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FEDERAL RESERVE COMMITTEE Oil
BRANCH, GROUP AID CELTS BAMI1T&
STATISTICAL DATA
Submitted to the Subcommittee of the
Committee on Banking and Currency of the
United States Senate
November S, 1931
Confidential and not for Publication
This is preliminary material submitted in advance of the Committee's
full report, and is subject to revision*
FEDERAL R2SJ]RVE C0MHITT5E ON BRANCH, GROUP,
MB CHA.PT BAHZnTO
Members of the Committee
E. A. G-oldenweiser, Director, Division of Research and
Statistics, Federal Reserve Board, Chairman
Ira Clerk, Deputy Governor, Federal Reserve Bank of San
Francisco
II. J. Fleming, Deputy Governor, Federal Reserve Bank of
Cleveland
L. R. Rounds, Deputy Governor, Federal Reserve Bank of
Hew York
3. L. Snoad, Chief, Division of Banlc Operations, Federal
Reserve Board
J. H. Riddle, Executive Secretary
COITOECTTS
Bank Changes
Page
1
Bank Suspensions
39
Banking Costs and P r o f i t s
88
Branch Banking
118
Chain and Group Banking
15&
November 6, 1931
Federal Reserve Committee on
Branch, Group and Chain Banking
A A J U L _C_H_A_N_G_1_SJ. _1_9_2_0_-_1_9_3_0
Preliminary material subject to revision
BAM CHAiTSES. 1920-1930
During the ten-year period following 1920 the number of incorporated commercial bonks and t r u s t companies in the United States declined
fron 29,230 to 21,903—a net redaction of 7,327 tanks.
This decrease i s
the f i r s t iiiportant reversal of the growth in n a i l e r s in almost a hundred y e a r s .
For two decades p r i o r to 1920 the r a t e of increase was as
rapid as the r a t e of decrease has subsequently been.
contributed most to both the r i s e and the d e c l i n e .
Appendix I show these developments.
State banks have
Charts 1 and 2 and
In these and the following c h a r t s
and t a b l e s figures a r e given for State and national banks only, including t r u s t companies and stock savings banks.
Mutual savings banks and
p r i v a t e banks are excluded.
Position i n 1920:
Tables 1 and 2 and Charts 3 and k give the number
of banks, the population per bank and the d i s t r i b u t i o n of banks by size
in 1920.
As a r e s u l t of the rapid r i s e in the number of banks p r i o r to
1920, the population per bank for the country as a whole declined from
8,828 per bank in 1900 to 3,6l7 per bank in 1920.
In two of the a g r i -
c u l t u r a l s t a t e s the popalation per bank was l e s s than 1,000 in 1920
(Table 2 ) .
The growth had brought into existence a l a r g e number of
small i n s t i t u t i o n s .
About 22 per cent of the banks in 1920 had loans
and investments of l e s s than $150,000, and 6k per cent had loans and i n vestments of l e s s than $500,000.
Tho d i s t r i b u t i o n of banks by s i z e and
by goographic divisions i n 1920 i s given i n Appendix VI, and i n 1930 in
Appendix V I I .
1
Analysis of changes 1920-1930:
Charts 5 to 2 and Tables 3 to 6 illus-
trate the changes which occurred from 1920 to 1930 hy size of bank,
size of town and geographic divisions.
It will he noted that the de-
clines occurred chiefly among small banks.
Among all size groups of
less than $2,000,000 of loans and investments there was a net decrease
in number, and among all larger size groups there was a net increase.
The number of banks with loans and investments of from $150,000 to
$250,000, for example, decreased 30 per cent, while the number of banks
with loans and investments of $50,000,000 and over increased Uo per
cent (Chart 5)»
The resulting contrast between the banking structure
of 1920 and 1930 is shown in Charts 6, 7, and 8, in Tables 3, k, and 5,
and in Appendices VI and VII,
The change in number of banks has been attended by a preponderant growth in the business of large institutions (Table 6).
