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1979 ANNUAL REPO
FEDERAL DEPOSIT INSURAIS
: THE
)RPO
Ill
Board o f D ire cto rs
John G. Heimann
Irvine H. Sprague
William M. Isaac
Comptroller of the Currency
Chairman
Director
LETTER OF TRANSMITTAL
FEDERAL DEPOSIT INSURANCE CORPORATION
W ashington, D.C., August 1, 1 980
SIRS: In accordance with the provisions of section 17(a) of the
Federal Deposit Insurance Act, the Federal Deposit Insurance Corpo
ration is pleased to submit its annual report for the calendar year
1979.
Very truly yours,
Irvine H. Sprague
Chairman
THE PRESIDENT OF THE SENATE
THE SPEAKER OF THE HOUSE OF REPRESENTATIVES
VI
FEDERAL DEPOSIT INSURANCE CORPORATION
VII
FEDERAL DEPOSIT INSURANCE CORPORATION
BOARD OF DIRECTORS
Chairman ............................................................................... Irvine H. Sprague
D irector.....................................................................................William M. Isaac
Comptroller o f the Currency................................................ John G. Heimann
WASHINGTON OFFICE
Deputy to the Chairm an............................................................... Alan R. Miller
Assistant to the D irector............................................................... Edwin B. Burr
Special Assistant to the D ire cto r......................................... Merphil S. Kondo
Assistant to the Director (Comptroller of the
Currency).................................................................................David C. Motter
Executive Secretary...............................................................Hoyle L. Robinson
Director: Division of Bank Supervision......................................... John J. Early
General C ounsel................................................................. Frank L. Skillern, Jr.
C ontroller................................................................................... James A. Davis
Director: Division of Liquidation.................................................George W. Hill
Director, Division of Management Systems
and Financial Statistics.................................................... George G. Kershaw
Director of Research........................................................Stanley C. Silverberg
Director, Congressional Liaison S ta ff...................................... Kenneth Fulton
Director, Office of Corporate A u d its .................................. Robert D. Hoffman
Director, Office of Consumer Affairs
and Civil R ights.................................................................. Henry S. Newport
Director, Office of Personnel Management........................... Jack C. Pleasant
Director, Office of Employee Relations........................................Joe S. Arnold
Assistant to the Deputy to the Chairman......................... Michael A. Hovan, Jr.
December 3 1 ,1 979
FEDERAL
DEPOSIT INSURANCE CORPORATION
REGIONS
Regional Directors
Memphis
Atlanta
Roy E. Jackson
Lewis C. Beasley
1 Commerce Square, Suite 1800
233 Peachtree Street, N.E., Suite 2400
Memphis, Tennessee 38103
Atlanta, Georgia 3 0 0 4 3
Minneapolis
Boston
Robert P. Gough
Anthony S. Scalzi
730 Second Avenue South. Suite 266
60 State Street, 17th Floor
Minneapolis, Minnesota 55402
Boston, Massachusetts 02109
New York
Chicago
Bernard J. McKeon
W. Harlan Sarsfield
345 Park Avenue. 21 st Floor
233 S. Wacker Drive, Suite 6116
New York, New York 10154
Chicago. Illinois 60606
Omaha
Columbus
Burton L. Blasingame
Robert V. Shumway
1700 Farnam Street, Suite 1200
1 Nationwide Plaza, Suite 2600
Omaha, Nebraska 68102
Columbus, Ohio 4321 5
Philadelphia
Dallas
James L. Sexton
Quinton Thompson
5 Penn Center Plaza, Suite 2901
350 North St. Paul Street, Suite 2000
Philadelphia, Pennsylvania 19103
Dallas, Texas 75201
Richmond
Kansas City
John R. Curtis
Joseph V. Prohaska
Eighth and Main Bldg
2345 Grand Avenue, Suite 1500
Kansas City, Missouri 64108
707 East Main Street
Richmond, Virginia 2321 9
Madison
San Francisco
James E. Halvorson
Charles E. Doster
1 South Pinckney Street, Room 813
44Montgomery Street, Suite 3600
Madison, Wisconsin 53703
San Francisco. California 94104
December 3 1 .1 9 7 9
FEDERAL DEPOSIT INSURANCE CORPORATION
M a in O f f ic e : 5 5 0 1 7 t h S t r e e t . N .W ., W a s h i n g t o n . D C. 2 0 4 2 9
IX
CONTENTS
PART ONE
OPERATIONS OF THE CORPORATION
Operations of the Corporation....................................................................
Enforcement Proceedings..........................................................................
Problem Banks.............................................................................................
Failed Banks.................................................................................................
Consumer and Civil Rights Protection.......................................................
Interest Rate Developments........................................................................
International Banking..................................................................................
Reports and Surveys...................................................................................
Bank Security...............................................................................................
Securities Activities......................................................................................
Legal Activities.............................................................................................
Research Activities.......................................................................................
Computer Management Systems...............................................................
Special Services...........................................................................................
Personnel.....................................................................................................
Finances of the Corporation........................................................................
3
10
12
14
19
22
24
26
26
27
28
29
30
31
32
34
PART TWO
ENFORCEMENT PROCEEDINGS
Actions to terminate insured status ...........................................................
Cease-and-desist actions............................................................................
49
50
PART THREE
MERGER DECISIONS OF THE CORPORATION
Bank absorptions approved by the Corporation........................................
Bank absorption denied by the Corporation...............................................
63
127
PART FOUR
REGULATIONS AND LEGISLATION
Legislation— 19 7 9 .......................................................................................
Rules and regulations..................................................................................
131
131
PART FIVE
STATISTICS OF BANKS AND DEPOSIT INSURANCE
Number of banks and branches.................................................................
Assets and liabilities of banks.....................................................................
Income of insured banks.............................................................................
Banks closed because of financial difficulties; FDIC income,
disbursements, and losses.......................................................................
138
159
186
201
X
TABLES
NUMBER OF BANKS AND BRANCHES:
Explanatory n o te s .........................................................................................
101. Changes in number and classification of banksand branches in the United
States (States and other areas) during 1979 ...............................
102. Changes in number of commercial banksand branches in the United
States (States and other areas) during 1979, by S ta te ...............
103. Number of banking offices in the United States (States and other
areas), December 31, 1979
Banks grouped by insurance status and class of bank, and by State
or area and type of o ffic e ............................................................
104. Number and assets of all commercial and mutual savings banks in the
United States (States and other areas), December 31, 1979
Banks grouped by class and asset s iz e ......................................
105. Number, assets, and deposits of all commercial banks in the United
States (States and other areas), December 31, 1979
Banks grouped by asset size and S tate......................................
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, 1979
Banks grouped by insurance status and class of b a n k .............
107. Assets and liabilities of all commercial banks in the United States
(States and other areas), December 31, 1979
Banks grouped by insurance status and class of b a n k .............
108. Assets and liabilities of all mutual savings banks in the United States
(States and other areas), June 30, 1979, and December 31, 1979
Banks grouped by insurance status...........................................
109. Assets and liabilities of insured commercial banks in the United States
(States and other areas), December call dates, 1974-1979.........
110. Assets and liabilities of insured commercial banks (domestic and
foreign offices). United States and other areas, 1973-1977 .......
110A. Assets and liabilities of insured commercial banks (domestic and foreign
offices). United States and other areas, December 31, 1978 __
110B. Assets and liabilities of insured commercial banks (domestic and foreign
offices). United States and other areas, December 31, 1979 ___
111. Assets and liabilities of insured mutual savings banks in the United
States (States and other areas), December call dates, 1974-1979
112. Percentages of assets, liabilities, and equity capital of insured
commercial banks operating throughout 1979 in the United States
(States and other areas), December 3 1 ,197 9
Banks grouped by amount of a sse ts ..........................................
11 3. Percentages of assets and liabilities of insured mutual savings banks
operating throughout 1979 in the United States (States and other
areas,) December 31, 1979
Banks grouped by amount of a sse ts ..........................................
114. Distribution of insured commercial banks in the United States (States
and other areas), December 31, 1979...........................................
138
140
142
144
153
154
159
161
164
168
170
173
174
176
178
180
181
183
XI
INCOME OF INSURED BANKS:
Explanatory note........................................................................................
1 15. Income of insured commercial banks in the United States (States
and other areas), 1974-1 979 ......................................................
1 16. Ratios of income of insured commercial banks in the United States
(States and other areas), 1974-1 979 ..........................................
1 17. Income of insured commercial banks in the United States (States
and other areas), 1979
Banks grouped by class of bank...............................................
1 18. Income of insured commercial banks operating throughout 1979 in
the United States (States and other areas)
Banks grouped by amount of assets........................................
1 19. Ratios of income of insured commercial banks operating through
out 1979 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), 1974-1 979 ......................................................
121. Ratios of income of insured mutual savings banks in the United
States (States and other areas), 1974-1 979 ...............................
BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES:
FDIC INCOME DISBURSEMENTS, AND LOSSES
Explanatory n o te ........................................................................................
122 Number and deposits of banks closed because of financial difficul
ties, 1934-1979 ............................................................................
123. Insured banks requiring disbursements by the Federal Deposit
Insurance Corporation during 1979 ...........................................
124. Depositors, deposits, and disbursements in failed banks requiring
disbursements by the Federal Deposit Insurance Corporation,
1934-1979
Banks grouped by class of bank, year of deposit payoff or
deposit assumption, amount of deposits, and S ta te ...............
125. Recoveries and losses by the Federal Deposit Insurance Corpora
tion on principal disbursementsfor protection of depositors 1934-1979
126. Analysis of disbursements, recoveries, and losses in deposit insur
ance transactions, January 1, 1934-December 31, 1979 .........
127. Income and expenses, Federal Deposit Insurance Corporation, by
year, from beginning of operations, September 1 1, 1933, to
December 31, 1979 ....................................................................
128. Protection of depositors of failed banks requiring disbursements by
the Federal Deposit Insurance Corporation, 1934-1 979 ...........
129. Insured deposits and the deposit insurance fund, 1934-1 9 7 9 __
186
189
191
192
194
196
197
199
201
203
204
205
208
209
210
211
212
3
O PER ATIO N S OF
THE C O R P O R A TIO N
The principal objectives of the Fed
eral Deposit Insurance Corporation
are to protect bank customers through
deposit insurance and consumer pro
tection programs and to promote a
healthy banking system.
Bank examinations are the front
line of the FDIC's operations to pro
mote and maintain the safety and
soundness of the banking system
and to enforce compliance with con
sumer and civil rights laws.
The FDIC has some supervisory
authority over all federally insured
banks, but its primary responsibili
ties are for the 8,938 insured Statechartered banks that are not mem
bers of the Federal Reserve System
(insured State nonmember banks)
and 324 insured mutual savings
banks. As of December 31, 1979,
there were 14,608 insured com
mercial and mutual savings banks
with domestic and foreign assets of
$1. 7 trillio n . These banks ac
counted for 97 percent of all banks
in the United States.
The Corporation's partner agen
cies, the Office of the Comptroller of
the Currency (OCC) and the Board of
Governors of the Federal Reserve
System, similarly examine national
banks and State member banks, respec
tively.
The FDIC depends on a corps of
skilled, dedicated and well trained
field examiners to perform the basic
supervisory function. They are sup
ported by administrative, policy and
review officials in its Division of
BankSupervision (DBS) in Washington.
Funding for these operations in
1979 commanded the largest share
of the FDIC administrative budget —
$78.1 million, or 68 percent of total
expenditures of $107.1 million.
The bulk of bank supervision fund
S U PER VISO R Y CLASSES OF B A N K S IN THE
U N ITED STATES, D EC EM BER 3 1 , 1 9 7 9
C o m m ercia l Banks and M u tu a l S avings Banks
NUMBER OF BANKS
ASSETS OF BANKS
State M em ber FRS 6
State M em b er 16.0%
Not Insured by
FDIC 2.8%
FEDERAL DEPOSIT INSURANCE CORPORATION
4
ing is distributed appropriately to
the field. Almost $67.9 million was
expended in 1979 by the 14 Re
gional Offices which in turn super
vise 1 50 field examination offices.
The Corporation conducted 19,900
bankexamination activities in 1979.
The following table compares the
1978 and 1979 exami nation workload:
Bank Examination Activities:
Safety & Soundness
Consumer Protection
Examinations of Trust
& EDP Departments
Investigations
A pplications
TOTAL
1978
1979
6,961
6 .6 84
7,2 14
4,8 09
2,092
2,755
1,756
2,523
2,892
2,476
2 0 .2 4 8 19 .914
Efforts to make the most efficient
use of examiner time include new
emphasis on the divided examina
tion concept. The FDIC has agree
ments to share examination resour
ces with State bank supervisors in
Georgia, Missouri, New Jersey, Illi
nois, Michigan and North Dakota,
and expects to enter into agree
ments with three additional States in
1980. Such agreements can mean
substantial savings in examiner time
because they provide that each au
thority need examine each year only
half of those banks whose records
show need of only minimal supervi
sion. Problem banks, other banks in
need of special supervision, and large
banks are examined both by the
FDIC and the bank's State supervi
sor at least once each year.
Safety and Soundness Examina
tions. The first priority of FDIC exam
inations is the effective surveillance
and supervision of banks having finan
cial weaknesses or operating prob
lems. Banks presenting financial risk
to the Corporation receive a fullscope examination at least once
every 12 months. Banks with a less
er degree of supervisory problems,
but in less than fully satisfactory
condition, receive a full-scope exami
nation at least every 18 months.
Other banks, not representing finan
cial or supervisory concern to the
FDIC, receive either a full-scope or
modified examination at least once
in each 18 month period.
To increase and encourage bank
director participation in the supervi
sory process. Corporation examin
ers meet with either the Board of
Directors or an appropriate Commit
tee of the Board at each full-scope
examination, or more often if neces
sary. The Regional Director, or a desig
nated representative, participates in
these meetings if the bank is or may
be formally designated a problem
bank.
The FDIC also reviews OCC and
Federal Reserve Reports of Exami
nation fo r national and Statechartered banks that are members
of the Federal Reserve System. Re
ports for large banks that are not of
special supervisory concern are re
viewed annually and reports for small
er banks are reviewed at least once
every three years. Examination re
ports of banks that are of supervi
sory concern, regardless of size, are
reviewed as soon as they are made
available. The FDIC also reviews Re
ports of Bank Holding Company In
spection prepared by the Federal
Reserve.
Compliance Examinations: Corpo
ration responsibility centers on en
forcement of consumer protection
and civil rights laws for State non
member banks, including the Truth
in Lending Act, the Fair Credit Re
porting Act, the Fair Housing Act,
the Home Mortgage Disclosure Act,
the Fair Debt Collection Practices
Act, the Community Reinvestment
Act, the Electronic Funds Transfer
Act, the Equal Credit Opportunity
Act and others.
Violations or exceptions noted dur
ing compliance examinations are re
ported to the banks involved and
routinely followed up by the Re
5
OPERATIONS OF THE CORPORATION
gional Offices to assure corrective
action is taken. If voluntary com
pliance cannot be obtained by moral
suasion and additional follow-up ex
aminations, visits, meetings with
Boards of Directors of the banks
involved or other informal means,
the Division of Bank Supervision
(DBS) or the Office of Consumer
Affairs and Civil Rights (OCACR)
may recommend thatformal enforce
ment action under Section 8(b) of
the FDI Act be initiated. During
1979, the FDIC's Board of Directors
issued seven such orders involving
violations of consumer protection or
civil rights laws and regulations.
This was the second full year of
separate compliance examinations
and the resources devoted to such
examinations is expected to con
tinue to increase in 1 980. The Cor
poration spent $ 1 2 million for com
pliance enforcement in 1979, com
pared with $9.7 million in 1978and
$2.25 million in 1976.
There were 4,800 compliance ex
aminations in 1 979, a decline from
6,700 in 1978 as examiners and
institutions adjusted to uniform en
forcement guidelines which were
introduced in 1978.
Each complianceexamination aver
aged 56 hours in 1979, almost
double the 1978 average. This is
expected to climb to 70 hours in
1980.
The FDIC expe cts to spend
387,000 examiner hours on com
pliance examinations in 1 980, a 60
percent increase from 1979. Truthin-Lending enforcem ent w ill ac
BANK EX A M IN A T IO N ACTIVITIES OF
THE FEDERAL DEPOSIT IN SUR ANCE CORPO RATION
IN 1 9 7 8 A N D 19 7 9
Activity
Number
1979
1978
Bank examination activities— to ta l....................................
19,914
20,248
Safety and soundness exam inations..............................
7,214
6,961
Regular examination of insured banks not
members of Federal Reserve System .........................
Re-exam inations..............................................................
Other exa m ina tion s........................................................
6.887
127
200
6.745
149
67
Consumer protection exam inations.................................
4,809
6,684
Examinations of d e p a rtm e n ts...........................................
Trust d e p a rtm e n ts.............................................................
Data-processing fa c ilitie s ................................................
2,523
1.510
1.013
2,092
1.387
705
Inve stig atio ns.......................................................................
2,892
2,755
Application re v ie w s .............................................................
New banks: State banks members of
Federal Reserve S ystem .................................................
New banks: Banks not members of
Federal Reserve S ystem .................................................
New b ra n c h e s ....................................................................
Mergers and c on solida tio ns...........................................
O th e r....................................................................................
2,476
1,756
30
26
164
1,177
147
958
136
877
103
614
6
FEDERAL DEPOSIT INSURANCE CORPORATION
count for about half of that time, up
from 44 percent in 1979. Equal
Credit Opportunity Act and Com
munity Reinvestment Act enforce
ment will each take another 1 5 per
cent of compliance examination time
and Fair Housing Act enforcement
10 percent.
All examiners receive special train
ing in the conduct of compliance
examinations. In 1979 compliance
and enforcement programs were
strengthened by creating a career
specialty for compliance examiners.
Atyear-end, 46 of the 1 14 approved
positions were filled. Eventually, all
compliance examinations will be con
ducted by career specialists. A reor
ganization plan was under study at
year-end to further strengthen FDIC's
efforts in the consumer area.
Trust Department Examinations. A
State nonmember bank wishing to
operate a trust department must re
ceive the Corporation's consent to
exercise trust powers. During 1979,
52 new trust departments began
operations in banks supervised by
the FDIC.
The Corporation supervises 2,069
trust departments in State non
member banks. As of December 31,
1 978, the latest date for which fig
ures are available, these trust depart
ments managed about $45 billion in
discretionary trust assets. Most of
the trust departments supervised by
the Corporation are relatively small:
1,563, or 78 percent, have $ 10 mil
lion or less in trust assets. However,
the Corporation also supervises 71
trust departments of over $ 100 mil
lion and 10 of these manage over $ 1
billion in discretionary trust assets.
Additionally, 453 banks were regis
tered with the FDIC as registrars and
transfer agents of certain classes of
securities as required by the Securi
ties Exchange Act of 1934.
Each State nonmember banktrust
department is examined regularly by
the Corporation. To enhance the
FDIC's trust examination capabil
ities, 15 Trust Specialist bank exam
iners have been appointed in 10
Regional Offices.
Each trust department supervised
by the Corporation must file an an
nual report showing the market
value of discretionary trust assets
under its control. The 1979 report
was the first such statistical survey
of banks to be conducted under the
auspices of the Federal Financial
Institutions Examination Council (FFIEC).
In addition, the FDIC expanded cov
erage of the report to include those
mutual savings banks exercising
trust powers. The report also in
cludes, for the first time, a schedule
giving certain details about each
collective investment fund operated
by a bank's trust department.
A survey to determine the extent of
overseas trust activities of State non
member banks was conducted atthe
end of 1979 under the auspices of
the FFIEC. The survey requested infor
mation on the type, volume, and
location of investment management
and other fiduciary services offered
overseas.
The Corporation changed Part 309
of its Rules and Regulations in 1979
to allow additional inform ation
shown on the Trust Department An
nual Report to be made available to
the public upon request in the same
manner as bank Reports of Condi
tion and Reports of Income.
A new Part 344 of the Corpora
tion's Rules and Regulations was
adopted in 1979, effective January
1, 1980, setting uniform minimum
standards in bank recordkeeping,
customer confirmations, and other
policies and reporting requirements
on securities transactions for trust
department and other bank cus
tomers.
Electronic Data Processing (EDP)
Examination. In 1 979, the FDIC en
hanced its EDP training program for
examiners, and structured EDPTrain-
/
OPERATIONS OF THE CORPORATION
ing Courses for Interagency use.
In 1978, the Corporation adopted
an Interagency EDP policy state
ment which brought about joint or
rotated examinations of independ
ent data centers and distribution of
examination reports to all servicers
and serviced institutions. This gen
erated a substantial am ount of
paperwork ;so the policy was modi
fied in m id-1979 in favor of distribu
tion only when conditions noted at a
servicer could adversely or materially
affect serviced institutions.
Development of the Interagency
EDP Examination Manual began in
early 1979. Publication is expected
in m id-1980 and implementation
shortly thereafter. A draft of the man
ual was reviewed by bankers, data
processors, consultants and reg
ulators.
Applications. State nonmember
banks must apply to the FDIC to,
among other things, obtain deposit
insurance, establish new branches,
or relocate existing offices. The Cor
poration also rules on merger, con
solidation and purchase and assump
tion transactions when the resulting
bank is to be an insured State non
member bank, or on any mergertype transaction of an insured bank
with a noninsured institution. In ap
proving or denying applications, the
FDIC considers such factors as the
bank's financial history and condi
tion, its capital adequacy, its future
earnings prospects, the general char
acter of its management, and the
convenience and needs of the com
munity to be served, and — in a
merger-type transaction — the ef
fect on competition.
During 1979, the Corporation con
sidered:
• three applications of foreign
banks for U.S. branch offices;
• 166 applications of banks for
deposit insurance, including
31 from State member banks
w h ich app lied fo r c o n tin
uation of insured statusfollowing voluntary withdrawal of mem
bership from the Federal Re
serve system;
• 1,437 applicationstoestablish
new branches or operate lim
ited branch and remote serv
ice facilities; and
FDIC APPLICATIO NS
1979
1978
Deposit insurance— to ta l.................................................. .............
A p p ro ve d ........................................................................... .............
D e n ie d ............................................................................... .............
169
167
2
134
130
4
New Branches (prior consent)— to ta l.............................. .............
A p p ro ve d ........................................................................... .............
B ran ch.............................................................................. ............
Limited B ran ch................................................................•............
Remote Service Facility................................................. ............
D e n ie d ................................................................................ ............
1,437
1,434
84 5
122
467
3
1,055
1,045
680
162
203
10
M ergers*— to ta l.................................................................. ............
A p p ro ve d ........................................................................... ............
D e n ie d ................................................................................ ............
53
52
1
70
65
5
‘ C ertain m ergers undertaken as part of internal reorganizations not included.
8
FEDERAL DEPOSIT INSURANCE CORPORATION
• 53 merger-type proposals, in
cluding three emergency cases.
All applications were approved ex
cept for two denials of insurance,
three denials of branches, and one
denial of a merger.
The Change in Bank Control Act,
Title VI of The Financial Institutions
Regulatory and Interest Rate Control
Act of 1978 (FIRlRCA), effective
March 10, 1979, expanded Section
7(j) of the Federal Deposit Insurance
Act to give the Corporation and the
other Federal banking agencies the
power to deny in advance changes in
control of insured banks and bank
holding companies. The expanded
Section 7(j) requires personsorgroups
buying control of an insured State
nonmember bankto provide 60 days
written notice to the Corporation,
plus detailed personal background
and financial data and information
on the terms and financing of the
proposed acquisition.
After considering the views of the
appropriate State chartering author
ity, the Corporation may deny the
proposed acquisition on the basis of
anticompetitive considerations. The
acquisition may also be barred if the
financial status, competence, expe
rience and integrity of the acquiring
persons or their management might
jeopardize the financial stability of
the bank or prejudice the interests of
the depositors. The legislation pro
vides for the exchange of informa
tion among Federal banking agen
cies and provides appeal p ro
cedures for purchasers whose acqui
sitions have been denied. Previous
requirements that banks report, with
certain exceptions, loans secured by
25 percent or more of the outstand
ing stock of a bank to the appro
priate Federal regulator remain in
effect. In addition, reports pre
viously required from banks relating
to changes in chief executive o ffi
cers and directors occurring within
12 months of a change in control
were expanded by the 1978 legisla
tion to include information on their
past and present business and pro
fessional affiliations.
Implementation of the Change in
Bank Control Act included adoption
by the Corporation of a policy state
ment and revisions to Part 303 of its
regulations. These were developed
on an interagency basis and are
consistent with those of the other
Federal bank supervisory agencies.
Both reflect policies which provide
for effective administration with mini
mum additional burden on the mar
ketplace, balancing the prevention
of serious harmful effects of some
transactions against the impact of
the statute on legitimate business
transactions. Authority to act on cer
tain "prior notices” has been dele
gated to the Corporation's Regional
Directors; however, only the Board
of Directors may disapprove a no
tice.
During 1979,therewere469 changes
in control of State nonmember banks
reported to the Corporation. These
changes included formations of and
acquisitions by bank holding com
panies, transactions w hich o c
curred prior to the effective date of
the Change in Bank Control Act, and
other transactions not necessarily
subjecttothe"prior notice" require
ments. The Corporation accepted
148 "prior notices" pursuant to the
Act. Of this total, 120 "letters of
intent not to disapprove" were
issued, 1 5 had not been acted on at
year-end, nine were withdrawn and
one was disapproved by the FDIC
Board of Directors. In three cases
the period for disapproval was pur
posely allowed to expire without the
issuance of a "letter of intent not to
disapprove." Average processing time
for the 1 24 "prior notices" acted on
during 1 979 was 34.5 days. About
3,700 workhours were devoted in
1 979 to evaluating and processing
"prior notices."
OPERATIONS OF THE CORPORATION
In connection with changes in
bank control, the FDIC and the other
Federal bank regulators began ef
forts in 1979 to develop a compre
hensive central data base of infor
mation on foreign investment in U.S.
banks. It is anticipated that the data
base will become operational in
1980.
Uniform Supervision. During 1979,
the Corporation continued to make
significant advances in the devel
opment of uniform supervisory poli
cies and procedures and the elimi
nation of duplication of regulatory
effort. FDIC participation in the Inter
agency Coordinating Committee, which
was set up early in 1977 to coordi
nate certain supervisory policies
and procedures among the three
Federal banking agencies was car
ried over into the activities of the
Federal Financial Institutions Exam
ination Council (FFIEC).
The FFIEC, which was created by
Title X of FIRIRCA, consists of OCC,
the Federal Reserve Board, the Fed
eral Home Loan Bank Board, the
National Credit Union A dm inis
tration and the FDIC. The Council
established five task forces to work
on development of a common moni
toring system for banks; coordina
tion of supervisory activities; uni
form administration of consumer pro
tection laws and regulations; com
mon data gathering systems; and
common educational programs. Proj
ects completed by the various task
forces and approved by the Council
are detailed in the FFIEC's annual
report.They includea uniform inter
agency system for rating financial
institutions; joint regulations and re
porting requirements underthe Inter
national Banking Act; procedures
for coordination of formal corrective
actions and bank holding company
inspections and subsidiary bank exam
inations; a proposed policy on credit
life insurance sales by lenders; and
policies on uniform disclosure of
9
enforcement actions, payment of bank
employees' membership fees and
dues in private clubs that discrimi
nate, and the purchase and sale of
U.S.-guaranteed loans.
The uniform system for rating
banks and thrift institutions and ident
ifying those with problems makes it
possible to reconcile differences among
credit unions, savings and loan asso
ciations, mutual savings banks and
commercial banks to achieve uni
formity and consistency in evaluat
ing their soundness and their com
pliance with law. While ratings for
individual institutions are not made
public or given to the institutions
examined, a uniform rating system
permits a better comparison of the
varied aggregate data regularly made
available by the five agencies.
Shared national credits are those
loans aggregating $20 million or
more to one borrower which are par
ticipated in or shared by two or more
banks. During 1979, the FDIC con
tinued its participation with the OCC
and the Federal Reserve Board in an
annual review of these credits. The
review and classification of shared
national credits, conducted inde
pendently of regular examinations,
is the responsibility of speciallyselected joint examiner teams as
signed to the lead bank or agency for
such credits. Ordinarily, shared na
tional credits are reviewed only on
an annual basis; however, any par
ticipating bank involved may re
quest, through its lead bank, that an
interim review of an individual credit
be conducted. The appraisal as
signed at the lead bank, including
any adverse classification, is appli
cable to all participations of such
credit held by any national, State
member or State nonmember in
sured bank, and remains in effect
until the next regular annual review
or subsequent change resulting from
an interim review. A total of 271
insured State nonmember banks par
10
FEDERAL DEPOSIT INSURANCE CORPORATION
ticipated in shared national credits
in 1979.
The FDIC, the OCC, the Federal
Reserve and the Conference of State
Bank Supervisors jointly issued on
May 7, 1979, a revised statementon
classification of bank assets and
appraisal of securities in bank exam
inations, including amended rules
for assessing bank holdings of muni
cipal general obligations. The state
ment is a revision of the Uniform
Agreement on the Classification of
Assets and Appraisal of Securities
Held by Banks issued in 1938 and
revised in 1949. The revision (1)
provides expanded definitions of'Substandard,'' “ Doubtful/' and "Loss”
categories used for criticizing bank
assets; (2) sets guidelines for ex
aminers to follow in distinguishing
investment quality from subinvest
ment quality securities in bank port
folios; and (3) restates guidelines for
examiners to use in computing a
bank's net sound capital. The re
vised Uniform Agreement also pro
vides an exception to the general
rulesfor appraisal and classification
of municipal general obligation se
curities in bank portfolios.
The three Federal bank regulatory
agencies issued a joint policy state
ment on November 15, 1979, set
ting forth precautionary rules and
specific guidelines for commercial
and mutual savings banks that en
gage in futures, forward and stand
by contracts for U.S. government
and agency securities. The policy
statement, which is to become effec
tive on January 1, 1980, said that
banks that engage in these con
tracts should do so in accordance
with safe and sound banking practi
ces, with levels of activity reason
ably related to the bank's business
needs and its capacity to fulfill its
obligations under these contracts. It
also provided a set of guidelines that
should be followed by banks author
ized to participate in these markets.
The statement noted that the agen
cies will closely monitor bank tran
sactions in financial futures, for
ward and standby contracts. De
pending on what this monitoring
discloses, it might be necessary to
establish position lim its or take
other supervisory precautions against
unsafe or unsound practices.
ENFORCEMENT PROCEEDINGS
If a supervised bank does not cor
rect an unsafe or unsound practice
or a violation of a law, rule, regula
tion or written agreement with the
FDIC, the Corporation may initiate a
cease-and-desist proceeding. If the
bankdoes not comply, the FDIC may
seek enforcement in a U.S. District
Court or levy a fine.
The FDIC may issue cease-anddesist orders under Sections 8(b)
and 8(c) of its Act. During 1979, the
Board of Directors authorized 59
such actions, resulting in 37 final
orders under Section 8(b) and six
temporary orders under Section 8(c).
In addition, 15 final orders were
issued covering cease-and-desist proceedings begun in 1978. The FDIC
also brought one enforcement ac
tion in 1979 against a bank in the
appropriate United States District Court
for violation of Section 8(b) orders.
The Corporation is making greater
use of its authority to issue ceaseand-desist orders to achieve correc
tion of certain weaknesses in banks.
It first used the authority in 1971
and from 1971 through 1975 issued
37 orders. Inthelastfouryearsithas
issued 176 orders under Sections
8(b) and 8(c). During 1979, seven
cease-and-desist orders were issued
to correct violations of various consumeroriented laws and regulations. Another
51 orders were issued primarily to
correct unsatisfactory financial con
ditions or management practices.
FIRIRCAexpanded the Federal bank
ENFORCEMENT PROCEEDINGS
supervisors' authority under Section
8(b) to also permit cease-and-desist
orders against bankers and fines of
up to $ 1,000 per day on both banks
and bankers for certain violations.
No fines were levied during 1979.
The FDIC may initiate terminationof-insurance proceedings under Sec
tion 8(a) of the Federal Deposit Insu
rance Act if it finds a bank is in an
unsafe or unsound financial condi
tion. If a bank does not correct defi
ciencies noted by the FDIC within a
prescribed time period, an adminis
trative hearing is held at which the
bank can respond to the Corpora
tion's charges. If the charges are
substantiated, the FDIC may termi
nate the insured status of the bank.
The depositors of the bank are then
notified of the termination, but de
posits (less subsequent withdrawals)
continue to be insured fortw o years.
During 1979, the FDIC initiated
nine termination-of-insurance pro
ceedings by issuing Findings of Un
safe or Unsound practices and Con
dition and Orders of Correction. Six
proceedings were still pending at
year-end; the otherthree were made
moot by two bank closings and a
merger. From 1 934 through 1979,
action was taken under Section 8(a)
against a total of 252 banks, and
246 cases had been closed at the
end of 1979. In slightly less than
one-half of the closed cases, correc
tions were made; in most of the
other closed cases the banks were
absorbed by other insured banks or
C E A SE -A N D -D ES IST ORDERS A N D ACTIO N S TO CORRECT
SPECIFIC UNSAFE OR UN SO U N D PRACTICES OR VIO LATIO NS
OF LAW OR REGULATIONS: 1 9 7 6 , 1 9 7 7 , 1 9 7 8 , A N D 19 7 9
1979
1978
1977
1976
Actions authorized by Board of D irectors.................................
59
51
50
41
Actions in negotiation at end of ye a r........................................
16
22
6
15
Cease-and-desist orders outstanding at beginning of
ye a r-to ta l....................................................................................
Section 8(b) ..............................................................................
Section 8 (c)...............................................................................
70
67
3
65
63
2
36
34
2
15
15
0
Cease-and-desist orders-issued during y e a r-to ta l.................
Section 8 ( b ) ..............................................................................
Section 8 (c)...............................................................................
43
37
6
31
26
5
39
31
8
26
21
5
Cease-and-desist orders issued in actions authorized
in prior y e a r-to ta l.....................................................................
Section 8 ( b ) ..............................................................................
15
15
6
6
13
13
3
3
o
Cease-and-desist orders term inated-total................................
Section 8 ( b ) ..............................................................................
Section 8 (c)...............................................................................
40
31
9
32
28
4
23
15
8
8
5
3
Cease-and-desist orders in force at end of y e a r-to ta l............
Section 8 ( b ) ..............................................................................
Section 8(c)................................................................................
88
88
0
70
67
3
65
63
2
36
34
2
12
FEDERAL DEPOSIT INSURANCE CORPORATION
ceased operations priorto the estab
lishment of a date for insurance ter
mination. In 15 cases, insurance
was terminated or the bank ceased
operations following the fixing of a
date for insurance termination.
Under Section 8(e) of the FDI Act,
the FDIC may remove an officer,
director, or other person participat
ing in the management of an insured
State nonmember bank if it deter
mines that the person has (1) vio
lated a law, rule, regulation, or final
cease-and-desist order; (2) has en
gaged in unsafe or unsound banking
practices; or (3) breached his or her
fiduciary duty. The individual's ac
tion must involve personal dishon
esty or a willful disregard for the
safety and soundness of the bank.
Also, the action must entail substan
tial financial damage to the bank, or
seriously prejudice the interests of
the bank's depositors or the individ
ual must have received financial gain.
During 1 979, two actions were
taken under Section 8(e).
Section 8(g) of the FDI Act author
izes the Corporation to suspend or
remove officers, directors, and other
persons participating in the affairs
of insured State nonmember banks
who are indicted for a felony involv
ing dishonesty or a breach of trust.
One individual was suspended under
this section in 1979.
Section 19 of the FDI Act prohibits
anyone convicted of any criminal
offense involving dishonesty or breach
of trust from serving as a director,
officer or employee of any insured
bank without the written consent of
the Corporation. In 1978 the Corpo
ration amended Part 303 of its regu
lations to delegate to the Board of
Review, the Director of the Division of
Bank Supervision, and its Regional
Directors the authority to approve
certain applications under Sec
tion 19 where the subject of the
request would not constitute a sig
nificant threat or risk to the safety
and soundness of the applicant bank.
During 1979, the Corporation con
sidered 62 cases under Section 19,
approving all but four.
PROBLEM BA N K S
For the third consecutive year, the
number of institutions on the FDIC's
list of problem banks, which peaked
at 385 in November 1976, con
tinued to decline. By year-end 1979,
the number of problem banks was
287, the lowest since m id-1975 and
a net reduction of 55 for the year.
The decrease is attributed to improve
ment in the real estate sector and in
local economic conditions follow
ing the 1973-1975 recession. Be
cause of the time lag before banks
are affected by an economic cycle
and the time it takes to examine
banks and complete the review and
analysis process, any increase inthe
number of problem banks stemming
from unfavorable developments in
the last half of 1979 might not be
evident until late 1980.
The problem bank list (which in
cludes national and both member
and nonmember State banks) con
tinues to be very fluid and most
banks remain on the list for a rela
tively short period. During 1979,
there were 198 banks removed from
problem status, while 143 were
added. Of those on the list at the end
of 1979, 55 percent had been in
problem status for 18 months or
less, while only 23 percent had been
on the list for more than three years.
Areas of concern in these newlydesignated problem banks included
asset problems resulting from mis
management and/or insider abuses,
poor earnings, inadequate capital,
and insu fficie n t liquidity. W hile
some banks have relaxed loan qual
ity considerations in an effort to
generate income to meet rising
costs, other banks have experienced
13
PROBLEM BANKS
disintermediation problems, both of
which have become matters of super
visory concern.
The FDIC divides problem banks
into three categories based on the
degree of insurance risk:
SERIOUS PROBLEM— POTEN
TIAL PAYOFF: An advanced seri
ous problem situation with an
estimated 50 percent or more
chance of requiring financial
assistance by the FDIC.
SERIOUS PROBLEM: A situa
tion thatthreatens ultimately to
involve the FDIC in a financial
outlay unless drastic changes
occur.
OTHER PROBLEM: A situation
in which a bank has significant
weaknesses but the FDIC is
less vulnerable. Such banks requireaggressivesupervisionand
more than ordinary attention.
An analysis of the problem bank
list since 1973 shows that about 34
percent of the banks once desig
nated "Serious Problem-Potential
Payoff" ultimately failed. Another 10
percent merged with other banks
without financial assistance from
the Corporation, while one percent
were financially assisted by the Cor
poration. Fifty-three percent were
accorded a less severe rating or
removed from problem status. Each
of the banks in this category at the
end of 1979 held deposits of less
than $50 million. The two most seri-
NUMBER OF PROBLEM BANKS
1 9 7 0 — 1978
N um ber o f Banks
4 0 0 -------------------|
S erious P rob lem — Potential Payoff
feBjH S erious Problem
]
----
O ther Problem
300-
200
100
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
14
FEDERAL DEPOSIT INSURANCE CORPORATION
ous problem categories accounted
for 67 of the problem banks at yearend 1979, a significant reduction
from the 93 at the end of 1978.
Of the 287 banks on the problem
list at the end of 1979, nine were
affiliates of multi-bank holding com
panies, while 34 were owned by
one -b a n k h o ld in g com pan ies.
Based on deposit size, banks on the
problem list were distributed as fol
lows:
Deposit Size
Number of Banks
Less than $25 m illion
1 93
$25 - $50 m illion
47
$50 - $ 100 m illion
24
$1 00 - $5 0 0 m illion
15
$5 00 m illio n - $ 1 billion
6
$ 1 billion or more
__ 2
TOTAL
287
P roblem banks re p re se n te d
only about two percent of all banks
insured by the FDIC.
The FDIC continues to aggres
sively supervise problem banks, as
well as those which need moresupervisory attention but do not present
an undue risk to the insurance fund.
During 1979,the Corporation adopted
a procedure to generally require, as
a minimum, cease-and-desist action
againsta problem bankand a less for
mal memorandum of understanding
with a bank considered to be of super
visory concern, as defined by the
uniform rating system. This procedurealso isfollowed bytheOCC and
the Federal Reserve Board. Close con
tact at the W ashington and Re
gional levels with these Federal reg
ulators has enabled the Corporation
to keep more currently informed about
banks supervised by them and,
where appropriate, has facilitated
the scheduling of examinations of
related banks and holding compan
ies supervised by the FDIC and the
other supervisors. Atyear-end, the agencies adopted policy statements cal
ling for close coordination of exam
inations and enforcement actions
against related institutions.
The Corporation continues to con
duct more frequent examinations
and visitsto problem banks, to regu
larly meet with directors and man
agement of such banks, and to for
mally notify them when their bank is
recommended for problem status.
Such procedures not only keep the
d ire ctors of problem banks in
formed of the Corporation's con
cern, but point out their responsibili
ties and duties in developing and
implementing corrective programs.
FAILED B A N K S
Protection of Depositors. Ten in
sured banks with deposits totaling
$111 million closed in 1979, com
pared to seven banks with $854 mil
lion in deposits in 1978. The FDIC
has nearly completed payoffs of de
posits of about $12.7 million in
three of the 1979 closings. In the
seven other closed banks, the FDIC
arranged purchase and assumption
transactions which automatically pro
tected all accounts, including those
in excess of the insurance limit. The
purchase and assumption transac
tions were assisted by cash ad
vances of $70.5 million from the
FDIC insurance fund. In these cases
$7.8 million in purchase premiums
were received from the assuming
banks.
The deposit assumption and the
deposit payoff are the two principal
methods available to the FDIC to
protect depositors. In the 558 in
sured bank failures that have re
quired Corporation disbursements
since 1934, 251 were deposit as
sumptions and 307 were direct de
posit payoffs. In the assumption meth
od, which has been used increas
ingly in recent years, the depositors'
accounts in the failed bank become
depositaccountsinthehealthyassuming bank. All depositors are thereby
15
FAILED BANKS
afforded full protection with min
imal or no disruption of banking ser
vices to the community. In a payoff,
the FDIC pays depositors the net
amount covered by deposit insur
ance. These payments usually begin
within five to seven days of the bank
closing. Payments of the uninsured
portions of deposits, to the extent
possible, are made over a period of
tim efrom the proceeds of liquidated
assets and other sources.
The FDIC also may provide direct
assistance to an operating insured
bank in danger of failing to enable it
to remain open if that bank is essen
tial to maintain adequate banking
services in a community. It has pro
vided such assistance in four cases,
most recently in 1976.
In the 558 failed bank cases, 99.8
percent of the depositors had re
ceived or were assured of payments
of their deposits in full at the end of
1979, and 99.8 percent of the total
deposits had been paid or made
available to them. In the 307 deposit
payoff cases, 98.8 percent of depos
itors had received full recovery. While
the recovery of uninsured deposits
varies, in the aggregate almost 97
percent of total deposits had been
paid or made available. About 70
percent of the total amount already
recovered by or made available to
depositors in deposit payoff cases
was provided by FDIC payment of
insured deposits, with additional
amounts provided from the pro
ceeds of liquidated assets, offsets
against indebtedness and pledged
assets.
Liquidation Activities. During the
1960s, 43 insured banks with as-
DEPOSITS AND LOSSES IN ALL INSURED BANKS
REQUIRING DISBURSEMENTS BY FDIC, 1 9 3 4 -1 9 7 9
TOTAL DEPOSITS
$7.40 billion
DISBURSEMENTS BY FDIC"
$5.22 billion
Lost or not yet available to depositors
$14.5* million
•Revised
"Includes collections and disbursements by liquidators in the field ($1.5 billion) which were
previously excluded from this chart.
FEDERAL DEPOSIT INSURANCE CORPORATION
16
I N S U R E D B A N K F A IL U R E S
1934
—
1979
N u m b e r o f ban ks
8 0 ----------------------------------------------------------------------------------------------------------------------------------
70D e p o s it P a y o ff
D e p o s it A s s u m p tio n
60-
50-
40-
sets of $326.5 million failed, affect
ing 231,688 depositors with depos
its of $283.5 million. The 1970s
saw 76 insured bankfailures involv
ing assets of about $8 billion and
2.1 million depositors with deposits
totaling about $5 billion. At the end
of 1979, the Division of Liquidation
was disposing of the assets of 84
banks in 27 States, the Virgin Is
lands, and Puerto Rico. At year-end
1979, there were more than 76,000
assets with a book value of more
than $1.9 billion to be liquidated.
About one-third of these assets were
real estate related.
The FDIC's policy is to convert the
assets of closed banks to cash as
early as practical and to realize max
imum recovery for distribution to the
creditors and stockholders.
In the 53 purchase and assump
tion transactions inthe 1970s, banks
acquired about $3.6 billion of as
sets from the FDIC. as receiver,
which had the effect of immediately
recovering substantial amounts for
the creditors. For the same period,
the FDIC, as liquidator, collected
about $3.8 billion in principal, inter
est and costs from the remaining
assets. In addition, the receiverships
FAILED BANKS
recovered $325 million from pur
chase premiums paid by banks for
the right to acquire the failed banks'
deposits and banking locations.
Recovery for creditors and stock
holders can also result in some cases
from directors' liability actions ini
tiated by the receiver and /or liquid
ator. Because many bank closings
are the direct result of bank direc
tors' failure to use reasonable care
in discharging their duties or permit
ting violations of banking laws, the
FDIC normally investigates potential
negligence and files claims when
warranted against members of the
bank's board. In 1979, the FDIC filed
four directors' liability suits; at the
end of 1979, there were 26 such
suits pending.
Whenever it is determined thatthe
bank suffered losses due to the fraud
ulent and dishonest acts of its em
ployees, the Corporation pursues a
claim against the institution's Bank
ers Blanket Bond carrier. Most claims
are settled without litigation. How
ever, at the end of 1979, there were
INSUR ED BAN KS CLOSED DURING 1 9 7 9 REQ UIRING DISBUR SEM ENTS
BY THE FEDERAL DEPOSIT IN SUR ANCE CO RPO RATION
Name and location
Date of
deposit payout
or assumption
Number of
depositors
or accounts
Am ount of
deposits (in
m illions of
dollars)
Toney Brothers Bank
Doerun, G e o rg ia .....................
January 5, 1979
1.470
5.8
Village Bank
Pueblo West, C o lo ra d o ..........
January 26, 1 979
1.394
4.9
Southern National Bank
Birmingham, A labam a............
June 14. 1979
3.61 1
24.0
Bank of Enville
Enville, T enn esse e..................
June 16. 1979
949
3.1
The Guaranty Bank & Trust
Company
Chicago, I llin o is ......................
July 14. 1979
5.2 70
7.4
Gateway National Bank of
Chicago
Chicago, I llin o is ......................
July 14. 1979
3 ,7 0 0
9.2
The Farmers State Bank
Protection, Kansas..................
September 2 1 ,1 979
1,206
4.7
Fidelity Bank
Utica, M is s is s ip p i....................
September 28, 1 979
1 1.91 1
30.2
American National Bank
Houston. T e x a s .......................
October 1 2, 1 979
5.1 00
10.4
Livingston State Bank
Livingston. New J e rse y ..........
October 1 2, 1 979
7.226
11.1
FEDERAL DEPOSIT INSURANCE CORPORATION
18
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 ,
M illio n s o f d o lla rs
1970—
1979
2. 70 0--------------------------------------------------------------------------------------------------------
1970
'71
N um ber
90 -----------------
3 0 ------------------
20----------------10 ------------------
0— i----------r1970
— I—
— r~
'71
12
73
74
nine such suits pending.
An important innovation in the
FDIC’s liquidation program devel
oped in 1979 for introduction in
1980 is a separate budget to intro
duce tighter monitoring and control
to this unique aspect of FDIC opera
75
- r-
76
'77
'78
'79
tions. This budget will encompass
insurance fund expenditures which
the Corporation seeks to recoupthrough
liq u id ation operations before it
writes off a loss. The 1 980 budget
covers costs to be incurred in 1980
in the continuing administration of
CONSUMER AND CIVIL RIGHTS PROTECTION
banks that failed in 1979 or earlier—
an active caseload of 84 banks.
There is also a small contingency
fund to begin closed-bank activities
for failures that may occur in 1980.
Individual closed-bank budgets will
be developed and incorporated as
failures occur.
Also, a new integrated liquidation
accounting system, to become opera
tional in January 1980, is designed
to operate on computers. It will be
able to produce on demand full finan
cial statements and budget status
reports for all closed-bank activities.
These reports separately and to
gether will provide much greater
information for the management of
banks in liquidation.
The system tested well in late 1979,
but 1 980 will be a year of conver
sion and initial operation. The Cor
poration will obviously need some
running time and experience with
the system to overcome shortcom
ings and introduce refinements.
The FDIC is charged with obtain
ing the best possible recovery in
each liquidation. Its goal is to repay
the insurance fund first and to return
any excess to bank shareholders
where a purchase and assumption is
arranged or to share the recovery
proportionally with general cred
itors and then the shareholders when
the Corporation serves as receiver
following a deposit payoff.
CONSUMER AND CIVIL
RIGHTS PROTECTION
Resolving Complaints. Examiner moni
toring of consumer and civil rights
compliance by banks is comple
mented by the work of the Office of
Consumer Affairs and Civil Rights
(OCACR) which follows up com
plaints of individuals. OCACR also
disseminates consumer protection
information and in November 1979
introduced a consumer hot line which
19
draws about 240 calls a week. This
hot line helps consumers and banks
by promoting better understanding
and resolution of questions.
This year saw the appointments of
OCACR's first permanent Director
and a Community Reinvestment Act
specialist. The Corporation also ap
pointed a specialist for Spanish
speaking persons. Among otherduties,
this specialist oversees the transla
tion of FDIC consumer pamphlets
into Spanish. OCACR w ill also
launch a special outreach program
forSpanish-speaking persons in 1980
and will explore the possibility of
other specialized outreach pro
grams.
In 1979 the FDIC instituted a new
computerized system to:
(1) follow the status and handling of
consumer complaints and requests
for information,
(2) produce one-page summaries of
census information for use by exam
iners and other FDIC personnel eva
luating bank compliance with the
Community Reinvestment Act,
(3) summarize hundreds of letters of
comment on proposed new Truthin-Lending Guidelines, and
(4) tabulate a follow-up survey ask
ing complainants if their problems
were satisfactorily resolved.
Fair Housing. The FDIC developed
and pre-tested a data collection sys
tem to provide a valid statistical
basis for the monitoring of home
loans under the Fair Housing and
Equal Credit Opportunity Acts. This
system will supplement the tools of
the compliance bank examiner. It is
slated to become operational during
1980.
The data collection system is de
signed to detect possible home loan
discrimination. The relationship be
tween inquiries and applications, be
tween successful and unsuccessful
applications, and the loan terms grant
ed to borrowers will be categorized
and compared by the race, sex, age
20
FEDERAL DEPOSIT INSURANCE CORPORATION
and marital status of inquirers and
applicants. Use of this system will
not definitely establish the existence
of illegal discrimination, but should
identify for FDIC examiners those
banks requiring more extensive exam
ination and follow-up.
Mortgage Disclosure. The FDIC and
the Federal Home Loan Bank Board
completed a study of the Home Mort
gage Disclosure Act (HMDA). The
study assessed the accuracy of 44
depository institutions' HMDAstatements and the cost of preparing the
data on mortgage lending activity
w hich appears in these s ta te
ments.
The study concluded that home
mortgage disclosure data are used
extensively by the Federal financial
supervisory agencies as part of their
compliance examinations. However,
it concluded that many institutions
do not have sufficiently accurate
statements. Further, the cost of com
piling home mortgagedisclosuredata
was shown to vary considerably among
institutions.
The report recommended exten
sion of the Act, which was passed in
1975 and expires in 1980 if not
reenacted. The FDIC has gone on
record as supporting the extension
of the Home Mortgage Disclosure
Act.
Truth-In-Lending Enforcement Guide
lines. The FDIC, in conjunction with
the other Federal financial regula
tory agencies, adopted effective Jan
uary 4, 1979, uniform guidelines for
the enforcement of Truth In Lending
Regulation Z. These guidelines call
for reimbursement to customers for
overcharges of $ 1.00 or more, or for
smaller overcharges that are part of
a consistent pattern of violations or
result from gross negligence or w ill
ful violations of the Truth In Lending
Act. Changestosimplifyand streng
then the guidelines were proposed
in October. Pending consideration
of the nearly 800 comments re
ceived and the adoption of revised
guidelines, FDIC supervised banks
are temporarily being permitted to
defer making such reimbursements.
Community Reinvestment. The Com
munity Reinvestment Act (CRA) of
1977, which became effective in
November 1978, requires the Cor
poration to monitor the records of
financial institutions in meeting the
credit needs of their communities,
including lowand moderate-income
neighborhoods.
Effective February 4, 1979, the
Board of Directors of each insured
State nonmember bank was re
quired to adopt a CRA statement for
its local service area. FDIC regula
tions specify the minimum require
ments for a CRA statement and,
among other things, require that the
current CRA statement be available
for public inspection at the home
office of the bank and at each office
of the bank in the local community
delineated in the statement, except
for off-premises electronic deposit
facilities. Banks are required to main
tain files that are readily available for
public inspection, including any
signed written comments received
from the public within the previous
two years that specifically relate to
the bank's statement or its perfor
mance in helping meet the credit
needs of its community or com
munities.
A bank's CRA perform ance is
taken into account by the FDIC in
considering applications for deposit
insurance, establishment of branches
or other facilities, relocations of
main or branch offices, and applica
tions for merger, consolidation, ac
quisition of assets or assumption of
lia b ilities. The assessment of a
bank's CRA performance record may
be a basis for denial of an applica
tion.
Twenty-five challenges to applica
tions by FDIC-supervised banks
have been filed on CRA grounds,
21
CONSUMER AND CIVIL RIGHTS PROTECTION
and early in 1979 the first denial of a
bank application on CRA grounds
occurred. Other applications which
were subjected to challenges have
been approved by the Corporation
and activity in this area continues to
be substantial, particularly in met
ropolitan areas.
Right to Financial Privacy Act of
1978 . The Right to Financial Privacy
Act, Title XI of FIRIRCA, became
effective in March 1979. The Act
places restrictions on the use of
information derived from bank cus
tomer records which is lawfully in
the FDIC's possession. In most cases,
customer information contained in
examination reports can no longer
be transferred to other Federal govern
ment authorities without notifica
tion to the affected customer. Also,
the FDIC must be assured that the
information is required in connec
tion with a legitimate law enforce
ment activity. In 1979 the Division
of Bank Supervision began review
ing and revising all policies and
procedures which are affected by
the provisions of the Act.
Consumer Complaints and Inquir
ies. OCACR is responsible for the
appropriate disposition of con
sumer complaints and inquiries di
rected to the FDIC. During 1979
there were 2,801 complaints and
5,270 inquiries received by the FDIC
CO NSUM ER CO M PLAINTS A N D INQ UIRIES, 1 9 7 8 A N D 1 9 7 9
1979
1978
Complaints and inquiries— to ta l......................................
8,071
4,737
Deposit fu n ctio n .............................................................
Payment of in te re s t..................................................
Account diffe re n ce s.................................................
A dve rtising.................................................................
Early withdrawal p e n a ltie s ......................................
Policies and practices..............................................
‘ D iscrim ina tion...........................................................
O th e r...........................................................................
2,685
243
377
82
745
587
11
641
1,315
158
182
34
217
574
Loan fu n c tio n .................................................................
State or contract la w ................................................
Equal Credit O pportunity A c t.................................
Fair Credit Reporting A c t........................................
Individual bank loan po licy......................................
Collection and repossession...................................
Fair housing................................................................
Truth in le n d in g ........................................................
Other Federal law s....................................................
O th e r...........................................................................
2,528
163
646
256
180
142
51
379
285
426
1,931
115
543
133
308
100
70
183
48
431
Trust services.................................................................
61
68
Safe deposit— safekeeping services..........................
38
32
Insurance coverage.......................................................
974
685
G eneral...........................................................................
1,754
706
•Electronic Funds T ra n s fe r...........................................
31
‘ Category not listed for 1 978.
—
150
—
22
FEDERAL DEPOSIT INSURANCE CORPORATION
nationwide, an increase of 538 and
2,796, respectively, over 1978. This
increase is due in part to installation
of a toll-free telephone number
(800-424-5488) at the Washington
Office to handle complaints and in
quiries. The increase also is attribu
table to an outreach initiative to
increase consumers' awareness of
their rights under the various con
sumer protection and civil rights sta
tutes. Mostquestionsfielded by OCACR
centered on deposit withdrawal pen
alties, bankdeposit policies and prac
tices, the Equal Credit Opportunity
Act and the Truth in Lending Act.
Corrective action is sought in all
cases where a bank error or violation
of law is discovered as a result of a
complaint, and follow-up action is
taken to ensure compliance.
Consumer and Banker Education.
During 1979, the OCACR staff made
numerous presentations to consu
mer, community and industry groups.
The FDIC also distributed more than
3 2 m i l l i o n p a m p h l e t s on c o n s u m e r
information. These free pamphlets
are available singly to individuals
and in quantity to banks and consu
mer organizations. OCACR also has
distributed these pamphlets at con
sumer fairs and national confer
ences.
Minority Bank Development Pro
gram. In 1979, the three Federal
bank regulatory agencies and the
Department of Commerce were instru
mental in organizing the Minority
Bank Development Program. The pro
gram is designed to serve as a cata
lyst to coordinate, structure and en
courage private sector support for
the nation's minority-owned banks,
of which there are about 100. The
program will offer management and
market development activities and
foster the establishment of an inde
pendent capital support vehicle.
Opportunity Funding Corporation
has been given the grant to estab
lish, coordinate and direct all pro
gram components. An Executive Com
mittee composed of private sector
participants and the Department of
Commerce will offer continuing ad
vice on all aspects of the program
and its policies and priorities. The
FDIC and other bank regulators
serve on an Advisory Committee which
will offer training assistance, per
form studies, provide feedback on
the program's effectiveness and
make suggestions for im prove
ments. The FDIC's share of the fund
ing of this program is on a year-toyear basis and future grants will
depend on an assessment of the
program's effectiveness. At the end
of 1979, the program's manage
ment was in place and studies were
nearing conclusion on criteria for
selection of a few target banks for
receipt of intensive assistance.
INTEREST RATE
DEVELOPMENTS
Increased Interest Expense. Sharp
ly rising interest rates and such in
novations as money market certifi
cates of deposit (MMCDs), auto
matic transfer service (ATS) and neg o tia b le o rd e r of w ith d ra w a l
(NOW) accounts in New York State,
combined to cause marked changes
in the liability structure of many U.S.
banks in 1979. Banks acquired highyielding assets, but on balance, the
net effect on the industry as a whole
probably was some narrowing in net
interest margins.
The general level of interest rates
on market securities fluctuated with
in a range of 9 to 10 percent in the
first half of 1 979, before rising
sharply in the second half. At yearend, six-month Treasury bill rates
were 12.50 percent on a bond-yield
basis and Federal funds rates ap
proached 15 percent. MMCD rates
more than doubled over the rates
available on regular passbook sav
INTEREST RATE DEVELOPMENTS
ings and other time deposits of less
than $10,000, prompting the con
version of many deposit accounts.
At commercial and mutual savings
banks, holdings of MMCDs (time
deposits of $10,000 or more with
maturities of six months and paying
a maximum rate linked to the inter
est rate on newly issued six-month
Treasury bills) increased sharply as
banks sought to compete with alter
native market instruments, includ
ing money market mutual funds.
By the end of December 1979,
MMCDs amounted to $34.4 billion,
or more than 24 percent of total
deposits at mutual savings banks,
and to $103.2 billion or nearly 10
percent of total domestic deposits at
commercial banks. Special tabula
tions from September and Decem
ber condition reports showed an
increase from 570 to 1,573 in the
number of insured nonmember
banks having ratios of MMCDs to
total deposits of 20 percent or more.
Banks with less than $ 100 million in
assets headquartered outside met
ropolitan areas held a disproportion
ately large amount of these highcost deposits.
Accenting the 1979 increase in
interest expense for banks was the
continuing shift of consumer funds
from non-interest bearing demand
deposits to interest-bearing trans
action accounts: ATS and NOW bal
ances. A substantial amount of ef
fort is being expended through the
bank monitoring systems to assess
the capacity of individual bank man
agements to structure their loan and
securities portfolios to cope with the
present inflationary environment.
Mutual Savings Banks. Unprecedentedly high interest rates, espe
cially in the latter half of 1979, sub
jected the mutual savings bank in
dustry to a severe earnings squeeze.
In addition, savings banks, particu
larly in metropolitan areas such as
New York and Boston, experienced
23
substantial deposit outflow s in
1979. With increasing interest rates
available in other areas, net deposit
outflows excluding interest at mu
tual savings banks increased through
out the year and totaled $7 billion
for 1979. For the month of October
alone, deposit losses were well in
excess of $ 1 billion.
The introduction of six-month
money market certificates in 1978,
while perhaps averting some de
posit losses, sharply increased the
cost of funds for mutual savings
banks. Large proportions of these
money market certificates repre
sented transfers from relatively lowcost savings deposits. With relative
ly inelastic earnings position, the
overall profitability of the industry
was substantially reduced in 1979.
Reflecting a concern for the earn
ings squeeze and deposit outflow,
with the resultant liquidity pres
sures, the FDIC increased its efforts
to more closely monitor industry
trends as well as its surveillance of
individual banks.
Small Savers. In an effort to help
small savers. Federal regulators
moved jointly in 1979 to approve a
series of interest rate regulatory
changes.
Effective July 1, regulators in
creased the maximum passbook
rate to 5 1/4 percent from 5 percent
for commercial banks and to 51/2
percent from 5 1A percent for thrifts,
created a newfour-yearfloating rate
savings certificate and eliminated
the minimum denomination on most
time deposits.
In December, regulators created a
new 2V4 year certificate to replace
the four-year floating rate certifi
cate, at a yield tied to the yield on
Treasury securities maturing in 2 Vi
years. The agencies also increased
the ceiling on 90 day to one-year
deposits to 5% percent from 5Vi
percent for commercial banks and
to 6 percent from 53A percent for
24
FEDERAL DEPOSIT INSURANCE CORPORATION
thrifts. These actions were to be
come effective January 1, 1980.
IN T E R N A T IO N A L B A N K IN G
The Corporation's increased in
volvement in the area of interna
tional banking continued during
1 979 as evidenced, in part, by the
issuance of several regulations and
final as well as proposed policy state
ments covering aspects of this im
portant segment of the banking bus
iness. Much of the Corporation's
activity was attributable to FIRIRCA
and the International Banking Act of
1978 (IBA).
To implement FIRIRCA, the Corpora
tion adopted a new regulation, Part
347, pertaining to foreign banking
activities of insured State nonmem
ber banks. Under the regulation, an
insured State nonmember bank
must obtain the Corporation's con
sent before establishing its first
branch in a foreign country or be
fore acquiring any ownership inter
est in a foreign bank or other finan
cial entity. A foreign branch is per
mitted to exercise certain powers
beyond its general banking powers,
provided they are consistent with
the laws of the State where the bank
is chartered and with banking prac
tices in the foreign country where
the branch is located.The regulation
also sets forth requirements for
establishing additional branches in
a foreign country; for recordkeep
ing, controls and reporting on for
eign activities; and for making loans,
purchasing securities or investing in
affiliated foreign banks or financial
entities.
Another new regulation, Part 346,
was issued to implement Section 6
of the IBA which, among other
things, authorizes and in some
cases requires, Federal deposit in
surance coverage of U.S. branches
of foreign banks. Under the regula
tion, a State branch of a foreign bank
which accepts initial deposits of less
than $100,000 must become in
sured if it is located in a State that
requires State banks to have deposit
insurance. A branch may be exemp
ted from this requirement if the ac
ceptance of initial deposits of less
than $100,000 is limited to one or
more exempt categories listed in the
regulation. A branch which is ex
empted by the regulation from the
insurance requirement must notify
its depositors that deposits in the
branch are not insured.
The regulation also sets forth re
quirements for the operation of in
sured branches, including — but not
limited to — furnishing the Corpora
tion with information regarding the
overseas activities of the foreign
bank and its affiliates to the extent
allowed by foreign law; allowing the
FDIC to examine all offices of the
foreign bank and its affiliates in the
U.S.; pledging assets to the Corpo
ration; and maintaining assets pay
able in the U.S., in dollars or a freelyconvertible foreign currency, at
least equal to the amount of the
insured branch's liabilities. In addi
tion, the regulation establishes rules
for the operation of insured and
uninsured branches in the same
State.
During the year, 14 foreign banks
applied fo r insurance fo r 26
branches located in various parts of
the country. At year end, insurance
had been granted to three branches
of two banks.
Since the IBA granted supervisory
responsibilities to each of the Fed
eral bank regulatory agencies, a
joint policy statement was issued
through the FFIEC on the supervi
sion of U.S. branches and agencies
of foreign banks. The agencies' super
visory operations will be aimed at
assuring the safety and soundness
of these institutions and their adher
ence to U.S. law and regulation. To
ensure close cooperation with State
authorities, a uniform examination
approach has been developed through
the FFIEC to minimize dual examina
tions and to facilitate joint FederalState examinations, when desirable.
INTERNATIONAL BANKING
The Federal regulatory authorities,
through the FFIEC and in coopera
tion with affected State authorities,
also have developed joint reporting
requirements for U.S. offices of for
eign banks. In recognition of the
reliance of these offices on the finan
cial strength of their parent and affil
iated offices outside the U.S., the
regulators also will seek assurance
thatthe parent institutions are finan
cially sound. To this end, the agen
cies plan to collect information on
the consoldiated operations of the
foreign banks and will continue to
engage in dialogue with senior man
agement of the banks and bank super
visory authorities of other nations.
In recognition of the importance
of overseas lending activities of U.S.
banks, the Corporation and other
banking agencies havecontinued to
follow uniform procedures for eva
luating and commenting on country
risk factors in the international loan
portfolios of U.S. banks. Country risk
in bank lending refers to the possi
bility that economic, political or
social conditions in a country might
create a situation in which borrow
ers in that country would be unable
to service or repay their debts to for
eign lenders in a timely manner.
The uniform procedure requires
examiners to segregate country risk
factors from the evaluation of other
lending risks and to assess a bank's
ability to analyze and monitor coun
try risk in its international lending.
The assessment emphasizes diversi
fication of exposure to individual
countries as the primary method of
moderating country risk in interna
tional portfolios. Examiners classify
a bank's aggregate credits to a coun
try on the basis of country risk only
when there has been an interruption
in debt servicing or one is consi
dered imminent. The commercial
credit risks in the bank's interna
tional portfolios continue to be as
sessed on an individual loan basis in
accordance with traditional stand
25
ards of credit analysis.
To help monitor the growth and
composition of the international
loan portfolios of U.S. banks, the
Corporation receives the results of
the semi-annual Country Exposure
Report. The report is mandatory for
any domestic bank with a foreign
branch, a foreign subsidiary, or an
Edge Act or Agreement corporation
(branches of national banks estab
lished with Federal Reserve appro
val in foreign countries to finance
and stimulate foreign trade) with
aggregate foreign claims in excess
of $20 million. It is intended to cap
ture data on foreign credit activity of
U.S. banks in all countries, by type of
borrower and maturity of claims.
Banks are also required to report
firm commitments to extend addi
tional credit in any country.
The Corporation, through the
FFIEC, in 1979 issued a proposed
Statement of Policy Concerning Min
imum Standard for Documentation,
Accounting and Auditing of Foreign
Exchange and Money Market Opera
tions of Commercial Banks. The in
tent of the policy statement is to
reinforce existing accounting proce
dures and auditing practices widely
utilized by commercial banks in mon
itoring and controlling foreign ex
change and money market activities.
The policy statement emphasizes
the need for timely and accurate
internal reporting so that bank
boards of directors, senior manage
ment and government supervisors
can manage and supervise this in
creasingly important aspect of inter
national banking activity.
Because of the Corporation's in
creased involvement in interna
tional banking, an effort has been
made to enhance the staff's exper
tise in this area. A number of exa
miners have attended specialized
courses and seminars in interna
tional banking. In cooperation with
the other two Federal banking agen
FEDERAL DEPOSIT INSURANCE CORPORATION
26
cies, the Corporation participated in
1 979 in a two-week basic course in
international banking. Additional in
ternational banking courses are ex
pected to be conducted in 1980
under the auspices of the FFIEC. The
Corporation also filled a staff posi
tion in its Washington Office having
specific responsibility for focusing
on international activities of domes
tic banks and domestic operations
of foreign banks.
collected quarterly, while the Report
of Income, which was previously col
lected at the end of the year, now is
collected on a semi-annual basis.
These revisions to the reports, which
had not been changed for a number
of years, were designed in part to
provide additional information to
achieve an effective integrated mon
itoring system for mutual savings
banks. Work on the system has pro
gressed and it is expected to be
operational early in 1980.
REPORTS AND SURVEYS
During 1979, the FDIC staff was
involved in the development of bank
reports, largely required by statute,
and as participants in the activities
of the FFIEC. Among these were
reports for U.S. branches and agen
cies of foreign financial institutions
initiated pursuant to the Interna
tional Banking Act of 1978. As re
quired by FIRIRCA, reports were also
developed for the disclosure of loans
extended to certain bank employees
and stockholders by the employing
bank or its correspondent banks.
The staff provided analytical sup
port to promote interagency uniform
ity in bank report instructional mate
rials, in the publication of statistics,
and in the further development of
automated bank surveillance sys
tems and reports related to such
systems.
Surveys were initiated for moni
toring money market certificates
and automatic transfers from sav
ings accounts. FDIC staff also partic
ipated in the establishment of a new
weekly survey of selected nonmem
ber banks for data to be used by the
Federal Reserve in estimating the
non member bank component of the
nation's money supply.
A new Report of Condition and a
new Report of Income were introduced
in 1979formutualsavingsbanks.The
Report of Condition continues to be
BANK SECURITY
Part 326 of the FDIC's Rules and
Regulations implements the Bank
Protection Act of 1968. It prescribes
minimum standards for the installa
tion, maintenance, and operation of
security devices; procedures to dis
courage external bank crimes; and
guidelines and procedures to assist
in the apprehension of persons com
mitting those crimes. Similar regula
tions were adopted by the other
Federal bank regulatory agencies.
Part 326 requires banks to file
Reports on Security Devices and
Reports of Crime with the appro
priate FDIC Regional Offices. The
Corporation received 1,451 Re
ports of Crime in 1979, up from
1,186 in 1978. During 1979, FDIC
and the other Federal bank regula
tors began discussions on a joint
proposal to amend the implement
ing regulations of the Bank Protec
tion Act. Substantive changes being
considered include reducing or
simplifying reporting requirements
for banks.
The upsurge of white collar crime
experienced by the banking industry
in recent years began to erode the
availability of fidelity insurance for
many banks. To combat this trend,
the FDIC participated in the devel
opment of the Controlled Group
Bonding Plan sponsored by the
SECURITIES ACTIVITIES
American Bankers Association. The
plan, which gained acceptance in
many States in 1 978, is designed to
provide banks with adequate fidelity
and surety coverage while also pro
viding the insurer a reasonable re
turn on his risk investment. Banks
participating in the plan must agree
to engage an approved examining
firm to conduct an in-depth exami
nation of their internal controls. Con
versely, participating insurers agree
to give special consideration to un
derwriting fidelity coverage for par
ticipating banks. The objective of the
plan is to reduce the risk of bank
losses arising from the dishonest
acts of bank directors, officers and
employees.
SECURITIES ACTIVITIES
Registration and Reporting. The
Corporation administers and enfor
ces the registration and reporting
provisions of the Securities Ex
change Act of 1934 for insured
nonmember banks. These provisions
are applicable to banks with more
than$1 million in assets and 500 or
more holders of any class of equity
security. Such banks are required to
file an initial registration statement
and periodic reports, as well as a
special report covering any material
event which occurred in the preced
ing month.
To comply with the Corporation's
regulation, any matter presented for
a vote of security holders must be
effectuated through a proxy state
ment, orthrough an information state
ment if proxies are not solicited.
Where directors are to be elected,
the proxy or information statement
must be accompanied or preceded
by an annual report disclosing the
financial condition of the bank. Offi
cers and directors of a bank whose
securities are registered and any
person or related group of persons
27
holding more than five percent of
such securities must report their
holdings and any changes in their
holdings to the Corporation. All re
quired statements and reports filed
with the Corporation under the Secu
rities Exchange Act are public doc
uments and are available for inspec
tion at the Corporation's head
quarters and elsewhere.
At the end of 1979, there were
396 banks registered with the FDIC,
compared to 377 in 1978.
Municipal Securities Dealer Activ
ities. As of December 31, 1 979, 54
State nonmember banks or their de
partments were registered as munic
ipal securities dealers. All municipal
securities dealers are subject to rules
promulgated by the Municipal Secu
rities Rulemaking Board (MSRB).
During 1979 the FDIC's reporting
schedules were revised to comply
with newly adopted and amended
MSRB Rules and comprehensive
examination guidelines were devel
oped.
Lost and Stolen Securities Pro
gram. The Corporation shares en
forcement responsibility with the Secu
rities and Exchange Commission for
Rule 1 7f-1 which established a na
tional computer-assisted reporting
and inquiry system for lost, stolen,
counterfeit and forged securities.
After a pilot period of about a year
and a half, the program and Rule
1 7f-1 became permanent on July 1,
1979. All insured banks and bro
kers, dealers and other securities
firms are subject to the rule and are
required to register with the Secu
rities Information Center, Inc., (SIC),
Wellesley, Massachusetts. The lost
and stolen securities program cre
ates a central data base at the SIC of
reported thefts and losses. Banks
are required to validate certain secu
rities coming into their possession
by checking with the SIC; all mis
sing, lost, stolen or counterfeit secu
rities must be reported to the SIC.
28
FEDERAL DEPOSIT INSURANCE CORPORATION
The objective of the program is to
identify and thereby reduce traffic in
such securities. Examination proce
dures were revised in 1979 to ac
commodate these added responsi
bilities and to assure compliance by
banks supervised by the FDIC.
Offering Circular Policy State
ment. The issuance of securities by
banks is subject to the antifraud
provisions of Federal securities
laws, which require full and ade
quate disclosure of material facts.
On July 2. 1979, the Corporation
issued a statement of policy out
lining the minimum standards for
the disclosure of material facts in
connection with the offer and sale of
banksecurities by insured State non
member banks. The statement of
policy is designed to acquaint banks
with their legal exposure when offer
ing securities for sale and to pro
mote greater awareness of their re
sponsibilities under the antifraud
provisions of Federal securities law.
In general, a filing requirementfor
offering circulars is not imposed by
the Statement of Policy. However,
submission of circulars for review by
the FDIC staff is encouraged. The
Corporation continues to require the
use of offering circulars by banks
that are subject to orders under
Section 8 of the Federal Deposit
Insurance Act. The Corporation also
will review whether public investors
have been provided sufficient dis
closure of material facts by any State
nonmember bank which is in organi
zation. The staff of the Corporation
is available for consultation and as
sistance.
LEGAL ACTIVITIES
The Legal Division has wide rang
ing responsibilities within the Cor
poration, including regulations, en
forcement actions and liquidation
litigation.
The Legal Division initiated a
major effort in the fall of 1979 to
reduce costs of closed-bank law
suits, including the fees of outside
attorneys. The FDIC is at present
involved in more than 5,000 law
suits connected with liquidation and
other closed-bank matters.
A computer program is being de
veloped to help FDIC staff attorneys
better supervise and evaluate the
performance of outside attorneys.
The program, scheduled for intro
duction in the spring of 1980, is
intended to allow FDIC staff attor
neys to increase their participation
in liquidation matters and perform
certain work for which FDIC has
been paying private firms.
In addition, the General Counsel
has established further guidelines
for selection of outside counsel.
These guidelines, aimed at achiev
ing broader representation, include:
(a) the same law firm usually will not
be hired as lead local counsel on
more than one liquidation simultane
ously pending; and (b) when feasi
ble, at least two firms will be used in
each liquidation.
Fees paid by the FDIC to outside
counsel are dependent on the num
ber of bank failures, the size of those
banks, and the nature and complex
ity of the litigation they generate.
New steps for cost-effective repre
sentation do not mean a sacrifice in
quality. The Corporation continues
to be committed to hiring top flight
lawyers to handle liquidation mat
ters. It takes good lawyers to get
good results, and that is to the ben
efit of the Corporation, depositors,
creditors and shareholders of the
banks whose assets are being liqui
dated.
Besides these improvements in
procedures, the Legal Division has
advantageously diminished its case
load. The major part of the Franklin
National Bank securities litigation,
which is a significant portion of the
RESEARCH ACTIVITIES
largest and most complex liquida
tion in the FDIC's history, was settled
in December 1979.
In addition to monitoring the work
of outside attorneys, the Legal Div
ision was faced with a demanding inhouse workload in 1979. Staff at
torneys drafted 13 final rules to
implement FIRIRCA.
The Legal Division is continuing
an exhaustive review of existing regula
tions in support of an effort to
reduce the regulatory burden and
paperwork. The Chairman has desig
nated a full time task force for this
effort. In 1979 the Corporation elim
inated six regulations, issued a pol
icy statement in lieu of one pro
posed regulation and substantially
reduced two other regulations. This
is an effort that will continue in
1980.
Evaluating comment on proposed
regulations by the industry and the
public is a major task. In 1979 the
Corporation received more than
1,500 such letters.
Staff attorneys also drafted the
final regulation to implement the
International Banking Act. The under
taking required innovation and imag
ination because the law gives the
FDIC an assignment in a new area.
Finally, the Legal Division served
as the FDIC's formal enforcement
arm in handling the various cease
and desist, removal and insurance
termination cases described under
"Enforcement Proceedings."
RESEARCH ACTIVITIES
The FDIC experienced continuing
strong demand in 1979 for support
and assistance by its research organ
ization.
The Division of Research continu
ously monitors developments in the
financial industry and the economy
and assesses the implications of
existing and proposed regulations,
29
proposed legislation and virtually all
policy issues that will require con
sideration by the FDIC Board.
Some of the economic and finan
cial subjects studied this year were
deposit insurance reform, new or
m o dified types of d e p o sit a c
counts, the condition of commercial
and mutual savings banks, oper
ations of foreign banks in the U.S.,
rising inflation and interest rates,
State usury ceilings, prospects for
the h ou sin g in d u s try , Federal
Reserve membership, and the im
pact of payment of interest on tran
saction accounts (NOW accounts,
automatic transfer accounts, tele
phone transfer services, etc.).
In addition to conducting eco
nomic and financial studies of di
rect policy interest to the Board of
Directors, the Division of Research
assisted in activities of other parts of
the Corporation, such as: an evalua
tion of bank capital adequacy; the
current environment and prospec
tive developments in electronicfund
transfer systems; the effectiveness
of cease-and-desist orders in cor
recting unsafe and unsound bank
ing practices; an assessment of cur
rent and prospective activity by com
mercial banks in financial futures
markets; and studies of fin a n
cial considerations in the disposi
tion of acquired assets and liquida
tion accounting procedures. Re
search personnel also assisted the
Legal Division as consultants or ex
pert witnesses in legal suits in
volving the Corporation.
Major interagency activities in
volved analyses for three task forces
created by Congress or the Presi
dent. These task force studies ad
dressed deposit interest rate ceil
ings and housing finance (Regula
tion Q), branching by financial
institutions (McFadden Act) and the
treatment of U.S. banks by other
nations (National Treatment). The
staff also participated in a Depart
30
FEDERAL DEPOSIT INSURANCE CORPORATION
ment of Commerce task force on the
role of government in the electronic
fund transfer field.
A major study that required a co
ordinated effort on the part of a
number of Corporation divisions
and offices was an analysis of capi
tal adequacy in the banking indus
try. An internal task force was
formed in June 1978 to study the
issue of capital adequacy. The task
force addressed two broad ques
tions:
(1) Is there a capital problem in
the industry, and, if so, how se
vere is it?
(2) What are the alternative solu
tions for dealing with the bank
capital situation?
These questions obviously en
compass many of the policy consid
erations that bank supervisors deal
with every day. Phase I of the study,
w h ich was com plete d in Sep
tember 1979, concluded that, des
pite the extended declining trend in
capital ratios for the industry, the
smaller capital margins have not
imperiled the safety and soundness
of banks. The report set forth the
need for constant review of regula
tory policies in light of the impact of
changing risks on the capital posi
tion of banks. This assessment of the
bank capital situation included,
along with the important safety and
soundness aspects, the im plica
tions for the structural and competi
tive prospects for banks in an in
creasingly complex financial envi
ronment.
Phase II of the study is focusing on
alternative solutionsto the bankcapital s itu a tio n . It is speci f i cal l y
addressing capital standards, the
role of subordinated debentures, and
holding company capitalization of
subsidiary banks.
COMPUTER MANAGEMENT
SYSTEMS
Computer services generally con
tinued to play an expanding role in
FDIC operations in 1979 under the
supervision of the Division of Man
agement systems and Financial Sta
tistics (DMSFS). National banks
were added to the FDIC's system of
processing Reports of Condition
and Income of 9,200 State nonmem
ber banks, involving an additional
4,600 reports, including the more
complex reports of larger banks.
National bank reports were trans
ferred from the OCC to the FDIC to
achieve the savings, efficiency and
consistency of a single system. The
FDIC absorbed the cost. Hereafter,
the FDIC will handle all requests for
national as well as State nonmem
ber bank data. The Federal Reserve
collects corresponding data for
State member banks and provides
this information for incorporation
into the FDIC data base.
The FDIC's Integrated Monitoring
System (IMS) performs certain basic
tests from data submitted by banks
in their Reports of Condition and
Income. These tests measure a
bank's capital adequacy, asset qual
ity, liquidity, asset and liability mix
and growth, and profitability. If a
bank fails one or more of the tests,
further analysis of additional data
available from the system is per
formed. Where analysis indicates an
adverse condition or a potential
problem, appropriate supervisory
action is initiated. The IMS enables
the Corporation to identify with
greater accuracy banks, or particu
lar aspects of a bank's operation,
that merit closer supervisory atten
tion, thereby allowing swifter and
more effective response.
In 1979 the Comparative Perfor
mance Report (CPR) served to sup
plement the IMS reports distributed
to FDIC examiners and financial ana
lysts. This report was a revision of
the C o m pa ra tive P erform ance
Tablesthe FDIC regularly has sentto
all insured banks since 1967, and
shows both individual bank data and
SPECIAL SERVICES
peer group data based on informa
tion from Reports of Income and
Condition. A similar report for yearend 1979 is to be sent to insured
non member banks and to examiners
and financial analysts for their use
with IMS information.
The Corporation expects to achieve
further savings and efficiency by
sharing its processed bank data
base with Federal and State authori
ties through a teleprocessing sys
tem. Seven States and the OCC are
already connected, and the Federal
Reserve Board is expected to have
its link by March 1980. The New
York Banking Department is propos
ing to dispense with its separate
Report of Condition and Income in
favorof theone its banks file with the
FDIC. Michigan authorities are seek
ing approval of a simplified exami
nation report made possible by the
tie-in to the FDIC computerized data
base.
The system aids supervision by
giving FDIC Regional Offices imme
diate access to the bank data base
and to the bank monitoring system.
This permits improved scheduling of
bank examinations and more effec
tive bank examinations because ex
aminers can focus their attention on
particular areas of concern. The sys
tem adapts quickly to special moni
toring requirements and provides a
range of financial analysis facilities
that assist in special studies and
further improvement of the bank
monitoring system.
DMSFS will seek ways to improve
internal Corporation management
systems in 1980. The division will
provide computer support next year
for refinement of the new liquidation
accounting system, implementation
of the new system for tracking out
side legal fees involved in closed
banks, and development of a new
recruiting system for examiners. A
new payroll accounting system is
also in the planning stage for 1980.
31
Accounting Standards and Instruc
tions. The quality of financial report
ing by the banking industry is of
utmost concern to the Corporation,
since it is integral to decisions made
in furtherance of the FDIC's various
statutory responsibilities. The Cor
poration recognizes that financial
statements of banks should reflect
business and economic reality. Ac
cordingly, representatives from the
Corporation cooperate with other
Federal agencies and professional
organizations in continuous efforts
to evaluate financial reporting re
quirements and to improve the qual
ity of data provided to the public and
the Corporation by insured State
nonmember banks.
SPECIAL SERVICES
The Office of Legislative Affairs
(OLA) includes the Office of Informa
tion, which is the Corporation's main
point of contact with the public and
the news media. In 1979 the Office
of Information responded to an aver
age 100 telephone calls and 150
written requests each day. The Of
fice is responsible for the prepara
tion and distribution of letters to
banks and FDIC staff describing pro
posed or adopted regulations or pol
icies, the Corporation's annual re
port, news releases and other litera
ture describing FDIC operations and
procedures.
The information Office also works
jointly with the Office of the Execu
tive Secretary in administering the
Corporation's reporting service on
the FDI Act and regulations and
related statutes.
The Office of Legislative Affairs is
also responsible for receiving and
obtaining responses to Congression
al correspondence and telephone
inquiries and for coordinating other
communications with Congress. In
addition, the Legislative Counsel in
OLA responded to 33 requests in
32
FEDERAL DEPOSIT INSURANCE CORPORATION
1979 from Congress and 19 from
the Office of Management and Bud
get for detailed and in some cases
extensive comments on proposed
legislation and to numerous other
requests for information.
The FDIC Office of Corporate Aud
its performed 53 audits of various
aspects of Corporation activities in
1979, one more than in 1978. Aud
its are designed to determ ine
whether financial, fiscal and ac
counting operations are properly
conducted and fairly presented,
whether laws and regulations are
complied with, and whether resour
ces are managed efficiently and de
sired objectives met.
The Office of the Executive Secre
tary performs corporate secretarial
functions, such as issuing notices of
all meetings of the Board of Direc
tors and the FDIC's standing com
mittees, recording all votes and
minutes of these meetings, main
taining an index of all official actions
of the Corporation, publishing in the
Federal Register notices of pro
posed or final rulemaking, and re
ceiving the thousands of public com
ments on proposed regulatory ac
tions.
In 1979 the Executive Secretary's
staff performed secretarial func
tions for 116 Board meetings. The
Office also provided the necessary
staff coordination for 17 proposed
regulatory actions on which public
comment was received.
The Office of the Executive Secre
tary administers Corporation com
pliance with the Freedom of Infor
mation Act, the Government in the
Sunshine Act and the Privacy Act of
1974. It also performs editorial func
tions in connection with the FDIC's
loose-leaf reporting service on laws,
regulations and related materials.
In addition, the Executive Secre
tary serves as the Corporation's Eth
ics Counselor under the Ethics in
Government Act of 1978 and FDIC's
own regulations. This official also
serves as the Corporation's Records
Management Officer.
The Office of the Controller is
responsible for the preparation of
both the administrative and the liq
uidation budgetsandforall account
ing functions. The Controller's office
also performs a number of impor
tant additional functions, including
headquarters building services, print
ing and mailing, telecommunications,
purchasing, library services and
administration of assessments. A
major function of the Controller's
Office is management of the FDIC
insurance fund which totaled $9.8
billion at the end of 1979, up $1
billion from 1978. All FDIC uncom
mitted cash is invested in U.S. govern
ment securities.
PERSONNEL
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 direc
tors are appointed by the President
with the advice and consent of the
Senate for six-year terms, and one is
elected Chairman by the Board. The
Comptroller is also appointed by the
President, but for a five-year term.
Mr. Irvine H. Sprague succeeded
Mr. George A. LeMaistre as Chair
man of the Board of Directors on
February 7, 1979. Mr. John G. Heimann, Comptroller of the Currency,
had served as the Acting Chairman
since Mr. LeMaistre's retirement on
August 1 5, 1978. Chairman Sprague
previously served as a member of
the Corporation's Board of Directors
from September 27,1 968, until Feb
ruary 15, 1973.
Director William M. Isaac contin
ued to serve his term as a member of
the Board of Directors. Comptroller
Heimann continued to serve as an ex
officio member of the Board of
33
PERSONNEL
Directors.
Employees. The employment of
the Corporation decreased by 179
in 1979, to a year end total of 3,598.
Turnover in FDIC employment for
the year was 13.4 percent (includ
ing 9.4 percentfor bankexaminers),
compared to an estimated government-wide turnover rate of nearly
25 percent.
Average grade and salary of the
FDIC workforce in 1979 were GG9.4 and $ 19,958.
The Corporation's Office of Per
sonnel Management oversees em
ployee benefits, recruiting and hir
ing, and position management and
classification. The Office of Employ
ee Relations administers the Corpo
ration's equal employment opportu
nity and labor relations programs.
The Corporation continued to im
prove its record in hiring women and
minorities this year. In the GeneralGraded Workforce, women employ
ees increased to 30.5 percent in
1979. up slightly from 30.1 percent
in 1978. M inorities represented
NUM BER OF OFFICIALS A N D EMPLOYEES
OF FEDERAL DEPOSIT INSUR ANCE CO RPO RATION
DECEMBER 31, 19 7 8 A N D 19 79
U nit
Total
1979
1978
W a sh in g to n
o ffic e
1979
1978
Regional and
fie ld o ffice
1979
1978
Total .........................................
3,598
3,773
956
1,201
2,642
2,572
D ir e c to r s ...............................
‘ Executive O f f ic e s ................
Legal D iv is io n ......................
D ivision of Bank
2
15
100
2
32
105
2
15
83
2
32
86
0
0
17
0
0
19
S u p e r v i s i o n .......................
2,521
432
2 ,6 4 8
459
159
186
376
194
2 ,3 6 2
246
2 ,2 7 2
265
187
25
181
191
31
186
187
25
164
191
31
17 0
0
0
17
0
0
16
33
34
33
34
0
0
19
13
19
13
0
0
8
9
8
9
0
0
44
46
44
46
0
0
16
5
16
5
0
0
15
12
15
12
0
0
D ivision of L iq u id a tio n ___
D ivision of M an a g e m en t
System s and F inancial
S ta tis tic s .............................
Research D iv is io n ...............
O ffice of the C o n tro lle r......
O ffice of C o rpo ra te
A u d it s ...... ...........................
O ffice of C onsum er A ffa irs
and Civil R ig h ts .................
O ffice of Em ployee
R e la tio n s.............................
O ffice of Personnel
M a n a g e m e n t......................
O ffice of Legislative
A ffa ir s ..................................
‘ ‘ O ffice of Executive
S e c re ta ry ............................
‘ O ffice of Executive S ecretary in clu d e d in Executive O ffices in 1 9 7 8 .
“ O ffice of In fo rm a tio n in clu d e d in O ffice of Legislative A ffa irs in 1 9 7 9 .
34
FEDERAL DEPOSIT INSURANCE CORPORATION
14.8 percent of the General-Graded
Workforce, compared to 14.3 per
cent the previous year. Women in
bank examiner jobs (including stu
dent assistants) assigned to the 14
regions increased from 13.4 per
cent to 13.8 percent and minorities
in such positions increased from 8.2
percent to 8.5 percent.
A Chairman's Task Force is seek
ing ways to improve opportunities
for women and minorities and con
sidering other reforms such as part
time employment opportunities.
Personnel Adm inistration. The
FDIC in 1979 adopted several impor
tant new personnel policies and pro
grams. These included policies gov
erning leave usage, probationary
periods for supervisors and manag
ers, and inhouse and outside train
ing. Position management and classi
fication projects included: implemen
tation of a new pay system for all field
liquidation support personnel, com
pletion of a two-year study of the
management structures of the 14
Regional Offices, a study of the levels
of duties and responsibilities of field
office supervisor positions, and insti
tution of an annual review of all Cor
poration position descriptions for ac
curacy and completeness.
This was the first full year of opera
tion under a new merit promotion
pr ogr am and a new in ce n tive
awards program, both of which were
adopted in 1978. The Corporation
in 1979 processed 318 selections
under the new internal placement
program and granted 40 monetary
incentive awards. At the Corpora
tion's Awards Ceremony on Decem
ber 19, 1979, 104 employees were
recognized for 15, 25, 35 and 40 or
more years of service. Also, three
employees received special honor
ary awards:
Chairman's Award Betty L. Freese
Exceptional service by
a non-examiner employee
Edward J. Roddy Lewis C. Beasley
Award
Exceptional service by
an examiner
Nancy K. Rector
Terryl L. Paiste
Award
Exceptional service of
a humanitarian nature
Examiner Training. The Corpora
tion conducts a comprehensive train
ing program designed to maintain a
highly-qualified, well-informed ex
aminer staff. During 1 979 more
than 2,200 students received train
ing in such areas as bank examina
tion fundamentals, accounting and
auditing techniques, credit apprai
sal, management and supervision,
financial analysis, consumer and
civil rights compliance, examination
of computerized banks and trust de
partment examinations. Programs
are conducted in the Division of
Bank Supervision's modern training
center located in Rosslyn, Virginia.
In addition to FDIC examiners,
about 270 studentsfrom State Bank
ing Departments, foreign govern
ments and other Federal agencies
participated in FDIC-sponsored train
ing progams during the year.
Six programs involving 208 stu
dents were held in 1979 under the
aegis of the Federal Financial Insti
tution Examination Council. It is antic
ipated that such training will be
expanded into areas as consumer
protection, white collar crime and
international banking during 1980.
FINANCES OF THE
CORPORATION
Deposit Insurance. Federal de
posit insurance covers the aggre
gate deposits of individuals and busi
nesses in each insured bank up to
$40,000 and Individual Retirement
Accounts and Keogh accounts up to
$ 100,000. Time and savings depos
FINANCES OF THE CORPORATION
its held by government units (except
deposits in out-of-State banks) are
insured up to $100,000 for each
depositor. On December 31, 1979,
more than 97 percent of all com
mercial banks in the United States
and about 70 percent of all mutual
savings banks were covered by Fed
eral deposit insurance.
Deposit Insurance Fund. The Cor
poration's deposit insurance fund
provides the basic resource for the
protection of depositors. It is the
excess of the Corporation's assets
over its liabilities and represents the
net income accumulated since the
beginning of deposit insurance in
1933. Should additional funds ever
become needed, the Corporation,
under authority granted but never
exercised, may borrow up to $3 bil
lion from the U.S. Treasury.
The d e p o s it i nsur ance f und
amounted to $9.8 billion at the end
of 1979, an increase of more than
$1 billion since the end of 1978.
This increase was $194 m illion
greater than the increase for 1978
and twice the increase in 1974. Net
assessments incurred by insured
banks in 1979 were $356 million, or
3 percent less than they incurred in
1978. The year-to-year improve
ment in revenue reflects the Corpo
ration's ability to take advantage of
the particularlyfavorablechanges in
the interest rates earned on its expand
ing portfolio of government securi
ties, and a more favorable than antic
ipated recovery experience on as
sets acquired from failed banks.
During the past several years, the
deposit insurance fund has re
mained at about 1.2 percent of total
insured deposits. While there is no
actuarial consensus as to what the
appropriate amount of the fund should
be, the basic strength of the fund has
been demonstrated by thefactthat it
has been more than sufficient to
meet all requirements made upon it,
even during the larger-than-usual
35
bank failures of 1973-78. During
this period the assets of those bank
failures amounted to $7.7 billion;
whereas, by the end of 1979 the
Corporation had reduced the book
value figure for all banks in liquida
tion to about $1.9 billion. In addi
tion, during recentyears, the Corpo
ration has set aside $227 million to
cover possible insurance losses on
liquidations currently in process,
and increased its administrative bud
get to meet rising costs and broad
ened responsibilities. The deposit
insurance fund increased 60 per
cent, from $6.1 billion at the end of
1974 to $9.8 billion at the end of
1979, the largest percentage in
crease for anyfive-year period since
World War II.
Income and Expenses. The Corpo
ration's gross revenues amounted to
$1.6 billion in 1979. Of the total
revenue, $882 million was from as
sessments payable by insured banks
for deposit insurance, $704 million
from interest on investments in U.S.
Government securities, and $30 mil
lion from notes receivable and other
sources.
Since 1935, the basic assessment
rate paid by insured banks has been
1/1 2 of one percent of total asses
sable deposits. Legislation enacted
in 1950 in effect reduced the statu
tory rate of assessment by providing
a 60 percent credit to be applied
against gross assessments levied
each year. This credit to insured
banks was increased to 66 2 /3 per
cent on December 31, 1961. This
percentage is applied to the gross
assessment due from banks in the
calendar year after subtracting the
Corporation's administrative and
operating expenses, nonrecoverable
insurance expenses, and additions
to reserves for losses in the calendar
year. Thus, although banks were ini
tially assessed $882 million 1979,
they received assessment credits of
$526 million, which resulted in net
FEDERAL DEPOSIT INSURANCE CORPORATION
36
APPLICATION OF REVENUES
FEDERAL DEPOSIT INSURANCE CORPORATION
1969 — 1979
Mi l l i ons of doll ars
1,600—r
1.400m
Expenses and Provision f o r Losses
1,200
I
I Assessment Credits
]
A d di t i on s to I nsur ance Fund
1,000
TOTAL REVENUES
800
600-
400-
200 -
1969 '70
'71
'72
' 73
assessments of only $356 million.
This sum is equivalent to 1 /3 0 of
one percent of assessable deposits
and compares with 1 / 2 6 of one
percent in 1978.
The Corporation's administrative
and operating expenses were $ 107
million in 1979, an increase of less
than four percent from 1978 des
pite rising costs and the Corpora
tion's expanding responsibilities
with respect to bank supervision and
consumer affairs. For the first time
'74
' 75
'76
' 77
'78
' 79
since 1972, the provision for insu
rance losses and the nonrecoverable insurance expenses were re
duced during 1979. The reduction
of $55 million reflected the rela
tively small size of each of the banks
that failed during theyearand better
than expected collections on liqui
dations involving earlier bank fail
ures.
GAO Audit. In addition to the
FDIC's continuing internal audit activ
ity, the General Accounting Office
FINANCES OF THE CORPORATION
continued to conduct an annual
audit of the financial operations of
the Corporation. In addition, under
the Federal Banking Agency Audit
Act (Public Law 95-320), enacted in
1978, the General Accounting Of
fice also continued to conduct peri
odic performance audits of the Cor
poration. These performance audits
primarily concentrated on: bank su
pervision, with particular emphasis
on the examination process and the
supervision of bank holding com
panies; foreign banking activity in
the U.S.; identification and disclo
sure of problems in the banking sys
tem; consumer related compliance
examinations; and regulatory bur
den and structure. The results of
both types of audit are reported to
Congress.
Assets and Liabilities. The Corporation'sfinancial position continued
37
to improve steadily during 1979,
resulting in a $ 1.0 billion increase to
the deposit insurance fund. Total
assets on December 31, 1979
amounted to $10.4 billion. Cash
and U.S. Government securities, val
ued at amortized cost plus accrued
interest, amounted to $9.6 billion.
The remaining assets represented
primarily equity in assets acquired
from failed banks, after allowance
for reserves for losses. These assets
include loans and notes purchased
to facilitate deposit assumptions
and mergers, subrogated claims
against closed banks, and assist
ance to operating banks.
At the end of 1979, liabilities of
the Corporation were $567 million.
Of this total, $539 million repres
ented assessment credits due in
sured banks which will be made
available to them in 1980.
FEDERAL DEPOSIT INSURANCE CORPORATION
38
COMPARATIVE STATEMENT
OF FINANCIAL CONDITION (in thousands)
ASSETS:
December 31,
19 7 9
Cash
$
1.523
December 31,
1 9 78
$
4,343
U.S. Government obligations: (Note 1)
Securities at amortized cost
Accrued interest
Total
9,449,595
186,511
9,636,106
8,210,441
162,720
8,373,161
31,676
802
746,583
18,391
133,627
257,384
673,695
33,980
861
940,309
19,104
135,568
273,949
855,873
22,143
37,000
20,000
39,143
23,936
37,028
20,700
40,264
Miscellaneous assets (Note 5)
2,765
2,759
Land and office building, less depreciation
on building
6,148
6,283
$10,359,380
$9,282,683
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 (Note 3)
Less allowance for losses (Note 2)
Total
Equity in assets acquired from insured banks
assisted under Section 13(c) of the FDI Act:
Assets purchased outright
Notes purchased plus accrued interest (Note 4)
Less allowance for losses (Note 2)
Total
Total Assets
The accompanying summary of significant policies and notes to financial statements are an integral part of
these statements.
39
FINANCES OF THE CORPORATION
FEDERAL DEPOSIT INSURANCE CORPORATION
LIABILITIES AND THE
DEPOSIT INSURANCE FUND:
December 31,
19 79
Accounts payable and accrued liabilities
$
5,309
December 31,
1 9 78
$
4,963
Earnest money, escrow funds, and
collections held for others
1,920
4,893
Accrued annual leave of employees
5,393
4,716
Due insured banks:
Net assessment income credits:
Available July 1, 1979
Available July 1, 1980 (Note 6)
0
524,672
443,101
0
Available excess credits (Note 7)
13,981
11,990
538,653
455,091
14,571
802
16,166
861
15,373
17,027
Total Liabilities
566,648
486,690
Deposit Insurance Fund
9,792,732
8,795,993
$10,359,380
$9,282,683
Total
Liabilities incurred in failures of insured banks:
Notes payable plus accrued interest (Note 8)
Depositors' claims unpaid
Total
Total Liabilities and the Deposit Insurance Fund
The accompanying summary of significant policies and notes to financial statements are an integral part of
these statements.
FEDERAL DEPOSIT INSURANCE CORPORATION
40
COMPARATIVE STATEMENT OF INCOME
AND THE DEPOSIT INSURANCE FUND (in thousands)
For the twelve m onths ended
December 31,
1 9 79
December 31,
19 7 8
Revenues:
Assessments earned
Interest on U.S. Government obligations
Amortization of premiums and discounts (net)
$
881,970
699,900
$
810,532
567,042
4,433
(1,264)
Interest earned on notes receivable
12,370
11,974
Other income
17,280
7,313
1,615,953
1,395,597
Total
Assessment Credits, Expenses, and Losses:
Provision for assessment credits
525,538
143,534
Administrative and operating expenses (net) (Note 10)
106,791
103,289
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
4,137
5,409
(17,252)
0
36,532
3,628
619,214
592,392
996,739
803,205
8,795,993
7,992,788
$9,792,732
$8,795,993
The accompanying summary of significant policies and notes to financial statements are an integral part of
these statements.
41
FINANCES OF THE CORPORATION
FEDERAL DEPOSIT INSURANCE CORPORATION
COMPARATIVE STATEMENT OF CHANGES
IN FINANCIAL POSITION (in thousands)
For the twelve m onths ended
December 31,
1 9 79
December 31,
19 7 8
Financial Resources Were Provided From:
Operations:
Net deposit insurance assessments
Interest on U.S. Government obligations
Interest on notes receivable
Other income
Total
$ 356,432
699,900
12,370
17.280
1,085,982
$ 366,998
567,042
11,974
7,313
953,327
106,656
4,137
Less:
Administrative and operating expenses,
net of depreciation
Nonrecoverable insurance expenses
Total
110,793
103,154
5.409
108,563
Resources provided from operations
975,189
844,764
879,975
794,469
341,542
83,562
2,820
$2,283,088
799,248
26,355
4.320
$2,469,156
$2,246,816
(132,120)
$1,686,705
194,042
Maturity and sale of U.S. Government obligations,
less, $3,628 net loss in 1978
Collections received on assets acquired in receiver
ship and deposit assumption transactions
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 Certificates
(Total purchases - $35,828,626 in 1979 and
$37,679,123 in 1978
Total maturities - $35,960,746 in 1979 and
$37,485,081 in 1978)
Acquisition of Assets acquired in receivership and
deposit assumption transactions
Increase in accrued interest on securities
Net change in other assets and liabilities
Total financial resources applied
141,078
23,791
3.523
554,280
24,763
9,366
$2,283,088
$2,469,156
The accompanying summary of significant policies and notes to financial statements are an integral part of
these statements.
42
FEDERAL DEPOSIT INSURANCE CORPORATION
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General. These statements do not include accountability for assets and liabilities of closed insured
banks for which the Corporation acts as receiver or liquidating agent. Periodic and final accountability
reports of its activities as receiver or liquidating agent are furnished by the Corporation to courts, superviso
ry authorities, and others as required.
U.S. Government Obligations. Securities are shown at amortized cost which is the purchase price of
the securities less the amortized premium or plus the accreted discount. Such amortization and accretion
are computed on a daily straight-line basis from the date of acquisition 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. Assess
ments 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, sixty-six and two-thirds percent of the Corpora
tion's net assessment income from the prior calendar year be made available to insured banks as a prorated
credit against the current assessment due.
Allowance for Losses. It is the policy of the Corporation to establish an estimated allowance for loss at
the time a bank fails. These allowances are reviewed every six months and adjusted as required, based on
the financial developments which accrue during each six-month period. The Corporation does not state its
estimated contingent 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 bor
rowing authority are available, however, for such contingencies.
Depreciation. The headquarters building 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.
Reclassifications. Certain reclassifications have been made in the 1978 financial statements to con
form to the presentation used in 1979.
NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 1979 and 1978
1. U.S. Government Obligations. All cash received by the Corporation which is not used to defray operat
ing expenses or for outlays related to assistance to banks and liquidation activities, is invested in U.S. Treas
ury securities. As of December 31,1979 the Corporation's investment portfolio consisted of the following:
(In thousands)
Maturity
Description
Par Value
Book Value
Market Value
Cost
1 -Day
Special Treasury
Certificates
Less Than
1 Year
U.S.T. Notes and
Bonds
1,081,002
1,079,672
1,058,910
1,074,447
2-5 Years
U.S.T. Notes and
Bonds
3,7 9 9 ,9 2 0
3,799,232
3 ,5 24,120
3 ,799,448
6 -1 0 Years
U.S.T. Notes and
Bonds
4 ,3 5 6 ,6 2 6
4 ,3 5 5 ,7 7 0
3,978,462
4 ,359,313
Over 10 Years
U.S.T. Notes and
Bonds
$
141,922
$
141,922
$
141,922
$
141,922
75,546
72,999
5 9,634
71,806
$9,455,016
$9,449,595
$8 ,763,048
$9 ,446,936
FINANCES OF THE CORPORATION
43
FEDERAL DEPOSIT INSURANCE CORPORATION
2. Allowance for Losses. An analysis of the changes in the allowance for losses on the accounts described
below for years ended December 31, 1979 and 1978 follows:
1979
1978
Depositors' claims paid:
Balance, beginning of period
Add (Subtract):
Provision charged to expense
Net adjustment to prior years
W rite-off at termination
Balance, end of period
$ 14,475,000
4,100,000
(1,775,000)
0
16.800,000
$ 16,032,000
300,000
(1,214,000)
(643.000)
14.475.000
Loans and assets purchased:
Balance, beginning of period
Add (Subtract):
Provision charged to expense
Net adjustment to prior years
W rite-off at termination
Balance, end of period
240,763,500
210,709,400
9,255,000
(27,683,000)
(11,500)
222.324,000
7,505,000
23,735,100
(1,186.000)
240,763.500
39,410,000
33,400,000
0
(1,150,000)
0
38,260,000
0
6,010,000
0
39.410.000
Assets purchased outright:
Balance, beginning of period
Add (Subtract):
Provision charged to expense
Net adjustment to prior years
W rite-off at termination
Balance, end of period
$277,384,000
$294,648,500
3. 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, 1979 and 1978 are:
1979
1978
$ 1,000,000
Clearing Bank
$ 1,000,000
1.500.000
Marine National Exchange Bank of Milwaukee
1,500,000
16,000,000
16,000,000
First Tennessee National Corporation
8,000,000
8,000,000
First Tennessee National Bank
8.750.000
Bank Leumi Trust Company of New York
10,000,000
6,666,667
5,833,333
New Orleans Bancshares, Inc.
European-American Bancorp.
85,000,000
85,000,000
4,000,000
4,000,000
Drovers Bank of Chicago
Town-Country National Bank
250,000
250.000
$130,333,333
$132,416,667
4. Notes Purchased to Assist 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, 1979 and 1978 are:
1979
1978
$ 1,500,000
Unity Bank and Trust Company
$ 1,500,000
35.500,000
Bank of the Commonwealth
35.500.000
$37,000,000
$37,000,000
44
FEDERAL DEPOSIT INSURANCE CORPORATION
5. Miscellaneous Assets. The Corporation's miscellaneous assets at December 3 1 ,1 9 7 9 and 1978 are:
1979
1978
Receivables
$1,719,000
$1,748,000
Prepaid Items
1,046,000
1,011,000
$2,765,000
$2,759,000
6. Assessment Credits Due Banks July 1,1 980 . The computation of net assessment income credits that
will become available to banks on July 1, ‘1980 is as follows.
Computation:
Gross Assessment Income C.Y. 1979
Less: Administrative and Operating Expenses
Provision for Losses
Insurance Expense
Net Assessment Income
$106,791,000
(17,252,000)
4,125,000
Distribution:
1/3 to F.D.I.C.
2/3 to Insured Banks
$262,246,000
524,493,000
Assessment Credit Available to Banks - July 1 1980:
Assessment Credit C.Y. 1979
Prior Years Credits
Assessment Credit Available July 1, 1980
$524,493,000
1 79,000
$524,672,000
Effective Rate of Assessment for C.Y. 1979:
$880,403,000
93,664,000
$786,739,000
$786,739,000
1/30 of 1% of Total Assessable Deposits
7. Available Excess Credits. As of December 3 1 ,1 9 7 9 and 1978, assessments receivable from insured
banks reflected credit balances representing excesses of assessment income credits made available to
insured banks on July 1, 1979 and 1978 over assessments due for the last six months of each calendar
year. These excess credits continued to be available to insured banks at the beginning of the next assess
ment period in the following calendar years.
8. Notes Payable. These amounts represent the unpaid principal and accrued interest on the Corporation's
unsecured notes designated "5.775% Series A Notes due January 1, 1988” and "5.775% Series B Notes
due January 1, 1990'' as set forth in the consents, exchange agreement, and agreements of release and
satisfaction related to the sale of Franklin Buildings, Inc. to European-American Bank and Trust Company.
9. Southern Bancorporation Note Receivable. On December 9, 1976, Southern Bancorporation repaid in
full the $8 million note that the Corporation had purchased on September 24, 1974. Southern Bancorpora
tion 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 conditions set forth in the guarantee agreement. As of
December 31, 1979 and 1978, FUNB's outstanding principal due on the loan totaled $5.8 million and $6.6
million, respectively.
10. Lease Commitments. Rental expense of $4,556,000 (1979) and $3,916,000 (1978) for office
premises has been charged to expense. Minimum rentals for each of the next 5 years and for subsequent
years thereafter are as follows:
1980
1981
1982
1983
1984
1985 or after
$4,249,000
$3,595,000
$3,359,000
$1,988,000
$1,492,000
$3,456,000
Most office premise lease agreements provide for increase in basic rentals resulting from increased proper
ty taxes and maintenance expense.
FINANCES OF THE CORPORATION
COMPTROLLER GENERAL OF THE UNITED STATES
W A S H I N G T O N . D .C .
20548
The Honorable Irvine H. Sprague
Chairman, Board of Directors
Federal Deposit Insurance
Corporation
Dear Mr. Sprague:
Pursuant to section 17(c) of the Federal Deposit
Insurance Act (12 U.S.C. 1827), we have examined the State
ment of Financial Condition of the Federal Deposit Insurance
Corporation as of December 31, 1979, and the Related State
ments of Income and the Deposit Fund, Changes in Financial
Position, and Analysis of the Deposit Insurance Fund.
Our
examination was made in accordance with the Comptroller
General's standards for financial and compliance audits.
We
included such tests of the accounting records and such audi t
ing procedures as we considered necessary in the circum
stances.
To the extent possible, we supplemented our audit
procedures by using work of the Corporation's internal
audi to rs.
In our opinion, the financial statements referred to
above present fairly the financial position of the Federal
Deposit Insurance Corporation at December 31, 1979, and the
results of its operations and changes in its financial po si
tion for the year then ended, in conformity with both ge ne r
ally accepted accounting principles and the accounting pr in
ciples prescribed by the Comptroller General applied on a
basis consistent with that of the preceding year.
Sincerely yours
Acting '
of the United States
CEASE-AND-DESIST ACTIONS
cla ssified assets; o b ta in adequate
docum entation; cease extending credit
to any borrower noted as a concentra
tion and elim inate such concentra
tions; elim inate w ith o u t loss or liability
to the bank extensions of credit by
means of overdraft or cash item to
insiders and cease extending such
credit; adhere to specific guidelines
reg a rd ing e xte nsio n s o f c re d it to
insiders owning 10% of the bank's
sto ck; reduce loan vo lu m e ; a dopt
acceptable w ritte n loan and invest
m e n t p o lic ie s ; p ro v id e a d e q u a te
liquidity; correct internal control defi
ciencies and adopt a w ritte n internal
audit program; discontinue cash d ivi
dends; increase capital; and provide an
acceptable asset condition and a cer
tain level of capital.
Actions to Term inate Insured Status
Federal Deposit Insurance Act-S ection 8(a)
The Corporation has issued 42 term ination of
insurance orders since January 1971; nine were
issued in 1979. In each case, the bank was
found to be in unsafe or unsound condition.
A number of other term ination of insurance
actions have been recommended but w ith
drawn because of corrective action by the bank
involved. As in the case of cease-and-desist
actions, the threat of term ination of insurance
has caused many of the banks to take affirm a
tive steps to correct deficiencies, thus e lim inat
ing the need for final action.
