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1982
Annual
Report
Federal
Deposit
Insurance
Corporation

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Letter of
Transmittal

Federal Deposit Insurance Corporation
W ashington, D.C.
June 1,1983

SIRS: In accordance with the provisions of Section 17(a) of the
Federal Deposit Insurance Act, the Federal Deposit Insurance
C orporation is pleased to subm it its Annual Report fo r the calendar
year 1982.

William M. Isaac
Chairm an

The President of the Senate
The Speaker of the House of Representatives




iii

Board of
Directors

T h e F D 1 C B o a rd o f D ire c to rs
( fro m left): D ir e c to r Irv in e H.
S p r a g u e , C h a ir m a n W illia m M
Isa a c , a n d C o m p tr o lle r o f th e
C u r r e n c y C . T . C o n o v e r.




Federal Deposit
Insurance Corporation




FDIC
Officials

Deputy to the Chairman (Administration)

Jack E. Edgington

Deputy to the Chairman (Public Affairs)

Margaret L. Egginton

Assistant to the Deputy to the Chairman (Administration)
Deputy to the Director

Edward T. Lutz
John R. Curtis

Special Assistant to the Director

Kenneth Fulton

Assistant to the Director (Comptroller of the Currency)

Alan Herlands

Special Assistant to the Director (Comptroller of the Currency)
Director, Division of Bank Supervision

Laura L. McAuliffe
James L. Sexton

General Counsel

Thomas Brooks

Director, Division of Liquidation

James A. Davis

Director, Division of Accounting and Corporate Services

Robert V. Shumway

Director, Division of Research and Strategic Planning

Stanley C. Silverberg

Executive Secretary
Director, Office of Congressional Relations and Public Information

Hoyle L. Robinson
Graham T. Northup

Special Assistant for Public Information

Alan J. Whitney

Director, Office of Corporate Audits

Robert D. Hoffman

Director, Office of Personnel Management

Jack C. Pleasant

Director, Office of Equal Employment Opportunity

Joe S. Arnold




vi

Regions and
Directors

ATLANTA

DALLAS

MINNEAPOLIS

Edwin B. Burr
233 Peachtree Street, N.E.,
Suite 2400
Atlanta, Georgia 30043

Roy E. Jackson
350 North St. Paul Street,
Suite 2000
Dallas, Texas 75201

Billy C. Mullican
730 Second Avenue South,
Suite 266
Minneapolis, Minnesota 55402

BOSTON

KANSAS

NEW YORK

Anthony S. Scalzi
60 State Street,
17th Floor
Boston, Massachusetts 02109

Joseph V. Prohaska
2345 Grand Avenue, Suite 1500
Kansas City, Missouri 64108

Bernard J. McKeon
345 Park Avenue, 21st Floor
New York, New York 10154

MADISON

OMAHA

CHICAGO

Paul G. Fritts
233 S. Wacker Drive, Suite 6116
Chicago, Illinois 60606

James E. Halvorson
1 South Pinckney Street,
Room 813
Madison, Wisconsin 53703

Charles E. Thacker
1700 Farnam Street,
Suite 1200
Omaha, Nebraska 68102

COLUMBUS

MEMPHIS

PHILADELPHIA

Sandra A. Waldrop
1 Nationwide Plaza, Suite 2600
Columbus, Ohio 43215

A. David Meadows
1 Commerce Square, Suite 1800
Memphis, Tennessee 38103

Robert A. Dorbad
1900 Market Street, Suite 616
Philadelphia, Pennsylvania 19103




SAN FRANCISCO

Charles E. Doster
25 Ecker Street, Suite 2300
San Francisco, California 94105

vii

Table of
Contents

FDIC Board of Directors_____________________________ iii
FDIC Organization Chart_____________________________ iv
FDIC Officials_______________________________________ v
FDIC Regions and Directors__________________________

vi

Chairman’s Statem ent________________________________ viii
Operations of the Corporation________________________

2

Financial Statem ents_________________________________ 12
Legislation and Regulations___________________________ 26
Legislation - 1982___________________________________ 26
Regulations - 1982 __________________________________27

Statistics of Closed Banks and Deposit Insurance________ 30
Banks Closed Because of Financial Difficulties, FDIC Income,
Disbursements, and Losses

Index________________________________________________ 43




viii

Chairman’s
Statement
The past year, 1982, was a signal
year for the FDIC in many ways,
and it may one day be viewed as
a year whose events gave impetus
to important changes in banking,
bank regulation and deposit
insurance.
Forty-two banks failed, creating
greater challenges for the deposit
insurance system than in any
year since the Depression. Those
failures included the largest
deposit payoff in FDIC history,
the first financially assisted
mergers of mutual savings banks
into commercial banks, and the
granting of financial assistance to
facilitate “open bank” mergers.
The stability and soundness of
the banking system were
maintained by the administration
of a strong insurance fund and
the orderly protection of
depositors in each insolvency.
Public confidence in the safety of
bank deposits continued at a high
level.

Another internal change calls for
upgraded training for examiners
to include teaching the new
techniques and analytical skills
that will be required to keep pace
with banking in a deregulated
environment. The Liquidation
Division has in the past primarily
utilized on-the-job training, but it
is now implementing a more
structured program.
Building on organizational
changes begun in 1981, we have
established a regional office
system in the Division of
Liquidation similar to the system
in the Division of Bank
Supervision. This structure will
strengthen our management
controls and lower our costs.
We are also engaged in a farreaching effort to employ the
latest technologies to permit the
most efficient and effective use of
our personnel. We have created
an internal task force to study our
word processing, data processing
and telecommunications systems
and develop a five-year plan for

Despite the large expenses
associated with so many failures,
the deposit insurance fund grew
to a new year-end high of $13.8
billion. In addition, the
Corporation was able to hold its
administrative expenses to an
increase of only 2.2 percent over
1981, a rate of increase well
below both the rate of inflation
and the increased cost of the
federal government as a whole.
In internal programs, the FDIC is
improving several areas of its
operations. We have instituted a
team approach to management
and have implemented a formal
planning process. Our
management approach is
designed to foster more open
communications and to focus
attention on long-range
objectives.



F D I C C h a irm a n
W illia m M . Isaac

upgrading them. Outside experts
are assisting in this project.
The Corporation is moving on a
number of external fronts to help
the banks it supervises cope with
deregulation, volatile interest
rates and increased competitive
pressures. Regulatory reform and
simplification is of great concern,
and we have been reviewing
every regulation under which we
operate to determine whether any
can be eliminated or simplified.
This has resulted in the
elimination of several regulations
and the simplification of others.
Another part of this reform effort
involves our applications
procedures. We have
substantially shortened all of our
application forms, and
encouraged the states to join us
in adopting common forms. In
addition, we have delegated to
our regional offices substantial
additional authority to approve
various applications.
In the examination area, we are
faced with two challenges. In a

ix

deregulated, rapidly changing
environment, the traditional on­
site examination once every 18
months is no longer sufficient.
Moreover, our personnel
resources are focused
disproportionately on the smaller
banks where our exposure is
limited. We are addressing these
problems in several ways. The
divided examination program has
permitted us to space out our
examinations of smaller, non­
problem banks. New Call Report
information will permit us to
improve our off-site monitoring.
Directed-scope examinations will
be used more extensively. We
believe these measures will result
in more effective supervision,
save millions of dollars annually,
and reduce the overall burden on
the banks we regulate.
In the second half of 1982, the
logjam was finally broken on
deregulation of deposit interest
rate ceilings. By the end of 1983,
the ceilings are expected to be
gone.
We are enthusiastic about
deregulation of the banking
industry. We believe it has the
potential to bring enormous
benefits to the American public
through more and better financial
services at competitive prices,
while strengthening the banking
system.
The problem is that deregulation
of banks and thrifts on the liability
side is outpacing deregulation of
their investment and service
powers. We have urged Congress
to remedy this inequitable and
dangerous situation by overriding
unreasonable state usury laws
and broadening the powers of
banks and thrifts to engage in
financial activities such as
securities, insurance, real estate,
travel agency and data
processing services.




Moreover, major reforms in our
systems of regulation and deposit
insurance are urgently needed.
The FDIC’s report to Congress
entitled “ Deposit Insurance in a
Changing Environment” proposes
a number of measures to promote
marketplace discipline and reform
a regulatory system that is
increasingly inefficient,
inequitable and ineffective.
For discipline to exist, there must
be risk of loss. Although
insurance coverage is limited to
$100,000, in practice we have for
years been providing implicit 100
percent protection for depositors
and other creditors at most
banks, particularly the larger
ones. This resulted from our
preference for handling bank
failures through mergers. This
approach is usually less
expensive and less disruptive
than paying the claims of insured
depositors; however, the side
effect has been to erode
marketplace discipline and
provide larger banks a substantial
competitive advantage.
Discipline can be restored by
exposing the largest creditors to
some risk of loss. One way this
could be done would be to
provide 100 percent coverage for
the first $100,000 in deposits and
a smaller percentage — perhaps
75 percent — for all deposits over
$100,000. This revised coverage
would apply whether we paid off
depositors or arranged a merger.
Customers would have a strong
incentive to select the soundest
institutions, not just the largest
ones or the ones paying the
highest interest rates.
The FDIC report also
recommends that the regulatory
functions of the FDIC, the Federal
Home Loan Bank Board, the
Federal Reserve Board, and the
Comptroller of the Currency be

consolidated into an independent
agency headed by a board. That
agency would license and
regulate all federally chartered
banks and S&Ls and their holding
companies. State-chartered
institutions would be licensed and
regulated by their respective state
authorities, preserving our dual
banking system.
The FDIC’s insurance function
and the Federal Savings and
Loan Insurance Corporation
would be merged into a single
independent agency with
insurance responsibilities for all
state and federally chartered
banks and S&Ls. It would have
the right to examine, require
reports from and take
enforcement actions against any
insured institution or its affiliates,
although it would focus its
attention on problem and near­
problem institutions.
Finally, securities regulation with
respect to banks, S&Ls and
holding companies would reside
exclusively in the Securities and
Exchange Commission. Antitrust
enforcement would reside solely
in the Justice Department, and
consumer compliance matters
would be the exclusive province
of the Federal Trade Commission.
Reorganization along functional
lines would bring reason and
coherent form to our regulatory
structure, and would enable it to
effectively monitor and promote a
strong, profitable and responsive
financial system under private
ownership and control. The
decisions we make on these
subjects over the months and
years ahead are likely to have
profound effects on the financial
system for decades to come.
William M. Isaac
Chairman







Operations
of the
Corporation

i

2

1982—
A Watershed Year
for FDIC
The year 1982 brought the
Federal Deposit Insurance
Corporation to the forefront of
the American public’s attention.
Not since the Depression has the
FDIC played such a discernible
role in the business life of the
nation. In general, the
Corporation had been little
known and its operations little
understood by most Americans.
However, the FDIC’s handling of
42 insured bank failures during
the year, and its involvement in
major issues surrounding the
banking industry have made the
Corporation a more evident
influence on the nation’s
economic health.
The FDIC, insured banks and
other financial institutions
operated in a highly
unpredictable economy during
1982. Because of excessive
growth in the money supply, the
Federal Reserve maintained tight
monetary policies, and interest
rates remained high until late
summer when the Fed began to
relax its grip. Over the course of
the year, the prime interest rate
dropped from 15.75 percent to 11
percent. Moreover, the discount
rate, which more directly affects
consumer interest rates, was 12
percent in January of 1982 and
then slid to 8.5 percent by
year-end.
In the midst of this volatility, 42
FDIC-insured banks failed,
topping all previous years since
1940 when 43 failures occurred.
To place last year’s 42 failures in
perspective, the largest number
of insured bank failures in any
recent year was 16 in 1976, and
the number of failed banks was
10 per year from 1979 through
1981.



Compared to past years, 1982
was an extremely busy year for
the Corporation. Bank failures
and mutual savings bank
problems required considerable
time and energy to resolve.
Around-the-clock and weekend
work sessions were
commonplace, but the problems
associated with 42 bank failures
were contained. The deposit
insurance system functioned
according to design, providing
stability and maintaining public
confidence in the nation’s banks
as they struggled through a
period of economic upheaval and
intense competitive pressures.

Income and Expenses
Despite the expense to the
Corporation resulting from the
high bank failure rate, revenues
and the deposit insurance fund
continued to increase. Gross
revenues for 1982 amounted to
$2.5 billion, an increase of $400
million over 1981. Of total
revenues, $1.4 billion represented
income derived from investments
in U.S. Treasury obligations and
$1.1 billion came from
assessments on insured banks,
interest on notes receivable and
other sources. The deposit
insurance fund grew during 1982

DEPO SITS A N D LOSSES IN ALL IN SU R ED BANKS
REQUIRING DISBURSEM ENTS BY FDIC, 1934-1982
Total Deposits

‘ Includes collection s and disbursem ents by liquidators in the field ($1.5 billio n ) which were previously excluded
from this chart.

3

to a new year-end high of $13.8
billion, an increase of $1.5 billion
or 12.4 percent over 1981.
The average maturity of the
Corporation’s investment
portfolio during 1982 was
maintained at approximately two
years and nine months. As of
December 31, 1982, 43 percent of
the portfolio had maturities of
ur.der two years. The portfolio’s
par value increased from $12.1
billion at the end of 1981 to $13.2
billion at year-end 1982. The
portfolio’s market value during
the same period expanded from
$10.9 billion to $13.3 billion.
Gross expenses and losses for
1982 amounted to $1 billion. Of
this amount, $870 million
represented the total expenses
and losses incurred by the FDIC
in closed banks and merger
activities. The FDIC’s
administrative expenses in 1982
came to $130 million, an increase
of only 2.2 percent over 1981.
That rise compares favorably
with an increase of 10.8 percent
for overall federal outlays and an
estimated increase of 3.9 percent
in the Consumer Price Index
during 1982. This was the fourth
consecutive year in which the
Corporation, using tight controls
and a rigorous budgeting
process, held its expenditure rate
increase below both the rate of
inflation and the increased cost
of the federal government as a
whole.
Depending on the FDIC’s losses
and expenses each year, banks
generally receive a credit against
their next year’s assessments for
insurance coverage. The losses
and expenses sustained by FDIC
in 1982 resulted in an assessment
credit of $96 million, compared to
$117 million in 1981. The 1982
credit represents an effective
assessment rate to banks of 1/13
of one percent of assessable
deposits, compared to 1/14 of
one percent in 1981. The 1982



assessment credit represents
8.68 percent of total assessments
compared to 11.29 percent in
1981.
(The FDIC’s complete 1982 financial
statements with footnotes begin on
page 12. The U.S. Comptroller
General’s audit opinion of the FDIC’s
financial statements is on page 23.)

Payments to Depositors
In the 620 banks that have failed
since the FDIC’s inception, 99.8
percent of their depositors, both
insured and uninsured, had
received or were assured of
payment of their deposits in full
at the end of 1982, and 98.9
percent of the total deposits had
been paid or made available for
payment.
Although recovery of uninsured
portions of deposits varies from
case to case, in the aggregate,
79.6 percent had been paid or
made available by December 31,
1982. In contrast, 97.2 percent of
uninsured deposits had been
paid or made available to
depositors by the end of 1981.
The marked decrease in the
recovery rate for uninsured
deposits is due almost entirely to
the failure of the Penn Square
Bank in Oklahoma City in July
1982. The bank had an unusually
high volume of deposits
exceeding the insurance limit.

T h e F D I C M u tu a l S a v in g s B a n k
T e a m w o rk e d h u n d r e d s o f h o u r s
d u r in g 1982 h a n d lin g th e a ssiste d
m e rg e rs o f e ig h t fa ilin g m u tu a l
s a v in g s b a n k s w ith h e a lth y in sti­
tu tio n s . T h e m e m b e rs a r e ( fro m
left): W illia m R . W a ts o n , R o g e r
A . H o o d ; D e n n is A . O ls o n ;
D o u g la s H. J o n e s ; B a r b a ra I.
G e rs te n ; R o b e r t P. G o u g h ,
T e a m L e a d e r; M a ry R . W a rh o l;
L o u is E. W rig h t; K a th y A.
J o h n s o n ; W illia m J . V ia, J r .,
a n d W illia m H . R o elle.

Because of the complexity of the
receivership and the existence of
numerous problems, no payment
from the proceeds of liquidated
assets could be made to Penn
Square creditors, including
uninsured depositors, in 1982.
There were 6.5 million depositors
in the 620 banks that were closed
between January 1,1934, and
December 31,1982, and deposits
totalled nearly $20 billion. In
meeting its responsibilities, the
FDIC as insurer disbursed $8.6
billion and as liquidator
recovered $6.7 billion, for a net
loss to the Corporation of $1.9
billion since it began operations.