The
aggregate loans and investments of all banks under $1,000,000 in size
declined nearly 25 per cent from 1920 to 1930» but f° r banks of
$50,000,000 and over the aggregate more than doubled during the same
period.
Chart 9 an(i Table 7 show that the decrease which has come
about in the number of banks during the ten-year period is the net difference between primary organizations on the one hand and discontinue
ances through consolidation, suspension and liquidation, on the other.
There has been an almost uniform decrease year by year in the number of
primary organizations, a gradual increase in discontinuances through
consolidation, and a somewhat irregular but substantial increase in suspensions.
The latter has been the largest single factor of change.
Primary organizations and conversions from private banks are
given separately in Appendix II, and primary organizations are given
in still greater detail in Appendices III and IV.
Voluntary liquidations, which have been included with suspensions in Chart 9» and reopenings, which have been subtracted from
suspensions in the same chart, are shown separately in Appendix II.
Suspensions and reopenings are discussed separately in another section.
Consolidations:
Chart 10, Tables 8-10 and Appendix V give the number
of consolidations since 1900 and, for the period 1921-1930* their distribution by size.
Consolidations have been far more numerous since
1920 than in prior years and have occurred with the greatest relative
frequency among large banks.
Only 19.^ per cent of the number of
banks of less than $25,000 capital have participated in consolidations
during the ten years, while among banks of $1,000,000 capital or more,
the participations in consolidations have been twice as numerous as
the number of banks.
Sources
The information in the charts and tables relative to bank
changes has been compiled from various sources.
The data in Charts 1
and 2 and Appendix I, as explained in notes on the latter, are taken in
part from the annual reports of the Comptroller of the Currency, in.
part from the report of the National Monetary Commission in 1911, and
in part from the studies made by the Committee on Branch, Group and
Chain Banking.
The distribution of banks in 1920 and I93O shown in various
charts and tables is based on a special study initiated by the Committee in order to classify banks according to amount of capital, amount
of loans and investments, and size of town.
For national banks these
basic classifications were prepared in the office of the Comptroller
of the Currency.
For State banks they were prepared in some cases in
the offices of the superintendents of banks and in some cases by the
Federal reserve banks.
The information on changes in the number of banks through
primary organizations, consolidations, etc., is also based on a special
study initiated by the Committee.
For national banks the original
data was compiled by the Division of Bank Operations of the Federal
Reserve Board.
For State banks they were compiled in the offices of
the various superintendents of banks with the cooperation of the Federal
reserve banks,
A copy of the form used in collecting the original
data is attached as Appendix VIII.
A separate copy of this form was
prepared for each bank change during 1921-1930.
CHART 1
NUMBER OF INCORPORATED COMMERCIAL BANKS
AND TRUST COMPANIES IN THE. UNITED STATES
NUMBER OF BANKS
30.000
1834-1930
NUMBER OF BANKS
30,000
Number of State and national banks, including trust companies and stock
savings banks, in the United States eaoh year from 1834 to 1930. Private banks and mutual savings banks are not included. Figures are as
of June 30 prior to 1920 and as of December 31 for 1920 and subsequent
years
CHART 2
NUMBER OF STATE AND NATIONAL BANKS
1834-1930
NUMBER OF BANKS
Z5.000
NUMBER OF BANKS
25.000
Number of State and national banks, including trust companies and stook
savings banks, in the United States each year from 1834 to 1930. Private banks and mutual savings banks are not included. Figures are as
of June 30 prior to 1920 and as of December 31 for 1920 and subsequent
years
7
NUMBER OP BANKING INSTITUTIONS IN 1920
8
CHART!