Summary of cases
Order term inated on July 9, 1979,
after bank was closed.
Bank No.
34
35
36
Deposits— $50.5 m illion
Notice of intention to term inate
insured status issued on February 16,
1979. Bank ordered to provide accepta
ble m anagem ent; reduce adversely
classified assets; establish an adequate
loan loss reserve; cease extending
credit to any borrower noted as a con
centration and elim inate concentra
tions; adopt w ritte n loan policies; take
appropriate action to elim inate deficit
net operating income; correct internal
control deficiencies and institute a
w ritte n a u d it pro g ra m ; d is c o n tin u e
cash dividends; increase capital; and
provide an acceptable asset condition
and a certain level of capital.
Deposits — $5.0 m illion
Notice of intention to term inate
insured status issued on May 7, 1979.
Bank ordered to provide acceptable
management, increase capital; reduce
adversely classified assets; establish
an adequate reserve for loan losses;
c o rre c t d o c u m e n ta tio n d e ficie n cie s;
adhere to certain lending requirements
based on a specified loan to deposit
ratio; adopt w ritte n loan and invest
m ent policies; reduce concentrations
of credit; correct internal control defi
ciencies; correct violations of laws,
rules and regulations; and provide an
acceptable asset condition and a cer
tain level of capital.
Deposits — $3.5 m illion
Notice of intention to term inate
insured status issued on May 21, 1979.
Bank ordered to provide acceptable
m a n a g e m e n t; re d u c e a d v e rs e ly
49
37
Deposits — $35.9 m illion
Notice of intention to term inate
insured status issued on June 7, 1979.
Bank ordered to provide acceptable
m an a g e m en t; a d o pt w ritte n loan,
investm ent and operating policies w ith
consideration given to liq u id ity needs;
adhere to an outstanding supervisory
corrective order; increase capital; and
provide an acceptable asset condition
and a certain level of capital.
Order term inated on July 2, 1979,
after bank was closed.
38
Deposits — $15.3 m illion
Notice of intention to term inate
insured status issued on July 2, 1979.
Bank ordered to provide acceptable
m a n a g e m e n t; re d u c e a d v e rs e ly
classified assets; correct loan docu
m entation deficiencies; adopt accepta
ble w r it te n loan and in v e s tm e n t
policies; discontinue cash dividends;
in cre a se c a p ita l; and p ro v id e an a c
c e p ta b le asset c o n d itio n and a c e r
ta in level o f ca p ita l.
Order term inated on November 5,
1979, follow in g purchase and assump
tion by another bank.
39
Deposits— $4.7 m illion
Notice of intention to term inate insured
status issued on July 30, 1979. Bank
ordered to provide acceptable manage
m ent; increase capital; reduce adver
sely classified assets; provide an ade
quate loan loss reserve; elim inate loan
d o c u m e n ta tio n d e ficie n cie s; a d o pt
acceptable w ritte n loan policies; adopt
50
FEDERAL DEPOSIT INSURANCE CORPORATION
policies to ensure com pliance w ith
FIRIRCA; reduce c o n c e n tra tio n s of
credit; discontinue cash dividends; and
provide an acceptable asset condition
and a certain level of capital.
40
Deposits— $16.2 m illion
Notice of intention to term inate
insured status issued on August 13,
1979. Bank ordered to provide accepta
ble m anagem ent and to increase
capital.
41
Deposits — $87.9 m illion
Notice of intention to term inate
insured status issued on September 17,
1979. Bank ordered to increase capital;
e s ta b lis h an a d e q u a te loan loss
reserve; reduce adversely classified
assets; establish a plan to control
expenses; and provide an acceptable
asset condition and a certain level of
capital.
42
Deposits — $5.1 m illion
Notice of intention to term inate
insured status issued on September 17,
1979. Bank ordered to provide accepta
ble management; adopt procedures to
ensure maintenance of accurate books
and records; provide for an audit
program; reduce adversely classified
assets; increase capital; adopt w ritte n
loan and investm ent policies; discon
tinue cash dividends; and provide an
acceptable asset condition and a cer
tain level of capital.
Summary of cases
Bank No.
138
Deposits — $4.9 m illion
C o n se n t c e a s e -a n d -d e s is t o rd e r
entered on January 10, 1979. Bank
ordered to provide acceptable manage
m en t; reduce adve rse ly cla ssified
assets; establish an adequate loan loss
reserve; inject new capital; reduce
overdue loans; adopt acceptable w rit
ten loan policies; establish a plan to
control expenses; com ply w ith laws,
rules and re g u la tio n s; and in itia te
appropriate action in connection w ith
student loans in default.
139
Deposits — $16.4 m illion
C o n se n t c e a s e -a n d -d e s is t o rd e r
entered on January 10, 1979. Bank
ordered to inject new capital; reduce
adverse classifications; establish an
adequate loan loss reserve; correct
loan d o c u m e n ta tio n d e fic ie n c ie s ;
reduce overdue loans; adhere to its
sta te d in s ta llm e n t loan ch a rg e -o ff
policy; com ply w ith laws, rules and
regulations; and discontinue cash d ivi
dends.
140
Deposits — $13.0 m illion
C o n se n t c e a s e -a n d -d e s is t o rd e r
e n te re d on J a n u a ry 10, 1 9 7 9 , to re
place a te m p o ra ry o rd e r to ce ase-anddesist. Bank ordered to provide accep
table management; adopt acceptable
w ritte n loan policies; reduce adverse
classifications; correct internal control
and loan docum entation deficiencies;
form ulate w ritte n policies and pro
cedures for investm ent of bank funds;
and co m p ly w ith laws, rules and
regulations.
141
Deposits— $13.5 m illion
C o n s e n t c e a s e - a n d - d e s is t o rd e r
entered on January 10, 1979, to re
place a tem porary order to cease-anddesist. Bank ordered to not engage in
any business transactions w ith a cer
tain affiliate, including but not lim ited
to deposit relationships, loans to or for
the benefit of the affiliate, its officers,
d ire c to rs , s h a re h o ld e rs or o th e r
insiders of the affiliate, loans or par
ticipations in loans purchased from or
sold to the affiliate, and the purchase of
goods or services from the affiliate;
cease g ra n tin g c re d it d ire c tly or
indirectly to or for the benefit of a cer
tain individual, his business interests or
Cease-and-Desist Actions
Federal Deposit Insurance Act-Section 8(b)
The Corporation has issued 189 cease-anddesist orders since January 1971, including 52
in 1979. In addition, 24 tem porary cease-anddesist orders were issued in that period, includ
ing six in 1979. In each case, the bank was
ordered to cease and desist from unsafe or
unsound practices and to take affirm ative
action to correct conditions. Several such
actions are now in various stages of processing.
Also, a number of other cease-and-desist
proceedings were term inated when the banks
involved, in response to a threatened ceaseand-desist order, took affirm ative steps to cor
rect the problems.
In six other cases, tw o in 1979, formal w rit
ten agreements between banks and the Cor
poration were ratified by the FDIC Board of
Directors. Noncompliance w ith these formal
w ritte n agreements can result in a cease-anddesist action.
CEASE-AND-DESIST ACTIONS
persons related to him, the affiliate or
any insider or affiliate of the bank; to
prohibit any of its employees from serv
ing sim ultaneously as an employee of
the affiliate or perform recordkeeping
services for the affiliate; cease tran
sacting any business of the affiliate in
any authorized office of the bank or in
offices owned, leased or otherwise
controlled by the bank; and cease
extending any credit to any parties
secured in w hole or in part by deposits
in the affiliate.
142
143
Deposits — $13.0 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on January 24, 1979. Bank
ordered to provide acceptable manage
ment, reduce adverse classifications;
elim inate adversely classified obliga
t i o n s o f in s id e r s , s u b s t a n t i a l
s to ckh o ld e rs, a n d /o r th e ir related
interest; elim inate and cease extending
credit in the form of overdrafts to
insiders, substantial stockholders or
c o m p a n ie s in w h ic h t h e y a re
in te re s te d ; e sta blish sp e cific p ro
cedures and/or guidelines w ith regard
to outstanding extensions of credit to
directors and substantial stockholders;
elim inate adversely classified loans to
and cease extending credit to bor
rowers w ho do not reside or conduct
business w ith in the bank's normal
trade area; declare a m oratorium on
renewals and extensions of installm ent
loans; provide adequate collateral and
credit file docum entation; reduce loan
volume; m aintain an adequate loan
loss reserve; adopt a loan policy; cor
rect internal control deficiencies and
adopt an internal audit program; com p
ly w ith laws, rules and regulations; and
discontinue cash dividends.
Deposits — $7.2 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on January 24, 1979. Bank
ordered to provide acceptable manage
ment; reduce adverse classifications;
e lim in a te c r itic is m s p e rta in in g to
assets liste d fo r special m e n tio n ;
e s ta b lis h an a d e q u a te loan loss
reserve; adopt acceptable w ritte n loan
policies, including provisions for credit
exte nd e d to in sid ers; e sta blish a
charged-off loan ledger; com ply w ith
laws, rules and regulations; inject new
c a p ita l; a d o pt a cce p ta b le w ritte n
in v e s tm e n t p o lic ie s ; re d u c e loan
volum e; cease payment of com pensa
tion to directors w ith o u t prior super
51
v iso ry a p p ro va l; p ro h ib it e xte n d in g
credit to insiders whose outstanding
credit is adversely classified; levy serv
ice charges on all deposit accounts of
insiders in th e same m anner and
degree as levied on other deposit
customers; and discontinue cash d ivi
dends.
144
Deposits — $4.1 m illion
C o n s e n t c e a s e - a n d - d e s is t o rd e r
entered on January 24, 1979. Bank
ordered to correct violations of con
sumer protection laws related to Finan
cial Recordkeeping and Reporting of
C urrency and Foreign T ra n sa ction s
Regulations; Truth in Lending Act,
Equal Credit O pportunity A ct; Real
Estate Settlem ent Procedures A ct; and
part 338 (Fair Housing) of the Corpora
tio n 's Rules and R egulations; and
employ or designate a person to assure
future com pliance w ith all consumer
and civil rights-related laws and regula
tions.
145
Deposits — $15.5 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on February 16, 1979. Bank
ordered to provide acceptable m anage
m ent; reduce adverse classifications;
provide an adequate loan loss reserve;
reduce overdue loans; adopt accepta
ble w r it te n loan and in v e s tm e n t
policies; inject new capital; provide ad
equate internal control procedures;
and correct violations of laws, rules and
regulations.
146
Deposits — $6.3 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on February 16, 1979. Bank
ordered to inject new capital and pro
vide an adequate loan loss reserve.
147
D eposits— $29.6 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on February 16, 1979. Bank
ordered to provide acceptable manage
m ent; obtain supervisory approval for
payment of management fees for serv
ices n o t p e rfo rm e d by s a la rie d
employees; inject new capital; reduce
adverse classifications; lim it credit to
directors, officers, their affiliates and
interests and any tw o or more unre
lated directors, officers, their affiliates
and interest where payment is based
upon the assets of or revenue derived
from the same source; reduce con
centrations of credit, loan volum e and
overdue loans; not repurchase loans
sold or sell additional loan participa
FEDERAL DEPOSIT INSURANCE CORPORATION
52
tions; adopt acceptable w ritte n loan
policies; reduce loans originating o u t
side the bank's normal trade area; cor
rect docum entation deficiencies; and
periodically review w ritte n policies and
esta blish e d procedures fo r c o n fo r
mance.
148
149
150
151
Deposits — $131.9 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on M arch 6, 1979. Bank
ordered to provide acceptable manage
ment; reduce adverse classifications;
establish adequate reserves for loan
losses, other real estate, and Leeway
Investments; provide adequate col
lateral and credit file docum entation;
cease extending credit to borrowers
outside the bank's normal trade area
except for one and tw o fam ily resi
dences; adopt acceptable w ritte n loan
and investm ent policies; lim it credit to
any person or concern and any tw o or
more unrelated obligors where pay
ment is based upon the assets of or
revenue derived from the same source;
re d u c e c o n c e n tr a tio n s o f c r e d it;
increase surplus and reserves to a cer
tain level; correct internal control defi
ciencies; and correct violations of laws,
rules and regulations.
Deposits — $11.5 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on April 2, 1979. Bank ordered
to inject a cash contribution to surplus
and obtain a formal, w ritten, legal op i
nion from com petent tax counsel con
cerning the proper valuation of the
bank's b u ild in g and prem ises fo r
income tax purposes.
Deposits — $14.1 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on April 2, 1979. Bank ordered
to provide acceptable m anagement;
reduce adverse classifications; e lim i
nate overdrafts; reduce loan volum e
and overdue loans; adopt acceptable
w ritte n loan and investment policies;
provide an adequate loan loss reserve;
c o rre c t d o c u m e n ta tio n d e ficie n cie s;
correct violations of laws, rules and
regulations; maintain com plete and
accurate board and loan com m ittee
m inutes; maintain its general ledger
and daily statem ent in conform ance
w ith generally accepted standards; and
discontinue cash dividends.
D eposits— $17.6 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on April 2, 1979. Bank ordered
to reduce adversely classified assets,
assets listed for special m ention, con
centrations of credit, and loan volume;
increase the interest rate charged on a
loan to a certain insider; adopt accep
table w ritte n loan policies; provide an
adequate loan loss reserve; define its
normal trade area and reduce, restrict
and lim it extensions of credit to bor
rowers outside of the defined area;
e lim in a te b o rro w in g s o th e r th a n
securities sold under repurchase agree
m ent; inject new capital; and correct
violations of laws, rules and regula
tions.
152
Deposits — $6.1 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on April 2, 1979 to replace a
tem porary order to cease-and-desist.
Bank ordered to inject new capital;
abide by certain restrictions regarding
loan volume, sale of loan participations,
and se cu ritie s tra n s a c tio n s ; cease
extending or renewing credit w ith o u t
first obtaining certain specific docu
m entation and correct docum entation
deficiencies; lim it volum e of overdrafts
to a specified level; place certain
restrictions on extensions of credit to
borrowers residing outside its normal
trade area; establish an adequate loan
loss reserve; correct violations of laws,
rules and regulatons; and discontinue
cash dividends.
153
Deposits — $13.9 m illion
C o n se n t c e a s e -a n d -d e s is t o rd e r
entered on April 2, 1979. Bank ordered
to correct violations of consumer pro
tection laws related to Truth in Lending
A c t; Financial Recordkeeping and
Reporting of Currency and Foreign
Transactions Regulations; Equal Credit
O pportunity A ct; and employ or desig
nate a person to assure future com pli
ance w ith all civil rights-related laws
and regulations.
154
Deposits — $15.5 m illion
C o n se n t c e a s e -a n d -d e s is t o rd e r
entered on April 9, 1979. Bank ordered
to provide acceptable m anagement;
reduce adverse classifications; reduce
loan volum e and adhere to certain
re s tric tio n s reg a rd ing same; cease
extending credit based on deposits that
have a brokered origin; establish con
trols and procedures for extension of
dealer floor-plan credit lines; adopt
acceptable w ritte n loan and overdraft
policies; provide an adequate loan loss
CEASE-AND-DESIST ACTIONS
reserve; correct loan docum entation
deficiencies; review and take neces
sary action w ith regard to expenditures
related to travel, entertainm ent and
legal services; correct internal control
d e fic ie n c ie s ; cease e xe rcisin g tru s t
powers w ith o u t supervisory approval;
and correct violations of laws, rules and
regulations.
155
156
Deposits— $5.4 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered April 9, 1979, Bank ordered to
p ro v id e a c c e p ta b le m a n a g e m e n t;
reduce adverse classifications; lim it
credit to any person or concern and any
tw o or more unrelated obligors where
paym ent is based upon the assets of or
revenue derived from the same source;
cease extending additional credit to
insiders or persons related to insiders
whose credit is adversely classified;
approve and e sta blish reasonable
lim itations on sale of excess funds;
reduce loan volume and adhere to cer
tain restrictions regarding same; pro
vide an adequate loan loss reserve;
adopt acceptable w ritte n loan, over
draft, and insider policies; correct loan
d o c u m e n ta tio n d e ficie n cie s; cease
purchasing any loan or other asset
from any source in consideration for or
to facilitate the sale of bank insider
debt or debt of any person related to
any insider of the bank; abide by cer
tain restrictions related to the sale of
other real estate or other bank assets;
correct internal control deficiencies;
m aintain a certain level of adjusted
capital and reserves; correct violations
of laws, rules and regulations; and
adhere to certain restrictions regarding
paym ent of cash dividends.
D eposits— $21.0 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on A p ril 23, 1979. Bank
ordered to provide acceptable manage
ment; reduce adverse classifications;
reduce loan volum e and adhere to cer
tain restrictions regarding same; lim it
credit to any person or concern and any
tw o or more unrelated obligors where
paym ent is based upon the assets of or
revenue derived from the same source;
adopt acceptable w ritte n loan and
other real estate policies; adhere to
certain restrictions regarding exten
sions of credit of any kind to three cer
tain individuals; extend credit secured
by real estate w ith in governing law;
provide an adequate loan loss reserve;
53
correct loan docum entation deficien
cies; p ro vid e an a cce p ta b le loan
liability ledger; cease releasing col
lateral held to secure credit extended
unless payment is received approx
im ating the fair market value of the col
lateral released; and correct violations
of laws, rules and regulations.
157
Deposits— $18.3 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on May 21,1979. Bank ordered
to correct violations of consumer pro
te c tio n law s related to Financial
Recordkeeping and Reporting of Cur
re n c y and F o re ig n T ra n s a c tio n s
Regulations; Truth in Lending A ct;
Equal Credit O pportunity A ct; Real
Estate Settlem ent Procedures A ct; and
Parts 329 (Interest on Deposits) and
338 (Fair Housing) of the Corporation's
Rules and Regulations; and em ploy or
designate a person to assure future
com pliance w ith all cited consumer
and civil rights-related laws and regula
tions and the Corporation's Rules and
Regulations.
158
Deposits— $2.3 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on May 30, 1979. Bank ordered
to provide acceptable managem ent;
reduce adverse classifications; adopt
acceptable w ritte n loan policies; pro
vide an adequate loan loss reserve; cor
rect loan docum entation deficiencies;
review and adopt necessary adjust
ments regarding salaries and employee
benefits paid officers and employees;
adopt plans and take affirm ative action
w ith regard to obtainm ent of adequate
premises for the conduct of the bank's
business; correct internal control defi
ciencies; discontinue cash dividends;
and correct violations of laws, rules and
regulations.
159
Deposits— $70.7 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on June 11, 1979. Bank
ordered to provide acceptable manage
m ent for its trust departm ent; conduct
trust operations in accordance w ith the
Corporation's Statem ent of Principles
of Trust Departm ent Managem ent; cor
rect trust departm ent recordkeeping
deficiencies; conduct an asset review
of all trust accounts; correct other
docum entation deficiencies and note
same in the trust com m ittee m inutes;
obtain trust com m ittee approval prior
to opening any new trust account or
closing any existing account and the
54
FEDERAL DEPOSIT INSURANCE CORPORATION
purchase, sale or change regarding
trust assets; establish and im plem ent
p ro c e d u re s to c o n fo rm w ith th e
Employee Retirement Income Security
A ct; establish dual control procedures
for all trust departm ent assets; obtain
in d e p e n d e n t legal counsel o p in io n
regarding past and present operation of
the comm on trust fund in accordance
w ith the w ritte n plan and the trust
com m ittee w ill review same; correct
v io la tio n s ; esta blish a program to
effectively supervise trust departm ent
operations; disclose certain transac
tio n s in v o lv in g any tru s t a cco u n t
resulting in an adjustm ent w h ich oper
ates to the disadvantage of such trust
account; disclose litigation pertaining
to the operation of the trust depart
m ent to, and establish an adequate
reserve for same if deemed necessary
by supervisory authorities; and provide
necessary training of the bank's inter
nal audit personnel in auditing pro
cedures for the bank's trust depart
ment.
160
D eposits— $16.9 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on June 18, 1979. Bank
ordered to provide acceptable manage
m ent; reduce adverse classifications;
elim inate and cease extending credit to
borrowers w ho do not reside or con
duct business w ith in its defined trade
area; adopt acceptable w ritte n loan
policies; establish an adequate loan
loss reserve; inject new capital; fo rm u
late a liq u id ity policy; improve operat
ing earnings; adopt an internal w ritte n
audit program and correct internal con
tro l d e fic ie n c ie s; o b tain adequate
b la n ket and excess em ployee d is
honesty bond coverage; correct viola
tions of laws, rules and regulations;
and discontinue cash dividends.
161
Deposits — $82.5 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on June 18, 1979 to replace a
tem porary order to cease-and-desist.
Bank ordered to adhere to certain
restrictions regarding disbursem ent or
paym ent of any monies, including cred
it extensions, to a certain holding com
pany and/or to any party w herein such
d is b u rs e m e n t w o u ld inure to the
benefit of said holding company, or
invoice the purchase of said holding
com pany's stock w ith o u t prior super
visory approval.
162
Deposits — $13.7 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
e ntered on June 25, 1979. Bank
ordered to provide acceptable manage
m ent; reduce adverse classifications;
cease extending additional credit to
insiders or persons related to insiders
whose credit is adversely classified;
reduce loan volume and adhere to cer
tain restrictions regarding same; adopt
acceptable w ritte n loan and invest
m e n t p o lic ie s ; d is c lo s e to th e
shareholders all details on an insider
credit life insurance agency operated
on the premises; require approval by
tw o -th ird s of the shareholders of any
decision not to retain such income for
the bank, but in any event provide
reasonable reim bursem ent to the bank
for use of premises, personnel, and
equipm ent; provide an adequate loan
loss reserve; correct loan docum enta
tion deficiencies; correct internal con
trol deficiencies; correct violations of
laws, rules and regulations; and dis
continue cash dividends.
163
D eposits— $5.0 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on July 2, 1979. Bank ordered
to provide acceptable management;
reduce adversely cla ssifie d assets;
lim it credit to any director or officer of
the bank or their affiliates and interests
or any tw o or more directors or officers
of the bank or their affiliates and
interests where payment is based upon
the assets of or revenue derived from
the same source; lim it the total indebt
edness to directors and officers of the
bank, th e ir a ffilia te s and in te re sts;
reduce concentrations of credit; reduce
loan volum e and adhere to certain
re s tric tio n s reg a rd ing same; adopt
a c c e p ta b le w r itte n loan p o lic ie s ;
reduce overdue loans; correct loan
d o cu m e n ta tio n d e fic ie n c ie s ; pro vid e
an adequate loan loss reserve; adopt
acceptable liq u id ity policies; adopt an
a c c e p ta b le w r itte n in te rn a l a u d it
program and correct internal control
deficiencies; periodically review w rit
ten bank policies and established pro
cedures for conform ance; com ply w ith
Title I of the Financial Institutions
Regulatory and Interest Rate Control
A ct; and correct violations of laws,
rules and regulations.
164
Deposits— $11.9 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on July 2, 1979. Bank ordered
CEASE-AND-DESIST ACTIONS
to provide acceptable m anagement;
reduce adversely classified assets and
loans listed for special m ention; reduce
loan volume and adhere to certain
restrictions regarding same; reduce
overdue loans; adopt acceptable w rit
ten loan policies; provide an adequate
loan loss reserve; correct loan docu
m entation deficiencies; adopt accept
able liq u id ity p o licie s; in je c t new
capital; correct violations of laws, rules
and regulations, including consumer
protection laws; employ or designate a
person to assure future compliance
w ith all consumer and civil rightsrelated law s and re g u la tio n s; and
periodically review w ritte n policies and
established procedures for conform
ance.
165
Deposits — $4.7 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on July 9, 1979. Bank ordered
to provide acceptable m anagement;
reduce adversely cla ssified assets;
reduce overdue loans; adopt accept
able w ritte n loan policies; provide an
adequate loan loss reserve; ad o pt
acceptable liq u id ity policies; and cor
rect loan docum entation deficiencies.
166
Deposits — $69.4 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on July 16, 1979. Bank ordered
to provide acceptable m anagement;
reduce adversely classified assets; pro
vide an adequate loan loss reserve;
adhere to certain restrictions regarding
loan volume; adopt adequate liq u id ity
policies; m aintain a certain level of
to ta l c a p ita l and reserves; co rre ct
violations of laws, rules and regula
tions; and discontinue cash dividends.
167
D eposits— $20.5 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on July 16, 1979. Bank ordered
to provide acceptable m anagement;
reduce adversely cla ssified assets;
adopt acceptable w ritte n loan policies;
adhere to certain restrictions regarding
a c c o u n tin g fo r in te re st incom e on
loans, loan participations sold, and loan
volume; correct loan docum entation
deficiencies; review all loans and lines
of credit to directors and their interests
at least semi-annually; cease extend
ing credit to directors whose loans are
adversely classified unless adequate
security is obtained and in conform
ance w ith applicable law; collect all
outstanding loans to certain individuals
and c o m p a n ie s u n le ss a d e q u a te
55
security is provided, otherwise, same
are to be charged off and new equity
capital injected at least equal to the
amount charged off; adhere to certain
restrictions regarding the payment of
a ny fee, c o m m is s io n , c h a rg e or
expense for legal services or services of
a real estate agency or broker unless
same is fu lly supported and docu
mented; provide an adequate loan loss
reserve; m aintain a certain level of
adjusted capital and reserves; correct
violations of laws, rules and regula
tions; and discontinue cash dividends.
168
Deposits — $15.1 m illion
C o n se n t c e a s e -a n d -d e s is t o rd e r
entered on July 16, 1979. Bank ordered
to provide acceptable management;
reduce adversely classified assets; col
lect all debts of any director or direc
tor's interests w hich are adversely
classified; adopt acceptable w ritte n
loan policies; provide an adequate loan
loss reserve; reduce and adhere to cer
tain restrictions regarding loan volume;
and co m p ly w ith laws, rules and
regulations.
169
Deposits— $17.3 m illion
C o n se n t c e a s e -a n d -d e s is t o rd e r
entered on July 16, 1979. Bank ordered
to reduce adversely classified assets;
adhere to certain restrictions regarding
the sale of loans or loan participations
and docum entation in the granting of
extensions of credit; correct loan docu
m e n ta tio n d e ficie n cie s; p ro vid e an
adequate loan loss reserve; inject new
capital; and com ply w ith laws, rules
and regulations.
170
Deposits— $4.7 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on July 16, 1979 to replace a
tem porary order to cease-and-desist.
Bank ordered to adhere to certain
restrictions regarding extensions of
additional credit in the form of cash
item s, o ve rd ra fts, or any pa ym e n t
a g a in s t u n c o lle c te d fu n d s ; cease
extending credit guaranteed in whole
or in pa rt by th e Farmers Home
A d m in is tra tio n , th e Sm all Business
A dm inistration, or any other agency of
the United States Government; and
adhere to a specified dollar lim it in
extending credit w ith o u t prior approval
of a m ajority of directors or a co m m it
tee th e re o f w h o are not fu ll-tim e
officers of the bank.
56
171
FEDERAL DEPOSIT INSURANCE CORPORATION
Deposits — $32.7 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on July 23, 1979. Bank ordered
to correct violations of consumer pro
te c tio n law s related to Financial
Recordkeeping and Reporting of Cur
re n c y and F o re ig n T ra n s a c tio n s
Regulations; Truth in Lending Act;
Equal Credit O pportunity A ct; Real
Estate Settlem ent Procedures A ct; and,
Parts 326 (S ecurity and C ontrols
Against External Crimes), 329 (Adver
tis in g of Interest or D ividends on
Deposits), and 338 (Fair Housing) of the
Corporation's Rules and Regulations;
and employ or designate a person to
assure future com pliance w ith all con
sumer and civil rights-related laws and
regulations.
172
Deposits — $62.8 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on July 30, 1979 to replace a
tem porary order to cease-and-desist.
Bank ordered to reduce adversely
classified assets; reduce overdue loan
volum e; inject new capital and m ain
tain a certain level of adjusted capital
and reserves; discontinue purchase of
or further speculation in the purchase
o r sale o f G o v e rn m e n t N a tio n a l
Mortgage Association forward place
ment contracts; com ply w ith laws,
rules and regulations; and adhere to
certain restrictions regarding payment
of cash dividends.
173
D eposits— $10.0 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on August 6, 1979. Bank
ordered to provide acceptable m anage
m ent; reduce adversely cla ssified
assets; reduce overdue loans and con
centrations of credit; adopt acceptable
w ritte n loan policies; establish an ade
quate loan loss reserve; correct loan
d o c u m e n ta tio n d e ficie n cie s; o b ta in
w ritte n verifications from banks to
w hich loan participations have been
sold regarding the bank's obligation to
repurchase; inject new capital; and
correct internal control deficiencies,
including establishm ent of an accrual
accounting system for the recording of
discounted installm ent loan income.
174
Deposits — $103.9 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on August 6, 1979 to replace a
tem porary order to cease-and-desist.
Bank ordered to cease from entering
into or consum m ating any transaction
for the sale of any nonbook or classified
loan of the bank for any am ount less
than face value to any insider, form er
insider, person related to an insider or
form er insider, to a certain bank or to
any insider or person related to an
insider of that bank.
175
Deposits — $5.8 m illion
C o n se n t c e a s e -a n d -d e s is t o rd e r
entered on August 13, 1979. Bank
ordered to provide acceptable manage
ment; reduce adverse classifications;
im plem ent supervisory recom m enda
tions regarding loans listed for special
m ention; reduce loan volum e and over
due loans; establish an adequate loan
loss reserve; adopt acceptable w ritte n
loan policies; inject new capital; and
com ply w ith laws, rules and regula
tions.
176
Deposits — $1.3 billion
Cease-and-desist order entered on
August 21,1979. Bank ordered to com
ply w ith Section 329.8 (interest on
deposits) of the Corporation's Rules
and Regulations. In particular, the bank
shall cause all visual advertisements
for a period of three months, in daily
new spapers selected in a m anner
designed to reach the greatest number
of its depositors, to contain in a clear
conspicuous manner a notice related to
the c o m p o u n d in g of in te re s t/d iv i
dends; and establish an account that
properly reflects the bank's liability
from w hich customers may request
r e s titu tio n fo r u n d e rp a y m e n t of
interest/dividends.
177
Deposits — $41.1 m illion
C o n se n t c e a s e -a n d -d e s is t o rd e r
entered on August 20, 1979. Bank and
in d iv id u a l respondents ordered to
adhere to certain restrictions regarding
the sale of loans or loan participations,
d o cu m e n ta tio n in the g ra n tin g of
extensions of credit and loan volume;
reduce and adhere to certain restric
tions regarding extensions of credit to
the interests of certain individual res
pondents; adopt acceptable w ritte n
loan policies; establish an acceptable
loan liability ledger; increase the rate of
interest on outstanding obligations of
c e rta in in d iv id u a l respondents and
establish a rate of interest for loans to
individual respondents at the m ax
im um rate for money market ce rtifi
cates of deposits perm itted by applica
ble regulation plus specified percen
tage points; prepare a detailed report of
all expenses charged to the bank by its
CEASE-AND-DESIST ACTIONS
directors and other employees and
re c o v e r fro m th e d ire c to rs and
e m p lo y e e s a ll p e rs o n a l e xp e n se s
approved by the d ire c to rs a fte r a
specified date; and com ply w ith laws,
rules and regulations.
178
Deposits — $40.0 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on August 27, 1979. Bank
ordered to provide acceptable manage
m en t; reduce adversely cla ssified
assets; adopt an acceptable w ritte n
loan policy; reduce overdue loans; cor
rect loan docum entation deficiencies;
e s ta b lis h an a d e q u a te loan loss
reserve; reduce and maintain loan
volum e at a specified level; maintain
adequate cash reserves and refrain
from unnecessary borrowing to sup
port liquidity; inject new capital; com
ply w ith laws, rules and regulations;
and cause annual independent audits
to be made.
179
Deposits — $11.0 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on September 10, 1979. Bank
ordered to reduce adversely classified
assets; establish an adequate loan loss
reserve; adhere to certain docum enta
tion restrictions prior to extending or
renewing credit; request current finan
cial data from all obligors whose exten
sions of credit are adversely classified;
provide evidence of title and priority of
liens on all real estate securing any
applicable extension of credit and per
fect any and all security interests on
real or personal property; and com ply
w ith laws, rules and regulations.
180
D eposits— $37.2 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on October 1, 1979. Bank
ordered to provide acceptable manage
m en t; reduce adversely cla ssified
assets; adopt acceptable w ritte n loan
policies, including guidelines for loans
to insiders, principal shareholders and
their interests; correct loan docum en
tation deficiencies; adhere to certain
lim itations on extensions of credit to
any one person, including any com
pany or companies he or she may con
trol; reduce concentrations of credit;
adopt acceptable w ritte n investment
policies, including adequate provisions
for liquidity; inject new capital and
subm it a plan for the replacement of
subordinated capital notes m aturing in
March 1981; take appropriate action to
im prove operating earnings; not enter
57
into any contractual agreements for the
leasing of bank premises w ith o u t prior
supervisory approval; and com ply w ith
laws, rules and regulations.
181
Deposits — $17.3 m illion
C o n se n t c e a s e -a n d -d e s is t o rd e r
entered on October 15, 1979. Bank
ordered to not have less than five direc
tors on its board and not less than tw o thirds of the directors dom iciled w ith in
its state; have an outside audit con
ducted regarding the bank's expense
accounts to determ ine w hich expense
items paid by the bank were reasonable
and normal bank expenses and w hich
items were expenses of a personal
nature to an insider, the latter to reim
burse the bank for same; adopt an
a cce p ta b le program fo r a m o n th ly
review by the board of all expense
items of the bank, including adequate
d o c u m e n ta tio n and a n n u a l b o a rd
• approval of all salaries, allowances,
bonuses and fees for officers, directors
and employees; adhere to a certain
percentage of average assets for a pre
ceding year regarding total annual sal
ary and bonus expense to be paid;
adopt an audit program w hich shall
include an annual audit by an outside
accounting firm ; prohibit its officers
and employees from perform ing serv
ices during normal bank w orking hours
for a certain insider, certain corpora
tions, or any other entity owned or con
trolled directly or indirectly by that cer
tain insider (other than the bank) w ith
out the bank receiving compensation
for such services; cease extending
loans to its affiliates in violation of a
certain law and obtain adequate docu
m entation and collateral for all loans to
it s a f f i l i a t e s ; d is c lo s e to th e
shareholders all details on an insider
credit life insurance agency operated
on the premises; and the board shall
a n n u a lly re vie w and d e te rm in e by
a p p ro p ria te re s o lu tio n w h e th e r the
bank w ill continue to perm it credit life
insurance to be w ritte n by bank per
sonnel and/or w ritte n on bank prem
ises, incidental to bank loans, in con
nection w ith said insurance agency.
182
Deposits — $3.9 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on October 15, 1979 to replace
a tem porary order to cease-and-desist.
Bank ordered to discontinue cash or
noncash bonus to directors, officers
and employees; discontinue payment
FEDERAL DEPOSIT INSURANCE CORPORATION
of m anagement fees and/or director
fees; provide inform ation satisfactory
to support the salary, fees and other
direct remuneration paid to any direc
tor, officer or employee w ho does not
serve as a full-tim e officer or employee;
adhere to certain restrictions regarding
any increases in salary and/or expense
allowances of full-tim e officers and
employees; adhere to certain lim ita
tions and restrictions in the reim burse
m ent of expenses to any officer, direc
tor or employee; review and docum ent
in the minutes of regular m eetings of
the board approval or disapproval of all
detailed income and expense state
m ents; cease payment of management
fees to tw o certain form er owners of
the bank and seek reim bursem ent from
three certain individuals for manage
ment fees paid to the tw o form er
owners; cease extending any addi
tional credit to or for the benefit of
directors, a certain form er director,
principal stockholders, or tw o certain
form er owners of the bank; adopt
a c c e p ta b le w r itte n loan p o lic ie s ;
reduce adversely cla ssified assets;
e s ta b lis h an a d e q u a te loan loss
reserve; initiate and pursue all actions
necessary to obtain reim bursem ent
from three certain individuals for cer
tain unsafe or unsound banking prac
tices com m itted in connection w ith an
agreement to purchase the bank from
tw o form er owners of the bank related
to extensions of credit to and property
conveyed to the form er owners and
obtain a specified amount of new
capital by direct contribution from the
th re e c e rta in in d ivid u a ls; p ro vid e
acceptable management; reduce over
due loans; com ply w ith laws, rules and
regulations; and discontinue cash or
noncash dividends.
D eposits— $3.9 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on October 15, 1979 to replace
a tem porary order to cease-and-desist.
Two active directors and a form er
director ordered to cease acceptance
or receipt of cash or noncash bank d ivi
dends; one of the directors and the
form er director are to cease accept
ance or receipt of cash or noncash
bonus or director fees and any increase
in salary or other direct or indirect
remuneration w ith o u t adequate docu
m entation from the bank supporting
same; reimburse the bank for a certain
extension of credit adversely classified
loss, bank property conveyed, manage
ment fees paid, and for the difference
between preferential interest rate and a
nonpreferential rate given to the form er
owners of the bank on their real estate
loans; and take steps to correct and
com ply w ith applicable laws, rules and
regulations.
184
Deposits — $18.2 m illion
C o n se n t c e a s e -a n d -d e s is t o rd e r
entered on October 22, 1979. Bank
ordered to provide acceptable manage
m en t; reduce adversely cla ssifie d
assets; increase the number of nonofficer-directors on the loan com m ittee
from tw o to four and require the loan
c o m m itte e to give p rio r approval
regarding secured or unsecured exten
sions of credit over certain stated
amounts; reduce overdue loans and
loan volume; adhere to its overdraft
policy; form ulate an acceptable w ritte n
liq u id ity policy; inject new capital; pro
vide an adequate loan loss reserve; be
made beneficiary on life insurance
policies on w hich the prem iums are
paid by the bank; discontinue any
fa v o ra b le tr e a tm e n t to a c e rta in
individual; increase fid e lity insurance
coverage to recommended level; and
discontinue cash dividends.
185
Deposits — $6.3 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on October 22, 1979. Bank
ordered to provide acceptable manage
m en t; reduce a d versely cla ssified
assets; collect and/or provide evidence
that a certain adversely classified loan
endorsed by an insider no longer w a r
rants adverse c la s s ific a tio n ; a dopt
acceptable w ritte n loan policies; pro
vide an adequate loan loss reserve;
reduce loan volum e and adhere to cer
tain restrictions regarding same; cor
rect loan docum entation and internal
control deficiencies; inject new capital;
com ply w ith laws, rules and regula
tions; and discontinue cash dividends.
186
Deposits — $17.0 m illion
C o n se n t c e a s e -a n d -d e s is t o rd e r
entered on October 22, 1979. Bank
ordered to provide acceptable m anage
m en t; reduce adversely cla ssified
assets; lim it credit to any director or
officer of the bank or their affiliates and
interests or any tw o or more directors
or officers of the bank where payment
is based upon the assets of or revenue
derived from the same source; lim it the
CEASE-AND-DESIST ACTIONS
total indebtedness to directors and
officers of the bank, their affiliates and
interests; adhere to certain restrictions
regarding specific adversely classified
loans or related loans to a certain
individual; adopt acceptable w ritte n
loan policies; correct loan docum enta
tion deficiencies; provide an adequate
loan loss reserve; adopt acceptable
liq u id ity policies; adopt a policy estab
lishing guidelines and procedures for
the elim ination of the excessive use of
uncollected funds; adopt a policy and
adhere to certain restrictions regarding
overdrafts to past or present officers or
directors or their interests and to a cer
tain individual and his interests; cor
rect v io la tio n s o f laws, rules and
regulations; and inject new capital.
187
D eposits— $3.9 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on December 10, 1979. Bank
ordered to correct violations of con
sumer protection laws related to Finan
cial Recordkeeping and Reporting of
C urrency and Foreign T ra n sa ction s
Regulations; Truth in Lending A ct;
Equal Credit O pportunity A ct; and,
parts 326 (S e cu rity and C ontrols
Against External Crimes), and 345
(Comm unity Reinvestment Act) of the
Corporation's Rules and Regulations;
and em ploy or designate a person to
assure future com pliance w ith all con
sumer and civil rights-related laws and
regulations.
188
D eposits— $59.2 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on December 17, 1979. Bank
ordered to provide acceptable manage
m en t; reduce adversely cla ssified
assets; increase the number of nonofficer-directors on the loan com m ittee
by one and require the loan com m ittee
to g iv e p rio r a p p ro v a l re g a rd in g
secured or unsecured extensions of
credit over certain stated amounts;
reduce overdue loans, loan volume, and
concentrations of credit; provide* an
adequate loan loss reserve; form ulate
an acceptable w ritte n liq u id ity policy;
inject new capital; and discontinue
cash dividends.
189
D eposits— $68.5 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on December 17, 1979. Bank
ordered to provide acceptable manage
m en t; reduce adversely cla ssifie d
assets; adopt an acceptable w ritte n
59
loan policy; provide an adequate loan
loss reserve; and inject new capital.
Formal W ritte n Agreem ent
Federal Deposit Insurance A ct-S e ctio n 8(b)
Bank No.
5
Deposits— $199.9 m illion
W ritte n agreement entered on Sep
tem ber 10, 1979. Bank agreed to am or
tize certain purchase and servicing
contracts on a straight-line basis over a
12-year period b e g in n in g January
1980.
6
Deposits— $70.2 m illion
W r itte n a g re e m e n t e n te re d on
November 5, 1979. Bank agreed to co l
lect and/or improve the quality of cer
tain insider loans subject to adverse
classification and listed for special
m ention sufficient to warrant removal
of the designations; reduce remaining
adversely classified assets and loans
liste d fo r special m e n tio n ; a d o pt
acceptable w ritte n loan and invest
m ent policies; adhere to FDIC's pub
lished statem ent of policy concerning
income tax rem ittance by banks to
their holding com pany affiliates; pro
vide an adequate loan loss reserve; and
adhere to certain restrictions regarding
payment of m anagement, consultant or
other fees of any nature to directors or
their interests or the bank's holding
company.
Tem porary cease-and-desist actions
Federal D eposit Insurance A ct-S e ctio n 8(c)
Bank No.
19
D eposits— $62.8 m illion
Temporary cease-and-desist order
issued on January 10, 1979. Bank
o rd e re d to c e a s e -a n d -d e s is t fro m
further purchase of, or further specula
tion in, the purchase or sale of Govern
m ent National M ortgage Association
futures, excepting further purchases or
sales of same on w hich the bank is pre
sently legally obligated.
A perm anent cease-and-desist order
was issued on July 30, 1979.
20
Deposits — $6.1 m illion
Temporary cease-and-desist order
issued on January 19, 1979. Bank
o rd e re d to c e a s e -a n d -d e s is t fro m
extending credit exceeding a specified
am ount in the form of overdrafts or by
60
FEDERAL DEPOSIT INSURANCE CORPORATION
holding checks as cash items for any
one custom er or account; extending
credit in violation of a certain state
statute; and abide by certain restric
tions regarding loan volum e and the
sale of any loan or participation in any
credit.
A perm anent cease-and-desist order
was issued on April 2, 1979.
21
D eposits— $82.4 m illion
Temporary cease-and-desist order
issued on May 7, 1979. Bank ordered to
adhere to certain restrictions regarding
th e d is b u rs e m e n t of any m onies,
including credit extensions, to a certain
holding company and/or to any other
p a rty w h e re in such d is b u rse m e n t
w ould inure to the benefit of said hold
ing company.
A perm anent cease-and-desist order
was issued on June 18, 1979.
22
D eposits— $4.7 m illion
Temporary cease-and-desist order
issued on May 25, 1979. Bank ordered
to adhere to certain restrictions regard
ing extensions of additional credit in
the form of cash items, overdrafts, or
paym ent against uncollected funds;
cease extending credit guaranteed in
w hole or in part by the Farmers Home
A d m in is tra tio n , th e Sm all Business
A dm inistration, or any other agency of
the United States Government; and
adhere to a specified dollar lim it in
extending credit w ith o u t prior approval
of a m ajority of directors or a co m m it
tee thereof who are not full tim e
officers of the bank.
A perm anent cease-and-desist order
was issued on July 16, 1979.
23
Deposits — $3.9 m illion
Temporary cease-and-desist order
issued on August 10, 1979. Bank
ordered to cease pa ym e n t of all
m a n a g e m e n t a n d d ir e c t o r fe e s ,
bonuses, and dividends; raising any
a nd a ll s a la rie s to o ffic e r s and
employees; extending any additional
credit to or for the benefit of members
o f board of d ire c to rs or p rin cip a l
sto ckh o ld e rs; co n ve yin g the bank's
assets w ith o u t adequate considera
tion; extending credit in violation of
Federal Reserve Regulation 0 ; seek
reim bursem ent for vehicles owned by
the bank and conveyed to form er
o w n e rs ; a s p e c ifie d a m o u n t o f
m an a g e m en t fees paid to fo rm e r
owners, and a specified am ount for
loans classified loss granted to form er
owners.
A perm anent cease-and-desist order
was issued on October 15, 1979.
24
D eposits— $3.9 m illion
Temporary cease-and-desist order
issued on August 10, 1979. Three cer
tain active directors ordered to cease
acceptance or receipt of dividends,
b o n u s e s , d ir e c to r s fe e s , s a la ry
increases, conveying bank assets, mak
ing loans, and paying management
fees w ith o u t adequate consideration,
and any extension of credit from the
bank; and, reimburse the bank for
assets conveyed, loans m ade and
management fees paid to tw o certain
in d iv id u a ls in c o n n e ctio n w ith an
agreement to purchase the bank.
A permanent cease-and-desist order
was issued on October 15, 1979.
MERGER DECISIONS OF THE COf
PART THREE
63
BAN KS INVO LVED IN ABSO R PTIO N S APPRO VED BY
THE FEDERAL DEPOSIT IN S U R A N C E C O RPO RATIO N IN 1 9 7 9
State
Town or City
Bank
Alabam a
Evergreen
First Alabam a Bank of C onecuh C ou n ty
(in o rg a n iza tio n )
The C onecuh C o u n ty Bank
Lee C o u n ty Bank (in o rg a n iza tio n;
ch a n g e title to The Bank o f East
A labam a)
The Bank of East Alabam a
O pelika
Alaska
A n c h o ra g e
C a lifo rn ia
A naheim
Fresno
F ulle rton
Grass V alley
Gardena
Irvine
Liverm ore
Los A ngeles
Page
12 5
1 25
125
1 25
Alaska Pacific Bank
Alaska Interim Bank (in o rg a n iza tio n)
1 25
1 25
H eritage Bank
First N ational Bank o f Fresno
C a lifo rn ia Pacific Bank
Gold C o u n try Bank
R epublic Bank
Irvine National Bank
V alley Bank, National A sso cia tio n
S herm an Oaks B ra n ch —
M a n u fa ctu re rs Bank
C a lifo rn ia Overseas Capital
Co., Inc. (in o rg a n iza tio n)
C a lifo rn ia Overseas Bank
Los A ngeles
S urety N ational Bank (change title to
(P.O. Encino)
C a lifo rn ia Overseas Bank)
Los A ngeles (Sun Valley) A m e rica n Pacific State Bank
N e w p o rt Beach
In te rn a tio n a l C entral Bank
In te rn a tio na l T rust C o rp o ra tio n
O akland
Central Bank
San F rancisco
Bank of A m erica N ational T rust and
Savings A sso cia tio n
The H ongkong Bank of C a lifo rn ia
(change title to Oakland Bank)
San Rafael
IBC Investm ent C o rp o ra tio n (in
org a n iza tio n)
S outh Lake Tahoe
Tahoe National Bank
1 17
108
119
125
119
117
108
C o n n e c tic u t
H a rtfo rd
New Haven
The G uaranty Bank and T rust C o m pa n y
First Bank
Florida
Bay C o u n ty
(P.O. Panama City)
S o u th e a st Beach State Bank (change
title to S outheast Bank of Panama
City)
B arnett Bank of Daytona Beach (change
title to Barnett Bank of Volusia
C ounty)
B arnett Bank of DeLand, National
A sso cia tio n
B arnett Bank of Delray Beach (change
title to B arnett Bank of Palm Beach
C ounty)
A m e rica n Bank o f H o llyw o o d
First A m e rica n Bank of Hom estead
A m e rica n A rlin g to n Bank
A m e rica n Beach Boulevard Bank (change
title to A m e rica n Bank)
D aytona Beach
DeLand
Delray Beach
H o llyw o o d
Hom estead
Ja ckso n ville
102
107
107
107
102
122
1 22
7 0 ,1 1 8
93
70
125
108
99
99
100
72
72
1 15
118
98
110
1 10
64
State
FEDERAL DEPOSIT INSURANCE CORPORATION
Town or City
Ja ckso n ville Beach
Lake W o rth
M argate
N orth M iam i
Panama C ity
Pem broke Park
(P.O. Hallandale)
Pom pano Beach
Riviera Beach
Tequesta
W e st Palm Beach
G eorgia
A lb a n y
A tlanta
C o lu m b u s
D alton
D o erun
D u lu th
H am pton
Law renceville
M acon
M arietta
M o u ltrie
Illin ois
C h ica g o
S c h a u m b u rg
Bank
A m e rica n M a n d a rin Bank
S o utheast Bank of Edgew ood
S outheast First Bank of Ja cksonville
(change title to S outheast Bank of
Ja cksonville)
S ou th e a st First N ational Beach
Bank
First M arin e N ational Bank and T rust
C o m pa n y of Lake W o rth
Florida Coast Bank of Coral S prings,
N ational A sso cia tio n
First A m e rica n Bank of Dade C o u n ty
S o u th e a st N ational Bank of Panama
C ity
Pem broke Park B ra n ch — A m e rica n Bank
of H allandale
Florida Coast Bank of P om pano Beach
(change title to Florida Coast Bank
of Brow ard C ounty)
First M arin e Bank & T rust C om pany of
the Palm Beaches
First M arin e N ational Bank & Trust
C om pany, J u p ite r/T e q u e s ta
B arnett Bank of Palm Beach C o u n ty
110
109
S e cu rity Bank and T rust C om pany
D uC orp. Inc. (in o rg a n iza tio n )
CB&T, Inc. (in o rg a n iza tio n)
First Railroad Bank of D alton (in
o rg a n iza tio n ; ch a n ge title to The
Bank of D alton)
The Bank of D alton
*Toney B rothers Bank
The Bank of D u lu th
In te rim -H a m p to n , Inc. (in
o rg a n iza tio n )
The Bank of H am pton
G w in n e tt C o m m e rcial Bank
T rust C o m pa n y of G w in n e tt C o u n ty (in
o rg a n iza tio n ; ch ange title to
G w in n e tt C o m m e rcial Bank)
Georgia Bank and T rust C om pany
G eorgia In te rim C om pany (in
o rg a n iza tio n )
First Railroad Bank of C obb C o u n ty
(in o rg a n iza tio n; ch a n ge title to
The C o m m e rcial Bank of C obb C ounty)
The C o m m e rcial Bank of C obb C o u n ty
A m e rica n Banking C om pany
1 25
1 26
125
In d ep e n d e n ce Bank of C hica g o
‘ G uaranty Bank & T rust C om pany
'G a te w a y N ational Bank of C hica g o
H.S. Bank (in o rg a n iza tio n ; ch ange
title to S u b u rba n Bank of H o ffm a n S ch a u m b u rg )
S u b u rba n Bank o f H o ffm a n -S ch a u m b u rg
'Banks absorbed in "emergency" approvals under provisions of Section 18(c).
Page
109
109
96
97
98
100
1 18
97
96
96
1 15
1 26
1 26
123
126
126
1 26
125
125
125
1 25
1 26
1 26
123
124
124
124
126
1 26
BANK ABSORPTIONS APPROVED BY THE CORPORATION
State
Town or City
Indiana
Fort W ayne
M aine
Lew iston
Liverm ore Falls
Portland
South Paris
M aryla n d
B a ltim ore
H agerstow n
H ancock
Rockville
M assa ch u se tts
M ic h ig a n
B u rlin g to n
W a lth a m
Big Rapids
Clare
O livet
M ississip p i
C lin to n
Leakesville
V icksb u rg
W a yn e sb oro
New Jersey
New York
B e rnardsville
Clayton
M o rris to w n
A lb a n y
B uffalo
Fredonia
Genesee
K ingston
New York (B rooklyn)
New York (M a n h a tta n )
O ssining
Syracuse
T arrytow n
Bank
S u m m it Bank and T rust C om pany
of Fort W ayne (in o rg a n iza tio n ; ch a n ge title
to Indiana Bank and T rust C o m pa n y of
Fort W ayne)
Indiana Bank and T ru st C o m pa n y of
Fort W ayne
N orth e a st Bank of Lew iston and
A u b u rn
A ugusta and W a te rville B ranches—
Liverm ore Falls T rust C o m pa n y
M aine Savings Bank
S outh Paris Savings Bank
A rlin g to n Federal Savings
and Loan A sso cia tio n
C entral Savings Bank
E quitable T rust C o m pa n y
A n tie ta m Bank C o m pa n y
Peoples Bank of H ancock
U niversity National Bank
65
Page
126
126
83
83
77
77
89
89
69
1 11
111
69
BayBank M iddlesex, N.A.
BayBank N e w to n -W a lth a m T ru st C om pany
(change title to BayBank M iddlesex)
101
C entral M ich ig a n Bank and T ru st
CM B Bank (in o rg a n iza tio n)
Citizens Bank and T rust C o m pa n y
CBC Bank (in o rg a n iza tio n)
The O livet State Bank
New State Bank of O livet (in o rg a n iza tio n )
125
125
1 26
1 26
1 26
1 26
The A m e rica n Bank
Bank of Leakesville
Bank of V icksb u rg (change title
to The A m e rica n Bank)
First State Bank
Bernards State Bank
Peoples Bank of South Jersey (in
o rg a n iza tio n )
Peoples Bank of S outh Jersey
The M o rris C o u n ty Savings Bank
A lb a n y Savings Bank
M e ch a n ics Exchange Savings Bank
Erie Savings Bank
Fredonia Savings and Loan
A sso cia tio n
Genesee Valley N ational Bank and
Trust C om pany of Genesee
Heritage Savings Bank
The Dim e Savings Bank of
New York
E m igrant Savings Bank
P rudential Savings Bank
W e stch e ster C o u n ty Savings and
Loan A sso cia tio n
First T rust and D e p o sit C om pany
Peoples W e stch e ster Savings Bank
101
69
87
69
87
121
1 25
1 25
121
75
91
104
104
74
75
91
72
72
90
74
90
FEDERAL DEPOSIT INSURANCE CORPORATION
66
State
Town or City
Bank
Page
N orth C arolina
C onw ay
Fayetteville
Raleigh
Bank of C onw ay
Cape Fear Bank & T rust C om pany
C a p ito l N a tio n a l Bank
First-C itizens Bank & T rust C om pany
W a cca m a w Bank and T rust C om pany
(change title to U nited Carolina
Bank, W h ite ville )
103
97
97
103
W h ite ville
O hio
Akron
C o lu m b u s
G allipolis
H arrisb u rg
Hopedale
M ario n
Salem
S teubenville
U nion T ow n sh ip
(P.O. M o rris to w n )
W a d sw o rth
Yorkville
The Firestone Bank
S o cie ty Bank
CS Bank (in o rg a n iza tio n; change
title to The C o m m e rcial and Savings Bank)
The C o m m e rcial and Savings Bank
*The A m e rica n Bank of Central O hio
Heritage Bank, N.A. — H opedale
The F. B. G. Bank of M ario n (in
o rg a n iza tio n; ch a n ge title to The
M ario n C o u n ty Bank)
The M a rio n C o u n ty Bank
Heritage Bank, N.A. — Salem
H eritage Bank, N.A. — S teubenville
(change title to H eritage Bank)
The Eastern O hio Bank
The Firestone Bank of W a d sw o rth
The C o m m u n ity Savings Bank C o m pa n y
97
1 16
122
1 25
125
1 22
76
125
125
76
76
84
1 16
84
O klahom a
Tulsa
C o m m u n ity Bank & T rust C om pany
C o m m u n ity Banksite, Inc.
94
94
O regon
Hood River
Hood River C o u n ty Bank
Hood River C o u n ty Interim Bank (in
o rg a n iza tio n )
The C o m m u n ity Bank
First State Bank of O regon
First State Interim Bank of O regon
(in o rg a n iza tio n )
The U nion N ational Bank
of Lew isburg
The First N ational Bank of M illville
C entral C ou n ties Bank
N o rth e rn C entral Bank
126
Lake O swego
M ilw au kie
Pennsylvania
Lew isburg
M illv ille
State C ollege
W illia m s p o rt
S outh C arolina
C olu m b ia
Florence
T renton
Texas
A d d iso n
C ollege S ta tio n
Bankers T ru st of South C arolina
=irst-C itize n s Bank and T rust C om pany
o f S outh C arolina
The Peoples Bank of South C arolina, Inc.
The Bank of T re n to n
New A d d iso n State Bank (in
o rg a n iza tio n ; ch a n ge title to A d d iso n
State Bank)
A d d iso n State Bank
B a n k o fA & M
Texas A & M Bank (in o rg a n iza tio n;
ch a n ge title to Bank of A & M)
‘ Banks absorbed in "emergency" approvals under provisions of Section 18(c).
126
1 12
1 12
112
80
79
80
79
81
114
81
114
1 26
1 26
125
125
BANK ABSORPTIONS APPROVED BY THE CORPORATION
State
Town or City
Fort W o rth
H ouston
H u tch in s
Ja ckso n ville
Pasadena
Taft
Page
C o llegiate State Bank of Fort W o rth
(in o rg a n iza tio n ; ch a n ge title to
U niversity Bank)
New Riverside Bank (in o rg a n iza tio n ;
ch a n ge title to Riverside State Bank)
Riverside State Bank
U niversity Bank
A llied Cypress Bank (in o rg a n iza tio n )
A llied M e rca n tile Bank (in
o rg a n iza tio n)
A m e rica n Bank (in o rg a n iza tio n)
‘ A m e rica n N ational Bank
C o m m e rcial State Bank
Cypress Bank
M e rca n tile Bank o f H ouston (change
title to A llied M e rca n tile Bank)
New C o m m e rcial State Bank (in
o rg a n iza tio n)
New Port C ity Bank (in o rg a n iza tio n)
Port C ity State Bank
New South Central Bank (in
o rg a n iza tio n; ch a n ge title to S outh
Central Bank)
S outh C entral Bank
Allied Texas Bank (in o rg a n iza tio n )
Texas Bank and T rust C o m pa n y (change
title to A llied Texas Bank)
San Ja c in to State Bank
South S treet State Bank (in
o rg a n iza tio n; ch a n ge title to San Ja cin to
State Bank)
New First State Bank of Taft (in
o rg a n iza tio n; ch a n ge title to The
First State Bank of Taft)
The First State Bank of Taft
Utah
R ichfield
V alley Central Bank
VC Bank C o rp o ra tio n (in o rg a n iza tio n )
V e rm o n t
Barre
B u rlin g to n
Batreal, Inc.
M e rch a n ts Properties, Inc.
The M e rch a n ts Bank
V irg in ia
C h in co tea g u e
Bank of C h in co tea g u e , Inc.
(change title to Farm ers & M e rch a n ts
Bank — Eastern Shore)
Farmers & M e rch a n ts N ational Bank
in O nley
The C olo n ial Bank
Citizens and Farm ers Bank
O nley
P rovidence Forge
W est Point
67
125
125
125
1 25
126
126
124
124
126
126
126
126
12 6
126
126
126
126
126
125
125
126
126
126
126
87
87
87
105
105
86
86
O ther Areas
Puerto Rico
San Juan (Hato Rey)
San Juan (Rio Piedras)
S co tia b a n k de Puerto Rico
(in o rg a n iza tio n)
Banco M e rca n til de Puerto
Rico. Inc.
'B anks absorbed in "emergency" approvals under provisions of Section 18(c).
95
95
68
FEDERAL DEPOSIT INSURANCE CORPORATION
T ow n o r C ity
State
Halifax
Canada
A rg e n tin a
B uenos Aires
Bank
Page
Puerto Rican Branches — The Bank of
Nova Scotia
95
R osario Branch — Banco A lem an
T ra n sa tla n tico
93
BANKS INVOLVED IN ABSORPTIONS DENIED BY
THE FEDERAL DEPOSIT INSURANCE CORPORATION IN 1979
Pennsylvania
C o n n e au tville
W a rre n
The Farm ers N ational Bank of
C o n n e au tville
The Pennsylvania Bank and T rust
C o m pa n y
127
127
69
BANK ABSORPTIONS APPROVED BY THE CORPORATION
Resources
(in thousands
of dollars)
The E qu itab le T ru st
C om pany
Banking Offices
in Operation
Before
After
1,534,945
102
117
124,875
15
B altim ore, M aryland
to merge with
U n iv e rs ity N ational
Bank
Convenience and Needs of the Commu
nity to be Served. S e rvice s to be offe re d in
the relevant m arket by the resultant bank
w o uld not d iffe r m ate ria lly from those p re
sently o ffe re d by each p ro p o n e n t.
A va ila b le inform ation in d ica te s that no in
co n siste n cie s with the p u rp o se s of the C om
m unity R einvestm ent A c t a p p e a r to exist.
On the basis of the fo re g o in g inform ation,
the B oard of D ire cto rs has c o n c lu d e d that
a p p ro va l of the a p p lic a tio n is w arranted.
R ockville, M aryland
S um m ary rep o rt by A tto rn ey G eneral,
N o ve m b e r 13, 1978
The m erg in g banks are both w h o lly-o w n e d
s u b s id ia rie s of the sam e b a n k h o ld in g c o m
pany. As such, their p ro p o se d m erg e r is
e sse n tia lly a c o rp o ra te reo rg a n iza tio n and
w o u ld have no e ffe c t on co m p e titio n .
B asis for C o rpo ra tion A p p ro va l
Ja n u ary 24, 1979
The E q u ita b le Trust C om pany, Baltim ore,
M aryla n d (“ A p p lic a n t” ), an in su re d State
n o n m e m b e r b a n k w ith total re so u rce s of
$1 ,53 4 ,9 4 5 ,00 0 and total IPC d e p o sits of
$ 1 ,2 1 2 ,5 0 3 ,0 0 0 , has a p p lie d p u rsu a n t to
S ection 18(c) and oth er pro visio n s of the
F e d e ra l D e p o s it In s u ra n c e A c t, f o r th e
FDIC's p rio r c o n s e n t to m erge w ith U niversity
N ational Bank, R ockville, M aryland, with total
re s o u rc e s of $ 1 0 1 ,5 1 0 ,0 0 0 . The m e rg e r
w o u ld be u n d er the c h a rte r and with the title
of A p p lic a n t, and the fifteen existing, and one
a p p ro v e d but u n o pe n e d , b ra n ch e s of U ni
ve rs ity National Bank w ould be e sta b lish e d
as b ra n c h e s of the resultant bank.
The p ro p o n e n ts are both w h o lly-o w n e d
(e x c e p t d ire c to rs ’ q u a lifyin g sh a re s) s u b
s id ia rie s of E quita b le B a n co rpo ra tion , B alti
m ore, M aryland, a bank ho ld in g co m p a n y.
This rela tio n sh ip has existed sin ce 1974. The
p ro p o sa l is esse n tia lly a co rp o ra te re o rg a n i
zation a nd w o u ld not a ffe ct the stru ctu re of
c o m m e rc ia l b a n king or the co n ce n tra tio n of
b a n k in g reso u rce s w ithin the relevant m arket.
In vie w of the fo re g o in g , the Board of
D ire cto rs is of the o p in io n that the p ro p o se d
m e rg e r w o u ld not, in any se ctio n of the c o u n
try, su b s ta n tia lly lessen co m p e titio n , te n d to
cre a te a m on o p o ly, or in any other m anner be
in restra in t of trade.
Financial and Managerial Resources; Fu
ture Prospects. The p ro p o n e n ts ’ fin a ncia l
a nd m an a g e ria l reso u rce s are c o n s id e re d
a d e q u a te for the p u rp o se s of this p ro p o sa l.
F inancial and m an a g e ria l reso u rce s of the
resultant b a n k w o u ld be a c c e p ta b le and its
fu tu re p ro s p e c ts a p p e a r fa vo ra b le .
Resources
(in thousands
of dollars)
Bank o f V icksb u rg
Banking Offices
in Operation
Before
38,316
3
11,648
3
After
6
V icksb u rg ,
M ississip p i
(cha n g e title to The
A m e rica n Bank)
to merge with
The A m erican Bank
Clinton, M ississip p i
S um m ary re p o rt by A tto rn ey G eneral,
O cto b e r 13, 1978
We have review ed this p ro p o s e d tra n s a c
tion and c o n c lu d e th a t it w o u ld not have a
su b stan tia l c o m p e titive im pa ct.
Basis fo r C o rp o ra tio n A p p ro va l
Ja n u ary 24, 1979
B ank of V icksb u rg , M ississip p i (“ B V ” ), an
insured State n o n m e m b er ba n k with total
reso u rce s of $38 ,3 1 6 ,0 0 0 and total IPC d e
posits of $23,081,000, has a p p lie d , p u rsu a n t
to S ection 18(c) and other p ro visio n s of the
Federal D e p o sit In su ra n ce A ct, for the C or
p o ra tio n ’s p rio r co n se n t to m erg e with The
A m e rica n Bank, C linton, M ississip p i (“ A m e ri
c a n ” ), with total re so u rce s of $ 11,648,000
and total IPC d e p o s its of $5,807,000. The
banks w o u ld m e rg e u n d e r the ch a rte r of BV
and with the title of The A m e rica n Bank, and
incident to the m erger, the three offices of
A m e rica n w o u ld b e co m e b ra n ch e s of the
resulting bank, in cre a sin g the n u m b e r of a p
p ro ve d o ffices to seven.
Competition. BV, e s ta b lish e d in 1974, o p
erates three o ffice s in V icksb u rg , M ississip p i.
An a d d itio n a l b ra n ch has rece n tly been a p
p ro ve d fo r the city of Ja ckso n , M ississip p i,
a p p ro x im a te ly 40 m iles from its m ain office.
As of D e ce m b e r 31, 1977, BV was ranked as
the 63rd la rg e st co m m e rcia l b a n k in the
70
FEDERAL DEPOSIT INSURANCE CORPORATION
state, co n tro llin g a m od e st 0.36 p e rce n t of
the s ta te ’s co m m e rcial bank de p osits.
A m e rica n , e sta blish e d in 1973, o p e ra te s
its m ain o ffic e and one b ra n ch in Clinton,
M is s is s ip p i, and an a d d itio n a l b ra n ch in
Jackso n , M ississip p i, seven m iles east of the
m ain o ffic e . As of D e c e m b e r 31, 1977,
A m e rica n w as ranked as the 147th larg e st
c o m m e rcia l bank in the state, co n tro llin g a
n e g lig ib le 0.12 p e rc e n t of the s ta te ’s c o m
m ercial b a n k d e p osits.
The p ro p o s e d m erg e r w ould have its m ost
im m e d ia te c o m p e titiv e e ffe ct in A m e ric a n ’s
p rim a ry m arket area, co m p o se d of eastern
H inds C ounty, w estern Rankin County, and
the so u the rn p o rtio n of M adison C ounty.
Jackson, the c a p ita l of M ississip p i, is c e n
trally lo c a te d in this area. The 1970 p o p u la
tion of the area w as a p p ro xim a te ly 180,700
(inclu d in g 154,000 from the city of Ja ckso n ),
co m p a re d to a 1960 p o p ula tio n of 161,000
(inclu d in g 144,400 from the city of Ja ckso n ).
There are 88 o ffice s of 14 co m m e rcial banks
o p e ra tin g w ithin this m arket. A m e rica n c o n
trols o n ly 0.5 p e rc e n t of the m a rke t’s c o m
m ercial b a n k IPC d e p osits, m aking it the
fourth sm alle st c o m m e rcia l bank. The s ta te ’s
tw o la rg e st banks d o m in a te the m arket with
80.4 p e rc e n t of the co m m e rcial bank IPC
d e p osits. BV is not lo ca ted in the area and
the c lo se st e xisting b ra n ch e s of the tw o
banks are s e p a ra te d by a p p ro xim a te ly 40
miles. It th e re fo re a p p e a rs that there is no
sig n ific a n t existing c o m p e titio n betw een the
tw o banks that w o uld be e lim inated by the
p ro p o s e d m erger.
The p ro p o n e n ts ’ legal b ra n ch in g areas,
un d er M ississip p i ba n king laws, o ve rla p to a
g re a t extent. BV has a p p ro va l to o pen a
branch in Jackso n , a p p ro xim a te ly 3 m iles
from a b ra n ch of A m e rica n . The p ro p o sa l will
the re fo re elim inate futu re co m p e titio n b e
tw een the p ro p o n e n ts.
C o n sid erin g the m od e st share of the m ar
ket held by A m e rica n and the co m p e titio n
p ro v id e d by the s ta te ’s tw o la rg e st b a n king
o rg a n iza tio ns, the elim ination of this p otential
co m p e titio n is of little s ig n ifica n ce .
Based on the fo re g o in g , the Board of Di
rectors is of the op in io n that the p ro p o se d
m erg e r w o u ld not, in any section of the co u n
try, s u b sta n tia lly lessen co m p e titio n , tend to
crea te a m on o p o ly, or in any other m anner be
in restraint of trad e .
Financial and Managerial Resources; Fu
ture Prospects. C o n sid e ra tio n s relating to
fin a n c ia l and m a n a g e ria l re so u rce s have
been s a tis fa c to rily resolved, and the resultant
bank is a n tic ip a te d to have fa vo ra b le fu tu re
p ro s p e c ts .
Convenience and Needs of the Community
to be Served. The p ro p o se d m erg e r w ould
have little e ffe ct on the c o n ve n ie n ce and
needs of the se rvice area, other than p ro v id
ing the resulting b a n k with a hig h er le nding
limit. C o n sid e ra tio n s of c o n v e n ie n c e and
needs of the co m m u n ity are nevertheless
co n sisten t with a p p ro va l of the a p p lica tio n .
A va ila b le in form ation in d ica te s that no in
co n siste n cie s with the p u rp o se s of the C om
m unity R einvestm ent A ct a p p e a r to exist.
Based on the fo re g o in g , the Board of Di
rectors has c o n c lu d e d that a p p ro va l of the
a p p lica tio n is w a rra n te d .
Resources
(in thousands
of dollars)
The H ongkong Bank
of C alifornia
Banking Offices
in Operation
Before
After
142,018
6
47
500,714
41
San F ra n cisco ,
C alifornia
(cha n g e title to
Central Bank)
to merge with
Central Bank
O akland, C a lifornia
S um m ary re p o rt by A tto rn ey G eneral,
N o ve m b e r 17, 1978
We have review ed this p ro p o se d tra n s a c
tion and c o n c lu d e th a t it w o uld not have a
sub stan tia l co m p e titive im pact.
Basis for C o rpo ra tion A p p ro va l
January 24, 1979
Pursuant to S ection 18(c) and other p ro v i
sions of the Federal D ep o sit Insu ra n ce Act,
an a p p lic a tio n has been file d on b ehalf of The
H o n g ko ng Bank of C alifornia, San F rancisco,
C a lifornia (“ H K B ” ), an insu re d State non
m e m b e r b a n k w ith to ta l re s o u r c e s of
$ 1 4 2 ,0 1 8 ,0 0 0 a n d to ta l IPC d e p o s its of
$106,1 2 2 ,0 0 0, fo r the C o rp o ra tio n ’s p rio r
co n se nt to m erge, u n d er its charter, with
Central Bank, O a kla nd , C alifornia, also an
insured State n o n m e m b er bank, with total
reso u rce s of $ 5 0 0,714,000 and total IPC d e
p osits of $ 404,940,000, and to esta blish the
41 o ffice s of C entral Bank as b ra n ch e s of the
resultant b a n k w hich w ould co m m e n ce o p e r
ation with a total of 47 o ffice s and bear the
title “ C entral B a n k” . In cid e n t to the tra n s a c
tion, the m ain o ffice lo ca tio n of the resultant
bank w o u ld be c h a n g e d to the p re se n t site of
the m ain o ffice of Central Bank.
BANK ABSORPTIONS APPROVED BY THE CORPORATION
Competition. The H o n g ko ng and Shanghai
Banking C o rpo ra tion (“ H & S ” ), p arent of HKB,
has p ro p o s e d the a cq u isitio n of a m ajor
interest in M arine M idla n d Banks, Inc., a
large N ew York State b a n king org a n iza tio n.
As restra in ts bar H&S from h o ld in g the c o n
tro llin g in te re s t in b o th M a rin e M id la n d
Banks, Inc., and HKB, ah a tte m p t has been
m ade to sell, or o th erw ise d isp o se of, the
o ffices and c o m m e rcia l ba n king b u siness of
the C a lifo rn ia -b a se d bank.
HKB, b a se d in San F ra n cisco , o p e ra te s six
b a n king o ffic e s in C alifornia; tw o in the city of
San F ra n cisco , and one each in the citie s of
S acram ento, Beverly Hills, C arson and Los
A ng e le s. C entral Bank, b a se d in O akland,
o p e ra te s 41 o ffic e s in 12 co u n tie s of C alifor
nia w ith m ost of its o ffices lo ca ted in the East
Bay R egion of the San F ra n cisco -O a kla n d
m etro p o lita n area and in the central portion of
the state in the S a cra m e n to and San Joa q uin
Valleys. A sin g le o ffic e is also o p e ra te d at
Long Beach in the Los A n g e le s m etro p o lita n
area.
There are three relevant m arkets in w hich
to a ssess the c o m p e titive im p a ct of the p ro
p o se d tra n sa ctio n . The p ro p o n e n ts ’ clo se st
o ffices are lo ca te d in the S a cra m e n to area,
a p p ro x im a te ly one m ile apart, and are re
g a rd e d as be in g in d ire c t co m p e titio n in this
relevant m arket. O ffice s of the p ro p o n e n ts in
the San F ra n c is c o -O a kla n d area a n d in the
Los A n g e le s -L o n g B each area, w hile not in
clo se p ro xim ity and s e p a ra te d by num erous
inte rve n in g b a n king o ffices, are vie w e d as
c o m p e tin g in the sam e re sp e ctive m arkets.
In each of these m arkets the p ro p o n e n ts
hold less than 1.0 p e rc e n t of the re sp e ctive
m a rk e t’s c o m m e rcia l b a n k d e p o sit base and
rank am ong the sm aller co m m e rcial banks by
such a m easure. All three m arkets are re
g a rd e d as be in g h ig h ly co n ce n tra te d , with
the th re e la rg e st b a n king o rg a n iza tio ns re p
re s e n te d th e re in a g g re g a te ly c o n tro llin g
betw een 64.5 p e rc e n t and 78.0 p e rce n t of
the re s p e c tiv e m a rk e t’s d e p o s it base. In light
of the relatively nom inal volum e of d e p o sits
held by the p ro p o n e n ts in these m arkets, the
c o n su m m a tion of the p ro p o s e d tra n sa ctio n is
re g a rd e d as having no sig n ifica n t a d ve rse
e ffe c t upon existing c o m p e titio n or u pon the
stru ctu re of c o m m e rc ia l ba n king co m p e titio n
in any of th e se relevant areas.
In the State of C alifornia, C entral Bank
ranks as the 13th la rg e st ba n k in share of
total co m m e rcial b a n k d e p o sits held w hile
HKB ranks as the 44th la rg e st b a n k in share
of such fu n ds. The resultant bank, w hich
w ould rank as the S ta te ’s 12th la rg e st bank,
w o uld hold only 0.5 p e rce n t of C a lifo rn ia ’s
c o m m e rc ia l bank d e p o sits, a share s ig n ifi
71
ca n tly sm alle r than th o se held by other,
la rg e r sta te w ide b a n kin g o rg a n iza tio ns. The
p ro p o se d m erg e r of C entral Bank and HKB is
vie w e d as having little e ffe ct u pon the s tru c
ture of co m m e rcial b a n king or the c o n c e n tra
tion of b a n king reso u rce s in California.
C a lifo rn ia sta tu te s p e rm it s ta te w id e de
novo b ra n ch in g and m erg e r a ctivity. H K B ’s
pare n t has in d ic a te d its intention to sell the
bank, thus c o n sid e ra tio n of its poten tia l e x
pa n sion a c tiv itie s is not rele va n t to this
analysis. Central B a n k’s a cq u isitio n of H K B ’s
sin g le ba n king o ffice in S a cra m e n to and
three o ffices in the Los A n g e le s area are
view ed as having an in sig n ifica n t e ffe ct on
potential de novo en try d ue to the nu m b e r of
existing o ffice s of other co m m e rcia l banks
and the c o n c e n tra te d nature of th e se b a n k
ing m arkets. Central Bank, w h ich cu rre n tly
has no o ffice s in the city of San F rancisco,
m ust, how ever, be re g a rd e d as a p otential de
novo b ra n ch in g e n tra n t to that city. San F ran
cisco , it is noted, is h e avily ba n ked , with a
n u m ber of large, sta te w id e ba n king o rg a n i
zations b a se d in the city and d o m in a tin g its
co m m e rcial b a n kin g activitie s. The p ro p o se d
tran sa ctio n thus, w o u ld have little im p a ct on
the p otential for co m p e titio n betw e en the
pro p o n e n ts.
U nder the circ u m s ta n c e s , the Board of
D irectors is of the o p in io n th a t the p ro p o se d
m erg e r w o u ld not, in any se ctio n of the c o u n
try, su b sta n tia lly lessen co m p e titio n , te n d to
create a m o n o p o ly, or in any o th e r m an n e r
be in restraint of trad e .
Financial and Managerial Resources; Fu
ture Prospects. C o n sid e ra tio n s relating to the
m anagerial reso u rce s of the p ro p o n e n ts and
of the resultant b a n k have been sa tisfa cto rily
resolved. E quity ca p ita l of the resu lta n t bank
and of its parent, C entral B anking System ,
Inc., on a c o n so lid a te d basis, after g ivin g
co n sid e ra tio n to the p ro je c te d im p a c t of the
p ro p o se d m erg e r, is b e lo w d e sire d levels. It
w ould a p p e a r that the ca p ita l s tru ctu re of
both the resu lta n t b a n k and of its p a re n t is in
need of p e rm a n e n t a d d itio n a l e q u ity ca p ital
fu n ds, in o rd e r to p ro p e rly s u p p o rt the instant
m erg e r p ro p o sa l. With the a d d itio n of such
ad d itio n a l e q u ity fu n ds, the resultant bank
and its p a re n t w o u ld a p p e a r to have fa v o ra
ble fu tu re p ro sp e cts.
Convenience and Needs of the Community
to be Served. S ervices to be o ffe re d by the
resultant b a n k w o u ld not d iffe r m ate ria lly from
those p re se n tly a va ila b le th ro u g h either p ro
po n en t or at other b a n kin g o rg a n iza tio ns.
C o n sid era tio ns of co n ve n ie n ce and needs of
the co m m u n ity are neve rth e le ss co n siste n t
with a p p ro va l of the tran sa ctio n .
A va ila b le inform ation in d ica te s that no in
72
FEDERAL DEPOSIT INSURANCE CORPORATION
co n s is te n c ie s with the p u rp o se s of the C om
m unity R einvestm ent A ct a p p e a r to exist.
B ased on the fo re g o in g inform ation, the
B oard of D ire cto rs has c o n c lu d e d th a t a p
proval of the a p p lic a tio n is w arranted.
Resources
(in thousands
of dollars)
B arn ett Bank of
Daytona Beach
56,246
Banking Offices
in Operation
Before
2
After
3
Financial and Managerial Resources; Fu
ture Prospects. The p ro p o n e n ts ’ fin a ncia l
D aytona Beach,
Florida
and m an a g e ria l reso u rce s are co n sid e re d
a d e q u a te for the p u rp o se s of this p ro p o sa l.
F inancial and m an a g e ria l reso u rce s of the
resultant b a n k w ould be sa tisfa cto ry and its
futu re p ro s p e c ts a p p e a r fa vo ra b le .
(cha n g e title to
B arnett Bank of
Volusia C ounty)
to merge with
B arn ett Bank of
DeLand, N ational
A s s o c ia tio n
Inc., Ja ckso n ville , Florida, a re g iste re d bank
h o ld in g co m p a n y, m ay co n so lid a te its o p e r
ations in V olusia County. A p p lic a n t a nd O ther
Bank have been u n d er com m on o w n e rsh ip
and con tro l sin ce A p p lic a n t was e sta b lish e d
in Ja n u a ry of 1971, a nd th e ir p ro p o s e d
m erg e r w o u ld not a ffe ct the stru ctu re of
co m m e rcial ba n king or the c o n ce n tra tio n of
b an king reso u rce s w ithin the relevant m arket.
The B oard of D ire cto rs is of the o p in io n that
the tran sa ctio n w ould not, in any se ctio n of
the country, su b sta n tia lly lessen co m p e titio n ,
tend to crea te a m onopoly, or in any other
m anner be in restraint of trade.
87,255
1
D eLand, Florida
S um m ary rep o rt by A tto rn ey G eneral,
O c to b e r 3, 1978
The m erg in g banks are both w h o lly-o w n e d
s u b s id ia rie s of the sam e bank h o ld in g c o m
pany. As such, th e ir p ro p o se d m erg e r is
e ssentially a c o rp o ra te reo rg a n iza tio n and
w ould have no e ffe c t on co m p e titio n .
Convenience and Needs of the Community
to be Served. S ervices to be o ffe re d in the
relevant m arket by the resultant b a n k w ould
not d iffer m aterially from those p re se n tly of
fe re d by each p ro p o n e n t.
A va ila b le inform ation in d ica te s that no in
c o n siste n cie s with the p u rp o se s of the C om
m unity R einvestm ent A ct a p p e a r to exist.
On the basis of the fo re g o in g inform ation,
the B oard of D ire cto rs has c o n c lu d e d that
a p p ro va l of the a p p lic a tio n is w arra n te d .
B asis for C o rp o ra tio n A p p ro va l
Ja n u ary 24, 1979
B arnett Bank of D aytona Beach, D aytona
B each, F lo rid a ( "A p p lic a n t” ), an in su re d
State n o n m e m b er bank with total reso u rce s
of $56,246,000 and total IPC d e p o sits of
$43,593,000, has a p p lie d , p u rsu a n t to S e c
tion 18(c) and o ther p ro visio n s of the Federal
D eposit In su ra n ce A ct, fo r the C o rp o ra tio n ’s
p rior co n s e n t to m erge, u n d er its charter, with
Barnett Bank of D eLand, National A s s o c ia
tion, D eLand, F lorida (“ O ther B a n k” ), with
total reso u rce s of $ 8 7 ,255,000 and total IPC
d e p o s its of $76,882,000, and to esta blish the
sole o ffice of O ther Bank as a b ra n ch of the
resultant b a n k w h ich w o u ld co m m e n ce o p e r
ation w ith a total of th re e o ffices and with the
title “ B arnett Bank of V olusia C o u n ty” . In ci
d e n t to the tra n sa ctio n , the main o ffice lo c a
tion of the resu lta n t b a n k w ould be d e s ig
nated as the p re se n t site of the m ain o ffice of
O ther Bank.
Competition. E ssentially a c o rp o ra te reo r
ga n izatio n , the p ro p o sa l w ould p ro vid e a
m eans by w hich B arnett Banks of Florida,
Resources
(in thousands
of dollars)
E m ig rant S avings
Bank
Banking Offices
in Operation
Before
After
2 ,524,353
15
30
751,045
15
N ew York
(M anhattan), New
York
to merge with
P rud en tial S avings
Bank
N ew York
(M anhattan), New
York
S um m ary rep o rt by A tto rn ey G eneral,
no rep o rt received.
Basis for C o rpo ra tion A p p ro val
F ebruary 16, 1979
Pursuant to S ection 18(c) and other p ro vi
sions of the Federal D ep o sit Insu ra n ce Act,
E m ig ra n t S a vin g s Bank, N ew Y ork (P.O.
BANK ABSORPTIONS APPROVED BY THE CORPORATION
M anhattan), New York (“ E m ig ra n t” ), an in
sured m utual savin g s b ank with total re
s o u rce s of $ 2 ,5 2 4 ,3 5 3 ,00 0 and total d e p osits
of $2,33 4 ,5 4 0 ,00 0 , has a p p lie d for the C or
p o ra tio n ’s p rio r c o n se n t to m erge, u n d er its
ch a rte r and title, w ith Prudential Savings
Bank, New York (P.O. M anhattan), N ew York
(“ P ru d e n tia l” ), an insured m utual savings
bank w ith total reso u rce s of $ 7 51,045,000
and total d e p o s its of $701,918,000. In cid en t
to the tran sa ctio n , the fifteen o ffices of Pru
de ntial w o u ld be e sta b lish e d as b ra n ch e s of
the resultant ba n k w hich w o uld co m m e n ce
o p e ra tio n with a total of thirty o ffices.
Competition. Em igrant, based in M anhat
tan, o p e ra te s a total of 15 o ffice s in New York
(M anhattan), Q ueens, Nassau and Suffolk
C o unties and has rece ive d reg u la to ry a p
p ro v a l to e s ta b lis h a b ra n c h o ffic e in
W e stch e ster County. Prudential, also based
in M anhattan, o p e ra te s 15 offices in New
York (M anhattan), Kings (B rooklyn), Nassau
and W e stch e ster Counties. Each p ro p o n e n t
has been involved in m erg e r tran sa ctio n s
sin ce 1969 with other th rift in stitutions based
w ithin N ew York City.
N either E m igrant nor Prudential holds a
s ig n ific a n t share of the th rift institution d e
p o sit base in any of the co u n tie s in w hich the
p ro p o n e n ts are re p re s e n te d . In N assau,
W e stch e ster and K ings Counties, the resul
tant institution w o uld hold only 2.6 pe rce n t,
0.4 p e rc e n t and 1.7 p e rce n t, resp e ctive ly, of
the c o u n ty ’s th rift d e p osits, a m arket share
w h ich in e ach ca se is su b sta n tia lly lower than
the share held by o ther large thrift institutions
rep re se n te d therein. In N ew York C ounty
(M anhattan), E m igrant is ranked as the third
la rg e st thrift institution h o ld in g 7.4 p e rce n t of
th a t co u n ty's th rift in s titu tio n d eposits and as a
c o n s e q u e n c e o f th e p ro p o s e d m e rg e r w o u ld
a c q u ire P ru d e n tia l's 1.6 p e rc e n t share of
su ch fu n d s . T his w o u ld have no e ffe c t u p o n
th e re s u lta n t in s titu tio n 's ra n kin g and is n o t
re g a rd e d as h a vin g any s ig n ific a n t e ffe c t on
the s tru c tu re of th rift in s titu tio n banking in th is
area. In the c o m b in e d fo u r-co u n ty area of
New York, Kings, W e stch e ster and Nassau,
in w h ich P rudential is p re se n tly rep resented,
the resultant bank w o uld a g g re g a te ly hold
only 5.1 p e rc e n t of the a re a ’s thrift institution
d e p o sits, a share sig n ifica n tly sm aller than
the shares held by the three larger m utual
sa vin g s banks ba se d therein.
The five b o rro u g h s of New York City and
th e n e ig h b o r in g c o u n tie s of R o c k la n d ,
W e stch e ster, Suffolk and Nassau are re
g a rd e d as having clo se e co n o m ic ties, with a
la rg e p o rtio n of the w ork fo rce e m p lo ye d with
N ew York City. The p re se n ce of com m on
a d v e r tis in g a n d c o m m u n ic a tio n m e d ia
73
th ro u g h o u t the m e tro p o lita n area serves as
a d d itio n a l e v id e n ce of e co n o m ic integration.
The resultant institution in this m etro p o lita n
area, sim ilarly, w o uld con tro l less than 5.0
p e rc e n t of the thrift institution d e p o sits and
the p ro p o se d tra n sa ctio n is vie w e d as having
no s ig n ifica n t e ffe ct upon the structu re of
thrift institution b a n king in such an area.
W hile som e e xisting co m p e titio n betw een
Em igrant and Prudential w ould be e lim inated
by the co n su m m a tion of the p ro p o se d tran s
action, no sig n ifica n t a d ve rse e ffe ct on co m
p etition is in e vid e n ce as num erous other
la rg e thrift institution alte rn a tive s are a va il
able in each of the areas served by the
pro p o n e n ts. In the New York, Kings, Nassau
a n d W e stch e ste r C o u n ty area, o ve r 500
ban king o ffice s are o p e ra te d by a total of 110
thrift institutions, of w h ich the resultant bank
w ould o p e ra te only 23. The co n tinu a tio n of a
c o m p e titive thrift institution ba n king e n viro n
m ent seem s assured.
E m igrant ranks as the fifth la rg e st and
Prudential as the 39th la rg e st m utual savings
bank in N ew York State. W hile each is p e r
m itted to b ra n ch and m erg e th ro u g h o u t the
state, and thus, som e p o tential for in cre a se d
co m p e titio n in the fu tu re betw e en them w ould
be e lim inated by the p ro p o se d tran sa ctio n ,
New York statutes restrict de novo b ranch
exp a nsio n by m utual sa vin g s banks to one
such o ffice per year. This sta tu to ry b ra n ch in g
restraint and the p re se n ce of num erous other
large thrift institutions m ake this loss of p o
tential co m p e titio n in sig nifica n t.
U nder the circu m sta n ce s, the Board of
D irectors is of the op in io n that the p ro p o se d
m erg e r w ould not, in any section of the c o u n
try, su b sta n tia lly lessen co m p e titio n , tend to
c rea te a m onopoly, or in any other m anner be
in restraint of trade.
Financial and Managerial Resources; Fu
ture Prospects. P ru d e n tia l’s fin a ncia l c o n d i
tion is re g a rd e d as less than d e sira b le as a
result of low ca p ita liza tio n , a high vo lu m e of
nonearning assets, p oor e a rn in g s retention
and in a d e q u a te loan su p e rvisio n , w hile the
fin a ncia l c o n d itio n of E m igrant has p roven to
be sound and g e n e ra lly free of such c riti
cism . The resultant institution should have the
reso u rce s to c o rre c t such d e fic ie n c ie s w ithin
the fram e w o rk of a fin a n cia lly so u n d thrift
institution. C o n sid era tio ns relating to m an
a gerial reso u rce s and the fu tu re p ro s p e c ts of
the resultant institution have been s a tis fa c
torily resolved. These c o n sid e ra tio n s w ould
outw e igh such lim ited a d ve rse c o m p e titive
e ffe cts as m ay exist.
Convenience and Needs of the Community
to be Served. Som e b e n efit w o uld a cc ru e to
the p u b lic from the p ro p o se d b ro a d e n in g of
74
FEDERAL DEPOSIT INSURANCE CORPORATION
d e p o s ito ry se rvice s o ffered and e xp a n d e d
b a n king hours at the p re se n t o ffice s of Pru
d en tia l, how ever, the p ro p o se d tra n sa ctio n is
e x p e c te d to have little m aterial im p a ct upon
c o n v e n ie n c e and needs as such se rvice s are
re a d ily a va ilab le at o ffice s of other thrift in
s titu tio n s in the areas served by the p ro p o
nents. C o n sid era tio ns relating to c o n v e n i
e n ce and needs of the co m m u n ity to be
se rve d are, how ever, co n siste n t with a p
proval of the tran sa ctio n .
A va ila b le inform ation in d ica te s that no in
co n s is te n c ie s with the p u rp o se s of the C om
m unity R einvestm ent A c t a p p e a r to exist.
B ased on the fo re g o in g , the B oard of Di
recto rs has c o n c lu d e d that a p p ro va l of the
a p p lic a tio n is w arranted.
Resources
(in thousands
of dollars)
F irst T ru st and
D e po sit C om pany
Banking Offices
in Operation
Before
509,811
44
27,214
2
After
46
S yracuse, N ew York
to merge with
G enesee Valley
N ational Bank and
T ru s t C om pany o f
G eneseo
G eneseo, New York
S um m ary rep o rt by A tto rn ey G eneral,
O c to b e r 20, 1978
We have revie w e d this p ro p o se d tra n s a c
tion and c o n c lu d e that it w ould not have a
s ig n ific a n tly a d ve rse e ffe ct upon c o m p e ti
tion.
Basis for C o rpo ra tion A p p ro val
F eb ru a ry 16, 1979
First Trust and D e p o sit C om pany, S yra
cuse, New York (“ First T ru st” ), an insured
State n o n m e m b er bank with total resources
of $ 5 0 9,8 1 1 ,0 0 0 and total IPC d e p o sits of
$ 3 9 0,453,000, has a p p lie d , pursu a n t to S e c
tion 18(c) and other p ro visio n s of the Federal
D e p o sit In su ra n ce A ct, for the C o rp o ra tio n ’s
p rio r c o n s e n t to m erge, u n d er its ch a rte r and
title, w ith G enesee Valley N ational Bank and
Trust C o m pa n y of G eneseo, G eneseo, New
York (“ G enesee V a lle y” ), with total reso u rce s
of $ 2 7 ,2 1 4 ,0 0 0 and total IPC d e p o sits of
$19,61 8 ,0 0 0 . G e n ese e V a lle y’s tw o o ffice s
w o u ld be o p e ra te d as b ra n ch e s of the resul
tant bank.
Competition. The ba n king m arket m ost rel
evant to an evaluation of the co m p e titive
im p a ct of the p ro p o se d tra n sa ctio n w o uld be
an area w ithin fifteen road m iles of G eneseo,
w h ic h w o u ld in c lu d e th e m a jo r ity o f
Livin gsto n County, and the a d jo in in g p o rtio n s
of G e n ese e and W yom ing C ounties. M uch of
the area is rural with both a g ricu ltu ra l and
industrial a ctivitie s in e vid e n ce . The tow n of
G e n ese o (1970 p o p u la tio n 7,278) serves as
the e co n o m ic ce n te r of the area by virtue of
its size relative to the su rro u n d in g c o m
m unities and the p re se n ce of a b ra n ch of the
state university. The area, with the e xce p tio n
of the town of G eneseo, has e xp e rie n ce d
only a m od e st p o p ula tio n g row th, and its
m ed ia n bu yin g levels are be lo w the 1977
state m edian.
In the relevant m arket, a total of nine co m
m e rc ia l b a n k s o p e ra te s ix te e n o ffic e s .
G enesee Valley, w hich ranks as the m a rke t’s
th ird la rg e st bank, h olds 14.5 p e rc e n t of its
IPC d e p o s it b a se , a s h a re s ig n ific a n tly
sm aller than those held by the m a rke t’s tw o
la rg e r in stitutions w hich a g g re g a te ly control
4 8 .6 p e rc e n t of such funds. N either First
Trust nor any affiliate of its p arent, First
C o m m e rcial Banks, Inc., is rep re se n te d in
this m arket, and G enesee Valley d o e s not
a p p e a r to be e n g a g e d in any s ig n ifica n t
d ire c t c o m p e titio n with this ba n king o rg a n i
zation. The p ro p o n e n ts ’ nearest o ffices are
lo ca te d a p p ro xim a te ly 65 m iles a p a rt and no
o ffice of an affiliate is lo ca ted closer. The
p ro p o se d tran sa ctio n is vie w e d as having no
s ig n ific a n t e ffe ct on e xistin g co m p e titio n .
R ep re se n te d in the relevant m arket are af
filiates of several of the s ta te ’s la rg e st b a n k
ing o rg a n iza tio ns p ro vid in g intense c o m p e ti
tion. Thus, the a cq u isitio n of this relatively
sm all local institution by a ban king o rg a n iz a
tion b a se d in the central and eastern portio n s
of the state w ould have no m aterial a d ve rse
im p a c t on the stru ctu re of co m m e rcial b a n k
ing in the relevant m arket.
New York State statutes p e rm it sta te w ide
de novo b ra n ch in g , su b je c t to hom e o ffice
p ro te ctio n in co m m u n ities with a p o p ula tio n
of 5 0 ,000 or less. First Trust is thus p re c lu d e d
from de novo e xpansion into G eneseo, and
the p ro p o se d tra n sa ctio n will serve as an
entry m echanism p e rm ittin g First Trust to
e sta blish a p re se n ce in this local m arket.
G enesee Valley, d u e to its relatively m odest
size, do e s not a p p e a r to be in a po sitio n to
m ount any m eaningful e xp a nsio n ca m p a ig n
into areas rem oved from its p re se n t base of
o p e ra tio n . A c c o rd in g ly , the p ro p o se d tra n s
a ctio n w o u ld not elim inate any s ig n ifica n t
poten tia l for c o m p e titio n b etw een the p ro p o
nents.
BANK ABSORPTIONS APPROVED BY THE CORPORATION
B ased upon the fo re g o in g , the B oard of
D ire cto rs is of the op in io n that the p ro p o se d
tra n sa ctio n w o u ld not, in any se ctio n of the
c o u n try , s u b s ta n tia lly lessen co m p e titio n ,
te n d to c re a te a m onopoly, or in any other
m anner be in restra in t of trad e .
Financial and Managerial Resources; Fu
ture Prospects. Both banks have sa tisfa cto ry
fin a ncia l and m an a g e ria l resources, as w ould
the resultant b a n k w h ich is a n ticip a te d to
have fa v o ra b le fu tu re p ro sp e cts.
Convenience and Needs of the Community
to be Served. S ervices to be offe re d by the
resultant b a n k w o uld not d iffe r m aterially from
th o se a lre a d y a va ilab le in the m arket at other
b a n king org a n iza tio ns. As co n su m m a tion of
the p ro p o s e d tra n sa ctio n will m ake a va ilab le
an a d d itio n a l s o u rc e of such se rvice s in the
co m m u n ity, c o n s id e ra tio n s of co n ve n ie n ce
and ne e ds a p p e a r co n siste n t with a p p ro va l
of the a p p lic a tio n .
A va ila b le inform ation in d ica te s that no in
c o n s is te n c ie s with the p u rp o se s of the C om
m unity R einvestm ent A c t a p p e a r to exist.
On the basis of the fo re g o in g inform ation,
the B oard of D ire cto rs has c o n c lu d e d that
a p p ro va l of the a p p lic a tio n is w arranted.
Resources
(in thousands
of dollars)
A lb an y S aving s Bank
Banking Offices
in Operation
Before
After
9 1 7,365
14
21
24 3,189
7
A lb a n y, N ew York
to merge with
H eritage S avings
Bank
K ingston, New York
Sum m ary rep o rt by A tto rn e y G eneral,
F eb ru a ry 26, 1979
We have revie w e d this p ro p o se d tra n s a c
tion and c o n c lu d e th a t it w ould not have any
s ig n ific a n t e ffe c t on co m p e titio n .
Basis for C o rp o ra tio n A p p ro va l
M arch 20, 1979
A lb a n y Savings Bank, A lb a n y, New York,
an insu re d m utual s a vin g s bank with total
reso u rce s of $917,3 6 5 ,0 0 0 and total d e p o sits
of $851,439,000, has a p p lie d , p u rsu a n t to
S ection 18(c) and other p ro visio n s of the
Federal D e p o sit In su ra n ce A ct, fo r the C or
p o ra tio n ’s p rio r co n s e n t to m erge, u n d e r its
c h a rte r and title, with H e rita g e S avings Bank,
K ingston, N ew York, an insured m utual sa v
in g s
bank
w ith
to ta l
re s o u rc e s
of
75
$ 2 4 3 ,1 8 9 ,0 0 0
and
to ta l d e p o s its
of
$228,965,000. In cid e n t to the tra n sa ctio n , the
se ve n o ffic e s of H e rita g e S a vin g s B ank
w ould be e s ta b lish e d as b ra n ch e s of A lb a n y
S avings Bank w h ich w o u ld co m m e n ce o p e r
ation with a total of 21 o ffices.
Competition. A lb a n y S avings Bank o p e r
ates 14 o ffice s in the ce n tra l a nd northern
p ortions of New York State. B ra n ch es in
G lens Falls, Jo h n sto w n , Troy and O n e ida
have been a c q u ire d sin ce 1970 th ro u g h
m erg e r tra n sa ctio n s w ith four S ta te -ch a rte re d
s a v in g s and loan a s s o c ia tio n s . H e rita g e
S avings Bank o p e ra te s a total of seven of
fice s in three c o u n tie s of the H u d so n River
V alley of so u the a ste rn New York State. In
1974, H e rita g e S a v in g s B ank, b a s e d in
K ingston in northern U lster C ounty, m erg e d
w ith B e a c o n S a v in g s B a n k , a c q u ir in g
bra n ch e s in the southern p ortion of D u tch e ss
C o u n ty a n d re s o u rc e s of a p p ro x im a te ly
$58,000,000. The p ro p o n e n ts ’ nearest o ffices
are in exce ss of 50 road m iles a p a rt, w ith a
n u m b e r of other th rift institution o ffice s se rv
ing the in te rve n in g area. The tw o in stitutio n s
d o not a p p e a r to be in d ire c t co m p e titio n to
any sig n ifica n t d e g re e a nd the p ro p o s e d
tran sa ctio n is re g a rd e d as having little e ffe ct
upon existing co m p e titio n .
The area in w h ich the co m p e titive im p a c t of
the p ro p o se d tra n sa ctio n w ould be m ost d i
rect and im m e d ia te is re g a rd e d as the area
w ithin an a p p ro x im a te 15 road m ile rad iu s of
the re sp e ctive citie s of K in g sto n a nd B eacon.
T hese tw o, e s s e n tia lly a d jo in in g re le va n t
m arkets, o ve rla p o nly to a lim ited e xte nt in the
vicin ity of P o u g h ke e p sie w here a lo ca llyb ased m utual sa vin g s b a n k d o m in a te s the
local thrift institution b a n king .
Kingston (1970 p o p u la tio n 25 ,54 4 ) is the
Ulster C ounty seat, lo ca te d in the n o rth e a st
ern p ortion of the co u n ty a p p ro x im a te ly 90
road m iles north of New York C ity a nd a p
p ro xim a te ly 60 road m iles south of A lb a n y.
The e co n o m y of the K in g sto n area is p re d i
ca te d upon a m ix of lig h t industry, a g ric u l
ture, d a iry fa rm in g a nd tourism . The m ou n
tains and fo re sts th a t lie to the w e st of K in g s
ton serve as a p o p u la r recre a tio na l area. The
citie s of B eacon a nd P o u g h ke e p sie (1970
pop ula tio n 13,255 and 32,029, re sp e ctive ly)
are c h ie f e c o n o m ic c e n te rs of D u tch e ss
C o u n ty, w ith P o u g h k e e p s ie lo c a te d a p
p ro xim a te ly e q u id is ta n t b etw een N ew York
City and A lb a n y. The a re a ’s e co n o m jc a c tiv
ity is well d ive rsifie d with e le ctro n ics, a p
parel, fo o d p ro ce ssin g , textiles, p a p e r p ro d
ucts and oth er m a n u fa ctu rin g of sig n ific a n c e .
A large IBM c o m p le x near P o u g h ke e p sie is
the a re a ’s la rg e st e m p lo ye r with its h ig h ly
skilled w orkers c o n trib u tin g to the relatively
h ig h m e d ia n h o u s e h o ld b u y in g le ve l of
76
FEDERAL DEPOSIT INSURANCE CORPORATION
D utchess C ounty in relation to c o m p a ra b le
fig u re s for a d jo in in g areas and for the state.
In the K ingston relevant m arket, a total of
nine th rift institutions o p e ra te 16 ba n king
offices. H e rita g e S avings Bank, w h ich holds
20.4 p e rc e n t of the m a rke t’s th rift in stitution
d e p o sits, ranks as its se co n d la rg e st thrift
institution. In the B eacon relevant m arket, a
total of 14 th rift institutions o p e ra te 37 b a n k
ing offices. H e rita g e Savings Bank, w hich
holds 7.7 p e rc e n t of the thrift in stitution d e
posits in this m arket, ranks as the fourth
larg e st th rift institution. A lb a n y Savings Bank
is not re p re s e n te d in either of these m arkets.
H e rita g e S avings B a n k’s S pring Valley o f
fic e is lo c a te d in R ockland County, m ore than
70 road m iles south of K ingston, and is re
g a rd e d as c o m p e tin g in a se p a ra te , d ista nt
local m arket. This office, w hich h olds a m o d
est 4.4 p e rc e n t of R ockland C o u n ty ’s thrift
institution d e p o s its , ranks am ong the a re a ’s
s m a lle r th rift in s titu tio n s . The p ro p o s e d
tra n s a c tio n w o u ld have little e ffe c t u pon
co m p e titio n or u pon the stru ctu re of thrift
institution b a n king in this relatively d ista nt
area.
The p ro s p e c ts of m eaningful co m p e titio n
d e v e lo p in g betw e en the p ro p o n e n ts th ro u g h
de novo b ra n c h in g in the fo re se e a b le fu tu re
a p p e a r rem ote as restrictive state statutes
lim it such e xp a nsio n fo r each p ro p o n e n t to a
sin g le de novo o ffic e per year. H e rita g e Sav
ings Bank lacks the ne ce ssary reso u rce s to
m ount a m ea n in g fu l exp a nsio n effort out of
the H udson River Valley area it now serves
into areas s e rve d by A lb a n y S avings Bank.
W hile A lb a n y S a vin g s B ank m ust be re
g a rd e d as a p rim e poten tia l entrant into the
m arkets in the H u d so n River V alley now
served by H e rita g e Savings Bank, the ve h icle
of de novo b ra n ch entry is not e xp e c te d to
p ro d u c e a s ig n ific a n t co m p e titive im p a c t in
the fo re s e e a b le future. The p re se n ce of a
n u m b e r of large th rift institutions, with n u m e r
ous b a n king o ffic e s in the Kingston and B e a
con m arkets, assures the co n tinu a tio n of a
co m p e titiv e th rift in stitution ban king clim a te
in these areas if the p ro p o se d m erg e r is
c o n su m m a ted . The loss of som e p otential for
future co m p e titio n betw e en the p ro p o n e n ts is
not re g a rd e d as h a ving a sig n ifica n t a d ve rse
c o m p e titiv e im pa ct.
U n der the c irc u m s ta n ce s, the Board of
D irectors has c o n c lu d e d that the p ro p o se d
tran sa ctio n w o u ld not, in any se ctio n of the
co u n try , s u b s ta n tia lly lessen co m p e titio n ,
tend to c re a te a m on o p o ly, or in any other
m anner be in restraint of trade.
Financial and Managerial Resources; Fu
ture Prospects. H e rita g e Savings B a n k’s fi
nancial co n d itio n is re g a rd e d as less than
d e sira b le as a result of a high vo lu m e of loan
losses and non ea rn in g assets with a p o o r
reco rd of e a rn in g s retention w hile the fin a n
cial c o n d itio n of A lb a n y S avings Bank has
proven to be g e n e ra lly free of such criticism .
The resultant institution should p o sse ss the
reso u rce s n e ce ssary to c o rre ct such d e
ficie n cie s w ithin the fram e w o rk of a fin a n cia lly
sound thrift institution.
C o n sid e ra tio n s relating to m an a g e ria l re
so u rce s and fu tu re p ro s p e c ts of the resultant
institution have been sa tisfa cto rily resolved.
Convenience and Needs of the Community
to be Served. The p ro p o s e d tra n s a c tio n
w ould resolve the fin a ncia l and m an a g e ria l
d e fic ie n c ie s in e vid e n ce at H e rita g e S avings
Bank and thus e n h a n ce the co n ve n ie n ce and
needs of the co m m u n ities it serves. These
co n sid e ra tio n s w ould o u tw e igh such lim ited
a d ve rse c o m p e titive e ffe cts as m ay exist.
A review of a va ila b le inform ation, in clu d in g
the C om m unity R einvestm ent A ct S tatem ent
of the tw o re sp e ctive institutions and other
relevant m aterial, d isclo se d no in co n siste n
cies with the p u rp o se s of the Act. The re su l
tant institution is e x p e c te d to c o n tin u e to
m eet the c re d it needs of its entire co m m u n ity,
co n siste n t with the safe and sound op e ra tio n
of the institution.
Based on the fo re g o in g , the B oard of Di
rectors has c o n c lu d e d that a p p ro va l of the
a p p lica tio n is w arranted.
Resources
(in thousands
of dollars)
Heritage Bank, N.A.
— S teubenville
Banking Offices
in Operation
Before
129,735
8
75,000
8
14,010
3
After
19
S teubenville, O hio
(cha n g e title to
H e rita g e Bank)
to consolidate with
Heritage Bank, N.A.
— Salem
Salem , O hio
and
H eritage Bank, N.A.
— Hopedale
H opedale, Ohio
S um m ary rep o rt by A tto rn e y G eneral,
J a n u ary 5, 1979
The c o n s o lid a tin g b a n ks are all w hollyo w ned su b sid ia rie s of the sam e b a n k h o ld in g
BANK ABSORPTIONS APPROVED BY THE CORPORATION
c o m p a n y. As such, their p ro p o s e d c o n s o li
dation is e sse n tia lly a c o rp o ra te re o rg a n iza
tion a nd w o u ld have no e ffe ct on co m p e titio n .
Basis fo r C o rp o ra tio n A p p ro va l
A p ril 2, 1979
H e rita g e B a n k , N .A . — S te u b e n v ille ,
S teubenville, O hio (“ S te u b e n v ille ” ), with total
assets of $1 2 9,7 3 5 ,0 0 0 and total IPC d e
p o sits of $ 1 0 5,971,000, has a p p lie d , p u r
suant to S ection 18(c) and other p ro visio n s of
the Federal D e p o sit In su ra n ce A ct, fo r c o n
sent to c o n s o lid a te w ith H e rita g e Bank, N.A.
— Salem , Salem , O hio (“ S a le m ” ), with total
assets of $ 7 5 ,0 0 0 ,0 0 0 and total IPC d e p o sits
of $64,217,000, and with H e rita g e Bank, N.A.
— H o p e d a le , H o p e d a le , O hio (“ H o p e d a le ” ),
with total assets of $ 1 4 ,010,000 and total IPC
d e p o s its of $11,453,000, u n d er a new state
charter, with the title, “ H e rita g e B a n k,” and to
e sta blish the e ig h t o ffice s of Salem and the
th re e o ffice s of H o p e d a le as b ra n ch e s of the
resulting bank. In c id e n t to the tra n sa ctio n ,
the T oronto O ffice of S te u b e n ville will be
re d e s ig n a te d as the m ain o ffice of the re su lt
ing ba n k w h ich w o u ld o p e ra te with a total of
19 offices.
Competition. E ssentially a c o rp o ra te reo r
g a n izatio n , the p ro p o sa l w ould p ro vid e a
m eans by w h ich First S teuben B a n co rp, Inc.,
Toronto, O hio, a re g iste re d b a n k h o ld in g
c o m p a n y, m ay c o n s o lid a te its o p e ra tio n s in
Harrison, C o lu m b ia n a , and Jefferson C o u n
ties, Ohio. The p ro p o n e n ts have been u n d e r
co m m o n c o n tro l sin ce 1975, and th e ir p ro
po se d co n s o lid a tio n w o u ld not a ffe ct the
stru ctu re of c o m m e rc ia l b a n kin g or the c o n
ce n tra tio n of b a n k in g reso u rce s w ithin the
relevant m arket.
The Board of D ire cto rs is of the op in io n that
the tra n s a c tio n w o u ld not, in any se ctio n of
the country, s u b s ta n tia lly lessen co m p e titio n ,
tend to cre a te a m o n o p o ly or in any o th er
m anner be in restra in t of trad e .
Financial and Managerial Resources; Fu
ture Prospects. P ro p o n e n ts’ fin a ncia l and
m a n a g e r ia l re s o u r c e s a re c o n s id e r e d
a d e q u a te for p u rp o s e s of this pro p o sa l. Fi
nancial and m an a g e ria l reso u rce s of the re
sultant ba n k w o u ld be sa tisfa cto ry and its
fu tu re p ro s p e c ts a p p e a r fa vo ra b le .
Convenience and Needs of the Community
to be Served. S e rvice s to be o ffe re d in the
relevant m arket by the resulting b ank w ould
not d iffe r m ate ria lly from those p re se n tly of
fe re d by each p ro p o n e n t.
A review of a va ila b le inform ation d is c lo s e d
no in c o n s is te n c ie s w ith the p u rp o se s of the
C o m m u n ity R einvestm ent A ct. The resultant
institution is e x p e c te d to co n tinu e to m eet the
c re d it ne e ds of its e ntire co m m u n ity, c o n s is
77
tent with the safe and so u n d o p e ra tio n of the
institution.
B ased on the fo re g o in g , the Board of D i
rectors has c o n c lu d e d th a t a p p ro va l of the
a p p lica tio n is w a rra n te d .
Resources
(in thousands
of dollars)
Maine S aving s Bank
Banking Offices
in Operation
Before
After
4 06 ,4 1 8
12
14
10,211
2
Portland, M aine
to merge with
S outh Paris S avings
Bank
South Paris, M aine
S um m ary rep o rt by A tto rn ey G eneral,
O c to b e r 3, 1978
We have review ed this p ro p o s e d tra n s a c
tion and c o n c lu d e th a t it w ould not have a
sig n ifica n tly a d ve rse e ffe ct u pon c o m p e ti
tion.
