cd ‘ rvise c h o n is viewed as r C3i»t r/jverse .rnpact on existing " ^ n re t^ n ^ Under f\or:o.z statutes, banks headquartered in Escambia County may branch de novo and merge only within the confines of the county. Each operating bank may establish tw o branches per calendar year, in addition to those acquired via merger The impact of the pro posed transaction on the potential for future competition is regarded as nominal. Based on the foregoing, the Board of Direc tors is of the opinion that the proposed transac tion would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The considerations relating to finan cial and managerial resources of each institution have been satisfactorily resolved and the result ant bank is anticipated to have favorable future prospects. Convenience and Needs o f the Community to be Served. The proposed merger would result in no substantial change in the services now available to customers of either bank. The considerations of convenience and needs of the community are consistent with approval of the application. Available inform ation indicates that no inconsistencies with the purposes of the Com munity Reinvestment Act appear to exist. Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tion is warranted. Resources (in thousands of dollars) Peoples Bank of Hawk Point Hawk Point, Missouri (change title to Peoples Bank of Lincoln County) Banking offices in operation Before After 14,218 1 2 5,340 2 to merge with *!n August 1977, Mr. James H. Baroco, principal stockholder of West Pensacola, began purchasing and now has effective stock control of West Florida. Since the current affiliation of the two banks has not heretofore been subject to regulatory scrutiny, the affiliation is of no persuasive value in determining, for purposes of the Bank Merger Act, what competitive im pact if any, the proposed transaction may have. Therefore, in accordance with past agency practice, the Board of Directors has ignored the affiliation in its assessment of the proposal. Citizens Bank of Troy Troy Summary report by Attorney General, August 8, 1 978 We have reviewed this proposed transaction and conclude that it would not have a signifi cant adverse effect upon competition. 92 FEDERAL DEPOSIT INSURANCE CORPORATION Basis for Corporation approval November 1 7.. 1 978 Pursuant to Section 18(c) and other provi sions of the Federal Deposit Insurance Act, an application has been filed ;:ehalf of Peoples Bank of Hawk Point,. Haw< Point, Missouri ("Peoples Bank"), an insured State nonmember bank with total resources of $1 4,21 8,000 and total IPC deposits of $1 2,496,000, for the Cor poration's prior consent to merge, under its charter, with Citizens Bank of Troy, Troy, Missouri ("Citizens Bank"), also an insured State nonmember bank, with total resources of $ 5 ,3 4 0 ,0 0 0 and to ta l IPC de p o sits of $3,751,000. Peoples Bank seeks to redesig nate its main office location to the present site of the main office of Citizens Bank and to establish the sole office of Peoples Bank as a branch of the resultant bank, which would bear the title "Peoples Bank of Lincoln County." Citizens Bank's present branch (facility) at Moscow Mills will be discontinued. Incident to the transaction, the proponents have proposed raising $6 00 ,0 00 as an addition to the resultant bank's capital structure. Such capital funds would include $ 4 0 0 ,0 0 0 in subordinated capital notes and the Corporation's advance consent to their mandatory retirement provision is also sought. Competition. Peoples Bank operates its sole office in Hawk Point (1 970 population 354) in the western part of Lincoln County, Missouri. Citizens Bank is headquartered in the city of Troy (1 970 population 2,538), located in the south-central portion of Lincoln County approx imately 8 road-miles east of Hawk Point, and operates a branch (facility) at Moscow Mills (1970 population 399), located approximately 6 road-miles southeast of Troy. Lincoln County (1970 population 18,041) is located in eastcentral Missouri approximately 40 miles north west of the St. Louis metropolitan area. While an increasing number of the county's residents commute daily for employment to the St. Louis area, the county is still primarily rural with agricultural pursuits providing the major source of income. The completion of Interstate Route 70 (a major east-west artery) approximately 5 miles below the county's boundary has served to accelerate the area's residential develop ment. While the 1 970 median household buy ing level for Lincoln County was lower than comparable figures for the State and St. Louis m etropolitan area, its geographic location adjoining rapidiy growing St. Charles County and its stable economic base indicate that the area has favorable economic prospects. The relevant market in which to assess the competitive impact of the proposed transaction is regarded as the area within approximately 1 5 miles of the city of Troy, which includes most of Lincoln County and adjoining portions of Warren and Si Cha-les Counties. There are 1 1 commercial h.nrM< operating a total of 13 offices in trvs rna» ket with Peoples Bank holding 11 2 ofcrcem ( ■ me area's IPC deposits and ranking a» the third largest bank by such a measure. Citizens Bank, with only 3.4 percent of the market's IPC deposits, is the smallest commercial bank in the market and, based in Troy, faces intense competition from the sub stantially larger Boatmen's Bank of Troy, an affiliate of one of Missouri's largest banking organizations. The resultant bank wili hold 14.6 percent of the market's IPC deposits and remain as the area's third largest commercial bank. The proposed tra n sa ctio n w o uld , therefore, have little effect on the structure of commercial banking in the relevant market. The proponents' head offices are located approximately 8 road-miles apart and, to some extent, must be considered to be in direct com petition. Citizens Bank, however, in its 5 years of operation, has failed to achieve any signifi cant market penetration and has not developed into a major competitive factor in the county. In addition, the market already contains a number of other, larger commercial banks, and the elimination of this existing competition is not viewed as having any significant adverse effect upon competition. Missouri statutes severely restrict de novo branch activity with the proponents limited to the operation of only one branch (facility) in towns within 1 5 miles of the head office with a population of not more than 1,550 that contain no existing banking services. Both proponents are, thus, effectively barred from any such de novo expansion activity. The proposed transac tion would have little effect on the potential for future competition between the proponents. Under the circumstances, the Board of Direc tors is of the opinion that the proposed transac tion would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The factors relating to financial and managerial resources have been satisfactorily resolved. The resultant bank, with the proposed additions to its capital structure, is anticipated to have favorable future prospects. Convenience and Needs o f the Community to be Served. As a direct result of the proposal, the Moscow Mills branch (facility) will be dis continued. This office was opened in February 1975 and has failed to develop a sufficient customer base to justify economically its con tinued operation. The closing of the Moscow - ' > r fX-MS A r ^ ’O. P ' - v ^ r ». s" Mills office is expecie~ to h<Ht# * file materia! impact on the convenience ar 3 eds of the community. The proposed merger would result in no sig nificant change in the level or pricing of com mercial banking services. The considerations of convenience and needs of the community are consistent with approval of the applications. Available inform ation indicates that no inconsistencies with the purposes of the Com munity Reinvestment Act appear to exist. Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tions is warranted. Resources (in thousands of dollars) Farmers and M erchants Bank and Trust of W atertow n Watertown, South Dakota Banking offices in operation Before After 51,740 2 4 7,232 2 to purchase the asse ts and as sum e the deposit lia b ilitie s o f First Security Bank Morristown Summary report by Attorney General, June 8, 1 978 We have reviewed this proposed transaction and conclude that it would not have a substan tial competitive impact. Basis for Corporation approval, November 17,. 1978 Farmers and Merchants Bank and Trust of Watertown, Watertown, South Dakota ("Farm ers"), an insured State nonmember bank with total resources of $51,740,000 and total IPC deposits of $41,380,000, has applied, pur suant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Cor poration's prio' co g e n t p,„r- »ibc csse^s of and assume ihe iidu In / k‘L ie in First Security M .kp^ * S. iV Dakota ( " S e c u ^ ‘t* 3 vne ‘ " m em ber ban!, w t i t ' t j . rs o , " ^ $ 7 ,2 3 2 ,0 0 0 a m ^ . f $5,828,000, and to ejr'.-b'Ji-’-. the *wo i f f »o^s if Security as brFPCii^s ** + r\ r<^<- Apn* :ftiOp has also beer T-'de S900 OuO in capital notes as d e d it o r -! i -a r f:l sir. r ture of the rest |t?ni frank u c : ck >^rctsent to retire said notes,. Competition, Farmers is the 12th largest banking organization in the State of South ~,. *4 “ ; r 93 Dakota it c u r t '- t ’’ operates two offices, both in the e *c+em portion of the State, and has approval to open an additional branch, also in this area. The two offices of Security are located in Corson County, in the northwestern portion of the State. This proposal would have its greatest impact on the market area of Security. This area, pre dominantly agricultural, is very sparsely popu lated, with only a limited network of roads. There are no other banks in the relevant market area and the nearest commercial banking office is located in Lemmon, South Dakota, approx imately 25 miles west of Security's main office. The main offices of the proponents are sepa rated by approximately 270 miles and the closest branches are approximately 220 miles apart. There is, therefore, no overlap in respec tive market areas, This proposal would not eliminate any existing competition between the two banks or have any significant effect on the structure of commercial banking in the market. In view of the see of the two proponents, con summation ‘ 4 transaction would have no materia! eff * f o ' fc~«e structure of commercial banking in the Slate. T he probability of de novo branching by Farmers into the Morristown-Mclntosh area is limited by home office protection provisions of the South Dakota banking law, as well as by the sparse population of the area. Conversely, while South Dakota statutes would permit Security to branch into Farmers' market area, it does not appear to possess the resources necessary to m o u n t any m e a n in g fu l exp ansion in to d is ta n t areas. The transaction would therefore have no significant effect on the potential for increased future competition between the proponents. Under the circumstances, the Board of Direc tors ic o* the opinion that the proposed transac tion ' o i , in any section of the country, SLbSt^ntsaf i >essen competition, tend to create a m cnop^v or in any other manner be in restraint tiade. Financial and Managerial Resources; Future Prospects. The fin a n cia l and m anagerial resources of the proponents and of the resuita r s bank £ e *ega*-ded as satisfactory. The resi i hrnk fin the proposed addition to its Cc3’i sl “ t'-c iu 'e -.'voufd appear to have favorat-!c f r ,re o -j so - cts '■ «■>•/ Needs o f the Community to he Served -'he. omnrmnities now served by Sec.. i*y enjoy a higher legal lending limit d id trt.st -s * ic to be offered by the resultant bank The /%<»n„vcerations of convenience and le o i’. »*f tr>8 ccr*’ -nity appear consistent with nx '-‘"t ''j che transaction. Available inform ation indicates that no inconsistencies with the purposes of the Com munity Reinvestment Act appear to exist r * Based on the for^u^ r*’-. ; . tors has concluded th?i <.v7 'T*val o' *he .-i; . tlon is warranted. on , j ^ "c ' , «. " . Fct'u rcr* ’ ' ( ipf s, ">'! c 1 r | r }tcr .n * ' r ^ . c \ ( h .-f vf^ c to merge with W est Coast National Bank Oceanside r> ' i *■ ! ! ;! i1 I : ; : ! 1 %3 • ?0 0 * , ! 0 j : ! ’ I i . We have reviewed this piopooed transaction and conclude that it would not have a substan tia! competitive impact. Basis for Corporation approval, November 3Gf 1 9 7 8 La Jolla Bank & Trust Comps i L i iol!a, California ("Applicant” ), an ir.?»u.ed 3 .ale i;jh rnem ber bank w ith tota! re:-c;ir*..es of $ 5 1 ,9 4 4 ,0 0 0 and total IPC aer cs>:.3 of $43,382,000, has applied, pursuant tc Cc-ction 18(c) and other provisions of the f eaerai Deposit Insurance Act, for the Corporation's prior consent to merge, under its charter and title, with West Coast National Bank, Ocean side, California ("WCNB” ), with total resources of $31,00 3,00 0 ar.d to+Gi :PC deposits of $23,640,000. The five offices o? W CNB would be established v-rsnchei c.f tr<e resultant bank. Competition. Applicant oper?i£. to neac office in La Joiia, in the nort’ie n -st J o'*t,o»' of the city of San Diego «po*cx.r. -ueir u m vo north^e^t c4" ^re v*a' v “ ' j. - r ' c. ' \ ^ i c J !3 i r»l C J 53c of c ' -j a r , tn o f i s . - , ' t la n n e ’ . > ’ ca 3 «» a n a jo r ^ ?nd 'i r 'i^ r r j ' ' t f* r : . r - ’ it '■ '" ► e r ^3 " r romrrcrcia* DnPks r 3 vVCNB w i th ■ c » v* ?i f • ^ »;i . , _ > !” , ' " ^ ;: b ^vo^csdo y_r i> \ k !is : , i ' r? r o r-r ) ~ o *r t * .ic* ■a v r i" 'i - r - ^ i ir s Summary report by /' TtO.-^cy General October 13, I 97o 0ij n j *- =jr ’j re*j a ft ‘ , "6 • .'■»rt o» T< -"I „ !i -» ^ lfc, , ~r.^ * m:* - *■ , ea La Jolla Bank & Trust Company La Jolla, California r v ~ ^ <; ~ n e ’ c e r ^ e in a n c f o m ~ ’ * r '\ c\ I > - ,» t " ^"c<. s 3 0- ” r se, ' '< ° a ~ s.l'^r? tal.y ^ c..j ' 1 -'i o! A " - ^ ', ca »'<,> ^s^o^«3>:or t id f : r , , e>-i tv.'O !r ?"« j t or**' w n. r ^ {e t h j s la rg e st and i' c iT .io -tn ! <= rompervveiv, r +e r j "3>i,ei v*'« h ■t*o e c> e. ‘ , * r l ti 3- t'- r { i = j b2 D k p 'j Cj ^ n c x r\ r i % ^ c 'c e n * o f rr v *pe ~"a;ev> <de ° l . 3 c . j r ^ r x e d »n * sv , a1,, - rs.cL Vi ’ ,mQ niP', c An s r« Pr 's 4 i ’ r> v feo j vs ^ c - '- o ^ e n' ;.v i *rjn-,sL,.on .s f v - _ ^ r c<h L ^ ^'c -^n t f. n the ^ z^t ~ nq ut,re ] h,' n*'')T^ . sc ip t - o o a h z e d w. " ~fc»' 'cores' iOualbd ' »m* ■/*' ^ u<;. ^ c 2* wL’ t ^ , > jD ^ . a sc>- j c :o n Iw.TiuSr C ip.t3r - ..f v ri j ra>,^ <q (/'-sCf~ i »s, thev are not Jen l,e g i r rert ^c,t petition. Califor•’Jc f ^to**-^vsc:c novo branching acuvit^ a j * o<-. w* t- o j the potential to exp&f:? d • > .c •* e .«ti' lie other's servA , C» ' . d * r "o - rr^c^o*». as of - t tirp ~c^ -2* h *b irer^v'-^.s ' i £P ' - JVV d n “ Ov\ .r ' r c hV' S *p-' io. ‘j» t.i t]\ s h ' w * s ; ' * * r ' r f ie — o' ! - T ^i l^ c “v m t^e BANK ABSORPTIONS A F Tsatisfactorily resolved, W ith the proposed $1 ,500,000 addition to the resultant bank's capital structure, its future prospects appear favorable. Convenience and Needs o f the Community to be Served. The proposed transaction would result in no substantial change in either the level or pricing of commercial banking services in the community now served by WCNB. While the re sultant bank will offer a higher legal iending limit and use of Applicant's modest-sized trust department at offices of WCNB, these services are available in the market at larger institutions. The considerations of convenience and needs of the community, however, are consistent with approval of the transaction. Available inform ation indicates that no inconsistencies with the purposes of the Com munity Reinvestment Act appear to exist Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tion is warranted. Banking offices in operation Resources (in thousands of dollars) Bank of Sonoma County Santa Rosa, Cali fornia Before 71,434 4 7,345* 1 After 5 to purchase the assets and as sume the deposit liabilities o f Healdsburg Branch — The First National Bank of Cloverdaie Cloverdaie ! *IPC deposits o f o ffic e to be transferred by The First National Bank o f CSoverdale. Assets not available by office. Summary report by Attorney General, July 31, 1978 The banks involved are both wholly owned subsidiaries of the same bank holding company. As such, the proposed transaction is essentially a corporate reorganization and would have no effect on competition. Basis for Corporation approval, November 30, 1 978 Bank of Sonoma County, Santa Rosa, California, an insured State nonmember bank with total resources of $71,434,000 and total / { THE i' j RHO- IPC deposit > 239,000, has applied, pur suant to Sc *10.1 s6 c) and other provisions of the Federal deposit insurance Act, for the Cor poration's prior consent to purchase the assets of and assume the liability to pay deposits made in the Healdsburg branch ($7,327,000 as of March 31, 1 978) of The First National Bank of Cloverdaie, CSoverdale, California, with total resources of $ 3 1 ,6 7 8 ,0 0 0 and total IPC deposits of $26,837,000. The Healdsburg branch would be established as a branch of Bank of Sonoma County. Competition. The proponents have been wholly owned (except for directors' qualifying shares) subsidiaries of independent Bankshares Corporation, San Rafael, California, a bank holding company, since 1 972. The proposed transaction, essentially a restructuring of cer tain aspects of each bank, would result in a branch of one subsidiary being acquired by another subsidiary. The subsequent operation of the branch at the same location would result in no change in concentration of banking resources or in the structure of commercial banking in any relevant area. In view of the foregoing, the Board of Direc tors is of the opinion that the proposed merger would not, in any section of the country, sub stantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The proponents' financial and managerial resources appear to be adequate for the purposes of this proposal. The financial and managerial resources of the resultant bank, with the contemplated addition to capital, would be satisfactory and its future prospects appear favorable. Convenience and Needs o f the Community to be Served. The services to be offered in the relevant market by the resultant bank would not differ materially from those presently offered by each proponent. Available inform ation indicates that no inconsistencies with the purposes of the Com munity Reinvestment Act appear to exist. On the basis of the foregoing information, the Board of Directors has concluded that approval of the application is warranted. FEDERAL DEPOSIT INSURANCE CORPORATION 96 Resources (in thousands of dollars) First American Bank o f North Palm Beach North Palm Beach, Florida (change title to First American Bank of Palm Beach County) Banking offices in operation Before After 80,237 5 8 95,317 3 to merge with First Am erican Bank o f Lake W orth, National Associa tion Lake Worth Summary report by Attorney General, August 28, 1978 We have reviewed this proposed transaction and conclude that it would not have a substan tial competitive impact. Basis for Corporation approval, November 30, 1978 First American Bank of North Palm Beach, North Palm Beach, Florida ("PB"), an insured State nonmember bank with total resources of $ 8 0 ,2 3 7 ,0 0 0 and total IPC deposits of $60,240,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior consent to merge with First American Bank of Lake Worth, National Association, Lake W orth, Florida ("LW ” ), with total resources of $ 9 5 ,3 1 7 ,0 0 0 and total IPC deposits of $67,146,000. The banks would merge under the charter of PB and with the title "First American Bank of Palm Beach County." Inci dent to the merger the 3 existing offices and the 1 approved, but unopened office of LW, would become branches of the resultant bank, increasing the number of its approved offices to 10. Competition. PB was organized in 1959, and while a number of the original founding shareholders continue to own stock in the bank, a group of investors headed by Roy W. Talmo purchased a substantial interest in the bank in 1966. Mr. Talmo and his interests control approximately 34 percent of the bank's stock and he serves as chairman of the board. PB's main office is located in North Palm Beach and it operates four branches, including one drive-in facility, all located within 8 miles of the main office. An application for an additional office, to be located in Tequesta, Florida (approximately 10 miles north of the main office), recently received supervisory approval. LW was organized in 1956, and control of the bank was acquired by Roy W. Talmo and his interests through stock purchases in 1965 and 1973. Mr. Talmo and his interests presently control approximately 28 percent of the stock and he serves as chairman of the board. LW's main office and one branch are located in Lake W orth with another branch located approx imately 10 miles west of the main office in W est Palm Beach. An additional branch has recently been approved for Pahokee, Florida (40 miles northwest of the main office). Florida banking law prohibits branching out side of a bank's home county. All offices of both banks are located in Palm Beach County. Their closest offices are separated by only 7 miles, and while the service areas of the propo nents overlap, PB's offices serve mainly the northeastern portion of the county and LW's offices the central portion. Actual direct com petition between the two appears to be some what limited. The approved, but unopened branch of LW will serve the western portion of the county. If the merger is approved, the serv ice area of the resultant bank would cover all major population centers in the county. The relevant area of impact for this proposal is therefore considered to be Palm Beach County. Palm Beach C ounty, located on the southeastern coast of Florida approximately 40 miles north of Miami, is a rapidly growing area. Its 1 970 population was 348,753, representing a 52.9-percent increase over the 1960 popula tion of 228,106, and its estimated population for 1977 was 485,600. The 1977 median effective household buying level for the county was $13,801, compared to $12,106 for the State. As of June 30, 1978, there were 26 banking organizations represented in the coun ty, operating 93 banking offices. The propo nents ranked 11th and 12th, controlling 3.6 percent and 3.3 percent of the IPC deposits in the county. If the merger is approved the result ant bank would become the fourth largest banking organization in the county, holding 6.9 percent of such deposits. It would appear that the structure of commercial banking in Palm Beach County would not be significantly affected by the proposed transaction.' *PB and LW have 12 stockholders in common, who control 47.5 percent and 41.3 percent of the outstanding stock of the banks respectively. Since this affiliation between the two banks has not heretofore been subject to regulatory scrutiny, the affiliation is of no persuasive value in determining, for the purposes of the Bank Merger Act, what competitive impact, if any, the proposed transaction may have. Therefore, in accordance with past agency practice, the Board of Directors has ignored the affiliation in its assessment of the proposal. BANK ABSORPTIONS APPROVED BY THE CORPORATION Six of the State's 10 largest holding com panies operate in the county. In view of the small relative market shares held by the propo nents, and the size and number of competing banking organizations, there appears to be little potential for significant competition to develop between the proponents in the near future. Based on the foregoing, the Board of Direc tors is of the opinion that the proposed merger would not, in any section of the country, sub stantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The considerations relating to finan cial and managerial resources have been satisfactorily resolved, and resultant bank is anticipated to have favorable future prospects. Convenience and Needs o f the Community to be Served. The services to be offered in the relevant market by the resultant bank would not differ materially from those presently offered by each proponent. The considerations of con venience and needs of the community to be served, however, are consistent with approval of the application. Available inform ation indicates th a t no inconsistencies with the purposes of the Com munity Reinvestment Act appear to exist. Based on the foregoing, the Board of Direc tors has concluded that approval of the applica tion is warranted. Burlington County T rust Company Moorestown, New Jersey Resources Banking offices in operation of dollars) Before 181,983 10 46,333 4 After 14 to merge with Bank of W est Jersey Delran Township (P.O. Delran) Summary report by Attorney General, September 13, 1978 The merging banks are both wholly owned subsidiaries of the same bank holding company. As such, their proposed merger is essentially a corporate reorganization and would have no effect on competition. 97 State nonmember bank with total resources of $ 1 8 1 ,9 8 3 ,0 0 0 and total IPC deposits of $147,688,000, has applied, pursuant to Sec tion 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior consent to merge with Bank of West Jersey, Delran Township (P.O. Delran), New Jersey ("Other Bank''), with total resources of $ 4 6 ,3 3 3 ,0 0 0 and total IPC deposits of $39,399,000. The banks would merge under the charter and title of Applicant and the 4 offices of Other Bank would be established as branches of the resultant bank, which would commence operations with a total of 14 offices. C o m p e titio n . E ssentially a corp ora te reorganization, the proposal would provide a means whereby Fidelity Union Bancorporation, Newark, New Jersey, the State's fourth largest banking organization owning six banking sub sidiaries w ith aggregate total deposits of $ 1 ,637 ,8 75 ,0 00 (6.4 percent of New Jersey's total deposits), may consolidate its operations in Burlington County.' Other Bank has been owned by Fidelity Union Bancorporation since 1971. Applicant was recently acquired (July 1978) by the parent with the approval of the Board of Governors of the Federal Reserve System. The proposed merger would not affect the structure of commercial banking or the con centration of banking resources within the rele vant market. The Board of Directors is of the opinion that the transaction would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The proponents' financial and managerial resources are considered adequate for the purposes of this proposal, and the future prospects of the resultant bank appear favora ble. Convenience and Needs o f the Community to be Served. The services to be offered in the relevant market by the resultant bank would not differ materially from those presently offered by each proponent. The considerations of con venience and needs of the community are con sistent with approval of the transaction. Available inform ation indicates th a t no inconsistencies with the purposes of the Com munity Reinvestment Act appear to exist. On the basis of the foregoing information, the Board of Directors has concluded that approval of the application is warranted. Basis for Corporation approval, November 30, 1978 Burlington County Trust Company, Moores- Digitizedtown, for FRASER New Jersey ("Applicant"), an insured ‘ Fidelity Union Bancorporation figures adjusted to include July 1978 acquisition of Applicant. :.v .; i-'j'.w c ':' :x n ? 0 '-'V nc ^ Banking offi.^s ;f: ^0?'ai:ur, ’ ■r- "•'■usc’K1: i Before Ah of doHars) The Bank 8f Trust i 93,021 Company of Arlington ; Heights i Arlington Heights, i Illinois i to purchase the assvts and as- i same *h&. d -^ G 'i't I!s b illie s o f \ IMorth Point State Bank Arlington Heights | , The Bank & Tru~t Company oi Arlington Heights, A r lin g to n Heicnts, Lunois an insured a.e nonmem^e: bark v». jth total resources o f 0 2 1 ,000, n a s a : f o j ' s u a n t to Section J v,# of the Federal Oecos«i insurance Act, for 1 Corporation's consent to purchase the assets of and ass. the,* liability to pay deposits made m N o rth Point State Bank, A r^ig to ^ Heights, Illinois, an insured State nonr- v n b e r bank w ith to ta l resources of V I’),207,000, Incident to the transaction, the o^’ice of North Point State Bank would become a facility of The Bank & Trust Company of Arlington Heights. As of December 16, 1 978, North Point State Bank had deposits of approximately $ 2 0 ,8 0 0 /0 0 0 and operated one office. On December 16, 1978, the Federal Deposit Insurance Corporation was appointed as Receiver of North Point State Bank. The Board of Directors finds that the failure of North Point State Bank requires it to act immediately and thus waives publica tion of notice, dispenses with the solicitation of com petitive reports from other agencies, and authorizes the transaction to be con summated immediately. £,rter ! 4 8 i j ] ] I i to merge w ith The Liberty National Bank in Ellsw orth Ellsworth S e h re : 2 7 ,6 7 3 1 (change title to Depositors Trust Company of Eastern Maine) Approved under emergency provisions. No report requested from the Attorney General. r: ; ! ? r s) o fP a p g o r F h ncor. Paine \ of'iCiS '; ................ \G c^T.C.: (ir r c u s a n d s < — --------------- -— o Depositor.' Trust Company I 29,207 j Basis for Corrc*"* on December 1 5 5978 Bj~,k , 20,771 4 I : Summary report by Attorney General, September 1 3, 1978 The merging banks are both wholly owned subsidiaries of the same bank holding company. As such, their proposed merger is essentially a corporate reorganization and would have no effect on competition. Basis for Corporation approval, December 20, 1978 Depositors Trust Company of Bangor, Bangor, Maine ("Applicant"), an insured State non member bank w ith total resources of $ 2 7 ,6 7 3 ,0 0 0 and total IPC deposits of $21,743,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior consent to merge w ith The Liberty National Bank in Ellsworth, Ellsworth, Maine (“ Other Bank” ), w ith total resources of $ 2 0 ,7 7 1 ,0 0 0 and total IPC deposits of $1 7,022,000. These banks would merge under the charter of Applicant and with the title "Depositors Trust Company of Eastern Maine." The four existing offices of Other Bank would be established as branches of the resultant bank. C o m p e titio n . Essentially a corp ora te reorganization, the proposal would provide a means by which Depositors Corporation, Augusta, Maine, a bank holding company, may consolidate its operations in eastern Maine. The proponents have been commonly controlled since 1969. The proposed merger would not affect the structure of commercial banking or the concentration of banking resources within the relevant market. In view of the foregoing, the Board of Direc tors is of the opinion that the proposed merger would not, in any section of the country, sub stantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. BANK ABSCRr m GNS APPPOVS Financial m d MGnage.'ia! Resources, future Prospects. The proponent?/ financial and managerial resources are considered adequate for the purposes of this proposal. The financial and managerial resources of the resultant bank would be satisfactory and its future prospects appear favorable. Convenience and Needs of the Community to be Served. The services to be offered in the relevant market by the resultant bank would not differ materially from those presently offered by each proponent. Available inform ation indicates tha t no inconsistencies with the purposes of the Com munity Reinvestment Act appear to exist On the basis of the foregoing information, the Board of Directors has concluded that approval of the application is warranted. Resources (in thousands cf dollars) Depositors Trust Com pany of Portland Portland, Maine (change title to De positors T rust Company of Southern Maine) Banking offices in operation Before 26,476 4 17,166 2 After 6 to merge with Springvale National Bank Springvale i Summary report by Attorney General, August 8, 1978 The merging banks are both wholly owned subsidiaries of the same bank holding company. As such, their proposed merger is essentially a corporate reorganization and would have no effect on competition. Basis for Corporation approval, December 20, 1978 Depositors Trust Company of Portland, Port land, Maine (“ Applicant” ), an insured State nonmember bank w ith total resources o f r ORATION $ 2 6 ,4 7 3 ,0 0 0 and tola! IPC deposits o f $22,195,000, has applied, pursuant to Section * 8*c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior consent to merge with Springvale National Bank, Sprsngvale, Maine ("Other Bank” ), with total resources of $17,16 6,00 0 and total IPC deposits of $14,892,000. The banks would merge under the charter of Applicant and with the title "D epo sitors T rust Company o f Southern Maine." The tw o offices of Other Bank would become branches of the resultant bank, which would commence operations with a total of six offices. Additionally, Applicant requests the prior approval of the Corporaton for the resultant bank to exercise trust powers. Competition. E ssentially a co rp o ra te reorganization, the proposal would provide a means w h ere by D e po sito rs C o rp o ra tio n , Augusta, Maine, the State's second largest banking organization owning six banking sub sidiaries w ith aggregate total deposits o f $ 3 58 ,0 00 ,0 00 (15.0 percent of Maine's total deposits), may consolidate its operations in southern Maine. Applicant and Other Bank have been owned by Depositors Corporation since 1972 and 1971, respectively, and their pro posed merger would not affect the structure of commercial banking or the concentration of banking resources within the relevant market. The Board of Directors is of the opinion that the transaction would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources; Future Prospects. The proponents' financial and managerial resources are considered adequate for purposes of this proposal, and the future prospects of the resultant bank appear favora ble. Convenience and Needs of the Community to be Served. The services to be offered in the relevant market by the resultant bank would not differ materially from those presently offered by each proponent. The considerations of con venience and needs of the community are con sistent with approval of the transaction. Available inform ation indicates tha t no inconsistencies with the purposes of the Com munity Reinvestment Act appear to exist. On the basis of the foregoing information, the Board of Directors has concluded that approval of the application is warranted. 100 FEDERAL DEPOSIT INSURANCE CORPORATION Effective January 1 1977, Fo-'da ''.-rk'nq statutes were changed to ai!o^ c o jr.f, 'a ; ^ branching. !n response to this chanc;? thrj following 15 merger applications ~vc;vng affiliates of the same holding c o » in Florida were filed during 1378. Altho-joh n e y did not involve a "phantom bank," these were essentially corporate reorganizations having no effect on competition. In each instance, the Attorney General's report stated that the pro posed transaction would have no effect on com petition. The Corporation's basis fo r approval in each case stated that ail factors required to be considered pertinent to the application were favorably resolved. Southeast Everglades Bank o f Fort Lauder dale, Fort Lauderdale, Florida (change title to Southeast Bank o f Brow ard); offices: 1 ; resources: 57,113 ($000); to merge with Southeast Bank o f Broward, Fort Lauderdale; offices: 2; resources: 25,229 ($000); and Southeast Bank o f Deerfield Beach, Deerfieid Beach; offices: 2; resources: 91,283 ($000); and Southeast Bank o f Galt Ocean Mile, Fort Lauderdale; offices: 1; resources: 3 9 ,2 5 8 ($000); and Southeast Bank o f Hollywood Hills, Hollywood; offices: 1; resources: 72,351 ($000); and Southeast Bank o f Miramar, Miramar; offices: 1; resources: 29,576 ($000). Approved: January 1 1. The Lewis State Bank, Tallahassee, Florida; offices: 3; resources: 72,784 ($000); to merge with The Gulf National Bank, Tallahassee; o ffic e s : 1; resources: 1 3 ,6 1 9 ($ 0 0 0 ). Approved: January 25. Barnett Bank o f Auburndale, Auburndaie, Florida (change title to Barnett Bank o f East Polk County); offices: 1; resources: 9,754 ($000); to merge with Barnett Bank o f East Polk County, National Association, W inter Haven; offices. 3; resources: 71,209 ($000). Approved: February 24. Landmark Bank o f Brevard, Indialantic, Florida; offices: 1; resources: 1 5,680 ($000); to merge with Landmark Bank o f Melbourne, National Association, Melbourne; offices: 2; resources: 25,059 ($000), Approved: March 14. F lagship S ta te Bank o f J a c k s o n v ille , Jacksonville, Florida (change title to Flagship Bank o f Jacksonville)', offices: 1; resources: 54,447 ($000); to merge with Flagship State Bank o f Arlington, Jacksonville; offices: 1; resources: 1 5,037 ($000); and Flagship State Bank o f N orth Jacksonville, Jacksonville; offices: 1; resources; 7,650 ($000); and Flag ship State Bank o f South Jacksonville, Jacksonville; offices. 1; resources: 4 ,9 0 9 ($000). Approved: March 14, Barnett Bank o f Naples, Naples, Florida; offices: 2 , resources P 0.38/ -$000); to merge with Barnett Sank o f Cc-iier County, Collier County (P.O. Naples/, r-.^ o s 1; resources: 22,218 ($000). *'oe »\iarch 14. Flagship Bank o f San>ora. Sanford, Florida (change title to Flagship Bank o f Seminole)', offices: 1; resources: 34,643 ($000); to merge with Flagship U.S. Bank o f Seminole, Sanford; o ffic e s : 2 ; resources: 2 0 ,1 6 3 ($ 0 0 0 ). Approved: May 5. Hernando State Bank, Brooksville, Florida; offices: 5; resources: 46,855 ($000); to merge with First American National Bank o f Hernando County, Hernando County (P.O. Spring Hill); o ffic e s : 1 ; resources: 1 9 ,5 7 8 ($ 0 0 0 ). Approved: June 26. Atlantic Bank o f Springfield, Jacksonville,. Florida (change titse to A tla n tic Bank o f Jacksonville)', offices; 3; resources: 101,920 ($000); to merge with Atlantic Bank o f West J a c k s o n v ille , J a c k s o n v ille ; o f f ice s: 2; resources: 46,454 ($000); and Atlantic Bank o f Lake Forest, Jacksonville; offices: 1 ; resources: 43,902 ($000); and Atlantic Bank o f South Jacksonville, Jacksonville; offices: 1; resources: 32,773 |$000); and Atlantic Bank o f Norm andy, Ja ckso n ville ; o ffic e s : 1 ; resources: 18 ,948 ($000); and A tla n tic U niversity Bank, Jacksonville; offices: 1 ; resources: 1 3,308 ($000). Approved: August 11. Southeast First Bank o f Largo, Largo, Florida (change title to Southeast Bank o f Pinellas); offices: 1; resources: 88,931 ($000); to merge with Southeast National Bank o f Dunedin, Dunedin; o ffic e s : 1; resources: 6 1 ,8 2 8 ($000); and Southeast Bank o f Pinellas Park, Pinellas Park; offices: 1; resources: 14,239 ($000); and Southeast National Bank o f St. Petersburg, South Pasadena; offices: 1 ; resources: 43,261 ($000). Approved: Septem ber 6. Southeast Bank o f Titusville, Titusville, Florida (change title to Southeast Bank o f Bre vard): offices: 1; resources: 34,525 ($000); to merge with Southeast First National Bank o f Satellite Beach, Satellite Beach: offices: 1; resources: 27.389 ($000); and Southeast Bank o f Melbourne, Melbourne; offices: 1; resources: 19,140 ($000); and Southeast National Bank o f Cocoa, Cocoa; offices: 1; resources: 12,288 ($000). Approved: Septem ber 6. The Exchange Bank o f Central Florida, Haines City, Florida (change title to Exchange Bank o f Polk County)] offices: 2 ; resources: 1 4 , 9 7 2 ($000); to merge with The Exchange National Bank o f Winter Haven, Winter Haven; 3 r’t ' v V o ffic e s : 3; resources: 111..281 - ' {$ 0 00). Approved: October 3 0 . Pan American Bank o f /nverrary, Lauderhill, Florida (change title to Pan American Bank o f Broward)] offices: 2; resources: 1 9 ,0 4 3 ($000); to merge with Pan American Bank o f Broward County, NationaiAssociation, Oakland Park; offices: 1; resources: 22,840 ($000). Approved: November 1 7. Flagship Bank o f Orlando, Orlando, Florida; 1 O r -’IC-JS, ' . .'i, u i ■’ 6 3 5 3 ,6 3 c 1C t wi-vr. F-agrJh'p San* of West Or/antio f * A s i > o r ’c : ; o ‘ : , O n an Jo , o ffices 1, res 8,486 ($000). Approved: November 30 , Flagship Peoples Bank o f Tallahassee, Tallahassee, Florida; offices: 2; resources: 2 4 ,7 3 6 ($0 00 ); to merge w ith Flagship American Bank o f Tallahassee, Tallahassee; offices: 1; resources: 3,235 ($000). Approved: November 30. , aer transactions * <- * ■ * ^ ' : ,. * * 4 m~ a r q . sitio rs of banks v ,f n^ci-ng ^ the following approvals n i 9 / 3 ,r eprh r? stance, the Attorney General's rep o r ; 4^xec; that the proposed transaction wouid have re effect on competition. The Corporation's basis for approval in each case stated that the pro posed transaction would not, per se, change the com petitive structure of banking, nor affect the banking services that the (operating) bank has provided in the p a s t and that all other factors required to be considered pertinent to the application w ere favorably resolved. B l u e Ridge Trust Company, Hancock, M ary land, in organization; o ffices: 0 ; resources: 1 20 ($ 0 0 0 ); to merge with and change title to T h e Peoples National Bank o f Hancock, Hancock, M arylan d ; o ffic e s : 2 ; re so u rc e s: 1 0 ,4 9 3 ($ 0 0 0 ). Approved: February 23 . C a m p Bowie Bank, Fort W orth, T e xas, in organization; offices: 0; resources: 200 ($000); to merge with and change title to R i d g l e n B a n k , Fort Worth, Texas; offices: 1; resources: 9 1 ,2 5 2 ($000). Approved: March 29. E a s t Freeway S t a t e B a n k , Houston, Texas, in organization; offices: 0; resources: 200 ($000); to merge with and change title to F i r s t S ta te B a n k a n d T ru st C om p an y o f H o u sto n , Houston, Texas; offices: 2; resources: 65,71 8 ($000). Approved: May 22. C lift o n B an k, Clifton, Texas; o ffices: 1; resources: 27,526 ($000); to merge with New C l i f t o n S t a t e B a n k , Clifton, Texas, in organiza tion; offices: 0; resources: 50 ($000). Approved: May 23. T h e B r ig h to n S ta te B a n k , B rig h to n , Michigan; offices: 5; resources: 79 ,3 8 7 ($0 00 ); to consolidate w ith B S B B a n k , Brighton, Michigan, in organization; offices: 0; resources: 120 ($000). Approved: May 24. N e w p o rt B a n k , Newport, Michigan, in organization; offices: 0; resources: 120 ($000); to consolidate and change title to T h e N e w p o rt S ta te B a n k Newport, Michigan; o ffic e s : 2; resources: 1 2 ,9 6 2 ($ 0 0 0 ). Approved: July 1 2. W a l n u t H i l l & G r e e n v i l l e B a n k , Dallas, Texas, in organization; offices: 0; resources: 200 ($000); to merge with and change title to G r e e n v i l l e A v e n u e B a n k & T r u s t , Dallas, Texas; o ffic e s : 1; resources: 6 6 ,2 2 2 ($ 0 0 0 ). Approved: July 1 2. F ir s t A la b a m a B a n k o f C u l l m a n , Cullman, Alabama, in organization; offices: 0; resources: 100 ($000); to merge with F i r s t S t a t e B a n k o f C u llm a n , A la b a m a , In c ., Cullman, Alabama; o ffic e s : 2; resources: 1 4 ,8 7 6 ($ 0 0 0 ). Approved: August 24. B a n k o f E a s t L a u d e r d a le , R ogersville, Alabama, in organization; offices: 0; resources: ( ; -* • ~ ' x :/ ""i- rr' ilc K “ '.v'r'v.c-j ~ ' ‘ '< r , j'J ^ < ■v L r ryif-9/i /, K r . 2 rer 3 u r ^ ' >■ le l u 338 $ 0 0 0 ’. Approved: August 29. Columbus Bank and Trust Company, Colum esources: 21 2,031 c ^ S e c o n d M o rtg a g e C o m p a n y , Columbus, v °or<j<a, in organization; o ffices: 0 ; resources: . ,*.42 ‘, $ 0 0 0 ). Approved: August 29. Commercial Bank & Trust Company, Griffin, Georgia; offices: 4 ; resources: 93,103 ($000); to merge w ith CBT-interim,. Inc., G riffin, Georgia, in organization; offices: 0; resources: 1 ($000). Approved: September 1 3. Lewisville State B a n k , Lewisville, Texas; offices: 1; resources: 33,1 18 ($000); to merge with A/eiv Lewisville State B a n k , Lewisville, Texas, in organization; offices: 0; resources: 200 ($000). Approved: October 1 2. N e w B a n k o f F o r t W o r t h , Fort Worth, Texas, in organization; offices: 0; resources: 200 ($000); to merge with and change title to B a n k o f F o r t W o r t h , Fort Worth, Texas; offices: 1; resources: 100,31 8 ($000). Approved: Octo ber 1 6. F . S . B , C. S t a t e B a n k , Union Township (P.O. Morristown), Ohio, in organization: offices: 0 ; resources: 313 ($000); to merge with and change title to T h e Eastern O h i o B a n k , Union Township {P.O. M orristown), Ohio; offices: 1 ; resources: 4,696 ($000). Approved: October 31. A l l i e d C h a m p i o n s B a n k , Houston, Texas, in organization; offices: 0; resources: 100 ($000); to merge w ith C h a m p i o n s B a n k , Houston, Texas; offices: 1; resources: 58,914 ($000). Approved: November 20. V B S ta te B a n k , Hartford, Michigan, in organization; offices: 0; resources: 120 ($000); to merge with and change title to V a n B u r e n S t a t e B a n k , Hartford, Michigan; offices: 2; resources: 21,851 ($000). Approved: November 28. 9 0 0 C o n g r e s s S t a t e B a n k , Austin, Texas, in organization; offices: 0; resources: 200 ($000); to merge with and change title to T e x a s S ta te B a n k , A ustin , Texas; o ffic e s : 1 ; resources: 1 0 4 ,0 3 8 ($ 0 0 0 ). A pproved: November 29. M a in B a n k o f H o u s to n , Houston, Texas; offices: 1; resources: 68,430 ($000); to merge with N e w M a i n B a n k o f H o u s t o n , Houston, Texas, in organization; offices: 0; resources: 211 ($000). Approved: November 29. bus, Georgia; offices: ($ 0 0 0 ); to merge with • The H a rris o n D e p o s it B a n k a n d T ru st C o m C ynthiana, K entucky; o ffic e s : 1 ; resources: 13,633 ($000); to merge with H a r r is o n S ta te B a n k C o m p a n y , Cynthiana, Ken tucky, in organization; offices: 0; resources: 0. Approved: November 30. p a n y , BANK ABSORPTIONS DENIED BY THE CORPORATION Banking offices in operation Resources (in thousands of dollars) Franklin Bank and Trust Company Franklin, Indiana After 5 8 69,671 i to merge w ith The Edinburg State Bank Edinburg Before 18,674 3 Summary report by Attorney General, March 20, 1978 All of the proponents' offices are located in Johnson County. Their closest offices, Appli cant's main o ffice in Franklin (population 11,477} and Bank's branch office in Franklin, are about 2 miles apart. Applicant's Franklin branch office is about 4 miles from Bank's Franklin branch. The only other bank in Franklin has three offices. In addition, Applicant's Whiteland branch office is located about 2 miles from Bank's New Whiteland branch. Bank's main office is located about 12 miles from A pplicant's nearest branch. It thus appears that the proposed acquisition would eliminate a significant amount of existing direct competition. Selection of an appropriate geographic market within which to assess the effect of the proposed merger on concentration in commer cial banking is difficult because of the proximity to Johnson County of the Indianapolis suburbs to the north and Columbus to the south. Data presently available to the department is insuffi cient to permit a precise calculation of a rele vant geographic market. We note, however, that there are 5 banking institutions, accounting for a total of 21 offices, in Johnson County. As of June 30, 1977, Applicant had approximately 26 percent of the total deposits held by com mercial banks in the county, and Bank had 7 percent. The largest bank in the county, National Bank of Greenwood, had 33 percent of such deposits; the other two banks accounted for 25 percent and 8 percent. If the proposed merger is consummated, the resulting bank would have about 33 percent of the total com mercial bank deposits in the county, and the three-firm concentration ratio in the county would increase from approximately 84 percent to 91 percent. Basis for Corporation denial, May 19, 1978 Franklin Bank and Trust Company, Franklin, Indiana ("Applicant” ), an insured State non m em ber b a n k w ith to ta l resources o f $ 6 9 ,6 7 1 ,0 0 0 and total IPC deposits of $52,390,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit insurance A ct, for the FDIC's consent to merge, under its charter and title, with The Edinburg State Bank, Edinburg, Indiana ("State Bank"), an insured State nonmember bank with total resources of $18,67 4,00 0 and total IPC deposits of $1 2,593,000. Incident to the trans action, Applicant would establish the three offices of State Bank as branches of the result ant bank, increasing to eight the number of offices operated. Consent to issue $2,000,000 in subordinated capital notes as an addition to the bank's capital structure and advance con sent to their mandatory retirement is also sought. Competition. Both proponents are headquar tered in Johnson County, which has a primarily rural economy and is located in south-central Indiana (1970 population 61,138). The city of Franklin (1970 population 11,477), which is located near the geographic center of Johnson County, serves as the county seat and as a prin cipal commercial center. Applicant operates its head office and a branch in the city of Franklin and one branch each in Whiteland (5 road-miles north), Greenwood (10 road-miles north), and Ninevah (12 road-miles south). State Bank, headquartered in Edinburg (1970 population 4,456), operates branches at Franklin (10 roadmiles northwest) and at New Whiteland (16 road-miles northwest). Due to its head office location in the extreme southeastern corner of Johnson County, State Bank is seen as compet ing in a market that includes much of Johnson County and adjoining portions of Shelby and Bartholomew Counties. If the transaction were approved, the result ant bank would be competing in an area which would include all of Johnson County and adjoining portions of Shelby and Bartholomew Counties, where 8 commercial banks operate a total of 37 offices. In share of total deposits held, Applicant and State Bank rank as the market's third and seventh largest banks, respectively. The resultant bank would hold 1 7.7 percent of these deposits and rank as the third largest of the banks. This would reflect an increase in the concentration of deposits, with the three largest banks holding 69.1 percent. Johnson County, which is the legal branch ing and merging area for both banks involved in this proposal, contains 5 commercial banks operating 22 offices. Subsequent to the trans action, the resultant bank would operate eight of these offices and hold 33.0 percent of the county's commercial bank deposits, making it 104 FEDERAL DEPOSIT INSURANCE CORPORATION the second largest institution. This would increase the level of concentration of commer cial bank deposits with the tw o largest banks holding 66.4 percent of the county's deposits and the three largest holding 91.6 percent of the deposits. The consummation of this transaction would preclude future competition between the pro ponents in a number of areas in Johnson Coun ty. As both institutions have demonstrated their willingness and ability to establish de novo branches in portions of the county removed from their headquarters location, there is no evidence to suggest that, in the absence of this proposal, additional de novo expansion activity would not be conducted by either or both institutions. The consummation of this merger would forever foreclose this potential for increased competition. The proposed transaction, if consummated, would (1) eliminate significant existing competi tion between the proponents, (2) increase sub stantially the deposit concentration in both the legal branching area and the relevant market, (3) reduce the number o f banking alternatives available to residents of the market area, and (4) eliminate the potential for increased future competition between the tw o banks. On the basis of the foregoing, and in consideration of the standards established by the Supreme Court in cases involving mergers of banks which compete in the same local market, the Board of Directors is of the opinion that the proposed merger would "substantially lessen competition" within the relevant area. Financial and Managerial Resources; Future P rospects. The fin a n c ia l and m anagerial resources of the proponents are considered satisfactory, and each has favorable future prospects as an independent institution. Convenience and Needs o f the Community to be Served. There is little evidence to suggest that, subsequent to the transaction, any signifi cant change in the type of banking services would result. No new services would be offered to the community. Inasmuch as the proposed transaction would have a substantial anticom petitive impact, this effect does not appear to be outweighed by other considerations of pub lic interest. The Board of Directors, accordingly, believes that the application should be and it hereby is, denied. Statement upon reconsideration, August 1 1 ,1 9 7 8 On May 19, 1978, Franklin Bank and Trust Company, Franklin, Indiana ("Applicant"), an insured State nonmember bank, was denied the Corporation's prior approval to merge with The Edinburg State Bank, Edinburg, Indiana ("State Bank"), an insured State nonmember bank. The proponents subsequently petitioned the Cor poration to reconsider its denial. The FDIC Board of Directors, having reconsidered its ear lier decision, affirms its denial with the follow ing statement. The Board of Directors concluded in its original decision that the proposed merger, if consummated, would (1) eliminate significant existing competition between the proponents, (2) increase substantially the deposit con centration in both the legal branching area and the relevant market, (3) reduce the number of banking alternatives available to residents of the market area, and (4) eliminate the potential for increased future competition between the two applicant banks. On the basis of the foregoing, the Board of Directors was of the opinion that the proposed merger would "su bstan tia lly lessen competition” within the relevant banking market. In seeking reconsideration of the Corpora tion's previous denial, the proponents have pre sented a number of facts, figures, and exhibits to support their contention that Marion County and the city of Indianapolis should be included in the delineation of the relevant market, thus rendering the market shares held by the propo nents to be nominal. In such an enlarged market, the existing and potential competition between the proponents would appear less substantial, and could possibly be termed as insignificant. The city of Greenwood and its environs are shown to be the principal commercial center of Johnson County, containing a major portion of the population and recent commercial develop ment. A significant portion of Johnson Coun ty's work force was shown as commuting to Marion County for employment. The propo nents indicate that Johnson County is intricate ly tied economically with neighboring Marion County and in particular to the city of Indianapolis. It is, therefore, advanced that in light of a common economic tie, intense com petition exists with larger Indianapolis-based banks, some of which have branches at or near the Johnson-Marion County boundary. Greenwood (1970 population 11,408) is located in the extreme northern portion of Johnson County, adjoining the Marion County boundary, approximately 10 road-miles north west o f Franklin (1970 population 11,477) and approximately 20 road-miles northwest of Edinburg (1970 population of 4,456). Green wood and its environs have grown at a more rapid pace than other communities in Johnson County and have experienced commercial development that could be characterized as suburban growth emanating from the city of Indianapolis. Applicant maintains only a single 105 BANK ABSORPTIONS DENIED BY THE CORPORATION branch o ffice in this northern portion of Johnson County, at Greenwood (established in July, 1974). This office holds IPC deposits of $1,054,000, or a mere 2.0 percent of Appli cant's total IPC deposit base of $52,390,000. State Bank is not represented in this portion of the county. Four of Applicant's five offices, providing 98 percent of its IPC deposit base, and all offices of State Bank are located in the central and southeastern portion of Johnson County, where the economic characteristics are more agriculturally oriented than in the northern sec tion. While a number of offices of Indianapolisbased banks are located in the proximity of the Johnson County line, these institutions are restricted by State statutes from de novo branching activity outside their head office county. Neither Applicant nor State Bank are engaged, to any significant degree, in intense "head-on" competition with offices of these larger Indianapolis-based banks and no infor mation has been presented that would indicate that either proponent derives any sizable volume of business from any portion of Marion County. In the central and southeastern portion of Johnson County, seven of the proponents’ eight offices are located in close proximity. At Whiteland and New Whiteland, the proponents' offices are located only 1 mile apart with no intervening banking offices present. State Bank's Franklin branch is located 1.5 miles from the head office of Applicant, again with no intervening banking offices present. The propo nents' head offices are located only 10 roadmiles distant w ith tw o major highway arteries providing easy access and permitting significant interaction between the tw o communities. In light of the foregoing, the FDIC adheres to its original conclusion and finds nothing in the record to cast doubt on the initial determination that the proposed transaction would result in substantially anticom petitive effects. The FDIC's Board of Directors again concludes that approval of the proposed merger of Franklin Bank and Trust Company and The Edinburg State Bank is not warranted and should be denied. S outhw est M ississippi Bank Magnolia, Mississippi (change title to First Bank of Southwest Mississippi) Resources Banking offices in operation of dollars) Before 27,239 3 33,920 4 After 7 to consolidate with Bank of McComb McComb Summary report by Attorney General, May 18, 1978 The appropriate area within which to assess the competitive effects of the proposed trans action is Pike County where all the offices of Applicant and Bank are located. The head offices of the two banks are 10 miles apart. Branches are as close as 5 miles. W ithin a distance of 13 miles covering four communities are six of the banks' seven offices; the seventh is in Osyka, 18 miles south of Magnolia. These are the only banking com munities in the county. The county's population dropped from 35,000 in 1960 to 31,800 in 1970. Supple mental information reports the 1975 popula tion as 34,000. Two forecasts have been made jointly by U.S. Departments of Agriculture and Commerce. One in 1972 projected a gain to about 40 ,000 in 2020, and one in 1976 pro jected a loss to about 31,700 in 2020. Per capita annual income in Pike County of $2,775 is more than 10 percent below the statewide figure of $3,098, itself the lowest in the nation. The county does not appear to be a good prospect for new bank entry. Bank is the second largest in deposits in the county with 24 percent and Applicant is tied for third w ith 19 percent. Deposit Guaranty National Bank, the State's largest bank, oper ates five offices in Pike County and First National Bank of Jackson, the State's second largest, operates three offices in the county. All these offices are in McComb. Deposit Guaranty is the largest in the county, with 38 percent of deposits, and First National of Jackson has 19 percent of county deposits; thus, the State's tw o largest banks have 57 percent of county deposits. First National also has the closest branches in adjoining counties, 85 percent of deposits in the county to the east and 100 per cent of deposits in the county to the west of Pike County. The application lists three Brookhaven banks and one in Tylertown as competitors, as well as two banks in Louisiana. Brookhaven is more DEPOSIT |NSoPAN~F C t! 2 7 miles no; lh o f McConrb Tyleaov\n, 2 0 i v e s e a s t is /vnere Pr s t Nation??: of Jackso n h a s 8 5 p e rc e n t of c o u n ty d e p o s its . A Brookhaven bank has a branch in Bog tie Chitto about 2 0 miles north of McComb. Th is may be an alternative for custom ers roughly m idway between M cCom b and Bogue Chitto but it is hardly a realistic alternative for the bulk of the residents of the McComb-Magnolia area. The other banks are even farther aw ay. None of these banks are in Pike County. The application itseif estimates that at least 1 5 percent of customers have accounts at both banks and that they account for at least 1 5 per cent o f IPC deposits. This means th a t customers having deposits of about $1 7-1 8 million out of total IPC deposits of $ 1 1 8 million at both banks would lose the benefit of competition between the banks which presumably led them to open these accounts. Accordingly, it appears that the proposed transaction is a merger of two direct competi tors with 43 percent of deposits in an area now served by four banks and that it would eliminate a significant amount of existing competition without any likelihood of new entry. Consum mation of the proposed merger would change market shares in term s of total deposits from 38 percent 24 percent, 19 percent, and 19 percent to 43 percent 38 percent and 1 9 per cent. Overall, the proposed transaction wouid have a significant adverse effect upon competi tion in commercial banking in Pike County. Basis for Corporation denial, May 19, 1978 Southw est Mississippi Bank, Magnolia, Mississippi {"Southwest Bank"), an insured State nonmember bank with total resources of $ 2 7 ,2 3 9 ,0 0 0 and total IPC deposits of $21,494,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance A c t for the FDIC's consent to consolidate under its charter with Bank of M cCom b, M cCom b, M ississippi, an insured State nonmember bank with total resources of $ 3 3 ,9 2 0 ,0 0 0 and total IPC deposits of $ 2 7 ,1 0 2 ,0 0 0 . Sou thw est Bank seeks to estab lish the four o ffices of Bank of M cCom b as branches of the resultant bank, with the title "First Bank of So u thw est M ississippi,” and to redesignate its main office site to the present main office site of Bank of M cCom b. The result ant bank would operate seven offices. Com petition, S o u th w e st Bank operates branches at Fernwood (3 road-miies north of Magnolia) and at Osyka (14 road-miies south of Magnolia). Bank of McComb operates three o ffices in the city of M cCom b and a branch at Summit (5 road-miies north of McComb). ON' These o ffices of the proponents are in Pike County. Pike County (1970 population 31,756) is located in the southwestern portion of the State adjoining the Louisiana boundary. The economy is chiefly predicated upon agriculture; however, some industrial firms have located along inter state Route 55 and U.S. Route 51 (running north-south) in the McComb area. While Mag nolia (1970 population 1,913) is the county seat, the city of McComb (1970 population 11,969) serves as the county's chief commer cial center. The economic picture of this area can best be described as static with moderate declines in both population and agricultural activity in evidence. The effective median household buying level of $8,441 (1976) is significantly lower than the state figure as well as substantially below the national average. The two banks are headquartered in com munities located less than 8 road-miies apart, connected by interstate Route 55 and U.S. Route 5 1 , with the Fernwood branch of South west Bank located approximately 4 road-miies from the nearest office of Bank of McComb and within 6 miles of three of its offices. The Inters tate Route 55 corridor provides residents easy access throughout the developed portion of the county. Additionally, Southwest Bank, with a branch at Osyka, located in the southern portion of the county only 6 road-miies from Kent wood, Louisiana, is regarded as competing not only in Pike County, but also in adjoining por tions of Tangipahoa Parish, Louisiana. Due to the ease of access and the proximity of five of the proponents' seven offices, the two banks are in direct, significant competition throughout Pike County and approval of the proposed con solidation would eliminate this competition. This market area contains 6 commercial banks operating a total of 1 7 offices. The pro ponents rank as the second and third largest banks in the market in total deposits held, with Bank of McComb holding a 2 1 ,6-percent market share and Southwest Bank a 1 7.3-per cent market share. The resultant bank would hold 38.9 percent of the market's total com mercial bank deposits and rank as the area's largest bank. This would significantly increase deposit concentration with the two largest banks, subsequent to the transaction, holding 73.2 percent of the market's deposits. In addi tion, the proposal would reduce from tw o to one, the number of banks headquartered in Pike County, eliminating a viable, local alternative to the Jackson-based banks in the market as a source of commercial banking services. Under Mississippi statutes, both proponents may branch de novo throughout much of Pike County and other areas within a 100-miie radius. The Bank of McComb and Southwest ” AMi; nv; 'Ue wrl- cs latvshf.n i-'bDtbfK"i< .a t> t'.