Mutual Savings Bank
Mergers
A major claim on FDIC’s
capabilities and resources in
1982 involved troubled mutual
savings banks. The FDIC
assisted the mergers of eight
failing mutual savings banks with
healthy financial institutions, two
of which are commercial banks.
The FDIC-assisted mergers of
two thrift institutions into
commercial banks in 1982 were
the first such transactions
arranged by the Corporation.
One transaction involved the
merger of Farmers and
Mechanics Savings Bank (FS M),
Minneapolis, Minnesota, into

4

Marquette National Bank of
Minneapolis. As a result of the
merger, Marquette National
became the fourth largest
commercial bank in Minnesota.
The acquisition followed a
competitive bidding process
which included both in-state and
out-of-state potential acquirers.
The bidding process was
facilitated by the passage of state
legislation to allow the
acquisition of F & M as a
commercial bank by an out-ofstate bank holding company. The
merger demonstrated clearly that
interstate bidding enhances
competition and results in lower
cost to the FDIC.
A deposit payoff would have cost
the FDIC an estimated $250
million. Instead, the merger will
result in a cost of about $95
million.
The second thrift-commercial
bank transaction merged Fidelity
Mutual Savings Bank of
Spokane, Washington, into First
Interstate Bank of Washington,
N.A., Seattle. Accomplishment of
this merger also involved both in­
state and out-of-state bidders.
The transaction resulted in an
approximate cost of $47 million,
compared to the estimated $165
million cost of a deposit payoff.
The savings resulting from
inclusion of out-of-state bidders
is estimated at $20 million.
The FDIC had two objectives in
addressing the problems of the
savings bank industry. The first
was to resolve the problems at a
reasonable cost to the insurance
fund without raising public
concern about a large bank
failure. Second, the Corporation
had to insure that any financial
institution resulting from a
merger with a failing savings
bank would be financially sound,
with the ability to compete
effectively in its market, and



would continue to serve the
credit needs of its community
free of excessive government
control.
The assisted mergers that the
Corporation carried out during

1982 accomplished these
objectives, and protected all
depositors and other general
creditors against any loss or
inconvenience. The transactions
also maintained public
confidence in these banks and

Insured Banks Closed During 1982 Requiring Disbursements By The
Federal Deposit Insurance Corporation
A m ount of
deposits (in
m illons of
dollars)

Date of
deposit payout
or assum ption

Num ber of
depositors
or accounts

1. Western Savings Bank
Buffalo, New York

January 15, 1982

233,000

890.2

2. The First National Bank and Trust
Com pany of Tuscola
Tuscola, Illinois

February 6, 1982

3,905

15.2

3. M etropolitan Bank and Trust
Com pany
Tampa, Florida

February 12, 1982

28,000

171.7

4. Farmers and Mechanics Savings
Bank of Minneapolis
Minneapolis, Minnesota

February 20, 1982

180,935

789.4

5. Bank o f Yorkville
Yorkvilie, Tennessee

February 20, 1982

1,808

6.6

6. The Bank of Woodson
W oodson, Texas

March 1, 1982

795

3.4

7. Fidelity Mutual Savings Bank
Spokane, Washington

March 11, 1982

139,300

550.5

8. United States Savings Bank of
Newark, New Jersey
Newark, New Jersey

March 11, 1982

81,528

578.4

9. The New York Bank of Savings
New York, New York

Name and Location

March 26, 1982

491,057

2,779.7

10. Western Saving Fund Society of
Philadelphia
Haverford, Pennsylvania

April 2, 1982

420,000

1,956.8

11. The First National Bank in Humboldt
Humboldt, Iowa

April 2, 1982

11,031

48.7

12. Aquia Bank and Trust Company
Stafford, Virginia

April 3, 1982

4,769

12.7

13. National Security Bank
Tyler, Texas

April 16, 1982

5,354

9.0

14. Pacific Coast Bank
San Diego, California

April 29, 1982

3,097

10.1

15. Carroll County Bank
Huntingdon, Tennessee

April 30, 1982

2,314

8.1

16. Coles County National Bank
of Charleston
Charleston, Illinois

May 1, 1982

6,910

18.6

17. Com m unity Bank of Washtenaw
Ypsilanti, Michigan

May 15, 1982

7,825

16.8

18. Banco Regional
Bayamon, Puerto Rico

June 12,1982

2,000

15.1

19. Citizens Bank
Tillar, Arkansas

June 23, 1982

1,164

6.3

20. Farmers State Bank of Lewistown
Lewistown, Illinois

June 25, 1982

6,600

27.3

21. The Belle Bland Bank
Bland, Missouri

July 2, 1982

1,835

3.9

5

strengthened the surviving
institutions.
The FDIC expended $1,013
billion in facilitating these
mergers. This amount contrasts
with the estimated $2.86 billion

cost of deposit payoffs if all eight
institutions had been allowed to
fail. Under the FDIC’s insurance
assessment system, about 60
percent of the Corporation’s cost,
or about $607 million, will be
recovered through reduced

(Continued)

Name and Location

Date of
deposit payout
o r assumption

Num ber of
depositors
or accounts

Am ount of
deposits (in
m illons of
dollars)

22. Penn Square Bank, National
Association
Oklahoma City, Oklahoma

July 5, 1982

24,534

470.4

23. The Bowie County State Bank
Hooks, Texas

July 27, 1982

5,357

13.7

24. Guaranty Bond State Bank
Redwater, Texas

July 27, 1982

5,088

12.9

25. Unity Bank and Trust Company
Boston, Massachusetts

July 30, 1982

7,200

10.5

26. Mt. Pleasant Bank and Trust
Company
Mt. Pleasant, Iowa

August 6, 1982

7,900

25.8

27. Abilene National Bank
Abilene, Texas

August 6, 1982

28,132

310.1

28. First Security Bank of
North Arkansas
Horseshoe Bend, Arkansas

August 27, 1982

3,800

11.9

29. Security Bank and Trust Company
Cairo, Illinois

August 27, 1982

4,408

11.0

30. Western National Bank
Santa Ana, California

August 27, 1982

1,949

20.7

31. Hohenwald Bank and Trust
Company
Hohenwald, Tennessee

September 3, 1982

4,468

26.9

32. United M utual Savings Bank
New York, New York

September 24, 1982

157,142

777.9

33. O klahom a National Bank
and Trust Company
O klahom a City, O klahom a

O ctober 3, 1982

23,103

133.6

34. Tri-State Bank
Markham, Illinois

O ctober 8, 1982

5,831

16.0

35. M echanics Savings Bank
Elmira, New York

O ctober 15, 1982

20,778

50.6

36. Cedar B luff Bank
Cedar Bluff, Alabama

November 2, 1982

4,300

13.1

37. The First National Bank
of South Charleston
South Charleston, West Virginia

November 5, 1982

10,016

26.9

38. Texas Bank of Am arillo
Am arillo, Texas

November 5, 1982

3,900

9.2

39. Bank of Quitm an
Q uitm an, Arkansas

November 12, 1982

6,126

16.8

40. Ranchlander National Bank
Melvin, Texas

November 19, 1982

499

3.6

41. The B allinger C ounty Bank
Lutesville, Missouri

December 10, 1982

4,400

14.5

42. The Security State Bank
M ooreland, Oklahoma

December 16, 1982

2.300

9.9




assessment credits that
otherwise would have been
refunded to insured banks. The
result is a net cost to the
insurance fund of $406 million.

Commercial Bank
Failures
In addition to handling eight
mutual savings bank failures, the
FDIC handled 34 commercial
bank failures in 1982 — ten
national banks, 23 state banks
and one commercial bank in
Puerto Rico. FDIC resolved these
cases by arranging 27 deposit
assumptions and seven deposit
payoffs.
Some unusual situations arose
involving several of the year’s
commercial bank failures,
prompting the FDIC to take
unusual measures. For example,
in two cases, the FDIC Board of
Directors agreed to provide
assistance to two distressed
banks on an open bank basis.
The Corporation granted
financial assistance to facilitate
the acquisition of Abilene
National Bank of Abilene, Texas,
by the Mercantile Texas
Corporation, a Dallas-based bank
holding company. The FDIC
granted similar assistance to
accomplish the acquisition of
Oklahoma National Bank and
Trust Company by the First
National Bank and Trust of
Oklahoma City. The cost to the
FDIC of the financial assistance
in both transactions was
substantially lower than the
estimated cost of either a deposit
assumption or a deposit payoff.
In addition, the FDIC avoided
exposure to any contingent
liabilities and the substantial
administrative costs of a failed
bank receivership.
In another insolvency, the
deposit liabilities of the Mt.
Pleasant Bank and Trust
Company, in Mount Pleasant,
Iowa, were assumed on August 5,

6

1982, by Hawkeye Bank and
Trust, a new state bank subsidi­
ary of Hawkeye Bancorporation,
Des Moines, Iowa. The FDIC was
named receiver. Subsequent to
the acquisition, the FDIC
determined that claims by
repurchase agreement (repo)
customers of Mt. Pleasant Bank
and Trust could not take priority
over claims by depositors or by
other general creditors of the
bank. Therefore, the claims of
repo holders, along with other
general creditors, will be entitled
to payment from the receivership
only on a pro rata basis. The
FDIC’s determination regarding
the status of Mt. Pleasant repo
holders was based on the
particular circumstances of that
bank, and did not, therefore,
reflect general FDIC policy on
the status of repurchase
agreements. However, the case
attracted widespread attention
and served to enhance consumer
awareness of the uninsured
nature of this type of investment.
The most unusual insured bank
failure of 1982 involved the Penn
Square Bank, N.A., a one-office
bank in a shopping mall on
Oklahoma C ity’s north side. The
bank was declared insolvent by
the Comptroller of the Currency
on July 5. The failure quickly
attracted nationwide publicity
because it was the largest
deposit payoff in FDIC history
and more than half the bank’s
$465 million in deposits
exceeded the insurance limit of
$100,000 per depositor.
The bank failed because it had
made an inordinate number
of high-risk energy-related
loans that went into default.
Compounding the seriousness of
the situation was the fact that the
bank had sold participations in
many of the risky energy loans,
amounting to $2.1 billion, to
major upstream banks, which
lost millions as a result of Penn
Square’s unsafe loan practices.



After the bank was closed, the
FDIC established a Deposit
Insurance National Bank (DINB)
pursuant to Section 11 of the FDI
Act to serve as a vehicle for
paying depositors. The DINB
assumed the insured deposits of
Penn Square, and it opened for
business in the offices of the
failed bank the morning of
July 6.
Penn Square had 24,538 deposit
accounts at the time of its failure
totalling about $465 million. All
the assets that FDIC acquired for
liquidation totalled $511.3 million,
plus $8.2 million in assets
charged off by the bank prior to
its closing.

The FDIC determined that
deposits in excess of the
insurance limit would constitute
claims against the Penn Square
receivership, for which Receiver’s
Certificates were issued, each in
an amount equal to the
uninsured portion of the deposit.
These claims have general
creditor status and will share in
liquidating dividends with the
FDIC and other general creditors
from the collection of the bank’s
assets.
In addition to DINB operations,
the FDIC is involved in numerous
other activities resulting from the
Penn Square failure. The
Corporation, as both receiver and

IN S U R E D B A N K F A IL U R E S , 1934— 1982
Number of banks
80----------------------

Deposit Assumption

! Deposit Payoff

60-

50-

40i

30-

20

7

10

T
'34

’38

’42

'46

'50

'54

'58

'62

66

'70

'74

'78

'82

7

creditor of Penn Square, is
involved in extensive litigation.
FDIC personnel have conducted
thorough examinations of Penn
Square’s records preparatory to
presenting substantial claims
under Penn Square’s banker’s
blanket bond, as well as claims
against former officers and
directors of the bank and the
bank’s accounting firm. The
FDIC also has discovered a
number of matters that may
constitute criminal offenses
under federal law and has
referred these matters to the
Justice Department.

Regulatory and
Administrative Initiatives
During 1982, the FDIC addressed
a number of issues and events in
banking, taking initiatives
affecting its internal operations
as well as bank activities.
The FDIC issued proposed
regulations to streamline the
processing of applications for
deposit insurance, branches and
office relocations by substantially
reducing the paperwork
requirements and greatly
accelerating the review process.
The Board of Directors also
proposed to delegate its approval
authority in routine commercial
bank mergers to the FDIC’s
Division of Bank Supervision and
to the agency’s regional
directors. The delegation of
authority is expected to save ten
days or more in the approval
process for such appliactions.
This proposed delegation and
the streamlined processing of
routine applications by sound
banks are both part of the FDIC’s
continuing efforts to reduce the
time and cost of processing
applications and reduce the
burden of regulation to the
maximum extent practicable.
In another internal matter, the
Corporation approved a
reorganization of its Division of



C h a ir m a n Isa a c d isc u sse s p o lic y
m a tte r s w ith J a c k E d g in g to n
(left), D e p u ty to th e C h a irm a n
( A d m in is tr a tio n ), E d w a rd T .
L u tz (sta n d in g ) . A s s ista n t t o th e
D e p u ty to th e C h a irm a n , a n d
M a rg a r e t L. E g g in to n , D e p u ty
t o th e C h a ir m a n ( P u b lic A ffa irs).

Liquidation that will establish
Area Liquidation offices in five
cities. The first office, located in
New York City, opened in
November. By June 1983, offices
are expected to be operating in
Atlanta, Chicago, Dallas and San
Francisco. Each office will be
headed by a director who will be
assisted by several senior
liquidation specialists.
The reorganization is intended to
improve efficiency and
management of an expanding
liquidation workload by moving
supervision of bank liquidations
to several centralized locations.
The Division is accelerating the
consolidation of a number of
existing liquidation sites and
reducing the length of time an
office will be maintained at each
failed bank site. The restructuring
is expected to permit the FDIC to
cope with a growing and
fluctuating workload without
increasing the number of field
liquidator positions.
In external matters, the FDIC
took some important positions
during 1982. The Corporation
issued a policy statement on the
applicability of the Glass-Steagall
Act to securities activities of
subsidiaries of insured
nonmember banks. The heart of
the policy statement asserted the
FDIC Board of Directors’

opinion that the Banking Act of
1933 does not prohibit an insured
nonmember bank from affiliating
with, organizing or acquiring a
bona fide subsidiary corporation
that issues, underwrites or sells
many kinds of securities. In
issuing the statement, the FDIC
reaffirmed its ongoing
responsibility to ensure the safe
and sound operation of insured
nonmember banks, and indicated
it would closely monitor the
potential risks inherent in a bank
subsidiary’s involvement in
certain securities activities.
Next, the FDIC, in joint action
with the Federal Reserve Board
and the Office of the Comptroller
of the Currency, required that all
insured commercial banks begin
reporting data on past-due and
other nonperforming loans by
December 31, 1982. For national
banks, the report replaced a pastdue loan schedule that has been
submitted to the Comptroller’s
office for a number of years.
Similar information has been
collected from registered bank
holding companies under the
securities laws.
The new information will help the
FDIC and its partner regulators
upgrade off-site computerized
monitoring systems and reduce
the burden placed on banks in
on-site examinations. In addition
the information will benefit the

8

depositing public and other bank
creditors and investors. Public
disclosure of this type is
consistent with the FDIC’s desire
for greater marketplace discipline
in conjunction with bank
deregulation.
Also in 1982, the Board issued,
but later withdrew, a proposal to
require banks to maintain their
financial records on an accrual
basis. Still in effect, however, is
the requirement that, beginning
with the March 31, 1983, Reports
of Condition and Income, all
banks that had assets of $10
million or more at the end of
1981 must report their financial
position and results of operations
on an accrual basis. Banks that
had assets of less than $10
million at the end of 1981 will
become subject to the revised
reporting rule effective with the
March 31, 1985, reports.
Finally, the FDIC implemented
the net worth certificate program
authorized by the Garn-St
Germain Depository Institutions
Act of 1982, to provide financial
aid to qualified mutual savings
banks. In December the FDIC
purchased $175 million in
certificates from 15 savings
banks. The Corporation
supplemented the certificate
program with a voluntary merger
plan to facilitate additional

C a lv in T . W e tk lo w , C o n tr o lle r
o f C itiz e n s ' B a n k a n d T r u s t
C o m p a n y in R iv e rd a le , M a ry ­
l a n d , a n d D ia n e G e n tile , se cre ­
t a r y in A c c o u n ts P a y a b le a t th e
b a n k , u se a n F D I C c o m p u te r
t e r m in a l in th e ir o ffice to ele c ­
tro n ic a lly file re q u ir e d fin a n c ia l
d a ta w ith th e C o r p o r a tio n .
D u r in g 19 8 2 , th e F D I C e x p e ri­
m e n te d w ith s u c h te r m in a ls in
s e v era l b a n k s to im p ro v e th e
tim e lin e s s a n d a c c u r a c y o f C a ll
R e p o r ts . T h e e x p e rim e n t is p a rt
o f a lo n g -te rm p la n to u p g r a d e
F D I C s d a ta p ro c e s s in g c a p a b ili­
tie s a n d o ff-site m o n ito rin g .




mergers of seriously weakened
mutual savings banks. The
Corporation’s plan provides
tangible financial assistance to
encourage mergers involving
savings banks where one of the
participants is eligible for aid
under the net worth certificate
program. Merger assistance is in
the form of interest-bearing
notes, income maintenance
payments, cash or any other
acceptable form proposed.
The Garn-St Germain Depository
Institutions Act itself was farranging legislation that changed
many aspects of banking and
bank supervision. Greater powers
were given to the FDIC, the
Federal Savings and Loan
Insurance Corporation and the
National Credit Union
Administration to assist troubled
institutions. Federal thrift
institutions were granted
authority to accept demand
accounts and make commercial
loans. The Act preempted state
due-on-sale prohibitions in
certain circumstances, and made
numerous other technical
changes to existing banking laws
and regulations.