Basis for C o rp o ra tio n A p p ro va l
A p ril 2, 1979
M ain e S a v in g s B a n k, P o rtla n d , M a in e
(“ A p p lic a n t” ), an in su re d m utual sa vin g s
b ank with total re so u rce s of $4 0 6,4 1 8 ,0 0 0
and total d e p o s its of $ 3 6 4,9 8 0 ,0 0 0 , has
a p p lie d , p u rsu a n t to S ection 18(c) and other
pro visio n s of the F ederal D e p o sit In su ra n ce
A ct, for the C o rp o ra tio n ’s p rio r co n se n t to
m erge, u n d e r its c h a rte r a nd title, with South
Paris S a vin g s Bank, South Paris, M ain e
(“ SPSB” ), an in su re d m utual sa vin g s bank
with total reso u rce s of $ 1 0 ,2 1 1 ,0 0 0 and total
d e p o sits of $9,363,000. In c id e n t to the tra n s
a ction, the tw o o ffice s of SPSB w o u ld be
e sta b lish e d as b ra n ch e s of A p p lic a n t. In a
co m p a n io n p ro p o sa l, A p p lic a n t also seeks
the C o rp o ra tio n ’s co n se n t to e sta blish a de
novo b ra n ch in the O xfo rd Plains S h o p p in g
Center, O xfo rd , M aine, w h ich is in clo se
pro xim ity to the tw o e xisting o ffice s of SPSB.
Competition. A p p lic a n t, b a se d in P ortland,
o p e ra te s 12 o ffice s in fo u r co u n tie s of central
and southern M aine, and has re ce ive d a p
p ro p ria te re g u la to ry a p p ro va l to e sta blish a
de novo b ra n ch in B a n g o r a p p ro x im a te ly 135
m iles n ortheast of P ortland. W hile the m ajority
of A p p lic a n t’s o ffice s are ce n te re d in the
u rb a n iz e d a re a s of c o a s ta l C u m b e rla n d
County, all b u t one of the b ra n ch e s o p e n e d
sin ce 1974 have been e sta b lish e d in m ore
d ista n t m arkets. SPSB, h e a d q u a rte re d in
78
FEDERAL DEPOSIT INSURANCE CORPORATION
South Paris, o p e ra te s a sin g le b ra n ch lo
ca te d in South Paris V illage, a p p ro xim a te ly 2
road m iles w est of its m ain o ffice and 2 road
m iles east of A p p lic a n t’s p ro p o s e d O xford
b ranch.
The relevant m arket in w hich to a ssess the
c o m p e titiv e im p a c t of the p ro p o se d tra n s a c
tion is re g a rd e d as the area w ithin an a p
p ro xim a te 15 roa d -m ile radius of South Paris,
e n c o m p a s s in g so u the a ste rn O xford C ounty
and sm all p o rtio n s of a d jo in in g A n d ro s c o g
gin and C u m b e rla n d Counties. This area,
c o n ta in in g a sta b le p o p ula tio n b a se e sti
m a te d at a p p ro x im a te ly 15,00 0 , has an
e c o n o m y p re d ic a te d upon d a iry fa rm in g ,
light m a n u fa c tu rin g , lu m b e r and w o o d p ro d
ucts. R ecent g ro w th has been m ost p ro
n o u nce d in th e n e a rb y tow n of O xford.
In the relevant m arket, a total of th re e thrift
institutions o p e ra te five offices. SPSB, w h ich
holds a 22.8 p e rc e n t m arket share of the
d e p o sits held by such institutions, is s ig n ifi
ca n tly sm aller than N orw ay Savings Bank,
w hich d o m in a te s the local m arket, ho ld in g
72.4 p e rc e n t of the th rift institution d e p o sits.
Bethel Savings Bank, b a se d in Bethel a p
p ro xim a te ly 25 road m iles north of South
Paris, has o p e n e d tw o o ffice s in this m arket
since 1975. To date, those b ra n ch e s have
been u n a ble to m ake a s ig n ific a n t p e n e tra
tion in d o lla r volum e of d e p osits. As A p p lic
ant is not re p re s e n te d in this m arket and the
p ro p o n e n ts ’ n earest o ffice s are lo ca ted a p
p ro xim a te ly 30 road m iles apart, d ire c t c o m
p etition betw e en the tw o institutions a p p e a rs
to be m inim al. The p ro p o se d tra n sa ctio n
w ould have no s ig n ific a n t e ffe ct on existing
co m p e titio n betw e en the tw o institutio n s or
upon the s tru c tu re of th rift in s titu tio n ba n king
in the rele va n t m arket.
A p p lic a n t is M a in e ’s la rg e st m utual sa v
ings b a n k h o ld in g 17.1 p e rce n t of the s ta te ’s
total m utual s a vin g s b a n k d e p osits, a share
s ig n ific a n tly h ig h er than the sta te ’s se co n d
and th ird la rg e st such institutions. Its a c q u is
ition of SPSB, w h ich holds a m od e st 0.4
p e rce n t of such fu n d s in the state, w o u ld a d d
to this c o n ce n tra tio n ; how ever, such an a d d i
tion is not re g a rd e d as having a sig n ific a n t
co m p e titiv e im pa ct.
M a in e s ta tu te s p ro v id e fo r s ta te w id e
b ra n c h in g a c tiv ity . SPSB has h is to ric a lly
chosen to serve its local com m unity, and as
one of the s ta te ’s sm aller m utual sa vin g s
banks, d o e s not po sse ss the reso u rce s to
e m b a rk upon any m ea n in g fu l e xp a nsio n into
new m arkets. A p p lic a n t, on the oth er hand,
with a re co rd of a g g re s s iv e b ra n ch d e v e lo p
m ent, m ust be re g a rd e d as a p o ten tia l de
novo e ntrant to the South P aris-N orw ay m ar
ket.
The c o m p a n io n p ro p o sa l of A p p lic a n t to
e stablish a de novo b ra n ch in a new sh o p
ping ce n te r in the a d jo in in g tow n of O xford is
re g a rd e d as an in te gra l p a rt of this tra n s a c
tion. The u n im p re s s iv e g ro w th re c o rd of
an o th e r th rift in s titu tio n ’s re ce n t de novo
entry into the South P a ris-N orw a y m arket
a d d s som e s u p p o rt to A p p lic a n t's co n ten tio n
that de novo entry to th is relatively sta b le
local m arket w o u ld not be e c o n o m ic a lly a t
tractive . W hile it w o u ld be p re fe ra b le , from a
co m p e titive sta n d p o in t, to have both A p p li
ca n t and SPSB re p re se n te d in this local m ar
ket, in the a b s e n c e of the p ro p o s e d tra n s a c
tion, A p p lic a n t is un likely to e xp a n d into this
area in the fo re se e a b le future. In such a light,
the loss of the poten tia l for fu tu re co m p e titio n
to d e ve lo p betw e en the p ro p o n e n ts is not
re g a rd e d as having any s ig n ific a n t a d ve rse
co m p e titive co n se q u e n ce .
The Board of D ire cto rs is of the o p in io n that
the p ro p o s e d m e rg e r w ould not, in any s e c
tion of the co u n try, s u b sta n tia lly lessen c o m
petition, te n d to c re a te a m on o p o ly or in any
other m anner be in restra in t of trade.
Financial and Managerial Resources; Fu
ture Prospects. The fin a n cia l and m an agerial
reso u rce s of both p ro p o n e n ts are re g a rd e d
as sa tisfa cto ry and the resu lta n t institution is
a n tic ip a te d to have fa vo ra b le fu tu re p ro s
pects.
Convenience and Needs of the Community
to be Served. The p re se n t rate stru ctu re s and
fee sch e d u le s on d e p o sit and loan a cco u n ts
at SPSB, are m ore fa vo ra b le to thrift c u s to m
ers than th o se w h ich w o u ld be o ffe re d by
A p p lic a n t a n d th e re s u lta n t in s titu tio n .
A p p lic a n t does, how ever, offer a b ro a d e r
range of thrift institution se rvice s than are
p re se n tly a va ilab le at SPSB, in c lu d in g a full
ran g e of tim e and p e rsonal ch e c k in g d e p o sit
a c c o u n ts , h ig h e r le n d in g lim its, and e x
p a n d e d m o rtg a g e loan a ctivitie s. On b a l
ance, c o n sid e ra tio n s relating to the c o n ve n i
e n ce and needs of the co m m u n ity a p p e a r
c o n siste n t w ith a p p ro va l of the a p p lica tio n .
A review of a va ilab le inform ation, in clu d in g
the C o m m u n ity R ein ve stm e n t A c t S tatem ents
of the tw o re sp e ctive in stitutio n s and other
relevant m aterial, d is c lo s e d no in co n siste n
cies with the p u rp o se s of the A ct. The resu l
tant institution is e x p e c te d to co n tinu e to
m eet the c re d it ne e ds of its entire com m unity,
co n siste n t w ith the safe and sound o p e ra tio n
of the institution.
B ased on the fo re g o in g , the B oard of Di
rectors has c o n c lu d e d th a t a p p ro va l of the
a p p lica tio n is w a rra n te d .
BANK ABSORPTIONS APPROVED BY THE CORPORATION
Resources
(in thousands
of dollars)
N o rth ern C entral
Bank
Banking Offices
in Operation
Before
After
278,621
17
19
16,892
2
W illiam sport,
P ennsylvania
to merge with
The F irst N ational
Bank o f M illv ille
M illville,
Pennsylvania
Sum m ary rep o rt by A tto rn e y G eneral,
Ja n u ary 15, 1979
O verall, in our view , the p ro p o s e d tra n s a c
tion w ould not have a s ig n ific a n tly a d ve rse
c o m p e titiv e e ffect.
Basis fo r C o rp o ra tio n A p p ro va l
Ap ril 2, 1979
N o rth e rn C e n tra l B a n k , W illia m s p o r t,
P e nnsylvania (“ N o rth e rn ” ), an insu re d State
n o n m e m b e r b a n k w ith total re so u rce s of
$ 2 7 8 ,6 2 1 ,0 0 0 a n d to ta l IPC d e p o s its of
$ 220,863,000, has a p p lie d , p u rsu a n t to S e c
tion 1 8 (c) a nd other p ro visio n s of the F ederal
D e p o sit In su ra n ce A ct, fo r the C o rp o ra tio n ’s
prio r co n s e n t to m e rg e w ith The First N ational
B a n k o f M illv ille , M illv ille , P e n n s y lv a n ia
(“ M illv ille ” ), w ith
to ta l
re s o u rc e s
of
$ 1 6 ,8 9 2 ,0 0 0 a n d to ta l IPC d e p o s its of
$ 1 4 ,3 9 3 ,0 0 0 . T he se b a n ks w o u ld m e rg e
u n d er the c h a rte r a nd title of N orthern and
the tw o o ffic e s of M illville w o uld be e s ta b
lished as b ra n c h e s of the resultant bank,
w h ich w o u ld c o m m e n c e o p e ra tio n with a total
of 19 offices.
Competition. N o rthern o p e ra te s 17 o ffice s:
six, in c lu d in g its m ain o ffice in L yco m in g
County; one in B ra d fo rd County; e ig h t in
N o rth u m b e rla n d C ounty; and tw o in Sullivan
C ounty. M illv ille ’s m ain o ffice is lo ca ted in
C o lu m b ia C ounty a nd it o p e ra te s one b ra n ch ,
a p p ro x im a te ly 14 m iles from its m ain office, in
Lyco m in g C ounty. The m ain o ffice s of the tw o
ba n ks are a p p ro x im a te ly 34 road m iles a p a rt
but their nearest o ffices, the L ycom ing Mall
B ra n c h of N o rth e rn a n d th e C la rk s to w n
B ranch of M illville, are s e p a ra te d by only 7
road m iles.
The tw o o ffic e s of M illville o p e ra te in
s e p a ra te m arkets. The C larkstow n o ffice is
a p p ro x im a te ly 15 m iles from W illia m sp o rt
and its m arket in c lu d e s areas lo ca te d w ithin
10 to 12 m iles of C larkstow n, as well as the
city of W illia m sp o rt. N orthern has five o ffices
lo ca ted w ithin this m arket and is the d o m in
79
ant bank h o ld in g 31.2 p e rc e n t of the IPC
d e p osits. In sp ite of this, the e ffe ct on c o m
petitio n in this m arket w o u ld be n e g lig ib le
sin ce the C la rksto w n o ffice of M illville (e sta b
lished in 1975) has less than $ 7 00,000 in total
IPC d e p osits.
The c o m p e titiv e im p a c t of the p ro p o sa l
w ould be m ost im m e d ia te and d ire c t in the
area se rve d by the m ain o ffice of M illville.
This m arket are a e xte n d s a p p ro x im a te ly 10
to 12 road m iles from the b o ro u g h of M illville.
W hile the area is la rg e ly a g ricu ltu ra l, the
in d u stria lize d tow n of B lo o m sb u rg is lo ca te d
on the p e rim e te r of the m arket. The 1970
p o p ula tio n of the area w as 3 6 ,59 8 and the
town of B lo o m sb urg a c c o u n te d for 11,652 of
the total. There are 20 o ffice s of e ig h t co m
m ercial ba n ks se rvin g the area. N orthern is
not re p re se n te d in the m arket, and M illville
has the sm alle st share of IPC d e p o s its in the
area (6.0 p e rce n t). There d o e s not a p p e a r to
be any existing co m p e titio n b etw een the
p ro p o n e n ts w ithin this m arket. B e ca u se of
the lim ited p o p u la tio n of the M illville m arket it
is u nlikely th a t any su b stan tia l co m p e titio n
will d e ve lo p b e tw e en the tw o institutions.
U n der P e nnsylvania b a n king law, b ra n c h
ing is p e rm itte d in a b a n k ’s hom e c o u n ty and
all c o n tig u o u s co u n tie s. W ithin the 1 0 -co u n ty
region in w h ich N orthern m ay e xp a n d , a total
of 52 co m m e rcia l ba n ks o p e ra te 164 o ffice s
and
h o ld
d e p o s its
a g g r e g a t in g
$1,936,000,000. W hile N orthern h olds the
larg e st share of d e p o s its in the area (12.2
p e rce n t), the d e p o s it stru ctu re is relatively
u n co n ce n tra te d , w ith the 10 la rg e st banks
co n tro llin g slig h tly over 50 p e rc e n t of the
co m m e rcial b a n k d e p o sits. This p ro p o sa l
w ould in cre a se N o rth e rn ’s sh a re to 13 p e r
cent. It d o e s not a p p e a r that the p ro p o sa l
would have any s ig n ific a n t a d ve rse e ffe ct on
the co n ce n tra tio n of b a n kin g re so u rce s or the
stru ctu re of co m m e rcia l b a n kin g in this rele
vant area.
U nder th e se circ u m s ta n c e s , the Board of
D irectors is of the o p in io n th a t the p ro p o s e d
m erg e r w o u ld not, in any se ctio n of the c o u n
try, su b sta n tia lly lessen co m p e titio n , te n d to
crea te a m on o p o ly, or in any other m anner be
in restraint of trad e .
Financial and Managerial Resources; Fu
ture Prospects. Both N orthern and M illville
have sa tisfa cto ry fin a n cia l and m an agerial
resources, and th e ir fu tu re p ro s p e c ts are
fa vo ra b le . The resultant ba n k sh o u ld also
have sa tisfa cto ry fin a n cia l and m an a g e ria l
resources and fa vo ra b le fu tu re p ro sp e cts.
Convenience and Needs of the Community
to be Served. The resultant b a n k will offer a
g re a te r va rie ty of d e p o s it se rvice s, tru st se r
vices, and m ore so p h is tic a te d le n d in g se r
80
FEDERAL DEPOSIT INSURANCE CORPORATION
vice s than are p re se n tly being o ffe re d by
M illville. W hile other b a n king o ffice s lo ca te d
in the tra d e area also p ro vid e th e se se rvice s,
none of these b a n king o ffice s are in the
im m e d ia te M illville area. The resultant b a n k
will th e re fo re be a b le to p ro vid e m ore c o n
ve n ie nt se rvice s to the local area and also be
b e tter a b le to c o m p e te with b ra n ch e s of
la rg e r banks in the s u rro u n d in g area.
A review of a va ila b le in form ation, in clu d in g
the C o m m u n ity R einvestm ent A ct S ta te m en ts
of the tw o re s p e c tiv e institutio n s and o ther
relevant m aterial, d is c lo se d no in c o n s is te n
cies with the p u rp o s e s of the A ct. The resu l
ta n t institutio n is e x p e c te d to co n tin u e to
m eet the c re d it needs of its entire co m m u n ity,
c o n s is te n t w ith the safe and so u n d o p e ra tio n
of the institution.
B ased on the fo re g o in g , the B oard of Di
rectors has c o n c lu d e d th a t a p p ro va l of the
a p p lic a tio n is w arra n te d .
Resources
(in thousands
of dollars)
Central C o un tie s
Bank
Banking Offices
in Operation
Before
After
310,794
25
26
18,000
1
State College,
P ennsylvania
to merge with
The U nion N ational
Bank o f L e w isb urg
Lew isburg,
Pennsylvania
S um m ary rep o rt by A tto rn ey G eneral,
Ja n u ary 19, 1979
We have review ed this p ro p o se d tra n s a c
tion and c o n c lu d e that it w ould not have a
sub stan tia l c o m p e titiv e im pact.
Basis fo r C o rpo ra tion A p p ro val
A p ril 9, 1979
C e n tra l C o u n tie s Bank, S tate C o lle g e ,
P e n n sylva n ia (“ C entral C o u n tie s ” ), an in
s ured State n o n m e m b er bank with total re
s o u rce s of $ 3 1 0,7 9 4 ,0 0 0 and total IPC d e
p osits of $ 2 5 9,637,000, has a p p lie d , p u r
suant to S ection 18(c) and other p ro visio n s of
the Federal D e p o sit In su ra n ce Act, for the
C o rp o ra tio n ’s p rio r c o n se n t to m erge, u n d er
its c h a rte r and title, w ith The Union N ational
Bank of Lew isb urg , Lew isb urg , P ennsylvania
(“ Union N a tio n a l” ), with total reso u rce s of
$ 1 8 ,0 0 0 ,0 0 0 a n d to ta l IPC d e p o s its o f
$ 15,876,000. In cid en t to the m erger, the sole
o ffice of Union National w ould b e co m e a
b ra n ch of the resultant bank, in cre a sin g the
n u m b e r of its a u thorized o ffice s to 26.
Competition. C entral C ounties o p e ra te s 25
offices: its m ain o ffice and six b ra n ch e s in
C entre County, ten b ra n ch e s in Blair C ounty,
four b ra n ch e s in C linton C ounty and four
b ra n ch e s in M ifflin County. Union National
o p e ra te s its sole o ffice in L e w isb urg , Union
County, w hich is situ a te d im m e d ia tely east of
C entre County.
The e ffe cts of the p ro p o se d m erg e r w ould
be m ost p ro n o u n ce d in Union N a tio n a l’s
m arket, w h ich co n sists of e a stern Union
C ounty and the a d jo in in g p o rtio n s of Nor
th u m b e rla n d C ounty w ithin a b o ut 12 road
m iles of Lew isb urg . The area is la rg e ly fo re st
land with a d d itio n a l land d e vo te d to a g ric u l
ture. L ig h t industry, a F ederal p e nitentiary,
and B ucknell University, with an e n ro llm e nt of
a p p r o x im a te ly 3 ,3 0 0 , a ffo rd a d d itio n a l
e m p lo ym e n t for the area residents. The ef
fe ctive bu yin g incom e of Union C ounty in
1977 w as 8.5 p e rce n t b e lo w that of the state.
U nion National is one of tw elve banks
o p e a tin g a total of 21 o ffice s in this relevant
m arket and holds the ninth la rg e st share, 6.8
p e rce n t, of the IPC d e p o sits held by area
o ffice s of these banks. C onsum m ation of the
p ro p o s e d m erg e r w ould have little e ffe ct
upon the structu re of co m m e rcial ba n king in
the relevant m arket, as C entral C ounties is
not now rep re se n te d there.
A lth o u g h Union County and C entre County
are co n tigu o u s, there is no o ve rla p p in g of
se rvice areas as they are se p a ra te d by a
p ortio n of the A p p a la c h ia n Range and by
state fo re st lands. The clo se st o ffice of C en
tral C ounties to Union N a tio n a l’s sole o ffice is
som e 34 m iles in d ista n ce . The p ro p o se d
tra n sa ctio n w ould have no s ig n ific a n t effe ct
on existing co m p e titio n betw e en the tw o in
stitutions.
Pennsylvania law pe rm its a co m m e rcial
bank to b ranch de novo or m erg e w ithin its
hom e o ffice co u n ty and all co n tig u o u s co u n
ties. C entral C ounties can thus enter Union
C ounty de novo, and Union National m ay
sim ilarly enter C entre C ounty. Union National
has h isto rica lly co n fine d its o p e ra tio n to a
local m arket and does not p ossess the re
s o u rce s n e ce ssary to e x p a n d into m ore d is
tant m arkets. Union County, with a stable
po p u la tio n base and a la rg e n u m ber of es
ta b lish e d co m m e rcial banks, w ould a p p e a r
to hold only lim ited a ttra ctio n for de novo
entry by Central C ounties. The co u n ty w o uld
BANK ABSORPTIONS APPROVED BY THE CORPORATION
co n tin u e to enjoy a co m p e titive b a n king c li
m ate su b s e q u e n t to c o n su m m a tion of the
p ro p o s e d tran sa ctio n , and the loss of som e
p oten tia l for the d e v e lo p m e n t of fu tu re c o m
p e tition betw e en the p ro p o n e n ts is not re
g a rd e d as having any sig n ifica n t co m p e titive
im pact.
C entral C ounties is the se co n d larg e st of
the 41 c o m m e rcia l banks rep re se n te d in its
legal b ra n c h in g area with 15.0 p e rce n t of the
a re a ’s d e p o s its held by such banks. The
p ro p o s e d m erg e r w o uld in cre a se to 15.9
p e rc e n t C entral C o u n tie s’ d e p o s it share in
this area. Sim ilarly, the a cq u isitio n of Union
N ational w o uld not m aterially a ffe ct Central
C o u n tie s ’ share of the s ta te ’s co m m e rcial
b a n k d e p o s its w h ich w ould rem ain at less
than one p e rce n t.
B ased on the fo re g o in g , the Board of Di
recto rs is of the o p in io n that the p ro p o se d
m erg e r w ould not, in any section of the c o u n
try, s u b sta n tia lly lessen co m p e titio n , tend to
c re a te a m onopoly, or in any other m anner be
in restraint of trade.
Financial and Managerial Resources; Fu
ture Prospects. Both banks have sa tisfa cto ry
fin a n cia l and m an agerial resources, as w ould
the resultant b ank w hich is a n ticip a te d to
have fa v o ra b le fu tu re p ro sp e cts.
Convenience and Needs of the Community
to be Served. The p ro p o se d m erg e r w ould
brin g into the L e w isb urg m arket, the se rvice s
of a n other of the re g io n ’s m ajor banks. The
resultant b a n k w o u ld offer a g re a te r va rie ty of
d e p o s it and loan services; m ore intensive
m arke tin g of co n su m e r le n d in g , in clu d in g
d e a ler fin a n c in g ; and a sig n ifica n tly larger
legal le n d in g limit. C o n sid era tio ns relating to
co n v e n ie n c e and n eeds of the co m m u n ity
a p p e a r co n s is te n t w ith a p p ro va l of the a p p li
cation.
A review of ava ilab le inform ation d isclo se d
no in c o n s is te n c ie s with the p u rp o se s of the
C o m m u n ity R einvestm ent A ct. The resultant
ba n k is e x p e c te d to co n tin u e to m eet the
c re d it needs of its e ntire co m m u n ity, co n sis
tent with the safe and sound op e ra tio n of the
bank.
Based on the fo re g o in g , the Board of Di
recto rs has c o n c lu d e d th a t a p p ro va l of the
a p p lic a tio n is w arra n te d .
81
Resources
(in thousands
of dollars)
Bankers T ru s t of
S outh C arolina
Banking Offices
in Operation
Before
6 8 4,765
89
40 ,744
8
After
97
C olum bia, South
Carolina
to merge with
The Peoples Bank o f
S outh C arolina,
Inc.
Florence, South
C arolina
S um m ary re p o rt by A tto rn e y G eneral,
F eb ru a ry 9, 1979
We have review ed the p ro p o sa l, and c o n
clu d e d th a t it is p e rm issib le .
Basis fo r C o rp o ra tio n A p p ro va l
A p ril 23, 1979
Bankers T rust of South C arolina, C olum bia,
South C arolina (“ B ankers T ru s t” ), an insured
State n o n m e m b er b a n k w ith total reso u rce s
of $ 6 8 4,765,000 and total I PC d e p o sits of
$497,656,000, has a p p lie d , p u rsu a n t to S e c
tion 18(c) and o th er p ro visio n s of the Federal
D eposit In su ra n ce A ct, fo r the C o rp o ra tio n ’s
p rio r co n se n t to m erge, u n d e r its ch a rte r and
title , w ith T he P e o p le s B a n k o f S o u th
C a ro lin a , In c., F lo re n c e , S o u th C a ro lin a
(“ P eoples B a n k” ), w ith total reso u rce s of
$ 4 0 ,7 4 4 ,0 0 0 a n d to ta l IPC d e p o s its of
$34,235,000. In cid e n t to th e tra n sa ctio n , the
e ig h t o ffice s of P eoples B ank w o u ld be e s
ta b lish e d as b ra n ch e s of the resu lta n t bank.
Competition. B ankers Trust, b a se d in C ol
u m bia, o p e ra te s 89 fu ll-s e rv ic e o ffice s in 18
co u n tie s of ce n tra l a n d so u thw este rn South
Carolina. It has been a p a rty to 16 m erg e r
tran sa ctio n s with c o m m e rc ia l ba n ks sin ce
1 9 5 5 a n d h a s p u rs u e d an a g g re s s iv e
b ra n ch in g p o licy. A w h o lly-o w n e d m o rtg a g e
su b sid ia ry, A ike n -S p e ir, Inc., is h e a d q u a r
te re d in C o lu m b ia w ith its se rvice h e a d q u a r
ters lo ca ted in F lorence. B usiness o ffice s of
this su b sid ia ry, w h ich se rv ic e a m o rtg a g e
loan p o rtfo lio of a p p ro x im a te ly $381,0 0 0 ,0 0 0
(D e ce m b e r 31, 1978), are m a in ta in e d in
C harleston, C o lu m b ia , F lo re n ce and G ree n
ville, South C arolina, a nd C harlotte, North
C arolina.
P eoples Bank w as o rg a n iz e d in 1965 and
o p e ra te s a total of e ig h t o ffice s in fo u r c o u n
ties of n o rth e a ste rn South C a rolin a . The
p rim a ry s e rv ic e a re a s of P e o p le s Bank,
w hich are re g a rd e d as the rele va n t m arkets
in w hich to assess the co m p e titiv e im p a c t of
82
FEDERAL DEPOSIT INSURANCE CORPORATION
the p ro p o s e d tran sa ctio n , are d e lin e a te d as
follow s: (1) the Florence m arket, a p p ro x i
m ated by a 15 roa d -m ile radius of the city of
F lorence, in w hich three o ffice s are o p e ra te d ;
(2) the Sum ter m arket, a p p ro x im a te d by a 15
roa d -m ile radius of the city of Sum ter, in
w hich one o ffic e is o p e ra te d ; and, (3) the
M yrtle B each m arket, co n sistin g of a narrow
band of o ce a n fro n t co m m u n ities in H orry
C ounty, in w h ich th re e o ffice s are o p e ra te d .
In the F lorence, Sum ter and M yrtle B each
relevant m arkets, P eoples Bank holds 10.4
p e rce n t, 2.9 p e rc e n t and 7.7 p e rce n t of the
re sp e ctive m a rk e ts ’ IPC d e p o sit base. In the
Sum ter and M yrtle B each m arkets, Peoples
Bank is the sm alle st co m m e rcia l ba n k re p
resented, w hile it ranks as the fifth la rg e st of
e ig h t c o m m e rc ia l ba n ks in the F lo re n ce m ar
ket w here it is h e a d q u a rte re d . In each of
these m arkets, the s ta te ’s tw o la rg e st c o m
m ercial b a n ks hold m arket shares s ig n ifi
ca n tly la rg e r than th o se held by P eoples
Bank, w hose a c q u is itio n by Bankers T rust is
view ed as having no m aterial a d ve rse e ffe ct
upon the s tru c tu re of c o m m e rcia l ban king in
these relevant m arkets.
Peoples B a n k’s L y n ch b u rg office, lo ca ted
in the southern portio n of rural Lee County,
a p p ro x im a te ly 20 m iles so u thw est of Flor
ence, is re g a rd e d as serving a sm all local
co m m u n ity as it is th e o n ly c o m m e rc ia l
b an king o ffic e for a d is ta n c e of m ore than 10
road m iles. In lig h t of the m od e st vo lu m e of
d e p o s its held by this o ffice, the p ro p o s e d
tra n s a c tio n w o u ld have little e ffe c t u p o n
c o m p e titio n or b a n king stru ctu re in th is rela
tively lo ca lize d , rural area.
The p ro p o n e n ts are not cu rre n tly e n g a g e d
in any m aterial d ire c t c o m p e titio n as th e ir
c lo se st o ffic e s are lo ca ted m ore than 40 road
m ile s a p a rt in c o n tig u o u s R ich la n d a n d
Sum ter C ounties. The m erg e r of Bankers
Trust and P eoples Bank is thus re g a rd e d as
h a v in g no s ig n ific a n t a d v e rs e e ffe c t on
e xisting co m p e titio n .
As South Carolina statutes perm it statew ide
de novo b ra n c h in g and m erg e r a ctivity, s u b
je c t to ce rta in m inim um ca p ita liza tio n re
quirem ents, each p ro p o n e n t has the p o te n
tial to b ra n ch into the areas now served by
the other. P eoples Bank, how ever, has fa iled
to ca p tu re a s ig n ific a n t share of d e p o sits in
any new m arket it has e n tere d and has not
e sta b lish e d a de novo b ra n ch sin ce June,
1974. B ankers Trust, w h ich posse sses the
re s o u rc e s a nd e x p e rie n c e n e ce ssa ry fo r
s ta te w ide b ra n c h in g , has co n ce n tra te d its
e fforts on the p rin c ip a l m arkets in the central
and so u thw este rn p o rtio n of the state. Ex
p ansion into the n o rth e a st portio n of South
C arolina, and S um ter C ounty in p a rticu la r,
m ust be re g a rd e d as a lo g ical step at som e
p oint in tim e. Bankers T ru st’s a c q u isitio n of
Peoples Bank, how ever, with its relatively
m od e st m arket shares in areas w here the
sta te ’s tw o la rg e st b a n ks are firm ly e s ta b
lished, w o uld not result in the loss of any
sig n ifica n t p otential for fu tu re co m p e titio n
betw een the p ro p o n e n ts.
B ankers Trust is cu rre n tly the fourth largest
co m m e rcial ba n k in South C arolina, h o ld in g
11.3 p e rc e n t of the s ta te ’s total co m m e rcial
b ank d e p o sits. Its a cq u isitio n of Peoples
Bank, the s ta te ’s 2 2nd la rg e st co m m e rcial
bank h o ld in g a m od e st 0.7 p e rc e n t of such
fu n ds, w o u ld serve to in cre a se the levels of
sta te w ide c o n ce n tra tio n of co m m e rcial b a n k
d e p osits, how ever, such a m o d e st in cre a se
is not re g a rd e d as ha vin g any m ajor im p a ct
upon co m m e rcial ba n king or the co n c e n tra
tion of b a n king reso u rce s in South Carolina.
The B oard of D ire cto rs is of the op in io n that
the p ro p o se d m erg e r w o u ld not, in any s e c
tion of the co u n try, su b sta n tia lly lessen c o m
petition, tend to cre a te a m on o p o ly or in any
o ther m anner be in restra in t of trade.
Financial and Managerial Resources; Fu
ture Prospects. The fin a n cia l and m anagerial
reso u rce s of both p ro p o n e n ts are re g a rd e d
as sa tisfa cto ry and the resultant bank is a n
tic ip a te d to have fa vo ra b le fu tu re p ro sp e cts.
Convenience and Needs of the Community
to be Served. The p ro p o s e d tran sa ctio n will
result in a b ro a d e r ran g e of co m m e rcial
ban king se rvice s a va ila b le to the p re se n t
cu sto m e rs of Peoples Bank. W hile such se r
vic e s are g e n e ra lly a va ila b le at o ffices of
regional and sta te w ide ba n ks in the areas
now served by P eoples Bank, co n su m m a tion
of the p ro p o se d tra n sa ctio n will p ro vid e an
a d d itio n a l a lternative so u rce of such se r
vice s. C o n sid e ra tio n s rela tin g to co n ve n i
e n ce and needs of the co m m u n ity are c o n
sistent with a p p ro va l of the a p p lica tio n .
A review of a va ilab le info rm a tio n , in clu d in g
the C o m m u n ity R e investm ent A ct S ta te m en ts
of the tw o p ro p o n e n ts and o ther relevant
m aterial, d isclo se d no in co n siste n cie s with
the p u rp o se s of the Act. The resultant b a n k is
e xp e c te d to co n tin u e to m eet the c re d it
needs of its entire co m m u n ity, co n siste n t with
the safe and sound o p e ra tio n of the in stitu
tion.
Based on the fo re g o in g , the B oard of D i
rectors has c o n c lu d e d th a t a p p ro va l of the
a p p lica tio n is w arra n te d .
BANK ABSORPTIONS APPROVED BY THE CORPORATION
Resources
(in thousands
of dollars)
N o rth ea st Bank o f
L e w isto n and
A u b u rn
105,030
Banking Offices
in Operation
Before
After
11
13
Lew iston, M aine
to purchase the assets and
assume the deposit liabilities
of
A u g u sta and
W aterville
B ranches of
L iverm ore Falls
T ru s t Com pany
3 ,9 10 *
2
L iverm ore Falls,
M aine
* Total IPC d e p o sits of office s to be tra n s fe rre d by
Live rm o re Falls T ru st C o m pa ny. A ss e ts not ava ila b le
by office.
S um m ary rep o rt by A tto rn ey G eneral,
July 31, 1978
W e have review ed this p ro p o se d tra n s a c
tion and c o n c lu d e that it w ould not have a
s ig n ific a n tly a d ve rse e ffe ct upon c o m p e ti
tion.
Basis for C o rpo ra tion A p p ro va l
M ay 7, 1979
N ortheast Bank of Lew iston and A uburn,
Lew iston, M aine (“ N ortheast B a n k” ), an in
sured State n o n m e m b er bank with total re
s o u rce s of $ 1 0 5,0 3 0 ,0 0 0 and total IPC d e
p o s its o f $ 8 1 ,9 0 6 ,0 0 0 , h a s a p p lie d ,
p u rs u a n tto Section 18(c) and o th er provisions
of the Federal D e p o sit Insurance Act, for the
C o rp o ra tio n ’s p rio r co n s e n t to p u rch a se the
assets of and assum e the lia b ility to pay
d e p o s its m ade in the A u g u sta and W aterville
b ra n ch e s of Liverm ore Falls Trust C om pany,
Liverm ore Falls, M aine (“ O ther B a n k” ). The
A u g u s ta and W aterville o ffice s of O ther Bank,
w ith a g g r e g a te to ta l IPC d e p o s its of
$ 3 ,9 1 0 ,0 0 0 , w o u ld b e e s ta b lis h e d as
b ra n ch e s of N ortheast Bank, in cre a sin g to 13
the n u m b e r of ba n king o ffices o p e ra te d .
N ortheast Bank is a s u b sid ia ry of N ortheast
B a n k s h a re A s s o c ia tio n , L e w isto n , M aine
(“ B a n k s h a re ” ), a m u lti-b a n k h o ld in g co m
p any c o n tro llin g e ig h t co m m e rcial banks in
M a in e
w ith
a g g r e g a te
d e p o s its
of
$ 3 2 6,7 2 6 ,0 0 0, ranking it as the s ta te ’s fourth
la rg e st c o m m e rc ia l b a n kin g o rg a n iza tio n,
with 13.0 p e rc e n t of the s ta te ’s co m m ercial
b a n k d e p o sits. B ankshare affiliates o p e ra te a
total of 44 o ffice s in e ig h t co u n tie s and are
m ost heavily re p re se n te d in A n d ro sco g g in ,
C u m b e rla n d and P e n o b sco t Counties. O ther
Bank p re se n tly o p e ra te s o ffices at Liverm ore
83
Falls and the a d jo in in g co m m u n ity of Jay in
w e st-ce n tra l Maine, and b ra n ch e s at A u
g u sta and W aterville w hich are the s u b je c t of
the cu rre n t p roposal. A b ra n ch at C hisholm ,
near Jay, w as clo se d in early 1978. The
A u g u sta and W aterville o ffice s are lo ca ted in
K e n n e b e c County, a p p ro xim a te ly 28 road
m iles southeast and 50 road m iles northeast
of Liverm ore Falls, resp e ctive ly, and are d e
em ed to c o m p e te in se p a ra te local m arkets.
Competition. The A u g u sta o ffice to be a c
q u ire d is lo ca ted in a s h o p p in g ce n ter on a
m ajor co m m e rcial street in the s ta te ’s capital
city (1970 p o p ula tio n 21,945) and co m p e te s
in a relevant m arket c o m p o s e d of the city of
A u g u sta and su rro u n d in g co m m u n ities w ithin
an a p p ro xim a te 10 m ile radius. The local
e co n om y is p rin c ip a lly ba se d upon a ctivity at
various state g o ve rn m e n t b u re a u s and a g e n
cies in A u g u sta with a veterans hospital at
n e a rb y T o g u s a ls o b e in g an im p o rta n t
e co n o m ic factor.
A total of seven co m m e rcia l banks o p e ra te
21 o ffice s in this relevant m arket w h ich in
clu d e s rep re se n ta tio n by m ost of the s ta te ’s
la rg e s t b a n k in g o r g a n iz a tio n s . N e ith e r
N ortheast Bank nor any Bankshare affiliate is
rep re se n te d in the m arket. The nearest o ffice
of N ortheast Bank, w hich is the nearest o ffice
of any B ankshare affiliate, is lo ca ted a p
pro xim a te ly 30 road m iles southw est, and no
s ig n ific a n t existing co m p e titio n is in e vi
d e n ce. N ortheast Bank w o u ld a cq u ire O ther
B a n k ’s IPC d e p o s it b a se of $ 2 ,71 0 ,0 0 0 ,
w h ich re p re se n ts a nom inal 1.9 p e rc e n t
share of the A u g u sta m arket. This is seen as
having no m aterial e ffe ct on the structu re of
co m m e rcial ban king in the local m arket or on
the co n ce n tra tio n of b a n king reso u rce s in
Maine.
The W aterville o ffice to be a cq u ire d is
lo ca ted in the d o w n tow n b u siness d is tric t of
W a te rville (19 7 0 p o p u la tio n 18,192) and
co m p e te s in a relevant m arket co m p o se d of
that city and su rro u n d in g co m m u n ities w ithin
an a p p ro xim a te 10 m ile radius. The local
e co n om y is ba se d upon d ive rsifie d m an
u fa cturin g with d a iry farm in g and recreational
activitie s p ro vid in g som e e co n o m ic stim ulus.
A total of six co m m e rcia l banks o p e ra te 15
ban king o ffices in this relevant m arket w hich
in clu de s rep re se n ta tio n by several of the
s ta te ’s la rg e st ban king org a n iza tio ns. Neither
Northeast Bank nor any B ankshare a ffiliate is
p re se n tly rep re se n te d in the m arket. The
nearest o ffice of a Bankshare affiliate is lo
ca te d a p p ro xim a te ly 35 road m iles northw est
in F arm ington, and no sig n ifica n t existing
co m p e titio n is in e vid e n ce . N ortheast Bank
w ould a cq u ire O ther B a n k’s nom inal IPC d e
p o sit b ase of $ 1 ,200,000 w hich rep re se n ts a
84
FEDERAL DEPOSIT INSURANCE CORPORATION
1.7 p e rc e n t share of the W aterville co m m e r
cial b a n king m arket. This is seen as having
no s ig n ific a n t e ffe c t on th e s tru c tu re of
c o m m e rc ia l ban king in the local m arket or on
the c o n c e n tra tio n of b a n king reso u rce s in
M aine.
M aine statutes pe rm it sta te w ide m erg e r
and de novo b ra n ch in g a ctivity and each
p ro p o n e n t, thus, has the p otential to incre a se
fu tu re c o m p e titio n by such e xp a nsio n a c tiv
ity. O ther Bank has o p e ra te d the A u g u sta
and W aterville o ffice s sin ce 1974 as lim ited
se rvice fa c ilitie s and a p p e a rs to lack su ffi
cie n t fin a ncia l and m anagerial reso u rce s to
m ake a s ig n ific a n t m arket p e n e tra tio n in
either of these d ista n t m arkets. N ortheast
B a n k ’s a c q u is itio n of the A u g u sta and W ater
ville o ffic e s of O ther Bank is vie w e d as a
m ech a n ism p e rm ittin g N ortheast Bank and
B ankshare to enter these m arkets w h e re
m ost of the s ta te ’s la rg e st ba n king o rg a n iza
tions are a lre a d y e sta blish e d . This a c q u is i
tion, thus, w o u ld have no s ig n ific a n t e ffe ct on
the p o tential for fu tu re co m p e titio n betw een
the p ro p o n e n ts.
Based on the fo re g o in g , the Board of Di
rectors is of the o p inion that the p ro p o se d
tra n sa ctio n w ould not, in any se ctio n of the
co u n try , s u b s ta n tia lly lessen co m p e titio n ,
tend to c re a te a m onopoly, or in any other
m anner be in restraint of trade.
Financial and Managerial Resources; Fu
ture Prospects. The fin a ncia l and m anagerial
reso u rce s of N ortheast Bank a p p e a r su ffi
cie n t to s u p p o rt the a cq u isitio n of these tw o
b ra n c h e s and the resultant bank is a n tic i
p a ted to have fa v o ra b le futu re p ro sp e cts.
Convenience and Needs of the Community
to be Served. N ortheast Bank p ro p o se s to
u p g ra d e the A u g u s ta and W aterville o ffices
to full se rv ic e c o m m e rcia l ba n k b ra n ch e s
p ro v id in g a nu m b e r of se rvice s not p re se n tly
a va ilab le at O ther B a n k’s existing fa cilitie s.
W hile such se rvice s are ava ilab le in both
A u g u s ta and W aterville at offices of other
banks, N o rth e a st B a n k’s entry into these
co m m u n itie s will p ro v id e an a d d itio n a l a lte r
nate so u rc e of such co m m e rcial ba n king
services. C o n sid era tio ns of c o n ve n ie n ce and
ne e ds of the c o m m u n ities to be served a d d
som e w e ig h t in fa vo r of a p p ro va l of the p ro
p o se d tran sa ctio n .
A review of a va ilab le inform ation, in c lu d in g
the p ro p o n e n ts ’ C o m m u n ity R e in ve stm e n t
A c t S tatem ents, d is c lo s e d no in co n siste n cie s
w ith the p u rp o s e s of the C om m unity Rein
ve stm e n t A ct. The resultant institution is ex
p e c te d to c o n tin u e to m eet the c re d it needs
o f its e ntire c o m m u n ity, co n siste n t with the
safe and so u n d o p e ra tio n of the institution.
B ased on the fo re g o in g , the B oard of Di
rectors has co n c lu d e d that a p p ro va l of the
a p p lic a tio n is w arranted.
Resources
(in thousands
of dollars)
The E astern O hio
Bank
Banking Offices
in Operation
Before
After
4,696
1
2
7,933
1
Union T ow nship
(P.O. M orristow n),
O hio
to merge with
The C o m m unity
S avings Bank
Com pany
Yorkville, O hio
Sum m ary rep o rt by A tto rn ey G eneral,
M arch 30, 1979
We have review ed this p ro p o se d tra n s a c
tion and co n c lu d e that it w o uld not have any
sig n ifica n t e ffe ct on co m p e titio n .
Basis for C o rpo ra tion A p p ro val
M ay 7, 1979
The Eastern O hio Bank, Union Tow nship
(P.O. M orristow n), O hio (“ Eastern B a n k” ), an
insu re d State no n m e m b er bank with total
reso u rce s of $ 4 ,696,000 and total IPC d e
posits of $3,863,000, has a p p lie d , p u rsu a n t
to Section 18(c) and other p ro visio n s of the
Federal D ep o sit In su ra n ce A ct, for the C or
p o ra tio n ’s p rio r co n se nt to m erge, u n d er its
ch a rte r and title, with The C o m m u n ity Sav
ings Bank C om pany, Yorkville, O hio (“ C S B ” ),
with total reso u rce s of $ 7 ,93 3 ,0 0 0 and total
IPC d e p o sits of $6,774,000.
Eastern Bank w as a c q u ire d by and b e
ca m e a w h o lly-o w n e d s u b s id ia ry of First
Steuben B ancorp, Inc., Toronto, O hio (“ First
S te u b e n ” ) e ffe ctive D e ce m b e r 1, 1978. First
Steuben is a reg iste re d m u lti-b a n k hold in g
c o m p a n y co n tro llin g five co m m e rcia l banks
in eastern O hio with a g g re g a te total d e p o sits
of $ 2 0 9,354,000. On A pril 2, 1979, the C or
p o ra tio n ’s Board of D ire cto rs g ra n te d its c o n
sent to the co n so lid a tio n of three of these
su b s id ia ry banks u n d er a new State ch a rte r
in a tra n sa ctio n that w as re g a rd e d , e sse n
tially, as a c o rp o ra te reo rg a n iza tio n .
Competition. Eastern Bank o p e ra te s its
sole o ffice in w estern B elm ont C ounty a p
p ro xim a te ly 18 road m iles w est of W heeling,
W est V irginia, se rvin g a sm all lo ca lize d m ar
ket w hose e co n o m y is p re d ic a te d upon coal
BANK ABSORPTIONS APPROVED BY THE CORPORATION
m in in g . CSB o p e ra te s its sole o ffic e in
Yorkville, in the so u the a ste rn portion of Je f
ferson C ounty in eastern Ohio, a p p ro xim a te ly
8 road m iles north of W heeling and 18 road
m iles south of S teubenville. The area in w hich
CSB co m p e te s , w h ich is re g a rd e d as the
relevant m arket in w h ich to assess the co m
p e titive im p a c t of the p ro p o se d tran sa ctio n ,
is d e lin e a te d as the area w ithin a 10 to 12
roa d -m ile radius of the v illa g e of Yorkville
in c lu d in g s o u th e rn p o rtio n s of J e ffe rs o n
C ounty, a d jo in in g p o rtio n s of northeastern
B e lm o n t C o u n ty a n d th e n e a rb y c ity of
W heeling, W est V irginia.
The v illa g e of Yorkville (1970 p o p ula tio n
1,656) is lo ca te d in the O hio River Valley
along a p rin c ip a l north-south h ig h w ay c o n
n e c tin g S teu b e n ville w ith the W heeling area.
The e co n o m y of the area, w ithin the im
m e d ia te v ic in ity of Yorkville, is heavily d e
p e n d e n t u pon steel p ro d u ctio n fa cilitie s lo
c a te d alo n g the O hio River. The city of
W heeling (1970 p o p u la tio n 48,188) is easily
a c c e s s ib le to this portio n of the O hio River
Valley and serves as a focal p o in t fo r retail
and c o m m e rcia l activity.
The o ffic e s of Eastern Bank and CSB are
lo ca ted a p p ro x im a te ly 24 road m iles ap a rt
w ith little e v id e n c e of sig n ifica n t e co n o m ic
in te ra c tio n b e tw e e n th e ir rela tive s e rvice
areas, as the existing h ig h w a y system serves
to fo c u s travel in e a st-w e st and north-south
d ire c tio n s from the in te rve n in g W he e ling
urb a n area. L o ca te d in clo se p ro xim ity to
Yorkville and C S B ’s o ffice, how ever, are tw o
o ffice s of H e rita g e Bank, N.A. — S te ubenville
(“ H e rita g e B a n k” ), the lead b a n k of First
S teuben. H e rita g e B a n k’s T iltonsville o ffice
(IPC d e p o s its of $5,77 0 ,0 0 0 ) is lo ca ted a p
p ro xim a te ly 2 road m iles north of CSB w hile
H e rita g e B a n k’s o ffice at B rilliant is lo ca ted
a p p ro x im a te ly 10 road m iles distant. Both of
these o ffice s are re g a rd e d as b e ing in d ire ct
co m p e titio n w ith CSB. C onsum m ation of the
p ro p o s e d tra n s a c tio n w o uld serve to elim i
nate this existing c o m p e titio n betw een CSB
and First Steuben and, sim ilarly, fo re clo se
the p o s s ib ility fo r in cre a se d fu tu re c o m p e ti
tion b e tw e en these tw o ba n king o rg a n iza
tions. In light of the m od e st level of d e p o sits
g e n e ra te d at CSB sin ce its org a n iza tio n in
1947, how ever, the p ro p o se d tran sa ctio n is
vie w e d as having little sig n ifica n t e ffe ct upon
existing or potential c o m p e titio n betw een the
tw o b a n king org a n iza tio ns.
In the relevant m arket a total of 15 c o m
m ercial ba n ks o p e ra te 25 ba n king offices.
H e rita g e Bank ranks as the eighth la rg e st
c o m m e rc ia l bank in the m arket, h o ld in g 3.6
p e rc e n t of its IPC d e p o s it base, w hile CSB
ranks as its s e co n d sm alle st ban king o rg a n i
85
zation, h o ld in g a m od e st 1.5 p e rce n t of such
funds. Eastern Bank is not re p re se n te d in this
m arket. The e ffe ct of the p ro p o s e d tra n s a c
tion w o uld be to in cre a se First S te u b e n ’s
share of the m a rke t’s IPC d e p o sits to a p
p ro xim a te ly 5.0 p e rce n t, w h ich is not re
g a rd e d as h a ving any s ig n ific a n t im p a c t
upon the stru ctu re of co m m e rcia l ba n king in
the relevant m arket.
O hio sta tu te s p e rm it sta te w id e h o ld in g
co m p a n y exp a nsio n . First S teuben, w hich
has c o n fin e d its a ctivitie s to a relatively sm all
g e o g ra p h ic region of eastern Ohio, holds
only 0.56 p e rce n t of the s ta te ’s total co m m e r
cial b ank d e p o sits, and w o u ld a c q u ire C S B ’s
nom inal 0.02 p e rc e n t share. The p ro p o se d
tra n sa ctio n thus is re g a rd e d as having no
m aterial e ffe ct upon th e c o n ce n tra tio n of d e
p o sits or b a n king reso u rce s in the State of
Ohio.
The B oard of D ire cto rs is of the o p in io n that
the p ro p o se d m erg e r w o u ld not, in any s e c
tion of the country, su b sta n tia lly lessen co m
petition, tend to c re a te a m on o p o ly, or in any
oth er m anner be in restra in t of trad e .
Financial and Managerial Resources; Fu
ture Prospects. C o n sid e ra tio n s relating to
fin a n cia l and m an a g e ria l re so u rce s have
been sa tisfa cto rily resolved, and the resultant
b a n k is a n ticip a te d to have fa vo ra b le futu re
p ro sp e cts.
Convenience and Needs of the Community
to be Served. C o nsum m ation of the p ro p o se d
tra n sa ctio n is a n tic ip a te d to result in the
in tro d u ctio n of a b ro a d e r ran g e of co m m e r
cial ba n king se rvice s at the resultant bank
w hich should a c c ru e to the b e n efit of the
p re se n t cu sto m e rs of CSB. C o n sid era tio ns
relating to co n ve n ie n ce and needs of the
co m m u n ity are c o n siste n t with a p p ro va l of
the a p p lica tio n .
A review of a va ila b le inform ation, in c lu d in g
the Com m unity R einvestm ent A ct Statem ents
of the tw o p ro p o n e n ts and oth er relevant
m aterial, d isclo se d no in co n siste n cie s with
the p u rp o se s of the A ct. The resultant b ank is
e x p e c te d to co n tin u e to m eet the c re d it
needs of its entire co m m u n ity, c o n siste n t with
the safe and sound o p e ra tio n of the in stitu
tion.
Based on the fo re g o in g , the Board of Di
rectors has c o n c lu d e d that a p p ro va l of the
a p p lica tio n is w arra n te d .
FEDERAL DEPOSIT INSURANCE CORPORATION
86
Resources
(in thousands
of dollars)
C itizens and Farmers
Bank
Banking Offices
in Operation
Before
After
36,704
2
4
7,542
2
W est Point, Virginia
to
merge with
The C olonial Bank
Providence Forge,
Virginia
Sum m ary rep o rt by A tto rn ey G eneral,
M arch 9, 1979
W e have review ed this p ro p o se d tra n s a c
tion a nd c o n c lu d e that it w ould not have a
s u b s ta n tia lly a d ve rse e ffe ct upon c o m p e ti
tion.
Basis for C o rpo ra tion A p p ro va l
M ay 7, 1979
C itizens and Farm ers Bank, W est Point,
V irg in ia (“ C itiz e n s ” ), an insured State non
m e m b e r b a n k w ith to ta l re s o u r c e s o f
$ 3 6 ,7 0 4 ,0 0 0 a n d to ta l IPC d e p o s its of
$ 3 0,786,000, has a p p lie d , p u rsu a n t to S e c
tion 18(c) and other pro visio n s of the Federal
D ep o sit In su ra n ce A ct, fo r the C o rp o ra tio n ’s
p rio r co n se n t to m erge with The Colonial
Bank, P ro v id e n c e Forge, V irg in ia (“ C o lo
nia l” ), with total reso u rce s of $7,54 2 ,0 0 0 and
total IPC d e p o s its of $5,154,000. The banks
w o u ld m erg e u n d e r the ch a rte r and title of
C itizens and, in c id e n t to the m erger, the tw o
e xisting o ffices of Colonial w ould b e co m e
b ra n c h e s of the resultant bank, in cre a sin g
the n u m b e r of its o ffices to four.
Competition. Both banks are lo ca ted in
s o u the a ste rn V irg in ia , b etw een R ichm ond
and N e w p o rt News. The clo se st o ffices of the
p ro p o n e n ts are s e p a ra te d by a p p ro xim a te ly
18 road m iles with no intervening o ffice s of
o ther c o m m e rcia l banks. The Pam unkey and
Y o rk R iv e rs s e rv e as n a tu ra l b a rr ie rs
s e p a ra tin g m ost of the b a n ks’ se rvice areas.
The only c o n n e c tin g point is at W est Point,
resulting in som e o ve rla p in se rvice areas.
The e ffe c t of the p ro p o se d m erg e r w ould
be m ost d ire c t and im m ediate in New Kent
and C harles C ity C ounties, Virginia, the p ri
m ary se rvice area of Colonial. A t their clo se st
point, New Kent and C harles C ity C ounties
are 7 and 10 m iles, re sp e ctive ly, from the city
lim its of R ichm ond and run to w ithin 27 and
22 m iles, re sp e ctive ly, of N e w p o rt News. The
area is m ainly rural and sp a rse ly p o p u la te d
w ith nom inal industrial a ctivitie s. The 1977
e ffe c tiv e ho u seh o ld bu yin g in co m e of New
Kent and C harles C ity C ounties w as $11, 155
and $8,684, resp e ctive ly, well be lo w the state
a ve ra g e of $14,524. B e ca u se of the clo se
p ro xim ity of R ichm ond, m any of the resid e n ts
of the area co m m u te there for e m p lo ym e n t
and other b u siness a ctivitie s. Colonial is the
only co m m e rcial bank rep re se n te d in this
tw o -c o u n ty area. The clo s e s t co m m e rcia l
b a n ks are a p p ro x im a te ly ten m iles fro m
Q uinton Branch, and 15 m iles from the m ain
office, in the s u b u rb s of R ichm ond. W hile
C olonial does not a ctive ly co m p e te in the
R ichm ond m arket, the ba n ks in that area
p ro vid e co n ve nie n t alte rn a tive s fo r residents
of N ew Kent and C harles C ity C ounties who
w o rk or shop in the R ichm ond area. This
tra n sa ctio n will serve to su b stitu te one in d e
p e n d e n t ba n k for a n other and w hile som e
e xisting co m p e titio n will be elim in a te d , it is
not c o n s id e re d sig n ifica n t.
W hile state statutes w o uld allow in cre a se d
fu tu re c o m p e titio n th ro u g h de novo b ra n c h
ing, it a p p e a rs unlikely that this w o u ld d e
ve lo p . Colonial d oes not have s u fficie n t fi
nancial and m anagerial reso u rce s to m ount
any s ig n ific a n t exp a nsio n p ro g ra m , and the
lim ited d e p o s it p otential of C o lo n ia l’s twoco u n ty m arket area m akes it a less than
d e sira b le area for C itizens to enter de novo.
The p ro p o se d m erg e r w o uld not e lim inate
any s ig n ific a n t e xisting or potential c o m p e ti
tio n b e tw e e n C itize n s a nd C o lo n ial, nor
w o uld it have any a p p re c ia b le e ffe ct on the
co m m e rcia l ban king stru ctu re of any relevant
m arket.
Based on the fo re g o in g , the B oard of Di
rectors is of the o p inion that the p ro p o se d
m erg e r w o uld not, in any section of the c o u n
try, su b sta n tia lly lessen co m p e titio n , tend to
cre a te a m onopoly, or in any o ther m anner be
in restraint of trade.
Financial and Managerial Resources; Fu
ture Prospects. The fin a ncia l and m anagerial
reso u rce s of both p ro p o n e n ts are re g a rd e d
as sa tisfa cto ry for p u rp o se s of the p ro p o se d
tran sa ctio n , and the resultant bank w ould
a p p e a r to have fa vo ra b le fu tu re p ro sp e cts.
Convenience and Needs of the Community
to be Served. C onsum m ation of the p ro p o se d
m erg e r w ould m ake a va ila b le e xp a n d e d ser
vice s, in cre a se d le n d in g lim its, and trust se r
vice s to C o lo n ial’s cu sto m e rs. C o n sid e ra
tions relating to co n ve n ie n ce and needs of
the co m m u n ity a p p e a r co n siste n t with a p
proval of the a p p lica tio n .
A review of ava ilab le inform ation d isclo se d
no in co n siste n cie s with the p u rp o se s of the
C o m m u n ity R einvestm ent A ct. The resultant
b a n k is e x p e c te d to co n tin u e to m eet the
c re d it n eeds of its entire co m m u n ity, c o n sis
te n t with the safe and sound o p e ra tio n of the
bank.
BANK ABSORPTIONS APPROVED BY THE CORPORATION
Based on the fo re g o in g , the Board of Di
rectors has c o n c lu d e d that a p p ro va l of the
a p p lic a tio n is w arranted.
87
The Board of D ire cto rs is of the o p inion that
the p ro p o se d tra n sa ctio n w ould not, in any
se ctio n of the country, su b sta n tia lly lessen
co m p e titio n , tend to cre a te a m onopoly, or in
any other m anner be in restraint of trade.
Financial and Managerial Resources; Fu
ture Prospects. F inancial a nd m an agerial re
Resources
(in thousands
of dollars)
The M erchants Bank
119,133
Banking Offices
in Operation
Before
After
12
12
B urlington, Verm ont
to merge with
Batreal, Inc.
-
-
-
-
Barre, V erm ont
and
M erchants
P rop ertie s, Inc.
B urlington, Verm ont
S um m ary report by A tto rn ey G eneral,
M arch 30, 1979
so u rce s of all pa rtie s to the p ro p o se d tra n s
a ction are sa tisfa cto ry and the resultant bank
is a n ticip a te d to have fa vo ra b le fu tu re p ro s
pects.
Convenience and Needs of the Community
to be Served. The p ro p o se d m erg e r w ould
not have any e ffe ct on the c o n ve n ie n ce and
n eeds of the co m m u n ity to be served.
A review of a va ilab le inform ation d isclo se d
no in co n siste n cie s with the p u rp o se s of the
C om m unity R einvestm ent Act. The resultant
b ank is a n tic ip a te d to co n tinu e to m eet the
c re d it needs of its entire com m unity, c o n s is
tent with the safe and sound op e ra tio n of the
institution.
B ased on the fo re g o in g inform ation, the
B oard of D irectors has c o n c lu d e d that a p
proval of the a p p lica tio n is w arranted.
The p ro p o s e d m erg e r involves tw o 100%
o w n e d real estate s u b s id ia ry co rp o ra tion s; is
e sse n tia lly a co rp o ra te reorganization; and
w ould have no e ffe c t on co m p e titio n .
Basis for C o rpo ra tion A p p ro val
M ay 21, 1979
The M erch a n ts Bank, B urlington, Verm ont
(“ M e rc h a n ts ” ), an insured State n o n m em ber
ba n k with total reso u rce s of $ 1 19,133,000
and total IPC d e p o s its of $ 100,947,000, has
a p p lie d , p u rsu a n t to Section 18(c) and other
p ro visio n s of the Federal D eposit Insurance
A ct, fo r the C o rp o ra tio n ’s p rio r co n se nt to
m erg e w ith Batreal, Inc., Barre, Verm ont
(“ B a tre a l” ), and M erch a n ts Properties, Inc.,
B u rlin g to n , V e rm o n t (“ M P I” ), n o n in su re d ,
n o n ba n kin g e ntities w h o lly-o w n e d by M er
chants. The p ro p o s e d tran sa ctio n w ould be
e ffe c te d u n d er the ch a rte r and title of M er
chants.
Competition. Batreal w as fo rm e d by The
Barre Trust C om pany, Barre, Verm ont, prior
to its m erger with M erchants. MPI was form ed
in 1958 by The M erchants National Bank,
p re d e ce sso r to M erchants. Both Batreal and
MPI were organized for the purpose of holding
and m anaging real estate necessary for the
co n d u c t of banking business. Essentially this
transaction is an internal reorganization which
w ould result in returning title of the real estate
to M e rc h a n ts . The p ro p o s e d tra n s a c tio n
would have no effect on existing or potential
com p e titio n betw een the proponents or on the
structure of com m ercial banking in any rele
vant area.
Resources
(in thousands
of dollars)
F irst State Bank
Banking Offices
in Operation
Before
34,041
4
18,658
3
After
7
W aynesboro,
M ississippi
to merge with
Bank of Leakesville
Leakesville,
M ississippi
Sum m ary report by A tto rn ey G eneral,
M arch 30, 1979
There a p p e a rs to be little likelihood that
p re se n t co m p e titio n betw e en A p p lic a n t and.
Bank will be in cre a se d as a result of de novo
e xpansion, in view of th e ir sm all size and the
a b se n ce of su ita ble p o p u la tio n ce n ters in
W ayne and G reene C ounties in w hich either
m igh t esta blish a de novo b ranch. M oreover,
c u r r e n t M is s is s ip p i la w r e q u ir e s t h a t
Leaksville have a p o p u la tio n of 3,100 in o rd e r
for a de novo b ra n ch to be o p e n e d a n d its
cu rre n t p o p ula tio n is 1,200.
Basis fo r C o rpo ra tion A p p ro va l
June 18, 197
First State Bank, W aynesboro, M ississippi
(“ FSB” ), an insured State n o n m e m b er bank
88
FEDERAL DEPOSIT INSURANCE CORPORATION
with total reso u rce s of $34 ,0 4 1 ,0 0 0 and total
IPC d e p o s its of $26,625,000, has a p p lie d ,
pu rsu a n t to Section 18(c) and o ther p ro vi
sions of the Federal D ep o sit In su ra n ce A ct,
fo r the C o rp o ra tio n ’s p rio r co n se n t to m erge,
u n d e r its c h a rte r and title, w ith Bank of
Leakesville, Leakesville, M ississip p i (“ B O L ” ),
with total reso u rce s of $18 ,6 5 8 ,0 0 0 and total
IPC d e p o s its of $14,755,000. In cid e n t to the
tra n s a c tio n , the three o ffices of B O L w ould
be e s ta b lis h e d as b ra n ch e s of FSB.
Competition. FSB, h e a d q u a rte re d in the
to w n o f W a y n e s b o ro (1 9 7 0 p o p u la tio n
4,368), o p e ra te s lim ited se rvice fa cilitie s at
W a y n e s b o ro (N o rth s id e ) and C la ra (e s ti
m ated p o p u la tio n 200), a p p ro xim a te ly 8 road
m iles southw est; and a d rive -u p fa c ility at
B u cka tu n n a (estim a te d p o p ula tio n 350), a p
p ro x im a te ly 12 road m iles so u th e a st, all
w ithin W ayne C ounty in so u the a ste rn M issis
s ip p i. BOL, h e a d q u a rte re d in the town of
L e a k e s v ille (1 9 7 0 p o p u la tio n 1 ,0 9 0 ) in
G ree n e C ounty, o p e ra te s b ra n c h e s near
L u c e d a le (1970 p o p ula tio n 2,060), a p p ro x i
m ately 22 road m iles south, and at State Line
(19 7 0 p o p u la tio n 598), a p p ro x im a te ly 22
road m iles n o rth e a st.*
W ayne C ounty (1970 p o p ula tio n 16,650),
lo ca ted in rural southeastern M ississip p i, has
a d iv e rs ifie d e co n om y e n co m p a ssin g m an
u fa ctu rin g , tim b e r p ro d u ctio n , livestock, a g
riculture, and oil p ro d u ctio n . Its 1977 m edian
h o u sehold bu yin g level of $8,678, w hile s ig
n ifican tly low er than the state fig u re , c o m
p ares fa v o ra b ly w ith other n e a rb y areas.
G reene C ounty (1970 pop ula tio n 8,545), lo
c a te d a d jo in in g and im m e d ia tely south of
W ayne C ounty, has an eco n om y p re d ic a te d
c h ie fly on a g ric u ltu re and tim b e r p ro d u ctio n ,
with its 1977 m ed ia n h ousehold buying level
of $ 6 ,445 ranking as one of the low est in the
state. In lig h t of the sp a rse p o p ula tio n and
lim ited e c o n o m ic s ig n ific a n c e of B O L ’s trad e
area and c o n s id e rin g the d ista n ce s betw een
b a n king o ffic e s in this rural area, the relevant
m arkets in w h ich to assess the co m p e titive
im p a c t of the p ro p o s e d tran sa ctio n are d e
lineated as the area w ithin an a p p ro xim a te 15
road m ile radius of each of B O L ’s three
offices.
The p ro p o n e n ts ’ c lo se st offices are lo ca ted
a p p ro x im a te ly 8 road m iles a p a rt in the State
* P rin cip a ls h o ld in g s to c k c o n tro l of First State Bank
a c q u ire d s to c k co n tro l of B ank of Le a ke sville in O c
to b e r, 1978. S in ce th e c u rre n t a ffilia tio n of the tw o
ba n ks has not h e re to fo re bee n s u b je c t to re g u la to ry
s cru tin y, th e a ffilia tio n is of no p e rs u a s iv e va lu e in
d e te rm in in g , fo r p u rp o s e s of the B ank M e rg e r A ct,
w h a t c o m p e titiv e im p a ct, if any, th e p ro p o s e d tra n s a c
tio n m ay have. T he re fo re , th e B o ard of D ire c to rs has
ig n o re d th e a ffilia tio n in its a s s e s s m e n t of th e p ro p o s a l.
Line m arket near the W ayne and G reene
co u n ty Line. FSB’s B u cka tu n n a o ffice is a
lim ited se rvice d rive -u p fa c ility co n sistin g of
o n ly o n e d riv e -in w in d o w a n d a s in g le
w a lk-u p lo b b y te ller station p ro vid in g fo r only
d e p o s it and p a ym e n t fu n ctio n s. The p ro xim
ity of this o ffice to the State Line b ra n ch of
BO L in d ica te s that som e existing co m p e titio n
betw e en the p ro p o n e n ts w o u ld be e lim inated
by the p ro p o se d tran sa ctio n .
In the relatively sm all State Line relevant
m arket, FSB’s B u cka tu n n a fa cility, e s ta b
lis h e d in 1 9 6 6 , h o ld in g an e s tim a te d
$ 2 ,68 7 ,0 0 0 in IPC de p osits; B O L ’s State Line
B ra n c h , e s ta b lis h e d in 1 9 4 7 , h o ld in g
$ 3 ,4 6 3 ,0 0 0 in IPC d e p o s its ; a n d an
A la b a m a -b a se d co m m e rcial bank h o lding
$ 1 2 ,4 4 5 ,0 0 0 in IPC d e p osits, c o m p rise all of
the co m m e rcia l ba n king a lternatives. W hile
the p ro p o se d tra n sa ctio n w ould re d u ce from
three to tw o the nu m b e r of co m m e rcial banks
rep re se n te d in the m arket, it is noted that
n e ith e r FSB n o r BOL has g e n e ra te d a s ig
n ifican t d e p o s it base th ro u g h these offices.
The M ississip p i portion of this area had a
1970 p o p u la tio n of 4 ,280 d is trib u te d over
som e 250 sq u a re miles, or a b o u t 17 p ersons
per sq u a re m ile. N evertheless, the p ro p o se d
m erg e r is vie w e d as having som e a d ve rse
im p a ct upon the structu re of co m m e rcial
b a n king and the co n ce n tra tio n of ban king
reso u rce s in this local m arket.
In the Leakesville and L u ce da le relevant
m arke ts, FSB in not re p re se n te d . B O L ’s
Leakesville m ain o ffice w ith IPC d e p o sits of
$ 9 ,41 1 ,0 0 0 is the only co m m e rcial ban king
o ffice for a d ista n ce of a p p ro xim a te ly 20 road
m iles. Its o ffice near Lu ce da le , e sta b lish e d in
1969, holds IPC d e p o sits of only $ 1 ,881,000
and has fa iled to d e ve lo p a sig n ifica n t share
of the m a rke t’s d e p o sit base with the two
la rg e r, lo c a lly -b a s e d c o m m e rc ia l b a n k s
a g g re g a te ly co n tro llin g 94.1 p e rce n t of the
m a rke t’s IPC d e p osits. FSB’s a cq u isitio n of
B O L ’s o ffice s at Leakesville and L u ce da le is
not re g a rd e d as having any sig n ifica n t im
p a c t upon the stru ctu re of co m m e rcia l b a n k
ing or the co n ce ntra tio n of b a n king resources
in their resp e ctive m arkets.
M is s is s ip p i s ta tu te s p e rm it de novo
b ra n c h in g w ith in a 100 -m ile ra d iu s of a
b a n k ’s h o m e o ffic e , s u b je c t to c e rta in
m inim u m c a p ita liz a tio n re q u ire m e n ts and
hom e o ffice p ro te ctio n p rovisions. There are
no co m m u n ities of su fficie n t size in G reene
C ounty o pen to b ra n ch in g to e n co u ra g e de
novo entry by FSB. In the L u ce d a le relevant
m arket in G e o rg e C ounty, such exp a nsio n is
fe a sib le fo r FSB, how ever, such an o c c u r
ren ce seem s rem ote in lig h t of the p re se n ce
of e sta b lish e d lo ca lly-b a se d banks and the
89
BANK ABSORPTIONS APPROVED BY THE CORPORATION
d is ta n c e and lack of easy a cce ss from its
p re se n t base of ope ra tio n . BOL, for its part,
w o u ld be u n lik e ly to e n te r th e d is ta n t
W a yn e sb oro m arket to c o m p e te d ire ctly with
the b a n k s re p re s e n te d the re . T he re fore ,
there a p p e a rs to be no sig n ifica n t potential
for in cre a se d c o m p e titio n to d e ve lop b e
tw een the p ro p o n e n ts in the fo re se e a b le fu
ture.
The B oard of D ire cto rs is of the o p inion that
the p ro p o s e d m erg e r w o uld elim inate som e
existing c o m p e titio n b etw een FSB and BOL
and w o u ld som ew hat in cre a se co n ce n tra tio n
in the local m arket. It w ould not, how ever, in
a ny s e c tio n of the co u n try, s u b s ta n tia lly
le s s e n c o m p e titio n , te n d to c r e a te a
m onopoly, or in any other m anner be in
restraint of trade.
Financial and Managerial Resources; Fu
ture Prospects. The fin a ncia l and m anagerial
reso u rce s of FSB and the resultant bank are
sa tisfacto ry. The fin a ncia l reso u rce s of BOL
w ould be c o n s id e ra b ly im pro ve d as p a rt of a
c o m b in e d bank w hich w o uld serve to out
w e ig h the som ew hat ne g ative co m p e titive
a s p e c ts of the p ro p o se d tran sa ctio n . The
resultant bank is a n tic ip a te d to have fa vo r
a ble fu tu re p ro sp e cts.
Convenience and Needs of the Community
to be Served. C onsum m ation of the p ro p o se d
tra n sa ctio n will have little e ffe ct on the level
and p ric in g of co m m e rcial ba n king services
in the areas served by the p ro p o n e n ts. C on
s id e ra tio n s re la tin g to c o n v e n ie n c e and
n eeds are co n s is te n t with a p p ro va l of the
a p p lic a tio n .
A review of a v a ilab le inform ation, in clu din g
the C o m m u n ity R e investm ent A ct S tatem ents
of the p ro p o n e n ts and oth er relevant m ate
rial, d is c lo s e d no in c o n siste n cie s with the
p u rp o s e s of the A ct. The resultant bank is
e x p e c te d to c o n tin u e to m eet the c re d it
needs of its entire co m m u n ity, co n sisten t with
the safe and sound o p e ra tio n of the institu
tion.
B ased on the fo re g o in g , the B oard of Di
rectors has c o n c lu d e d that a p p ro va l of the
a p p lic a tio n is w arranted.
Resources
(in thousands
of dollars)
C entral S avings
Bank
Banking Offices
in Operation
Before
After
114,888
8
12
4 8 ,95 9 *
4
Baltim ore, M aryland
to merge with
A rlin g to n Federal
S avings and Loan
A sso cia tio n
Baltim ore, M aryland
* Total tim e and s a v in g s
d e p o s its .
Sum m ary rep o rt by A tto rn ey General,
May 11, 1979
We have review ed this p ro p o se d tra n s a c
tion and co n c lu d e that it w ould not have a
sub stan tia l co m p e titive im pact.
Basis for C o rpo ra tion A p p ro val
June 25, 1979
Central S avings Bank, Baltim ore, M aryland
(“ C S B ” ), an insu re d m utual sa vin g s bank
w ith total reso u rce s of $1 1 4,8 8 8 ,0 0 0 and total
tim e and sa vin g s d e p o sits of $ 9 7,257,000,
has a p p lie d , p u rsu a n t to S ection 18(c) and
other p rovisions of the Federal D ep o sit Insur
an ce Act, for the C o rp o ra tio n ’s p rio r co n se nt
to m erge, u n d er its ch a rte r and title, with
A rlin g to n Federal Savings and Loan A s s o c i
ation, Baltim ore, M aryland (“ A s s o c ia tio n ” ), a
F ed e ra lly-in su re d sa vin g s and loan a sso cia
tion with total tim e and sa vin g s d e p o sits of
$48,959,000, u pon the latter in stitu tio n ’s c o n
ve rsio n to a State ch a rte r. In cid e n t to the
m erger, the four o ffice s of A sso cia tio n w ould
be e sta b lish e d as b ra n ch e s of C entral Sav
ings Bank, in cre a sin g to 12 the n u m b e r of
o ffices o p e ra te d .
Competition. CSB, b a se d in the co m m e r
cia lized “ d o w n to w n ” p ortion of the C ity of
B altim ore, o p e ra te s tw o b ra n ch e s in the City
of Baltim ore, and five in n e ig h b o rin g B alti
m ore and A nne A ru n d el Counties. A s s o c ia
tion, also h e a d q u a rte re d in “ d o w n to w n ” B al
tim ore, o p e ra te s three b ra n ch o ffices in Bal
tim ore County. Both institutions are re g a rd e d
as c o m p e tin g fo r fu n d s th ro u g h o u t the m et
ropolitan B altim ore area w hich is re g a rd e d as
the relevant m arket in w hich to assess the
co m p e titive im p a c t of the p ro p o se d tra n sa c
tion. This m arket is d e line a te d as the area
w ithin an a p p ro xim a te 20 mile radius of the
p ro p o n e n ts ’ head o ffices in B altim ore and
co n tain s a p o p ula tio n estim a te d to be in
e xce ss of 1,500,000. T he area enjoys a bro a d
e c o n o m ic b a se w ith he a vy in d u s try and
90
FEDERAL DEPOSIT INSURANCE CORPORATION
c o m m e rcia l a ctivity p re va le n t in the central
city and residential and lig h t industrial d e
v e lo p m e n t in su rro u n d in g areas.
A total of 54 thrift institutions o p e ra te 209
o ffic e s in this m arket with the fo u r la rg e st
in stitutions a g g re g a te ly h o ld in g 52.9 p e rce n t
of the a re a ’s thrift institution d e p osits. CSB is
ranked as the m a rk e t’s 8th la rg e st th rift in
stitution, h o ld in g 2.2 p e rce n t of its thrift in
stitution d e p osits, while A sso cia tio n is ranked
20th and holds a m ere 1.1 p e rce n t share of
such fu n ds. The resultant institution w ould
in cre a se its m arket share of thrift institution
d e p o s its to 3.3 p e rc e n t and rank as the 6th
la rg e st institution, but w ould rem ain s u b s ta n
tially sm alle r than the la rg e r th rift in stitutions
a lre a d y well e sta b lish e d in the m arket. The
p ro p o s e d tran sa ctio n is re g a rd e d as having
no m aterial e ffe c t on the stru ctu re of thrift
institution ba n king or the co n ce n tra tio n of
reso u rce s in the relevant m arket.
The p ro xim ity of the p ro p o n e n ts ’ head of
fice s, lo ca te d on o p p o site co rn e rs of a m ajor
“ d o w n to w n ” B altim ore intersection, and of a
b ra n ch of CSB lo ca ted in a su b u rb a n sh o p
p ing c e n te r a cro ss a m ajor tra ffic arte ry from
a n o th e r s h o p p in g ce n te r co n ta in in g a b ranch
o ffic e of A sso cia tio n , in d ica te s that the p ro
p o n en ts are p re se n tly in d ire c t c o m p e titio n
and th a t som e e xisting co m p e titio n w o uld be
elim in a te d by c o n su m m a tion of the p ro p o se d
tran sa ctio n . Sim ilarly, as M aryland statutes
p e rm it sta te -w id e de novo b ra n ch in g , each
p ro p o n e n t has the potential to a ctive ly e x
pa n d its o p e ra tio n by this m eans. Such a c
tion c o u ld serve to in cre a se co m p e titio n b e
tw een these tw o institutions. There is, h o w
ever, e v id e n c e of intense co m p e titio n for
thrift d e p o s its in the B altim ore m arket; and in
light of the p ro p o n e n ts ’ relatively m od e st size
in relation to other B altim ore thrift institutions,
the p ro p o s e d tra n sa ctio n is seen as having
no s ig n ific a n t a d ve rse e ffe ct on either e xist
ing c o m p e titio n or on the potential for futu re
co m p e titio n .
The B oard of D irectors is of the op in io n that
the tra n s a c tio n w o u ld not, in any section of
the co u n try, s u b s ta n tia lly lessen co m p e titio n ,
tend to cre a te a m onopoly, or in any other
m anner be in restraint of trade.
Financial and Managerial Resources; Fu
ture Prospects. The fin a ncia l and m anagerial
reso u rce s of each p ro p o n e n t are co n sid e re d
a d e q u a te fo r p u rp o s e s of this pro p o sa l. The
resultant ba n k w ould have sa tisfa cto ry fin a n
cial and m an agerial resources, and its fu tu re
p ro s p e c ts w o u ld a p p e a r fa vo ra b le .
Convenience and Needs of the Community
to be Served. The p ro p o s e d tra n s a c tio n
w o uld result in no s u b stan tia l c h a n g e in the
s e rvice s now a v a ilab le in the m arket. C on
sid e ra tio n s of co n v e n ie n ce and n eeds of the
co m m u n ity are co n sisten t with a p p ro va l of
the a p p lica tio n .
A review of ava ilab le inform ation, in clu d in g
the C om m unity R einvestm eft A c t S tatem ents
of the p ro p o n e n ts and o th er relevant m ate
rial, d isclo se d no in co n siste n cie s w ith the
p u rp o se s of the Act. The resultant bank is
e x p e c te d to co n tin u e to m eet the c re d it
ne e ds of its entire co m m u n ity, co n siste n t with
the safe and sound o p e ra tio n of the in stitu
tion.
Based on the fo re g o in g , the B oard of Di
recto rs has co n c lu d e d that a p p ro va l of the
a p p lic a tio n is w arranted.
Resources
(in thousands
of dollars)
Peoples W estchester
Savings Bank
767,010
Banking Offices
in Operation
Before
14
After
17
Tarrytown, New York
to merge with
W estchester C ounty
Savings and Loan
A sso cia tio n
28,787*
3
O ssining, New York
* Total dep osits.
Sum m ary report by A tto rn ey G eneral,
June 27, 1979
We have review ed this p ro p o se d tra n s a c
tion and co n c lu d e th a t it w o u ld not have a
sig n ifica n tly a d ve rse e ffe c t u pon c o m p e ti
tion.
Basis for C o rpo ra tion A p p ro val
June 25, 1979
P eoples W estch e ster S avings Bank, Tarrytow n, New York (“ P e o p le s” ), an insured
m utual savings bank with total reso u rce s of
$ 7 6 7 ,0 1 0 ,0 0 0
a n d to ta l d e p o s its
of
$707,7 8 4 ,0 0 0, has a p p lie d , p u rsu a n t to S e c
tion 18(c) and other pro visio n s of the Federal
D e p o sit Insurance A ct, for the C o rp o ra tio n ’s
p rio r co n se n t to m erg e with W e stch e ster
C ounty Savings and Loan A sso cia tio n , O s
sining, N ew York (“ S & L” ), a F ederally insured
m utual sa vin g s and loan asso cia tio n , with
total d e p o s its of $28,787,000. The tw o in
stitu tio n s w o u ld m erg e u n d er the ch a rte r and
with the title of P eoples and, in cid e n t to the
m erg e r, the three o ffice s of S&L w o u ld b e
co m e b ra n ch e s of the resultant bank, w hich
w o u ld c o m m e n ce o p e ra tin g with a total of 17
offices.
91
BANK ABSORPTIONS APPROVED BY THE CORPORATION
Competition. T he m ain o ffic e a n d 13
b ra n c h e s of Peoples, as well as the three
o ffice s of S&L, are all lo ca ted in W e stch e ster
County. W e stch e ster C ounty is situ a te d im
m ed ia te ly north of New York City and is pa rt
of the N ew Y ork-N ew Je rse y SMSA th a t c o n
sists of the five b o ro u g h s of New York City, as
well as Putnam , R ockland, and W estch e ster
C ounties in N ew York, a nd Bergen C ounty in
New Jersey. These areas all have close
e c o n o m ic ties, w ith s ig n ific a n t com m u ta tion
a m ong them for w ork, sh o p p in g and leisure.
In a d d itio n , thrift in stitutions, p a rticu la rly the
la rg e New York C ity-b a se d th rifts, a d ve rtise
th ro u g h o u t the area and there is intense
co m p e titio n in the region. The 1970 p o p u la
tion of the New York-N ew Jersey SMSA w as
9,973,577, and there are 849 o ffices of 144
th rift in s titu tio n s w ith to ta l d e p o s its of
$64 ,1 6 5 ,7 7 6 ,0 0 0 . The e ffe ct of this p roposal
w o u ld be in s ig n ific a n t in this area.
The c lo se st o ffice s of the p ro p o n e n ts are
less than one mile apart, with no intervening
o ffic e s of o ther th rift institutions. In sp ite of
this th e re are alte rn a tive s ava ilab le in the
v icin ity. In W e stch e ster C ounty alone there
are 120 o ffic e s of 40 thrift in stitutions and the
c o m m u ta tio n p a tte rn s o f a re a re s id e n ts
s u g g e s t th a t the thrift institutions ou tside the
co u n ty have a su b stan tia l co m p e titive im p a ct
w ithin the county. The c o m p e titio n that w ould
be e lim in a te d by this m erg e r is not c o n s id
ere d to be substan tia l.
N ew York law restricts de novo e xpansion
by a m utual sa vin g s bank to one b ra n ch each
year. The d e v e lo p m e n t of a sig n ifica n t in
crea se in co m p e titio n th ro u g h such e xp a n
sion is th e re fo re lim ited. Further, the intense
co m p e titio n existing am ong thrift institutions
in the New York C ity area m inim izes the
c o m p e titiv e s ig n ific a n c e of a d d itio n a l de
novo b ra n c h in g a ctivity.
Based on the fo re g o in g , the B oard of Di
recto rs is of the o p in io n that the p ro p o se d
m erg e r w o u ld not, in any se ctio n of the c o u n
try, su b s ta n tia lly lessen co m p e titio n , tend to
c re a te a m onopoly, or in any other m anner be
in restra in t of trade.
Financial and Managerial Resources; Fu
ture Prospects. S & L’s fin a ncia l co n d itio n is
re g a rd e d as less than sa tisfa cto ry as a result
of s ig n ific a n t p otential losses in its se cu rity
portfo lio , low c a p ita liza tio n , p o o r e arnings
retention, and heavy b o rro w in g s. The fin a n
cial co n d itio n of P eoples is co n sid e re d to be
sound and g e n era lly free of such criticism .
The resu lta n t institution w ould have the re
so u rc e s to a b s o rb the losses of S&L and
c o rre c t the o th er d e fic ie n c ie s , w ithin the
fra m e w o rk of a fin a n c ia lly sound thrift institu
tion. C o n sid e ra tio n s relating to m anagerial
reso u rce s and the fu tu re p ro s p e c ts of the
resultant institution have been sa tisfa cto rily
reso lve d and o u tw e igh any a d ve rse c o m
p e titive effects.
Convenience and Needs of the Community
to be Served. Som e b e n efit w o u ld a cc ru e to
the cu sto m e rs of S&L from the b ro a d e n in g of
loan and d e p o s it se rvice s and e xp a n d e d
b a n king hours at the p re se n t o ffice s of S&L;
how ever, the p ro p o se d tra n sa ctio n is e x
p e cte d to have little m aterial im p a c t upon
co n ve n ie n ce and n eeds of the co m m u n ity as
such se rvice s are rea d ily a va ila b le at offices
of o ther thrift institutio n s in the areas served
by the p ro p o n e n ts. C o n sid era tio ns of c o n
ve n ie n ce and needs of the co m m u n ities to be
se rve d are co n siste n t with a p p ro va l of the
tran sa ctio n .
A review of a va ilab le in form ation, in clu d in g
the p ro p o n e n ts ’ C o m m u n ity R e in ve stm e n t
A c t Statem ents, d is c lo s e d no in co n siste n cie s
with the p u rp o se s of the C om m unity Rein
ve stm e n t Act. The resultant institution is ex
p e c te d to co n tin u e to m eet the c re d it needs
of its entire co m m u n ity, co n siste n t w ith the
safe and sound o p e ra tio n of the institution.
Based on the fo re g o in g , the B oard of Di
rectors has c o n c lu d e d th a t a p p ro va l of the
a p p lic a tio n is w arra n te d .
Resources
(in thousands
of dollars)
The Dime S avings
Bank o f New Y ork
Banking Offices
in Operation
Before
After
4,5 33 ,9 0 4
14
22
272,478
8
New York
(B rooklyn), New
York
to merge with
M echanics Exchange
S avings Bank
A lb a n y, N ew York
Sum m ary rep o rt by A tto rn e y G eneral,
N o ve m b e r 17, 1978
We have review ed this p ro p o se d tra n s a c
tion and c o n c lu d e th a t it w ould not have a
su b stan tia l c o m p e titive im pact.
Basis for C o rpo ra tion A p p ro va l
July 16, 1979
The Dim e Savings Bank of N ew York, New
York (B rooklyn), New York (“ D im e ” ), an in
su re d m utual sa vin g s bank with total re
so u rce s of $ 4 ,55 3 ,9 0 4 ,00 0 and total d e p o sits
92
FEDERAL DEPOSIT INSURANCE CORPORATION
of $4,157,822,000, has a p p lie d , p u rsu a n t to
S ection 18(c) and other pro visio n s of the
Federal D eposit Insurance Act, for the C or
p o ra tio n ’s p rior c o n se nt to m erge, un d er its
c h a rte r and title, with M ech a n ics E xchange
Savings Bank, A lbany, New York (“ M ESB” ),
an insu re d m utual sa vin g s ba n k with total
reso u rce s of $272,4 7 8 ,0 0 0 and total d e p o sits
of $ 251,361,000, and to esta blish the e ig h t
o ffic e s of MESB as b ra n ch e s of the resultant
institution.
Competition. The A p p lic a n t p re se n tly o p
erates 13 b ra n ch e s and 16 EFTU fa cilitie s in
Kings, Q ueens, New York, N assau, and Suf
fo lk C ounties in the extrem e southeastern
portion of N ew York State. MESB, h e a d q u a r
tered in A lb a n y, o p e ra te s 4 b ra n ch e s within
A lb a n y C ounty and a branch o ffice in each of
S aratoga, S ch o h a rie and O neonta C ounties.
The relevant m arket in w hich to a ssess the
co m p e titiv e im p a c t of the p ro p o se d m erg e r
is re g a rd e d prim a rily as the area w ithin a 15
road-m ile radius of the City of A lb a n y from
w hich MESB d e rive s the bulk of its de p osits.
W hile s u b je c t o p e ra te s a single b ra n ch office
in each of the co m m u n ities of O neonta, W il
ton T ow nship and C obleskill, these o ffice s
are of m od e st size and their a cq u isitio n by
Dim e w ould have only m inim al co m p e titive
im pa ct.
A total of 14 thrift in stitutions are re p
resented in the A lb a n y m arket. MESB, rank
ing as this m a rk e t’s seventh larg e st thrift
institution, holds o nly 5.9 p e rc e n t of the
a re a ’s thrift institution d e p o sit base. The tw o
la rg e st th rift institutions in this m arket a g g re
g a tely hold 44.1 p e rc e n t of its thrift institution
d e p o sits, and w ith 18 b anking o ffices are
re g a rd e d as dom inant. D im e ’s a c q u isitio n of
MESB w o uld have no sig n ifica n t a d ve rse
e ffe c t upon the c o m p e titive structu re of thrift
b a n king in this relevant m arket.
The D e p a rtm e n t of Ju stice co n c lu d e d that
c o n su m m a tion of this p roposal w ould not
result in any su b stan tia l co m p e titive im p a ct
and the C o m ptro lle r of the C u rre n cy and the
F e d e ra l R e s e rv e B o a rd c o n c u rr e d th a t
D im e ’s a c q u is itio n of MESB w ould have no
a d ve rse co m p e titiv e e ffect.
The p ro p o n e n ts ’ c lo se st offices are lo ca ted
a p p ro x im a te ly 140 road m iles apart, and
there is no s ig n ific a n t e xisting co m p e titio n
betw e en the tw o institutions w hich w ould be
e lim in a te d by c o n su m m a tion of the p ro p o se d
tran sa ctio n . N ew York State statutes restrict
de novo b ra n ch exp a nsio n by m utual savings
banks to a sin g le o ffice per year. Thus, the
po tential for the d e v e lo p m e n t of s ig n ifica n t
c o m p e titio n b e tw e e n D im e a n d M ESB
th ro u g h such e xp a nsio n is lim ited.
D im e is the se co n d la rg e st of the s ta te ’s
m utual s a vin g s banks ho ld in g a p p ro xim a te ly
5.5 percent of their aggregate deposits. Its
acquisition of MESB, the state’s 63rd largest
mutual savings bank, would add a nominal 0.3
percent to that total, which would have little
effect upon the concentration of thrift institu
tion deposits in New York State.
The B oard of D irectors is of the o p inion that
the p ro p o se d m erg e r w o uld not, in any s e c
tion of the country, su b sta n tia lly lessen co m
petition, tend to crea te a m onopoly, or in any
o th e r m an n e r be in re s tra in t of trad e .
Financial and Managerial Resources; Fu
ture Prospects. Both p ro p o n e n ts have satis
fa cto ry fin a ncia l and m an agerial resources,
as w o u ld th e re su lta n t in stitu tio n , w h ich
w o uld a p p e a r to have fa vo ra b le futu re p ro s
pects.
Convenience and Needs of the Community
to be Served. C onsum m ation of the p ro p o se d
tra n sa ctio n w ould m ake a va ila b le a b ro a d e r
range of co n su m e r loans and la rg e r m ort
g a g e loans with a g re a te r va rie ty of fin a n cin g
a rra n g e m e n ts th a n p re s e n tly a v a ila b le
th ro u g h MESB. D im e’s e xp e rie n ce with e le c
tro n ic fu n d s tran sfe r units and their pla n ne d
in tro d u ctio n in co m m u n ities se rve d by MESB
should a c c ru e to the b e n efit and a d d e d c o n
v e n ie n ce of its custom ers.
A S tatem ent in O p p o sitio n to the p ro p o se d
m erg e r has been filed on b ehalf of New York
P u b lic In te re s t R e s e a rc h G ro u p , In c .
(“ NYPIRG ” ) and other co m m u n ity interest
g ro u p s, urg in g the FDIC to d eny the a p p lic a
tion b a se d upon D im e ’s reco rd of m eeting
local c re d it needs. C o n sid e ra b le c o rre s p o n
d e n ce from in d ivid u a ls and g ro u p s c o m
m en tin g upon the p ro p o s e d m e rg e r and
upon D im e’s len d in g reco rd have been rec ie ve d by the FDIC. The FDIC re co g n ize s its
re sp o n sib ility to w eigh ca re fu lly all co m m e n ts
a n d v ie w s re c e iv e d a n d to c o n d u c t a
th o ro u g h inve stig a tio n of the le n d in g and
C om m unity R einvestm ent A c t p ra c tic e s of
the p ro p o n e n ts to the p ro p o se d m erg e r.*
In o rd e r to p ro vid e a forum for the p re se n
tation of oral co m m e n ts and opinions, an
inform al p ro ce e d in g w as held in New York
City on A pril 24, 1979, from 3:15 p.m . to 8:15
p.m ., before rep re se n ta tive s of the F D IC ’s
The C o m m u n ity R e investm en t A c t of 1977 (12 U.S.C.
2 90 1) re q u ire s that the C o rp o ra tio n assess the record
of th e p ro p o n e n ts to the p ro p o s e d tra n s a c tio n in
m e e tin g th e c re d it n ee ds of th e ir re s p e c tiv e , entire
c o m m u n itie s , in c lu d in g low - and m o d e ra te -in c o m e
n e ig h b o r h o o d s . W ith th e e x c e p tio n o f s e v e r a l
n e ig h b o rh o o d s lo c a te d in B rooklyn , no serious o b je c
tions have b ee n raised to the le n d in g p ra c tic e s in
c o m m u n itie s s erved by the p ro p o n e n ts . D im e ’s C o m
m unity R e investm en t A c t S tatem e nt d e lin e a te s all of
K in gs C o unty (B rooklyn), w ith o u t e x c e p tio n , as a p a rt
of its com m u n ity .
BANK ABSORPTIONS APPROVED BY THE CORPORATION
N ew York R egional O ffice, in clu d in g the Re
gional D irector, and the New York State
B anking D epa rtm e n t, in c lu d in g the S u p e rin
te n d e n t of Banks. At that p ro ce e d in g , senior
m an a g e m en t o ffic ia ls of Dime, re p re se n ta
t i v e s ^ NYPIRG, and other m em b e rs of the
p u b lic w ere a ffo rd e d an o p p o rtu n ity to m ake
their view s known.
Data and fig u re s s u b m itte d by Dim e with
the a p p lic a tio n and su b se q u e n t thereto, in
clu d in g a s o u rce and d isp o sitio n of fu n ds
s ch e d u le , in d ic a te that Dim e is p ro vid in g
m o rtg a g e fu n d s th ro u g h o u t K ings C ounty
(B rooklyn) and the rem a in d er of its prim ary
s e rv ic e area, co n s is te n t with the safe and
s ound o p e ra tio n of the institution. O b je ctio n s
raised by the c o m m u n ity g ro u p s re g a rd in g
re strictive le n d in g p ra c tic e s w ere th o ro u g h ly
review ed; and, in a d d itio n , a CRA a sse ss
m ent of the institution w as c o n d u c te d in o rd e r
to im pa rtia lly assess the relevant e vid e n ce
p re se n te d by both the co m m u n ity g ro u p s
a nd the A p p lic a n t. B a se d on this in -d e p th
review, it is c o n c lu d e d th a t Dim e has m ade
a v a ila b le m o rtg a g e fu n d s in Brooklyn, even
d u rin g rece n t p e rio d s of “ tig h t m o n e y” and
disin te rm ed ia tio n . The fig u re s show a s u b
stantial investm ent of a va ilab le reso u rce s
w ithin the b a n k ’s p rim a ry m arket area sin ce
CRA w as e n a c te d in 1977. This co n tinu in g
effort, c o u p le d with a new bank p o licy not to
lend o u t-o f-sta te in 1979, is e x p e c te d to p ro
vid e even m ore near-term m ortg a g e a va il
a b ility to the resid e n ts of D im e ’s m arket area.
H ow ever, th e re w as fo u n d a need for a d d i
tional effo rt by the bank to reach som e p o c k
ets of low- and m o d e ra te -in co m e residents.
In this reg a rd , the State of New York has
c o n d itio n e d its a p p ro v a l on the e sta b lish
m ent by the b ank of a D ivision of C om m unity
A ffairs, w h ich will have the re sp o n sib ility of
c o n s u ltin g w ith and a ssisting local in d iv id u
als and g ro u p s as well as a d visin g senior
b a n k o fficia ls and b ra n ch m an a g e rs how
e ffe c tiv e ly to ca rry out their resp o n sib ilitie s
u n d er CRA.
The s p e c ia l review of D im e ’s C om m unity
R e in ve stm e n t A c t S ta te m en t and le n d in g
p ra c tic e s w as c o n d u c te d by C o rpo ra tion
exam iners on M arch 2, 1979 and d isclo se d
no in c o n s is te n c ie s with the p u rp o se s of the
Act. A sim ilar review of the C om m unity Rein
v e stm e n t A c t S tatem ent and le n d in g p ra c
tice s of MESB also d is c lo s e d no in co n siste n
cies. No serious o b je c tio n s to the le nding
p ra c tic e s of MESB have been raised by any
co m m u n ity interest g ro u p in o p p o sitio n to the
p ro p o s e d m erger. The B oard of Trustees of
Dim e have o fficia lly c o n c lu d e d that if this
p ro p o sa l is c o n su m m a ted , Dim e will not only
c o n tin u e th e p re s e n t a n n u a l le v e l of
93
m o rtg a g e loans in the MESB se rvice area,
but also will fo llow D im e ’s b ro a d e r le n d in g
p o licie s and e n d e a vo r to in cre a se the level of
m o rtg a g e loans in the M e ch a n ics E xch a n g e
D ivision co n siste n t with this se rvice a re a ’s
de m a n d .
The FDIC co n sid e rs this ca se as e vid e n ce
of the e ffe ctive n e ss of the CRA pro ce ss,
d ra w in g to g e th e r the State and Federal re g
ulators, local co m m u n ity g ro u p s and the
b a n k in a c o m m o n e ffo rt to in su re the
m axim um fe a sib le co m m itm e n t to the local
area, to g e th e r w ith a p ro g ra m for co n tinu in g
a ffirm a tive actions. A key fa c to r in this ca se
was the interest and e ffo rt of local g ro u p s in
c a llin g a ttention to the bank and to the re g
ulators their co n ce rn s and needs.
C o n sid era tio ns relating to the c o n ve n ie n ce
and needs of the co m m u n ity to be se rve d are
co n sisten t with a p p ro va l of the a p p lica tio n .
B ased on the fo re g o in g , the Board of Di
rectors has c o n c lu d e d th a t a p p ro va l of the
a p p lic a tio n is w arra n te d .
Resources
(in thousands
of dollars)
Bank o f A m erica
N ational T ru st
and S avings
A s s o c ia tio n
Banking Offices
in Operation
Before
After
5 3 ,96 6 ,4 0 5 * 1 ,1 0 1 ’ 1 ,1 0 1 ’
San F rancisco,
C alifornia
to acquire the assets and
assume the deposit
liabilities of
The R osario Branch
o f B anco Alem an
T ra n sa tla n tico
4,673
1
B uenos Aires,
A rg e n tin a
* Total d o m e s tic
resources.
' D o m e s tic office s.
S um m ary rep o rt by A tto rn ey G eneral,
M arch 30, 1979
We have review ed this p ro p o se d tra n s a c
tion and co n c lu d e th a t it w o uld not have any
a d ve rse e ffe ct on co m p e titio n .
Basis for C o rp o ra tio n A p p ro va l
July 30, 1979
Bank of A m e rica National Trust a n d Sav
ings A sso cia tio n , San F rancisco, C a lifornia
(“ B A ” ), w ith total d o m e s tic re so u rce s of
94
FEDERAL DEPOSIT INSURANCE CORPORATION
$ 5 3 ,9 6 6 ,4 0 5 ,0 0 0 and total d o m e stic d e p o sits
of $41,3 4 6 ,7 3 9 ,0 0 0 , has a p p lie d , p u rsu a n t to
S ection 18(c) and other p ro visio n s of the
Federal D eposit Insurance Act, for the C o r
p o ra tio n ’s p rio r co n se n t to a cq u ire the assets
and assum e the liabilities of the Rosario
B ra n ch of B a n co A le m a n T ra n sa tla n tico ,
B uenos Aires, A rg e n tin a (“ BA T” ). The branch
has total reso u rce s of $4,67 3 ,0 0 0 and total
d e p o s its of $3,783,000. BAT is a n o n insured
b a n kin g c o rp o ra tio n o p e ra tin g in A rg e n tin a
as a s u b s id ia ry of D e utsche Bank A. G.,
Frankfurt, Federal R e p u b lic of G erm any. B A ’s
a p p lic a tio n to the Board of G overnors of the
Federal R eserve System for perm issio n to
e s ta b lis h a b ra n c h at B A T ’s lo c a tio n in
Rosario C ity w as a p p ro ve d D e ce m b e r 18,
1978.
Competition. The p ro p o s e d tra n s a c tio n
w o u ld ha ve a n e g lig ib le e ffe c t on B A ’s
d o m e s tic and fo re ig n m arkets. The e ffe ct of
this p ro p o sa l w o uld be to su b stitu te BA for
BAT in the Rosario, A rg e n tin a m arket in
w hich BA is not p re se n tly rep resented.
Financial and Managerial Resources; Fu
ture Prospects. The financial and m anagerial
reso u rce s of BA are re g a rd e d as sa tisfacto ry
for the p u rp o s e of this tran sa ctio n , and its
fu tu re p ro s p e c ts a p p e a r favorable.
Convenience and Needs of the Community
to be Served. The p ro p o sa l w ould have no
p e rc e p tib le e ffe ct on the c o n ve n ie n ce and
needs of any of B A ’s d o m e stic m arkets or on
the Rosario m arket.
B ased on the fo re g o in g , the B oard of Di
recto rs has c o n c lu d e d that a p p ro va l of the
a p p lic a tio n is w arra n te d .
Basis for C o rpo ra tion A p p ro val
July 30, 1979
C o m m u n ity Bank & Trust C om pany, Tulsa,
O kla h om a (“ B a n k” ), an insured State non
m e m b e r b a n k w ith to ta l r e s o u r c e s o f
$ 4 3 ,9 7 0 ,0 0 0 a n d to ta l IPC d e p o s its of
$ 2 7,427,000, has a p p lie d , p u rsu a n t to S e c
tion 18(c) and other pro visio n s of the Federal
D e p o sit Insurance A ct, for the C o rp o ra tio n ’s
p rio r c o n s e n t to m e rg e w ith C o m m u n ity
Banksite, Inc., Tulsa, O kla h om a (“ B a n ksite ” ),
a n o n in s u re d , .n o n b a n kin g e n tity w h o lly
o w ned by Bank. The p ro p o se d m erg e r tran s
actio n w o uld be e ffe cte d u n d er the ch a rte r
and title of Bank.
Competition. B anksite w as fo rm e d in 1968
by Bank for the p u rp o se of h o ld in g and
m a n a g in g real estate n e ce ssary fo r the c o n
d u c t of ba n king b usiness. The tra n sa ctio n is
esse n tia lly an internal reo rg a n iza tio n w hich
w ould result in title to the real estate being
returned to Bank. The p ro p o se d tran sa ctio n
w ould have no e ffe ct on existing or potential
co m p e titio n b etw een the p ro p o n e n ts or on
the stru ctu re of co m m e rcial ban king in any
relevant area.
The Board of D irectors is of the o p in io n that
the p ro p o se d tra n sa ctio n w o u ld not, in any
se ctio n of the country, su b sta n tia lly lessen
co m p e titio n , tend to cre a te a m onopoly, or in
any o ther m anner be in restraint of trade.
Financial and Managerial Resources; Fu
ture Prospects. Financial and m an agerial re
so u rce s of each p a rty to the p ro p o se d tra n s
a ctio n are sa tisfacto ry, and the resu lta n t
ba n k is a n ticip a te d to have fa vo ra b le futu re
p ro sp e cts.
Convenience and Needs of the Community
to be Served. The p ro p o se d m erg e r w ould
Resources
(in thousands
of dollars)
C o m m unity Bank &
T rust C om pany
Banking Offices
in Operation
Before
After
2
2
43,970
Tulsa, O klahom a
to merge with
C o m m unity Banksite,
Inc.
-
-
Tulsa, O klahom a
Sum m ary rep o rt by A tto rn ey G eneral,
M ay 11, 1979
The p ro p o s e d m erg e r involves a 100%
o w n e d real estate s u b s id ia ry co rp o ra tion ; is
e sse n tia lly a c o rp o ra te reo rg a n iza tio n ; and
w o u ld have no e ffe c t on co m p e titio n .
have no e ffe ct on the c o n ve n ie n ce and needs
of the co m m u n ity to be served.
A review of ava ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A c t S tatem ent
and other relevant m aterial, d is c lo s e d no
in co n siste n cie s with the p u rp o se s of the Act.
The resultant bank is a n tic ip a te d to co n tinu e
to m eet the c re d it needs of its entire co m
m unity, con sisten t with the safe and sound
o p e ra tio n of the institution.
Based on the fo re g o in g inform ation, the
Board of D irectors has c o n c lu d e d that a p
proval of the a p p lic a tio n is w arra n te d .
BANK ABSORPTIONS APPROVED BY THE CORPORATION
Resources
(in thousands
of dollars)
Banking Offices
in Operation
Before
S co tia b a n k de
P uerto Rico
After
7
(in o rg a n iza tio n)
San Juan (H ato
Rey), Puerto Rico
to merge with
B anco M erca ntil de
P uerto Rico, Inc.
150,943
3
and
to acquire the assets and
assume the deposit liabilities of
4 3 0 ,5 9 6 *
4
Halifax, C anada
* Total d e p o sits of o ffice s to be tran sferred by The Bank
of N ova Scotia. Assets not available by office.
S um m ary rep o rt by A tto rn ey General,
O c to b e r 20, 1978
We have review ed this p ro p o se d tra n s a c
tion and c o n c lu d e that it is e ssentially a
c o rp o ra te reo rg a n iza tio n and w o uld have no
e ffe c t on c o m p e titio n .
Basis fo r C o rpo ra tion A p p ro va l
July 30, 1979
Pursuant to S ections 5 and 18(c) and other
pro visio n s of the Federal D eposit Insurance
A ct, a p p lic a tio n s have been file d for Federal
d e p o s it in su ra n ce on b e h alf of S co tia b a n k de
Puerto Rico, San Juan (H ato Rey), Puerto
Rico (“ S c o tia b a n k ” ), a p ro p o se d new bank in
org a n iza tio n, and for co n se n t to its m erger
with B anco M ercantil de Puerto Rico, Inc.,
San Juan (Rio Piedras), Puerto Rico (“ M er
c a n til” ) (total reso u rce s $150,943,000; total
d e p o s its $ 1 2 4,593,000), an insured C om
m onw ealth ch a rte re d n o n m e m b er bank, and
fo r co n s e n t to p u rc h a s e ce rta in a ssets of and
assu m e the liability to pay ce rta in d e p o sits
m ade in the Puerto Rican b ra n ch e s of The
B a n k o f N o v a S c o tia , H a lifa x , C a n a d a
(“ BNS” )
(to ta l
b ra n c h
d e p o s its
$43 0,5 9 6 ,0 0 0) a n oninsured fo re ig n bank,
u n d e r th e c h a rte r a n d w ith th e title of
S co tia b a n k. In c id e n t to the tran sa ctio n , three
o ffice s of M ercantil and the four Puerto Rican
b ra n c h e s of BNS w o uld b e co m e o ffices of
the resulting b ank with the San Juan (H ato
Rey) b ra n ch of BNS d e sig n a te d as the main
office.
Competition. E ssentially a c o rp o ra te reor
ganizatio n , the p ro p o sa l w o uld p ro vid e a
m eans by w hich BNS m ay co n so lid a te m ost
of its o p e ra tio n s in Puerto Rico. BNS has four
b ra n ch e s in Puerto R ico and, sin ce June of
1975, it has had a c o n tro llin g interest in
M ercantil. The tra n sa ctio n w o uld not affe ct
the stru ctu re of co m m e rcia l ba n king or the
co n ce n tra tio n of b a n king reso u rce s w ithin
the relevant m arket.
Financial and Managerial Resources; Fu
ture Prospects. M e rca n til’s fin a ncia l c o n d i
San Juan (Rio
Piedras), Puerto
Rico
P ue rto Rican
bra nch es o f The
B ank o f Nova
S cotia
95
tion is re g a rd e d as less than sa tisfa cto ry
b e ca u se of in a d e q u a te ca p ital, poor e arn
in g s re te n tio n a n d a h ig h v o lu m e o f
nonea rn in g assets. The fin a ncia l co n d itio n of
BNS has proven to be so u n d and g e n era lly
free of such criticism . The resultant institution
sh o u ld, th e re fo re , have the re so u rce s to
c o rre c t M e rca n til’s d e fic ie n c ie s w ithin the
fram e w o rk of a fin a n cia lly sound, F ed e ra lly
insu re d ban king institution. C o n sid era tio ns
relating to m an agerial reso u rce s and the fu
ture p ro sp e cts of the resu lta n t institution have
been sa tisfa cto rily resolved.
Convenience and Needs of the Community
to be Served. The resulting bank w ould p ro
vid e se rvice s not p re se n tly offe re d in d iv id u
a lly by the p a rtic ip a tin g institutions. New se r
vice s in clu d e h ig h er rates on reg u la r savings
a cco u n ts for cu sto m e rs of BNS; a larger
le n d in g lim it for cu sto m e rs of M ercantil; d e
p o sit in su ra n ce fo r cu sto m e rs of BNS; and
co m p u te rize d d e m a n d d e p o sits and instal
m ent loans fo r cu sto m e rs of both banks. The
p ro p o se d tran sa ctio n , how ever, is e x p e c te d
to have little m aterial im p a c t on co n ve n ie n ce
and needs of the co m m u n ity as su ch ser
vice s are rea d ily a va ila b le at o ffice s of other
b a n king institutions in the areas served by
the pro p o n e n ts.
A review of a va ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A c t S tatem ent
and other relevant m aterial, d isclo se d no
in co n siste n cie s with the p u rp o se s of the Act.
The resultant institution is e x p e c te d to co n
tinue to m eet the c re d it needs of its entire
co m m u n ity, c o n siste n t w ith the safe and
sound o p e ra tio n of the institution
Based on the fo re g o in g , the Board of Di
rectors has c o n c lu d e d that a p p ro va l of the
a p p lica tio n is w arra n te d .
96
FEDERAL DEPOSIT INSURANCE CORPORATION
Resources
(in thousands
of dollars)
First Marine Bank &
Trust Company of
the Palm Beaches
Banking Offices
in Operation
Before
After
179,879
8
14
116,385
4
Riviera Beach,
Florida
to merge with
First Marine National
Bank and Trust
Company of Lake
Worth
Lake Worth, Florida
Financial and Managerial Resources; Fu
ture Prospects. P ro p o n e n ts’ fin a ncia l and
and
First Marine National
Bank & Trust
Company, Jupiter,
Tequesta
66,242
2
Tequesta, Florida
S um m ary rep o rt by A tto rn ey G eneral,
M arch 9, 1979
The m erg in g banks are all w h o lly-o w n e d
su b s id ia rie s of the sam e bank ho ld in g co m
pany. As such, their p ro p o se d m erg e r is
esse n tia lly a c o rp o ra te reo rg a n iza tio n and
w ould have no e ffe ct on co m p e titio n .