POPULATION PER BANK
12.000
POPULATION PER BANK IN 1 9 2 0
BY GEOGRAPHIC DIVISIONS
POPULATION PER BANK
12.000
Population per bank. State and national, in 1920 in the different geographic dirislone of the United States
Table 1 - POPULATION PEE BAM IN 1900 AMD 1920
Geographic divisions
1900
1920
S.297
10,293
Middle Atlantic
11,072
8,1^-0
North Central
10,230
3.962
9,173
4,257
South Eastern
15,236
U.J+91
South Western
13.869
3,082
Western Grain
M59
1,386
Rocky Mountain
7,^3
2,111
Pacific Coast
6,769
3.9^
8,828
3,6l7
New England
Southern Mountain
UNITED STATES
Table 2 - POPULATION PER B A M IN 1900 AND 1920
WESTERN GRAIN STATES
1900
1920
Minnesota
6,486
1.559
North Dakota
2,059
73^
South Dakota
2,953
913
Iowa
5.708
l.UoU
Nebraska
2,318
1,083
Missouri
5,329
2,043
Kansas
3,388
1,292
States
11
CHART 4
NUMBER OF BANKS
DISTRIBUTION OF BANKS IN 1920
BY SIZE GROUPS
NUMBER OF BANKS
7000
Number of State and national banks on June 30, 1920 grouped according
to amount of loans and investments
±2
ANALYSIS OP CHANGES 1920-1930
13
CHART 5
PER CENT
+ 40
PERCENTAGE CHANGES IN THE NUMBER OF BANKS
FROM 1920 TO 1930. BY SEE! GROUPS
PERCEHT
+4-0
Percentage changes in the number of State and national banks from 1920
to 1930 in the different size groups according to amount of loans and
investments
CHART 6
DISTRIBUTION OF BANKS Br5IZEGR0UP5
IN 1920 AND 1930
NUMBER Of BANKS
NUMBER OF BANKS
7000
Number of State and national banks in. 1920 and 1930,grouped aooording
to amount of loans and investments
Sable 3 - DISTRIBUTION OP 3ANKS IN 1920 AND I93O
BY SIZE GROUPS
Size Groups
Loans and investments
In thousands of dollars
1920
1930
Percentage
change from
1920 to 1910
Under $150
6,336
k,839
- 2k$
150 to 250
5.027
3,510
~ 30
250 to 500
6,915
lj-,966
- 28
500 to 750
3.159
2,362
- 25
750 to 1,000
1,811
1.552
- ih
1,000 to 2,000
2,729
2,600
-
2,000 to 5,000
1.573
1.887
+ 20
Number <jf banks
5
5,000 to 10,000
50s
596
+ 17
10,000 to 50,000
369
^53
+ 23
50,000 and over
72
101
+ ko
22.U99
22,866
- 20
Total
Table 4 - DISTRIBUTION OF BAMS IN 1920 AND 1930
BY SIZE OP CAPITAL STOCK
Size Groups
Capital stock
Number
of
banks
1920
Per cent
of
total
Number
of
banks
iq^o
Per cent
of
total
Under $25,000
8,087
28.4
4,769
20.9
25,000 to 49,999
8,624
30.3
6,918
30.2
50,000 to 99,999
5,680
19.9
4,708
20.6
100,000 to 199,999
3.&&
12.9
3.587
15.7
200,000 to 999,999
1,990
7.0
2,351
10.3
1,000,000 and over
434
1.5
533
2.3
28,499
100.0
22,866
100.0
All groups
CHART 7
NUMBER
DISTRIBUTION OF BANKS IN 1920 AND 1930
BY SIZE Of TOWNS
NUMBER OF
OP BANKS
8.000
BANKS
8.000
Number of State and national, banks in 1920 and 1930, grouped according
to population of towns
Table 5 - DISTRIBUTION OF BANKS IN 1920 AND I93O.
BY SIZE OP TO'.SNS
Population
of towns
Number
of
"banks
1920
Per cent
of
total
Number
of
banks
1930
Per cent
of
total
Less than 5OO
8,06l
28.3
5.713
25.0
500 to 1,000
5.055
17.7
3,s6o
16.9
1,000 to 2,500
5,630
19.8
^,353
19.0
2,500 to 5,000
3.016
10.6
2,483
10.9
5,000 to 10,000
2,005
7.0
1,831
8.0
10,000 to 25,000
1,726
6.0
1,607
7.0
25,000 to 50,000
736
2.6
746
3.3
50,000 to 100,000
644
2.3
579
2.5
100,000 and over
1,626
5.7
1,694
7.4
Total
28,499
100.0
22,866
100.0
Table 6 - LOANS AND INVESTMENTS OF ACTIVE BANKS
3Y SIZE GROUPS
Size Groups
Loans and investments
June 30, 1920 .