Other Operations
During 1982, the FDIC continued
to pursue bank examinations,

litigation and other activities to
accomplish its agency mission.
In the examination area, the
Corporation completed 17,886
bank examinations including
5,625 safety and soundness
examinations, 5,761 consumer
and civil rights compliance
examinations and visitations,
1,232 examinations of trust
departments, 1,247 examinations
of data processing facilities,
1,261 investigations and 2,760
application reviews.
These examinations were
augmented by the Corporation’s
Integrated Monitoring System
(IMS), which tracks bank
activities between examinations,
giving FDIC a current picture of
condition and any developing
problems. The Corporation also
prepares the new Uniform Bank
Performance Report (UBPR) on
an interagency basis with the
Federal Reserve and the
Comptroller of the Currency.
This report shows quarterly bank
information on both a current
and trend basis, and also
presents peer group data for
each insured bank. Each insured
bank gets a copy of its own
UBPR, and copies of UBPRs for
every insured bank are available
to the public.
The FDIC supervises as well as
examines bank trust
departments. At year-end 1982,
the Corporation supervised 2,623
commercial bank trust
departments and 25 trust
departments in mutual savings
banks. In total, these
departments controlled more
than $74 billion in trust account
assets. The FDIC further
approved fiduciary powers for
118 banks during the year.
In addition to trust department
supervision, the FDIC last year
supervised 389 banks that are
registered securities transfer
agents. Under the Securities
Exchange Act of 1934, a bank

9

must register with the
Corporation as a transfer agent
or registrar whenever it acts in
this capacity for any corporation
having $1 million in assets and
500 or more shareholders.
During the year, the FDIC also
supervised 340 banks that are
registered with the Corporation
under the Securities Exchange
Act as having more than $1
million in assets and 500 or more
shareholders of any class of
equity security.
The FDIC devotes considerable
attention to various types of
applications and requests from
banks, including applications for:
deposit insurance: consent to
establish new branches or
facilities or relocate existing
offices, and permission to merge.
In addition, persons who have
been convicted of a criminal
offense involving dishonesty or
breach of trust must obtain
FDIC’s consent before serving as
a director, officer or employee in
an insured bank. In another
category of applications, those
who are acquiring control of a
bank must give the FDIC 60 days
prior written notice and include
personal and financial data, and
the terms of the proposed
acquisition. The following
statistics reflect FDIC actions on
applications it received during
1982.
FD IC Applications

1982

1981

75
73
2

98
98
0

New Branches - total
1,174
approved
1,171
branch
610
lim ited branch
87
remote service fa cility
474
denied
3

1,324
1,321
704
151
466
3

Deposit Insurance - total
approved
denied

Mergers - total
approved
denied
Requests fo r consent to
serve - total
approved
denied
Notices of changes
in control




110
108
2

75
74
1

48
48
0

56
54
2

182

200

F D I C E x a m in e r s ( fr o m left)
R a y m o n d G o la ta , K e ith N o th ste in a n d D a v is S t a tt o n rev iew
n o te s a n d c o m p ile th e ir r e p o rt
a f te r e x a m in in g a b a n k ’s tru s t
r e c o rd s .

In the international banking area,
the FDIC reviews applications of
foreign banks for deposit
insurance in their U.S. branches,
examines these branches and
supervises U.S. banks owned by
foreign banks, bank holding
companies or foreign individuals.
The Corporation also must
review applications by FDICsupervised U.S. banks to engage
in foreign activities. During 1982,
the Corporation received two
applications for deposit
insurance of domestic branches
of foreign banks.
As a part of its bank monitoring
effort, the FDIC maintains a
current list of banks under the
Uniform Financial Institutions
Rating System as having unsafe
or unsound conditions and a
relatively high possibility of
failure. At year-end 1982, there
were 369 banks on the so-called
problem bank list. The FDIC
imposes specific corrective
measures on such banks and in
most cases the banks’ problems
are corrected over a period of
time and the institutions are
removed from the list.
In the legal area, the Corporation
as receiver of closed banks is
involved in litigation connected
with bank liquidation activities.
The FDIC must also act to
correct improper banking
practices through issuing cease-

and-desist orders (Sections 8(b)
and 8(c) of the FDI Act), levying
fines, and terminating deposit
insurance (Section 8(a) of the
Act). The following is a summary
of these actions.
The FDIC levied eleven civil
money penalties in 1982.
The FDIC first used its authority
to issue cease-and-desist orders
to correct weaknesses or
compliance violations of banks in
1971, and from 1971 through
1975 issued 37 orders. In the last
seven years, it has issued 293
orders. In 1982, three were to
correct violations of consumer
protection laws and regulations
and 66 were primarily to correct
unsatisfactory financial
conditions or management
practices.
Under the FDI Act, a bank may
seek judicial review of a final
FDIC order to cease-and-desist.
One such appeal was filed in
1981. It is still pending before the
court.
The FDIC also is authorized
under Section 8(a) of the FDI Act
to initiate termination-ofinsurance proceedings if it finds
that a bank is in an unsafe or
unsound financial condition. If a
bank does not correct its
condition within a prescribed
period, an administrative hearing
is held during which the bank

10

proceeding initiated in 1982. At
year-end, six proceedings were
still pending.
A narrative summary of FDIC’s
1982 enforcement actions, case
by case but without banks'
names, may be obtained from the
FDIC Office of Public
Information, 550 17th Street,
N.W., Washington, DC 20429.
Summaries of enforcement
actions for years previous to 1982
are included in the Corporation’s
annual report for each year, also
available from the Office of
Public Information.
may respond to the charges. If
the charges are upheld, the FDIC
may terminate the bank’s
insurance. The depositors are
then required to be notified of the
termination, but deposits (less
subsequent withdrawals)
continue to be insured for two
years.
The FDIC in 1982 initiated 18
termination-of-insu ranee
proceedings, ten of which were
still pending at the end of the
year. Eight became moot by the
failure of the banks involved.
From 1934 through 1982, the
FDIC has taken action under
Section 8(a) against 281 banks,
and 271 cases were closed at the
end of 1982. In slightly less than
half of the closed cases, the
banks involved made the
necessary correction. In most of
the remaining cases, the banks
were absorbed by other banks or
ceased operations after a date
was fixed to terminate its
insurance.
Under Section 8(e) of the FDI
Act, the FDIC may remove an
officer, director or other person
participating in the management
of an FDIC-supervised bank if
the person has (1) violated a law,
rule, regulation or final ceaseand-desist order, (2) engaged in
unsafe or unsound banking



practices, or (3) breached his or
her fiduciary duty. The
individual’s action must involve
personal dishonesty or a willful
or continued disregard for the
safety and soundness of the
bank. Also, the action must entail
substantial financial damage to
the bank, seriously prejudice the
interests of its depositors or
result in financial gain to the
individual. During 1982 eight
Section 8(e) proceedings were
initiated of which two resulted in
final removal orders. In addition
one final order was issued which
resulted from a removal

The FDIC accomplished all of its
activities during 1982 with a
(year-end) total of 3,504
employees. This included 623
nonpermanent employees
primarily temporary, field
employees engaged in
liquidation activities, as well as
work-study program participants
and clerical workers employed
on a short-term or as-needed
basis. About 61 percent of the
Corporation’s employees are
assigned to the Division of Bank
Supervision; 82 percent of those
are field examiners. During the
year, the number of

C ease-and-D esist Orders and A ctions to Correct Specific Unsafe or Unsound
Practices or Violations o f Law or Regulations: 1979, 1980, 1981 and 1982
1982

1981

1980

1979

Actions authorized by Board of D ire c to rs ...............................

74

37

36

59

Actions in negotiation at end of y e a r .......................................

15

8

11

16

Cease-and-desist orders outstanding at beginning of
year-total....................................................................................
Section 8 ( b ) ..............................................................................
Section 8(c) ..............................................................................

78
78
0

90
88
2

88
88
0

70
67
3

Cease-and-desist orders initiated and issued during year . . .
Section 8 ( b ) ..............................................................................
Section 8(c) ..............................................................................

61
55
6

29
28
1

28
25
3

42
37
6

Cease-and-desist orders issued in actions authorized
in prior y e a r ..............................................................................
Section 8 ( b ) ..............................................................................

8
8

9
9

13
13

15
15

Cease-and-desist orders issued during y e a r-to ta l..................

69

38

41

57

Cease-and-desist orders term inated-total...............................
Section 8 ( b ) ..............................................................................
Section 8(c) ..............................................................................

41
36
5

50
47
3

39
38
1

40
31
9

Cease-and-desist orders in force at end of yea r-to tal............
Section 8 ( b ) ..............................................................................
Section 8(c) ..............................................................................

106
105
1

78
78
0

90
88
2

88
88
0

11

commissioned examiners
decreased from 1,340 to 1,332.
The 1982 turnover rate for field
examiners was 7.0 percent,
compared to 8.0 percent for
1981. For all employees,
exclusive of temporary field
personnel, college students in
the FDIC’s cooperative workstudy program and temporary
summer personnel, the turnover
rate was 7.8 percent, compared
to 12.8 percent in 1981. Position
vacancy announcements issued
in 1982 totalled 247.




Number o f Officials and Employees o f the
Federal Deposit Insurance Corporation — December 31, 1981 and 1982
TO TAL

1982
TO TAL ....................................................... . . . 3504
47
Executive O ffic e s .................................
105
Legal D iv is io n ........................................
Division of Research and
Strategic P la n n in g ......................
28
778
Division of L iq u id a tio n ........................ . . .
2129
Division o f Bank S up ervision .............
Division of A ccounting and
347
C orporate S e rv ic e s .................... . . .
29
O ffice of C orporate Audits ...............
6
O ffice o f Equal O p p o r tu n ity .............
35
O ffice of Personnel M anagement . ..

WASHINGTON
OFFICE

REGIONAL &
FIELD OFFICE

1981

1982

1981

1982

1981

3394
43
106

933
47
105

963
43
106

2571
0
0

2431
0
0

30
429
2359

28
185
151

30
199
158

0
593
1978

0
230
2201

351
31
7
38

347
29
6
35

351
31
7
38

0
0
0
0

0
0
0
0

12

Comparative
Statement of
Financial Position

<in thousands)
D ecem ber 3 1 ,
1982

A sse ts

$

Cash
Investm ent in U.S. Treasury o bligatio ns:
S ecurities at amortized cost (Note 1)
Interest receivable
T otal
Assistance to insured banks:
Notes receivable (Note 2)
Interest receivable
T otal

O ther receivables and prepaid ite m s (Note 3)
Total C u rre n t Assets
Long-term in v e s tm e n t in U.S. Treasury notes
and bonds (Note 1)
Long-term assistance to insured banks:
Notes receivable (Note 2)
Net w orth certificates (Note 4)
Special assistance (Note 5)
Less: A llow ance for losses (Note 5)
T otal
E quity in assets acquired from insured banks:
D epositors' claim s paid
Depositors' claim s unpaid
Loans and assets purchased
Assets purchased outrigh t
Less: A llow ance for losses (Note 6)
Total
Land and o ffice b uild in g s, less accum ulated
d e p re cia tio n on b u ild in g s
T ota l Assets

1,335

Decem ber 31,
1981

$

382

4,133,122
307,116

4,119,401
231,406

4,440,238

4,350,807

50,619
32,314

21,969
1,836

82,933

23,805

9,793

4,542

4,534,299

4,379,536

9,119,243

7,885,591

654,643
174,529
7,816
3,227

406.512
0
0
0

833,761

406.512

320,216
9,547
609,148
401,563
628,405

64,336
1,410
463,483
528,230
510,245

712,069

547,214

34,153

22,932

$15,233,525

$13,241,785

The accom panying sum m ary of sig n ifica n t accounting policies and notes to financial statem ents are an
integral part of these statem ents.




13

Liabilities and the
D eposit Insurance Fund
A c c o u n ts payable and accrued lia b ilitie s

Decem ber 31,
19 82

$

56,762

D ecem ber 31,
1981

$

13,458

C olle ctio n s held fo r others

2,453

3,299

A ccrue d annual leave o f em ployees

6,935

6,533

0
96.181
0

117,135
0
11,737

96.181

128,872

201,205

155,269

99,963

75,417

463,499

382,848

11,224
174,529

12,282
0

185,753

12,282

147,666
476,484
176,632
9,547

285,333
9,647
304,125
1,410

8 1 0 ,3 2 9

600,515

3,000

0

1,462,581

995,645

13,770,944

12,246,140

$15,233,525

$13,241,785

Due insured banks:
Net assessm ent income credits:
Available July 1, 1982 (Note 7)
Available July 1, 1983 (Note 7)
Available excess credits (Note 8)
Total

C u rre n t notes payable plus
accrued in te re s t (Notes 9 and 10)
C u rre n t estim a te d paym ents due on
inco m e m aintenan ce agreem ents (Note 11)

Total C u rre n t Liabilities
Long -term notes payable:
F Street property notes (Note 9)
Promissory (exchange) notes (Note 4)
Total
Long-term lia b ilitie s incurred in fa ilures
o f insured banks:
FRB & FHLB indebtedness (Note 10)
Notes payable (Note 10)
Income m aintenance agreem ents (Note 11)
Depositors' claim s unpaid
Total
Estim ated losses fro m C orporation litiga tion (Note 12)
T ota l L iab ilitie s
D e po sit Insurance Fund
T o ta l L iab ilitie s and th e D e p o sit Insurance Fund

The accom panying sum m ary of sig nifica nt accounting policies and notes to financial statem ents are an
integral part of these statem ents.




14

Comparative
Statement of Income
and the Deposit Insurance Fund

(In thousands)
For the twelve m onths ended
Decem ber 31.
1982

Incom e:
Gross assessments earned
Less: Provision fo r assessment credits

$

1,109,288
96,553

Decem ber 31,
1981

$

1,040,940
119,024

1,012,735

921,916

1,116,216
253,750

985,417
130,043

1.369,966

1,115,460

Interest earned on notes receivable

79,178

31,924

Interest received on assets in liquidation

53,888

647

8,869

4,743

2,524,636

2,074,690

129,927
681,129
126,436
54,178
8,162

127,185
387,712
320,412
9,386
3,396

999,832

848,091

1,524,804

1,226,599

12,246,140

11,019,541

$13,770,944

$12,246,140

Total
Interest on U.S. Treasury obligations
Am ortization of prem ium s and discounts (net)
Total

Other income
Total Incom e

Expenses and Losses:
A dm inistrative operating expenses (net)
M erger assistance losses and expenses (net)
Provision for insurance losses (net)
Interest expense on FRB indebtedness
Nonrecoverable insurance expenses
T otal Expenses and Losses
N et Incom e
D e p o sit Insurance Fund—Jan u a ry 1
D eposit Insurance Fund— D ecem ber 31

The accom panying sum m ary of sig n ifica n t accounting policies and notes to financial statem ents are an
integral part of these statem ents.




Comparative
Statement of Changes
in Financial Position (In thousands)
For th e tw e lv e m o n th s e n d e d
D ecem ber 31,
19 82

D ecem ber 31,
1981

$ 1 ,5 2 4 ,8 0 4
493
1 1 2 ,4 0 3
1 2 6 ,4 3 6
(4 3 6 ,8 5 5 )

$ 1 ,2 2 6 ,5 9 9
438
2 5 ,9 0 7
2 7 1 ,5 0 7
0

1 ,3 2 7 ,2 8 1

1 ,5 2 4 ,4 5 1

1 ,6 0 7 ,4 4 6
5 0 ,6 1 9
296

1 ,6 0 8 ,9 3 8
2 1 ,9 1 9
0

2 6 ,1 1 8
4 3 2 ,1 3 8

1 1 ,8 7 3
2 4 3 ,7 3 5

1 7 4 ,5 2 9

0

2 9 ,8 0 0
4 9 4 ,0 8 8
4 9 2 ,4 4 2

4 2 8 ,0 0 0
0
3 8 2 ,7 2 9

4 ,6 3 4 ,7 5 7

4 ,2 2 1 ,6 4 5

Purchase of U.S.T. notes and bonds
2 ,8 5 9 ,7 5 0
Increase in assistance to insured banks:
Net w orth certificates
1 7 4 ,5 2 9
Special assistance
8 ,1 1 2
Notes receivable
2 9 8 ,7 5 0
Assets acquired from insured banks:
Receivership and payoff cases
2 8 2 ,3 5 3
Deposit assumption transactions
4 5 3 ,5 3 0
Purchase of San Francisco condom inium offices
1 1 ,7 1 4
Portion of notes payable transferred as currently due
1 8 1 ,8 4 2
Payments made on notes payable
2 5 ,5 8 7
Portion of income maintenance agreements transferred as currently due
9 9 ,9 6 3
Payments made on income maintenance agreements
1 6 4 ,5 1 5

5 0 0 ,3 7 7

Sources o f W orking Capital
From operations:
Net income
Add: Depreciation expense
Am ortization not effecting working capital
A llowance for loss adjustments
Income m aintenance agreements adjustm ents

_

Total
From other sources:
Portion of long-term investments in U.S.T. notes & bonds
at amortized cost transferred as currently due
Portion of assistance to insured banks transferred as currently due
Collections on assistance to insured banks
Collections on assets acquired from insured banks:
Receivership and payoff cases
Deposit assumption transactions
Increase in notes payable:
Prom issory (exchange) notes
Increase in liabilities incurred in failures of insured banks:
FRB and FHLB indebtedness
Notes Payable
Income maintenance agreements

Total sources o f w o rkin g capital
Uses o f W orking Capital

Total uses o f w orkin g capital
N et increase in w o rk in g capital

4 ,5 6 0 ,6 4 5
$

3 4 ,8 5 5
6 2 9 ,8 2 4
0
1 4 5 ,2 9 3
0
7 5 ,4 1 7
8 ,6 9 9

1 ,3 9 4 ,4 6 5
$ 2 ,8 2 7 ,1 8 0

W o rk in g C a p ita l
(In c re a s e — (D e cre a se ))
$
(1 ,6 0 4 )
$
953
2 ,6 3 9 ,9 6 8
13 ,7 2 1
4 ,4 8 5
7 5 ,7 1 0
(2 1 ,2 5 0 )
2 8 ,6 5 0
(1 ,1 8 2 )
3 0 ,4 7 8
(4 5 5 )
5,2 5 1
(5 ,5 4 6 )
(4 3 ,3 0 4 )
870
846
(3 5 9 )
(4 0 2 )
4 3 9 ,8 4 5
3 2 ,6 9 1
(1 4 2 ,6 7 2 )
(3 6 ,5 4 9 )
(9 ,5 0 3 )
(9 ,3 8 7 )
(2 4 ,5 4 6 )
(7 5 ,4 1 7 )

Changes in W orking Capital A ccounts
Cash
Investment in U.S.T. securities at amortized cost
Interest receivable on U.S.T. securities
®
Payments due on assistance to insured banks
Interest receivable on assistance to insured banks
Other receivables and prepaid items
Accounts payable and accrued liabilities
Collections held for others
Accrued annual leave of employees
Net assessment income credits due insured banks
Current notes payable
Interest on notes payable
Current estimated payments on income maintenance agreements

Net increase in w o rking capital

7 4 ,1 1 2

0
0
0

$

7 4 ,1 1 2

$ 2 ,8 2 7 ,1 8 0

The accom panying sum m ary of sig n ifica n t accounting policies and notes to financial statem ents are an
integral part of these statements.