Basis for C o rpo ra tion A p p ro va l
A u g u st 6, 1979
First M arine Bank & Trust C o m pa n y of the
Palm Beaches, R iviera Beach, F lorida (“ First
M arin e ” ), an insured State n onm em ber b ank
w ith total reso u rce s of $179,8 7 9 ,0 0 0 and total
IPC d e p o s its of $151,118,000, has a p p lie d ,
p u rsu a n t to Section 18(c) and other p ro vi
sions of the Federal D eposit Insurance A ct,
for the C o rp o ra tio n ’s p rio r co n se nt to m erg e
with First M arine National Bank and Trust
C o m pa n y of Lake W orth, Lake W orth, Florida
( “ L a ke W o rth ” ), w ith to ta l re s o u rc e s of
$ 1 1 6 ,3 8 5 ,0 0 0 a n d to ta l IPC d e p o s its of
$97,441,000, and First M arine National Bank
& T ru s t C o m p a n y , J u p ite r /T e q u e s ta ,
Tequesta, F lorida (“ T e q u e sta ” ), with total re
s o u rce s of $ 6 6 ,2 4 2 ,0 0 0 and total IPC d e
po sits of $56,079,000. These banks w ould
m erg e u n d er the ch a rte r and title of First
M arine and, in c id e n t to the tran sa ctio n , the
four o ffice s of Lake W orth and the tw o offices
o f T e q u e s ta w o u ld b e e s ta b lis h e d as
b ra n ch e s of the resultant bank.
Competition. Essentially a co rp o ra te reor
gan izatio n , the p ro p o sa l w ould p ro vid e a
m eans by w hich First M arine Banks, Inc.,
Riviera Beach, F lorida (“ P arent” ), a bank
h o ld in g co m p a n y, m ay c o n so lid a te its o p e r
ations in the State of Florida. The p ro p o n e n ts
have been u n d er com m on control sin ce their
a cq u isitio n by Parent (First M arine — 1964;
Lake W orth and T eq u e sta — 1973). The
p ro p o se d m erg e r w ould not a ffe ct the s tru c
ture of co m m e rcial ba n king or the co n c e n tra
tion of ba n king reso u rce s w ithin the relevant
m arket.
In view of the fo re g o in g , the B oard of
D ire cto rs is of the o p inion that the p ro p o se d
m erg e r w o u ld not, in any se ctio n of the c o u n
try, su b sta n tia lly lessen co m p e titio n , tend to
crea te a m onopoly, or in any other m anner be
in restraint of trade.
m a n a g e r ia l r e s o u r c e s a re c o n s id e r e d
a d e q u a te for the p u rp o se s of this p ro p o sa l.
Financial and m anagerial reso u rce s of the
resultant ba n k w ould be sa tisfa cto ry and its
futu re p ro s p e c ts a p p e a r fa vo ra b le .
Convenience and Needs of the Community
to be Served. S e rvice s to be o ffe re d in th e
relevant m arket by the resultant ba n k w ould
not d iffe r m aterially from those p re se n tly of
fe re d by each prop o n e n t.
A review of ava ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A c t S tatem ent
of the three re sp e ctive institutions and other
relevant m aterial, in d ica te s no in co n siste n
cies with the p u rp o se s of the Act. The resul
tant institution is e x p e c te d to co n tinu e to
m eet the c re d it needs of its entire com m unity,
co n siste n t with the safe and sound o p e ra tio n
of the institution.
On the basis of the fo re g o in g inform ation,
the Board of D irectors has c o n c lu d e d that
a p p ro va l of the a p p lica tio n is w arranted.
97
BANK ABSORPTIONS APPROVED BY THE CORPORATION
Resources
(in thousands
of dollars)
W accam aw Bank and
T ru st C om pany
Banking Offices
in Operation
Before
After
2 97,940
46
55
39,400
7
W hiteville, North
C a rolina
(c h a n g e title to
U nited C arolina
Bank, W hiteville)
to merge with
Cape Fear Bank &
T ru s t Com pany
Fayetteville, North
C arolina
Financial and Managerial Resources; Fu
ture P rospects. P r o p o n e n ts ’ fin a n c ia l a n d
and
C a pitol N ational
Bank
12,246
2
Raleigh, North
C arolina
Sum m ary rep o rt by A tto rn ey G eneral,
M ay 22, 1979
The m erg in g banks are both w ho lly-o w n e d
s u b s id ia rie s of the sam e b ank ho ld in g c o m
pany. As such, their p ro p o se d m erg e r is
e sse n tia lly a c o rp o ra te reo rg a n iza tio n and
w o uld have no e ffe ct on co m p e titio n .
Basis for C o rpo ra tion A p p ro val
A u g u s t 13, 1979
W a c c a m a w B a n k a n d T ru s t C o m p a n y ,
W hiteville, North C arolina (“ W a c c a m a w ” ), an
insured State n o n m e m b er bank with total
reso u rce s of $ 2 9 7,9 4 0 ,0 0 0 and total IPC d e
p o sits of $226,968,000, has a p p lie d , p u r
suant to S ection 18(c) and other pro visio n s of
the Federal D ep o sit In su ra n ce Act, for the
C o rp o ra tio n ’s p rio r co n se n t to m erg e with
C a p e Fear Bank & Trust C om pany, F ayette
ville, North C arolina (“ C a p e F ear” ), an in
su re d State n o n m e m b er bank with total re
s o u rce s of $39,4 0 0 ,0 0 0 and total IPC d e
p o sits of $31,160,000, and Capitol National
Bank, Raleigh, North C a rolina (“ C a p ito l” ),
with total reso u rce s $12 ,2 4 6 ,0 0 0 and total
IPC d e p o s its of $7,985,000. T hese banks
w o u ld m e rg e u n d e r th e c h a r te r of W a c
c a m a w and with the title “ U nited C arolina
Bank, W h ite ville ” and, in cid e n t to the tra n s
a ction, the e ig h t o ffic e s (in clu d in g one a p
p ro ve d but u n o p e n e d ) of C ape Fear and the
tw o o ffic e s of C apito l w ould be e sta b lish e d
as b ra n c h e s of the resultant bank.
Competition. Essentially a co rp o ra te reor
g a n izatio n , the p ro p o sa l w o uld p ro vid e a
m eans by w hich U nited C arolina B an csh a re s
C orpo ra tion , W hiteville, N orth C a rolina (“ Un ite d ” ), a b a n k h o ld in g co m p a n y, m ay c o n
s o lid a te its o p e r a tio n s in e a s te rn N o rth
C arolina. U nited has one oth er b a n king su b
sid ia ry w h ich is lo ca ted in so u th-ce n tra l North
C arolina. The p ro p o n e n ts have been u n d er
co m m o n co n tro l sin ce 1973. The p ro p o se d
m e rg e r w o u ld n o t a ffe c t th e s tr u c tu r e of
co m m e rcia l b a n kin g or the co n ce n tra tio n of
b a n king reso u rce s w ithin the relevant m arket.
In view of the fo re g o in g , the B oard of
D irectors is of the op in io n that the p ro p o se d
m erg e r w o uld not, in any section of the c o u n
try, su b sta n tia lly lessen co m p e titio n , tend to
cre a te a m onopoly, or in any other m anner be
in restraint of trad e .
m a n a g e r ia l re s o u r c e s a re c o n s id e r e d
a d e q u a te for the p u rp o se s of this prop o sa l.
Financial and m an a g e ria l reso u rce s of the
resultant b a n k w o uld be sa tisfa cto ry and its
futu re p ro s p e c ts a p p e a r favo ra b le .
Convenience and Needs of the Community
to be Served. S ervices to be o ffered in the
relevant m arket by the resultant bank w ould
not d iffer m aterially from those p re se n tly of
fe re d by each p ro p o n e n t.
A review of a va ilab le inform ation, in c lu d in g
the C o m m u n ity R einvestm ent A c t S tatem ents
of each of the three banks, d isclo se s no
in c o n s is te n c ie s w ith th e p u rp o s e s o f th e
C om m unity R einvestm ent A ct. The resultant
institution is e x p e c te d to co n tin u e to m eet the
c re d it needs of its entire co m m u n ity, co n sis
tent with the safe and sound o p e ra tio n of the
institution.
On the basis of the fo re g o in g inform ation,
the Board of D ire cto rs has c o n c lu d e d that
ap p ro va l of the a p p lic a tio n is w arra n te d .
Resources
(in thousands
of dollars)
Florida C oast Bank
o f P om pano Beach
Banking Offices
in Operation
Before
176,596
6
42,655
4
P om pano Beach,
Florida
(cha n g e title to
Florida Coast Bank
of B row ard C ounty)
to merge with
F lorida C oast Bank
o f Coral S prings,
N ational
A s s o c ia tio n
M argate, Florida
After
10
98
FEDERAL DEPOSIT INSURANCE CORPORATION
S um m ary rep o rt by A tto rn ey G eneral,
February 26, 1979
The m erg in g banks are both w h o lly-o w n e d
s u b s id ia rie s of the sam e bank h o ld in g c o m
pany. As such, th e ir p ro p o se d m erg e r is
esse n tia lly a c o rp o ra te reo rg a n iza tio n and
w o u ld have no e ffe ct on co m p e titio n .
p e cte d to co n tinu e to m eet the c re d it needs
of its entire com m unity, co n siste n t with the
safe and sound o p e ra tio n of the institution.
On the basis of the fo re g o in g inform ation,
the Board of D irectors has c o n c lu d e d that
a p p ro va l of the a p p lic a tio n is w arranted.
Basis for C o rpo ra tion A p p ro va l
A u g u s t 20, 1979
F lorida C oast Bank of P om pano Beach,
P o m p a no
Beach,
Florida
(“ Pom pano
B e a c h ” ), an insured State n o n m e m b er bank
with total reso u rce s of $176,5 9 6 ,0 0 0 and total
IPC d e p o s its of $ 138,362,000, has a p p lie d ,
p u rsu a n t to Section 18(c) and other p ro v i
sions of the Federal D eposit Insurance A ct,
for the C o rp o ra tio n ’s p rio r co n se nt to m erg e
with Florida C oast Bank of Coral S prings,
National
A sso cia tio n ,
M argate,
F lorida
(“ M a rg a te ” ),
with
total
reso u rce s
of
$4 2 ,6 5 5 ,0 0 0 and total IPC d e p o sits of
$32,029,000. These banks w ould m erg e
un d er the ch a rte r of Pom pano Beach and
with the title “ F lorida C oast Bank of Brow ard
C o u n ty ” and, in c id e n t to the tran sa ctio n , the
four o ffice s of M argate w ould be e sta blish e d
as b ra n ch e s of the resultant bank.
Competition. E ssentially a c o rp o ra te reor
ganizatio n , the p ro p o sa l w ould p ro vid e a
m eans by w hich F lorida C oast Banks, Inc.,
P om pano Beach, Florida (“ FC B” ), a bank
h o ld in g co m p a n y, m ay c o n so lid a te its o p e r
ations in Brow ard C ounty. The p ro p o n e n ts
have been u n d er com m on control since
1974. The p ro p o s e d m erg e r w o uld not a ffe ct
the stru ctu re of co m m e rcial ba n king or the
co n c e n tra tio n of ba n king resources w ithin
the relevant m arket.
In view of the fo re g o in g , the B oard of
D irectors is of the op in io n that the p ro p o se d
m erg e r w o uld not, in any section of the c o u n
try, s u b sta n tia lly lessen co m p e titio n , tend to
c rea te a m onopoly, or in any other m anner be
in restraint of trade.
Financial and Managererial Resources;
Future Prospects. P ro p o ne n ts’ fin a ncia l and
m anagerial
reso u rce s
are
c o n sid e re d
a d e q u a te for the p u rp o se s of this prop o sa l,
and the futu re p ro s p e c ts of the resultant bank
a p p e a r fa vo ra b le .
Convenience and Needs of the Community
to be Served. S ervices to be o ffered in the
relevant m arket by the resultant bank w ould
not d iffe r m aterially from those p re se n tly of
fe re d by each p ro p o n e n t.
A review of a va ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A c t S tatem ents
of both banks, d is c lo s e s no in co n siste n cie s
with the p u rp o s e s of the C om m unity Rein
v e stm e n t A ct. The resultant institution is ex
Resources
(in thousands
of dollars)
F irst A m erican Bank
o f Dade C ounty
Banking Offices
in Operation
Before
After
67,522
1
2
16,344
1
North Miam i, Florida
to merge with
F irst A m erican Bank
o f Hom estead
H om estead, Florida
S um m ary rep o rt by A tto rn ey G eneral,
A p ril 20, 1979
The m erg in g banks are both m ajorityow ned su b sid ia rie s of the sam e bank ho ld in g
co m p a n y. As such, their p ro p o se d m erger is
esse n tia lly a co rp o ra te reo rg a n iza tio n and
w ould have no e ffe ct on co m p e titio n .
Basis for C o rpo ra tion A p p ro val
A u g u st 20, 1979
First A m e rica n Bank of D ade C ounty, North
M iam i, Florida (“ A p p lic a n t” ), an insured State
n o n m e m b er bank with total a ssets of
$ 67 ,5 2 2 ,0 0 0 and total IPC d e p o sits of
$ 56,895,000, has a p p lie d , p u rsu a n t to S ec
tion 18(c) and oth er p ro visio n s of the Federal
D ep o sit Insurance Act, for the C o rp o ra tio n ’s
p rio r c o n se n t to m erg e with First A m e rica n
Bank of H om estead, H om estead, Florida
(“ O ther B a n k” ), an insured State n o n m em ber
b ank with total a ssets of $16,3 4 4 ,0 0 0 and
total IPC d e p o sits of $11,611,000. These
b anks w o u ld m erg e u n d e r the ch a rte r and
title of A p p lic a n t and, in cid e n t to the tra n s a c
tion, the sole o ffice of O ther Bank w ould be
e sta blish e d as a b ra n ch of the resultant
bank.
Competition. Essentially a co rp o ra te reor
g anization, the pro p o sa l w ould p ro vid e a
m eans by w hich A m e rica n B ankshares, Inc.,
North M iam i, Florida, a b ank h o ld in g co m
pany, m ay co n so lid a te its o p e ra tio n s in the
North M iam i-H o m e ste a d b a n king m arket.
The p ro p o n e n ts have been co m m o n ly co n
trolle d by A m e rica n B ankshares, Inc. sin ce
1973. The p ro p o se d m erg e r w ould not affe ct
the stru ctu re of co m m e rcia l ba n king or the
BANK ABSORPTIONS APPROVED BY THE CORPORATION
c o n c e n tra tio n of b a n king resources within
the relevant m arket.
In vie w of the fo re g o in g , the Board of
D ire cto rs is of the op in io n that the p ro p o se d
m erg e r w o u ld not, in any section of the c o u n
try, s u b s ta n tia lly lessen co m p e titio n , tend to
c rea te a m onopoly, or in any other m anner be
in restraint of trade.
Financial and Managerial Resources; Fu
ture Prospects. P ro p o n e n ts’ financial and
m an a g e ria l
reso u rce s
are
c o n sid e re d
a d e q u a te for the p u rp o se s of this p roposal,
and the resultant b a n k ’s futu re p ro sp e cts
a p p e a r fa vo ra b le .
Convenience and Needs of the Community
to be Served. Services to be o ffe re d in the
relevant m arket by the resultant bank w ould
not d iffe r m aterially from those p re se n tly of
fe re d by each p ro p o n e n t.
A review of a va ila b le inform ation, in clu d in g
the C om m unity R einvestm ent A c t Statem ent
of both banks, d is c lo se s no in co n siste n cie s
with the p u rp o se s of the Act. The resultant
institution is e x p e c te d to co n tinu e to m eet the
c re d it needs of its entire com m unity, co n s is
te n t with the safe and sound op e ra tio n of the
institution.
On the basis of the fo re g o in g inform ation,
the B oard of D irectors has c o n c lu d e d that
a p p ro v a l of the a p p lic a tio n is w arranted.
Resources
(in thousands
of dollars)
F irst Bank
Banking Offices
in Operation
Before
After
4 6 9 ,7 0 4 *
30
35
39,995
5
New Haven,
C o n n e c tic u t
to acquire the assets and
assume the deposit liabilities
of
The G uaranty Bank
and T ru s t
C om pany
H artford,
C o n n e c tic u t
* D o m e s tic resources.
Sum m ary report by A tto rn ey G eneral,
no rep o rt rece ive d .
Basis for C o rpo ra tion A p p ro va l
A u g u s t 27, 1979
P ursuant to Section 18(c) and other p ro v i
sions of the Federal D eposit Insurance A ct,
an a p p lic a tio n has been file d on b e h alf of
First Bank, New Haven, C o n n e cticu t, an in
99
su re d S tate n o n m e m b e r b a n k w ith total
d o m e s tic re so u rce s of $ 4 6 9 ,7 0 4 ,0 0 0 and
total d o m e stic IPC d e p o sits of $ 365,265,000,
for the C o rp o ra tio n ’s co n se n t to a cq u ire the
assets of and assum e the liability to pay
d e p o sits m ade in The G uaranty Bank and
T ru s t C o m p a n y , H a r tfo r d , C o n n e c tic u t
(“ G ua ra n ty B a n k” ), with total reso u rce s of
$ 3 9 ,9 9 5 ,0 0 0 a n d to ta l IPC d e p o s its of
$33,805,000. In cid e n t to the tran sa ctio n , the
five o ffices of G ua ra n ty Bank will be e sta b
lished as b ra n ch e s of First Bank. The p ro
p o se d tra n s a c tio n is in s e p a ra b le from a
co m p a n io n a p p lic a tio n file d with the Board of
G overnors of the Federal Reserve System
w h e re b y F irstB a n co rp , Inc., N ew Haven,
C o n n e c tic u t (“ B a n c o rp ” ), p a re n t of First
Bank, seeks to a q u ire the o u tsta n d in g shares
of sto ck of the tw o co m m e rcial banks af
filia te d w ith G uaranty Bank, w hich to g e th e r
p re se n tly form The C o n n e cticu t B a n cF ed e ration, Inc., H artfo rd , C o n n e c tic u t (“ CBF).
U pon co n su m m a tion of the related tra n s a c
tions, CBF and G uaranty Bank will be liq u i
d ated.
Competition. First Bank o p e ra te s 30 o ffices
in so u th-ce n tra l C o n n e cticu t and a single
fo re ig n o ffice in the C aym an Islands. W hile
ce n te re d ch ie fly in New Haven and heavily
re p re se n te d in th a t city and s u rro u n d in g
com m u n ities, First Bank o p e ra te s a b ra n ch
n e tw o rk e n c o m p a s s in g a p p ro x im a te ly 50
m iles of C o n n e cticu t co a stlin e from M ilford in
the w est to New London in the east, as well as
o ffices in the W a llin gfo rd area north of New
Haven. G uaranty Bank o p e ra te s a total of five
o ffice s in the city of H artford and in the
a d jo in in g tow n of W est H artford in northcentral C o n n e cticu t.
The relevant m arket in w h ich to assess the
co m p e titive im p a ct of the p ro p o se d tra n s a c
tion is re g a rd e d as the p rim a ry se rvice area
of G uaranty Bank w h ich in clu d e s the city of
H artford and the a d ja c e n t co m m u n ities of
E a st H a rtfo rd , W e th e rs fie ld , a n d W e st
H artford. This area co n tain s an estim a te d
1970 p o p ula tio n in e xce ss of 3 0 0 ,0 0 0 and
has a d ive rsifie d e co n o m ic base e n co m
p a ssin g g o ve rn m e nta l se rvice s, c o m m e rce
and heavy industry. H artford is the state
c a p ital and co n tain s a large, w e ll-e sta b lish e d
in su ra n ce industry.
The tra d e areas of First Bank and G uaranty
Bank are se p a ra te and d is tin c t w ith their
clo se st o ffice s a p p ro xim a te ly 25 road m iles
d istant. The inte rve n in g M eridan SM SA (1970
p o p u la tio n 5 5 ,9 5 9 ) and th e N ew B rita in
SMSA (1970 p o p u la tio n 145,269) serve to
e ffe ctive ly se p a ra te the H a rtfo rd relevant
m arket from areas now se rve d by First Bank.
A ffilia te s of G uaranty Bank, ba se d in New
100
FEDERAL DEPOSIT INSURANCE CORPORATION
Britain and Terryville, w hose clo se st o ffices
are lo ca te d a p p ro x im a te ly 12 and 31 road
m iles, re s p e c tiv e ly from the nearest o ffice of
First Bank, are re g a rd e d as also serving
d is tin c tly s e p a ra te m arkets and do not c o m
pete, to any sig n ific a n t d e g re e , w ith First
Bank. The p ro p o s e d tran sa ctio n , therefore,
w o u ld not e lim inate any sig n ifica n t existing
c o m p e titio n betw een the tw o ba n king or
g a n iza tio n s involved.
In the H artford relevant m arket a total of
seven co m m e rcial banks are rep re se n te d ,
with G u a ra n ty Bank h o ld in g a m od e st 2.2
p e rc e n t share of the m arke t’s co m m e rcial
b a n k IPC d e p o s it base. The area is d o m i
nated by the s ta te ’s tw o la rg e st co m m e rcial
banks, both of w h ich are based in H artford,
w h ich a g g re g a te ly hold an 88.1 p e rc e n t
share of the m a rk e t’s co m m e rcial bank IPC
d e p o sits. C onsum m ation of the p ro p o se d
tra n sa ctio n w o uld m erely su b stitu te a large
s o u th e rn C o n n e c tic u t-b a s e d c o m m e rc ia l
b ank for an in e ffe ctive c o m p e tito r in the
H artford m arket and w o uld not have any
a d ve rse e ffe c t upon the structu re of c o m
m ercial b a n king in this relevant area.
C o n n e c tic u t s ta tu te s p e rm it s ta te w id e
m erg e r and de novo b ra n ch in g activity, s u b
je c t to a hom e o ffice p ro te ctio n provision.
F irs t B a n k is th e re fo re p ro h ib ite d fro m
b ra n c h in g into the city of H artford and other
co m m u n ities co n ta in in g an e xisting b a n k ’s
head office. G uaranty Bank and its affiliates
fa c e sim ilar d iffic u lty in e xp a n d in g southw ard
into areas now served by First Bank. In a d d i
tion, G u a ra n ty B a n k ’s p re se n t w e a ke n e d
co n d itio n serves to p re ve n t it and its p a re n t
from e m b a rkin g upon any form of e xp a nsio n
into new m arkets at this tim e. The pro p o sa l
w o u ld have little e ffe c t upon the p otential for
in c re a s e d c o m p e titio n b e tw e e n th e tw o
ba n king o rg a n iza tio n s in the fo re se e a b le fu
ture.
B a n co rp, h o ld in g 4.4 p e rce n t of C o n n e c
tic u t’s total co m m e rcial bank de p osits, ranks
as the s ta te ’s e ig h th la rg e st co m m e rcia l
b a n king o rg a n iza tio n. CBF, holding a 1.4
p e rc e n t share of such funds, ranks as C on
n e c tic u t’s eleventh la rg e st b anking o rg a n iz a
tion. The p ro p o s e d series of tran sa ctio n s will
result in a b a n king o rg a n iza tio n w hich will
rank as C o n n e c tic u t’s seventh largest, h o ld
ing a m od e st 5.8 p e rc e n t share of the s ta te ’s
c o m m e rc ia l bank d e p o sits. Such a c o n se
q u e n c e is not v ie w e d as having any s ig n ific
ant a d ve rse c o m p e titiv e im p a ct in light of the
n u m b e r of s u b sta n tia lly la rg e r ba n king o r
g a n izatio n s in the state w hich offer intense
co m p e titio n .
The B oard of D ire cto rs is of the op in io n that
the p ro p o s e d tra n sa ctio n w ould not, in any
se ctio n of the country, su b stan tia lly lessen
co m p e titio n , tend to crea te a m onopoly, or in
any other m anner be in restraint of trade.
Financial and Managerial Resources; Fu
ture Prospects. The fin a ncia l and m anagerial
reso u rce s of G uaranty Bank have been se ri
ously w e a ke n ed by serious asset p ro b le m s
and d e p o s it losses in rece n t m onths. The
p ro p o se d tran sa ctio n is a ve h icle w h e re b y
th e se p ro b le m s m ay be resolved within the
fram e w o rk of a relatively larger, fin a ncia lly
so u n d c o m m e rc ia l b a n k in g o rg a n iz a tio n .
C o n sid era tio ns relating to the fin a ncia l and
m an agerial reso u rce s of the resultant bank
have been sa tisfacto rily resolved, and its
futu re p ro s p e c ts a p p e a r fa vo ra b le .
Convenience and Needs of the Community
to be Served. The a va ilab ility of an a d d itio n a l
regional ba n king o rg a n iza tio n in the H artford
m arket w h ich can offer h ig h er le n d in g limits
and a d d itio n a l ban king se rvice s than p re s
ently a va ilab le at offices of G uaranty Bank
should a cc ru e to the b e n efit of the local
co m m u n ity. C o n sid era tio ns relating to the
co n ve n ie n ce and needs of the co m m u n ity
are co n siste n t with and a d d som e w e ig h t in
fa vo r of a p p ro va l of the a p p lica tio n .
A review of ava ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A ct S tatem ents
of the p ro p o n e n ts and other relevant m ate
rial, d is c lo s e d no in co n siste n cie s w ith the
p u rp o se s of the Act. The resultant bank is
e x p e c te d to c o n tin u e to m eet the c re d it
needs of its entire co m m u n ity, co n siste n t with
the safe and sound o p e ra tio n of the bank.
B ased on the fo re g o in g , the B oard of Di
rectors has co n c lu d e d that a p p ro va l of the
a p p lic a tio n is w arranted.
Resources
(in thousands
of dollars)
S ou thea st Beach
S tate Bank
21,187
Banking Offices
in Operation
Before
After
2
3
Bay C ounty (P. 0 .
Panam a City),
Florida
(cha n g e title to
S outheast Bank of
Panam a City)
to merge with
S ou thea st N ational
Bank o f Panama
C ity
Panam a City,
Florida
12,974
1
BANK ABSORPTIONS APPROVED BY THE CORPORATION
S um m ary rep o rt by A tto rn ey G eneral,
M arch 30, 1979
The m e rg in g banks are both w h o lly-o w n e d
s u b s id ia rie s of the sam e b a n k h o ld in g co m
pany. As such, their p ro p o s e d m erg e r is
esse n tia lly a c o rp o ra te reo rg a n iza tio n and
w ould have no e ffe c t on co m p e titio n .
101
with the p u rp o se s of the Act. The resultant
institution is e x p e c te d to co n tin u e to m eet the
c re d it needs of its entire co m m u n ity, c o n sis
tent with the safe and sound o p e ra tio n of the
institution.
On the basis of the fo re g o in g inform ation,
the Board of D ire cto rs has c o n c lu d e d that
a p p ro va l of the a p p lic a tio n is w a rranted.
Basis fo r C o rpo ra tion A p p ro val
S e p te m b e r 10, 1979
S outheast Beach State Bank, Bay C ounty
(P. O. P anam a City), Florida (“ A p p lic a n t” ), an
insu re d State n o n m e m b er b ank w ith total
reso u rce s of $21,187,000 and total IPC d e
po sits of $ 1 5,772,000, has a p p lie d , p u rsu a n t
to S ection 18(c) and other p ro visio n s of the
Federal D ep o sit In su ra n ce A ct, for the C or
p o ra tio n ’s p rio r co n s e n t to m erg e with South
east N ational Bank of Panam a City, Panam a
City, Florida (“ O ther B a n k” ), with total re
s o u rce s of $ 1 2 ,9 7 4 ,0 0 0 and total IPC d e
po sits of $9,040,000. These banks w o uld
m erg e u n d er the ch a rte r of A p p lic a n t and
with the title “ S outheast Bank of Panam a
C ity ” . The one existing and one a p p ro v e d but
u n o p e n e d o ffic e of O ther Bank w o uld be
e s ta b lis h e d as b ra n ch e s of the resu lta n t
bank.
Competition. E ssentially a co rp o ra te reor
ga n izatio n , the p ro p o sa l w o u ld p ro vid e a
m eans by w h ich S outheast Banking C o rp o
ration, M iam i, Florida, a m ulti-b a nk h o ld in g
co m p a n y, m ay co n s o lid a te its o p e ra tio n s in
the Panam a C ity area. The p ro p o n e n ts have
been co m m o n ly c o n tro lle d sin ce 1974. The
p ro p o s e d m erg e r w o u ld not a ffe ct the s tru c
ture of c o m m e rcia l ba n king or the c o n c e n tra
tion of b a n king reso u rce s w ithin the relevant
m arket.
In vie w of the fo re g o in g , the B oard of
D ire cto rs is of the o p in io n that the p ro p o se d
m e rg e r w o u ld not, in any se ctio n of the co u n
try, s u b s ta n tia lly lessen co m p e titio n , tend to
c re a te a m onopoly, or in any other m anner be
in restraint of trade.
Financial and Managerial Resources; Fu
ture Prospects. P ro p o n e n ts’ fin a ncia l and
m a n a g e r ia l re s o u r c e s a re c o n s id e r e d
a d e q u a te for the p u rp o se s of this prop o sa l.
F inancial and m an a g e ria l resources of the
resu lta n t ba n k w o uld be sa tisfa cto ry and its
fu tu re p ro s p e c ts a p p e a r favorable.
Convenience and Needs of the Community
to be Served. S ervices to be o ffe re d in the
relevant m arket by the resultant bank w ould
not d iffe r m ate ria lly from those p re se n tly of
fe re d by each p ro p o n e n t.
A review of ava ilab le inform ation, in clu d in g
the p ro p o n e n ts ’ C o m m u n ity R e investm ent
A c t Statem ents, d is c lo se s no in co n siste n cie s
Resources
(in thousands
of dollars)
B ayB ank
N ew ton-W altham
T ru st C om pany
Banking Offices
in Operation
Before
After
524,503
31
64
4 8 2,405
33
W altham ,
M assa ch u se tts
(ch a n g e title to
BayB ank
M idd le se x)
to merge with
BayB ank M iddlesex,
N. A.
B urlington,
M assa ch u se tts
S um m ary rep o rt by A tto rn ey G eneral,
June 27, 1979
The m erg in g banks are both w h o lly-o w n e d
s u b sid ia rie s of the sam e ba n k h o ld in g c o m
pany. As such, their p ro p o s e d m erg e r is
esse n tia lly a c o rp o ra te reo rg a n iza tio n and
w o uld have no e ffe ct on co m p e titio n .
Basis for C o rpo ra tion A p p ro va l
S e p te m b e r 17, 1979
B a y B a n k N e w to n -W a lth a m T ru st C o m
p any, W a lth a m , M a s s a c h u s e tts (“ A p p lic
a n t” ), an insured State n o n m e m b e r b a n k with
total reso u rce s of $ 5 2 4 ,5 0 3 ,0 0 0 and total IPC
d e p o sits of $390,871,000, has a p p lie d , p u r
suant to Section 18(c) and o ther p ro visio n s of
the Federal D e p o sit In su ra n ce A ct, for the
C o rp o ra tio n ’s p rio r co n se n t to m erg e with
B ayB ank M idd le se x, N. A., B urlington, M as
s a c h u s e tts ,
w ith
to ta l
re s o u rc e s
of
$ 4 8 2 ,4 0 5 ,0 0 0 a n d to ta l IPC d e p o s its of
$3 6 9,329,000. These tw o ba n ks w o uld m erg e
u n d er the ch a rte r of A p p lic a n t and with the
title “ B ayB ank M id d le s e x ” . The 33 o ffice s of
B ayB ank M idd le se x, N. A. w o u ld be e s ta b
lished as b ra n ch e s of the resultant bank, and
the m ain o ffice lo cation w ould be re d e s ig
nated to the p re se n t m ain o ffice lo cation of
B ayB ank M idd le se x, N. A.
102
FEDERAL DEPOSIT INSURANCE CORPORATION
Competition. Essentially a co rp o ra te reor
ga n izatio n , the p ro p o sa l w o uld p ro vid e a
m eans by w hich BayB anks, Inc., Boston,
M assa ch u se tts, a bank h o ld in g co m p a n y,
m ay c o n s o lid a te the b ulk of its o p e ra tio n s in
M id d le s e x C ounty. The p ro p o n e n ts have
been co m m o n ly c o n tro lle d sin ce 1929. The
p ro p o s e d m erg e r w ould not a ffe ct the s tru c
ture of c o m m e rcia l ban king or the c o n c e n tra
tion of ba n king reso u rce s w ithin the relevant
m arket.
In vie w of the fo re g o in g , the B oard of
D ire cto rs is of the o p in io n that the p ro p o se d
m erg e r w ould not, in any section of the c o u n
try, s u b sta n tia lly lessen co m p e titio n , te n d to
cre a te a m onopoly, or in any other m anner be
in restraint of trade.
Financial and Managerial Resources; Fu
ture Prospects. P ro p o n e n ts’ fin a ncia l and
m a n a g e r ia l re s o u r c e s a re c o n s id e r e d
a d e q u a te for the p u rp o se s of this p ro p o sa l,
and the fu tu re p ro s p e c ts of the resultant ba n k
a p p e a r favo ra b le .
Convenience and Needs of the Community
to be Served. S ervices to be o ffe re d in the
relevant m arket by the resultant b ank w ould
not d iffe r m ate ria lly from those p re se n tly of
fe re d by each pro p o n e n t.
A review of ava ilab le inform ation, in clu d in g
the p ro p o n e n ts ’ C o m m u n ity R einvestm ent
A c t Statem ents, d is c lo s e d no in co n siste n cie s
with the p u rp o s e s of the Act. The resultant
institution is e x p e c te d to co n tinu e to m eet the
c re d it needs of its entire com m unity, co n s is
tent with the safe and sound op e ra tio n of the
institution.
On the b asis of the fo re g o in g inform ation,
the B oard of D irectors has co n c lu d e d that
a p p ro va l of the a p p lic a tio n is w arranted.
Resources
(in thousands
of dollars)
A m erican P acific
State Bank
Banking Offices
in Operation
Before
After
26,363
2
3
7,134*
1
Los A n g e le s (Sun
Valley), C a lifornia
to acquire the assets and
assume the deposit liabilities
of
S herm an Oaks
B ranch —
M an ufacture rs
Bank
Los A n g e le s,
C alifo rn ia
* Total IPC d e p o s its of o ffic e to b e tra n s fe rre d by
M a n u fa c tu re rs Bank. A ss e ts not re p o rte d by office .
S um m ary rep o rt by A tto rn ey General,
A p ril 20, 1979
We have review ed this p ro p o se d tra n s a c
tion and co n c lu d e that it w ould not have a
s u b stan tia l c o m p e titive im pact.
B asis for C o rpo ra tion A p p ro va l
S e p te m b e r 17, 1979
A m e rica n P a cific State Bank, Los A ngeles,
(Sun Valley), C alifo rn ia (“ A m e ric a n ” ), an in
sured State no n m e m b er b a n k with total re
so u rce s of $26 ,3 6 3 ,0 0 0 and total IPC d e
p osits of $ 1 9,727,000, has a p p lie d , pu rsu a n t
to Section 18(c) and other p ro visio n s of the
F ederal D e p o sit In su ra n ce A ct, fo r the C or
p o ra tio n ’s p rio r co n se n t to a cq u ire the assets
of and a ssu m e the lia b ility to pay the d e p o sits
m ade in the S herm an O aks Branch of M an
u fa c tu re rs Bank, Los A n g e le s, C a lifo rn ia
( “ M a n u fa c tu r e r s ” ). T he S h e rm a n O a ks
B ra n c h , w ith
to ta l
IPC d e p o s its
of
$ 7,134,000, w o u ld be o p e ra te d as a b ra n ch
of A m e rica n .
Competition. A m e rica n o p e ra te s its head
o ffice in the co m m u n ity of Sun Valley and a
b ra n c h a c q u ir e d in 1 9 7 8 fro m a San
F ra n cisco -b a se d ba n k in the a d ja ce n t co m
m unity of North H ollyw ood, both loca tio n s in
the San F ernando Valley p ortion of the city of
Los A n g e le s. The Sherm an O aks o ffice to be
a cq u ire d is lo ca ted in the co m m u n ity of
Sherm an O aks in the southern portion of the
San F ernando Valley a p p ro xim a te ly 8 road
m iles so u thw est of A m e ric a n ’s head o ffice
and a p p ro xim a te ly 4 road m iles from its North
H ollyw ood O ffice.
The relevant m arket in w hich to assess the
co m p e titive im p a ct of the p ro p o se d tra n s a c
tion is re g a rd e d as the co m m u n ity of Sher
m an O aks w hich is lo ca ted a p p ro xim a te ly 15
road m iles n o rth w e st of the “ d o w n to w n ”
b u sin ess d is tric t of Los A ngeles. Sherm an
O aks is p rim a rily a resid e n tia l co m m u n ity
with a p o p u la tio n estim a te d at 63,000. As
A m e rica n is not re p re se n te d in this relevant
m arket and a p p e a rs to de rive little of its
b u siness from the co m m u n ity, the p ro p o se d
tra n sa ctio n is re g a rd e d as having no s ig
n ifican t e ffe ct u pon existing co m p e titio n .
A total of 10 co m m e rcia l banks o p e ra te 16
o ffices in the Sherm an O aks m arket. In
c lu d e d am ong th e se banks are several of
C a lifo rn ia ’s la rg e st co m m e rcial banks, with
the three la rg e st banks in the m arket a g g re
g a tely co n tro llin g 67.3 p e rce n t of the m ar
ke t’s IPC d e p o s it base. In cid e n t to the p ro
p o se d tra n s a c tio n , M a n u fa c tu re rs , w h ich
p re se n tly h olds only a m od e st 2.2 p e rce n t
share of the m a rke t’s IPC d e p o sits, ranking it
as the sm alle st b a n k rep re se n te d in the m ar
ket, will w ith d ra w and be re p la ce d by A m e ri
BANK ABSORPTIONS APPROVED BY THE CORPORATION
can. The p ro p o s e d tra n sa ctio n w o u ld have
no a d v e rs e e ffe c t upon the structu re of co m
m ercial ba n king in this relevant area.
A s C a lifo rn ia sta tu te s p e rm it sta te w id e
b ra n ch in g activity, either A m e rica n or M an
u fa c tu re rs ca n e n ter the areas p re se n tly
served by the other by m eans of de novo
b ra n ch e xpansion. The m a n a g e m en t of M an
ufa cture rs, how ever, has in d ica te d its inten
tio n of c o n c e n tra tin g its e n e rg ie s in the
w h o le sale b a n king fie ld and is unlikely, after
d is p o s in g of its retail b ra n ch e s in the San
Fern a n do Valley, to e xp a n d into the retailo rie n te d areas now se rve d by A m e rica n in
the fo re s e e a b le future. A m e rica n , with its
ra p id ly g ro w in g but lim ited reso u rce based,
is un likely to e xp a nd into the heavily banked
a re a s s u c h as S h e rm a n O a ks w h e re a
n u m b e r of large ba n king o rg a n iza tio ns are
firm ly e sta b lish e d . The p ro p o se d tran sa ctio n
w o u ld not elim inate any sig n ifica n t potential
for c o m p e titio n betw e en the pro p o n e n ts.
U n der the c irc u m s ta n ce s, the B oard of
D ire cto rs is of the o p in io n that the p ro p o se d
tra n s a c tio n w o uld not, in any section of the
co u n try , s u b s ta n tia lly lessen c o m p e titio n ,
tend to cre a te a m onopoly, or in any other
m anner be in restraint of trad e .
Financial and Managerial Resources; Fu
ture Prospects. The m anagerial reso u rce s of
A m e rica n and of the resultant bank are re
g a rd e d as sa tisfacto ry. With the p ro p o se d
ad d itio n to the ca p ital stru ctu re of the resul
tant bank, its fin a ncia l resources will be
a d e q u a te to s u p p o rt the p ro p o se d a c q u is i
tion, and the resultant ba n k is a n ticip a te d to
have fa v o ra b le futu re p ro sp e cts.
Convenience and Needs of the Community
to be Served. The p ro p o sa l will not a ffe ct the
n u m b e r of b a n king o ffice s serving the Sher
m an O aks com m unity, nor is it e xp e cte d to
have any m aterial im p a ct upon the level of
c o m m e rc ia l b a n k in g s e rv ic e s a v a ila b le .
A m e rica n , how ever, is a n ticip a te d to co m
p ete m ore a g g re s s iv e ly for the retail-o rie n te d
b a n king b u siness in the co m m u n ity than has
M an u fa ctu re rs. C o n sid era tio ns of c o n ve n i
e n ce and n eeds of the co m m u n ity are c o n
sistent w ith a p p ro va l of the tran sa ctio n .
A review of a va ilab le inform ation, in clu d in g
the C o m m u n ity R einvestm ent A ct S tatem ents
of the tw o re s p e c tiv e in stitutions and other,
relevant m aterial, in d ica te s no in co n siste n
cies with the p u rp o s e s of the Act. The resu l
tant b a n k is e x p e c te d to co n tinu e to m eet the
c re d it needs of its entire com m unity, c o n s is
te n t with the safe and sound op e ra tio n of the
bank.
Based on the fo re g o in g , the Board of Di
recto rs has c o n c lu d e d that a p p ro va l of the
a p p lic a tio n is w arranted.
103
Resources
(in thousands
of dollars)
F irst-C itize n s Bank & 1,292,597
T ru st C om pany
Banking Offices
in Operation
Before
After
228
229
R aleigh, North
Carolina
to merge with
Bank o f Conway
4,451
1
Conw ay, North
C arolina
S um m ary rep o rt by A tto rn ey G eneral,
M arch 21, 1980
We have review ed this p ro p o se d tra n s a c
tion and c o n c lu d e that it w o uld not have an
ad ve rse e ffe ct upon co m p e titio n .
Basis for C o rpo ra tion A p p ro va l
O c to b e r 1, 1979
F irs t-C itiz e n s B a n k & T ru st C o m p a n y ,
Raleigh, North C arolin a (“ F irst-C itize n s” ), an
insured State n o n m e m b er b a n k with total
reso u rce s of $ 1 ,2 9 2 ,5 9 7 ,0 0 0 and total IPC
d e p o s its of $ 1 ,0 0 7 ,7 0 8 ,0 0 0 , has a p p lie d ,
p u rsu a n t to S ection 18(c) and o ther p ro vi
sions of the Federal D e p o sit Insu ra n ce Act,
for the C o rp o ra tio n ’s p rio r co n se n t to m erg e
w ith B a n k o f C o n w a y , C o n w a y , N o rth
C arolina (“ O ther B a n k” ), w ith total reso u rce s
of $ 4 ,4 5 1 ,0 0 0 and total IPC d e p o s its of
$ 3,628,000. The ba n ks w o uld m erg e u n d er
the ch a rte r and title of F irst-C itizens and,
in cid e n t to the m erger, the one existing office
of O ther Bank w o u ld b e co m e a b ra n ch of the
resultant bank, in cre a sin g the nu m b e r of its
o ffice s to 229.
Competition. F irs t-C itiz e n s is th e fifth
la rg e st ba n k in North C arolina. It cu rre n tly
o p e ra te s 228 o ffice s th ro u g h o u t the state.
The nearest o ffice of F irst-C itizens to O ther
Bank is lo ca ted in W eldon, a p p ro xim a te ly 26
m iles w est of Conw ay, w h e re O ther Bank
o p e ra te s its only office. The areas se rve d by
the tw o banks do not ove rla p , and the p ro
po se d m erg e r w o uld not elim inate any s ig
n ifican t existing co m p e titio n b etw een them .
The e ffe ct of this p ro p o sa l w ould be m ost
p ro n o u n ce d in the p rim a ry m arket area of
O ther Bank w h ich e xte n d s fo r tw elve to fif
teen road m iles from Conw ay. C onw ay is a
rural v illa g e in N o rth a m p ton County, and the
m arket area in clu d e s a su b stan tia l pa rt of
N o rth a m p ton C ounty and w estern H ertford
County, North C arolina, and the Boykins and
B ra n c h v ille c o m m u n itie s in S o u th a m p to n
C ounty, Virginia. There are six b a n king in
stitutions o p e ra tin g e ig h t ba n king o ffices in
104
FEDERAL DEPOSIT INSURANCE CORPORATION
the relevant m arket area, in clu d in g three of
fic e s of the s e co n d larg e st bank in the state.
O th e r Bank has only 5.2 p e rce n t of the total
IPC d e p o s its in the m arket area, and is the
s m alle st of the six banks. F irst-C itizens is not
re p re se n te d in the m arket area and, inas
m uch as the p ro p o sa l w ould m erely s u b s ti
tute F irst-C itizens fo r O ther Bank at the sam e
site, the local m arket stru ctu re w ould not be
a ffe cte d .
U nder North C arolina law, each bank could
e sta blish de novo b ra n ch e s in areas served
by the other bank. B ecause of its lim ited
resources, O ther Bank is u nlikely to e n g a g e
in any such de novo b ra n c h in g a ctivity.
F irst-C itizens has the c a p a b ility for de novo
b ra n c h in g , but there is little ince n tive to enter
by this route b e ca u se of the n u m ber of c o m
m ercial ba n king o ffices a lre a d y in the m arket
area. It th e re fo re a p p e a rs unlikely that any
s ig n ific a n t p otential co m p e titio n w o uld be
elim in a te d by the p ro p o se d m erger.
B ased on the fo re g o in g , the Board of Di
rectors is of the o p inion that the p ro p o se d
m e rg e r w o uld not, in any section of the co u n
try, s u b sta n tia lly lessen co m p e titio n , tend to
c re a te a m on o p o ly, or in any other m anner be
in restraint of trade.
Financial and Managerial Resources; Fu
ture Prospects. Both p ro p o n e n ts have sa tis
fa c to ry fin a ncia l and m anagerial resources,
as w o u ld the resultant bank. Future p ro s
p e c ts a p p e a r fa vo ra b le .
Convenience and Needs of the Community
to be Served. C onsum m ation of this p ro
p o se d m erg e r w ould m ake ava ilab le to the
p u b lic a m ore a g g re s s ive banking o rg a n iz a
tion w h ich will p ro v id e e xp a n d e d ba n king
se rvice s to the p e o p le of C onw ay and its
relevant m arket area. C o n sid era tio ns of c o n
v e n ie n ce and needs are there fo re co n sisten t
with a p p ro va l of the p ro p o se d m erger.
A review of ava ilab le inform ation, in clu d in g
the p ro p o n e n ts ’ C o m m u n ity R einvestm ent
A c t Statem ents, d is c lo se s no in co n siste n cie s
w ith the p u rp o s e s of the Act. The resultant
institution is e x p e c te d to co n tinu e to m eet the
c re d it needs of its entire com m unity, c o n sis
tent with the safe and sound ope ra tio n of the
institution.
B ased on the fo re g o in g , the Board of Di
recto rs has c o n c lu d e d that a p p ro va l of the
a p p lic a tio n is w arranted.
Resources
(in thousands
of dollars)
Erie S avings Bank
Banking Offices
in Operation
Before
1,898,590
15
7,504
1
After
16
B uffalo, New York
to merge with
F redonia S avings
and Loan
A s s o c ia tio n
F redonia, New York
Sum m ary report by A tto rn ey G eneral,
June 27, 1979
We have review ed this p ro p o se d tra n s a c
tion and c o n c lu d e that it w o uld not have a
su b stan tia l co m p e titive im pact.
Basis for C o rpo ra tion A p p ro val
O cto b e r 1, 1979
Erie Savings Bank, Buffalo, N ew York, an
insured m utual savin g s bank with total re
s o u rce s of $ 1 ,89 8 ,5 9 0 ,00 0 and total d e p o sits
of $1,75 8 ,4 1 9 ,00 0 , has a p p lie d , p u rsu a n t to
S ection 18(c) and other p ro visio n s of the
F ederal D ep o sit In su ra n ce A ct, for the C or
p o ra tio n ’s co n se n t to m erge, u n d er its ch a r
ter and title, with F redonia Savings and Loan
A sso cia tio n , F redonia, New York (“ FSL” ), a
F e d e ra lly-in su re d , S ta te -ch a rte re d sa vin g s
and loan asso cia tio n with total reso u rce s of
$7 ,50 4 ,0 0 0 and total d e p o sits of $6,901,000,
and to esta blish the sole o ffice of FSL as a
b ra n ch of Erie S avings Banks w h ich w ould
co m m e n ce o p e ra tio n with a total of 16 fullse rvice offices.
Competition. Erie Savings Bank, e s ta b
lished in 1854, o p e ra te s 15 fu ll-se rvice of
fice s in three co u n tie s of w estern New York
state. H e a d q u a rte re d in Buffalo, Erie Savings
Bank is p rim a rily rep re se n te d in that city and
su rro u n d in g areas of Erie County. A d d itio n al
b ra n ch e s are o p e ra te d at Jam estow n and in
the O lean area, a p p ro xim a te ly 65 and 75
m iles south of Buffalo, resp e ctive ly. The in
stitution has been a ctive in e sta blish in g EFT
Units and p re se n tly o p e ra te s such fa cilitie s in
10 counties, as far east as the S yracuse area.
FSL, e sta b lish e d in 1927, o p e ra te s its sole
office in the V illage of F redonia (1970 p o p u
lation 10,326) a p p ro xim a te ly 45 m iles so u th
w est of Buffalo.
The relevant m arket in w h ich to assess the
co m p e titive im p a ct of the p ro p o se d tra n s a c
tion is re g a rd e d as the area w ithin a 10-12
roa d -m ile radius of F re d o n ia-D u n kirk c o n
ta in in g an e stim a te d 1970 p o p u la tio n of
40,000. The V illage of F redonia is lo ca ted in
northern C h a u tau q u a C ounty a d ja c e n t to the
BANK ABSORPTIONS APPROVED BY THE CORPORATION
c ity of D unkirk (1970 p o p u la tio n 16,855)
w h ich is a m ajor ce n te r for m an u fa ctu rin g
and ind u stria l activity. Southern p o rtio n s of
C h a u ta u q u a C ounty are m ore a g ricu ltu ra lly
o rie n te d . Stainless steel p ro d u c ts and p ro c
e ssed fo o d s p ro v id e the ch ie f n o n ag ricu ltura l
e m p lo y m e n t a lternatives, with the State Univ e r is ty C o lle g e a t F re d o n ia p r o v id in g
e m p lo ym e n t fo r a p p ro x im a te ly 1,100.
The p ro p o n e n ts ’ c lo se st o ffices are lo ca ted
a p p ro x im a te ly 32 road m iles a p a rt and serve
se p a ra te , d is tin c t m arkets. FSL o p e ra te s in a
sm all lo ca lize d area in w h ich only three thrift
institution o ffice s are loca ted , of w hich FSL is
by far the sm alle st in share of total thrift
d e p o s its held. C o nsum m ation of the p ro
p o se d tran sa ctio n w ould m erely su b stitu te
Erie Savings Bank fo r a relatively sm all, local
s a vin g s a nd loan a sso cia tio n and w ould have
no s ig n ific a n t e ffe ct on e xisting co m p e titio n
or any a d ve rse im p a c t upon the structu re of
th rift institution b a n king in this relevant m ar
ket.
The p o s s ib ility that any s ig n ifica n t level of
c o m p e titio n m ay d e v e lo p b etw een the p ro
po n en ts th ro u g h de novo b ra n ch in g a p p e a rs
rem ote. Erie S avings Bank, g o ve rn e d by a
state statute w hich lim its such de novo ex
p a n sion to a sin g le o ffic e e ach year, is
v ie w e d as an unlikely p otential entrant into
the F redonia m arket in the fo re se e a b le future.
The m o d e st size and lim ited reso u rce s of
FSL, w hich has o p e ra te d from a sin g le o ffice
sin ce in ce p tio n , w o u ld seem to p re clu d e any
m ea n in g fu l de novo e xp a nsio n e ffort on its
pa rt into areas now served by Erie Savings
Bank.
The B oard of D ire cto rs is of the o p inion that
the p ro p o s e d m e rg e r w ould not, in any s e c
tion of the co u n try, s u b sta n tia lly lessen c o m
p e tition, tend to c re a te a m on o p o ly or in any
other m anner be in restraint of trade.
105
of both p ro p o n e n ts and o ther relevant m ate
rial, d isclo se d no in co n siste n cie s with the
p u rp o se s of the A ct. The resu lta n t institution
is e x p e c te d to co n tinu e to m eet the c re d it
n eeds of its entire co m m u n ity, co n siste n t with
its safe and sound opera tio n .
Based on the fo re g o in g , the Board of Di
rectors has c o n c lu d e d th a t a p p ro va l of the
a p p lic a tio n is w arranted.
Resources
(in thousands
of dollars)
Bank of
C h incoteague, Inc.
Banking Offices
in Operation
Before
After
7,832
1
4
38,987
3
C h in co tea g u e ,
V irginia
(ch a n g e title to
Farm ers &
M erch a n ts Bank —
Eastern Shore)
to merge with
Farm ers &
M erchants
N ational Bank in
O nley
O nley, V irg in ia
S um m ary rep o rt by A tto rn ey G eneral,
A u g u st 13, 1979
We have review ed this p ro p o se d tra n s a c
tion and c o n c lu d e that it w o u ld not have a
s ig n ifica n tly a d ve rse e ffe ct upon c o m p e ti
tion.
Financial and Managerial Resources; Fu
ture Prospects. The fin a ncia l resources of
Basis for C o rp o ra tio n A p p ro val
O cto b e r 1, 1979
both p ro p o n e n ts are a d e q u a te fo r p u rp o se s
of this tran sa ctio n . A p otential m an a g e m en t
s u c c e s s io n p ro b le m at FSL w ould be re
so lve d by Erie Savings B a n k’s sa tisfacto ry
m an a g e m en t a d m in iste rin g the affairs of the
resultant institution w hose futu re p ro sp e cts
a p p e a r favorable.
Pursuant to Section 18(c) and oth er p ro v i
sions of the Federal D e p o sit Insurance Act,
an a p p lic a tio n has been filed on b e h a lf of
Bank of C h in co tea g u e , Inc., C h in co tea g u e ,
V irg in ia (“ B O C ” ), an in su re d S tate n o n
m e m b e r b a n k w ith to ta l r e s o u r c e s of
$ 7 ,8 3 2 ,0 0 0 a n d to ta l IPC d e p o s its o f
$6,444,000, fo r the C o rp o ra tio n ’s co n se n t to
m erge, u n d er its charter, with F arm ers &
M erchants National Bank in O nley, Onley,
V irg in ia ("F a rm e rs B a n k ” ), w ith total re
so u rce s of $38 ,9 8 7 ,0 0 0 and total IPC d e
p osits of $ 3 4,267,000, and to esta blish the
three o ffice s of Farm ers Bank as b ra n ch e s of
the resu lta n t bank w hich w ould bear the title
"F a rm e rs & M e rc h a n ts B ank — E astern
S h o re ” . In cid e n t to the tran sa ctio n , the m ain
Convenience and Needs of the Community
to be Served. Erie Savings B a n k’s entry into
th e F re d o n ia -D u n k irk m arke t w o uld m ake
ava ila b le a se co n d so u rce of certain thrift
institution se rvice s not now o ffered by FSL.
C o n sid era tio ns relating to co n ve n ie n ce and
n e e ds of the c o m m u n ity to be served are
c o n s is te n t w ith a p p ro v a l of the a p p lica tio n .
A review of a va ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A ct Statem ents
106
FEDERAL DEPOSIT INSURANCE CORPORATION
o ffic e lo cation of the resultant ba n k w o u ld be
re d e s ig n a te d to the site of the cu rre n t m ain
o ffic e of Farm ers Bank.
Competition. BO C o p e ra te s its sole o ffice
in the tow n of C h in c o te a g u e (1970 p o p ula tio n
1,852) on C h in c o te a g u e Island in northern
A c c o m a c k C o u n ty on V ir g in ia ’s e a s te rn
shore. Farm ers Bank o p e ra te s its head o ffice
at O nley in cen tra l A c c o m a c k C ounty and tw o
bra n ch e s, one in the extrem e southern p o r
tion of the co u n ty at Belle Haven and one at
O ak Hall, serving the northern portion of the
c ounty.
The relevant m arket in w hich to assess the
c o m p e titiv e im p a c t of the p ro p o se d tra n s a c
tion is re g a rd e d as the northern portio n of
A c c o m a c k C ounty w ithin w hich BOC co m
petes. A c c o m a c k C ounty (1970 p o p ula tio n
29,004) is p rim a rily a g ricu ltu ra lly orie n te d
w ith p o u ltry p ro d u c tio n and p ro ce ssin g , v e g
e ta ble s, lum ber, tourism , and seafood p ro c
essing co n trib u tin g to the local e co n o m ic
base. The p o p ula tio n is relatively sta b le with
only a sm all d e c lin e in e vid e n ce betw een
1960 and 1970. The c o u n ty ’s 1978 m edian
househ o ld b u ying level is s ig n ifica n tly below
the c o m p a ra b le state fig u re . In the northern
portion of the county, the W allops Island
F light C enter of the National A e ro n a u tics and
S p a ce A d m in istra tio n (“ N AS A” ) se p a ra te s
C h in c o te a g u e Island from the bulk of A c
c o m a c k County. T ra n sp o rta tio n th ro u g h V ir
g in ia ’s eastern shore region and A c c o m a c k
C ounty is p rim a rily in a north-south d ire ctio n
along the U. S. Route 13 co rrid o r. The town of
C h in c o te a g u e is lo c a te d a p p ro x im a te ly 9
m iles east of this h ig h w ay artery, a c ce ssib le
only by a sin g le road and ca u se w a y pa ssin g
th ro u g h the NASA center.
The c lo se st o ffic e of Farm ers Bank to BOC
is lo ca ted at O ak Hall in northern A c c o m a c k
C ounty a p p ro x im a te ly 10 road m iles w est of
C h in co tea g u e . This o ffic e ’s location near the
ju n ctio n of U. S. Route 13 and the d ire c t
ea st-w e st road le a d in g to C h in co te a g u e in
d ic a te that there is som e e xisting co m p e titio n
betw een the tw o banks. The am ount of actual
d ire c t c o m p e titio n a p p e a rs lim ited, how ever,
with only a m od e st nu m b e r of d e p o sit and
loan cu sto m e rs at the O ak Hall o ffice being
dra w n from the C h in co te a g u e area. BO C
p rim a rily serves th e island and tow n of C h in
co te a g u e , a relatively isolated area, w hile the
O ak Hall o ffic e of Farm ers Bank, w hich is of
r e la tiv e ly m o d e s t s iz e (to ta l d e p o s its
$5 ,913,000), serves the northern portion of
the c o u n ty along the U. S. Route 13 co rrid o r.
The relevant m arket is d o m in a te d by the
p re s e n c e of a Bank of V irg in ia office, ho ld in g
59.4 p e rc e n t of the m a rke t’s IPC d e p o sits, a
m arket share m ore than d o u b le that w hich
w o uld be held by the resultant bank, su b
se q u en t to the instant m erg e r p roposal.
V irg in ia statutes pe rm it de novo b ra n ch
e x p a n s io n b y e ith e r o f th e p ro p o n e n ts
th ro u g h o u t A c c o m a c k County. Farm ers Bank
w ould be unlikely, how ever, to e xp a n d de
novo into the C h in co te a g u e are a of A c
c o m a c k C ounty now served by BOC and
an other in d e p e n d e n t co m m e rcia l bank, due
to the relatively low p o p ula tio n d ensity. BOC,
with its lim ited resource base, is unlikely to
e xp a nd de novo into m ore d ista n t areas now
served by Farm ers Bank, having o p e ra te d as
a unit b ank sin ce 1940 w hen BOC clo se d its
only b ra n ch , lo ca ted north of O ak Hall. The
loss of som e p otential for in cre a se d futu re
co m p e titio n betw een the tw o banks is not
re g a rd e d as having a s ig n ific a n t co m p e titive
im pact.
Financial and Managerial Resources; Fu
ture Prospects. Financial reso u rce s of both
p ro p o n e n ts and of the resultant b a n k are
re g a rd e d as sa tisfacto ry. C o n su m m a tion of
the p ro p o se d tran sa ctio n will resolve a m an
a g e m e n t su cce ssio n p ro b le m at BOC. The
resultant b ank is a n ticip a te d to have fa vo ra
ble fu tu re p ro sp e cts.
Convenience and Needs of the Community
to be Served. The resultant b ank will offer a
b ro a d e r ran g e of co m m e rcial ban king ser
vice s than p re se n tly a va ilab le at the o ffice of
BOC. Deposit and loan rates will be restruc
tured to reflect current m arket conditions.
C o n sid e ra tio n s relating to c o n ve n ie n ce and
needs of the co m m u n ity to be served are
c o n siste n t with a p p ro va l of the a p p lica tio n .
A review of ava ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A ct S tatem ents
of both p ro p o n e n ts and o ther relevant m ate
rial, d isclo se d no in co n siste n cie s with the
p u rp o se s of the Act. The resultant b ank is
e x p e c te d to co n tinu e to m eet the c re d it
ne e ds of its entire com m unity, co n sisten t with
the safe and sound o p e ra tio n of the institu
tion.
Based on the fo re g o in g , the B oard of Di
recto rs has co n c lu d e d that a p p ro va l of the
a p p lic a tio n is w arranted.
BANK ABSORPTIONS APPROVED BY THE CORPORATION
Resources
(in thousands
of dollars)
Surety National Bank
Banking Offices
in Operation
Before
47,973
4
81,813
3
After
7
Los A n g e le s (P. O.
Encino), C alifornia
(c h a n g e title to
C alifo rn ia O verseas
Bank)
(c o n v e rt to State
ch a rte r)
to merge with
California Overseas
Capital Co., Inc.
(in o rg a n iza tio n)
Los A n g e le s,
C alifo rn ia
and
California Overseas
Bank
Los A ngeles,
C a lifornia
S um m ary rep o rt by A tto rn ey G eneral,
S e p te m b e r 19, 1979
We have review ed this p ro p o se d tra n s a c
tion and c o n c lu d e that it w o u ld not have a
s u b stan tia l c o m p e titiv e im pact.
Basis for C o rpo ra tion A p p ro val
O c to b e r 5, 1979
P ursuant to Section 18(c) and other p ro vi
sions of the Federal D ep o sit Insurance A ct,
an a p p lic a tio n has been file d on beh alf of
Surety N ational Bank, Los A n g e le s (P.O. Encin o ), C alifo rn ia (‘‘Surety B a n k” ) w ith total
reso u rce s of $ 4 7 ,9 7 3 ,0 0 0 and total IPC d e
po sits of $ 2 9,633,000, fo r the C o rp o ra tio n ’s
p rio r co n se n t to m erge, upon Surety B a n k’s
c o n ve rsio n to a State ch a rte r, with C alifornia
O verseas C apital Co., Inc., a noninsured
C a lifo rn ia C o rpo ra tion in orga n iza tio n, and
to su b s e q u e n tly m erg e u n d er the new state
c h a rte r w ith C a lifornia O verseas Bank, Los
A n g e le s, C a lifornia (“ C O B ” ), with total re
s o u rce s of $81 ,8 1 3 ,0 0 0 and total IPC d e
p o sits of $52,143,000. In cid e n t to the p ro
p o s e d tran sa ctio n , the three offices of COB
w o u ld be e s ta b lis h e d as b ra n ch e s of the
resultant ba n k w h ich w o u ld bear the title
‘‘C alifo rn ia O verseas B a n k” , and the m ain
o ffic e lo ca tio n of the resultant bank w ould be
re d e s ig n a te d to the p re se n t m ain o ffice site
of COB.
Competition. Surety Bank, h e a d q u a rte re d
in the co m m u n ity of E ncino in the San Fer
107
n a n d o V a lle y p o rtio n of th e c ity of Los
A n g e le s, o p e ra te s b ra n ch e s in the c o m m u n
ity of R eseda and in the C ivic C enter D istrict
of the city of Los A ng e le s, and a b ra n ch at
M arina del Rey in so u thw este rn Los A n g e le s
C ounty. COB, h e a d q u a rte re d in the city of
Los A ngeles, a p p ro xim a te ly 4 m iles w est of
the “ d o w n to w n ” portion of the city, o p e ra te s
its three o ffices in the W ilshire B oulevard
co rrid o r with b ra n ch e s in the co m m u n ity of
W estw ood and in the city of Beverly Hills. A
rep re se n ta tive o ffice is also o p e ra te d in M a
nila, P hilippines. C alifo rn ia O verseas Capital
Co., Inc., is a n o n insu re d co rp o ra tio n in o r
g a n izatio n , w hich will be utilized as a ve h icle
to e ffe ct a co rp o ra te reo rg a n iza tio n , within
the fram e w o rk of the p ro p o se d transaction,
and w hich w ould have no e ffe ct on c o m p e ti
tion in any relevant area.
Each of th e p ro p o n e n ts ’ o ffic e s serve
lo ca lize d m arkets in the h ig h ly d e ve lo p e d
urb a n portio n s of Los A n g e le s C ounty. The
p ro p o se d union of the tw o in stitutions w o uld
have its m ost d ire c t and im m e d ia te c o m p e ti
tive im p a ct on those co m m u n ities now served
by Surety Bank, the sm alle r of the tw o banks
involved. COB is not rep re se n te d in any of
these m arkets with no o ve rla p of se rvice
areas in e vid e n ce . The p ro p o n e n ts ’ clo se st
o ffice s are lo ca te d a p p ro xim a te ly 4 m iles
a p a rt in a h ig h ly co n g e s te d urban area c o n
ta in in g num erous co m m e rcia l ba n king a lte r
natives. C O B ’s o ffice s serve se p a ra te , d is
tin c t m arkets from th o se se rve d by Surety
B a n k’s o ffice s and the tw o banks are not
re g a rd e d as b e in g in d ire c t co m p e titio n to
any sig n ifica n t d e g re e .
In each of the fo u r relevant b a n king m ar
kets served by Surety Bank, the institution
ranks as a relatively in e ffe ctive c o m p e tito r
with d e clin in g m arket shares. Surety Bank
holds m arket shares betw e en 0.1 p e rce n t
and 6.6 p e rce n t of of the IPC d e p o sits in
these four m arkets w h ich , in each case, is a
m arket share sig n ific a n tly sm aller than that
held by the su b sta n tia lly la rg e r banks re p
resented in these m arkets. Three of the four
Surety Bank o ffice s have su ffe re d d e p o sit
outflow s in the tw o year p e rio d June, 1977 to
June, 1979. The b a n k ’s three b ra n ch e s, all of
w hich w ere e s ta b lish e d m ore than ten years
ago, have fa ile d to d e ve lo p a sig n ifica n t
m arket pen etra tio n and d e p o sit gro w th in
their re sp e ctive m arkets, in sp ite of the g e n
erally fa vo ra b le e co n o m ic and g ro w th p ro s
p e cts p re va le n t in th e se areas.
CO B and Surety B ank rank as the 30th and
4 3 rd la rg e st co m m e rcia l banks, resp e ctive ly,
in share of d e p o sits held in Los A n g e le s
C ounty, a g g re g a te ly h o ld in g less than 0.3
p e rce n t of the C o u n ty’s IPC co m m e rcial ba n k
108
FEDERAL DEPOSIT INSURANCE CORPORATION
d e p o sits. In the State of C alifornia, the two
b a n ks are am ong the S ta te ’s sm allest a g g re
g a te ly h o ld in g only a nom inal vo lu m e of
C a lifo rn ia ’s co m m e rical bank de p osits. C o n
s u m m a tio n of th e p ro p o s e d tra n s a c tio n
w o u ld have little im p a c t on the level of c o n
ce n tra tio n of ba n king reso u rce s or on the
s tru c tu re of co m m e rcial ban king in any rele
va n t area.
C a lifo rn ia s ta tu te s p e rm it s ta te w id e de
novo b ra n c h in g and m erg e r activity, th e re
fore, each p ro p o n e n t has the p otential to
e x p a n d into the m arkets now served by the
o th e r. C o m m e rc ia l b a n k in g in th e Los
A n g e le s C ounty area is d o m in a te d by o ffice s
of m ost of the sta te ’s la rg e st co m m e rcial
banks. O ver 1,200 ban king o ffices have been
e s ta b lis h e d in the county, with the s ta te ’s five
la rg e st co m m e rcial banks o p e ra tin g m ore
than 800 of these o ffices.
In such a ba n king environm ent, the loss of
som e p otential for in cre a se d levels of c o m
petitio n to d e v e lo p betw een the pro p o n e n ts,
g iven their m od e st relative size and level of
resources, is re g a rd e d as having little c o m
p e titive im pact.
The B oard of D ire cto rs is of the o p in io n that
the p ro p o s e d m erg e r w ould not, in any s e c
tion of the country, su b sta n tia lly lessen c o m
petition, tend to c rea te a m on o p o ly or in any
o ther m anner be in restraint of trade.
Financial and Managerial Resources; Fu
ture Prospects. The fin a ncia l and m anagerial
reso u rce s of CO B are reg a rd e d as s a tis fa c
tory for p u rp o se s of this tran sa ctio n . Surety
Bank has e x p e rie n c e d earn in g s p ro b le m s
w hich w o uld be resolved by union with COB.
The resultant bank, with the p ro p o se d a d d i
tions to it ca p ital structu re , is a n ticip a te d to
have fa v o ra b le futu re p ro sp e cts.
Convenience and Needs of the Community
to be Served. Surety Bank has ce a se d to
fu n ctio n as an e ffe ctive c o m p e tito r in the
m arkets it p re se n tly serves. C onsum m ation
of the p ro p o s e d tran sa ctio n , while having
little im p a c t upon the typ e s and p ricin g of
c o m m e rc ia l b a n k in g s e rv ic e s o ffe re d in
these com m u n ities, will p ro vid e an a d d itio n a l
fu ll-s e rv ic e b a n k in g a lte rn a tiv e at S urety
B a n k’s o ffic e locations. C o n sid era tio ns re
lating to c o n v e n ie n c e and needs of the c o m
m unity to be served are co n sisten t with a p
proval of the a p p lic a tio n .
A review of a va ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A ct S tatem ents
of the p ro p o n e n ts, d is c lo s e d no in co n siste n
cies with the p u rp o s e s of the A ct. The resul
tant b ank is e x p e c te d to co n tinu e to m eet the
c re d it n eeds of its entire co m m u n ity, co n s is
tent w ith the safe and sound o p e ra tio n of the
institution.
Based on the fo re g o in g , the B oard of Di
rectors has c o n c lu d e d that a p p ro va l of the
a p p lica tio n is w arranted.
Resources
(in thousands
of dollars)
Central Bank
Banking Offices
in Operation
Before
642,732
47
48,439
5
18,657
3
28,645
3
After
58
O akland, California
to merge with
First National Bank of
Fresno
Fresno, California
and
Tahoe National Bank
South Lake Tahoe,
C alifornia
and
Valley Bank, National
Association
Liverm ore, California
S um m ary rep o rt by A tto rn ey G eneral,
February 9, 1979
The m erg in g banks are all w ho lly-o w n e d
su b sid ia rie s of the sam e bank ho ld in g c o m
pany. As such, the p ro p o se d m erg e r is e s
s e n tia lly a c o rp o ra te re o rg a n iz a tio n and
w ould have no e ffe ct on co m p e titio n .
Basis for C o rpo ra tion A p p ro val
O cto b e r 15, 1979
C e n tra l
B a n k,
O a k la n d ,
C a lifo rn ia
(“ A p p lic a n t” ), an insured State no n m e m b er
b ank with total reso u rce s of $ 6 42,732,000
and total IPC d e p o sits of $ 511,062,000, has
a p p lie d , p ursuant to Section 18(c) and other
p ro visio n s of the Federal D ep o sit Insurance
A ct, for the C o rp o ra tio n ’s p rio r co n se n t to
m erge, un d er its ch a rte r and title, with: First
National Bank of Fresno, Fresno, C alifornia
(“ F N B ” ), with total reso u rce s of $ 4 8 ,439,000
and total IPC d e p o sits of $36,718,000; Tahoe
N ational Bank, South Lake Tahoe, C alifornia
( “ T N B ” ), with total reso u rce s of $ 1 8 ,657,000
and total IPC d e p o sits of $14,817,000; and,
Valley Bank, National A sso cia tio n , Liverm ore,
C a lifo rn ia (“ V a lle y B a n k ” ), w ith total re
so u rce s of $28 ,6 4 5 ,0 0 0 and total IPC d e
posits of $25,305,000. Incident to the trans
action, the five offices of FNB, the three of
fice s of TNB, and the three o ffice s of Valley
Bank w ould be e s ta b lish e d as b ra n ch e s of
the resultant bank.
109
BANK ABSORPTIONS APPROVED BY THE CORPORATION
Competition. E ssentially a co rp o ra te reo r
g a n izatio n , the p ro p o sa l w ould p ro vid e a
m eans by w hich Central B anking System ,
Inc., O akland, C alifornia, a m ulti-b a nk h o ld
ing c o m p a n y, m ay c o n so lid a te these fo u r
b a n k in g s u b s id ia rie s in to a s in g le n o n
m em b e r bank. At least 90 p e rc e n t com m on
co n tro l of these four b a n ks has existed for
so m e years, and th e ir p ro p o s e d m e rg e r
w o u ld not a ffe c t the stru ctu re of co m m e rcial
b a n king or the co n c e n tra tio n of ban king re
so u rce s in any relevant area.
The Board of D irectors is of the op in io n that
the tra n sa ctio n w ould not, in any section of
the co u n try, s u b s ta n tia lly lessen co m p e titio n ,
tend to cre a te a m onopoly, or in any o ther
m anner be in restraint of trad e .
Financial and Managerial Resources; Fu
ture Prospects. The p ro p o n e n ts ’ m anagerial
reso u rce s are c o n s id e re d a d e q u a te for the
p u rp o s e s of th is p ro p o s a l. F in a n cia l re
so u rc e s of the resultant bank, with the c o n
te m p la te d in cre a se in the ca p ita liza tio n of
A p p lic a n t w ould be a c c e p ta b le , and the re
su lta nt bank is a n tic ip a te d to have fa vo ra b le
fu tu re p ro sp e cts.
Convenience and Needs of the Community
to be Served. S ervices to be o ffe re d by the
resultant bank w ould not d iffe r m ate ria lly from
those p re s e n tly offe re d by each of the p ro
ponents.
A review of a v a ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A ct Statem ents
of p ro p o n e n ts and oth er relevant m aterial,
d is c lo s e d no in c o n s is te n cie s with the p u r
poses of the A ct. The resultant ba n k is e x
p e c te d to co n tinu e to m eet the c re d it needs
of its entire co m m u n ity, co n siste n t with the
safe and sound o p e ra tio n of the institution.
B ased on the fo re g o in g , the B oard of Di
rectors has c o n c lu d e d that a p p ro va l of the
a p p lic a tio n is w arra n te d .
Resources
(in thousands
of dollars)
Southeast First Bank
of Jacksonville
46,961
Banking Offices
in Operation
Before
After
2
4
Ja ckso n ville , Florida
(ch a n g e title to
S outheast Bank of
Jackso n ville )
to merge with
Southeast Bank of
Edgewood
13,308
1
46,201
1
Ja ckso n ville , Florida
and
Southeast First
National Beach
Bank
Ja ckso n ville Beach,
F lorida
S um m ary rep o rt by A tto rn ey G eneral,
M ay 11, 1979
The m erg in g b a n ks are all w h o lly-o w n e d
s u b sid ia rie s of the sam e ba n k ho ld in g c o m
pany. As such, th e ir p ro p o s e d m erg e r is es
s e n tia lly a c o rp o ra te re o rg a n iz a tio n a n d
w o u ld have no e ffe ct on co m p e titio n .
Basis for C o rp o ra tio n A p p ro va l
O cto b e r 15, 1979
S o u th e a s t F irs t B a n k o f J a c k s o n v ille ,
J a ckso n ville , F lo rid a (“ A p p lic a n t” ), an in
s u re d S ta te n o n m e m b e r b a n k (to ta l re
s o u rc e s $ 4 6 ,9 6 1 ,0 0 0 ; to ta l IPC d e p o s its
$29,4 7 2 ,0 0 0 ), has a p p lie d , p u rsu a n t to S e c
tion 18(c) and o th er p ro visio n s of the Federal
D e p o sit In su ra n ce A ct, fo r the C o rp o ra tio n ’s
prio r co n se n t to m erg e with S outheast Bank
of E d g e w o o d , Ja ckso n ville , Florida, a State
m em b e r b a n k (total reso u rce s $13,308,000;
total IPC d e p o sits $ 1 0 ,627,000), and S outh
east First National Beach Bank, Ja ckso n ville
Beach, F lorida (total reso u rce s $46,201,000;
to ta l IPC d e p o s its $ 3 6 ,4 9 4 ,0 0 0 ). T h e se
banks w ould m erg e u n d e r the ch a rte r of
A p p lic a n t and w ith the title “ S outheast Bank
of Ja c k s o n v ille ” . The sole o ffice of each of the
tw o banks b e in g a c q u ire d w ould be e s ta b
lished as b ra n ch e s of the resultant bank.
Competition. E ssentially a co rp o ra te reor
ganizatio n , the p ro p o sa l w o uld p ro vid e a
m eans by w h ich S outheast B anking C o rp o
ration, M iam i, F lorida, a b a n k h o ld in g c o m
pany, m ay co n so lid a te its o p e ra tio n s in Duval
County. The p ro p o n e n ts have been u n d er
co m m o n co n tro l since 1976. The p ro p o se d
m erg e r w o u ld not a ffe ct the stru ctu re of
110
FEDERAL DEPOSIT INSURANCE CORPORATION
c o m m e rcia l ba n king or the c o n ce n tra tio n of
c o m m e rc ia l banking reso u rce s w ithin the re
levant m arket.
In vie w of the fo re g o in g , the B oard of Di
recto rs is of the op in io n that the p ro p o se d
m e rg e r w ould not, in any section of the c o u n
try, su b sta n tia lly lessen co m p e titio n , te n d to
cre a te a m onopoly, or in any other m anner be
in restraint of trade.
Financial and Managerial Resources; Fu
ture Prospects. P ro p o n e n ts’ fin a ncia l and
m a n a g e r ia l re s o u r c e s a re c o n s id e r e d
a d e q u a te fo r the p u rp o se s of this prop o sa l.
F inancial and m an agerial reso u rce s of the
resultant ba n k w ould be sa tisfacto ry, and its
fu tu re p ro s p e c ts a p p e a r favo ra b le .
Convenience and Needs of the Community
to be Served. S ervices to be o ffe re d in the
relevant m arket by the resultant bank w ould
not d iffe r m aterially from those p re se n tly of
fe re d by each p ro p o n e n t.
A review of a va ila b le inform ation, in clu d in g
the p ro p o n e n ts ’ C o m m u n ity R einvestm ent
A c t S tatem ents, d is c lo se s no in co n siste n cie s
with the p u rp o s e s of the A ct. The resultant in
stitution is e x p e c te d to co n tinu e to m eet the
c re d it needs of its entire com m unity, c o n s is
tent with the safe and sound o p e ra tio n of the
institution.
On the basis of the fo re g o in g inform ation,
the B oard of D ire cto rs has c o n c lu d e d that
a p p ro v a l of the a p p lic a tio n is w arranted.
Resources
(in thousands
of dollars)
American Beach
Boulevard Bank
Banking Offices
in Operation
Before
19,994
3
16,184
1
After
5
Jacksonville, Florida
(c ha n g e title to
A m erican Bank)
to merge with
American Arlington
Bank
Jacksonville, Florida
and
American Mandarin
Bank
14,040
1
Jacksonville, Florida
Sum m ary report by A tto rn ey General,
June 27, 1979
The m erg in g banks are all w h o lly-o w n e d
s u b sid ia rie s of the sam e b a n k h o ld in g c o m
pany. As such, th e ir p ro p o se d m erg e r is
e sse n tia lly a co rp o ra te reo rg a n iza tio n and
w o u ld have no e ffe ct on co m p e titio n .
Basis for C o rpo ra tion A p p ro va l
O cto b e r 22, 1979
A m e ric a n
B each
B o u le v a rd
Bank,
J a ckso n ville , F lorida (“ A p p lic a n t” ), an in
sured State non m e m b er b a n k with total re
s o u rce s of $19 ,9 9 4 ,0 0 0 and total IPC d e
p o sits of $ 17,512,000, has a p p lie d p u rsu a n t
to Section 18(c) and oth er p ro visio n s of the
Federal D ep o sit In su ra n ce A ct, fo r the C or
p o ra tio n ’s p rio r co n se n t to m erg e with A m e ri
can A rlin g to n Bank, Ja ckso n ville , Florida, an
insured State no n m e m b er ba n k with total
reso u rce s of $ 1 6 ,1 8 4 ,0 0 0 and total IPC d e
p o sits of $14,308,000, and A m e rica n M an
d arin Bank, Ja ckso n ville , Florida, an insured
State n o n m e m b er bank with total resources
of $ 1 4 ,0 4 0 ,0 0 0 and total IPC d e p o sits of
$ 1 2 ,4 5 3 ,0 0 0 . T hese b a n ks w o u ld m e rg e
u n d er the ch a rte r of A p p lic a n t and w ith the
title “ A m e rica n B a n k” . The sole o ffice of each
of the tw o banks b e ing a cq u ire d w o u ld be
e sta b lish e d as b ra n ch e s of the resu lta n t
bank. The m ain o ffice lo ca tio n will be re d e s
ig n a te d to the p re se n t site of A m e rica n M an
da rin Bank.
Competition. Essentially a co rp o ra te reor
g a n izatio n , the p ro p o sa l w o uld p ro vid e a
m eans by w hich A m e rica n Banks of Florida,
Inc., Ja ckso n ville , Florida, a b a n k h o ld in g
co m p a n y, m ay co n so lid a te three of its b a n k
ing su b sid ia rie s in the city of Jackso n ville .
The p ro p o n e n ts have been co m m o n ly c o n
trolle d sin ce 1974. The p ro p o s e d m erg e r
w o uld not a ffe ct the structu re of co m m e rcial
b a n king or the co n ce n tra tio n of b a n king re
so u rce s w ithin the relevant m arket.
In vie w of the fo re g o in g , the B oard of
D irectors is of the o p in io n that the p ro p o se d
m e rg e r w o u ld not, in any se ctio n of the c o u n
try, su b sta n tia lly lessen co m p e titio n , tend to
cre a te a m onopoly, or in any o ther m anner be
in restraint of trade.
Financial and Managerial Resources; Fu
ture Prospects. P ro p o n e n ts’ fin a ncia l and
m a n a g e r ia l re s o u r c e s a re c o n s id e r e d
a d e q u a te for the p u rp o se s of this proposal,
and the future p ro s p e c ts of the resultant bank
a p p e a r favorable.
Convenience and Needs of the Community
to be Served. S ervices to be o ffered in the
relevant m arket by the resultant bank w ould
not d iffe r m aterially from those pre se n tly of
fe re d by each p ro p o n e n t.
A review of a va ilab le inform ation, in clu d in g
th e p ro p o n e n ts ’ C o m m u n ity R einvestm ent
A c t S tatem ents, d isclo se s no in co n siste n cie s
w ith the p u rp o se s of the A ct. The resultant
institution is e xp e c te d to co n tin u e to m eet the
BANK ABSORPTIONS APPROVED BY THE CORPORATION
c re d it needs of its entire co m m u n ity, c o n sis
tent w ith the safe and sound o p e ra tio n of the
institution.
On the basis of the fo re g o in g inform ation,
the B oard of D ire cto rs has c o n c lu d e d that
a p p ro va l of the a p p lic a tio n is w arranted.
Resources
(in thousands
of dollars)
Peoples Bank of
Hancock
Banking Offices
in Operation
Before
11,726
1
6,405
1
After
2
H a n co ck, M aryland
to merge with
Antietam Bank
Company
H a gerstow n,
M aryland
Sum m ary rep o rt by A tto rn ey General,
D e c e m b e r 7, 1979
We have review ed this p ro p o se d tra n s a c
tion and c o n c lu d e that it w ould not have any
s ig n ific a n t e ffe ct u pon co m p e titio n .
Basis for C o rpo ra tion A p p ro va l
O c to b e r 29, 1979
Pursuant to Section 18(c) and oth er p ro v i
sions of the Federal D ep o sit Insurance Act,
an a p p lic a tio n has been file d on behalf of the
P eoples Bank of H a n co ck, H ancock, M ary
land (“ P eoples B a n k ” ), an insu re d State
n o n m e m b e r b a n k with total reso u rce s of
$ 1 1 ,7 2 6 ,0 0 0 a n d to ta l IPC d e p o s its of
$ 1 0,462,000, for the C o rp o ra tio n ’s p rio r c o n
sent to m erg e with A n tie ta m Bank C om pany,
H ag e rsto w n , M aryland ( “ A ntietam B a n k” ), an
insured State n o n m e m b er bank with total
reso u rce s of $ 6 ,40 5 ,0 0 0 and total IPC d e
p o sits of $4,313,000. In cid e n t to the p ro
p o se d tra n sa ctio n , the sole o ffice of Antietam
Bank w o u ld be e s ta b lis h e d as a b ra n ch of the
resultant bank.
Competition. P eoples Bank o p e ra te s its
sole o ffic e in the city of H a n co ck (1970
p o p u la tio n 1,832) lo c a te d in the n a rro w
p a n h a n d le of w estern W a shington County,
M aryland, near the P ennsylvania and W est
V irg in ia State bo rd e rs. P eop'es Bank is af
filia te d w ith S u b u rb a n B a n c o r p o r a tio n ,
H yattsville, M aryland, a m ulti-b a nk h o ld in g
c o m p a n y c o n tro llin g th re e co m m e rcial banks
in M aryland with a g g re g a te d e p o sits in ex
ce ss of $1 billion. A ntietam Bank o p e ra te s its
sole o ffic e in the c ity of H a g e rsto w n (1970
p o p ula tio n 26,543) in eastern W ashington
County.
The relevant m arket in w h ich to assess the
co m p e titive im p a ct of the p ro p o se d tra n s a c
tion is re g a rd e d as an area w ithin a p p ro x i
m a te ly 10 ro a d m ile s o f th e c ity o f
H ag e rsto w n in eastern W ash in g to n County.
W a s h in g to n C o u n ty (1 9 7 0 p o p u la tio n
103,289, an in cre a se of 13.8 p e rce n t from
1960) is p rim a rily a g ricu ltu ra lly o rie n te d with
m a n u fa ctu rin g a ctivity ce n te re d in the vicin ity
of H agerstow n. The c o u n ty ’s 1978 m edian
h o u sehold bu yin g level of $13,282 is 19 p e r
ce n t be lo w the c o m p a ra b le state figure.
The p ro p o n e n ts ’ o ffice s are lo ca ted m ore
than 25 road m iles a p a rt with no overlap of
se rvice areas in e vid e n ce and with num erous
co m m e rcial ba n king a lte rn a tive s located in
the in tervening area. P eoples Bank is lo ca ted
in the m ore m ou n ta in o us p ortion of w estern
W ash in g to n C ounty and w hile som e resi
d e n ts of the H a n co ck area co m m u te to the
H ag e rsto w n area fo r em p lo ym e nt, such in
te ra ctio n b etw een the tw o co m m u n ities is
lim ited and o f little c o m p e titive sig n ific a n c e
to th e p ro p o s e d tra n s a c tio n . As n e ith e r
P eoples Bank nor any affiliate of S u b u rba n
B a n c o r p o r a tio n is r e p r e s e n te d in th e
H ag e rsto w n m arket, co n su m m a tion of the
p ro p o se d tra n sa ctio n w o u ld have no s ig
n ifican t e ffe ct on existing co m p e titio n .
In the relevant m arket, 8 co m m e rcial banks
o p e ra te 34 offices. A n tietam Bank has failed
to esta blish a s ig n ific a n t m arket p e n etra tio n
and holds less than $4 m illion in IPC d e p o sits
rep re se n tin g only a 1.4 p e rce n t share of the
m a rke t’s total IPC d e p o s it base. The m a rke t’s
three la rg e st banks, m easured by share of
d e p o sits held, a g g re g a te ly con tro l m ore than
75 p e rce n t of the m a rke t’s IPC d e p osits.
R e p resented in this m arket are several of the
sta te ’s la rg e st b a n king o rg a n iza tio ns, p ro
vid in g intense co m p e titio n . In such a c o m
pe titive b a n king e nvironm ent, the a c q u isitio n
of A n tietam Bank by an affilia te of S u b u rba n
B a n co rpo ra tion w o u ld have no a d ve rse ef
fe c t on the level of d e p o s it co n ce n tra tio n or
on the stru ctu re of co m m e rcia l ba n king in the
relevant m arket.
S u b u rb a n B a n c o rp o ra tio n is the fo u rth
la rg e st ba n king o rg a n iza tio n in M aryland,
h o ld in g 9.5 p e rce n t of the s ta te ’s total co m
m ercial b ank d e p o sits. A c q u isitio n of A n ti
etam Bank, w hich h olds less than 0.1 p e rce n t
of such fu n ds, w o u ld have no m aterial im p a ct
upon the level of co n ce n tra tio n of co m m e r
cial ba n king reso u rce s in the state.
M aryland state sta tu te s p e rm it sta te w ide
m erg e r and de novo b ra n ch in g activity, s u b
je c t to ce rta in m inim um ca p ita liza tio n re
q u ire m e nts, and therefore, each p ro p o n e n t
FEDERAL DEPOSIT INSURANCE CORPORATION
has the potential to e xp a nd into areas now
se rve d by the other. A n tietam Bank lacks the
reso u rce s and e x p e rie n ce to m ount a m ajor
exp a nsio n effort, in the fo re se e a b le future,
into d ista n t areas p re se n tly served by S u b u r
ba n B a n c o rp o ra tio n a ffilia te s . S u b u rb a n
B a n c o r p o r a tio n , w h ile p o s s e s s in g th e
n e c e s s a ry re s o u rc e s a n d e x p e rie n c e to
b ra n ch de novo into the H a g erstow n m arket,
w o uld fin d such entry on a de novo basis
d iffic u lt in light of the nu m b e r of relatively
la rg e ba n king o rg a n iza tio ns a lre a d y well e s
ta b lis h e d in that m arket. The loss of som e
lim ited p otential for future co m p e titio n to d e
v e lo p b etw een the p ro p o n e n ts is re g a rd e d as
having little co m p e titiv e im pact.
The B oard of D irectors is of the op in io n that
the p ro p o s e d tran sa ctio n w ould not, in any
section of the country, su b stan tia lly lessen
co m p e titio n , tend to c rea te a m on o p o ly or in
any oth er m anner be in restraint of trade.
Financial and Managerial Resources; Fu
ture Prospects. C o n sid era tio ns relating to
fin a n c ia l and m an a g e ria l re so u rce s have
been s a tisfa cto rily resolved and the resultant
bank is a n tic ip a te d to have fa vo ra b le futu re
p ro sp e cts.
Convenience and Needs of the Community
to be Served. The resultant bank w o uld be
able to offer a b ro a d e r ran g e of co m m e rcial
b a n king s e rvice s than p re se n tly a va ilab le at
A n tie ta m B a n k. W h ile su ch c o m m e rc ia l
b a n k in g fu n c tio n s a re a v a ila b le in th e
H a g e rsto w n c o m m u n ity at o ffices of other
m ajor regional and sta te w ide ban king o r
ga n izatio n s rep re se n te d there, c o n su m m a
tion of the p ro p o s e d tran sa ctio n will b rin g an
a d d itio n a l alte rn a te so u rce of such se rvice s
to the com m unity. C o n sid era tio ns relating to
the co n v e n ie n c e and needs of the co m m u n ity
to be served are c o n siste n t with a p p ro va l of
the a p p lic a tio n .
A review of a v a ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A ct S tatem ents
of the p ro p o n e n ts, d is clo se d no in co n siste n
cie s w ith the p u rp o se s of the Act. The resu l
tant bank is e x p e c te d to co ntinue to m eet the
c re d it n eeds of its entire com m unity, c o n s is
tent w ith the safe and sound o peration of the
institution.
Based on the fo re g o in g , the Board of Di
rectors has c o n c lu d e d that a p p ro va l of the
a p p lic a tio n is w arranted.
Resources
(m thousands
of dollars)
First State Bank of
Oregon
371,679
Banking Offices
in Operation
Before
After
29
31
M ilwaukie, O regon
to merge with
The Community Bank
20,838
2
Lake O swego,
O regon
and
First State Interim
Bank of Oregon
(In organization)
Milwaukie, O regon
i
S um m ary report by A tto rn ey General,
June 27, 1979
The p ro p o s e d m ergers are p a rt of a plan
th ro u g h w hich Hood River C ounty Bank and
First State Bank of O regon w o uld b e co m e
s u b sid ia rie s of P acw est B a n co rp, a bank
h o ld in g co m p a n y. The instant m ergers, ho w
ever, w o u ld m erely co m b in e existing banks
with n o n -o p e ra tin g institutions; as such, and
w ithout reg a rd to the a cq u isitio n of the sur
viv in g b a n ks by P a cw e st B a n co rp , th e y
w ould have no e ffe ct on co m p e titio n .
Basis for C orpo ra tion A p p ro val
O cto b e r 29, 1979
Pursuant to Section 18(c) and other p ro v i
sions of the Federal D eposit Insu ra n ce Act,
an a p p lic a tio n has been file d on beh alf of
First State Bank of O regon, M ilw aukie, O re
gon (“ First B a n k” ), an insured State non
m e m b e r b a n k w ith to ta l r e s o u r c e s of
$ 3 7 1 ,6 7 9 ,0 0 0 and to ta l IPC d e p o s its of
$279,1 0 2 ,0 0 0, for the C o rp o ra tio n ’s co n se nt
to m erge, un d er its ch a rte r and title, with The
C o m m u n ity Bank, Lake O sw e g o , O reg o n
(“ C om m unity B a n k” ), with total reso u rce s of
$ 2 0 ,8 3 8 ,0 0 0 a n d to ta l IPC d e p o s its of
$ 17,162,000, and with First State Interim
Bank of O regon, M ilw aukie, O regon (“ First
Interim B a n k” ), a p ro p o se d new bank in
o rg a n iza tio n, and for co n se n t to esta blish the
tw o o ffice s of C om m unity Bank as b ra n ch e s
of the resultant bank. The pro p o sa l is pa rt of
a series of tran sa ctio n s w h e re b y a m ultibank
ho ld in g co m p a n y, P acw est B a n co rp, M il
w aukie, O regon, will be fo rm e d to a cq u ire all
of the o u tsta n d in g shares of sto ck of the
resultant b a n k in this p ro p o sa l plus tw o other
co m m e rica l banks lo ca ted in H ood River and
M cM innville, O regon.
Competition. First Bank, h e a d q u a rte re d in
BANK ABSORPTIONS APPROVED BY THE CORPORATION
the city of M ilw aukie in su b u rb a n Portland,
o p e ra te s 28 o ffice s in the three co u n tie s of
th e P o rtla n d (O re g o n ) m e tro p o lita n area
(1970 p o p u la tio n 880,675) and a single de
novo b ra n ch in Salem , a p p ro xim a te ly 45
m iles south of Portland. C om m unity Bank is
h e a d q u a rte re d in the C la cka m a s C ounty
p ortion of the city of Lake O sw e g o and o p e r
a te s a de novo b ra n c h (e s ta b lis h e d in
January, 1976) at the Portland State U niver
sity c a m p u s in the c ity of Portland, a p p ro x i
m ately 6 m iles north of its head office. C om
m unity B a n k’s only other de novo b ranch, in
O reg o n City, a p p ro x im a te ly 5 m iles so u th
east of Lake O sw e g o and 6 m iles south of
M ilw aukie, was d is c o n tin u e d d u rin g 1976.
First State Interim Bank of O regon, M ilw aukie,
O regon, is a n o n op e ra tin g bank in o rg a n iza
tion w hich will be utilized as a ve h icle to
effe c t a co rp o ra te reo rg a n iza tio n , w ithin the
fra m e w o rk of the p ro p o sa l, and w hich w o uld
have no e ffe ct on c o m p e titio n in any relevant
area.
The c ity of P o rtla n d (1 9 7 0 p o p u la tio n
38 2,619) is the ch ie f industrial, co m m e rcial
and fin a n cia l ce n te r for m uch of the state and
the C o lu m b ia River Valley. The city, w hile
lo ca ted p rin c ip a lly in M ultnom ah County, has
g ro w n to e n c o m p a s s p ortions of a d jo in in g
C la cka m a s and W a h ington Counties. The city
of M ilw aukie ( t9 7 0 p o p ula tio n 16,379) a d
joins P ortland on the south and stra d d le s the
C la cka m a s-M u ltn o m ah C ounty line. The city
of Lake O sw e g o (1970 p o p ula tio n 14,573)
a d jo in s both M ilw aukie and Portland and is
a c tu a lly lo c a te d in all three counties. Both
M ilw aukie and Lake O sw e g o are e co n o m i
c a lly h o m o g e n e o us w ith Portland and its en
viron s and have sh ared in the rap id grow th
and d e v e lo p m e n t p re va le n t th ro u g h o u t m ost
of the m etro p o lita n area. The relevant m arket
in w h ich to asses the co m p e titive im p a ct of
the p ro p o s e d tra n sa ctio n is, therefore, re
g a rd e d as the co n tig u o u s co u n tie s of C la c
kam as, M ultnom ah and W ashington, being
g e n e ra lly c o te rm in o u s w ith th e P o rtla nd
m e tro p o lita n area in n o rthw estern O regon.
C o m m u n ity B a n k’s Viking O ffice at the
P ortland State U niversity ca m p u s is lo ca ted
a p p ro x im a te ly Vz m ile from the clo se st office
of First Bank and w ithin 1 m ile of three of First
B a n k’s o ffic e s serving th e “ d o w n to w n ” b u si
ness s e c tio n of P ortland. As C o m m u n ity
B a n k ’s V ikin g O ffic e (tota l IPC d e p o s its
$ 2,41 1 ,0 0 0 ) caters p rin c ip a lly to a cliental
e vo lving from or a s s o c ia te d with the univer
sity, there a p p e a rs to be little actual d ire ct
co m p e titio n with the o ffices of First Bank
s e rvin g the co m m e rcial and fin a ncia l co re of
P o rtla n d . C o m m u n ity B a n k ’s h e a d o ffic e
s e rvin g Lake O sw e g o is not d ire c tly a c c e s s i
113
ble from o ffices of First Bank in th e a d jo in in g
city of M ilw aukie d u e to the natural ba rrie r
fo rm e d by the W illam ette River, and serves a
lim ited area in w h ich First Bank is not d ire c tly
rep re se n te d . The elim ination of som e existing
co m p e titio n b e tw een First Bank and C om
m un ity Bank, u pon c o n su m m a tio n of the
p ro p o se d tran sa ctio n , w o u ld have no sig n ifi
ca n t co m p e titive im pa ct.
O reg o n statutes p e rm it sta te w ide de novo
b ra n ch in g , how ever, a hom e o ffice p ro te ctio n
p ro v is io n p ro h ib its su ch e x p a n s io n in to
co m m u n ities of less than 50,000 p o p ula tio n
co n ta in in g a b a n k ’s head o ffice. First Bank is,
therefore, p re c lu d e d from de nove en try into
the city of Lake O sw e g o w h ich is now served
by C om m unity Bank. C o m m u n ity Bank, with
its relatively m od e st reso u rce base, has little
potential to e xp a n d into o th er p o rtio n s of the
Portland m etro p o lita n area now se rve d by
First Bank, to any m ean in g fu l d e g re e , in lig h t
o f th e in te n s e c o m p e titiv e e n v iro n m e n t
th ro u g h o u t the area. C o m m u n ity B a n k’s a t
te m p ts at de novo b ra n ch exp a nsio n have
m et with only lim ited s u cce ss as e vid e n ce d
by the d is c o n tin u a n c e of one o ffice and the
failure of the Viking O ffice to e sta blish a
sig n ifica n t m arket p e n etra tio n in its 3 1/2 years
of op e ra tio n . C o n su m m a tion of the p ro p o se d
tra n s a c tio n w o u ld e lim in a te little m aterial
potential for in cre a se d c o m p e titio n b etw een
the p ro p o n e n ts in the fo re se e a b le future.
A total of 18 insured co m m e rcia l banks
o p e ra te 213 o ffice s in the relevant m arket.
First Bank, with an 8.6 p e rce n t share of the
m a rke t’s insured co m m e rcia l b a n k IPC d e
posits, ranks as the th ird la rg e st bank, a
ranking that w ould rem ain u n ch a n g e d upon
the a cq u isitio n of C o m m u n ity B a n k’s nom inal
0.47 p e rce n t m arket share. The m arket is
re g a rd e d as h ig h ly c o n ce n tra te d with the
s ta te ’s tw o la rg e st co m m e rcia l banks, in an
u n d isp u te d d o m in a n t p osition, a g g re g a te ly
co n tro llin g over 75 p e rc e n t of the m a rke t’s
IPC d e p o sit base. In lig h t of the c o n ce n tra te d
nature of the existing b a n king environm ent,
the p ro p o se d tra n sa ctio n w ould have no a d
ve rse e ffe ct upon the level of c o n ce n tra tio n of
ba n king reso u rce s or upon the s tru ctu re of
co m m e rcial ba n king in this m arket.
P acw est B a n co rp, upon form ation as p ro
p o se d , w o u ld b e c o m e the s ta te ’s fo u rth
la rg e st ba n king o rg a n iza tio n, h o ld in g a p
p ro x im a te ly 4 .3 5 p e rc e n t of th e in su re d
co m m e rcial b a n k d e p o s its in O regon, an
in cre a se of only 0.6 p e rce n t from the share
now held by First Bank. C om m unity B a n k’s
co n trib u tio n to this in cre a se rep re se n ts only a
0.2 p e rce n t share of the s ta te ’s total d e p o sits.
As in the Portland m arket, the s ta te ’s tw o
la rg e st ba n king o rg a n iza tio n s d o m in a te the
FEDERAL DEPOSIT INSURANCE CORPORATION
co m m e rc ia l b a n king in d u stry, by a w id e
m argin, a g g re g a te ly h o ld in g alm ost 70 p e r
c e n t of O re g o n ’s insured co m m e rcial bank
d e p o s its . N either the p ro p o se d m e rg e r of
First Bank and C om m unity Bank nor the re
lated tra n s a c tio n by P acw est B a n co rp to a c
q u ire u n it b a n k s in H o o d R iv e r a n d
M cM in n ville w ould have any sig n ifica n t a d
verse im p a c t upon the structu re of co m m e r
cial ba n king or the level of co n ce n tra tio n of
b a n king reso u rce s in O regon.
The B oard of D ire cto rs is of the opin io n that
the p ro p o s e d tran sa ctio n w ould not, in any
section of the country, su b sta n tia lly lessen
co m p e titio n , tend to cre a te a m onopoly, or in
any o ther m anner be in restraint of trade.
Financial and Managerial Resources; Fu
ture Prospects. The fin a ncia l and m anagerial
reso u rce s of the p ro p o n e n ts are re g a rd e d as
sa tis fa c to ry and the resultant bank is a n tic i
p a ted to have fa v o ra b le futu re p ro sp e cts.
Convenience and Needs of the Community
to Be Served. The resultant bank will offer a
b ro a d e r ran g e of co m m e rcial b anking se r
v ic e s than p re se n tly ava ilab le at o ffice s of
C om m unity Bank. C o n sid era tio ns relating to
the co n v e n ie n c e and needs of the co m m u n ity
to be served are co n s iste n t with a p p ro va l of
the a p p lic a tio n .
A review of a va ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A ct S tatem ents
of the (o p e ra tin g ) p ro p o n e n ts and other rele
vant m aterial, d is c lo s e d no in co n siste n cie s
with the p u rp o se s of the Act. The resultant
b ank is e x p e c te d to co n tinu e to m eet the
c re d it needs of its entire com m unity, c o n s is
tent w ith the safe and sound o p e ra tio n of the
bank.
B ased on the fo re g o in g , the Board of Di
rectors has c o n c lu d e d that a p p ro va l of the
a p p lic a tio n is w a rra n te d .
Resources
(in thousands
of dollars)
First-Citizens Bank
and Trust
Company of South
Carolina
Banking Offices
in Operation
Before
After
286,812
49
50
4,995
1
C o lum bia, South
C arolina
to merge with
The Bank of Trenton
Trenton, South
C arolin a
S um m ary report by A tto rn ey G eneral,
N o ve m b e r 17, 1978
We have review ed this p ro p o se d tra n s a c
tion and co n c lu d e that it w o u ld not have a
su b stan tia l co m p e titve im pact.
Basis for C o rpo ra tion A p p ro va l
O cto b e r 29, 1979
First-C itizens Bank and Trust C o m pa n y of
South Carolina, C olum bia, South C arolina
( “ F irs t-C itiz e n s ” ), an in s u re d S ta te n o n
m e m b e r b a n k w ith to ta l r e s o u r c e s o f
$ 2 8 6 ,8 1 2 ,0 0 0 and to ta l IPC d e p o s its of
$234,2 9 8 ,0 0 0, has a p p lie d , p u rsu a n t to S e c
tion 18(c) and other p ro visio n s of the Federal
D e p o sit Insu ra n ce A ct, for the C o rp o ra tio n ’s
c o n se n t to m erge, u n d er its ch a rte r and title,
with The Bank of Trenton, Trenton, South
C a rolina (“ O ther B a n k” ), w ith total reso u rce s
of $4,995,000, and total IPC d e p o sits of
$ 3 ,488,000. In cid e n t to the p ro p o se d tra n s
a ction the sole o ffice of O ther Bank w ould be
e sta b lish e d as a b ra n ch of First-C itizens.
Competition. F irst-C itizens, b a se d in C ol
um bia, o p e ra te s 49 co m m e rcial b a n king o f
fice s in 15 co u n tie s of South Carolina, Since
1968, the b a n k has been involved in eleven
m e rg e r-ty p e tra n sa ctio n s, a c q u irin g c o m
m ercial banks in a nu m b e r of lo ca tio n s in the
state. O ther Bank o p e ra te s its sole o ffice in
the tow n of T renton (estim ated p o p ula tio n of
less than 400) lo ca ted in southern E d g e fie ld
C ounty, a p p ro xim a te ly 60 m iles so u thw est of
C o lu m b ia and 23 road m iles north of A u
g usta, G eorgia.
The relevant m arket in w hich to assess the
c o m p e titive im p a ct of the p ro p o se d tra n s a c
tion is re g a rd e d as the area w ithin an a p
p ro xim a te 15 roa d -m ile rad iu s of Trenton
w h ich in clu d e s m ost of E d g e fie ld C ounty and
a d jo in in g p o rtio n s of A ike n a nd S a lu d a
C o unties in the so u thw este rn p a rt of the
state. This area is relatively rural, with live
stock, cro p s and lu m b e r-re la te d a ctivites the
p re d o m in a n t e co n o m ic pursu its. The textile
and a p p are l in d u stry has h isto rica lly p ro
vid e d a n o n ag ricu ltura l e m p lo ym e n t a lte rn a
tive. The c ity of A ike n (19 7 0 p o p u la tio n
13,436), lo ca ted a p p ro xim a te ly 14 road m iles
so u the a st of Trenton, serves as a focal poin t
for co m m e rcial, retail and m a n u fa ctu rin g a c
tivity.
The p ro p o n e n ts are not e n g a g e d in any
m aterial vo lu m e of d ire c t co m p e titio n as the
nearest o ffice of F irst-C itizens to Trenton is
lo ca ted at B e lve d e re in so uthw estern Aiken
C ounty, a d is ta n c e of a p p ro xim a te ly 18 m iles
from O ther Bank. This B e lve d e re O ffice and
tw o other b ra n ch e s of F irst-C itizens in Aiken
C o u n ty s e rv e a s e p a ra te m a rk e t w h ic h
BANK ABSORPTIONS APPROVED BY THE CORPORATION
pa ra lle ls the Savannah River (South C arolina
— G e o rg ia b o rd e r) b etw een the A u g u sta
(G eo rg ia ) area and the S avannah River Plant,
a m ajor U. S. G o ve rn m e nt installation. There
is no o ve rla p in se rv ic e areas, and the p ro
p o se d tra n sa ctio n w ould have no sig n ifica n t
e ffe ct on existing c o m p e titio n b etw een the
tw o banks.
In the relevant m arket five co m m e rcial
banks o p e ra te 16 o ffices. O ther Bank, h o ld
ing less than $4 m illion in IPC d e p osits, is the
m a rk e t’s sm alle st c o m m e rcia l bank. Each of
the o ther four banks re p re se n te d in this m ar
ket rank a m ong the s ta te ’s ten la rg e st c o m
m ercia l b a n king org a n iza tio ns. The m a rke t’s
tw o la rg e st banks, m ea su re d in shares of
d e p o s its held, a g g re g a te ly co n tro l m ore than
73 p e rc e n t of the m a rk e t’s IPC d e p o sit base,
w hile O ther Bank ho ld s only a m od e st 4.2
p e rc e n t share. C o nsum m ation of the p ro
p o s e d tra n s a c tio n w o u ld su b stitu te FirstC itizens for O ther Bank and w ould have no
a d v e rs e im p a c t on the stru ctu re of co m m e r
cial b a n king in the relevant m arket.
F irst-C itizens ranks as South C a ro lin a ’s
sixth la rg e st co m m e rcial bank, ho ld in g 4.8
p e rc e n t of the s ta te ’s c o m m e rcia l bank d e
p osits. The a c q u is itio n of O ther Bank, one of
the s ta te ’s sm allest co m m e rcial banks, with
less than a 0.1 p e rc e n t share of the sta te ’s
c o m m e rc ia l bank d e p osits, w ould have no
e ffe c t on F irst-C itize n s’ ranking in the state.
This m o d e st in cre a se is not re g a rd e d as
h a ving any m aterial im p a ct upon the level of
co n c e n tra tio n of b a n king reso u rce s or upon
the stru c tu re of c o m m e rcia l ba n king in South
Carolina.
South C a rolina statutes p e rm it sta te w ide
m e rg e r and de novo b ra n ch in g a ctivity, s u b
je c t to ce rta in m inim um ca p ita liza tio n re
q u ire m e nts, and each p ro p o n e n t, therefore,
has the p o tential to e xp a n d into the area now
s e rve d by the other. O ther Bank, w hich has
o p e ra te d as a unit bank sin ce its e s ta b lis h
m ent in 1905, lacks the ne ce ssary level of
reso u rce s to m ount any m eaningful e xp a n
sion effo rt into areas now served by FirstC itize n s in the fo re s e e a b le fu tu re . W hile
F irs t-C itiz e n s ’ e xp a n sio n into the Trenton
m arket w o uld be p e rm itte d by state statute,
the a c q u is itio n of O ther Bank, with its m od e st
vo lu m e of d e p o s its and m arket penetration
after alm ost 75 years of opera tio n , is re
g a rd e d as having little co m p e titive im pact.
The B oard of D ire cto rs is of the o p inion that
the p ro p o s e d tra n sa ctio n w ould not, in any
se ctio n of the country, su b sta n tia lly lessen
c o m p e titio n , tend to cre a te a m on o p o ly or in
any oth er m anner be in restraint of trade.
Financial and Managerial Resources; Fu
ture Prospects. C o n sid era tio ns relating to
fin a n cia l and m a n a g e ria l re so u rce s have
been sa tisfa cto rily resolved. The reslutant
bank, with the p ro p o se d a d d itio n to its ca p ital
structu re , is a n ticip a te d to have fa vo ra b le
fu tu re p ro sp e cts.
Convenience and Needs of the Community
to be Served. F irst-C itizens will offer a g re a te r
ran g e of co m m e rcial b a n king se rvice s than
pre se n tly ava ilab le at O ther Bank. C o n sid e r
ations relating to co n ve n ie n ce and needs of
the co m m u n ity to be se rve d are co n siste n t
with a p p ro va l of the a p p lica tio n .
A review of a va ilab le inform ation, in c lu d in g
the C om m u n ity R einvestm ent A ct S tatem ents
of the tw o p ro p o n e n ts, d is c lo s e d no in co n
siste n cie s with the p u rp o se s of the Act. The
resultant ba n k is e xp e c te d to co n tinu e to
m eet the c re d it needs of its entire com m unity,
co n siste n t with the safe and sound o peration
of the bank.
Based on the fo re g o in g , the Board of Di
rectors has c o n c lu d e d that a p p ro va l of the
a p p lica tio n is w arra n te d .
Resources
(in thousands
of dollars)
Barnett Bank of
Delray Beach
Banking Offices
in Operation
Before
97,040
4
85,396
5
After
9
Delray Beach,
Florida
(cha n g e title to
Barnett Bank of Palm
Beach County)
to merge with
Barnett Bank of Palm
Beach County
W est Palm Beach,
Florida
Sum m ary of rep o rt by A tto rn ey G eneral,
July 19, 1979
The m erg in g banks are both w h o lly-o w n e d
s u b sid ia rie s of the sam e b a n k ho ld in g c o m
pany. As such, their p ro p o s e d m erg e r is
e sse n tia lly a c o rp o ra te reo rg a n iza tio n and
w ould have no e ffe ct on co m p e titio n .
Basis for C o rpo ra tion A p p ro va l
N o ve m b e r 13, 1979
B a rn e tt B ank of D e lray B e a ch , D e lray
B each, F lo rid a (“ A p p lic a n t” ), an in su re d
State n o n m e m b er bank with total reso u rce s
of $ 9 7 ,0 4 0 ,0 0 0 and total IPC d e p o sits of
116
FEDERAL DEPOSIT INSURANCE CORPORATION
$ 8 2,662,000, has a p p lie d p u rsu a n t to S e c
tion 18(c) and other p ro visio n s of the Federal
D e p o sit Insurance A ct, for the C o rp o ra tio n ’s
p rio r c o n s e n t to m erg e with B arnett B ank of
Palm B e a ch C ounty, W est Palm B e a ch ,
F lo rid a (“ O ther B a n k ” ), an insu re d State
n o n m e m b e r b a n k w ith total re so u rce s of
$ 8 5 ,3 9 6 ,0 0 0 a n d to ta l IPC d e p o s its of
$ 6 6 ,7 7 8 ,0 0 0 . These b a n ks w o u ld m e rg e
u n d e r the ch a rte r of A p p lic a n t and with the
title of O ther Bank. The five o ffice s of O ther
B ank w o u ld be e sta b lish e d as b ra n ch e s of
the resu lta n t bank.