-51nC-r!-£ " C-I • '<•'* '’0V 0’ a"‘C~-1 . a ‘ rCoi-'cBC Ban* ih e m an ag sn a ' < j nd tsnan c’a, re so u rc e s to engage in su ch co ntinued exp an sio n . It therefore fo llow s that there is the potential for increased future competition between the pro ponents, and that this potential competition would ba eliminated by consumm ation of this transaction. The proposed consolidation of these two banks would (1) eliminate substantial existing competition, (2) increase significantly the level of deposit concentration in the local m arket (3) reduce the number of alternative sources of com m ercial banking services in the market, eliminating one of the tw o locally based banks, and (4) eliminate the potential for increased future competition between the proponents. On the basis of the foregoing, the Board of Direc tors is of the opinion that the proposed tran sac tion would "substantially lessen com petition” within the relevant area. Financial and Managerial' Resources; Future Prospects. T h e f in a n c ia l and m a n a g e ria l resources of the applying banks are sa tisfa c tory, and each has favorable future prospects. The future prospects of the resultant bank would also be favorable. Convenience and Needs o f the Community to be Served. W hile the proponents point out that certain econom ies of scale and resultant co st savings would result in the combined institution and hold out the prospect of a possi ble increase in trust activities, it is feit that no significant change in the type, level, or pricing of present services would result from the pro posed consolidation. Moreover, approval would result in a lessening of the com m ercial banking alternatives available in this m arket The Board of Directors, accordingly, believes that the application should be, and hereby is, denied. Tt*P C O R ^ A 'f C v T hc board c f D ire cto rs concluded in its o r ig r iy ’ d e cisio n th at the proposed conso l'd aho n ;f consummated w o u ld , (1) elim i nate su b sta n tia l existin g co m p etitio n , (2) increase significantly the level of deposit c o n cen tratio n in the local m arket, (3) reduce the num ber of alte rn a tive so u rc e s of c o m m ercial banking s e rv ic e s in the m arket, eliminating one of the tw o locally based b a n ks, and (4) elim inate the potential fo r in cre ase d fu tu re co m p etitio n betw een the p ropon ents. On the b a sis of the fo reg o ing , the Board of D ire cto rs w a s of the opinion th at the proposed tra n sa c tio n w ould “ su b s ta n tia lly lessen c o m p e titio n " w ith in the relevan t banking m arket. in seekin g reco n sid era tio n of the C o rp o ra tio n 's p revio us denial, the proponents re ite r ated th at ih e b an ks operate in se p arate m ark ets (northern and so u thern se ctio n s of Pike County) and, therefore, are not in direct co m p etitio n. S u c h an argum ent had been p revio u sly co n sid ered by the Board o f Direc to rs w h ic h found th at “ Due to the ease of a c c e s s and the p ro xim ity of five of the pro pon ents' seven offices, the tw o banks are in direct, significant com petition . . . and approval o f the proposed co n so lid a tio n would eliminate this co m p etition ." As no new fa c ts or inform ation which would cast doubt upon the initial determination tha t the proposed transaction would result in sub stantially anticom petitive effects have been presented, the FDIC's Board of Directors again concludes that approval of the pro posed consolidation of the Bank of McComb w ith S outhw est Mississippi Bank is not w a r ranted and should be denied. Statem ent upon reconsideration, August 2, 1 3 7 8 On M ay 1 9 , 1 9 7 8 , S o u th w e st M ississip p i B an k, M agnolia, M ississip p i, an insured S ta te nonm em ber bank w ith total- re so u rc e s of $ 2 7 ,2 3 9 ,0 0 0 and toca. iPG d e p o sits of $ 2 1 ,4 9 4 ,0 0 0 , w a j deMea ihe C o rp o ra tio n 's prior ap pro val to consolidate w ith Ban k of McComb, McComr) ‘^ s ^ s v p p i, an insured S ta te nonm em ber bafsK vv tr iotal re so u rc e s of $ 3 3 ,9 2 0 ,0 0 0 and total IPC d e p o sits of $ 2 7 ,1 0 2 ,0 0 0 . Southwest M.ssissippi Bank and Bank of McComb subsequently p e ti tioned the C o rp o ratio n tc re co n sid e r its d e n ia l T h e F D IC 's Board of D ire c to rs, having reco n sid ere d its earlier d e cisio n , a ffirm s its denial w ith the fo llo w in g statem e n t. 107 Resources (in thousands of dollars) 7 8 0 ,3 1 5 F ir s t P e o p les B an k of N e w J e r s e y Westmont, New Jersey Banking offices in operation Before After 46 51 to acquire the assets and as sume the deposit lia b ilitie s o f T h e M ainland Bank 3 5 ,8 8 4 5 Linwood Sum m ary report by Attorney General, May 2, 1973 W e have reviewed this proposed transaction and conclude that it would not have a substan tial competitive impact. 108 1 T : 0 V 1 INSURANCE CORPORA HON Bank. Peoples Bank's nearest offices bound the m a rk e t o n th e n o r th a n d to the s o u th . It h a s one Basis for Corporation denial October 5, 1978 Pursuant to Section 18(c) and other provi sions of the Federal Deposit insurance A c t an application has been filed on behalf of First Peo ples Bank of New Jersey, Westmont, New Jersey ("Peoples Bank” ), an insured State non m em ber bank w ith to ta l resources of $ 7 80 ,3 15 ,-0 00 and total SPC deposits of $590,467,000, for the Corporation's prior consent to acquire the assets of and assume the liability to pay deposits made in The Main land Bank, Linwood, New Jersey, also an insured State nonmember bank,, with total resources o* $3 5,88 *- 0 0 C and total IPC deposits of $28,016,000 The five offices of The M ah ^n a Bank wo ’u he established as branches of Peoples B.=t k Peoples Bank was chartered in 1921 and operated as a national bank until March 21, 1978, when it withdrew from the Federal Reserve System and converted into a Statechartered insured nonmember bank, it presently operates 4 6 offices in 8 counties of southern New Jersey and has received the necessary regulatory authority approvals to establish 2 additional de novo branch offices. Peoples Bank has experienced rapid expansion in the last decade as a result of seven merger transactions since late 1 969, The instant expansion proposal to acquire The Mainland Bank was submitted in substan tially the same form to the Office of the Comp troller of the Currency r '0 C r , l in 1977 when Peoples Sank was urde- ^hat agency's jurisdic tion Tha^ proposal de ‘ied on December 1, 1977, when the OCC found that Peoples B?nx's financial and managerial resources were *r..-deq>jcKe 10 support additional expansion pMns. «i$ cnroobec. Como-? -‘-O'. Tne le v a n t market in which to assess *h ' impact of the proposed tr-jMsactuon is regarded as the trade area pres e t : * s-Wrbc " :e Mainland Bank which ir-oludes ir.e e i t^f portion of Atlantic County, New Jersev j ’ ‘mg those communities lo^at^d c n th t is^nds w hirh ?re , V r r- r-gp \}y ^ r *Jf v i'b n yt Kvers r n j ,nief i ^ l »r r .a .c J z. p- s i p a t e a ^oL, of j.C ~ f Vr _ ~ f sa r 1 '.v , « x ^ d n as\ t» f G* *i * ^ s Tr a 1 ' *> rj ef r - •> T L ~ ' (:ni< r :r v > -t-co , 3 *I o J \~rq c * hut T* r -vKPt <-na - sc**** • ~V s n t iier t: _n t r y 2 | crt he'r ) r X - \ *- ,if R j,*,r " f S c t; - 8fS0y', .. *t "i n' ■' « 'I 5 6-f jt&S , •' 5 '< ^ Peoples Bank is not represented in the rele vant gecgraomc market and is not considered to be r<r~oi ?-repetition with The Mainland o f f ic e at H a m m o n to n , in A tla n tic C o u n ty , a p p r o x im a te ly 1 3 m ile s n o r th o f T h e M a in la n d B a n k 's W e y m o u t h B ra n c h . Its c lo s e s t o ffic e s north of the market are 7 miles distant from T h e M a in la n d B a n k 's o ffic e s , but a re lo c a te d in a n o th e r c o u n ty . T o th e s o u th , P e o p le s B a n k 's n e a re s t o ffic e s a re lo c a te d in C a p e M a y C o u n ty , a p p r o x im a te ly 1 2 m ile s d is ta n t. N e w J e r s e y s ta tu te s p e r m it s ta te w id e d e n o v o branching activity, s u b je c t to c e rta in h o m e o f f ic e p r o t e c tio n p ro v is io n s . T h e a d v e n t o f le g a liz e d c a s in o g a m b lin g in n e a rb y Atlantic C ity a n d th e p o te n tia l e f fe c ts o f o ff - s h o r e o il e x p lo r a tio n a re a n tic ip a te d to h a v e a fa v o r a b le e c o n o m ic im p a c t throughout m u c h o f th e s e r v ice area o f T h e M a in la n d B a n k. T h is a re a is re g a rd e d as a p rim e p o te n tia l m a r k e t f o r d e novo e x p a n s io n n o t o n ly b y P e o p le s B a n k , b u t a ls o b y a n u m b e r o f o th e r c o m m e r c ia l b a n k in g o r g a n iz a tio n s in th e S ta te . T h e number o f potential e n tr a n ts to th e m a r k e t s e e m s to a s s u re th e c o n tin u a tio n o f a c o m p e titiv e b a n k in g c lim a te , re g a rd le s s o f th e c o n s id e r a tio n s o f th e fin a n c ia l a n d m a n a g e ria l re s o u rc e s o f th e p r o p o n e n ts in v o lv e d in th e p r o p o s e d tr a n s a c tio n . T h e p o te n tia l f o r fu tu r e c o m p e t it io n b e tw e e n th e p ro p o n e n ts , w h ic h w o u ld be fo r e c lo s e d b y th e p ro p o s e d a cqu isition ., is n o t v ie w e d as h a v in g a s ig n ific a n t a d v e rs e im p a c t. U n d e r th e s e c irc u m s ta n c e s , th e B o a rd o f D ire c to rs is o f th e o p in io n th a t th e p r o p o s e d tr a n s a c tio n w o u ld n o t in a n y s e c tio n o f th e c o u n tr y , s u b s ta n tia lly le s s e n c o m p e titio n , te n d to create a monopoly, or in any other manner be in r e s tr a in t o f tra d e . F i n a n c ia l and M a n a g e ria l Resources; F u tu re Prospects. T h e M a in la n d B a n k 's fin a n c ia l a n d m a n a g e ria l re s o u rc e s a re a t unacceptable le v e ls effectively c e a s e d to fu n c tio n as a viable competitor in the market. Peoples Bank has undergone extensive e xp ansion in recent years, which has placed a considerable a n d th e b a n k h a s s tr a in upon its fin a n c ia l re s o u rc e s . C a p ita ! fu n d s and m a n a g e r ia l h a v e fa ile d to keep p a c e w it h th e ra p id a s s e t a n d d e p o s it g r o w th . P e o p le s B a n k h a ve arisen ft or ro t resolved p r o b le m s th a t fts p !o r a c q u is itio n s and has <Hdt it is p r e s e n tly c a p a b le fa i e d 13 dem, r,? of 3»' 4i,«sir on. The Coroor^tion is of .iy ,p r on i h j j tne proposeo tr a n s a c tio n wo . '* serve o ’ute th e fin a n cia l and r rp n a r je n a l w r u Ct p ^ e ^ e 4o ,,_s o f P e o p le ^ B a n k and De a substan sal a d d itio n a l ;;u rd<*n ad* ers«h/ a ffe c tin g o r ;,5pc cts o f "'-e 'isulting bank. 'c er>'f} the fu tu re N e e d s o f th e C o m m u n ity Served The Mainland Bank's weakened fin a n c ia l a rid managerial re s o u rc e s h a v e p r e c lu d ed it fro m e ffe c tiv e ly com p e tin g in the m arket to b e • '- - . .1 u the p'eposes i)oscio'e s^ p is 1 vwuid c^'fer ~n s to r in g fui! c e rv ix corn- meiCJSi b d tiK ii^ ^ervicas 3' m e c^.ice s u- T *e Mainland 8a .k vtfhile such considerations relat ing to the convenience and needs of the com munity to be served add some weight in favor of approval of the proposed transaction, the additional services to be provided by Peoples i ^ i* J ‘ . J ' , ' :v;‘~-b0! c* com peting :u com,' ,..n r / v ou lu ! - TL-! ' ^ £ The ove,/"I ly '.-uv weigh the negative aspects inherent in the pro posal, Based on the foregoing, the Board of Direc tors concludes that approval of the application is not warranted. LEGISLATION- 1 9 7 8 In te rn a tio n a l B anking A c t, The international Banking Act of 1978, Public Law 9 5 -3 69 , provides for the Federal regulation of foreign banks in domestic financial markets Specifical ly, it provides foreign banks with the option of establishing a Federal branch, with the approval of the Office of the Comptroller of the Currency, in any State where the establishment of a branch or agency is not prohibited by State law and where the bank does not p re s e n tly have S ta te -c h a p te re d branches or agencies. This act also provides for interstate branching by foreign banks, after the foreign bank has designated a home State, if such branching is in compliance with State law and deposits in all States other than the home State are related to international transactions or foreign a c tiv itie s . A g r a n d fa th e r c la u s e exempts branches that were estab lished or applied for by July 2.7, 1978. This act provides fo r insurance coverag e o f ce rta in d e p o s its in domestic branches of foreign banks It mandates Federal deposH insurance if such branches accept deposits of $ 1 0 0 ,0 0 0 or less, unless the branch is determ ined n o t to be engaged in domestic retai! deposit activities. Other branches may obtain deposit insurance on an optional basis. The act further subjects foreign banks w ith dom estic branches to Federal Reserve reserve requirements and to provisions In the Bank Holding Company Act of 1956. Additionally, it amends the Edge Act by eliminating provisions which discriminated against foreign banks and by deleting the s ta tu to ry restriction on leveraging equity capital. The act also requires the FDiC to participate in the preparation of reports to Congress relating to the treatment of United States banks in foreign coun tries and an evaluation of the McFadden A ct restrictions on branching by national banks. Financial Institution s Regulatory and Interest Rate Control A ct, The Financial Institutions Regulatory and Interest Rate Control A ct (FIRIRCA), Public Law 9 5 -630, is a comprehen sive package of legislation affecting a number of areas relating to bank super vision. It expands the administrative enforcement powers of the financial regulatory agencies by authorizing them to issue cease-and-desist orders against directors and officers of finan cial institutions and to impose civil money penalties for violations of law or final cease-and-desist orders. It also permits such agencies to remove direc tors and officers who threaten the soundness of a financial institution. The act imposes additional restrictions on lending to bank insiders and to insiders of correspondent banks. In addition, prohibitions -are placed on cer ta in in te rlo c k in g d ire c to ra te and em ploym ent relationships between financial institutions. The act gives financial regulatory agencies the authority to disapprove changes in control of financial institu tions. Furthermore, the FDIC is given express authority over the establish m e n t and o p e ra tio n o f fo re ig n branches and the acquisition of the shares of foreign banks by State non member insured banks. This authority is similar to that exercised by the Federal Reserve with respect to foreign branches and foreign bank acquisitions of member banks. This act also establishes the right of privacy fo r custom ers o f financial institutions, authorizes Federal charters for mutual savings banks, and raises the deposit insurance limit on Individual Retirement Accounts (IRA) and Keogh accounts from $ 4 0 ,0 0 0 to $100,0 00. Moreover, this act creates a Federal F inancial In s titu tio n s E xam ination FEDERAL DEPOSIT INSURANCE CORPORATION Council. The council consists of the Chairman of the FDIC, the Comptroller of the Currency, a Governor of the Board of Governors of the Federal Reserve Board, the Chairman of the Federal Home Loan Bank Board, and the Chairman of the National Credit Union Administration Board. The pri mary function of this council is to establish uniform examination stand ards for financial institutions. Public Law 9 5 -6 3 0 also requires banks to dis close material facts through annual reports to the appropriate Federal banking agency. This act extends to December 15, 1980, and gives the Federal financial regulatory agencies the authority to establish ceilings on interest rates paid by financial institutions on time and s a v in g s d e p o s its . It e lim in a te s , however, the interest rate differential between commercial banks and thrifts institutions on savings deposits or a cco u n ts fro m w h ic h a u to m a tic transfers may be made, pursuant to a prearrange d agreem ent, to cove r checks drawn by the depositor. The act also authorizes NOW (negotiable order of withdrawal) accounts in New York. It contains other provisions a ffe ctin g credit unions and savings and loan associations, extending the ExportImport Bank for 5 years, and establish ing c e rta in c o n s u m e r - p r o te c tio n safeguards in the electronic funds transfer area. Federal B anking A ge ncy A u d it Act. The Federal Banking Agency Audit Act, Public Law 95-320, authorizes the General Accounting Office to conduct periodic performance audits of the FDIC, the Federal Reserve System, and the Office of the Comptroller of the Currency. Prior to the enactment of this act, these three financial regulatory agencies were not subject to such GAO audits, although the FDIC has been subject to GAO audits of its financial operations for the past 32 years. Stil! exempt from this audit authority are transactions conducted by or on behalf of a foreign bank or government or an intematonal financing organiza tion, m atters relating to monetary policy, and transactions by the Federal Open Market Committee. Housing and Com m unity D evelop m ent Am endm ents. Title VI of the Housing and Community Development Amendments of 1978, Public Law 95557, established a National Neighbor hood Reinvestment Corporation. Its board of directors consists of the Chairman of the FDIC, the Chairman of the Federal Home Loan Bank Board, a member of the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and the Chairman of the National Credit Union Administration Board. The Neighbor hood Reinvestment Corporation was created for the purpose of promoting reinvestment in older neighborhoods through the efforts of local financial institutions, community groups, and local government. RULES AND REGULATIONS D evelopm ent and re v ie w of FDIC rules and regulations (Part 302). On November 15, 1978, the FDIC pub lished a proposed amendment to Part 302 of its regulations which would revise and codify its rulemaking pro cedures. As revised, Part 302 would describe the general procedures by which the FDIC develops and reviews its rules and regulations. The revision was proposed to comply with Execu tive Order 1 2 044 (“ Improving Govern ment Regulations") and to make the FDIC's rulemaking procedures more responsive to banks and the public at large. Some of the objectives of the proposed FDIC procedures are (1) regulations will be clearly and under standably written; (2) their need and purpose will be clearly established; (3) the FDIC Board of Directors will exer .u-» cise e ffe c tiv e o v e rs ig h t o f th e ir development; (4) the public will be given an opportunity to participate in the rulemaking process; (5) alternative approaches will be considered; and (6) b u rd e n s on th e p u b lic w ill be minimized. inte re st Rate Regulations (Part 329). Effective November 1, 1978, the FDIC amended Part 329 of its regula tions to permit insured State nonmem b e r b a n k s to t r a n s f e r fu n d s automatically from a savings account to a checking or other account of the same individual depositor. Section 329.7 of the FDIC's regulations was amended In October 1978 to limit the maximum rate payable on savings deposits th at are subject to such automatic transfer authorizations to not more than the commercial bank rate, as required by Title XV! of the FIRIRCA. Part 329 was further amended on June 1, 1978, to provide for a money market certificate of deposit. This is a variable rate time deposit of less than $100,0 00 , the maximum rate of which is equivalent to the Treasury auction discount rate on 6-m onth Treasury bills. It has a fixed term of 26 weeks. This deposit category is designed to permit banks to compete for short term money market funds. Part 329 was also amended to prov*de for a new category of 8-year time c-posits with a 7 -3 /4 percent maxi <um interest rate fo r com m ercial i ;nks and 8 percent maximum for mutual savings banks. The amendment also makes IRA, Keogh Plan, and public unit time deposits eligible for the 8 per cent rate. This amendment took effect June 1, 1978. Another amendment to Part 329 allows mutual savings banks in the State of Washington to issue 8-year time certificates of deposits at the 8 percent rate, despite the provisions of a Washington State law that prohibit T'C'-vo 115 payment of interest on a time deposit for a period in excess of 6 years. The amendment allows payment at the 8 percent rate for 6 years subject to compulsory call by the bank if the Washington law remains unchanged at the end of the 6-year period. The pur pose of this amendment is to provide adequate time for the Washington State legislature to conform the law to the FDIC's regulations and, at the same time, avoid placing mutual savings banks in Washington at a competitive disadvantage because of the Washing ton law restrictions. Finally, on May 11, 1978, the FDIC amended Section 329.10 of its regula tions to allow insured State nonmem ber banks to pay interest on Treasury tax and loan accounts (TTLs). Accord ing to recent Treasury regulations, interest must be paid on such accounts that are in the nature of overnight bor rowings. In effect, the Treasury regula tions require payment of a higher rate of interest than the rate that normally may be paid on a bank's short-term funds. The amendment to the FDIC regulation has the effect of exempting TTLs from the interest rate restrictions in Section 329.10 by expanding the regulation's exceptions to include obligations of both the United States and its agencies. D e p o sit Insurance (P art 3 3 0 ). Effective March 15, 1978, Part 330 was amended to provide separate insurance coverage for interests in pen sion and other trusteed employee benefit funds. The trust interest of each employee will be insured up to $40,000, as if each trust interest had vested, whether the trust is actually vested or nonvested. In the past, there were no specific provisions for deposit insurance of such funds, but vested and a scerta in a b le in te re s ts w ere separately insured to the maximum of $ 4 0 ,0 0 0 based on p rin cip le s o f insurance of trust interests, and the 116 FEDERAL DEPOSIT IN S U R E CE aggregated nonvested interests in such funds were insured up to $40,000. insurance Coverage of Tim e and S avin gs D eposits o f Keogh and Individual Retirem ent A ccount Funds (Parts 330 and 331), On December 7, 1978, amendments to sections 330.1, 330.10, and 331 1 were approved to reflect the separate insurance coverage of $ 1 0 0 ,0 0 0 for time and savings deposits of Keogh and !RA funds. The separate coverage was provided for by T itlr KM of the F!RSRCA which took (/fe e " on November 10, 1978. Securities of insured S tate Nonmem ber Banks fP ir t 335), The FDIC jdcp te d amendments to Part 335 on December 20, 1978 These amend ments make the FDIC securities dis closure requirements similar to those of the Securities and Exchange Commis sion, as required by Section 1 2 fi) of the Sec*."lues Exchange Act. The amend ments a1so correct a number of errors and make minor technical revisions. E m ployee R e s p o n s ib ilitie s and Conduct (Part 336!, On D e c e m b e r 20, 1978,, the FDIC adopted amendments to Part 338 'which are designed to avoid actual conflicts of interest or the appearance of conflicts of interest. The amendments (1 ’ nohibit senior policy makers from certain credit; (2) establish psjicp’mes concerning ownership of bank-related securities; (35 eliminate disclosure requirements for certain financial interests owned by an employee's spouse or dependent; (4) greatly increase the number of employees required to file disclosure s ta te m e n ts ; (5) esta b lish fo rm a l gu,de!mes for processing these stater r r n ^ and (8) unite in one regulation th e v a rio u s d is c lo s u re s y s te m s employed by the FDIC. F air H o u s in g (P a rt 3 3 8 ). An amendment to Part 338 became effec tive on July 3, 1 978. The regulation is an outgrowth of the FDIC's duty to compel insured State nonmember M iO N banks to comply with the Fair Housing Act and the Equal Credit Opportunity Act. Part 338 incorporates an amended version of the advertising and poster requirements that were formerly con tained in the FDIC's policy statement on fa ir h o u s in g e n title d '"N o n discrim ination in Real Estate Loan A c t iv it ie s . " it a lso e s ta b lis h e s re c o rd k e e p in g re q u ire m e n ts fo r monitoring insured State nonmember banks' compliance with the Federal fair housing laws. The intent of the regula tions is to provide a basis for a more effective FDIC fair housing enforce ment program. Recordkeeping and Confirm ation Requirements for Securities Trans actions (Part 344!, On February 23, 1 978, the FDIC published for comment proposed Part 344 which would estab lish recordkeeping, written procedure, and confirmation requirements for cer tain securities transactions effected by insured State nonmember banks for tru st departm ent and other bank customers. These proposals are in response to recommendations in the SFC's Final Report on Bank Securities Activities. The report includes a recom mendation to Congress that the Federal banking agencies be required to issue and e n fo rce s p e c ific re g u la tio n s governing the conduct of banks in effecting securities transactions for the accounts of others. Based on the com ments received, on November 6, 1978, the FDIC published for comment a revised Part 344. C om m unity Reinvestm ent A c t of 1977 (Parts 345 and 303). Part 345 became effective on November 6, 1 978, and implements the Community Reinvestment Act of 1 977 (CRA). Part 345 is intended to encourage insured State nonmember banks to help meet the credit needs of their communities, including low- and moderate-income neighborhoods, in conformity with the safe and sound operation of such RULES AND REGULATIONS banks. Under the regulations, the FDIC will assess the banks' records in meet ing the credit needs of their com munities and, after assessing those records, will take them into account when evaluating applications by those banks. Applications affected are those for deposit insurance in connection with a newly chartered bank, for estab lishment of a new branch or other deposit-accepting facility, for reloca tion of a main or branch office, and for approval of a merger, consolidation, acquisition of assets, or assumption of liabilities. To implement these requirements, Part 303 was amended to specify that a bank must increase (1) the number of times that notice of the filing of applica tions for branches, for relocation, and for deposit insurance must be published and (2) the number of communities in which notice of application for branches and relocations must be published. In the case of relocation applications, notice must be published in the lobby of the office which is to be moved. These 117 amendments are designed to improve application procedures and enhance public awareness of prospective actions of those banks to which the CRA applies. These amendments took effect on November 6, 1978. Rem ote S e rv ic e F a c ility Pro cedures (Parts 303, 304, and 328). Proposed amendments to Parts 303, 304, and 328, published for comment on October 12, 1978, would revise the current FDIC procedures relating to remote service facilities. Included in the designation "rem ote service facilities" are automated teller machines, cash dispensing machines, point-of-sale ter minals, and other remote electronic facilities where deposits are received, checks are paid, or money is lent. The rules are designed to comply with court decisions classifying such remote serv ice facilities as branches, to minimize the administrative burden on banks which seek to establish such facilities and on the FDIC, and to provide the FDIC with the information needed to regulate these remote service facilities. ill 111 mum! iiiiiiiii STATISTICS OF BANKS AND DEPOSIT INSURANCE PART FIVE FT :u : N) O NUMBER OF BANKS AND BRANCHES m O m JO Table 101. Changes in number and classification of banks and branches in the United States (States and other areas) during 1978 Table 102. Changes in number of commercial banks and branches in the United States (States and other areas) during 1978, by State Table 103. Number of banking offices in the United States (States and other areas), December 31, 1978 Table 104. ^ ^ “0 o h Banks grouped by insurance status and class o f bank, and by State or area and type of office § Number and assets of all commercial and mutual savings banks in the United States (States and other areas), December 31, 1978 z > m o Banks grouped by class and asset size Table 105. Number, assets, and deposits of all commercial banks in the United States (States and other areas), December 31, 1978 Banks grouped by asset size and State JO g ^ d Nondeposit trust companies include institutions operating under trust company charters which are not regularly engaged in deposit banking but are engaged in fiduciary business other than that incidental to real estate title or investment activities. Mutual savings banks include all banks operating under State banking codes applying to mutual saving banks. Institutions excluded. Institutions in the following categories are excluded, though such institutions may perform many of the same functions as commer cial and savings banks: Banks that have suspended operations or have ceased to accept new 121 deposits and are proceeding to liquidate their assets and pay off existing deposits; Building and loan associations, savings and loan associations, credit unions, personal loan companies, and similar institutions, chartered under laws apply ing to such institutions or under general incorporation laws, regardless of whether such institutions are authorized to accept deposits from the public or from their members and regardless of whether such institutions are called "banks" (a few institutions accepting deposits under powers granted in special charters are included); Morris Plan companies, industrial banks, loan and investment companies, and similar institutions except those mentioned in the description of institu tions included; Branches of foreign banks and private banks which confine their business to foreign exchange dealings and do not receive "deposits" as that term is com monly understood; Institutions chartered under banking or trust company laws, but operating as investment or title insurance companies and not engaged in deposit banking or fiduciary activities; Fedeal Reserve Banks and other banks, such as the Federal Home Loan Banks and the Savings and Loan Bank of the State of New York, which oper ates as rediscount banks and do not accept deposits except from financial institutions. Branches: Branches include all offices of a bank other than its head office, at which deposits are received, checks paid, or money lent. Banking facilities separate from a banking house, banking facilities at government establish ments, offices, agencies, paying or receiving stations, drive-in facilities, and other facilities operated for limited purposes are defined as branches under the Federal Deposit Insurance Act, section 3(o), regardless of the fact that in cer tain States, including several that prohibit the operation of branches, such limited facilities are not considered branches within the meaning of State law. NUMBER OF BANKS AND BRANCHES Banks: Commercial banks include the following categories of banking institutions: National banks; Incorporated State banks, trust companies, and bank and trust companies regularly engaged in the business of receiving deposits, whether demand or time, except mutual savings banks; Stock savings banks, including guaranty savings banks in New Hampshire; Industrial and Morris Plan banks which operate under general banking codes, or are specifically authorized by law to accept deposits and in practice do so, or the obligations of which are regarded as deposits for deposit insurance; A regulated certificated bank in Georgia; government-operated banks in North Dakota and Puerto Rico; a savings institution, known as a "trust com pany," operating under special charter in Texas; the Savings Banks Trust Company in New York; the Savings Bank and Trust Company Northwest Washington in the State of Washington; and branches of foreign banks engaged in a general deposit business in Illinois, Massachusetts, New York, Oregon, Pennsylvania, Washington, Guam, Puerto Rico, and Virgin Islands; Private banks under State supervision, and such other private banks as are reported by reliable unofficial sources to be engaged in deposit banking. 122 Table 101. CHANGES IN NUMBER AND CLASSIFICATION OF BANKS AND BRANCHES IN THE UNITED STATES (STATES AND OTHER AREAS) DURING 1978 All banks Commercial banks and nondeposit trust companies Insured Type of change Total Insured Non insured Members F.R. System Total Mutual savings banks Noninsured Total State Banks of deposit Non deposit Total Insured Non insured com panies^ ALL BANKING O FFICES Number of offices. December 31 . 1978 ............................................................................... Number of offices, December 31, 1 9 7 7 ............................................................................... 52,604 50,695 51,699 49.825 905 870 49,598 47,914 49,182 47,523 22,731 22,294 5,721 5,610 20,730 19,619 315 292 101 99 3,006 2,781 2,517 2,302 489 479 Net change during ye a r........................................................................................................... +1,909 +1,874 +35 + 1,684 + 1,659 +437 +111 +1,111 +23 +2 +225 215 +10 Offices op ened ..................................................................................................................... 2,426 2,371 55 2,165 2,129 990 199 940 33 3 261 242 Banks .............................................................................................................................................. Branches 19 184 2,242 150 2,221 34 21 182 1,983 148 1,981 37 953 17 182 94 846 31 2 3 0 2 259 2 240 0 19 Offices closed....................................................................................................................... 517 509 8 481 477 223 85 169 3 1 36 32 4 Banks .................................................................................................................................................... Branches ................................................................................. 185 332 179 330 6 2 181 300 178 299 62 161 14 71 102 67 2 1 1 0 4 32 1 31 3 1 Changes in classification.................................... .... Among banks.................................................... Among branches................. 0 +12 0 +7 -3 3 0 -3 +340 -7 0 0 +5 -5 0 0 +4 +8 -1 2 - 4 —8 0 0 +3 +4 66 264 - 18 + 15 +87 + 253 -3 -4 0 0 0 0 +1 +4 -1 -4 15,206 15,207 14,716 14,741 490 466 14,741 14,740 14,391 14,418 4,564 4,655 1,000 1,015 8,827 8,748 261 235 89 87 465 467 325 323 140 144 -2 7 -9 1 -2 +2 -4 BANKS Number of banks, December 31, 1 9 7 8 ................................................................................. Number of banks, December 31 , 1 9 7 7 ................................................................................. Net change during ye a r........................................................................................................... Banks beginning operation................................................................................................. New banks................................................................................................................. Banks added to count6........................................... Banks ceasing operation................................................ ... Absorptions, consolidations, and mergers Closed because of financial difficulties.................... Other liquidations.................................................... Discontinued deposit operations.............. Banks deleted from count Noninsured banks becoming in su re d .......... .... -1 -2 5 +24 +1 -1 5 +79 +26 +2 184 150 34 182 148 37 17 94 31 3 2 2 0 180 4 150 0 30 4 178 4 148 0 37 0 17 0 94 0 27 4 3 0 2 0 2 0 0 0 185 179 6 181 178 62 14 102 2 1 4 1 3 182 1 0 1 1 178 1 0 0 0 4 0 0 1 1 178 1 0 1 1 177 1 0 0 0 62 0 0 0 0 14 0 0 0 0 101 1 0 0 0 1 0 0 1 0 0 0 0 0 1 4 0 0 0 0 1 0 0 0 0 3 0 0 0 0 0 +4 0 +3 0 0 +3 0 0 -4 -3 +1 -1 FEDERAL DEPOSIT INSURANCE CORPORATION National Not mem bers F.R. System Other changes in classifica tio n ...................................................................................... 0 0 0 0 0 -6 6 -1 8 + 84 0 0 0 0 0 National succeeding State bank............................................................................................... State succeeding national bank............................................................................................... Admission of insured bank to F.R. System.......................................................................... Withdrawal from F.R. System with continued insurance............................................. Insured bank becoming noninsured bank............................................................................. Mutual savings bank converted to commercial bank...................................................... 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 +3 -6 9 0 0 0 0 0 +7 + 12 -3 7 0 0 -3 +62 -1 2 +37 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 0 0 332 27 24 5 233 316 24 22 5 225 16 3 2 0 8 330 26 24 5 233 315 24 22 5 225 79 6 3 4 53 22 1 1 1 9 214 17 18 0 163 15 0 2 0 6 0 2 0 0 2 2 1 0 0 0 1 0 0 0 0 1 1 0 0 0 58 58 0 57 57 0 0 57 0 0 1 1 0 54 574 12 12 2,541 2,314 2,192 1,979 349 335 Changes not involving number in any class Change Change Change Change Change in in in in in title.................................................................................................................................. location......................................................................................................................... title and location........................................................................................................ name of location........................................................................................................ location within c ity .................................................................................................. Change in corporate powers BRANCHES Number of branches, December 31, 1 9 7 8 5 ......................................................................... Number of branches, December 31, 1 9 7 7 5 ......................................................................... 37,398 35,4882 36,983 35,0843 415 4044 34,857 33,1742 34,791 33,1053 18,167 17,6393 4,721 4,595 11,903 10,8713 Net change during ye a r.......................................................................................................... +1,910 +1,899 +11 +1,683 +1,686 +528 +126 +1,032 0 +227 +213 +14 Branches opened for b usin ess........................................................................................ 2,242 2,221 21 1,983 1,981 953 182 846 2 0 259 240 19 Facilities designated by Treasury............................................................................................ Absorbed bank converted to branch...................................................................................... Branch replacing head office relocated................................................................................ New branches.................................................................................................................................. Branches and/or facilities added to count6........................................................................ 0 162 48 1,968 64 0 159 48 1,961 53 0 3 0 7 11 0 158 48 1,732 45 0 158 48 1,730 45 0 51 14 865 23 0 29 2 144 7 0 78 32 721 15 0 0 0 2 0 0 0 0 0 0 0 4 0 236 19 0 1 0 231 8 0 3 0 5 11 Branches discontinued........................................................................................................ 332 330 2 300 299 161 71 67 1 0 32 31 1 Facilities designated by Treasury............................................................................................ Branches ............................................................................................................................................. Branches and/or facilities deleted from count.................................................................. 3 267 62 3 267 60 0 0 2 3 236 61 3 236 60 2 117 42 0 66 5 1 53 13 0 0 1 0 0 0 0 31 1 0 31 0 0 0 1 Other changes in classifica tio n...................................................................................... Branches Branches Branches Branches changing class as a result of conversion......................................................... of noninsured banks admitted to insurance................................................... transferred through absorption, consolidation, or merger.......................... of insured banks withdrawing from F.R.S........................................................ -3 0 +8 -8 0 +4 -2 6 4 +15 +253 -4 0 0 +4 -4 0 0 0 0 0 +8 0 0 0 -8 0 0 0 0 0 0 0 +4 0 0 -2 0 2 0 -6 2 0 +23 0 + 117 -1 2 5 + 179 +4 -5 5 + 125 0 -4 0 0 0 0 0 0 0 0 0 0 0 +4 0 0 0 -4 0 0 5 255 405 5 254 403 0 1 2 5 250 375 5 250 374 3 85 162 0 7 37 2 158 175 0 0 0 0 0 1 0 5 30 0 4 29 0 1 1 NUMBER OF BANKS AND BRANCHES Granted trust powers................. Changes not involving number in any class Changes in operating powers of branches........................................................................... Branches transferred through absorption, consolidation, or merger......................... Changes in title, location, or name of location.................................................................. 11ncludes noninsured nondeposit trust companies, members of the Federal Reserve System. 21977 branch totals adjusted. 3Revised. ^•Fourteen noninsured branches of insured banks previously classified noninsured are now classified as insured branches. 5|ncludes facilities established at the request of the Treasury or commanding officer of government installations, and also a few seasonal branches that were not in operation as of December 31. 6Banks or branches opened prior to 1978 but not included in count as of December 31, 1977. 123 124 Table 102. CHANGES IN NUMBER OF COMMERCIAL BANKS AND BRANCHES IN THE UNITED STATES (STATES AND OTHER AREAS) DURING 1978, BY STATE Ceasing operation in 1978 Beginning operation in 1978 Net change during 1978 In operation Banks Dec. 31, 1977 Dec. 31, 1978 State Banks Branches Branches Branches Other 178 3 236 64 204 176 3 232 62 5 2 2 0 4 2 0 0 0 0 0 43 7 21 22 137 3 1 0 0 4 2 0 0 0 4 1 0 1 0 0 2 1 2 3 12 0 1 0 0 1 19 1 0 1 6 3 0 0 0 0 18 5 4 5 160 0 7 0 0 77 0 8 0 0 75 0 0 0 0 0 1 2 0 0 0 0 0 0 0 1 +34 +2 + 13 +88 +40 1 0 0 9 2 0 0 0 0 0 33 3 13 85 42 4 0 0 4 6 2 0 0 2 5 0 0 0 0 0 3 0 0 1 8 0 1 0 0 0 +1 +1 NA +2 NA -9 +48 +38 +45 -4 1 1 0 2 0 0 0 0 0 0 22 47 40 44 4 2 1 0 2 0 0 0 0 0 0 0 0 0 0 0 6 0 2 1 7 27 0 0 0 1 812 927 1,704 76 604 -2 +4 +3 +7 0 +43 -3 +89 + 100 +31 1 4 5 7 1 0 0 0 0 0 43 13 91 98 30 4 0 2 3 2 3 0 2 0 1 0 0 0 0 0 3 12 4 0 1 1 4 0 1 0 372 21 177 119 126 +1 +3 +1 +1 0 +27 +2 +22 + 11 +9 2 3 1 1 2 0 0 0 0 0 29 2 24 11 8 4 0 0 0 2 1 0 0 0 2 0 0 0 0 0 5 0 2 0 1 1 0 0 0 0 New Other New Other +1 + 1,683 178 4 1,777 206 32,893 +1 +1,682 177 3 1,772 30 281 0 +1 1 1 553 112 484 372 3,906 310 12 25 262 235 509 106 465 353 3,778 +2 NA +3 NA +9 +44 +6 + 19 + 19 + 128 5 0 4 0 13 394 65 19 17 617 81 587 147 138 743 372 72 19 16 686 64 577 143 133 507 +22 -7 NA +1 -6 9 + 17 + 10 +4 +5 +236 Georgia............................................... H a w a ii............................................... Idaho.................................................... Illinois.................................................. Indiana............................................... 440 11 24 1,277 406 786 160 228 394 1,035 441 11 24 1,270 409 752 158 215 306 995 -1 NA NA +7 -3 Iowa.................................................... Kansas ............................................... Kentucky............................................ Louisiana............................................ Maine.................................................. 657 617 344 256 43 500 256 644 715 293 656 616 344 254 43 509 208 606 670 297 Maryland............................................ Massachusetts................................ Michigan............................................ Minnesota......................................... Mississippi......................................... 106 152 365 761 185 855 924 1,793 176 635 108 148 362 754 185 M issouri............................................ Montana............................................ Nebraska............................................ Nevada ............................................... New Hampshire............................. 720 163 459 9 79 399 23 199 130 135 719 160 458 8 79 Branches Banks Branches Banks Total United S t a t e s ............... 14,741 34,857 14,740 33,1741 50 States and O.C................... 14.711 34,575 14,710 Other areas................................. 30 282 Alabama............................................ Alaska.................................................. Arizona............................................... Arkansas ............................................ California............................................ 312 12 28 262 244 Colorado............................................ Connecticut...................................... Delaware............................................ District of Columbia.................... Florida.................................................. Absorptions States FEDERAL DEPOSIT INSURANCE CORPORATION Other Branches Banks 184 87 298 89 174 1,535 227 3,317 1,683 117 188 84 295 90 173 1,5011 216 3,313 1,654 110 Ohio.................................................... Oklahoma............................................ Oregon ............................................... Pennsylvania................................... Rhode Island................................... 482 485 63 378 17 1,941 217 525 2,427 226 487 483 55 387 17 1,827 175 495 2,360 225 South Carolina................................ South Dakota................................... Tennessee ......................................... Texas ................................................. Utah.................................................... 87 156 350 1,401 68 662 149 953 203 253 88 158 348 1,382 73 629 137 910 176 229 Vermont.............................................. Virginia ............................................... Washington...................................... West Virginia................................... Wisconsin......................................... Wyoming............................................ 30 263 103 231 633 88 147 1,302 785 56 444 3 31 280 96 227 628 82 3 0 21 6 24 2 232 24 1 0 23 6 -4 +3 +3 +1 +34 + 11 +4 +29 +7 0 3 12 1 1 0 0 0 0 0 35 12 68 39 7 4 0 9 2 0 4 0 8 2 0 0 0 1 0 0 5 1 66 11 0 0 0 7 1 0 -5 +2 +8 -9 NA + 114 +42 +30 +67 +1 0 2 10 2 0 0 0 0 0 0 121 42 29 75 1 6 0 2 11 0 5 0 2 11 0 0 0 0 0 0 10 0 1 16 0 3 0 0 3 0 -2 +2 + 19 -5 +33 + 12 +43 +27 +24 0 0 2 19 5 0 0 0 0 0 33 8 49 27 15 1 4 1 0 10 1 2 0 0 10 0 0 0 0 0 1 0 6 0 1 0 0 1 0 0 145 1,255 766 51 427 3 -1 -1 7 +7 +4 +5 +6 +2 +47 + 19 +5 + 17 NA 0 6 7 4 5 6 0 0 0 0 0 0 7 39 20 5 36 0 0 25 1 0 0 0 1 23 0 0 0 0 0 0 0 0 0 0 4 16 2 0 13 0 1 1 0 0 6 0 26 2 229 24 +2 NA -2 NA -2 NA +3 NA 1 0 0 0 1 0 0 0 1 0 4 0 0 0 2 0 0 0 2 0 0 0 0 0 1 0 3 0 2 0 0 0 -1 -1 Other areas Pacific Islands................................ Canal Zone...................................... Puerto Rico...................................... Virgin Islands................................... 11977 branch totals adjusted. NA-No activity. 125 NUMBER OF BANKS AND BRANCHES New Jersey...................................... New M exico................................... New Y o rk ......................................... North Carolina................................ North Dakota................................... 126 Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS). DECEMBER 31, 1978 BANKS GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE Mutual savings banks Commercial banks and nondeposit trust companies All banks Insured Percentage insured'! Noninsured Non deposit trust companies3 Total Insured Non insured All banks of de posit Com mercial banks of deposit Mutual savings banks State United States— all o f f ic e s .................. 52.604 51,699 905 49,598 49,182 22,731 5,721 20,730 315 101 3,006 2,517 489 98.3 99.2 83.7 Banks ............................................................. Unit Banks............................................ Banks operating branches.............. Branches^ .................................................... 15,206 14,716 490 14,741 14,391 4,564 1,000 8,827 261 89 465 325 140 96.8 97.6 69.9 8,410 6,796 8.060 6,656 350 140 8,348 6,393 2.276 2.288 500 500 5.249 3.578 242 19 81 8 62 403 35 290 27 113 95.8 97.9 96.1 99.6 56.5 72.0 37,398 36,983 415 34,857 34,791 18,167 4,721 11,903 54 12 2,541 2,192 349 98.9 99.8 86.3 50 States & D .C .— all offices............. 52.292 51,419 873 49,286 48,902 22,671 5,721 20,510 285 99 3,006 2,517 489 98.3 99.2 83.7 Banks ............................................................. Unit Banks............................................ Banks operating branches............... Branches^ .................................................... 15,176 14,703 473 14,711 14,378 4,564 1,000 8,814 246 87 465 325 140 96.9 97.7 69.9 8,393 6.783 8,056 6,647 337 136 8,331 6,380 8,021 6,357 2.276 2.288 500 500 5.245 3.569 231 15 79 8 62 403 35 290 27 113 96.0 98.0 96.3 99.6 56.5 72.0 37,116 36,716 400 34,575 34,524 18,107 4,721 11,696 39 12 2,541 2,192 349 98.9 99.9 86.3 Other Areas— all offices....................... 312 280 32 312 280 60 0 220 30 2 0 0 0 89.7 89.7 0.0 Banks ............................................................. Unit Banks............................................ Banks operating branches............... Branches^ .................................................... 30 13 17 30 13 0 0 13 15 2 0 0 0 43.3 43.3 0.0 17 13 4 9 13 4 17 13 4 9 0 0 0 0 4 9 11 4 2 O 0 0 0 0 0 0 23.5 69.2 23.5 69.2 0.0 0.0 282 267 15 282 267 60 0 207 15 0 0 0 0 94.7 94.7 0.0 Alabama— all o f f ic e s ............................ 865 865 0 865 865 448 48 369 0 0 0 0 0 100.0 100.0 0.0 Banks ............................................................. Unit banks.............................................. Banks operating branches............... Branches ....................................................... 312 312 0 312 312 99 23 190 0 0 0 0 0 100.0 100.0 0.0 147 165 147 165 0 0 147 165 147 165 32 67 14 9 101 89 0 0 0 0 0 0 0 0 0 0 100.0 100.0 100.0 100.0 0.0 0.0 553 553 0 553 553 349 25 179 0 0 0 0 0 100.0 100.0 0.0 Alaska— all o ffices................................. 129 129 0 124 124 90 0 34 0 0 5 5 0 100.0 100.0 100.0 Banks ............................................................. Unit Banks............................................ Banks operating branches............... Branches ....................................................... 14 14 0 12 12 6 0 0 2 2 0 100.0 100.0 100.0 2 12 0 0 1 11 1 11 0 6 0 0 0 0 0 0 1 1 1 1 0 0 100.0 100.0 100.0 100.0 100.0 100.0 115 115 0 112 112 84 0 6 / 5 28 0 2 12 0 3 0 100.0 100.0 100.0 Arizona— all o f fic e s ............................... 512 504 8 512 504 323 0 181 0 8 0 0 0 98.4 0.0 Banks ............................................................. Unit Banks............................................ Banks operating branches............... Branches ....................................................... 28 20 8 28 20 0 17 0 8 0 0 0 71.4 71.4 0.0 18 10 10 10 8 O 18 10 10 10 3 / 2 0 0 9 8 0 0 8 O 0 0 0 0 0 0 55.6 100.0 55.6 100.0 0.0 0.0 484 484 320 0 164 0 0 0 0 0 100.0 100.0 0.0 Total Insured Non insured Total Members F.R. System Total 8.025 6.366 Na tional State 484 484 0 0 3 98.4 FEDERAL DEPOSIT INSURANCE CORPORATION Banks of de posit2 Nonmem bers F.R. Sys tem State and type of bank or office 634 631 3 634 631 245 24 362 1 2 0 0 0 99.5 99.5 0.0 Banks ............................................................. Unit banks............................................... Banks operating branches.............. Branches ....................................................... 262 259 3 262 259 69 1 2 0 0 0 98.9 98.9 0.0 108 151 3 0 111 151 108 151 16 53 6 / 184 111 151 5 91 93 1 0 2 0 0 0 0 0 0 0 97.3 100.0 97.3 100.0 0.0 0.0 372 372 0 372 372 176 18 178 0 0 0 0 0 100.0 100.0 0.0 California— all o f f ic e s .......................... 4,150 4,126 24 4,150 4,126 2,789 344 993 0 24 0 0 0 99.4 99.4 0.0 Banks ............................................................. Unit banks............................................... Banks operating branches............... Branches^ .................................................... 244 229 15 244 229 53 7 169 0 15 0 0 0 93.9 93.9 0.0 78 166 69 160 9 6 78 166 69 160 10 43 0 7 59 110 0 0 9 6 0 0 0 0 0 88.5 96.4 88.5 96.4 0.0 0.0 3,906 3,897 9 3,906 3,897 2,736 337 824 0 9 0 0 0 99.8 99.8 0.0 Colorado— all o f fic e s ............................ 475 380 95 475 380 186 28 166 95 0 0 80.0 80.0 0.0 394 299 95 394 0 0 Banks ............................................................. Unit Banks............................................ Banks operating branches............... Branches ....................................................... 299 137 22 140 95 0 0 0 0 75.9 0.0 327 67 75.9 232 67 95 0 327 67 232 67 97 40 18 4 117 23 95 0 0 0 0 0 0 0 0 0 70.9 100.0 70.9 100.0 0.0 0.0 81 81 0 81 81 49 6 26 0 0 0 0 0 100.0 100.0 0.0 Connecticut— all offices....................... 1,021 1,021 0 652 652 220 88 344 0 0 369 369 0 100.0 100.0 100.0 Banks ............................................................. Unit banks.............................................. Banks operating branches............... Branches ....................................................... 130 130 0 65 65 19 2 44 0 0 65 17 113 0 0 12 53 12 53 3 16 0 2 9 35 0 0 0 0 5 60 65 5 100.0 17 113 891 891 0 587 587 201 86 300 0 0 Delaware— all offices............................ 192 190 2 166 164 10 0 154 0 Banks ............................................................. Unit banks............................................... Banks operating branches............... Branches ....................................................... 21 19 2 19 17 5 0 6 13 2 0 8 11 6 11 1 4 0 0 0 0 2 0 0 2 171 171 0 147 147 5 0 12 5 7 142 0 8 13 0 0 24 D .C.— all offices...................................... 