Per cent
Amount
of
(000 omitted)
total
7,537,000
21
1,000,000 to< 10,000,000
12,016,000
10,000,000 to 50,000,000
50,000,000 and over
Under $1,000,000
All banks
$
June 10, 1910
Per cent
Amount
of
(000 omitted)
total
5,717,000
12
33
13,6^0,000
28
7,366,000
21
8,815,000
18
9,156,000
25
19,890,000
42
36,075,000
100
Us,062,000
100
$
CHARTS
PERCENTAGE DISTRIBUTION OFBANKS
BY SIZE GROUPS 1920 AND 1930
The bars represent the proportion, of all banks in each geographic
division which falls within each size greup. The cross-hatched
bars give the distribution in 1920 and the black bars in 1930
20
2±
CHART 9
CHANGES Of THE NUMBER OF BANKS
NUMBER
1921-1930
Changes in the number of State and national banks each year from 1921
to 1930 due to new organisations, consolidations and suspension*
Table 7 - CHANGES IN THE NUMBER OF BANKS EACH YEAR
FROM 1921 TO 1930*
Year
Number of
primary organ- Decrease in
izations and the number of
conversions
banks through
from private consolidations
banks**
Suspensions
and liquidations (less
reopenings)
Net decrease
in the
number of
banks
1921
535
305
k23
193
1922
457
392
268
203
1923
509
327
6l2
U30
192U
U15
372
710
667
1925
k2S
3&
56O
U96
1926
359
kSi
sUo
9U2
1927
320
565
567
812
1928
267
532
501
766
1929
21+7
635
6lS
1,006
1930
153
767
1,198
1,812
3.690
U.720
6,297
7,327
1921-1930
* These changes are shown in greater detail in Appendix t% attached
hereto.
** Primary organizations are classified according to size of capital
stock and according to size of towns in Appendices III and IV
attached hereto.
iCni
CONSOLIDATIONS
CHART 10
NUMBER
800
NUMBER OF BANK CONSOLIDATIONS
1900-1930
NUMBER
800
Number of consolidations involving State and/or national banks, including mergers, absorptions, e t c , each year from 1900 to 1930
Table 8 - BANK CONSOLIDATIONS 192I-I93O
Year
Number of
Number of
banks
disconNumber of
banks entering
tinued by
consolidations consolidations
consolidations
1921
293
5S0
305
1922
3S3
725
392
1923
319
615
327
I92U
365
713
372
1925
359
686
364
1926
452
894
46l
1927
553
1,016
565
1928
512
991
532
1929
601
1,216
635
1930
735
1/493
767
4,572
8,929
4,720
Total
Note: The number of consolidations is determined by counting each transaction in which two or more banks unite, except that in California, where numerous small banks in
different places were frequently absorbed at the same time,
the absorption of each separate bank :'s counted as a consolidation.
In the number of banks entering consolidations the
same bank is counted as many times ac it is involved in
consolidation, except that in California the large banks
absorbing numerous smaller institutions are counted only
once for the year.
If there were always only two banks to a consolidation the number of banks entering consolidations would be
exactly twice the number of banks discontinued by consolidation, but it frequently happens that three or more banks
are involved.