Competition. Essentially a co rp o ra te reor
g a n izatio n , the pro p o sa l w ould p ro vid e a
m eans by w hich B arnett Banks of Florida,
In c ., J a c k s o n v ille , F lo rid a , a m u lti-b a n k
h o ld in g co m p a n y, m ay c o n so lid a te its o p e r
ations in Palm Beach County, Florida. The
p ro p o n e n ts have been u n d er co m m o n c o n
trol sin ce 1973. The p ro p o se d m erg e r w ould
not a ffe c t the stru ctu re of co m m e rcial b a n k
ing or the c o n c e n tra tio n of ban king resources
w ithin the relevant m arket.
In vie w of the fo re g o in g , the B oard of
D ire cto rs is of the op in io n that the p ro p o se d
m erg e r w o u ld not, in any section of the co u n
try, su b sta n tia lly lessen co m p e titio n , tend to
c re a te a m onopoly, or in any o ther m anner be
in restraint of trade.
Financial and Managerial Resources; Fu
ture Prospects. P ro p o n e n ts’ fin a ncia l and
m a n a g e r ia l re s o u r c e s a re c o n s id e r e d
a d e q u a te for the p u rp o se s of this prop o sa l.
Financial and m anagerial resources of the
resultant bank w ould be sa tisfacto ry, and its
fu tu re p ro s p e c ts a p p e a r favorable.
Convenience and Needs of the Community
to be Served. S ervices to be o ffe re d in the
relevant m arket by the resultant bank w ould
not d iffer m aterially from those p re se n tly of
fered by each pro p o n e n t.
A review of ava ilab le inform ation, in clu d in g
the C o m m u n ity R einvestm ent A ct Statem ents
of the p ro p o n e n ts, d is clo se s no in co n siste n
cies w ith the p u rp o s e s of the A ct. The resul
tant institution is e x p e c te d to co n tinu e to
m eet the c re d it n eeds of its entire com m unity,
c o n siste n t w ith the safe and sound op e ra tio n
of the institution.
On the basis of the fo re g o in g inform ation,
the Board of D ire cto rs has c o n c lu d e d that
a p p ro va l of the a p p lic a tio n is w arra n te d .
Resources
(in thousands
of dollars)
The Firestone Bank
Banking Offices
in Operation
Before
378,301
16
11,391
2
After
18
A kron, O hio
to merge with
The Firestone Bank
of Wadsworth
W adsw orth, O hio
Sum m ary rep o rt by A tto rn ey G eneral,
S e p te m b e r 19, 1979
The m erg in g banks are both w h o lly-o w n e d
su b sid ia rie s of the sam e b ank h o ld in g co m
pany. As such, their p ro p o se d m erg e r is
esse n tia lly a co rp o ra te reo rg a n iza tio n and
w ould have no e ffe ct on co m p e titio n .
B asis for C o rpo ra tion A p p ro va l
N o ve m b e r 13, 1979
The Firestone Bank, Akron, O hio (“ A p p lic
a n t” ), an insured State n o n m e m b er bank with
total reso u rce s of $3 7 8,3 0 1 ,0 0 0 and total IPC
d e p o sits of $280,778,000, has a p p lie d p u r
suant to Section 18(c) and other p ro visio n s of
the Federal D ep o sit In su ra n ce A ct, for the
C o rp o ra tio n ’s p rio r co n se nt to m erge with
T he
F ire s to n e
Bank
o f W a d s w o rth ,
W adsw orth, O hio (“ O ther B a n k” ), an insured
State n o n m e m b er bank with total reso u rce s
of $11 ,3 9 1 ,0 0 0 and total IPC d e p o sits of
$7,968,000. T hese banks w o uld m erge u n d er
the ch a rte r and w ith the title of A p p lica n t. The
tw o o ffices of O ther Bank w o u ld be e s ta b
lished as b ra n ch e s of the resultant bank.
Competition. Essentially a co rp o ra te reor
gan izatio n , the p ro p o sa l w ould p ro vid e a
m eans by w hich Firestone B a n co rp., Inc.,
Akron, Ohio, a bank ho ld in g co m p a n y c o n
trollin g these tw o banks only, m ay co n so li
d a te its ope ra tio n s. The p ro p o n e n ts have
been u n d er co m m o n control since 1973. The
p ro p o se d m erg e r w ould not in any section of
the co u n try, su b sta n tia lly lessen co m p e titio n ,
tend to cre a te a m onopoly, or in any other
m anner be in restraint of trade.
Financial and Managerial Resources; Fu
ture Prospects. P ro p o n e n ts’ financial and
m a n a g e r ia l r e s o u r c e s a re c o n s id e r e d
a d e q u a te for the p u rp o se s of this proposal.
Financial and m an agerial reso u rce s of the
resultant b a n k w ould be sa tisfacto ry, and its
fu tu re p ro s p e c ts a p p e a r fa vo ra b le .
Convenience and Needs of the Community
to be Served. S ervices to be o ffe re d in the
relevant m arket by the resultant b ank w ould
not d iffe r m ate ria lly from those p re se n tly o f
fe re d by each pro p o n e n t.
BANK ABSORPTIONS APPROVED BY THE CORPORATION
A review of a v a ilab le inform ation, in c lu d in g
the C o m m u n ity R einvestm ent A ct S tatem ents
of the p ro p o n e n ts, d is clo se s no in co n siste n
c ie s with the p u rp o s e s of the A ct. The resu l
ta n t in stitution is e x p e c te d to co n tinu e to
m eet the c re d it ne e ds of its entire co m m u n ity,
c o n s is te n t w ith the safe and sound o p e ra tio n
of the institution.
On the b a sis of the fo re g o in g inform ation,
the Board of D ire cto rs has c o n c lu d e d that
a p p ro v a l of the a p p lic a tio n is w arranted.
Resources
(in thousands
of dollars)
Heritage Bank
Banking Offices
in Operation
Before
74,617
2
28,421
3
After
5
A naheim , California
to merge with
Irvine National Bank
Irvine, C alifornia
S um m ary re p o rt by A tto rn ey G eneral,
D e c e m b e r 7, 1979
We have revie w e d this p ro p o se d tra n s a c
tion a nd c o n c lu d e th a t it w o uld not have an
a d ve rse e ffe c t u pon co m p e titio n .
B asis fo r C o rp o ra tio n A p p ro va l
N o ve m b e r 26, 1979
H e rita g e Bank, A naheim , C alifornia, an in
su re d State n o n m e m b e r b a n k with total re
so u rce s of $ 7 4 ,6 1 7 ,0 0 0 and total IPC d e
p o sits of $65,2 1 7 ,0 0 0 , has a p p lie d p u rsu a n t
to S ection 18(c) and other p ro visio n s of the
Federal D e p o sit In su ra n ce A ct, fo r the C o r
p o ra tio n ’s c o n s e n t to m erge, u n d e r its ch a r
ter and title, w ith Irvine N ational Bank, Irvine,
C a lifo rn ia (“ IN B ” ) w ith total re so u rce s of
$ 2 8 ,4 2 1 ,0 0 0 a n d to ta l IPC d e p o s its o f
$ 2 2,753,000. In c id e n t to the p ro p o se d tra n s
a ction the th re e o ffic e s of INB w ould be
e s ta b lis h e d as b ra n c h e s of the re sid e n t
bank.
Competition. H e rita g e Bank, e s ta b lish e d in
A u g u s t, 1975, is h e a d q u a rte re d in the city of
A n a h e im in th e n o rth w e s te rn p o rtio n of
O ra n g e C ounty, C alifo rn ia a p p ro xim a te ly 25
road m iles s o u the a st of the central b u siness
d is tric t of the city of Los A ng e le s. The bank
e s ta b lis h e d a b ra n c h in A p ril, 1978 in the
e a stern p o rtio n of the city of Santa Ana,
a p p ro x im a te ly 10 road m iles so u the a st of
A n a h e im , and has re ce ive d reg u la to ry a p
p roval to e sta blish a de novo b ra n ch o ffice in
the c ity of C osta M esa a p p ro xim a te ly 19 road
m iles south of A naheim . INB, e s ta b lish e d in
A u g u st , 1973, is h e a d q u a rte d in the ra p id ly
d e ve lo p in g co m m u n ity of Irvine at a site near
the O ra n g e C ounty A irp o rt in Coastal O ran g e
County. A b ra n ch in the new ly d e v e lo p e d
W o o d b rid g e se ctio n of Irvine w as e s ta b
lished in N ovem ber, 1978 a p p ro x im a te ly 5
road m iles east of th e m ain o ffic e and a
b ra n ch w as o p e n e d in S e p te m b e r, 1979 at
N e w p o rt B each a p p ro x im a te ly 6 road m iles
s o u thw est of th e m ain o ffic e .1
The relevant m arket in w h ich to a ssess the
co m p e titive im p a c t of the p ro p o s e d tra n s a c
tion is the area in w h ich INB p re se n tly co m
p e tes w h ich in clu d e s the co m m u n ity of Irvine
a nd the s u rro u n d in g citie s of Santa Ana,
C osta M esa and N e w p o rt B each, plus the
c o a s ta l c o m m u n itie s o f th e B a lb o a a nd
C orona del Mar. This m arket, c o n ta in in g a
1970 p o p u la tio n of a p p ro xim a te ly 300,000, is
e xp e rie n cin g rap id d e ve lo p m e n t with a s ig
n ifica n t e xp a nsio n in p o p u la tio n as well as
c o m m e rc ia l a n d in d u s tria l a c tiv ity . T he
O ra n g e C o u n ty A irp o rt, lo ca te d n ear the
ce n te r of the rele va n t m arket, is re p o rte d to
be am ong the n a tio n ’s b usiest, as m ea su re d
by total a irc ra ft tra ffic, and serves as a focal
p o in t fo r new d e ve lo p m e n t. The m a rke t’s
resid e n tia l b a se is co m p o s e d of relatively
a fflue n t p ro fe ssio n a ls w ith m ed ia n h o u seh o ld
bu yin g levels e stim a te d to be sig n ific a n tly
h ig h er than in n e ig h b o rin g areas.
The p ro p o n e n ts ’ clo se st o ffice s are lo ca te d
a p p ro xim a te ly 8 road m iles a p a rt a nd H eri
ta g e B ank's a p p ro ve d , b u t u n o p e n e d o ffice
to be lo ca ted in C osta M esa will be w ithin 5
m iles of tw o of IN B ’s o ffices. This p ro xim ity of
o ffice s w o u ld in d ica te th a t the tw o b a n ks are
in d ire c t co m p e titio n in the relevant m arket,
and th is existing co m p e titio n w o u ld be e lim i
nated by co n su m m a tio n of the p ro p o s e d
tran sa ctio n . Sim ilarly, as C alifo rn ia statutes
p e rm it s ta te w id e m e rg e r a n d de novo
b ra n ch in g a ctivity, the p ro p o sa l w ould p re
clu d e the poten tia l for in cre a se d levels of
c o m p e titio n to d e v e lo p betw e en them in this
m arket and w o u ld fo re clo se the poten tia l for
futu re c o m p e titio n w h ich co u ld result from an
1Principals of Heritage Bank acquired effective stock
control of INB in July 1979, and the two banks have
been operated under common management since that
time. Factors relating to this acquisition have been
subject to evaluation by the Office of the Comptroller of
the Currency pursuant to The Change in Bank Control
Act of 1978 (12 U.S.C. 1817(j). The Bank Merger Act
(12 U.S.C. 1828(c)), pursuant to which the instant
application has been filed, specifically requires the
consideration of statutory factors enumerated therein,
therefore, the Board of Directors has disregarded this
fact of common control in its analysis of the competitive
impact of the proposed merger transaction.
FEDERAL DEPOSIT INSURANCE CORPORATION
e xp a n sio n by either p ro p o n e n t into oth er
g e o g ra p h ic areas. This m arket, how ever, is
a lre a d y h ig h ly d e v e lo p e d and u rb a n ize d ,
c o n ta in in g n u m e ro u s o ffic e s o f la rg e
sta te w id e b a n king org a n iza tio ns. O ffices of
several of C a lifo rn ia ’s la rg e st co m m e rcial
banks are lo ca ted in clo se p ro xim ity to the
site of each of the p ro p o n e n ts ’ offices. In this
light, the loss of som e existing and p otential
c o m p e titio n b etw een the tw o banks, as a
c o n s e q u e n c e of the pro p o sa l, is re g a rd e d as
having little co m p e titiv e im pact.
In the relevant m arket a total of 33 insured
c o m m e rc ia l banks o p e ra te 114 b a n king o f
fice s. INB, h o ld in g 1.0 p e rce n t of the m ar
ke t’s IPC d e p o sits, ranks as its 18th larg e st
c o m m e rcia l b a n k w hile H e rita g e Bank, with a
nom inal 0.5 p e rc e n t share of such fu n ds,
ranks as the 25th la rg e st b a n k in the m arket.
A total of ten in d e p e n d e n t banks, in clu d in g
INB, have b e e n ch a rte re d in the relevant
m arket sin ce 1970. INB, how ever, has fa iled
to a ch ie ve the d e p o s it g row th enjo yed by
m ost of the b a n ks in this m arket and e xp e ri
e n c e d a su b stan tia l d e c lin e in m arket share
held in the p e rio d June, 1978 to June, 1979.
C o m m e rcial b a n king in the relevant m arket is
d o m in a te d b y th e p re s e n c e of m ost of
C a lifo rn ia ’s la rg e st co m m e rcial b anking o r
g a n iz a tio n s w ith th e s ta te ’s five la rg e s t
banks, as m ea su re d by total d e p o sits held,
ranking as the five la rg e st banks in the rele
vant m arket, a g g re g a te ly ho ld in g over 60
p e rc e n t of the m a rk e t’s IPC de p osits. In such
a c o m p e titiv e environm ent, the p ro p o sa l is
re g a rd e d as having no sig n ifica n t e ffe ct on
the level of c o n c e n tra tio n of ba n king re
so u rce s or u pon the stru ctu re of co m m e rcial
b a n king in any relevant area.
The B oard of D ire cto rs is of the opin io n that
the p ro p o s e d tra n sa ctio n w o uld not, in any
se ctio n of the country, su b stan tia lly lessen
co m p e titio n , te n d to cre a te a m on o p o ly or in
any o th er m anner be in restraint of trade.
Financial and Managerial Resources; Fu
ture Prospects. C o n sid era tio ns relating to the
fin a ncia l and m an a g e ria l resources of H eri
ta g e Bank and INB have been sa tisfa cto rily
reso lve d and the resultant bank is a n tic i
pa ted to have fa v o ra b le fu tu re p ro sp e cts.
rece n t p e rio d s, p ro vid in g the cu sto m e rs of
the local co m m u n ity with an e ffe ctive a d d i
tional so u rce of such co m m e rcia l ba n king
se rvice s. C o n sid era tio ns relating to the c o n
v e n ie n ce and n eeds of the co m m u n ity to be
se rve d are co n sisten t w ith a p p ro va l of the
a p p lica tio n .
A review of ava ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A ct S tatem ents
of the tw o banks, d isclo se d no in co n siste n
cie s with the p u rp o se s of the A ct. The resul
tant institution is e x p e c te d to co n tinu e to
m eet the c re d it needs of its entire com m unity,
co n siste n t with the safe and sound opera tio n
of the bank.
Based on the fo re g o in g , the Board of Di
recto rs has c o n c lu d e d that a p p ro va l of the
a p p lic a tio n is w a rra n te d
Resources
(in thousands
of dollars)
American Bank of
Hollywood
Banking Offices
in Operation
Before
21,567
1
10,000*
1
After
2
H ollyw ood, Florida
to purchase the assets and
assume the deposit liabilities
of
Pembroke Park
Branch —
American Bank of
Hallandale
P em broke Park
(P. O. H allandale),
Florida
* Total deposits of office to be transferred by American
Bank of Hallandale. Assets not reported by office.
S um m ary rep o rt by A tto rn ey G eneral,
M ay 22, 1979
W e have review ed this p ro p o se d tra n sa c
tion and c o n c lu d e that it w o uld not have a
su b stan tia l c o m p e titive im pact.
Convenience and Needs of the Community
to be Served. The p ro p o se d tra n sa ctio n is
Basis for C o rpo ra tion A p p ro va l
N o ve m b e r 26, 1979
not e x p e c te d to have any sig n ifica n t im p a ct
u pon the level and p ricin g of co m m e rcial
b a n king se rv ic e s in the co m m u n ity served by
e ither p ro p o n e n t as an e xtensive array of
such s e rvice s is a va ilab le at o ffice s of rela
tive ly la rg e sta te w id e b a n king o rg a n iza tio ns
w h ich are h eavily re p re se n te d in these areas.
The resu lta n t b a n k is, how ever, e xp e c te d to
c o m p e te m ore a g g re s sive ly than INB has in
A m e rica n Bank of H ollyw ood, H ollyw ood,
Florida (“ H o llyw ood B a n k” ), an insured State
n o n m e m b e r b a n k with total reso u rce s of
$ 2 1 ,5 6 7 ,0 0 0 a n d to ta l IPC d e p o s its of
$ 1 9,128,000, has a p p lie d , p u rsu a n t to S ec
tion 18(c) and oth er p ro visio n s of the Federal
D e p o sit In su ra n ce A ct, fo r the C o rp o ra tio n ’s
p rio r co n se n t to p u rch a se ce rta in assets of
a nd assum e the lia b ility to pay ce rta in d e
BANK ABSORPTIONS APPROVED BY THE CORPORATION
p o sits m ade in the P em broke Park o ffice of
A m e ric a n B ank of H a lla n d a le , P e m b ro ke
Park (P.O. H alla n da le ), F lorida (“ H a llandale
B a n k ” ). The total d e p o sits to be assum ed
a g g re g a te a p p ro x im a te ly $10,000,000. A like
a m ount of assets w ould also be a cq u ire d ,
in c lu d in g the P em broke Park o ffice w hich
w ould be e s ta b lis h e d as a b ra n ch of H ol
lyw ood Bank, in cre a sin g to tw o the nu m b e r of
ba n king o ffice s o p e ra te d .
H alla n da le Bank, w ith total resources of
$ 1 8 ,1 9 0 ,0 0 0 a n d to ta l IPC d e p o s its of
$15,51 7 ,0 0 0 , was e s ta b lish e d in 1974 as an
affilia te of H o llyw ood Bank (du e to com m on
ow n e rsh ip and in te rlo ckin g d ire cto rs). In a d
dition to its m ain office, it also o p e ra te s a
b ra n ch in C o o p e r C ity and one in Plantation,
Florida. In a se p a ra te a p p lica tio n filed in
co n ju n c tio n with this a p p lica tio n , H allandale
Bank req u e ste d , and rece ive d , perm issio n to
re d e s ig n a te its m ain o ffice (P em broke Park
o ffic e ) as a b ra n c h and re d e s ig n a te its
C o o p e r C ity o ffice as its m ain office.
Competition. All four ba n king o ffices of the
p ro p o n e n ts are lo ca ted in B row ard County,
Florida. W ithin this c o u n ty there are cu rre n tly
129 o ffic e s of 57 co m m e rcial banks. H ol
lyw ood Bank is ranked as the tw enty-sixth
la rg e st in term s of c o m m e rcia l bank IPC
d e p o sits, c o n tro llin g 0.7 p e rce n t of such d e
posits. H a lla n da le Bank is ranked as tw entyninth la rg e st w ith only 0.5 p e rce n t of such
d e p o sits. In vie w of the co m m o n o w nership
th a t has existe d sin ce the form ation of H al
lan d ale Bank, as well as the nom inal m arket
shares held by the tw o institutions, this tran s
actio n is seen to have no m aterial effe ct on
existing c o m p e titio n in this area or on the
stru c tu re of c o m m e rc ia l ban king .
As pa rt of the a g re e m e n t betw een the
p ro p o n e n ts, som e of the com m on ow ners of
the tw o banks w o uld be d ivid e d and the
m ajority s to c k h o ld e rs w o uld be sp lit into two
g ro u p s, each co n tro llin g one of the banks.
This should e n h an ce the p ro s p e c ts for in
c re a s e d fu tu re c o m p e titio n to d e ve lop be
tw een the p ro p o n e n ts.
B ased on the fo re g o in g , the B oard of Di
recto rs is of the op in io n that the p ro p o se d
tra n s a c tio n w ould not, in any section of the
c o u n try , s u b s ta n tia lly lessen c o m p e titio n ,
te n d to cre a te a m onopoly, or in any other
m anner be in restraint of trade.
Financial and Managerial Resources; Fu
ture Prospects. With the c o n te m p la te d a d d i
tion to its c a p ita l structu re , the financial and
m a n a g e ria l re s o u rc e s of H o llyw o o d Bank
a p p e a r su ffic ie n t to s u p p o rt the a cq u isitio n of
this b ra n ch , and the resultant bank is a n tic i
p a te d to have fa vo ra b le fu tu re p ro sp e cts.
Convenience and Needs of the Community
119
to be Served. Both banks in volved in this
tra n sa ctio n have been o p e ra te d as affiliates
with the sam e b o a rd of d ire cto rs and p re s i
dent. O ver the years they have d e v e lo p e d
b a sica lly the sam e po licie s, rates and se r
vices. The a d d itio n of new ca p ital in both
institutions will p ro vid e them with a larger
le n d in g limit, and co n sid e ra tio n s of co n ve n i
en ce and needs of the co m m u n ity a p p e a r to
be co n sisten t with a p p ro va l of this a p p lic a
tion.
A review of a va ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A ct Statem ents
of both p ro p o n e n ts and other relevant m ate
rial, d isclo se d no in co n siste n cie s with the
p u rp o se s of the A ct. The resultant ba n k is
e x p e c te d to co n tin u e to m eet the c re d it
needs of its entire co m m u n ity, co n siste n t with
the safe and sound o p e ra tio n of the in stitu
tion.
Based on the fo re g o in g , the Board of Di
recto rs has c o n c lu d e d that a p p ro va l of the
a p p lica tio n is w arranted.
Resources
(in thousands
of dollars)
Republic Bank
Banking Offices
in Operation
Before
67,763
1
16,113
2
After
3
G ardena, C alifornia
to merge with
California Pacific
Bank
Fullerton, California
Sum m ary rep o rt by A tto rn ey G eneral,
O c to b e r 26, 1979
We have review ed this p ro p o se d tra n s a c
tion and co n c lu d e that it w o uld not have an
a d ve rse e ffe ct u pon co m p e titio n .
Basis for C o rpo ra tion A p p ro val
N o ve m b e r 30, 1979
R e p u b lic Bank, G ardena, C alifornia, an in
sured State n o n m e m b er bank with total re
so u rce s of $67 ,7 6 3 ,0 0 0 and total IPC d e
p osits of $ 56,461,000, has a p p lie d , p u rsu a n t
to Section 18(c) and o ther pro visio n s of the
F ederal D eposit In su ra n ce A ct, for the C or
p o ra tio n ’s co n se n t to m erge, u n d er its c h a r
ter and title, with C a lifo rn ia P a cific Bank,
Fullerton, C a lifornia (“ C P B ” ), with total re
so u rce s of $16,11 3 ,0 0 0 and total IPC d e
p o sits of $11,725,000. In cid e n t to the p ro
p o se d tran sa ctio n , the tw o o ffice s of CPB
120
FEDERAL DEPOSIT INSURANCE CORPORATION
w o u ld be e sta b lish e d as b ra n ch e s of the
resultant bank.
Competition. R e p u b lic Bank, e sta b lish e d
in 1974, o p e ra te s its sole o ffice in the city of
G a rd e n a (1970 p o p u la tio n 4 1,021) in so u th
ern Los a n g ele s C ounty a p p ro xim a te ly 12
road m iles south of the cen tra l b u siness
d is tric t of the city of Los A ngeles. R e p u b lic
Bank has been g ra n te d a p p ro va l to esta blish
a de novo b ra n c h o ffic e s o u th w e s t of
G a rd e n a in the city of Torrance. CPB, e s ta b
lished in 1971, o p e ra te s its head o ffice in the
w estern p o rtio n of the city of Fullerton and a
b ra n ch lo ca te d a p p ro xim a te ly 3 m iles east
near the c ity ’s central b u siness d istrict. The
city of Fullerton (1970 p o p ula tio n 85,826;
e s tim a te d 1978 p o p u la tio n in e x c e s s of
100,000) is lo ca ted in northw estern O ran g e
C ounty a p p ro x im a te ly 25 road m iles so u th
east of the city of Los A ngeles.
The relevant m arket in w hich to assess the
c o m p e titiv e im p a c t of the p ro p o se d tra n s a c
tion is re g a rd e d as the tra d e area of CPB,
a p p ro x im a te d by the co n tig u o u s citie s of
Fullerton, A naheim , Brea, Buena Park, La
H a b re and P lacentia in the n o rthw estern p o r
tion of O ran g e County. The m arket, co n ta in
ing a 1970 p o p u la tio n of a p p ro x im a te ly
4 0 0 ,0 0 0 , is a re la tiv e ly a fflu e n t, h ig h ly d e v e lo p e d u rb a n ize d area. It has e x p e ri
e n c e d d y n a m ic g ro w th durin g the last tw o
d e c a d e s , w ith m od e ra te gro w th p ro je cte d for
th e n e xt d e c a d e . F o rm e rly a g ric u ltu ra lly
orie n te d , the area is now p rim a rily resid e n tia l
with a n u m b e r of la rg e industrial em p lo ye rs
lo ca ted in Fullerton. There is also e vid e n ce of
co m m u ta tion o u ts id e of relevant m arket for
e m p lo y m e n t alternatives.
T h e p r o p o n e n t s ’ c lo s e s t o ffic e s a re
s itu a te d a p p ro x im a te ly 20 road m iles a p a rt
w ith no e v id e n c e of o ve rla p in the se rvice
areas, in d ic a tin g that the pro p o sa l w ould
have no s ig n ific a n t e ffe ct on e xisting c o m
pe tition betw e en the tw o banks. C a lifornia
statutes p e rm it sta te w ide m erg e r and de
novo b ra n c h in g a c tiv ity and thus, there d o e s
exist som e poten tia l for co m p e titio n to d e
ve lo p betw e en them at som e futu re tim e. The
loss of this potential, how ever, is not re
g a rd e d as having any m aterial a d ve rse c o m
p e titiv e im p a c t in lig h t o f th e h ig h ly d e v e lo p e d u rb a n iz e d nature of the p ro p o
n e n ts ’ re s p e c tiv e tra d e areas and of the
in te rve n in g area betw e en them , as well as
the p re s e n c e of num erous o ffice s of the
s ta te ’s la rg e st banks.
In the relevant m arket a total of 23 insured
c o m m e rcia l ba n ks o p e ra te 84 b a n king of
fice s. CPB, h o ld in g only a 0.9 p e rce n t share
of th e m a rk e t’s IPC d e p o sits, ranks as one of
its sm alle st banks. CPB has fa iled to a ch ie ve
the d e p o s it gro w th enjo yed by m any of the
o ther ba n ks in this m arket d u rin g the 1970’s
and e xp e rie n ce d a loss in m arket share held
in the p e rio d from June, 1978 to June, 1979.
The m arket is d o m in a te d by o ffice s of m ost of
the s ta te ’s la rg e st ba n king o rg a n iza tio ns,
with tw o of C a lifo rn ia 's th re e la rg e st b a n ks
a g g re g a te ly h o ld in g 46.8 p e rce n t of the re
levant m a rke t’s IPC d e p o s it base. In such a
c o m p e titive environm ent, the p ro p o sa l is re
g a rd e d as having no sig n ific a n t e ffe ct on the
level of co n ce n tra tio n of b a n king reso u rce s
or u pon the stru ctu re of co m m e rcia l ban king .
The B oard of D ire cto rs is of the op in io n that
the p ro p o s e d tra n sa ctio n w o u ld not, in any
se ctio n of the country, su b sta n tia lly lessen
co m p e titio n , tend to cre a te a m on o p o ly or in
any o th er m anner be in restraint of trade.
Financial and Managerial Resources; Fu
ture Prospects. CPB has had a history of p oor
e a rn in g s and is p re se n tly re g a rd e d as un
d e rc a p ita liz e d . The b a n k has u n d e rg o n e
several c h a n g e s in senior m an a g e m en t in
rece n t years and has been una ble to e s ta b
lish itself as an e ffe ctive c o m p e tito r in its
m arket. R e p u b lic Bank has a history of sa tis
fa c to ry o p e ra tio n w ith re la tiv e ly h e a lth y
e a rn in g s and tim ely ca p ita l augm e n ta tion .
The p ro p o se d tra n sa ctio n w o u ld p ro vid e a
m eans of resolving the p ro b le m s fa cin g CPB,
w ith in th e fra m e w o rk o f a la rg e r w e lle sta b lish e d bank. The resultant b a n k w o uld
p o sse ss a sa tisfa cto ry level of fin a ncia l and
m an a g e ria l reso u rce s to o ve rco m e th e se d if
ficu ltie s and w ould a p p e a r to have fa vo ra b le
fu tu re p ro sp e cts.
Convenience and Needs of the Community
to be Served. The p ro p o s e d tra n s a c tio n
w o u ld have little m aterial im p a ct upon the
level and p ricin g of co m m e rcia l b a n king se r
vice s in the co m m u n ity se rve d by CPB, as an
exte nsive array of such se rvice s is rea d ily
a v a ila b le at o ffic e s o f r e la tiv e ly la rg e
sta te w id e ban king o rg a n iza tio n s w hich are
h e avily rep re se n te d in this area. The resultant
b ank is, how ever, a n tic ip a te d to co m p e te
m ore a g g re ssive ly than CPB has been c a p a
b le of in recent p e rio d s, p ro vid in g cu sto m e rs
in the local co m m u n ity w ith an a d d itio n a l
e ffe ctive alternate so u rce of such co m m e r
cial b a n king services. C o n sid e ra tio n s relat
ing to the c o n ve n ie n ce a nd needs of the
co m m u n ity to be se rve d are co n siste n t with
a p p ro va l of the a p p lica tio n .
A review of the a va ilab le inform ation, in
c lu d in g the C om m u n ity R einvestm ent A ct
S tatem ents of the p ro p o n e n ts, d isclo se d no
in co n siste n cie s w ith the p u rp o se s of the Act.
The resu lta n t b a n k is e x p e c te d to co n tin u e to
m eet the c re d it n eeds of its entire co m m u n ity,
c o n siste n t with the safe and so und o p e ra tio n
BANK ABSORPTIONS APPROVED BY THE CORPORATION
of the bank.
B ased on the fo re g o in g , the Board o f Di
recto rs has c o n c lu d e d th a t a p p ro va l of the
a p p lic a tio n is w a rra n te d .
Resources
(in thousands
of dollars)
The Morris County
Savings Bank
Banking Offices
in Operation
Before
After
687,793
12
13
12,563
1
M orristow n, N ew
Je rse y
to
purchase the assets and
assume the deposit liabilities
of
Bernards State Bank
B ern a rd sville , N ew
J e rse y
S um m ary rep o rt by A tto rn e y G eneral,
N o ve m b e r 30, 1979
We have review ed this p ro p o se d tra n sa c
tion and c o n c lu d e th a t it w o u ld not have a
s u b stan tia l c o m p e titiv e im pa ct.
B asis for C o rp o ra tio n A p p ro va l
N o ve m b e r 30, 1979
The M orris C ounty S avings Bank, M orris
tow n, N ew Je rse y (“ A p p lic a n t” ), an insured
m utual s a vin g s b a n k w ith total reso u rce s of
$ 6 8 7 ,7 9 3 ,0 0 0 a n d to ta l d e p o s its
of
$642,5 6 8 ,0 0 0, has a p p lie d , p u rsu a n t to S e c
tion 18(c) and o ther p ro visio n s of the Federal
D e p o sit In su ra n ce A ct, fo r the C o rp o ra tio n ’s
co n s e n t to p u rc h a s e the assets of and a s
sum e the lia b ility to pay d e p o sits m ade in
B e rn a rd s S tate Bank, B e rn a rd sville , New
J e rse y (“ State B a n k ” ), an insured State non
m e m b e r b a n k w ith to ta l r e s o u r c e s o f
$ 1 2 ,5 6 3 ,0 0 0 a n d to ta l IPC d e p o s its o f
$ 9,95 9 ,0 0 0 , and to e sta blish the sole o ffice of
B e rn a rd s State Bank as a b ra n ch .
Competition. A p p lic a n t, h e a d q u a rte re d in
the to w n of M orristow n (19 7 0 p o p u la tio n
17,662), o p e ra te s ten o ffice s in M orris C ounty
in northern New Je rse y and one o ffice each in
a d jo in in g Sussex and W arren Counties. State
Bank, e s ta b lis h e d in 1975, o p e ra te s its sole
o ffic e in the b o ro u g h of B e rn a rd sville (1970
p o p u la tio n 6 ,6 5 2 ) in n o rth e rn S o m e rs e t
C ounty a p p ro x im a te ly 8 road m iles so u th
w e st of M orristow n.
The c o m p e titiv e im p a c t of the p ro p o se d
tra n s a c tio n w o uld be m ost d ire c t and im
m ed ia te in the area w ithin an a p p ro xim a te 10
121
roa d -m ile radius of B e rn a rd sville w h ich in
c lu d e s the n o rth e rn p o rtio n of S o m e rse t
C ounty and the a d ja c e n t so uthern p ortion of
M orris County. This area, co n ta in in g an e sti
m ated 1970 p o p u la tio n in e xce ss of 100,000,
is ra p id ly d e v e lo p in g a nd p re se n tly u n d e r
g o in g a c h a n g e from a rural to a m ore su b u r
ban nature. The 1978 m ed ia n h o u sehold
b u yin g levels fo r M orris and S om erset C o u n
ties are sig n ifica n tly h ig h e r than the c o m p a r
a ble state fig u re of $20,037.
In the relevant area a total of ten co m m e r
cial ba n ks o p e ra te 31 o ffices. State Bank
ranks as the 7th la rg e st co m m e rcia l b a n k in
the m arket h o ld in g a m o d e st 3.0 p e rc e n t
share of the m a rke t’s IPC d e p o s it base.
C o m m e rcial b a n king in th is m arket is d o m i
na ted by the p re se n ce of affiliates of several
of the s ta te ’s la rg e st co m m e rcia l b a n king
org a n iza tio ns, w ith the m a rke t’s tw o la rg e st
banks, w h ich are a ffilia te d w ith such o rg a n i
zations, a g g re g a te ly co n tro llin g over 55 p e r
ce n t of the m a rke t’s co m m e rcia l b a n k IPC
d e p o sits . In such a c o m p e titive environm ent,
the p ro p o se d a cq u isitio n of State Bank is
re g a rd e d as having little im p a ct u p o n the
stru ctu re of co m m e rcia l ba n king .
A p p lic a n t o p e ra te s its head o ffice and four
b ra n ch o ffice s in relatively clo se p ro xim ity to
B e rn a rd sville with A p p lic a n t’s M endham O f
fic e (total d e p o sits $ 6 6 ,1 9 9 ,0 0 0 ) lo ca te d less
than 5 road m iles from State Bank. A p p lic a n t
and State Bank, b y virtu e of th e ir re sp e ctive
ch a rte rs and C o rp o ra te po w e rs, serve d iffe r
ent se g m e n ts of the b a n kin g p u b lic alth ou g h ,
to som e extent, they offer sim ilar s e rv ic e s .1
State Bank, how ever, h olds only 0.8 p e rce n t
of the IPC tim e and sa vin g s d e p o sits held by
o ffice s of co m m e rcia l ba n ks and th rift institu
tions in the m arket. The lim ited vo lu m e of
e xistin g c o m p e titio n b e tw e e n th e p ro p o
nents, and the p o ten tia l fo r in cre a se d co m
p e titio n to d e ve lop , how ever, do e s not rise to
a level of co m p e titive sig n ific a n c e that its
e lim in a tio n w o u ld s u b s ta n tia lly lessen c o m
petition.
The Board of D ire cto rs is of the o p in io n that
the p ro p o se d tra n sa ctio n w o uld not, in any
se ctio n of the co u n try, su b sta n tia lly lessen
co m p e titio n , te n d to cre a te a m on o p o ly or in
any o th er m anner be in restra in t of trade.
Financial and Managerial Resources; Fu
ture Prospects. State Bank, e sta b lish e d in
1975, e xp e rie n ce d initial sta rt-u p d iffic u ltie s
and has fa iled to e sta blish itself as an e ffe c
tive co m p e titive fo rc e in the m arket. A p p li
cant, w ith a histo ry of sa tisfa cto ry o peration,
1United
States v. Phillipsburg National Bank and Trust
Company, 399 U.S. 350 at 359-60 (1970).
FEDERAL DEPOSIT INSURANCE CORPORATION
122
p o sse sses the n e ce ssary fin a ncia l and m an
ag e ria l reso u rce s to su cce ssfu lly a d d re ss
such p ro b le m s w ithin the fram e w o rk of a
fin a n c ia lly sound thrift institution. The resul
tant institution is a n ticip a te d to have fa vo ra
ble fu tu re p ro s p e c ts .
Convenience and Needs of the Community
to be Served. As a d ire c t c o n se q u e n ce of this
p ro p o s a l, one c o m m e rcia l b a n king o ffice
w o uld be elim in a te d and re p la ce d by an
o ffic e of a relatively large m utual sa vin g s
bank. W hile A p p lic a n t w ould be a ble to p ro
v id e m ost of the p re se n t cu sto m e rs of State
Bank w ith equal or c o m p a ra b le services,
som e bu sin essm e n and m erch a n ts w ould
find it n e ce ssa ry to seek an a lte rn a te co m
m e rc ia l b a n k in g s o u rc e . In lig h t of th e
num erous o ffic e s of both sm all in d e p e n d e n t
co m m e rc ia l banks and of affiliates of rela
tive ly la rg e s ta te w ide co m m e rcial ban king
o rg a n iz a tio n s ava ilab le in the m arket, this
c o n s e q u e n c e , a ffe c tin g o n ly a sm all segem ent of the local ba n king p u b lic, is re g a rd e d
as having only a m odest im pa ct. C o n sid e ra
tions relating to the c o n ve n ie n ce and needs
of the c o m m u n ity to be served, on bala nce ,
are co n s is te n t w ith a p p ro va l of the a p p lic a
tion.
A review of a v a ilab le inform ation, in clu d in g
the C o m m u n ity R einvestm ent A ct S tatem ents
of both p ro p o n e n ts and other relevant m ate
rial, d is c lo s e d no in co n siste n cie s with the
p u rp o s e s of the A ct. The resultant institution
is e x p e c te d to c o n tinu e to m eet the c re d it
ne e ds of its entire com m unity, c o n siste n t with
its safe and sound operation.
B ased on the fo re g o in g inform ation, the
Board of D irectors has co n c lu d e d that a p
proval of the a p p lic a tio n is w arranted.
Resources
(in thousands
of dollars)
International Central
Bank
1,000
Basis for C o rpo ra tion A p p ro va l
D e ce m b e r 17, 1979
International Central Bank (“ IC B ” ), N ew
po rt B each, C alifornia, an insured State non
m em b e r b a n k with total a ssets of $1,000,000,
has a p p lie d , p u rsu a n t to S ection 18(c) and
oth er p ro visio n s of the Federal D ep o sit Insur
a n ce A ct, for the C o rp o ra tio n ’s p rio r co n se nt
to m erg e with International Trust C o rpo ra tion
(“ ITC” ), N e w p o rt B each, C alifornia, a non in
su re d fin a ncia l c o rp o ra tio n w ith total assets
of $436,195, u n d er the ch a rte r and title of
ICB. A p p lic a tio n has also been m ade for the
resultant ba n k to e xe rcise trust pow ers.
B o th e n titie s a re w h o lly -o w n e d s u b
sid ia rie s of CPI G roup, Inc., N e w p o rt Beach,
C alifornia, a su b sid ia ry of A u to m a tic Data
Pro ce ssin g. CPI G roup, Inc. is an in d e p e n
de n t a d m in istra to r of in d ivid u a l and p a rtn e r
sh ip “ K e o g h ” re tire m e n t p la n s, a nd a d
m inisters m any sm all to m edium co rp o ra te
plans, as well as in d ivid u a l retire m e n t plans.
The p ro p o se d tran sa ctio n , esse n tia lly an
internal reo rg a n iza tio n , w ould m erely c o n
so lid a te the a ffilia te d e n tities and fa cilita te
th e ir internal a cco u n tin g , and as such w ould
have no e ffe ct on existing or p otential co m
p e titio n in any relevant area. All fa cto rs re
q u ire d to be co n sid e re d p e rtin e n t to each
a p p lic a tio n have been fa vo ra b ly resolved.
On the basis of the fo re g o in g inform ation,
the Board of D irectors has c o n c lu d e d that
a p p ro va l of the a p p lic a tio n s is w arra n te d .
Banking Offices
in Operation
Before
1
After
Resources
(in thousands
of dollars)
1
Society Bank
N e w p o rt Beach,
C a lifornia
Banking Offices
in Operation
Before
After
65,051
10
13
18,088
3
C olu m b u s, O hio
to merge with
International Trust
Corporation
su b sid ia rie s of the sam e bank h o ld in g c o m
pany. As such, their p ro p o se d m erg e r is
e sse n tia lly a co rp o ra te reo rg a n iza tio n and
w o uld have no e ffe ct on co m p e titio n .
436
N e w p o rt Beach,
C a lifornia
to purchase the assets and
assume the deposit liabilities
of
The American Bank
of Central Ohio
H a rrisb u rg , O hio
EMERGENCY
Sum m ary rep o rt by A tto rn e y G eneral,
S e p te m b e r 19, 1979
The m e rg in g ba n ks are both w h o lly-o w n e d
S um m ary rep o rt by A tto rn ey G eneral,
no re p o rt rece ive d .
123
BANK ABSORPTIONS APPROVED BY THE CORPORATION
Basis fo r C o rp o ra tio n A p p ro va l
D e ce m b e r 20, 1979
S o cie ty Bank, C olu m b u s, Ohio, an insured
State n o n m e m b er b a n k w ith total resources
of $ 6 5 ,0 5 1 ,0 0 0 and total IPC d e p o sits of
$ 4 9,290,000, has a p p lie d , p u rsu a n t to S e c
tion 18(c) and o th er p ro visio n s of the Federal
D e p o sit In su ra n ce A ct, fo r the C o rp o ra tio n ’s
p rio r w ritten co n s e n t to p u rch a se ce rta in a s
sets of and a ssum e the lia b ility to pay d e
po sits m ad e in The A m e rica n Bank of Central
O hio, H a rrisb u rg , O hio (“ A m e rica n B a n k” ),
an insu re d State n o n m e m b er b ank with total
reso u rce s or $ 1 8 ,0 8 8 ,0 0 0 and total IPC d e
p o sits of $ 1 6,409,000. The th re e o ffice s of
A m e ric a n B a n k w ill b e e s ta b lis h e d as
b ra n c h e s of S o cie ty Bank.
The S u p e rin te n d e n t of Banks fo r the State
of O h io has a d vise d the C o rpo ra tion of the
e x is te n c e of an e m e rg e n cy and req u e ste d
e x p e d itio u s actio n p u rsu a n t to p a ra g ra p h 6
o f S ection 18(c) o f the Federal D e p o sit Insur
a n ce A ct. The p u b lic a tio n req u ire d by the
Bank M erg e r A c t has been c o m p le te d .
Competition. S o cie ty B ank o p e ra te s 10 of
fic e s in Franklin C ounty, w h ich is lo ca ted in
c e n tra l O hio. S o cie ty B ank is a ffilia te d with
S o cie ty C o rpo ra tion , C leveland, O hio, the
s ta te ’s fou rth la rg e st b a n king org a n iza tio n. It
co n tro ls 13 ba n ks w h o se total co m m e rcial
b a n k d e p o s its at June 30, 1978 a g g re g a te d
$ 1 ,8 0 9 ,5 1 1 ,0 0 0 — 4 .9 p e rce n t of the S ta te ’s
total d e p o sits. A m e rica n B ank o p e ra te s three
o ffic e s in Franklin County, its m ain o ffice in
H a rrisb u rg , one b ra n c h in G rove City, and
one b ra n ch in the w e ste rn portio n of the city
of C o lum bus.
The area m ost relevant to co n sid e ra tio n of
a c o m p e titiv e an a lysis in this ca se is c o n s id
e re d to be Franklin C o u n ty a n d the a d jo in in g
p o rtio n s of M ad iso n and P ickaw ay C ounties
that are w ithin a p p ro x im a te ly ten road m iles
of H a rris b u rg . This relevant m arket, m ainly an
u rb a n iz e d area c o n ta in in g th e c ity o f C o lu m
bus (1970 p o p u la tio n 539,677), has an e sti
m ated 1970 p o p ula tio n of 843,828. The m ar
ket is s e rve d by 13 ba n ks o p e ra tin g 161
o ffices, and six of the s ta te ’s ten largest
b a n king o rg a n iz a tio n s are rep re se n te d there.
Of
th e
IP C
d e p o s its
a g g r e g a tin g
$ 3 ,00 7 ,4 8 2 ,00 0 held by area o ffice s of such
b a n ks at June 30, 1979, S o cie ty Bank held
1.6 p e rc e n t, the fifth la rg e st share; A m erican
B ank held 0.5 p e rce n t, the ninth larg e st
share.
F ollow ing co n su m m a tion of the p ro p o sa l,
S o cie ty B a n k ’s share w o u ld in cre a se only to
2.1 p e rc e n t and w o u ld rem ain as the fifth
la rg e s t b a n k in the m arket. A ny co m p e titio n
b e tw e en S o cie ty Bank and A m e rica n Bank
a p p e a rs to be m inim al in vie w of the size of
the other co m p e tito rs in the m arket and the
p re ca rio u s fin a ncia l co n d itio n of A m e rica n
Bank.
U n der these circu m sta n ce s, the B oard of
D ire cto rs has c o n c lu d e d th a t the p ro p o se d
tra n sa ctio n w o uld not, in any se ctio n of the
co u n try, s u b s ta n tia lly le sse n c o m p e titio n ,
te n d to crea te a m o n o p o ly or in any other
m anner be in restraint of trad e .
Financial and Managerial Resources; Fu
ture Prospects. F in a n c ia l r e s o u rc e s of
A m e rica n Bank are in a d e q u a te and its future
v ia b ility is in g ra ve d o u bt. S o cie ty Bank has a
so und asset stru ctu re and sa tisfa cto ry m an
a g e m e n t. With the c o n te m p la te d a d d itio n to
its ca p ita l a cco u n ts, p ro s p e c ts of the resul
ta n t ba n k are c o n sid e re d fa vo ra b le .
Convenience and Needs of the Community
to be Served. C on su m m a tion of the p roposal
w o u ld p re c lu d e any in te rru p tio n of ba n king
se rvice s for the c lie n te le of A m e rica n Bank.
T hese in d ivid u a ls sh ould also b e n efit from
the resulting larger, so u n d institution.
A review of a va ila b le inform ation, in clu d in g
the C om m unity R einvestm ent A c t S tatem ents
of the p ro p o n e n ts and o th er relevant m ate
rial, d isclo se d no in co n siste n cie s w ith the
p u rp o se s of the A ct. The resultant b a n k is
e x p e c te d to co n tin u e to m eet the c re d it
n e e ds of its entire co m m u n ity, co n siste n t with
the safe and sound o p e ra tio n of the bank.
B ased on the fo re g o in g , the Board of Di
recto rs has c o n c lu d e d th a t a p p ro va l of the
a p p lica tio n is w a rra n te d .
Resources
(in thousands
of dollars)
American Banking
Company
Banking Offices
in Operation
Before
17,990
1
6,780
1
After
2
Moultrie, G eorgia
to purchase the assets and
assume the deposit liabilities
of
Toney Brothers Bank
Doerun, G eorgia
A p p ro ve d u n d er e m e rg e n cy p rovisions.
No rep o rt re q u e ste d from the A tto rn e y G en
eral.
Basis fo r C o rp o ra tio n A p p ro va l
Ja n u ary 6, 1979
A m e ric a n B a n kin g C o m p a n y , M o u ltrie ,
G e o rg ia , an insured State n o n m e m b er bank
w ith total re so u rce s of $ 1 7 ,9 9 0 ,0 0 0 , has
124
FEDERAL DEPOSIT INSURANCE CORPORATION
a p p lie d p u rsu a n t to Section 18(c) of the F ed
eral D e p o sit Insurance A ct, for the C o rp o ra
tio n ’s c o n s e n t to p u rc h a se the a ssets of and
a ssu m e the lia b ility to pay d e p o sits m ade in
T oney Brothers Bank, Doerun, G eorgia, an
in su re d State n o n m e m b er b a n k with total
re s o u rc e s of $6,78 0 ,0 0 0 . In c id e n t to the
tra n sa ctio n , the sole o ffice of T oney Brothers
B ank w o u ld b e c o m e a b ra n ch of A m e rica n
B anking C om pany.
A s of Ja n u ary 5, 1979, Toney Brothers
B a n k h a d d e p o s its o f a p p r o x im a te ly
$ 5 ,8 0 0 ,0 0 0 and o p e ra te d one o ffice. On
J a n u a ry 5, 1979, the Federal D e p o sit Insur
a n ce C o rpo ra tion w as a p p o in te d as R eceiver
of T oney Brothers Bank.
The B oard of D ire cto rs fin d s th a t the failure
of T oney B rothers Bank req u ire s it to act
im m e d ia te ly and thus w aives p u b lica tio n of
no tice, d is p e n s e s with the so licita tio n of
c o m p e titiv e rep o rts from other a g e n cie s, and
au tho rize s the tra n sa ctio n to be c o n s u m
m ated im m ediately.
Resources
(in thousands
of dollars)
Independence Bank
of Chicago
73,253
Illinois, an insured State n o n m e m b er ba n k
w ith to ta l re s o u rc e s o f $ 8 ,6 1 0 ,0 0 0 , a n d
G a te w ay N ational Bank of C h ica g o, C h ica g o,
Illinois, with total reso u rce s of $23,110,000.
In cid e n t to the tran sa ctio n , the sole o ffice of
G u a ra n ty Bank & Trust C o m pa n y and the
sole o ffic e of G a te w ay N ational B ank of
C h ic a g o w o u ld b e co m e fa cilitie s of In d e p e n
d e n ce Bank of C h ica g o. A p p lic a tio n is also
m ade for In d e p e n d e n c e Bank of C h ica g o to
e xe rcise trust pow ers.
On July 14, 1979, the Federal D eposit
In su ra n ce C o rpo ra tion w as a p p o in te d as Re
ce ive r of G uaranty Bank & Trust C o m pa n y
(w hose d e p o sits w ere e stim a te d at a p p ro x i
m ately $7 ,40 0 ,0 0 0 and o p e ra te d one office)
a n d G a te w a y N a tio n al B a n k of C h ic a g o
(w hose d e p o sits w ere estim a te d at a p p ro x i
m ately $9,10 0 ,0 0 0 and o p e ra te d one office).
The Board of D irectors fin d s that the failure
of G u a ra n ty Bank & Trust C o m pa n y and
G a te w ay National Bank of C h ica g o req u ire s it
to a ct im m e d ia tely and thus w aives p u b lic a
tion of n otice, d isp e n se s with the solicitatio n
of c o m p e titive rep o rts from other a g e ncie s,
and au tho rize s the tra n sa ctio n s to be c o n
su m m a te d im m ediately.
Banking Offices
in Operation
Before
2
After
4
Resources
(in thousands
of dollars)
C h ica g o, Illinois
to purchase the assets and
assume the deposit liabilities
of
Guaranty Bank &
Trust Company
American Bank
Houston, Texas
8,610
1
and
23,110
1
C h ica g o, Illinois
A p p ro v e d u n d er e m e rg e n cy p rovisions.
No re p o rt re q u e ste d from the A tto rn ey G e n
eral.
Basis fo r C o rpo ra tion A p p ro va l
July 14, 1979
In d e p e n d e n c e Bank of C h ica g o, C h ica g o,
Illinois, an insured State n o n m e m b er bank
w ith total re s o u rc e s of $ 7 3 ,2 5 3 ,0 0 0 , has
a p p lie d p u rsu a n t to S ection 18(c) of the F ed
eral D e p o sit In su ra n ce A ct, for the C o rp o ra
tio n ’s co n s e n t to p u rc h a se the a ssets of and
a ssu m e the lia b ility to p a y d e p o sits m ade in
G u a ra n ty Bank & Trust C om pany, C h ica g o,
Before
0
After
1
(in organization)
to purchase the assets and
assume the deposit
liabilities of
C h ica g o , Illinois
Gateway National
Bank of Chicago
-
Banking Offices
in Operation
American National
Bank
11,695
1
Houston, Texas
A p p ro v e d u n d er e m e rg e n cy provisions.
No rep o rt req u e ste d from the A tto rn ey G en
eral.
Dasis for C o rp o ra tio n A p p ro va l
July 12, 1979
A m e rica n Bank, H ouston, Texas, a newly
c h a rte r e d S ta te n o n m e m b e r b a n k , has
a p p lie d p u rsu a n t to S ections 5 and 18(c) of
the Federal D e p o sit n su ra n ce Act, for F ed
eral d e p o s it in su ra n ce and for the C o rp o ra
tio n ’s co n se n t to p u rch a se the assets of and
a ssum e the lia b ility to p a y d e p o sits m ade in
A m e rica n N ational Bank, H ouston, T exas
(total reso u rce s of $ 1 1 ,695,000).
BANK ABSORPTIONS APPROVED BY THE CORPORATION
On O c to b e r 12, 1979, the Federal D e p o sit
In su ra n ce C o rpo ra tion w as a p p o in te d as Re
c e iv e r of A m e rica n N ational Bank (w hose
d e p o s its w ere a p p ro x im a te ly $ 9 ,69 0 ,0 0 0 and
o p e ra te d one office).
The B oard of D ire cto rs fin d s that the fa ilure
of A m e rica n National Bank req u ire s it to act
im m e d ia te ly and thus w aives p u b lic a tio n of
n o tice, d is p e n s e s w ith the s o licita tio n of
c o m p e titiv e rep o rts from other a g e n cie s, and
a u tho rize s the tra n sa ctio n to be co n su m
m ated im m ediately.
M erg e r tra n s a c tio n s w ere involved in the
a c q u is itio n s of ba n ks by h o ld in g co m p a n ie s
in the fo llow in g a p p ro v a ls in 1979. In each
in sta nce , the A tto rn ey G e n e ra l’s rep o rt stated
th a t the p ro p o s e d tra n s a ctio n w ould have no
e ffe c t on c o m p e titio n . The C o rp o ra tio n ’s
b asis for a p p ro va l in each ca se stated th a t
the p ro p o s e d tra n s a c tio n w ould not, per se,
c h a n g e the co m p e titiv e stru ctu re of ban king ,
nor a ffe c t th e b a n k in g se rv ic e s th a t the
(o p e ra tin g ) b a n k has p ro v id e d in the past,
a nd th a t all o ther fa c to rs req u ire d to be
c o n s id e re d p e rtin e n t to the a p p lic a tio n w ere
fa v o ra b ly resolved.
Lee County Bank, O pelika, A la b a m a, in
o rg a n iz a tio n ; o ffic e s : 0; re s o u rc e s : 100
($000); to p u rc h a s e the assets and assum e
the d e p o s it lia b ilitie s of and c h a n g e title to
T h e B a n k o f E a s t A la b a m a , O p e lik a ,
A la b a m a ; o ffic e s : 3; re s o u rc e s : 3 9 ,4 4 2
($000). A p p ro v e d : Ja n u ary 25.
The F. B. G. Bank of Marion, M arion, Ohio,
in o rg a n iz a tio n ; o ffic e s : 0; re s o u rc e s : 0
($000); to m erg e with and c h a n g e title to The
M arion C ounty Bank, M arion, Ohio; o ffice s 4;
resources: 56,636 ($000). A p p ro ve d : F eb
ruary 2.
125
Trust Company of Gwinnett County, Lawrenceville, G eorgia, in o rg a n iza tio n; o ffices:
0; resources: 700 ($000); to m erg e with and
c h a n g e title to G w in n e tt C o m m e rcial Bank,
L a w renceville, G eorgia; o ffices: 2 resources:
2 2,396 ($000). A p p ro ve d : A pril 23.
Security Bank and Trust Company, A lbany,
G eorgia; offices: 2; resources: 3 1 ,160 ($000);
to m erg e with CB&T, Inc., C olum bus, G eor
gia, in org a n iza tio n; offices: 0; resources: 1
($000). A p p ro ve d : A pril 24.
Alaska Pacific Bank, A n ch o ra g e , Alaska;
o ffic e s : 2; re s o u rc e s : 7 0 ,2 4 8 ($0 0 0 ); to
m erg e with A la ska Interim Bank, A n ch o ra g e ,
A laska, in o rg a n iza tio n; offices; 0; resources:
30 ($000). A p p ro ve d : M ay 1.
First Alabama Bank of Conecuh County,
E vergreen, A la b a m a, in o rg a n iza tio n; offices:
0; resources; 50 ($000); to m erg e with The
C o n ecuh C ounty Bank, Evergreen, A labam a;
offices: 1; resources: 17,928 ($000). A p
proved: M ay 15.
Central Michigan Bank and Trust, Big
R a p id s, M ic h ig a n ; o ffic e s : 9, re s o u rc e s :
5 7 ,2 2 7 ($000); to c o n s o lid a te w ith C M B
Bank, Big R apids, M ichig a n , in org a n iza tio n;
offices: 0; resources: 120 ($000). A p p ro ve d :
M ay 18.
CS Bank, G a llipolis, Ohio, in org a n iza tio n;
offices: 0; resources: 312 ($000); to p u rch a se
the a ssets and assum e the d e p o sit lia b ilitie s
of and c h a n g e title to The C o m m e rcial and
Savings Bank, G allipo lis, Ohio; offices: 3;
resources; 35,562 ($000). A p p ro ve d : M ay
25.
Gold Country Bank, Grass V alley. C a lifo rn ia ;
o ffic e s : 5; re so u rce s 2 2 ,1 4 7 ($ 0 0 0 ); to
m erge w ith IBC In ve stm e n t C o rp o ra tio n , San
Rafael, C a lifo rn ia , in o rg a n iz a tio n ; o ffic e s : 0;
resources: 1 0 ($ 0 0 0 ). A p p ro ve d : Ju n e 29.
G e o rg ia ; o ffic e s : 6; re s o u rc e s : 1 0 2 ,7 6 2
($000); to m erg e with G e o rg ia Interim C om
pany, M acon, G eorgia, in o rg anization; of
fice s: 0; reso u rce s: 0 ($000). A p p ro ve d :
F eb ru a ry 23.
Peoples Bank of South Jersey, Clayton,
New Jersey, in o rg a n iza tio n; offices: 0; re
sources: 860 ($000); to p u rch a se the assets
and assum e the d e p o s it lia b ilitie s of Peoples
Bank of South Jersey, Clayton, New Jersey;
offices: 7; resources: 31,654 ($000). A p
proved: July 20.
New Riverside Bank, Fort W orth, Texas, in
o rg a n iz a tio n ; o ffic e s : 0; re s o u rc e s : 2 0 0
($000); to m erg e w ith and c h a n g e title to
R iverside State Bank, Forth W orth, Texas;
offices: 1; resources: 84,032 ($000). A p
p roved: M arch 29.
South Street State Bank, P asadena, Texas,
in orga n iza tio n; o ffices: O; resources: 200
($000); to m erg e with and c h a n g e title to San
Ja cin to State Bank, P asadena, Texas; of
fices: 1; resources: 8 1 ,567 ($000). A p p ro ve d :
A u g u st 13.
Collegiate State Bank of Fort Worth, Forth
W orth, Texas, in orga n iza tio n; offices: 0; re
s o u rce s: 200 ($000); to m e rg e w ith and
c h a n g e title to U niversity Bank, Forth W orth,
Texas; offices: 1; resources: 89,214 ($000).
A p p ro v e d : A pril 12.
Texas A & M Bank, C o lle g e Station, Texas,
in org a n iza tio n; offices: 0; resources: 200
($000); to m erg e with a nd c h a n g e title to
Bank of A & M, C o lle g e Station, Texas; o f
fices: 1; resources: 52,410 ($000). A p p ro ve d :
A u g u st 24.
Georgia Bank and Trust Company, M acon,
126
FEDERAL DEPOSIT INSURANCE CORPORATION
H. S. Bank, S ch a u m bu rg , Illinois, in o rg a n i
zation; offices: 0; resources: 0 ($000); to
m erg e w ith and ch a n g e title to S u b u rba n
Bank of H o ffm a n -S ch a u m b u rg , S ch a u m bu rg ,
Illinois; o ffices: 2; resources: 19,106 ($000).
A p p ro v e d : S e p te m b e r 10.
The Olivet State Bank, O livet, M ichigan;
offices: 1; resources: 7,033 ($000); to m erg e
with N ew State Bank of O livet, O livet, M ich i
gan, in o rg a n iza tio n; o ffices: 0; resources:
120 ($000). A p p ro v e d : S e p te m b e r 13.
Summit Bank and Trust Company of Fort
Wayne, Fort W ayne, Indiana, in o rg a n iza tio n;
offices: 0; resources: 0 ($000); to m erg e with
and c h a n g e title to Ind ian a Bank and T rust
C o m p a n y of Fort W ayne, Fort W ayne, In
diana; offices: 12; resources: 276,044 ($000).
A p p ro v e d : S e p te m b e r 28.
New Addision State Bank, A d d isio n , Texas,
in o rg a n iz a tio n ; o ffices: 0; reso u rce s: 50
($000); to m erg e with and ch a n g e title to
A d d is o n State Bank, A d d iso n , Texas; offices:
1; resources: 2 6 ,929 ($000). A p p ro ve d : O c
to b e r 23.
resources: 200 ($000). A p p ro ve d : N o ve m b e r
16.
The Bank of Flampton, H am pton, G eorgia;
offices: 1; resources: 7,281 ($000); to m erge
with Inte rim -H a m p to n, Inc., H am pton, G e o r
gia, in org a n iza tio n; offices: 0; resources: 1
($000). A p p ro ve d : N o ve m b e r 20.
Valley Central Bank, R ichfield, Utah; o f
fices: 1, resources: 15,697 ($000); to m erg e
with VC Bank C o rpo ra tion , R ichfield, Utah, in
o rg a n iza tio n; offices: 0; resources: 0 ($000).
A p p ro v e d : N o ve m b e r 21.
First Railroad Bank of Dalton, D alton,
G e o rg ia , in o rg a n iz a tio n ; o ffic e s : 0; re
so u rce s: 500 ($000); to m e rg e w ith and
ch a n g e title to The Bank of Dalton, Dalton,
G eorgia; offices: 3; resources: 29 ,09 9 ($000).
A p p ro ve d : N o ve m b e r 21.
First Railroad Bank of Cobb County,
M arietta, G eorgia, in o rg a n iza tio n; offices: 0;
resources: 500 ($000); to m erg e with and
c h a n g e title to The C o m m e rcial Bank of C o b b
C ounty, M arietta, G eo rg ia ; o ffices: 7; re
s o u rc e s :
4 8 ,6 3 6
($ 0 0 0 ).
A p p ro v e d :
N o ve m b e r 21.
New South Central Bank, H utchins, Texas,
in o rg a n iz a tio n ; o ffices: 0; reso u rce s: 50
($000); to m erg e with and ch a n g e title to
South C entral Bank, H utchins, Texas; offices:
1; resources: 9,781 ($000). A p p ro ve d : O c
to b e r 23.
The Bank of Duluth, D uluth, G eorgia; of
fices: 1; resources: 26,727 ($000); to m erg e
with D uC orp, Inc., A tlanta, G eorgia, in o r
g anizatio n ; o ffices: 0; resources: 1 ($000).
A p p ro ve d : N o ve m b e r 29.
Hood River County Bank, H ood River, O re
gon; offices: 1; resources: 6,501 ($000); to
m erg e w ith Hood River C ounty Interim Bank,
H ood River, O regon, in o rg anization; o ffices:
0; resources: 10 ($000). A p p ro ve d : O cto b e r
29.
Mercantile Bank of Houston, H o u sto n,
Texas; offices: 1; resources: 90,060 ($000);
to m erg e with and c h a n g e title to A llie d
M erca n tile Bank, H ouston, Texas, in o rg a n i
zation; offices: 0; resources: 200 ($000). A p
pro ve d : N o ve m b e r 30.
New First State Bank of Taft, Taft, Texas, in
org a n iza tio n; offices: 0; resources: 50 ($000);
to m erg e w ith and ch a n g e title to The First
State Bank of Taft, Taft, Texas; offices: 1;
resources: 10,286 ($000). A p p ro ve d : O c
to b e r 31.
Allied Cypress Bank, Houston, Texas, in
o rg a n iz a tio n ; o ffic e s : 0; re s o u rc e s : 100
($000); to m erg e with C yp ress Bank, H ous
ton, Texas; o ffice s: 1; reso u rce s: 36 ,14 0
($000). A p p ro ve d : D e ce m b e r 7.
Citizens Bank and Trust Company, Clare,
M ic h ig a n ; o ffic e s : 7; re s o u rc e s : 7 2 ,7 3 8
($000); to m erg e w ith C BC Bank, Clare,
M ic h ig a n , in o rg a n iz a tio n ; o ffice s: 0; re
so u rce s: 120 ($000). A p p ro ve d ; N ove m b e r
16.
Commercial State Bank, H ouston, Texas;
o ffic e s : 1; re s o u rc e s : 4 0 ,8 0 3 ($0 0 0 ); to
m erg e w ith New C o m m e rcial State Bank,
Houston, Texas, in org a n iza tio n; offices: 0;
Texas Bank and Trust Company, J a ckso n
ville, Texas; offices: 1; resources: 50,979
($000); to m erg e with and c h a n g e title to
A llie d T exas Bank, Ja ckso n ville , Texas, in
o rg a n iza tio n; offices: 0; resources: 75 ($000).
A p p ro ve d : D e ce m b e r 14.
Port City State Bank, Houston, Texas; of
fices: 1; resources: 54,448 ($000); to m erge
w ith N ew Port C ity Bank, H ouston, Texas, in
o rg a n iz a tio n ; o ffic e s : 0; re s o u rc e s : 2 0 0
($000). A p p ro ve d : D e ce m b e r 21.
127
BANK ABSORPTION DENIED BY THE CORPORATION
Resources
(in thousands
of dollars)
The Pennsylvania
Bank and Trust
Company
Banking Offices
in Operation
Before
After
470,252
24
25
7,962
1
W arren,
Pennsylvania
to merge with
The Farmers National
Bank of
Conneautville
C onneautville,
Pennsylvania
Sum m ary rep o rt by A tto rn ey G eneral,
M ay 1, 1979
O verall, in our view , the p ro p o se d tra n s a c
tion w o u ld not have a sig n ific a n tly a d ve rse
c o m p e titiv e effe ct.
Basis for C o rp o ra tio n Denial
July 30, 1979
The P ennsylvania Bank and Trust C om
pany, W arren, P ennsylvania (“ Penn B a n k” ),
an insu re d State n o n m e m b er bank with total
reso u rce s of $ 4 7 0,2 5 2 ,0 0 0 and total IPC d e
p o sits of $394,3 8 4 ,0 0 0, has a p p lie d , p u r
suant to S ection 18(c) and oth er pro visio n s of
the Federal D e p o sit In su ra n ce A ct, for the
C o rp o ra tio n ’s p rio r co n se n t to m erge with
The F arm ers National Bank of C onneautville,
C o n n e a u tv ille , P e n n s y lv a n ia ( “ F a rm e rs ” ),
w ith total reso u rce s of $ 7 ,96 2 ,0 0 0 and total
IPC d e p o s its of $6,971,000. The banks w ould
m e rg e u n d e r the ch a rte r and title of Penn
B ank and, in c id e n t to the m erger, the sole
o ffic e of Farm ers w o u ld b e co m e a b ra n ch of
the resu ltin g bank, in cre a sin g the n u m ber of
its o ffic e s to 25.
Penn Bank is the 24th la rg e st co m m e rcial
b a n k in P ennsylvania. Its m ain o ffice is lo
c a te d in W a rre n C o u n ty a n d its le g a l
b ra n c h in g area co n sists of W arren C ounty
and the six co n tig u o u s counties. Its 24 offices
are lo c a te d in Erie (2), C ra w ford (6), V e nango
(4), Elk (4), M cK ean (3), and W arren (5)
C ou n ties w ith Forest b e in g the only co u n ty in
Penn B a n k ’s legal b ra n ch in g area in w h ich it
is not c u rre n tly re p re se n te d . Penn Bank has
the la rg e s t share of c o m m e rcia l bank d e
p o sits (20.5 p e rce n t) in the se ve n -co u n ty
area. F arm ers o p e ra te s its sole o ffice in the
n o rth w e ste rn se ctio n of C ra w ford County. It is
the sm alle st b a n k in the co u n ty and one of the
s m alle st ba n ks in the state.
Competition. Penn Bank o p e ra te s in se v
eral m arkets s p re a d th ro u g h o u t its legal
b ra n c h in g a re a , p ro v id in g c o n v e n ie n tly
a va ila b le ban king se rvice s to a m ajority of the
resid e n ts of the area. In the C ra w ford C ounty
area Penn Bank has six o ffices, and th re e are
lo ca te d w ithin 15 road m iles of Farm ers. In
a d d itio n to these th re e o ffices, Penn Bank
has tw o b ra n ch e s in M ea d ville w hich is a p
p ro xim a te ly 16 road m iles from Farm ers. Its
clo se st o ffice to F arm ers is the L inesville
B ranch, a p p ro xim a te ly 8 road m iles so u th
w est. This is also the clo se st co m m e rcia l
b a n king o ffice to Farm ers.
The e ffe cts of the p ro p o s e d m erg e r w ould
be m ost im m e d ia te and d ire c t w ithin the
p rim a ry tra d e area of Farm ers, w h ich c o n
sists of that area w ithin a p p ro xim a te ly 15
road m iles of C onn e au tville and e xte n d e d in
the so u the a st to in clu d e the city of M eadville.
The area is la rg e ly a g ricu ltu ra l with in dustrial
a ctivitie s c o n ce n tra te d in M ea d ville and its
im m e d ia te s u rro u n d in g area. M ea d ville is the
c o u n ty se a t a n d s e rve s as th e p rim a ry
e co n o m ic ce n te r for the area. It is easily
a c c e s s ib le by tw o m ajor state h ig h w ays and
In te rsta te Route 79, a m ajo r n o rth -so u th
highw ay. The 1970 p o p u la tio n of the area
w as 47,949, w ith M ea d ville and the sur
rou n d in g to w n sh ip s a c c o u n tin g for over 50
p e rc e n t of the p o p ula tio n .
The area is se rve d b y 15 o ffice s of six
c o m m e rcia l banks, in clu d in g five o ffice of
Penn Bank. Farm ers is the sm alle st b a n k in
the area, with 3.2 p e rc e n t of co m m e rcia l
ba n k IPC d e p o sits, but Penn Bank is the
d o m in a n t b a n k w ith 41.4 p e rc e n t of the
a re a ’s co m m e rcial b a n k IPC d e p o sits. There
are no interve n in g o ffice s of other co m m e r
cial banks b etw een Farm ers and som e of the
b ra n ch e s of Penn Bank, in clu d in g the L ines
ville o ffice (8 m iles) and the S aegertow n
o ffice (12 miles).
Therefore, the p ro p o se d tra n sa ctio n w ould
not only elim inate existing co m p e titio n , but it
w o uld serve to fu rth e r co n ce n tra te ba n king
reso u rce s in the d o m in a n t b a n k in the area,
and it w ould elim inate a co n ve n ie n t ba n king
alte rn a tive for m any of the area residents.
T here a p p e a rs to be no sig n ifica n t p o te n
tial for c o m p e titio n to in cre a se betw e en the
p ro p o n e n ts th ro u g h fu tu re de novo b ra n c h
ing. Farm ers does not a p p e a r to have the
fin a n cia l or m an a g e ria l reso u rce s to fa cilita te
such exp a nsio n , and the sp a rse p o p u la tio n
of the are a im m e d ia tely s u rro u n d in g Farm ers
d o e s not m ake it a ve ry a ttra ctive lo ca tio n for
de novo b ra n ch in g . In cre a se d c o m p e titio n
betw e en the tw o ba n ks co u ld o ccu r, how
128
FEDERAL DEPOSIT INSURANCE CORPORATION
ever, if Farm ers w ere to be a cq u ire d by a
ba n k o ther than Penn Bank. Such an a c q u is i
tion c o u ld result in the eventual le ssening of
P enn B a n k ’s m a rk e t d o m in a tio n . U n d e r
P ennsylvania ba n king laws, there are 17
c o m m e rc ia l banks that co u ld m erg e with
Farm ers. They ran g e in d e p o sit size from
$ 6 ,90 0 ,0 0 0 to $4 2 1,8 6 9 ,0 0 0 (Penn Bank).
O nly five of these banks are cu rre n tly in
d ire c t c o m p e titio n w ith Farm ers. Of the banks
not in d ire c t co m p e titio n , there are five banks
with d e p o s its in e xce ss of $150,000,000.
T herefore, there a p p e a rs to be a su fficien t
n u m b e r of p o te n tia l m e rg e r p a rtn e rs fo r
Farm ers, any one of w hich w o u ld have a less
a n tic o m p e titiv e e ffe ct than a m e rg e r with
Penn Bank.
In vie w of the above, it a p p e a rs to the
C o rpo ra tion that the p ro p o se d m erg e r w ould
(i) elim inate sig n ific a n t e xisting co m p e titio n ,
(ii) in cre a se the d o m in a n t b a n k ’s share of the
m arket from 4 1.4 p e rc e n t to 4 4 .6 p e rce n t, (iii)
re d u c e the n u m b e r of b a n king a lte rn a tive s in
the relevant area from six to five, and (iv)
fo re clo s e the p o s s ib ility that sig n ifica n t new
c o m p e titio n c o u ld arise by e lim in a tin g a
m e rg e r p a rtn e r fo r a b ank not re p re se n te d in
the m arket.
Financial and Managerial Resources; Fu
ture Prospects. Both banks have sa tisfa cto ry
fin a ncia l and m anagerial reso u rce s, and both
have sa tisfa cto ry p ro s p e c ts fo r the future.
The sam e w o u ld be true of the resulting bank
if the m e rg e r w ere a p p ro ve d . The b a n king
fa cto rs, a c c o rd in g ly , are c o n sid e re d to w e ig h
neither in fa vo r of nor a g a in st the m erg e r
pro p o sa l.
Convenience and Needs of the Community
to be Served. Since Penn B ank is a lre a d y
re p re se n te d in the m arket, there w ould be no
c h a n g e in se rvice s o ffe re d for the m arket as
a w hole. C o n sid era tio ns of c o n ve n ie n ce and
ne e ds of the co m m u n ity are neutral and
w e ig h neither in favor of nor a g a in st the
p ro p o se d m erger.
A review of ava ilab le in form ation, in clu d in g
the C om m unity R einvestm ent A c t S tatem ents
of the p ro p o n e n ts and o th er relevant m ate
rial, d is c lo s e d no in co n siste n cie s with the
p u rp o se s of the act.
S ince the a n tico m p e titive e ffe cts of the
p ro p o se d m erg e r are not, in the o p in io n of
the B oard of D irectors, cle a rly o u tw e ig h e d by
other fa cto rs, the C o rpo ra tion has c o n c lu d e d
that the p ro p o s e d m erg e r of Penn B ank and
Farm ers should be den ied .
REGULATIONS AND LEGISLATION
PART FOUR
131
LEGISLATION—1979
Financial Privacy Notification Re
peal. Public Law96-3, approved March
7,1 979, repealed the notice require*
ment contained under section 1 104(d)
of the Right to Financial Privacy Act
which would have become effective
on March 10, 1979, and would have
required all creditor and financial
institutions to notify their cus
tomers of the rights under this Act.
Insurance of Foreign Bank Branches.
Public Law96-64, approved September
14, 1 979 , amended the In te r
national Banking Act of 1978 (Public
Law95-369)to permit existing branches
of foreign banks which have applied
for Federal deposit insurance by Sep
tember 1 7, 1979, and have not had
their application denied, to continue
deposit retail operations until Jan
uary 31,1 980.
Automatic Transfer Accounts-State
Usury Laws. Public Law 96-161,
approved December 28, 1979, ex
tended for 90 days (until March 31,
1980) the authority for banks to
offer automatic transfers from sav
ings to checking accounts, for sav
ings and loan associations to oper
ate remote service units, and for
credit unions to offer share draft
accounts. This legislation also ex
empted agricultural and business
loans of $25,000 or more from State
usury limitations. This exemption ex
pires on March 31, 1980 for those
States that have statutory usury pro
visions and on July 1, 1981 for
those States having constitutional
usury restrictions. Any State could
reinstate its own usury ceilings by
taking affirmative action to that ef
fect. Finally, Public Law96-161 auth
orized interest-bearing negotiable order
of withdrawal (NOW) accounts for
the State of New Jersey.
RULES AND REGULATIONS-1979
Change in Bank Control (Part 303)
On January 24, 1979, the FDIC
adopted revisions to sections 303.1 1
and 303.15 of its regulations to
implement the Change in Bank Con
trol Act of 1978. The Act requires
any person seeking to acquire con
trol of an insured bank to file 60
days' advance notice with the appro
priate Federal banking agency. In
addition, the Act describes the fac
tors that the FDIC and other Federal
banking agencies are to consider in
determining whether a transaction
covered by the Act should be dis
approved.
Disclosure of Trust Department As
set Reports (Part 309). On October
22, 1979, the FDIC approved an
amendment to Part 309 of its regu
lations to permit routine public dis
closure on a request basis of Trust
Department Annual Reports cur
rently filed with the FDIC by insured
State nonmember banks.
Interest Rate Regulations (Part 329).
Effective March 1 5, 1979, the FDIC
amended Part 329 of its regulations
to prohibitthe compounding of inter
est by insured State nonmember
banks on money market certificates
of $10,000 or more. The ban ap
plies to certificates with maturities
of 26 weeks that have their interest
rate ceiling keyed to the average
auction discount rate on the most
recently issued 6-month UnitedStates Treasury bills. The amended
Part 329 also requires that adver
tisements by insured nonmember
banks offering such certificates con
tain a statement that Federal reg
ulations prohibit compounding of inter
est during the term of deposit.
In addition, the amendment re
duced the interest rate differential
normally available to mutual savings
banks on these instruments. This
reduction applies when the average
auction discount rate is greaterthan
8-% percent and the differential is
eliminated when the average auc
tion rate is 9 percent or greater.
Part 329 wasfurtheramended on July
1, 1 979, in response to the problem
of the relatively low return small
132
FEDERAL DEPOSIT INSURANCE CORPORATION
savers were receiving under the exist
ing interest rate structure. The maxi
mum rate of interest on passbook
savings accounts was increased 1 /4
of one percent for both commercial
banks (to 5 V a percent) and thrift
institutions (to 5 Vi percent). A new
deposit category was established
for time deposits with maturities of 4
years or more. The rate ceiling on
these deposits was based on the
yield for 4-year government securi
ties as determined each month by
theTreasury Department. Also, insti
tutions were authorized to set their
own minimums for consumer-type
time deposits, except for the $ 10,000
minimum required for money mar
ket certificates. And finally, early
withdrawal penalties in all deposit
categories were established for new
certificates issued or renewed after
July 1.
In conjunction with the above changes,
the FDIC issued a statement of pol
icy clarifying the authority of banks to
accept deposits that have been
pooled by depositors to reach a min
imum denomination requirement, but
prohibiting institutions from solicit
ing, advertising or promoting pooled
deposits in any way.
Part 329 also was amended to
provide for the waiver of penalties for
early withdrawal of a time deposit in
the event a depositor dies or is de
clared mentally incompetent. In addi
tion, the new withdrawal penalties
which became effective on July 1
were extended to all time deposits,
irrespective of date. The ceiling rate
of interest payable on time deposits
with maturities of between 30 and
89 days was increased from 5 per
cent to 5 1/4 percent, making it equal
to the rate available on passbook
savings accounts. Also, repurchase
agreements (RPs) of less than $ 100,000
with maturities of 90 days or more
were made subject to interest rate
ceilings. To prevent undue hardship,
a 3-year phaseout period was pro
vided. During this period, banks are
permitted to continue issuing such
RPs without regard to interest rate
ceilings so long as the total amount
outstanding does not exceed the
amount outstanding on August 1,
1979. This amendment took effect
on July 30, 1979.
Effective January 1,1 980, the FDIC
amended its regulations pertaining
to time deposits. Pursuant to these
revisions the existing 4-year floatingrate time deposit was replaced by a
new floating-rate certificate with a
maturity of 2Vi years and a rate tied
to the yield on Treasury securities
maturing in 2 1/2years. For thrift insti
tutions, the ceiling rate is 50 basis
points below the 2Vi year Treasury
rate while for banks the ceiling rate
is 75 basis points below the Treas
ury rate. There are no minimum de
p o s it re q u ire m e n ts and c o m
pounding of interest is permitted.
Another change increased by 1/ 4
of a percentage point the ceiling on
deposits maturing in 90 days to 1
year. The final amendment autho
rized banks to pay the same rate as
thrifts when IRA/Keogh and govern
mental unit funds are deposited in
the new 2Vi year or more certifi
cates. Banks also may pay the same
rate as thrifts on IRA/Keogh and govern
mental unit deposits of $ 10,000 or
more placed in 26-week money mar
ket certificates regardless of the
level of the Treasury bill rate.
Recordkeeping and Confirmation
Requirements for Securities Trans
act ions (Part 344). The FDIC
adopted, effective January 1, 1980,
new rules establishing uniform stand
ards for bank recordkeeping, con
firmation, and other procedures in
making securities transactions for
trust departments and other bank
customers. This action was taken
after a study by the Securities and
Exchange Commission on banksecurities activities and responds to cer
tain recommendations in the SEC
report. The final rules were adopted
follow ing consideration of com
RULES AND REGULATIONS
ments received on proposals pub
lished in January 1978 and revised
proposals published in November.
The final rules were substantially
unchanged from the November pro
posals.
International Banking Act of 1978
(Part 346). On June 28, 1979, the
FDIC issued final regulations imple
menting section 6 of the Interna
tional Banking Act of 1978. These
regulations provide for Federal de
posit insurance coverage of United
States branches of foreign banks
and, in some cases, require insur
ance. Section 6 also amends the
Federal Deposit Insurance Act to
establish special requirements for
branches that are insured by the
FDIC.
Foreign Activities of Insured State
Nonmember Banks(Part 347) Effective
May 30,1979, the FDIC adopted new
regulations implementing theforeign
banking requirements in FIRIRCA.
Under the new regulations, any in
sured State nonmember bank must
obtain the consent of the FDIC be
fore establishing its first branch in a
foreign country or before acquiring
any ownership interest in a foreign
bank or other foreign financial en
tity. The bank must provide 30 days'
notice to the FDIC concerning its
intent to relocate an existing foreign
branch or to increase the number of
foreign branches in a country where
it has an authorized foreign branch.
The FDIC also must be notified
when a foreign branch is closed. In
addition, the regulations require banks
to maintain a system of records,
controls, and reports on their for
eign activities.
Management Official Interlocks (Part
348). The Depository Institution Man
agement Interlocks Act was enacted
as Title II of FIRIRCA. The general
purpose of the Interlocks Act and
this Part is to foster competition
among depository institutions.
Tothisend.a management official
of a depository institution (bank.
133
savings and loan association, mut
ual savings bank or credit union) or
depository holding company is gen
erally prohibited from also serving
as a management official of another
depository institution or depository
holding company if the two organi
zations: (1) are not affiliated and (2)
are very large or are located in the
same local area. The regulations
provide for specific exemptions from
the above prohibitions, but prior
FDIC approval is required.
Correspondent Accounts and Dis
closure of Material Facts (Part 349
and 304). On March 10, 1979, Title
VIII (Correspondent Accounts) and
Title IX (D isclosure of M aterial
Facts) of FIRIRCA became effective.
Title IX contains provisions that
specify what information must be
reported by insured banks to the
Federal banking agencies regarding
loans by the bank to its own execu
tive officers and principal share
holders (but not directors) under
Title I of FIRIRCA. Title I and Federal
Reserve Board Regulation 0, which
implements it, are applicable to in
sured State nonmember banks in
the same manner and to the same
extent as if they were State member
banks. Under Title IX, insured State
nonmember banks will report to the
FDIC. The FDIC has promulgated
section 304.4 of Part 304 to imple
ment the reporting requirements of
Title IX.
Title VIII, in part, prohibits prefer
ential loans to executive officers and
principal shareholders of a bank
from its correspondent banks, and
requires such persons to report to
their bank's board of directors on
their indebtedness (and indebted
ness of their related interests) to the
bank's correspondent banks. The FDIC
has promulgated Part 349 to imple
ment the reporting requirements (not
the prohibitions) of Title VIII. Both
sections 304.4 and Part 349 took
effect on December 31, 1979.
The FDIC, in conjunction with the
134
FEDERAL DEPOSIT INSURANCE CORPORATION
Board of Governors of the Federal
Reserve System and the Comptroller
of the Currency, has developed two
forms for use by executive officers,
principal shareholders and banks in
complying with the reporting require
ments of Titles VIII and IX of FIRIRCA.
Form FFIEC 004 (Report on Indebted
ness of Executive Officers and Prin
cipal Shareholders and Their Re
lated Interests to Correspondent Banks)
is a recommended form for use by
executive officers and principal share
holders to report to the board of
directors of their bank on their indebt
edness (and that of their related
interests) to correspondent banks,
as required by Title VIII and Part 349
of FDIC's regulations. FFIEC 004 (or
a similar form) is to be submitted by
executive officers and principal share
holders to their banks by January
31, of each year.
Each executive officer and princi
pal shareholder (reporting persons)
filing FFIEC 004 must indicate on
the form the name of the reporting
person, the name of the bank to
which the report is submitted, and
the name and address of the corres
pondent bank to which the person or
related interest is indebted.
Form FFIEC 003 (Report on Owner
ship of the Reporting Bank and on
Indebtedness of its Executive Offi
cers and Principal Shareholders to
the Reporting Bank and to its Cor
respondent Banks) is the form re
quired by Title IX and section 304.4
of Part 304 of the FDIC's regulations
for use by insured State nonmember
banks in reporting to FDIC on the
aggregate direct indebted ness of exe
cutive officers, principal share
holders and their related interests to
the bank under Title I of FIRIRCA, as
required by Title IX. FFIEC 003 also
is used by the banks to report to
FDIC on the aggregate indebtedness
of these persons and their related
interests to correspondent banks as
reported under Title VIII. A consoli
dated form has been adopted so that
a bank need file only one form with
FDIC in order to comply with the
reporting requirements of both Titles
VIII and IX. The law requires that this
information be made publicly avail
able by the banks and by the FDIC.
Limits on Loans to Executive Offi
cers, Directors and Principal Shareholders (Regulation 0). Section 22(h),
relating to limits on loans to execu
tive officers, directors, and principal
shareholders of member banks, was
added to the Federal Reserve Act by
FIRIRCA, which further provides that
the provisions of section 22(h) are
applicable to nonmember insured
banks as well as to State member
banks.
Section 22(h) limits loans to exe
cutive officers, principal share
holders and their related interests to
10 percent of the bank's capital and
unimpaired surplus and prohibits
the payment of an overdraft of an
executive officer or director. It also
requires that every extension of credit
by a bank to any of its executive
officers, directors, or principal share
holders and their related interests
be made on "substantially the same
terms" as "comparable transactions
with other persons." In addition, a
majority of the entire board of direc
tors of the bank must approve in
advance an extension of credit to
any of the above persons which
exceeds $25,000.
Proposals to Simplify FDIC Rules
and Regulations. The FDIC policy
statement on regulations provides
for the review every 5 years of each
existing regulation to determine if it
should be continued, revised or elimi
nated. The first review is well under
way. During 1979, the majority of
the Corporation's existing regula
tions and one proposed regulation
were reviewed. To date, 11 specific
actions have been taken: six regula
tions (Parts 301, 302, 305, 306,
325and 334) were eliminated. Aseventh,
(Part 337) was substantially re
duced by elimination of the insider
RULES AND REGULATIONS
transaction provisions. A proposed
regulation (Part 340, relating to offer
ing circular requirements for the
public issuance of bank securities)
was withdrawn and replaced by a
substantially simplified policy state
135
ment; and proposals recommending
the reduction or simplification of
three other regulations were issued.
Additional proposals to simplify and
reduce other regulations currently
are being drafted.
STATISTICS OF BANKS
AND DEPOSIT INSURANCE
PART FIVE
GO
00
N UM BER OF BANKS AND B R A N CH ES
m
o
m
Table 101.
Changes in number and classification of banks and branches in the United States (States and
other areas) during 1 979
o
>
Table 102.
Changes in number of commercial banks and branches in the United States (States and other
areas) during 1979, by State
q
§
Table 103.
Number of banking offices in the United States (States and other areas), December 31, 1979
Table 104.
z
Banks grouped by insurance status and class of bank, and by State or area and type of office
c
Number and assets of all commercial and mutual savings banks in the United States (States
and other areas), December 3 1 , 1 9 7 9
Banks grouped by class and asset size
Table 105.
m
z
m
o
Number, assets, and deposits of all commercial banks in the United States (States and other
areas), December 31, 1979
§
Banks grouped by asset size and State
h
Institution s 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
139
BRANCHES
M utual savings banks include all banks operating under State banking
codes applying to mutual saving banks.
OF BANKS AND
Nondeposit tru s t 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.
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;
Federal Reserve Banks and other banks, such as the Federal Home Loan
Banks and the Savings and Loan Bank of the State of New York, which operates
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
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.
140
T a b le 101.
CHANGES IN NUMBER AND CLASSIFICATION OF BANKS AND BRANCHES IN THE UNITED STATES
(STATES AND OTHER AREAS) DURING 1979
N oninsured
Insured
Type of change
Insured
Total
M utual savin gs banks
C om m e rcial banks and n ondeposit trust com panies
Non
insured
Insured
Total
Total
N on
deposit
trust
co m -.
panies
Total
Insured
Non
insured
National
State
Not
m em
bers
F.R.
S ystem
23,307
22,731
5,856
5,725
21,993
20,730
330
314
104
102
3,338
3,006
2,840
2,517
498
489
M em bers
F.R . System
Banks
of
deposit
ALL BANKING OFFICES
Number of offices, December 31,1 9 7 9 ...................................................
Number of offices, December 31,1 9 7 8 ...................................................
54,928
52,608
53,996
51,703
932
905
51,590
49,599
51,156
49,186
Net change during y e a r ...........................................................................
+2,320
+2,293
+27
+1,991
+1,970
+576
+131
+1,263
+16
+2
+332
+323
+9
Offices o p e n e d ......................................................................................
2,895
2,849
46
2,532
2,498
1,072
236
1,190
27
7
363
351
12
Banks .................................................................................................
B ra n c h e s .............................................................................................
239
2,656
206
2,643
33
13
237
2,295
204
2,294
42
1,030
31
205
131
1,059
26
1
7
0
2
361
2
349
0
12
Offices closed ......................................................................................
575
563
12
544
533
279
79
175
6
5
31
30
1
Banks .................................................................................................
Branches .............................................................................................
244
331
238
325
6
6
240
304
234
299
106
173
32
47
96
79
1
5
5
0
4
27
4
26
0
1
Changes in classification ..................................................................
0
+3
-3
0
+2
-2 1 7
-2 7
+246
-2
0
0
+1
-1
Am on g b a n k s .............................................................................
A m ong branches .............................................................................
0
0
0
+3
0
-3
0
0
0
+2
-5 2
-1 6 5
-2 3
-4
+ 75
+171
0
-2
0
0
0
0
0
+1
0
-1
15,201
15,206
14,688
14,716
513
490
14,738
14,741
14,364
14,391
4,448
4,564
977
1,000
8,939
8,827
282
2603
92
903
463
465
324
325
139
140
Net change during y e a r ...........................................................................
-5
-2 8
+23
-3
-2 7
-1 1 6
-2 3
+112
+22
+2
-2
-1
-1
Banks beginning o p e ra tio n ................................................................
239
206
33
237
204
42
31
131
26
7
2
2
0
New banks ............... , ......................................................................
Banks added to cou n t
..................................................................
Financial institution becom ing bank of d eposit ..........................
235
1
3
206
0
0
29
1
3
233
1
3
204
0
0
42
0
0
31
0
0
131
0
0
22
1
3
7
0
0
2
0
0
2
0
0
0
0
0
Banks ceasing o p e ra tio n .....................................................................
244
238
6
240
234
106
32
96
1
5
4
4
0
A b so rp tio n s, con so lid a tio n s, and m ergers .................................
Closed because of finan cial d if f ic u lt ie s ..........................................
Other liq u id a t io n s .............................................................................
Disco ntinued deposit operations ...................................................
Banks deleted from c o u n t ................................................................
235
1
3
1
4
235
1
2
0
0
0
0
1
1
4
231
1
3
1
4
231
1
2
0
0
106
0
0
0
0
32
0
0
0
0
93
1
2
0
0
0
0
0
1
0
0
0
1
0
4
4
0
0
0
0
4
0
0
0
0
0
0
0
0
0
Noninsured banks becoming in s u re d ...............................................
0
+4
0
+3
0
+1
+2
0
0
+1
BANKS
Number of banks, December 3 1 ,1979 .....................................................
Number of banks, December 3 1,1978 ...................................................
-4
-3
-1
FEDERAL DEPOSIT INSURANCE CORPORATION
All banks
Other changes in cla s s ific a tio n ..............................................
National succeedin g State b a n k ..........................................
State succeedin g national bank ..........................................
A d m is sio n of insured bank to F.R . System ......................
W ithdraw al from F.R . S ystem with continued insurance .
Insured bank becom in g n on insu red bank ........................
Mutual savin gs bank converted to com m e rcia l b a n k ___
0
0
0
0
-5 2
-2 3
+75
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
+1
-5 3
0
0
0
0
0
0
+6
-2 9
0
0
-1
+ 53
-6
+ 29
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
294
29
10
10
215
293
25
10
8
211
293
29
10
10
212
292
25
10
8
208
84
7
3
3
52
24
1
1
0
2
184
17
6
5
154
0
0
0
1
4
1
4
0
1
0
1
0
0
0
3
1
0
0
0
3
0
0
0
0
0
48
48
48
48
0
0
48
0
0
0
0
0
39,727
37,402
39,308
36,987
36,852
34,858
36,792
34,795
18,859
18,167
4,879
4,725
13,054
11,903
48
54
12
12
2,875
2,541
2,516
2,192
359
349
Changes not involving number in any class
Change
Change
Change
Change
Change
in
in
in
in
in
t it le .........................................................................
location ................................................................
title and location ................................................
name of location ................................................
location within c i t y ..............................................
Change in corporate powers
BRANCHES
Number of branches, December 31,1979,..
Number of branches, December 31,1978
+2,321
+1,994
+1,997
+692
+154
+1,151
0
+334
+324
+10
2,656
2,643
2,295
2,294
1,030
205
1,059
1
0
361
349
12
Facilities designated by T r e a s u r y ......................
A bsorbed bank converted to b r a n c h .................
Branch replacing head office relocated ...........
New b r a n c h e s .............................................. . . .
B ranches an d /o r facilitie s added to count
2
220
33
2,07 9
322
2
220
33
2,074
314
2
216
33
1,845
199
2
216
33
1,844
199
2
133
10
849
36
0
41
1
154
9
0
42
22
841
154
0
0
0
1
0
0
0
0
0
0
0
4
0
234
123
0
4
0
230
115
0
0
0
4
8
Branches discontinued ..........................................
331
325
304
299
173
47
79
5
0
27
26
1
Facilities desig nated by Treasury ......................
B ranches ................................................................
B ranches an d /o r facilities deleted from count .
3
238
90
3
234
88
3
215
86
3
211
85
3
99
71
0
42
5
0
70
9
0
4
1
0
0
0
0
23
4
0
23
3
0
0
1
-6
Other changes in c la ssifica tio n ..............................................
0
+3
0
+2
-1 6 5
-4
+171
0
0
+1
-1
B ranches changing class as a result of c o n v e r s io n .........
B ranches of n oninsured banks adm itted to insurance . . .
Branches transferred throug h ab so rptio n, consolidation,
or m e r g e r ...........................................................................
B ranches of insured banks w ithdraw ing from F .R .S . . . .
0
0
0
+1
0
0
0
0
-1 7 5
0
+9
0
+ 16 6
0
0
0
0
0
0
0
0
+1
0
-1
0
0
+2
0
0
0
+2
0
+ 10
0
+ 69
-8 2
-7 7
+ 82
-2
0
0
0
0
0
0
0
0
0
-2
Changes not involving number in any class
Changes in operating p o w ers of b r a n c h e s ........................
B ran ch es tra n sfe rre d through ab so rptio n, con solida tion ,
or m e r g e r ...........................................................................
Changes in title, location, or name of lo c a tio n .................
1
1
1
1
1
0
0
0
0
0
0
0
402
474
402
473
402
474
374
448
272
213
20
40
82
195
0
0
0
0
28
26
28
25
0
1
Includes non insu red non de posit tru st com p an ies, m em bers of the Federal Reserve System.
^Reflects all banks opened or close d but not p re viou sly included in count.
^ 1978 Bank or banch total adjusted from prior year.
t.B an ks and branches opened p rior to 1979 but not included in count as of D ecem ber 31, 1978.
Includes all branch entities establish ed in a prior year but not previously included in count.
BRANCHES
+2,325
Branches opened for business ............................
Net change during y e a r .
NUMBER OF BANKS AND
Granted trust p o w e r s ..........................
1 42
T a b le 102.
CHANGES IN NUMBER OF COMMERCIAL BANKS AND BRANCHES IN THE UNITED STATES
(STATES AND OTHER AREAS) DURING 1979, BY STATE
Banks
B ran ch es
Banks
Branches
Banks
Branches
New
Other
New
Other
A b so rp tio n s
Other
Branches
Other
Total United S ta te s ................
50 States and D.C...................
14,738
14,708
36,852
0
14,741
14,711
34,861
0
-3
-3
+1,991
0
233
231
4
4
2,044
0
251
0
231
230
9
8
215
0
89
0
Other a r e a s .............................
30
0
30
0
0
0
2
0
0
0
1
1
0
0
A la b a m a ...................................
A laska ......................................
A r iz o n a .....................................
A rkan sas .................................
C a lif o r n ia .................................
317
12
27
261
257
578
109
505
393
4 ,09 0
312
12
28
262
244
553
112
484
372
3,906
+5
NA
-1
-1
+ 13
+25
-3
+21
+21
+ 184
7
0
2
0
24
0
0
0
0
0
27
1
23
21
190
2
0
0
2
12
2
0
0
1
11
0
0
3
0
0
3
2
2
2
13
1
2
0
0
5
C olo rado
...............................
C o n n e c tio n .............................
Delaware .................................
D istrict of C o lu m b ia ...............
Florida .....................................
410
65
20
17
585
97
593
147
140
946
394
65
19
17
617
81
587
147
138
743
+ 16
0
+1
NA
-3 2
+16
+6
0
+2
+ 203
17
1
1
0
12
0
0
0
0
0
14
12
2
3
162
2
1
0
0
44
0
1
0
0
44
1
0
0
0
0
0
7
2
1
2
0
0
0
0
1
G eorgia ...................................
Hawaii .....................................
Idaho ........................................
Illinois .....................................
I n d ia n a .....................................
439
12
27
1,288
4 06
829
163
236
452
1 ,082
440
11
24
1 ,277
4 06
786
160
228
394
1,035
-1
+1
+3
+11
0
+ 43
+3
+8
+ 58
+ 47
0
1
3
15
1
0
0
0
1
0
48
3
8
59
47
2
0
0
5
1
1
0
0
4
1
0
0
0
1
0
4
0
0
5
0
3
0
0
1
1
I o w a ..........................................
Kansas .....................................
Kentucky .................................
L o u is ia n a .................................
M a in e ........................................
657
617
343
262
41
538
254
697
764
299
657
617
344
256
43
500
256
644
715
293
NA
0
-1
+6
-2
+38
-2
+ 53
+ 49
+6
0
1
1
7
0
0
0
0
0
0
49
22
53
50
5
0
1
2
4
2
0
0
2
1
2
0
1
0
0
0
9
1
1
5
0
2
24
1
0
1
M aryland .................................
M a s s a c h u s e t ts ........................
M ich igan .................................
M innesota ...............................
M is s is s ip p i...............................
102
149
372
762
183
905
936
2,001
227
666
106
152
365
761
185
855
924
1,793
176
635
-4
-3
+7
+1
-2
+ 50
+ 12
+ 208
+51
+31
1
1
8
2
1
0
0
0
0
0
49
22
210
50
32
5
4
2
1
4
5
4
1
0
3
0
0
0
1
0
2
8
2
0
4
2
6
2
0
1
M is s o u r i...................................
M o n t a n a ...................................
Nebraska .................................
Nevada .....................................
New H a m p s h ir e ......................
727
165
461
9
79
415
28
236
135
148
720
163
459
9
79
399
23
199
130
135
+7
+2
+2
0
0
+ 16
+5
+ 37
+5
+ 13
7
2
2
1
1
0
0
0
0
0
20
5
38
4
13
2
0
1
1
1
0
0
0
1
1
0
0
0
0
0
5
0
2
0
0
1
0
0
0
1
States
FEDERAL DEPOSIT INSURANCE CORPORATION
B ranches
Banks
B ranches
Banks
Dec. 31, 1978
Dec. 31, 1979
Ceasing operation in 1979
Beginning operation in 1979
Net change
during 1979
In operation
State
1 ,554
238
3 ,3 8 9
1 ,723
123
184
87
298
89
174
1,535
22
3,321
1,683
117
-8
NA
+4
-6
+1
+ 19
+11
+ 68
+ 40
+6
1
0
8
1
1
0
0
3
0
0
25
11
111
49
6
8
0
7
8
1
9
0
7
7
0
0
0
0
0
0
12
0
39
13
1
2
0
11
4
0
O h io ...............
O klahom a
O r e g o n ...........
P e n nsylva n ia .
Rhode Island .
408
496
80
378
17
2 ,10 6
248
551
2 ,4 7 9
231
482
485
63
378
17
1,941
217
525
2 ,427
226
-7 4
+11
+ 17
0
NA
+ 16 5
+31
+ 26
+ 52
+5
2
11
17
3
0
0
0
0
0
0
100
31
28
64
5
77
0
0
3
0
76
0
0
3
0
0
0
0
0
0
7
0
2
10
0
5
0
0
5
0
S outh C arolina
Sou th Dakota .
Tennessee . . .
85
155
352
1,427
76
687
158
992
234
273
87
156
350
1,401
68
662
149
953
203
253
-2
-1
+2
+ 26
+8
+ 25
+9
+ 39
+31
+ 20
0
1
3
28
9
0
0
0
0
0
25
6
49
33
19
3
3
0
1
1
2
2
0
2
1
0
0
1
0
0
3
0
9
3
0
0
0
1
0
0
30
234
110
235
636
94
159
1,372
884
59
500
3
30
263
103
231
633
88
147
1,302
785
56
444
3
NA
-2 9
+7
+4
+3
+6
+ 12
+ 70
+ 99
+3
+ 56
NA
0
7
7
4
3
6
0
0
0
0
0
0
12
53
100
4
66
0
0
36
0
0
0
0
0
36
0
0
0
0
0
0
0
0
0
0
0
14
0
1
10
0
0
5
1
0
0
0
4
0
20
6
25
2
2 29
24
3
0
21
6
24
2
232
24
+1
0
-1
NA
+1
NA
-3
0
1
0
1
0
0
0
0
0
1
0
2
2
0
0
2
0
0
0
1
0
0
0
1
0
0
0
7
2
0
0
0
0
V e r m o n t ....................
V irg in ia ......................
W a s h in g t o n .............
W est V i r g i n i a ...........
W is co n sin ...............
W y o m in g ..................
7,
Other areas
P a cific I s la n d s .........
Canal Zone .............
Puerto R ico .............
V irg in I s la n d s ...........
Branch total adjusted.
Canal Zone becam e a part of the R epu blic of Panam a on October 1, 1979.
N A = No activity
BRANCHES
143
AND
\ 1978
OF BANKS
176
87
302
83
175
NUMBER
New Je rse y ..
New M e xico ..
N ew Y o rk
North Carolina
North Dakota .
1 44
NUMBER OF BANKING OFFICES IN THE UNITED STATES, (STATES AND OTHER AREAS),
DECEMBER 31, 1979
G R O U P E D A C C O R D IN G TO IN S U R A N C E S T A T U S AN D C L A S S OF B A N K , AN D B Y S TATE O R A R E A A N D T Y P E OF OFFICE
Mutual savings banks
Commercial banks and nondeposit trust companies
All banks
Percentage insured1
Members F.R.
System
Insured
Non
insured
All
banks
of
de
posit
Com
mercial
banks
of
deposit
Mutual
savings
banks
United States— all o ffic e s ...............................................
54,928
53,996
932
51,590
51,156
23,307
5,856
21,993
330
104
3,338
2,840
498
98.3
99.2
85.1
Banks ............................................................................
..................................................................
.........................................
Branches3........................................................................
50 States & D.C.— all offices .........................................
Banks ............................................................................
..................................................................
.........................................
Branches3 ......................................................................
15,201
14,688
513
14,738
14,364
4,448
282
92
31
293
139
96.6
4,879
13,054
48
12
2,875
2,516
359
98.9
95.7
$■§
99.8
70.0
18,859
95.4
98.0
97.5
36792
84
8
463
36,852
5,144
3,795
264
419
490
487
8,939
39,308
2,166
2,282
977
39,727
375
138
54,618
53,712
15,171
14,675
39,447
7,827
6,848
39,037
360
136
Other Areas— all offices .................................................
310
284
Banks ............................................................................
..................................................................
.........................................
Branches3 ......................................................................
30
13
280
271
STATE
Alabama— all o ffice s........................................................
Unit Banks
Banks operating branches
Unit Banks
Banks operating branches
8,206
6,995
8,187
6,984
19
11
Non
Insured insured
7,831
6,857
4
9
Total
8,148
6,590
Total
7,800
Na
tional
Banks
of de
p o s it
Non
deposit
trust
com-_
pames
Total
58
405
27
112
53.4
72.3
87.5
906
51,280
50,872
23,246
5,856
21,770
306
102
3,338
2,840
498
98.3
99.2
85.1
496
14,708
14,351
4,448
977
324
139
96.7
12,844
2,516
359
95.6
98.1
97.6
95.9
99.6
53.4
72.3
4,879
82
8
463
18,798
251
16
90
36,521
5,140
3,786
267
36,572
490
487
8,926
410
2,166
2,282
26
310
284
61
0
223
24
2
0
0
0
91.6
91.6
0.0
17
30
13
0
0
13
15
2
2
0
0
0
43.3
43.3
0.0
0.0
9
280
15
2
8,129
6,579
19
11
7,796
6,555
4
9
4
9
271
0
0
61
0
0
0
210
.
39
13
2
9
12
0
0
58
405
2,875
0
0
0
31
293
0
0
0
27
112
0
0
0
99.0
99.9
21.1
81.8
21.1
81.8
96.8
96.8
70.0
87.5
0.0
0.0
895
895
0
895
895
456
50
389
0
0
0
0
0
100.0
100.0
0.0
Banks ............................................................................
..................................................................
.........................................
Branches ........................................................................
317
147
170
317
0
317
317
99
24
194
0
0
0
0
0
100.0
100,0
100.0
100.0
100.0
100.0
0.0
0.0
578
0
195
0
0
0
26
0
0
0
357
0
0
0
578
101
93
0
578
32
67
578
0
0
Alaska— all offices............................................................
126
126
0
121
121
88
0
33
0
0
5
5
0
100.0
100.0
100.0
Banks ............................................................................
..................................................................
.........................................
Branches ........................................................................
14
2
14
2
0
12
6
0
0
0
2
2
0
100.0
100.0
100.0
112
0
109
109
82
0
0
6
12
0
6
0
112
0
0
12
0
27
0
3
3
Arizona— all o ffic e s ..........................................................
532
527
5
532
527
338
0
189
0
5
27
22
5
5
27
16
11
22
3
0
19
0
5
0
505
505
Unit Banks
Banks operating branches
Unit Banks
Banks operating branches
Banks
.......................................
..................................................................
.........................................
Branches ........................................................................
Unit Banks
Banks operating branches
12
16
11
505
147
170
11
11
505
0
147
170
1
11
147
170
1
11
11
11
1
2
335
14
10
0
0
0
1
5
10
9
170
0
0
0
0
0
0
0
0
0
5
0
0
0
1
1
0
0
100.0
0
0
0
0
0
99.1
99.1
0.0
0
0
0
81.5
81.5
0.0
0.0
0
0
0
0
0
0
0
0
0
100.0
68.8
100.0
100.0
100.0
100.0
0.0
1
1
0
100.0
100.0
100.0
0.0
100.0
68.8
100.0
100.0
100.0
100.0
100.0
0.0
0.0
C O R PO R A TIO N
Unit Banks
Banks operating branches
Total
INSURANCE
State
Nonmem
bers
F.R.
S ys
tem
State and type of bank
or office
DEPOSIT
Noninsured
Insured
FEDERAL
Ta b le 103.
Arkansas— all offices...............
654
651
3
Banks ...................................
.........................
Unit Banks
Banks operating branches.
261
258
Branches ...............................
393
102
156
393
3
0
0
393
393
185
California— all o ffic e s............
4,347
4,323
24
4,347
4,323
2,764
Banks ...................................
.........................
257
242
77
165
15
257
242
42
9
Unit Banks
105
156
86
171
3
9
6
654
261
105
156
86
171
651
258
102
156
77
165
253
68
15
53
13
29
25
6
1
5
373
184
1
1
2
2
189
1
0
2
19
86
98
377
1,182
0
7
193
0
0
7
0
64
129
0
0
0
0
0
0
0
0
99.5
98.9
99.5
98.9
0.0
0.0
0
0
0
0
0
0
0
97.1
100.0
97.1
100.0
0.0
0.0
24
0
0
0
99.4
99.4
0.0
15
0
0
0
94.2
94.2
89.5
96.5
0.0
0.0
0
9
6
0
0
0
0
0
0
0
0
0
100.0
89.5
96.5
100.0
0.0
0.0
4,090
4,081
4,090
4,081
2,722
370
989
Colorado— all offices..............
507
404
103
507
404
197
33
174
103
0
0
Banks ...................................
.........................
0
0
79.7
79.7
410
307
103
410
307
27
141
0.0
139
103
0
0
0
0
74.9
74.9
0.0
97
58
33
0
Unit Banks
Banks operating branches.
Branches ...............................
333
77
97
230
77
97
103
0
0
333
77
97
230
77
93
46
23
4
6
114
27
0
9
0
0
0
99.8
99.8
0.0
103
0
0
0
0
0
0
0
0
0
69.1
100.0
69.1
100.0
0.0
0.0
0
0
0
0
100.0
100.0
0.0
1,052
1,052
0
658
658
221
87
350
0
0
394
394
Banks ...................................
.........................
0
100.0
100.0
100.0
130
130
0
65
65
19
2
44
0
0
65
65
0
100.0
100.0
100.0
Branches ...............................
922
922
Delaware— all o ffic e s ............
193
Banks ...................................
.........................
22
Unit Banks
Banks operating branches.
9
13
15
115
0
0
11
54
11
54
3
16
0
593
593
202
191
2
167
165
20
2
2
20
18
7
7
13
0
9
11
11
0
2
8
36
85
306
11
0
154
6
2
0
12
4
0
0
5
7
0
0
0
329
329
4
61
0
0
100.0
100.0
100.0
100.0
100.0
100.0
0
2
26
26
0
99.0
98.8
100.0
0
0
0
2
2
0
2
2
0
2
2
0
0
0
77.8
100.0
90.9
77.8
100.0
90.0
0.0
100.0
0
0
0
0
4
61
0
100.0
100.0
100.0
100.0
Branches ...............................
171
171
0
147
147
0
142
0
100.0
Dist. of Col.— all o ffic e s ........
157
157
0
157
157
154
0
3
0
0
0
0
0
0
16
0
1
0
0.0
17
17
100.0
17
17
100.0
Banks ...................................
.........................
0
0
0
0
100.0
100.0
0.0
0.0
Unit Banks
Banks operating branches.
4
13
4
13
0
0
4
13
4
13
5
4
12
0
0
0
0
0
1
0
0
0
0
24
0
0
24
0
0
0
0
100.0
100.0
100.0
100.0
100.0
100.0
0.0
140
140
0
140
140
1,531
1,523
8
1,531
1,523
641
70
812
1
7
0
0
0
99.5
99.5
0.0
Banks ...................................