155 155 0 155 155 152 0 3 0 0 0 100.0 100.0 0.0 17 17 0 17 17 0 0 Banks ............................................................. Unit Banks............................................ Banks operating branches............... Branches....................................................... 16 0 1 0 0 0 0 0 100.0 100.0 0.0 4 13 4 13 0 0 4 13 4 13 4 12 0 0 0 1 0 0 0 0 0 0 0 0 0 0 138 100.0 100.0 100.0 100.0 0.0 0.0 138 0 138 138 136 0 2 0 0 0 0 0 100.0 100.0 0.0 Florida— all offices................................. 1,360 1,356 4 1,360 1,356 579 44 733 1 3 0 99.7 99.7 0.0 617 613 4 617 613 236 27 350 3 0 0 99.4 99.4 292 325 288 325 4 0 0.0 292 325 288 325 101 135 17 10 170 180 1 / 0 0 0 Banks ............................................................. Unit banks............................................... Banks operating branches............... Branches ....................................................... 0 3 0 0 0 0 0 0 0 98.6 100.0 98.6 100.0 0.0 0.0 743 743 0 743 743 343 17 383 0 0 0 0 0 100.0 100.0 0.0 Georgia— all o ffic e s............................... 1,226 1,226 0 1,226 1,226 415 85 726 0 0 0 100.0 100.0 0.0 440 440 0 440 440 64 9 367 0 0 0 0 0 0 Banks ............................................................. Unit banks............................................... Bank operating branches............... Branches ....................................................... 0 100.0 100.0 0.0 199 241 199 241 0 0 199 241 199 241 13 51 2 7 184 183 0 0 0 0 0 0 0 0 0 0 786 100.0 100.0 100.0 100.0 0.0 0.0 786 0 786 786 351 76 359 0 0 0 0 0 100.0 100.0 0.0 Hawaii— all offices................................. 171 165 6 171 165 13 0 152 0 6 0 0 96.5 96.5 0.0 Banks ............................................................. Unit banks.............................................. Bank operating branches............... Branches ....................................................... 11 8 0 3 11 8 2 0 6 0 3 0 0 0 72.7 1 10 72.7 0.0 0 8 1 2 1 10 0 8 0 2 0 0 0 6 0 0 1 2 0 0 0 0 0 0 157 0.0 80.0 0.0 80.0 0.0 0.0 3 157 11 0 146 0 3 0 0 0 98.1 98.1 0.0 160 0 100.0 100.0 60 0 0 100.0 100.0 100.0 100.0 100.0 100.0 304 304 0 100.0 100.0 100.0 2 26 26 0 99.0 98.8 100.0 2 2 2 0 90.5 89.5 100.0 2 0 0 75.0 100.0 75.0 100.0 0.0 100.0 24 0 100.0 100.0 100.0 0 127 160 0 NUMBER OF BANKS AND BRANCHES Arkansas— all o ffices............................ 128 Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS), D E C E M B E R 3 1 , 1 9 7 8 - C O N T IN U E D BANKS GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK. AND BY STATE OR AREA AND TYPE OF OFFICE State and type of bank or office Total Insured Non insured Total Total Noninsured Members F.R. System Na tional State Nonmem bers F.R. Sys tem Banks of deposit2 Non deposit trust com panies3 Total Insured Non insured All banks of de posit Com mercial banks of deposit Mutual savings banks 252 252 184 10 58 14 0 0 0.0 4 0 0 100.0 6 0 0 100.0 24 0 0 0 24 0 100.0 100.0 0.0 6 18 6 18 0 6 2 2 4 10 0 0 0 0 0 0 0 0 0 0 100.0 100.0 100.0 100.0 0.0 0.0 44 0 0 0 0 0 100.0 100.0 0.0 938 29 7 0 0 0 97.8 97.8 0.0 755 29 0 0 97.2 97.2 0.0 29 O 7 7 0 594 161 0 0 0 0 96.2 100.0 96.2 100.0 0.0 0.0 100.0 Idaho— all o ffices.................................... 252 252 Banks ............................................................. Unit Banks............................................ Banks operating branches.............. Branches ....................................................... 24 24 0 0 6 18 6 18 0 0 228 228 0 228 228 178 6 Illinois— all offices................................. 1,671 1,635 36 1,671 1,635 605 92 Banks ............................................................. Unit Banks............................................ Banks operating branches.............. Branches ....................................................... 1,277 1,241 1,241 419 67 272 147 50 17 36 1,277 916 325 36 0 952 325 O 0 0 394 394 0 394 394 186 25 183 0 0 0 0 0 100.0 Indiana— all o f f ic e s ............................... 1,447 1,445 2 1,441 1,439 627 90 722 1 1 6 6 0 99.9 99.9 100.0 Banks ............................................................. Unit Banks............................................ Banks operating branches.............. Branches ....................................................... 410 408 2 406 404 121 41 242 1 1 4 4 0 99.5 99.5 100.0 135 275 133 275 2 0 133 273 131 273 28 93 20 21 83 159 1 O 1 0 98.5 100.0 98.5 100.0 100.0 100.0 1,037 0 1,035 1,035 506 49 480 0 0 2 2 2 0 0 1,037 2 2 2 0 100.0 100.0 100.0 Iowa— all o f fic e s .................................... 1,157 1,150 7 1,157 1,150 234 92 824 6 1 0 0 0 99.4 99.4 0.0 Banks ............................................................. Unit Banks............................................ Banks operating branches.............. Branches ....................................................... 657 650 650 99 44 507 6 1 0 0 0 98.9 98.9 0.0 379 271 7 7 657 386 271 386 271 379 271 48 51 23 21 308 199 6 0 1 0 0 0 0 0 0 0 98.2 100.0 98.2 100.0 0.0 0.0 500 500 0 500 500 135 48 317 0 0 0 0 0 100.0 100.0 Kansas— all o f f ic e s ............................... 873 872 1 873 872 291 24 557 1 0 0 0 0 99.9 99.9 0.0 Banks ............................................................. Unit Banks............................................... Banks operating branches.............. Branches ....................................................... 617 616 1 617 616 151 19 446 0 0 0 0 99.8 99.8 0.0 484 133 483 133 1 0 484 133 483 133 100 51 15 4 368 78 1 / O 0 0 0 0 0 0 0 0 99.8 100.0 99.8 100.0 0.0 0.0 256 256 0 256 256 140 5 111 0 0 0 0 0 100.0 100.0 0.0 952 325 0 916 325 0.0 0.0 Kentucky— all o ffices............................ 988 987 1 988 987 335 103 549 1 0 0 0 0 99.9 99.9 0.G Banks ............................................................. Unit Banks............................................ Banks operating branches............... Branches ....................................................... 344 343 1 344 343 79 10 254 1 0 0 0 0 99.7 99.7 0.0 135 209 134 209 17 62 3 7 114 140 1 0 0 0 0 0 0 0 0 0 99.3 100.0 99.3 100.0 0.0 0.0 644 256 93 295 0 0 0 0 0 100.0 100.0 0.0 135 209 134 209 1 0 644 644 0 644 FEDERAL DEPOSIT INSURANCE CORPORATION Insured Percentage insuredl Mutual savings banks Commercial banks and nondeposit trust companies All banks 971 971 0 971 971 344 52 575 0 0 0 0 0 100.0 100.0 0.0 Banks ............................................................. Unit Banks............................................ Banks operating branches............... Branches ....................................................... 256 256 0 256 256 54 7 195 0 0 0 0 0 100.0 100.0 0.0 72 184 72 184 0 0 72 184 72 184 12 42 1 6 59 136 0 0 0 0 0 0 0 0 0 0 100.0 100.0 100.0 100.0 0.0 0.0 715 715 0 715 715 290 45 380 0 0 0 0 0 100.0 100.0 0.0 Maine— all o f f ic e s ................................. 451 451 0 336 336 134 40 162 0 0 115 115 0 100.0 100.0 100.0 Banks ............................................................. Unit Banks.............................................. Banks operating branches.............. Branches ....................................................... 73 73 0 43 43 17 3 23 0 0 30 30 0 100.0 100.0 100.0 9 64 9 64 0 0 4 39 4 39 1 16 0 3 3 20 0 0 0 0 5 25 5 25 0 0 100.0 100.0 100.0 100.0 100.0 100.0 378 378 0 293 293 117 37 139 0 0 85 85 0 100.0 100.0 100.0 Maryland— all offices............................ 1.019 1,019 0 961 961 393 109 459 0 0 58 58 0 100.0 100.0 100.0 Banks ............................................................. Unit Banks.............................................. Banks operating branches.............. Branches ....................................................... 109 109 0 106 106 34 6 66 0 0 3 3 0 1000 100.0 100.0 25 84 25 84 0 0 25 81 25 81 5 29 0 6 20 46 0 0 0 0 0 3 0 3 0 0 100.0 100.0 100.0 100.0 0.0 100.0 910 910 0 855 855 359 103 393 0 0 55 55 0 100.0 100.0 100.0 M assachusetts— all o f f ic e s ............... 1,700 1,204 496 1,076 1,069 521 72 476 6 1 624 135 489 70.8 99.3 21.6 Banks ............................................................. Unit Banks.............................................. Banks operating branches............... Branches^ .................................................... 315 169 146 152 146 73 7 66 5 1 163 23 140 53.7 96.1 14.1 52 263 19 150 33 113 22 130 16 130 8 65 0 7 8 58 5 0 1 0 30 133 3 20 27 113 36.5 57.0 72.7 100.0 10.0 15.0 1,385 1,035 350 924 923 448 65 410 1 0 461 112 349 74.7 99.9 24.3 Michigan— all o ffices............................ 2,158 2,155 3 2,158 2,155 993 569 593 3 0 0 0 0 99.9 0.0 Banks ............................................................. Unit Banks.............................................. Banks operating branches............... Branches ....................................................... 365 364 1 365 364 125 83 156 1 0 0 0 0 99.7 99.7 0.0 72 293 72 292 72 293 72 292 13 112 17 66 42 114 0 1 0 0 0 0 0 0 0 0 100.0 99.7 100.0 99.7 0.0 0.0 1,793 1,791 0 1 2 1,793 1,791 868 486 437 2 0 0 0 0 99.9 99.9 0.0 Minnesota— all o ffices......................... 938 935 3 937 934 285 40 609 2 1 1 1 0 99.7 99.7 100.0 Banks ............................................................. Unit Banks.............................................. Banks operating branches............... Branches ....................................................... 762 759 3 761 758 205 32 521 2 1 1 1 0 99.6 99.6 100.0 623 139 620 139 3 0 622 139 619 139 151 54 25 7 443 78 2 0 1 0 1 0 1 0 0 0 99.5 100.0 99.5 100.0 100.0 0.0 176 176 0 176 176 80 8 88 0 0 0 0 0 100.0 100.0 0.0 M ississip p i— all o ffice s ....................... 820 819 1 820 819 292 18 509 0 1 0 0 0 99.9 99.9 0.0 Banks ............................................................. Unit Banks.............................................. Banks operating branches............... Branches ....................................................... 185 184 184 37 5 142 0 1 0 0 0 99.5 99.5 0.0 41 143 1 / 185 42 143 0 42 143 41 143 4 33 2 3 35 107 0 0 1 0 0 0 0 0 0 0 97.6 100.0 97.6 100.0 0.0 0.0 635 635 0 635 635 255 13 367 0 0 0 0 0 100.0 100.0 0.0 M issouri— all o ffic e s ............................ 1,119 1,113 6 1,119 1,113 169 89 855 0 6 0 0 0 99.5 99.5 0.0 Banks ............................................................. Unit Banks.............................................. Banks operating branches.............. Branches ....................................................... 720 714 6 720 714 101 52 561 0 6 0 0 0 99.2 99.2 0.0 406 314 400 314 6 0 406 314 400 314 55 46 26 26 319 242 0 0 6 0 0 0 0 0 0 0 98.5 100.0 98.5 100.0 0.0 0.0 399 399 0 399 399 68 37 294 0 0 0 0 0 100.0 100.0 0.0 Montana— all o f fic e s ............................ 186 183 3 186 183 67 49 67 0 3 0 0 0 98.4 98.4 0.0 Banks ............................................................ Unit Banks.............................................. Banks operating branches.............. Branches ....................................................... 163 160 3 163 160 56 45 59 0 3 0 0 0 98.2 98.2 0.0 141 22 138 22 3 0 141 22 138 22 56 10 41 4 51 8 0 0 3 0 0 0 0 0 0 0 97.9 100.0 97.9 100.0 0.0 0.0 23 23 0 23 23 11 4 8 0 0 0 0 0 100.0 100.0 0.0 129 99.9 NUMBER OF BANKS AND BRANCHES Louisiana— all o ffices............................ 130 Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS), D E C E M B E R 3 1 , 1 9 7 8 - C O N T IN U E D BANKS GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE Non insured Members F.R. System Total Total Na tional State Non mem bers F.R. Sys tem Banks of de posit2 Non deposit trust com panies3 Total Insured Non insured All banks of de posit Com mercial banks of deposit Mutual savings banks Nebraska— all o ffices............................ 658 651 7 658 651 259 10 382 0 7 0 0 0 98.9 98.9 0.0 Banks ............................................................. Unit Banks........................................... Banks operating branches.............. Branches ....................................................... 459 452 452 117 0 0 0 98.5 98.5 0.0 0 374 78 80 37 287 40 0 0 7 7 0 381 78 O 0 0 0 0 0 0 98.2 100.0 98.2 100.0 0.0 0.0 199 199 0 199 199 142 8 7 / 2 327 374 78 7 7 459 381 78 55 0 0 0 0 Nevada— all o f f ic e s .............................. 139 139 0 139 139 89 24 26 0 0 0 0 0 100.0 100.0 0.0 9 9 0 9 9 4 / 1 4 / 0 0 0 0 0 100.0 100.0 0.0 3 0 0 0 0 0 0 0 0 0 0 100.0 100.0 100.0 100.0 0.0 0.0 22 0 0 0 0 0 100.0 100.0 0.0 0 100.0 100.0 0.0 Banks ............................................................. Unit Banks........................................... Banks operating branches.............. Branches ....................................................... 2 7 2 7 0 0 2 7 2 7 130 130 0 130 130 85 New Hampshire— all o ffices............... 282 281 1 214 213 137 5 71 0 1 68 68 0 99.6 99.5 100.0 Banks ............................................................. Unit Banks........................................... Banks operating branches.............. Branches ....................................................... 105 104 78 36 0 1 26 26 0 99.0 98.7 100.0 0 26 53 25 53 39 7 3 33 71 1 / 79 34 71 16 20 0 0 1 0 8 18 8 18 0 0 97.1 100.0 96.2 100.0 100.0 100.0 177 177 0 135 135 98 2 1 2 35 0 0 42 42 0 100.0 100.0 100.0 New Je rse y— all o ffices....................... 1,901 1,901 0 1,719 1,719 1,069 24 436 0 0 182 182 0 100.0 100.0 100.0 Banks ............................................................. Unit Banks........................................... Banks operating branches.............. Branches ....................................................... 204 204 0 184 184 96 15 73 0 0 20 20 0 100.0 100.0 100.0 30 174 30 174 0 0 27 157 27 157 12 84 0 15 15 58 0 0 0 0 3 17 3 17 0 0 100.0 100.0 100.0 100.0 100.0 100.0 1,697 1,697 0 1,535 1,535 973 199 363 0 0 0 100.0 100.0 100.0 New Mexico— all o f fic e s .................... 314 313 1 314 313 159 19 135 0 Banks ............................................................. Unit Banks........................................... Banks operating branches............... Branches ....................................................... 87 86 86 40 6 40 0 22 65 1 / 87 21 65 0 22 65 21 65 10 30 2 4 9 31 0 0 227 227 0 227 227 119 13 95 0 0 New York— all o f fic e s ......................... 4,727 4,643 84 3,615 3,531 1,606 1,650 275 79 5 Banks ............................................................. Unit Banks........................................... Banks operating branches.............. Branches^ .................................................... 413 340 73 298 225 124 47 54 68 5 133 280 69 271 64 9 130 168 66 159 33 91 11 36 22 32 59 9 5 O 4,303 11 1,482 1,603 11 0 4,314 3,317 3,306 3 32 O 1 23 221 162 162 1 0 0 0 99.7 99.7 0.0 1 0 0 0 98.9 98.9 0.0 1 0 0 0 0 0 0 0 95.5 100.0 95.5 100.0 0.0 0.0 0 0 0 100.0 100.0 0.0 1,112 1,112 0 98.2 97.7 100.0 115 115 0 82.3 75.5 100.0 3 112 3 112 0 0 51.9 96.8 50.8 94.6 100.0 100.0 997 997 0 99.7 99.7 100.0 FEDERAL DEPOSIT INSURANCE CORPORATION Insured Total Percentage insuredl Noninsured Insured State and type of bank or office Mutual savings banks Commercial banks and nondeposit trust companies All banks 1,772 1,761 11 1,772 1,761 832 7 922 11 0 0 Banks ............................................................. Unit Banks............................................ Banks operating branches............... Branches ....................................................... 89 88 1 89 88 27 2 59 1 0 0 17 72 17 71 0 1 17 72 17 71 3 24 1 1 13 46 0 1 0 0 0 0 1,683 1,673 10 1,683 1,673 805 5 863 10 0 0 North Dakota— all offices..................... 291 288 3 291 288 87 6 195 1 2 0 Banks ............................................................. Unit Banks............................................ Banks operating branches............... Branches ....................................................... 174 171 3 174 171 43 3 125 1 2 0 100 74 97 74 3 0 100 74 18 25 1 2 78 47 1 0 2 0 0 0 117 117 0 117 117 44 3 70 0 Ohio— all o f f ic e s .................................... 2.423 2,422 1 2,423 2,422 1,375 572 475 1 0 0 Banks ............................................................. Unit Banks............................................ Banks operating branches.............. Branches ....................................................... 482 481 1 482 481 217 110 154 1 0 0 131 351 130 351 1 0 131 351 130 351 38 179 36 74 56 98 1 0 0 0 0 0 1,941 1,941 0 1,941 1,941 1,158 462 321 0 0 0 Oklahoma— all o f f ic e s .......................... 702 695 7 702 695 359 18 318 5 2 0 Banks ............................................................. Unit Banks............................................ Banks operating branches............... Branches ....................................................... 485 478 478 191 16 271 5 2 0 361 117 7 7 485 368 117 0 368 117 361 117 122 69 14 2 225 46 5 0 0 0 217 217 0 217 217 168 2 47 0 2 0 0 0 Oregon— all offices................................. 604 598 6 588 582 335 1 246 6 0 16 16 0 99.0 99.0 100.0 Banks ............................................................. Unit Banks............................................ Banks operating branches.............. Branches^ .................................................... 65 62 3 63 60 6 1 53 3 0 2 2 0 95.4 95.2 100.0 27 38 25 37 2 1 27 36 25 35 1 5 1 0 23 30 2 1 0 0 0 2 2 0 0 92.6 97.4 92.6 97.2 0.0 100.0 539 536 3 525 522 329 0 193 3 0 14 14 0 99.4 99.4 100.0 Pennsylvania— all o ffices.................... 2,999 2,989 10 2,805 2,795 1,644 194 957 8 2 194 194 0 99.7 99.6 100.0 Banks ............................................................. Unit Banks............................................ Banks operating branches.............. Branches^ .................................................... 386 378 370 226 12 132 6 2 8 8 0 97.9 97.9 100.0 106 272 8 7 378 113 273 113 265 106 264 75 151 3 9 28 104 5 1 2 0 0 8 8 0 0 93.8 99.6 93.8 99.6 0.0 100.0 2.613 2,611 0 186 186 0 99.9 99.9 100.0 Rhode Island— all o ffices.................... 317 304 Banks ............................................................. Unit Banks............................................ Banks operating branches.............. Branches ....................................................... 23 20 4 19 3 17 294 284 South Carolina— all offices.................. 749 Banks ............................................................. Unit Banks........................................... Banks operating branches............... Branches ....................................................... 87 20 67 South Dakota— all offices.................... Banks ............................................................. Unit Banks........................................... Banks operating branches.............. Branches ....................................................... 1 2 97 74 0 0 0 0 99.4 0.0 0 98.9 98.9 0.0 0 0 100.0 98.6 100.0 98.6 0.0 0.0 0 99.4 0 99.4 99.4 0.0 0 99.0 99.0 0.0 0 98.3 98.3 0.0 0 0 97.0 100.0 97.0 100.0 0.0 0.0 0 0.0 100.0 100.0 0 100.0 100.0 0.0 0 99.8 99.8 0.0 0 0 99.2 100.0 99.2 100.0 0.0 0.0 0 100.0 100.0 0.0 0 99.0 99.0 0.0 0 98.6 98.6 0.0 0 0 98.1 100.0 98.1 100.0 0.0 0.0 0 100.0 100.0 100.0 2,427 2,425 1,418 182 825 2 13 243 230 120 0 110 12 1 74 74 0 95.9 94.7 100.0 3 17 14 5 0 9 2 1 6 6 0 87.0 82.4 100.0 3 6 0 2 1 0 0 6 0 0 75.0 89.5 75.0 84.6 0.0 100.0 0 96.6 95.6 100.0 1 2 4 13 3 1 0 5 0 0 10 0 68 10 226 216 115 0 101 749 0 749 749 349 17 383 0 0 0 87 0 87 87 18 7 62 0 0 0 20 67 0 0 20 67 20 67 1 17 2 5 17 45 0 0 0 0 0 0 662 662 0 662 662 331 10 321 0 0 0 305 304 1 305 304 123 44 137 0 1 0 156 155 1 156 155 32 28 95 0 1 0 105 51 104 51 1 0 105 51 104 51 19 13 19 9 66 29 0 0 1 0 0 0 149 149 0 149 149 91 16 42 0 0 0 0 6 68 0 0 0 0 0 0 0 0 0 0 0 100.0 100.0 0.0 0 100.0 100.0 0.0 0 0 100.0 100.0 100.0 100.0 0.0 0.0 0 100.0 100.0 0.0 0 99.7 99.7 0.0 0 99.4 99.4 0.0 0 0 99.0 100.0 99.0 100.0 0.0 0.0 0 100.0 100.0 0.0 NUMBER OF BANKS AND BRANCHES 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 North Carolina— all o ffices.................. 132 Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS), D E C E M B E R 3 1 , 1 9 7 8 - C O N T IN U E D BANKS GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK. AND BY STATE OR AREA AND TYPE OF OFFICE Noninsured Insured Total Insured Non insured Total Total Members F.R. System Na tional State Nonmem bers F.R. Sys tem Banks of deposit2 Non deposit trust com panies3 Total Insured Non insured All banks of de posit Com mercial banks of deposit Mutual savings banks Tennessee— all o ffice s ......................... 1.303 1,301 2 1,303 1,301 483 59 759 1 1 0 0 0 99.8 99.8 0.0 Banks ............................................................. Unit Banks........................................... Banks operating branches.............. Branches ....................................................... 350 348 2 350 348 266 1 1 0 0 0 99.4 99.4 0.0 96 252 2 0 98 252 96 252 72 7 10 98 252 88 178 1 O 1 O 0 0 0 0 0 0 98.0 100.0 98.0 100.0 0.0 0.0 953 953 0 953 953 411 49 493 0 0 0 0 0 100.0 100.0 0.0 65 1 9 Texas— all o f f ic e s ................................. 1,604 1,598 6 1,406 1,598 645 57 896 6 0 0 0 0 99.6 99.6 0.0 Banks ............................................................. Unit Banks........................................... Banks operating branches............... Branches ....................................................... 1,401 1,395 6 1,401 1,395 609 40 746 6 0 0 0 0 99.6 99.6 0.0 1,226 175 1,220 175 6 0 1,226 175 1.220 175 580 29 26 14 614 132 6 O 0 0 0 0 0 0 0 0 99.5 100.0 99.5 100.0 0.0 0.0 203 203 0 203 203 36 17 150 0 0 0 0 0 100.0 100.0 0.0 Utah— all o f fic e s .................................... 321 319 2 321 319 126 100 93 0 2 0 0 0 99.4 99.4 0.0 Banks ............................................................. Unit Banks........................................... Banks operating branches.............. Branches ....................................................... 68 66 2 68 66 10 0 2 0 0 0 97.1 97.1 0.0 43 25 41 25 2 0 43 25 6 4 13 7 43 41 25 28 15 0 0 2 O 0 0 0 0 0 0 95.3 100.0 95.3 100.0 0.0 0.0 253 253 0 253 253 116 87 50 0 0 0 0 0 100.0 100.0 0.0 Vermont— all offices.............................. 202 201 1 177 176 59 1 116 0 1 25 25 0 99.5 99.4 100.0 Banks ............................................................. Unit Banks........................................... Banks operating branches.............. Branches....................................................... 36 35 29 7 13 1 15 0 1 4 9 1 O 2 13 0 0 1 0 6 / 100.0 8 27 1 / 30 9 27 166 166 0 147 147 46 0 101 0 Virginia— all o ffice s .............................. 1.565 1,564 1 1,565 1,564 777 475 312 Banks ............................................................. Unit Banks........................................... Banks operating branches.............. Branches ....................................................... 263 262 263 262 88 79 95 74 189 73 189 1 / 0 74 189 73 189 14 74 29 50 30 65 0 0 1,302 1,302 0 1,302 1,302 689 396 217 0 0 0 Washington— all o ffices....................... 1.016 1,006 10 888 878 629 40 209 9 1 128 Banks ............................................................. Unit Banks........................................... Banks operating branches.............. Branches^ .................................................... 112 102 10 103 93 20 5 68 9 1 9 9 0 41 71 31 71 10 0 41 62 31 62 2 18 3 2 26 42 9 O 1 0 O 9 O 9 0 0 904 904 0 785 785 609 35 0 0 0 100.0 0 8 22 22 6 141 6 0 97.2 96.7 5 1 5 0 0 88.9 100.0 87.5 100.0 100.0 100.0 0 19 19 0 100.0 100.0 100.0 0 1 0 0 0 99.9 99.9 0.0 0 1 0 0 0 99.6 99.6 0.0 1 0 0 0 0 0 0 0 98.6 100.0 98.6 100.0 0.0 0.0 0 0 100.0 100.0 0.0 128 0 99.0 98.9 100.0 91.1 90.3 100.0 75.6 100.0 75.6 100.0 0.0 100.0 100.0 100.0 119 119 FEDERAL DEPOSIT INSURANCE CORPORATION State and type of bank or office Percentage insured1 Mutual savings banks Commercial banks and nondeposit trust companies All banks West Virginia— all o f f ic e s .................. 287 287 0 287 287 134 35 Banks ............................................................. Unit Banks............................................ Banks operating branches.............. Branches ....................................................... 118 0 0 0 0 0 100.0 231 100.0 231 0 231 231 106 29 96 0 0 175 56 175 56 0 0 0 100.0 100.0 0.0 0 0 175 56 175 56 78 28 23 6 74 22 0 0 0 0 0 0 0 0 56 0 0 100.0 100.0 100.0 100.0 0.0 0.0 56 0 56 56 28 6 0 0 0 0 0 100.0 100.0 0.0 W isconsin— all o ffices.......................... 1,080 1,075 5 1,077 1,072 284 47 741 0 5 3 3 0 99.5 99.5 100.0 Banks ............................................................. Unit Banks............................................ Banks operating branches............... Branches ....................................................... 636 631 5 633 628 129 27 411 225 472 0 5 3 406 225 5 0 3 0 99.2 99.2 100.0 408 225 403 225 82 47 18 9 303 169 5 0 3 0 3 0 444 0 0 0 0 98.8 100.0 98.8 100.0 100.0 0.0 444 0 444 444 155 20 269 0 0 0 0 0 100.0 100.0 22 0.0 0.0 91 91 0 91 91 47 16 28 0 0 0 0 0 100.0 100.0 0.0 Banks ............................................................. Unit Banks........................................... Banks operating branches............... Branches ....................................................... 88 88 0 88 88 46 16 26 0 0 0 0 0 100.0 100.0 85 3 85 3 0 0 85 3 85 3 0.0 45 1 16 0 24 2 0 0 0 0 0 0 0 0 0 0 100.0 100.0 100.0 100.0 0.0 0.0 3 3 0 3 3 1 0 2 0 0 0 0 0 100.0 100.0 0.0 27 25 2 27 25 9 0 16 2 0 0 0 0 92.6 92.6 0.0 3 1 2 3 1 0 0 1 2 0 0 0 0 33.3 33.3 0.0 2 1 0 1 2 0 2 1 0 1 0 0 0 0 0 1 2 0 0 0 0 0 0 0 0 0 0.0 100.0 0.0 100.0 0.0 0.0 0.0 OTHER AREAS Pacific Islands— all offices^............... Banks ............................................................. Unit Banks............................................ Banks operating branches.............. Branches^ .................................................... 24 24 0 24 24 9 0 15 0 0 0 0 0 100.0 100.0 Canal Zone— all o f fic e s ....................... 2 2 0 2 2 2 0 0 0 0 0 0 0 100.0 100.0 0.0 Banks ............................................................. Unit Banks........................................... Banks operating branches............... Branches? .................................................... 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 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 2 2 0 2 2 2 0 0 0 0 0 0 0 100.0 100.0 0.0 Puerto R ico— all o ffices....................... 253 229 24 253 229 25 0 204 22 2 0 0 0 90.5 90.5 0.0 Banks ............................................................. Unit Banks........................................... Banks operating branches............... Branches8 .................................................... 21 12 9 21 12 0 0 12 7 2 0 0 0 57.1 57.1 0.0 9 12 4 8 5 4 9 12 4 8 0 0 0 0 4 8 3 4 2 0 0 0 0 0 0 0 44.4 66.7 44.4 66.7 0.0 0.0 232 217 15 232 217 25 0 192 15 0 0 0 0 93.5 93.5 0.0 Virgin Islands— all o f f ic e s .................. 30 24 6 30 24 24 0 0 6 0 0 0 0 80.0 80.0 Banks ............................................................. Unit Banks........................................... Banks operating branches.............. Branches9 .................................................... 6 0 6 6 0 0 0 0 6 0 0 0 0 0.0 0.0 0.0 6 0 0 0 6 0 6 0 0 0 0 0 0 0 0 0 6 0 0 0 0 0 0 0 0 0 0.0 0.0 0.0 0.0 0.0 0.0 24 24 0 24 24 24 0 0 0 0 0 0 0 100.0 100.0 0.0 133 0.0 NUMBER OF BANKS AND BRANCHES Wyoming— all o ffices............................ 134 D E C E M B E R 3 1 , 1 9 7 8 - C O N T IN U E D BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE 1Nondeposit trust companies are excluded in computing these percentages. 2|ncludes 9 noninsured branches of insured banks: 7 in the Pacific Islands and 2 in the Canal Zone. ^Includes noninsured nondeposit trust companies that are members of the Federal Reserve System. ^California: 1 branch operated by a State nonmember bank in Puerto Rico. Massachusetts: 1 branch operated by a noninsured bank in New York. New York: 18 branches operated by 3 State nonmember banks in Puerto Rico. Oregon: 1 branch operated by a national bank in California. Pennsylvania: 2 branches operated by a noninsured bank in New York and a national bank in New Jersey. Washington: 3 branches operated by a national bank in California. 5United States possessions: American Samoa, Guam, Midway Islands and Northern Mariana Islands. Trust Territories: Caroline Islands and Marshall Islands. ^Pacific Islands: 23 branches — American Samoa: 1 insured branch operated by a State nonmember bank in Hawaii. Guam: 11 insured branches operated by 2 State nonmember banks in Hawaii, a State nonmember bank and a national bank in California and 2 national banks in New York. Caroline Islands: 4 noninsured branches operated by a national bank in California and a State nonmember bank in Hawaii. Northern Mariana Islands: 4 insured branches operated by a national bank and a State nonmember bank in California and a State nonmember bank in Hawaii. Marshall Islands. 3 noninsured branches operated by a national bank in California and a State nonmember bank in Hawaii. ?Canal Zone: 2 noninsured branches operated by 2 national banks in New York. Branch deposits are not insurable in the Canal Zone. Branches are listed with the parent bank. 8puerto Rico: 25 insured branches operated by 2 national banks in New York, and a national bank in California. 9\/irgin Islands: 24 insured branches operated by 2 national banks in New York, a national bank in California, and a national bank in Pennsylvania. FEDERAL DEPOSIT INSURANCE CORPORATION Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS), Table 104. NUMBER AND ASSETS OF ALL COMMERCIAL AND MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1978 BANKS GROUPED BY CLASS AND ASSET SIZE (In thousands of dollars) Insured commercial banks Asset size Members F.R. System Total National Nonmembers F.R. System State Non insured banks and trust companies Mutual savings banks Non insured Insured Number of banks Less than $5.0 million................................................. $5.0 to 9.9 m illion....................................................... $10.0 to 24.9 m illion................................................. $25.0 to 49.9 m illion................................................. $50.0 to 99.9 m illion.................................................. $100.0 to 299.9 million............................................... $300.0 to 499.9 million.............................................. $500.0 to 999.9 million.............................................. $1.0 to 4.9 billion.......................................................... $5.0 billion or more....................................................... 1.158 2,388 4.882 3.284 1,749 1,116 222 190 193 25 973 2,352 4,836 3,214 1,615 938 166 135 139 23 122 379 1,366 1,208 711 495 92 83 95 13 47 127 312 228 127 88 20 17 24 10 804 1,846 3,158 1,778 777 355 54 35 20 - 185 29 25 14 10 34 18 18 16 - 3 12 29 77 98 31 35 38 2 2 9 27 47 46 7 2 Total b an ks................................................... 15,205 14,391 4 ,5 6 4 1,000 8,827 349 325 140 _ - (In thousands of dollars) NUMBER OF BANKS AND BRANCHES All banks Amount of assets Less than $5.0 million.................................................. $5.0 to 9.9 million....................................................... $10.0 to 24.9 m illion................................................. $25.0 to 49.9 m illion................................................. $50.0 to 99.9 m illion................................................. $100.0 to 299.9 million............................................... $300.0 to 499.9 million............................................... $500.0 to 999.9 million............................................... $1.0 to 4.9 billion.......................................................... $5.0 billion or more....................................................... 3,733,754 17,861,356 81,083,384 115,209,026 121,937,721 179,803,835 86,145.080 128,435,555 373,342,428 375,495,215 Total assets................................................... 1 ,4 8 3 ,0 4 7 ,3 5 4 3,442,950 17,612,878 80,317,611 112,461,978 112,083,102 149,148,495 64,143,777 89,317,803 276,041,619 364,437,560 1 ,269.007,7731 462,208 2,880,462 23,349,459 43,230,564 49,753,340 78,505,925 35,742,352 56,259,595 197,917,134 234,183,992 160,306 960,260 5,220,457 7,944,305 9,066,934 14,895,206 8,305,360 11,802,251 46,978,917 130,253,568 2,820,436 13,772,156 51,747,695 61,287,109 53,262,828 55,747,364 20,096,065 21,255,957 31,145,568 0 290,804 210,134 378,660 518,446 672,109 5,973,107 7,065,630 12,539,548 28,174,939 0 0 24,623 210,113 1,220,925 5,632,306 17,265,671 12,358,436 25,457,195 69,125,870 11,057,655 0 13,721 177,000 1,007,677 3,550,204 7,416.562 2,577,237 1,121,009 0 0 7 2 2,285,031 2 3 5,5 8 7 ,5 6 4 3 1 1,13 5 ,1 7 8 5 5 ,8 2 3 .3 7 7 14 2 ,3 5 2 ,7 9 4 15,863,410 1Domestic assets only; does not include assets of branches of U.S. banks in "Other areas." 135 136 Table 105. NUMBER, ASSETS, AND DEPOSITS OF ALL COMMERCIAL BANKS'! IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1978 BANKS GROUPED BY ASSET SIZE AND STATE (Amounts in thousands of dollars) Banks with assets of — State Less than $5 million $5.0 million to $9.9 million $10.0 million to $24.9 million $25.0 million to $49.9 million $50.0 million to $99.9 million $100.0 million to $299.9 million $300.0 million to $499.9 million $500.0 million to $999.9 million $1.0 billion to $4.9 billion $5.0 billion or more 14,740 1,563,884,529 1,260,413,601 1.158 3,733,754 3,105,410 2,381 17,823,012 15,873,003 4,861 80,667,627 72,346,990 3,228 112,980,424 100,737,029 1,625 1 12,755,261 99,697,023 971 154,819,475 131,515,551 181 70,109,541 56,838,684 154 101,919,447 78,749,306 154 304,872,796 230,599,357 27 604,203,192 470,951,248 312 14,737,005 12,657,531 10 35,260 28,589 43 333,364 292,434 151 2,559,046 2,292,779 68 2,431,653 2,175,900 19 1,220,080 1,083,690 13 2,037,087 1,784,845 1 388,356 337,022 5 2,950,393 2,447,110 2 2,781,766 2,215,162 0 0 0 12 1,921.515 1,569,933 0 0 0 0 0 0 0 0 0 2 77,058 68,049 5 317,579 270,151 3 492,572 389,185 1 425,859 336,397 1 608,447 506,151 0 0 0 0 0 0 27 10,184,089 8.870,955 9 15,334 5,161 3 20,612 16,918 6 93,142 84,199 1 35,705 33,713 2 168,133 154,943 1 243,374 221,910 1 367,256 327,238 1 502,033 452,112 3 8,738,500 7,574.761 0 0 -0 262 9.267,552 8,022,468 16 47,009 39,735 37 282,538 251,313 101 1,619,318 1,458,021 63 2,157,452 1,924,575 28 1,794,312 1,590,054 13 1,844,189 1,601,804 3 977,383 745,898 1 545,351 411,068 0 0 0 0 0 0 244 191,914,025 158,779.375 17 33,855 8,185 25 184,675 147,951 53 968,278 865,697 58 2,063,645 1,831,974 35 2,496,993 2,231,063 33 5,788,913 5,203,582 2 684,002 568,901 10 5,417,505 4,783,724 5 10,820,270 9,060,605 6 163,455,889 134,077,693 394 13.374,211 1 1,263,754 110 284,501 203,909 59 443,046 366,526 121 1,934,391 1,720,929 56 2,024,367 1,808,823 28 2,029,833 1,789,699 16 2,246,096 1,929,657 0 0 0 2 1,324,365 1,077,245 2 3,087,612 2,366,966 0 0 0 65 11,992,218 10,061,666 1 4,697 4,270 3 21,159 17,798 20 328,831 289,600 18 602,119 523,105 9 636,020 566,491 6 861,772 730,044 1 471,054 408.642 3 1,918,156 1,645,417 4 7.148,410 5,876,299 0 0 0 19 3,410,922 2,611,134 2 593 0 3 19,907 17,675 6 92,617 83,564 2 59,703 51,615 2 158,485 143,330 0 0 0 1 430,028 388,436 2 1,196,642 1,003,077 1 1,452,947 923,437 0 0 0 17 7,086,581 5,838.979 0 0 0 2 16,831 12,366 2 26,311 24,713 3 135,645 116,127 3 210,041 184,917 2 230,258 201,923 1 467,864 423,789 2 1,505,449 1,191,562 2 4,494,182 3,683,582 0 0 0 All banks Total United States and other areas? States Alabama Banks............................................................. A ssets.......................................................... Deposits....................................................... Alaska Banks............................................................. A ssets.......................................................... Deposits....................................................... Arizona Banks............................................................. A ssets.......................................................... Deposits....................................................... Arkansas Banks............................................................. Assets.......................................................... Deposits....................................................... California Banks............................................................. Assets.......................................................... Deposits....................................................... Colorado Banks............................................................. A ssets.......................................................... Deposits....................................................... Connecticut Banks............................................................. A ssets.......................................................... Deposits....................................................... Dejaware Banks............................................................. A ssets.......................................................... Deposits....................................................... District of Columbia Banks................................................. A ssets....................................................... Deposits................................ FEDERAL DEPOSIT INSURANCE CORPORATION Banks............................................................. Total assets^ Total deposits3 Florida Banks.......................... .............. A ssets.......................................................... Deposits....................................................... 1 0 0 617 37.448,956 32,213,996 14 41,901 26,144 48 366,123 315,856 210 3,613,083 3,207,674 152 5,518,544 4.943.724 96 6,777.964 6,039,172 81 12,141.651 10,632,469 4,295,415 3,551,714 440 20,792,659 16,590,099 38 121,748 107.735 82 615,057 548,388 179 2,997,827 2,688,649 98 3,374,862 2,990.964 20 1,488,179 1,297,451 17 2.497,786 2.183,131 2 767,945 628,409 4 8,929,255 6,145,372 0 0 0 11 4,211,864 3.704.915 1 415 0 1 9,726 0 1 11,404 0 1 35,209 32,653 4 773.030 702,752 1 352,465 325,073 2 3,029,615 2,644,437 0 0 0 24 4,296,491 3,602,347 0 0 0 5 42,915 38,417 7 122,442 108,777 3 103,641 94,986 4 274,358 227,622 1 165.203 147,044 1 351,131 307,859 516,770 435,791 2 2,720,031 2,241,851 0 0 0 1,277 121,380,290 94.253,364 88 329,052 268,032 195 1,478,692 1,320,189 423 6,896,554 6,143,738 268 9,697,377 8,556,167 166 11,615,249 10,128,739 117 18,394.929 14,344,279 11 4,507,316 3,492,192 4 2,666,848 1,702,169 2 6,869,059 5,335,982 3 58,925,214 42,961,877 406 28,220,927 23,701,770 8 20,612 14,588 37 283,426 253,135 121 2,085,095 1,894,361 113 3,923,407 3,529,460 76 5,396,050 4,828,147 38 6,229,265 5,405,230 7 2,540,739 2,121,254 3 1,774,475 1,453,535 3 5,967,858 4,202,060 0 0 0 657 17,882,365 15,627,714 33 118,363 105,872 173 1,340,038 1,213,731 244 3,990,087 3,615,812 146 4,968,673 4,481,834 41 2,893,601 2,586,949 15 2,155,393 1,825,115 4 1.572,450 1,220,471 1 843,760 577,930 0 0 0 0 0 0 617 13,568,762 11.706,613 123 420,176 376,177 154 1,120,666 1,009,312 197 3,159,100 2.844.679 93 3,202,375 2,849.207 36 2,339,220 2,069,256 11 1,916,118 1,450,809 2 715,338 578,793 1 695,769 528,380 0 0 0 0 0 0 344 16,046,662 13,689,911 20 68,539 60.345 45 347,149 308,312 129 2,158,637 1,950,175 92 3,190,763 2,881,389 34 2,305,715 2,051,083 18 2,450,315 2,209,391 2 794,440 604,933 2 1,415,168 1,136,385 2 3,315,936 2,487,898 0 0 256 19,156,370 16,290,978 7 23,674 20,011 16 121,557 109,553 75 1,308,829 1,1 76,285 84 3,013,635 2,715,899 40 2,661,798 2,368,774 21 3,798,079 3,295,153 5 1,886,750 1,593,806 7 4,734,975 3,755,632 1 1,607,073 1,255,865 0 0 0 43 3,008,695 2,591,264 0 0 0 3 22,798 20,178 12 224,013 199,574 15 518,531 459,828 427,108 367,676 5 1,059,579 913,215 2 756,666 630,793 0 0 0 0 0 0 0 0 0 106 14,041,272 11,576,093 1 2,338 1,722 16 122.718 107,946 26 436,677 390,950 28 981,097 872,721 1,436,391 1,290,829 8 1,1 77,655 1,049,923 152 28,062,311 21,832,912 4 14,026 7,788 8 62,995 55,670 42 697,514 578,906 33 1,192,606 1,007,254 30 2,149,197 1,851,865 3,160,839 2,658,280 11 4 2,541,653 1,971,316 2,152,622 1,525,927 0 Georgia Banks.......................................................... A ssets.......................................................... Deposits....................................................... Hawaii Banks.......................................................... Assets.................... ............ Deposits................. ............ Idaho Banks................. A ssets.............. Deposits........... 1 Banks................. A ssets.............. Deposits. . . . Indiana Banks................. A ssets.............. Deposits........... Iowa Banks................. Assets.............. Deposits............ Kansas Banks................. A ssets.............. Deposits............ Kentucky Banks................. A ssets.............. Deposits. . 0 NUMBER OF BANKS AND BRANCHES Illinois Louisiana Banks.............. A ssets............ Deposits. . Maine Banks.............. A ssets............ Deposits . 6 Maryland Banks.............. A ssets............ Deposits. 20 0 0 0 2 1,094,048 870,853 5 8,790,348 6,991,149 0 0 0 7 2,844,213 2,380,360 3 1,681,130 1,394,232 3 5,862,931 4,261,903 1 10,396,860 7,636,654 Massachusetts 21 137 Banks....................... A ssets.................... Deposits. 138 Table 105. NUMBER, ASSETS, AND DEPOSITS OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1978-CONTINUED BANKS GROUPED BY ASSET SIZE AND STATE (Amounts in thousands of dollars) Banks with assets of — State All banks Less than $5 million $5.0 million to $9.9 million $10.0 million to $24.9 million $25.0 million to $49.9 million $50.0 million to $99.9 million $100.0 million to $299.9 million $300.0 million to $499.9 million $500.0 million to $999.9 million $1.0 billion to $4.9 billion $5.0 billion or more h/lichigan 365 48,165,374 40,583,398 6 15,871 10,626 23 185,582 163,784 100 1,629,576 1,470,635 105 3,656,172 3,290,238 61 4,236,363 3,818,840 51 8,524,058 7,630,634 6 2,446,149 2,179,786 4 2,400,057 2,123,012 8 16,025,143 12,883,103 1 9,046,403 7,012,740 761 25,007,859 20,524,811 75 277,365 245,955 215 1,571,840 1,437,855 283 4,551.647 4,107,826 119 4,155,567 3,727,029 47 3,191,123 2,855,146 16 2,345,884 2,028,401 3 966,089 740,562 0 0 0 3 7,948,344 5,382,037 0 0 0 185 9,444,942 8,314,275 5 18,021 11,836 25 186,806 165,864 71 1,183,557 1,074,544 51 1,788,725 1,610,462 19 1,344,802 1,196,867 10 1,798,178 1,611,613 2 706,753 637,627 0 0 0 2 2,418,100 2,005,462 0 0 0 720 29,247,195 23,494,859 76 255,289 223,319 150 1,107,927 996,024 244 4,034,657 3,622,968 150 5,153,265 4,557,731 64 4,319,091 3,777,227 29 4,598,435 3,761,788 1 353,835 309,979 2 1,792,492 1,269,488 4 7,632,204 4,976.335 0 0 0 163 4,458,263 3,955,345 11 29,853 24,866 34 257,170 231,321 65 1,008,496 914,993 33 1,088,881 985,983 13 949,804 837,096 7 1,124,059 961,086 0 0 0 0 0 0 0 0 0 0 0 0 459 9,562,484 8,192,532 104 319,611 281,250 134 964,970 868,540 145 2,347,642 2,115,502 45 1,454,812 1,300,842 22 1,437,498 1,275,101 4 445,986 397,473 3 1,246,929 987,017 2 1.345,036 966,807 0 0 0 0 0 0 9 3,286,806 2,876,931 1 1,770 1,241 0 0 0 1 17,189 14,131 0 0 0 1 95,277 88,156 3 723,063 635,733 1 437,731 371,479 1 704,339 626,977 1 1,307,437 1,139,214 0 0 0 79 2,711,275 2,394,142 5 13,267 10,658 10 74,010 65,888 28 489,354 438,619 23 806,376 716,485 8 543,769 464,849 5 784,499 697,643 0 0 0 0 0 0 0 0 0 0 0 0 184 32,197,257 27,492,713 1 751 8 1 9,871 8,013 32 567,569 499,984 53 1,978,575 1,770,997 33 2,374,932 2,099,194 33 5,250,694 4.641,744 11 4,317,441 3,733,870 15 10,698,820 9,204,066 5 6,998,604 5,534,837 0 0 0 87 4,905,028 4,295,090 3 8,152 6,714 6 46,153 40,043 24 424,784 380,972 31 1,122,952 1,012,728 15 1,086,807 980,259 6 954,992 823,385 0 0 0 2 1,261,188 1,050,989 0 0 0 0 0 0 298 404,994,263 304,462,470 18 47,532 37,515 10 72,863 60,883 52 890,560 775,425 48 1,656,583 1,420,428 38 2,701,219 2,243,314 48 8,200,374 6,130,322 21 8,225,748 5,072,382 28 19,638,555 11,198,388 26 53,129,265 35,231,927 9 310,431,564 242,291,886 Minnesota Banks.................................................... A ssets.......................................................... Deposits....................................................... M ississippi Banks............................................................. Assets.......................................................... Deposits....................................................... Missouri Banks............................................................. Assets.......................................................... Deposits....................................................... Montana Banks............................................................. Assets.......................................................... Deposits................................................. Nebraska Banks............................................................. Assets.......................................................... Deposits.............................................. Nevada Banks............................................................. Assets.......................................................... Deposits....................................................... New Hampshire Banks............................................................. A ssets.......................................................... Deposits....................................................... New Jersey Banks....................................................... A ssets.......................................................... Deposits....................................................... New Mexico Banks............................................................. A ssets.......................................................... Deposits....................................................... New York Banks............................................................. A ssets....................................................... Deposits.................. FEDERAL DEPOSIT INSURANCE CORPORATION Banks............................................................. A ssets.......................................................... Deposits....................................................... North Carolina Banks............................................................. Assets.......................................................... Deposits....................................................... 89 20,645,978 17,039,049 4 16,647 12,762 6 44,370 36,826 22 345,619 304,336 24 820,784 726,506 14 981,582 854,803 7 1,296,139 1,132,033 6 2,218,631 1,949,428 1 544,852 488,938 5 14,377,354 11,533,417 0 0 0 174 4,435,241 3,858,809 13 44,747 38,296 38 295,812 268,343 85 1,361,115 1,228,516 21 759,376 679,408 9 587,672 520,384 7 810,468 721,541 0 0 0 1 576,051 402,321 0 0 0 0 0 0 482 49,285,117 40,156,082 7 26,829 24,173 49 358,775 319,486 146 2,505,308 2,235,646 123 4,380,875 3,798,990 82 5,833,082 5,079,522 48 7,467,320 6,405,648 10 3,989,606 3,383,670 7 5,154,278 4,125,027 10 19,569,044 14,783,920 0 0 0 485 17,036,048 14,604,562 52 188,352 163,403 126 923,160 821,615 152 2,492,412 2,242,379 91 3,121,069 2,785,444 47 3,230,388 2,860,181 11 1,695,280 1,455,012 2 768,891 648,059 2 1,918,821 1,565,795 2 2,697,675 2,062,674 0 0 0 63 11,589,899 9,502,515 8 18,659 9,795 10 75.804 64,912 17 280,467 250,050 11 369,005 334,194 8 561,850 507,637 4 656,715 571,092 2 719,328 629,058 1 614,296 529,240 2 8,293,775 6,606,537 0 0 0 378 78,536,921 61,903,490 5 10,605 4,334 31 239,574 203,293 96 1,650,524 1,481,166 91 3,345,592 2,989,162 71 4,934,762 4,411,080 48 7,892,285 6,962,142 13 5,055,882 4,422,805 10 6,484,211 5,599,728 10 23,217,875 18,422,800 3 25,705,611 17,406,980 17 5,672,218 4,529,062 2 1,751 1,210 1 9,760 8,975 4 58,620 49,860 3 103,714 91,147 1 53,052 48,134 3 451,846 386,251 3 4,993,475 3,943,485 0 0 0 87 6,281,452 5,282,889 10 40,771 35,172 9 69,714 59,098 35 547,249 483,098 15 508,185 440,035 11 708,930 627,717 2 426,479 381,416 1 369,193 331,053 3 2,308,193 1,872,560 1 1,302,738 1,052,740 0 0 0 156 4,216,179 3,784,679 20 74,481 65,553 51 389.084 354,653 54 838,026 757,536 16 564,223 510,747 8 539,909 485,162 5 941,664 839,690 2 868,792 771,338 0 0 0 0 0 0 0 0 0 350 20,042,647 17,289,047 17 54,653 47,860 49 357,279 319,513 120 1,991,217 1,793,580 89 3,054,416 2,726,389 46 3,183,533 2,855,373 19 2,645,892 2,347,703 2 779,018 661,237 3 1,794,642 1,448,288 5 6,181,997 5,089,104 0 0 0 1,401 88,921,401 74,359,518 106 354,002 304,299 232 1,727,000 1,536,873 448 7,536,856 6,772,554 342 11,781,442 10,570,728 160 11,176,623 10,034,518 78 12,263,542 10,797,805 16 6,008,972 4,945,755 9 5,683,503 4,760,960 7 13,348,747 10,263,328 3 19,040,714 14,372,698 68 5,848,372 4,950,802 10 27,647 21,732 19 134,300 115,361 19 311,403 279,804 9 298,299 271,698 3 202,638 176,140 4 892,458 743,998 1 441,263 380,427 1 690,108 587,956 2 2,850,256 2,373,686 0 0 0 30 2,038,970 1,842,360 4 12,399 11,071 1 6,183 5,454 6 120,848 108,976 10 330,827 301,736 4 309,477 280,218 4 900,853 809,577 1 358,383 325,328 0 0 0 0 0 0 0 0 0 North Dakota Banks............................................................. A ssets.......................................................... Deposits....................................................... Ohio Banks............................................................. A ssets.......................................................... Deposits....................................................... Oklahoma Banks............................................................. A ssets.......................................................... Deposits....................................................... Banks............................................................. A ssets.......................................................... Deposits....................................................... Pennsylvania Banks............................................................. A ssets.......................................................... Deposits....................................................... Rhode Island Banks............................................................. A ssets.......................................................... Deposits....................................................... — — — - South Carolina Banks............................................................. A ssets.......................................................... Deposits....................................................... South Dakota Banks............................................................. A ssets.......................................................... Deposits....................................................... NUMBER OF BANKS AND BRANCHES Oregon Tennessee Banks....................................................... A ssets.......................................................... Deposits.................................................... Texas Banks............................................................. A ssets.......................................................... Deposits.................................................... Utah Banks.......................................................... A ssets.......................................................... Deposits....................................................... Vermont 139 Banks............................................................. A ssets.......................................................... Deposits....................... 140 Table 105. NUMBER, ASSETS, AND DEPOSITS OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1978-CONTINUED BANKS GROUPED BY ASSET SIZE AND STATE (Amounts in thousands of dollars) Banks with assets of — State All banks Less than $5 million $5.0 million to $9.9 million $10.0 million to $24.9 million $25.0 million to $49.9 million $50.0 million to $99.9 million $100.0 million to $299.9 million $300.0 million to $499.9 million $500.0 million to $999.9 million $1.0 billion to $4.9 billion $5.0 billion or more Virginia 263 20,937,087 17,854,396 12 38,183 28,616 35 271,095 238,255 90 1,491,678 1,334,532 65 2,301,131 2,073,183 32 1,998,728 1,795,749 18 3,106,450 2.728,125 2 883.350 738,576 4 2,515,344 2,115,259 5 8.331,128 6.802,101 0 0 0 103 20,124,059 15,223,096 10 26,153 17,512 16 120,807 96,982 33 517,390 461,464 18 614.255 546,603 10 642,222 519,576 7 1,295,501 694,215 3 1,116,084 771,463 1 628,390 541,318 4 7,962,320 6,383,243 1 7,200,937 5,190,720 231 8,617,368 7,397,586 10 31,148 24,131 29 217,081 191,494 84 1,455,440 1,296,249 63 2,160,752 1,923,483 28 1,936,597 1,681,694 16 2.415,506 1,998,071 1 400,844 282,464 0 0 0 0 0 0 0 0 0 633 23,886,226 19,975,830 46 161,568 134,703 99 749,766 682,470 245 4,136,500 3,741,048 156 5,368,247 4,797.281 57 3,921,385 3.428.699 25 3,824,514 3.205,273 1 352,163 288,891 2 1,233,334 928,500 2 4,138,749 2,768,965 0 0 0 88 2,711,701 2,404,163 11 35,584 28,537 12 83,216 74,014 27 454,384 409,033 24 848.010 762,252 11 730,767 638,686 3 559,740 491,641 0 0 0 0 0 0 0 0 0 0 0 0 3 68,037 56,199 1 0 0 1 8,263 5,218 0 0 0 0 0 0 1 59,774 50,981 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 6 90,275 69,104 1 31,376 24,377 0 0 0 6 862,498 644,755 4 1,481.796 1,304,450 0 0 0 3 4,380,151 2,567,186 0 0 0 1 8,785 8,285 1 14,069 13,378 1 48,871 40,776 1 85.299 82,819 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Washington Banks............................................................. A ssets.......................................................... Deposits....................................................... West Virginia Banks............................................................. A ssets.......................................................... Deposits....................................................... W isconsin Banks............................................................. A ssets.......................................................... Deposits....................................................... Wyoming Banks............................................................. A ssets.......................................................... Deposits....................................................... Other areas Guam Banks............................................................. A ssets.......................................................... Deposits....................................................... Puerto Rico Banks............................................................. A ssets.......................................................... Deposits....................................................... 21 6,846,096 4,609,872 -0 6 157,024 145,258 -0 -0 Virgin Islands Banks............................................................. A ssets.......................................................... Deposits....................................................... 2 -0 11ncludes nondeposit trust companies: 8 in Arizona, 2 in Arkansas, 15 in California, 2 in Delaware, 3 in Florida, 3 in Hawaii, 7 in Illinois, 1 in Indiana, 1 in Iowa, 1 in Massachusetts, 1 in Mississippi, 6 in Missouri, 3 in Montana, 7 in Nebraska, 1 in New Hampshire, 1 in New Mexico, 5 in New york, 2 in Oklahoma, 2 in Pennsylvania, 1 in Rhode Island, 1 in South Dakota, 1 in Tennessee, 2 in Utah, 1 in Vermont, 1 in Virginia, 1 in Washington, and 5 in Wisconsin. 2Excludes data for branches in U.S. territories of banks headquartered in the United States, and excludes data for 19 insured branches in New York of 3 insured nonmember banks in Puerto Rico and 1 insured branch in California of an insured nonmember bank in Puerto Rico. 3Data are from fully consolidated Reports of Condition, including domestic and foreign offices. FEDERAL DEPOSIT INSURANCE CORPORATION Banks............................................................. A ssets.......................................................... Deposits....................................................... ASSETS AND LIABILITIES OF BANKS Table 106. Assets and liabilities of all commercial banks in the United States (States and other areas), June 30, 1978 Table 107. Assets and liabilities of all commercial banks in the United States (States and other areas), December 31, 1978 Table 108. Assets and liabilities of all mutual savings banks in the United States (States and other areas), June 30, 1978, and December 31, 1978 Table 109. Assets and liabilities of insured commercial banks in the United States (States and other areas), December call dates, 1973 — 1978 Assets and liabilities of insured commercial banks (domestic and foreign offices), United States and other areas, 1973 — 1977 Assets and liabilities of insured commercial banks (domestic and foreign offices), United States and other areas, December 31, 1978. Assets and liabilities of insured mutual savings banks in the United States (States and other areas), December call dates, 1973 — 1978 Percentages of assets, liabilities, and equity capital of insured commercial banks operating throughout 1978 in the United States (States and other areas), December 31, 1978 Banks grouped by insurance status and class o f bank Banks grouped by insurance status and class o f bank Banks grouped by insurance status Table 110. Table 1 10A. Table 111. Table 112. Banks grouped by amount o f assets Table 113. Percentages of assets and liabilities of insured mutual savings banks operating throughout 1978 in the United States (States and other areas), December 31, 1978 Table 114. Distribution of insured commercial banks in the United States (States and other areas), Decem ber 31, 1978 Banks grouped by amount o f assets Banks grouped according to amount o f assets and by ratios of selected items to assets or deposits Commercial banks Insured banks having resources of $25 million or more are required to report their assets and liabilities on the basis of accrual accounting. Where the results would not be significantly different, at the option of the bank, trust department accounts and certain other accounts may be reported on a cash basis. All banks, regardless of size or accounting system, are required to report unearned income on loans in the Report of Condition, Schedule A (loans). All banks, regardless of size or accounting system, are required to report income taxes on a current accrual basis. The income taxes must be computed on the amount of income and expense included in the Report of Income. Each insured bank having foreign offices is required to submit a consoli dated report including these offices; however, except for table 110 tables on pages 143-164 contain only the domestic assets and liabilities of banks. Beginning in 1969, all majority-owned premises subsidiaries are fully consolddated; other majority-owned domestic subsidiaries (but not commercial bank subsidiaries) are consolidated if they meet any of the following criteria: (a) any subsidiary in which the parent bank's investment represents 5 percent or more of its equity capital accounts, (b) any subsidiary whose gross operating revenues amount to 5 percent of the parent bank's gross operating revenues, or (c) (beginning in December 1972) any subsidiary whose "Income (loss) Mutual savings banks The Reports of Condition and Income for mutual savings banks were revised in major respects in 1971. Among the changes was a requirement for con solidating the accounts of branches and subsidiaries with the parent bank, on a comparable basis with commercial bank reports (see above). A 1972 revi sion broadened the criteria for consolidated reporting; it also provided for the reporting of investments in unconsolidated subsidiaries on an equity basis, comparable with commercial bank reporting. One objective of the revisions in 1971 was to provide a simplified reporting form. To this end, the schedules for deposits and securities were condensed and simplified. Several changes were made in the reporting of specific items. Loans are reported in somewhat more detail than formerly. In real estate loans, construc tion loans are shown separately, and loans secured by residential properties are detailed as to those secured by 1- to 4-family properties and by multifami ly (5 or more) properties. Another important change shifted various reserve accounts which had been carried as deductions against assets (about $200 million in 1971) into the surplus accounts. Beginning June 30, 1972, mutual savings banks with total resources of $25 million or more are required to prepare Reports of Condition on the basis of accrual accounting. All banks, regardless of size, are required to report income taxes on an accrual basis. Foreign assets of banks Since June 30, 1974, a consolidated statement of domestic and foreign assets and liabilities of U.S. banks has been published semiannually by the Corporation in Assets and Liabilities —Commercial and Mutual Savings Banks. (Beginning with June 30, 1977, foreign office assets and liabilities itemized by State are published in Assets and Liabilities —Commercial and Mutual Savings Banks.) In December 1978, a revised fully consolidated domestic and foreign Report of Condition was instituted. Sources of data Insured banks: see p. 166; noninsured banks: State banking authorities and reports from individual banks. FEDERAL DEPOSIT INSURANCE CORPORATION "subordinated notes and debentures," to be shown in the liabilities section of the Report of Condition. Accordingly, "capital accounts" became the "equity capital" section. In 1978 an abbreviated Report of Condition was instituted for banks with less than $100 million in total consolidated assets. Beginning with December 1978, other liabilities for borrowed money include interest-bearing demand notes issued to the U.S. Treasury. Asset and liability data for noninsured banks are tabulated from reports per taining to the individual banks. In a few cases, these reports are not as detailed as those submitted by insured banks. Additional data on assets and liabilities of all banks as of December 31, 1977, and June 30, 1978, are shown in the Corporation's semiannual publica tion Assets and Liabilities—Commercial and Mutual Savings Banks. 