Table 9 - NUMBER OF 3ANKS ENTERING CONSOLIDATIONS I92I-I93O
Grouped by Size of Capital Stock
Size of
capital stock
Number
entering
consolidations
Number entering
Number of
consolidations
active banks
per hundred
June 30, 1920
active banks
Under $25,000
1,569
8,087
19.4
25,000 to U-9,999
2,096
8,624
24.3
50,000 to 99,999
1,577
5.6SO
27.8
100,000 to 199,999
l,4l5
3,684
38.4
200,000 to 999,999
1,402
1,990
70.5
1,000,000 and over
S70
43U
200.5
8,929
28,1+99
31.3
Total
Table 10 - NUMBER OF BANKS DISCONTINUED BY CONSOLIDATIONS
DURING- 1921-1930 PER HUNDRED ACTIVE BANKS JUNE 30, 1920
By Size of Towns
Population
of towns
Number
discontinued
consolidations
Number
Number of
discontinued
a c t i v e banks
per hundred
June 30, 1920 active banks
1,01+5
8,06l
13.0
500 to 1,000
5S2
5,055
11.5
1,000 to 2,500
719
5,630
12.8
2,500 to 5,000
1+58
3,016
15.2
5,000 to 10,000
31+U
2,005
17.2
10,000 to 100,000
726
3.106
23.1+
100,000 and over
SU6
1,626
52.0
H.720
28,1+99
16.6
Less than 500
Total
i<wO
APPENDICES
A P P E N D I X
I
NUMBER OF INCORPORATED COMMERCIAL BANKS
AND TRUST COMPANIES IN THE UNITED STATES
IS3U-I93O
Year
I834
1835
1836
1837
I838
18?9
is4o
181+1
1842
1843
1844
184R
1846
1847
1848
I8I+9
I85O
1851
1852
1853
I85U
I855
I856
1857
I858
I859
i860
I861
I862
IS63
1864
I865
1866
I867
1868
I869
1870
I871
I872
1873
Number of
State banks
506
704
713
788
829
840
901
784
692
691
696
707
707
715
751
782
824
879
815
750
1,208
1,307
1,398
1,416
1,422
1,476
1,562
1,601
1,492
1,466
1,089
349
297
272
247
259
325
%2
566
558
Number of
national banks
Total
State and
national banks
506
704
713
788
829
840
901
784
692
691
696
66
467
1,294
1,634
1,636
1,640
1,619
1,612
1,723
1.853
1,968
707
707
715
751
782
824
879
8I5
750
1,208
1,307
1,398
1.4l6
1,422
1,476
1,562
1,601
1,492
1,532
1,556
1,643
1,931
1,908
1,887
1,878
1,937
2,175
2,4i9
2,526
Append!::: T. cc:at '• 1..
-2-
Year
IS 74
1875
1876
1877
1878
1879
1880
1881
1882
1883
1884
1885
1886
1887
1888
1889
1890
1891
1892
1893
1894
1895
I896
1897
I898
IS99
1900
1901
1902
1903
1904
1905
1906
1907
19OS
1909
1910
1911
1912
1913
1914
1915
1916
1917
Number of
State banks
551
633
592
838
847
850
846
853
870
96S
l,06l
1,174
1.259
1.583
1,809
2,160
2,636
3,227
3,608
3.914
3.933
£.05?
4,174
4,242
^.330
4,529
4,904
^
6,060
6.935
7,905
8,95s
10,665
11,828
12,77S
13,421
14,348
15.322
16,037
16,841
17,49S
17,748
18,253
18,710
Number of
national banks
1,983
2,076
2,091
2,078
2,056
2,048
2,076
2,115
2,239
2,417
2,625
2,689
2,849
3.014^
3.120
3.239
3.484
3,652
3.759
3,807
3.770
3,715
3,689
3.610
3.581
3.5S2
3.731
4,163
4,532
4,936
5.327
5,664
6,046
6,422
6,817
6,919
7,13S
7.270
7,366
7,467
7.51S
7,597
7,571
7,599
Total
State and
national banks
2.534
2,709
2,683
2,916
2,903
2,898
2,922
2,968
3,109
3,385
3,686
3,863
4,108
,4,597
4,929
5,399
6,120
6,879
7,367
7,721
7,703
7,774
7,863
7,852
7,911
8,111
8,635
9,626
10,598
11,871
13,232
14,622
16,711
18,250
19,595
20,140
21,486
22,592
23,403
24,308
25,016
25,345
25,824
26,309
Appendix I L.c;r-t" d.