16

Summary of
Significant
Accounting Policies
General
These statem ents do not include accountability for assets and liabilities of closed insured banks for w hich
the Corporation acts as receiver or liquidating agent. Periodic and final accountability reports of its a ctivi­
ties as receiver or liquidating agent are furnished by the Corporation to courts, supervisory authorities, and
others as required.
U.S. Treasury O b liga tion s
Securities are show n at amortized cost w hich is the purchase price of the securities less the amortized
prem ium or plus the accreted discount. Such am ortizations and accretions are computed on a daily
straight-line basis from the date of acquisition to the date of m aturity.
D eposit Insurance A ssessm ents
The Corporation assesses insured banks at the rate of 1 / 1 2 of one percent per year on the bank's average
deposit lia bility less certain exclusions and deductions. Assessments are due in advance for each sixm onth period and credited to income each month. The Depository Institutions Deregulation and Monetary
Control Act of 1980 changed the percentage of net assessment income to be transferred to insured banks
each July 1 of the follo w in g calendar year from 66 2 /3 percent to 60 percent and authorized the FDIC
Board of Directors to make adjustm ents to this percentage w ith in certain lim its in order to m aintain the
Deposit Insurance Fund between 1.25 and 1.40 percent of estimated insured deposits. If this ratio falls
below 1.10 percent or above 1.40 percent, the FDIC is mandated to make fu rth e r reductions, up to 50 per­
cent, or increases to the percentage distribution of net assessment income.
A llo w a n c e fo r Losses
The Corporation establishes an estim ated allowance for loss at the tim e a bank fails. These allowances are
reviewed every six m onths and adjusted as required, based on financial developments w hich accrue d u r­
ing each six-m onth period. The Corporation does not state its estimated contingent liability for unknown
future bank closings because such estim ates are impossible to make. The Corporation's contingent liability
for eventual net losses depends upon factors w hich cannot be assessed until or after a bank has actually
failed. The Corporation's entire Deposit Insurance Fund and borrowing authority are available, however,
for such contingencies.
D epreciation
The Washington Office Buildings are depreciated on a straight-line basis over a 50-year estimated life. The
San Francisco Condominium Offices are depreciated on a straight-line basis over a 35-year estimated life. The
cost of furniture, fixtures, and equipment is expensed at tim e of acquisition.
R e tirem e n t Plan
All perm anent, fu ll-tim e and part-tim e employees of the FDIC are covered by the contributory Civil Service
Retirem ent Plan. The Corporation makes bi-w eekly contributions to the plan equal to the employees' b i­
weekly contributions. The retirem ent plan expenses paid for calendar years 1982 and 1981 were
$6,377,000 and $5,992,000, respectively.
A ccru ed Inte re st
Accrued interest, w hen classified in the current portions of the Comparative Statem ent of Financial Posi­
tion, represents the entire am ount of interest due to or due from the Corporation w ith in one year, in clu d ­
ing interest accrued on those principal am ounts classified as long-term.




Incom e M aintenance Agreem ents
The Corporation records its liability under an Income Maintenance Agreement at the present value of each
estimated cash outlay at the tim e the agreement is accepted. Estimated cash outlays are anticipated future
payments the Corporation w ill provide to offset the difference between the annualized cost of funds and
the annualized return on the declining volume of earning assets acquired in a merger transaction, plus an
amount to cover overhead costs. The charge is recorded to insurance loss. The present value of the liability
is then accreted daily and recorded monthly over the term of the agreement. Any differences between the
estimated and actual cash outlays are recorded as payment adjustments. The present value of remaining
estimated cash outlays are also reviewed and adjusted each year when interest rate changes occurring in
the marketplace appear material or permanent in nature. The originally recorded loss, plus or minus any
payment and present value adjustments, w ill then be prorated between insured banks and the Deposit
Insurance Fund as provided in Section 7(d) of the Federal Deposit Insurance Act.
R eclassification s
Reclassifications have been made in the 1981 Financial Statements to conform to the presentation used
in 1982.




18

Notes to
Financial Statements —
December 31, 1982 and 1981
1. U.S. Treasury O b lig a tio n s
All cash received by the Corporation w hich is not used to defray operating expenses or for outlays related
to assistance to banks and liquidation activities, is invested in U.S. Treasury securities. As of December 31,
1982 and 1 981, the Corporation's investm ent portfolio consisted of the follow ing:
December 31, 1982
(In thousands)
M a tu rity

D escription

1 Day

Special Treasury
Certificates

Less than
1 Year

Par Value

U.S.T. Bills
U.S.T Notes & Bonds

$

649,376

Book Value

$

649,376

C ost

M arket Value

$

649,376

$

649,376
1,765,458
1,613,593

4 ,1 3 3 ,1 2 2

4 ,1 6 1 ,8 3 2

4 ,0 2 8 .4 2 7

7,106,126
1,820,000

7,232,759
1,812,924

7,363,982
1,732,709

7,274,441
1,807,740

75,546

73,560

62,255

71,806

9 ,1 1 9 ,2 4 3

9 ,1 5 8 ,9 4 6

9 ,1 5 3 .9 8 7

$ 1 3 ,2 3 2 ,2 4 8

$ 1 3 ,2 5 2 ,3 6 5

$ 1 3 ,3 2 0 ,7 7 8

$ 1 3 ,1 8 2 ,4 1 4

U.S.T. Notes & Bonds
U.S.T. Notes & Bonds

Over 10 Years

1,895,998
1,616,458

9 ,0 0 1 ,6 7 2

1 -5 Years
5-10 Years

1,876,300
1,607,446

4 ,2 3 0 .5 7 6

Total C urrent

1,975,000
1,606,200

U.S.T. Bonds

Total Long-Term
Total Investm ent

December 31,1981
(In thousands)
M a tu rity

D escription

1 Day

Special Treasury
Certificates

Less than
1 Year

U.S.T. Bills
U.S.T Notes & Bonds

U.S.T. Notes & Bonds
U.S.T. Notes & Bonds
U.S.T. Bonds

Total Long-Term
Total Inve stm e nt




S

822,578

Book Value

$

822,578

Cost

M arket Value

$

822,578

$

822,578

1,809,000
1,609,896

1,687,886
1,608,937

1,692,733
1,581,749

1,601,298
1,619,254

4 ,2 4 1 ,4 7 4

Total C urrent
1 -5 Years
5-10 Years
Over 10 Years

Par Value

4 ,1 1 9 ,4 0 1

4 ,0 9 7 ,0 6 0

4 ,0 4 3 ,1 3 0

4,842.326
2,940,000

4,881,567
2,930,651

4,401,699
2,362,069

75,546

73,373

48,821

4,909,898
2,926,126
71,806

7 ,8 5 7 ,8 7 2

7 ,8 8 5 ,5 9 1

6 ,8 1 2 ,5 8 9

7 ,9 0 7 ,8 3 0

$ 1 2 ,0 9 9 ,3 4 6

$ 1 2 ,0 0 4 ,9 9 2

$ 1 0 ,9 0 9 ,6 4 9

$ 1 1 ,9 5 0 ,9 6 0

19

4. N et W o rth C e rtifica te s
The Garn-St. Germain Depository Institutions Act of 1982 authorized the FDIC to establish a net w orth
certificate program. Under the program, the FDIC w ill purchase from qualified institutions capital
instrum ents know n as Net W orth Certificates up through October 15, 1985. Each certificate issued w ill
generally rem ain outstanding for up to seven years from the date of issuance. As consideration for the
purchase of a qualified in stitu tio n 's Net W orth Certificates, the Corporation w ill issue its non-negotiable,
floating-rate prom issory notes of equal principal value. Both the FDIC's prom issory notes and the qualified
in stitu tio n 's Net W orth Certificates w ill pay interest quarterly at a rate tied to the average equivalent
coupon-issue yield on the U.S. Treasury's 52-W eek Bill auction held im m ediately prior to the beginning of
a calendar quarter plus one-half of one percent. As of December 3 1 ,1 9 8 2 , the follow ing qualified
institutio ns have assistance am ounting to $174,529,000 under the FDIC's net w orth certificate program:




The Lincoln Savings Bank
Emigrant Savings Bank
Roosevelt Savings Bank
East River Savings Bank
The Bowery Savings Bank
Inter-County Savings Bank
Auburn Savings Bank
The Seamen's Bank For Savings
Orange Savings Bank
Dry Dock Savings Bank
The Dime Savings Bank of New York
The W illiamsburgh Savings Bank
Elizabeth Savings Bank
Colonial M utual Savings Bank
Beneficial Mutual Savings Bank
Total

$ 14,933,000
28.294.000
3.416.000
9.408.000
58.700.000
487.000
913.000
12.980.000
2.426.000
17.478.000
5,000,000
18.377.000
181.000
476,000
1.460.000
$ 1 7 4 ,5 2 9 ,0 0 0

20

5. Allowance for Losses - Special Assistance
In accordance w ith an Assistance Agreem ent dated October 4, 1982, between the FDIC, the Oklahoma
National Bank and Trust Company, N .A , Oklahoma City, Oklahoma, and the First National Bank and Trust
Company of Oklahoma City, N.A., Oklahoma City, Oklahoma, the FDIC agreed to indem nify Oklahoma
National Bank and Trust Company, N A ., against any losses on existing loans and certain other claims
recognized over the next 1 2 m onths to the extent that such losses exceed $19.25 m illion. If losses are
recognized in excess of that level, the FDIC w ill be entitled to 100 percent of any recoveries on the
charged-off loans until the FDIC's outlays are fu lly recovered. As of December 3 1 ,1 9 8 2 , the FDIC had
recorded $3,227 ,000 of estim ated losses on $7,816,000 of unrecovered outlays.
6. Allowance for Losses - Assets in Liquidation
An analysis of the changes in the estim ated allowance for losses on assets in liquidation are described
below by account groups for the years ended December 3 1 ,1 9 8 2 and 1981. The provision of $48,009,000
charged to expense under depositors' claim s paid includes $46,000,000 of estimated losses from the
closing of Penn Square Bank, N.A., Oklahoma City, Oklahoma, Although all estimates are subject to
increases and decreases over tim e, the original reserve of $46,000,000, equal to approxim ately 20 percent
of the FDIC's total outlay, w ill in all likelihood be substantially increased as assets and claim s are
appraised or evaluated. This process is expected to be completed by mid-1 983.
1982
Depositors' claims paid:
Balance, beginning of period
Add (Subtract).
Provision charged to expense
Net adjustment to prior years
W rite-off at term ination
Balance; end of period
Loans and assets purchased:
Balance, beginning of period
Add (Subtract):
Provision charged to expense
Net adjustment to prior years
W rite-off at term ination
Balance, end of period
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
Total




1981

$ 11,285,000

S 18,346,000

48,009,000
(592,000*
(350,000)

325,000
(7,386,000)
0

58,352,000

11,285,000

154,114,000

183,962,000

61,958,000
(5,106.000)
____ (657,000)
210,309,000

7,422,000
(37,270,000)
0
154,114,000

344,846,000

36,734,000

21,464,000
(6,566,000)
0
359,744,000

364,105,000
(7,088,000)
(48,905,000)
344,846,000

8628,405,000

$510,245,000

21

7. A ssessm ent C redits Due Insured Banks
Contingent upon a legislatively specified ratio of the Corporation's Deposit Insurance Fund to estimated
insured bank deposits, the FDIC credits a legislatively authorized percentage (currently 60 percent) of its net
assessment income to insured banks. This credit is distributed, pro-rata, to each insured bank as a reduction of
the following year's assessments. Net assessment income is determined by gross assessments less adm inis­
trative operating expenses and expenses and losses related to insurance operations.
The Garn-St. Germain Depository Institutions Act of 1982 amended Section 7(dX1) of the Federal Deposit
Insurance Act and authorized the FDIC to include certain opportunity lending costs in the computation of the
net assessment income. The opportunity lending costs are the amounts by w hich the amount of interest
earned on each loan made by the Corporation under Section 13 of the Federal Deposit Insurance Act after
January 1, 1982, is less than the amount of interest the Corporation would have earned for the calendar year
if interest had been paid on the loans at a rate equal to the average current value of funds to the United States
Treasury for the calendar year.
The computation and distribution of net assessment income credits for calendar year 1982 and 1981 are as
follows:
1 9 82 Net Assessment Income Credits Due Insured Banks - July 1, 1983
Computation:
Gross Assessment Income - C.Y. 1982
$1,108,254,000
Less: Administrative Operating Expenses (Net)
$129,927,000
Merger Assistance Losses and Expenses less
Amortization and Accretion (Net)
628,562,000
Provision for Insurance Losses (Net)
126,436,000
Nonrecoverable Insurance Expenses (Net)
61,881,000
Opportunity Lending Costs (Net)
JJ)60 ,0 00
948,366,000
Net Assessment Income
$ 159,888.000
Distribution:
40% to the Deposit Insurance Fund
60% to Insured Banks

$ 63,955,000
95,933,000

$ 159,888,000

Assessment Credit Due Insured Banks:
Assessment Credit - C.Y. 1982
Assessment Credits - Prior Years
Total Credits Due, July 1, 1983

$ 95,933,000
_____ 248,000
S 96,181,000

Effective Rate of Assessment for C.Y 1982: 1/ 1 3 of 1% of Total Assessable Deposits
1981 Net Assessment Income Credits Due Insured Banks - J u l y l , 1982
Computation:
Gross Assessment Income - C.Y. 1981
Less: Administrative Operating Expenses (Net)
Merger Assistance Losses and Expenses less
Amortization and Accretion (Net)
Provision for Insurance Losses (Net)
Nonrecoverable Insurance Expenses (Net)
Net Assessment Income
Distribution:
40% to the Deposit Insurance Fund
60% to Insured Banks

$1,037,621,000
$127,185,000
382.200.000
320.412.000
12,771,000

$ 78,021,000
117,032,000

Assessment Credit Due Insured Banks:
Assessment Credit - C.Y. 1981
Assessment Credits - Prior Years
Total Credits Due, July 1, 1982

842,568,000
$ 195,053,000

$ 195,053,000
$ 117,032,000
103,000
$ 117,135,000

Effective Rate of Assessment for C.Y. 1981 1/ 1 4 of 1% of Total Assessable Deposits

8. A vaila b le Excess C redits
As of December 31, 1981, assessments receivable from insured banks reflected credit balances
representing excesses of incom e credits made available to insured banks on July 1, 1981, over
assessments due for the last six m onths of the calendar year. These excess credits continue to be
available to insured banks at the beginning of the next assessment period in the follow ing calendar year.
9. N otes Payable - F S tre e t P roperty
On June 30, 1980, the Corporation purchased property located at 1776 F Street, N.W., W ashington, D.C.
for a purchase price of $17,406,308, plus closing costs. The purchase price of the land was $2,378,880,
and the building purchase price am ounted to $1 5,130,221. This purchase was financed by cash outlays
am ounting to $3,102,793, the assum ption of the existing mortgage on the property am ounting to
$6,406,308, and the issuance of a prom issory note, m aturing over seven years, am ounting to $8,000,000.
As of December 31, 1982 and 1981, the current portions of the mortgage and of the promissory note
am ounted to $1,058,000 and $1,053,000, respectively.