.........................
585
577
8
585
577
221
28
1
7
0
0
0
98.6
98.6
0.0
0.0
420
42
484
100.0
100.0
428
86
754
0
0
0
0
0
439
63
100.0
100.0
0.0
9
2
367
0
0
0
0
0
100.0
100.0
0.0
0.0
0
1,268
439
0
439
Unit Banks
Banks operating branches.
185
254
185
254
0
0
185
254
185
254
829
365
Hawaii— all offices .................
175
169
6
175
169
14
3
12
2
9
3
3
163
Unit Banks
Banks operating branches.
Branches ...............................
10
163
9
1
8
160
1
2
10
1
8
160
1
2
11
77
173
194
387
0
0
0
155
0
0
6
0
7
0
0
0
0
6
149
0
0
0
0
0
0
0
0
0
0
0.0
0.0
0.0
0
0
0
0
0
0
0
100.0
100.0
6
0
0
0
96.6
96.6
0.0
3
0
0
0
0
0
0
0
50.0
80.0
75.0
50.0
80.0
75.0
0.0
0.0
0
1
2
3
0
0
0
0
0
0
0
100.0
100.0
98.2
100.0
100.0
98.2
0.0
0.0
0.0
145
12
2
10
53
0
96.6
100.0
BRANCHES
946
1,268
1,268
Banks ...................................
.........................
0.0
96.6
100.0
439
829
100.0
0
0
1,268
0
100.0
0
0
Banks ...................................
.........................
829
0
0
0
Georgia— all offices.................
829
0
7
0
227
350
Branches ...............................
0
1
0
235
350
946
0
132
196
8
0
0
0
15
13
227
350
946
2
80
141
235
350
946
0
328
Unit Banks
Banks operating branches.
Branches ...............................
138
AND
Branches ...............................
Florida— all offices .................
OF BANKS
Unit Banks
Banks operating branches.
15
115
NUMBER
Connecticut— all offices ........
146
FEDERAL
Ta b le 103.
N U M B E R O F B A N K I N G O F F I C E S IN T H E U N I T E D S T A T E S , ( S T A T E S A N D O T H E R A R E A S ) ,
D E C E M B E R 31, 1 9 7 9 - C O N T I N U E D
G R O U P E D A C C O R D IN G TO IN S U R A N C E S T A T U S AN D C L A S S OF B A N K , A N D B Y S T A T E O R A R E A AN D T Y P E OF OFFICE
State and type of bank
or office
Total
NonInsured Insured
Total
Total
Members F.R.
System
State
Nonmem
bers
F.R.
S ys
tem
Banks
of de-_
p o s ir
Non
deposit
trust
com
panies
Total
Insured
Non
insured
All
banks
of
de
posit
Com
mercial
banks
of
deposit
Mutual
savings
banks
..........................................................
263
263
0
263
263
191
10
62
0
0
0
0
0
100.0
100.0
O.b
.....................................................
27
7
20
27
7
20
0
0
0
27
27
7
1
6
16
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
100.0
100.0
100.0
100.0
100.0
100.0
0.0
0.0
0.0
236
236
0
236
236
184
........................................................
1,740
1,702
38
1,740
1,702
621
89
992
32
6
0
0
0
97.8
97.8
0.0
...............................................
1,288
924
364
1,250
38
1,288
1,250
410
43
19
596
182
32
0
6
0
0
0
0
0
0
0
0
0
97.0
95.9
100.0
97.0
95.9
100.0
0.0
0.0
0.0
...................................................
452
247
163
0
452
886
364
6
0
924
364
32
452
38
0
778
452
886
364
62
Indiana— all o ffic e s ..........................................................
1,495
1,493
2
1,488
1,486
647
73
766
1
1
7
7
0
99.9
99.9
100.0
410
123
285
408
2
2
406
404
119
1
0
4
2
2
2
2
4
0
0
0
99.5
99.5
100.0
98.4
100.0
100.0
0
98.4
100.0
521
1
0
1
33
77
168
1
528
19
21
245
1,082
25
94
40
1,082
121
283
0
123
283
100.0
100.0
Unit Banks ............................................................
Banks operating branches.........................................
Branches
Illinois
all offices
Banks
Unit Banks
...........................................
Banks operating branches
.................................
Branches
Banks
.................................................
Unit Banks
.....................................................
Banks operating branches .....................................
Branches
Iowa
all offices
Banks
Branches
Banks
Branches
Banks
all offices
214
0
0
0
0
0
0
0
0
3
0
0
3
0
0
100.0
100.0
100.0
100.0
0.0
0.0
100.0
100.0
...................................................
1,195
1,189
6
1,195
1,189
238
83
868
5
1
0
0
0
99.5
99.5
0.0
657
651
6
657
651
99
40
512
5
1
0
0
0
99.1
99.1
0.0
0.0
377
274
48
51
23
17
306
206
5
0
1
0
0
0
0
0
0
0
98.4
100.0
98.4
100.0
0.0
383
274
377
274
6
0
383
274
0
538
538
139
0
100.0
.................................................
871
870
1
871
870
274
24
572
1
0
0
0
0
99.9
99.9
0.0
.....................................................
477
140
616
1
0
617
477
140
616
476
140
148
364
85
1
1
0
0
0
0
0
0
0
99.8
99.8
99.8
100.0
0.0
0.0
.............................................
126
15
4
449
254
97
51
19
254
476
140
1
.....................................................
1,040
1,039
1
1,040
1,039
345
99
595
1
0
0
0
0
99.9
99.9
0.0
.......................................................
124
219
343
123
219
342
1
0
1
124
219
343
123
219
342
17
62
0
0
0
0
99.7
99.7
0.0
Unit Banks
...............................................
Banks operating branches .....................................
Branches
27
46
1,085
Unit Banks
.................................................
Banks operating branches ...................................
Kentucky
211
4
12
1,085
.......................................................
..................................................................
.....................................
...........................................................
all offices
0
7
20
...............................................
Unit Banks
Banks operating branches
Kansas
125
285
7
20
.................................................
538
617
697
538
254
697
0
0
254
697
697
79
266
43
5
356
123
9
254
90
341
3
6
103
151
0
0
1
1
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
99.8
100.0
100.0
99.2
100.0
100.0
100.0
100.0
99.2
100.0
100.0
0.0
0.0
0.0
0.0
0.0
0.0
C O RPO R ATIO N
.............................................
4
2
2
6
Banks
INSURANCE
Na
tional
Idaho— all offices
Noninsured
DEPOSIT
Insured
Percentage insured1
Mutual savings banks
Commercial banks and nondeposit trust companies
All banks
0.0
Louisiana— all o ffic e s ............
1,026
1,026
0
1,026
1,026
356
49
621
0
0
0
0
0
100.0
100.0
Banks ...................................
.........................
Unit Banks
Banks operating branches.
262
262
55
6
201
0
100.0
100.0
100.0
100.0
0.0
0.0
420
0
0
100.0
43
0
0
0
301
0
0
0
764
0
0
0
764
0
0
0
0
72
190
262
764
0
0
262
764
72
190
0
Branches ...............................
72
190
Maine— all o ffice s...................
461
461
0
340
340
123
41
176
0
0
121
121
0
100.0
100.0
Banks ...................................
.........................
70
70
0
41
41
14
3
24
0
0
29
29
0
100.0
100.0
100.0
100.0
Unit Banks
Banks operating branches.
8
62
8
62
0
0
58
143
0
0
0
0
0
100.0
100.0
100.0
109
38
152
3
21
0
0
0
0
4
25
4
25
0
0
0
100.0
100.0
1,072
0
1,007
1,007
394
106
507
0
0
65
65
0
100.0
100.0
105
105
0
102
31
62
62
100.0
100.0
100.0
0
0
0
100.0
441
0
3
0
101
0
3
3
363
0
0
3
905
0
0
0
905
15
51
0
0
0
5
66
967
4
27
5
967
0
0
102
Branches ...............................
19
86
100.0
100.0
Massachusetts— all offices . . .
1,722
1,217
505
1,085
1,078
492
76
510
6
1
637
139
498
70.7
99.4
Banks ...................................
.........................
312
167
145
149
143
71
7
65
5
1
163
29
134
139
27
53.5
96.0
Maryland— all offices ............
1,072
Banks ...................................
.........................
Unit Banks
Banks operating branches.
Unit Banks
Banks operating branches.
Branches .............................
M ich ig a n — a ll offices ............
Banks ...................................
........................
19
83
19
83
0
0
0
92
92
0
100.0
100.0
100.0
100.0
100.0
100.0
1,410
1,050
360
936
935
421
69
445
0
474
24
2
22
115
2,373
2,370
3
2,373
2,370
1,101
586
683
3
1
0
0
99.9
99.9
371
0
0
372
372
371
123
79
169
1
0
0
0
0
99.7
99.7
52
260
70
302
19
148
33
112
70
301
0
1
23
126
70
302
17
126
70
301
8
63
13
110
0
7
9
56
5
0
1
1
0
15
64
42
127
0
1
0
0
0
0
0
0
112
359
0
0
36.5
56.9
73.9
100.0
74.5
100.0
99.7
99.9
100.0
99.7
Branches ...............................
2,001
1,999
1,999
978
507
Minnesota— all offices ..........
991
988
3
989
986
315
40
631
1
2
2
2
0
99.7
99.7
Banks ...................................
........................
763
760
3
762
759
32
522
1
1
1
0
99.6
99.6
227
110
Unit Banks
Banks operating branches.
Branches ...............................
Mississippi— all offices..........
Unit Banks
Banks operating branches.
2,001
514
2
0
584
176
3
0
587
175
584
175
132
73
25
7
427
95
1
0
2
2
849
848
1
849
848
304
20
524
183
182
1
183
182
38
5
139
0
0
0
228
36
147
228
35
147
0
227
1
0
35
147
666
3
35
266
8
109
0
0
0
0
0
1
0
1
0
0
0
1
0
0
1
0
0
1
0
0
0
0
0
0
0
0
0
1
99.9
99.9
0
99.5
100.0
100.0
99.5
100.0
0
0
99.9
99.9
0
0
0
0
0
97.2
100.0
100.0
99.5
97.2
100.0
100.0
1
100.0
99.5
100.0
100.0
100.0
0.0
100.0
100.0
21.8
14.7
6.9
16.4
24.3
0.0
0.0
0.0
0.0
0.0
100.0
100.0
0.0
100.0
100.0
0.0
0.0
Branches ...............................
666
666
0
36
147
666
Missouri— all o ffice s...............
1,142
1,136
6
1,142
1,136
170
83
883
0
6
0
0
0
99.5
99.5
Banks ...................................
.........................
727
721
6
727
721
49
49
98
47
22
576
0
0
0
6
6
0
0
0
0
0
0
0
0
0
0
99.2
25
327
249
98.5
100.0
98.5
100.0
0.0
0.0
1
4
15
31
108
385
99.2
0.0
0.0
0.0
0.0
0.0
Unit Banks
Banks operating branches.
404
323
398
323
6
0
404
323
398
323
0
100.0
100.0
0.0
Montana— all o ffice s...............
193
190
3
193
190
68
51
71
0
3
0
0
0
98.4
98.4
0.0
Banks ...................................
........................
165
162
3
165
162
56
45
61
0
3
0
0
0
98.2
98.2
Branches ...............................
Unit Banks
Banks operating branches.
Branches ...............................
138
27
28
415
135
27
28
0
3
0
0
415
138
27
28
415
135
27
28
72
45
11
12
36
39
6
6
307
51
10
10
0
0
0
0
0
3
0
0
0
0
0
0
0
0
0
0
0
0
0
97.8
100.0
100.0
97.8
100.0
100.0
0.0
0.0
0.0
0.0
147
415
BRANCHES
587
176
205
100.0
100.0
AND
Banks ...................................
.........................
2
0.0
OF BANKS
Unit Banks
Banks operating branches.
19
86
0
3
0.0
NUMBER
299
391
1
13
1
5
299
391
4
37
13
42
0
Branches ...............................
4
37
72
190
1 48
Commercial banks and nondeposit trust companies
All banks
NonInsured Insured
Total
State
Banks
of de
p o s it
Non
deposit
trust
com-g
pames
Insured
Total
Non
insured
All
banks
of
de
posit
Com
mercial
banks
of
deposit
Mutual
savings
banks
697
690
7
697
690
290
10
390
0
7
0
0
0
99.0
99.0
0.0
461
454
7
380
81
461
373
81
454
117
79
38
8
7
1
287
42
329
0
0
0
7
0
7
0
0
0
0
0
0
0
0
0
98.2
100.0
98.5
98.2
100.0
98.5
0.0
0.0
380
81
373
81
7
0
236
173
0
100.0
Nevada— all o ffic e s ..........................................................
144
144
0
144
144
107
24
13
0
0
0
0
0
100.0
100.0
0.0
Banks ............................................................................
.....................................................................
.........................................
Branches ........................................................................
9
9
0
9
9
4
1
0
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
New Hampshire— all o ffic e s ...........................................
Banks ............................................................................
.................................................................
.........................................
Branches ........................................................................
201
201
0
New Jersey— all offices...................................................
1,932
1,932
0
Banks ............................................................................
.................................................................
.........................................
Branches ........................................................................
196
196
1,736
29
167
0
1,736
0
0
New Mexico— all o ffic e s .................................................
325
Banks ............................................................................
..................................................................
.........................................
Branches ........................................................................
87
New York— all offices .....................................................
Banks ............................................................................
.................................................................
.........................................
Branches^ ......................................................................
143
271
Unit Banks
Banks operating branches
Unit Banl
Banks operating branches
Unit Banks
Banks operating branches
Unit Banks
Banks operating branches
Unit Banks
Banks operating branches
Unit Banks
Banks operating branches
236
236
0
236
2
61
0
0
0
0
100.0
0.0
0.0
135
3
6
135
0
0
0
135
135
103
23
4
2
2
9
0
100.0
100.0
0.0
306
305
1
227
226
130
7
89
0
1
79
79
0
99.7
99.6
100.0
105
104
1
0
1
24
55
79
78
36
0
0
0
1
1
0
26
8
18
26
0
53
96.9
100.0
98.7
53
0
0
99.0
94
4
2
2
3
38
148
7
29
14
24
148
23
55
95.8
100.0
100.0
100.0
1,730
1,730
1,077
237
416
0
0
202
202
0
100.0
100.0
100.0
176
176
93
15
68
20
100.0
348
0
182
182
100.0
100.0
100.0
222
0
0
100.0
984
3
17
0
1,554
0
0
20
1,554
0
0
0
0
15
53
0
100.0
100.0
324
1
325
324
163
20
141
0
1
0
0
0
99.7
99.7
0.0
86
1
87
86
40
6
2
40
0
1
0
0
0
98.9
98.9
0.0
0.0
3
6
32
73
29
167
31
73
3
6
26
150
21
66
3
6
26
150
20
66
1
3
11
82
10
30
0
15
51
8
32
238
20
66
238
1
0
0
238
238
123
14
101
4,958
4,864
94
3,691
3,597
1,661
1,596
340
83
302
219
116
46
57
11
3,389
3,378
1,545
21
66
414
4,544
331
70
261
4,533
73
10
140
162
67
152
32
84
4
12
34
1,550
23
34
283
0
0
0
0
0
0
0
0
3
17
0
8
18
0
0
100.0
100.0
100.0
95.2
100.0
100.0
100.0
100.0
100.0
100.0
0.0
0
0
0
0
88
6
1,267
1,267
0
98.1
97.5
100.0
77
6
112
112
0
80.0
72.5
100.0
67
10
11
0
6
0
0
0
3
109
1,155
0
3
109
1,155
0
0
0
0
95.2
100.0
100.0
0.0
1
0
0
0
0
100.0
100.0
100.0
49.0
96.3
99.8
100.0
47.9
93.8
99.7
0.0
100.0
100.0
100.0
CO R PO R A TIO N
Banks ............................................................................
..................................................................
.........................................
Branches ........................................................................
INSURANCE
Na
tional
Nebraska— all offices .................................................
Non
mem
bers
F.R.
S ys
tem
Members F.R.
System
Total
DEPOSIT
Total
Percentage insured1
Noninsured
Insured
State and type of bank
or office
Mutual savings banks
FEDERAL
T a b le 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES, (STATES AND OTHER AREAS),
DECEMBER 31, 1979-CONTINUED
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE
Banks ...................................
Unit Banks ........................
Banks operating branches.
Branches ...............................
North Dakota— all o ffic e s ___
Banks ...................................
Unit Banks ........................
Banks operating branches.
Branches ...............................
Ohio— all offices .....................
Banks ...................................
Unit Banks ........................
Banks operating branches.
1,806
1,795
11
83
82
0
1
15
68
15
67
1
0
0
0
99.4
99.4
0.0
0
1
1
0
0
0
0
0
0
0
0
0
0
0
0
100.0
98.5
98.8
100.0
98.5
98.8
0.0
0.0
11
43
1,713
836
5
872
10
295
85
6
204
1
2
0
0
0
99.0
99.0
0.0
175
98
172
298
1
2
128
78
50
1
1
0
2
2
0
0
0
0
0
0
0
98.3
96.9
100.0
98.3
0
0
0
96.9
100.0
0.0
0.0
123
16
25
3
123
95
77
41
0
98
77
172
123
3
0
175
77
123
95
77
2,514
2,513
1
559
0
0
0
0
100.0
100.0
0.0
1
1,519
1
407
2,513
435
408
2,514
408
407
177
93
137
1
0
0
0
0
99.8
99.8
0.0
2,106
1,342
466
298
744
737
376
19
342
5
2
0
0
0
99.1
99.1
0.0
496
489
190
282
5
0
0
0
98.6
98.1
100.0
98.6
100.0
98.1
100.0
0.0
0
0
0
0
2
0
0
0
186
5
0
2
2
100.0
0.0
0.0
7
1
19
19
0
98.8
98.7
100.0
2
2
0
93.9
93.8
100.0
118
290
117
290
3
1
0
0
248
366
130
359
130
248
0
0
650
642
8
82
77
5
35
42
568
565
3,067
387
4
1
30
63
366
130
359
130
116
74
17
631
623
345
6
80
35
40
75
1
5
6
4
1
248
39
41
248
15
2
52
85
228
54
60
0
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
111
64
30
34
208
3
1
1
0
0
17
17
5
4
1
0
2
0
0
0
0
100.0
99.2
100.0
100.0
0
0
89.7
97.7
210
0
9
0
0
2
91.2
99.6
100.0
99.9
100.0
96.0
94.8
100.0
87.0
66.7
85.7
82.4
0.0
100.0
1,661
195
988
11
2
210
367
223
12
132
9
2,678
2
2,479
2,477
1,438
183
856
8
1
2
2
2,680
28
104
9
0
201
201
323
310
13
248
235
122
0
113
12
1
75
75
0
23
20
2
3
17
14
2
0
5
5
0
0
0
9
2
0
2
2
1
0
1
0
6
6
0
6
6
0
0
0
66.7
90.0
3
20
18
1
2
3
14
104
263
12
73
150
3
9
7
2
0
0
9
0
9
0
0
0
0.0
100.0
2,844
378
114
264
0.0
99.5
2,857
11
10
1
0.0
0.0
97.1
13
376
104
272
100.0
0.0
97.2
3,054
114
273
99.2
100.0
0.0
99.6
339
0
100.0
0.0
0.0
100.0
548
3
99.4
89.7
97.6
551
99.5
91.2
99.6
99.9
96.7
99.5
100.0
0.0
100.0
100.0
300
290
10
231
221
117
0
104
10
69
69
772
772
0
772
772
365
18
389
0
0
0
0
0
100.0
100.0
0.0
85
85
0
85
85
18
1
17
60
0
0
0
0
0
100.0
100.0
329
0
Branches ...............................
South Dakota— all o ffic e s ___
Banks ...................................
687
687
0
687
687
347
0
0
313
312
1
313
312
131
43
138
0
1
0
0
155
154
1
155
154
33
27
94
0
1
0
0
Branches ...............................
158
158
98
16
20
65
104
51
20
65
0
0
103
51
1
0
0
20
65
104
51
158
20
65
103
51
158
20
13
18
9
17
43
65
29
44
0
0
0
0
0
0
0
0
0
0
0
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
95.7
100.0
0.0
100.0
100.0
100.0
100.0
0.0
0.0
99.7
99.7
0.0
99.4
99.4
0.0
100.0
99.0
100.0
100.0
100.0
99.0
100.0
100.0
0.0
0.0
0.0
0.0
149
0
99.4
3
7
2
5
11
Unit Banks ........................
Banks operating branches.
0
OF BANKS
39
43
35
142
76
0
BRANCHES
Branches ...............................
Oregon— all o ffic e s .................
Banks ...................................
117
290
3
0
AND
7
7
118
290
2,106
44
0
NUMBER
7
Unit Banks ........................
Banks operating branches.
0.0
1,723
489
Branches ...............................
South Carolina— all offices . . .
Banks ...................................
0
54
1
1
3
737
Unit Banks .........................
Banks operating branches.
11
2
10
744
Unit Banks ........................
Banks operating branches.
926
3
23
295
496
Branches3 .............................
Rhode Island— all o ffic e s ___
Banks ...................................
7
26
15
67
1,713
2,106
Unit Banks ........................
Banks operating branches.
862
82
15
68
298
2,106
Branches3 .............................
Pennsylvania— all o ffic e s ___
Banks ...................................
1,795
83
1,723
Branches ...............................
Oklahoma— all office s ............
Banks ...................................
Unit Banks ........................
Banks operating branches.
1,806
1 50
FEDERAL
NUMBER OF BANKING OFFICES IN THE UNITED STATES, (STATES AND OTHER AREAS),
DECEMBER 31, 1979-CONTINUED
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE
T a b le 103.
Commercial banks and nondeposit trust companies
All banks
Total
Insured
Non
insured
Total
Total
Percentage insured1
Members F.R.
System
State
Banks
of de
p o s it
Non
deposit
trust
companies
Total
Insured
Non
insured
All
banks
of
de
posit
Com
mercial
banks
of
deposit
Mutual
savings
banks
1,344
1,342
2
1,344
1,342
480
60
802
1
1
0
0
0
99.9
99.9
0.0
Banks ............................................................................
..................................................................
.........................................
Branches ........................................................................
352
86
266
350
84
266
2
2
352
350
69
10
271
77
194
1
0
1
1
1
0
0
0
0
0
0
0
0
0
0
97.7
100.0
99.4
97.7
100.0
99.4
0.0
0.0
Texas— all offices ............................................................
1,661
Banks ............................................................................
..................................................................
.........................................
Branches ........................................................................
1,427
0.0
0
84
266
0
100.0
1,656
5
1,661
1,656
669
58
929
5
0
0
0
0
99.7
99.7
0.0
1,223
204
1,422
1,218
204
5
5
0
1,427
1,223
204
1,422
1,218
204
615
568
47
41
27
14
766
623
143
5
5
0
0
0
0
0
0
0
0
0
0
0
0
0
99.6
99.6
0
100.0
99.6
100.0
100.0
0.0
0.0
Utah— all offices ..............................................................
349
347
2
349
347
132
114
101
0
2
0
0
0
99.4
99.4
0.0
Banks ............................................................................
.................................................................
.........................................
Branches ........................................................................
76
74
2
2
76
74
11
16
0
97.4
97.4
0.0
0
0
0
0
98
0
0
0
121
0
0
2
2
273
30
17
0
273
9
7
47
Vermont— all o ffic e s .......................................................
222
Banks ............................................................................
..................................................................
.........................................
Branches ........................................................................
36
186
186
8
27
1
0
0
Virginia— all offices.........................................................
1,606
1,605
Banks ............................................................................
.................................................................
.........................................
Branches .......................................................................
234
61
173
233
1,372
60
173
1,372
1
0
Washington— all offices .................................................
1,187
1,177
Banks ............................................................................
.................................................................
.........................................
Branchess ......................................................................
120
110
10
1,067
1,067
0
Unit Banks
Banks operating branches
Unit Banks
Banks operating branches
Unit Banks
Banks operating branches
Unit Banks
Banks operating branches
Unit Banks
Banks operating branches
992
234
48
28
9
27
42
78
992
234
46
28
0
0
0
992
234
48
28
992
234
46
28
6
63
1
9
86
266
Unit Banks
Banks operating branches
411
54
7
4
50
17
531
163
0
0
0
0
0
0
0
0
0
0
273
273
221
1
189
188
56
1
131
0
1
33
33
0
35
1
30
29
12
0
1
6
6
0
159
44
1
0
16
2
159
4
8
1
0
115
1
1,606
1,605
697
607
1
234
233
72
78
0
1,372
1,372
625
29
49
10
994
984
636
110
100
21
2
884
884
615
32
78
10
0
8
22
61
173
42
68
7
22
60
173
32
68
10
62
19
54
0
0
0
0
95.8
100.0
0.0
0.0
95.8
100.0
0.0
0.0
99.5
99.5
100.0
97.2
96.7
100.0
100.0
100.0
0.0
1
0
301
0
1
0
0
0
99.9
99.9
0.0
83
0
1
0
0
0
0
0
0
0
99.6
98.4
100.0
99.6
100.0
98.4
100.0
100.0
0.0
0.0
0
0
0
0
0
218
0
0
1
529
21
62
8
340
9
1
193
193
0
99.2
99.0
100.0
4
75
9
1
10
10
0
91.7
90.9
100.0
3
1
4
27
48
265
0
0
9
0
0
0
1
0
0
27
0
10
183
1
5
0
0.0
0
0
14
1
5
0
99.6
100.0
100.0
27
0
0
10
183
0
0
0
0
0
0
0
88.9
100.0
100.0
76.2
100.0
100.0
87.5
100.0
100.0
76.2
100.0
100.0
100.0
100.0
100.0
0.0
0.0
0.0
100.0
100.0
CO R PO R A TIO N
Tennessee— all offices ...................................................
INSURANCE
Na
tional
Non
mem
bers
F.R.
Sys
tem
DEPOSIT
State and type of bank
or office
Mutual savings banks
Noninsured
Insured
West Virginia— all o ffic e s ............
Banks .........................................
Unit Banks ...............................
Banks operating branches. . . .
Branches .....................................
Wisconsin— all offices...................
Banks .........................................
Unit Banks ...............................
Banks operating branches. . . .
Unit Banks .................................
Banks operating branches ........
Banks ___
Branchess ...........................
0
0
0
100.0
100.0
0
0
0
0
100.0
100.0
0.0
0.0
0
100.0
100.0
6
788
0
5
3
3
0
99.6
99.6
100.0
473
0
5
3
3
0
99.2
99.2
98.7
100.0
100.0
18
9
100.0
100.0
°0.0
0
24
292
181
315
0
0
0
5
0
0
3
0
0
3
0
0
100.0
0
0
98.8
100.0
0
100.0
100.0
0.0
0.0
19
30
0
0
0
0
0
100.0
100.0
0.0
19
0
19
26
2
28
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
100.0
100.0
100.0
100.0
100.0
100.0
0.0
0.0
0
16
3
0
0
0
0
89.7
89.7
0.0
0
0
1
1
3
0
3
0
0
0
0
0
0
0
0
0
0
0
0
25.0
0.0
100.0
25.0
0.0
100.0
0.0
0.0
0
0
0
0
0
0
0
100.0
100.0
0.0
0
0
0
0
0
0
0
0.0
0.0
0.0
0.0
0.0
0.0
0
0
0
2
15
0
0
0
0
0
0
0
0
0
0
100.0
100.0
100.0
100.0
0.0
0.0
0.0
0.0
0.0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
100.0
100.0
0
207
15
2
0
0
0
93.2
93.2
0.0
0
12
4
8
4
2
6
2
2
0
0
0
0
0
0
0
0
0
40.0
80.0
60.0
40.0
80.0
60.0
0.0
0.0
0
0
6
0
0
0
0
80.0
80.0
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
195
0
0
0
0
9
6
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
96.1
0.0
0.0
100.0
96.1
0.0
0.0
100.0
0.0
0.0
0.0
0.0
0.0
BR AN CHES
Unit Banks ......................
Banks operating branches
0.0
0
AND
Branches 7 ...................................
Virgin Islands — all office s..............
100.0
0
0
'
OF BANKS
Branches6 ...................................
Puerto Rico— all offices ...............
Banks .........................................
100.0
0
99
NUMBER
Unit Banks .................................
Banks operating branches........
0
0
0
27
0
Branchess ...................................
Canal Zone— all office s................
Banks .........................................
0
0
49
Branches .....................................
Unit Banks ................................
Banks operating branches. . . .
0
0
0
75
24
22
OTHER AREAS
Pacific Is.— all offices4 ................
Banks .......................................
0
0
123
29
Branches .....................................
Wyoming— all offices ...................
Banks .........................................
Unit Banks ................................
Banks operating branches........
0
0
0
35
23
6
1 52
NUMBER OF BANKING OFFICES IN THE UNITED STATES, (STATES AND OTHER AREAS),
DECEMBER 31, 1 9 7 9 -C 0 N T IN U E D
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE
' Nondeposit trust companies are excluded in com puting these percentages.
29 noninsured branches ofjn su red banks are included with parent banks— 7 in the Pacific Islands and 2
in the Canal Zone.
3 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 nonmem ber 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.
W ashington— 3 branches operated by a national bank in California.
4 United States possessions— American Samoa, Guam, Midway Islands and Northern Mariana Islands.
Trust Territo ries— Caroline Islands and Marshall Islands.
5 Pacific Islands— 23 branches— Deposits are insured only where indicated.
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.
Northen 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.
6 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.
7Puerto Rico— 25 insured branches operated by 2 national banks in New York, and a national bank in California.
8 Virgin Islands— 24 insured branches operated by 2 national banks in New York, a national bank in California, and a national bank in
Pennsylvania.
’ includes noninsured nondeposit trust companies— members of Federal Reserve System.
FEDERAL DEPOSIT INSURANCE CORPORATION
Table 103.
T a b le 104. NUMBER AND ASSETS OF ALL COMMERCIAL AND MUTUAL SAVINGS BANKS
IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1979
BANKS GROUPED BY CLASS AND ASSET SIZE
(In thousands of dollars)
Insured co m m e rcia l banks
A s se t S ize
All
banks
M em bers F.R . S ystem
Total
National
State
N o n m em b ers
F. R. S ystem
N on
insured
banks
and tru st
com p an ies
N on
insured
Insured
_
L e s s than $ 5 .0 m illio n . . .
$ 5 .0 to 9 .9 m illio n .............
$ 1 0 .0 to 2 4 .9 m illio n . . . .
$ 2 5 .0 to 4 9 .9 m illio n ___
$ 5 0 .0 to 9 9 .9 m illio n ___
$ 1 0 0 .0 to 2 9 9 .9 m illio n ..
$ 3 0 0 .0 to 4 9 9 .9 m illio n ..
$ 5 0 0 .0 to 9 9 9 .9 m illio n ..
$ 1 .0 to 4 .9 b i l l i o n .............
$ 5 .0 b illion or m ore .........
1 ,15 6
2 ,1 4 9
4 ,7 6 0
3 ,4 1 8
1 ,87 4
1 ,20 9
218
194
193
30
830
2,12 8
4 ,7 2 8
3,371
1,764
1,051
171
149
144
28
91
327
1,249
1,201
760
534
85
85
98
18
50
119
293
227
115
99
17
23
24
10
689
1,682
3 ,1 8 6
1,943
889
418
69
41
22
-
274
19
17
7
8
22
7
9
11
-
2
10
23
81
98
35
35
38
2
Total b a n k s ................
15,201
14,364
4,448
977
8,939
374
324
139
52
5
17
21
38
5
1
-
Amount of assets
L ess than $ 5 .0 m illio n . . .
$ 5 .0 to 9.9 m illio n ...........
$ 1 0 .0 to 2 4 .9 m illio n ___
$ 2 5 .0 to 4 9 .9 m illio n . . . .
$ 5 0 .0 to 9 9 .9 m illio n ___
$ 1 0 0 .0 to 2 9 9 .9 m illio n ..
$ 3 0 0 .0 to 4 9 9 .9 m illio n . . .
$ 5 0 0 .0 to 9 9 9 .9 m illio n ..
$ 1 .0 to 4 .9 b i l l i o n .............
$ 5 .0 b illion or m ore
3 ,2 6 3 ,5 4 3
1 6 ,2 7 9 ,4 6 6
7 9 ,5 5 1 ,0 2 8
1 2 1 ,0 9 5 ,4 5 4
13 0 ,2 9 3 ,1 1 1
1 9 5 ,3 3 5 ,3 8 2
8 5 ,6 0 1 ,0 5 8
1 3 2 ,2 7 0 ,3 1 8
3 8 6 ,3 0 7 ,2 1 9
4 4 0 ,8 9 5 ,7 7 4
Total assets .............
1,590,892,353
3 ,01 2 ,79 2
1 6 ,1 3 0 ,7 2 9
7 9 ,0 2 8 ,6 0 7
1 1 9 ,2 4 7 ,3 7 0
1 2 2 ,1 5 4 ,5 4 0
1 6 7 ,8 8 8 ,3 6 7
6 7 ,0 4 2 ,7 5 6
1 00 ,0 6 0 ,0 9 8
2 9 7 ,3 5 8 ,2 3 4
4 2 9 ,0 2 6 ,8 6 2
352,930
2 ,5 0 4 ,7 4 6
2 1 ,6 2 2 ,6 8 4
4 3 ,0 0 0 ,6 4 4
5 2 ,8 2 5,5 5 2
8 6 ,6 8 8 ,7 0 5
3 3 ,6 9 7 ,5 5 5
58,499,271
2 0 8 ,5 9 0 ,6 0 6
2 8 4 ,4 7 3 ,6 0 6
176 ,9 19
9 2 0 ,6 7 7
4 ,9 0 2 ,1 7 5
8 ,0 0 6 ,5 5 4
8 ,0 1 7 ,8 5 8
1 6 ,4 5 7 ,2 2 4
6 ,6 2 4 ,5 2 7
1 5 ,1 4 7 ,4 3 0
5 1 ,6 7 4 ,8 2 0
1 4 4 ,5 5 3 ,2 5 6
2 ,4 8 2 ,9 4 3
1 2 ,7 0 5 ,3 0 6
5 2 ,5 0 3 ,7 4 8
6 8 ,2 4 0 ,1 7 2
6 1 ,3 1 1 ,1 3 0
6 4 ,7 4 2 ,4 3 8
2 6 ,7 2 0 ,6 7 4
2 6 ,4 1 3 ,3 9 7
3 7 ,0 9 2 ,8 0 8
0
250,751
1 33 ,0 65
2 5 5 ,2 5 8
2 5 5 ,2 6 6
6 2 1 ,9 2 5
4 ,2 2 2 ,6 3 9
2 ,9 4 2 ,0 1 2
5 ,6 7 2 ,0 0 5
1 7 ,7 2 9 ,7 6 5
0
0
1 5,6 7 2
1 72 ,8 04
9 4 0 ,0 1 6
5 ,9 4 2 ,5 9 8
1 7 ,1 0 2 ,6 0 2
1 3,8 5 9,7 4 1
2 5 ,9 9 0 ,9 1 6
7 1 ,2 1 9 ,2 2 0
1 1 ,8 6 8 ,9 1 2
0
0
9 4 ,3 5 9
6 52 ,8 0 2
1 ,5 7 4 ,0 4 8
6 ,1 2 1 ,7 7 4
1 ,7 5 6 ,5 4 9
5 4 7 ,2 9 9
0
0
1,400,950,3551
792,256,299
256,481,440
352,212,616
32,082,686
147,112,481
10,746,831
BRANCHES
(In th ou san ds of do llars)
NUMBER OF BANKS AND
Number of banks
M u tu al s a v in g s banks
1 D o m e stic assets only; does not in clud e assets of branches of U .S . banks in “ Other a rea s.’ ’
153
1 54
Ta b le 105.
NUMBER, ASSETS, AND DEPOSITS OF ALL COMMERCIAL BANKS1 IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER 31, 1979
BANKS GROUPED BY ASSET SIZE AND STATE
(Amounts in thousands of dollars)
Banks with assets of—
3,378
119,502,636
106,394,041
1,772
122,684,142
108,032,593
1,071
171,568,942
145,745,509
37
283,426
249,723
135
2,215,476
1,971,297
85
2,834,891
2,509,161
27
1,726,650
1,540,939
0
0
0
0
0
0
0
0
0
2
73,500
63,954
27
12,156,670
10,346,952
6
6,108
796
5
35,562
29,322
7
112,335
98,471
261
10,257,546
8,756,869
11
25,902
21,550
29
211,267
186,811
257
219,253,018
177,782,960
16
19,612
7,086
410
15,145,608
12,619,107
$1.0 billion
to
$4.9 billion
$5.0 billion
or
more
178
69,855,601
57,363,728
157
105,606,570
84,230,096
153
311,937,592
234,959,875
33
724,077,442
552,398,561
13
2,243,168
1,952,060
1
407,995
352,245
5
3,116,329
2,545,282
2
2,905,775
2,287,180
0
0
0
5
347,156
289,560
3
517,623
403,289
1
437,565
332,779
1
604,774
474,428
0
0
0
0
0
0
1
37,548
34,715
2
180,665
156,828
1
260,582
235,730
1
479,710
425,111
1
616,593
538,436
2
5,095,397
4,490,170
1
5,332,170
4,337,373
104
1,682,872
1,505,707
70
2,527,258
2,254,499
28
1,883,952
1,647,741*
15
2,241,060
1,921,831
3
1,084,330
791,820
1
600,905
426,910
0
0
0
0
0
0
25
185,812
142,907
57
967,632
823,327
56
2,061,487
1,806,362
38
2,729,454
2,419,747
40
7,025,326
6,277,297
4
1,397,433
1,162,832
10
6,654,355
5,785,548
5
12,143,219
9,989,224
6
186,068,688
149,368,630
110
284,168
193,719
57
424,083
348,136
128
2,096,004
1,852,527
59
2,144,665
1,861,776
31
2,133,243
1,893,496
21
3,067,958
2,611,188
0
0
0
2
1,646,581
1,301,919
2
3,348,906
2,556,346
0
0
0
65
12,944,890
10,802,700
1
4,975
4,445
2
14,567
12,682
20
363,198
318,311
18
642,629
564,673
10
772,653
678,651
6
996,687
830,121
0
0
0
4
2,608,683
2,252,736
4
7,541,498
6,141,081
0
0
0
20
3,678,731
2,746,869
2
3,082
1,908
2
12,250
10,803
6
86,616
78,420
3
88,036
76,116
1
69,481
61,079
2
300,941
97,039
1
459,359
404,321
2
1,266,439
1,076,220
1
1,392,527
940,963
0
0
0
17
7,815,939
6,353,506
0
0
0
0
0
0
4
61,004
51,425
2
98,605
85,183
3
169,459
147,961
3
373,179
319,574
0
0
0
3
2,123,535
1,715,468
2
4 ,990,157
4,033,895
0
0
0
14,738
1,724,008,628
1,377,037,113
1,104
3,263,543
2,691,883
2,147
16,263,794
14,411,928
317
15,785,089
13,450,183
12
51,379
42,296
12
1,980,618
1,564,010
Total United States and
other areas2
Banks .....................................
Total assets3 ..........................
Total deposits3 ......................
States
Alabama
Banks .....................................
A s s e ts .....................................
D e p o s its .................................
Alaska
Banks .....................................
A s s e ts .....................................
D e p o s its .................................
Arizona
Banks .....................................
A s s e ts .....................................
D e p o s its .................................
Arkansas
Banks .....................................
A s s e ts .....................................
D e p o s its ....................................
California
Banks .....................................
A s s e ts .....................................
D e p o s its ................................
Colorado
Banks .....................................
Assets ...................................
D e p o s its .................................
Connecticut
Banks .....................................
Assets
..................
D e p o s its .................................
Delaware
Banks .....................................
A s s e ts .....................................
D e p o s its ................................
District of Columbia
Banks .....................................
A s s e ts .....................................
D e p o s its ................................
CO R PO R A TIO N
4,745
79,248,366
70,808,899
$300.0 million $500.0 million
to
to
$499.9 million $999.9 million
INSURANCE
$100.0 million
to
$299.9 million
DEPOSIT
$50.0 million
to
$99.9 million
$5.0 million
to
$9.9 million
FEDERAL
State
$10.0 million $25.0 million
to
to
$24.9 million $49.9 million
Less
than
$5 million
All
banks
Florida
Banks .....................................
A s s e ts .....................................
D e p o s its .................................
Gef f i ...............................
A s s e ts .....................................
D e p o s its .................................
154
5,580,150
5,010,029
100
7,032,247
6,247,658
86
13,538,349
11,861,984
14
5,427,292
4,603,399
7
4,465,723
3,458,160
1
2,873,651
2,096,651
0
0
0
439
22,007,377
17,681,430
31
101,461
90,059
74
563,399
499,702
175
2,969,392
2,646,840
107
3,727,107
3,299,742
25
1,608,666
1,401,327
21
3,161,237
2,715,920
2
790,266
643,956
0
0
0
4
9,085,849
6,383,884
0
0
0
12
4,923,877
4,386,548
0
0
0
1
6,209
4,809
3
53,190
23,578
1
37,085
33,471
0
0
0
3
552,200
503,010
2
756,750
676,076
0
0
0
2
3,518,443
3,145,604
0
0
0
27
4,609,205
3,904,198
2
6,306
3,209
1
7,021
5,904
10
145,575
130,226
5
168,805
152,622
3
183,106
150,204
2
276,780
243,155
1
349,110
294,784
1
564,808
478,389
2
2,907,694
2,445,705
0
0
0
1,288
135,839,141
103,072,156
87
261,562
219,669
179
1,353,425
1,202,231
427
7,059,256
6,320,759
277
10,037,308
8,876,699
177
12,420,037
10,676,424
120
18,979,266
15,164,668
12
4,725,525
3,262,911
3
1,797,621
906,925
2
3,572,102
2,676,596
4
75,633,039
53,765,274
406
30,510,757
25,443,803
5
9,680
7,954
33
255,955
224,343
117
2,097,839
1,902,448
116
4,132,171
3,689,628
72
5,056,815
4,491,692
49
7,626,919
6,562,420
8
3,105,432
2,536,732
3
1,853,135
1,465,623
3
6,372,811
4,562,963
0
0
0
657
19,699,559
17,037,523
26
78,758
69,428
140267
1,073,507
965,090
155
4,358,214
3,924,042
5,497,143
4,913,597
44
3,071,531
2,711,421
20
2,945,042
2,466,096
3
1,274,172
976,525
2
1,401,192
1,011,324
0
0
0
0
0
0
617
15,289,420
13,164,468
89
293,310
261,920
162
1,176,730
1,063,309
200
3,238,155
2,913,637
106
3,706,816
3,313,702
44
2,929,534
2,547,741
13
2,292,277
1,750,813
2
823,104
668,497
1
829,494
644,849
0
0
0
0
0
0
343
17,878,453
15,006,109
21
76,532
66,752
35
283,990
254,016
119
1,971,124
1,766,270
99
3,424,750
3,074,974
41
2,795,733
2,487,374
21
2,775,126
2,426,587
3
1,173,376
893,812
2
1,557,602
1,211,846
2
3,820,220
2,824,478
0
0
0
262
21,810,824
18,542,796
6
23,384
19,391
19
156,818
136,890
65
1,166,939
1,041,615
83
3,084,541
2,779,072
51
3,412,639
3,045,403
23
4,119,361
3,645,928
7
2,900,234
2,437,746
6
4,192,060
3,338,990
2
2,754,848
2,097,761
0
0
0
41
3,221,582
2,748,345
0
0
0
2
15,249
13,087
7
110,703
98,215
15
479,940
425,087
10
661,023
575,579
4
810,221
676,268
3
1,144,446
960,109
0
0
0
0
0
0
0
0
0
102
15,489,968
12,989,067
2
8,880
5,625
10
78,500
69,267
27
472,434
422,168
27
987,458
880,827
18
1,246,928
1,115,607
10
1,340,339
1,203,095
1
300,053
265,077
2
1,189,078
993,776
5
9,866,298
8,033,625
0
0
0
149
32,264,127
24,372,293
6
9,512
5,034
4
28,513
25,531
37
625,679
543,380
29
1,060,243
919,957
34
2,451,058
2,019,380
26
4,013,583
3,250,712
4
1,556,828
1,320,540
4
2,325,966
1,956,039
4
7,818,752
5,604,436
1
12,373,993
8,727,284
Hawaii
Banks .....................................
A s s e ts .....................................
D e p o s its .................................
Idaho
Banks .....................................
A s s e ts .....................................
D e p o s its .................................
Illinois
Banks .....................................
A s s e ts .....................................
D e p o s its .................................
Indiana
Banks .....................................
A s s e ts .....................................
D e p o s its .................................
Iowa
Banks .....................................
A s s e ts .....................................
D e p o s its .................................
Kansas
Banks .....................................
A s s e ts .....................................
D e p o s its .................................
Kentucky
Banks .....................................
A s s e ts .....................................
D e p o s its .................................
Louisiana
Banks .....................................
A s s e ts .....................................
D e p o s its .................................
Maine
Banks .....................................
A s s e ts .....................................
D e p o s its .................................
Maryland
Banks .....................................
A s s e ts .....................................
D e p o s its .................................
Massachusetts
Banks .....................................
A s s e ts .....................................
D e p o s its .................................
155
BRANCHES
166
2,922,035
2,594,821
AND
40
310,021
268,874
OF BANKS
17
41,281
25,000
NUMBER
585
42,190,749
36,166,576
1 56
T a b le 105.
N U M B E R , A S S E T S , A N D D E P O S I T S O F A L L C O M M E R C I A L B A N K S IN T H E U N I T E D S T A T E S ( S T A T E S A N D O T H E R A R E A S ) ,
DECEMBER 31, 1 9 79-C O N T IN U E D
BANKS GROUPED BY ASSET SIZE AND STATE
(Amounts in thousands of dollars)
Banks with assets o f—
State
$25.0 m illion
to
$49 .9 m illion
$ 5 0 .0 m illion
to
$ 9 9 .9 m illion
$ 10 0.0 m illion
to
$ 2 9 9 .9 m illion
$ 30 0.0 m illion
to
$ 4 9 9 .9 m illion
$ 5 0 0 .0 m illion
to
$ 9 9 9 .9 m illion
$ 1 .0 billion
to
$ 4 .9 billion
372
5 0 ,2 1 9 ,0 7 3
4 1 ,2 4 3 ,8 6 9
6
1 9,6 3 0
1 3,4 8 5
24
192,852
166,902
98
1 ,68 4 ,80 6
1 ,51 0 ,11 0
104
3 ,70 1 ,22 2
3 ,31 3 ,10 5
67
4 ,7 2 4 ,0 8 3
4 ,2 3 8 ,6 7 9
53
8 ,9 7 6 ,3 5 5
7 ,94 7 ,81 1
6
2 ,3 5 3 ,7 8 8
2 ,0 5 8 ,4 7 3
5
2 ,9 5 0 ,8 1 8
2 ,5 5 0 ,1 8 7
8
1 6 ,5 9 9 ,9 9 7
1 2 ,8 4 1 ,4 6 5
1
9 ,0 1 5 ,5 2 2
6 ,6 0 3 ,6 5 2
762
2 8 ,4 1 2 ,5 9 0
2 2 ,9 2 7 ,1 0 2
62
23 2 ,7 3 7
2 0 6 ,6 1 0
208
1,550,231
1 ,40 5 ,68 0
283
4,66 5 ,00 8
4,1 9 9 ,0 6 7
131
4 ,59 8 ,04 7
4 ,08 3 ,69 2
54
3 ,7 4 7 ,2 9 7
3 ,3 3 7 ,4 7 8
18
2 ,7 4 6 ,2 2 0
2 ,3 5 5 ,4 4 8
3
1 ,0 5 7 ,4 5 8
7 5 8 ,7 4 7
0
0
0
3
9 ,8 1 5 ,5 9 2
6 ,5 8 0 ,3 8 0
0
0
0
183
1 0 ,5 8 4 ,7 9 2
9 ,1 9 7 ,7 8 3
4
14,272
8 ,4 0 2
18
137,577
122,022
67
1,11 3 ,58 8
1,005,541
49
1,674,962
1,509,953
29
1 ,9 3 2 ,6 9 4
1 ,7 2 7 ,1 8 7
9
1 ,2 6 0 ,7 9 0
1 ,1 3 1 ,5 5 8
5
1 ,7 5 3 ,0 7 8
1 ,5 5 2 ,4 4 2
0
0
0
2
2 ,6 9 7 ,8 3 1
2 ,1 4 0 ,6 7 8
0
0
0
727
3 2 ,4 8 5 ,5 6 3
2 5 ,8 4 1 ,7 5 2
72
2 4 4 ,7 5 6
2 1 2 ,0 3 6
137
1 ,03 5 ,88 5
925,428
244
4 ,0 6 3 ,3 4 2
3 ,64 3 ,08 3
160
5,62 9 ,83 8
5 ,01 6 ,13 7
77
5 ,2 8 9 ,0 2 4
4 ,6 3 5 ,6 4 6
30
5 ,1 7 2 ,9 8 8
4 ,2 1 0 ,3 1 0
1
4 2 3 ,2 9 7
3 7 1 ,5 1 2
1
9 8 0 ,6 7 6
6 7 8 ,2 2 7
5
9 ,6 4 5 ,7 5 7
6 ,1 4 9 ,3 7 3
0
0
0
165
4 ,89 1 ,11 1
4,32 1 ,14 1
9
2 4 ,5 5 6
2 0 ,0 1 7
26
193,907
172,970
75
1,18 4 ,45 2
1,06 6 ,79 6
35
1,24 6 ,15 0
1,123,078
12
9 5 0 ,5 7 8
8 3 1 ,7 9 4
8
1 ,2 9 1 ,4 6 8
1 ,1 0 6 ,4 8 6
0
0
0
0
0
0
0
0
0
0
0
0
461
1 0 ,5 0 2 ,8 6 5
8 ,9 6 1 ,5 5 8
101
3 2 5 ,1 3 6
2 86 ,4 37
123
916,242
823 ,3 18
150
2,48 0 ,26 4
2 ,21 1 ,24 4
53
1 ,755,016
1,542,529
25
1 ,7 2 6 ,3 2 8
1 ,5 1 8 ,4 5 4
4
4 9 7 ,3 1 9
4 3 6 ,6 7 6
3
1 ,3 2 5 ,7 1 7
1 ,0 6 6 ,7 4 9
2
1 ,4 7 6 ,8 4 3
1 ,07 6 ,15 1
0
0
0
0
0
0
9
3 ,6 3 1 ,5 0 7
3 ,1 2 6 ,8 5 8
2
6,061
3 ,5 2 5
0
0
0
1
16,919
13,521
0
0
0
0
0
0
2
2 6 4 ,5 8 7
2 3 6 ,0 2 4
2
7 9 9 ,9 7 8
6 7 8 ,2 9 2
1
7 8 0 ,6 2 2
6 6 3 ,5 4 0
1
1 ,7 6 3 ,3 4 0
1 ,5 3 1 ,9 5 6
0
0
0
79
3 ,0 2 3 ,1 5 8
2 ,6 4 4 ,8 4 3
4
12,2 0 3
1 0,4 6 6
10
7 5,550
67,042
25
4 52 ,8 18
401 ,4 13
23
789,767
694,190
11
7 0 1 ,5 1 4
6 0 9 ,5 2 7
6
9 9 1 ,3 0 6
8 6 2 ,2 0 5
0
0
0
0
0
0
0
0
0
0
0
0
176
3 4,3 0 7,3 4 1
2 8 ,9 6 8 ,8 6 8
1
1,761
1 ,17 0
0
0
0
23
4 08 ,6 99
358 ,3 00
49
1,788,943
1 ,579,380
33
2 ,1 8 4 ,5 7 4
1 ,9 5 6 ,0 2 6
38
5 ,9 3 4 ,4 5 0
5 ,2 0 2 ,4 4 9
9
3 ,6 4 4 ,7 4 1
3 ,1 7 7 ,9 8 2
17
1 1 ,7 1 9 ,7 4 7
9 ,9 6 6 ,5 0 9
6
8 ,6 2 4 ,4 2 6
6 ,7 2 7 ,0 5 2
0
0
0
87
5 ,4 2 2 ,7 1 4
4 ,7 2 6 ,8 1 9
2
4 ,3 8 0
3 ,6 4 5
5
39,802
34,4 8 5
23
4 17 ,7 26
369 ,3 57
33
1,262,604
1,140,115
16
1 ,3 1 3 ,0 2 7
1 ,1 7 3 ,6 3 3
6
9 9 4 ,9 9 2
8 7 2 ,7 9 0
0
0
0
2
1 ,3 9 0 ,1 8 3
1 ,1 3 2 ,7 9 4
0
0
0
0
0
0
302
435,2 75 ,7 61
326,5 74 ,2 31
57
3 7,1 1 0
31,2 9 8
9
66,228
56,453
50
8 71,573
7 44,040
44
1,608,731
1,360,856
35
2 ,5 4 8 ,1 7 8
2 ,1 2 6 ,9 2 4
46
7 ,5 5 0 ,6 9 5
5 ,6 6 8 ,6 6 6
12
4 ,7 2 7 ,9 9 2
3 ,4 0 1 ,8 0 0
19
1 3 ,5 8 0 ,6 5 3
9 ,1 2 7 ,9 7 7
21
4 8 ,1 8 5 ,7 2 8
3 3 ,3 7 3 ,4 9 4
9
3 5 6 ,0 9 8 ,8 7 3
2 7 0 ,6 8 2 ,7 2 3
Minnesota
Banks ........................................
A s s e t s ........................................
D e p o s it s ...................................
Mississippi
Banks ........................................
A s s e t s ........................................
D e p o s it s ...................................
Missouri
Banks ........................................
A s s e t s ........................................
D e p o s it s ...................................
Montana
Banks ........................................
A s s e t s ........................................
D e p o s it s ...................................
Nebraska
B anks ........................................
A sse ts .....................................
D e p o s it s ...................................
Nevada
B anks ........................................
A s s e t s ........................................
D e p o s it s ...................................
New Hampshire
B anks ........................................
A s s e t s .......................................
D e p o s it s ...................................
New Jersey
Banks ........................................
A s s e t s .......................................
D e p o s it s ...................................
New Mexico
Banks .......................................
A s s e t s .......................................
D e p o s it s ...................................
New York
Banks .......................................
A sse ts
.................................
D e p o s it s ...................................
FEDERAL DEPOSIT INSURANCE CORPORATION
$ 5 .0 m illion
to
$ 9 .9 m illion
All
banks
Michigan
B anks ........................................
A s s e t s ........................................
D e p o s it s ...................................
$ 5 .0 billion
or
m ore
L ess
than
$5 m illion
$ 10 .0 m illion
to
$ 24 .9 m illion
North Carolina
B anks ........................................
A s s e t s .......................................
D e p o s it s ...................................
83
2 3 ,5 2 5 ,6 8 4
1 8 ,8 6 4 ,6 2 9
4
12,975
10,542
6
45,6 4 0
3 7,939
20
328,341
287,283
21
773 ,1 14
675 ,6 40
14
1 ,0 1 4 ,4 1 8
8 7 9 ,6 6 0
5
1 ,0 2 2 ,8 4 5
8 89,651
5
1 ,7 8 6 ,0 8 6
1 ,5 4 8 ,4 9 4
3
1 ,6 3 9 ,1 0 5
1 ,4 3 1 ,5 2 7
3
5 ,9 6 9 ,4 0 0
4 ,7 8 1 ,9 0 7
2
1 0 ,9 3 3 ,7 6 0
8 ,3 2 1 ,9 8 6
175
4 ,8 7 0 ,6 3 8
4 ,1 5 6 ,5 6 8
10
2 9,730
23,623
34
258 ,0 29
232 ,5 15
87
1 ,41 8 ,54 6
1 ,272,023
26
930 ,8 88
8 16 ,0 26
10
7 1 2 ,9 8 0
6 2 9 ,8 7 3
7
8 8 1 ,2 9 4
7 7 4 ,7 6 3
0
0
0
1
639,171
4 0 7 ,7 4 5
0
0
0
0
0
0
4 08
5 2 ,9 0 1 ,8 5 8
4 1 ,7 3 3 ,1 1 8
5
17,703
15,790
44
3 24,393
284,603
117
1,983,141
1,769,934
98
3 ,3 1 1 ,6 3 4
2 ,93 5 ,84 3
63
4 ,2 3 7 ,1 0 3
3 ,6 8 5 ,3 9 8
55
8 ,5 1 4 ,5 1 7
7 ,2 5 1 ,8 9 4
7
2 ,7 3 5 ,7 2 7
2 ,2 5 8 ,2 2 3
8
5 ,4 0 3 ,3 0 2
4 ,3 9 2 ,0 4 3
11
2 6 ,3 7 4 ,3 3 8
1 9 ,1 3 9 ,3 9 0
0
0
0
496
1 9,7 1 8,8 7 1
1 6,8 4 1,4 7 3
48
1 52,078
128,586
114
858 ,0 10
760,738
148
2 ,38 7 ,64 9
2 ,149,565
108
3 ,7 0 2 ,3 1 3
3,31 8 ,45 2
53
3 ,5 2 9 ,1 3 7
3 ,1 1 9 ,8 4 2
19
2 ,8 5 4 ,7 2 0
2 ,4 8 0 ,2 8 5
1
359,151
3 1 0 ,8 1 0
1
5 7 1 ,7 6 4
4 5 3 ,3 8 9
4
5 ,3 0 4 ,0 4 9
4 ,1 1 9 ,8 0 6
0
0
0
80
1 2 ,6 1 3,5 9 8
1 0 ,3 4 9,1 0 8
14
34,026
22,182
15
120,682
98,363
21
3 29,323
2 92,526
14
497 ,3 19
444,083
6
4 2 3 ,5 9 7
376 ,4 74
5
7 7 9 ,9 6 5
6 9 3 ,6 9 0
2
780 ,6 73
6 9 2 ,6 5 7
1
7 15 ,1 62
6 0 7 ,4 8 9
2
8 ,93 2 ,85 1
7 ,1 2 1 ,6 4 4
0
0
0
378
8 5 ,0 0 2 ,2 3 8
6 7 ,3 6 6 ,6 7 3
6
6,301
676
25
190,559
161,051
94
1,634,427
1,446,088
85
3 ,1 3 0 ,7 2 5
2 ,79 6 ,25 3
78
5 ,3 8 6 ,5 6 0
4 ,8 0 9 ,7 6 0
52
8 ,5 8 6 ,7 9 2
7 ,6 3 8 ,1 7 4
13
5 ,2 0 7 ,2 9 5
4 ,4 5 8 ,6 5 0
11
7 ,0 5 5 ,3 5 8
6 ,0 8 4 ,6 3 0
10
2 1 ,1 6 4 ,8 8 3
1 6 ,8 7 7 ,1 8 5
4
3 2 ,6 3 9 ,3 3 8
2 3 ,0 9 4 ,2 0 6
17
6 ,3 7 8 ,0 4 6
5 ,0 3 7 ,0 5 8
3
1,492
1,157
0
0
0
5
76,561
65,076
2
63,6 4 8
55,091
1
56,3 9 0
5 0 ,3 7 4
3
4 8 6 ,5 5 2
4 1 0 ,3 6 8
0
0
0
0
0
0
3
5 ,6 9 3 ,4 0 3
4 ,4 5 4 ,9 9 2
0
0
0
85
6 ,9 6 5 ,3 0 2
5 ,8 1 0 ,1 4 3
8
33,454
27,922
9
65,719
57,207
35
5 78,440
505,638
15
534 ,5 57
4 63 ,4 16
10
729,451
6 3 4 ,6 4 8
3
5 6 2 ,6 3 4
5 0 3 ,1 9 3
1
4 1 1 ,0 0 9
3 6 7 ,8 8 5
3
2 ,6 0 3 ,3 5 3
2 ,1 1 2 ,6 6 4
1
1 ,4 4 6 ,6 8 5
1 ,1 3 7 ,5 7 0
0
0
0
155
4 ,6 7 5 ,3 9 2
4 ,1 8 3 ,8 2 0
21
8 5,640
74,966
39
303,598
2 73,612
59
885,273
799,464
17
550 ,4 25
4 93 ,3 54
12
8 3 5 ,5 3 0
7 5 2 ,6 5 7
5
1 ,0 1 8 ,3 0 4
8 9 7 ,8 4 8
1
4 4 6 ,5 5 8
3 9 6 ,2 9 4
1
5 50 ,0 64
4 9 5 ,6 2 5
0
0
0
0
0
0
352
2 2 ,0 5 6 ,5 7 5
1 8 ,6 4 4 ,7 6 3
15
4 8,968
43,2 4 9
45
347 ,3 87
310 ,1 15
117
1,953,761
1,766,364
92
3 ,1 8 8 ,2 0 0
2 ,8 5 4 ,9 4 4
52
3 ,6 3 7 ,7 4 5
3 ,2 4 3 ,4 7 4
21
3 ,1 1 4 ,1 8 0
2 ,7 3 2 ,4 9 8
2
9 1 2 ,0 3 0
7 3 4 ,2 0 2
3
1 ,9 4 4 ,6 6 7
1 ,5 7 9 ,5 8 3
5
6 ,9 0 9 ,6 3 7
5 ,3 8 0 ,3 3 4
0
0
0
Banks .......................................
A s s e t s .......................................
D e p o s it s ...................................
1 ,427
1 0 2 ,8 3 9 ,9 2 4
8 5 ,2 7 0,2 1 1
86
2 92,960
248,461
203
1 ,57 7 ,34 5
1 ,398,045
440
7,418,671
6 ,64 7 ,66 6
375
1 3,2 5 5,7 5 3
11,915,341
193
1 3 ,5 5 0 ,5 2 6
1 2 ,1 8 0 ,0 7 8
90
1 4 ,3 4 2 ,4 2 4
1 2 ,6 3 3 ,1 1 5
19
7 ,2 8 4 ,4 1 4
6 ,0 8 0 ,3 6 2
10
6 ,7 1 8 ,7 3 4
5 ,3 4 9 ,7 1 8
7
1 0,7 8 1,2 7 1
7 ,9 5 9 ,8 6 8
4
2 7 ,6 1 7 ,8 2 6
2 0 ,8 5 7 ,5 5 7
Utah
B anks ........................................
A s s e t s ........................................
D e p o s it s ...................................
76
6 ,3 3 3 ,5 7 8
5 ,4 1 3 ,4 8 5
15
36,192
26,611
17
121,259
104,180
24
387,580
344,613
9
330 ,4 64
297 ,4 70
3
214,001
1 90 ,3 9 0
3
6 1 1 ,1 4 6
5 1 6 ,9 8 9
2
8 1 2 ,7 8 7
7 0 6 ,0 8 5
1
7 4 7 ,8 7 8
651,761
2
3 ,07 2 ,27 1
2 ,5 7 5 ,3 8 6
0
0
0
30
2 ,2 1 2 ,5 8 5
1 ,9 8 8 ,7 2 8
2
3,363
2,830
3
20,036
17,725
4
79,457
70,783
12
4 04 ,3 20
3 67 ,1 48
2
1 26 ,7 8 9
114,271
5
8 9 6 ,9 3 3
8 0 5 ,5 6 5
2
6 8 1 ,6 8 7
6 1 0 ,4 0 6
0
0
0
0
0
0
0
0
0
North Dakota
B anks ........................................
A s s e t s .......................................
D e p o s it s ...................................
Ohio
Ban ks .......................................
A s s e t s .......................................
D e p o s it s ...................................
Oklahoma
B anks .......................................
A s s e t s ........................................
D e p o s it s ...................................
Oregon
Pennsylvania
Banks .......................................
A s s e t s ........................................
D e p o s it s ...................................
Rhode Island
Banks ........................................
A s s e t s ........................................
D e p o s it s ...................................
South Carolina
B anks ........................................
A s s e t s ........................................
D e p o s it s ...................................
B anks ........................................
A s s e t s ........................................
D e p o s it s ...................................
Tennessee
Banks ........................................
A s s e t s ........................................
D e p o s it s ...................................
BRANCHES
South Dakota
NUMBER OF BANKS AND
Banks ........................................
A s s e t s ........................................
D e p o s it s ...................................
Texas
Vermont
Banks .......................................
A s s e t s ........................................
D e p o s it s ...................................
1 57
1 58
Ta b le 105.
NUMBER, ASSETS, AND DEPOSITS OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER 31, 1979-CONTINUED
BANKS GROUPED BY ASSET SIZE AND STATE
(Amounts in thousands of dollars)
Banks with assets of—
$500.0 million
to
$999.9 million
$1.0 billion
to
$4.9 billion
$5.0 billion
or
more
63
2,232,348
2,004,245
33
2,137,678
1,910,090
15
2,702,872
2,344,586
2
820,028
688,938
3
2,117,520
1,809,550
5
10,880,833
8,830,914
0
0
0
36
598,528
529,795
21
801,477
715,327
10
721,704
572,482
6
1,287,771
758,415
1
318,345
272,158
2
1,223,228
1,057,248
4
8,689,069
6 ,984,995
1
8,364,233
6,639,876
27
219,974
191,764
79
1,383,771
1,227,854
69
2,398,809
2,129,996
30
2,054,022
1,787,725
19
2,932,513
2,349,083
1
459,855
313,729
0
0
0
0
0
0
0
0
0
35
113,356
95,380
99
752,944
678,287
229
3,868,735
3,485,969
176
6,064,281
5,364,355
63
4,245,595
3,686,069
29
4,396,199
3,658,241
1
369,291
288,983
2
1,382,849
1,018,871
2
4,636,505
3,042,822
0
0
0
94
3,082,501
2,734,732
14
50,103
40,257
12
89,741
79,483
26
443,941
398,164
24
844,945
758,176
15
1,009,100
895,378
3
644,671
563,274
0
0
0
0
0
0
0
0
0
0
0
0
3
74,500
59,954
1
1,503
190
0
0
0
1
10,508
6,974
0
0
0
1
62,489
52,790
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
20
7,215,219
5,027,647
5
0
0
0
0
0
5
97,270
79,053
0
0
0
0
0
0
3
584,734
489,909
4
1,791,636
1,560,583
0
0
0
3
4,741,579
2,898,102
0
0
0
6
209,482
204,760
5
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
209,482
204,760
0
0
0
0
0
0
0
0
0
0
0
0
234
22,360,616
18,887,613
13
51,445
38,417
22
168,316
146,762
78
1,249,576
1,114,111
110
22,146,002
17,639,863
13
26,063
17,765
16
115,584
91,802
235
9,484,209
8,028,595
10
35,265
28,444
636
25,829,755
21,318,977
Virainia
Banks .....................................
A s s e ts .....................................
D e p o s its .................................
Washington
Banks .....................................
A s s e ts .....................................
D e p o s its .................................
West Virginia
Banks .....................................
A s s e ts .....................................
D e p o s its .................................
Wisconsin
Banks .....................................
A s s e ts .....................................
D e p o s its .................................
Wyoming
B a n k s .....................................
A s s e ts .....................................
D e p o s its .................................
Other areas
Guam
Banks .....................................
A s s e ts .....................................
D e p o s its .................................
Puerto Rico
Banks .....................................
A s s e ts .....................................
Deposits ...............................
Virgin Islands
Banks .....................................
A s s e ts .....................................
D e p o s its .................................
1 Includes 91 nondeposit trust companies: 5 in Arizona, 2 in Arkansas, 15 in California, 2 in Delaware, 7 in Florida 3 in Hawaii, 6 in
Illinois 1 in Indiana, 1 in Iowa, 1 in M assachusetts, 2 in Minnesota, 1 in M ississippi, 6 in Missouri, 3 in Montana, 7 in Nebraska 1 in
New Hampshire, 1 in New M exico, 6 in New York, 2 in North Dakota, 2 in Oklahoma, 1 in Oregon, 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, 5 in W isconsin and 1 in Puerto
2 Excludes 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
3 Data are from fully consolidated Reports of Condition including domestic and foreign offices.
C O RPO R ATIO N
$300.0 million
to
$499.9 million
INSURANCE
$100.0 million
to
$299.9 million
$5.0 million
to
$9.9 million
DEPOSIT
$10.0 million $25.0 million $50.0 million
to
to
to
$24.9 million $49.9 million $99.9 million
Less
than
$5 million
All
banks
FEDERAL
State
ASSETS AND LIABILITIES OF BANKS
Table 1 06.
Assets and liabilities of all commercial banks in the United States (States and other areas),
June 30, 1 979
Table 1 07.
Assets andjiabilities of all commercial banks in the United States (States and other areas),
December 31, 1 979
Table 108.
Assets and liabilities of all mutual savings banks in the United States (States and other areas),
June 30, 1 979, and December 3 1, 1 979
Table 109.
A ssets and liabilities of insured commercial banks in the United States (States and other
areas), December call dates, 1 9 7 4 — 1 979
Assets and liabilities of insured commercial banks (domestic and foreign offices), United
States and other areas, 1 973— 1 977
Assets and liabilities of insured commercial banks (domestic and foreign offices), United
States and other areas, December 31, 1978
A ssets and liabilities of insured commercial banks (domestic and foreign offices), United
States and other areas, December 31, 1 979
A ssets and liabilities of insured mutual savings banks in the United States (States and other
areas), December call dates, 1 9 7 4 — 1 979
Percentages of assets, liabilities, and equity capital of insured commercial banks operating
throughout 1 979 in the United States (States and other areas), December 31, 1979
Table 1 10.
Table 1 1 0A.
Table 1 10B.
Table 111.
Table 1 1 2.
Banks grouped by insurance status and class of bank
Banks grouped by insurance status and class of bank
Banks grouped by insurance status
Banks grouped by amount of assets
Table 113.
Percentages of assets and liabilities of insured mutual savings banks operating throughout
1 979 in the United States (States and other areas), December 31, 1979
Table 1 14.
Distribution of insured commercial banks in the United States (States and other areas),
December 31, 1 979
Banks grouped by amount of assets
Banks grouped according to amount of assets and by ratios of selected items to assets or
deposits
C om m ercial banks
Insured banks having total resources of $25 million or more are required
to report on the basis of accrual accounting. W here 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 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
consolidated report including these offices; however, except for table 110
tables on pages 161 -185 contain only the domestic assets and liabilities of
banks. Beginning in 1 969, all majority-owned bank premises subsidiaries
are fully consolidated; other m ajority-owned domestic subsidiaries (but not
commercial bank subsidiaries) are consolidated if they meet any of the
follow ing 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 "Incom e (loss) before income taxes and securities gains or
losses'' amounts to 5 percent or more of the "incom e (loss) before income
taxes and securities gains or losses” of the parent bank. Beginning in 1 972,
investments in subsidiaries not consolidated in which the bank directly or
indirectly exercises effective control are reported on an equity (rather than
cost) basis w ith the investment and undivided profits adjusted to include the
NOTE:
Tables w ith Report of Condition financial data may not balance as
a result of certain noninsured banks submitting balance sheet
data but not submitting supporting detail in some of the schedules.
Some noninsured banks that did not submit financial data are
included in the counts of banks.
FEDERAL DEPOSIT INSURANCE CORPORATION
bearing demand notes issued to the U.S. Treasury.
Asset and liability data for noninsured banks are tabulated from reports
pertaining to the individual banks. In a few cases, these reports are not as
detailed as those submitted by insured banks.
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
publication Assets and Liabilities—Commercial and Mutual Savings Banks.
M utual savings banks
The Reports of Income and Condition were significantly revised in 1 979.
The intent of the revisions was to provide more meaningful information
concerning the operations and condition of the mutual institutions as well as
to bring reporting by such institutions into closer conformance to accounting
principles.
Report of Income
In addition to obtaining more detail concerning operating income and
expenses, the reporting form at and instructions were changed to reflect
interest and dividends paid or accrued as an operating expense. Gains and
losses on mortgage loans, real estate and other transactions are included in
other operating income or other operating expenses rather than being
separately stated. Income taxes are reflected separately on operating
income, securities transactions and extraordinary items. The reporting of the
provision for possible loan losses requires an expense based on manage
ment discretion rather than an expense reflecting net loan losses.
Report o f C ondition
Significant changes to this form include the separate reporting and deduc
tion of a valuation reserve against real estate loans and other loans. Deposit
categories were changed to reflect industry practice. A Memoranda sche
dule and a Supplemental Schedule H were added to provide information
concerning the market value of bond and equity investments, selected asset
and liability average figures, and past due and non-accrual real estate loans.
M aturity distributions of security investments, time deposits and borrowed
funds were incorporated into the report.
Foreign assets o f banks
Since June 30, 1 974, a consolidated statement of domestic and foreign
assets and liabilities of U.S. banks has been published sem iannually by the
Corporation in Assets and Liabilities—Commercial and Mutual Savings
Banks. (Beginning w ith June 30, 1 977, 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 o f data
Insured banks: seep, 187; noninsured banks: State banking authorities and
and reports from individual banks.
1 60
parent's share of the subsidiaries' net worth.
In the case of insured banks w ith branches outside the 50 States and D.C.,
net amounts due from such branches are included in "O ther assets” and net
amounts due to such branches are included in "O ther liabilities.” Branches
of insured banks outside the 50 States and D. C. 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 1 9 6 9 through 1 975, 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 1 976, the IRS reserve is divided as
follows: (a) the "va lu a tio n " 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
total loans; (b) the "deferred income ta x" portion is included in "other
liabilities"; and (c) the "contingency" portion is included in "undivided
profits,” or "reserves for contingencies and other capital reserves" (prefera
bly 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 1 976.
"Unearned income on loans," previously reported in "other liabilities,” is
reported separately as an exclusion from gross loans and total assets begin
ning March 3 1 ,1 976.
Beginning March 31, 1979, "deposits accumulated for the payment of
personal loans" was elim inated from deposits. Such "deposits" are required
to be deducted from the appropriate loan category before completion of
Report of Condition Schedule A (loans).
The category "Trading account securities" was added to the condition
report of commercial banks in 1 9 6 9 to obtain this segregation for banks that
regularly deal in securities w ith other banks or w ith the public. Banks
occasionally holding securities purchased for possible resale report these
under "Investm ent securities."
Assets and liabilities held in or adm inistered by a savings, bond, insur
ance, real estate, foreign, or any other departm ent of a bank, except a trust
department, are consolidated w ith the respective assets and liabilities of the
commercial department. "Deposits of individuals, partnerships, and corpo
rations" include trust funds deposited by a trust department in a commercial
or savings department. Other assets held in trust are not included in state
ments of assets and liabilities.
Demand balances w ith, 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 tw o banks maintain deposit accounts w ith each other.)
In 1976, the caption "Capital notes and debentures” was changed to
"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 1 9 7 8 an abbreviated Report of Condition was instituted for banks w ith
less than $ 1 0 0 m illion in total consolidated assets. Beginning w ith
1978, other liabilities for borrowed money include interestDecember
T a b le 106.
ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
JUNE 30, 1979
BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK
(Amounts in thousands of dollars)
Insured banks
Asset, 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
trust
companies
990,213,226
749,419,372
240,793,854
327,689,359
36,671,979
36,259,656
412,323
178,342,062
150,918,291
98,524,153
52,394,138
27,423,771
4,980,652
4,930,171
78,167,214
47,938,062
50,481
78,033,191
45,717,049
74,931,193
29,013,164
46,646,889
15,657,695
28,284,304
13,355,469
3,101,998
16,703,885
134,023
2,221,013
133,985
2,201,935
38
19,078
11,376,502
32,458,272
13,335,390
8,807,224
32,457,945
13,326,653
4,759,170
32,457,260
9,757,504
3,369,486
25,231,747
7,618,336
1,389,684
7,225,513
2,139,168
4,048,054
685
3,569,149
2,569,278
327
8,737
2,552,843
38
8,651
16,435
289
86
Securities— t o ta l............................................................................................
276,228,754
274,263,581
187,544,167
145,066,636
42,477,531
86,719,414
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 .....................................................................................
1,965,173
1,872,576
92,597
87,108,936
44,730,102
127,032,567
17,357,099
86,604,814
44,567,851
126,365,347
16,725,569
57,245,202
27,934,734
88,089,857
14,274,374
43,268,493
22,789,840
68,642,733
10,365,570
13,976,709
5,144,894
19,447,124
3,908,804
29,359,612
16,633,117
38,275,490
2,451,195
504,172
162,251
667,220
631,530
463,485
154,265
643,217
611,609
40,687
7,986
24,003
19,921
116,443
54,969,826
52,416,544
40,368,859
33,513,336
6,855,523
12,047,685
2,553,282
2,436,839
Loans, net ......................................................................................................
720,884,326
532,571,034
414,361,997
118,209,037
188,313,292
Plus: Allowances for possible loan losses ................................................
Loans, total ....................................................................................................
Plus: Unearned income on loans ...............................................................
742,809,909
21,925,583
21,896,884
28,699
8,567,003
751,376,912
19,470,307
8,447,992
729,332,318
19,430,281
6,647,838
539,218,872
12,933,611
4,996,242
419,358,239
10,708,031
1,651,596
119,860,633
2,225,580
1,800,154
190,113,446
6,496,670
119,011
22,044,594
40,026
118,533
22,015,417
39,706
478
29,177
320
Loans, gross ..................................................................................................
770,734,252
Real estate loans— t o t a l .............................................................................
.......................................................
.............................................................................
........................................
....................
......................................
Loans to financial in stitu tio n s.................................................................
Loans for purchasing or carrying s e c u ritie s ..........................................
Loans to finance agricultural production and other loans to fa rm e rs. . .
Commercial and industrial loans ...........................................................
748,762,601
552,152,485
430,066,272
122,086,213
196,610,116
228,813,552
21,971,651
21,942,394
29,257
228,401,583
155,772,197
126,814,505
28,957,692
72,629,386
411,969
407,012
4,957
48.169.705
14,728,202
29,839,361
249,797,543
38,695,569
14,574,731
29,786,725
240,944,514
36,549,021
13,507,367
16,067,473
193,437,260
2,146,548
1,067,364
13,719,252
47,507,254
Loans to individuals— to ta l.........................................................................
178,814,820
66.058.706
25,970,872
10,384,697
44,806,263
31,594,282
178,613,864
121,967,238
34,890,193
18,703,553
6,384,489
23,097,616
16,577,610
56,646,626
20,231,497
17,745,615
14,851,929
11,071,701
3,780,228
2,893,686
2,485,882
2,478,477
7,405
1,074,008,489 1,047,564,451
760,484,060
592,941,969
167,542,091
287,080,391
26,444,038
26,206,299
237,739
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
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 .......................................................................
All other loans
....................................................................................................
Total loans and securites .....................................................................
29,568,294
8,669,974
127,477,999
6,086,500
57,010,785
29,496,093
8,648,228
127,278,238
6,076,386
56,902,638
66,008,730
25,955,620
10,383,864
44,743,760
31,521,890
21,965,719
3,719,907
88,038,168
4,421,681
37,626,722
42,116,339
22,903,023
7,153,129
28,840,555
20,954,192
17,351,695
3,10.0,617
72,778,217
3,335,351
30,248,625
24,503,901
8,264,468
13,987,683
145,770,553
4,614,024
619,290
15,259,951
1,086,330
7,378,097
12,045,120
5,242,899
2,079,790
47,666,707
7,530,374
4,928,321
39,240,070
1,654,705
19,275,916
99,653,461
22,313,777
23,892,391
3,052,597
3,230,735
15,903,205
10,567,698
7,226,146
4,199,470
768,640
5,742,939
4,376,582
9,474,136
153,471
52,636
8,853,029
71,648
21,555
196,810
9,781
107,218
9.469,945
153,471
52,636
8,850,239
553
191
2,951
333
929
200,956
199,673
1,283
72,201
21,746
199,761
10,114
108,147
49,976
15,252
833
62,503
72,392
49,336
15,250
833
61,862
72,392
4,191
0
0
2,790
640
2
0
641
0
OF BA NKS
Federal funds sold and securities purchased under agreements
to resell ......................................................................................................
LIABILITIES
1,317,902,585
183,322,714
Cash items in process of collection ...........................................................
Demand balances with commercial banks in the United S ta te s ................
All other balances with depository institutions in the U.S. and with
banks in foreign countries .....................................................................
Balances with Federal Reserve B a n k s .........................................................
Currency and coin ......................................................................................
AND
1,354,574,564
Cash and due from depository institutions— t o t a l ......................................
ASSETS
Total a sse ts ........................................................................................................
1 62
Ta b le 106.
Noninsured banks
Insured banks
Members of
Federal Reserve System
Total
Total
Total
State
Total
Banks
of
deposit
Nondeposit
trust
companies
8,597,143
8,596,893
7,858,602
6,040,889
1,817,713
738,291
250
250
0
21,455,282
2,306,837
64,670,952
21,393,919
2,283,382
59,721,878
15,280,543
1,799,273
53,872,457
12,414,219
1,391,823
38,106,319
2,866,324
407,450
15,766,138
6,113,376
484,109
5,849,421
61,363
23,455
4,949,074
47,545
23,223
4,839,021
13,818
232
110,053
412,323
240,793,854
327,689,359
36,671,979
36,259,656
869,626,087
857,946,222
604,566,654
475,436,709
129,129,945
253,379,568
11,679,865
11,618,385
61,480
Individuals, partnerships, and corporations-savings ..................
Individuals and nonprofit organizations-savings .........................
Individuals, partnerships and corporations— d e m a n d ..................
216,311,370
205,860,310
295,322,501
215,798,870 145,905,613 116,908,123
205,360,187 138,940,203 111,430,237
294,311,005
214,228,239
165,228,089
49,000,150
80,082,766
961,731
5,477,886
186,238,039
3,473,273
99,686,381
12,377
8,055,976
511,398
499,740
49,765
6,965,410
232,173,972
69,893,257
66,419,984
1,011,496
10,438,683
331,860,353
28,997,490
27,509,966
11,658
8,048,315
719
7,661
18,075,887
15,975,994
12,258,830
7,062,458
5,196,372
3,717,164
2,099,893
2,096,941
2,952
Government deposits— t o ta l..............................................................
86,427,793
85,998,126
56,123,768
45,911,016
10,212,752
29,874,358
429,667
429,340
327
States Government— d e m a n d .............................................
States Government— savings .............................................
States Government— tim e ...................................................
and political subdivisions— d e m a n d ...................................
and political subdivisions— savings ...................................
and political subdivisions— t im e .........................................
2,076,359
85,602
901,259
18,013,990
4,196,071
61,154,512
2,074,141
85,602
900,822
17,920,963
4,188,894
60,827,704
1,361,429
63,585
658,101
11,741,020
2,594,850
39,704,783
1,122,269
61,394
453,195
9,560,549
1,878,157
32,835,452
239,160
2,191
204,906
2,180,471
716,693
6,869,331
712,712
22,017
242,721
6,179,943
1,594,044
21,122,921
2,218
0
437
93,027
7,177
326,808
2,213
0
437
93,027
7,177
326,486
5
0
0
0
0
322
All other deposits— to ta l....................................................................
71,056,398
67,581,501
64,499,643
32,566,726
31,932,917
3,081,858
3,474,897
3,472,393
2.504
55,386,353
57,343
15,612,702
54,022,237
57,343
13,501,921
52,377,060
39,377
12,083,206
24,428,442
26,007
8,112,277
27,948,618
13,370
3,970,929
1,645,177
17,966
1,418,715
1,364,116
0
2,110,781
1,361,612
0
2,110,781
2.504
0
0
1,027,393,382 1,011,525,849
388,840,087
220,689,426
417,828,454
384,304,340 291,966,578 207,401,807
220,130,709 148,603,425 118,873,681
407,090,800 284,620,062 227,638,963
725,190,065
553,914,451
171,275,614
84,564,771 92,337,762
29,729,744 71,527,284
56,981,099 122,470,738
286,335,784
15,867,533
4,535,747
558,717
10,737,654
15,790,774
4,505,303
557,615
10,717,223
30,444
1,102
20,431
228,055,173
207,964,097
192,972,142
140,426,429
52,545,713
14,991,955
20,091,076
19,842,345
248,731
115,213,261
112,706,308
105,061,803
79,501,616
25,560,187
7,644,505
2,506,953
2,500,495
6,458
35,426,244
2,071,948
75,343,720
30,836,161
2,065,635
62,355,993
28,558,992
1,644,597
57,706,750
18,879,837
1,261,356
40,783,620
9,679,155
383,241
16,923,130
2,277,169
421,038
4,649,243
4,590,083
6,313
12,987,727
4,586,630
618
12,754,602
3,453
5,695
233,125
Corporations and other profit organizations— s a v in g s ..................
Individuals, partnerships, and corporations— t i m e .......................
Certified and officers’ checks, travelers’ checks, letters of
credit— demand ..........................................................................
United
United
United
States
States
States
Demand ..........................................................................................
S a v in g s ............................................................................................
T im e ................................................................................................
Total deposits ....................................................................................
Demand ..........................................................................................
Savings ............................................................................................
T im e ..................................................................................................
Miscellaneous liabilities— t o t a l........................................................
Federal funds purchased and securities sold under agreements
to purchase ..................................................................................
Interest bearing demand notes issued to the U.S. Treasury and
other liabilities for borrowed m o n e y ...........................................
Mortgage indebtedness and liability for capitalized le a s e s ............
All otner lia b ilitie s ............................................................................
1,354,574,564 1,317,902,585
10,451,060
339,916,329
1,487,524
45,935,933
512,500
500,123
1,102
383
76,759
C O R PO R ATIO N
990,213,226 749,419,372
Business and personal deposits— total ...........................................
Total liabilities and equity capital ........................................................
INSURANCE
Lease financing receivables ................................................................
Bank premises, furniture and fixtures, and other assets representing
bank premises ................................................................................
Real estate owned other than bank p re m ise s .....................................
All other a s s e t s ....................................................................................
National
Not
members
of F.R.
System
DEPOSIT
Asset, liability or expense item
FEDERAL
ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
JUNE 30, 1979— CONTINUED
BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK
(Amounts in thousands of dollars)
Total liabilities (excluding subordinated notes and debentures) ___ 1,255,661,701
1,219,489,945
918,162,206
694,340,879
223,821,327
301,327,739
36,171,756
35,846,266
Subordinated notes and debentures.............................................................
5,946,552
5,931,552
4,430,987
3,205,706
1,225,281
1,500,565
15,000
13,736
1,264
Equity capital— total ......................................................................................
93,013,501
92,524,926
67,663,870
15,791,084
147,721
5,793
19,896,197
2,298,870
34,321,867
136,463
5,793
19,725,881
2,295,891
34,143,792
51,872,786
33,305
1,175
14,196,396
1,332,806
23,761,150
24,861,056
488,575
29,761
693
11,148,729
1,087,567
17,407,311
3,544
482
3,047,667
245,239
6,353,839
403,006
103,158
4,618
5,529,485
963,085
10,382,642
11,258
0
170,316
2,979
178,075
85,569
11,258
0
142,865
1,648
147,987
0
0
27,451
1,331
30,088
38,654,870
38,518,790
29,673,019
23,286,985
6,386,034
8,845,771
136,080
108,050
28,030
13.53
13.53
15.24
13.15
21.76
8.37
13.58
13.60
12.24
9.73
10.66
9.95
10.86
8.60
10.34
8.81
10.54
7.94
9.70
14.04
12.43
1.82
3.54
1.70
3.46
11.80
10.65
59.53
6.55
6.87
59.32
6.34
7.02
58.53
7.29
6.83
60.43
7.07
6.92
52.62
7.98
6.56
61.69
3.47
7.59
67.08
13.98
1.33
67.44
13.80
1.11
35.32
29.98
20.75
8.58"
8.79
8.65
8.54
9.05
9.18
1.5
Preferred stock— par v a lu e .........................................................................
Preferred stock— shares outstainding (in thousands) ..............................
Common stock— par v a lu e .........................................................................
Common stock— shares outstanding (in th o u sa n d s)................................
S u r p lu s ........................................................................................................
Undivided profits and reserve for contingencies and other
capital re se rv es.......................................................................................
325,490
PERCENTAGES
Total equity capital3 .........................................................................
1
1.314
26.64
MEMORANDA
23,562,757
174,664,718
28,477,769
22,408,468
168,584,502
26,826,517
21,037,509
129,851,854
22,950,981
14,584,616
99,971,735
18,940,367
6,452,893
29,880,119
4,010,614
1,370,959
38,732,648
3,875,536
1,154,289
6,080,216
1,651,242
1,154,289
6,080,216
1,651,242
0
0
0
Number of banks at end of period .....................................................................
14,730
14,367
5,481
4,493
988
8,886
363
275
88
Includes asset and liability domestic figures for branches of foreign banks (tabulated as banks) licensed to do a deposit business. Capital
2 is not allocated to these branches by the parent banks.
Amounts shown as deposits are special accounts and univested trust funds, with the latter classified as demand deposits of individuals
3 partnerships, and corporations.
Only 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 computation of ratios of equity capital to assets.
Data for domestic branches of foreign banks referred to in footnote 1 have been excluded in computing this ratio for noninsured banks of
deposit.
Note: Further information on the reports of assets and liabilities of banks may be found on pp. 159-160.
163
OF BANKS
Standby letters of credit— total .........................................................................
Time certificates of deposits in denominations of $100,000 or m o r e ..............
Other time deposits in amounts of $100,000 or m o re ......................................
LIABILITIES
Of total assets other than cash and U.S. Treasury securities:
AND
Cash and due from depository institu tio n s.....................................................
U.S. Treasury securities and obligations of other U.S. Government
agencies and co rp o ra tio n s .........................................................................
All other securities ..........................................................................................
Loans (including federal funds sold and securities purchased
under agreements to resell) .......................................................................
All other a s s e t s ..........................................................................
Total equity capital3 ........................................................................
ASSETS
Of total assets:
1 64
FEDERAL DEPOSIT
Table 107.
ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER 31, 1979
BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK
(Amounts in thousands of dollars)
Noninsured banks
Insured banks
Total
National
State
Not
members
of F.R.
System
796,797,598
256,481,440
107,149,430
52,540,439
Total
Total
Total assets..................................................................................................... 1,437,748,680 1,405,665,994 1,053,279,038
198,925,337
159,689,869
192,420,607
Cash and due from depository institutions— total
Securities— to ta l.........................................................................................
U.S. treasury securities ...........................................................................
Obligations of other U.S. government
agencies and corp orations...................................................................
Obligations of states and political subdivisions in the U .S ........................
All other securites.....................................................................................
Banks
of
deposit
Nondeposit
trust
companies
352,386,956
32,082,686
30,821,378
1,261,308
32,730,738
6,504,730
6,355,182
149,548
82,248,567
81,933,644
78,554,350
50,604,262
27,950,088
3,379,294
314,923
314,921
2
49,282,631
47,940,502
29,218,273
17,209,571
12,008,702
18.722.229
1,342,129
1,320,376
21,753
16,397,916
32,240,516
18,613,289
11,703,690
32,240,418
18,602,353
5,917,033
32,233,868
13,766,345
4,523,658
24,076,174
10,735,765
1,393,375
8,157,694
3,030,580
5,786,657
6,550
4,836,008
4,694,226
98
10,936
4,681,826
0
10,889
12,400
98
47
287,830,798
285,484,061
194,039,972
149,344,375
44,695,597
91,444,089
2,346,737
2,067,152
279,585
88,771,955
88,221,453
58,062,224
44,125,843
13,936,381
30.159.229
550,502
500,528
49,974
49,536,126
133,344,421
16,178,296
49,313,676
132,568,154
15,380,778
31,048,036
91,987,835
12,941,877
24,702,117
71,030,870
9,485,545
6,345,919
20,956,965
3,456,332
18,265,640
40,580,319
2,438,901
222,450
776,267
797,518
217,035
634,692
714,897
5,415
141,575
82,621
204,498
Federal funds sold and securities purchased under
agreements to re s e ll...............................................................................
63,528,912
61,065,864
45,304,643
36,263,627
9,041,016
15,761,221
2,463,048
2,258,550
Loans, net ......................................................................................................
784,577,966
766,830,747
568,711,373
440,644,422
128,066,951
198,119,374
17,747,219
17,708,262
38,957
Plus: Allowances for possible loan losses ...............................................
Loans, total ....................................................................................................
Plus: unearned income on loans .............................................................
9,058,528
793,636,494
20,564,660
8,958,983
775,789,730
20,532,380
7,033,207
575,744,580
13,727,366
5,295,670
445,940,092
11,320,141
1,737,537
129,804,488
2,407,225
1,925,776
200,045,150
6,805,014
99,545
17,846,764
32,280
99,473
17,807,735
32,280
72
39,029
0
Loans, gross ...................................................................................................
813,832,215
796,322,110
589,471,946
457,260,233
132,211,713
206,850,164
17,510,105
17,495,458
14,647
Real estate loans— t o t a l...........................................................................
.....................................................
...........................................................................
.......................................
....................
.....................................
32,974,100
8,588,802
137,566,006
6,326,898
59,738,138
244,796,237
167,513,417
24,956,154
3,675,244
95,266,411
4,542,364
39,073,244
136,799,573
30,713,844
5,226,728
607,605
16,106,716
1,119,376
7,653,419
77,282,820
397,707
394,918
44,474
25,855
217,982
21,107
85,500
2,789
Construction and land development
Secured by farmland
Secured by 1-4 family residential properties
Secured by multi family (5 or more) residential properties
Secured by nonfarm nonresidential properties
245,193,944
32,929,259
8,562,893
137,346,068
6,305,464
59,652,553
19,729,426
3,067,639
79,159,695
3,422,988
31,419,825
7,973,105
4,887,649
42,079,657
1,763,100
20,579,309
44,841
25,909
219,938
21,434
85,585
367
1956
327
85
CORPORATION
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 cou n tries...................................
Balances with federal reserve b a n ks.........................................................
Currency and coin ...................................................................................
Total
INSURANCE
Asset, liability or expense item
Members of
Federal Reserve System
48,955,987
13,596,448
41,919,383
13,501,352
39,751,940
12,393,758
25,844,744
7,065,325
13,907,196
5,328,433
2,167,443
1,107,594
7,036,604
95,096
7,032,601
95,096
31,083,846
265,797,624
31,036,748
257,678,468
16,794,277
207,851,734
14,700,658
156,073,838
2,093,619
51,777,896
14,242,471
49,826,734
47,098
8,119,156
47,098
8,119,156
0
0
187,923,537
67,841,181
29,975,383
10,659,121
47,190,823
32,257,029
187,789,998
128,771,259
105,132,243
23,639,016
59,018,739
133,539
133,539
0
21,280,483
19,599,924
16,395,561
11,643,852
4,751,709
3,204,363
1,680,559
1,673,050
7,509
1,135,937,676 1,113,380,672
808,055,988
626,252,424
181,803,564
305,324,684
22,557,004
22,033,964
523,040
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 installment basis .
Credit cards and related plans .....................................................
To purchase mobile homes (excluding travel trailers) .................
All other installment loans forhousehold, family
and other personal expenditures .............................................
Single payment loans for household, family
and other personal expenditures .............................................
All other loans ....................................................................................
Total loans and securities .
67,804,978
29,958,653
10,658,711
47,139,893
32,227,763
43,273,145
26,484,297
7,422,945
30,348,293
21,242,579
35,634,268
21,552,565
6,651,668
24,466,106
16,827,636
7,638,877
4,931,732
771,277
5,882,187
4,414,943
24,531,833
3,474,356
3,235,766
16,791,600
10,985,184
36,203
16,730
410
50,930
29,266
36,203
16,730
410
50,930
29,266
4,003
0
0
0
0
0
0
9,951,916
9,087,604
6,789,640
2,297,964
864,312
3,082
3,038
44
22,605,926
2,085,954
65,220,919
15,976,950
1,599,000
58,869,627
12,952,433
1,269,263
42,384,408
3,024,517
329,737
16,485,219
6,628,976
486,954
6,351,292
74,864
40,965
2,649,647
49,463
15,359
2,111,978
25,401
25,606
537,669
1,437,748,680 1,405,665,994 1,053,279,038
796,797,598
256,481,440
352,386,956
32,082,686
30,821,378
1,261,308
Business and personal deposits— to ta l................................
940,826,398
933,830,811
515,634,774
Individuals, partnerships and corporations— dem and........
Individuals, partnerships, and corporations— savings ___
..............
........
Individual, partnerships, and corporations— tim e ..............
Certified and officers’ checks, travelers’ checks, letters of
credit— d e m a n d .............................................................
334,976,081
203,411,779
659,295,640
246,076,913
136,824,080
187,736,093
109,406,809
274,535,171
6,995,587
334,126,108
203,132,354
143,660,866
25,162
58,340,820
27,417,271
88,049,195
66,308,274
849,973
279,425
6,970,425
827,294
279,425
22,679
0
AND
385,555,003
385,555,003
380,623,591
4,931,412
4,931,412
LIABILITIES
ASSETS
9,954,998
22,680,790
2,126,919
67,870,566
Lease financing receivables ...........................................
Bank premises, furniture and fixtures, and other assets
representing bank p re m is e s .......................................
Real estate owned otner than bank p re m ise s.................
All other a s s e ts ...............................................................
Total liabilities and equity capital ...........................................
193,594,207
9,817,572
Individuals and nonprofit organizations-savings
Corporations and other profit organizations-savings
193,337,392 130,405,449
9,794,962
6,418,631
104,321,055
5,085,754
264,309,218
26,084,394
1,332,877
210,986,835
62,931,943
3,376,331
53,322,383
256,815
22,610
116,314,373
256,815
22,610
0
0
15,948,758
12,085,429
7,505,037
4,580,392
3,863,329
934,777
932,294
2,483
87,229,187
86,768,339
55,967,139
45,668,860
1,659,485
54,338
724,523
12,440,121
2,250,283
38,838,389
1,354,497
49,631
501,176
10,092,060
1,727,263
31,944,233
460,848
2,409,529
72,882
949,616
19,047,809
3,802,922
60,946,429
2,406,844
72,882
949,192
18,932,709
3,794,443
60,612,269
30,801,200
United States government— d e m an d ........
United States government— savings ........
United States government— t im e ..............
States and political subdivisions— demand
States and political subdivisions— savings
States and political subdivisions— time . . .
10,298,279
747,359
18,544
224,669
6,492,588
1,544,160
21,773,880
460,845
3
304,988
4,707
223,347
2,348,061
523,020
6,894,156
2,685
0
424
115,100
8,479
334,160
2,682
0
424
115,100
8,479
334,160
3
0
0
0
0
0
All other deposits— to ta l..............................
80,369,388
74,006,025
70,574,513
37,556,742
33,017,771
3,431,512
Demand ...................................................
S av in g s.....................................................
T im e .........................................................
60,138,935
50,347
13,816,743
58,202,713
38,122
12,333,678
28,965,545
25,231
8,565,966
6,363,363
1,532,633
1,092
4,829,638
2.406
29,237,168
12,891
3,767,712
1,936,222
12,225
1,483,065
6,360,957
61,671,568
51,439
18,646,381
1,530,227
1,092
4,829,638
2.406
0
0
165
;
OF BANKS
16,883,535
Government deposits— to ta l........................
1 66
A S S E T S AN D LIABILITIES OF ALL C O M M E RC IAL BANKS IN TH E UN ITED STATES (S TA TES AND O THER AR EAS),
D E C E M B E R 3 1, 1 9 7 9 - C O N T I N U E D
BAN KS G RO UPED BY IN SURAN CE STATU S AND C L A S S OF BANK
(Amounts in thousands of dollars)
Noninsured banks
Insured banks
Asset, liability or expense item
Mem bers of
Federal Reserve System
State
1,108,689,961 1,094,605,175
434,988,071
207,339,022
466,362,537
431,553,354 330,464,661 235,653,232
207,050,026 139,166,823 111,208,934
456,001,795 316,205,808 251,998,210
785,837,292
598,860,376
186,976,916
94,811,429
27,957,889
64,207,598
225,005,467
207,863,851
192,201,521
140,606,762
114,868,745
112,149,032
104,531,369
79,152,078
33,221,162
2,160,935
74,754,625
27,875,285
2,106,731
65,732,803
25,715,892
1,637,416
60,316,844
17,148,196
1,234,597
43,071,891
1,333,947,822 1,302,469,026
Total
Banks
of
deposit
308,767,883
101,088,693
67,883,203
139,795,987
14,084,786
3,434,717
288,996
10,360,742
14,044,427
3,407,203
288,996
10,347,898
27,514
0
12,844
51,594,759
15,662,330
17,141,616
16,173,557
968,059
25,379,291
7,617,663
2,719,713
2,699,713
20,000
8,567,696
402,819
17,244,953
2,159,393
469,315
5,415,959
5,345,877
54,204
9,021,822
5,219,525
47,709
8,206,610
126,352
6,495
815,212
1,008,418
Total
Total deposits .........................................................................................
Demand ................................................................................................
Savings ................................................................................................
Tim e ......................................................................................................
Miscellaneous liabilities— to ta l...............................................................
Federal fu n ds purchased and securities sold under agreements
to repurchase ......................................................................................................
Interest bearing demand notes issued to the U.S. Treasury and other
liabilities fo r borrow ed m oney .......................................................................
M ortgage indebtedness and liability fo r capitalized le a s e s ..........................
All other lia b ilitie s ...................................................................................................
Total liabilities (excluding subordinated
notes and debentures)...................................................................
N ondeposit
tru s t
companies
40,359
978,038,813
739,467,138
238,571,675
324,430,213
31,478,796
30,470,378
Subordinated notes and debentures.....................................................
5,957,206
5,955,812
4,417,980
3,034,067
1,383,913
1,537,832
1,394
385
1,009
Equity capital— total .............................................................................
97,843,654
97,241,158
70,822,249
54,296,395
16,525,854
26,418,909
602,496
350,615
251,881
Preferred sto ck— par v a lu e ..............................................................................
Preferred sto ck— shares outstanding (in th o u s a n d s )...............................
Com m on stock— par v a lu e ..............................................................................
Com m on stock— shares outstanding (in th o u s a n d s )...............................
S u r p lu s .................................................................................................................
Undivided profits and reserve fo r contingencies
and other capital reserves .........................................................................
129,019
5,961
20,452,309
2,895,930
35,489,821
125,890
5,961
20,273,743
2,892,982
35,328,623
34,208
912
14,517,699
1,424,594
24,301,059
30,631
428
11,402,799
1,177,606
17,846,174
3,577
484
3,114,900
246,988
6,454,885
91,682
5,049
5,756,044
1,468,388
11,027,564
3,129
0
178,566
2,948
161,198
3,105
0
140,348
1,282
119,135
24
0
38,218
1,666
42,063
41,761,105
41,512,902
31,969,283
25,016,791
6,952,492
9,543,619
248,203
76,627
171,576
CORPORATION
National
Total
INSURANCE
Total
Not
mem bers
of F.R.
System
FEDERAL DEPOSIT
Table 107.
PERCENTAGES
Of total assets:
Cash and due from depository institutions..............................................
U.S. Treasury securities and obligations of other U.S. government
agencies and corp ora tion s..................................................................
All other securities ..................................................................................
Loans (including federal funds sold and securities purchased
under agreements to resell) ................................................................
All other a ssets........................................................................................
Total equity capital3 ................................................................................
13.84
13.69
15.16
13.45
20.49
9.29
20.27
20.62
11.86
9.62
10.40
9.78
10.53
8.46
9.96
8.64
10.11
7.91
9.52
13.74
12.21
2.41
4.91
2.33
4.38
4.39
17.77
59.62
6.53
6.81
59.53
6.47
6.92
58.96
7.45
6.72
60.52
7.29
6.81
54.13
7.95
6.44
61.24
3.52
7.50
63.30
9.11
1.88
65.11
7.57
1.14
19.31
46.67
19.97
8.64
8.48
8.41
8.70
9.13
Of total assets other than cash and U.S. Treasury securities:
Total equity capital3 ..............................................................................
8.514
2.414
1.464
23.72
Memoranda
28,738,267
190,731,518
27,525,589
28,091,127
188,162,811
26,486,357
26,402,672
144,140,455
22,577,120
17,394,299
110,111,784
18,614,044
9,008,373
34,028,671
3,963,076
1,688,455
44,022,356
3,909,237
647,140
2,568,707
1,039,232
647,140
2,568,707
1,039,232
0
0
0
Number of banks at end of period ..............................................................
14,738
14,364
5,425
4,448
977
8,939
374
283
91
Note: Refer to footnotes on Table 106.
LIABILITIES
OF BANKS
1 67
ASSETS AND
Standby letters of credit— total ..................................................................
Time certificates of deposits in denominations of $100,000 or m o r e .........
Other time deposits in amounts of $100,000 or m o re .................................
ASSETS AND LIABILITIES OF ALL MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
JUNE 30, 1979 AND DECEMBER 31, 1979
BANKS GROUPED BY INSURANCE STATUS
(Amounts in thousands of dollars)
Decem ber 31, 1979
Jun e 30, 1979
A sse t, liability, or s u rp lu s accou n t item
168
T a b le 108.
Insured
N o n in su red 1
Total
Insured
N on insu red1
Total Assets ..............................................................................................................................................
157,242,653
145,521,512
11,721,141
157,859,312
147,112,481
10,746,831
Cash and due from depository institutions .....................................................................................
2,830,649
2,607,063
223,586
3,140,377
2,929,219
211,158
411,501
7 97 ,3 27
1 ,4 4 7 ,9 6 4 2
173 ,8 57
3 61 ,5 48
7 18 ,9 35
1 ,36 7 ,88 2
158 ,6 98
4 7 3 ,8 4 6
8 7 0 ,5 6 9
1 ,6 4 4 ,0 5 2 2
151 ,9 10
4 25 ,0 07
8 08 ,1 44
1 ,55 8 ,06 8
1 38 ,0 00
C u rrency and c o i n .............................................................................................................................
Dem ana balances with com m e rcia l banks in the United States ...............................................
Other balances with d e posito ry in s titu tio n s ................................... ...............................................
Cash item s in pro cess of collection
4 9,9 5 3
78,3 9 2
8 0,0 8 2 2
1 5,159
4 8,839
6 2 ,425„
85,984
13,910
Securities— to ta l...................................................................................................................................
47,097,348
44,203,348
2,894,000
46,074,243
43,494,247
2,579,996
U .S . Treasury, agency, and corp oration o b lig a tio n s ...................................................................
............... .........................................................................................
..................................................................................................
................................................................................................
...............................................................................................................
Corporate bonds ...............................................................................................................................
O bligations of States and political sub d iv isio n s in the U .S ..........................................................
Other bond s, notes and debentures ..............................................................................................
18,367,853
1,726,983
3,409,454
1,958,324
11,273,0922
17,0 4 5,9 3 6
1,551,395
3,047,227
1,712,440
10,734,874
1 ,32 1 ,91 7
175,588
362,227
245,884
538,2182
1 8,565,349
1,563,546
3,254,881
1,597,005
12,149,9172
1 7,394,228
1,423,345
2,904,333
1,360,848
11,705,702
1,171,121
17,457,654
3,11 7 ,02 2
3,45 9 ,92 2
1 6,675,798
3 ,0 7 1 ,83 3
3 ,24 6 ,26 3
7 81,856
4 5 ,1 8 9
213 ,6 59
16,772,562
2 ,88 9 ,68 0
3 ,33 8 ,51 3
16,129,261
2 ,84 0 ,79 0
3 ,10 6 ,12 9
643,301
48,890
232,384
Corporate sto c k — totcl ....................................................................................................................
................................................................................................................................................
..............................................................................................................................................
493,301
4,201,596
4 ,69 4 ,89 7
381,344
3,782,174
4 ,16 3 ,51 8
111,957
419,422
4 ,50 8 ,13 9
346,793
3,677,046
4 ,02 3 ,83 9
92,693
391,607
Maturing in 1 year and le s s
Maturing in over 1 thru 5y e a rs
Maturing in over 5 thru 10 ye ars
Maturing over 10 y e a rs
Bank
O th e r
531 ,3 79
439,486
4,068,653
140,201
350,548
236,157
444,2152
484,300
Federal funds sold and securities purchased under agreements to resell ..............................
4,193,503
3,864,002
329,501
2,929,750
2,688,582
241,168
Loans, n e t ..............................................................................................................................................
98,898,575
90,870,937
8,027,638
101,351,259
93,869,281
7,481,978
9 4 ,7 4 7 ,5 4 1 2
6 ,96 8 ,11 2
Real estate loans, g ro ss
.................................................................................................................
Less: Unearned incom e ...............................................................................................................
Less: Allowance for possible loan losses .................................................................................
Real estate loans, net .................................................................................................................
Construction and land developm ent .....................................................................................
Secured by farm lan d ...............................................................................................................
Secured by residential properties:
Secured by 1- to 4-family residential properties:
Insurea by FHA or guaranteed byVA ..........................................................................
Conventional....................................................................................................................
Secured multifamily (5 or more) residential properties:
Insured by FHA ...............................................................................................................
C onventional....................................................................................................................
Secured by nonfarm nonresidential p rop e rties ...................................................................
Other loans, gross ...........................................................................................................................
Less: Unearned incom e ...............................................................................................................
Less: Allowance for possible loan losses .................................................................................
Other loans, n e t .............................................................................................................................
L oans to financial institutions:
To real estate investment trusts and mortgage com panies ....................................................
To domestic commercial and foreign banks ............................................................................
To other financial institutions ....................................................................................................
Loans fo r purchasing or carryin g secu rities (secured and unsecured):
To brokers and dealers in se curities .........................................................................................
Other loans for purchasing or carrying securities ...................................................................
L oans to finance ag ricultural pro duction (except those secured prim arily by real estate) . . .
C om m ercial and industrial loans (except those secured p rim arily by real e sta te )...................
568,851
209,521
93,969,169
1,764,769
46,528
8 7 ,1 9 9 ,8 2 5
546,429
195,457
86,457,939
1,608,740
37,763
7 ,5 4 7 ,7 1 6
22,422
14,064
7,511,230
156,029
8,765
9 6 ,2 4 4 ,1 2 9
549,733
183,655
95,510,741
1,826,045
44,671
8 9 ,2 7 6 ,0 1 7
529,384
173,180
88,573,453
1,672,333
37,105
20,349
10,475
6,937,288
153,712
7,566
22,093,705
40,194,8782
2,984,128
12,451,901
15,211,632
5,268,380
327,225 2
11,749
4,929,406
21,005,513
35,219,906
2,962,077
12,010,065
14,355,761
4,711,338
288,827
9,513
4,412,998
1,088,192
4,974,9722
22,051
441,836
855,871
557,042
38,3982
2,236
516,408
21,488,284
42,359,3902
2,886,823
12,381,109
15,257,807
6,226,081
370,440
15,123
5,840,518
20,496,935
37,742,289
2,866,818
11,999,096
14,461,441
5,635,742
328,944
10,970
5,295,828
991,349
4,617,1012
20,005
382,013
796,366
590,339
41,496
4,153
544,690
4,165
205,371
83,178
0
2,045
724
2 88 ,5 40
4,155
205,127
83,008
0
1,721
10
244
170
0
324
724
2 81 ,0 03
0
7 ,5 3 7
1,699
228,118
48,013
0
1,929
1,120
4 84 ,0 59
1,689
228,118
47,843
0
1,791
10
0
170
0
138
1,120
475 ,8 46
0
8,213
FEDERAL DEPOSIT INSURANCE CORPORATION
Total
Loans to in divid ua ls fo r h ou se h old, fam ily, and other personal expenditures
(in clu de purchased paper):
.............................................
...............
.................
All other l o a n s .........................................................................................................
749,948
2,561,074
996,890
2 81 ,6 95
9 4,7 5 0
Total net loans and s e c u ritie s .............................................................................................
145,995,923
135,074,285
10,921,638
147,425,502
137,363,528
10,061,974
Bank pre m ise s, fu rniture and fixtures, capital leases, and other assets
representing bank p re m ise s ......................................................................................................
Real estate owned other than bank p rem ises .............................................................................
Investm ent in u n conso lid ated sub sid ia ries and associated c o m p a n ie s ....................................
Other a s s e t s ............................................................................................................................
1 ,44 8 ,95 3
366,611
156,406
2 ,2 5 0 ,6 0 8
1,32 5 ,91 2
331 ,5 93
1 48,046
2,170,611
123,041
35,0 1 8
8,36 0
79,997
1 ,50 1 ,92 4
320 ,8 27
159 ,2 13
2 ,3 8 1 ,7 1 9
1 ,3 8 9 ,1 1 6
2 95 ,1 55
1 50,958
2,2 9 5 ,9 2 3
112,808
25,672
8,255
8 5,796
10,746,831
installment loans to repair and modernize residential property
Other installment loans for household, family, and other personal expenditures
Single-payment loans for household, family, and other personal expenditures
672,015
2,260,278
921,612
376 ,4 45
77,933
300,796
75,278
858,823
2,871,333
1,425,031
3 05 ,9 56
776,860
2,577,044
1,318,908
206 ,5 23
81,963
294,289
106,123
99,433
Total lia b ilitie s and surplus a c c o u n ts ..................................................................................................
157,242,653
145,521,512
11,721,141
157,859,312
147,112,481
Deposits— t o ta l.....................................................................................................................................