-3-
Year
1918
1919
1920
1921
1922
1923
1924
1925
1926
1927
192S
1929
1930
Number of
State banks
Number of
national banks
19,1+oM19,646
21,107
20,872
20,6l4
20.22B
19,694
19,193
18,393
17,728
7,699
7,779
8,123
8,165
8,220
8.17S
8,043
8,048
7,906
7,759
7,629
7,^03
7,033
17,092
16,312
14,870
Total
State and
national banks
27,103
27,^25
29,230
29,037
28,834
28,404
27,737
27,241
26,299
25,487
24,721
23,715
21,903
Sources:
State banks, including stock savings banks, and trust companies:
1834-1872 inclusive from the Annual Report of the Comptroller of the Currency for 1909, p. 912, with the
exception that the figure for I852 is interpolated.
1873 interpolated.
I874-I876 inclusive from the Annual Report of the Comptroller of the Currency for I892, pp. 292 and following.
1877-1908 inclusive from the Report of the National Monetary Commission, vol. 7, PP» 243 an(l following, with
the exception that the figure for trust companies
for 1900 given therein as 492 through an error in addition, is corrected to 502, which makes the total
state banks 4,904.
1909-1919 inclusive from annual Reports of the Comptroller
of the Currency. The figures are as of June 30.
1920-1930 inclusive compiled by Federal Reserve Committee
on Branch, Group and Chain Banking, from records of
State Superintendents of Banks as to state banks.
The figures are as of December 31«
National Banks:
I863-I9O8 inclusive from the Annual Report of the Comptroller of the Currency 1920, pp. 260 and following.
1909-1919 inclusive from annual Reports of the Comptroller
of the Currency. The figures for these years are as
of June 30.
1920-1930 inclusive compiled by the Federal Reserve Committee on Branch, Group and Chain Banking from records
of the Federal Reserve Board.
The figures are as of
December 31.
APPENDIX
II
CHANGES Iff THE NUMBER Of BANKS IN THE UNITED STATES EROM 1920 TO 1930
(National and State banks, including t r u s t companies and stock savings "banks)
10-
Calendar y e a r
1921
Number of "banks a t "beginning of y e a r
I n c r e a s e i n number of "banks:
By p r i m a r y o r g a n i z a t i o n
By r e o p e n i n g
3 y c o n v e r s i o n from p r i v a t e "banks
Total increase
Decrease i n nuniber of "banks:
By c o n v e r s i o n t o p r i v a t e "banks
By v o l u n t a r y l i q u i d a t i o n
By s u s p e n s i o n
By c o n s o l i d a t i o n
Total decrease
Net d e c r e a s e
Number of banks a t end of year
1922
192U
1923
1925
1926
1928
1927
1930
Year
Period
29,230 29,037 28,834 2S,4o4 27.737 2 7 , 2 4 i 26,299 2 5 , ^ 7 24,721 23,715 29,230
60
4li
ill
46
1+60
65
1*9
3S7
110
28
4c6
79
22
345
165
14
302
129
18
252
52
15
238
70
9
147
161
6
3,^23
1,027
267
620
568
57U
525
507
524
449
319
317
31*
4,717
1
1
2
3^3
392
625
327
2
59
578
364
4
^7
46i
305
2
80
73S
372
926
46l
635
565
2
72
479
532
813
771
1,004
1,192
1,003
1,466
l,26l
1,085
193
203
430
667
942
812
766
^75
1+96
1
1
16
6o4
68
58
629 • 1 , 2 9 0 *6,704
767 4 , 7 2 0
635
2,126 12,044
1,323
1,006 1,812 7.327
29.037 28,834 28,4o4 27.737 27,241 26,299 25,487 24,721 23,715 21,903 21.903
A discrepancy of 2 e x i s t s "between these f i g u r e s and those i n the suspension t a b l e s .
in the revised f i g u r e s .