22

10. L ia bilities Incurred in Failures o f Insured Banks
The Corporation's outstanding principal balances on liabilities incurred in failures of insured banks as of
December 3 1 ,1 9 8 2 and 1981 are as follow s:

Franklin Buildings, Inc.
First Interstate Bank of Washington, N.A.
Hudson City Savings Bank
Buffalo Savings Bank
Philadelphia Saving Fund Society
Total Current
B. Long-Term Notes:
Federal Reserve Bank of New York
Federal Home Loan Bank of New York
Franklin Buildings, Inc.
First Interstate Bank of Washington, N.A
Hudson City Savings Bank
Buffalo Savings Bank
Philadelphia Saving Fund Society
American Savings Bank
Total Long-Term
Total

1982
$142,667,000
3,000,000

1981
$142,667,000
0

1,053,000
1,340,000
4,000,000
12,724,000
16,000,000
1 8 0 ,7 8 4 ,0 0 0

1,573,000
0
0
0
i
0
1 4 4 ,2 4 0 ,0 0 0

142,666,000
5,000,000

285,333,000
0

5,103,000
21,024,000
24,000,000
192,232,000
204,125,000
30,000,000
6 2 4 ,1 5 0 ,0 0 0

9,647,000
0
0
0
0
0
2 9 4 ,9 8 0 ,0 0 0

$ 8 0 4 ,9 3 4 ,0 0 0

A. Current Notes:
Federal Reserve Bank of New York
Federal Home Loan Bank of New York

$ 4 3 9 ,2 2 0 ,0 0 0

11. Incom e M aintenan ce A greem ents
The income m aintenance agreements, including am ounts to cover overhead costs, are classified and pres­
ented on the financial statem ents at the present value of anticipated future payments. The present value
of current estimated payments includes that portion expected to be amortized to future value and paid w ithin
the next twelve months. The Corporation's liability balances at present value w ith operating insured banks as
of December 3 1 ,1 9 8 2 and 1981 are as follows:
A. Current
Metropolitan Savings Bank
Harlem Savings Bank
Union Dime Savings Bank
Marquette National Bank
First Interstate Bank of Washington, N.A
Buffalo Savings Bank
Philadelphia Saving Fund Society
Total Current

1982
$ 15,025,000
6,460,000
0
9,489,000
254,000
60,743,000
7,992,000
9 9 ,9 6 3 .0 0 0

1981
$ 31,483,000
13,144,000
30,790,000
0
0
0
0
7 5 ,4 1 7 .0 0 0

B. Long-Term

Total

58,333,000
17,183,000
0
(6,411,000)
2,720,000
67,280,000
37,527,000
1 7 6 ,6 3 2 ,0 0 0

160,391,000
56,831,000
86,903,000
0
0
0
' . ih
, o
3 0 4 .1 2 5 .0 0 0

$ 2 7 6 ,5 9 5 ,0 0 0

Metropolitan Savings Bank
Harlem Savings Bank
Union Dime Savings Bank
Marquette National Bank
First Interstate Bank of Washington, N.A.
Buffalo Savings Bank
Philadelphia Saving Fund Society
Total Long-Term

$ 3 7 9 ,5 4 2 ,0 0 0

12. Estim ated Losses From C orporation Litigation
Estimated losses from Corporation litigation of $3,000,000 represents estimates for potential losses in
three out of ten legal actions involving a total of approximately $44,835,000 of claims, counterclaim s, and
possible indem nity exposures against the FDIC in its corporate capacity as of December 31, 1982.
13. Lease C o m m itm e n ts
Rent for office prem ises charged to expense was $5,695,000 (1982) and $5,771,000 (1981). M inim um
rentals for each of the next five years and foF subsequent years thereafter are as follows:
1983
55,921,000

1984
$5,247,000

1985
$4,548,000

1986
$4,474,000

1987
$4,331,000

1988/thereafter
$4,391,000

Most office premise lease agreem ents provide for increase in basic rentals resulting from increased prop­
erty taxes and m aintenance expense.




23

COMPTROLLER GENERAL OF THE UNITED STATES
WASHINGTON D.C. 20548

B-211215

A pril 28, 1983

To the C h a i r m a n , B o a r d of D i r e c t o r s
Federal Deposit Insurance Corporation
We have e x a m i n e d the s t a t e m e n t of f i n a n c i a l p o s i t i o n of the
Fe 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 as of D e c e m b e r 31, 1982, and
the r e l a t e d s t a t e m e n t s of income and the d e p o s i t i nsurance fund and
c h a n g e s in f i n a n c i a l p o s i t i o n for the year then ended.
Our e x a m i ­
n a t i o n w a s m a d e in a c c o r d a n c e w i t h g e n e r a l l y a c c e p t e d g o v e r n m e n t
a u d i t i n g s t a n d a r d s and, a c c o r d i n g l y , included such tests of the a c ­
c o u n t i n g r e c o r d s and such o t h e r a u d i t i n g p r o c e d u r e s as we c o n s i d e r e d
n e c e s s a r y in the c i r c u m s t a n c e s .
As a r e s u l t of the w o r k p e r f o r m e d
d u r i n g o u r e x a m i n a t i o n of the fina n c i a l s t a tements, we have also is­
sued s e p a r a t e r e p o r t s , d a t e d A p ril 28, 1983, on c o m p l i a n c e w i t h laws
and r e g u l a t i o n s , and i n t ernal a c c o u n t i n g c ontrols.
In o u r o p i n i o n , the f i n a n c i a l s t a t e m e n t s r e f e r r e d to above p r e ­
sent f a i r l y the f i n a n c i a l p o s i t i o n of the Fede r a l D e p o s i t I nsurance
C o r p o r a t i o n as of D e c e m b e r 31, 1982, and the r e s u l t s of its o p e r ­
a ti o n s and the c h a n g e s in its fina n c i a l p o s i t i o n for the y e a r then
ended, in c o n f o r m i t y w i t h g e n e r a l l y a c c e p t e d a c c o u n t i n g p r i n c i p l e s
a p p l i e d on a b a s i s c o n s i s t e n t w i t h that of the p r e c e d i n g year.
The
f i n a n c i a l s t a t e m e n t s of the 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
for the y e a r e n d e d D e c e m b e r 31, 1981, were not a u d i t e d and, a c c o r d ­
ingly, no o p i n i o n has b e e n e x p r e s s e d on them.




Comptroller General
of the U n i t e d S t ates







Legislation
and
Regulations

26

Legislation — 1982
Garn-St Germain
Depository Institutions Act
o f 1982
Public Law 97-320, approved
October 15, 1982, is
comprehensive legislation
making a number of major
changes in federal laws affecting
financial institutions. It is an
essential first step toward an
ultimate objective of a stronger,
more rational financial system.
Following is a brief summary of
provisions in the Act.
Title I: Deposit Insurance
Flexibility Act—expands FDIC’s
power to assist troubled banks,
authorizes certain acquisitions on
an interstate or cross-industry
basis, allows the Federal Home
Loan Bank Board to charter
savings banks that retain their
FDIC insurance, and permits the
FDIC to convert a state mutual
savings bank into a federal stock
savings bank under certain
circumstances.
Title II: Net Worth Certificate
Act—authorizes the Federal
Savings and Loan Insurance
Corporation and the FDIC to
administer a program for
qualified institutions to issue
their own capital instruments to
the federal insurance agencies,
and determines the treatment of
net worth certificates and
common stock under certain
circumstances.




Title III: Thrift Institutions
Restructuring—increases powers
for federally chartered savings
and loan associations and
savings banks, directs the
Depository Institutions
Deregulation Committee to
create an account competitive
with money market mutual funds,
sets January 1,1984 as the end
of the time period for phasing out
the interest rate differential, and
federally preempts state laws and
judicial decisions that restrict
enforcement of due-on-sale
clauses in real property loans
except those in force during a
specified window period.
Title IV: Provisions Relating to
National and Member Banks—
increases the national bank
lending limits for unsecured
loans to one borrower and for
loans fully secured by marketable
collateral, completely revises
Section 23A of the Federal
Reserve Act, exempts all
depository institutions with
deposits below a threshold
amount from Federal Reserve
required reserves, authorizes the
bank supervisory agencies to set
a new threshold figure above
which loans to officers, directors
and 10 percent shareholds must
be approved by a bank’s board of
directors, gives the bank
supervisory agencies the power
to remove certain management
officials who violate the
Management Interlocks Act,
extends the ban on granting

preferential loans to insiders of
banks that maintain
correspondent balances with the
lending bank, and allows federal
banking agencies to issue
regulations on reporting and
public disclosure of information
on loans to a bank’s insiders.
Title VI: Insurance Activities of
Bank Holding Companies—
prohibits certain bank holding
companies from providing
insurance as a principal agent or
broker.
Title V: Amendments to the
Federal Credit Union Act—makes
a large number of credit union
amendments to give credit
unions greater flexibility and
authority in daily operations,
changes and clarifies certain real
estate provisions of the Federal
Credit Union Act, and grants
credit unions power to invest in
state and local government
obligations and to issue
mortgage-backed securities.
Title VII: Miscellaneous
Amendments—allows financial
institutions to offer NOW
accounts and share draft
accounts to state and local
governments, and directs the
FDIC, the FSLIC and the
National Credit Union
Administration to study the
feasibility of providing excess
deposit insurance coverage and
the possibility of allowing private
insurance or reinsurance of such
coverage.

27

Rules and
Regulations —1982
Delegations o f Authority
(Part 303)
Effective March 8, 1982, FDIC
delegated to its Board of Review
the authority to act on requests
for relief from reimbursement for
certain violations of the Truth in
Lending Act, as amended,
eliminating the need for Board
action in each case, and creating
a uniform procedure for handling
such requests.
Effective March 26, 1982, FDIC’s
Board of Directors under Part
303 delegated to the Director of
its Division of Bank Supervision
and to its regional directors,
when delineated criteria are met,
increased authority to approve,
but not to deny, deposit
insurance applications.
Effective July 2, 1982, delegation
of authority to approve the
issuance of subordinated debt
pursuant to § 303.11(a)(3) was
eliminated in light of the removal
of §329.10(b)(3)(vi).
Effective November 30, 1982,
FDIC delegated authority to its
Board of Review, the Director of
the Division of Bank Supervision
and the Deputy General Counsel
for Open Bank Regulation and
Supervision, and where
confirmed in writing, to the
appropriate regional director or
regional counsel or both, to act
on certain enforcement matters.

Rules o f Practice and
Procedure (Part 308)
Effective November 30, 1982, in
accordance with changes made
to § 303.13, the delegation of
authority to act on certain
enforcement matters, Part 308
was amended to correctly reflect
the delegation. Authority was
also delegated to the Executive
Secretary to act on certain



procedural motions regarding the
conduct of hearings. In addition,
minor corrective amendments
were also made to Part 308.

Disclosure of Information
(Part 309)
FDIC amended its regulation on
the disclosure of information,
effective June 23, 1982, to permit
insured nonmember banks to
directly disclose copies of FDIC
examination reports to their
parent holding companies and
individual majority shareholders
without prior approval by FDIC if
certain specific conditions are
met. This amendment eliminates
the FDIC’s role in processing
disclosure requests.
Effective October 7, 1982, FDIC
amended its regulation on the
disclosure of information under
the Freedom of Information Act
to revise the fee schedule and to
delegate authority to the
Executive Secretary to decide on
requests for a waiver or reduction
of fees. Authority also was
delegated to the General
Counsel to decide appeals of
denials of initial information.

Assessments (Part 327)
Effective January 4, 1982, FDIC
amended Part 327 of its
regulations pertaining to
insurance assessments on
deposits of insured banks to
require insured banks to pay
interest on delinquent
assessment payments if
delinquencies are not caused by
FDIC, and to require FDIC to pay
interest on assessment
overpayments by insured banks.
The amendment insures that
appropriate compensation is
provided to insured banks and to
the FDIC for loss of the
immediate use of their funds
when delinquent payments or
overpayments occur in the
assessment process.

Interest on Deposits
(Part 329)
Effective July 29, 1982, three sets
of amendments were made to
Part 329. The first was necessary
to conform Part 329 to the
International Banking Facility
Deposit Insurance Act. Changes
relating to IBF's consisted of the
following: (1) amend § 329.1 (a) to
remove “ international banking
facility time deposit” from the list
of what is not a demand deposit,
as Congress has legislated “ IBF
time deposits” not to be deposits
under the Federal Deposit
Insurance Act; (2) amend
§ 329.1(b) to remove “ IBF time
deposits” from the definition of
time deposit; (3) amend § 329.1 (i)
to give “ IBF time deposits” the
same definition given the term by
the Board of Governors of the
Federal Reserve System in
§204.8(a)(2) of its Regulation D,
that they are not deposits despite
their inconsistent nomenclature;
(4) amend § 329.10(a) to include
“ IBF time deposits” in the
definition of “obligations other
than deposits” which renders
“ IBF time deposits” subject to the
provisions of Part 329 except
where otherwise noted.
The second amendment was
necessary to eliminate an
inconsistency between
provisions of Part 329 providing
for approval of certain
nondeposit obligations as
additions to a bank’s capital and
a policy statement on capital
adequacy issued by the
Corporation, which provides that
nondeposit obligations are not to
be considered part of the bank’s
capital account. This second
amendment reflects the tenor of
the policy statement.
The third set was necessary to
correct a discrepancy within Part
329 so that it will be inapplicable
to obligations other than
deposits, as well as to deposits,
payable only at an office of an

28

insured nonmember bank
located outside of the states of
the United States and the District
of Columbia.
On July 29, 1982, FDIC amended
the grandfather provision of
§ 329.10(b)(2) to allow insured
State nonmember banks to
continue to offer repurchase
agreements in denominations of
less than $100,000 with maturities
of 90 days or more.
On August 16, 1982, FDIC
amended § 329.10(b)(2)
eliminating the prohibition
against automatic renewal of
retail repurchase agreements
(“ repos” or “ RPs”) to encourage
competitive fairness to banks.
On September 1, 1982, FDIC
amended § 329.1 to conform with
the Depository Institutions
Deregulation Committee’s
(“ DIDC’s”) regulation allowing
seven to thirty-one day deposit
instruments, thus creating an
exception to the requirement that
time deposits have a minimum
maturity of fourteen days.
On September 8, 1982,
§ 329.10(b) (3) (ii) was amended by
FDIC to eliminate the seven-year
weighted average maturity
provision for mandatory
convertible instruments and
obligations of state nonmember
banks from the weighted average
and minimum maturity
requirements to relieve
mandatory interest rate ceilings
in Part 329.




Unsafe or Unsound Banking
Practices (Part 337)

Management Official
Interlocks (Part 348)

Effective October 22, 1982, an
amendment responsive to a
provision of the Garn-St Germain
Depository Institutions Act of
1982 was made to Part 337. This
amendment reestablished a
threshold amount of $25,000 on
an interim basis for extensions of
credit to bank insiders that would
require prior approval by the
bank’s board of directors. It also
clarifies the extent to which
nonmember banks are subject to
Federal Reserve Board
Regulation O (12 C.F.R.
Part 215).

FDIC amended Part 348 of its
regulation on management
official interlocks on May 24,
1982, to clearly provide an
exception for interlocks between
two depository institutions when
one of the institutions faces
conditions that endanger its
safety or soundness and if one of
the institutions is state chartered
and state supervised.

Registration of Securities
Transfer Agents
(Part 341)
On September 30, 1982, FDIC
amended Part 341, its securities
transfer agent registration rule, to
add a section concerning
deregistration of transfer agents
and a section containing
definitions of terms which may
not be familiar to registrants and
the public. The amendment
increases to 60 days the time
allowed to amend registration
after a change in circumstances
and adopts a revised format for
the part. These changes integrate
the regulations with a simplified
form TA-1 for initial registration
of transfer agents and for
amendments to transfer agent
registration.

Effective October 26, 1982, FDIC
amended its regulations under
Part 348 implementing the
Depository Institution
Management Interlocks Act to
reflect recent changes in the law.
Section 348.6 was amended to
delete any reference to changes
in circumstances that will cause
early termination of a
grandfathered interlock. Section
348.5 was amended to permit a
management official whose
service in an interlocking
relationship is grandfathered
under the Act to continue such
service for the ten-year
grandfather period provided in
the Act, notwithstanding an
earlier change in circumstances.
Another change in § 348.4
permits a management official of
a depository organization and a
non-depository organization to
continue said service, despite the
prohibitions of the Act, after the
non-depository organization
becomes a diversified savings
and loan holding company.




30

Banks Closed Because of
Financial Difficulties:
FDIC Income, Disburse­
ments, and Losses
Table 122 — Number and depos­
its of banks closed because of
financial difficulties, 1934-1982
Table 123 — Insured banks
requiring disbursements by the
Federal Deposit Insurance Cor­
poration during 1982
Table 124 — Depositors, depos­
its, and disbursements in failed
banks requiring disbursements
by the Federal Deposit Insurance
Corporation, 1934-1982
Banks grouped by class of
bank, year of deposit payoff or
deposit assumption, amount of
deposits, and State.
Table 125 — Recoveries and
losses by the Federal Deposit
Insurance Corporation on princi­
pal disbursements for protection
of depositors, 1934-1982
Table 126 — Analysis of disburse­
ments, recoveries, and losses in
deposit insurance transactions,
January 1, 1934-December 31,
1982
Table 127 — Income and
expenses, Federal Deposit Insur­
ance Corporation, by year, from
beginning of operations, Sep­




tember 11,1933, to December 31,
1982
Table 128 — Protectioon of de­
positors of failed banks requiring
disbursements by the Federal
Deposit Insurance Corporation,
1934-1982
Table 129 — Insured deposits
and the deposit insurance fund,
1934-1982

Deposit insurance
disbursements
Disbursements by the Federal
Deposit Insurance Corporation to
protect depositors are made
when the insured deposits of
banks in financial difficulties are
paid off, or when the deposits of
a failing bank are assumed by
another insured bank with the
financial aid of the Corporation.
In deposit payoff cases, the dis­
bursement is the amount paid by
the Corporation on insured dep­
osits. In deposit assumption
cases, the principal disbursement
is the amount loaned to failing
banks, or the price paid for
assets purchased from them;
additional disbursements are
made in those cases as advances
for protection of assets in pro­
cess of liquidation and for liqui­
dation expenses. In deposit
assumption cases, the Corpora­

tion also may purchase assets or
guarantee an insured bank
against loss by reason of its
assuming the liabilities and pur­
chasing the assets of an open or
closed insured bank.
Under its section 13(c) authority,
the Corporation has made dis­
bursements to five operating
banks. The amounts of these
disbursements are included in
table 126, but are not included in
tables 124 and 125.

Noninsured bank failures
Statistics in this report on failures
of noninsured banks are com­
piled from information obtained
from State banking departments,
field supervisory officials, and
other sources. The Corporation
received no reports of non in­
sured bank closures due to
financial difficulties in 1982.
For detailed data regarding non­
insured banks that suspended in
the years 1934-1962, see the
Annual Report for 1963, pp. 2741. For 1963-1981, 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, 1982.