143,110,820
132,562,958
10,547,862
141,969,396
140,6 56 ,4 27
132,337,884
66,535,602
5,901,949
60,633,653
74,120,825
2,454,393
1,334,600
1,119,793
1 30 ,1 23 ,7 45
60,842,015
5,186,906
55,655,109
69,281,730
2,439,213
1,332,786
1,106,427
1 0,532,682
5,693,587
715,043
4,978,544
4,839,095
15,180
1,814
13,366
139 ,2 74 ,2 55
59,262,102
5,456,433
53,805,669
80,012,153
2,695,141
1,542,216
1,152,925
1 29,674,702
54,482,515
4,825,465
49,657,050
75,192,187
2,663,182
1,541,281
1,121,901
4,779,587
630,968
4,148,619
4,819,966
31,959
935
31,024
Federal fu nd s purchased and securities sold under agreem ents to repurchase .....................
M ortgage indebtedness and liability fo r capital leases ..............................................................
Other liabilities fo r borrow ed m o n e y .............................................................................................
Other lia b ilitie s ..................................................................................................
1 ,084,858
66,434
1,06 6 ,17 7
1,04 3 ,90 9
1,07 5 ,00 3
65,240
999,444
8 88 ,5 03
9,855
1,194
6 6,733
155,406
1 ,64 4 ,19 7
67,093
2 ,04 3 ,67 2
1 ,02 5 ,75 4
1,643,214
6 5,840
1,959,463
876,263
983
1,253
84,209
149,491
9,867,448
9,631,512
9 ,599,553
Miscellaneous liab ilitie s:
135,591,148
10,781,050
146,750,112
136,882,664
374,956
374,956
0
382,373
382,373
0
Sunilus accounts— t o t a l......................................................................................................................
10,495,499
9,555,408
940,091
10,726,827
5,12 2 ,35 4
4 ,1 8 5 ,74 4
1,187,401
9,847,444
4,519,131
3 ,9 8 0 ,27 4
1 ,056,003
603,223
205,470
131,398
879,383
5 ,05 1 ,83 2
4 ,39 3 ,66 4
1,281,331
4 ,5 2 5 ,58 7
4 ,16 7 ,29 6
1,154,561
526,245
226,368
126,770
1.80
11.68
18.27
65.56
2.69
6 .67
1.79
11.71
18.66
65.10
2.73
6.57
1.91
11.28
13.41
71.3 0
2 .10
8.02
1.99
11.76
17.43
66.06
2.76
6.80
1.99
11.82
17.74
65.64
2.81
6 .69
1.96
10.90
13.11
71.86
2.16
8.18
7 .59
9.24
7.88
7.77
9.39
322
140
463
324
139
S urp lus .......................................................................................................................................
U nd ivided p r o f it s ..............................................................................................................................
Other surp lus reserves .................................................................................................................
PERCENTAGES
Of total assets*
Cash and due from deposito ry in s t it u t io n s ....................................................................................
U .S . Treasury ................................................................................................................................
A ll other s e c u r it ie s .................................................................................
Net loans (including federal fund s sold and secu ritie s purchased under agreem ents to resell) .
A ll other assets ...................................................................................................................................
Total surp lus accounts .......................................................................................................................
OF BANKS
146,372,198
LIABILITIES
Total lia b ilitie s ........................................................................................................................
Subordinated notes and debentures ...............................................................................................
AND
Savings d e p o sits-to ta l
Subject to transfer by order (interest-brearing)
O th e r
Time deposits-total
Demand d ep osits-tota l
Subject to transfer by order (noninterest-bearing)
O th e r
ASSETS
S a vin gs and tim e d e p o s its — t o t a l ........................................................
...............................................................................................................
...................................................................
.....................................................................................
...................................................................................
...............................................................................................................
............................................................
.....................................................................................................
Of total assets other than cash and U.S. Government obligations:
Total surp lus accounts
..........................................................................................................
N um ber of b a n k s .......................................................................................................
7.71
462
r
2 Does not include figures for banks w ho did not file Reports of Condition (42 in June, 53 in Decem ber).
Totals adjusted due to incom plete reporting by som e noninsured banks.
169
1 70
T a b le 109.
ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER CALL DATES, 1974-1979
(Amounts in thousands of dollars)
A sset, liability, or expense item
Dec. 31, 19742
Dec. 31, 19752
Dec. 31, 1976
Dec. 31, 1977
Dec. 31, 1978
Dec. 31, 1979
899,056,643
938,888,209
1,011,273,832
1,137,794,616
1,273,189,105
1,405,665,994
Cash and due from banks— t o ta l...................................................................................................
126,069,289
129,022,793
130,210,127
160,382,169
178,327,313
192,420,607
Cash item s in p ro ce s s of collectio n ..........................................................................................
Dem and balances w ith co m m e rcia l banks in the United S t a t e s ...........................................
A ll other balances w ith d e posito ry in stitu tion s in the U .S . and with banks in
foreign c o u n trie s ......................................................................................................................
Balances with Federal B a n k s .......................................................................................................
4 7 ,2 7 9,7 9 7
3 4 ,3 9 9,4 7 0
4 7 ,3 3 2,7 3 5
3 2,1 6 8,6 6 4
4 8 ,3 6 8,1 2 6
3 3 ,0 2 2,2 4 0
66,4 5 1,2 8 8
3 9 ,2 3 8,4 9 0
7 5,2 9 1,8 0 9
4 2 ,5 7 2,3 2 3
81,933,644
47,940,502
5 ,54 6 ,81 2
2 7,1 1 6,2 1 0
1 1,7 2 7,0 0 0
1 0,387,072
2 6 ,7 7 9,0 6 5
12,355,257
10,664,363
2 5,9 6 4,3 4 0
1 2,191,058
11,3 5 1,6 1 2
2 9 ,3 3 9,1 2 6
14,0 0 1,6 5 3
10,4 9 3,6 1 8
3 4,3 9 8,1 0 7
1 5 ,5 7 1,4 5 6
1 1,703,690
3 2,240,418
18,602,353
Securities— total .............................................................................................................................
193,877,525
227,831,583
249,964,940
258,404,575
268,777,856
285,484,061
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 ......................................................................................................................
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
88,221,453
49,313,676
132,568,154
15,380,778
Federal funds sold and securities purchased under agreements to r e s e ll..........................
38,944,238
37.361.788
45,855,864
49,881,414
48,755,878
61,065,864
Loans, net ........................................................................................................................................
493,064,162
488,721,442
518,737,329
591,327,780
682,866,654
766,830,747
5 ,87 1 ,66 0
4 98 ,9 35 ,8 22
7 ,2 5 8 ,20 9
6 ,07 0 ,34 4
4 94 ,7 9 1 ,7 8 6
7,48 9 ,88 4
6 ,1 9 5 ,2 7 9
5 24 ,9 32 ,6 08
12,625,341
694,793
5 9 8 ,0 22 ,5 73
14,7 0 2,9 9 6
7 ,71 4 ,70 8
6 9 0 ,5 81 ,3 62
1 7,7 2 6,8 7 0
8 ,958,983
7 75 ,7 89 ,7 30
2 0,532,380
.........................................................................................................................
506,194,031
502,281,670
537,557,949
612,725,569
708,308,232
796,322,110
Real estate lo a n s— t o t a l .............................................................................................................
' ...................................................................................
................................................................................................................
...............................................................
.............................................
...................................................................
L oans to financial in s t itu tio n s .....................................................................................................
L oans fo r p u rch asin g or carrying s e c u r it ie s ............................................................................
Loans to finance ag ricultural p ro duction and other loans to f a r m e r s ..................................
C om m e rcial and in du strial loans ..............................................................................................
L oans to in d iv id u a ls— t o t a l......................................................... ..................................................
.......................................
..................................................................................................
...........................................................
1 31,739,920
0
6,030,121
74,580,012
7,543,920
43,585,867
1 36,1 96 ,1 54
1 50 ,9 86 ,9 19
1 7 8 ,6 32 ,3 20
2 1 3 ,6 25 ,2 37
27,269,354
8,480,930
118,476,776
5,723,046
53,675,131
2 44,796,237
45,2 0 4,5 1 5
9 ,18 7 ,66 3
1 8,226,897
184,074,531
103,692,681
38,9 6 7,6 6 4
1 0,879,410
20,1 3 8,9 5 2
1 75 ,9 46 ,9 06
1 06 ,8 48 ,7 96
3 5 ,8 4 8,3 2 6
1 5,088,146
2 3 ,2 1 6,3 6 9
178,635,361
118,8 63 ,1 53
36,816,981
17,1 1 0,9 1 8
2 5,7 1 3,0 7 3
197,0 76 ,5 15
141,2 57 ,4 46
4 3,4 5 9,0 0 7
1 4,380,222
2 8 ,1 9 1,7 6 3
2 23 ,2 43 ,8 65
1 67,675,391
4 1,919,383
1 3,501,352
3 1,036,748
2 57,678,468
1 87,789,998
Plus: A llo w ances fo r p o ssible loan lo sses ...............................................................................
Loans, t o t a l........................................................................................................................................
Plus: Unearned incom e on loans ..............................................................................................
Loans gross
Construction and land development
Secured by farm land
Secured by 1- to 4-family residential properties
Secured by multi-family (5 or more) residential p rop e rties
Secured by nonfarm nonresidential properties
To purchase private passenger automobiles on installment b a s is
Credit cards and related plans
To purchase mobile homes (excluding travel trailers)
All other installment loans for household, family and other personal
expenditures .............................................................................................................................
Single payment loans for household, family and other personal
expenditures .............................................................................................................................
32,942,938
11,126,994
9,001,883
27,631,598
22,989,268
0
6,370,212
77,029,917
5,899,737
46,896,288
33,509,251
12,351,630
8,667,742
29,099,650
23,220,523
17,347,914
6,718,186
81,110,248
4,440,412
41,370,159
39,824,875
14,430,339
8,737,928
31,549,012
24,320,999
21,389,331
7,730,264
96,757,037
4,907,100
47,848,588
49,861,799
18,475,596
9,125,428
35,852,029
27,942,594
61,051,302
24,496,572
9,734,878
41,853,614
30,539,025
32,929,259
8,562,893
137,346,068
6,305,464
59,652,553
67,804,976
29,958,653
10,658,711
47,139,893
32,227,763
A ll other lo a n s ........................................................................................................................................
14,067,824
13.303.788
14,919,675
1 6,118,316
1 7,732,747
19,599,924
Total loans and s e c u ritie s ..............................................................................................................
725,885,925
753,914,813
814,558,133
899,613,769
1,000,400,388
1,113,380,672
FEDERAL DEPOSIT INSURANCE CORPORATION
Total a s s e ts ..........................................................................................................................................
Lease financing receivables .......................................................................................
Bank prem ises, furniture and fixtures, and other assets representing bank
p r e m is e s ....................................................................................................................
Real estate ow ned other than bank p r e m is e s ..........................................................
All other a s s e t s .............................................................................................................
3 ,05 6 ,75 5
4 ,41 3 ,01 4
5 ,1 1 9 ,28 0
5,810,261
7 ,65 7 ,99 6
9 ,951,916
1 4,288,523
8 11,239
2 8,9 4 4,9 1 2
15,598,231
1,90 9 ,55 5
3 4,0 2 9,8 0 3
1 6,702,977
2,894,011
4 1,7 8 9,3 0 4
1 8,3 4 4,5 9 5
3 ,09 5 ,49 6
5 0 ,5 4 8,3 2 6
2 0,5 5 1,0 9 7
2,475,901
6 3 ,7 7 6,4 1 0
2 2,605,926
2 ,085,954
6 5,220,919
1,405,665,994
..............................................................................
899,056,643
938,888,209
1,011,273,832
1,137,794,616
1,273,189,105
B u sin e ss and p e rso n a l d e p o s its — to tal .................................................................
Individuals, p artnerships, and co rp o ra tio n s— dem and .....................................
Individuals, p artnerships, and co rp o ra tio n s— s a v in g s .......................................
...........................................
1 ................................
Individuals, pa rtn e rsh ips, and co rp o ra tio n s — tim e ...........................................
D ep osits accum ulated fo r paym ent of personal loans— t im e ............................
Certified and o ffic e rs ’ checks, tra vele rs’ ch ecks, letters of credit— demand ..
606,374,826
647,239,798
697,387,703
777,177,835
857,642,324
933,830,811
2 37 ,0 69 ,4 68
1 36.074.273
2 4 7 ,8 69 ,2 90
1 60.653.632
2 5 6 ,8 06 ,6 60
1 97,6 60 ,9 54
2 87 ,8 43 ,5 95
2 1 5 ,1 97 ,7 08
3 09 ,3 4 7 ,9 9 8
2 16 ,5 0 3 ,4 4 6
334,126,108
203.132.354
2 22,4 82 ,6 03
3 69,690
10,378,792
2 27 ,6 91 ,7 85
279,512
10,7 4 5,5 7 9
2 31 ,2 11 ,6 73
144,385
11,564,031
2 5 9 ,8 96 ,4 27
100,303
14,1 3 9,8 0 2
3 1 6 ,1 46 ,2 34
109,598
15,5 3 5,0 4 8
380,623,591
G overnm en t d e p o s its — t o t a l .....................................................................................
United States G overnm ent— d e m a n d ...................................................................
United States G overnm ent— sa v in g s1 .................................................................
United States G overnm ent— t i m e ..........................................................................
States and p o litical s u b d iv is io n s — dem and ........................................................
States and p o litical s u b d iv is io n s — s a v in g s1 ........................................................
States and political s u b d iv is io n s — t i m e ...............................................................
74,215,373
70,707,733
71,946,030
84,641,977
88,240,496
86,768,339
4 ,82 2 ,29 9
3,126,631
5 00,147
1 8,706,776
588,481
18,8 7 9,1 8 0
5 0,186,151
48,113,441
3 ,04 2 ,57 2
56,735
686,053
1 7,989,214
6 ,0 5 0 ,85 7
4 4 ,1 2 0,5 9 9
7 ,3 4 1 ,31 8
5 8,209
828 ,8 52
19,2 0 8,7 7 3
4 ,78 9 ,44 2
5 2 ,4 1 5,3 8 3
2 ,7 2 5 ,86 2
8 2,733
8 6 6 ,4 99
1 9,2 0 2,1 7 6
4 ,29 8 ,65 4
6 1,0 6 4,5 7 2
2,406,844
72,882
949,192
18,932,709
3 ,794,443
6 0,612,269
A ll other d e p o s its — t o t a l ............................................................................................
....................................................................................................................
....................................................................................................................
..........................................................................................................................
43,322,732
0
22,199,311
44,566,366
113,672
16,913,114
61,593,152
50,222,044
28,235
17,203,654
67,453,933
53,474,157
43,766
16,983,805
70,501,728
60,138,935
50,347
13,816,743
T o tal lia b ilit ie s and eq u ity ca p ita l
Individuals and nonprofit organizations-savings
Corporations and other profit organizations-savings
0
0
65,522,043
160.653.632
0
0
0
63,078,870
40,800,386
0
21,998,972
189,028,878
8,632,076
204,453,839
10,743,869
205,568,072
10,935,374
193,337,392
9,794,962
0
15,948,758
74,006,025
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
830,926,885
378,755,532
220,073,594
330,444,619
929,273,745
1,016,384,548
400.,285,241
226,928,599
395,170,708
1,094,605,175
M is c e lla n e o u s lia b ilit ie s — total ...............................................................................
Federal fund s purchased and secu rities sold under agreem ents to repurchase
Interest bearing dem and notes issued to the U .S. Treasury and other
liabilities fo r borrow ed m oney ..........................................................................
M ortgage indebtedness and liability fo r capitalized le a s e s ................................
All other lia b ilit ie s ....................................................................................................
88,107,647
87,786,577
102,975,877
123,501,267
163,522,078
207,863,851
5 1,2 1 7,4 3 9
52,1 8 9,6 4 7
7 0 ,2 9 8,6 2 6
8 2 ,9 5 2,4 9 5
9 1,2 9 1,6 7 0
112,149,032
4 ,8 1 4 ,56 0
7 25,190
31,3 5 0,4 5 8
4 ,6 0 4 ,2 5 9
775,396
3 0 ,2 1 7,2 7 5
5 ,08 0 ,64 7
8 04,996
2 6 ,7 9 1,6 0 8
6 .69 4 ,41 3
1,03 8 ,85 7
3 2 ,8 1 5,5 0 2
2 2 ,7 9 1,8 1 3
2 ,0 3 5 ,0 2 9
4 7 ,4 0 3 ,5 6 6
27,875,285
2,106,731
65,732,803
1,302,469,026
Demand
Savings
Time
746,112,242
780,746,889
431.553.354
207,050,026
456,001,795
To tal lia b ilit ie s (e x c lu d in g su b o rd in a te d notes and d e b e n tu re s)................
834,219,889
868,533,466
933,902,762
1,052,775,012
1,179,906,626
S u b o rd in a te d n otes and d e b e n t u r e s ...................................................................
4,258,989
4,398,892
5,122,527
5,739,194
5,864,838
5,955,812
Equity c a p ita l— to tal ..............................................................................................
Preferred s to c k — par v a lu e ................................................................................
Com m o n s to c k — par v a lu e ................................................................................
S u r p lu s ..................................................................................................................
Undivided profits and reserve fo r conting encies and other capital
reserves ...........................................................................................................
60,577,765
65,955,851
72,248,543
79,280,410
87,417,641
97,241,158
4 3,4 6 0
1 4,788,893
25,3 1 2,5 7 4
47,881
15,565,026
26,7 0 6,0 5 3
67,328
1 6,221,264
28,8 9 4,3 2 3
98,791
17,2 6 5,2 3 7
3 1 ,0 8 5,4 9 2
113,851
1 8,1 5 7,9 9 7
3 3 ,2 0 2,5 5 7
125,890
20,273,743
3 5,328,623
2 0,4 3 2,8 3 8
23,636,891
2 7,0 6 5,6 2 8
30,8 3 0,8 9 0
3 5 ,9 4 3 ,2 3 6
4 1,512,902
LIABILITIES OF BANKS
To tal d e p o sits .............................................................................................................
....................................................................................................................
......................................................................................................................
..........................................................................................................................
0
ASSETS AND
Demand
Savings'
Time
136.074.273
ro
ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER CALL DATES, 1974-19 7 9 -C O N T IN U E D
(Amounts in thousands of dollars)
T a b le 109.
Dec. 3 1, 19742
Dec. 31, 19752
Dec. 31, 1976
Dec. 31, 1977
Dec. 31, 1978
Dec. 31, 1979
PERCENTAGES
Of total assets:
Cash and due from deposito ry in s t itu tio n s ...................................................................................
U .S . Tre a su ry secu ritie s and o b lig atio n s of other U .S . G overnm en t agencies
and c o rp o ra tio n s ...........................................................................................................................
A ll other secu ritie s ...........................................................................................................................
L oans (including federal fu nd s sold and secu ritie s p u rch ase s under agreem ents
to resell) ........................................................................................................................................
A ll other a s s e t s .................................................................................................................................
Total equity c a p i t a l ...........................................................................................................................
14.02
13.74
12.88
14.10
14.01
13.69
9.23
12.34
12.17
12.09
12.97
11.74
11.58
11.13
1 0.3 7
10.74
9.78
10.53
59.83
4 .5 9
6 .74
56.68
5.31
7.02
5 6.44
5 .96
7.14
5 6.9 4
6 .25
6 .97
5 8.0 7
6.81
6 .87
59.53
6.47
6 .92
Of total assets other than cash and U.S. Treasury securities:
Total equity capital ...........................................................................................................................
N um ber of banks at end of period
.....................................................................................................
8 .40
9.05
9.21
8 .99
8 .70
8 .64
1 4,228
14,384
14,411
1 4,412
14,391
14,364
1 Not available before 1976.
2 W here po ssib le, figu res are restated to reflect current reporting requirem ents. For am ounts on an “ as re ported” basis, see Annual Reports of p rior years.
FEDERAL DEPOSIT INSURANCE CORPORATION
A sse t, liability, or expense item
T a b le 110.
Total a s s e ts
ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS (DOMESTIC AND FOREIGN OFFICES),
UNITED STATES AND OTHER AREAS, 1974-1977
...........................................................................
Cash and due from b a n k s ...............................................................................................................
S e cu ritie s — t o t a l ..............................................................................................................................
............................................................................................................
...............................................
.....................................................................
........................................................................................
Federal fu n d s sold and secu ritie s purchased under agreem ents to resell ..............................
........................................
........................................................................
Total lia b ilitie s and equity capital .....................................................
Total d e p o s it s .......................................................................
Federal fu n d s purchased and secu ritie s sold under agreements to re p u rc h a s e ............
Other liabilitie s fo r borrow ed m oney .................................................
M ortgage indebtedness .............................................................
A ccep tan ces executed and outstanding ...............................................
Other liabilities ......................................................................
Total liabilities (excluding sub ordinated notes and d e b e n tu re s) .......................
Sub ordin ated notes and d e b e n tu re s ..................................................
Reserves on loans and se cu ritie s — total2 ..............................................
Reserve for losses on lo a n s .......................................................
Other reserves on lo a n s ...........................................................
Reserves on securities ............................................................
Equity capital— t o t a l .................................................................
Dec. 31, 1976
Jun e 30, 1977
Dec. 31, 1 9771
1,045,972,427
1,095,388,957
1,182,390,845
1,228,366,375
1,339,393,026
1 78 ,2 95 ,2 59
1 97 ,0 19 ,3 18
1 8 9 ,4 06 ,9 97
2 3 1 ,5 27 ,4 34
2 03 ,7 7 2 ,4 4 9
2 54 ,3 83 ,3 82
2 0 8 ,2 83 ,7 72
259,474,871
2 42,9 83 ,1 42
264,5 25 ,7 96
96,026,151
35,818,251
113,019,592
10,542,996
1,853,806
7,265,000
80,963,492
33,281,405
100,873,178
10,710,644
5,698,715
3 9 ,0 0 5,1 0 3
36,992,511
45,861,131
40,899,161
4 9,8 4 5,0 3 3
5 8 0 ,5 96 ,6 23
3 ,2 7 3 ,6 8 0
1 4,6 7 4,9 9 5
828 ,8 53
7 50 ,2 18
1 0,6 3 2,7 4 7
2 0,895,631
5 8 6 ,0 55 ,7 73
4 ,0 5 4 ,8 1 2
16,054,291
1,93 5 ,83 9
7 89 ,7 18
7 ,0 9 5 ,98 3
21 ,4 7 5 ,5 9 9
6 20 ,8 66 ,8 54
6 ,3 4 7 ,8 3 9
6 2 7 ,2 14 ,6 93
5 ,81 6 ,43 4
17,2 4 2,9 3 0
2 ,97 4 ,07 3
954,500
11,8 6 4,7 8 4
1 8,6 5 4,3 0 8
6 5 6 ,2 24 ,1 03
6 ,67 4 ,63 8
662,898,741
6 ,1 8 6 ,76 5
17,9 4 4,3 5 6
3 ,1 6 2 ,19 2
941,211
1 4,433,352
2 0 ,8 1 6,5 9 2
7 15,851,991
6,894,344
722,7 46 ,3 35
6,977,301
19,010,491
3,13 4 ,04 2
987,244
1 4,280,877
2 1,797,109
1,045,972,427
1,095,388,957
1,182,390,845
1,228,366,375
1,339,393,026
8 71 ,2 2 5 ,1 9 4
5 0,9 8 0,0 6 2
8 ,3 6 8 ,1 5 9
725 ,1 66
1 4 ,1 3 1,2 5 7
2 8,4 2 6,9 3 8
9 73 ,8 5 6 ,7 7 6
4 ,2 6 1 ,3 7 3
8 ,7 7 9 ,6 0 7
9 15 ,8 5 6 ,0 3 9
5 2 ,6 0 9 ,0 5 0
7 ,934,301
774 ,4 50
11,2 9 1,8 6 7
2 9 ,0 3 1,1 8 7
1 ,0 1 7 ,49 6 ,8 94
4 ,4 2 2 ,4 8 4
9 ,1 9 3 ,3 7 5
9 91 ,9 1 3 ,0 0 6
7 0,4 3 5,4 9 4
9 ,51 0 ,10 8
826 ,1 96
1 2,0 4 8,1 7 9
2 0,1 7 1,6 0 9
1 ,1 0 4 ,90 4 ,5 92
5 ,2 2 0 ,56 6
1 ,02 2 ,06 2 ,0 67
75,8 2 0,8 1 5
11,563,041
8 56 ,4 39
14,5 9 4,4 6 7
22,3 3 4,8 8 0
1 ,14 7 ,23 1 ,7 09
5 ,45 0 ,46 5
1,11 6 ,61 7 ,5 56
83,3 1 5,0 0 6
1 3,146,839
1,048,297
14,432,321
2 5,711,530
1,25 4 ,27 1 ,5 49
5 ,830,565
5 9,074,671
6 4 ,2 7 6,2 0 4
7 2 ,2 6 5 ,6 8 7
75,684,201
7 9,290,912
8,466,353
144,446
168,808
96,874,136
34,323,582
103,588,597
f 9,594,671
t- 1,750,989
8,251,407
97,233,796
34,389,521
108,720,777
9,864,455
1,809,269
7,457,053
51,886,435
31,088,271
96,800,855
9,201,132
8,042,625
8,791,680
212,260
189,435
LIABILITIES OF BANKS
Loans, n e t .........................................................................................................................................
Plus: Reserve fo r p o ssib le loan lo s se s 2 ..................................................................................
Loans, t o t a l.......................................................................................................................................
D irect lease f in a n c in g .....................................................................................................................
Bank p re m ise s, furniture and fixtures, and assets representing bank prem ises ....................
Real estate ow ned other than bank p r e m is e s ..............................................................................
Investm ents in u n con so lid ated su b sid ia rie s and associated com panies ................................
Cu sto m e rs liability on accep tances o u ts ta n d in g
Other assets
Dec. 31, 1975
ASSETS AND
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 ........................................................................................................
Dec. 31, 1974
MEMORANDA
..................................................
.........................................................
...............................................................
S tandby letters of credit outstanding3
Tim e certificates of $ 1 0 0,00 0 or m ore:3
Tim e certificates of d e p o s it
Other tim e deposits
N um ber of banks
................................................................................................................................
For more detailed 1977 data, see Assets and Liabilities, Commercial and Mutual Savings
^Changes in the reporting of loan losses beginning in 1976 are discussed on page 160.
Data not available prior to 1976.
14,384
17,1 9 8,8 3 5
2 0,043,593
1 12 ,0 53 ,7 45
2 4 ,5 0 3,5 7 2
1 35,756,267
2 6,3 6 6,5 6 8
14,411
14,441
14,412
Banks, December 31, 1977.
173
14,228
1 6 ,4 1 0,4 2 0
114,172,181
2 3,3 0 7,9 8 5
A S S E T S A N D L IA B IL IT IE S O F IN S U R E D C O M M E R C IA L B A N K S (D O M E S T IC A N D F O R E IG N O F F IC E S ),
U N IT E D S T A T E S A N D O T H E R AR E A S , D E C E M B E R 31, 1 9 7 8 1
1 74
Tab le 110A.
Banks with foreign offices
Domestic only
banks and
reporting
branches
Foreign offices
and Edge and
agreement
subsidiaries
Domestic offices
Consolidated
reports
Consolidated
Total — Columns 1
and 4
608,421,045
847,630,479
1,508,217,207
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 ta l..........................................................................................................
174,474,133
7,724,550
94,121,950
101,846,500
276,320,633
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
U .S. Treasury securities ..........................................................................................
Obligations of U.S. Government agencies and co rp o ra tio n s..................................
Obligations of States and political s u b d iv isio n s.......................................................
Other bonds, notes, and d e b e n tu res.......................................................................
Corporate s t o c k ........................................................................................................
Trading account s e c u ritie s .......................................................................................
Federal funds sold and securities purchased under agreements to re se ll
............
Loans, net ....................................................................................................................
................................................................
...............................................
..............................................................
..................................................................
...............
...............................................................................
..
..............................................................
.......
........................................................................................
Bank premises, furniture and fixtures, and other assets representing bank premises
Real estate owned other than bank premises
...........................................................
199,066
23,809,210
24,008,276
48,927,710
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
C O RPO RA TIO N
Less: reserve for possible loan lo s s e s .....................................................................
Loans, total ..................................................................................................................
Les ' unearned income on lo a n s .............................................................................
Loans, gross ................................................................................................................
Real estate loans (including only loans secured primarily by real estate) ..............
Loans to financial institutions .................................................................................
To real estate investment trusts and mortgage c o m p a n ie s ................................
To commercial banks in the U .S ...........................................................................
To U.S. branches and agencies of foreign banks ..........................................
To other commercial banks in the U .S .............................................................
To banks in foreign countries
To foreign branches of other U.S. b a n k s
To other banks in foreign co u n trie s .................................................................
To finance companies in the U .S
To other financial in stitu tio n s
Loans for purchasing or carrying securities (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 (d o m ic ile ).....................................................................
Loans to individuals for household, family and other personal expenditures
All other loans
Loans to foreign governments and official institutions ......................................
Other lo a n s ............................................................................................................
Direct lease fin a n c in g ....................................................................................................
24,919,434
366,064,370
INSURANCE
239,209,434
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
DEPOSIT
660,586,728
FEDERAL
Total Assets..................................................................................................................
Cash and due from depository institutions .................................................................
Cash items in process of collection and unposted debits ......................................
Dtemand balances with commercial banks in the U .S ...............................................
Time and savings balances with commercial banks in the U .S ...............................
Balances with other depository institutions in the U .S .............................................
Balances with banks in foreign co u n trie s.................................................................
With foreign branches of other U.S. b a n k s .........................................................
With other banks in foreign countries .................................................................
Balances with central b a n k s .....................................................................................
Balances with Federal Reserve banks .................................................................
Balances with other central b a n k s .......................................................................
Currency and coin ....................................................................................................
Investments in unconsolidated subsidiaries and associated co m p a n ie s ....................
47,549
-1 ,3 3 7 ,5 6 6
2,361,274
1,023,708
1,071,257
Customer’s liability of acceptances outstanding .......................................................
343,721
3,797,994
18,657,383
22,455,377
22,799,098
Total d e p o s its ..........................................................................................................
Individuals, partnerships and c o rp o ra tio n s.......................................................
Demand ...........................................................................................................
Savings ...........................................................................................................
T im e .................................................................................................................
U.S. G overnm e n t................................................................................................
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 d e p o s its ................................................................................................
Demand ..........................................................................................................
Savings ...........................................................................................................
T im e .................................................................................................................
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 m o n e y ..................
Mortgage indebtedness ..............................................................................................
Acceptances executed and o u tsta n d in g ......................................................................
Other lia b ilitie s .............................................................................................................
Total liabilities (excluding subordinated notes and debentures) ............................
Subordinated notes and debentures .........................................................................
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
6,652,697
21,137,970
6,218,268
905,452
344,036
7,591,874
609,399,584
2,575,147
Equity capital— t o ta l..................................................................................................
33,027,954
19,418,709
28,127,286
608,421,045
847,630,479
1,508,217,207
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
2,745,315
109,666
10,181,142
43,135
3,838,014
4,100,385
238,891,911
293,832
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
8,837,414
70,153,700
16,569,445
1,128,767
18,839,318
19,823,468
566,325,710
3,289,691
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
11,582,729
70,263,366
26,750,587
1,171,902
22,677,332
23,923,853
805,217,621
3,583,523
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
18,235,426
91,401,336
32,968,855
2,077,354
23,021,368
31,515,727
1,414,617,205
6,158,670
48,611,997
23,691
38,805,644
38,829,335
87,441,332
^
OF BA NKS
239,209,434
LIABILITIES
-1 3 ,6 0 9 ,2 4 5
AND
8,708,577
660,586,728
ASSETS
Other a s s e t s .................................................................................................................
Total liabilities and equity c a p ita l............................................................................
MEMORANDA
Standby letters of credit outstan d in g..........................
Time certificates of $100,000 or more:
Time certificates of deposits ..................................................................................
Other time deposits ................................................................................................
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
Number of b a n k s ........................................................................................................
Number of reporting b ra n ch e s ....................................................................................
14,236
19
155
14,391
19
_
_
-
-
1 Totals for items that are not explicitly reported are derived mathematically.
N/A Not available.
CJI
A S S E T S A N D LIA B ILIT IE S O F IN S U R E D C O M M E R C IA L B A N K S (D O M E S T IC A N D F O R E IG N O F F IC E S ),
U N IT E D S T A T E S A N D O TH E R A R E A S , D E C E M B E R 31, 1 9 7 9 1
1 76
Ta b le 110B.
Banks with foreign offices
Domestic only
banks and
reporting
branches
Foreign offices
and Edge and
agreement
subsidiaries
Domestic offices
Consolidated
reports
Consolidated
Total — Columns 1
and 4
688,210,246
979,337,892
1,692,078,001
114,608,166
1,785,860
5,186,135
1,718,509
68,539
102,042,099
26,089,816
75,952,283
3,518,875
420,761
3,098,114
288,149
115,199,762
63,722,234
19,812,146
901,042
56,949
2,723,432
994,385
1,729,047
20,670,745
20,629,848
40,897
7,313,214
229,807,928
65,508,094
24,998,281
2,619,551
125,488
104,765,531
27,084,201
77,681,330
24,189,620
21,050,609
3,139,011
7,601,363
306,601,551
83,624,880
53,118,490
5,677,772
2,706,536
106,811,042
N/A
N/A
35,800,185
32,661,174
N/A
18,862,646
Securities— to ta l..........................................................................................................
180,654,263
8,676,287
104,593,025
113,269,312
293,923,575
U .S. Treasury securities .........................................................................................
Obligations of U.S. Government agencies and co rp o ra tio n s..................................
Obligations of States and political su b d iv is io n s .......................................................
Other bonds, notes, and d e b e n tu res.......................................................................
Corporate stock ........................................................................................................
Trading account s e c u ritie s .......................................................................................
57,941,042
33,884,968
84,289,498
3,584,790
491,907
462,058
205,023
49,102
475,313
6,631,241
169,430
1,146,178
30,280,411
15,428,601
48,042,973
1,668,164
1,003,196
8,169,680
30,485,434
15,477,703
48,518,286
8,299,405
1,172,626
9,315,858
88,426,476
49,362,671
132,807,784
11,884,195
1,664,533
9,777,916
36,013,875
354,941
24,907,823
25,262,764
61,276,639
Loans, net ....................................................................................................................
392,337,889
160,104,659
371,417,294
531,521,953
923,859,842
Less: reserve for possible loan lo s s e s .....................................................................
Loans, total ..................................................................................................................
Less: unearned income on lo a n s .............................................................................
Loans, gross ................................................................................................................
Real estate loans (including only loans secured primarily by real estate) ..............
Loans to financial institutions .................................................................................
To real estate investment trusts and mortgage c o m p a n ie s ................................
To commercial banks in the U .S ...........................................................................
To U.S. branches and agencies of foreign banks ..........................................
To other commercial banks in the U .S .............................................................
To banks in foreign countries .............................................................................
To foreign branches of other U.S. b a n k s .........................................................
To other banks in foreign co u n trie s .................................................................
To finance companies in tne U .S ..........................................................................
To other financial institu tio n s...............................................................................
Loans for purchasing or carrying securities (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 (d o m ic ile ).....................................................................
Loans to individuals for household, family and other personal expenditures
All other loans ..........................................................................................................
Loans to foreign government and official institutions ........................................
Other lo a n s ............................................................................................................
Direct lease fin a n cin g ....................................................................................................
3,944,967
396,282,856
13,867,819
410,150,675
150,244,567
4,032,783
906,529
530,572
N/A
N/A
279,637
N/A
N/A
534,672
1,781,373
2,381,916
26,136,821
99,500,357
N/A
N/A
121,099,677
6,754,554
N/A
N/A
1,895,218
224,756
160,329,415
1,390,457
61,719.872
5,347,419
27,894,848
103,893
537,932
256,091
281,841
20,337,528
320,276
20,017:252
294,524
6,620,971
1,072,287
422,273
94,477,628
5,059,717
89,417,911
5,532,886
26,972,531
23,510,562
3,461,969
1,823,521
5,013,752
376,431,046
6,594,843
383,025,889
93,699,271
37,620,545
6,538,057
3,739,925
1,396,410
2,343,515
7,583,348
314,471
7,268,877
8,891,137
10,868,078
11,021,335
4,882,787
157,148,759
148,717,088
8,431,671
66,085,494
12,567,698
1,842,733
10,724,965
8,047,517
5,238,508
536,760,461
7,985,300
544,745,761
99,046,691
65,515,393
6,641,950
4,277,857
1,652,501
2,625,356
27,920,876
634,747
27,286,129
9,185,661
17,489,049
12,093,622
5,305,060
251,626,386
153,776,804
97,849,582
71,618,380
39,540,229
25,353,295
14,186,934
9,871,038
9,183,475
933,043,317
21,853,119
954,896,436
249,291,258
69,548.176
7,548,479
4,808,429
N/A
N/A
28,200,513
N/A
N/A
9,720,333
19,270,422
14,475,538
31.441,881
351,126,743
N/A
N/A
192,718,057
46,294,783
N/A
N/A
11,766,256
Bank premises, furniture and fixtures, and other assets representing bank premises
13,518,925
973,800
9,057,121
10,030,921
23,549,846
892,217
122,099
1,117,304
1,239,403
2,131,620
Real estate owned other than bank premises
.............................................................
CO RPO RA TIO N
Federal funds sold and securities purchased under agreements to resell..............
INSURANCE
291,127,646
76,793,623
18,116,786
28,120,209
3,058,221
2,581,048
2,045,511
N/A
N/A
11,610,565
11,610,565
N/A
11,261,283
DEPOSIT
712,740,109
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 co u n trie s.................................................................
With foreign branches of other U.S. b a n k s .........................................................
With other banks in foreign countries .................................................................
Balances with central b a n k s .....................................................................................
Balances with Federal Reserve banks .....................................................................
Balances with other central b a n k s ...........................................................................
Currency and coin ....................................................................................................
FEDERAL
Total Assets..................................................................................................................
Investments in unconsolidated subsidiaries and associated co m p a n ie s ....................
42,259
517,763
552,626
1,070,389
1,112,648
Custom er’s liability of acceptances outstanding ........................................................
402,896
6,756,150
25,398,900
32,155,050
32,557,946
27,918,874
25,109,134
35,298,078
688,210,246
979,337,892
1,692,078,001
Total d e p o sits...........................................................................................................
Individuals, partnerships and c o rp o ra tio n s........................................................
Demand ...........................................................................................................
Savings ...........................................................................................................
T im e .................................................................................................................
U.S. G overnm en t.................................................................................................
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 d e p o s its ................................................................................................
Demand ...........................................................................................................
Savings ...........................................................................................................
T im e .................................................................................................................
615,266,936
538,328,449
178,741,370
134,100,569
225,486,510
1,863,548
1,417,407
49,591
396,550
56,895,859
13,598,401
3,176,754
40,120,704
211,233
40,226
954
170,053
9,752,594
7,883,540
6,321
1,682,733
448,537
249,019
0
199,518
1,091,858
738,333
20,881
332,644
272,493,380
87,895,077
N/A
N/A
N/A
215,333
N/A
N/A
N/A
290,247
N/A
N/A
N/A
36,769,246
N/A
N/A
N/A
17,936,120
N/A
N/A
N/A
126,247,938
N/A
N/A
N/A
N/A
N/A
N/A
N/A
475,307,831
376,165,099
154,800,406
68,662,288
152,702,405
1,553,503
980,947
21,155
551,401
26,150,452
5,280,004
608,035
20,262,413
6,846,690
2,110,900
20,720
4,715,070
45,343,782
40,077,903
355
5,265,524
10,199,011
8,924,042
169
1,274,800
N/A
N/A
N/A
N/A
747,801,211
464,060,176
N/A
N/A
N/A
1,768,836
N/A
N/A
N/A
26,440,699
N/A
N/A
N/A
43,615,936
0
0
0
63,279,902
0
0
0
136,446,949
N/A
N/A
N/A
N/A
N/A
N/A
N/A
1,363,068,147
1,002,388,625
N/A
N/A
N/A
3,632,384
N/A
N/A
N/A
83,336,558
N/A
N/A
N/A
43,827,169
N/A
N/A
N/A
72,852,496
N/A
N/A
N/A
136,895,486
N/A
N/A
N/A
1,091,858
N/A
N/A
N/A
6,854,858
3,139,419
9,049,294
12,188,713
19,043,571
24,801,700
197,856
87,347,332
87,545,188
112,346,888
Interest-bearing demand notes and other liabilities for borrowed m o n e y ..................
5,933,394
11,673,614
21,919,296
33,592,910
39,526,304
Mortgage indebtedness ..............................................................................................
900,998
43,478
1,204,973
1,248,451
2,149,449
Acceptances executed and o u tstan d in g ......................................................................
403,221
5,825,332
26,612,866
32,438,198
32,841,419
Federal funds purchased and securities sold under agreements to repurchase
Other lia b ilitie s .............................................................................................................
9,371,013
597,028
28,684,160
29,281,188
38,652,201
Total liabilities (excluding subordinated notes and debentures) ............................
656,677,262
290,830,688
641,076,458
931,907,146
1,588,584,408
..........................................................................
2,617,712
296,958
3,338,100
3,635,058
6,252,770
Equity capital — total .................................................................................................
53.445.135
0
43,795,690
43,795,690
97,240,825
Standby letters of credit ou tstan d in g ..........................................................................
3,228,477
6,686,660
24,816,081
31,502,741
34,731,218
Time certificates of $100,000 or more:
Time certificates of deposits ..................................................................................
Other time deposits .................................................................................................
79,583,973
7,889,601
N/A
N/A
107,330,684
18,046,394
N/A
N/A
N/A
N/A
Number of b a n k s .........................................................................................................
Number of reporting b ra n ch e s....................................................................................
14,200
19
164
14,364
19
Subordinated notes and debentures
MEMORANDA
'Totals for items that are not explicitly reported are derived mathematically.
NOTE: N /A —
Not Available.
OF BANKS
Certified and officers checks, travelers checks, and letters of credit sold for cash . . .
LIABILITIES
-2 ,8 0 9 ,7 4 0
291,127,646
AND
10,188,944
712,740,109
ASSETS
Other a s s e t s .................................................................................................................
Total liabilities and equity c a p ita l............................................................................
A S S E T S A N D L IA B IL IT IE S O F IN S U R E D M U T U A L S A V IN G S B A N K S IN T H E U N IT E D S T A T E S (S T A T E S A N D O T H E R A R E A S ),
D E C E M B E R C A LL D A TES , 197 4-1 979
1 78
Tab le 111.
(Am oun ts in th ousan ds of do llars)
Dec. 31, 1976
Dec. 31, 1977
Dec. 31, 1978
Dec. 31, 1979
Total A sse ts................................................................................................................................
95,589,401
107,280,765
120,839,827
132,201,371
142,352,807
147,112,481
Cash and due from depository institutions...........................................................................
2,053,353
2,195,390
2,188,926
2,214,478
3,570,970
2,929,219
Currency and c o in ................................................................................................................
Demand balances with commercial banks in the United S t a t e s ........................................
Other balances with depository institutions .......................................................................
Cash items in process of collection ...................................................................................
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
425,007
808,144
1,558,068
138,000
Securities— total ....................................................................................................................
22,684,614
30,421,034
37,984,627
42,219,724
43,546,458
43,494,247
U.S. Treasury, agency, and corporation obligations .............................................................
...............................................................................................
.........................................................................................
....................................... ............................................
........................................................................................................
Corporate b o n d s ......................................................................................................................
Obligations of States and political subdivisions in the U .S .....................................................
Other bonds, notes, and debentures .....................................................................................
Corporate stock— t o t a l............................................................................................................
....................................................................................................................................
....................................................................................................................................
5,967,835
712,274
1,604,165
694,251
2,957,145
9,468,682
1,312,116
2,761,242
1,167,218
4,228,106
13,194,506
1,981,205
3,237,461
1,383,006
6,592,834
15,496,605
1,857,506
3,427,509
1,751,417
8,460,173
16,215,435
1,371,969
3,270,419
1,517,745
10,055,302
17,394,228
1,423,345
2,904,333
1,360,848
11,705,702
10,560,303
882,620
1,856,557
3,417,299
13,503,561
1,488,631
2,329,685
3,630,475
15,781,623
2,301,574
3,019,191
3,687,733
16,449,941
2,770,854
3,503,057
3,999,267
16,376,504
3,297,215
3,587,862
4,069,442
16,129,261
2,840,790
3,106,129
4,023,839
Maturing in 1 year and less
Maturing in over 1 thru 5years
Maturing in over 5 thru 10 years
Maturing over 10 years
B an k
Other
Federal funds sold and securities purchased under agreements to re s e ll............................
Less: Unearned income
Less: Allowance for possible loan losses
Real estate loans, n e t
Construction and land development
Other loans, g ro s s ..................................................................................................................
Less: Unearned income ......................................................................................................
Less: Allowance for possible loan losses ...........................................................................
Other loans, n e t ..................................................................................................................
Loans to financial institutions:
To real estate investment trusts and mortgage companies ..........................................
To domestic commercial and foreign banks ...................................................................
To other financial institutions .........................................................................................
Loans for purchasing or carrying securities (secured and unsecured):
To brokers and dealers in securities ...............................................................................
Other loans for purchasing or carrying securities ........................................................
Loans to finance agricultural production (except those secured primarily by real estate) .
Commercial and industrial loans (except those secured primarily by real estate) ............
Loans to individuals for household, family, and other personal expenditures
(include purchased paper):
....................................
........
............
All other lo a n s ......................................................................................................................
installment loans to repair and modernize residential property
Other installment loans for household, family, and other personal expenditures
Single-payment loans for household, family, and other personal expenditures
Total net loans and securities.......................................................................................
897,063
387,161
3,300,572
1,322,316
409,239
3,590,028
1,880,491
387,736
3,681,706
1,889,991
346,793
3,677,046
2,688,582
67,449,217
70,812,040
75,990,422
82,307,795
89,478,403
93,869,281
65,339,748
N/A
N/A
65,339,748
821,250
49,185
68,371,859
N/A
N/A
68,371,859
824,494
48,239
72,820,626
N/A
N/A
72,820,626
854,499
46,364
78,739,467
N/A
N/A
78,739,467
1,117,143
39,101
85,110,268
N/A
N/A
85,110,268
1,506,918
38,425
89,276,017
529,384
173,180
88,573,453
1,672,333
37,105
23,553,308
18,275,751
1,688,126
10,076,268
10,875,860
2,109,469
N/A
N/A
2,109,469
N/A
18,339
26,324
743
930
1,416
175,360
22,930,121
20,123,915
1,949,245
10,693,613
11,802,232
2,440,181
N/A
N/A
2,440,181
N/A
26,747
32,835
0
1,990
1,460
297,097
22,368,394
23,393,029
2,428,166
10,874,242
12,855,932
3,169,796
N/A
N/A
3,169,796
N/A
26,955
57,234
0
1,494
918
599,849
21,615,197
28,437,445
2,695,114
11,360,282
13,475,185
3,568,328
N/A
N/A
3,568,328
N/A
10,254
56,679
30,000
1,285
1,407
506,372
21.163,512
33,524,543
2,940,909
11,778,017
14,157,944
4,368,135
N/A
N/A
4,368,135
N/A
97,670
117,296
2,000
1,688
1,167
375,396
20,496,935
37,742,289
2,866,818
11,999,096
14,461,441
5,635,742
328,944
10,970
5,295,828
1,689
228,118
47,843
0
1,791
1,120
475,846
0
1,812,329
N/A
0
1,984,829
N/A
0
2,412,478
N/A
0
2,892,234
N/A
0
3,685,543
N/A
776,860
2,577,044
1,318,908
90,133,831
101,233,074
113,975,049
124,527,519
133,024,861
137,363,528
74,028
95,223
70,868
70,097
87,375
206,523
CO RPO RA TIO N
Real estate loans, g r o s s ..........................................................................................................
.....................................................................................................
...........................................................................
..........................................................................................................
...............................................................................
Secured by farmland ......................................................................................................
Secured by residential properties:
Secured by 1 - to 4 -fa m ily residential properties:
Insured by FHA or guaranteed by V A .....................................................................
Conventional............................................................................................................
Secured multifamily (5 or more) residential properties:
Insured by FHA .
. .
...........................................................................
Conventional............................................................................................................
Secured by nonfarm nonresidential properties .............................................................
964,856
374,851
3,255,624
INSURANCE
Loans, net ..................................................................................................................................
348,290
3,069,009
DEPOSIT
Dec. 31, 1975
FEDERAL
Dec. 31, 1974
Asset, liability, or surplus account
Bank premises, furniture and fixtures, capital leases, and other assets representing
bank premises ...................................................................................................................
Real estate owned other than bank p re m is e s ........................................................................
Investment in unconsolidated subsidiaries and associated companies ................................
Other assets .......................................................................................................................
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
2,098,561
1,389,116
295,155
150,958
2,295,923
Total liabilities and surplus accounts......................................................................................
95,589,401
121,070,592
120,839,827
132,201,371
142,352,807
147,112,481
Deposits— total .....................................................................................................................
86,814,415
110,583,326
Savings and time deposits— to ta l......................................................................................
...................................................................................................
..........................................................
...........................................................................................................................
.......................................................................................................
.................................................................................................
....................................................
.......................................................................................................................
85,904,825
110,998,759
121,265,988
129,449,932
109,553,709
109,895,767
132,337,884
56.497.626
N/A
56.497.626
29,407,199
909.590
N/A
909.590
119,734,061
127,600,309
129,674,702
Federal funds purchased and securities sold under agreements to repurchase ..............
Mortgage indebtedness and liability for capital le a s e s ......................................................
Other liabilities for borrowed money ................................................................................
Other liabilities ...................................................................................................................
217,561
N/A
667,256
1,067,626
108,715
69,118
169,166
578,706
1,643,214
481,778
1,475,903
356,329
1,439,661
483,710
1,472,794
1,025,607
1,646,051
1,959,463
876,263
Total lia b ilitie s ...............................................................................................................
88,766,858
112,649,722
112,863,867
123,391,658
132,700,296
136,882,664
Subordinated notes and debentures....................................................................................
169,460
196,374
213,264
353,386
353,956
Savings deposits-total
Subject to transfer by order (interest-bearing)
Other
Time deposits-total
Demand deposits-total
Subject to transfer by order (noninterest-bearing)
Other
70.307.268
N/A
70.307.268
39,246,441
1.029.617
N/A
1.029.617
67.295.029
N/A
67.295.029
42,600,738
1.102.992
N/A
1.102.992
70.382.619
N/A
70.382.619
49,351,442
1.531.927
N/A
1.531.927
64.291.598
N/A
64.291.598
63,308,711
1.849.623
N/A
1.849.623
54,482,515
4,825,465
49,657,050
75,192,187
2,663,182
1,541,281
1,121,901
Miscellaneous liabilities:
N/A
N/A
65,840
382,373
7.762.696
8.456.327
9.298.555
9,847,444
N/A
N/A
N/A
N/A
7.762.696
N/A
N/A
8.456.327
N/A
N/A
9.298.555
N/A
N/A
4,525,587
4,167,296
1,154,561
2.15
6.24
17.49
71.57
2.55
6.96
1.94
8.92
19.35
67.12
2.68
6.79
1.81
10.92
20.51
63.98
2.78
6.42
1.68
11.72
20.21
63.68
2.71
6.40
2.51
11.39
19.20
64.18
2.72
6.53
1.99
11.82
17.74
65.64
2.81
6.69
7.60
7.62
7.36
7.39
7.59
7.77
320
476
329
323
325
324
PERCENTAGES
Of total assets:
Cash and due from depository in stitu tio n s..........................................................
U.S. Treasury .........................................................................................................................
All other securities ...............................................................................................
Net loans (including federal funds sold and securities purchased under agreements to resell)
All other a s s e t s .....................................................................................................
Total surplus a c c o u n ts .................................................................
Of total assets other than cash and U.S. Government obligations:
Total surplus a c c o u n ts .............................................................................
Number of banks ..................
179
OF BANKS
8.224.496
8.224.496
LIABILITIES
6.653.083
6.653.083
AND
S u r p lu s ...............................................................................................................................
Undivided profits .........................................................................................................
Other surplus re se rv e s .........................................................................
N/A
ASSETS
Suralus accounts— total .......................................................................................................
N/A
1 80
Table 1 12.
P E R C E N T A G E S O F A S S E T S , LIAB ILIT IES, A N D E Q U I T Y C A P I T A L O F I N S U R E D C O M M E R C I A L B A N K S
O P E R A T I N G T H R O U G H O U T 1979 IN T H E U N IT E D S T A T E S A N D O T H E R A R E A S , D E C E M B E R 31, 1979
BANKS GROUPED BY AMOUNT OF ASSETS
Banks with assets of—
Asset, liability, or equity capital item
All
banks
Less
than
$5 million
$5.0 million
to
$9.9 million
$10.0 million
to
$24.9 million
100.0%
$25.0 million
to
$49.9 million
$10.00 million
to
$299.9 million
100.0%
$300.0 million
to
$499.9 million
$500.0 million
to
$999.9 million
$1.0 billion
to
$4.9 billion
100.0%
100.0%
100.0%
100.0%
100.0%
13.7
6.3
10.7
14.4
9.6
12.2
9.3
9.4
9.2
8.6
9.6
8.0
10.8
7.8
13.0
7.8
13.2
7.3
14.0
5.7
18.2
3.7
3.5
9.4
1.1
9.5
3.3
.5
8.5
6.1
.5
6.7
10.2
.5
5.4
12.4
.5
4.7
13.2
.6
4.3
13.2
.5
4.5
11.4
1.0
3.4
11.0
1.0
2.8
9.7
1.1
1.9
5.3
1.8
4.3
8.1
6.5
5.4
4.7
4.4
4.7
5.6
5.6
4.7
3.0
Loans, net ......................................................................................................................
Unearned income on lo a n s .........................................................................................
Allowance fo r possible loan lo s s e s ............................................................................
Loans, gross .................................................................................................................
54.6
1.5
.6
56.7
50.9
1.5
.4
52.8
53.8
1.5
.5
55.8
55.5
1.9
.5
57.9
55.7
2.0
.5
58.2
55.8
2.2
.5
58.5
54.8
2.0
.6
57.4
22.2
.5
52.7
1.9
.6
55.2
53.9
1.8
.6
56.3
54.1
1.2
.6
55.9
54.4
.8
.8
56.0
17.4
3.0
1.0
2.2
18.3
11.1
2.3
1.4
13.7
.1
.1
16.1
7.4
11.1
3.4
.9
16.4
.1
.1
15.0
8.6
11.4
3.3
.9
20.1
.1
.1
10.2
10.3
12.5
3.6
1.0
22.3
.2
.1
6.0
11.7
13.2
3.8
.9
22.5
.3
.2
3.1
13.9
14.0
3.6
.9
.3
1.4
15.6
13.7
2.9
.8
19.3
1.2
.7
1.1
15.9
13.5
2.4
1.1
18.7
1.5
.9
.8
17.1
13.5
2.6
1.2
15.9
3.4
.9
.7
19.4
11.7
2.2
1.7
100.0%
12.8
6.5
1.9
.8
24.3
6.9
1.0
1.8
All other assets .............................................................................................................
7.1
2.6
2.8
3.0
3.5
3.7
3.9
4.0
4.6
7.9
11.7
Total liabilities and equity capital...................................................................
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Deposits— t o t a l .............................................................................................................
30.8
47.0
77.8
35.8
51.6
87.6
30.1
59.2
89.3
28.9
60.7
89.6
28.4
60.8
89.2
28.8
59.6
88.4
29.1
57.2
86.3
31.4
52.3
83.7
32.4
49.2
81.6
30.9
43.8
74.7
32.5
33.8
8.0
.3
.4
.5
.8
1.6
3.6
6.3
7.8
11.5
13.2
2.0
4.9
.4
6.9
.0
.6
.0
11.5
.1
.6
.1
9.5
.2
1.0
.1
8.6
.3
1.4
.2
8.1
.5
1.5
.3
7.7
.9
1.6
.4
7.2
1.0
1.7
.5
6.8
1.6
1.9
.6
6.5
2.3
4.6
.7
6.2
3.7
9.9
.4
6.5
4,694
3,365
1,764
1,051
170
149
144
28
Demand deposits.................................................................................
Time and savings.................................................................................
Individuals, partnerships, and corporations— dem and......................................
Individuals, partnerships, and corporations— time and sa vings......................
U.S. Government ....................................................................................................
States and political s u b d iv is io n s ............................................................................
Certified and officers’ checks ................................................................................
All other deposits ....................................................................................................
Federal funds purchased and securities sold under agreements
to repurchase ..........................................................................................................
Interest-bearing demand notes issued to the U.S. Treasury
and other liaDiliiies fo r borrowed m on ey..............................................................
All other liabilities
......................................................................................................
Subordinated notes and d e b e n tu re s .........................................................................
Equity c a p ita l.................................................................................................................
- Number of b a n k s ..........................................................................................................
^Securities held in trading accounts are included in “ Other assets.
Includes m inority interest in consolidated subsidiaries.
23.8
41.5
.2
5.9
1.1
5.3
14,159
32.1
44.8
.2
9.6
.7
.2
728
26.6
52.5
.3
8.9
.8
.2
2,066
25.5
54.4
.3
8.3
.9
.2
25.1
54.6
.3
8.1
.9
.2
25.4
53.1
.3
8.1
1.0
.5
24.7
50.5
.2
8.1
1.0
1.8
24.9
44.9
.3
8.4
1.2
4.0
26.1
42.6
.3
7.3
1.1
4.2
24.6
38.2
.3
6.1
.9
4.6
66.3
21.0
29.7
.2
2.5
1.5
11.4
FEDERAL DEPOSIT INSURANCE CORPORATION
Real estate loans .....................................................................................
Loans to financial institutions...................................................................
Loans forpurchasing or carrying securities ..............................................
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-pavment loans for personal expenditures .......................................
All other loans .........................................................................................
100.0%
100.0%
$5.0 billion
or
more
Cash and due from depository in s titu tio n s ..............................................................
U.S. Treasury Securities1 ...........................................................................................
Obligations of other U.S. Government agencies
and c o rp o ra tio n s............................................ .........................................................
Obligations of states and political subdivisions .....................................................
All other securities........................................................................................................
Federal funds sold and securities purchased
under agreements to r e s e ll.....................................................................................
Total assets ..................................................................................................
100.0%
$50.0 million
to
$99.9 million
Table 113.
PERCENTAGES OF ASSETS AND LIABILITIES OF INSURED MUTUAL BANKS OPERATING THROUGHOUT 1979 IN
THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1979
BANKS GROUPED BY AMOUNT OF ASSETS
Banks with total assets of—
Asset, liability, or surplus account
Less
than
$10.0 million
$10.0 million $25.0 million $50.0 million
to
to
to
$24.9 million $49.9 million $99.9 million
100.00%
$100.0 million
to
$299.9 million
$300.0 million $500.0 million $1 billion
or
to
to
$499.9 million $999.9 million
more
100.00%
100.00%
100.00%
100.00%
100.00%
Cash and due from depository in s titu tio n s .................................................................................
Currency and c o in .........................................................................................................................
Demana balances with commercial banks in the United S ta te s ...........................................
Other balances with depository institutions ............................................................................
Cash items in process of collection ..........................................................................................
1.99
0.29
0.55
1.06
0.09
3.80
1.03
1.90
0.00
0.87
3.40
0.54
1.09
1.64
0.13
3.34
0.55
0.87
1.78
0.14
2.39
0.46
0.86
0.90
0.17
2.44
0.38
0.86
1.08
0.12
2.37
0.34
0.61
1.29
0.13
1.76
0.33
0.47
0.83
0.13
1.86
0.23
0.47
1.09
0.07
S ecurities— total ..............................................................................................................................
U.S. Treasury, agency, and corporation obligations .............................................................
Corporate b o n d s ...........................................................................................................................
Obligations of States and political subdivisions in the U.S.....................................................
Other bonds, notes and d e bentures..........................................................................................
Corporate stock— t o t a l ................................................................................................................
B a n k ...........................................................................................................................................
O th e r...........................................................................................................................................
29.57
11.83
10.96
1.93
2.11
2.74
0.24
2.50
14.82
2.46
5.99
0.00
0.82
5.55
0.20
5.35
22.82
13.76
3.30
1.12
1,94
2.70
0.75
1.95
21.19
9.35
6.44
0.69
1.05
3.66
0.53
3.13
18.90
8.78
4.87
0.64
0.92
3.69
0.70
2.99
22.10
9.97
6.25
1.12
1.46
3.30
0.49
2.81
22.51
11.74
6.47
0.75
1.06
2.49
0.34
2.15
29.08
12.95
9.88
1.57
1.80
2.88
0.28
2.60
33.30
12.10
13.53
2.52
2.62
2.53
0.11
2.42
100.00%
100.00%
100.00%
Federal funds sold and securities purchased under agreements to r e s e ll..........................
1.83
3.38
2.87
3.29
2.50
1.91
2.51
1.92
1.60
Loans, net .........................................................................................................................................
Real estate loans, g r o s s ..............................................................................................................
Less: Unearned incom e .........................................................................................................
Less: Allowance fo r possible loan lo s s e s ............................................................................
Real estate loans, n e t ..............................................................................................................
Construction and land developm ent.................................................................................
Secured by fa rm la n d ............................................................................................................
Secured by residential properties:
Secured by 1- to 4-fam ily residential properties:
Insurecf by FHA or guaranteed byV A ......................................................................
C onventional................................................................................................................
Secured m ultifam ily (5 or more) residential properties:
Insured by F H A ............................................................................................................
Conventional................................................................................................................
Secured by nonfarm nonresidential p ro p e rtie s ...............................................................
Other loans, gross .......................................................................................................................
Less: Unearned income .........................................................................................................
Less: Allowance fo r possible loan lo s s e s ............................................................................
Other loans, n e t .......................................................................................................................
63.81
60.69
0.36
0.12
60.21
1.14
0.03
75.02
68.29
0.00
0.00
68.29
0.60
0.27
69.35
62.76
0.08
0.26
62.42
0.74
0.59
69.55
63.46
0.03
0.15
63.28
0.82
0.17
73.68
67.63
0.05
0.12
67.46
1.43
0.25
70.85
66.54
0.11
0.13
66.30
1.66
0.05
69.84
65.60
0.21
0.07
65.32
1.84
0.02
64.21
61.05
0.38
0.14
60.53
1.44
0.01
60.44
58.01
0.45
0.12
57.44
0.80
0.01
13.93
25.65
0.00
60.31
4.47
50.68
4.24
51.07
5.58
52.32
7.13
46.01
11.92
38.11
14.70
23.69
16.16
17.73
1.95
8.16
9.83
3.83
0.22
0.01
3.60
0.00
0.00
7.11
6.73
0.00
0.00
6.73
0.00
1.15
5.13
7.15
0.22
0.00
6.93
0.00
2.12
5.04
6.74
0.44
0.03
6.27
0.05
1.73
6.28
6.65
0.42
0.02
6.22
0.10
4.10
7.39
4.91
0.35
0.01
4.55
0.51
5.92
7.28
4.92
0.41
0.01
4.52
2.01
9.65
9.55
4.02
0.33
0.01
3.68
2.71
9.44
11.16
3.13
0.12
0.01
3.00
ASSETS AND LIABILITIES OF BANKS
Total A s s e ts ...........................................................................................................................................
All
banks
CO
182
Table 113.
PERCENTAGES OF ASSETS AND LIABILITIES OF INSURED MUTUAL BANKS OPERATING THROUGHOUT 1979 IN
THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 197 9-C O N T IN U E D
BANKS GROUPED BY AMOUNT OF ASSETS
Banks with total assets of—
Asset, liability, or surplus account
Less
than
$10.0 million
$10.0 million $25.0 million
to
to
$24.9 million $49.9 million
$50.0 million
to
$99.9 million
$100.0 million $300.0 million $500.0 million $1 billion
or
to
to
to
more
$299.9 million $499.9 million $999.9 million
0.00
0.16
0.03
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.29
0.05
0.01
0.00
0.00
0.10
0.05
0.07
0.00
0.00
0.06
0.01
0.22
0.04
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.32
0.07
0.01
0.47
0.00
0.19
0.00
0.38
0.53
1.75
0.90
0.14
2.39
2.74
0.09
1.44
0.00
0.25
0.01
0.30
0.26
0.00
0.31
0.43
3.54
2.09
0.32
0.81
3.53
1.89
0.21
0.97
3.52
1.49
0.34
0.82
1.98
1.45
0.24
0.92
2.21
1.28
0.13
0.73
1.88
1.00
0.15
0.30
1.46
0.63
0.10
Total net loans and securities ...........................................................................................
93.38
89.84
82.17
90.74
92.58
92.95
92.35
93.29
93.74
Bank premises, furniture and fixtures, capital leases, and other assets representing
bank premises .........................................................................................................................
Real estate owned other than bank p re m is e s ...............................................................................
Investm ent in unconsolidated subsidiaries and associated companies ...................................
Other assets .......................................................................................................................................
0.94
0.20
0.10
1.56
2.48
0.10
0.92
0.06
1.69
0.11
1.30
0.19
0.40
0.58
0.83
1.04
1.17
0.19
0.05
1.29
1.11
0.16
0.07
1.43
1.02
0.17
0.16
1.68
0.81
0.22
0.11
1.66
Total lia b ilitie s and surplus a c c o u n ts ...............................................................................................
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Deposits— total ................................................................................................................................
Savings and time deposits— to ta l...............................................................................................
Savings d e p o s its -to ta l............................................................................................................
Subject to transfer by order (in terest-bearing)................................................................
O th e r.......................................................................................................................................
Time d e p o s its - to ta l.................................................................................................................
Demand d e p o s its -T o ta l..........................................................................................................
Subject to transfer by order (noninterest-bearing).........................................................
O th e r.......................................................................................................................................
89.96
88.15
37.03
3.28
33.75
51.12
1.81
1.05
0.76
90.42
90.10
61.21
2.39
58.82
28.89
0.32
0.32
90.75
90.17
41.52
8.47
33.05
48.65
0.58
0.30
0.28
91.20
89.84
44.40
4.50
39.90
45.44
1.36
1.09
0.27
90.76
89.63
41.41
7.32
34.09
48.22
1.13
1.00
0.13
90.32
89.13
39.15
4.84
34.31
49.98
1.19
0.82
0.37
90.32
88.87
37.60
4.41
33.19
51.27
1.45
0.95
0.50
90.36
88.70
40.96
3.65
37.30
47.74
1.66
0.84
0.82
89.61
87.51
34.87
2.34
32.53
52.64
2.10
1.18
0.92
M iscellaneous lia b ilitie s :
Federal funds purchased and securities sold under agreements to repurchase.................
Mortgage indebtedness and liability for capital le a s e s ...........................................................
Other liabilities for borrowed money ....................................................................................
Other liabilities ..............................................................................................................................
1.12
0.04
1.33
0.60
0.00
0.00
0.00
0.63
0.03
0.00
0.00
0.00
0.00
0.02
0.26
0.28
0.52
0.03
0.84
0.65
0.41
0.04
1.28
0.60
0.37
0.04
1.62
0.62
0.74
0.05
1.02
0.60
1.60
0.05
1.44
0.59
Total lia b ilitie s .....................................................................................................................
93.05
90.44
91.64
92.03
92.28
92.65
92.97
92.77
93.29
Subordinated notes and d e b e n tu re s .............................................................................................
0.26
0.00
0.60
0.10
0.08
0.05
0.16
0.18
0.36
Sumlus accounts— total .................................................................................................................
S u rp lu s ...........................................................................................................................................
Undivided profits .........................................................................................................................
Other surplus re s e rv e s .................................................................................................................
6.69
3.08
2.83
0.78
9.56
2.87
6.69
0.00
7.76
4.56
3.07
0.13
7.87
3.64
3.39
0.84
7.64
3.02
3.56
1.06
7.30
2.97
3.38
0.95
6.87
2.75
3.39
0.73
7.05
3.34
2.89
0.82
6.35
3.07
2.55
0.73
Number of banks ..................................................................................................................................
324
2
10
23
81
98
35
35
40
0.00
0.00
0.00
0.00
0.00
FEDERAL DEPOSIT INSURANCE CORPORATION
Loans to financial institutions:
To real estate investment trusts and mortgage companies ..................................................
To domestic commercial and foreign b a n k s .............................................................................
To other financial in s titu tio n s .....................................................................................................
Loans for purchasing or carrying securities (secured and unsecured):
To brokers and dealers in s e c u ritie s ..........................................................................................
Other loans fo r purchasing or carrying securities ..................................................................
Loans to finance agricultural production (except those secured primarily by real estate) . . .
Commercial and industrial loans (except Those secured primarily by real estate) .................
Loans to individuals fo r household, family, and other personal expenditures
(include purchased paper):
Installm ent loans to repair and modernize residential p r o p e r ty ............................................
Other installm ent loans fo r household, fam ily, and other personal expenditures .............
Single-payment loans for household, family, and other personal expenditures.................
All other lo a n s ....................................................................................................................................
All
banks
Table 114.
ASSETS
DISTRIBUTIO N OF INSURED CO M M ERC IAL BANKS IN TH E UN ITED S TATES (STATES AN D O THER AREAS),
DE CE M B ER 31, 1979
B A N KS G RO U PED ACCORDING TO AM O UN T OF A S S E T S AND BY RATIOS OF SELECTED ITEM S TO AS SET S OR DEPO SITS
Banks w ith assets o f $5.0 million
to
$9.9 m illion
$10.0 million
to
$2 4 .9 m illion
$25.0 m illion
to
$49.9 m illion
$50.0 m illion
to
$99.9 m illion
$100.0 m illion
to
$299.9 m illion
144
2,672
4,827
3,345
1,716
827
372
182
279
22
124
214
183
119
54
36
23
55
32
467
693
432
227
121
59
41
56
50
996
1,672
1,000
523
257
117
49
64
22
650
1,263
808
341
171
67
23
26
8
292
602
477
229
92
32
13
19
7
129
294
309
175
70
29
14
24
R atios of U .S. T reasury s e c u ritie s to to ta l assets o f—
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 ................................................................................
1 5.0 to 1 7 .9 9 ................................................................................
18.0 to 2 0 .9 9 ................................................................................
21.0 to 23.99 ................................................................................
2 4 .0 to 26.99 ................................................................................
27 .0 to 2 9 . 9 9 ................................................................................
3 0 .0 to 3 2 . 9 9 ................................................................................
3 3 .0 to 3 5 . 9 9 ................................................................................
3 6 .0 or m o r e ................................................................................
2,325
3,189
2,930
1,982
1,365
905
573
346
208
128
119
89
205
141
96
117
104
81
65
49
36
31
17
14
18
61
270
353
345
288
254
193
127
81
50
45
32
22
68
790
1,011
922
664
481
302
210
126
68
37
39
28
50
575
786
748
484
307
196
107
66
30
20
23
11
18
285
473
432
247
136
84
45
24
15
5
7
7
4
160
304
260
141
86
41
27
11
10
4
4
2
1
$1.0 billion
to
$4 .9 billion
1
7
41
53
26
18
7
3
15
1
4
27
48
26
21
8
6
8
1
3
21
31
39
18
15
8
8
_
_
34
55
31
20
8
12
5
1
3
26
45
44
13
7
9
3
30
57
28
20
5
2
14
9
3
1
_
_
2
_
_
_
_
1
1
$ 5.0 billion
or
more
4
11
5
2
2
4
_1
_
_
_
1
_—
_
_
_
_
-
-
—
1
183
$500.0 m illion
to
$ 999.9 m illion
OF BANKS
Ratios of cash and due fro m de p o s ito ry
in s titu tio n s to to ta l assets o f—
Less than 3 . 0 ................................................................................
3 .0 to 5 . 9 9 .....................................................................................
6 .0 to 8 . 9 9 .....................................................................................
9.0 to 1 1 . 9 9 ...................................................................................
1 2.0 to 1 4 .9 9 ................................................................................
1 5.0 to 1 7 .9 9 ................................................................................
1 8.0 to 2 0 .9 9 ................................................................................
21 .0 to 2 3.99 ................................................................................
24 .0 or m o r e ................................................................................
$300.0 m illion
to
$499.9 m illion
LIABILITIES
All
banks
AND
Less
than
$5 million
Ratios
(In percent)
1 84
Table 114
D IS T R IB U T IO N OF INSURED C O M M E RC IAL BANKS IN THE UN ITED STATES (STA TES AN D O THER AR EAS),
Banks w ith assets o f—
Ratios
(in percent)
All
banks
Less
than
$5 million
$5.0 million
to
$9.9 million
$10.0 million $ 25.0 m illion
to
to
$ 49.9 m illion
$24.9 million
$50.0 million
to
$99.9 m illion
$100.0 m illion
to
$ 299.9 m illion
$ 300.0 m illion
to
$ 499.9 m illion
$ 500.0 m illion
to
$ 9 99.9 m illion
318
139
116
91
61
33
26
12
14
9
8
3
388
190
211
324
289
268
197
113
63
41
33
11
353
136
162
407
605
765
782
609
417
225
205
62
61
60
68
166
289
478
619
602
447
280
228
73
20
17
19
69
101
221
327
378
268
167
141
36
3
9
15
38
60
118
213
242
170
94
66
23
1
2
5
9
17
30
44
21
24
13
4
1
1
4
1
10
15
26
40
29
11
7
4
1
Ratios of net loans to to ta l assets o f—
Less than 20 ................................................................................
2 0 .0 to 24 .9 9
2 5 .0 to 2 9 .9 9 ............
3 0 .0 to 3 4 . 9 9 ............
3 5 .0 to 39 .9 9
4 0 .0 to 4 4 . 9 9 ............
4 5 .0 to 4 9 . 9 9 ............
5 0 .0 to 5 4 .9 9 ............
5 5 .0 to 59 .9 9
6 0 .0 to 6 4 .9 9 ............
65 .0 to 6 9 . 9 9 ............
7 0 .0 to 7 4 . 9 9 ............
7 5 .0 or m o r e ............
143
111
212
346
596
1,065
1,632
2,325
2,9 8 9
2,603
1,611
590
141
59
21
44
52
57
88
91
103
111
89
61
40
14
25
38
50
82
114
166
248
323
380
329
238
101
34
32
24
71
95
200
347
545
711
919
917
578
231
58
16
17
28
65
115
242
366
561
751
647
408
135
20
4
7
12
26
51
103
194
329
439
351
188
53
7
4
4
5
21
36
69
118
196
266
204
100
23
5
—2
2
1
9
23
23
31
41
23
14
2
—
R atios of to ta l dem and de p osits to to ta l d e posits o f—
Less than 20 ................................................................................
20 .0 to 24 .9 9 ............
25 .0 to 2 9 . 9 9 ............
3 0 .0 to 3 4 . 9 9 ............
3 5 .0 to 3 9 . 9 9 ............
4 0 .0 to 4 4 .9 0 ............
4 5 .0 to 4 9 .9 9
50 .0 to 54.99 ............
55 .0 to 59.99
6 0 .0 to 64.99
65 .0 or m o r e ............
995
2,183
3,096
2,740
2,062
1 ,399
852
409
241
139
248
27
67
117
132
121
98
71
46
34
23
94
121
300
483
439
305
191
112
68
36
27
46
368
796
1,076
860
623
456
270
107
72
42
58
277
563
789
667
447
295
191
70
36
22
14
121
291
363
351
302
161
85
46
23
7
14
62
141
213
216
177
111
71
33
11
5
11
8
13
32
23
29
24
18
12
6
4
2
1
—
1
9
10
4
2
2
2
15
27
32
34
20
10
2
1
—
—
—
—
—
1
—
_
—
—
2
6
14
17
31
42
22
11
2
1
2
6
12
22
36
36
16
10
2
2
—
—
—
8
8
10
22
33
29
14
12
9
2
2
3
4
13
25
22
27
16
13
12
6
3
2
1
8
4
4
5
3
1
—
—
—
5
3
7
4
2
2
1
4
CORPORATION
1,145
558
600
1,138
1,474
1,975
2,284
2,028
1,424
838
690
210
$ 5.0 billion
or
more
INSURANCE
R atios of o b lig a tio n s of states and p o litic a l sub
d iv is io n s to la l assets o f—
Z e r o .................................................................................................
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 ................
1 0.0 to 12 .49
1 2.5 to 1 4 .9 9 ............
15 .0 to 17.49
1 7.5 to 19.99
2 0 .0 to 2 4 .9 9 ............
25 .0 or m o r e ............
$1.0 billion
to
$4 .9 billion
FEDERAL DEPOSIT
D E C E M B E R 3 1, 1 9 7 9 - C O N T I N U E D
B AN KS G R O U PED ACCO RD IN G TO AM O U N T OF A SSET S AND BY RATIOS OF S ELECTED ITEMS TO A S S E T S OR D EPOSITS
5
4
8
12
21
32
51
39
63
60
51
44
32
42
34
332
13
12
31
64
122
196
225
245
201
148
149
131
96
73
51
371
32
65
115
256
409
541
607
561
475
404
304
230
156
132
88
353
50
77
154
242
376
482
468
405
333
211
141
127
85
56
45
119
42
49
118
173
247
266
253
185
126
84
71
44
31
21
12
42
48
65
107
135
156
145
102
104
62
39
25
20
11
14
4
14
18
13
24
22
33
18
13
13
5
4
1
R atios of to ta l eq u ity cap ita l to to ta l assets other
than cash and gove rn m e n t s e c u ritie s o f—
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 ................................................................................
13.0 to 1 4 .4 9 ................................................................................
14.5 to 1 5 .9 9 ................................................................................
16.0 to 1 7 .4 9 ................................................................................
17.5 to 1 8 .9 9 ................................................................................
19.0 to 2 0 .4 9 ................................................................................
20 .5 to 2 1 .9 9 ................................................................................
2 2 .0 or m o r e ............................................................................
548
1,943
3,219
2,873
1,939
1,249
719
492
316
212
144
710
9
18
36
76
79
81
59
65
40
42
32
293
18
93
253
375
327
288
175
144
116
62
53
224
87
442
1,010
1,069
785
509
281
180
107
79
38
141
127
522
960
773
445
230
140
71
35
19
12
37
89
398
554
352
187
89
35
22
12
9
6
11
113
298
280
184
92
41
23
9
5
1
3
2
29
44
53
22
11
6
3
_
2
14,364
830
2,128
4 ,728
3,371
1,764
1,051
171
N um ber of b a n k s ...........................................................
~4
2
1
1
1
1
17
27
35
22
15
11
4
5
1
1
2
3
1
_
4
8
5
3
3
1
3
__
_
_
_
1
-
-
29
56
39
12
8
1
3
1
37
63
29
8
4
3
10
9
5
2
1
1
_
_
1
-
—
149
144
28
OF BANKS
185
14
21
31
16
25
10
15
6
1
2
2
3
LIABILITIES
243
341
628
945
1,407
1,702
1,741
1,563
1,267
953
746
602
416
342
235
1,233
ASSETS AND
R atios of to ta l eq uity cap ita l to to ta l assets o f—
Less than 5 ...................................................................................
5.0 to 5 . 4 9 .....................................................................................
5.5 0 to 5 . 9 9 ...................................................................................
6 .0 0 to 6 . 4 9 ...................................................................................
6 .5 0 to 6 . 9 9 ...................................................................................
7 .0 0 to 7 . 4 9 ...................................................................................
7 .5 0 to 7 . 9 9 ...................................................................................
8 .0 0 to 8 . 4 9 ...................................................................................
8 .5 0 to 8 . 9 9 ...................................................................................
9 .0 0 to 9 . 4 9 .........................................................................
9 .5 0 to 9 . 9 9 ...................................................................................
10 .0 0 to 1 0 .4 9 ..............................................................................
1 0.50 to 1 0 .9 9 ..............................................................................
1 1.0 0 to 1 1 .4 9 ..............................................................................
1 1.50 to 1 1 .9 9 ....................................................................
1 2.0 0 or m o r e ....................................................................
1 86
INCOME OF INSURED BANKS
Table 1 1 7.
Income of insured commercial banks in the United States (States and other areas), 1 979
Table 1 1 8.
Income of insured commercial banks operating throughout 1 979 in the United States (States
and other areas)
Table 1 1 9.
Ratios of income of insured commercial banks operating throughout 1979 in the United States
(States and other areas)
Table 1 20.
Income of insured mutual savings banks in the United States (States and other areas), 1 9 7 4 —
1979
Table 121.
Ratios of income of insured mutual savings banks in the United States (States and other areas),
1 9 7 4 — 1979
Banks grouped by class of bank
Banks grouped by amount of assets
Banks grouped according to amount of assets
The income data received and published by the Corporation relate to
commercial and mutual savings banks insured by the Corporation.
Com m ercial banks
Banks having total assets of $25 m illion or more are required to report
consolidated 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 1 976, 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 also include all
majority-owned Edge all majority-owned significant forand Agreement
Corporations, and eign subsidiaries and associated companies.
Banks were required to report income and expenses more frequently
beginning in 1 976. Banks having total assets of $3 0 0 m illion 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.
Several changes were made in 1 976 in the format of the income reports
C O R P O R ATIO N
Ratios of income of insured commercial banks in the United States (States and other areas),
1 9 7 4 — 1979
INSURANCE
Table 116.
DEPOSIT
Income of insured commercial banks in the United States (States and other areas),
1 9 7 4 — 1979
FEDERAL
Table 1 1 5.
B AN KS
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.
OF INSURED
M utual 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
s u b s id ia rie s , and o th e r s ig n ific a n t n o n b a n kin g d o m e stic s u b
sidiaries.
Beginning in 1 972, banks w ith 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
"o th e r" category are shown separately beginning in 1 971. Income from U.S.
Treasury securities is combined w ith 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 1 97 0 and prior years (table 1 20), 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. Beginning in 1 979,
the amount to be expensed as a provision is based on management discretion
and is expected to be reflective of the adequacy of the existing valuation
reserve and the current condition of the loan portfolio.
The nonoperating sections of the report were condensed in 1971, with
realized gains and losses on securities, mortgage loans, and real estate
reported "n e t" rather than in separate sections and captions as before. In
1 979, these items were no longer required to be reported separately. They
are to be included in with other operating income or other operating
expenses. Detailed data formerly reported on reconcilement of valuation
adjustment provisions were almost entirely eliminated, except for a reconcili
ation of surplus. For additional discussion of reporting changes in 1 979, (see
p. 160).
INCOME
submitted by banks, mainly involving additional separate items on the face of
the report. Those changes are indicated in several historical data tables, 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. 1 88).
In December 19 78 an abbreviated Report of Income was instituted for
banks w ith total consolidated assets of 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
solely 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 consists 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, securities gains and losses and extraordinary
items, and deferred income taxes resulting from "tim in g” differences. 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
lim itations that w ill eventually put these reserves on a current experience
basis.)
REPORTING OF LOSSES A N D RESERVES
FOR LOSSES ON LOANS,
Commercial banks
19 48 — 1979
Use of the reserve method of loan accounting was greatly encouraged
when, in 1 947, the Internal Revenue Service set formal standards for loan
CD
00
CD
INSURANCE
C O R P O R ATIO N
M utual savings banks
W hile mutual savings banks reported loan losses and transfers to loss
reserves prior to 1 951, 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 1 951, 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 commercial banks, to show actual net loan losses as operating
expenses. (Mutual savings banks did not have the option available to
commercial banks of reporting losses based on recent years' average
experience.) At the same time, all valuation reserves were merged into
surplus accounts on statements of condition submitted to the Federal
supervisory agencies. In 1979, loan loss reporting was again revised in a
manner consistent w ith reporting by commercial banks. The provision
expense is determined by bank management. The valuation reserves on real
estate loans and other loans are shown as separate deductions to the asset
categories on the Report of Condition.
DEPOSIT
which in the judgment of bank management w ill 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 1 976, 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.
FEDERAL
loss transfers to be permitted for Federal tax purposes. In their reports
submitted to the Federal bank supervisory agencies prior to 1 948, insured
commercial banks included in nonoperating income the amounts of recover
ies on loans (applicable to prior charge-offs for losses) which included, for
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 nonoperating 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 1 948, insured banks
reported loans on a net basis only, after allowance for loan loss reserves.
Beginning w ith the June 30, 1 9 48 report, banks were required to report
gross loans, w ith total valuation reserves, those set up pursuant to Internal
Revenue Service regulations, and other reserves shown separately. How
ever, instalment loans ordinarily continued to be reported net if the instal
ment payments were applied directly to the reduction of the loan.)
Beginning w ith the year 1 948, 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 nonoperating 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 separately reported in the Corporation's published statistics.
Several important revisions were made in the form at 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 of the
formulas was discontinued. Banks are instructed to expense an amount
Table 115.
INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES
(STATES AND OTHER AREAS), 1974-1979
(Amounts in thousands of dollars)
Income item
1974
1975
19761
19771
19781
1979
68,160,779
66,558,502
80,663,853
90,357,541
113,581,682
150,282,353
Interest and fees on loans...................................................................................
Interest on balances with depository institutions2 ................................................
Income on federal funds sold and securities purchases under agreements
to resell in domestic offices ............................................................................
Interest on U.S. Treasury securities and on obligations of other U.S.
Government agencies and corporations3 .........................................................
Interest on obligations of States and political subdivisions of the U.S.3 ..................
Income from all other securities3 ........................................................................
Income from direct lease financing2 ....................................................................
Income from fiduciary activities ..........................................................................
Service charges on deposit accounts in domestic offices.......................................
Other service charges, commissions, and fees ....................................................
Other income3 ....................................................................................................
47,138,740
43,379,504
51,645,260
4,486,655
58,990,506
4,887,917
76,182,124
6,712,575
102,192,459
10,669,726
2,294,621
1,984,757
2,476,313
3,682,320
6,126,340
5,459,834
4,453,876
467,873
6,789,577
4,918,518
533,244
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
10,686,277
6,955,222
1,198,071
1,073,254
2,375,711
2,528,752
3,641,607
2,834,934
Operating expenses— total ....................................................................................................
58,910,355
57,582,040
70,750,168
70,791,583
98,480,372
132,391,165
Salaries and employee benefits............................................................................
Interest on time certificates of deposit of $100,000 or more issues by
domestic offices4 ...........................................................................................
Interest on deposits in foreign offices2 ..........................................
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...................................................................................
11,586,433
12,686,720
14,752,297
16,346,067
18,743,800
21,562,167
27,888,772
26,245,936
7,111,054
8,749,673
19,143,238
6,763,105
10,215,971
21,832,936
11,736,511
14,558,371
23,918,087
18,178,650
24,523,807
29,185,414
5,985,504
3,322,993
3,311,741
4,542,669
7,264,001
12,356,285
917,638
283,203
377,195
294,098
667,197
344,952
818,374
392,274
1,457,931
448,488
3,167,247
501,470
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
6,281,496
3,785,642
12,848,987
17,891,188
Income before income taxes and securities gains or lo s s e s ...........................................
9,250,424
8,976,462
9,913,685
11,565,958
15,101,310
Applicable income t a x e s .........................................................................................................
2,084,028
1,792,696
2,290,772
2,831,871
4,162,112
4,742,118
Income before securities gains or lo s s e s ............................................................................
7,166,396
7,183,766
7,622,913
8,734,087
10,939,198
13,149,070
34,376
-6 4 9 ,6 8 5
................................................
Applicable income taxes .......................................................
Securities gains or losses, net ............................................................................
-1 6 1 ,2 4 7
312,267
141,674
-4 4 7 ,1 2 4
-74,195
-87,052
-2,690
37,066
118,233
194,034
43,189
98,485
-222,230
-224,894
Income before extraordinary it e m s .......................................................................................
7,079,344
7,220,832
7,816,947
8,832,572
10,714,304
12,799,112
Extraordinary items, g ro s s ......................................................................................................
17,877
28,104
55,082
43,737
40,001
Applicable income taxes.....................................................................................
Extraordinary items, n e t.....................................................................................
46,823
5,957
11,920
13,044
33,779
1,774
26,330
8,249
46,833
-1,493
45,230
625
39,375
Net in c o m e .................................................................................................................................
7,091,264
7,254,611
7,843,277
8,879,405
10,759,534
12,838,487
Securities gains or losses, gross
-299,727
-349,958
189
BANKS
3,712,304
INCOME OF INSURED
Operating incom e— t o t a l .........................................................................................................
INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES
(STATES AND OTHER AREAS), 1974-1979-C O N T IN U E D
(Amounts in thousands of dollars)
Incom e item
1974
1975
1 97 6 1
1 90
T a b le 1 1 5 .
1977'
197 8 1
1979
Memoranda
4 ,4 5 5 ,29 3
D ivid en ds declared on equity ca pita l— total ..........................................................................
?
......................................................................
......................................................................
2,765,674
2,430
3,030,230
2,214
3,033,628
2,594
3,301,525
3,264
3 ,3 0 4 ,7 8 9
3,718,211
3,715,7,809
3 ,7 2 1 ,92 6
4,447,484
Pro v isio n for in com e ta xe s— t o t a l............................................................................................
..................................................................................................
.....................................................................................
...........................................................................................................
1,357,934
402,345
1 ,759,739
1,225,927
501,114
1,727,041
2 ,41 0 ,77 9
2 ,88 3 ,30 9
1,773,219
525,833
584,257
2,537,962
656,274
744,153
3 ,93 8 ,38 9
2,653,069
902,579
887,369
Net loan losse s or re cove rie s— t o t a l.......................................................................................
.............................................................................................................
....................................................................................................................
-1 ,9 5 6 ,9 3 1
- 3 ,2 4 2 ,8 3 0
547,380
-3,790,210
687,401
-4,190,647
-3 ,5 0 3 ,2 4 6
- 2 ,7 9 7 ,1 0 5
- 2 ,4 9 6 ,9 7 7
- 2 ,5 6 4 ,2 6 0
871.394.495
924.946.738
1.123.469.176
1.249.961.111
1.403.493.088
1.584.170.199
122,224,773
1 26,8 38 ,0 07
194,3 12 ,5 00
2 18 ,3 57 ,8 90
2 4 8 ,6 32 ,8 90
2 8 3 ,2 13 ,7 80
5 2,822,043
9 4,524,535
35,256,603
519,572,131
46,994,410
6 5,9 9 2,1 4 8
9 8 ,9 5 3,2 7 9
3 9,2 0 3,3 4 4
536,0 61 ,7 23
5 7,8 9 8,2 3 7
8 8 ,5 2 0,7 4 9
1 0 2 ,7 33 ,8 96
5 1 ,1 1 0,3 4 7
6 32 ,6 96 ,8 42
5 4,0 9 4,8 4 2
9 6 ,6 6 4,6 4 7
1 08 ,4 29 ,2 63
5 4,2 9 3,9 5 3
7 09 ,8 16 ,2 28
6 2 ,3 9 9,1 2 9
131,7 99 ,0 55
117,3 31 ,8 76
2 0,1 2 9,2 4 2
7 64 ,7 72 ,4 96
7 4,5 8 9,5 9 2
133,2 87 ,0 94
127 ,7 70 ,1 23
23,0 7 9,9 7 3
9 2 2 ,2 11 ,1 28
94,608,101
Cast dividends declared on common s to c k
Cash dividends declared on preferred s to c k
Recoveries on loans
Losses on loans
461,350
-2,418,281
3 ,0 3 2 ,44 4
3 ,0 3 6 ,22 2
1,371,638
491,712
547,429
813,900
-3,611,005
1,074,435
3,571,412
4 ,44 3 ,01 7
1,198,985
3,763,245
Average assets, lia b ilitie s, and equity capital5
Assets— total
Cash and due from deposito ry in s t it u t io n s ........................................................................
U .S . Treasury secu rities and o b lig atio ns of other U .S. agencies
and co rp o ratio n s3 .............................................................................................................
O bligations of states and po litical sub d iv isio n s ...............................................................
Other secu rities3 ....................................................................................................................
Net loans6 ...............................................................................................................................
All other a s s e t s ......................................................................................................................
Liabilities and equity capital— total .....................................................................................
871.394.495
924.946.738
1.123.469.176
1.249.961.111
1.403.493.088
1.584.170.199
Total d e p o s it s ........................................................................................................................
.............................................................................................................
..............................................................................................
..............................................................................................
S ubordinated notes and d e b e n tu r e s ...................................................................................
Other b o rrow in gs and all other liabilities ..........................................................................
Total equity capital ................................................................................................................
307,363,186
402,666,682
7 10,029,868
313,836,391
443,112,195
7 5 6 ,9 48 ,5 86
320,488,016
474,499,317
149,251,581
9 44 ,2 38 ,9 14
1 ,0 4 3 ,47 8 ,5 75
1 ,1 5 7 ,40 8 ,4 90
1 ,27 6 ,96 8 ,8 68
4,204,891
100,573,737
56,585,999
4,328,561
1 01 ,918,202
6 1 ,7 5 1,3 8 9
4 ,86 5 ,97 2
1 05,6 47 ,9 09
68,716,381
5,50 0 ,13 2
1 25,239,154
7 5.7 4 3,2 5 0
5,95 2 ,19 3
156 ,0 87 ,3 65
8 4,0 2 8,1 1 3
6 ,2 0 2 ,58 7
2 0 8 ,5 42 ,1 97
9 2 ,4 5 6,5 4 7
N um b er of em ployees on payroll (end of p e r io d ) .................................................................
1,160,585
1 ,22 6 ,41 5
1,25 5 ,02 5
1 ,320,598
1,319,828
1,41 0 ,81 6
N um ber of banks (end of period) ............................................................................................
14,228
14,384
14,411
14,412
14,391
14,364
Demand deposits
Time and savings d ep o sits
Deposits in foreign offices
1 Data are from fully consolidated reports on incom e, in clud ing do m estic and foreign offices.
2Figures not available before 1976.
S e c u r it ie s held in trading accounts are includ ed in “ A ll other a s s e ts ” , incom e from these securities is included in “ Other in c o m e .”
4 Included in “ Interest on other d e p o sits” before 1976.
5Averages of am ounts reported at beginning, m iddle, and end of year, 1967, 1977, 1978 averages are based on consolidated reports,
d o m estic and foreign.
6For years before 1976, data are gro ss loans. Includes federal funds sold.
347,903,682
519,939,386
175,635,507
377,305,796
592,066,952
188,034,718
393,573,301
633,107,213
250,288,354
FEDERAL DEPOSIT INSURANCE CORPORATION
U.S. Federal income taxes
U.S. State and local income taxes
Foreign income taxes2
2 ,768,104
T a b le 1 1 6 .
RATIOS OF INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1974-1979
Income item
Amounts per $100 of operating income
Operating incom e— t o t a l...................................................................................................................
Interest and fees on loans2 ..........................................................................................................
Interest on balances with d e posito ry in stitu tion s3 .....................................................................
Interest on U .S . T reasury secu ritie s and on ob lig atio ns of other U .S.
G overnm ent agencies and c o r p o r a tio n s ..................................................................................
Interest on o b lig atio ns of States and po litical su b d iv isio n s ......................................................
Incom e from all other s e c u r it ie s ..................................................................................................
Incom e from fidu ciary a c t iv it ie s .............................................................................................
Service charges on de posit accou n ts in d o m estic offices ....................................................
Other service charges, c o m m is s io n s , and f e e s .........................................................................
Other operating incom e .............................................................
Operating expenses— total ...........................................................................................................
1974
1975
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
74.60
68.62
6 6.49
5 .56
68.03
5.41
70.31
5.91
72.08
7.10
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
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
7.11
4 .63
.80
1.58
1.68
2.42
2.60
1 97 6 1
19771
1 97 8 1
1979
86.43
86.51
87.71
87.20
86.70
88.09
S alaries and em ployee benefits .............................................................
Interest on deposits in d o m estic o f f ic e s ....................................................
Interest on deposits in foreign offices3 ..............................................................................
Interest on dem and notes issued to the U .S . Treasury and other borrowed money4 ...........
O ccupancy expense of bank prem ises, net, and furniture and equipm ent e x p e n s e ...............
Pro visio n fo r po ssib le loan lo sse s .....................................................................................
Other operating e x p e n s e s .......................................................................................
17.00
4 0.92
19.06
39.43
10.54
5.01
3.35
9.61
6.00
5.79
5.43
10.80
18.29
3 2.55
10.85
5.36
5.56
4 .57
10.53
18.09
31.6 5
11.31
6 .37
5.51
3 .65
10.62
16.50
31.3 9
12.82
8.07
4 .92
3 .10
9.90
14.35
31.51
16.32
10.66
4 .18
2.52
8.55
Income before income taxes and securities gains or lo sse s......................................................
13.57
13.49
12.29
12.80
13.30
11.91
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
9.49
8.36
1.13
.81
.08
-.2 5
.25
.08
-.2 4
.24
Amounts per $100 of total assets5
Operating in co m e — t o t a l..................................................................................................
Operating exp e n se s— t o t a l ............................................................................................
Incom e before incom e taxes and secu rities gains or losses .................................................
Net in c o m e .......................................................
Recoveries credited to a llo w a n c e ...................................................................................
Lo sse s charged to a llo w a n c e .........................................................
Pro visio n fo r p o ssible loan lo sse s ..................................................................
Amounts per $100 of total equity capital5
Net in c o m e ......................................................................................
Cash dividend s declared on co m m o n s t o c k ................................................
Net change in capital accounts (less cash dividend s on com m on and preferred stock)
........
12.53
4 .8 9
7 .64
11.75
4.91
6.84
11.41
4 .42
6 .99
11.72
4 .3 6
7 .3 6
12.80
4 .42
1 4 .796
13.89
4.81
16.53
9 .79
8.52
8 .48
8 .66
9.76
11.64
6.51
6.73
6 .75
6.62
7.12
8.02
4.71
4 .9 7
5.00
4 .9 5
4 .80
5.44
.47
.50
.51
.52
.54
.64
6.93
5.92
5.53
5.50
6 .02
7.48
14,228
14,384
14,411
14,412
14,391
14,364
Special ratios5
Incom e on loans per $10 0 of loa ns2 ............................................
Income on U .S . Treasury and other U .S . G overnm en t agency and corporation
secu ritie s per $100 of those s e c u r it ie s .............................................................
Income on o b lig atio ns of states and po litical su b d iv is io n s per $100 of
th o se o b lig atio ns ..................................................................
S ervice charges on dem and d e posits in d o m estic offices per $100 of
th o se de posits ..............................................................................................
Interest paid on tim e and sav in g s deposits in d o m estic offices per $100 of
those de posits .......................................................................................................
N um ber of banks at end of period
................................................................................................
Based on con solidated (in clu din g foreign) reports of in com e — see table 115, note 1.
^Includes federal fu nd s sold.
3Not available before 1976.
"In clu de s interest on federal fu n d s purchased, subordinated notes and debentures, and other borrow ed m oney.
5Ratios are based on averages of a ssets and lia b ilitie s — see table 115 notes 5 and 6.
in c lu d e s all changes; p rior to 1978 the ratio represents changes due to net incom e only.
1 92
T a b le 1 1 7 .
I N C O M E O F A L L I N S U R E D C O M M E R C I A L B A N K S IN T H E U N I T E D S T A T E S ( S T A T E S A N D O T H E R A R E A S ) , 1 9 7 9
(A m o u n ts in th o u s a n d s o f d o lla rs )
M em bers F.R . System
National
M em ber
N on
m em bers
F.R . System
Operating
throughout
the year
Operating
less than
full year
89,886,053
29,026,821
31,369,479
150,200,882
81,471
1 0 2 ,1 92 ,4 59
10,6 6 9,7 2 6
6 1 ,8 0 1,8 5 4
6 ,9 3 1 ,22 4
1 9,454,915
3,142,851
2 0 ,9 3 5,6 9 0
595,651
102 ,152,334
10,6 6 2,9 2 8
4 0,125
6,798
6 ,1 2 6 ,3 4 0
3 ,5 5 1 ,15 8
999,274
1,575,908
6 ,1 0 6 ,47 6
19,864
1 0,6 8 6,2 7 7
6 ,95 5 ,22 2
1,198,071
1 ,07 3 ,25 4
2,375,711
2 ,5 2 8 ,75 2
3 ,6 4 1 ,6 0 7
2 ,8 3 4 ,93 4
5 ,36 7 ,18 8
3 ,74 8 ,21 6
7 54,858
7 30,483
1 ,34 5 ,01 9
1,316,051
2 ,453,021
1,886,981
1 ,571,506
1 ,146,880
232,966
2 55,830
7 63,524
291,667
556,801
610,607
3 ,74 7 ,58 3
2 ,06 0 ,12 6
210,247
86,941
2 67,168
921,034
6 31,785
337 ,3 46
1 0,6 7 9,1 1 6
6 ,9 5 2 ,41 8
1,19 7 ,13 3
1 ,07 3 ,24 7
2 ,3 7 5 ,7 1 0
2 ,52 6 ,99 3
3 ,6 4 0 ,46 6
2,834,061
7,161
2,804
938
7
1
1,759
1,141
873
Operating expenses— to ta l................................................................................................................................................
132,391,165
79,725,473
26,089,581
26,576,111
132,308,780
82,385
Sala rie s and em ployee b e n e f it s .....................................................................................................................................
Interest on tim e certificates of d e posit of $ 1 0 0 ,0 0 0 or m ore issu e d by dom estic offices ..................................
Interest on d e posits in foreign o f f ic e s ..........................................................................................................................
Interest on other d e p o s it s ..............................................................................................................................................
Expense of federal fu n d s purchased and secu ritie s sold under agreem ent to repurchase
in do m estic offices ....................................................................................................................................................
Interest on dem and notes issu ed to the U .S . Tre a su ry and other borrow ed m o n e y .............................................
Interest on sub ordinated notes and debentures ........................................................................................................
O ccupancy expense of bank prem ises, net, and furniture and equipm ent e x p e n s e .............................................
P ro visio n fo r p o ssib le loan lo ss ...................................................................................................................................
Other operating expenses ..............................................................................................................................................
2 1 ,5 6 2,1 6 7
18,1 7 8,6 5 0
2 4 ,5 2 3 ,8 0 7
2 9 ,1 8 5,4 1 4
12,403,664
10,7 2 3,4 6 0
1 6,9 0 3,5 2 9
15,7 3 7,0 4 0
3,71 8 ,17 3
3,594,811
7,35 0 ,36 4
3 ,43 4 ,40 4
5 ,44 0 ,33 0
3 ,86 0 ,37 9
2 69,914
1 0,0 1 3,9 7 0
2 1 ,5 4 0,3 3 0
18,1 6 4,6 5 7
2 4 ,5 2 3,8 0 7
2 9 ,1 7 0,5 7 9
21,837
13,993
0
14,835
1 2 ,3 5 6,2 8 5
3 ,16 7 ,24 7
501 ,4 70
6 ,2 8 1 ,49 6
3 ,7 8 5 ,64 2
12,8 4 8,9 8 7
8 ,498,431
2 ,01 4 ,74 3
265,383
3 ,5 7 1 ,28 2
2 ,25 1 ,73 4
7 ,35 6 ,20 7
3 ,0 5 1 ,09 6
963,284
99,526
1 ,135,114
677,863
2 ,06 4 ,94 6
806,758
189,220
136,561
1,57 5 ,10 0
8 56 ,0 45
3 ,4 2 7 ,83 4
12,355,601
3 ,1 6 6 ,8 8 6
501,451
6 ,2 7 4 ,0 4 5
3 ,7 8 2 ,9 8 8
1 2,8 2 8,4 3 6
684
361
19
7,451
2,654
20,551
Income before income taxes and securities gains or lo s s e s .....................................................................................
17,891,188
10,160,580
2,937,240
4,793,368
17,892,102
-9 1 4
4,742,118
2,753,735
890,572
1,097,811
4,741,365
753
Income before securities gains or lo s s e s ......................................................................................................................
13,149,070
7,406,845
2,046,668
3,695,557
13,150,737
-1 ,6 6 7
Securities gains (losses), gross .....................................................................................................................................
- 6 4 9 ,6 8 5
-2 9 9 ,7 2 7
-3 4 9 ,9 5 8
-3 4 9 ,3 8 3
- 1 6 3 ,2 4 0
-1 8 6 ,1 4 3
- 1 3 5 ,4 7 6
- 7 0 ,7 0 2
- 6 4 ,7 7 4
- 1 6 4 ,8 2 6
- 6 5 ,7 8 5
-9 9 ,0 4 1
- 6 4 9 ,7 2 8
-2 9 9 ,7 3 1
- 3 4 9 ,9 9 7
43
4
39
A p p licab le incom e taxes ................................................................................................................................................
S ecu ritie s gains (lo sses), net .......................................................................................................................................
C O R PO R ATIO N
150,282,353
Interest and fees on l o a n s ..............................................................................................................................................
Interst on balances with d e posito ry in stitu tion s ........................................................................................................
Incom e on federal fu n d s sold and secu ritie s pu rch ased under agreem ents to resell in
d o m estic offices ........................................................................... - a .........................................................................
Interest on U .S . Treasu ry secu ritie s and on ob lica tio n s of other U .S . Governm ent
agencies and c o rp o ra tio n s .........................................................................................................................................
Interest on o b lig atio ns of states and po litical s u b d iv is io n s .......................................................................................
Incom e from all other s e c u r it ie s ...................................................................................................................................
Incom e from direct lease f in a n c in g ..............................................................................................................................
Incom e from fid u ciary activities ...................................................................................................................................
Service charges on d e posit accou n ts in d o m e stic o f f ic e s .........................................................................................
Other service charges c o m m is s io n s , and fees ...........................................................................................................
Other operating in c o m e ..................................................................................................................................................
INSURANCE
Operating incom e— total ...................................................................................................................................................
DEPOSIT
Total
Incom e item
FEDERAL
BAN KS G R O U PED BY C LA SS O F BAN K
M em bers F.R . System
Income item
Total
National
M em ber
NonM em bers
F.R . System
Operating
throughout
the year
Operating
less than
full year
......................................................................
12,799,112
7,220,702
1,981,894
3,596,516
12,800,740
Extraordinary items, g ro s s ................................................................................................................................................
40,001
27,920
-2 ,2 9 2
14,376
A p p lica b le incom e taxes ................................................................................................................................................
E xtraordinary item s, net ................................................................................................................................................
39,990
626
3 9,375
1,957
25,963
9
-1 ,4 2 9
-8 6 6
98
14,278
625
39,365
1
10
Net In c o m e ..........................................................................................................................................................................
12,838,487
7,246,665
1,981,028
3,610,794
12,840,105
-1 ,6 1 8
4,455,170
123
Income before extraordinary it e m s
-1 ,6 2 8
MEMORANDA
4,455,293
2,649,709
4,447,484
7,809
2,648,199
1,510
Provision for income taxes— t o t a l...................................................................................................................................
U.S. Federal income taxes .............................................................................................................................................
U.S. States and local income taxes ..............................................................................................................................
Foreign income taxes ......................................................................................................................................................
2,653,069
902,579
887,369
4,443,017
2.592.452
1.442.452
437,592
712,408
Net loan losses (recoveries)— t o ta l................................................................................................................................
-2 ,5 6 4 ,2 6 0
1,198,985
3,763,245
Cash dividends declared on common stock ..............................................................................................................
Cash dividends declared on preferred s to c k ..............................................................................................................
Recoveries credited to allowance ................................................................................................................................
Losses charged to allowance .........................................................................................................................................
N um b er of b a n k s
366,988
282,775
168,678
818,441
1,032,124
843,629
182,212
6,283
2,652,558
902,332
887,369
511
247
0
-1 ,5 3 9 ,8 6 6
-4 1 2 ,0 9 7
-6 1 2 ,2 9 7
236,994
849,291
-2,5 6 3 ,8 1 7
-4 4 3
1,41 0 ,81 6
786,054
216,402
4 0 8 ,3 60
1,408,279
2,537
14,364
4,448
977
8 ,93 9
14,159
205
756,619
2,296,485
205,372
617,469
4,447,361
7,809
4,442,259
1,198,765
3,762,582
123
0
758
220
663
BANKS
193
977,578
971,515
6,063
OF INSURED
................................................
........................................................................................
N u m b er of fu ll-tim e equivalent em ployees at end of period
828,006
827,770
236
INCOME
Dividends declared on equity capital— t o t a l.................................................................................................................
1 94
Table 118.
BAN KS G RO UPED BY A M O U N T S OF A S SET S
(Am ounts in thousands of dollars)
Banks with assets of
$5.0 billion
or
more
5,843,893
3 ,848,478
87,009
8,874,771
5,97 3 ,9 3 0
189,421
2 6 ,62 1,70 2
18,0 22 ,37 8
1 ,2 71 ,8 45
6 5,2 47 ,6 29
45 ,0 65 ,6 72
8,743 ,8 03
346,901
437,111
1,16 0,32 5
1,862,024
1,582,703
633,315
805,291
1,93 8,60 7
1,961,962
1,118,584
7 0,527
34,317
213,819
395,236
43,342
26,018
108,465
563,042
79,796
69,553
192,640
1 ,38 3 ,98 5
123,722
186,156
684,514
1 ,451,375
739,117
722,446
1,031,974
322,034
189,736
100,671
373,607
298,124
153,226
136,929
152,306
65,894
205,339
239,748
118,900
463,996
83 0 ,02 4
556,150
420,005
1 ,577,577
1,671,674
8,4 6 2 ,1 3 8
1,716,726
8 ,885 ,7 9 4
1,780,268
12 ,489,490
2,4 5 6 ,9 6 6
5 ,078,158
987,827
7,8 1 3 ,4 8 8
1,559,431
2 3 ,8 4 2 ,0 9 0
4 ,1 7 0 ,2 1 5
58,920,769
7,35 0,44 9
409,132
0
2,554,504
813,059
0
3 ,896,113
1,085,137
0
3,763,523
1,931,312
4,668
4,635,451
887,537
12,055
1,537,892
1,365,699
159,772
2,057,023
4,46 2,9 61
1,60 4,37 4
4 ,7 1 0 ,9 0 5
7,1 3 5,6 86
22,74 2,9 3 8
5,44 6,7 69
6,891
46,351
95,265
188,569
586,353
441,026
799,133
3 ,4 9 4 ,3 6 2
6,69 6,9 07
2,167
951
21,595
9,854
50,628
22,785
75,609
32,820
126,737
62,719
57,710
27,263
109,072
51,537
4 6 0,3 1 8
1 34,309
2,26 2,78 6
159,102
12,281
7,758
31,092
66,145
40,963
159,249
316,937
188,159
780,724
480,917
268,816
1,117,829
524,143
2 75,097
1,160,628
766,132
354,944
1,564,208
322.279
1 5 1 |863
652,706
511,931
240,926
958,964
1 ,257,311
8 43 ,8 07
2 ,7 0 3 ,5 2 8
2,01 5,96 9
1,41 0,6 55
3,69 9,5 0 8
1 7 ,8 9 2 ,1 0 2
39,477
226,841
1,185,372
1 ,7 5 6 ,0 3 9
1,675,572
2,075,311
765,7 3 5
1,06 1 ,2 8 3
2 ,7 7 9 ,6 1 2
6,32 6,86 0
4 ,7 4 1 ,3 6 5
7,890
46,811
267,439
405,291
370,689
423,351
156,112
218,037
575 ,98 6
2,26 9,75 9
Less
than
$5 million
$5.0 million
to
$9.9 million
$25.0 m illion
to
$49.9 m illion
$50.0 m illion
to
$99.9 m illion
$100.0 m illion
to
$299.9 m illion
O p era ting in c o m e — t o t a l .........................................................
Interest and fees on lo a n s ....................................................
Interest on balances w ith d ep ository institutions
.
In com e on federal funds sold and securities
purchased under agreem ents to resell in
dom estic o f f i c e s ................................................................
Interest on U.S. Treasury securities and on
obligations o f other U.S. G overnm ent agencies
and c o rp o ra tio n s ................................................................
Interest on obligations of states and political
subdivision s .......................................................................
Incom e fro m all other s e c u r itie s ........................................
Incom e fro m direct lease fin a n c in g ...................................
In com e fro m fid ucia ry activities ........................................
Service charges on deposit accounts in dom estic
o ffic e s ...................................................................................
Other service charges, com m issions, and fees ............
Other operating incom e ......................................................
150,2 0 0 ,8 8 2
1 02,152,334
10 ,662,928
229,698
132,732
2,754
1,329,299
823,076
13,943
6,709,546
4,379,059
58,064
10 ,218,177
6 ,838,603
84,474
10,561,366
7,177,002
84,290
14,564,801
9,891,404
127,325
6 ,1 0 6 ,4 7 6
22,358
102,497
417,529
545,361
511,205
701,165
10,6 7 9 ,1 1 6
6 ,9 5 2 ,4 1 8
1,197,133
1 ,073,247
2 ,3 7 5 ,7 1 0
50,779
249,387
968,938
1,292,054
1,196,080
5,309
1,329
26
567
51,373
6,869
491
583
409,982
28,774
4,635
27,979
754,634
46,720
9,753
30,508
818,898
56,937
19,852
84,661
2 ,5 2 6 ,9 9 3
3 ,6 4 0 ,4 6 6
2 ,834,061
6,784
4,607
2,453
41,225
26,837
13,018
223,751
130,040
60,795
3 33,323
191,467
91,280
O perating expe n se s— to ta l ....................................................
Salaries and employee b e n e fits ..........................................
Interest on tim e certificates of d eposit of
$1 0 0 ,0 0 0 or m ore issued by dom estic offices
Interest on deposits in foreign offices ............................