142 before income taxes and securities gains or losses” amounts to 5 percent or more of the "income (loss) before income taxes and securities gains or losses" of the parent bank. Beginning in 1972, investments in subsidiaries not consolidated in which the bank directly or indirectly exercises effective control are reported on an equity (rather than cost) basis with the investment and undivided profits adjusted to include the parent's share of the subsidiaries' net worth. In the case of insured banks with branches outside the 50 States, net amounts due from such branches are included in "Other assets" and net amounts due to such branches are included in "Other liabilities." Branches of insured banks outside the 50 States are treated as separate entities but are not included in the count of banks. Data for such branches are not included in the figures for the States in which the parent banks are located. From 1969 through 1975, all reserves on loans and securities, including the reserves for bad debts set up pursuant to Internal Revenue Service rulings, were included in "Reserves on loans and securities" on the liability side of the balance sheet. Beginning in 1976, the IRS reserve is divided as follows, (a) the "valuation" portion of the reserve (plus any other loan loss reserve) is shown on the asset side of the face of the report as an offset to gross loans; (b) the "deferred income tax" portion is included in "other liabilities"; and (c) the "contingency" portion is included in "undivided profits," or "reserves for con tingencies and other capital reserves" (preferably the former). The valuation reserve on securities, formerly shown on the liabilities side, is included in "reserve for contingencies and other capital reserves" beginning in 1976. "Unearned income on loans," previously reported in "other liabilities," is reported separately as an exclusion from total loans and total assets beginning December 3 1 ,1 9 7 6 . Individual loan items are reported gross. Instalment loans, however, are ordinarily reported net if the instalment payments are applied directly to the reduction of the loan. Such loans are reported gross if, under contract, the payments do not immediately reduce the unpaid balances of the loan but are assigned or pledged to assure repayment at maturity. The category "Trading account securities" was added to the condition report of commercial banks in 1969 to obtain this segregation for banks that regularly deal in securities with other banks or with the public. Banks occa sionally holding securities purchased for possible resale report these under "Investment securities." Assets and liabilities held in or administered by a savings, bond, insurance, real estate, foreign, or any other department of a bank, except a trust depart ment, are consolidated with the respective assets and liabilities of the com mercial department. "Deposits of individuals, partnerships, and corporations" include trust funds deposited by a trust department in a commercial or savings department. Other assets held in trust are not included in statements of assets and liabilities. Demand balances with, and demand deposits due to, banks in the United States, except private banks and American branches of foreign banks, exclude reciprocal interbank deposits. (Reciprocal interbank deposits arise when two banks maintain deposit accounts with each other.) Digitized forInFRASER 1976, the caption "Capital notes and debentures" was changed to Table 106. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), JUNE 30, 1978 BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK (Amounts in thousands of dollars) Insured banks Assset, liability or expense item Noninsured banks Members of Federal Reserve System Total Not members Total Total National State System Total Banks ot deposit Nondeposit trust companies2 1,226,811,222 1,181.635.323 893,037,057 675,652,397 217.384,660 288,598,266 45,175.899 44,520.620 655.279 Cash and due from banks— total......................................................................... 166.914,083 158,605.576 134,197.812 91,140.392 43,057,420 24,407,764 8.308.507 8.256,580 51,927 Cash items in process of collection.............................................................................. Demand balances with commercial banks in the United States....................... All other balances with depository institutions in the U.S. and with banks in foreign countries............................................................................................... Balances with Federal Reserve Banks........................................................................... Currency and coin................................................................................................................... 69,513,707 42,125,244 69,406,346 38,341,352 66,610,739 23.267,303 42,637,380 14,887,500 23,973,359 8,379,803 2,795,607 15,074,049 107,361 3,783,892 107,066 3.746,362 295 37,530 13,739,692 29,573,900 11,961,540 9,344,894 29,565,825 11,947,159 6,047,769 29,565,777 8,706,224 3,980.366 22,824,689 6,810,457 2,067,403 6,741,088 1,895,767 3,297,125 48 3,240,935 4,394,798 8,075 14,381 4,389,000 0 14,152 5,798 8,075 229 Securities— total........................................................................................................ 265.265.377 262,154,356 180,259,997 138,532.714 41,727,283 81,894,359 3,111,021 2,979,465 U.S. Treasury securities........................................................................................................ Obligations of other U.S. Government agencies and corporations3................. Obligations of States and political subdivisions in the U.S................................. All other securities................................................................................................................ 131,556 94,507,369 38,941,568 116,823,564 14,992,876 93,457,638 38,566,812 115,911,368 14,218,538 63,361,685 24,217,200 81,010,888 11,670,224 47.530,326 19,599,400 62,967,559 8,435,429 15,831,359 4,617,800 18,043,329 3,234,795 30,095,953 14,349,612 34,900,480 2,548,314 1.049,731 374,756 912,196 774,338 1,007,896 372,526 877,808 721,235 41,835 2,230 34,388 53,103 190,809 Federal funds sold and securities purchased under agreements to r e s e ll.................................................................................................................... 49,129,592 44,006,310 34,561,671 27,858,330 6,703.341 9,444,639 5,123,282 4,932,473 Loans, net.................................................................................................................... 657,146,270 633,416.957 471,570,168 365,803,116 105,767,052 161,846,789 23,729,313 48,440 Plus: Allowances for possible loan losses.................................................................. Loans, total.................................................................................................................................. Plus: Unearned income on lo a n s................................................................................... 23,680,873 7,387,279 664,533,549 16,293,868 7,206,816 640,623,773 16,233,433 5,680,613 477,250,781 10,830,179 4,244,820 370,047,936 8,999,537 1,435,793 107,202,845 1,830,642 1,526,203 163,372,992 5,403,254 180,463 23,909,776 60,435 180,035 23,860,908 60,435 428 48,868 0 Loans, g ro ss............................................................................................................... 680,827,417 656.857.206 488,080.960 379.047.473 109,033,487 168,776,246 23,970,211 Real estate loans — total..................................................................................................... Construction and land development........................................................................... Secured by farmland........................................................................................................ Secured by 1—4 family residential properties.................................................... Secured by multifamily (5 or more) residential properties......................... Secured by nonfarm nonresidential properties.................................................... Loans to financial institutions......................................................................................... Loans for purchasing or carrying securities............................................................ Loans to finance agricultural production and other loans to farmers........... Commercial and industrial loans................................................................................... Loans to individuals—total............................................................................................... To purchase private passenger automobiles on instalment basis.............. Credit cards and related plans.................................................................................... To purchase mobile homes (excluding travel trailers)..................................... 23.921.343 48,868 194,466,700 194,072,142 132,711,372 107,117,013 25,594,359 61,360,770 394,558 24,093,792 8,206,458 105,954,695 5,365,072 50,846,683 390,178 4,380 24,033,847 8,187,723 105,727,323 5,344,087 50,779,162 17,943,749 3,565,146 73,461,997 3,901,064 33,839,416 13,991,371 2,937,594 60.365,313 2,798,069 27,024,666 3.952.378 627.552 13,096,684 1,102,995 6,814,750 6,090,098 4.622,577 32,265,326 1,443,023 16,939,746 59,945 18,735 227,372 20,985 67,521 45,109,367 16,187,862 27,070,112 224,500,545 154,834,239 59,945 18,212 224,084 20,602 67,335 0 523 3.288 383 186 35,637,177 15,677,418 27,011,475 212,791,169 154,628,563 33,494,435 14,647,374 14,813,042 171,842,593 106,084,221 22,717,002 8,521,451 12,919,968 130,475,963 86,634,049 10.777,433 6,125,923 1,893,074 41,366,630 19,450,172 2,142,742 1,030,044 12,198,433 40,948,576 48,544,342 9,472,190 510,444 58,637 11,709,376 205,676 56.132,760 20,258,046 9,387,071 9,472,190 505,539 58,633 11,709,093 205,566 0 4,905 4 283 110 56,088,199 20,247,198 9,386,253 35,799,321 17.816,200 6,553,424 29,705,735 14,504,290 5,749,721 6,093,586 3,311,910 803.703 20,288,878 2,430,998 2,832,829 44,561 10,848 818 44,512 10,848 813 49 0 5 All other instalment loans for household, family and other personal expenditures...................................................................................................................... Single payment loans for household, family and other personal expenditures......................................................................................................................... 39,499,733 39,405,897 25,747.957 20,816.194 4,931,763 13,657,940 93,836 93,825 11 29,556,629 29,501,016 20,167,319 15.858,109 4,309,210 9,333,697 55,613 55,568 45 18,658,592 17.039,262 14,487,923 10,662,027 3,825,896 2,551,339 1,619,330 1,580,144 39,186 Total loans and secu rities................................................................................. 971.541,239 939,577,623 686,391,836 532.194.160 154,197.676 253,185,787 31,963,616 31.592.811 370,805 143 All other loans............................................................................................................................ ASSETS AND LIABILITIES OF BANKS Total a s s e t s .................................................................................................................. Table 106. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 144 JU N E 3 0 , 1 9 7 8 — C O N TIN U ED BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK (Amounts in thousands of dollars) Insured banks Assset, liability or expense item Noninsured banks Members of Federal Reserve System Total Total Total National State Not members of F.R. System Total Banks of deposit Nondeposit companies2 6,308,427 6,307,591 5,923,957 4,706,740 1,217,217 383,634 836 725 111 19,553,205 2,992,379 59,501,889 19,445,038 2,958,975 54,740,520 14,126,179 2,435,518 49,961,755 11,353,602 1,829,256 34,428,247 2,772,577 606,262 15,533,508 5,318,859 523,457 4,778,765 108,167 33,404 4,761,369 87,381 15,943 4,567,180 20,786 17,461 194,189 Total liabilities and equity capital.......................................................................... 1,226,811,222 1,181,635,323 893,037,057 675,652,397 217,384,660 288,598.266 45,175,899 44.520,620 655.279 Business and personal deposits— to t a l............................................................. 814,625,532 800,407,750 576,204,271 448.441,174 127,763,097 224,203.479 14,217,782 14,191.743 26.039 Individuals, partnerships, and corporations — demand........................................... Individuals, partnerships, and corporations—savings......................................... Individuals and nonprofit organizations—savings................................................. Corporations and other profit organizations —savings........................................... Individuals, partnerships, and corporations —time.................................................... Deposits accumulated for payment of personal loans —tim e............................. Certified and officers' checks, travelers’ checks, letters of credit — demand.................................................................................... 282,856,150 281,143,967 208,191,570 159,693,042 48,498,528 72,952,397 1,712,183 1,691,160 21,023 221.815,219 211,001,245 221.180.985 210,391,492 151.943.732 144.506.281 121.651.070 115.834,518 30.292.662 28.671.763 69,237,253 65.885.211 634.234 609,753 632.270 607.789 1.964 1.964 10,813,974 291,860,056 90,163 10,789,493 283,063,584 90,163 7,437,451 204,517,200 72,141 5,816,552 160,091,782 53,791 1,620,899 44,425,418 18,350 3,352,042 78,546,384 18,022 24,481 8,796,472 0 24,481 8,796,188 0 0 284 0 2,768 18,003,944 14,929,051 11,479,628 6,951,489 4,528,139 3,449,423 3,074,893 3,072,125 88,961,056 88,434,444 60,272,525 48,781,923 11,490,602 28,161.919 526,612 526,577 35 States Government —demand.............................................................................. States Government —savings.............................................................................. States Government —time.................................................................................... and political subdivisions — demand................................................................ and political subdivisions—savings............................................................... and political subdivisions —time..................................................................... 8,225,839 63,022 999,270 18,527,984 4,553,165 56,591,776 8,207,390 63,022 999,000 18,441,142 4,531,310 56,192,580 5,877,197 52,931 793,494 12,463,533 2,884,063 38,201,307 4,719,195 43,766 703,821 10,009,601 2,135,267 31,170,273 1,158,002 9,165 89,673 2,453,932 748,796 7,031,034 2,330,193 10,091 205,506 5,977,609 1,647,247 17,991,273 18,449 0 270 86,842 21,855 399,196 18,414 0 270 86,842 21,855 399,196 35 0 0 0 0 0 All other deposits— total......................................................................................... 70 ,5 53 ,85 7 63 ,9 38 ,05 0 61 .1 28 ,72 9 32 ,9 79 ,28 5 2 8 ,1 49 ,44 4 2,809,321 6 ,6 1 5 ,8 0 7 6 .5 9 4 ,0 3 8 21,769 Demand........................................................................................................................................ Savings........................................................................................................................................ Tim e.............................................................................................................................................. 49,679,789 34,272 20,839,796 47,165,399 34,074 16,738,577 45,643,969 30,809 15,453,951 22,456,549 18,482 10,504,254 23,187,420 12,327 4,949,697 1,521,430 3,265 1,284,626 2,514,390 198 4,101,219 2,492,621 198 4,101,219 21,769 0 0 Government deposits— t o t a l................................................................................. United United United States States States Total deposits............................................................................................................. 974,140,445 952,780,244 697,605,525 530,202,382 167,403,143 255,174,719 21,360,201 21,312,358 47,843 Demand........................................................................................................................................ Savings........................................................................................................................................ Time.............................................................................................................................................. 377,293,706 226,465.678 370,381.061 369,886.949 225,809.391 357.083.904 283.655.897 154.911.535 259.038.093 203.829.876 123.848.585 202.523.921 79.826.021 31.062,950 56,514.172 86.231.052 70.897.856 98.045.811 7.406.757 656,287 13.297.157 7,361,162 654.323 13.296.873 45.595 1.964 284 162,460,020 139,793,108 129,301,431 95,334,106 33,967,325 10,491,677 22,666.912 22,334,098 93,463,393 89,240,327 83,081,243 63,190,787 19,890,456 6,159,084 4,223,066 4,223,066 0 14,004,039 1,762,742 53,229,846 9,444,033 1,757,257 39,351,491 9,031,947 1,425,462 35,762,779 5,788,01 1 1,006,172 25,349,136 3,243,936 419,290 10,413,643 412,086 331,795 3,588,712 4,560,006 5,485 13,878,355 4,495.302 816 13,614,914 64,704 4,669 263,441 Miscellaneous liabilities— total............................................................................ Federal funds purchased and securities sold under agreements to repurchase................................................................................................................. Interest bearing demand notes issued to the U.S. Treasury and other liabilities for borrowed money.................................................................................... Mortgage indebtedness and liability for capitalized le ases................................ All other liabilities................................................................................................................. 332,814 FEDERAL DEPOSIT INSURANCE CORPORATION Lease financing receivables.................................................................................................. Bank premises, furniture and fixtures, and other assets representing bank premises.......................................................................................................................... Real estate owned other than bank premises................................................................ All other a sse ts.......................................................................................................................... Total liabilities (excluding subordinated notes and debentures).......... 1,136,600,465 1,092,573,352 826,906,956 625,536,488 201,370.468 265,666,396 44,027,113 43,646,456 Subordinated notes and debentures.................................................................... 5,874,090 5,794,411 4,440,123 3,095,982 1,344,141 1,354,288 79,679 78,327 1,352 Equity capital— total................................................................................................ 84,336,667 83,267,560 61,689,978 47,019,927 14,670,051 21,577,582 1,069,107 795,837 273,270 Preferred stock— par value............................................................................................... Preferred stock —shares outstanding (in thousands).............................................. Common stock —par value.................................................................................................. Common stock —shares outstanding (in thousands).............................................. Surplus.................................................................................................................................... Undivided profits and reserve for contingencies and other capital reserves........................................................................................................... 107,486 7,333 17,960,748 1,916,794 32,478,290 101,245 7,252 17,765,826 1,905,831 31,956,866 32,605 3,725 12,743,176 1,274,992 22,905,774 26,193 640 9,740,275 1,038,952 16,878,681 6,412 3,085 3,002,901 236,040 6,027,093 68,640 3,527 5,022,650 630,839 9,051,092 6,241 81 194,922 10,963 521,424 5,840 58 141,674 6,913 466,175 401 23 53.248 4,050 55,249 33,790,143 33,443,623 26,008,423 20,374,778 5,633,645 7,435,200 346,520 182,148 164,372 13.61 13.42 15.03 13.49 19.81 8.46 18.39 18.55 7.92 10.88 10.74 11.17 11.01 9.81 10.38 9.94 10.57 9.41 9.79 15.40 12.98 3.15 3.73 3.10 3.59 6 72 13.35 58.17 6.60 6.87 57.94 6.45 7.05 57.31 7.48. 6.91 58.89 7.12 6.96 52.40 8.60 6.75 59.88 3.28 7.48 64.27 10.46 2.375 64.67 10.09 1.795 36.58 35.42 41.70 8.74 8.96 8.87 8.76 9.26 9.22 2.985 2.265 48.67 Standby letters of credit —total................................................................................... Time certificates of deposits in denominations of $100,000 or more................. Other time deposits in amounts of $100,000 or more ........................................... 18,973,556 158,075,933 27,893,775 17,818,040 153,217,336 25,990,674 16,749,967 124,263,101 22,275,385 11,664,412 91,354,122 18,485,486 5,085,555 32,908,979 3,789,899 1,068,073 28,954,235 3,715,289 1,155,516 4,858,597 1,903,101 1,155,516 4,858,597 1,902,817 0 0 284 Number of banks at end of period...................................................................................... 14,729 14,395 5,621 4,616 1,005 8,774 334 246 88 380,657 PERCENTAGES Of total assets: Of total assets other than cash and U.S. Treasury securities: Total equity capital^......................................................................................... Memoranda ^Includes asset and liability figures for branches of foreign banks (tabulated as banks) licensed to do a deposit business. Capital is not allocated to these branches by the parent banks. 2Amounts shown as deposits are special accounts and uninvested trust funds, with the latter classified as demand deposits of individuals, partnerships, and corporations. 3Because noninsured commercial banks are not required to submit Schedule B, "Securities— Distribution by Remaining Maturity, “ these distributions are not available for noninsured banks and for "All commercial banks.” 4 0n ly asset and liability data are included for branches located in "other areas” of banks headquartered in one of the 50 States; because no capital is allocated to these branches, they are excluded from the computa tion of ratios of equity capital to assets. 5Data for branches of foreign banks referred to in footnote 1 have been excluded in computing this ratio for noninsured banks of deposit and in "to ta l” columns. Note. Further information on the reports of assets and liabilities of banks may be found on pp. 141-142. 145 ASSETS AND LIABILITIES OF BANKS Cash and due from depository institutions.................................................... U.S. Treasury securities and obligations of other U.S. Government agencies and corporations.................................................................................................. All other securities................................................................................................................... Loans (including federal funds sold and securities purchased under agreements to resell) .............................................................................. All other a ssets................................................................................................................ Total equity capital^..................................... ................................ 146 Table 107. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1978 BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK (Amounts in thousands of dollars) Insured banks Total National State Total Total Total Banks of deposit Nondeposit companies Total a s s e t s .................................................................................................................. 1,329,012,482 1,273,189,105 961,885,965 726.298.401 235.587.564 311,303.140 55.823,377 54.899,771 923.606 Cash and due from depository institutions—total....................................................... Cash items in process of collection.............................................................................. Demand balances with commercial banks in the United States.......................................................................................................................... All other balances with depository institutions in the U.S. and with banks in foreign countries......................................................... Balances with Federal Reserve Banks........................................................................... Currency and coin.................................................................................................................... 188.549,964 75,434,689 178,327,313 75,291,809 150,423,347 72,337,585 103,043,189 47,859,893 47,380,158 24,477,692 27,903,966 2,954,224 10,222,651 142,880 10,059,115 142,536 163,536 344 46,970,200 42,572,323 25,548,882 15,277,879 10,271,003 17,023,441 4,397,877 4,245,277 152,600 16,148,997 34,400,640 15,595,438 10,493,618 34,398,107 15,571,456 6,554,683 34,398,101 11,584,096 4,415,649 26,442,687 9,047,081 2,139,034 7,955.414 2,537,015 3,938,935 6 3,987,360 5,655,379 2,533 23,982 5,646,147 1,234 23,921 9,232 1,299 61 Securities— T o t a l..................................................................................................... 2 7 2 ,1 5 7 ,4 7 9 26 8.77 7 ,8 5 6 183,888,222 14 0,68 1 .3 5 9 4 3 .2 0 6 .8 6 3 8 4 ,8 8 9 .6 3 4 3 .3 7 9,6 23 3 ,0 7 2 ,3 0 0 307,323 U.S. Treasury securities........................................................................................................ Obligations of other U.S. Government agencies and corporations.............................................. ................. Obligations of States and political subdivisions in the U.S.................................................................................................................................. All other securities.................................................................................................................... 90,644,189 89,699,426 60,118,003 45,285,125 14.832,878 29,581,423 944,763 873,515 71,248 42,704,588 42,316,375 26,513,332 21,308,168 5,205,164 15,803.043 388,213 380,694 7,519 124,577,088 14,231,614 123,510,734 13,251,321 86,434,476 10,822,411 66,743,327 7,344,739 19,691,149 3,477,672 37,076,258 2,428,910 1,066,354 980,293 930,876 887,215 135,478 93,078 Federal funds sold and securities purchased under agreements to r e s e ll.............................................................................................. 54,999,683 48.755,878 37,569,069 31,023,186 6.545.883 11,186.809 6,243.805 6.131,115 112,690 Loans, net....................................................................................................................... 7 1 1,8 8 0 ,2 9 3 6 8 2,8 6 6 .6 5 4 5 0 7 ,67 2 ,2 5 5 3 9 2 .7 5 1 .2 4 3 1 1 4.9 2 1 ,0 1 2 1 7 5 .1 9 4 .3 9 9 2 9 ,0 1 3 .6 3 9 2 8 ,9 56 ,37 1 5 7 ,268 Plus: Allowances for possible loan losses..................................................................... Loans, total..................................................................................................................................... Plus-. Unearned income on lo a n s....................................................................................... 7,891,213 719,771,506 17,789,386 7,714,708 690,581,362 17,726,868 6,053,426 513,725,681 11,822,995 4,565,741 397,316,984 9,788,830 1,487,685 116,408,697 2,034,165 1,661,282 176,855,681 5.903,873 176.505 29,190,144 62,518 175,923 29,132,294 62,198 582 57,850 320 Loans, g ro ss.................................................................................................................. 737,560,894 708,308.232 525.548.678 407.105.816 118.442.862 182.759,554 29.252.662 29.194.492 58.170 Real estate loans —Total........................................................................................................ Construction and land development.............................................................................. Secured by farmland........................................................................................................... Secured by 1-4 family residential properties.......................................................... Secured by multifamily (5 or more) residential properties............................. Secured by nonfarm nonresidential properties....................................................... 214,050,007 213,625,237 145,814,742 118,039,653 27,775.089 67,810,495 424,770 419,002 5,768 27,323,235 8,501,381 118,719,540 5,742,247 53,763,604 27,269,354 8,480,930 118.476,776 5,723,046 53,675,131 15,978,933 3,057,249 67,711,791 3,013,995 28,277,685 4,347,605 626.867 14.437.879 1.092.997 7.269.741 6,942.816 4.796.814 36,327,106 1,616,054 18.127,705 53,881 20,451 242.764 19.201 88.473 53.783 19,934 239.507 18.823 86.955 98 517 3.257 378 1.518 20,326,538 3,684,116 82,149,670 4,106,992 35,547,426 FEDERAL DEPOSIT INSURANCE CORPORATION Asssel, liability or expense item Noninsured banks Not members of F.R. System Members of Federal Reserve System 55,532,743 14,854,702 43.459,007 14,380,222 41,172,828 13,338,296 27,193,870 7,983,537 13,978,958 5,354,759 2,286,179 1,041,926 12,073,736 474,480 12,069,448 472,580 4,288 1,900 28,250,090 236,856,746 28,191,763 223,243,865 15,464,961 179,584,844 13,430,975 135,756,018 2,033,986 43,828,826 12,726,802 43,659,021 58,327 13,612,881 58,327 13,610,791 0 2,090 Loans to individuals—total.................................................................................... 167,937,855 167,675,391 115,239.517 93,793,563 21,445,954 52,435,874 262,464 261,278 1,186 To purchase private passenger automobiles on installment basis. Credit cards and related plans..................................................................... To purchase mobile homes (excluding travel trailers)....................... All other instalment loans for household, family and other personal expenditures................................................................ Single payment loans for household, family and other personal expenditures....................................................................................... 61,107,896 24,508,763 9,736,157 61,051,302 24,496,572 9,734,878 39,018,985 21,689,272 6,677,296 32,301,433 17,600,614 5.897,301 6,717,552 4,088,658 779,995 22,032,317 2,807,300 3,057,582 56,594 12,191 1,279 56,077 12.191 1,279 517 O 0 41,971,994 41,853,614 27,323,946 21,753,399 5,570,547 14,529,668 118,380 117,897 483 30,613,045 30,539.025 20,530,018 16,240,816 4,289,202 10,009,007 74,020 73,834 186 All other loans.............................................................................................................. 20,078,751 17,732,747 14,933,490 10,908,200 4,025,290 2,799,257 2,346,004 2,303,066 42,938 Total loans and securities.............................................................................. Lease financing receivables................................................................................. Bank premises, furniture and fixtures, and other assets representing bank premises................................................................ Real estate owned other than bank premises.............................................. All other a ss e ts........................................................................................................ 1,039,037,455 1.000,400,388 729,129.546 546,455.788 164,673,758 271.270.842 38.637,067 38,159.786 477.281 7,660,080 7,657,996 7,084,293 5,567,229 1,517,064 573,703 2,084 2,084 0 20,671,128 2,517,740 70,756,115 20,551,097 2,475,901 63,776,410 14,843,212 1,985,969 58,419,598 11,968,634 1,544,012 39,719,549 2,874,578 441,957 18,700,049 5,707,885 489,932 5,356,812 120,031 41,839 6,799,705 92,425 19,289 6,567,072 27,606 22,550 232,633 Total liabilities and equity capital................................................................... 1,329,012,482 1,273,189,105 961,885,965 726.298.401 235,587,564 311.303,140 55,823,377 54,899.771 923.606 Business and personal deposits—total.......................................................... Individuals, partnerships, and corporations—demand.......................... Individuals, partnerships, and corporations—savings.......................... Individuals and nonprofit organizations—savings................................ Corporations and other profit organizations—savings....................... Individuals, partnerships, and corporations—time................................... Deposits accumulated for payment of personal loans—time........................................................................................................... Certified and officers' checks, travelers' checks, letters of credit—demand.............................................................................. 875,036,279 311,312,230 217,165,009 857,642,324 309,347,998 216,503,446 615,760,269 228,317,516 147,023,837 480,270,853 175,953,695 118,019,703 135,489,416 52,363,821 29,004,134 241,882,055 81,030,482 69,479,609 17,393,955 1,964,232 661,563 17,346,200 1,921,131 661,431 47,755 43,101 132 206,185,405 10,979,604 205,568,072 10,935,374 139,673,675 7,350,162 112,232,683 5,787,020 27.440,992 1,563,142 65,894,397 3,585,212 617,333 44,230 617,201 44,230 132 0 327,425,692 316,146,234 228,399,626 178,960,744 49,438,882 87,746,608 11,279,458 11,279,458 0 109,598 109,598 87,539 64,277 23,262 22,059 0 0 0 19,023,750 15,535,048 11,931,751 7,272,434 4,659,317 3,603.297 3,488,702 3,484,180 4,522 Government deposits—t o t a l.............................................................................. United States Government—demand................................................................ United States Government—savings................................................................ United States Government—tim e..................................................................... States and political subdivisions—demand................................................. States and political subdivisions—savings................................................. States and political subdivisions—time.......................................................... 88,767,961 88,240.496 59.254,334 47,962,022 11,292.312 28.986.162 527,465 526.593 872 2,732,227 82,737 866,499 19,335,289 4,314,253 61,436,956 2,725,862 82,733 866,499 19,202,176 4,298,654 61,064,572 1,900,487 57,496 675,944 12.667,760 2,603,398 41,349,249 1,518,949 51,049 520,376 10,367,327 1,995,931 33,508,390 381,538 6,447 155,568 2,300,433 607,467 7,840,859 825,375 25,237 190,555 6,534,416 1,695,256 19,715.323 6,365 4 0 133,113 15,599 372,384 6,362 0 0 133,113 14,734 372,384 3 4 0 0 865 0 All other deposits—total....................................................................................... Demand......................................................................................................................... Savings.......................................................................................................................... Tim e............................................................................................................................... 79.445,876 70,501,728 67,392,909 35,969.502 31.423.407 3,108.819 8,944,148 8.939.096 5,052 56,136,821 45,369 23,263,686 53,474,157 43,766 16,983,805 51,656,332 30,689 15,705,888 26,185,705 23,665 9,760,132 25,470,627 7,024 5,945,756 1,817,825 13,077 1,277,917 2,662,664 1,603 6,279,881 2,657,612 1,603 6,279,881 5,052 0 0 147 ASSETS AND LIABILITIES OF BANKS Loans to financial institutions.............................................................................. Loans for purchasing or carrying securities................................................. Loans to finance agricultural production and other loans to farmers.......................................................................................... Commercial and industrial loans..................................................................... 148 Table 107. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), (Amounts in thousands of dollars) Noninsured banks Insured banks Assset, liability or expense item Not members Members of Federal Reserve System Total Total Total National State System Banks of deposit Nondeposit companies Total deposits................................................................................................................ 1,043,250,116 1,016,384,548 742,407,512 564,202,377 178,205,135 273.977,036 26,865.568 26,811,889 53,679 Demand........................................................................................................................................... Savings........................................................................................................................................... Tim e................................................................................................................................................. 408,540,317 221,607,368 413,102,431 400,285,241 220,928.599 395,170,708 306,473,846 149,715,420 286,218,246 221,298,110 120,090,348 222,813,919 85,175,736 29,625,072 63,404,327 93,811.395 71,213,179 108,952,462 8,255,076 678,769 17,931,723 8,202.398 677,768 17.931,723 52,678 1,001 0 Miscellaneous liabilities— total............................................................................... 191,280,293 163,522,078 150,643,528 109,823,930 40,819,598 12,878.550 27.758,215 27,182.693 575,522 96,283,820 91,291,670 84,973,167 64.908,212 20,064,955 6,318,503 4,992,150 4.980,833 11,317 Federal funds purchased and securities sold under agreements to repurchase.................................................... Interest bearing demand notes issued to the U.S. Treasury and other liabilities for borrowed money. . . . .............. Mortgage indebtedness and liability for capitalized leases.................................................................................................................... All other liabilities.................................................................................................................... 29,287,827 22,791,813 20,723,962 13,266,921 7,457,041 2,067,851 6,496,014 6,419,012 77,002 2,042,992 63,665,654 2,035,029 47,403,566 1,655,394 43,291,005 1,232,722 30,416,075 422,672 12,874,930 379,635 4,112,561 7,963 16,262,088 739 15,782,109 7,224 479,979 Total liabilities (excluding subordinated notes and deb entu res)................................................................................................... 1,234,530,409 1,179,906,626 893,051,040 674,026,307 219,024,733 286,855,586 54,623,783 53.994,582 629,201 Subordinated notes and debentures....................................................................................... 5,945,067 5,864,838 4,401,101 3,065,280 1,335,821 1,463,737 80,229 78,915 1,314 Equity capital— total................................................................................................... 88,537,005 87,417,641 64,433,824 49,206,807 15,227,017 22,983,817 1,119.364 826,273 293,091 Preferred stock— par value.................................................................................................. Preferred stock—shares outstanding (in thousands)................................................. Common stock—par value..................................................................................................... Common stock—shares outstanding (in thousands)................................................. Surplus........................................................................................................................................... Undivided profits and reserve for contingencies and other capital reserves.............................................. 120.187 5,948 18,355,101 2,254,594 33,714,192 113,851 5,866 18,157,997 2,244,476 33,202,557 32,170 1,632 12,940,287 1,303,588 23,493,743 28,772 1,151 9,911,602 1,054,938 17,290,549 3,398 481 3,028,685 248,650 6,203,194 81,681 4,234 5,217,710 940,888 9,708,814 6,336 82 197,104 10,118 511,635 5,934 59 142,399 6,779 453,315 402 23 54,705 3,339 58,320 36.347.525 35,943,236 27,967,624 21,975,884 5,991,740 7,975,612 404,289 224,625 179,664 FEDERAL DEPOSIT INSURANCE CORPORATION D E C E M B E R 3 1 , 19 7 8 - C O N T IN U E D BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK Percentages Of total assets: Cash and due from depository institutions................. U.S. Treasury securities and obligations of other U.S. Government agencies and corporations................................................................ All other securities.................................................................................................................... Loans (including Federal funds sold and securities purchased under agreements to rese ll)........................................................................ All o*her a sse ts.......................................................................................................................... Total equity capital.................................................................................................................... 14.19 14.01 15.64 14.19 20.11 8.96 18.31 18.32 17.71 10.03 10.44 10.37 10.74 9.01 10.11 9.17 10.20 8.51 9.83 14.58 12.69 2.39 3.67 2.28 3.31 8.53 24.75 58.30 7.04 6.66 58.07 6.81 6.87 57.31 7.93 6.70 58.98 7.47 6.78 52.19 9.36 6.47 60.40 3.36 7.38 63.48 12.16 2.01 64.23 11.85 1.51 18.46 30.55 31.73 8.44 8.70 8.58 8.51 8.80 9.06 2.51 1.88 42.55 Of total assets other than cash and U.S. Treasury securities: Total equity capital................................................................................................... Standby letters of credit —total................................... Time certificates of deposit in denominations of $100,000 or m ore.................................................................................................................... Other time deposits in amounts of $100,000 or m ore.............................................. 20,249,831 19,019,271 17,790,776 11,693,263 6,097,513 1,228,495 1,230,560 1,230,560 0 184,551,337 29,421,386 178,1 19,339 26,827,041 143,905,524 23,133,864 105,680,494 19,274,722 38,225,030 3,859,142 34,213,815 3,693,177 6,431,998 2,594,345 6,431,998 2,594,345 0 0 Number of banks at end of period....................................................................................... 14,740 14,391 5,564 4,564 1,000 8,827 349 262 87 149 ASSETS AND LIABILITIES OF BANKS Memoranda 150 Table 108. ASSETS AND LIABILITIES OF ALL MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), JUNE 30, 1978, AND DECEMBER 31, 1978 BANKS GROUPED BY INSURANCE STATUS (Amounts in thousands of dollars) December 31, 1978 June 30, 1978 Asset, liability, or surplus account item Insured Noninsured Insured Noninsured Total Total a s s e ts ................................................................................................................................................................ 153,165,725 137,667,745 15,497,980 158,216,204 142,352,794 15,863,410 Cash, balances with banks, and collection item s— total....................................................................... 2,198,250 1,975,613 222,637 3,779,649 3,570,970 208,679 Currency and co in ............................................................................................................................................................... Demand balances with banks in the United S ta tes............................................................................................. Other balances with banks in the United States.................................................................................................. Cash items in process ^ collection............................................................................................................................ 424,967 779,348 773,553 220,382 353,289 660,657 766,938 194,729 71,678 118,691 6,615 25,653 478,801 968,325 2,152,100 180,423 411,640 861,088 2,136,238 162,004 67,161 107,237 15,862 18,419 47,540,306 43,252,114 4,288,192 47,847,827 43,546,458 4,301,369 United States Government and agency securities —to ta l................................................................................. Securities maturing in 1 year or less................................................................................................................. Securities maturing in 1 to 5 years.................................................................................................................... Securities maturing in 5 to 10 years................................................................................................................. Securities maturing after 10 years....................................................................................................................... 17,768,774 15,867,408 1,901,366 18,032,040 16,215,435 1,816,605 1,550,037 4,130,637 1,971,321 10,116,779 1,354,087 3,531,436 1,674,630 9.307,255 195.950 599,201 296.691 809.524 1.595.436 3.836,804 1,796,268 10,803,532 1,371,969 3,270,419 1,517,745 10,055,302 223.467 566.385 278.523 748.230 Corporate bonds..................................................................................................................................................................... State, county, and municipal obligations.................................................................................................................... Other bonds, notes, and debentures............................................................................................................................ 17,869,546 3,015,514 4,075,434 16,716,233 2,948,680 3,634,645 1,153,313 66,834 440,789 17,390,387 3,358,312 4,280,175 16,376,504 3,297,215 3,587,862 1,013,883 61,097 692,313 Corporate stock —total....................................................................................................................................................... Bank....................................................................................................................................................................................... Other.................................................................................................................................................................................... 4,811,038 4,085,148 725,890 4,786,913 4,069,442 717,471 557.871 4,253,167 395.171 3.689.977 162.700 563.190 554,289 4,232,624 387,736 3,681,706 166.553 550.918 Federal funds sold and securities purchased under agreements to re se ll........................................ 3,360,326 3,025,758 334,568 2,124,608 1,889,991 234,617 Other loans— to ta l.............................................................................................................................................. 96,015,044 85,708,417 10,306,627 100,265,735 89,478,402 10,787,333 Real estate loans—total.................................................................................................................................................... Construction loans.......................................................................................................................................................... Secured by farmland.............................................................................................................................................. 91,626,048 95,217,878 85,110,267 10,107,611 Secured by residential properties: Secured by 1— to 4—family residential properties: Insured by Federal Housing Administration................................................................................. Guaranteed by Veterans Administration....................................................................................... Not insured or guaranteed by FHA or VA.......................................................................................... Secured by multifamily (5 or more) residential properties: Insured by Federal Housing Administration.......................................................................................... Not insured by FHA........................................................................................................................................... Secured by other properties..................................................................................................................................... Loans to domestic commercial and foreign banks................................................................................................ Loans to other financial institutions............................................................................................................................. Loans to brokers and dealers in securities.............................................................................................................. Other loans for purchasing or carrying securities.................................................................................................. Loans to farmers (excluding loans on real estate)................................................................................................ Commercial and industrial lo ans.................................................................................................................................. 81,926.715 9,699,333 1,444,577 46,659 1,300,404 37,929 144.173 8.730 1,687,918 48,193 1,506,918 38,425 181.000 9.768 11,062,735 11,992,407 36,769,505 10,411,496 11,028,650 30.636,633 651.239 963,757 6.132.872 10,835,874 11,895,197 40,017,561 10,221.738 10.941.774 33.464.642 614.136 953.423 6.552.919 2.969,710 12,305,885 15,034,570 2.938.085 11.720.942 13.852.576 31,625 584,943 1,181.994 2,970,824 12,320,741 15,441,570 2.940.909 11.780.535 14.215.326 29.915 540.206 1.226.244 11,351 66,063 0 1,825 1,318 420,628 11,351 65,890 0 1,293 1,318 410,855 0 173 0 532 0 9,773 97,670 117,426 2,000 2,278 1,167 385,176 97,670 117,296 2,000 1,688 1,167 375,396 0 130 0 590 0 9,780 FEDERAL DEPOSIT INSURANCE CORPORATION Total Loans to individuals for personal expenditures........... All other loans (icluding overdrafts) ........................................................................................................................ 3,783,043 104,768 3,216,884 74,111 566,159 30,657 4,328,283 113,857 3,685,543 87,375 642,740 26,482 146,915.676 131,986,289 14.929,387 150,238,170 134.914.851 15,323,319 1,355,659 465,477 140,785 2,089,878 1.206,642 420,531 121,155 1,957,515 149,017 44,946 19,630 132,363 1,423,555 430,301 138,106 2,206,423 1,266,509 382,005 119,910 2,098,549 157,046 48.296 18,196 107,874 Total liabilities and surplus acco un ts.............................................................................................................. 153,165,725 137,667,745 15,497,980 158,216,204 142,352,794 15,863,410 Deposits— t o ta l.................................................................................................................................................. 139,657,342 125,700,097 13,957,245 143,684,179 129,449,932 14,234,247 Savings and time deposits —to ta l.............................................................................................................................. Savings deposits........................................................................................................................................................... Deposits accumulated for payment of personal loans................................................................................ Fixed maturity and other time deposits.......................................................................................................... Demand deposits—total.................................................................................................................................................. 137,824,190 123,939,877 13,884,313 141,778,046 127,600,309 14,177,737 8294,642 0 5,589,671 72,340,668 37 69,437,341 64,291.598 37 63,308,674 1,833,152 1,760,220 72,932 1,906,133 1,849,623 56,510 Miscellaneous lia bilities— t o t a l................................................................................................................... 3,004,951 2,673,337 331.614 3,633,409 3,250,493 382,916 Securities sold under agreements to repurchase................................................................................................. Other borrowings................................................................................................................................................................. Other liabilities.................................................................................................................................................................... 436,104 732,668 1,836,179 433,960 709,259 1,530,118 2,144 23,409 306,061 594,397 1,076,612 1,962,400 578,706 1,025,607 1,646,180 15,691 51,005 316,220 77,946,128 1 59,878,061 69,651,486 1 54,288,390 8,049,070 0 6,128,667 Total liabilities..................................................................................................................................... 142,662,293 128,373,434 14,288.859 147,317,588 132,700,425 14,617,163 Minority interest in consolidated subsidiaries.......................................................................................... 60 60 0 122 60 62 Surplus accounts— total................................................................................................................................... 10,503,372 9,294.251 1,209,121 10,898,494 9.652.309 1,246,185 Capital notes and debentures....................................................................................................................................... Other surplus accounts..................................................................................................................................................... 350,601 10,152,771 350,017 8,944,234 584 1,208,537 353,956 10,544,538 353,956 9,298,353 0 1,246,185 1.4 11.6 19.4 1.4 11.5 19.9 1.4 12.3 15.4 2.4 11.4 18.8 2.5 11.4 19.2 1.3 11.5 15.7 64.9 2.6 6.9 64.5 2.7 6.8 68.7 2.2 7.8 64.7 2.7 6.9 64.2 2.7 6.8 69.5 2.1 7.9 PERCENTAGES Of total assets: Cash and balances with other banks........................................................................................................................ U.S. Government and agency securities........................................................................................................................ Other securities......................................................................................................................................................................... Loans (including federal funds sold and securities purchased under agreements to resell).................................................................................................................................................. Other a ssets............................................................................................................................................................................... Total surplus accounts........................................................................................................................................................ ASSETS AND LIABILITIES OF BANKS Total loans and s e c u r it ie s .............................................................................................................. Bank premises, furniture and fixtures, and other assets representing bank premises.......................... Real estate owned other than bank premises....................................................................................................... Investments in subsidiaries not consolidated.......................................................................................................... Other a sse ts......................................................................................................................................................................... Of total assets other than cash and U.S. Government obligations: Total surplus accounts........................................................................................................................................................... 7.9 7.8 9.0 8.0 7.9 9.0 Number of banks............................................................................................................................................................................ 467 324 143 465 325 140 151 152 Table 109. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER CALL DATES, 1 9 7 3 -1 9 7 8 (Amounts in thousands of dollars) Asset, liability, or expense item Dec. 31. 19732 Dec. 31, 19742 Dec. 31, 19752 Dec. 31, 1976 Dec. 31, 1977 Dec. 31, 1978 820,689.664 899,056,643 938,888,209 1,011,273,832 1,137,794,616 1,273,189,105 Cash and due from banks— total.................................................................................. 116,940.118 126,069,289 129,022,793 130,210,127 160,382,169 178,327,313 Cash items in process of collection.................................................................................... Demand balances with commercial banks in the United States............................. All other balances with depository institutions in the U.S. and with banks in foreign countries....................................................................................................................... Balances with Federal Reserve Banks................................................................................. Currency and coin.......................................................................................................................... 44,662,237 30,129,625 47,279,797 34,399,470 47,332,735 32,168,664 48,368,126 33,022,240 66,451,288 39,238,490 75,291,809 42,572,323 3,558,726 27,820,742 10,768,788 5,546,812 27,116,210 11,727,000 10,387,072 26,779,065 12,355,257 10,664,363 25,964,340 12,191,058 11,351,612 29,339,126 14,001,653 10,493,618 34,398,107 15,571,456 Securities— total................................................................................................................ 