31
Table 122. NUMBER AND DEPOSITS OF BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES, 1934-1982
Number

Deposits (in thousands of dollars)
Insured

Year
Total

Non­
insured1

Total

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

764

136

628

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 ...................
1980 ...................
1 9 8 1 ...................
1982 ...................

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
10
10
42

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
10
10
42

Total

1
1
4
1
3
1
1
2
1
1
5
1
4
2
1
4
1

1
2

1
1

Without
disbursements
by FDIC2
8

Insured
With
disbursements
by FDIC3

Total

620

20,143,213

143.500

19,999,713

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

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
55,229
132,058
99,784
971,296
1,575,832
340,574
865,659
205,208
854,154
110,696
216,300
3.826,022
9,908,379

35,365
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
54,806
132,058
20,480
971,296
1,575,832
339,574
864,859
205,208
854,154
110,696
216,300
3,826,022
9,908,379

2
7
5
7
4
3
9
7
6
1
6
4
13
16
6
7
10
10
10
42

Non­
insured1

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

423
79,304

1,000
800

Total

Without
disbursements
by FDIC2
41,147
85
328

1,190

26,449

10,084

With
disbursement
by FDIC3
19,958.566
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

3,011
23,444
23,438
43,861
103,523
10,878
22,524
40,134
54,806
132,058
20,480
971,296
1,575,832
339,574
864,859
205,208
854,154
110,696
216,300
3,826,022
9,908,379

'For information regarding each of these banks, see table 22 in the 1963 Annual Report (1963 and prior years), and explanatory notes to tables regarding banks closed because of financial
difficulties in subsequent annual reports. One noninsured bank placed in receivership in 1934, with no deposits at time of closing, is omitted (see table 22, note 9). Deposits are unavailable
for seven banks.
2For information regarding these cases, see table 23 of the Annual Report for 1963.
3For information regarding each bank, see the Annual Report for 1958, pp. 48-83 and pp. 98-127, and tables regarding deposit insurance disbursements in subsequent annual reports.
Deposits are adjusted as of December 31, 1982.




Case
Number

Name and location

Deposit
payoff
319

Class |
of bank

Number of
depositors
or accounts

Date of closing or
deposit assumption

March 1, 1982

March 2, 1982

2,819,040 | Federal Deposit Insurance
Corporation

April 30, 1982

May 3, 1982

6,779,531

| Federal Deposit Insurance
Corporation

June 23, 1982

June 26, 1982

6,126,921

| Federal Deposit Insurance
Corporation

July 5, 1982

July 6, 1982

September 3, 1982

September 7, 1982

23,304,869 | Federal Deposit Insurance
Corporation

October 8, 1982

October 12, 1982

12,669,400 | Federal Deposit Insurance
Corporation

November 19, 1982

November 22, 1982

The Bank of Woodson
Woodson, Texas
Carroll County Bank
Huntingdon, Tennessee
Citizens Bank
Tillar, Arkansas
Penn Square Bank, N.A.
Oklahoma City, Oklahoma
Hohenwald National Bank
Hohenwald, Tennessee
Tri-State Bank
Markham, Illinois
Ranchlander National Bank
Melvin, Texas

Deposit
assump­
tion
I Western New York Savings Bank*
267
Buffalo, New York

233,000
3,905

The First National Bank and Trust Company
of Tuscola
| Tuscola, Illinois

S

January 15, 1982
February 6, 1982

227,990,539 j Federal Deposit Insurance
Corporation

2,526,728 | Federal Deposit Insurance
Corporation

30 500,000

Buffalo Savings Bank
Buffalo, New York

7,210,000

First National Bank of Douglas
County
Tuscola, Illinois
Great American Bank of
Tampa
Tampa, Florida

February 12, 1982

Metropolitan Bank and Trust Company
Tampa, Florida

February 20, 1982

I

Marquette National Bank of
Minneapolis
Minneapolis, Minnesota

February 20, 1982

Farmers and Mechanics Savings Bank of
Minneapolis
Minneapolis, Minnesota

|

First-Citizens National Bank of
Dyersburg
Dyersburg, Tennessee

Bank of Yorkville
Yorkville, Tennessee
March 11, 1982

First Interstate Bank of
Washington, N.A.
Seattle, Washington

March 11, 1982

Hudson City Savings Bank
Jersey City, New Jersey

Fidelity Mutual Savings Bank*
| Spokane, Washington
I United States Savings Bank of Newark, New I

NM

Jersey*
Newark, New Jersey
I

NM

Western Saving Fund Society of
Philadelphia*
Haverford, Pennsylvania

I

NM

491,057

March 26, 1982

420,000

April 2, 1982

11,031

The New York Bank for Savings*
New York, New York

April 2, 1982

The First National Bank in Humboldt
Humboldt, Iowa

N

Aquia Bank and Trust Company
Stafford, Virginia

SM

4,769

April 3, 1982

N

5,354

April 16, 1982

NM

3,097

April 29, 1982

Coles County National Bank of Charleston
Charleston, Illinois

N

6,910

May 1, T982

Community Bank of Washtenaw
Ypsilanti, Michigan

276

MN

7,825

May 15, 1982

NM

2,000

June 12, 1982

SM

6,600

June 25, 1982

National Security Bank
Tyler, Texas
Pacific Coast Bank
San Diego, Calitomia

282

Banco Regional
Bayamon, Puerto Rico

283

Farmers State Bank of Lewistown
Lewistown, Illinois

•Merged with financial assistance from FDIC into operating banks to prevent probable failure.




461,907,077

Buffalo Savings Bank
Buffalo, New York

425,536,947

Philadelphia Saving Fund
Society
Horsham Township,
Pennsylvania

10,616,748

Hawkeye Bank and Trust
Company
Humboldt, Iowa

9,770,100

Peoples Bank of Danville
Danville, Virginia

4,660,251

Bank of Tyler, N.A.
Tyler, Texas

7,030,000

Commonwealth Bank
Hawthorne, California

11,596,428

Eagle Bank of Charleston
Charleston, Illinois

11,122,587

Michigan National Bank-Ann
Arbor
Ann Arbor, Michigan

17,381,694

Citibank N.A.
New York, New York

21,246,268

Farmers State Bank of Fulton
County
Lewistown, Illinois

Table 123.

bythe federaldepos|t|Nsurance
_________ Name and location

Class
of bank

I The Belle-Bland Bank'
Bland, Missouri

c o r p o r a t i o n

d u r | n g

ig g 2

-CONTINUED

Number of
depositors
or accounts

Date of closing or
deposit assumption

1,835

First payment to
depositors or
disbursements by FDIC

July 2, 1982

FDIC
disburse­
ments

Receiver or liquidating
agent or
assuming bank

1,754,147

The Bowie County State Bank
Hooks, Texas

NM

5,357

July 27, 1982

Guaranty Bond State Bank
Redwater, Texas

NM

5,088

July 27, 1982

Unity Bank and Trust Company
Boston, Massachusetts

NM

Mount Pleasant Bank and Trust Company
Mount Pleasant, Iowa

NM

11,498,400 I First Bank and Trust Company
I Hooks, Texas
11,640,300

7,200

July 30, 1982
6,700,000

7,900

August 6, 1982

First Security Bank of North Arkansas
Horseshoe Bend, Arkansas

28,132

NM

3,800

NM

4,408

N

1,949

August 27, 1982

United Mutual Savings Bank*
New York, New York

NM

The Bank of Melbourne
Melbourne, Arkansas

August 27, 1982

Western National Bank
Santa Ana, California

Mercantile Texas Corporation
Dallas, Texas

August 27, 1982

Security Bank and Trust Company
Cairo, Illinois

Hawkeye Bank and Trust
Company
Mount Pleasant, Iowa

50,000,000

August 6, 1982

7,410,406

N

Mechanics Savings Bank*
Elmira, New York

NM

Cedar Bluff Bank
Cedar Bluff, Alabama

NM

The First National Bank of South Charleston
South Charleston, West Virginia

N

Texas Bank of Amarillo
Amarillo, Texas

NM

Bank of Quitman
Quitman, Arkansas

NM

NM

NM

11,403,968
851,815
16,952,276
2,464,463
278,687
9,331,532
29.955.000
20.895.000

740,361
971,940
917,606
15,366,980
1,151,095
3,905,176

25,675,962
2,175,241
30,888,039
7,711,223
690,180
27,975,167
108.732.000
302.775.000

Other
securities

30,394
254,839
505,136
33,057,744
2,188,378
1 , 100,000
47,138

Loans, dis­
counts, and
overdrafts

2,086,086
5,813,980
4,493,213
414,875,683
23,519,609
8,615,480
2,616,435

179,028,477
771,237,976
5,501,631
9,135,244
48,786,042
145,075,046
179,700,126
765.968,104
37,231
5,416,528
202,728,317
416,977,666
79,713,000
420,321,000
623,611,000 2,355,531,000

157.142
23,103

October 3, 1982

20,778

42,447
240,126
76,220
5,283,339
601,228
439,946
142,894

21,656
483,755
399,290
198,467
141,812
67,319

247,163
103,537
7,591,842
573,787
11,882,484
110,514
10,671
14,602,467 3,650.271
4,275,000 5.615.000
20,317,000 1.838.000

Total

Deposits

11,494
69,235
34,350
23,236,959
1,014,004
327,533
540,713

3,168,192
8,235,912
6,722,599
516,799.497
30,379,581
16,281,082
3,830,804

3,439,985
8,108,342
6,264,397
470,445,835
26,919,093
16,034,328
3,645,040

First National Bank of
Cleburne County
Quitman, Arkansas
Security Bank of Bollinger
County
Lutesviile, Missouri

6,278,823

Other assets

First Bank of Amarillo
Amarillo, Texas

8,955,359

December 16, 1982

Other real
estate

Charleston National Bank
Charleston, West Virginia

5,998,964

December 10, 1982

2,300

Union State Bank
[ Cedar Bluff, Alabama

5,765,441

November 12, 1982

4,400

Banking
house, furni­
ture, and
fixtures

12,500,000

November 5, 1982

6,126

Syracuse Savings Bank
Syracuse, New York

7,462,864

November 5, 1982

3,900

The First National Bank and
Trust Company of
Oklahoma City
Oklahoma City. Oklahoma

2,500,000

November 2, 1982

10,016

! American Savings Bank
New York, New York

8,185,815

October 15, 1982

4,300

| Commonwealth Bank
Hawthorne, California

30,906,156

September 24, 1982

'Merged with financial assistance from FDIC into operating banks to prevent probable failure.




First Bank and Trust Company
Cairo, Illinois

16,232,018

Oklahoma National Bank and Trust
Company*
Oklahoma City, Oklahoma

235,754
402,037
296,784
24,780,325
1,763,455
1.825,628
483,624

The Boston Bank of
Commerce
Boston, Massachusetts

10,167,300

N

U.S. Govern­
ment
obligations

First Bank and Trust Company
Redwater, Texas

14,285,271

Abilene National Bank*
Abilene, Texas

Cash and
due from
banks

Eagle Bank of Gasconade
County
Bland, Missouri

First State Bank of Mooreland
Mooreland, Oklahoma

Other
liabilities

30,104
194,746

100,000
11,929.353
1,336,665
6,576
41,870

34,617,708 1,021,964,091
890,159,730 101,532,156
443,398
18,458,029
15,207,374
3,561,142
11,547,821
261,414,853
171,660,989
83,033,065
12,634,433
980,360.833
789,387.775 155,804,041
13,193
6,557,004
6,621,157
499
13,791,175
689,056,595
550,485,712 116,402,499
26.115.000
674,726.000
578,366,000
8 8 , 201,000
77.992.000 3,402,959,000
2,779,664.000 585,970,000

Capital
stock

300.000
286,990
120,625
10 , 000,000
210.000
686,275
85.600

220,000
9,440,000
63,110

Other
capital
accounts

(601,897)
(354,166)
237,577
24,424,309
1,913,823
(446,097)
58,294

30,272,205
(530,487)
(2,719,201)
35,169,017
(127,762)
22,168,384
8,159,000
37,325,000

34
Table 123.

INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION DURING 1982-CONTINUED

Case Num­
ber

Cash and
due from
banks

275
276
277
278
279
280
281
282
283
284
285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301

24.955.000
3,182,912
1,282,921
992,611
1,462,019
1,119,714
1,540,410
2,036,523
882,266
236,659
1,287,883
957,812
550,917
2,741,127
21.871.000
290,823
946,372
1,934,505
48.582.000
9.853.000
3.439.000
1,230,431
1,123,928
926,104
3,273,435
679,253
733,371

U.S. Govern­
ment obliga­
tions
79.304.000
18,239,472
1,153,446
2,443,718
227,340
1,796,188

1,399,798
1,144,251
728,605
442,703
3,208,355
4,191,651
3,872,000
474,135
1,199,880
200,000
48.925.000
11.447.000
10.750.000
1,109,104
1,349,563
1,014,428
200,223
1,217,058
1,919,664




Other securi­
ties

Loans, dis­
counts, and
overdrafts

Banking
house, furni­
ture, and fix­
tures

14,935,000
560,642,000 1,399,616,000
2,971,771
27,085,064
1,162,873
602,486
9,230,971
17,750
566,017
3,391,803
1,600,000
7,611,774
374,772
15,578,915
3,452,212
688,364
14,898,257
768,277
431,678
14,114,899
1,445,123
316.490
21,267,866
1,830,585
22,570
2,387,809
68,705
136,863
10,803,272
1,242,132
248,435
11,716,666
962,865
177,873
6,032,307
1,138,081
259,140
20,074,684
7,875
3.357.000
354.325.000
42.456.000
413,240
10,819,024
705,451
142.490
8,032,332
325.000
1,097,562
17,322,310
77,600
8.363.000
591.213.000
113,329,000
3.036.000
104.157.000
15.850.000
804,000
34,272,000
4,769,000
377,030
9,467,455
1,194,891
1,327,185
8,353,235
10,893,886
160,088
7,587,702
200.000
139,331
8,644,804
5,013,604
285,347
9,616,343
2,959,718
182,386
6,889,886
45,000

.

Other real
estate

Other liabili­
ties

Deposits
Total
Other assets
130,696
33.248.000 2,112,801,000 1,956,772,000
101,000
1,460,637
48,666,481
54,409,786
1,433,869
333,825
496,778
12,743,781
13,596,883
49,706
1,259,603
120,145
8,958,980
9,292,915
162,500
136,266
355,894
10,063,687
10,997,599
1,632,547
63,919
3.870.000
18,569,130
22,812,982
391,725
99,456
2,553,553
16,769,296
19,641,942
1,189,078
557,556
2,227,250
15,122,704
18,861,465
338,594
494,648
391,207
27,291,025
28,849,031
2,923,115
228,911
149,573
3,933,896
4,272,275
351,021
61,260
13,663,598
14,629,439
311,283
119,401
539,476
12,900,749
14,793,665
390,960
74,224
1,041,740
10,488,147
11,245,222
79,353
58,336
373,484
25,777,449
28,322,134
1,019,203
28.454
310.105.000 107,976,000
446.042.000
18.749.000
1,412,000
866,297
11,874,966
13,375,425
606,297
66.455
11,014,592
11,705,896
457,475
602,347
91,941
20,681,823
22,698,876
1,902,535
164,364
41.411.000
777.890.000
832.858.000
121,000 22.325.000
7.277.000
133.586.000
149.949.000
5,169,000
437.000
4.222.000
50,608,000
55,254,000
989,000
231.000
212,755
13,053,224
14,002,242
343,740
279,591
26,934,894
26,811,147
2,447,677
1,315,673
255,503
9,187,855
10,548,558
660,236
2,500
16,798,386
17,565,228
126,788
167,043
406,672
14,536,095
15,308,572
343,393
207,460
344,346
9,917,247
10,855,237
1,084,930

Capital
stock
1.340.000
250.000
770.000
847,177
350.000
916,500
1,511,511
400.000
50,000
200.000
200,000
2.180.000
340.000
2,620,000
280.000
300.000
2,585,310
1,500,000
597.000
1,000,000
300.000
100.000
200,000
250,000

Other
capital ac­
counts
2,942,668
106,324
(556,210)
(269,159)
23,852
(597,407)
766.799
138,806
765,841
1,153,440
(2,464,665)
1,831,201
25.341.000
354,162
391,304
(660,198)
13.557.000
7,586,000
424,000
139,263
(1,123,747)
805,200
664,342
165,805
343,644

35

DEPOSITORS DEPOSITS. .N O DISBURSEMENTS IN FAILED BANKS R E D W IN G DISBURSEMENTS B , THE
rn n p n R A T IO N . 1934-1982

PAYOFF OB

_______ _
ll( n T ir ,M a m o i 1NT
DEPOSIT ASSUMPTION, AMOUNT OF DEPOSIT
DEPOSITS, AND STATE

Number of depositors1

Number of banks

Disbursements by FDIC1
(in thousands of dollars)

Deposits1
(in thousands of dollars)

Advances and
expenses2

Principal disbursements

Assump­
tion
cases

| Payoff
Total cases

Classification

620

All banks
Class of bank
N a tio n a l....................
State member F.R.S.
Nonmember F.R.S.

12
267

689,206

5,853,635 I 19,958,566

77
27
19710

40

9
25
69
75
74
60
43
15

1,675,669
482,001
4,385,071

141.229
91,650
456,327

1,534,440
390,451
3,928,744

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
7

10
10
10
42

I.

S

■ a s s 's . in s s
— i. u
““ I

.