Interest on other d e p o s its ....................................................
Expense of federal fun ds purchased and securities
sold under agreem ent fo repurchase in dom estic
o ff ic e s ...................................................................................
In te rest on dem and notes issued to the U.S. Treasury
and other borrow ed m o n e y .............................................
Interest on subordinated notes and d e b e n tu re s ............
Occupancy expense of bank prem ises, net, and
fu rn itu re and equipm ent e x p e n s e .................................
P rovision fo r possible loan l o s s ........................................
Other operating e x p e n s e s ....................................................
1 3 2 ,3 0 8 ,7 8 0
2 1 ,5 4 0 ,3 3 0
190,221
54,535
1,102,458
266,995
5,524,174
1,196,918
18 ,164,657
2 4 ,5 2 3 ,8 0 7
2 9 ,1 7 0 ,5 7 9
8,854
0
74,582
65,280
0
493,817
12,355,601
744
3 ,1 6 6 ,8 8 6
501,451
264
111
6 ,2 7 4 ,0 4 5
3 ,7 8 2 ,9 8 8
12 ,828,436
In com e b efore in com e taxe s and s e c u ritie s gains or
losses ........................................................................................
A p p lic a b le in co m e t a x e s .........................................................
$10.0 million
to
$24.9 million
$300.0 m illion
to
$499.9 m illion
CORPORATION
$ 1.0 billion
to
$ 4.9 billion
All
banks
INSURANCE
$500.0 m illion
to
$999.9 m illion
Incom e item
FEDERAL DEPOSIT
IN C O M E O F A LL INSU RED C O M M E RC IAL BANKS O P E R ATIN G TH R O U G H O U T 1979 IN TH E U N ITED STATES
(STATES AND O THE R AREAS)
Income before securities gains or losses......................
13,150,737
31,587
180,030
917,933
1,350,748
1,304,883
1,651,960
609,623
843,246
2,203,626
4,057,101
Securities gains (losses), g ro s s ....................................
-649,728
-837
-5,641
Applicable income t a x e s .............................................
Securities gains (losses), n e t .....................................
-299,731
-349,997
-6
-831
-1 ,2 72
-4 ,3 69
-33,629
-49,953
-9 ,0 6 5
-2 4 ,5 6 4
-54,023
-68,355
-17,091
-3 2 ,86 4
-30,971
-2 1 ,6 4 8
-3 2 ,3 7 5
-36,198
-3 1 ,5 2 3
-3 6 ,8 3 2
-186,854
-1 5 ,1 7 9
-1 5 ,79 2
-1 7 ,5 2 8
-1 8 ,6 7 0
-8 8 ,87 9
-9 7 ,97 5
-183,265
Income before extraordinary item s................................
12,800,740
30,756
175,661
893,369
1,317,884
1,272,508
1,615,128
593,831
824,576
2,105,651
3,971,376
Extraordinary items, gross ............................................
39,990
2,246
2,891
-2 4
2,270
6,029
17,219
69
2,822
7,463
3,624
-3 0 6
6,335
2,175
15,044
501
6,962
474
3,150
209
-2 ,3 2 4
2,533
0
Applicable income t a x e s .............................................
Extraordinary items, n e t .............................................
Net incom e.....................................................................
-9 7 ,54 0
-8 5 ,72 5
12
297
625
39,365
4
8
56
241
12,840,105
30,764
175,902
895,639
1,320,706
1,278,843
1,630,172
600,793
827,726
2,108,184
3,971,376
0
0
Memoranda
Dividends declared on equity capital— to ta l..................
Cash dividends declared on common stock ................
Cash dividends declared on preferred stock ................
4,447,361
7,809
4,455,170
6.916
0
6.916
34,108
35
34,143
192,670
192,336
334
321,688
506
322,194
373,637
804
374,441
552,454
1,016
553,470
203,805
3,234
207,039
319,487
1,222
320,709
917,292
658
917,950
1.525.638
Provision for income taxes— to ta l..................................
U.S. Federal income taxes .........................................
U.S. state and local income taxes ..............................
Foreign income taxes .................................................
4,442,259
2,652,558
902,332
887,369
7,888
6,787
1,101
0
45,595
39,084
6,511
0
258,350
224,728
33,622
0
388,269
339,610
48,558
101
348,735
300,787
47,599
348
394,003
329,825
64,178
0
141,434
118,514
22,910
10
200,983
153,283
45,407
2,293
334,226
107,199
43,358
484,783
2,172,219
Net loan losses (recoveries)— total ..............................
-2,563,817
1,198,765
3,762,582
-5,691
2,495
8,186
-30,371
14,347
44,718
-136,685
62,884
199,569
-194,577
88,665
283,242
-200,152
87,723
287,875
-255,207
102,575
357,782
-119,394
48,748
168,142
-178,086
67,215
245,301
-597,566
247,566
845,132
476,547
1,322,635
Number of full-time equivalent employees
at end of pe riod...........................................................
1,408,279
4,043
19,088
86,494
127,138
132,183
194,059
72,430
110,006
273,921
388,917
Number of banks ...........................................................
14,159
728
2,066
4,694
3,365
1,764
1,049
170
148
142
33
-846,088
BANKS
195
805,713
525,247
841,259
INCOME OF INSURED
Recoveries credited to allowance ...............................
Losses charged to allowance .....................................
1.525.638
0
1 96
Table 119.
RATIOS OF INCOME OF ALL INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1979 IN THE UNITED STATES
(STATES AND OTHER AREAS)
BANKS GROUPED BY AMOUNT OF ASSETS
Banks with assets of—
All
banks
Less
than
$5 million
$5.0 million
to
$9.9 million
Operating Incom e— t o t a l ................................................................................
Interest and fees on lo a n s ............................................................................
Interest on balances with depository in s titu tio n s ....................................
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 c o rp o ra tio n s ...............................................
Interest on obligations of states and political subdivisions ..................
Income from all other s e cu ritie s.................................................................
Income from fiduciary a c tiv itie s .................................................................
Service charges on deposit accounts in domestic offices ....................
Other service charges, commissions, and fees ......................................
Other operating income ..............................................................................
$100.00
68.01
7.10
$100.00
57.78
1.20
$100.00
61.92
1.05
Income item
$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
$5.0 billion
or
more
$500.0 million
to
$999.9 million
$1.0 billion
to
$4.9 billion
$100.00
65.85
1.49
$100.00
67.32
2.13
$100.00
67.70
4.78
$100.00
69.08
13.40
$300.0 million
to
$499.9 million
Amounts per $100 of operating income
$100.00
66.92
.83
$100.00
67.95
.80
$100.00
67.91
.87
4.07
9.73
7.71
6.22
5.34
4.84
4.81
5.94
4.93
4.36
2.85
7.11
4.63
.80
1.58
1.68
2.42
2.60
22.11
2.31
.58
.25
2.95
2.01
1.08
18.76
3.86
.52
.04
3.10
2.02
1.02
14.44
6.11
.43
.42
3.33
1.94
.98
12.64
7.39
.46
.30
3.26
1.87
.99
11.33
7,75
.54
.80
3.05
1.80
1.14
10.87
7.68
.48
1.47
2.57
2.05
1.29
10.84
6.76
.74
1.86
2.34
2.61
1.57
9.08
6.34
.90
2.17
2.31
2.70
2.12
7.28
5.20
.46
2.57
1.74
3.12
2.79
3.01
2.22
1.13
1.58
.64
2.42
3.67
Operating expenses— total ............................................................................
Salaries and employee be ne fits...................................................................
Interest on deposits in domestic o ffic e s ...................................................
Interest on deposits in foreign offices .....................................................
Expense of federal funds purchased and securities sold under
agreements to repurchase in domestic o ffic e s ....................................
Interest on demand notes issued to the U.S. Treasury and other
borrowed m o n e y.......................................................................................
Occupancy expense of bank premises, net, and furniture and
equipment expense..................................................................................
Provision fo r possible loan l o s s .................................................................
Other operating expe n se s...........................................................................
88.09
14.34
31.51
16.33
82.81
23.74
36.32
.00
82.94
20.09
42.06
.00
82.33
17.84
44.17
.00
82.81
16.80
46.08
.00
84.13
16.86
45.90
.00
85.75
16.86
45.09
.03
86.90
16.90
41.51
.21
88.04
17.57
38.57
1.80
89.56
15.66
34.46
6.03
90.30
11.27
19.28
34.86
8.23
.32
.52
.69
.93
1.79
4.03
7.55
9.00
13.13
10.26
2.44
.16
.23
.47
.72
1.03
1.30
1.45
1.81
2.23
3.71
4.18
2.52
8.54
5.35
3.38
13.54
4.98
3.08
11.98
4.72
2.80
11.64
4.71
2.63
10.94
4.96
2.60
10.99
5.26
2.44
10.74
5.51
2.60
11.17
5.77
2.71
10.81
4.72
3.17
10.16
3.09
2.16
5.67
Income before income taxes and securities gains or lo s s e s ..................
11.91
17.19
17.06
17.67
17.19
15.87
14.25
13.10
11.96
10.44
9.70
9.49
8.36
1.13
.81
.08
-.2 4
.24
7.35
6.09
1.26
.98
.08
-.2 6
.25
7.88
6.54
1.34
1.04
.09
-.2 7
.24
8.48
6.98
1.50
1.13
.08
-.2 5
.24
8.83
7.31
1.52
1.14
.08
-.2 4
.23
9.09
7.65
1.44
1.10
.08
- .2 5
.24
9.36
8.03
1.33
1.05
.07
-.2 3
.23
9.00
7.82
1.18
.93
.08
-.2 6
.23
9.39
8.27
1.12
.88
.07
-.2 6
.25
9.44
8.45
.99
.75
.09
- .3 0
.30
9.96
8.99
.97
.61
.07
-.2 0
.22
13.91
4.82
8.03
1.81
10.90
2.11
13.14
2.82
14.10
3.43
14.30
4.18
14.52
4.92
13.49
4.58
13.49
5.21
12.72
5.54
14.83
5.70
9.05
12.09
14.46
15.98
15.85
16.57
16.17
15.25
18.00
16.06
10.32
Amounts per $100 of total assets
Operating income— t o t a l..................................................................................
Operating expenses— total ..............................................................................
Income before income taxes & securities gains or losses ........................
Net in c o m e ........................................................................................................
Recoveries credited to a llo w a n c e ...................................................................
Losses charged to allowance .........................................................................
Provision fo r possible loan losses .................................................................
Amounts per $100 of equity capital
Net in c o m e ........................................................................................................
Cash dividends declared on common s to c k .................................................
Net change in capital accounts (less cash dividends on common and
preferred stock) ...........................................................................................
16.18
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 s e c u ritie s ...............................
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 d eposits...............................................................................................
Interest paid on time & savings deposits in domestic offices per
$100 of those d e p o s its ................................................................................
11.65
8.19
8.80
9.68
10.75
11.31
10.87
11.58
11.62
12.58
8.02
6.74
7.14
7.51
7.91
8.04
8.08
8.08
7.89
8.07
8.46
5.44
4.87
4.58
4.84
5.10
5.21
5.40
5.15
5.36
5.49
6.21
.64
.63
.82
.98
1.02
.98
.84
.69
.71
.59
.33
7.48
5.13
5.60
6.17
6.68
6.96
7.32
7.08
7.37
7.62
8.86
Number of banks at end of period ................................................................
14,159
728
2,066
4,694
3,365
1,764
1,049
170
148
142
33
FEDERAL DEPOSIT INSURANCE CORPORATION
$100.00
65.26
.87
Table 120.
INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1974-1979
(Amounts in thousands of dollars)
Income item
Operating incom e— t o t a l
Interest and fees on:
................................................................................................
Real estate loans, n e t
Other lo a n s
Operating expenses— t o t a l ...............................................................................................................
1975
1976
1977
1978
1979
7,187,542
8,331,083
9,433,998
10,668,024
11,966,717
4,503,214
337,884
4,817,741
283,416
5,225,101
334,625
5,745,032
433,478
6,500,885
601,510
7,173,749
490,742
5 67,577
9 29,613
74,858
150,841
191,401
3 2,9 6 8
139,127
8 69,038
1 ,16 6 ,75 5
142,958
200 ,8 49
207,398
3 9,825
144,534
1,09 6 ,58 0
1 ,294,958
166,854
255,214
227,542
47,6 1 4
166,726
1,22 9 ,60 7
1 ,32 4 ,37 0
191,868
2 93 ,0 24
2 61 ,6 77
5 7,307
2 07 ,7 76
4 08,238
1,380,468
1,351,138
200,592
260,660
287,779
75,930
337,421
N/A
4 03 ,9 40
7 43,944
4 7,028
1 25,718
170,273
2 7,875
1 33,715
N/A
N/A
N/A
N/A
6,624,666
7,646,301
8,519,950
9,503,400
11,060,177
3,778,695
1,717,147
4,160,435
2,127,531
4,223,409
2,774,056
3,930,597
3,776,077
N/A
N/A
3,229,489
5,729,297
55,168
4 5,3 6 5
4 6,8 2 7
1 22,436
N/A
N/A
N/A
N/A
4 27 ,6 42
114,206
4 3,8 1 5
10,034
324 ,1 38
4 8 6 ,3 29
135,754
52,543
21,8 3 6
3 77,194
5 54,594
158,044
62,285
78,732
459 ,3 15
6 26,108
1 72,059
73,863
69,950
533,678
719,004
189,459
88,131
109,426
5 68,270
Income before income taxes and net realized gains or losses
590,882
562,876
684,782
914,048
1,164,624
906,540
Applicable income and franchise taxes
161,870
171,549
227,088
280,168
310,945
259,173
Savings deposits (including deposits subject to transfer by o rd e r) ....................................
Time d ep o sits ..............................................................................................................................
...
...............................................................................
...................................................................................
...................................................................
.................................................................................
...............................................................................
............................................................................................
Expense of federal fu nd s purchased and secu ritie s sold under agreement to repurchase
Interest on other bo rrow ed m o n e y
Interest on sub ordinated notes and d e b e n tu r e s .........................................................................
S alaries and em ployee benefits
O ccupancy expense of bank prem ises, net
Furniture and equipm ent e x p e n s e
P ro visio n for p o ssib le loan lo sse s
Other operating e x p e n s e s
..........................................................................
Income before net realized gains or lo s s e s .....................................................................
N/A
66,110
N/A
N/A
N/A
138,398
120,836
3 5,894
819,502
210,839
103,176
65,204
6 07,542
429,012
391,327
457,694
633,880
853,679
647,367
.....................................................................................
Net realized gains or losses, gross ................................................................................
S ecu ritie s ..................................................................................................................
Extraordinary it e m s ......................................................................................................
-111,501
N/A
-2 5 ,8 9 9
N/A
49.283
N/A
47.634
N/A
-4 4 ,9 4 1
N/A
- 1 ,0 3 7
-111,501
-2 5 ,8 9 9
49.283
47.634
-4 4 ,9 4 1
770
-1 1 1 ,5 0 1
- 2 5 ,8 9 9
4 9.283
47.634
-4 4 ,9 4 1
N/A
N/A
N/A
N/A
N/A
- 1 2 ,8 4 7
13,617
Net in c o m e ............................................................................................................................................
317,511
365,428
506,977
681,514
808,738
649,174
Net realized gains or losses, net ....................................................................................................
Plus: A pp licable incom e taxes
1,807
197
BANKS
5,902,669
3,607,170
1,309,554
Interest and d ividend s on:
INCOME OF INSURED
.................................................................................................................
...................................................................................................................................
Incom e on federal fu nd s sold and secu ritie s purchased under agreem ents to r e s e ll.............
Interest on U .S . Treasu ry, agency, and corp oration o b lig a tio n s .............................................
Interest on corp orate b o n d s ..........................................................................................................
Interest on o b lig atio ns of States and p o litical sub d ivisio n s of the U .S .....................................
Interest on other bo nds, notes, and debentures .......................................................................
D ivid ends on s t o c k ..........................................................................................................................
Other service charg es, c o m m issio n s, and fees .........................................................................
Other operating incom e .................................................................................................................
1974
6,493,551
INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1974-1979-C O N TIN U E D
(Amounts in thousands of dollars)
Incom e item
1 98
T a b le 120.
1974
1975
1976
1977
1978
1979
Memoranda
3 69,166
4 07,314
5 45,665
8 34 ,7 17
826 ,4 15
6 49,415
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
11,213
2,184
45,568
8,558
P ro v isio n fo r in com e and fran ch ise ta xe s— t o t a l ............................................................................
U .S . Federal incom e t a x e s .............................................................................................................
State and local incom e and fran ch ise t a x e s .................................................................................
161,870
8 1,0 8 9
80,781
171,549
66,543
105,006
227,088
1.07,801
1 19,287
280,168
139,151
141,017
3 10 ,9 45
171,002
139,943
259,173
127,363
131,810
94.479.755
101.872.663
114.218.358
126.893.697
137.596.852
145.330.504
1 ,64 9 ,65 3
5 ,91 3 ,00 6
1 6,4 8 5,6 4 6
64,803,111
1 ,99 0 ,41 6
2 09 ,9 08
3 ,4 2 8 ,0 1 5
1 ,9 4 0 ,6 8 5
7 ,8 5 2 ,9 8 8
1 9,1 2 8 ,2 5 5
6 6 ,7 3 4 ,2 7 2
2 ,3 4 6 ,3 5 0
3 24 ,6 5 6
3 ,5 4 5 ,4 5 7
1 ,76 7 ,48 8
1 1 ,5 8 4,0 6 0
23,091,101
7 0 ,2 5 8 ,1 7 7
2 ,8 0 3 ,7 2 3
4 6 5 ,0 7 0
4 ,2 4 8 ,7 3 9
1 ,96 2 ,32 5
1 4 ,6 1 0,9 0 0
2 5 ,9 0 7 ,2 0 8
7 5 ,3 8 9 ,1 4 0
3 ,3 3 7 ,1 3 9
4 85 ,2 84
5,201,701
2 ,3 4 2 ,9 0 7
1 5,9 2 6 ,9 8 6
2 7 ,1 6 2 ,3 0 9
8 1 ,9 1 4 ,8 3 7
3 ,8 9 6 ,9 1 5
4 1 0 ,9 1 8
5 ,9 4 1 ,9 8 0
3 .0 8 4 .3 6 3
1 6,8 4 0,2 8 4
2 6,9 4 2 ,5 5 8
8 6 ,6 8 2 ,6 1 6
4 ,6 7 2 ,8 0 5
339 ,5 14
6 .7 6 8 .3 6 4
Liabilities and surplus accounts— total ..........................................................................................
94.479.755
101.872.663
114.218.358
126.893.697
137.596.852
145.330.504
Total d e p o s it s ...................................................................................................................................
...........................................................................................................................
...............................................................................................................................
........................................................................................................................
All other lia b ilit ie s .............................................................................................................................
S ubordinated notes and d e b e n tu re s ..............................................................................................
Total s u rp lu s a c c o u n t s ....................................................................................................................
56,878,427
28,175,681
916,668
8 5 ,9 7 0,7 7 6
59,730,943
32,305,817
978,310
9 3 ,0 1 5 ,0 7 0
1 0 4 ,7 11 ,2 48
116,564,671
1 25 ,6 2 0 ,2 8 7
1 31 ,8 42 ,3 43
1 ,81 4 ,04 5
143,958
6 ,55 0 ,97 6
1 ,79 1 ,23 0
1 72 ,5 10
6 ,8 9 3 ,8 5 3
1 ,855,561
2 03 ,3 13
7 ,4 4 8 ,2 3 6
1 ,94 0 ,48 4
262 ,1 02
8 ,1 2 6 ,4 4 0
2 ,7 2 4 ,6 5 5
3 51 ,0 30
8 ,9 0 0 ,8 8 0
3 ,5 5 5 ,3 5 9
3 73 ,8 04
9 ,5 5 8 ,9 9 8
N um ber of fu ll-tim e equivalent em ployees on payroll (end of p e r io d ) .........................................
3 7,4 9 4
40,261
4 5 ,0 4 0
4 9,4 6 6
5 3,8 0 6
53,708
N um ber of banks (end of p e r io d ) .......................................................................................................
320
329
329
323
325
324
Real estate lo ans
Other lo a n s
Real estate lo ans
Other lo a n s
Average assets and lia b ilitie s 1
Assets— total
Cash and due from deposito ry in s t itu tio n s ...................................................................................
U .S . Treasury, agency and corp oration o b lig a tio n s ...................................................................
All other securities ...........................................................................................................................
Real estate lo a n s ...............................................................................................................................
Other loans ........................................................................................................................................
Real estate ow ned other than bank p r e m is e s ..............................................................................
All other assets (including Federal fu nd s sold and secu rities purchased) ..............................
Savings deposits
Time deposits
Demand deposits
1Averages of am ounts reported at beginning, m iddle and end of year.
Note: N /A - Data not available.
64,969,577
38,718,326
1,023,345
69,232,480
46,005,857
1,326,334
68,634,606
55,267,097
1,718,584
59,979,665
69,619,528
2,243,150
FEDERAL DEPOSIT INSURANCE CORPORATION
....................................................................................................
R e cove rie s credited to allow ance fo r p o ssib le loan losses:
...............................................................................................................................
........................................................................................................................................
L o s se s charged to allow ance fo r p o ssib le loan losses:
...............................................................................................................................
........................................................................................................................................
Changes in s u rp lu s accou n ts, net
T a b le 121.
RATIO OF INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1974-1979
Incom e item
1974
1975
1976
1977
1978
1979
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
69.35
5.20
67.03
3.94
62.72
4.02
60.90
4.59
60.93
5.64
59.95
4.10
N /A
11.53
12.41
1.80
2.75
2.45
0.54
1.95
3.41
11.54
11.29
1.68
2.18
2.40
0.63
2.82
Amounts per $100 of operating income
Operating incom e— t o t a l....................................................................................................................
Interest and fees on:
Real estate loans, n e t .................................................................................................................
Other lo a n s ...................................................................................................................................
N /A
6 .22
11.46
0.72
1.94
2.62
0.43
2.06
N /A
7.90
12.93
1.04
2 .10
2.66
0 .46
1.94
N /A
10.43
14.00
1.72
2.41
2 .49
0.48
1.73
N /A
11.62
13.73
1.77
2.71
2.41
0.50
1.77
92.17
91.78
90.31
89.08
92.42
55.55
20.17
52.57
23.89
49.90
25.54
44.77
29.40
36.82
35.40
Expense of federal fu n d s purchased and secu rities sold under agreement to repurchase . . .
Interest on other bo rrow ed m o n e y ...............................................................................................
Interest on sub ordinated note: and d e b e n tu r e s .........................................................................
S alaries and em ployee benefits ....................................................................................................
O ccupancy expense of bank prem ises, net ................................................................................
Furniture and equipm ent e x p e n s e ..................................................................................................
P ro v isio n for p o ssib le loan lo sse s ...............................................................................................
Other operating e x p e n s e s ...............................................................................................................
N /A
1.02
N /A
6.59
1.76
0 .67
0.15
4 .99
N /A
0 .54
N /A
6.66
1.90
0.75
0 .95
5.51
N /A
0.50
N /A
6.64
1.82
0.78
0.74
5.66
N /A
1.15
N /A
6.74
1.78
0.83
1.03
5.33
26.98
47.88
interest and d ividend s on:
N /A
0 .77
N /A
6.77
1.89
0.73
0 .30
5 .25
1.16
1.01
0.30
6.85
1.76
0.86
0.54
5.08
Income before income taxes and net realized gains or lo s s e s ..................................................
9.10
7.83
8.22
9.69
10.92
7.58
Applicable income and franchise taxes .........................................................................................
2.49
2.39
2.73
2.97
2.92
2.17
Income before net realized gains or lo s s e s ..................................................................................
6.61
5.44
5.49
6.72
8.00
5.41
Net realized gains or losses, net ....................................................................................................
-1 .7 2
-0 .3 6
0.59
0.50
- 0 .4 2
0.01
N /A
N /A
N /A
N /A
N /A
- 0 .0 1
Net realized gains or losses, gross ................................................................................................
-1 .7 2
- 0 .3 6
0.59
0.50
- 0 .4 2
0.02
S ecu ritie s .........................................................................................................................................
E xtraordinary it e m s ..........................................................................................................................
- 1 .7 2
N /A
-0 .3 6
N /A
0 .59
N /A
0.50
N /A
-0 .4 2
N /A
-0 .1 0
0.12
Net in c o m e ............................................................................................................................................
4.89
5.08
6.08
7.22
7.58
5.42
Plus: A pp licable in com e taxes
199
......................................................................................................
BANKS
90.90
Savings deposits (including deposits subject to transfer by o rd e r) .....................................
Time deposits ..............................................................................................................................
Operating expenses— total ...............................................................................................................
INCOME OF INSURED
Incom e on federal fu n d s sold and secu ritie s purchased under agreem ents to r e s e ll.............
Interest on U .S . T reasu ry, agency, and corp oration o b lig a tio n s .............................................
Interest on corp orate b o n d s ..........................................................................................................
Interest on o b lig atio ns of States and po litical sub d ivisio n s of the U .S .....................................
Interest on other b o nd s, notes, and debentures .......................................................................
D ivid en d s on s t o c k ..........................................................................................................................
Other service ch arq es, c o m m issio n s, and fees .........................................................................
Other operating in com e .................................................................................................................
200
T a b le 121.
RATIO INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1974-1979-C O N TIN U E D
Incom e item
1974
1975
1976
1977
1978
1979
Amounts per $100 of total assets1
8 .24
7.61
0.63
0.18
0 .45
6 .87
6 .25
0 .62
0 .17
0 .45
-0 .1 2
7 .06
6 .50
0 .56
0.17
0 .39
-0 .0 3
7 .29
6 .69
0.60
0 .20
0.40
0.04
7 .43
6.71
0.72
0 .22
0.50
0.04
7 .7 5
6 .90
0 .85
0.23
0.62
-0 .0 3
-0 .1 2
0 .33
-0 .0 3
0 .36
0.04
0.44
0.04
0.54
-0 .0 3
0 .59
6.83
6 .59
6 .95
16.97
7.23
7.04
7.22
12.08
7.50
7.44
7 .44
11.94
7.51
7.51
7 .62
12.99
7.72
7.62
7.94
15.44
8 .20
7.79
8.28
10.50
5 .78
4 .85
5 .97
5.30
6.06
6.81
6.07
8 .39
6.22
9.09
6.91
6 .79
320
329
329
323
325
324
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0 .45
Special ratios1
Interest on U .S . Treasury, agency, and corp oration o b lig atio ns per $100
of U .S . Treasury, agency, and corp oration o b lig a t io n s .............................................................
Interest and d ividend s on all other securities per $100 of all other s e c u r it ie s ............................
Interest and fees on real estate loans per $100 of real estate loans, n e t .....................................
Interest and fees on other loans per $100 of other loans, n e t ......................................................
Interest and dividend s on savings and tim e d eposits per $100
of savings and tim e deposits .........................................................................................................
Net incom e per $100 of total surp lu s accounts
N um ber of banks (end of period)
^ e e note to Table 120.
Note: N /A - Data not available.
FEDERAL DEPOSIT INSURANCE CORPORATION
O perating in co m e — t o t a l............................................................................................
O perating expen se— t o t a l ...................................................................................................
Incom e before in com e taxes and net realized g a ins or l o s s e s ......................................................
A p p licab le incom e and franchise t a x e s ..............................................................................................
Incom e before net realized gains or lo sse s .....................................................................................
Net realized gains or lo sse s, g r o s s .....................................................................................................
A p p licab le incom e t a x e s ......................................................................................................................
Net realized gains or lo sses, n e t .........................................................................................................
Net in c o m e ............................................................................................................................................
Number and deposits of banks closed because of financial difficulties, 1934— 1979
Table 123.
Insured banks requiring disbursements by the Federal Deposit Insurance Corporation during
1979
Table 124.
Depositors, deposits, and disbursements in failed banks requiring disbursements by the
Federal Deposit Insurance Corporation, 1934— 1979
Banks grouped by class of bank, year of deposit payoff or deposit assumption , amount of
deposits, and State
Recoveries and losses by the Federal Deposit Insurance Corporation on principal disburse
ments for protection of depositors, 1934— 1979
Table 126.
Analysis of disbursements, recoveries, and losses in deposit insurance transactions, January
1, 1934— December 31, 1979
Table 127.
Income and expenses, Federal Deposit Insurance Corporation, by year, from beginning of
operations, September 11, 1933, to December 31, 1979
Table 128.
Protection of depositors of failed banks requiring disbursements by the Federal Deposit
Insurance Corporation, 1934— 1979
Table 129.
Insured deposits and the deposit insurance fund, 1934— 1979
201
LOSSES
Table 125.
CLOSED; FDIC INCOME. DISBURSEMENTS, AND
Table 122.
BANKS
BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES:
FDIC INCOME, DISBURSEMENTS, AND LOSSES
202
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 w hen the deposits of a failing bank are assumed
by another insured bank w ith the financial aid of the Corporation. In deposit
payoff cases, the disbursement is the am ount paid by the Corporation on
insured deposits. In deposit assumption cases, the principal disbursement
is the am ount loaned to failing banks, or the price paid for assets purchased
from them; additional disbursements are made in those cases as advances
for protection of assets in process of liquidation and for liquidation
expenses.
Under its section 13(c) authority, the Corporation has made disburse
ments to four operating banks. The am ounts 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
inform ation obtained from State banking departments, field supervisory
officials, and other sources. The Corporation received no reports of
noninsured bank closures due to financial difficulties in 1979.
For detailed data regarding noninsured banks that suspended in the years
1934-1962, see the Annual Report for 1963, pp. 27-41. For 1963-1979, 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,
December 31, 1979.
FEDERAL DEPOSIT INSURANCE CORPORATION
Deposit insurance disbursements
Table 122.
NUMBER AND DEPOSITS OF BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES, 1934-1979
Number
Deposits (in thousands of dollars)
Insured
Insured
136
556
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
8
6
3
6
4
14
17
6
7
10
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
9
7
6
1
6
4
13
16
6
7
10
1
1
‘' 4
1
3
1
1
2
. .. .
1
5
....
4
2
'‘ i
4
1
■• -j4
"2
' ■i 4
1
8
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
10
6,081,926
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
55,244
132,152
99,784
971,296
1,575,832
340,5744
865,659
205,208
854,154
110,696
143,500
5,938,426
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
1,915
5,695
347
7,040
10,674
6,665
5,513
3,408
3,170
44,711
998
11,953
11,330
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
110,696
'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 ;bdo4
800
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
5,475
5,513
3,408
3,170
18,262
998
11,953
11,330
1,163
8,240
2,593
6,930
8,936
3 ;o i l
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
110,696
Annual Report
Annual Report
Annual Report
203
For information regarding each of these banks, see table 22 in the 1963
(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.
^For information regarding these cases, see table 23 of the
for 1963.
For information regarding each bank, see the
for 1958, pp. 4 8 - 8 3 and pp. 9 8 -1 2 7 , and tables regarding deposit
.insurance disbursements in subsequent annual reports. Deposits are adjusted as of December 31, 1979.
Revised.
Total
Without
disbursements
by FDIC2
LOSSES
692
1934 .............................
1935 .............................
1936 .............................
1937 .............................
1938 .............................
1939 .............................
1940 .............................
1 9 4 1 .............................
1942 .............................
1943 .............................
1944 .............................
1945 .............................
1946 .............................
1947 .............................
1948 .............................
1949 .............................
1950 .............................
1 9 5 1 .............................
1952 .............................
1953 .............................
1954 .............................
1955 .............................
1956 .............................
1957 .............................
1958 .............................
1959 .............................
1960 .............................
1 9 6 1 .............................
1962 .............................
1963 .............................
1964 .............................
1965 .............................
1966 .............................
1967 .............................
1968 .............................
1969 .............................
1970 .............................
1 9 7 1 .............................
1972 .............................
1973 .............................
1974 .............................
1975 .............................
1976 .............................
1977 .............................
1978 .............................
1979 .............................
Total
Non
insured1
INCOME, D ISB URSE M E NTS , AND
T otal.............................
With
disbursements
by FDIC3
CLOSE D; FDIC
Total
Without
disbursements
by FDIC2
BANKS
Total
Non
insured1
Year
Case
Number
Deposit
payoff
311
204
Table 123.
INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION DURING 1979
Name and location
Village Bank
Pueblo West, Colorado
Class
of bank
Number of
depositors or
accounts1
M
1,394
First payment to
depositors or
disbursements by FDIC
Date of closing or
deposit assumption
FDIC
,
disbursements
Receiver or liquidating agent
or assuming bank
June 19, 1979
2,415,657
Federal Deposit Insurance Corp.
September 24, 1979
3,812,168
Federal Deposit Insurance Corp.
2,763,931
American Banking Company
Moultrie, Georgia
Exchange National Bank of
Birmingnam, Birmingham, Alabama
June 16,1979
September 21, 1979
$
Bank of Enville
Enville, Tennessee
NM
949
313
The Farmers State Bank
Protection, Kansas
NM
1,206
Toney Brothers Bank
Doerun, Georgia
NM
1,470
January 5, 1979
N
3,611
June 14, 1979
16,954,189
NM
5,270
July 14, 1979
7,103,216
Independence Bank of Chicago
Chicago, Illinois
July 14, 1979
15,709,045
Independence Bank of Chicago
Chicago, Illinois
September 28, 1979
20,662,173
Bank of Jackson, N.A.
Jackson, M ississippi
Deposit
assumption
245
246
Southern National Bank
Birmingham, Alabama
247
The Guaranty Bank & Trust
Company, Chicago, Illinois
248
Gateway National Bank of
Chicago, Chicago, Illinois
N
3,700
NM
11,911
249
Fidelity Bank
Utica, M ississippi
250
American National Bank
Houston, Texas
N
5,100
October 12, 1979
1,881,904
American Bank
Houston, Texas
251
Livingston State Bank
Livingston, New Jersey
NM
7,226
October 12, 1979
5,412,496
Fidelity Union Trust Company
Newark, New Jersey
Case
number
Deposit
payoff
311
312
313
Deposit
assumption
245
246
247
248
249
250
251
$
U.S. Govern
ment
obligations
124,835
252,773
411,928
$ 1,563,260
696,673
820,688
647,169
2,396,093
570,586
800,129
1,682,440
3,151,735
1,091,879
455,364
2,133,472
1,605,871
12,284,259
3 ,200,785
2,173,135
1,225,570
Other
securities
$
Loans,
discounts, and
overdrafts
100,000
115,400
104,935
$ 2,417,586
2,370,970
2,784,062
907,439
3 ,236,735
1,279,356
1,453,326
1,246,976
231,605
5,000
3,662,246
21,319,834
4,038,903
1,722,914
24,305,501
4,838,525
9,249,679
Banking house,
furniture, and
fixtures
$
336,919
31,864
212,951
$240,173
140,713
1,434,119
148,523
382,742
1,272,332
101,798
870,404
33,500
738,259
2 5 4 J2 2
67540
136,075
50,000
1 Figures as determined by FDIC Agents after adjustments of books of the bank immediately following its closing,
in clu d e s disbursements made to December 31, 1979, plus additional disbursements estimated to be required in these cases.
Other
assets
Other
real estate
$
Total
Deposits
276,646
536
449,083
$ 5,059,419
3,468,216
5,037,769
$ 4,862,244
3,139,078
4,685,955
23,033
1,327,048
233,093
283,350
973,665
112,403
238,360
5,869,464
32,585,560
7,876,332
16,933,260
32,817,774
10,659,201
12,680,892
5,790,622
24,031,970
7,415,842
9,229,970
30,223,164
10,353,000
11,020,610
Capital
stock
Other
liabilities
$
104,317
57,467
46,099
236,488
7,181,957
322,608
7,718,431
494,911
318,140
1,176,919
$
248,380
157,510
225,000
253,900
2.115.000
742.500
1.458.000
424.500
630,808
910,000
Other capital
stock
$
(155,522)
114,161
80,715
(411,546)
743,367
604,618
(1,473,141)
1,675,199
(642,747)
426,637
C O RPO RA TIO N
Liabilities and capital accounts
Assets1
Cash and
due from
banks
INSURANCE
312
DEPOSIT
Federal Deposit Insurance Corp.
January 29, 1979
FEDERAL
3,673,992
January 26, 1979
T a b le 1 24 .
Classification
Payoff
cases
Deposits1
(in thousands of dollars)
Number of depositors1
Assum p
tion
cases
Total
Payoff
cases
Assum p
tion
cases
Total
Payoff
cases
Disbursements by FDIC1
(in thousands of dollars)
Assum p
tion
cases
Total
All banks .....................
Class of bank
558
307
National ..................
State member F.R.S.
Nonmember F.R.S. .
104
33
421
36
12
259
251
21
162
Advances and
expenses2
Principal disbursements
Payoff
cases3
Assum pt
io n
cases
Payoff
cases5
Assum p
tion
cases
6 2 7 ,2 8 6
3 ,1 7 9 ,6 1 6
6 ,0 0 7 ,9 7 5
4 8 2 ,1 6 4
5 ,5 2 5 ,8 1 1
4 ,7 9 0 ,0 4 8 8
3 3 5 ,8 0 0
4 ,4 5 4 ,2 4 8
9 ,6 3 4
2 3 7 ,0 3 3
1,551,371
108,815
91,650
426,821
1,442,556
3,305,731
3,191,952
3 3 9 ,3 3 5
1 ,3 9 7,8 2 5
4 4 7 ,8 6 7
2 ,2 5 4 ,3 7 7
113,779
44,023
324,362
3,120,632
340,142
1,329,274
65,058
34,248
236,494
3,055,574
305,894
1,092,780
3,051
1,316
5,267
125,425
24,579
87,029
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
4 3 0 ,8 8 5
1,8 2 4,6 4 6
4 0 3 ,8 4 4
1 ,9 3 0 ,0 1 5
Year7
9
25
69
75
74
60
43
15
20
5
1
27
25
24
28
24
7
14
1
2
1
1
1
1
1
5
3
4
4
5
3
4
4
2
2
3
3
5
1
1
2
2
2
1
4
3
1
2
2
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
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
6,752
24,469
1,811
9,710
9,732
5,207
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
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
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
2,990
2,552
3,986
1,885
1,369
5,017
913
2,346
663
' ' 230
43
108
67
103
93
162
89
50
38
53
9
272
934
905
4,902
17,603
17,237
1,479
1,076
72
37
96
11
393
200
106
87
20
38
51
82
166
524
127
195
428
145
665
51
' ' 31
205
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
LOSSES
3 ,8 0 6 ,9 0 2
CLOSED; FDIC INCOME, DISBURSEMENTS, AND
Number of banks
BANKS
D E P O S I T O R S , D E P O S I T S , A N D D I S B U R S E M E N T S IN F A I L E D B A N K S R E Q U I R I N G D I S B U R S E M E N T S B Y T H E
F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N , 1 9 3 4 -1 9 7 9
B A N K S G R O U P E D B Y C L A S S OF B A N K , Y E A R OF D E PO S IT PAY O FF
OR D EPO SIT A S S U M P T IO N , A M O U N T OF D E P O S IT S , A N D STATE
DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN FAILED BANKS REQUIRING DISBURSEMENTS BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, 1 9 3 4 -1 9 7 9 -CONTINUED
BANKS GROUPED BY CLASS OF BANK, YEAR OF DEPOSIT PAYOFF
OR DEPOSIT ASSUMPTION, AMOUNT OF DEPOSITS, AND STATE
N um ber of banks
C lassifica tion
Total
A ssu m p
tion
cases
Total
Payoff
cases
A s su m p
tion
cases
Total
Payoff
cases
A s su m p
tion
cases
Prin cipal disbu rsem ents
Total
1961
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
...............................
........................................
........................................
..............................................
..............................................
........................................
..
.............
..............................................
..............................................
..............................................
........................................
..............................................
..............................................
..............................................
..............................................
...............
..............................................
..............................................
5
2
7
5
7
4
3
9
7
6
1
6
4
13
16
6
7
10
5
2
7
3
1
4
'4
4
5
1
3
' 3
3
' '1
3
8,301
36,433
19,934
14,363
1,012
4,729
' 3
4
10
13
6
6
7
8,301
3 6,4 3 3
19 934
15,817
95,424
4,72 9
12 850
27,374
31,433
71,950
23 655
349 ,6 99
704 283
110,367
340,731
95 548
3 64,384
4 2,028
2
6
' 3
5
3
1
6,544
20,403
31,850
23 655
8,382
21,925
8,246
24
516
3,740
8 936
23 444
2 3,438
4 2,889
774
10,878
341,317
704 283
88,442
332,485
95 524
363,868
38,288
8,93 6
23 444
2 3,438
43,861
103,523
10,878
22,524
40,134
54,821
132,152
20,480
971,296
1 ,575,832
3 39 ,5 74
8 64 ,8 59
2 05 ,2 08
854,154
110,696
1,454
94,412
12,850
20,830
11,030
40,100
Banks with deposits of:
Less than $ 10 0,00 0 ....................
$ 1 0 0,00 0 to $25 0,00 0 ...............
$ 2 5 0 ,0 0 0 to $ 5 0 0 ,0 0 0 ...............
$ 5 0 0 ,0 0 0 to $ 1 ,0 0 0 ,0 0 0
$ 1 ,0 0 0 ,0 0 0 to $ 2,0(to,000
$ 2 ,0 0 0 ,0 0 0 to $ 5 ,0 0 0 ,0 0 0
$ 5 ,0 0 0 ,0 0 0 to $ 1 0 L0 0 0 L000 . . . .
$1(),00(),000 to $ 2 ^,0 06 ,00 0 • • •
$ 2 5 ,0 0 0 ,0 0 0 to $ 5 0 ,0 0 0 ,0 0 0 ...
$50 0 0 0 L000 to $ 1 0 0 ,0 0 0 ,0 0 0 ..
$ 100 000 000 to $500 000 000
$ 5 0 0 ’ 0 0 0 ’000 to $ 1 ,0 0 0 ,0 0 0 ,0 0 0
$1 otio 0(50 000 o r more
39,902
18,859
108
1,286
12,631
945,501
1 ,575,832
299,672
8 46,000
2 05 ,1 00
8 52,868
98,065
972
102,749
22,524
31,122
21,332
57,547
6 201
19,230
13,744
10,958
735
8,120
7,599
29,181
53,790
16,275
16,802
25,992
11,482
818
10,169
Assu m pttion
cases
473
7 ,997
5,586
30,020
20,004
108,375
415,353
2 ,2 6 0 ,17 9
277,121
542,108
21,8 0 9
4 97 ,3 76
69,647
Payoff
ca se ss
154
349
599
640
35
242
301
696
799
383
1,426
1,366
1,217
46
182
A ssu m ption
cases
123
1,612
1,114
4,424
1,897
11,239
1,070
94,726
22,611
27,929
2,510
18,864
1,363
107
109
62
72
59
61
37
27
8
6
7
2
1
83
86
37
36
22
25
7
9
1
1
24
23
25
36
37
36
30
18
7
5
7
2
1
3 8,347
8 3 ,3 7 0
9 2,1 7 9
1 60,388
211 ,3 53
3 06 ,3 80
3 0 5 ,0 7 0
3 91 ,3 3 2
3 20 ,5 48
2 44 ,2 65
394 670
6 29 000
6 30 ,0 00
29,695
65,512
57,287
74,296
7 0,847
92,842
5 0,445
146,478
12,481
27,403
8,652
17,858
34,892
86,092
140,506
2 13,538
254,625
244,854
308,067
216,862
394 670
6 29 ’ 000
630,000
6,418
1 7,759
22,3 1 5
54,424
7 9,5 4 7
2 03 ,3 02
2 53 ,5 65
4 30 ,0 32
2 87 ,8 08
5 25 ,3 77
1 ,14 2 ,87 9
1 ,53 9 ,56 6
1 ,44 4 ,98 2
4,947
1 3,920
12,921
2 6,8 2 0
2 9,173
8 3,2 3 6
55,8 7 0
148,199
4 0 ,1 7 6
6 6,902
1,471
3 ,83 9
9,394
2 7,604
5 0,374
120,066
197,695
281 ,8 33
2 47 ,6 32
4 58 ,4 75
1 ,14 2 ,87 9
1 ,53 9 ,56 6
1 ,44 4 ,98 2
5,000
1 2,906
15,615
3 6 ,0 5 7
4 6 ,4 6 6
1 24 ,8 66
153 ,1 24
263 ,0 78
139 ,2 87
3 4 4 ,3 2 2 _
7 1 1 ,3 1 0 9
7 51 ,0 1 8
2 ,1 8 6 ,9 9 7 s
4,30 9
11,554
1 0,549
20,9 6 2
22,8 8 6
62,221
37,9 6 4
108,634
9 ,700
47,021
691
1,352
5,066
15,095
2 3,5 8 0
6 2,6 4 5
115,160
154,444
1 29,587
297,301
711 ,3 10
751 ,0 18
2 ,1 8 6 ,9 9 7
88
209
164
445
748
1,378
958
2 ,60 9
581
523
896
1,035
154
173
611
2,352
4,037
9,925
13,799
15,705
28,356
25,572
4 5,566
7,268
8 3,513
8
3
17,088
2,692
1,809
3 72 ,9 29
12,770
4 5 ,8 9 7
5 ,044
4 ,83 6
1,03 2 ,65 8
2 9,7 1 2
5,270
4 0 ,6 2 7
5,044
2,894
9 86 ,4 38
18,345
31,6 6 3
5,082
3,40 8
4 6 3 ,4 3 7 9
17,622
3,38 4
28,2 7 9
5,082
1,832
4 50 ,5 53
9,31 5
140
"6
1 9,660
2,69 2
6 ,35 0
3 9 0 ,8 1 9
2 0,3 9 6
2,572
8
6
9
5
1
2
3
4
1,374
464
325
4,27 5
2,618
State
A la b a m a .......................................
A rizo na
..........................
A rk an sas .......................................
C aliforn ia .....................................
C o lo r a d o .......................................
9,012
33,489
7 4,605
20,480
25,795
6 201
19 230
13,744
11,431
8,732
8,12 0
5,58 6
3 7,6 1 9
4 9,1 8 5
162,165
1 6,275
4 3 2 ,1 5 5 .
2 ,2 6 0 ,1 7 9
3 03,113
553 ,5 90
2 1,8 0 9
498 ,1 94
79,816
Payoff
ca se s3
Advances and
e x p e n se s 2
1
3
5
4,541
17,890
7,626
1,942
4 6 ,2 2 0
11,367
1,576
12,946
8 ,30 7
43
1,711
383
FEDERAL DEPOSIT INSURANCE CORPORATION
Payoff
cases
D isb ursem en ts by FDIC1
(in th ousan ds of dollars)
D ep o sits1
(in th ousan ds of dollars)
N um ber of de p o sito rs1
206
T a b le 1 2 4 .
3
5
3
2
27
2
2
8
2
10
I n d ia n a ..........................................
I o w a ..............................................
Kansas ..........................................
Kentucky ........................................
Louisiana .....................................
20
11
12
26
6
1
5
5
14
5
5
52
5
8
1
15
5
7
20
4
M a in e ............................................
M a r y la n d ........................................
M a s s a c h u s e t t s .............................
M ic h ig a n ........................................
M in n e s o ta .....................................
M is s i s s i p p i ...................................
M i s s o u r i ........................................
M o n t a n a ........................................
N e b ra s k a ........................................
New H am psh ire ..........................
New J e r s e y ...................................
New Y o rk .....................................
North C a rolina .............................
North Dakota ...............................
O hio ..............................................
O k la h o m a .....................................
O regon ..........................................
P e n n s y lv a n ia .................................
South C arolina .............................
South Dakota ...............................
43
28
7
29
5
13
2
31
3
23
Tennessee ......................................
Texas ............................................
..............................
Utah ............... >
V e r m o n t ........................................
V ir g in ia ..........................................
14
47
1
3
9
W ashingto n .................................
W est V irg inia ...............................
W is c o n s in ......................................
W yom ing ......................................
1
3
33
1
Other a re a s
V irgin I s la n d s ...............................
Puerto R ic o ...................................
1
3
2
1
5
5
3
38
3
8
13
3
2
18
2
8
1
8
1
22
9
33
"2
4
' 3
20
1
3
5
125,542
4 ,3 2 6
17,665
59,772
1,894
350,921
1,526
2,668
1,870
1,894
28,972
17,457
19,470
4,241
20,961
70,1 1 8
13,595
29,964
1 2,337
1 6,072
176,274
3 ,933
8 ,535
9,030
5,768
9,73 5
9 710
15,’ 924
18,624
162,155
5 ,450
4 ,56 6
3 8,696
194,399
818
4 5 ,9 0 9
2 9 ,1 5 5
1,095
11 644
’ 296
828
20,480
13,477
818
334
1 8,169
215
11,644
8,839
14,082
33,912
2 451
169,925
5,379
1,725
8,797
2 451
44,383
30,006
25,206
9,277
40,313
79,117
12,549
5,736
5,036
19,352
8,999
6,643
23,655
10,452
2 650
1,651
37,977
849
7,773
1
9 710
22,567
42,279
172,607
2,650
26,262
55,554
1,500
7,773
1,780
30
25
5
11
3
5
1
23
2
1
5 71,146
925,621
10,408
14,103
21,251
28,672
3,43 9
182,590
68,080
12,515
113,695
28,440
3 ,677
6 ,760
7 ,585
20,149
1,230
43,828
403
11,412
457,451
897,181
6,731
7 ,343
1 3,666
8,52 3
2 ,20 9
1 38,762
6 7,6 7 7
1,103
5
14.
1
1
5
1
133,317
131,109
3,254
11,057
35,715
10,952
80,986
122 ,3 65
50,1 2 3
3 254
2 ,370
23,077
17
5
6
5
6
2
1
3
4
9
2
14
2
'13
1
1
"3
4 ,179
8 ,346
62,247
3,212
11,073
369 ,8 40
3 ,46 0
12,357
2 5,115
24,611
1 7,577
651
1,780
8,687
12,638
4 ,17 9
8,346
18,739
261,401
1 ,7 5 5 ,5 0 0
3 ,26 6
3 ,8 3 0
102 ,8 38
2 0,7 2 0
2,67 0
9 6,9 0 7
113 ,5 53
2,98 8
3 4 1 ,4 5 0
2 20 ,4 83
5,992
3,72 5
17,779
43,508
3 ,212
1,538
2 006
112,627
2,033
3 69 ,8 4 0
14,229
7 89 ,4 42
11,073
2 ,800
14,997
57,902
321 ,9 49
3 ,37 5
11,171
3 9,640
1,493
2 36,756
1,242
2,139
1,551
1,493
23,924
9,662
21,429
3,307
10,304
1 66 ,5 39
6,197
17,793
9,725
12,519
141 ,9 16
3,096
6 ,469
7,654
5,041
4 ,93 7
5 450
3 ,738
18,216
180,922
2 346
3|109
27,257
142,592
640
735
16,275
12,242
640
45,5 7 5
1 0,986
880
3 3,2 5 2
21,4 9 2
639
8 116
117
296
4 9 ,1 1 9
13,286
1,421
1,552
2 ,345
11,053
1,368
14,340
136
2,862
4,83 6
141,922
3,375
7,652
2 12 ,2 82
1 ,74 2 ,21 4
1 ,845
2 ,278
100,493
9 ,66 7
1,302
82,5 6 7
1 13,417
126
3 36 ,6 14
78,561
5 992
’ 350
10,127
1,538
2 006
5,966
384
792
312
640
5,172
39,8 7 6
10,836
1,156
1,397
1,610
1 1,665
1,948
6 7,4 8 5
6 0,6 5 0
2,411
130 ,4 37
139 ,6 15
3 538
3*445
8,263
127 ,2 05
2 ,4 1 4 ,6 2 1 8
2 ,387
2 ,65 6
90,0 7 3
789 ,4 42
8 712
3 5 2 ’, 9 3 5 9
9
382
203
17
665
371
2,259
14,245
5
339
6
151
783
1,187
21
8 7 ,3 2 9
2 ,4 0 3 ,7 8 5
1,231
1,259
8 8,4 6 3
519
928
23
24
7
2 3,530
94,360
179
203
5,198
7,93 6
986
10,133
136
2 ,388
3 ,72 9
962
57,3 5 2
6 0,5 1 4
23
178
11
75
885
81
10,971
9,804
9
3 ,58 5
97,131
126 ,8 46
4 2,4 8 4
3 538
’ 186
4 ,39 6
92
1,796
8
117
3,259
3,867
935
1 458
5! 096
112,896
202
8,712
26
21
305
11
54
10 884
4 651
300
22
505
512
11,765
19
927
3 52 ,9 3 5
7,851
207
39
149
106
157
149
2 346
2*374
10,982
130,350
644
698
3,131
LOSSES
Note: Due to rounding differen ces, com p on en ts m ay not add to totals.
14,935
3,101
11,324
2,071
7 ,478
136 ,9 79
3 2,9 9 5
7,46 4
453
106,661
2,033
'A d ju s te d to D ecem ber 31, 1979. In assu m p tion cases, num ber of depositors refers to num ber of de posit accounts.
Exclud es $ 1 ,8 6 3 tho usan d of n on recoverable insurance expenses in cases that were resolved w ithout paym ent of claim s or a
d isb u rse m e n t to facilitate assu m p tio n of deposits by another insured bank and other expenses of field liquidation em ployees not
, chargeable to liquidation activities.
Includes estim ated additional disb u rse m e n ts in active cases.
Exclud es e xce ss co lle ctio n s turned over to banks as additional purchase price at term ination of liquidation.
^These disb u rse m e n ts are not recoverable by the Corporation; they con sist alm ost wholly of field payoff expenses.
Includes advances to pro te ct assets and liquidation expenses of $22 2,00 5 thousand, all of w hich have been fu lly recovered by the
C o r p o r a t io n , and $ 1 5 ,0 2 9 tho usan d of n on recoverable expenses.
No cases in 1962 required disb u rse m e n ts. D isb urse m en t totals for each year relate to cases occurrin g during that year, including
„ d isb u rse m e n ts made in sub se qu e nt years.
“ Includes disb u rse m e n ts by liqu idators in field ($ 1.5 billion).
In 1977 the assets of B anco E co n o m ia s were purchased outright by the Corporation. D isbursem ents in the case are included in table 126
under “ Other d is b u rse m e n ts ” and are not included in this table.
2 12,832
8
65
33
29
513
257
14,028
186
8,11 6
935
1 458
1 17 ’ 992
202
14,229
2,13 3
9,032
3 8,0 8 9
BANKS CLOSED; FDIC INCOME, DISBURSEMENTS, AND
C o n n e c tic u t...................................
F lo r id a ............................................
G e o r g ia ..........................................
Idaho ............................................
I llin o is ............................................
Liquidation
status and year
of deposit payoff
or deposit
assumption
T o ta l...............................
RECOVERIES AND LOSSES BY THE FEDERAL DEPOSIT INSURANCE CORPORATION ON PRINCIPAL
DISBURSEMENTS FOR PROTECTION OF DEPOSITORS, 1 9 3 4 -7 9
(Amounts in thousands of dollars)
Principal
disburse
ments
Recoveries
to Dec. 31,
1979
Deposit assumption cases
Deposit payoff cases
All cases
Number
of
banks
Estimated
additional
recoveries
Losses1
208
Table 125.
Number
of
banks
Principal
disburse
ments2
Recoveries
to Dec. 31,
1979
Estimated
additional
recoveries
Losses1
Number
of
banks
Principal
disburse
ments 3
Recoveries
to Dec. 31,
1979
Estimated
additional
recoveries
Losses1
558
4,790,048
3,848,583
670,270
271,195
307
335,800
284,557
15,678
35,565
251
4,454,248
3,564,026
554,592
235,630
80
478
4,383,917
406,131
3,474,524
374,059
670,270
239,123
32,072
26
281
183,846
151,954
151,368
133,189
15,678
16,800
18,765
54
197
4,200,071
254,177
3,323,156
240,870
654,592
222,323
13,307
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
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
49,185
162,165
16,275
432,155
2,260,179
303,113
553,590
21,809
498,194
79,816
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
7,339
8,241
7,016
5,575
37,524
48,479
161,328
10,630
212,200
2,025,127
236,859
387,281
13,007
348,689
28,597
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
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
3
930
995
1,025
1,241
1,355
3,214
378
396
1
58
641
369
1,385
230
230
6
473
7,997
326
7,506
' ' 3
5
3
1
5,586
30,020
20,004
108,375
5,575
30,019
19,774
108,372
1
2
'' 3
4
10
13
6
6
7
415,353
2,260,179
277,121
542,108
21,809
497,376
69,647
195,429
2,025,127
217,833
379,068
13,007
348,259
28,572
94,744
230,652
29,861
131,414
6,687
129,397
31,820
Status
A c tiv e .............................
Y e a r4
.........
''
i
27
25
24
28
24
7
14
1
1
1
1
1
' '58
641
369
1,385
'792
' '28
97
11502
438
42
128
8
42
1
11
171
593
1,645
94,775
230,652
35,582
131,992
6,687
129,635
37,864
Ii6 2 2
3,963
485
1,062
11
85
533
243
4,000
125,180
4,400
30,672
34,317
2,115
19,870
13,355
' ' 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
7,013
735
7,016
' ' 4
4
5
1
3
7,599
29,181
53,790
16,275
16,802
'' 3
3
" i
3
Note: Due to rounding differences, components may not add to totals.
230
213
28
97
5
3
4
4
2
3
2
2
1
1
. . ..
792
258
1,502
438
42
.128
1,622
3,817
42
1,062
7,505
28,705
52,956
10,630
16.771
9
171
591
1,645
31
85
305
243
4,000
25,992
11,482
19,026
8,213
5,721
578
1,245
2,691
818
10,169
430
25
238
6,044
150
4,100
■2
8
146
485
11
228
2
125,180
4,400
29,427
31,626
2,115
19,720
9,255
CORPORATION
258
230
213
Includes estimated losses in active cases. Not adjusted fo r interest or allowable return, which was collected in some cases in which the
9 disbursement was fully recovered.
^Includes estimated additional disbursements in active cases.
Excludes excess collections turned over to banks as additional purchase price at termination of liquidation.
No case in 1962 required disbursements.
207
1,752
1,338
2,647
1,184
5,797
582
213
292
123
40
INSURANCE
5
7
4
3
9
7
6
1
6
4
13
16
6
7
10
3
FEDERAL DEPOSIT
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
1970
197 1
1972
1973
1974
1975
1976
1977
1978
1979
Table 126.
ANALYSIS OF DISBURSEMENTS, RECOVERIES, AND LOSSES IN DEPOSIT INSURANCE TRANSACTIONS,
JANUARY 1, 1934— December 31, 1979
(In thousands)
R e co v e rie s1
Losses
All disbursements— total2 ...................................................................................
$5,219,134
$4,883,152
$335,982
Principal disbursements in deposit assumption and payoff cases— total
4,790,048
4,518,853
271.195
4 ,2 2 0 ,4 9 8
4 ,5 1 8 ,8 5 3
5 24 ,2 58
271.195
233 ,7 50
103 ,4 16
130 ,3 34
3 34 ,9 98
802
2 84 ,5 5 7
1 5,678
35,565
Advances and expenses in deposit assumption and payoff cases— to ta l.
246,668
222,005
24,663
Expenses in liquidating assets:
A dva nce s to protect assets ......................................................................
Liqu id ation expenses
Insurance e xp e n se s4
Field payoff ana other in su ra nce expenses in 307 deposit payoff cases4
115 ,1 47
106 ,8 58
15,0 2 9
9,63 4
115 ,1 47
106 ,8 58
0
0
15,029
9,634
182,418
142,294
40,124
9,99 3
5 ,3 3 9
593
4,061
3 4 ,9 6 9
1 2,040
2 ,92 9
20,000
15,393
1,011
182
0
14,200
L oa ns and a ssets pu rch ased in liqu idation s (251 deposit assum ption cases):
To D ecem ber 31, 1979 .....................................................................................
Estim ated additional .
Notes purchased to facilitate d e p osit assu m p tio n s, m ergers, or consolidations:
To D ecem ber 31, 1979 .........................................................................................
Estim ated a d d itio n a l............................._
D ep osits paid (307 d e p osit payoff cases):'
To D ecem ber 31, 1979 ........................
Estim ated a d d itio n a l...............................
Other disbursem ents— total
C orp oration purchases:
To facilitate term ination of liquidations:
To D ecem ber 31, 1979 .......................................
Estim ated a d d itio n a l..............................................
T o p u rc h a s e assets from operating insured banks:
To D ecem ber 31, 1979 .......................................
Estim ated a d d itio n a l..............................................
Other assets purchased outright:
To D ecem ber 31, 1979 .......................................
Estim ated a d d itio n a l..............................................
U nallocated insurance e xp e n se s4 ...............................
A ssista n c e to operating insured banks:
To Decem ber 31, 19785 ..........................................
Estim ated a d d itio n a l...................................................
1,863
1 2 0 ,2 0 0
8 3 ,2 0 0
3 7 ,0 0 0
0
0
'i] 8 6 3
LOSSES
D isb ursem en ts
BANKS CLOSED; FDIC INCOME. DISBURSEMENTS. AND
Type of disbursem ent
Exclud es am ounts returned to closed bank equity-holders and $120.9 m illio n of interest and allow able return received by the FDIC.
^Includes co lle ctio ns and disb u rse m e nts by liquidators in the field ($1.5 billion).
^Includes estim ated am ounts fo r pending and unpaid claim s in active cases.
^Not recoverable.
Exclud es $32 m illio n o rig in ally disb u rsed as assistan ce to Farm ers Bank of the State of Delaware and subsequently applied to assets
purchased from operating insured banks.
209
Table 127.
INCOME AND EXPENSES, FEDERAL DEPOSIT INSURANCE CORPORATION, BY YEAR, FROM BEGINNING OF OPERATIONS,
SEPTEMBER 11, 1933 TO DECEMBER 31, 1979
(In millions)
o
Expenses and losses
Income
Year
Total
Deposit insurance
assessments1
Investment and
other sources2
$11,356.5
$5,378.7
$5,977.8
1979 ...............................
1978 ...............................
1977 ...............................
1976 ...............................
1975 ...............................
1974 ...............................
1973 ...............................
1972 ...............................
1 9 7 1 ...............................
1970 ...............................
1969 ...............................
1968 ...............................
1967 ...............................
1966 ...............................
1965 ...............................
1964 ...............................
1963 ...............................
1962 ...............................
1 9 6 1 ...............................
1960 ...............................
1959 ...............................
1958 ...............................
1957 ...............................
1956 ...............................
1955 ...............................
1954 ...............................
1953 ...............................
1952 ...............................
1 9 5 1 ...............................
1950 ...............................
1949 ...............................
1948 ...............................
1947 ...............................
1946 ...............................
1945 ...............................
1944 ...............................
1943 ...............................
1942 ...............................
1 9 4 1 ...............................
1940 ...............................
1939 ...............................
1938 ...............................
1937 ...............................
1936 ...............................
1935 ...............................
1 9 3 3 -3 4 ......................
1,090.4
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
47.7
48.2
43.8
20.8
7.0
356.4
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)
734.0
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
Total
Deposit insurance losses
and expenses
$1,563.8
$342.8
93.7.
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
1For the period from 1950 to 1979, 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 $5,817 million.
Includes $36 m illion of interest and allowable return received on funds advanced to receivership and deposit assumption cases and $85
.m illio n of interest on capital notes advanced to facilitate deposit assumption transactions and assistance to open banks.
Paid 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.
Assessments collected from members of the temporary insurance funds which became insured under the permanent plan were credited
to their accounts at the termination of the tem porary 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.
^Includes net loss on sales of U.S. Government securities of $105.6 million in 1976 and $3.6 million in 1978.
Net after deducting the portion of expenses and losses charged to banks withdrawing from the temporary insurance funds on June 30,
1934.
Interest on
capital stock3
$80.6
Administrative and
operating expenses
$1,140.4
13.1
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
$9,792.7
996.7
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
106.8
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
0.'1
0.3
0.3
0.1
0.1
0.8
6.6
i .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
Net income added to
deposit insurance fund
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
76.9
6.4
6.1
5.7
5.0
4.1
3.5
3.4
3.8
3.8
3.7
3.6
3.4
3.0
2.7
2.5
2.7
4 .2 6
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
FEDERAL DEPOSIT INSURANCE CORPORATION
T o ta l...............................
_*
Table 128.
PROTECTION OF DEPOSITORS OF FAILED BANKS REQUIRING
DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION
A ll cases
(558 banks)
D eposit assum ption cases
(251 banks)
D eposit payoff cases
(307 banks)
Item
Percent
N um ber or
am ount
Percent
Num ber or
am ount
Percent
Number of depositors or accounts— to ta l1 ....................................................
3,806,902
100.0
627,286
100.0
3,179,616
100.0
Full recovery received or a v a ila b le .............................................................
3,799,366
99.8
619,750
98.8
3,179,616
100.0
F D IC 2 ..................................................................................................
o ffs e t4 ................................................................................................
secu rity or preference 5 ....................................................................
asset liq u id atio n 6 ..............................................................................
3,751,691
41,168
3,29 5
3 ,212
98.5
1.1
0.1
0.1
5 7 2 ,0 7 5 3
41,168
3,295
3,212
91.2
6.6
.5
.5
3 ,17 9 ,61 6
100.0
Full recovery not received as of December 31,1 9 7 9 ..............................
7,536
0.2
7,536
1.2
Term inated c a s e s ..........................................................................................
Active c a s e s ..................................................................................................
3 ,6 7 0
3 ,86 6
0.1
0.1
3 ,67 0
3 ,86 6
.6
.6
Amount of deposits (in thousands)— t o t a l......................................................
6,007,975
100.0
482,164
100.0
5,525,811
100.0
Paid or made available .................................................................................
5,993,515
99.8
467,704
97.0
5,525,811
100.0
5 ,86 2 ,24 9
2 3,8 0 9
56,671
50,7 8 6
9 7.6
.4
.9
.9
3 3 6 ,4 3 8 7
23,8 0 9
56,671
50,7 8 6
7 0.0
4 .9
11.7
10.4
5,525,811
100.0
.............................................................
14,460
.2
14,460
3.0
Term inated c a s e s ..........................................................................................
Active c a s e s 1 1 ..............................................................................................
3,171
1 1,289
.0
.2
3,171
11,289
.7
2.3
From
From
From
From
By
By
By
By
F D IC 2 .......................................................................................................
o ffs e t8 .....................................................................................................
secu rity or pre fere n ce 9 ........................................................................
asset liq u id a tio n 1 0 .................................................................................
Not paid as of December 31,1 9 7 9
N um ber of d e posito rs in deposit payoff cases; num ber of accounts in deposit assum ption cases.
Through direct paym ents to d e p osito rs in d e posit payoff cases; through assum ption of deposits by other insured banks facilitated by
FDIC disb u rse m e n ts of $ 4 ,4 5 4 ,2 4 8 tho usan d, in deposit assum ption cases.
^Includes 6 0,9 1 3 d e p osito rs, in term inated ca se s, who failed to claim their insured deposits (see note 7).
Includes only d e posito rs with claim s offset in full; m ost of these would have been fully protected by insurance in the absence of offsets.
Exclud es d e p osito rs, paid in part by the FDIC; w h ose deposit balances were less than the in su rance m axim um .
The insured portion s of these d e posito r claim s were paid by the Corporation.
Includes $516 thousand u n claim ed in su red d e posits in terminated cases (see note 3).
“ Includes all am ounts paid by offset.
Includes all secured and preferred claim s paid from asset liquidation; excludes secured and preferred claim s paid by the Corporation.
^Includes unclaim ed de posits paid to authorized p u blic custodians.
Includes $ 1,244 tho usan d representing de posits available, expected through offset, or expected from proceeds of liquidation.
LOSSES
Number or
amount
BANKS CLOSED, FDIC INCOME, DISBURSEMENTS, AND
1934-1979
nd
—1
Table 129.
IN S U R E D D E P O S IT S A N D T H E F D IC IN S U R A N C E F U N D , 1 9 3 4 - 1 9 7 9
(In m illions)
Ratio of deposit insurance fund to —
Deposits in insured banks
Year (December 31)
1979
1978
1977
1976
1975
...............................................
.............
...............................................
.............
...............................................
Insurance
coverage
$40,000
40,0007
4 o ! ooo 6
40,000
40,000
Total1
$1,226,943
1,145,835
1,050,435
941,923
875,985
Insured1
$808,555
760,706
692,533
628,263
569,101
Percentage of
insured deposits
Deposit insurance
fund
65.9%
66.4
65.9
66.7
65.0
$9,792.7
8,796.0
7,992.8
7,268.8
6,716.0
Total
deposits
Insured
deposits
.80%
.77
.76
.77
.77
1.21%
1.16
1.15
1.16
1.18
40,000
20,000
20,000
20,000
20,000
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
6 1 ,34
64.1
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
1969
1968
1967
1966 ...............................................
1965 ...............................................
20,000
15,000
15,000
15,000
10,000
495,858
491,513
448,709
401,096
377,400
313,085
296,701
261,149
234,150
209,690
63.1
60.2
58.2
58.4
55.6
4,051.1
3,749.2
3,485.5
3,252.0
3,036.3
.82
.76
.78
.81
.80
1.29
1.26
1.33
1.39
1.45
1964....................
1963
1962
1961
1960 ...............................................
10,000
10,000
10,000
10,000
10,000
348,9810
313,304^
297,5483
281,304
260,495
191,787
177,381
170,210 4
160,3094
149,684
55.0
5 6 .6 ,
57.2 4
57.0 4
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
1.47
1.474
1.48
1959
1958
....................
1957
...
1956
...
....................
1955 ...............................................
10,000
10,000
10,000
10,000
10,000
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
.84
.81
.82
.79
.77
1.47
1.43
1.46
1.44
1.41
1954 ...............................................
1953 ...............................................
1952
1951
....................
1950 ...............................................
10,000
10,000
10,000
10,000
10,000
203,195
193,466
188,142
178,540
167,818
110,973
105,610
101,841
96,713
91,359
54.6
54.6
54.1
54.2
54.4
2,089.8
1,965.4
1,850.5
1,742.1
1,639.6
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 ...............................................
5,000
5,000
5,000
5,000
5,000
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
5,000
5,000
5,000
5,000
5,000
134,662
111,650
89,869
71,209
65,288
56,398
48,440
32,837
28,249
26,638
41.9
43.4
36.5
39.7
40.8
804.3
703.1
616.9
553.5
496.0
.60
.63
.69
.78
.76
1.43
1.45
1.88
1.96
1.86
57,485
50,791
48,228
50,281
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
...............................................
...............................................
...............................................
...............................................
...............................................
1939 ...............................................
1938 ...............................................
1937
......................................
1936
...............................
1935
......................................
1934 ...............................................
5,000
5,000
5,000
5,000
5,000
5 ,0 0 0 5
1Deposits in foreign branches are omitted from totals because they are not insured. Insured deposits are estimated by applying to the
deposits in the various types of accounts at the regular Call dates, the percentages insured as determined from special reports secured
Ofrom insured banks.
2December 20, 1963.
3 December 28, 1962.
^Revised.
^Initial coverage was $2,500 from January 1 to June 30, 1934.
*$100,000 for time and savings deposits of in-state governmental units provided in 1974.
$100,000 for Individual Retirement accounts and Keogh accounts provided in 1978.
FEDERAL DEPOSIT INSURANCE CORPORATION
1974 ...............................................
1973 ...............................................
1972 ...............................................
1 9 7 1 ...............................................
1970 ...............................................
INDEX
215
Absorptions:
Of insured banks requiring disbursements by FDIC. See Banks in financial difficulties.
Of operating banks, 1 9 7 9 .................................................................................................. 7
Of operating banks approved by FDIC, 1 9 7 9 ............................................ 7, 63-1 28
Of operating banks denied by FDIC, 1 9 7 9 .......................................................... 7, 68
Regulation o f ................................................................................................................ 1 5 -1 6
A dmission of banks to insurance: See also A pplications from banks.
A pplications for, 1 9 7 9 .................................................................................................... 7-8
N umber of banks admitted, by class of bank, 1 9 7 9 ............................................ 1 4 0
A merican Bankers A s s o c ia t io n ................................................................................................ 27
A merican National Bank, Houston, T e x a s............................................................................. 17
Applications from b a n k s ................................................................................................................ 7
Areas outside continenta l United States, banks and branches located in:
Number, December 3 1 , 1 9 7 9 ............................................................................1 42,1 4 4
Assessments for deposit insurance
............................................................................... 3 5 ,3 6
Assets and liabilities of FDIC...............................................................................................3 7 - 3 9
Assets, liabilities and capital of banks. See also deposits:
Commercial banks:
Foreign, of U.S. b a n k s .................................................................. 1 59, 1 73, 1 74, 1 76
Grouped by insurance status, June 30, 1 9 7 9 and December 31,
1 9 7 9 ..................................................................................................................... 1 6 1 ,1 6 4
Sources of data ........................................................................................................... 1 60
Insured comm erc ial banks:
Assets and liabilities of insured com m ercial banks (Domestic and fo reign
offices) U.S. and oth er areas December 31, 1 9 7 9 ......................................... 176
Amounts, December call dates, 1 974-1 9 7 9 ...................................................... 1 70
Amounts, June 30, 1 9 7 9 and December 31, 197 9 by class of
b a n k .......................................................................................................................1 61,1 64
Major categories, average, 1 9 7 4 - 1 9 7 9 ............................................................... 189
Percentage distrib utio n, by size of bank, 1 9 7 9 ................................................. 1 83
Percentage of items, by size of bank, 1 9 7 9 ......................................................... 1 8 0
Insured mutual savings banks:
Amounts, D ecember call dates, 1 974-1 9 7 9 ...................................................... 1 78
Major categories, average, 1 9 7 4 - 1 9 7 9 ............................................................... 197
Percentage of items, by size of bank, 1 9 7 9 ......................................................... 181
Methods of tabulating data ............................................................................... 1 59-1 60
Mutual savings banks:
Grouped by insurance status. June 30, 1 9 7 9 and December 31, 1 9 7 9 ...... 1 68
Sources of data ........................................................................................................... 187
Assets, purchase of, by FDIC fro m banks in financial d iffic u ltie s ................................... 16
A s su m p tio n of d eposits of insured banks with financia l aid of FDIC. See Banks in
financial difficulties.
Attorney General of the United States, summ ary reports on a b s o r p t io n s .............6 3 - 6 8
A u d it of F D IC ........................................................................................................................... 3 6 - 3 7
Automatic transfer of funds from savings to checking, survey and regulation .... 22, 29
Awards to FDIC personnel ........................................................................................................ 34
Bad debt reserves. See Valuation reserves.
Bank control, changes, regulation o f ....................................................................................8, 9
Bank hold ing companies, supervision o f ............................................................................. 4, 9
Bank of Enville, T e n n e sse e ........................................................................................................ 17
Bank s e c u rity ..................................................................................................................................26
Bank crimes in 1 9 7 9 ........................................................................................................ 26
Bank Protection Act of 1 9 6 8 ........................................................................................ 26
Fidelity and surety coverage fo r b a n k s ....................................................................... 27
216
FEDERAL DEPOSIT INSURANCE CORPORATION
Bank supervision. See Supervision of banks; Examination of insured banks.
Banking offices, num ber of. See Number of banks and branches.
Banks in financial difficulties;
Insured banks requiring disbursements by FDIC:
Assets and liabilities o f ............................................................................................ 2 0 4
Deposit size o f ............................................................................................................ 2 0 5
Deposits protected, 1 9 3 4 - 1 9 7 9 ................................................. 1 4 -1 6 , 2 05, 21 1
Disbursements by FDIC, 1 934-1 9 7 9 ......................................... 14-1 6 , 2 05, 2 0 8
Failures in 1 9 7 9 ..................................................................................................... 16 -1 7
Loans made and assets purchased by FDIC...................................................1 4 -1 6
Location by State, 1 9 3 4-1 9 7 9 ............................................................................ 2 0 5
Losses incurred by d e p o s i t o r s ....................................................................... 15, 21 1
Losses incurred by F D I C ....................................................................... 15, 208, 209
Number of, 1 9 3 4 - 1 9 7 9 ....................................................................................20, 2 0 3
Number of deposit a c c o u n t s ....................................................................... 2 05, 21 1
Recoveries by FDIC on assets acquired 1 934-1 9 7 9 ............................ 2 0 8 ,2 0 9
Noninsured banks:
N umber and deposits of com m ercia l banks closed 1 9 3 4 -1 9 7 9 ................ 2 0 3
Banks, n um ber of. See Number of banks and branches.
Board of Directors of FDIC. See Federal Deposit Insurance C orporation.
Branches:
Establishment approved by FDIC, 1 9 7 9 .................................................................. 7-8
Number of. See Number of banks and branches.
Call reports. See Assets, liabilities, and capital of banks:
Capital a d e q u a c y .......................................................................................................................... 29
Capital of banks. See Assets, liabilities and capital of banks; Banks in financial
difficulties; Income of insured comm ercial banks;
Examination of insured banks.
Cease and desist p ro c e e d in g s .......................................................... 10-1 1, 29, 4 9 - 6 0
Charge-offs by banks. See Income of insured comm ercial banks; Income of
insured mutual savings banks; Valuation reserves.
Class of bank, banking data presented by:
A b s o r p tio n s .................................................................................................. 6 3 - 1 2 8 , 140
Income of insured com m ercial banks, 1 9 7 9 ...................................................... 1 92
Insured banks requiring disbursements by FDIC 1 934-1 9 7 9 ...................... 2 0 5
Number of banks and banking offices, 1 9 7 9 ............................................ 1 40, 1 4 4
Number of banks and a s s e t s .................................................................................... 1 53
Classification of b a n k s ............................................................................................................. 139
Closed banks. See Banks in financial difficulties.
Com m ercial banks. See Assets, liabilities and capital of banks; Deposits; Income
of insured com m ercial banks; Number of banks and branches.
C o m m u n ity Reinvestment A c t .........................................................................4, 6, 19, 20, 21
Compliance e x a m in a tio n s ........................................................................................................ 4-6
C om ptroller of the C u r r e n c y .................................................................vii, 3, 4, 9, 1 0, 1 4, 30
C om puter managem ent s y s te m s ............................................................................................. 3 0
Conference of State bank s u p ervis ors.................................................................................... 10
Consolidation. See Absorptions.
Consumer and banker education ............................................................................................22
C onsumer co m p la ints and inquiries, 1 9 7 8 and 1 9 7 9 ...................................................... 21
Country Exposure R eport.................................................................................................... 1 5, 25
Credit, bank. See Assets, liabilities, and capital of banks.
Demand deposits. See Assets, liabilities, and capital of banks; Deposits.
Deposit insurance:
Applica tio n s f o r ................................................................................................................ 7-8
History of deposit fund ............................................................................................. 3 4 - 3 5
INDEX
217
Size o f d e p o s i t f u n d ...........................................................................................................................3 5
D e p o s its . See a ls o A ssets, lia b ilitie s , an d c a p ita l o f banks:
B a n k s c l o s e d b e c a u s e o f f i n a n c i a l d i f f i c u l t i e s , 1 9 3 4 - 1 9 7 9 . . . . 1 4 - 1 7. 2 0 3 , 2 0 5
C o m m e rc ia l banks:
By i n s u r a n c e s t a t u s a n d t y p e o f b a n k , a n d t y p e o f a c c o u n t ,
J u n e 3 0 , 1 9 7 9 ............................................................................................................................. 161
By i n s u r a n c e s t a t u s a n d t y p e o f b a n k , a n d t y p e o f a c c o u n t ,
D e c e m b e r 3 1 , 1 9 7 9 ................................................................................................................... 1 6 4
By S t a t e a n d a s s e t size o f b a n k ............................................................................................ 1 5 4
In s u re d c o m m e r c ia l banks:
A v e r a g e d e m a n d a n d t i m e d e p o s i t s , 1 9 7 4 - 1 9 7 9 ..................................................... 1 8 9
D e c e m b e r c a ll d a t e s , 1 9 7 4 - 1 9 7 9 .................................................................................... 1 7 0
Insu re d m u tu a l sa vin g s banks:
A v e r a g e d e m a n d a n d t i m e d e p o s i t s , 1 9 7 4 - 1 9 7 9 ..................................................... 1 9 7
D e c e m b e r c a ll d a t e s , 1 9 7 4 - 1 9 7 9 .................................................................................... 1 7 8
M u t u a l s a v i n g s b a n k s , b y i n s u r a n c e s ta tu s , J u n e 3 0 , 1 9 7 9 , a n d
D e c e m b e r 3 1 , 1 9 7 9 ................................................................................................................... 1 6 8
D e p o s i t s i n s u r e d b y FDIC :
E s t i m a t e d i n s u r e d d e p o s i t s , D e c e m b e r 3 1 , 1 9 3 4 - 1 9 7 9 ........................................ 2 1 2
M a x i m u m p e r d e p o s i t o r , c h a n g e s in ...................................................................................... 3 4
D e p o s its , n u m b e r of in s u re d c o m m e r c ia l ba n ks w ith g ive n ratio s o f d e m a n d to
t o t a l d e p o s i t s ............................................................................................................................................... 1 8 3
D i r e c t o r s o f FDIC . S ee F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a t i o n .
D i s b u r s e m e n t s . See B a n k s in f i n a n c i a l d i f f i c u l t i e s .
D i s i n t e r m e d i a t i o n ........................................................................................................................................... 1 3
D i v i d e d e x a m i n a t i o n p r o g r a m ............................................................................................................ 4, 2 4
D iv id e n d s :
T o d e p o s i t o r s in i n s u r e d m u t u a l s a v i n g s b a n k s . See I n c o m e o f i n s u r e d
m u tu a l s a v in g s banks.
T o s t o c k h o l d e r s o f i n s u r e d c o m m e r c i a l b a n k s . See I n c o m e o f I n s u r e d
c o m m e rc ia l banks.
E a rn in g s o f ba n ks. See In c o m e of in s u re d c o m m e r c ia l b a nks; In c o m e o f in s u re d
m u tu a l s a v in g s banks.
E d g e A c t ............................................................................................................................................................... 2 5
E le c tro n ic data p ro c e s s in g :
E x a m i n a t i o n o f ......................................................................................................................................... 6
I n t e r a g e n c y A D P p o l i c y s t a t e m e n t ............................................................................................... 7
I n t e r a g e n c y e x a m i n a t i o n m a n u a l ...................................................................................................7
T r a i n i n g p r o g r a m f o r e x a m i n e r s .....................................................................................................6
E l e c t r o n i c F u n d s T r a n s f e r A c t ............................................................................................................ 4, 2 9
E m p lo ye es:
A w a r d s ...................................................................................................................................................... 3 4
F D I C .................................................................................................................................................... 3 3 - 3 4
I n s u r e d c o m m e r c i a l b a n k s , n u m b e r a n d c o m p e n s a t i o n , 1 9 7 4 - 1 9 7 9 ............. 1 8 9
In s u re d m u tu a l s a v in g s banks, n u m b e r and c o m p e n s a tio n , 1 9 7 4 - 1 9 7 9 . ... 1 9 7
E q u a l C r e d i t O p p o r t u n i t y A c t ............................................................................................... 4, 6, 1 9 , 2 2
E x a m in a tio n of in s u re d banks:
By F D IC , 1 9 7 9 .................................................................................................................................... 3 - 6
D i v i d e d e x a m i n a t i o n c o n c e p t .......................................................................................................... 4
E x a m i n e r p o s i t i o n s , a p p r o v e d vs f i l l e d ...................................................................................... 6
E x a m i n e r t r a i n i n g ....................................................................................................................................6
S a f e t y a n d s o u n d n e s s e x a m i n a t i o n s ........................................................................................... 4
E x p e n se s o f banks. See In c o m e o f in s u re d c o m m e r c ia l banks; In c o m e o f in s u re d
m u tu a l s a v in g s banks.
E x p e n s e s o f F D I C ......................................................................................................................... 3 5 - 3 6 , 2 1 0
218
FEDERAL DEPOSIT INSURANCE CORPORATION
F a ilu r e s . S ee B a n k s in f i n a n c i a l d i f f i c u l t i e s .
Fair C r e d i t R e p o r t i n g A c t ................................................................................................................................ 4
Fair D e b t C o l l e c t i o n P r a c t i c e s A c t ............................................................................................................4
Fair H o u s i n g L e n d i n g .........................................................................................................................4, 6, 1 9
F a r m e r s S t a t e B a n k , P r o t e c t i o n , K a n s a s ........................................................................................... 17
F e d e r a l B a n k i n g A g e n c y A u d i t A c t ........................................................................................................ 3 7
F e d e r a l D e p o s i t I n s u r a n c e A c t .................................................................. 5 , 8 , 1 0 , 1 2 , 2 6 , 2 8 , 31
Federal D e p o s it In s u ra n c e C o r p o r a tio n :
A c t i o n s o n a p p l i c a t i o n s ................................................................................................................. 7 - 8
A s s e s s m e n t s o n i n s u r e d b a n k s ............................................................................... 3 5 - 3 6 , 2 1 0
A u d i t .................................................................................................................................................... 3 6 - 3 7
B a n k s e x a m i n e d b y a n d s u b m i t t i n g r e p o r t s t o ................................................................ 3 - 6
B o r r o w i n g p o w e r ................................................................................................................................ 3 5
C a p i t a l S t o c k ...................................................................................................................................... 2 1 0
C o m p a r a t i v e P e r f o r m a n c e R e p o r t ............................................................................................. 3 0
C o m p u t e r i z e d a n a l y s i s c a p a b i l i t i e s ..........................................................................................3 0
C o n s u m e r a n d c iv i l r i g h t s p r o t e c t i o n ......................................................................... 5, 1 9 - 2 1
C o v e r a g e o f d e p o s i t i n s u r a n c e ...................................................................................... 3, 3 4 - 3 5
D e p o s it in s u ra n c e d is b u rs e m e n ts
..........................4 3 , 2 0 4 - 2 0 9 , 21 1
D e p o s i t i n s u r a n c e f u n d ( s u r p l u s ) ..................................................... 3 5 , 3 8 - 4 1 , 2 1 0 , 2 1 2
D i r e c t o r s , ( m e m b e r s o f t h e B o a r d ) ............................................................................... iii, 7, 3 2
D i r e c t o r y o f key p e r s o n n e l ..............................................................................................................vii
D i v i s i o n s .................................................................................................................................................. 3 3
E m p l o y e e s ...............................................................................................................................................3 3
E n f o r c e m e n t a c t i v i t i e s ........................................................................................... 1 0 - 1 2 , 4 9 - 6 0
E q u a l E m p l o y m e n t O p p o r t u n i t y P r o g r a m .............................................................................3 3
E x a m i n a t i o n o f b a n k s ..................................................................................................................... 4 - 6
F in a n c i a l s t a t e m e n t s , 1 9 7 9 ...................................................................................................3 8 - 4 4
I n c o m e a n d e x p e n s e s , 1 9 3 3 - 1 9 7 9 ...................................................................................... 2 1 0
I n s u r e d b a n k s r e q u i r i n g d i s b u r s e m e n t s by. See B a n k s in f i n a n c i a l d i f f i c u l t i e s .
I n t e g r a t e d M o n i t o r i n g S y s t e m ( I M S ) ........................................................................................3 0
L i q u i d a t i o n a c t i v i t i e s ........................................................................................................ 1 6 - 1 7 , 19
L o a n s to , a n d p u r c h a s e o f a s s e t s f r o m , i n s u r e d b a n k s ............. 1 5 - 1 6 , 3 8 , 4 1 , 4 2
L o s s e s i n c u r r e d , 1 9 3 4 - 1 9 7 9 ........................................................................................... 15, 2 0 8
M e t h o d s o f p r o t e c t i n g d e p o s i t o r s .................................................................................... 1 4 - 1 9
O f f i c e o f C o r p o r a t e A u d i t s ............................................................................................................3 2
O f f i c i a l s ...................................................................................................................................... iii, vii, 3 2
O r g a n i z a t i o n ...............................................................................................................................................vi
P a y m e n t s t o i n s u r e d d e p o s i t o r s ..................................................... 1 4 - 1 5 , 2 0 5 , 2 0 9 , 2 1 2
P r o b l e m b a n k s .............................................................................................................................. 1 2 - 1 4
R e c e iv e r, FDIC a s .........................................................................................................................1 5 - 1 6
R e c o v e r i e s ........................................................................................................................... 1 8 - 1 9 , 2 0 8
R e g i o n s .................................................................................................................................................... viii
R e g u l a t i o n o f i n t e r e s t r a t e s ................................................................................................... 2 2 - 2 4
R e p o r t s f r o m b a n k s .......................................................................................................................... 2 6
R e p o r t s o f c h a n g e in b a n k c o n t r o l ..........................................................................................8 - 9
R e s e rv e f o r l o s s e s o n a s s e ts a c q u i r e d .................................................................. 3 0 , 3 8 , 4 0
R u le s a n d r e g u l a t i o n s ........................................................................................................ 1 3 1 - 1 3 4
S o u r c e a n d a p p l i c a t i o n o f f u n d s ............................................................................................... 41
S u p e r v i s o r y r e s p o n s i b i l i t y ............................................................................................................ 3 - 6
F e d e ra l F in a n c i a l I n s t i t u t i o n s E x a m i n a t i o n C o u n c i l ( F F I E C ) ............................... 6, 9, 2 4 - 2 6
F e d e r a l H o m e L o a n B a n k B o a r d ........................................................................................................ 9, 2 0
F e d e r a l l e g i s l a t i o n , 1 9 7 9 ......................................................................................................................... 1 31
F e d e r a l R e s e rv e a u t h o r i t i e s ........................................................................... 3, 4 , 9, 1 0 , 1 4 , 2 5 , 2 6
F e d e r a l R e s e rv e m e m b e r b a n k s . S e e C la s s o f b a n k , b a n k i n g d a t a p r e s e n t e d by.
INDEX
219
F id e l i t y B a n k , U t i c a , M i s s i s s i p p i .............................................................................................................. 17
F i n a n c i a l I n s t i t u t i o n s R e g u l a t o r y a n d I n t e r e s t Rate C o n t r o l
A c t o f 1 9 7 8 (FIRIRCA ) ................................................................................................... 8, 9, 2 4 , 2 6 , 2 9
G a t e w a y N a t i o n a l B a n k o f C h i c a g o ...................................................................................................... 1 7
G e n e r a l A c c o u n t i n g O f f i c e ......................................................................................................................... 3 6
G u a r a n t y B a n k a n d T r u s t Co., C h i c a g o , III ........................................................................................ 17
H o m e M o r t g a g e D i s c l o s u r e A c t o f 1 9 7 5 .................................................................................... 4, 2 0
I n c o m e o f F D I C ............................................................................................................................. 3 5 - 3 7 , 2 1 0
In c o m e o f in s u re d c o m m e r c ia l banks:
A m o u n ts of p rin c ip a l c o m p o n e n ts :
A n n u a l l y , 1 9 7 4 - 1 9 7 9 ................................................................................................................ 1 8 9
By c la s s o f b a n k , 1 9 7 9 .............................................................................................................. 1 9 2
By size o f b a n k , 1 9 7 9 ................................................................................................................ 1 9 4
M e t h o d s o f t a b u l a t i n g d a t a ..................................................................................................... 1 8 6
R a tio s o f i n c o m e it e m s :
A n n u a l l y , 1 9 7 4 - 1 9 7 9 ................................................................................................................ 1 9 1
By size o f b a n k , 1 9 7 9 ................................................................................................................ 1 9 4
S o u r c e s o f d a t a ............................................................................................................................. 1 8 7
In c o m e o f in s u re d m u tu a l sa v in g s banks:
A m o u n t s o f p r i n c i p a l c o m p o n e n t s , 1 9 7 4 - 1 9 7 9 ........................................................... 1 9 7
R a tio s o f i n c o m e a n d e x p e n s e it e m s , 1 9 7 4 - 1 9 7 9 ..................................................... 1 9 9
S o u r c e s o f d a t a ................................................................................................................................ 1 8 7
I n d i v i d u a l R e t i r e m e n t A c c o u n t s ..............................................................................................................3 4
I n s o l v e n t b a n k s . S ee B a n k s in f i n a n c i a l d i f f i c u l t i e s .
I n s u r e d b a n k s . S e e A s s e t s , l i a b i l i t i e s a n d c a p i t a l o f b a n k s ; B a n k s in f i n a n c i a l
d iffic u ltie s ; D e p o s its ; In c o m e o f in s u re d c o m m e r c ia l banks; In c o m e of in s u re d
m u tu a l s a v in g s banks; N u m b e r of b a n ks and b ra n c h e s .
I n s u r e d c o m m e r c i a l b a n k s n o t m e m b e r s o f t h e F e d e r a l R e s e rv e S y s t e m .
S ee C la s s o f b a n k ; b a n k i n g d a t a p r e s e n t e d by.
I n s u r e d d e p o s i t s . S e e B a n k s in f i n a n c i a l d i f f i c u l t i e s ; FDIC, c o v e r a g e o f d e p o s i t
in s u ra n c e .
I n s u r e d S t a t e b a n k s m e m b e r s o f t h e F e d e r a l R e s e rv e S y s t e m .
S e e C la s s o f b a n k , b a n k i n g d a t a p r e s e n t e d by.
I n t e r a g e n c y s u p e r v i s i o n ................................................................................................................ 3, 4, 6, 9
I n t e r e s t r a te s ;
I n c r e a s e d i n t e r e s t e x p e n s e ( g e n e r a l ) ...................................................................................... 22
F ed e ra l f u n d ra te s ............................................................................................................................ 22
Paid o n m a r k e t s e c u r i t i e s ................................................................................................................ 22
Paid o n m o n e y m a r k e t c e r t i f i c a t e s ........................................................................................... 23
Paid o n t r e a s u r y b i l l s ......................................................................................................................... 22
Paid o n d e p o s i t s ................................................................................................................... 191, 2 0 3
I n t e r n a t i o n a l b a n k i n g .................................................................................................................. 22, 24, 25
I n t e r n a t i o n a l B a n k i n g A c t o f 1 9 7 8 .................................................................................. 24, 26
I n v e s t m e n t s . See A s s e t s , lia b il i t i e s , a n d c a p i t a l o f b a n k s ; A s s e t s a n d l i a b il i t i e s o f
FDIC ; B a n k s in f i n a n c i a l d i f f i c u l t i e s .
K e o g h r e t i r e m e n t p l a n s .............................................................................................................................. 34
L e g a l D i v i s i o n a c t i v i t ie s :
E v a l u a t i o n o f o u t s i d e a t t o r n e y s ........................................................................................................ 28
G u i d e l i n e s f o r s e l e c t i n g o u t s i d e c o u n s e l .................................................................................. 28
L e g i s l a t i o n r e l a t i n g t o d e p o s i t i n s u r a n c e a n d b a n k i n g , F e d e ra l,
e n a c t e d in 1 9 7 9 ................................................................................................................... 131
L i q u i d a t i o n a c t i v i t ie s :
I n t e g r a t e d L i q u i d a t i o n A c c o u n t i n g S y s t e m ................................................................................. 19
R e c o v e r i e s t h r o u g h l i q u i d a t i o n ................................................................................................. 1 6 -17
L i v i n g s t o n S ta te B a n k , L i v i n g s t o n , N. J ............................................................................................... 17
220
FEDERAL DEPOSIT INSURANCE CORPORATION
L o a ns. See A s se ts, l ia b ilit ie s , a n d c a p i t a l o f b a n k s ; B a n k s in f i n a n c i a l
d iffic u ltie s .
L o ss e s :
Of banks. See In c o m e of in s u re d c o m m e r c ia l banks; In c o m e of in s u re d
m u tu a l s a v in g s banks.
O f F D I C ................................................................................................................ 1 5, 3 9 , 2 0 8 , 2 0 9 , 2 1 0
O n l o a n s , r e s e r v e s f o r . Se e V a l u a t i o n r e s e r v e s .
P r o v i s i o n f o r , i n s u r e d b a n k s ............................................................ 1 8 9 - 1 9 1 , 1 9 4 , 1 9 6 - 2 0 1
M e rg e rs . See A b s o r p tio n s .
M i n o r i t y B a n k D e v e l o p m e n t P r o g r a m ................................................................................................. 2 2
M o n e y m a r k e t c e r t i f i c a t e s o f d e p o s i t ..........................................................................................2 2 - 2 3
M u n i c i p a l S e c u r i t i e s R u le s M a k i n g B o a r d ( M S R B ) ....................................................................2 7
M u t u a l s a v i n g s b a n k s . Se e A s s e t s , l i a b i l i t i e s a n d c a p i t a l o f b a n k s ;
D e p o s its ; In c o m e of in s u re d banks; N u m b e r of b a n ks and b ra n c h e s .
N a t i o n a l b a n k s . Se e C la s s o f b a n k , b a n k i n g d a t a p r e s e n t e d by.
N a t i o n a l b a n k s a d d e d t o FD IC s y s t e m o f p r o c e s s i n g r e p o r t s
o f c o n d i t i o n .................................................................................................................................................. 3 0
N a t i o n a l C r e d i t U n i o n A d m i n i s t r a t i o n .....................................................................................................9
N e g o t i a b l e O r d e r o f W i t h d r a w a l ( N O W ) A c c o u n t s ............................................................. 2 2 , 2 9
N e w b a n k s , 1 9 7 9 ............................................................................................................................. 1 4 0 - 1 4 3
N o n in s u r e d banks. See A b s o r p tio n s ; A d m is s io n o f b a n k s to in s u ra n c e ;
A s se ts , l i a b il i t i e s a n d c a p i t a l o f b a n k s ; B a n k s in f i n a n c i a l d i f f i c u l t i e s ; C l a s s i f i c a
t i o n o f b a n k s ; C l a s s o f b a n k , b a n k i n g d a t a p r e s e n t e d by; D e p o s i t s ; N u m b e r o f
b anks and b ra n c h e s ; R ep orts fr o m banks.
N u m b e r of ba nks and b ra n c h e s :
Banks:
By i n s u r a n c e s t a t u s a n d t y p e o f b a n k , J u n e 3 0 , 1 9 7 9 a n d
D e c e m b e r 3 1 . 1 9 7 9 ........................................................................................ 1 6 1 , 1 6 4 , 1 6 8
By i n s u r a n c e s t a t u s , t y p e o f b a n k , n u m b e r o f b r a n c h e s a n d
S ta te , D e c e m b e r 3 1 . 1 9 7 9 ................................................................................................. 1 4 4
By S t a t e a n d a s s e t size o f b a n k ............................................................................................ 1 5 4
By s u p e r v i s o r y s t a t u s a n d a s s e t s i z e ................................................................................. 1 5 3
C h a n g e s d u r i n g 1 9 7 9 ................................................................................................... 1 4 0 , 1 4 2
Branches:
By i n s u r a n c e s t a t u s a n d t y p e o f b a n k , D e c e m b e r 3 1 , 1 9 7 9 ............................. 1 4 0
By i n s u r a n c e s t a t u s , t y p e o f b a n k a n d S ta te , D e c e m b e r 3 1 , 1 9 7 9 ............. 1 4 4
C h a n g e s d u r i n g 1 9 7 9 ................................................................................................. 1 4 0 , 1 4 2
Insured c o m m e r c ia l banks:
D e c e m b e r c a l l d a t e s , 1 9 7 4 - 1 9 7 9 .................................................................................... 1 7 0
D is trib u te d by c a p ita l, ratio s and d is trib u tio n of assets and
d e p o s i t s , D e c e m b e r 3 1 . 1 9 7 9 .......................................................................................... 1 8 3
In s u re d m u tu a l s a vin g s banks:
D e c e m b e r c a ll d a t e s , 1 9 7 4 - 1 9 7 9 .................................................................................... 1 7 8
N o n i n s u r e d b a n k s b y S t a te , D e c e m b e r 3 1 , 1 9 7 9 ................................................... 1 4 4
U n i t b a n k s , b y i n s u r a n c e s t a t u s a n d S t a te . D e c e m b e r 3 1 . 1 9 7 9 .................... 1 4 4
O b l i g a t i o n s o f b a n k s . S ee A s s e t s , l i a b i l i t i e s , a n d c a p i t a l o f b a n k s .
O f f i c e o f C o n s u m e r A f f a i r s a n d C iv il R i g h t s .............................................................. 5, 1 9 . 2 1 - 2 2
O f f i c i a l s o f F D I C ................................................................................................................................................. m
O p e r a t i n g b a n k s . S ee N u m b e r o f b a n k s a n d b r a n c h e s .
O p p o r t u n i t y F u n d i n g C o r p o r a t i o n ........................................................................................................ 2 2
P a y m e n t s t o d e p o s i t o r s in c l o s e d i n s u r e d b a n k s . S e e B a n k s in f i n a n c i a l
d iffic u ltie s .
P e r s o n n e l . S ee E m p l o y e e s .
P o s s e s s i o n s , b a n k s a n d b r a n c h e s l o c a t e d in. S e e A r e a s o u t s i d e c o n t i n e n t a l
U n i t e d S ta te s , b a n k s a n d b r a n c h e s l o c a t e d in.
INDEX
221
P r o b l e m b a n k s ........................................................................................................................................... 1 2 - 1 4
P r o t e c t i o n o f d e p o s i t o r s . S ee B a n k s in f i n a n c i a l d i f f i c u l t i e s ; D e p o s i t i n s u r a n c e
co ve ra g e.
R e c e i v e r s h i p , i n s u r e d b a n k s p l a c e d in. Se e B a n k s in f i n a n c i a l d i f f i c u l t i e s .
R eco ve rie s;
By b a n k s o n a s s e t s c h a r g e d o f f . S e e I n c o m e o f i n s u r e d c o m m e r c i a l b a n k s ;
in c o m e of in s u re d m u tu a l sa v in g s banks.
By FDIC o n d i s b u r s e m e n t s . See B a n k s in f i n a n c i a l d i f f i c u l t i e s .
R e g i o n s , F D I C .................................................................................................................................................... vm
R e m o v a l p r o c e e d i n g s .................................................................................................................................... 1 2
R e p o r t s f r o m b a n k s ....................................................................................................................................... 2 4
R e p o rts an d su rveys:
D e v e l o p m e n t o f ....................................................................................................................................2 4
D i s c l o s u r e o f l o a n s t o b a n k o f f i c e r s a n d s t o c k h o l d e r s ................................................. 2 6
M o n ito r in g m o n e y m arke t c e rtific a te s and a u to m a tic
t r a n s f e r s ...............................................................................................................................................2 6
N ew rep o rt fo rm fo r c o n d itio n and in c o m e
....................................................................... 2 6
R e s e a r c h a c t i v i t ie s ......................................................................................................................................... 2 9
R e s e rv e s :
O f FD IC , f o r lo s s e s o n a s s e ts a c q u i r e d .................................................................................. 3 8
O f i n s u r e d b a n k s f o r lo s s e s o n a s s e ts . S ee V a l u a t i o n re s e r v e s .
W i t h F e d e ra l R e s e rv e B a n k s . See A s s e ts , l i a b il i t i e s a n d c a p i t a l
of banks.
R i g h t t o F in a n c i a l P r iv a c y A c t o f 1 9 7 8 ............................................................................................... 21
R u le s a n d r e g u l a t i o n s o f t h e FDIC. See F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a t i o n .
R u le s a n d r e g u l a t i o n s , 1 9 7 9 :
C h a n g e in b a n k c o n t r o l ............................................................................................................... 131
C o r r e s p o n d e n t a c c o u n t s a n d d i s c l o s u r e o f m a t e r i a l f a c t s ..................................... 1 3 3
D i s c l o s u r e o f t r u s t a s s e t r e p o r t s ........................................................................................... 131
F o r e i g n a c t i v i t i e s o f i n s u r e d S ta te n o n m e m b e r b a n k s .............................................. 1 3 3
I n t e r e s t ra te r e g u l a t i o n s .............................................................................................................. 131
I n t e r n a t i o n a l B a n k i n g A c t .......................................................................................................... 1 3 3
Lim its on lo a n s to e x e c u tiv e o ffic e rs , d ire c to rs and p rin c ip a l
s h a r e h o l d e r s .................................................................................................................................. 1 3 4
M a n a g e m e n t o f f i c i a l i n t e r l o c k s ............................................................................................... 1 3 3
P r o p o s a l s t o s i m p l i f y FD IC r u le s a n d r e g u l a t i o n s ......................................................... 1 3 4
R e c o r d k e e p i n g f o r s e c u r i t y t r a n s a c t i o n s ........................................................................... 1 3 2
S a f e t y a n d s o u n d n e s s e x a m i n a t i o n s ........................................................................................................ 4
S a la r ie s a n d w a g e s o f i n s u r e d b a n k s . See I n c o m e o f i n s u r e d c o m m e r c i a l
banks; In c o m e of in s u re d m u tu a l sa v in g s banks.
S e c u r i t ie s . See A s s e ts , lia b il i t i e s , a n d c a p i t a l o f b a n k s ; A s s e t s a n d l i a b il i t i e s o f
FDIC; B a n k s in f i n a n c i a l d i f f i c u l t i e s .
S e c u r i t i e s a c t i v i t ie s :
L o s t a n d s t o l e n s e c u r i t i e s ..............................................................................................................2 7
M u n i c i p a l s e c u r i t i e s , d e a l e r a c t i v i t y ........................................................................................2 7
O f f e r i n g c i r c u l a r p o l i c y s t a t e m e n t ........................................................................................... 2 8
R e g i s t r a t i o n a n d r e p o r t i n g ............................................................................................................2 7
S e c u r i t i e s a n d E x c h a n g e C o m m i s s i o n ............................................................................................... 2 7
S e c u r i t ie s , b a n k r e g u l a t i o n o f ..........................................................................................................2 7 - 2 8
S e c u r i t i e s E x c h a n g e A c t o f 1 9 3 4 .................................................................................................... 6, 2 7
S e c u r i t i e s I n f o r m a t i o n C e n t e r , I n c ......................................................................................................... 2 7
Size o f b a n k , d a t a f o r b a n k s c l a s s i f i e d b y a m o u n t o f a s s e ts :
A s s e t s a n d l i a b il i t i e s , p e r c e n t a g e s of, i n s u r e d b a n k s , 1 9 7 9 ................................. 1 8 0
B a n k s r e q u i r i n g d i s b u r s e m e n t s b y FDIC ( d e p o s i t size) 1 9 3 4 - 1 9 7 9 ................ 2 0 5
I n c o m e o f i n s u r e d c o m m e r c i a l b a n k s , 1 9 7 9 .................................................................. 1 9 3
222
FEDERAL DEPOSIT INSURANCE CORPORATION
I n c o m e r a t i o s o f i n s u r e d c o m m e r c i a l b a n k s , 1 9 7 9 ................................................... 1 9 6
N u m b e r , a s s e ts , a n d d e p o s i t s o f all b a n k s ....................................................................... 1 5 3
N u m b e r , a s s e ts , a n d d e p o s i t s o f all c o m m e r c i a l b a n k s , b y S t a t e ........................ 1 5 4
N u m b e r o f e m p l o y e e s o f i n s u r e d c o m m e r c i a l b a n k s , 1 9 7 9 ................................. 1 9 4
N u m b e r o f i n s u r e d c o m m e r c i a l b a n k s , g r o u p e d by r a t io s o f s e l e c t e d
i t e m s t o a s s e ts a n d d e p o s i t s , D e c e m b e r 3 1 , 1 9 7 9 ............................................... 1 8 3
S m a ll s a v e rs :
I n t e r e s t ra te c h a n g e r e g u l a t i o n s ...............................................................................................2 3
T w o a n d o n e - h a l f y e a r c e r t i f i c a t e s ........................................................................................... 2 3
S o u t h e r n N a t i o n a l B ank, B i r m i n g h a m , A l a b a m a ........................................................................... 17
S p e c i a l s e rv ic e s :
O f f i c e of:
C o n t r o l l e r ...........................................................................................................................................3 2
C o r p o r a t e A u d i t s ............................................................................................................................ 3 2
E x e c u t i v e S e c r e t a r y .......................................................................................................................3 2
I n f o r m a t i o n ....................................................................................................................................... 31
L e g i s la t i v e A f f a i r s .......................................................................................................................... 31
S ta te , b a n k i n g d a ta c l a s s i f i e d by:
C h a n g e s in c o m m e r c i a l b a n k s a n d b r a n c h e s , 1 9 7 9 ................................................. 1 4 2
D i s b u r s e m e n t s , d e p o s i t s , a n d d e p o s i t o r s in i n s u r e d b a n k s r e q u i r i n g
d i s b u r s e m e n t s by FDIC, 1 9 3 4 - 1 9 7 9 ............................................................................. 2 0 5
N u m b e r , a s s e ts a n d d e p o s i t s o f c o m m e r c i a l b a n k s , by a s s e t size of
b a n k .................................................................................................................................................... 1 5 4
N u m b e r o f b a n k s a n d b r a n c h e s , by c la s s o f b a n k a n d t y p e o f o f f i c e ,
D e c e m b e r 3 1 . 1 9 7 9 ................................................................................................................. 1 4 4
P e r c e n t a g e o f b a n k s i n s u r e d , D e c e m b e r 3 1 , 1 9 7 9 ................................................... 1 4 4
S ta te b a n k s . See C la s s o f b a n k , b a n k i n g d a ta p r e s e n t e d by.
S t o c k h o ld e r s of b a n k s , net p r o f it s a v a ila b le fo r. See I n c o m e of in s u re d
c o m m e rc ia l banks.
S u p e rv is io n :
D e v e l o p m e n t o f u n i f o r m p o l i c i e s .................................................................................................9
F e d e ra l F in a n c i a l I n s t i t u t i o n s E x a m i n a t i o n C o u n c i l .......................................................... 9
I n t e r a g e n c y C o o r d i n a t i n g C o m m i t t e e ........................................................................................9
U n i f o r m a g r e e m e n t o n c l a s s i f i c a t i o n o f a s s e ts a n d a p p r a i s a l of
s e c u r i t i e s ............................................................................................................................................. 10
U n i f o r m m o n i t o r i n g o f f u t u r e s c o n t r a c t s ............................................................................... 1 0
U n i f o r m r a t i n g s y s t e m f o r e x a m i n a t i o n s .................................................................................. 9
R e s p o n s i b i l i t i e s u n d e r I n t e r n a t i o n a l B a n k i n g A c t ............................................................ 2 4
S u p e r v i s i o n o f b a n k h o l d i n g c o m p a n i e s ............................................................................................... 4
S u p e r v i s i o n o f b a n k s b y FDIC ................................................................................................................3 - 7
S u p e r v i s o r y c la s s , b a n k s g r o u p e d by:
A s s e t s a n d l i a b il i t i e s of, J u n e 3 0 , 1 9 7 9 a n d D e c e m b e r 3 1 , 1 9 7 9 .................... 1 61
C h a n g e s in n u m b e r of, 1 9 7 9 ................................................................................................... 1 4 0
N u m b e r o f b a n k s a n d s i z e .......................................................................................................... 1 5 3
I n c o m e o f i n s u r e d c o m m e r c i a l b a n k s ................................................................................ 1 9 2
N u m b e r o f b a n k i n g o f f i c e s , b y S ta te , D e c e m b e r 3 1 , 1 9 7 9 ................................... 1 4 4
S u s p e n s i o n p r o c e e d i n g s ............................................................................................................................ 12
T a x e s p a i d b y i n s u r e d b a n k s . S ee i n c o m e o f i n s u r e d c o m m e r c i a l b a n k s ;
In c o m e of in s u re d m u tu a l sa v in g s banks.
T e l e p h o n e t r a n s f e r s e r v i c e s .......................................................................................................................2 9
T e r m i n a t i o n s o f i n s u r a n c e f o r u n s a f e a n d u n s o u n d p r a c t i c e s ...................... 1 1 - 1 2 , 4 9 - 6 0
T o n e y B r o t h e r s Ba n k, D o e r u n , G e o r g i a .......................................................................................... 2 0 4
T r u s t a c t i v i t i e s o f b a n k s , e x a m i n a t i o n o f ............................................................................................... 6
T r u s t a s s e t s o f i n s u r e d c o m m e r c i a l b a n k s , s u r v e y o f ....................................................................6
INDEX
223
Trust departments:
Assets managed ...............................................................................................................................6
E x a m i n a t i o n s ......................................................................................................................................6
New depart ments in 1 9 7 9 ..........................................................................................................6
Numbe r su pe rv is ed ......................................................................................................................... 6
Overseas trust activities, survey o f .......................................................................................... 6
Reports r e q u i r e d ...............................................................................................................................6
Trust assets of insured comme rcial banks, survey of ....................................................6
Truth in Lending Act ............................................................................................................. 4-5 2 0 - 2 2
Uniform Interagency Supervision. See Interagency supervision.
Unit banks, by insurance status and State, December 31, 1 9 7 9 ................................... 144
Valu atio n reserves. See also Assets, liabilities, and capital of banks:
A m o u n ts held, June 30, 1 9 7 9 and December 31, 1 9 7 9 ...................................161, 164
A m o u n ts held, December call dates, 1 9 7 4 - 1 9 7 9 ........................................................... 170
Village Bank, Pueblo West, C o l o r a d o .............................................................................................. 1 7
W h it e Collar C r i m e .................................................................................................................................. 2 7
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