188,230,007 193,877,525 227.831.583 249,964,940 258,404,575 268,777,856 U.S. Treasury securities............................................................................................................ Obligations of other U.S. Government agencies and corporations..................... Obligations of States and political subdivisions in the U.S.................................... All other securities..................................................................................................................... 55.293.390 27.537.760 91.227.221 14.171.636 51,867,904 31,090,271 96,771,409 14,147,941 81,008,162 33,285,855 100.801,799 12,735,767 96.884.312 34.324.587 103.505.149 15.250.892 95.960.613 35.812.026 112.898.620 13.733.316 89.699,426 42,316,375 123,510,734 13,251,321 Federal funds sold and securities purchased under agreements to resell . . . 34,379.920 38,944,238 37.361.788 45,855,864 49,881,414 48,755,878 Loans, net............................................................................................................................ 447.786,537 493,064,162 488.721,442 518,737,329 591,327,780 682,866,654 Plus: Allowances for possible loan losses......................................................................... Loans, total............................................................................................................................................ Plus: Unearned income on lo ans.......................................................................................... 5,274,856 453,061,393 6,694,937 5,871,660 498,935,822 7,258,209 6,070,344 494,791,786 7,489,884 6,195,279 524,932,608 12,625,341 694,793 598,022,573 14,702,996 7,714,708 690,581,362 17,726,870 Loans, g ro ss........................................................................................................................ 459.756.330 506,194,031 502,281,670 537,557.949 612,725,569 708.308,232 Real estate loans—total............................................................................................................ Construction and land development1............................................................................ Secured by farmland........................................................................................................... Secured by / — to 4—family residential properties......................................... Secured by multi-family (5 or more) residential properties............................. Secured by nonfarm nonrosidential properties....................................................... Loans to financial institutions................................................................................................... Loans for purchasing or carrying securities...................................................................... Loans to finance agricultural production and other loans to farmers.................... Commercial and industrial loans............................................................................................. Loans to individuals—total............................................................................................................ To purchase private passenger automobiles on instalment basis....................... Credit cards and related plans............................................................................................. To purchase mobile homes (excluding travel trailers)............................................... 118,789,396 131,739,920 136,196,154 150,986,919 178.632,320 213,625,237 0 5.419.112 67.794.978 6.922.145 38.653.161 0 6,030,121 74,580,012 7,543,920 43,585.867 0 6.370.212 77.029.917 5.899.737 46.896.288 17.347.914 6.718.186 81.110,248 4,440.412 41,370,159 21,389,331 7,730,264 96,757,037 4,907,100 47,848,588 27,269,354 8.480.930 118.476.776 5.723.046 53.675.131 39,695,760 11,925,517 17,149,902 158,690,504 100,393,366 45,204,515 9,187,663 18,226,897 184,074,531 103,692,681 38,967,664 10,879,410 20,138,952 175,946,906 106,848,796 35,848,326 15,088,146 23,216,369 178,635,361 118,863,153 36,816,981 17,110,918 25,713,073 197,076,515 141,257,446 43,459,007 14,380,222 28,191,763 223,243,865 167,675,391 33.480.736 9.130,563 8.380,191 32,942,938 11,126,994 9,001,883 33.509.251 12.351.630 8.667.742 39.824.875 14.430.339 8.737.928 49,861.799 18,475.596 9.125.428 61.051.302 24.496,572 9,734,878 25,647,787 27,631,598 29.099.650 31.549.012 35,852,029 41,853,614 23.754,089 22,989,268 23,220,523 24.320.999 27,942.594 30,539.025 14,067,824 13,303,788 14,919,675 16,118,316 17,732,747 725,885,925 753,914,813 814.558,133 899.613,769 1,000,400,388 All other instalment loans for household, family and other personal expenditures.................................................................................................................... Single payment loans for household, family and other personal expenditures........................................................................................................... All other loans . . Total loans and secu ritie s............. 13,111.885 670,396,464 FEDERAL DEPOSIT INSURANCE CORPORATION Total a s s e t s ............................................................................................................................. 2,136,002 3,056,755 4,413,014 5,119,280 5,810,261 7,657,996 12,788,824 433,997 17,994,259 14,288,523 811,239 28,944,912 15,598,231 1,909,555 34,029,803 16,702,977 2,894,011 41,789,304 18,344,595 3,095,496 50,548,326 20,551,097 2,475,901 63,776,410 Total liabilities and equity capital................................................................................... 820,689,664 899,056,643 938,888,209 1,011,273,832 1,137.794.616 1,273,189,105 Business and personal deposits— to ta l.................................................................... 557,465,547 606.374,826 647,239,798 697,387,703 777,177,835 857,642,324 Individuals, partnerships, and corporations—demand................................................. Individuals, partnerships, and corporations—savings................................................. Individuals and nonprofit organizations—savings................................................. Corporations and other profit organizations—savings1..................................... Individuals, partnerships, and corporations—time......................................................... Deposits accumulated for payment of personal loans—tim e.................................. Certified and officers' checks, travelers' checks, letters of credit —demand . . 233,115,295 127,775,141 237,069,468 136,074,273 247,869,290 160,653,632 256,806,660 197,660,954 287,843,595 215,197,708 309,347,998 216,503,446 Government deposits— t o t a l........................................................................................ United United United States States States States Government —demand.................................................................................... States Government —savings!................................................................................ States Government—time......................................................................................... and political subdivisions —demand..................................................................... and political subdivisions — savings"! .................................................................. and political subdivisions —time.............................................................................. All other deposits— total................................................................................................ Demand.............................................................................................................................................. Savings1 ........................................................................................................................................... Time................................................................................................................................................... 127,775,141 0 136,074,273 O 160,653,632 O 189.028.878 8.632.076 204.453.839 10.743.869 205,568,072 10,935374 185,200,805 513,460 10,860,846 222,482,603 369,690 10,378,792 227,691,785 279,512 10,745,579 231,211,673 144,385 11,564,031 259,896,427 100,303 14,139,802 316,146,234 109,598 15,535,048 73,661,450 74,215,373 70,707,733 71,946,030 84,641,977 88,240.496 9,886,922 0 440,649 18,747,431 0 44,586,448 4,822,299 0 500,147 18,706,776 0 50,186,151 3,126,631 0 588,481 18.879,180 0 48,113,441 3,042,572 56,735 686,053 17,989,214 6,050,857 44,120,599 7,341,318 58,209 828,852 19,208,773 4,789,442 52,415,383 2,725,862 82,733 866,499 19,202,176 4,298,654 61,064,572 50,494,156 65,522,043 63,078.870 61.593,152 67,453,933 70,501,728 36,497,159 0 13,996,997 43,322,732 O 22,199,311 40,800,386 0 21,998,972 44.566.366 113.672 16.913.114 50.222.044 28.235 17.203.654 53.474.157 43.766 16,983,805 Total deposits.................................................................................................................... 681,621,153 746,112,242 780,746,889 830,926,885 929.273,745 1,016,384,548 Demand.............................................................................................................................................. Savings............................................................................................................................................. Time................................................................................................................................................... 309,107,653 127,775,141 244,738,359 314,300,067 136,074,273 295,737,902 321,421,066 160,653.632 298,672,191 333.968.843 203,882,218 293.075.824 378.755.532 220.073.594 330.444,619 400.285,241 220,928.599 395,170,708 Miscellaneous liabilities— total................................................................................... 79,820,189 88,107,647 87,786.577 102.975,877 123,501,267 163,522,078 Federal funds purchased and securities sold under agreements to repurchase. Interest bearing demand notes issued to the U.S. Treasury and other liabilities for borrowed money...................................................................................... Mortgage indebtedness and liability for capitalized le ases............................... All other liabilities................................................................................................................. 50,469,996 51,217,439 52,189,647 70,298,626 82,952,495 91,291,670 7,118,442 771,519 21,460,232 4,814,560 725,190 31,350,458 4,604,259 775,396 30,217,275 5,080,647 804,996 26,791,608 6,694,413 1,038,857 32,815,502 22,791,813 2,035,029 47,403,566 1,179,906,626 Total liabilities (excluding subordinated notes and debentures)............. 761,441,342 834,219,889 868,533,466 933,902,762 1,052,775,012 Subordinated notes and debentures....................................................................... 4,117,351 4,258,989 4,398,892 5,122,527 5,739,194 5,864,838 Equity capital— total................................................................................................... 55,130,971 60,577,765 65,955,851 72,248.543 79,280,410 Preferred stock—par value....................................................................................... Common stock— par value......................................................................................... Surplus............................................................................................................................... Undivided profits and reserve for contingencies and other capital reserves.................................................................................................................................. 87.417.641 65,650 13,846,071 23,593,350 43,460 14,788,893 25,312,574 47,881 15,565,026 26,706,053 67,328 16,221,264 28,894,323 98,791 17,265,237 31,085,492 113,851 18,157,997 33,202,557 17,625,900 20,432,838 23,636,891 27,065,628 30,830,890 35,943,236 153 ASSETS AND LIABILITIES OF BANKS Lease financing receivables.................................................................................................. Bank premises, furniture and fixtures, and other assets representing bank premises........................................................................................................................................... Real estate owned other than bank premises........................................................................ All other a ssets.................................................................................................................................. 154 Table 109. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER CALL DATES, 1 9 7 3 - 1 978-CONTINUED (Amounts in thousands of dollars) Asset, liability, or expense item Dec. 31. 19732 Dec. 31, 19742 Dec. 31. 19752 Dec. 31, 1976 Dec. 31, 1977 Dec. 31, 1978 PERCENTAGES Of total assets: 14.25 14.02 13.74 12.88 14.10 14.01 10.09 12.84 9.23 12.34 12.17 12.09 12.97 11.74 11.58 11.13 10.37 10.74 59.39 3.42 6.72 59.83 4.59 6.74 56.68 5.31 7.02 56.44 5.96 7.14 56.94 6.25 6.97 58.07 6.81 6.87 Of total assets other than cash and U.S. Treasury securities: Total equity capital.............. .............................................................................................................. 8.50 8.40 9.05 9.21 8.99 8.70 Number of banks at end of period................................................................................................... 13,976 14,228 14,384 14,411 14,412 14,391 1Not available before 1976. 2Where possible, figures are restated to reflect current reporting requirements. For amounts on an "as reported" basis, see Annual Reports of prior years. FEDERAL DEPOSIT INSURANCE CORPORATION Cash and due from depository institutions......................................................................... U.S. Treasury securities and obligations of other U.S. Goverment agencies and corporations............................................................................................................................. All other securities............................................................................................................................. Loans (including federal funds sold and securities purchased under agreements to resell)........................................................................................................................................... All other a sse ts................................................................................................................................... Total equity capital............................................................................................................................. Table 110. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS (DOMESTIC AND FOREIGN OFFICES), UNITED STATES AND OTHER AREAS, 1 9 7 4 -1 9 7 7 Dec. 31, 1974 Dec. 31, 1975 Dec. 31, 1976 June 30, 1977 Dec. 31, 19771 Total assets..................................................................................................................... 1,045,972,427 1,095,388,957 1,182,390,845 1,228,366,375 1,339,393,026 Cash and due from banks....................................................................................................................................... 178,295,259 189,406,997 203,772,449 208,283,772 242,983,142 Securities—total......................................................................................................................................................... U.S. Treasury securities.................................................................................................................................... Obligations of U.S. Government agencies and corporations............................................................ Obligations of States and political subdivisions................................................................................... Other bonds, notes, and debentures.......................................................................................................... Corporate stock...................................................................................................................................................... Trading account securities.............................................................................................................................. 197,019,318 231,527,434 254,383,382 259,474,871 264,525.796 51,886,435 31,088,271 96,800,855 80,963,492 33,281,405 100,873,178 9.201,132 10.710,644 96,874,136 34,323,582 103,588,597 9,594,671 1.750,989 8.251.407 97,233,796 34,389,521 108,720,777 9,864,455 1,809,269 7,457,053 96,026,151 35,818,251 113,019,592 10,542,996 1,853,806 7,265,000 Federal funds sold and securities purchased under agreements to resell........................................ 39,005,103 Direct lease financing................................................................................................................................. Bank premises, furniture and fixtures, and assets representing bank premises......................... Real estate owned other than bank premises......................................................................................... Investments in unconsolidated subsidiares and associated companies............................................. Customers liability on acceptances outstanding........................................................................................... Other a ss e ts......................................................................................................................................................... 580,596,623 36,992,511 45,861,131 40,899,161 49,845,033 586,055,773 620,866,854 6,347,839 627,214.693 656,224,103 6,674,638 662,898,741 715,851,991 6,894,344 722,746,335 3,273,680 4,054,812 5.816,434 6,186,765 6,977,301 14,674,995 16,054,291 17,242,930 17,944,356 19,010,491 828,853 1,935.839 2,974,073 3,162,192 3,134,042 750,218 10,632,747 789,718 954,500 941,211 987,244 7,095,983 11,864,784 14,433,352 14,280,877 20,895,631 21,475,599 18,654,308 20,816,592 21,797,109 1,045,972,427 1,095,388,957 1,182,390,845 1,228,366,375 1,339,393,026 Total deposits........................................................................................................................................................... 871,225,194 Federal funds purchased and securities sold under agreements to repurchase......................... Total liabilities and equity capital.................................................................................... 915,856,039 991,913,006 1,022,062,067 1,116,617,556 50,980,062 52,609,050 70,435,494 75,820,815 83,315,006 Other liabilities for borrowed money................................................................................................................ 8.368,159 7,934,301 9,510,108 11,563,041 Mortgage indebtedness............................................................................................................................................. 725,166 774.450 826,196 856,439 1,048,297 14,131,257 11.291,867 12,048,179 14,594,467 14,432,321 Acceptances executed and outstanding.......................................................................................................... Other liab ilities........................................................................................................................................................... Total liabilities (excluding subordinated notes and debentures)................................................... 13,146,839 28,426,938 29,031.187 20,171,609 22,334,880 25,711,530 973,856,776 1,017,496,894 1,104,904,592 1,147,231,709 1,254,271,549 Subordinated notes and debentures................................................................................................................... Reserves on loans and securities—tota|2....................................................................................................... Reserve for losses on loans............................................................................................................................ Other reserves on loans.................................................................................................................................... Reserves on securities................................................................................................................... 4,261,373 4,422,484 5,220,566 5,450,465 5,830,565 8,779,607 9,193,375 8.466.353 144,446 168,808 8,791,680 212,260 189,435 Equity capital —to ta l................................................................................................................................................ 59,074,671 72,265,687 75,684,201 79,290,912 64,276,204 ASSETS AND LIABILITIES OF BANKS Loans, total.................................................................................................................................................................... 5,698,715 8.042,625 Memoranda Standby letters of credit outstanding3................................... Time certificates of $100,000 or more;3 Time certificates of deposit.............................................................................. Other time deposits...................................................................................................................... Number of banks.............................................................................................................................................................. 14,228 14,384 17,198,835 20,043,593 112,053,745 24,503.572 135,756,267 26,366,568 14,411 14,441 14,412 155 1 For more detailed 1 9 7 7 data, see Assets and Liabilities, Commercial and Mutual Savings Banks, December 31, 1977. 2Changes in the reporting of loan losses beginning in 1 9 7 6 are discussed on page 142. 3Data not available prior to 1 9 7 6 . 16,410,420 114,172,181 23,307,985 156 Table 110A. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS (DOMESTIC AND FOREIGN OFFICES). UNITED STATES AND OTHER AREAS, DECEMBER 31, 1978' Banks with foreign offices Foreign offices and Edge and agreement subsidiaries Domestic offices Consolidated reports Consolidated Total — Columns 1 and 4 Total Assets ................................................................................................................................................. 660.586,728 239,209,434 608.421,045 847.630.479 1,508.217.207 Cash and due from depository institutions........................................................................................................... Cash items in process of collection and unposted debits........................................................................ Demand balances with commercial banks in the U.S................................................................................. Time and savings balances with commercial banks in U.S..................................................................... Balances with other depository institutions in the U.S.............................................................................. Balances with banks in foreign countries........................................................................................................ With foreign branches of other U.S. banks............................................................................................... With other banks in foreign countries........................................................................................................ Balances with central banks.................................................................................................................................. Balances with Federal Reserve banks........................................................................................................ Balances with other central banks................................................................................................................. Currency and coin....................................................................................................................................................... 71,047,051 17,115,855 25,597,499 2,673,411 2,063,973 1,347.451 N/A N/A 12,553,829 12,553,829 N/A 9,695.033 96,181,149 1,883,165 4,610,696 1,118,505 230,887 83,642,267 18,391,587 65,250.680 4,459,660 566,068 3,893,592 235,969 106,832.727 58,020.871 16,959,173 983.473 75,165 3,080.125 529,493 2,550,632 21,866,740 21,844,206 22,534 5,847,180 203,013,876 59.904,036 21,569,869 2,101.978 306,052 86,722,392 18,921,080 67,801,312 26.326,400 22,410,274 3,916,126 6,083,149 274,060,927 77,019,891 47,167,368 4,775,389 2,370,025 88,069,843 N/A N/A 38,880,229 34,964,103 N/A 15,778.182 Securities— to tal......................................................................................................................................... 174,474.133 7,724,550 94,121,950 101,846.500 276.320.633 U.S. Treasury securities........................................................................................................................................... Obligations of U.S. Government agencies and corporations.................................................................. Obligations of States and political subdivisions.......................................................................................... Other bonds, notes, and debentures.................................................................................................................... Corporate stock............................................................................................................................................................ Trading account securities..................................................................................................................................... 59,070,019 30,077,067 80,683,209 3,836,329 483,294 324,215 41,607 4,278 203,293 6,611,403 171,520 692,449 30,629,407 12,239,201 42,645,915 1,544,865 954,465 6,108,097 30,671,014 12,243,479 42,849,208 8.156,268 1,125,985 6,800,546 89.741.033 42.320,546 123,532,417 11,992,597 1,609,279 7,124,761 Federal funds sold and securities purchased under agreements to resell................................. Less: reserve for possible loan losses.............................................................................................................. Loans, total........................................................................................................................................................................... Less: unearned income on loans.......................................................................................................................... Loans, gross........................................................................................................................................................................ Real estate loans (including only loans secured primarily by real estate)..................................... Loans to financial institutions............................................................................................................................... To real estate investment trusts and mortgage companies............................................................... To commercial banks in the U.S..................................................................................................................... To U.S. branches and agencies of foreign b anks........................................................................... To other commercial banks in the U.S................................................................................................... To banks in foreign countries......................................................................................................................... To foreign branches of other U.S. banks............................................................................................. To other banks in foreign countries........................................................................................................ To finance companies in the U.S................................................................................................................... To other financial institutions......................................................................................................................... Loans for purchasing or carrying securitites (secured and unsecured).............................................. Loans to farmers......................................................................................................................................................... Commercial and industrial loans (except those secured primarily by real estate)....................... To U.S. addressees (domicile)....................................................................................................................... To non-U.S. addressees (domicile).............................................................................................................. Loans to individuals for household, family and other personal expenditures................................ All other lo ans............................................................................................................................................................ Loans to foreign government and official institutions........................................................................ Other loans............................................................................................................................................................... Direct lease financing.................................................................................................................................................... Bank premises, furniture and fixtures, and other assets representing bank premises. . . Real estate owned other than bank premises................................................................... 24,919,434 199,066 23,809,210 24,008,276 48,927,710 366,064,370 143,903,749 314,040,754 457.944.503 824.008.873 3,575,398 369,639,768 12,473,258 382,113,026 138,175,458 4,505,362 1,095,496 560,278 N/A N/A 228,130 N/A N/A 633,144 1,988,314 2,574,469 23.951.853 93.274,518 N/A N/A 113,376,495 6,254,872 N/A N/A 1,696,007 242,417 144.146,166 1,026,444 145,172,608 4,335,879 22,780,815 80,891 2,348,304 447,723 1,900,581 15,540,309 377,057 15,163,252 284,177 4,527,134 961.145 455.782 85,542,095 3.379.190 82,162,905 4,787,396 26,309.497 22,991,591 3.317,906 1,405,246 4,138,994 318,179,748 5,175.576 323.355,326 74.579.460 38,812,812 7,218.826 4,202,316 1,670,141 2,532,175 9,922,082 466,657 9,455.425 8,066,647 9,402,941 11,805,591 4,238,840 128,818,212 119,830,128 8.988,084 53,740,786 11,359,623 2,429,658 8,929,965 5,955.448 4,381,411 462,325.914 6,202,020 468,527,934 78,915,339 61,593,628 7,299,717 6,550,620 2,117,864 4,432,756 25.462,391 843,714 24,618,677 8,350,825 13.930,075 12,766,736 4,694,622 214,360.307 123,209.318 91,150.989 58,528,182 37.669.120 25,421,249 12,247,871 7,360,694 7,956,809 831,965,682 18,675,278 850,640,960 217,090,797 66,098,990 8,395,213 7,110,898 N/A N/A 25,690,521 N/A N/A 8,983,969 15,918,389 15,341,205 28,646,475 307,634,824 N/A N/A 171,904,677 43,923,992 N/A N/A 9,056,701 12,363,283 824,681 8,149,433 8,974,114 21,337,397 922,603 119,810 1,464,912 1,584,722 2,507,325 FEDERAL DEPOSIT INSURANCE CORPORATION Domestic only banks and reporting branches Investments in unconsolidated subsidiaries and associated companies................................................ Customer's liability of acceptances outstanding............................................................................................... 47,549 -1 ,337,566 2,361,274 1,023,708 1,071,257 343,721 3,797,994 18,657,383 22,455,377 22,799,098 8,708,577 -13,609,245 33,027,954 19,418,709 28,127,286 660,586,728 239,209.434 608,421,045 847,630.479 1,508,217,207 Total deposits.............................................................................................................................................................. Individuals, partnerships and corporations.............................................................................................. Demand.............................................................................................................................................................. Savings.............................................................................................................................................................. T im e .................................................................................................................................................................... U.S. Government................................................................................................................................................... Demand.............................................................................................................................................................. Savings.............................................................................................................................................................. T im e .................................................................................................................................................................... States and political subdivisions in the U.S............................................................................................. Demand.............................................................................................................................................................. Savings.............................................................................................................................................................. T im e .................................................................................................................................................................... Foreign governments and official institutions......................................................................................... Demand.............................................................................................................................................................. Savings.............................................................................................................................................................. T im e .................................................................................................................................................................... Deposits of commercial banks in the U.S.................................................................................................. Demand.............................................................................................................................................................. Savings.............................................................................................................................................................. T im e .................................................................................................................................................................... Deposits of banks in foreign countries....................................................................................................... Demand.............................................................................................................................................................. Savings.............................................................................................................................................................. T im e .................................................................................................................................................................... All other deposits................................................................................................................................................ Demand.............................................................................................................................................................. Savings.............................................................................................................................................................. T im e ................................................................................................................................................................. 573,201,984 496,960,075 171,258,720 146,437,961 179,263,394 2,067,676 1.629,925 56,212 381,545 57,227,388 14,275,286 3,566,455 39,385,647 155,951 40,300 1.139 114,515 8,679,749 7,147,904 3,188 1,528,657 475,196 228,107 0 247,089 983,252 719,797 22,729 240,726 220,619,569 68,307,952 N/A N/A N/A 203,789 N/A N/A N/A 225,363 N/A N/A N/A 33,490,372 N/A N/A N/A 15,696.373 N/A N/A N/A 99,950,405 N/A N/A N/A N/A N/A N/A N/A 439,811,012 342,052,178 137,446,898 69,656,522 134,948,758 1,590,578 1,079,468 26.456 484,654 27,145,004 4,876,954 714,585 21,553,465 8,128,766 1,797,711 16,101 6,314,954 42,652,868 35,310,734 414 7,341,720 9,404,204 8.222,583 195 1,181,426 N/A N/A N/A N/A 660,430,581 410,360,130 N/A N/A N/A 1,794,367 N/A N/A N/A 27,370,367 N/A N/A N/A 41,619,138 N/A N/A N/A 58,349,241 N/A N/A N/A 109,354,609 N/A N/A N/A N/A N/A N/A N/A 1,233,632,565 907,320,205 N/A N/A N/A 3,862,043 N/A N/A N/A 84,597,755 N/A N/A N/A 41,775,089 N/A N/A N/A 67,028,990 N/A N/A N/A 109,829,805 N/A N/A N/A 983,252 N/A N/A N/A Certified and officers checks, travelers checks, and letters of credit sold for cash. . . Federal funds purchased and securities sold under agreements to repurchase . . Interest bearing demand notes and other liabilities for borrowed money. . 6,652,697 2,745,315 8,837,414 11.582,729 18,235,426 21,137,970 109,666 70,153,700 70,263,366 91,401,336 32,968,855 6,218,268 10,181,142 16,569.445 26,750,587 Mortgage indebtedness................................... 905,452 43,135 1,128,767 1,171,902 2,077,354 Acceptarces executed and outstanding . . 344.036 3,838,014 18,839.318 22,677,332 23,021,368 Other liabilities................................................. Total liabilities (excluding subordinated notes and debentures) . . Subordinated notes and debentures. . 7,591,874 4,100,385 19,823,468 23,923,853 31,515,727 609,399.584 238,891,911 566,325,710 805.217,621 1,414,617,205 2,575,147 Equity capital— to ta l.................................................................. 293,832 3,289,691 3,583,523 6,158,670 48,611,997 23,691 38,805,644 38.829.335 87,441,332 2,428,292 6,852,521 16,438,715 23,291,236 25,719,528 67,456,718 9,423,712 N/A N/A 110,068,449 17,139,007 N/A N/A N/A N/A 155 - 14,391 19 ASSETS AND LIABILITIES OF BANKS Other assets....................................................................................................................................................................... Total liabilities and equity c a p ita l....................................................................................................... Memoranda Standby letters of credit outstanding. . . . Time certificates of 8100,000 or more: Time certificates of deposits................................ Other time deposits............................................................................................................................ 1Totals for items that are not explicitly reported are derived mathematically. Digitized N/A for FRASER Not available. 14,236 19 _ - 157 Number of banks.............................................................................................................................................................. Number of reporting branches.................................................................................................................................... 158 Table 111. ASSETS AND LIABILITIES OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER CALL DATES, 1 9 7 3 -1 9 7 8 (Amounts in thousands of dollars) Dec. 31, 1974 Dec. 31, 1975 Dec. 31, 1976 Dec. 31, 1977 Dec. 31. 1978 Total a s s e t s .......................................................................................................................................................... 93,012,515 95,589,401 107,280,765 120,839,827 132,201,371 142,352,794 Cash, balances with banks, and collection item s— t o t a l................................................................. 1,847,776 2,053,353 2.195,390 2,188,926 2,214,478 3,570,970 Currency and coin............................................................................................................................................................ Demand balances with banks in the United States......................................................................................... Other balances with banks in the United States............................................................................................... Cash items in process of collection...................................................................................................................... 226,905 711,172 817,495 92,204 268,102 683,943 1,022,757 78,551 308,887 706,116 1,091,274 89,113 338,001 925,344 807,240 118,341 386.038 761,624 922,001 144,815 411,640 861,088 2,136,238 162,004 Securities— total.............................................................................................................................................. 21,871,412 22,684,614 30,421,034 37,984.627 42.219.724 43,546,458 United States Government and agency securities—total.............................................................................. Securities maturing in 1 year or less........................................................................................................... Securities maturing in 1 to 5 years............................................................................................................. Securities maturing in 5 to 10 years............................................................................................................. Securities maturing after 10 years................................................................................................................ 5,971,200 5,967,835 9,468,682 13,194,506 15.496,605 16,215,435 831,719 1.513,476 789,936 2,836,069 712.274 1.604.165 694.251 2.957.145 1.312.116 2.761.242 1.167.218 4.228.106 State, county, and municipal obligations............................................................................................................. Corporate bonds............................................................................................................................................................... Other bonds, notes, and debentures...................................................................................................................... 907,013 10,026,920 1,713,867 882,620 10,560,303 1,856,557 3,252,412 3,417,299 3,630,475 364,066 2,888,346 348.290 3.069.009 374.851 3.255.624 ....................................................... Corporate stock—to ta l Bank................................................................................................................................................................................ Other.............................................................................................................................................................................. 1,488,631 13,503,561 2,329,685 1.981.205 3.237.461 1.383.006 6.592.834 2,301,574 15.781,623 3,019,191 1.857.506 3.427.509 1.751,417 8.460.173 1,371.969 3.270.419 1.517.745 10.055,302 2,770,854 16,449,941 3,503,057 16,376,504 3,297,215 3,587,862 3,687,733 3,999,267 4,069,442 387,161 3.300.572 409.239 3.590.028 387.736 3.681.706 Federal funds sold and securities purchased under agreements to r e s e ll ................................... 1,252,753 964,856 897,063 1,322,316 1,880,491 1,889,991 Other loans— t o t a l ......................................................................................................................................... 6 5 ,8 70 ,71 4 6 7 ,4 4 9 ,2 1 7 7 0 ,8 1 2 ,0 4 0 7 5 .9 9 0 ,4 2 2 8 2 ,3 0 7 ,7 9 5 8 9 ,4 7 8 ,4 0 2 Real estate loans—total............................................................................................................................................. Construction loans................................................................................................................................................... Secured by farmland............................................................................................................................................. 63,946,513 65,339,748 68,371,859 72,820,626 78,739,467 85,110,267 1,090,262 51,160 821.250 49.185 824.494 48.239 854,499 46,364 1.117.143 39.101 1.506.918 38.425 12,828,775 11,728,249 17,087,533 12.052.069 11.501.239 18.275.751 11.587.451 11.342.670 20.123.915 11,147.343 11.221.051 23.393.029 10.587.327 11.027,870 28.437.445 10.221.738 10.941.774 33.464.642 1.523,751 9,416,887 10.219.896 1.688.126 10.076.268 10.875.860 1.949.245 10,693.613 11.802.232 2.428.166 10.874.242 12.855.932 2,695,114 11,360,282 13,475,185 2.940.909 11.780.535 14.215.326 Loans to brokers and dealers in securities..................................................................................................... Other loans for purchasing or carrying securities...................................................................................... Loans to farmers (excluding loans on real estate)................................................................................... Commercial and industrial loans......................................................................................................................... Loans to individuals for personal expenditures............................................................................................ All other loans (including overdrafts).............................................................................................................. 13,679 29,473 4,441 2,221 1,323 173,322 1,665,365 34,377 18,339 26,324 743 930 1,416 175,360 1,812,329 74,028 25,275 32,714 0 1,480 1,456 288,976 2,052,147 38,133 26,955 57,234 0 1,494 918 599,849 2,412,478 70,868 10,254 56,679 30,000 1,285 1,407 506,372 2,892,234 70,097 97,670 117,296 2,000 1,688 1,167 375,396 3,685,543 87,375 Total loans and securities............................................................................................................. 88,994,879 91,098,687 102,130,137 115,297,365 126,408,010 134,914,851 Secured by residential properties: Secured by 1— to 4—family residential properties: Insured by Federal Housing Administration................................................................................... Guaranteed by Veterans Administration............................................................................................ Not insured or guaranteed by FHA or VA Secured by multifamily (5 or more) residential properties: Insured by Federal Housing Administration Not insured by FHA..................................................................................................................................... Secured by other properties ................................. ................................ .............................................. Loans to domestic commercial and foreign banks................................. Loans to other financial institutions........................................... FEDERAL DEPOSIT INSURANCE CORPORATION Dec. 31, 1973 Asset, liability, or surplus account item Bank premises, furniture and fixtures, and other assets representing bank premises......................... Real estate owned other than bank premises.......................................................................................................... Investments in subsidiaries not consolidated.......................................................................................................... Other assets............................................................................................................................................................................. 760,289 180,671 64,883 1,164,017 857,879 233,775 82,292 1,263,415 963,664 418,233 94,253 1.479,088 1,063,867 490,059 112,754 1,686,856 1,161.551 444,012 115,357 1,857,963 1,266,509 382,005 119,910 2,098,549 Total liabilities and surplus a c c o u n ts ......................................................................................................... 93,012.515 95,589,401 107,280,765 120,839.827 132,201,371 142,352.794 Deposits— total............................................................................................................................................... 84,890,128 86,814,415 98,126,107 110,998,759 121,265,988 129,449,932 Savings and time deposits—total........................................................................................................................... Savings deposits..................................................................................................................................................... Deposits accumulated for payment of personal loans.......................................................................... Fixed maturity and other time deposits....................................................................................................... Demand deposits—t o ta l............................................................................................................................................. 84,008,571 85,904,825 97,133,340 109,895,767 119,734,061 127,600,309 57,591.849 476 26.416.246 56.497.626 295 29.406.904 62.050.661 430 35.082.249 881,557 909,590 992,767 1,102.992 1,531,927 1,849,623 M iscellaneous liabilities— total................................................................................................................. 1,609,538 1,952,443 1,815,359 1,865,047 2,125.609 3,250,493 Securities sold under agreements to repurchase.............................................................................................. Other borrowings........................................................................................................................................................... Other liabilities................................................................................................................................................................. 26,089 445,901 1,137,548 217,561 667,256 1,067,626 108,715 465,279 1,241,365 69.118 356,329 1,439,600 169,166 483,710 1,472,733 578,706 1,025,607 1,646,180 132,700,425 67.295.029 1 42,600.737 70.382.619 19 49.351.423 64.291.598 37 63.303.674 86,499,666 88,766,858 99,941,466 112,863,806 123,391,597 0 0 70 61 61 60 Surplus accounts— t o t a l.............................................................................................................................. 6,512,849 6,822,543 7,339,229 7,975,960 8,809,713 9,652,309 Capital notes and debentures.................................................................................................................................... Other surplus accounts............................................................................................................................................... 114,953 6,397,896 169,460 6,653,083 190,279 7,148,950 213,264 7,762,696 353,386 8,456,327 353,956 9,298,353 2.0 6.4 17.1 72.2 2.3 7.0 2.1 6.2 17.5 71.6 2.5 7.1 2.0 19.5 66.8 2.8 6.8 1.8 10.9 20.5 64.0 2.8 6.6 1.7 11.7 20.2 63.7 2.7 6.7 2.5 11.4 19.2 64.2 2.7 6.8 PERCENTAGES Of total assets: Cash and balances with other banks........................................................................................................................... U.S. Government and agency securities..................................................................................................................... Other securities.................................................................................................................................................................... Loans (including federal funds sold and securities purchased under agreements to resell).............. Other assets............................................................................................................................................................................. Total surplus accounts........................................................................................................................................................ 8.8 Of total assets other than cash and U.S. Government and agency securities: Total surplus accounts........................................................................................................................................................ 7.6 7.8 7.7 7.6 7.7 7.9 Number of banks....................................................................................................................................................................... 322 320 329 329 323 325 159 ASSETS AND LIABILITIES OF BANKS Total lia b ilitie s................................................................................................................................ Minority interest in consolidated subsidiaries..................................................................................... 160 Table 112. PERCENTAGES OF ASSETS, LIABILITIES, AND EQUITY CAPITAL OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1978 IN THE UNITED STATES (STATES AND OTHER AREAS) DECEMBER 31, 1978 BANKS GROUPED BY AMOUNT OF ASSETS Banks with assets of — Asset, liability, or equity capital item Total a s s e t s .............................................................................................. All banks Less than $5 million $5.0 million to $9.9 million $10.0 million to $24.9 million $25.0 million to $49.9 million $50.0 million to $99.9 million $100.0 million to $299.9 million $300.0 million to $499.9 million $500.0 million to $999.9 million $1.0 billion to $4.9 billion $5.0 billion or or more 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 14.0 7.1 10.5 15.2 9.2 12.8 9.0 10.1 9.1 .9.2 9.5 8.6 10.9 8.8 13.2 8.1 13.8 8.3 15.4 6.5 18.7 4.2 3.3 9.7 1.0 9.4 3.9 .6 8.1 7.1 .5 6.5 11.0 .5 5.0 13.1 .6 4.5 13.7 .7 4.3 13.3 .7 3.9 11.9 .9 3.0 11.4 1.1 2.6 9.2 1.0 1.6 5.5 1.7 3.8 7.0 5.1 3.9 3.2 2.9 3.4 4.5 5.0 4.9 3.2 Loans, n e t........................................................................................................... Unearned income on loans........................................................................... Allowance for possible loan losses.......................................................... Loans, gross........................................................................................................ Real estate loans....................................................................................... Loans to financial institutions............................................................. Loans for purchasing or carrying securities................................ 53.6 1.4 .6 55.6 51.1 1.4 .4 52.8 54.5 1.6 .4 57.5 56.0 1.9 .5 58.4 56.4 2.1 .5 59.0 56.7 2.1 .5 59.3 55.0 1.9 .6 57.5 53.3 1.7 .6 55.6 52.9 1.6 .6 55.1 53.1 1.1 .6 54.8 51.3 .7 .7 52.7 16.8 3.4 11 13.8 .1 .1 17.2 .1 .1 20.6 .1 .1 22.5 .2 .2 22.6 .3 .2 21.9 .6 .4 18.8 1.3 1.0 17.9 2.0 .9 14.7 4.2 1.1 11.2 7.5 2.4 2.2 17.5 16.2 7.3 14.2 8.7 9.5 10.4 5.6 11.8 2.9 14.3 1.4 15.7 1.1 16.5 .8 17.1 .8 19.3 .7 21.9 10.8 2.4 1.4 11.1 3.2 1.0 11.7 3.4 1.0 12.9 3.8 1.0 13.9 3.8 .9 14.4 3.7 .9 13.8 3.0 .8 13.4 2.7 .9 12.6 2.6 1.2 10.6 2.2 1.8 6.1 1.0 1.8 Loans to finance agricultural production and other loans to farmers.................................................................................... Commercial and industrial loans....................................................... Loans to individuals for household, family and other personal expenditures......................................................................... Single payment loans for personal expenditures....................... All other loans............................................................................................. All other a sse ts...................................... Total liabilities and equity capital..................................................... Deposits—total................................................................................................... Demand deposits................................................................................. Time and savings................................................................................. Individuals, partnerships, and corporations—demand.............. Individuals, partnerships, and corporations—time and savings U.S. Government.......................................................................................... States and political subdivisions.......................................................... Certified and officers' checks................................................................ All other deposits....................................................................................... 7.4 2.3 2.6 2.8 3.3 3.5 3.8 4.2 4.5 7.4 13.8 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 79.8 88.4 89.7 89.8 89.3 88.7 86.8 84.2 82.0 75.8 70.3 31.5 48.3 36.5 51.8 31.6 58.1 30.5 59.3 29.8 59.6 29.8 58.9 30.3 56.5 32.2 52.0 33.5 48.6 31.7 44.1 32.4 37.9 24.3 41.8 .3 6.6 1.2 5.6 32.6 45.0 .2 9.8 .7 .2 27.7 51.7 .3 8.9 .8 .2 26.6 53.2 .4 8.5 .9 .2 26.2 53.3 .3 8.3 1.0 .2 26.0 52.0 .3 8.7 1.0 .7 25.6 49.0 .3 9.1 1.0 1.9 26.0 44.3 .3 9.0 1.1 3.5 26.8 41.4 .3 8.0 1.3 4.2 24.9 37.6 .3 7.1 1.0 4.9 20.7 32.0 .2 2.9 1.7 12.8 Federal funds purchased and securities sold under agreements to repurchase................................................................ Interest-bearing demand notes issued to the U.S. Treasury and other liabilities for borrowed money......................................... All other liabilities^....................................................................................... Subordinated notes and debentures.......................................................... Equity capital...................................................................................................... 7.2 .3 .5 .7 1.0 1.5 3.3 5.6 7.5 11.0 11.6 1.8 3.7 .5 6.9 .0 .4 .1 10.9 .1 .5 .1 9.1 .2 .7 .2 8.3 .3 1.1 .2 7.9 .5 1.2 .3 7.5 .9 1.3 .5 7.1 1.4 1.4 .5 6.8 1.6 1.6 .6 6.4 2.4 3.6 .7 6.1 3.0 8.0 .4 6.5 Number of banks................................................................................................... 14,243 874 2,317 4,829 3,210 1,614 936 166 135 139 23 1Securities held in trading accounts are included in "O ther assets." 2|ncludes minority interest in consolidated subsidiaries. Note: For income and expense data by size of bank, see tables 118 and 119. Dollar amounts of assets and liabilities (in $000) of insured commercial banks by size of bank are contained in Assets and LiabilitiesCommercial and Mutual Savings Banks (with 1978 Report of Income), December 31, 1978. FEDERAL DEPOSIT INSURANCE CORPORATION 100.0% Cash and due from depository institutions............................................ U.S. Treasury securities!.............................................................................. Obligations of other U.S. Government agencies and corporations.......................................................................................... Obligations of States and political subdivisions'!............................. All other securities.......................................................................................... Federal funds sold and securities purchased under agreements to resell......................................................................... Table 113. PERCENTAGES OF ASSETS AND LIABILITIES OF INSURED MUTUAL SAVINGS BANKS OPERATING THROUGHOUT 1978 IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1978 BANKS GROUPED BY AMOUNT OF ASSETS Banks with assets of — Asset, liability, or surplus account item Total a s s e t s ................................................................................................................ All banksl Less than $10.0 million $10.0 million to $24.9 million $25.0 million to $49.9 million $50.0 million to $99.9 million $100.0 million to $299.9 million $300.0 million to $499.9 million $500.0 million to $999.9 million $1 billion or more 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 2.5 11.4 11.5 2.3 5.4 3.4 7.0 6.0 .0 4.4 2.2 13.1 6.3 1.3 4.7 2.6 8.7 6.1 .6 5.4 2.2 8.4 5.6 .6 5.0 2.4 10.3 7.0 1.3 5.0 2.6 12.0 7.3 1.2 4.0 2.5 12.7 9.3 2.2 5.2 2.5 11.4 14.3 2.9 5.8 1.3 3.5 1.6 1.7 1.4 1.3 1.9 1.5 1.2 Other loans and discounts....................................................................................... Real estate loans —total............................................................................................ Construction loans.................................................................................................. Secured by farmland.................................................................................... Secured by residential properties:............................................................... Insured by FHA.................................................................................................. Guaranteed by VA.................................................................................... Not insured or guaranteed by FHA or VA................................... Secured by other properties.............................................................................. Commercial and industrial lo a n s........................................................................... Loans to individuals for personal expenditures.................... All other loans including overdrafts............................................................. 62.9 59.8 73.6 65.7 69.3 63.4 72.5 66.7 74.3 68.3 70.1 66.2 68.6 64.6 63.7 60.3 59.2 56.8 .7 Other assets . . 1.1 .0 1.0 .7 .4 .6 1.2 .2 1.8 .2 1.9 .1 1.8 .0 1.0 .0 9.2 7.7 31.8 10.0 .6 .2 56.3 6.9 1.2 3.6 52.2 5.4 1.5 2.9 54.6 6.3 2.7 3.8 53.3 6.5 3.7 4.5 48.7 7.3 7.0 7.1 41.7 7.0 9.9 7.9 31.4 10.1 11.2 8.8 24.8 11.3 .3 2.6 .2 .3 7.6 .0 .5 5.2 .2 .1 5.6 .1 .3 5.5 .2 .1 3.6 .2 .3 3.5 .2 .2 3.1 .1 .3 1,8 .3 .0 2.7 2.2 1.5 2.4 2.5 2.6 2.4 2.9 2.7 Total liabilities and surplus acco un ts............................................................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Deposits —total................................................................................................................... Savings deposits........................................................................................................... Deposits accumulated for payment of personal loans............................... Fixed maturity and other time deposits......................................................... Demand deposits........................................................................................................... 90.9 91.3 90.5 90.7 90.9 90.9 90.8 45.2 .0 44.4 1.3 63.1 .0 28.0 .2 91.1 90.9 50.8 .0 38.9 .8 54.3 .0 35.3 1.1 50.2 .0 39.7 1.0 48.3 .0 41.5 1.1 45.1 .0 44.5 1.2 48.7 .0 40.9 1.5 42.9 .0 46.7 1.3 Miscellaneous liabilities . . 2.3 .1 1.5 1.4 1.5 1.9 2.3 2.0 2.5 Surplus accounts................................................................................................................. Capital notes and debentures................................................................................. Other surplus accounts............................................................................................ 6.8 8.6 8.0 7.9 6.9 6.6 1.3 7.3 .3 7.7 .2 7.7 7.2 ./ 6.9 2 6.6 7.6 ./ 7.5 7.1 .2 6.7 .2 6.7 .3 6.3 Number of banks...................................................................................................................... 325 3 12 29 77 98 31 35 40 ASSETS AND LIABILITIES OF BANKS 100.0% Cash and due from banks............................................................................................... United States Government and agency securities................................................. Corporate bonds........................................................................................................... State, county and municipal obligations.................................................................. Other securities.......................................................................................... Federal funds sold and securities purchased under........................................... agreements to resell........................................................................................................ ' Dollar amoonts of assets and liabilities (in $000) of insured mutual savings banks in Assets and Liabilities—Commercial and Mutual Savings Banks (with 1977 Report of Income). December 31, 1977. 161 162 Banks with assets of — Ratios (In percent) All banks Less than $5 million $5.0 million to $9.9 million 143 2,741 4,937 3,349 1,697 783 344 160 237 14 168 298 183 104 84 36 22 64 35 537 807 463 252 120 59 36 43 60 1,074 1,723 1,071 518 190 107 42 51 21 614 1,198 794 339 155 48 21 24 2,023 2,946 2,813 2,125 1,423 998 664 464 241 193 126 104 271 133 128 132 113 91 80 57 52 29 37 26 22 73 253 360 358 348 278 229 155 112 60 47 40 27 85 712 954 924 731 479 351 230 163 91 59 32 36 74 477 730 674 500 323 190 129 75 36 30 14 12 24 $10.0 million to $24.9 million $25.0 million to $49.9 million $50.0 million to $99.9 million $1.0 billion to $4.9 billion $100.0 million to $299.9 million $300.0 million to $499.9 million $500.0 million to $999.9 million $5.0 billion or more 8 241 587 460 190 84 26 7 12 4 93 259 275 181 75 25 10 16 0 7 35 37 42 17 11 6 11 0 4 19 36 34 20 13 5 4 1 3 11 28 30 33 15 11 7 0 0 0 2 7 5 4 0 5 232 400 395 216 151 89 51 39 14 10 8 3 7 135 230 218 167 74 41 28 16 9 7 4 3 6 31 55 32 16 7 10 6 3 1 2 2 1 0 18 36 38 18 10 4 6 3 0 0 0 0 2 25 44 37 15 10 3 2 1 1 1 0 0 0 7 9 5 1 0 1 0 0 0 0 0 0 0 Ratios of cash and due from depository institutions to total assets of — Less than 3 .0 ...................................................................... 3.0 to 5 .9 9 ................................................................................. 6.0 to 8 .9 9 ................................................................................. 9.0 to 1 1 .9 9 ............................................................................... 12.0 to 1 4 .9 9 ............................................................................ 15.0 to 1 7 .9 9 ............................................................................ 18.0 to 20.99 ............................................................................ 21.0 to 23.99 ............................................................................ 24.0 or more........................................................................... Ratios of U.S. Treasury securities to total assets of— Less than 3.0.............................................................................. 3.0 to 5 .9 9 ................................................................................. 6.0 to 8 .9 9 ................................................................................. 9.0 to 1 1 .9 9 ............................................................................... 12.0 to 1 4 .9 9 ............................................................................ 15.0 to 1 7 .9 9 ............................................................................ 18.0 to 20.99 ........................................................................... 21.0 to 23.99 ............................................................................ 24.0 to 26.99 ............................................................................ 27.0 to 29.99 ............................................................................ 30.0 to 32.99 ............................................................................ 33.0 to 35.99 ............................................................................ 36.0 or more.............................................................................. FEDERAL DEPOSIT INSURANCE CORPORATION Table 114. DISTRIBUTION OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1978 BANKS GROUPED ACCORDING TO AMOUNT OF ASSETS AND BY RATIOS OF SELECTED ITEMS TO ASSETS OR DEPOSITS Ratios of obligations of States and political sub divisions to total assets of— 1,110 534 590 1,035 1,419 1,863 2,149 2,050 1,542 986 838 275 331 138 135 132 87 45 45 18 13 12 14 3 364 160 204 325 324 326 253 172 96 58 44 26 328 127 156 326 517 729 802 644 514 311 286 96 63 66 56 134 264 389 515 583 467 326 258 93 16 21 12 61 113 165 269 340 251 180 145 42 7 15 13 22 53 120 164 213 159 82 76 14 1 2 5 7 14 25 35 41 17 11 8 0 0 3 3 6 17 24 28 23 19 5 6 1 0 2 5 14 22 36 36 76 6 1 1 0 0 0 1 8 8 4 2 0 0 0 0 0 138 104 220 385 607 920 1,496 2,257 2,827 2,777 1,803 669 188 58 29 49 53 72 88 107 116 133 136 73 38 21 26 27 51 86 111 180 268 353 393 395 296 118 48 27 24 66 146 208 298 509 702 869 941 697 276 73 15 16 31 49 108 179 318 515 704 668 424 156 31 6 5 15 27 49 85 124 271 386 387 197 56 7 4 3 6 19 36 47 100 191 226 191 86 24 5 1 0 1 4 9 12 24 40 37 22 15 1 0 1 0 0 0 8 11 20 32 39 15 8 0 1 0 0 1 0 5 15 22 34 36 17 7 0 2 0 0 0 1 1 5 4 3 4 5 0 0 0 676 1,721 2,764 2,960 2,346 1,687 1,039 529 255 151 263 27 51 119 175 147 122 92 63 39 27 111 83 259 442 507 405 271 171 86 47 32 49 260 619 994 1,000 744 541 329 165 73 52 59 182 441 679 662 508 342 225 95 49 16 15 74 224 320 350 283 187 98 42 19 7 11 37 109 164 209 168 133 57 36 9 6 10 5 10 23 24 30 31 22 13 3 4 1 5 3 11 13 35 29 14 15 5 3 2 3 5 11 18 22 27 28 11 9 2 3 0 0 1 2 4 4 3 3 2 2 2 Ratios of net loans to total assets of— Less 20.0 25.0 30.0 35.0 40.0 45.0 50.0 55.0 60.0 65.0 70.0 75.0 than 2 0 ............................................................................... to 24.99 ............................................................................ to 29.99 ............................................................................ to 34.99 ............................................................................ to 39.99 ............................................................................ to 44.99 ............................................................................ to 49.99 ............................................................................ to 54.99 ............................................................................ to 59.99 ............................................................................ to 64.99 ............................................................................ to 69.99 ............................................................................ to 74.99 ............................................................................ or more............................................................................... Ratios of total demand deposits to total deposits of— Less 20.0 25.0 30.0 35.0 40.0 45.0 50.0 55.0 60.0 65.0 than 2 0 ............................................................................... to 24.99 ............................................................................ to 29.99 ............................................................................ to 34.99 ............................................................................ to 39.99 ............................................................................ to 44.99 ............................................................................ to 49.99 ............................................................................ to 54.99 ............................................................................ to 59.99 ............................................................................ to 64.99 ............................................................................ or more............................................................................... 163 ASSETS AND LIABILITIES OF BANKS Z e ro ................................................................................................ Less than 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 ............................................................................ 20.0 to 24.99 ............................................................................ 25.0 or more............................................................................... 164 Table 114. DISTRIBUTION OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1978 (CONTINUED) BANKS GROUPED ACCORDING TO AMOUNT OF ASSETS AND BY RATIOS OF SELECTED ITEMS TO ASSETS OR DEPOSITS Banks with assets of — Less than $5 million $5.0 million to $9.9 million 345 405 722 1,126 1,521 1,833 1,699 1,503 1,168 903 692 468 379 307 261 1,059 6 3 8 19 44 59 80 55 81 59 60 49 47 44 36 323 17 26 52 99 193 260 279 251 216 176 150 96 73 66 77 321 Less than 7.0.............................................................................. 7.0 to 8 .4 9 ................................................................................. 8.5 to 9 .9 9 ................................................................................. 10.0 to 1 1 .4 9 ............................................................................ 11.5 to 1 2 .9 9 ............................................................................ 13.5 to 1 4 .4 9 ............................................................................ 15.5 to 1 5 .9 9 ........................................................................... 16.0 to 1 7 .4 9 ............................................................................ 17.5 to 1 8 .9 9 ............................................................................ 19.0 to 20.49 ............................................................................ 20.5 to 2 1 .9 9 ........................................................................... 22.0 or more.............................................................................. 658 2,142 3,301 2,792 1,861 1,121 737 468 298 205 151 657 4 26 63 95 119 101 73 65 44 48 26 309 Number of banks........................................................................... 14,391 973 $10.0 million to $24.9 million $25.0 million to $49.9 million $50.0 million to $99.9 million $100.0 million to $299.9 million $300.0 million to $499.9 million $500.0 million to $999.9 million $1.0 billion to $4.9 billion $5.0 billion or more Ratios of total equity capital to total assets of— Less than 5 ................................................................................. 5.0 to 5 .4 9 ................................................................................. 5.50 to 5 .9 9 .............................................................................. 6.00 to 6 .4 9 .............................................................................. 6.50 to 6 .9 9 .............................................................................. 7.00 to 7 .4 9 .............................................................................. 7.50 to 7 .9 9 .............................................................................. 8.00 to 8 .4 9 .............................................................................. 8.50 to 8 .9 9 .............................................................................. 9.00 to 9 .4 9 .............................................................................. 9.50 to 9 .9 9 .............................................................................. 10.00 to 10.49........................................................................... 10.50 to 10.99........................................................................... 11.00 to 11.49........................................................................... 11.50 to 11.99............................................................................ 12.00 or more........................................................................... 71 83 178 337 472 632 586 579 439 369 256 179 167 121 85 282 79 87 198 281 384 446 408 387 278 191 143 90 62 55 43 82 51 65 113 194 231 275 203 143 100 68 57 36 20 13 10 36 65 72 93 131 131 125 110 70 48 33 16 12 8 3 8 13 15 22 27 17 23 14 20 9 3 3 4 4 1 2 1 1 15 23 24 22 16 9 9 5 2 3 2 2 1 1 0 1 22 21 25 22 25 11 3 3 1 0 4 0 0 1 1 0 4 3 4 4 2 2 1 1 0 1 0 0 0 1 0 0 24 147 350 435 356 288 200 136 106 66 52 192 143 573 1,093 1,070 728 429 298 173 105 62 54 108 158 589 911 698 407 193 114 59 27 16 12 30 114 394 511 295 156 56 29 19 10 13 5 13 120 259 249 155 77 38 18 12 5 0 1 4 32 44 40 26 9 6 4 2 1 0 1 1 28 45 41 9 4 5 1 2 0 0 0 0 29 59 36 7 4 4 0 0 0 0 0 0 6 6 7 2 1 1 0 0 0 0 0 0 2,352 4,836 3,214 1,615 938 166 135 139 23 1 Ratios of total equity capital to total assets other than cash and government securities of— FEDERAL DEPOSIT INSURANCE CORPORATION All banks Ratios (In percent) INCOME OF INSURED BANKS Table 115. Income of insured commercial banks in the United States (States and other areas), 1973 — 1978 Table 116. Ratios of income of insured commercial banks in the United States (States and other areas), 1 9 7 3 -1 9 7 8 Table 117. Income of insured commercial banks in the United States (States and other areas), 1978 Banks grouped by class of bank Table 118. Income of insured commercial banks operating throughout 1978 in the United States (States and other areas) Banks grouped by amount of assets Table 119. Ratios of income of insured commercial banks operating throughout 1978 in the United States (States and other areas) Banks grouped according to amount of assets Table 1 20. Income of insured mutual savings banks in the United States (States and other areas), 1973 — 1978 Table 121. Ratios of income of insured mutual savings banks in the United States (States and other areas), 1 9 7 3 -1 9 7 8 The income data received and published by the Corporation relate to com mercial and mutual savings banks insured by the Corporation. Commercial banks Banks having assets of $25 million or more are required to report consoli dated income accounts on an accrual basis. Where the results would not be significantly different, certain accounts may be reported on a cash basis. Smaller banks continue to have the option of submitting their reports on a cash or an accrual basis, except that unearned income on loans, and income taxes, must be reported on a current accrual basis. Prior to 1976, insured banks were required to submit a consolidated Report of Income, including all majority-owned domestic premises subsidiaries and other nonbank subsidiaries that were significant according to certain tests. Beginning in 1976, the consolidated income report must include also all majority-owned Edge Act and Agreement Corporations, and all majorityowned significant foreign subsidiaries and associated companies to the extent that the income of such subsidiaries is remittable. Banks were required to report income and expenses more frequently begin ning in 1976. Banks having assets of $300 million or more submit quarterly statements and other insured banks submit semiannual reports. In this report, income data are included for all insured banks operating at the end of the respective years, unless indicated otherwise. In addition, when appropriate, adjustments have been made for banks in operation during part of the year but not at the end of the year. 166 Mutual savings banks For a discussion of the report of income and expenses for mutual savings banks prior to 1971, see the 1951 Annual Report, pp. 50-52. Beginning December 31, 1971, income and expenses for mutual savings banks are reported on a consolidated basis in the same manner as required of commercial banks, including all domestic branches, domestic bank premises subsidiaries, and other significant nonbanking domestic subsidiaries. Beginning in 1972, banks with total resources of $25 million or more are required to prepare their reports on the basis of accrual accounting. All banks are required to report income taxes on an accrual basis. Under operating income, certain income from securities formerly in the "other" category are shown separately beginning 1971. Income from U.S. Treasury securities is combined with income from U.S. Government agency and corporation securities. Somewhat fewer items are detailed under operat ing expenses. Beginning in 1971, actual net loan losses (charge-offs less recoveries) are included as an expense item in the operating section of the report (see discussion below). In 1970 and prior years (table 120), the amounts shown for this expense item were "recoveries credited to valuation adjustment provisions on real estate mortgage loans" less the "realized losses charged to valuation adjustment provisions on [these] loans," which were reported in those years in the memoranda section. The nonoperating sections of the report were condensed in 1971, with realized gains and losses on securities, mortgage loans, and real estate reported "net" rather than in separate sections and captions as before. Detailed data formerly reported on reconcilement of valuation adjustment pro visions were almost entirely eliminated, except for a simple reconciliation of surplus. Sources of data National banks and State banks in the District of Columbia not members of the Federal Reserve System: Office of the Comptroller of the Currency. State banks members of the Federal Reserve System. Board of Governors of the Federal Reserve System. Other insured banks: Federal Deposit Insurance Corporation. REPORTING OF LOSSES AND RESERVES FOR LOSSES ON LOANS, 1948 - 1978 Commercial banks Use of the reserve method of loan accounting was greatly encouraged when, in 1947, the Internal Revenue Service set formal standards for loan loss transfers to be permitted for Federal tax purposes. In their reports submitted to the Federal bank supervisory agencies prior to 1948, insured commercial banks included in non-operating income the amounts of recoveries on loans (applicable to prior charge-offs fo r losses) w hich included, for FEDERAL DEPOSIT INSURANCE CORPORATION Several changes were made in 1976 in the format of the income reports submitted by banks, mainly involving additional separate items on the face of the report. Those changes are indicated in several historical data tables to follow, with explanatory notes where necessary. In 1976, the method used for determining "provision for possible loan losses” was changed significantly. Also, beginning in 1976, "memoranda" data in table 115 and elsewhere on charge-offs and recoveries to loan loss reserves include also the gross charge-offs and recoveries on loans by banks not on a reserve basis of accounting (see p. 167). In December 1978 an abbreviated Report of Income was instituted for banks with total consolidated assets less than $100 million. "Applicable income taxes" on income before securities gains or losses is an estimate of the tax liability that a bank would incur if its taxes were based sole ly on operating income and expenses; that is, if there were no security gains or losses, no extraordinary items, etc. The amount reported by each bank con sists of Federal, State and local, and foreign income taxes, estimated using the tax rates applicable to the reporting bank. Income taxes currently payable, and deferred income taxes, are included. The memoranda item "total provision for income taxes" includes applicable taxes on operating income, applicable taxes on securities gains and losses and extraordinary items, and tax effects on differences between the provision for loan losses charged to operating expense and transfers to the reserve for bad debt losses on loans. For banks generally the transfers to reserve for bad debts have exceeded the provision for loan losses and consequently have tended to reduce tax liability. (Since enactment of the Tax Reform Act of 1969, additions to loan loss reserves for Federal tax purposes have been subject to a schedule of limitations that will eventually put these reserves on a current experience basis.) 167 of the formulas was discontinued. Banks are instructed to expense an amount which in the judgment of bank management will maintain an adequate reserve, and to provide a fully reviewable record for bank examination purposes of the basis for the determination of the loan-loss provision. Also beginning in 1976, banks not on a reserve basis report gross chargeoffs and recoveries; the difference— net losses— is reported as the "provision for loan losses" in operating expenses. Banks continue to report all transfers to and from reserves in the memoranda section of the income statement, but this detailed information is not included in the tables to follow. Mutual savings banks While mutual savings banks reported loan losses and transfers to loss reserves prior to 1951, the Corporation's published statistics did not show these data separately, as was the case also for recoveries and transfers from reserves. When the reporting form was revised extensively in 1951, these various nonoperating expenses were itemized, and a memoranda section was added to show also the losses and recoveries in reserve accounts. "Realized" losses (and recoveries) for which no provision had been made, and transfers were included in the nonoperating expense (income) section, while direct write-downs and other loan losses for which provision had been made, were reported separately in a memoranda account. Following 1951, the loan loss section of the reports of condition and income and expense remained unchanged until 1971. Beginning in 1971, the income report was revised in a manner similar to changes in 1969 applicable to com mercial banks, to show actual net loan losses as operating expenses. (Mutual savings banks did not have the option available to commercial banks of report ing losses based on recent years' average experience.) At the same time, all valuation reserves ware merged into surplus accounts on statements of condi tion submitted to the Federal supervisory agencies. INCOME OF INSURED BANKS banks using the reserve method, transfers from loan loss reserves. Direct charge-offs and losses on loans, and transfers to reserves were included together in non-operating expenses. Banks using the reserve method were not required to report separately their actual losses, that is, charges against loan loss reserves. (In statements of condition prior to 1948, insured banks reported loans on a net basis only, after allowance for loan loss reserves. Beginning with the June 30, 1948 report, banks were required to report gross loans, with total valuation reserves, those set up pursuant to Internal Revenue Service regulations, and other reserves shown separately. However, instalment loans ordinarily continued to be reported net if the instalment payments were applied directly to the reduction of the loan.) Beginning with the year 1948, the income reports were revised to show separately, in a memoranda section, the losses charged to reserves. These items continued to be combined in the non-operating expense section until 1961. Recoveries credited to reserves were also itemized in the memoranda section beginning in 1948, as were the amounts transferred to and from reserves during the year. Each of these debits and credits was segregated as to reserves set up pursuant to IRS regulations, and other reserves. Losses and recoveries, and transfers to and from reserves, but not the specific tax-related transfers, were separetely reported in the Corporation's published statistics. Several important revisions were made in the format of the income reports of commercial banks in 1969. A new entry entitled "provisions for loan losses" was included under operating expenses. This item included actual loan losses (charge-offs less recoveries) during the year or, at the option of the bank, an amount derived by applying the average loan loss percentage for the five most recent years to the average amount of loans during the current year. Banks had the option also of providing a larger amount in any year than the amount indicated by the formula. Beginning in 1976, required use 168 Table 115. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1 9 7 3 -1 9 7 8 (Amounts in thousands of dollars) Income item 1973 1974 1975 19761 19771 19781 53.036,327 68,160,779 66,558,502 80.663.853 90,357,541 113,581,682 Interest and fees on loans.............................................................................................................. 35,375,638 47,138,740 43,379,504 51,645,260 4,486,655 58,990,506 4.887,917 76,182,124 6,712,575 Income on federal funds sold and securities purchased under agreements to resell in domestic offices........................................................................................................ Interest on U.S. Treasury securities and on obligations of other U.S. Goverment agencies and corporations3.............................................................................. Interest on obligations of States and political subdivisions of the U.S.3 ................. Income from all other securities3................................................................................................ 2,486,695 3,712,304 2,294,621 1.984,757 2,476,313 3,682,320 4,937,659 3,864,785 371,987 5,459,834 4,453,876 467,873 6,789,577 4,918,518 533,244 Income from fiduciary activities.................................................................................................. Service charges on deposit accounts in domestic o ffices.............................................. Other service charges, commissions, and fe es..................................................................... Other income3..................................................................................................................................... 1,459,879 1,326,992 1,251,651 1,961,041 1,506,206 1,459,858 1,408,525 2,553,563 1,601,968 1,555,360 1,653,549 3,832,161 8,391,374 5,134,676 856,053 534,254 1,794,732 1.635.463 2,182,927 2,017,702 8,863,977 5,365,327 968,672 699,273 1,980,395 1,806.509 2,408,698 1,909,954 9,384,132 6,038,829 1,094,853 861,989 2,139,266 2,048,989 2,937,435 2,499,170 Operating expenses— t o t a l ................................................................................................ 44,330,459 58,910,355 57,582,040 70,750,168 78,791,583 98,480,372 Salaries and employee benefits.................................................................................................. Interest on time certificates of deposit of $100,000 or more issued by domestic offices^ ........................................................................................................... Interest on deposits in foreign offices^. ........................................................................ Interest on other deposits.............................................................................................................. Expense of federal funds purchased and securities sold under agreements to repurchase in domestic offices............................................................................................. Interest on demand notes issued to the U.S. Treasury and other borrowed money ................................................................................................................................................. Interest on subordinated notes and debentures...................................................................... Occupancy expense of bank premises, net, and furniture and equipment expense.............................................................................................................................................. Provision for possible loan losses............................................................................................... Other operating expenses................................................................................................................. 10,127,808 11,586,433 12,686,720 14,752,297 16,346,067 18,743,800 6,763.105 10,215,971 21,832,936 11,736.511 14,558,371 23,918,087 19,834,817 27,888,772 26,245,936 7,111,054 8,749,673 19,143,238 3,899,016 5,985,504 3,322,993 3.311,741 4,542,669 7,264,001 503,941 254,458 917,638 283,203 377,195 294,098 667,197 344,952 818,374 392,274 1,457,931 448,488 1,782,956 1,264,695 5,461,527 2,052,345 2,286.132 6,549,607 2,324,644 3,612,410 7,185,305 2,764,804 3,691,378 8,492,452 3.049,121 3.301,041 9.599,250 5,584,768 3,524,704 11,243,711 15,101,310 Income before income taxes and securities gains or lo s s e s .................................... 8,705,868 9,250,424 8,976,462 9,913,685 11,565,958 Applicable income t a x e s ..................................................................................................... 2,121,100 2,084,028 1,792,696 2,290,772 2,831,871 4,162,112 Income before securities gains or lo sses....................................................................... 6,584,768 7,166,396 7,183,766 7,622,913 8,734,087 10,939,198 Securities gains or losses, gross...................................................................................... -7 3 ,4 5 8 -1 6 1 ,2 4 7 34,376 312,267 141,674 -4 4 7 ,1 2 4 Applicable income ta xe s................................................................................................................. Securities gains or losses, net..................................................................................................... -4 6 ,3 2 3 -2 7 ,1 3 5 -7 4 ,1 9 5 -8 7 .0 5 2 — 2,690 37,066 118,233 194,034 43,189 98,485 -2 2 2 ,2 3 0 -2 2 4 ,8 9 4 Income before extraordinary item s.................................................................................... 6,557,633 7,079,344 7,220,832 7,816,947 8,832,572 10,714,304 Extraordinary items, gross................................................................................................... 30,817 17,877 46,823 28,104 55,082 43,737 Applicable income ta xe s................................................................................................................. Extraordinary items, net.................................................................................................................... 9,256 21,561 5,957 11,920 13,044 33,779 1,774 26,330 8,249 46,833 - 1 ,4 9 3 45,230 Net incom e............................................................................................................................... 6,579,194 7,091,264 7,254,611 7,843,277 8,879,405 10,759.534 FEDERAL DEPOSIT INSURANCE CORPORATION Operating income— to ta l..................................................................................................... Memoranda 2,429,330 2,768,104 3,032,444 3,036,222 3,304,789 3,721,926 2.425,633 3.697 2,765,674 2,430 3,030,230 2,214 3,033,628 2,594 3,301,525 3,264 3,718,211 3,715 Provision for income taxes —to ta l.................................................................................................. U.S. Federal income taxes.......................................................................................................... U.S. State and local income taxes.......................................................................................... 1,715,439 1,759,739 1,727,041 2,410,779 2,883,309 3,938,389 1.336,317 379,122 1,357,934 402.345 1,225,927 501,114 1,371,638 491,712 547,429 1,773,219 525.833 584.257 2,537,962 656,274 744,153 Net loan losses or recoveries —to ta l............................................................................................ Recoveries on loans......................................................................................................................... Losses on loans.................................................................................................................................. -1,159,187 -1,956,931 -3 ,242.830 -3 ,50 3 ,2 4 6 -2 ,797,105 388,846 -1,548,033 461,350 -2,418,281 547,380 -3,790,210 687,401 -4,190,647 813.900 -3.611.005 A sse ts— to ta l......................................................................................................................... 776,702,572 871,394,495 924,946,738 1,123,469,176 1,249,961,111 1,403,493,088 Cash and due from depository institutions............................................................................. U.S. Treasury securities and obligations of other U.S. agencies and corporations3................................................................................................................... Obligations of states and political subdivisions............................................................ Other securities^.................................................................................................................................. Net loans6............................................................................................................................................. All other a sse ts.................................................................................................................................. 110,168,143 122,224,773 126,838,007 194,312,500 218,357,890 248,632,890 58,603,925 89,241,780 29,355,715 453,238,907 36,094,102 52,822,043 94,524,535 35,256,603 519,572,131 46,994,410 65,992,148 98,953,279 39,203,344 536,061,723 57,898,237 88,520,749 102,733,896 51,110,347 632,696,842 54,094,842 96,664,647 108,429,263 54,293,953 709,816,228 62,399,129 131,799,055 117,331,876 20,129,242 764,772,496 74,589,592 Liabilities and equity capital— total................................................................................ 776,702,572 871,394,495 924,946,738 1,123,469.176 1,249,961,111 1,403,493,088 Total deposits....................................................................................................................................... Demand deposits......................................................................................................................... Time and savings deposits.................................................................................................... Deposits in foreign offices......................................................................................... Subordinated notes and debentures............................................................................................ Other borrowings and all other liabilities................................................................................ Total equity capital............................................................................................................................ 640,806,208 710,029,868 756,948,586 944,238,914 1,043,478,575 1,157,408,490 293,708,282 347,097,926 307,363,186 402,666,682 313,836,391 443,112,195 320,488,016 474,499,317 149,251,581 347.903.682 519.939.386 175 635 507 377.305.796 592.066.952 188.034.718 4,044,715 80,677,846 51,173,803 4,204,891 100,573,737 56,585,999 4,328,561 101,918,202 61,751,389 4,865,972 105,647,909 68,716,381 5,500,132 125,239,154 75,743,250 5,952,193 156,087,365 84,028,113 Number of employees on payroll (end of period)..................................................................... 1,093,616 1,160,585 1,226,415 1,255,025 1,320,598 1,319,828 Number of banks (end of period).................................................................................................... 13,976 14,228 14,384 14,411 14,412 14,391 Dividends declared on equity capital —to ta l............................................................................. Cash dividends declared on common stock........................................................................ Cash dividends declared on preferred stock........................................................................ -2,496,977 1.074,435 3,571,412 Average assets, liabilities, and equity capital^ INCOME OF INSURED BANKS 1Data are from fully consolidated reports of income, including domestic and foreign offices. 2Figures not available before 1976. ^Securities held in trading accounts are included in "All other assets"; income from these securities is included in "Other income." ^Included in "Interest on other deposits" before 1976. ^Averages of amounts reported at beginning, middle, and end of year. 1976, 1977, 1978 averages are based on consolidated reports, domestic and foreign. ®For years before 1976, data are gross loans. Includes federal funds sold. 169 1974 1975 19761 $100.00 $100.00 $100.00 Interest and fees on loans2.............................................................................................................. 71.39 74.60 68.62 Interest on U.S. Treasury securities and on obligations of other U.S. Government agencies and corporations................................................................................. Interest on obligations of States and political subdivisions............................................... Income from all other securities................................................................................................... Income from fiduciary activities...................................................................................................... Service charges on deposit accounts in domestic offices................................................. Other service charges, commissions, and fees......................................................................... Other operating income....................................................................................................................... 6.53 7.29 3.48 2.75 2.50 2.36 3.70 5.05 6.53 3.65 2.21 2.14 2.07 3.75 6.67 7.39 4.33 2.41 2.34 2.48 5.76 Income item 19771 19781 $100.00 $100.00 $100.00 66.49 5.56 68.03 5.41 70.31 5.91 7.41 6.37 4.05 2.23 2.03 2.71 3.16 7.08 5.94 3.80 2.19 2.00 2.67 2.88 8.26 5.32 .96 1.88 1.80 2.59 2.96 Operating expenses— to ta l................................................................................................... 83.58 86.43 86.51 87.71 87.20 86.70 Salaries and employee benefits...................................................................................................... Interest on deposits in domestic offices.................................................................................... 19.10 37.40 17.00 40.92 19.06 39.43 Interest on demand notes issued to the U.S. Treasury and other borrowed money4 . Occupancy expense of bank premises, net, and furniture and equipment expense . Provision for possible loan lo sses................................................................................................ Other operating expenses................................................................................................................. 8.78 5.62 2:38 10.30 10.54 5.01 3.35 9.61 6.00 5.79 5.43 10.80 18.29 32.55 10.85 5.36 5.56 4.57 10.53 18.09 31.65 11.31 6.37 5.51 3.65 10.62 16.50 31.39 12.82 8.07 4.92 3.10 9.90 Income before income taxes and securities gains or l o s s e s .................................... 16.42 13.57 13.49 12.29 12.80 13.30 6.83 5.71 1.12 .85 7.82 6.76 1.06 .81 7.20 6.23 .97 .78 7.18 6.30 .88 .70 7.23 6.30 .93 .71 8.09 7.02 1.08 .77 Amounts per $ 1 00 of total assets^ Operating income—total.......................................................................................................................... Operating expenses—to ta l.................................................................................................................... Income before income taxes and securities gains or lo sses................................................. Net income.................................................................................................................................................... .08 - .2 5 .25 Recoveries credited to allowance...................................................................................................... Losses charged to allowance................................................................................................................. Provision for possible loan losses .... Amounts per $ 1 0 0 of total equity capital5 Net income.................................................................................................................................................... Cash dividends declared on common stock.................................................................................... Net change in capital accounts (less cash dividends on common and preferred stock) . 12.86 4.74 8.11 12.53 4.89 7.64 11.75 4.91 6.84 11.41 4.42 6.99 11.72 4.36 7.36 12.80 4.42 14.796 9.76 Special ratios^ 8.35 9.79 8.52 8.48 8.66 5.91 6.51 6.73 6.75 6.62 7.12 4.33 4.71 4.97 5.00 4.95 4.80 Income on loans per $100 of loans2....................................................................................... Income on U.S. Treasury and other U.S. Government agency and corporation securities per $100 of those securities........................................................................... Income on obligations of states and political subdivisions per $100 of those obligations........................................................................................................... Service charges on demand deposits in domestic offices per $100 of those deposits............................................................................................................................. Interest paid on time and savings deposits in domestic offices per $100 of those deposits........................................................................................................................................ .45 .47 .50 .51 .52 .54 5.71 6.93 5.92 5.53 5.50 6.02 Number of banks at end of period...................................................................................................... 13,976 14,228 14,384 14,411 14,412 14,391 1Based on consolidated (including foreign) reports of income— see table 115, note 1. 2|ncludes federal funds sold. 3|Mot available before 1976. ^Includes interest on federal funds purchased, subordinated notes and debentures, and other borrowed money. ^Ratios are based on averages of assets and liabilities— see table 115 notes 5 and 6. 6|ncludes all changes; prior to 1978 the ratio represents changes due to net income only. FEDERAL DEPOSIT INSURANCE CORPORATION 1973 Amounts per $1 00 of operating income Operating income— total........................................................................................................ 170 Table 116. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1 9 7 3 -1 9 7 8 Table 117. INCOME OF ALL INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1978 BANKS GROUPED BY CLASS OF BANK (Amounts in thousands of dollars) Members F.R. System Income item National Member Non members F.R. System Operating throughout the year Operating less than full year 113.581,682 67,842,394 21,288.380 24,450,908 113.521.758 59,924 Interest and fees on lo ans................................................................................................................................................... Interest on balances with depository institutions....................................................................................................... Income on federal funds sold and securities purchased under agreements to resell in domestic o ffices...................................................................................................................................................................................... Interest on U.S. Treasury securities and on obligations of other U.S. Government agencies and corporations.................................................................................................................................................................... Interest on obligations of States and political subdivisions................................................................................... Income from all other securities....................................................................................................................................... Income from direct lease financing................................................................................................................................. Income from fiduciary activities....................................................................................................................................... Service charges on deposit accounts in domestic offices...................................................................................... Other service charges, commissions, and f e e s .......................................................................................................... Other operating income........................................................................................................................................................ 76,182,124 6,712,575 45,997,682 4,407,311 13,927,640 1,979,252 16,256,802 326,012 76,151,465 6,710,554 30,659 2,021 3,682,320 2,197,794 610,418 874,108 3,673,011 9,309 9,384,132 6,038,829 1,094,853 861,989 2,139,266 2,048,989 2,937,435 2,499,170 4,721,572 3,252,138 693,157 639,358 1,214,782 1,089,525 1,932,197 1,696,878 1,457,909 1,003,170 201,213 166,597 697,045 244.502 467,186 533,448 3,204,651 1,783,521 200,483 56,034 227,439 714,962 538,052 268,844 9,372,333 6,037,652 1,094,541 861,988 2,138,961 2,047,616 2,936,362 2,497,275 11,799 1,177 312 1 305 1,373 1,073 1,895 Operating expenses— to tal................................................................................................................................ 98.480.372 58,975,758 18,807,300 20,697,314 98,419,998 60,374 Salaries and employee benefits.......................................................................................................................................... Interest on time certificates of deposit of $100,000 or more issued by domestic offices.................... Interest on deposits in foreign offices........................................................................................................................... Interest on other deposits...................................................................................................................................................... Expense of federal funds purchased and securities sold under agreement to repurchase in domestic offices.................................................................................................................................................................... Interest on demand notes issued to the U.S. Treasury and other borrowed money.................................. Interest on subordinated notes and debentures.......................................................................................................... Occupancy expense of bank premises, net, and furniture and equipment expense.................................. Provision for possible loan loss.......................................................................................................................................... Other operating expenses...................................................................................................................................................... 18,743,800 11,736,511 14,558,371 23,918,087 10,845,175 7,021,874 10,139,704 12,873.945 3,270,921 2,564,736 4,260.520 2,947,332 4,627,704 2,149,901 158,147 8,096,810 18,727,918 11,731,711 14,558,221 23,900,369 15,882 4,800 ‘ 150 17,718 7,264,001 1,457,931 448,488 5,584,768 3,524,704 11,243,711 4,989,628 1,023,090 234,334 3,194,270 2,131,211 6,522,527 1,813,834 380,086 99,349 1,029,957 639,573 1,800,992 460,539 54,755 114,805 1,360,541 753,920 2,920,192 7,262,047 1,457,819 448,164 5,579,539 3,522,959 11,231,251 1,954 112 324 5,229 1,745 12,460 -4 5 0 Income before income taxes and securities gains or l o s s e s ................................................................. 15,101,310 8,866,636 2,481,080 3,753,594 15,101,760 Applicable income taxes..................................................................................................................................... 4,162,112 2,591,042 735,925 835,145 4,161,110 1,002 Income before securities gains or lo s s e s .................................................................................................... 10,939,198 6,275,594 1,745,155 2,918,449 10,940,650 - 1 ,4 5 2 Securities gains (losses), g ro ss...................................................................................................................... - 4 4 7 ,1 2 4 -2 5 3 ,5 2 8 - 1 2 4 ,5 1 8 -6 9 ,0 7 8 -4 4 7 ,1 7 1 47 Applicable income taxes........................................................................................................................................................ Securities gains (losses), n e t............................................................................................................................................. -2 2 2 ,2 3 0 -2 2 4 ,8 9 4 -1 2 5 ,2 3 2 -1 2 8 ,2 9 6 -6 8 ,2 2 9 -5 6 ,2 8 9 - 2 8 ,7 6 9 -4 0 ,3 0 9 -2 2 2 ,2 5 3 -2 2 4 ,9 1 8 23 24 Income before extraordinary ite m s ................................................................................................................. 10,714,304 6,147,298 1,688,866 2,878,140 10.715.732 -1 ,4 2 8 Extraordinary items, g r o ss ................................................................................................................................ 43,737 26,858 - 1 ,9 0 2 18.781 43.808 -7 1 Applicable income taxes........................................................................................................................................................ Extraordinary items, n et........................................................................................................................................................ - 1 ,4 9 3 45,230 808 26,050 - 2 .6 2 5 723 324 18,457 - 1 ,4 8 2 45,290 -1 1 -60 171 INCOME OF INSURED BANKS Operating income— t o t a l ................................................................................................................................... 172 Table 117. INCOME OF ALL INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1978 BANKS GROUPED BY CLASS OF BANK-CONTINUED (Amounts in thousands of dollars) Members F.R. System Income item Net in co m e ............................................................................................................................................................. Total 10,759,534 Nonmembers F.R. System National Member 6,173,348 1,689,589 2,896,597 Operating throughout the year Operating less than full year 10,761,022 -1 ,4 8 8 3,721,926 2,196,029 732,044 793,853 3,721,592 334 3.718,211 3.715 2,194,664 1,365 731,852 192 791,695 2,158 3.717.877 3.715 334 0 Provision for income taxes— t o t a l.................................................................................................................. 3,938,389 2,466,618 665,071 806,700 3,937,380 1,009 U.S. Federal income taxes................................................................................................................................................. U.S. State and local income taxes............................................................................................................................... Foreign income taxes......................................................................................................................................................... 2.537,962 656.274 744,153 1,582.351 338.712 545.555 295,850 176,103 193,118 659,761 141,459 5,480 2.537.038 656,189 744,153 924 85 0 Dividends declared on equity capital— to ta l................................................................................................ Cash dividends declared on common stock.............................................................................................................. Cash dividends declared on preferred stock........................................................................................................... Net loan losses (recoveries)— to t a l............................................................................................................... Recoveries credited to allowance.................................................................................................................................. Losses charged to allowance........................................................................................................................................... Number of full-time equivalent employees at end of period. . Number of banks........................................................................................................................................................................ -2 ,4 9 6 ,9 7 7 -1 ,4 3 8 ,7 0 5 -4 9 9 ,7 9 9 -5 5 8 ,4 7 3 -2 ,4 9 6 ,0 0 0 -9 7 7 685.906 2.124.611 178,857 678,656 209.672 768.145 1.074.235 3.570.235 200 1.177 1,319,828 733,696 207,653 378,479 1,318,040 1,788 14,391 4,564 1,000 8,827 14,243 148 1,074,435 3,571,412 FEDERAL DEPOSIT INSURANCE CORPORATION MEMORANDA Table 118. INCOME OF ALL INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1978 IN THE UNITED STATES (STATES AND OTHER AREAS) BANKS GROUPED BY AMOUNTS OF ASSETS (Amounts In thousands of dollars) EJanks with assets of — Income item All banks! Less than $5 million $5.0 million to $9.9 million $10.0 million to $24.9 million $25.0 million to $49.9 million $50.0 million to $99.9 million $100.0 million to $299.9 million $300.0 million to $499.9 million $500.0 million to $999.9 million $1.0 billion to $4.9 billion $5.0 billion or more 113,521,758 238,241 1,332.840 6,171.621 8,702,436 8,677.812 11,411,770 4,890,473 6,801,841 20,809.009 44,485,715 Interest and fees on loans....................................................... Interest on balances with depository institutions . . . . Income on federal funds sold and securities purchased under agreements to resell in domestic offices....................................................... Interest on U.S. Treasury securities and on obligations of other U.S. Government agencies and corporations................................................................ Interest on obligations of States and political subdivisions................................................................................. Income from all other securities............................................ Income from direct lease financing...................................... Income from fiduciary activities........................................... Service charges on deposit accounts in domestic offices............................................................................................. Other service charges, commissions, and fees.............. Other operating income............................................................. 76,151,465 6,710,554 142,972 2,244 845,519 9,299 4,052,450 36,099 5,832,373 48,571 5,895,812 52,424 7,658,493 93,483 3,232,540 42,749 4,495,531 108,572 13,720,268 999,469 30,275,507 5,317,644 3,673,011 17,000 73,840 272,925 323,307 272,558 350,453 206,338 270,900 773,975 1,111,715 9,372,333 52,659 246,613 939,734 1,165,330 1,063,396 1,404,176 554,606 703,835 1,685,213 1,556,771 6,037,652 1,094,541 861,988 2,138,961 7,209 1,562 62 268 62,930 7,258 877 3,886 431,260 34,588 4,567 24,224 714,525 53,699 10,053 28,956 737,408 56,544 19,186 84,176 939,665 76,143 32,092 185,613 357,400 38,801 27,562 118,152 471,848 74,696 48,036 176,283 1,125,864 122,784 148,924 671,659 1,189,543 628,466 570,629 845,744 2,047,616 2,936,362 2,497,275 .6,711 5,038 2,516 39,980 28,907 13,731 197,458 123,217 55,099 269,872 173.395 82,355 244,291 162,764 89,253 285,551 258,567 127,534 112,445 137,511 62,369 160,211 185,778 106,151 402,017 660,252 498,584 329,080 1,200,933 1,459,683 Operating expenses— t o t a l .............................................. 98,419,998 203.550 1,136,041 5,138,235 7,221,122 7.278.994 9,729,278 4,207,121 5.917,614 18.228.388 39,359,655 Salaries and employee benefits........................................... Interest on time certificates of deposit of $100,000 or more issued by domestic offices........... Interest on deposits in foreign offices................................ Interest on other deposits....................................................... Expense of federal funds purchased and securities sold under agreement to repurchase in domestic offices............................................................................................. Interest on demand notes issued to the U.S. Treasury and other borrowed money................................................. Interest on subordinated notes and debentures.............. Occupancy expense of bank premises, net, and furniture and equipment expense..................................... Provision for possible loan lo ss........................................... Other operating expenses.......................................................... 18,727,918 60,092 281,980 1,165,882 1,558,028 1,568,375 2,104,519 923,527 1,306,713 3,718,621 6,040,181 11,731,711 14,558,221 23,900,369 6,803 0 82,125 46,900 0 510,208 284,468 0 2,377,949 518,995 0 3,304,283 686,448 0 3,107,305 1,142,244 5,755 3,691,152 555,596 2,174 1,349,948 848,299 76,125 1,635,555 2,683,512 1,074,685 4,043,536 4,958,446 13,399,482 3,798,308 7,262,047 689 5,144 34,815 66,980 117,822 351,222 275,278 496,861 2,169,336 3,743,900 1,457,819 448,164 138 143 1,414 1,146 6,274 10,303 16,730 22,005 20,695 28,570 36,474 55,666 18,655 24,150 29,222 39,184 167,540 133,232 1,160,677 133,765 5,579,539 3,522,959 11,231,251 12,699 7,517 33,344 71,449 47,188 170,612 312,836 187,004 758,704 446,275 255,683 1,032,143 467,386 250,022 1,032,371 668,393 315,942 1,357,91 1 302,288 139,112 616,393 448,849 217,246 819,560 1,156,158 749,099 2,332,669 1,693,206 1,354,146 3,077,544 Income before income taxes and securities gains or lo ss e s ................................................................................. 15,101.760 34,691 196,799 1,033,386 1,481,314 1,398,818 1,682,492 683,352 884,227 2,580.621 5,126,060 Applicable income t a x e s ................................................... 4 ,1 6 1 ,1 1 0 6,647 41 ,3 04 2 2 2 ,5 3 2 3 2 9,01 3 2 9 9,10 3 3 3 7 ,5 8 0 143,31 7 184,21 6 648.88 7 1,948,511 173 INCOME OF INSURED BANKS Operating income— to ta l................................................... 174 Table 118. INCOME OF ALL INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1978 IN THE UNITED STATES (STATES AND OTHER AREAS)-CONTINUED BANKS GROUPED BY AMOUNTS OF ASSETS (Amounts in thousands of dollars) Banks with assets of — All banks Less than $5 million $5.0 million to $9.9 million $10.0 million to $24.9 million $25.0 million to $49.9 million $50.0 million to $99.9 million $100.0 million to $299.9 million $300.0 million to $499.9 million $500.0 million to $999.9 million $1.0 billion to $4.9 billion $5.0 billion or more Income before securities gains or lo sse s.................... 10,940,650 28.044 155,495 810,854 1,152,301 1,099,715 1.344,912 540,035 700,011 1,931,734 3,177,549 Securities gains (losses), g r o s s .................................... -4 4 7 ,1 7 1 -4 9 8 -3 ,5 0 6 -1 5 ,1 0 9 - 2 5 ,3 1 2 -2 8 .3 1 6 - 3 8 ,4 7 8 -1 9 ,2 6 9 - 1 7 ,4 9 3 -1 0 8 ,6 1 2 -1 9 0 ,5 7 8 Applicable income ta x e s.......................................................... Securities gains (losses), net................................................. -2 2 2 ,2 5 3 -2 2 4 ,9 1 8 -1 0 2 -3 9 6 -8 1 9 -2 ,6 8 7 -4 ,9 2 4 -1 0 ,1 8 5 -9 ,6 1 1 -15 ,7 0 1 -1 1 ,9 6 4 - 1 6 ,3 5 2 -1 9 ,0 0 6 -1 9 ,4 7 2 - 9 ,5 1 0 - 9 ,7 5 9 -9 ,1 2 8 -8 ,3 6 5 -5 3 ,6 9 6 -5 4 ,9 1 6 -1 03,493 -8 7 ,0 8 5 Income before extraordinary item s................................. 10.715,732 27.648 152,808 800,669 1,136,600 1,083,363 1,325,440 530,276 691,646 1,876,818 3,090,464 4 ,322 - 5 ,3 0 0 Extraordinary items, gross.............................................. 4 3 ,8 0 8 119 823 4,219 7.316 7,373 13,943 7 ,118 3 ,875 Applicable income ta xe s.......................................................... Extraordinary items, net............................................................. - 1 ,4 8 2 45,290 6 113 9 814 367 3,852 823 6,493 -3 6 7,409 693 13,250 -2 6 5 7,383 434 3,441 -643 4,965 -2 ,8 7 0 -2 ,4 3 0 Net income............................................................................ 10,761,022 27,761 153,622 804.521 1,143,093 1,090,772 1,338,690 537,659 695,087 1,881,783 3,088,034 Dividends declared on equity capital— total............... 3,721,592 6.739 33,058 179,766 286,873 319,734 433,208 180,793 272,076 776,079 1.233.266 Cash dividends declared on common stock................. Cash dividends declared on preferred stock................. 3.717,877 3,715 6.739 0 33,044 14 179,487 279 286,186 687 319,100 634 432,252 956 180.204 589 272.053 23 775,546 533 1.233.266 O Provision for income taxes— total................................. 3,937,380 6,551 40,494 217,975 320,225 287,103 319,267 133,542 175.522 594,548 1,842,148 U.S. Federal income taxes.................................................... U.S. State and local income taxes.................................... Foreign income taxes................................................................ 2,537.038 656.189 744.153 5,624 927 0 34,772 5,722 0 189,286 28,689 0 281,306 38,919 O 249,175 37,928 0 268,449 50,797 21 114.824 18.685 33 138.091 35,524 1,907 440,018 106,064 48,466 815.488 332.934 693.726 Memoranda Net loan losses (recoveries)— total............................... Recoveries credited to allowance...................................... Losses charged to allowance................................................. Number of full-time equivalent employees at end of period....................................................... Number of banks........................................................................... - 2 ,4 9 6 ,0 0 0 - 5 .8 6 0 -3 6 ,9 1 2 -1 3 6 ,0 7 7 - 1 8 4 ,1 1 8 -2 2 7 ,8 4 5 - 1 1 6 ,5 8 7 - 1 6 3 .8 8 6 -5 2 5 ,4 2 7 -9 2 0 ,3 8 9 2,647 8,507 14,620 51,532 60,309 196,386 85,934 270,052 76,362 255,261 89,149 316.994 45.264 161.851 60,591 224,477 196.788 722.215 442.571 1.362.960 1,318,040 5,515 23,268 94,541 128,132 129,205 170,476 72,978 101,723 262,175 330,027 14,243 874 2,317 4,829 3,210 1,614 935 164 135 138 27 iThis group of banks is the same as the group shown in table 11 7 under the heading “ Operating throughout the year." -1 7 8 ,8 9 9 1.074.235 3.570.235 FEDERAL DEPOSIT INSURANCE CORPORATION Income item Table 119. RATIOS OF INCOME OF ALL INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1978 IN THE UNITED STATES (S T A T E S A N D O T H E R A R E A S ) 1 BANKS GROUPED BY AMOUNT OF ASSETS Banks with assets of — Income item All banks Less than $5 million $5.0 million to $9.9 million Operating income— to ta l................................................................................. $100 .0 0 $1 00.00 $100 .0 0 $100 .0 0 $ 1 0 0 .0 0 Interest and fees on loans.......................................................................................... Interest on balances with depository institutions........................................... Income on federal funds sold and securities purchased under agreements to resell in domestic offices.......................................................... Interest on U.S. Treasury securities and on obligations of other U.S. Government agencies and corporations^............................................................. Interest on obligations of States and political subdivisions....................... Income from all other securities^.............................................................................. Income from fiduciary activities.............................................................................. Service charges on deposit accounts in domestic o ffices.......................... Other service charges, commissions, and fees................................................. Other operating income2................................................................................................ 67.08 5.91 60.01 .94 63.44 .70 65.66 .58 67.02 .56 $10.0 million to $24.9 million $25.0 million to $49.9 million $50.0 million to $99.9 million $100.0 million to $299.9 million $300.0 million to $499.9 million $500.0 million to $999.9 million $ 1 0 0 .0 0 $ 1 00.00 $ 1 0 0 .0 0 67.94 .60 67.11 .82 66.10 .87 $1.0 billion to $4.9 billion $5.0 billion or more $1 00 .0 0 $100.00 $100.00 66.09 1.60 65.93 4.80 68.06 11.95 Amounts per $ 1 0 0 of operating income 7.14 5.54 4.42 3.72 3.14 3.07 4.22 3.98 3.72 2.50 8.26 5.32 .96 1.88 1.80 2.59 2.96 22.10 3.03 .66 .11 2.82 2.11 1.08 18.50 4.72 .54 .29 3.00 2.17 1.10 15.23 6.99 .56 .39 3.20 2.00 .97 13.39 8.21 .62 .33 3.10 1.99 1.06 12.25 8.50 .65 .97 2.82 1.88 1.25 12.30 8.23 .67 1.63 2.50 2.27 1.40 11.34 7.31 .79 2.42 2.30 2.81 1.84 10.35 6.94 1.10 2.59 2.36 2.73 2.26 8.10 5.41 .59 3.23 1.93 3.17 3.12 3.50 2.67 1.41 1.90 .74 2.70 4.55 Operating expenses— t o t a l ............................................................................ 86.70 85.44 85.23 83.26 82.98 83.88 85.26 86.03 87.00 87.60 88.48 Salaries and employee benefits.............................................................................. Interest on deposits in domestic o ffices............................................................. Interest on deposits in foreign offices.................................................................. Expense of federal funds purchased and securities sold under agreements to repurchase in domestic offices.............................................. Interest on demand notes issued to the U.S. Treasury and other borrowed money.................................................................................... Occupancy expense of bank premises, net, and furniture and equipment expense..................................................................................................... Provision for possible loan lo ss.............................................................................. Other operating expenses............................................................................................. 16.50 31.39 12.82 25.22 37.33 .00 21.16 41.80 .00 18.89 43.14 .00 17.90 43.93 .00 18.07 43.72 .00 18.44 42.35 .05 18.88 38.96 .04 19.21 36.52 1.12 17.87 32.33 5.16 13.58 19.68 30.12 6.40 .29 .39 .56 .77 1.36 3.08 5.63 7.30 10.42 8.42 1.28 .06 .11 .10 .19 .24 .32 .38 .43 .81 2.61 5.32 3.10 9.89 5.38 3.16 14.00 5.43 3.54 12.80 5.25 3.03 12.29 5.39 2.94 11.86 5.71 2.88 11.90 6.35 2.77 11.90 6.50 2.84 12.60 7.18 3.19 12.05 6.20 3.60 11.21 4.11 3.04 6.92 Income before income taxes and securities gains or lo ss e s............... 13.30 14.56 14.77 16.74 17.02 16.12 14.74 13.97 13.00 12.40 11.52 8.09 7.02 1.08 .77 6.48 5.54 .94 .76 7.20 6.14 1.06 .83 7.65 6.37 1.28 1.00 8.12 6.74 1.38 1.07 8.04 6.75 1.30 1.01 8.27 7.05 1.22 .97 7.70 6.62 1.08 .85 7.96 6.92 1.03 .81 8.35 7.31 1.04 .75 8.11 7.17 .93 .56 INCOME OF INSURED BANKS 3.24 Amounts per $ 1 0 0 of total assets3 Operating income—total................................................................................................ Operating expenses—total............................................................................................. Income before income taxes and securities gains or losses.......................... Net income.......................................................................................................................... 175 176 Table 119. RATIOS OF INCOME OF ALL INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1978 IN THE UNITED STATES (STATES AND OTHER AREAS) 1 - CONTINUED BANKS GROUPED BY CLASS OF BANK - CONTINUED Banks with assets of — Income item Less than $5 million $5.0 million to $9.9 million $10.0 million to $24.9 million $25.0 million to $49.9 million $50.0 million to $99.9 million $100.0 million to $299.9 million $300.0 million to $499.9 million $500.0 million to $999.9 million $1.0 billion to $4.9 billion $5.0 billion or more .08 - .2 5 .25 .07 - .2 3 .20 .08 - .2 8 .25 .07 - .2 4 .23 .08 - .2 5 .24 .07 - .2 4 .23 .06 - .2 3 .23 .07 - .2 5 .22 .07 - .2 6 .25 .08 - .2 9 .30 .08 - .2 5 .25 12.93 - 4 .4 7 6.62 - 1 .6 1 8.92 - 1 .9 2 11.97 - 2 .6 7 13.59 - 3 .4 0 13.47 - 3 .9 4 13.79 - 4 .4 5 12.44 - 4 .1 7 12.45 - 4 .8 7 12.73 - 5 .2 5 13.17 - 5 .2 6 14.70 7.57 10.59 13.65 15.48 15.28 16.10 14.11 15.45 15.73 13.65 Amounts per $ 1 0 0 of equity c a p ita l Net income......................................................................................................................... Cash dividends declared on common sto ck.......................................................... Net change in capital accounts (less cash dividends on common and preferred sto ck).............................................................................................................. Special ratios^ Income on loans per $100 of loans..................................................................... Income on U.S. Treasury and on other U.S. Government agency and corporation securities per $100 of those securities...................................... Income on obligations of State and political subdivisions per $100 of those obligations.............................................................................................................. Service charge on demand deposits in domestic offices per $100 of those deposits................................................................................................................. Interest paid on time and savings deposits in domestic offices per $100 of those deposits................................................................................................ Number of banks at end of period........................................................................... 9.87 7.53 8.35 8.99 9.70 9.70 10.06 9.39 9.80 10.20 9.99 7.12 5.93 6.45 6.80 7.29 7.05 7.40 6.85 7.05 7.31 7.09 5.15 4.74 4.47 4.75 5.05 4.95 5.11 4.78 4.90 5.28 5.72 .55 .52 .69 .81 .85 .76 .69 .56 .57 .54 .29 6.15 4.59 5.14 5.51 5.93 5.91 6.15 5.70 6.00 6.40 6.66 14,243 874 2,317 4,829 3,210 1,614 935 164 135 138 27 group of banks is the same as the group shown in table 11 7 under "Operating throughout the year.” 2|ncome from securities held in trading accounts is included in "O ther operating income." iT h is ^Ratios are based on assets and liabilities repooted at end of year. FEDERAL DEPOSIT INSURANCE CORPORATION Recoveries credited to allowance.............................................................................. Losses charged to allowance....................................................................................... Provision for possible loan losses.............................................................................. All banks Table 120. INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1 9 7 3 -1 9 7 8 (Amounts in thousands of dollars) Income item 1973 1974 1975 19761 19771 19781 Operating income— total........................................................................................................................................................... 6,064.895 6,483,654 7,179,294 Interest and fees on real estate mortgage loans, net.................................................................................................................... Interest and fees on real estate mortgage loans, gross...................................................................................................... Less. Mortgage servicing fees .......................................................................................................................................................... Interest and fees on other lo ans............................................................................................................................................................. Interest on U.S. Government and agency securities....................................................................................................................... Interest on corporate bonds........................................................................................................................................................................ Interest on State, county, and municipal obligations.................................................................................................................... Interest on other bonds, notes, and debentures................................................................................................................................ Dividends on corporate stock..................................................................................................................................................................... Income from service operations................................................................................................................................................................ Other operating income................................................................................................................................................................................. 4,171,520 4,503,214 4,817,741 5,225,101 5,744,885 6,500,885 4.240.926 69.406 4.570.902 67.688 4.883,664 65.923 5.290,560 65,459 5.809.758 64.873 6,565.682 64.797 283,506 414,359 730,132 52,982 116,901 148,781 35,771 110,943 337,844 403,940 743,944 47,028 125,718 170,273 27,875 123,818 283,416 567,577 929,613 74,858 150,841 191,401 32,968 130,879 334.625 869,038 1,166,755 142,958 200,849 207,398 39,825 126,143 433,413 1,096,826 1,294,753 166,939 255,319 227,541 47,585 138,289 601,510 1,229,607 1,324,370 191,868 293,024 261,677 57,307 178,439 8,312,692 9,405,550 10,638,687 811,689 938,705 1,083,192 1,310,921 1,465,245 1,758,846 Salaries................................................................................................................................................................................................................ Pensions and other employee benefits................................................................................................................................................. Interest on borrowed money..................................................................................................................................................................... Occupancy expense of bank premises (including taxes, depreciation, maintenance, rentals), n e t............................ Furniture and equipment (including recurring depreciation)........................................................................................................ Actual net loan losses (charge-offs less recoveries).................................................................................................................... Other operating expenses........................................................................................................................................................................... 307,030 72,567 28,907 96,128 37,104 8,994 260,959 344,304 83,338 66,110 114,206 43,815 10,034 276,898 388,061 98,268 55,168 135,754 52,543 21,836 331,562 440,284 114,310 45,365 158,044 62,285 78,732 411,901 497,563 128,539 46,827 172,095 73,948 69,975 476,298 570,838 148,166 122,436 189,459 88,131 109,426 530,390 Net operating income before interest and dividends on d eposits............................................................................... 5,253.206 5,544,949 6,096,102 7,001,771 7,940,305 8,879,841 Interest and dividends on deposits— total.......................................................................................................................... 4 ,4 8 0,9 01 4 ,9 1 6 ,7 2 4 5 ,4 9 5 ,8 4 2 6 ,2 8 7 ,9 6 6 6 ,9 9 7 ,4 6 4 7 ,7 0 6,6 74 Savings deposits............................................................................................................................................................................................ Other time deposits....................................................................................................................................................................................... 3,567,595 913,306 3,607,170 1.309,554 3,778,695 1,717,147 4,160,435 2,127,531 4,222,013 2,775,451 3,930,597 3,776,077 Net operating income after interest and dividends on d ep osits................................................................................. 772,305 628,225 600,260 713,805 942,841 1,173,167 Net realized gains or losses on— to ta l............................................................................................................................... - 9 2 ,3 5 7 - 1 4 8 ,8 4 4 - 6 3 ,2 8 3 2 0 ,2 60 18,562 - 5 3 ,4 8 4 Securities........................................................................................................................................................................................................... Real estate mortgage loans........................................................................................................................................................................ Real estate........................................................................................................................................................................................................ Other transactions....................................................................................................................................................................................... -6 5 ,9 7 3 -2 0 ,1 8 7 -6 7 3 - 5 ,5 2 4 -111,501 -3 8 ,5 5 6 588 625 -2 5 ,8 9 9 -2 2 ,9 0 4 - 7 ,1 6 9 -7 ,31 1 49,283 -2 1 ,5 5 4 -4 2 3 -7 ,0 4 6 47,625 -4 0 ,9 8 8 -2 ,8 0 4 14,729 -44,941 -22 ,6 1 2 -2 ,0 1 3 16,082 Less minority interest in consolidated subsidiaries........................................................................................................ 0 0 37 5 1 0 Net income before taxes........................................................................................................................................................... 679,948 479,381 536,940 734,060 961,402 1,119,683 Franchise and income taxes— total....................................................................................................................................... 201,792 161,870 171,549 227,088 280,260 310,945 Federal income tax......................................................................................................................................................................................... State and local franchise and income taxes.................................................................................................................................. 114,500 87,292 81,089 80,781 66,543 105,006 107,801 119,287 139,242 141,018 171,002 139,943 Net income.................................................................................................................................................................................... 478,156 317,511 365,391 506,972 681,142 808,738 177 INCOME OF INSURED BANKS Operating expenses— t o ta l...................................................................................................................................................... 178 Table 120. INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 19 7 3 - 1978-CONTINUED (Amounts in thousands of dollars) Income item 1974 1975 561,695 27,805 369,166 32,406 407,314 109,383 545,665 41,722 834,461 40,381 826,213 44,280 Assets— total............................................................................................................................................. 90.850.840 94.426.708 101.714.468 114.044.800 126.744.049 137.407.307 Cash and due from banks................................................................................................................................................................................ U.S. Government and agency securities................................................................................................................................................... Other securities................................................................................................................................................................................................. Real estate mortgage lo ans.......................................................................................................................................................................... Other loans and discounts............................................................................................................................................................................. Other real estate............ ................................................................................................................................................................................ All other assets.................................................................................................................................................................................................... 1,676,216 6,299,082 16,238,983 61,600,178 2,967,740 170,868 1,897,773 1,825,066 5,950,081 16,410,896 64,695,689 3,250,960 207,125 2,086,891 2,067,540 7,823,837 19,035,575 66,698,116 3,388,551 320,468 2,380,381 1,934,535 11,482,069 23,065,574 70,314,531 4,084,414 457,255 2,706,422 2,102,650 14,456,447 25,823,209 75,523,639 5,355,664 478,620 3,003,820 2,587,020 15,859,816 27,146,283 81,925,483 6,171,468 415,516 3,301,721 94.426.708 1973 19761 19771 19781 Memoranda ............................................................... Change in surplus accounts, n e t Discount on securities, total................................................................................................................................................................................ Liabilities and surplus accounts— to ta l....................................................................................................... 101.714.468 114.044.800 126.744.049 137.407.307 83,212,442 85,994,384 92,850,364 104,554,349 116,405,474 125,472,005 82,350,237 862,205 85,097,902 896,482 91,885,361 965,003 103,540,616 1,013,733 115,084,387 1,321,087 123,758,082 1,713,923 1,381,121 6,257,277 1,763,885 6,668,439 1,803,741 7,060,363 1,849,625 7,640,826 1,947,906 8,390,669 2,683,144 9,252,158 Number of employees (end of period)........................................................................................................................................................... 35,668 37,494 40,261 45,040 49,466 53,806 Number of banks (end of period)....................................................................................................................................................................... 322 320 329 329 323 325 Total deposits.................................................................................................................................................................................................... Savings and time deposits....................................................................................................................................................................... ...................................................................... ........................................................................... ..................................................................... Demand deposits Other liabilities Total surplus accounts 1Averages of amounts reported at beginning, middle, and end of year. 90.850.840 FEDERAL DEPOSIT INSURANCE CORPORATION Average assets and liabilities 1 Table 121. RATIO OF INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1 9 7 3 -1 9 7 8 Income item 1973 1974 1975 19761 19771 19781 Operating income— to ta l............................................................................................................................................................................... $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 Interest and fees on real estate mortgage loans—n e t ........................................................................................................................................ Interest and fees on other loans....................................................................................................................................................................................... Interest on U.S. Government and agency securities.............................................................................................................................................. Interest on corporate bonds................................................................................................................................................................................................ Interest on State, county, and municipal obligations.............................................................................................................................................. Interest on other bonds, notes, and debentures....................................................................................................................................................... Dividends on corporate stock............................................................................................................................................................................................. Income from service operations....................................................................................................................................................................................... Other operating income........................................................................................................................................................................................................ 68.78 4.68 6.83 12.04 .87 1.93 2.45 .59 1.83 69.45 5.21 6.23 11.47 .73 1.94 2.63 .43 1.91 67.10 3.95 7.91 12.95 1.04 2.10 2.67 .46 1.82 62.85 4.03 10.45 14.04 1.72 2.42 2.49 .48 1.52 61.08 4.61 11.66 13.77 1.77 2.71 2.42 .51 1.47 61.11 5.65 11.56 12.45 1.80 2.75 2.46 54 1.68 Operating expense— t o t a l............................................................................................................................................................................. 13.38 14.48 15.09 15.77 15.58 16.53 Salaries........................................................................................................................................................................................................................................ Pensions and other employee benefits........................................................................................................................................................................ Interest on borrowed money................................................................................................................................................................................................ Occupancy expense of bank premises (including taxes, depreciation, maintenance, rentals)—net................................................... Furniture and equipment (including recurring depreciation)................................................................................................................................ Actual net loan losses (charge-offs less recoveries).............................................................................................................................................. Other operating expenses..................................................................................................................................................................................................... 5.06 1.20 .48 1.58 .61 .15 4.30 5.31 1.29 1.02 1.76 .68 .15 4.27 5.41 1.37 .77 1.89 .73 .30 4.62 5.30 1.38 .55 1.90 .75 .95 4.94 5.29 1.37 .50 1.83 .79 .74 5.06 5.37 1.39 1.15 1.78 .83 1.03 4.98 Amounts per $ 1 0 0 of operating income 86.62 85.52 84.91 84.23 84.42 83.47 73.88 75.83 76.55 75.64 74.40 72.44 Savings deposits2.................................................................................................................................................................................................................... Other time deposits^.............................................................................................................................................................................................................. 58.82 15.06 55.63 20.20 52.63 23.92 50.05 25.59 44.89 29.51 36.95 35.49 8.36 Net operating income after interest and dividends on d e p o s its ...................................................................................................... 12.74 8.59 10.02 Net realized gains (or losses) on— t o ta l................................................................................................................................................. — 1.53 - 2 .3 0 - .8 8 .24 .20 Securities..................................................................................................................................................................................................................................... Real estate mortgage loans................................................................................................................................................................................................ Real estate.................................................................................................................................................................................................................................. Other transactions. . . . .-..................................................................................................................................................................................................... - 1 .0 9 - .3 4 - .0 1 - .0 9 — 1.72 - .6 0 .01 .01 - .3 6 - .3 2 - .1 0 - .1 0 .59 - .2 6 - .0 1 - .0 8 .51 - .4 4 - .0 3 .16 - .4 2 - .2 1 - .0 2 .15 Less minority interest in consolidated su b sid ia rie s............................................................................................................................. .00 .00 (1) (1) (1) .00 Net income before ta x e s............................................................................................................................................................................... 11.21 7.39 7.48 8.83 10.22 10.53 Franchise and income taxes— t o ta l........................................................................................................................................................... 3.33 2.49 2.39 2.73 2.98 2.93 Federal income ta x................................................................................................................................................................................................................. State and local franchise and income taxes................................................................................................................................................................ 1.89 1.44 1.25 1.24 .93 1.46 1.30 1.43 1.48 1.50 1.61 1.32 Net incom e........................................................................................................................................................................................................ 7.88 4.90 5.09 6.10 7.24 7.60 11.03 - .5 0 179 9.69 INCOME OF INSURED BANKS Net operating income before interest and dividends on d ep o sits................................................................................................... Interest and dividends on deposits— to tal.............................................................................................................................................. 180 Table 121. RATIO OF INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 19 7 3 - 1978-CONTINUED 1973 1974 1975 19761 19771 19781 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 7.06 1.06 5.99 5.40 .59 - .0 6 .53 .17 .36 7.29 1.15 6.14 5.51 .63 .02 .64 .20 .44 7.42 1.16 6.26 5.52 .74 .01 .76 .22 .54 7.74 1.28 6.46 5.61 .85 - .0 4 .81 .23 .59 Interest on U.S. Government and agency securities per $100 of U.S. Government and agency securities........................................ Interest and dividends on other securities per $100 of other securities............................................................................................................ Interest and fees on real estate mortgage loans per $100 of real estate loans.............................................................................................. Interest and fees on other loans per $100 of other loans......................................................................................................................................... Interest and dividends on deposits per $100 of savings and time deposits....................................................................................................... Net income per $100 of total surplus accounts.............................................................................................................................................................. 6.58 6.46 6.77 9.55 5.44 7.64 6.79 6.62 6.96 10.39 5.78 4.76 7.25 7.07 7.22 8.36 5.98 5.18 7.57 7.45 7.43 8.19 6.07 6.64 7.59 7.53 7.61 8.09 6.08 8.12 7.75 7.63 7.94 9.75 6.23 8.74 Number of banks (end of period).......................................................................................................................................................................................... 322 320 329 329 323 325 Income item Amounts per $ 1 0 0 of total assets^ Special ratios^ 1Less than 0.005. 2See note to table 120. FEDERAL DEPOSIT INSURANCE CORPORATION Operating income —total............................................................................................................................................................................................................ Operating expense —to ta l......................................................................................................................................................................................................... Net operating income before interest and dividends on deposits........................................................................................................................... Interest and dividends on deposits—total......................................................................................................................................................................... Net operating income after interest and dividends on deposits.............................................................................................................................. Net realized gains (or losses)—total.................................................................................................................................................................................. Net income before taxes........................................................................................................................................................................................................... Franchise and income taxes—total........................................................................................................................................................................................ BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES: FDIC INCOME, DISBURSEMENTS, AND LOSSES Table 122. Number and deposits of banks closed because of financial difficulties, 1934 — 1978 Table 123. Insured banks requiring disbursements by the Federal Deposit Insurance Corporation during 1978 Table 124. Depositors, deposits, and disbursements in failed banks requiring disbursements by the Federal Deposit Insurance Corporation, 1934— 1978 Banks grouped by class of bank, year of deposit payoff or deposit assumption, amount o f deposits, and State Table 125. Recoveries and losses by the Federal Deposit Insurance Corporation on principal disbursements for protection of depositors, 1934— 1978 Table 126. Analysis of disbursements, recoveries, and losses in deposit insurance transactions, January 1, 1 93 4 — December 31, 1978 Table 1 27. Income and expenses, Federal Deposit Insurance Corporation, by year, from beginning of opera tions, September 11, 1933, to December 31, 1978 Table 128. Protection of depositors of failed banks requiring disbursements by the Federal Deposit Insurance Corporation, 1934— 1978 Table 129. Insured deposits and the deposit insurance fund, 1934— 1978 182 Noninsured bank failures Disbursements by the Federal Deposit Insurance Corporation to protect depositors are made when the insured deposits of banks in financial difficulties are paid off, or when the deposits of a failing bank are assumed by another insured bank with the financial aid of the Corporation. In deposit payoff cases, the disbursement is the amount paid by the Corporation on insured deposits. In deposit assumption cases, the principal disbursement is the amount loaned to failing banks, or the price paid for assets purchased from them; additional disbursements are made in those cases as advances for pro tection of assets in process of liquidation and for liquidation expenses. Under its section 13(c) authority, the Corporation has made disbursements to four operating banks. The amounts of these disbursements are included in table 126, but are not included in tables 124 and 125. Statistics in this report on failures of noninsured banks are compiled from information obtained from State banking departments, field supervisory officials, and other sources. The Corporation received no reports of nonin sured bank closures due to financial difficulties in 1978. For detailed data regarding noninsured banks that suspended in the years 1934-1962, see the Annual Report for 1963, pp. 27-41. For 1963-1978, see table 122 of this report, and previous reports for respective years. Sources of data Insured banks: books of bank at date of closing; and books of FDIC, Decem ber 31, 1978. FEDERAL DEPOSIT INSURANCE CORPORATION Deposit insurance disbursements Table 122. NUMBER AND DEPOSITS OF BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES, 1 9 3 4 -1 9 7 8 Number Deposits (in thousands of dollars) Insured Year Total T o ta l............................ 692 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 4 144 17 6 7 Total 136 556 52 6 3 7 7 12 5 2 3 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 a 7 6 1 6 4 13 16 6 7 1 1 4 1 3 1 1 2 1 1 5 1 4 2 1 4 1 14 2 14 1 Insured Without disbursements by FDIC2 8 With disbursements by FDIC3 548 9 25 69 75 74 60 43 15 20 5 2 1 1 5 3 4 4 2 3 2 2 5 2 1 4 3 1 5 2 7 5 7 4 3 9 7 6 1 6 4 13 16 6 7 Total Noninsuredl Total 6,081,926 143,500 5,938,426 37,332 13,988 28,100 34,205 60,722 160,211 142,788 29,796 19,540 12,525 1,915 5,695 494 7,207 10,674 9,217 5,555 6,464 3,313 45,101 2,948 11,953 11,690 12,502 10,413 2,593 7,965 10,611 4,231 23,444 23,867 45,256 106,171 10,878 22,524 40,134 55,2444 132,152 99,784 971,296 1,575,832 340,5744 865,659 205,208 854,154 35,364 583 592 528 1,038 2,439 358 79 355 1,968 13.405 27,508 33,677 59,684 157,772 142,430 29,717 19,185 12,525 U15 5,695 347 7,040 10,674 6,665 5,513 3,408 3,170 44,711 998 11,953 1U 30 11,247 8,240 2,593 6^930 8,936 3,011 23,444 23,438 43,861 103,523 10,878 22,524 40,134 54,821 132,152 20,480 971,296 1,575!832 339,574 864,859 205,208 854,154 147 167 2,552 42 3,056 143 390 1,950 360 1,255 2,173 1,035 1,675 1,220 429 1,395 2,648 4234 79,304 1,0004 800 Without disbursements by FDIC2 41,147 85 328 1,190 26,449 10,084 With disbursements by FDIC3 5,897,279 1,968 13,320 27,508 33,349 59,684 157,772 142,430 29,717 19,185 12,525 1*915 5,695 347 7,040 10,674 5475 5,513 3,408 3,170 18,262 998 11,953 1U30 1,163 8,240 2,593 6^930 8,936 3,011 23,444 23,438 43,861 103,523 10,878 22*524 40J 34 54,821 132,152 20^480 971,296 1,575^832 339^574 864,859 205,208 854’, 154 183 1For information regarding each of these banks, see table 22 in the 1963 Annual Report (1963 and prior years), and explanatory notes to tables regarding banks closed because of financial difficulties in subsequent annual reports. One noninsured bank placed in receivership in 1934, with no deposits at time of closing, is omitted (see table 22, note 9). Deposits are unavailable for seven banks. 2For information regarding these cases, see table 23 of the Annual Report for 1963. 3For information regarding each bank, see the Annual Report for 1958, pp. 48 — 83 and pp. 9 8 — 127, and tables regarding deposit insurance disbursements in subsequent annual reports. Deposits are adjusted as of December 31, 1978. Digitized ^Revised. for FRASER BANKS CLOSED; FDIC INCOME, DISBURSEMENTS, AND LOSSES 1934 ................................ 1935 ................................ 1936 ................................ 1937 ................................ 1938 ................................ 1939 ................................ 1940 ................................ 19 4 1 ................................ 1942 ................................ 1943 ................................ 1944 ................................ 1945 ................................ 1946 ................................ 1947 ................................ 1948 ................................ 1949 ................................ 1950 ................................ 1 951................................ 1952 ................................ 1953 ................................ 1954 ................................ 1955 ................................ 1956 ................................ 1957 ................................ 1958 ................................ 1959 ................................ 1960 ................................ 1 9 6 1 ................................ 1962 ................................ 1963 ................................ 1964 ................................ 1965 ................................ 1966 ................................ 1967 ................................ 1968 ................................ 1969 ................................ 1970 ................................ 1 9 7 1 ................................ 1972 ................................ 1973 ................................ 1974 ................................ 1975 ................................ 1976 ................................ 1977 ................................ 1978 ................................ Non insured! Table 123. INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION DURING 1978 Deposit payoff 310 Number of depositors or accounts^ Class of bank Name and location 184 Case number First payment to depositors or disbursements by FDIC Date of closing or deposit assumption FDIC disbursement? Receiver or liquidating agent or assuming bank Watkins Banking Company Faunsdale, Alabama NM The Drovers' National Bank of Chicago. Illinois N 43,800 January 19, 1978 118,745,794 240 First Bank of Macon County Notasulga. Alabama NM 2,919 January 26, 1978 2,129,469 First Alabama Bank Notasulga, Alabama 241 Wilcox County Bank Camden, Alabama NM 3,447 March 1, 1978 8,200,572 Town-Country National Bank Camden, Alabama 242 Banco Credito y Ahorro Ponceno Ponce, Puerto Rico NM 294,000 Deposit assumption 239 492 July 21, 1978 July 24, 1978 $ Federal Deposit Insurance Corporation Drovers' Bank of Chicago Chicago, Illinois Banco Popular de Puerto Rico San Juan, Puerto Rico 323,513,861 Banco de Santander-Puerto Rico San Juan, Puerto Rico 243 Banco de Ahorro de Puerto Rico San Juan, Hato Rey, Puerto Rico NM 4,202 September 5, 1978 9,526,147 244 North Point State Bank Arlington Heights, Illinois NM 15,500 December 16, 1978 14,739,518 Assets 1 Case number Deposit payoff 310 Deposit assumption 239 Cash and due from banks $ 140,240 U.S. Govern ment obligations $ 417,857 Other securities $ 69,170 Loans, discounts, and overdrafts $ 996,973 Banco Commercial de Mayaguez Mayaguez, Puerto Rico The Bank & Trust Company of Arlington Heights Arlington Heights, Illinois Liabilities and capital accounts Banking house, furniture, and fixtures $ Other real estate 33,074 Other assets $ 2,518 Total $ 1,659,832 Deposits $ 1,282,300 Other liabilities $ 261,967 Capital stock $ 25,000 Other capital accounts $ 90,565 25,812,566 33,407,874 24,773,620 118,385,283 3,395,957 15,022,418 6,028,710 226,826,428 197,165,861 29,744,830 5,500,000 240 249,770 748,225 19,656 3,489,851 5,898 13,264 11,661 4,538,325 3,825,059 348,588 100,000 241 277,637 1,906,739 849,012 9,345,874 212,095 24,038 36,713 12,652,108 10,585,424 1,723,777 250,000 92,907 242 36,606,190 42,325,511 81,539,041 492,269,015 3,785,452 7,023,155 48,991,770 712,540,134 607,610,688 79,455,389 13,457,525 12,016,532 7,244,109 213,698 701,533 18,756,940 432,472 243 691,320 300,000 244 2,717,464 498,850 2,990,488 - 264,678 201,353 9,352,013 11.831,012 393,369 519,674 (3,392,042) 1,069,784 26,465,998 21,850,142 1,716,013 410,000 2,489,843 1Figures as determined by FDIC Agents after adjustments of books of the bank immediately following its closing. 2|ncludes disbursements made to December 31, 1978, plus additional disbursements estimated to be required in these cases. (5,584,263) FEDERAL DEPOSIT INSURANCE CORPORATION March 31, 1978 818,259 Table 124. DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN FAILED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, 1 9 3 4 -1 9 7 8 BANKS GROUPED BY CLASS OF BANK, YEAR OF DEPOSIT PAYOFF OR DEPOSIT ASSUMPTION, AMOUNT OF DEPOSITS, AND STATE Classification All banks................................................ Total 548 Payoff cases 304 Deposits"! (in thousands of dollars) Number of depositors! Assump tion cases Total Payoff cases Assump tion cases Total Payoff cases Disbursements by FDIC1 (in thousands of dollars) Assump tion cases Advances and expenses2 Principal disbursements Total Payoff cases3 Assump tion cases^ Payoff cases5 Assump tion casesS 244 3,764,874 623,546 3,141,328 5,897,279 469,533 5,427,746 4,678,8668 325,951 4,352,915 9,148 204,637 65 1,538,957 428,129 1,797,788 108,812 88,894 425,840 1,430,145 339,235 1,371,948 3,262,117 438,232 2,196,930 113,780 34,388 321,365 3,148,337 403,844 1,875,565 3,061,622 322,675 1,294,569 65,230 26,500 234,221 2,996,392 296,175 1,060,348 2,917 106,286 23,953 74,398 15,767 44,655 89,018 130,387 203,961 392,718 256,361 73,005 60,688 27,371 5,487 12,483 1,383 10,637 18^540 5^671 6,366 5,276 6*752 24,469 1,811 17,790 15,197 2,338 9,587 3,073 11,171 15,767 32,331 43,225 74,148 44,288 90,169 20,667 38,594 5,717 16,917 899 1,968 U 320 27,508 33,349 59,684 157,772 142,430 29,717 19,185 12,525 1,915 5,695 347 7,040 10,674 5*475 5*513 3^408 3*170 18,262 998 11,953 11,330 1,163 8^240 2,593 6,930 1,968 9^091 11,241 14,960 10,296 32,738 5,657 14,730 1,816 6,637 456 941 8,891 14,460 19,481 30,479 67,770 74,134 23,880 10,825 7,172 1,503 1,768 265 1,724 2 990 2,552 3,986 1,885 1^369 5 017 913 6,784 3,458 1,031 3^026 1,835 4,765 941 6,026 7,735 12,365 9,092 26,196 4,895 12,278 1,612 5,500 404 Class of bank National.................................................... State member F.R.S............................. Nonmember F.R.S.................................. Year? 1934................................................................ 1935 ................................................................ 1936 ................................................................ 1937 ................................................................ 1938 ................................................................ 1939 ................................................................ 1940................................................................ 1 941................................................................ 1942 ................................................................ 1 943................................................................ 1 944................................................................ 1945 ................................................................ 1946 ................................................................ 1947 ................................................................ 1948 ............ 1949 ................................................................ 1950 ................................................................ 1 951................................................................ 1952 ................................................................ 1953 ................................................................ 1954................................................................ 1955 ................................................................ 1956 ................................................................ 1957 ................................................................ 1958 ................................................................ 1959 ................................................................ 1960 ................................................................ 36 10 20 258 159 9 25 69 75 74 60 43 15 9 24 42 50 50 32 19 1 20 8 6 27 25 24 28 24 7 14 5 4 1 2 1 1 1 1 1 1 5 3 4 4 5 3 4 4 2 2 3 2 2 5 2 1 4 3 1 3 2 2 1 1 3 3 1 1 8,080 5,465 2 338 4,380 3,073 11,171 12,324 45,793 56,239 159,673 302,549 235,694 34,411 54,971 10,454 4,588 12,483 1,383 10,637 18,540 5*671 6*366 5*276 6 J5 2 24,469 1*811 9^710 9,732 5,207 6,503 4,702 1,163 4! 156 2,593 6,930 4,229 16,267 18,389 49,388 125,034 136,773 14,987 17,369 5,888 1,459 5,695 347 7,040 10 674 5,475 5,513 3 408 3,170 18,262 998 5,450 6,628 4,084 4,438 2,795 1,031 2,796 1 835 4,765 2,865 6,725 7,116 21,387 41,574 69,239 11,602 9,213 1,672 1,099 1,768 265 1 724 ? QQfl 2 552 3*986 1 885 1 369 5 017 913 2,346 663 230 1,112 5,119 43 108 67 103 93 162 89 50 38 53 9 272 934 905 4,902 17,603 17,237 1,479 1,076 72 37 96 ]] 106 87 20 38 51 82 zuu 11fifi Du 524 197 1LI 1I jQjR 428 145 665 51 31 185 101 30 417 BANKS CLOSED; FDIC INCOME, DISBURSEMENTS, AND LOSSES Number of banks 186 Table 124. DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN FAILED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, 19 34-1978-C O N TIN U E D BANKS GROUPED BY CLASS OF BANK, YEAR OF DEPOSIT PAYOFF OR DEPOSIT ASSUMPTION. AMOUNT OF DEPOSITS, AND STATE Classification Total Payoff cases Assump tion cases Total Payoff cases Disbursements by FDICf (in thousands of dollars) Deposits! (in thousands of dollars) Number of depositor! Number of banks Assump tion cases Total Payoff cases 5 2 7 5 7 4 3 9 7 6 1 6 4 13 16 6 7 5 2 7 3 1 4 107 109 62 72 59 58 34 24 7 6 7 2 1 7 1 8 6 8 8,301 36,433 19,934 14,363 1,012 4,729 24 23 25 36 37 36 27 15 6 5 7 2 1 38,347 83,370 92,179 160,388 211,352 302,665 294,630 375,371 308,637 244,265 394,670 629 000 630!000 29,695 65,512 57,287 74,296 70,846 89,127 50,445 146,454 12,481 27,403 8,652 17,858 34,892 86,092 140,506 213,538 244,185 228,917 296,156 216,862 394,670 629,000 630,000 6,418 17,759 22,315 54,424 79,547 190,451 231,127 384,848 257,585 525,377 1,142,879 1,539,566 1,444,982 3 4 1 2 3 4 16,048 2,692 6,350 390,819 18,852 2,571 13,477 2,692 1,809 372,929 12,770 21,865 5,044 4,836 1,032,658 24,749 1 6,544 20,403 31,850 23,655 8,382 21,925 8,246 24 516 4,947 13,920 12,921 26,820 29,173 70,385 55,868 148,421 40,176 66,902 1,471 3,839 9,394 27,604 50,374 120,066 175,259 236,427 217,409 458,475 1,142,879 1,539,566 1,444,982 5,000 12,906 15,615 36,057 46,466 114,576 127,930 237,983 118,732 344,942 705,7579 728,329 2,184,5718 5,270 16,595 5,044 2,894 986,438 18,345 341,317 704,283 88,442 332,485 95,524 363,868 83 86 37 36 22 22 7 9 1 1 3 3 3 5 3 1 945,501 1,575,832 299,672 846,000 205,100 852,868 8,936 23,444 23,438 42,889 774 10,878 ’ 3 4 10 13 6 6 4 4 5 1 3 2 6 6,201 19,230 13,744 11,431 8,732 8,120 5,586 37,619 49,318 162,089 16,274 410,768 2,257,6308 303,131 549,376 21,8109 494,903 8,936 23,444 23,438 43,861 103,523 10,878 22,524 40,134 54,821 132,152 20,480 971,296 1,575,832 339,574 864,859 205,208 854,154 8 301 36,433 19,934 15,817 95,424 4 729 12,850 27,374 31,433 71,950 23,655 349,699 704,283 110,367 340,731 95,548 364,384 1,454 94,412 12,850 20,830 11,030 40,100 9,012 33,489 74,605 20,480 25,795 39,902 18,859 108 1,286 972 102,749 22,524 31,122 21,332 57,547 Payoff cases3 6,201 19,230 13,744 10,958 735 8,120 7,599 29,354 53,790 16,274 16,802 25,992 11,630 818 Assump tion cases^ 473 7.997 5,586 30,020 19,964 108,299 393,966 2,257,630 277,139 537,746 21,810 494,085 Payoff cases5 154 349 599 640 35 241 300 698 788 375 1,320 1,316 1,097 37 Assump tion cases6 123 1,609 1,114 4,401 1,859 10,795 1,001 82,003 19,551 21,713 1,761 11,156 Banks with deposits of: Less than $100,000 ................................ $100,000 to $250,000 .......................... $250,000 to $500,000.......................... $500,000 to $1,000,000....................... $1,000,000 to $2,000,000 ................. $2,000,000 to $5,000,000 ................. $5,000,000 to $10,000,000 $10,000,000 to $25,000,000 ............ $25,000,000 to $50,000,000 ........... $50,000,000 to $100,000,000 . . . . $100 000,000 to $500,000,000 $50 o!ooo!ooo to $1,000,000,000 $1 000 000 000 or mors 4,309 11,554 10,549 20,962 22,886 52,052 37,964 108,954 9,700 47,021 691 1,352 5,066 15,095 23,580 62,524 89,966 129,029 109,032 297,921 705,757 728,329 2,184,571 88 209 164 444 738 1,177 950 2,544 581 513 810 930 154 173 611 2,352 3,950 9,329 12,534 12,181 27,613 23,156 36,726 3,894 71,962 3,384 11,543 5,082 1,832 429,147 9,315 131 572 394 293 3,809 2,476 State Alabama.......................................................... Arizona . . Arkansas ....................................................... California....................................................... Colorado.......................................................... 6 3 4 4,541 17,890 6,082 1,942 46,220 6,404 14,927 5,082 3,408 442,093 13,926 1,576 12,946 4,611 43 1,605 292 FEDERAL DEPOSIT INSURANCE CORPORATION Total 1961 1963 1964 1965 ................................................................ 1966 ................................................................ 1967 1968 1969 ................................................................ 1970 ................................................................ 1971................................................................ 1972 1973 ................................................................ 1974 1975 ................................................................ 1976 ................................................................ 1977 ................................................................ 1978 ................................................................ Advances and expenses2 Principal disbursements Assump tion cases 3 5 12 2 25 2 2 8 2 10 Indiana............................................................. Io w a ................................................................ Kansas............................................................. Kentucky....................................................... Louisiana....................................................... 20 11 11 26 6 15 5 6 20 4 Maryland....................................................... Massachusetts............................................ Michigan....................................................... Minnesota.................................................... 1 5 5 14 5 2 1 5 5 Mississippi.................................................... Missouri.......................................................... Montana.......................................................... Nebraska....................................................... New Hampshire............................................ 4 52 5 8 1 New Je rse y ................................................. New York....................................................... North Carolina.............................................. North Dakota............................................... Ohio................................................................... 1 3 4 15 8,839 14,082 32,442 2,451 160,955 5,379 1,725 8,797 2,451 44,383 5 6 5 6 2 30,006 25,206 8,065 40,313 79,117 12,549 5,736 3,824 19,352 8,999 1 3 4 9 9 710 22,567 42,279 172,607 2,650 6,643 23,655 10,452 2,650 3 38 3 8 1 14 2 1 14,351 55,554 1,500 7,773 1,780 42 28 7 29 5 13 3 2 18 2 29 25 5 11 3 Oklahoma....................................................... Oregon............................................................. Pennsylvania................................................. South Carolina............................................ South Dakota.............................................. 13 2 31 3 23 8 1 8 1 22 Tennessee .................................................... Texas................................................................ Utah................................................................... Vermont.......................................................... Virginia .......................................................... 13 46 1 3 9 8 33 Washington.................................................... West Virginia.............................................. Wisconsin....................................................... Wyoming....................................................... 1 3 33 1 2 4 3 20 3,460 12,357 23,645 116,572 4,326 17,665 53,981 1,894 334,275 1,526 2,668 1,870 1,894 28,972 17,457 19,470 4,241 20,961 70,118 13,595 29,964 7,665 16,072 176,274 3,933 8,535 4,358 5,768 9,735 9 710 15,924 18,624 162,155 5,450 4^566 38,696 194,399 818 828 20,480 13,477 818 1,651 37,977 849 7,773 12,700 17,577 651 1,780 15,686 29,153 1,095 11,644 296 563,917 925,621 10,408 14,103 21,251 113,692 28,440 3,677 6,760 7,585 450,225 897,181 6,731 7,343 13,666 5 1 23 2 1 28,672 3,439 182,590 68,080 12,515 20,149 1,230 43,828 403 11,412 5 13 1 1 5 132,358 125,988 3,254 11 !o57 35,715 9,993 80,965 1 13 1 4,179 8,346 62,247 3,212 ' 3 11,073 369,840 8,687 12,638 8,346 18,739 2,800 14,997 52,111 305,303 3,375 11,171 36,993 1,493 212^366 1,242 2,139 1,551 1,493 23^924 9,662 21,429 3,307 10,304 166,539 6,197 17,670 5,672 12,479 141,915 3,096 6,469 3,601 5,041 4,937 5,450 3 J3 8 18,216 180,922 2,346 3! 109 27,257 142,516 640 735 16,275 12,242 640 334 18,167 215 11,644 15.352 10,986 880 12,012 21,492 639 8,116 117 250,383 1,755,500 3,266 3,830 102,838 49,122 13,286 1,421 1,552 2,345 201,261 1,742,214 1,845 2,278 100,493 8,523 2,209 138,762 67,677 1,103 20,720 2,670 96,907 113,553 2,988 11,053 1,368 14,340 136 2,862 9,667 1,302 82,567 113,417 126 122,365 45,023 3,254 2^370 23,077 338,234 210,359 5,992 3,'725 17,779 1,620 142,151 4,179 43,508 3,212 1,538 2,006 112,627 2,033 369,840 14,219 789,442 2,006 5,966 10,647 3,101 11,201 2,071 7,438 136,978 39 149 60 156 149 384 730 288 621 3,982 2,346 2,374 10,982 130,274 257 14,028 186 8,116 11,755 7,464 453 40,049 10,836 1,156 1,397 1,610 11,665 1.948 67,485 60,650 2,411 336,614 68,208 5,992 350 10,127 128,008 137,947 3,538 3,445 8,263 1,538 106,661 2,033 935 1,458 117,980 202 1,458 5,096 8,712 351,5229 8,712 789,442 296 3,375 7,652 188,442 8 65 33 29 513 2,133 9,032 35,442 121,994 2,407,8598 2,387 2.656 90,788 '’ 9 374 204 17 496 698 2,096 665 371 1,994 13,677 5 330 6 151 518 1,185 21 81,945 2,397,023 1,231 1,259 89,178 519 842 23 24 7 22,790 82,809 179 203 4,388 7,936 986 10,133 136 2,388 3,729 962 57,352 60,514 23 178 11 75 800 81 10,736 8,751 9 1,164 97,279 126,844 40,668 3 538 186 4,396 28 1,760 8 117 3,259 3,867 26 ’ 2l' 305 935 112,884 202 8,289 4,010 300 22 505 512 11 54 10,255 19 Other areas Virgin Islands.............................................. Puerto Rico.................................................... 1 3 1 11,073 14,219 897 351,522 4,053 Note: Due to rounding diffierences, components may not add to totals. 187 1Adjusted to December 31, 1978. In assumption cases, number of depositors refers to number of deposit accounts. 2Excludes $1,429 thousand of nonrecoverable insurance expenses in cases that were resolved without payment of claims or a disbursement to facilitate assumption of deposits by another insured bank and other expenses of field liquidation employees not chargeable to liquidation activities. 3|ncludes estimated additional disbursements in active cases. ^Excludes excess collections turned over to banks as additional purchase price at termination of liquidation. 5These disbursements are not recoverable by the Corporation; they consist almost wholly of field payoff expenses. 6|ncludes advances to protect assets and liquidation expenses of $192,387 thousand, all of which have been fully recovered by the Corporation, and $12,250 thousand of nonrecoverable expenses. ^No cases in 1962 required disbursements. Disbursement totals for each year relate to cases occurring during that year, including disbursements made in subsequent years. “ includes disbursements by liquidators in field ($1.5 billion) which were previously excluded from this table. 9|n 1977 the assets of Banco Economias were purchased outright by the Corporation. Disbursements in the case are included in table 126 under "Other disbursements” and are not included in this table. BANKS CLOSED; FDIC INCOME, DISBURSEMENTS, AND LOSSES Connecticut.................................................... Florida............................................................. Georgia.......................................................... Idaho................................................................ Illinois............................................................. Table 125. RECOVERIES AND LOSSES BY THE FEDERAL DEPOSIT INSURANCE CORPORATION ON PRINCIPAL DISBURSMENTS FOR PROTECTION OF DEPOSITORS, 1 9 3 4 -7 8 Number of banks Total.......................... 548 4.678.866 73 475 Recoveries to Dec. 31, 1978 Estimated additional recoveries 304 325,951 272,345 255,238 32,060 23 281 173,997 151,954 139,156 133,189 207 2,682 2,333 3,672 2,425 7,152 3,796 591 688 123 40 9 24 42 50 50 32 19 8 6 4 1 941 6,026 7,735 12,365 9,092 26,196 4,895 12,278 1,612 5,500 404 734 4,274 6,397 9,718 7,908 20,399 4,313 12,065 1,320 5,376 363 Losses1 3,539,242 852,326 287,298 4.281,170 397.696 3,173,606 365,636 852,326 941 8,891 14,460 19,481 30,479 67,770 74,134 23,880 10,825 7,172 1,503 1,768 265 1,724 2,990 2,552 3,986 1,885 1,369 5,017 913 6,784 3,458 1,031 3,026 1,835 4,765 6,201 19,230 13,744 11,431 8,732 8,120 5,586 37,619 49.318 162,089 16,274 410,768 2,257,6305 734 6,206 12,127 15,808 28,055 60,618 70,338 23,290 10,136 7,048 1,462 1,768 265 1,666 2,349 2,183 2,601 1,885 577 5,017 654 6,554 3,245 1,031 2,998 1,738 4,765 4,699 18,792 12,080 6,761 8,238 7,016 5,575 37,463 45,386 159,387 10,630 192,154 1,881,708 215,260 349,860 11,287 297,828 Recoveries to Dec. 31, 1978 Deposit assumption cases Deposit payoff cases Principal disburse ments2 Estimated additional recoveries Principal disburse ments 188 (Amounts in thousands of dollars) All cases Liquidation status and year of deposit payoff or deposit assumption Number of banks Losses 1 Number of banks Principal disburse ments3 Recoveries to Dec. 31, 1978 Estimated additional recoveries 20,366 33,240 244 4,352,915 Losses 1 3,266,897 831,960 254,058 20,366 14,475 18,765 50 194 4,107,173 245,742 3,034,450 232,447 831,960 240,763 13,295 3 930 995 1,025 1,241 1,355 3,214 378 396 1 58 641 369 1,385 Status Active........... Terminated . . . Year4 1970 1971. 1972 1973. 1974. 1975. 1976 1977 1978 9 25 69 75 74 60 43 15 20 5 2 1 1 5 3 4 4 2 3 2 2 5 2 1 4 3 1 5 2 7 5 7 4 3 9 7 6 1 6 4 13 16 6 7 303,131 549,376 21,810 494,903 3 1 207 1,752 1,338 2,647 1,184 5,797 582 213 292 123 40 58 641 369 1,385 792 258 230 213 28 97 1,502 438 18 606 9 30 1 52 2,961 2,438 1,645 68,382 369,922 49,536 159,891 7,123 189,270 1,646 4,063 487 1,074 11 105 970 263 4,000 150,232 6,000 38,335 39,625 3,400 7,805 4 1 1 3 3 1 5 2 7 3 1 4 4,438 2,795 1,031 2,796 1,835 4,765 6,201 19,230 13,744 10,958 735 8,120 4,208 2,582 1,031 2,768 1,738 4,765 4,699 18,792 12,080 6,435 735 7,016 4 4 5 1 3 7,599 29,354 53,790 16,274 16,802 7,444 25,857 51,091 10,630 16,771 3 3 25,992 11,630 1 818 13,950 6,886 230 213 28 97 1 27 25 24 28 24 7 14 1 1 1 1 5 3 4 4 2 3 2 2 1 1 2,865 6,725 7,116 21,387 41,574 69,239 11,602 9,213 1,672 1,099 1,768 265 • 1,724 2,990 2,552 3,986 1,885 1,369 5,017 913 2,346 663 1.932 5,730 6,090 20,147 40,219 66,025 11,225 8,816 1,672 1,099 1,768 265 1,666 2,349 2,183 2,601 1,885 577 5,017 654 2,346 663 1 230 230 2 6 473 7,997 326 7,503 9 3 5 3 1 5,586 30,020 19,964 108,299 5.575 30,019 19,529 108,296 1 2 11 183 2 250 3 4 10 13 6 6 393,966 2,257,630 277,139 537,746 21,810 494,085 175,383 1,881,708 201,310 342,974 11,287 297,828 68,351 369,922 150,232 6,000 36,400 36,590 3,400 7,505 components may not add to totals. 258 1,502 438 18 606 1,646 3,917 30 1,074 50 2,778 2,436 1,645 31 105 720 263 4,000 10,107 1,709 1,935 3,035 518 300 11ncludes estimated losses in active cases. Not adjusted for interest or allowable return, which was collected in some cases in which the disbursement was fully recovered 2|ncludes estimated additional disbursements in active cases. 3Excludes excess collections turned over to banks as additional purchase price at termination of liquidation 4|\lo case in 1962 required disbursements. 5 Includes collections and disbursements by liquidators in the field ($1.5 billion), previously excluded from this table. Due to rounding differences, Digitized forNote: FRASER 792 39.429 158 182 7,123 188,752 146 487 FEDERAL DEPOSIT INSURANCE CORPORATION 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. 1963. 1964 1965. 1966 1967 1968 1969. Table 126. ANALYSIS OF DISBURSEMENTS, RECOVERIES, AND LOSSES IN DEPOSIT INSURANCE TRANSACTIONS, JANUARY 1, 1934 — DECEMBER 31, 1978 (In thousands) Disbursements Recoveries! Losses All disbursements— total..................................................................................................................................................................................... $5,074,0712 $ 4 ,7 2 4 ,5 3 5 2 $ 3 49 ,5 3 6 Principal disbursements in deposit assumption and payoff ca se s— to ta l.................................................................................. 4.678,866 4,391,568 287,298 Loans and assets purchased in liquidations (244 deposit assumption cases): To December 31, 1978...................................................................................................................... 4,119,165 3,165,564 699,543 254,058 Notes purchased to facilitate deposit assumptions, mergers, or consolidations: To December 31, 1978...................................................................................................................... 233,750 101,333 132,417 0 Deposits paid (304 deposit payoff cases):3 To December 31, 1978................................................................................................................ Estimated additional............................................................................................... 325,090 861 272,345 20,366 33,240 213.785 192,387 21,398 106,172 86,215 12,250 9,148 106,172 86,215 0 0 0 0 12,250 9,148 181,420 140,580 40,840 9,936 5,282 543 4,111 34,574 9,171 4,703 20,700 15,281 440 241 0 14,600 83,200 37,000 0 Advances and expenses in deposit assumption and payoff ca se s— total1............... Expenses in liquidating assets: Advances to protect a ssets............................................................................................................................ Liquidation expenses........................................................................................................................................................ Insurance expenses^........................................................................................................................................................ Field payoff and other insurance expenses in deposit payoff cases4........................................................... Other disbursements— total........................................................................................................................ Corporation purchases: To facilitate termination of liquidations.To December 31, 1978.................................................... Estimated additional.......................................................... To purchase assets from operating insured banks: To December 31, 1978....................................................... Estimated additional............................................................. Other assets purchased outright: To December 31, 1978.................................................... Estimated additional.......................................................... Unallocated insurance expenses^....................................................... Assistance to operating insuued banks: To December 31, 19785................................................................................................................................................................................................ Estimated additional..................................................................................................... .............................................................. 1,429 120,200 1,429 BANKS CLOSED; FDIC INCOME, DISBURSEMENTS, AND LOSSES Type of disbursement 1Excludes amounts returned to closed bank equity-holders and $92.2 million of interest and allowable return received by the FDIC. 2|ncludes collections and disbursements by liquidators in the field ($1.5 billion), previously excluded from this table. 3|ncludes estimated amounts for pending and unpaid claims in active cases. ^Not recoverable. ^Excludes $32 million originally disbursed as assistance to Farmers Bank of the State of Delaware and subsequently applied to assets purchased from operating insured banks. 189 190 Table 127. INCOME AND EXPENSES, FEDERAL DEPOSIT INSURANCE CORPORATION, BY YEAR, FROM BEGINNING OF OPERATIONS, SEPTEMBER 11, 1933, TO DECEMBER 31, 1978 (In millions) Income Year Total Expenses and losses Deposit insurance assessments 1 Investments and other sources2 Total $1,470.1 $10,266.1 $5,022.3 $5,243.8 1978..................................................... 1977 ..................................................... 1976..................................................... 1975..................................................... 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..................................................... 1933-34 .......................................... 952.1 837.8 764.9 689.3 668.1 561.0 467.0 415.3 382.7 335.8 295.0 263.0 241.0 214.6 197.1 181.9 161.1 147.3 144.6 136.5 126.8 117.3 111.9 105.7 99.7 94.2 88.6 83.5 84.8 151.1 145.6 157.5 130.7 121.0 99.3 86.6 69.1 62.0 55.9 51.2 477 48.2 43.8 20.8 7.0 367.0 319.4 296.5 278.9 302.0 246.0 188.5 175.8 159.3 144.0 132.4 120.7 111.7 102.2 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 (4) 585.1 518.4 468.4 410.4 366.1 315.0 278.5 239.5 223.4 191.8 162.6 142.3 129.3 112.4 104.1 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 7.0 148.95 113.6 212.35 97.5 159.2 108.2 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 $355.9 Interest on capital stock3 $80.6 45.6 24.3 31.9 29.8 100.0 53.8 10.1 13.4 3.8 1.0 0.1 2.9 0.1 5.2 2.9 0.7 0.1 1.6 0.1 0.2 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 Administrative and operating expenses $1,033.6 103.3 89.3 180.45 67.7 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 38 3.7 3.6 3.4 3.0 2.7 2.5 2.7 4.26 Net income added to deposit insurance fund4 $1,796.0 803.2 724.2 552.6 591.8 508.9 452.8 407.3 355.0 336.7 301.3 265.9 235.7 221.1 191.7 178.7 166.8 147.3 132.5 132.1 124.4 115.2 107.6 102.5 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 1For the period from 1950 to 1978, inclusive, figures are net after deducting the portion of net assessment income credited to insured banks pursuant to provisions of the Federal Deposit Insurance Act of 1950, as amended. Assessment credits to insured banks for these years amount to $5,291 million. ^Includes $21 million of interest and allowable return received on funds advanced to receivership and deposit assumption cases and $73 million of interest on capital notes advanced to facilitate deposit assump tion transactions and assistance to open banks. 3Paid in 1950 and 1951, but allocated among years to which it applies. Initial capital of $289 million was retired by payments to the U.S. Treasury in 1947 and 1948. 4Assessments collected from members of the temporary insurance funds which became insured under the permanent plan were credited to their accounts at the termination of the temporary funds and were applied toward payment of subsequent assessments becoming due under the permanent insurance fund, resulting in no income to the Corporation from assessments during the existence of the temporary insurance funds. 5|ncludes net loss on sales of U.S. Government securities of $105.6 million in 1976 and $3.6 million in 1978. 6Net after deducting the portion of expenses and losses charged to banks withdrawing from the temporary insurance funds on June 30, 1934. FEDERAL DEPOSIT INSURANCE CORPORATION Total............................................... Deposit insurance losses and expenses All cases (548 banks) Deposit payoff cases (304 banks) Deposit assumption cases (244 banks) Item Number or amount Percent Number or amount Percent Number or amount Percent Number of depositors or accounts— total 1............................................................................................................................. 3,764,874 100.0 623,546 100.0 3,141,328 100.0 Full recovery received or available....................................................................................................................................... 3,757,114 99.8 615,786 98.8 3,141,328 100.0 3,709,590 41,099 3,283 3,142 98.5 1.1 0.1 0.1 568,2623 41,099 3,283 3,142 91.1 6.6 0.6 0.5 3,141,328 100.0 100.0 From From From From FDIC2........................................................................................................................................................................................................ offset^..................................................................................................................................................................................................... security or preference5................................................................................................................................................................... asset liquidation^.................................................................................................................................... . . Full recovery not received as of December 31, 1978 ................................................................................................. 7,760 0.2 7,760 1.2 3,725 4^035 0.1 0.1 3,725 4,035 0.6 0.6 Amount of deposits (in thousands) — to ta l............................................................................................................................. 5,897,279 100.0 469,533 100.0 5,427,746 Paid or made available.............................................................................................................................................................. 5,882,479 99.8 454,733 96.8 5,427,746 100.0 FDIC2........................................................................................................................................................................................................... o ffset8........................................................................................................................................................................................................ security or preference9........................................................................................................................................................................ asset liquidation!0 ................................................................................................................................................................ 5,754,400 23,755 54,478 49,846 97.6 0.4 0.9 0.9 326,6547 23,755 54,478 49,846 69.6 5.0 11.6 10.6 5,427,746 100.0 Not paid as of December 31 , 1 9 7 8 .................................................................................................................................... 14,800 0.2 14,800 3.2 Terminated c a s e s .......................................................................................................................................................................................... Active cases! 1 ................................................................................................................................................................................................ 3,172 11,628 0.0 0.2 3,172 11,628 0.7 2.5 Terminated c a s e s .................................................................................................................................................................... Active cases................................................................................................................................................................................................... By By By By 1Number of depositors in deposit payoff cases; number of accounts in deposit assumption cases. 2Through direct payment to depositors in deposit payoff cases; through assumption of deposits by other insured banks, facilitated by FDIC disbursements of $4,352,915 thousand, in deposit assumption cases. 3lncludes 60,913 depositors, in terminated cases, who failed to claim their insured deposits (see note 7). ^Includes only depositors with claims offset in full; most of these would have been fully protected by insurance in the absence of offsets. ^Excludes depositors, paid in part by the FDIC; whose deposit balances were less than the insurance maximum. 6The insured portions of these depositor claims were paid by the Corporation. ^Includes $51 6 thousand unclaimed insured deposits in terminated cases (see note 3). 8|ncludes all amounts paid by offset. 9|ncludes all secured and preferred claims paid from asset liquidation; excludes secured and preferred claims paid by the Corporation. 10lncludes unclaimed deposits paid to authorized public custodians. 111ncludes $2,985 thousand representing deposits available, expected through offset, or expected from proceeds of liquidation. 191 BANKS CLOSED; FDIC INCOME, DISBURSEMENTS, AND LOSSES Table 128. PROTECTION OF DEPOSITORS OF FAILED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION 1 9 3 4 -1 9 7 8 Table 129. INSURED DEPOSITS AND THE DEPOSIT INSURANCE FUND, 1 9 3 4 -1 9 7 8 Ratio of deposit insurance fund to — Insured! Percentage of deposits insured Deposit insurance fund (in millions) 1978.......................................................... 1977 .......................................................... 1976.......................................................... 1975 .......................................................... $1,145,835 1,050,435 941,923 875,985 $760,706 692,533 628,263 569,101 66.4% 65.9 66.7 65.0 $8,796.0 7,992.8 7,268.6 6,716.0 1974.......................................................... 1973.......................................................... 1972 .......................................................... 1971.......................................................... 1970....................................................... 833,277 766,509 697,480 610,685 545,198 520,309 465,600 419,756 374,5684 349,581 62.5 60.7 60.2 61.34 64.1 1969.................................................... 1968....................................................... 1967 .......................................................... 1966.......................................................... 1965.......................................................... 495,858 491,513 448,709 401,096 377,400 313,085 296,701 261,149 234,150 209,690 1964.......................................................... 1963.......................................................... 1962.......................................................... 1961.......................................................... 1960.................................................... 348,981 313,3042 297,5483 281,304 260,495 1959...................................... 1958....................................................... 1957 ....................................................... 1956.......................................................... 1955.......................................................... Total deposits Insured deposits .77% .76 .77 .77 1.16% 1.15 1.16 1.18 6,124.2 5,615.3 5,158.7 4,739.9 4,379.6 .73 .73 .74 .78 .80 1.18 1.21 1.23 1.274 1.25 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 1.45 191,787 177,381 170,2104 160,3094 149,684 55.0 56.6 57.24 57.04 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 1.48 247,589 242,445 225,507 219,393 212,226 142,131 137,698 127,055 121,008 116,380 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 .......................................................... 1951.......................................................... 1950.................................................... 203,195 193,466 188,142 178,540 167,818 110,973 105,610 101,842 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 49.5 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....................................................... 1941....................................................... 1940.......................................................... 134,662 111,650 89,869 71,209 65,288 56,398 48,440 32,837 28,249 26,638 419 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 1939.......................................................... 1938....................................................... 1937 .......................................................... 1936.......................................................... 1935.......................................................... 1934.......................................................... 57,485 50,791 48,228 50,281 45,125 40,060 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 1Figures estimated by applying, to the deposits in the various types of account at the regular Call dates, the percentages insured as determined from special reports secured from insured banks. 2December 20, 1963. 3December 28, 1962. ^Revised FEDERAL DEPOSIT INSURANCE CORPORATION Total Year (December 31) 192 Deposits in insured banks (in millions) • INDEX 195 Absorptions: Of insured banks requiring disbursements by FDIC. See Banks in financial difficulties. Of operating banks, 1978...................................................................................... 15-16 Of operating banks approved by FDIC, 1978 ...................................... 15-16, 47-102 Of operating banks denied by FDIC, 1 9 7 8 .......................................... 15-16,103-109 Regulation o f ........................................................................................................... 15-16 Admission of banks to insurance: See also Applications from banks: Applications for, 1978 .......................................................................................... 15-16 Number of banks admitted, by class of bank, 1978...................................... 122-123 Applications from b an ks................................................................................................. 15-16 Areas outside continental United States, banks and branches located in: Number, December 31, 1978.......................................................................... 125, 133 Assessments for deposit insurance................................................................................ 26-27 Assets and liabilities of FDIC.............................................................................. 27-29, 32-33 Assets, liabilities and capital of banks. See also Deposits: Commercial banks: Foreign, of U.S. banks......................................................... 141-142, 155, 156-157 Grouped by insurance status, June 30, 1978 and December 31, 1978 . . 143-149 Sources of d a ta ....................................................................................................... 166 Insured commercial banks: Amounts, December call dates, 1973-1978 ................................................ 152-154 Amounts, June 30, 1978 and December 31, 1978 by class of bank.................................................................................................................143-149 Major categories, average, 1973-1978......................................................... 168-169 Percentage distribution, by size of bank, 1 97 8 ............................................ 162-164 Percentages of items, by size of bank, 1 9 7 8 ....................................................... 160 Insured mutual savings banks: Amounts, December call dates, 1973-1978.............................................. 158-159 Major categories, average, 1973-1978 ..................................................... 177-178 Percentages of items, by size of bank, 1 9 7 8 ....................................................161 Methods of tabulating d a ta .............................................................................. 141-142 Mutual savings banks: Grouped by insurance status, June 30, 1978, and December 31, 1 97 8 ............................................................................................................... 150-151 Sources of d a ta ......................................................................................................... 166 Assets, purchase of, by FDIC from banks in financial difficulties................. 8-9, 17, 19-21 Assumption of deposits of insured banks with financial aid of FDIC. See Banks in finan cial difficulties. Attorney General of the United States, summary reports on absorptions............... 53-109 Audit of FDIC...................................................................................................................27,114 Automatic transfer of funds from savings to checking, survey and regulation................................................................................................... xi, 11, 15-16, 115 Bad-debt reserves. See Valuation reserves. Banco Credito y Ahorro Ponceno, Puerto R ico............................................................. 19, 21 Banco de Ahorro de Puerto Rico, Puerto R ico .....................................................................21 Bank control, changes, regulation o f ...................................................................xi, 10, 13-14 Bank holding companies, supervision o f ................................................................................ 7 Bank supervision. See Supervision of banks; Examination of insured banks. Banking offices, number of. See Number of banks and branches. Banks in financial difficulties: Insured banks requiring disbursements by FDIC: Assets and liabilities o f ............................................................................................184 Deposit size o f ......................................................................................................... 186 Deposits protected, 1934-1978.............................................. 17-20, 185-186, 191 196 FEDERAL DEPOSIT INSURANCE CORPORATION Disbursements by FDIC, 1934-1978................................................ 17-18, 185-189 Failures in 1978 ............................................................................................. xi, 19-21 Loans made and assets purchased by FDIC.................................. 17-23, 28, 31-32 Location by State, 1934-1978....................................................................... 185-187 Losses incurred by depositors................................................................. 18, 19, 191 Losses incurred by FDIC.......................................................................... 18, 188-189 Number of, 1934-1978 .................................................................................. 20, 183 Number of deposit accounts, 1934-1978 .......................................... 185-187, 191 Recoveries by FDIC on assets acquired, 1934-1978 ........................... 18, 188-189 Noninsured banks: Number and deposits of commercial banks closed, 1934-1978 ....................... 183 Banks, number of. See Number of banks and branches. Board of Directors of FDIC. See Federal Deposit Insurance Corporation. Board of Governors of the Federal Reserve System. See Federal Reserve authorities. Branches: Establishment approved by FDIC, 1 9 7 8 ............................................................... 15-16 Number of. See Number of banks and branches. Call reports. See Assets, liabilities, and capital of banks: Reports from banks. Capita! of banks. See Assets, liabilities, and capital of banks; Banks in financial difficulties; Income of insured commercial banks; Examination of insured banks. Cease-and-desist proceedings............................................................................ 11-13, 37-44 Charge-offs by banks. See Income of insured commercial banks; Income of insured mutual savings banks; Valuation reserves. Class of bank, banking data presented by: Absorptions .......................................................................................................122-123 Income of insured commercial banks, 1 978 ................................................... 171-172 Insured banks requiring disbursements by FDIC, 1 9 3 4 -1 9 7 8 ....................... 185-187 Number of banks and banking offices, 1978................................ 122-123, 126-134 Number of banks and assets.................................................................................... 135 Classification of banks......................................................................................................... 121 Closed banks. See Banks in financial difficulties. Commercial banks, See Assets, liabilities, and capital of banks; Deposits; Income of insured commercial banks; Number of banks and branches. Community Reinvestment A c t ..................................................... xi-xii, 16, 23-24, 116-117 Compliance examinations.................................................................................. xii, 5, 7, 23-24 Comptroller of the Currency........................................................................ 3, 7, 14, 24, 114 Consolidations. See Absorptions. Consumer complaints and inquiries, 1977 and 1 97 8 ......................................................... 25 Credit, bank. See Assets, liabilities, and capital of banks. Credit u n io n s............................................................................................................................xi Country Exposure R eport............................................................................................... 10, 15 Demand deposits. See Assets, liabilities, and capital of banks; Deposits. Deposit insurance, applications for.................................................................................. 15-16 Deposits. See also Assets, liabilities, and capital of banks: Banks closed because of financial difficulties, 1934-1978 . . . 17-19, 183, 185-187 Commercial banks: By insurance status and type of bank, and type of account, June 30, 1978................................................................................................................. 143-145 By insurance status and type of bank, and type of account, December 31, 1978............................................................................ .................................... 146-149 By State and asset size of bank.....................................................................136-140 Insured commercial banks: Average demand and time deposits, 1973-1978 ........................................ 168-169 INDEX 197 December call dates, 1973-1978................................................................... 152-1 54 Insured mutual savings banks: Average demand and time deposits, 1973-1978 ........................................ 177-178 December call dates, 1973-1978................................................................... 158-1 59 Mutual savings banks, by insurance status, June 30, 1978, and December 31, 1978 ......... ....................................................................................................... 150-151 Deposits insured by FDIC: Estimated insured deposits, December 31, 1934-1978 ........................................ 192 Maximum per depositor, changes in................................ x, xi, 10, 17, 113, 115-116 Deposits, number of insured commercial banks with given ratios of demand to total deposits...................................................................................................................... 162-164 Directors of banks.......................................................................................................9, 13, 23 Directors of FDIC. See Federal Deposit Insurance Corporation. Disbursements. See Banks in financial difficulties. Divided Examination Program................................................................................................... 7 Dividends: To depositors in insured mutual savings banks. See Income of insured mutual savings banks. To stockholders of insured commercial banks. See Income of insured commer cial banks. Earnings of banks. See Income of insured commercial banks; Income of insured mutual savings banks. Electronic data processing, examination o f .....................................................................xii, 10 Employees: Conflict of in te re st.........................................................................................................4 FDIC.................................................................................................................... 3-4, 116 Insured commercial banks, number and compensation, 1 9 7 3 -1 9 7 8 ........... 168-169 Insured mutual savings banks, number and compensation, 1973-1978. . . . 177-178 Equal Credit Opportunity A c t ..................................................................................xi, 23, 116 Examination of insured banks: By FDIC, 1 9 7 8 .......................................................................................................xii, 5-7 Regions and regional directors............................................................................ vi, 5, 7 Expenses of banks. See Income of insured commercial banks; Income of insured mutual savings banks. Expenses of FDIC...................................................................................... 26-27, 30, 31, 190 Failures, See Banks in financial difficulties. Fair Credit Billing Act.............................................................................................................. 23 Fair Credit Reporting A c t .......................................................................................................23 Fair Debt Collection Practices A c t ..................................................................................23-24 Fair Housing Lending......................................................................................... xi, 23-24, 116 Federal Banking Agency Audit A c t.............................................................................. 27, 114 Federal Deposit Insurance Corporation: Actions on applications......................................................................................... 15-16 Assessments on insured banks............................................................. 26, 29-32, 190 A u d it..............................................................................................................................27 Banks examined by, and submitting reports to ................................................. 5-7, 16 Borrowing power.......................................................................................................... 26 Budget and Management Committee............................................................................ 3 Capital Stock.............................................................................................................. 190 Comparative Performance Report................................................................................ 17 Computerized analysis capabilities...................................................................... 17, 24 Consumer and civil rights protection..............................................xi-xii, 9, 19, 23-26 Coverage of deposit insurance........................................x, xi, 10, 17, 113, 115-116 Delegated authority, applications approved under....................................................... 5 Deposit insurance disbursements........................................ 17-21, 26, 184-189, 191 198 FEDERAL DEPOSIT INSURANCE CORPORATION Deposit insurance fund (surplus).................................................. 26, 29-30, 190, 192 Directors (members of the Board)............................................................................ v, 3 Disclosure...............................................................................................................4, 116 Divisions.................................................................................................................. iv, 3-4 Employees...........................................................................................................3-4, 116 Enforcement activities.............................................................................. 11-13, 37-44 Equal Employment Opportunity Program...................................................................3-4 Examination of banks................................................................................ 3„5-7, 1 7, 23 Financial statements, 1978.................................................................................... 28-32 Income and expenses, 1 933-1978.......................................................................... 190 Insured banks requiring disbursements by. See Banks in financial difficulties Integrated Monitoring System (IM S ).......................................................................... 17 Liquidation activities.................................................................................. 17-19, 21-22 Loans to, and purchase of assets from, insured banks................... 17-23, 28, 31-32 Losses incurred, 1 9 3 4 -1 9 7 8 ..................................................................... 18, 188-189 Methods of protecting depositors........................................................................ 17, 19 Office of Congressional Relations.................................................................................. 3 Office of Corporate A u d its ..........................................................................................27 Officials........................................................................................................................ v, 4 Organization...............................................................................................................iv, 3 Payments to insured depositors.................................................. 18-19, 185-189, 191 Petition for Representation of Bargaining U nits........................................................... 4 Problem banks....................................................................................................... xii, 7-9 Receiver, FDIC a s ................................................................................................... 21-23 Recoveries............................................................................................. 21-23, 188-189 Regions............................................................................................................................ vi Regulation of bank securities.................................................................................... 116 Regulation of interest rate s.....................................................................xi, 10-11, 115 Reports from banks............................................................................................... 16-17 Reports of changes in bank control.......................................................................13-14 Reserve for losses on assets acquired................................................... 28, 30, 32-33 Revision of rulemaking procedures............................................................. xi, 114-115 Rules and regulations......................................................... xi, 10-11, 23-24, 114-117 Sources and application of funds................................................................................ 31 Supervisory responsibility....................................................................................5-8, 16 Surveys during 1978.......................................................................xi-xii, 13-14, 16-17 Training programs............................................................................................. 9, 15, 26 Federal Home Loan Bank Board.......................................................................... xi, 9, 24, 114 Federal legislation, 1978 ........................................................................................xi, 113-114 Federal Reserve authorities........................................................................ 5, 7, 24, 113-114 Federal Reserve member banks. See Class of bank, banking data presented by. Financial Institutions Regulatory and Interest Rate Control Act of 1978 ......................................................................................xi, 10-14, 17, 113-114 First Bank of Macon County, Alabama.......................................................................... . 21 General Accounting O ffice..................................................................................................... 27 Home Mortgage Disclosure Act of 1975 .............................................................xi-xii, 23-24 Housing and Community Development Amendments Act of 1978 .........................24, 114 Income of FDIC............................................................................................... 26, 30, 32, 190 Income of insured commercial banks: Amounts of principal components: Annually, 1973-1978 .................................................................................... 168-169 By class of bank, 1978 .................................................................................. 171-172 By size of bank, 1978 .................................................................................... 173-174 Methods of tabulating data............................................................................ 165-167 INDEX 199 Ratios of income items: Annually, 1 9 7 3 -1 9 7 8 .............................................................................................. 170 By size of bank, 1978 .................................................................................... 173-1 74 Sources of d a ta ......................................................................................................... 166 Income of insured mutual savings banks: Amounts of principal components, 1973-1978 ............................................ 177-178 Ratios of income and expense items, 1973-1978 ........................................ 179-180 Sources of d a ta ......................................................................................................... 166 Individual Retirement A ccounts................................................xi, 10-11, 17, 113, 115-116 Insider transactions............................................................................................... xi, 10, 13-14 Insolvent banks. See Banks in financial difficulties. Insured banks. See Assets, liabilities, and capital of banks; Banks in financial difficulties; Deposits: Income of insured commercial banks; Income of insured mutual savings banks; Number of banks and branches. Insured commercial banks not members of the Federal Reserve System. See Class of bank, banking data presented by. Insured deposits. See Banks in financial difficulties; FDIC, coverage of deposit insurance. Insured State banks members of the Federal Reserve System. See Class of bank, bank ing data presented by. Interagency Supervisory Committee........................................................................................9 Interagency Supervision........................................................... xi, 7, 9-10, 13-14, 16-17, 24 Interest rates: Maximum rates on deposits.......................................................................... xi, 11, 115 Paid on deposits............................................................................................... 170, 183 Payment on Individual Retirement Accounts..................................................... 1 1,115 Payment on Keogh Retirement Plans.................................................................11,115 Payment on Treasury Tax and Loan Accounts............................................xi, 11, 115 Regulations: Automatic Transfer of funds from savings to checking...........................xi, 10, 115 6-Month money market certificates of deposit........................................ xi, 11, 115 8-year certificates of d ep osit.....................................................................xi, 11, 115 International banking....................................................................................xi, 10, 14-15, 113 International Banking Act of 1978.......................................................................... xi, 14, 113 Investments. See Assets, liabilities, and capital of banks; Assets and liabilities of FDIC; Banks in financial difficulties. Keogh retirement plans.............................................................xi, 10-11, 17, 113, 115-116 Legislation relating to deposit insurance and banking, Federal, enacted in 1978............................................................................................... xi, 113-114 Litigation: Fines.............................................................................................................................. 16 Federal Deposit Insurance Corporation vs. The Bevans State Bank of Menard . . . . 16 First Empire Bank vs. Federal Deposit Insurance Corporation.................................. 20 Standby letters of c re d it............................................................................................. 20 Loans. See Assets, liabilities, and capital of banks; Banks in financial difficulties. Losses: Of banks. See Income of insured commercial banks; Income of insured mutual savings banks. Of FDIC.............................................................................. 18-19, 27, 30-32, 188-190 On loans, reserves for. See Valuation reserves. Provision for, insured banks................................ 168-169, 170, 173-174, 175-180 Mergers. See Absorptions. Money market certificates of deposit, survey and regulation................. xi, 11, 15-16, 115 Mutual savings banks. See Assets, liabilities, and capital of banks; Deposits; Income of insured banks; Number of banks and branches. 200 FEDERAL DEPOSIT INSURANCE CORPORATION National banks. See Class of bank, banking data presented by. National Credit Union Administration.............................................................................. 9,114 National Neighborhood Reinvestment Corporation..................................................... 24,114 New banks, 1978......................................................................................................... 122-125 Noninsured banks. See Absorptions; Admission of banks to insurance; Assets, liabilities, and capital of banks; Banks in financial difficulties; Classification of banks; Class of bank, banking data presented by; Deposits; Number of banks and branches; Reports from banks. North Point State Bank, Illinois............................................................................................. 21 Number of banks and branches: Banks; By insurance status and type of bank, June 30, 1978, and December 31, 1 9 7 8 ...................................................................... 145, 149, 151 By insurance status, type of bank, number of branches, and State, December 3 1 ,1 9 7 8 ................................................................................ 126-133 By State and asset size of bank.....................................................................136-140 By supervisory status and asset size .....................................................................135 Changes during 1978 .................................................................................... 122-125 Branches: By insurance status and type of bank, December 31, 197 8 ....................... 122-123 By insurance status, type of bank, and State, December 31, 1978 ......... 126-133 Changes during 1978 .................................. ................................................ 122-125 Insured commercial banks: December call dates, 1973-1978 ................................................................. 152-154 Distributed by capital ratios and distribution of assets and deposits, December 31, 1978...................................................................................... 162-164 Insured mutual savings banks: December call dates, 1973-1978 ................................................................. 158-159 Noninsured banks by State, December 31, 1 9 7 8 ........................................ 126-133 Unit banks, by insurance status and State, December 31, 1978............... 126-133 Obligations of banks. See Assets, liabilities, and capital of banks. Officials of FDIC .........................................................................................................................v Operating banks. See Number of banks and branches. Payments to depositors in closed insured banks. See Banks in financial difficulties. Personnel. See Employees. Possessions, banks and branches located in. See Areas outside continental United States, banks and branches located in. Problem banks................................................................................................................ xii, 7-9 Protection of depositors. See Banks in financial difficulties; Deposit insurance coverage. Real Estate Settlement Procedures Act of 1 9 7 4 ................................................................. 23 Receivership, insured banks placed in. See Banks in financial difficulties. Recoveries: By banks on assets charged off. See Income of insured commercial banks; Income of insured mutual savings banks. By FDIC on disbursements. See Banks in financial difficulties. Regions, FDIC............................................................................................................................vi Remote Service Facility Procedures....................................................................................117 Removal proceedings.............................................................................................................13 Reports from banks................................................................................................................ 16 Reserves: Of FDIC, for losses on assets acquired......................................................... 28, 32-33 Of insured banks for losses on assets. See Valuation reserves. With Federal Reserve Banks. See Assets, liabilities, and capital of banks. Rules and regulations of the FDIC. See Federal Deposit Insurance Corporation. INDEX 201 Salaries and wages of insured banks. See Income of insured commercial banks; Income of insured mutual savings banks. Securities. See Assets, liabilities, and capital of banks; Assets and liabilities of FDIC; Banks in financial difficulties. Securities and Exchange Commission........................................................................ 16, 116 Securities, bank, regulation o f ......................................................................................16, 116 Securities Exchange Act of 1 93 4 ................................................................................ 16, 116 Size of bank, data for banks classified by amount of assets: Assets and liabilities, percentages of, insured banks, 1978 ......................... 160-161 Banks requiring disbursements by FDIC, (deposit size) 1934-1978 ..................... 186 Income of insured commercial banks, 1978................................................... 173-174 Income ratios of insured commercial banks, 1978 ........................................ 175-176 Number, assets, and deposits of all banks...............................................................135 Number, assets, and deposits of all commercial banks, by State................. 136-140 Number of employees of insured commercial banks, 1978 .................................. 174 Number of insured commercial banks, grouped by ratios of selected items to assets and deposits, December 31, 1978 .......................................... 162-164 State, banking data classified by: Changes in commercial banks and branches, 1978 ...................................... 124-125 Disbursements, deposits, and depositors in insured banks requiring disbursements by FDIC, 1934-1978 ......................................................... 185-187 Number, assets, and deposits of commercial banks, by asset size of bank . 136-140 Number of banks and branches, by class of bank and type of office, December 31, 1978 ........... ..................................................................... 126-133 Percentage of banks insured, December 31, 1 9 7 8 ........................................ 126-133 State banks. See Class of bank, banking data presented by. Stockholders of banks, net profits available for. See Income of insured commercial banks. Supervision of bank holding companies..................................................................................7 Supervision of banks by FDIC....................................................................................... 5, 9-10 Supervisory class, banks grouped by: Assets and liabilities of, June 30, 1978, and December 31, 1978 ............. 143-149 Changes in number of, 1978 .......................................................................... 122-123 Number of banks and s iz e ........................................................................................135 Income of insured commercial banks...............................................................171-172 Number of banking offices, by State, December 31, 1 97 8 ........................... 126-133 Suspension proceedings.........................................................................................................13 Taxes paid by insured banks. See Income of insured commercial banks; Income of insured mutual savings banks. Terminations of insurance for unsafe and unsound practices.............................. 11-13, 37 The Drovers' National Bank of Chicago, Illinois...................................................................21 Treasury Tax and Loan A cco u n ts.......................................................................... xi, 11, 115 Trust activities of banks, examination o f.....................................................................xii, 9-10 Trust assets of insured commercial banks, survey o f ........................................................... 9 Trust Department R eport.......................................................................................................10 Truth in Lending A c t.............................................................................................................. 23 Uniform Interagency Supervision. See Interagency Supervision Unit banks, by insurance status and State, December 31, 1978 ........................... 126-133 United States National B a n k................................................................................................. 19 Valuation reserves. See also Assets, liabilities, and capital of banks: Amounts held, June 30, 1978, and December 31, 1978 ............................ 143-149 Amounts held, December call dates, 1973,1978 .......................................... 152-154 Watkins Banking Company, Alabama....................................................................................21 Wilcox County Bank, Alabam a............................................................................................. 21