7,649,628 II 675,648

X

3,784,288
645,734
14,443,620

1,968
9,091
11,241
14,960
10,296
32.738
5,657
14,730
1,816
6,637
456

6,503
4,702
1,163
4,156
2,593
6,930
8,936
23,444
23,438
42,889
774
10,878
9,012 |
33,474
74,511 !
20,480 I
25,795
39,902
18,859
108
1,286
12,631
16,454
47,499
538,917

S

K

973,980

13,412

435,245

| 332,846
34,028
1308,774

183,804
451,280
338,896

5,346
1,696
6,370

213,794
31,224
190,227

3,516,650
485,308
3,647,670

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
I,835
4,765

4,229
16,267
18,389
49,388
125,034
136,773
14,987
17,369 I
5,8
1,4591
5,695
347
7,040
10,674
5,475
5,513
3,408
3,170
18,262
998
5,450
6,628
4,084

941
6,026
7,735
12,365
9,092
26,196
4,895
12,278
1,612
5,500
404

4,438
2.795
1,031
2.796
I,835
4,765

6,201

972
102,749
22,524
31,122
21,3321
57,547
945,501
1,575,832
299,672
846,000
205,100
852,868
98,065
199,846
3,778,523
9,369,462

- -

« ' —

11
200

8
7

473
7,997
' 5,586
30,021 I
20,005 I
108,373

’ 7,596
29,329
53,790
16,255
16,782
25,992
II,4 6 2
818
9,959
13,882
35,516
290,659

“ “

166
524
127
195
428
145
665
51

106

23()

19,172
13,744
10,958
735
8,097

272
934
905
4,902
17,603
17,237
1,479
1,076
72
37
96
393

6,201

19.172
13,744
II,4 3 1
8,732
8,097
5,586
37,617
49,334
162,163
16,255
432,654
2,261,804*
302,976
559,269
21,825
498,276
79,973
133,868
871,994
1,845,755

43
108
67
103
93
162
89
50
38
53
9

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
66C

20
38
51 I
82 I
154
349
599
640
35
242

31

123
I,61 3
' 1,114
4,481
1,988
II,5 7 8

301
702 I
811
398
1,677

1,158
415,872
171,532
2,261,804
28,308
276,984 ' 1,4471
1,415 | 38,996
547,807
3,637
21,825
33,194
"5 0
497,458
6,458
299
70,015
8,647
480
119,986
67,670
438
836,478
7,197
2,176
1,555,096

“

"

“

“

«

^ prjce a( termination of liquidation.

«

tZ Z H —

merged -

financial

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




Total

| Assump­
tion
cases6

» < *« . - « •

inclu d es estimated additional disbursements m actwe

?

629,253
44,023
411,648

6'

6

,o December 31. » » 2

. W

4,413,541
689,757
14,855,268

Payoff
cases5

Assump­
tion
cases4

Payoff

1,084,924 I 18,873,642

1,968
15,767
15,767
13,320
12,324
32,331
44,655
1
27,508
45,793
43,225
89,018
27
33,349
56,239
74,148
130,387
25
59,684
159,673
44,288
203,961
24
157,772
302,549
90,169
392,718
28
142,430
235,694
20,667
256,361
24
29,717
34,411 I
38,594
73,005
7
19,185
54,971 I
5,717
60,688
14
12,525
10,454
16,917
27,371
1
I,915
4,588
899
5,487
1
5,695
12,483
12,483
1
347
1,383
I,383
1
7,040
10,637
10,637
5
10,674
18,540
18,540
3
5,475
5,671 I
5,671
4
5,513
6,366 I
6,366
4
3,408
5,276
5,276
2
3,170
6,752
5,752
3
18,262
24,469
24,469
2
998
1,811 I
1,811
2
II,9 5 3
9,710 |
8,080
17,790
1
11,330
9,732
5,465
15,197
1,163
2,338
2,338
8,240
5,207
4,380
9,587
2,593
3,073
3,073
6,930
11,171
II,1 7 1
8,936
8,301
8,301
23,444
36,433
36,433
23,438
19,934
19,934
43,861
I,454
14,363
15,817
2
103,523
94,412
1,012
95,424
6
10,878
4,729
4,729
22,524
12,850
12,850
3
40,134
20,830 I
6,544 I
27,374
5
54,806
II,0 3 0
20,402
31,432
3
132,058
40,100 |
31,850
71,950
1
20,480
23,655
23,655
971,296
341,317
8,382
349,699
3
1,575,832
704,283
704,283
4
339,574
88,442
21,925
110,367
10
864,859
332,485
8,246 I
340,731
13
205,208
95,524
24
95,548
854,154
363,868
516
364,384
6
110,696
38,288
3,740 I
42,028
7
216,300
72,888
5,376
78,264
7
3,826,022
676,368
16,940 !
693,308
810
9,908,379
39,605 I 1,924,763
1,964,368
3510

24
42
50
50
32
19

Assump­
tion
cases

Payoff
cases

Total

6,542,841

Year7
1934
1935
1936
1937
1938
1939
1940
194 1
1942
1943
1944
1945
1946
1947
1948
1949
1950
195 1
1952
1953
1954
1955
1956
1957
1958
1959
1960
196 1
1963
1964
1965
1966
1967
1968
1969
1970
197 1
1972
1973
1974
1975
1976
1977
1978
1979
1980
198 1
1982

Payoff
cases

30110

319

117
39
464

Assump­
tion
cases

—
—

< - M

—

» P—

* * « —

-

*

»

— -

—
i aj

P—

» < « "'

T_hi„ 124

DEPOSITORS DEPOSITS, AND DISBURSEMENTS IN FAILED BANKS REQUIRING DISBURSEMENTS BY THE

a a M^fi^R^UPR^EtY'cLASS^F^BANH^YEAI^Q’F ^DEt^SI^ PAYOFF

Number of banks

ASSUMPTION, AMOUNT OF DEPOSITS, AND STATE
Disbursements by FDIC1
(in thousands of dollars)

Deposits1
(in thousands of dollars)

Number of depositors1

Advances and
expenses2

Principal disbursements
Assump­
tion
cases

Classification

Payoff
cases

Assump­
tion
cases4

Assump­
tion
cases

Assump­
tion
cases

Assump­
tion
cases6

Banks with deposits
ol:
Less than $100,000
107
S100,000 to $250,000
109
$250,000 to $500,000 I 62
$500,000 to
$1,000,000...............| 72
$1,000,000 to
$2,000,000...............| 60
$2 ,000,000 to
$5,000,000...............| 68
$5 ,000,000 to
$10,000,000 ............ | 48
$10,000,000 to
$25,000,000 ............ 1 45
$25,000,000 to
$50,000,000 ............ 1 17
$5 0 ,000,000 to
$100,000,000 .......... 1
8
$100,000,000 to
$500,000,000 ..........1 11
$500,000,000 to
$1,000,000,000.
$1,000,000,000 or
m o r e .................
State
Alabama.........................
Arizona...........................
Arkansas ......................
C alifo rnia......................
C o lo ra d o ......................
Connecticut,
Florida .
G e o rg ia ......................... j
Idaho ....................
Illin o is .................
Indiana...........................
Io w a .............................
Kansas...........................
K e n tu cky...................... |
Louisiana............

154
173
611
2,352
4,089
11,543
19,203
26,220
35,457
34,303
62,255
16,392
222,490
4,512
603
589
5,985
3,221

10
2
H
8
10

887
2,500
5,428

14

24,524

20

384
1,562
4,735

640

15
26

8,374
665
371
3,293
15,312
63

Maine . .
Maryland
Massachusetts
M ic h ig a n ...................... |
Minnesota
Mississippi
M issouri.........................|
Montana.
Nebraska
New Hampshire............
New Jersey....................
New Y o rk ...................... I

1,917
1,420
21

54

8
24,772
233,709

1
44
35

------------------- ----------------------

- —
S S S

“

in , * 2 w i r e d »

ifsrsiiK s? “

« *

>» -

,< * »

! « - « » * «• ow— «
•

«

• * » • « > - . —

* •• “

i°'“ Assumpt!on cases" includes banks merged with financial assistance from FDIC to prevent probable failure.
Note: Due to rounding differences, components may not add to totals.




-

* * —

■“

1 6n
2 "“

—

- —

*

i”a ™

“

37
REQUIRING D,SBURSEMENTS BYTHE
BANKS GROUPED BY CLASS OF BANK, YEAR OF DEPOSIT PAYOFF OR DEPOSIT ASSUMPTION, AMOUNT OF DEPOSITS, AND STATE
Number of banks

Number of depositors1

Deposits’
(in thousands of dollars)

Disbursements by FDIC1
(in thousands of dollars)
Advances and
expenses2

Principal disbursements

Classification
North Carolina. . . .
North Dakota
O h io ............

Total

Payoff
cases

2

5

19

11

7

Oklahoma............
Oregon.................
Pennsylvania.. . .
South Carolina . .
South Dakota . ..
Tennessee ..........
Texas....................
U ta h ....................
Vermont...............
Virginia ...............

Assump­
tion
cases

2

3

9

710

1

3

8

2410

1

2

22

1

11
35

11
90

7

2

1
1

4

6

20
1

W ash in g to n.........
West Virginia

3

2

Wisconsin..........

20

13

W yo m ing ...............

1

Other areas
Virgin Islands
Puerto R ic o ..........

Total

Payoff
cases

Assump­
tion
cases

Payoff
cases

Total

Assump­
tion
cases

Total

Payoff
cases3

Assump­
tion
cases4

Payoff
cases-

Assump­
tion
cases6

10,408
17,016
21,251

3,677
9,673
7,585

6,731
7,343
13,666

3,266
14,258
102,838

1,421
11,980
2,345

1,845
2,278
100,493

2,387
11,757
90,621

1,156
10,498
1,610

1,231
1,259
89,011

23
160
7

179
203
6,746

78,609
6,919
602,590
68,080
12,515

44,683
1,230
43,828
403
11,412

33,926
5,689
558,762
67,677
1,103

638.565
9,921
2,053,679
113,553
2,988

485,395
1,368
14,340
136
2,862

153,170
8,553
2,039,339
113,417
126

254,121
7,965
493,348
60,650
2,411

235,927
986
10,133
136
2,388

18,194
6,979
483,215
60,514
23

1,913

973
648
11,689
12,242
9

150,515
180,234
3,254
11,057
40,484

17,734
82,280

132,781
97,954
3,254
2,370
27,846

418,634
582,702
5,992
3,725
30,523

40,160
149,324

378,474
433,378
5,992
350
22,871

191,049
229,742
3,538
3,445
18,033

37,448
103,556

317
1,939

3,259
3,867

153,601
126,186
3,538
186
14,166

143,479
22,216
43,508
3,212

552,024
50,422
112,627
2,033

552,024
48,416
106,661
2,033

82,464
34,213
117,992

1,458
5,096

82,464
32,755
112,896

371,840

14,229
804.565

143,479
30,562
62,247
3,212
11,073
371,840

8,687
12,638
8,346
18,739

11,073

3,375
7,652
2,006
5,966

14,229
804,565

202
8,712
370,3198

202
8,712

11
75
26

16,644
6,943
300

21

22

305

816

166
54

536
402
13,875
19

988
370,319

17,503

’ Adjusted to December 31, 1982. In assumption cases, number of depositors refers to number of deposit accounts

,s- “ °uum * ■

— « *» « ■ *-* * —

inclu d es estimated additional disbursements in active cases.
^Excludes excess collections turned over to banks as additional purchase price at termination of liquidation.
These disbursements are not recoverable by the Corporation; they consist almost wholly of field payoff expenses
exe
penseesadVanCeS t0 ^

3SSetS

liqUida,i° n eXpenSeS ° f $347' 6° 2 th° USand' a" ° f WhiCh have been ,ully recovered

,he CorP°ratio"

S87.643 thousand of nonrecoverable

,0r eaCh year relate 10 Cases 0CCUmn9 durin9 that year' including dist)ursements made in subsequent years.
I n tWs teble.aSSetS ° ' BanC° EC° n0miaS Were Purchases outri9ht by the Corporation. Disbursements in the case are included in table 126 under “ Other disbursements” and are not included
' “ "Assumption cases” includes banks merged with financial assistance from FDIC to prevent probable failure.
Note: Due to rounding differences, components may not add to totals.




38
Table 125

RECOVERIES AND LOSSES BY THE FEDERAL DEPOSIT INSURANCE CORPORATION ON PRINCIPAL
DISBURSEMENTS FOR PROTECTION OF DEPOSITORS, 1934-1982
(Amounts in thousands of dollars)
Liquidation
status and
year of
payoff or
deposit
assumption

Number
of
banks

Number
of
Losses1 | banks

Estimated
additional
recoveries

Recoveries
to Dec. 31,
1982

Principal
disburse­
ments

319

1,775,520
32,956

Status
Active..........
Terminated .

288

Year4

1934
1935
1936
1937
1938

....
....

1939
....

1941
1942
1943

5

913
6,784
3,458
1,031
3,026

1954
1955
1956
1957
1958

. . .

1959
1960
1961
1963
1964

. ..

1965
1966
1967
1968
1969

.. .

1970
1971
1972
1973
1974

. ..

...

1,835
4,765
6,201
19,172
13,741

1,738
4,765
4,699
18,886
12,171

11,431
8,732
8,097
5,586
37,617

7,339
8,255
7,087
5,575
37,526

2
1

...
...

4
3

. ..

1
5

...
...

2

...
.. .

. ..
...
..
. ..

..
..
..

13
16
6
7
10

..
..
..
..
..

10
10
42

..
..
. .

50
50

32
19
8
6
4

*

I 6,973,980

58,352
19,516

9
7
24
0

6,686,583
287,397

4,242,624
273,957

726.791 11,717,168
13,440

2,865
6,725
7,116
21,387

1,932
5,730
6,090
20,147

41,574
69,239
11,602
9,213
1,672

40,219
66,025
11,225
8,816 I
1,672

26,196
4,895
12,278
1,612
5,500

1

404

1

'

25
24

28

2
4
7

1
4
1

1
1
1
5
3

659

8
64
57
1,155 !
54,798
51,577

64

288
193
1,226
67,597 I
328

133,86?!
871,99-!I
1,845,75!>

79,461
269,878
94,918

33,447
45,419
681,707

4
5

1,155
11

r

*

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




272
193
1,226

654
2,346
663

230

230

473
7,997

326
7,520

’ 5,586
30,021 I

5,575
30,013

3
1
3
4

!

20,005
108,373

19,989
108,361

12

293,488
415,872 i
2,261,804 2,209,899

54,787
51,577

67,597
328

129
739

10
13
6
6
7

276,984
547,807 |
21,825
497,458 j
70,015

245,510
484,810
17,336
429,343
57,127

12,861
42,383
3,329
62,359
5,794

18,613
20,614
1,160
5,756
7,094

1.810
1,217
48,009

7
8
35

119,986
s
836.4781
1,555,096 s

72,040
255,167
94,918

28,796
25,830
439,057

19,150
555,481
1,021,121

564
432

82
1,900

116
1,287
4,651
19,589
242,650

20,960
556,698
1,069,130

r

913
2,346
663

3
5

18,695
22,514
1,160
5,885
7,833

s

2,183
2,601
1,885
577
5,017

2
6

3,903
479
1,010
12
82

188

13,425
42,815
3,329
62,475
7,081

r

1,099
1,768
265
1,666
2,349

2,552
3,986
1,885
1,369
5,017

Losses1

1,502
286
911

270,856
493,940
17,336
429,916
65,060

s

1,099
1,768
265
1,724 I
2,990

1

302,976 j
559,269
21,825
498.276i
79,974I

"

I

2
7

2
1
1

’ Includes estimated losses in active cases. Not adjusted for interest or al

s

301

326,369

4
4
2
3
2

48,982
49,334
161,914
162,163
13,874
16,255 i
432,654 | 310,259
2,261,804 2,209,899

7
6
1
6
4

..

77,868

726.791 | 1,730,608

654
6,554
3,245
1,031
2,998

2
2
5

. . .

271,411

4,516,581

2,183
2,601
1,885
577
5,017

3

. . .

1980
1981
1982

2,552
3,986
1,885
1,369
5,017

5
7
4
3
9

1949

1,462
1,768
265
1,666
2,349

7

1948

1,503
1,768
265
1,724
2,990

4
4
2

1947

7,048

2
1
1
5
3

1944
1945
1946

7,172

fRecoveries
Number Principal
disburse- t o Dec. 31,
of
1982
Losses1 1 banks | ments3 |

941
6,026
7,735
12,365
9,092

40

....

1975
1976
1977
1978
1979

9

2
4
4
2

Estimated
additional
recoveries

Estimated
additional
recoveries

271,411

Recoveries
to Dec. 31,
1982

496,592
179,056

7,152
3,796
591
688
123

....

1950
1951
1952
1953

3
1

207
2,685
2,333
3,672
2.425

....

1940

Principal
disburse­
ments2
675,648

1,808,476

7,649,628

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

Deposit assumption cases

Deposit payoff cases

All cases

lowable return, which was collected in some cases in which the disbursement was fully recovered.

«...—

* '»»»»

* » F»c *».— —

.

39
Table 126. ANALYSIS OF DISBURSEMENTS, RECOVERIES, AND LOSSES IN DEPOSIT INSURANCE TRANSACTIONS,
JANUARY 1, 1934-DECEMBER 31, 1982
(In thousands)
Type of disbursement

Disbursements

Recoveries1

Losses

$8,611,803

$6,667,979

$1,943,824

All disbursements— total
Principal disbursements in mergers, deposit assumption and payoff cases— total

7,649,628

5,841,152

1,808,476

Loans and assets purchased in liquidations (301 mergers and deposit assumption cases):3
To December 31. 1982...........................................................................................................................................................

5,420,896

4,334,042
480,070

606,784

Transactions to facilitate deposit assumptions, mergers, or consolidations:4
To December 31, 1982...........................................................................................................................................................

1,553,084

182,538
246 722

1,123,824

666,101
9,547

326,369
271 411

77,868

448.657

347,602

101,055

347,602
87,643
13,412

347,602

513,518

479,225

34,293

10,552

6,257
192

4,103

54,964

21,014
6,562

27,388

Deposits paid (319 deposit payoff cases):5
To December 31, 1982...........................................................................................................................................................
Advances and expenses in deposit assumption and payoff cases— t o t a l .............................................................................
Expenses in liquidating assets:

Field payoff and other insurance expenses in 319 deposit payoff cases6 .............................................................................
Other disbursements— total
Corporation purchases:
To facilitate termination of liquidations:
To December 31, 1982........................................................................................................................................................
Estimated additional.............................................................................................................................................................
To purchase assets from operating insured banks:
To December 31, 1982........................................................................................................................................................
Estimated additional.............................................................................................................................................................
Unallocated insurance expenses6 ..............................................................................................................................................
Assistance to operating insured banks:
To December 31. 1982 ..........................................................................................................................................................
Estimated additional..................................................................................................................................................................
'Excludes amounts returned to closed bank equity holders and $302.2 million of interest and allowable return received by FDIC.
inclu d es collections and disbursements by the liquidators in the field, (1.5 billion),
inclu d es $289.2 million of recorded liabilities at book value payable over future years.
4lncludes $681.9 million of recorded liabilities at present value expected to be payable over future years,
inclu d es estimated amounts for pending and unpaid claims on active cases.
6Not recoverable.




87 643
13,412

2,802
445,200

2,802
90,200
355,000

40
Table 127. INCOME AND EXPENSES, FEDERAL DEPOSIT INSURANCE CORPORATION, BY YEAR, FROM BEGINNING OF OPERATIONS,
SEPTEMBER 11, 1933 TO DECEMBER 31, 1982
(In millions)
Income
Year
Total
T o t a l.................

$17,266.2

1982 .................
1981 .................
1980 .................
1979 .................
1978 .................
1977 .................
1976 .................
1975 .................
1974 .................
1973 .................
1972 .................
1971 .................
1970 .................
1969 .................
1968 .................
1967 .................
1966 .................
1965 .................
1964 .................
1963 .................
1962 .................
1961 .................
1960 .................
1959 .................
1958 .................
1957 .................
1956 .................
1955 .................
1954 .................
1953 .................
1952 .................
1951 .................
1950 .................
1949 .................
1948 .................
1947 .................
1946 .................
1945 .................
1944 .................
1943 .................
1942 .................
1941 .................
1940 .................
1939 .................
1938 .................
1937 .................
1936 .................
1935 .................
1933-34

2,524.6
2,074.7
1,310.4
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

Deposit insurance
assessments1
$7,744.1
1,012.7
921.9
430 8
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)

Expenses and losses
Investment and
other sources2
$9,522.1
1,511.9
1,152.8
879.6
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

Interest on
capital stock3

Administrative and
operating expenses

Net income added to
deposit insurance fund4

$3,495.3

$1,899.0

$80.6

$1,515.7

$13,770.9

999.8
848.1
83.6
93.7
148.9s
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

869.9
720.9
(34.6)
(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
0.1
0.3
0.3
0.1
0.1
0.8
1.4
0.3
0.7
0.1
0.1
0.1
0.1
0.2
0.5
0.6
3.5
7,2
2.5
3.7
2.6
2.8
0.2

0.6
4.8
5.8
5.8
5.8
5.8
5.8
5.8
5.8
5.8
5.8
5.8
5.8
5.8
5.6

129.9
127.2
118.2
106.8
103,3
89.3
180.4s
67.7
59.2
54.4
49.6
46.9
42.2
33.5
29.0
24.4
19.8
17.7
15.5
14.4
13.7
13.2
12.4
11.9
11.6
9.6
9.1
8.7
7.7
7.2
7.0
6.6
6.4
6.1
5.7
5.0
4.1
3.5
3.4
3.8
3.8
3.7
3.6
3.4
3.0
2.7
2.5
2.7
4.26

1,524.8
1,226 6
1,226.8
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
76.9
77.0
144.7
138.6
147.6
120.7
111.6
90.0
76.8
59.0
51.9
43.0
34.8
36.4
36.0
32.9
9.5
-3 .0

1For the period from 1950 to 1982 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 these years amount to $6,554 million.
in c lu d e s S93.2 million of interest and allowable return received on funds advanced to receivership and deposit assumption cases and S209 million of interest on capital notes advanced to
facilitate deposit assumption transactions and assistance to open banks.
3Paid in 1950 and 1951, but allocated among years to which it applied. Initial capital of $289 million was retired by payments to the U.S. Treasury in 1947 and 1948.
4Assessments collected from members of the temporary insurance funds which became insured under the permanent plan were credited to their accounts at the termination of the temporary
funds and were applied toward payment of subsequent assessments becoming due under the permanent insurance fund, resulting in no income to the Corporation from assessments during
the existence of the temporary insurance funds.
in c lu d e s net loss on sales of U.S. Government securities of $105.6 million in 1976 and $3.6 million in 1978.
6Net after deducting the portion of expenses and losses charged to banks withdrawing from the temporary insurance funds on June 30, 1934.




41
Table 128. PROTECTION OF DEPOSITORS OF FAILED BANKS REQUIRING DISBURSEMENTS BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION 1934-1982

Item

All cases
(620 banks)
Number of
amount

Deposit payoff cases
(319 banks)

Deposit assumption cases
(301 banks)

Percent

Number of
amount

Percent

6,542,841

100.0

689,206

100.0

5,853,635

100.0

6,531,478

99.8

677,843

98.4

5,853,635

100.0

FDIC2 ..............................................................................
offset4..............................................................................
security or preference5 ................................................
asset liquidation6 ..........................................................

6,483,007
41,703
3,361
3,407

99.1
6
.1
1

629,3723
41 703
3,361
3 407

91.3
6 1
5
5

5,853,635

100.0

Full recovery not received as of December 31, 1982 ..........

11,363

.2

11,363

1.6

Terminated ca ses....................................................................
Active cases..............................................................................

3,842
7,521

.1
1

3,842
7 521

6
1 1

Number of depositors or accounts— to ta l' ...............................
Full recovery received or available
From
From
From
From

Amount of deposits (in thousands)— total
Paid or made a v a ila b le .............................................................
By
By
By
By

FDIC7 ...................................................................................
offset8...................................................................................
security or preference9 .....................................................
asset liquidation1 0 .............................................................

Not paid as of December 31, 1982
Terminated ca s e s ....................................................................
Active cases" .........................................................................

Number of
amount

Percent

19,958,566

100.0

1,084,924

100.0

18,873,642

100.0

19,737,546

98.9

863,904

79.6

18,873,642

100.0

19,527,219
69,437
86,989
53,901

97.8
.3
.4
3

653,5777
69 437
86 989
53 901

60.2
64
8 0
5 0

18,873,642

100.0

221,020

1.1

221,020

20.4

3,245
217,775

.0
1.1

3,245
217,775

3
20 1

'Number of depositors in deposit payoff cases; number of accounts in deposit assumption cases.
2Through direct payments to depositors in deposit payoff cases; through assumption of deposits by other insured banks facilitated by FDIC disbursements of 36,010,412 thousand, in mergers
and deposit assumption cases.
inclu d es 64,672 depositors, in terminated cases, who failed to claim their insured deposits (see note 7).
■•Includes only depositors with claims offset in full; most of these would have been fully protected by insurance in the absense of offsets.
Excludes depositors, paid in part by the FDIC; whose deposit balances were less than the insurance maximum.
6The insured portions of these depositor claims were paid by the Corporation.
'Includes $583 thousand unclaimed insured deposits in terminated cases (see note 3).
inclu d es all amounts paid by offset.
inclu d es all secured and preferred claims paid from asset liquidation; excludes secured and preferred claims paid by the corporation.
' “ Includes unclaimed deposits paid to authorized public custodians.
"Includes $169,766 thousand representing deposits available, expected through offset, or expected from proceeds of liquidation.




42
Table 129. INSURED DEPOSITS AND THE DEPOSIT INSURANCE FUND, 1934-1982 (In millions)
Deposits in insured banks

Year (December 31)

Insured'

1,544,697
1,409,322
1,324,463
1,226,943
1,145,835
1,050,435
941,923
875,985

1,134,221
988,898
948,717
808,555
760,706
692,533
628,263
569,101

Deposit insurance
fund

Ratio of deposit insurance fund to—
Total deposits

Insured deposits

.89
.87
.83
.80
.77
76
.77
.77

1,21%
1,24
1.16
1.21
1.16
1.15
1.16
1.18

62.5
60.7
60.2
61.34
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

313,085
296,701
261,149
234,150
209,690

63.1
60.2
58.2
58.4
55.6

4,051.1
3,749.2
3,485.5
3,252.0
3,036.3

.82
.76
.78
.81
.80

1.29
1,26
1.33
1.39
1.45

348,981
313.3042
297,5483
281,304
260,495

191,787
177,381
170,2104
160.3094
149,684

55.0
56.6
57.2"
57.04
57.5

2,844.7
2,667.9
2,502.0
2,353.8
2,222.2

.82
.85
.84
.84
.85

1.48
1.50
1.47
1.474
1.48

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

2,089.8
1,965,4
1,850.5
1,742.1
1,639.6

.84
.81
.82
.79
.77

1.47
1.43
1.46
1.44
1.41

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

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

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

1939
1938
1937
1936
1935
1934

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

5,000
5,000
5,000
5,000
5,000
5,000s

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

$100,000
100,000
100,000
40,000
40.0007
40.0006
40,000
40,000

Total'

Percentage of
insured deposits

$13,770.9
12,246.1
11,019.5
9,792.7
8,796.0
7,992.8
7,268.8
6,716.0

coverage
1982
1981
1980
1979
1978
1977
1976
1975

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

1974
1973
1972
1971
1970

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

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

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

1964
1963
1962
1961
1960

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

10,000
10,000
10,000
10,000
10,000

1959
1958
1957
1956
1955

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

1954
1953
1952
1951
1950

73.4
70.2
71.6
65.9
66.4
65.9
66.7
65.0

'Deposits 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 the Summary of Deposits survey submitted by insured banks.
December 20, 1963.
3December28, 1962.
■•Revised.
5lnitial coverage was $2,500 from January 1 to June 30, 1934.
6$100,000 for time and savings deposits of in-state governmental units provided in 1974.
7$100,000 for Individual Retirement accounts and Keogh accounts provided in 1978.




43

Accrual A ccou ntin g
Current requirem ents

8

Applications
Statistics on 1982 applications by
type
Table of:
Deposit insurance applications
Mergers
New Branches

9

8

Farmers and M echanics Savings Bank
Merger of Farmers and Mechanics
Savings Bank, Minneapolis, M inne­
sota, in to M arquette National Bank,
M inneapolis

3

Federal Deposit Insurance C orporation
C hairm an’s statement
Key personnel, W ashington O ffice
O rganization chart
Regions, map and key personnel

viii
v
iv
vi

5

Assessment Credits
Credits 1982 com pared to 1981
Effect of savings bank m ergers
Effective assessment rate 1981-1982

3
5
3

2
2
2
2
5

6

3-5

10
10

Com m ercial Banks
Failures during 1982
Open bank assistance during 1982

5
5

Discount Rate
Changes in 1982
Employees of FDIC
Total em ployees
Employees by Division
Employees in W ashington O ffice
Employees in Regional O ffices
Employees in Field O ffices
Employees assigned to Division of
Bank Supervision
Number of examiners
Num ber of officia ls and employees
December 1981 and 1982




7

3
3

6

Insurance Fund
G rowth during 1982
Income deposit insurance fund
Liabilities deposit insurance
fund

13

Interest Rates
Changes in prim e during 1982

Sum mary of actions 1981, 1982

Deposit Insurance National Bank
Established to replace Penn Square
Bank, O klahom a City, O klahom a

Glass-Steagall Act
FDIC policy statement on applica­
b ility to securities activities of
subsidiaries of insured banks

2

International Banking
Applications received, 1982
Role of the FDIC

3
14

9
9

2

11
11
11
11
11
10
11
11

Investment P ortfolio
Average m aturity
Increase in market value
Increase in par value
Legislation and Regulations
Legislation, 1982
Rules and regulations, 1982
Liquidation
Reorganization of Division of
Liquidation

3
3
3

26
27

7

CO

Mutual savings bank failures, 1982

8
8

Penn Square Bank
C ircum stances leading to closing
Deposit Insurance National Bank
established
Largest deposit payoff in FDIC
history
Litigation
Receiver’s certificates
Status of creditors
Sum m ary of assets

C
D

4-5

G arn-St Germ ain D epository Institutions
Act
Im pact on regulatory agencies
Provisions

Gross Expenses and Losses
In adm inistrative expenses
In closed banks and mergers

List of insured banks closed during
1982 requiring disbursem ents by
Federal Deposit Insurance
C orporation

Cease and Desist Orders
Cease and desist orders and actions
to correct specific unsafe or
unsound practices or violations of
law 1978-1982

18

C
O

Graph of failures 1934-1982

13

C
D

2

14

C
D

Deposits and losses in all insured
banks requiring disbursem ents by
Federal Deposit Insurance C orpora­
tion 1934-1982 (Chart)

15

Payments to Depositors
Payment record, 1934-1982
Percentage of recovery throu gh 1982
Recovery by FDIC since 1934
Recovery rate fo r uninsured deposits,
total and reasons fo r decrease
in 1982

C
D

Com m ercial bank failures, 1982

23

C
O

Bank Failures
During 1982
Compared w ith 1940
Com pared w ith 1976
Com pared w ith 1979-1981

12

O klahom a National Bank and Trust
Com pany
Assistance provided to facilitate
acquisition by the First National Bank
and T rust of O klahom a City,
O klahom a

3-4

COCOCO

8
8

Financial Statements
Assets of the FDIC
A ud it opinion of General A ccounting
O ffice
Com parative statement of changes
in financial position 1981-1982
Income and the deposit insurance
fund
Liabilities and the deposit insurance
fund
Notes to financial statements
Decem ber 31, 1981 and Decem ber 31,
1982

4

Net W orth Certificates
Authorized by G arn-St Germain
Use by FDIC

3-5
3-5

lO

Bank Exam inations
Augm ented by Integrated M onitor­
ing System
Summary by types during 1982

Fidelity M utual Savings Bank
Merger of Fidelity Mutual Savings
Bank, Spokane, W ashington into
First Interstate of W ashington

M utual Savings Bank
Failures during 1982
Mergers during 1982
Mergers w ith com m ercial banks,
1982

C
O

Abilene National Bank, Abilene, Texas
Assistance provided to facilitate
acquisition by M ercantile Texas
C orporation, Dallas, Texas

Mt. Pleasant Bank and Trust Com pany,
M ount Pleasant, Iowa
Deposits assumed by Hawkeye Bank
and Trust, subsidiary o f Hawkeye
Bancorporation, Des Moines, Iowa
5-6
Ruling on status of repurchase
agreements
6

C
O

Due-on-Sale P rohibitions
State provisions preempted by G arnSt Germain Act

Index

Problem Banks
Num ber of banks on problem list,
1982
U niform Financial Institutions rating
system

9

Receiver’s C ertificates
Issued in Penn Square closing

6

Regulatory and A dm inistrative Initiatives
Accrual accounting, current status
Changes in processing applications
fo r insurance, branches, and
office relocations
Delegation of approval au thority in
routine mergers
Increased reporting requirem ent on
nonperform ing loans
Net w orth certifica te program
im plem ented
Policy statem ent on Glass-Steagall
Act
Reorganization of Division of
Liquidation
Repurchase Agreem ents (REPOS)
Determ ination by FDIC of status of
Repos in Mt. Pleasant, Iowa bank
Savings Bank Industry
Cost of 1982 assisted mergers
com pared with payoff costs
Effect of mergers on assessment
credits
FDIC approach to savings bank
problem s

9

8

7
7
7
8
7
7

6

5
5
4-5

44
Securities Transfer Agents
Banks registered under Securities
Exchange Act
Num ber of transfer agents
supervised

9
8

Statistical Tables
Table 122 - Number and deposits of
banks closed because of financial
d ifficu ltie s, 1934-1982
Table 123 - Insured banks requir­
ing disbursem ents by the Federal
Deposit Insurance Corporation
during 1982

31

32--34

Table 124 - Depositors, deposits
and disbursem ents in failed
banks requiring disbursem ent by
the FDIC 1934-1982 (banks
grouped by class of bank, year of
deposit payoff or deposit assum ption,
am ount of deposits,
and state)
35--37
Table 125 - Recoveries and losses by
the FDIC on principal disbursem ents
fo r protection o f depositors,
1934-1982

38

Table 126 - Analysis of disbursements,
recoveries, and losses in deposit
insurance transactions, January 31,
39
1934 -D ecem ber 31, 1982
Table 127 - Income and expenses,
FDIC, by year, Septem ber 11, 1933
to December 31, 1982

40

Table 128 - Protection of depositors
of failed banks requiring dis­
bursem ents by the FDIC
1934-1982

41

Table 129 - Insured deposits and the
deposit insurance fund, 1934-1982

42

T rust Departm ents
Fiduciary powers approved, 1982
Num ber supervised and assets

8
8

U niform Bank Perform ance Report
Contents and distribution

8










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