1929
This w i l l "be adjusted
03
A P P E N D I X
III
NUMBER OF PEIMARY ORGANIZATIONS
ACCORDING TO SIZE OP CAPITAL STOCK
Araotmt of <capital s1bock
$25,000 $50,000 $100,000 $500,000
to
to
to
to
to.qqq qq.qqq Uqq.^qq qqq.qqq
Year
Less
than
$25,000
1921
102
158
85
119
6
5
H75
1922
7*
1U0
82
111
3
1
Hll
1923
69
138
117
120
7
9
H60
192U
79
131
66
101
5
5
387
1925
72
108
*
127
1
k
U06
1926
37
90
69
130
9
10
3^5
1927
27
&
63
108
6
302
1928
25
85
kl
90
5
6
252
1929
28
9i
Ho
7*
19
13
238
1930
28
W
J5
37
1+
5ta
1.0U2
682
1,017
73
Total
ih
$1,000,000
and
over
_i
68
Total
1*7
3,^23
A P P E N D I X
IT
NUMBER OF PRIMARY ORGANIZATIONS
ACCORDING TO SIZE OP TOWN
Population of town
5,000 10,000 100,000
1,000
to
to
to
and
Total
5.000 10.000 100.000 over
Year
Less
than
1.000
1921
178
131
33
55
78
^75
1922
133
106
33
62
77
Hll
1923
12U
151
31
57
97
U60
1924
118
118
25
kG
80
387
1925
112
llU
Ho
77
63
U06
1926
81
96
20
68
80
3U5
1927
7^
90
22
*3
73
302
1928
76
73
19
32
52
252
1929
5*
71
19
25
69
238
1930
1+8
37
16
13
33
1H7
998
987
258
U78
702
3.^23
Total
A P P E N D I X
V
NUMBER OP BANK CONSOLIDATIONS
Year
1900
1901
1902
1901
1904
1905
1906
1907
190S
1909
1910
1911
1912
1913
19W
1915
Number of
consolidations
20
1+1
50
373
£69
56
5*
97
80
126
115
135
113
145
146
Year
1916
1917
1918
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
Number of
consolidations
136
125
113
178
172
293
3S3
319
365
359
452
553
512
601
735
Sources: Figures for 1900 to 1920 inclusive were taken from
the Banking Inquiry 1925> vol. VI, which was prepared under the direction of Dr. H. Parker Willis. Figures for
1921 to 1930 inclusive were compiled by the Federal Heserve Committee on Branch, Group, and Chain Banking.
o
A P P E N D I X
VI
NUMBER OP BANKS IN 1920 DISTRIBUTED
BY SIZE OP LOANS AND INVESTMENTS AND GEOGRAPHIC DIVISIONS
Size Groups
Loans and
investments
in thousands
of dollars
New
England
MidSouthSouth South West- Rocky Pa«*
North ern
dle
At- Cen- Moun- East- lest- ern Moun- cific Total
lan- tral tain ern ern Grain tain Coast
tic
Under $150
17
9S
552
512
817 1,063 2,623
463
191
6,336
150 to 250
30
l46
833
33^
492
631 2,053
323
I85
5,027
250 to 500
87
481 1,367
483
596
776 2,463
340
322
6,915
500 to 750
9^
365
694
203
285
857
153
194 3,159
750 to 1,000
7^
3U2
432
133
142
144
357
79
108 1,811
1,000 to 2,000
171
661
596
178
22-7
172
410
113
201
2,729
2,000 to 5,000
164
472
323
72
100
108
149
81
104
1,573
5,000 to 10.000
53
181
101
37
17
24
*3
17
35
508
10,000 to 50,000
33
131
72
17
IS
23
32
4
39
36?
6
36
IS
•••
•• •
1
5
6
72
50,000 and over
Total
729
2,913 4,988 1,969
•••
2,694 3.256 8*992 1,573 1,385 28,495
A P P E N D I X
VII
NUMBER OF BANKS IN I93O DISTRIBUTED
BY SIZE OE LOANS AND INVESTMENTS AND BY GEOGRAPHIC DIVISIONS
Size Groups
Loans and
investments
in thousands
of dollars
New
England
MidSouthSouth South West- Rocky Padle North ern
At- Cen- Moun- East- West- ern Moun- cific Total
ern
ern Grain tain Coast
lan- tral
tain
tic
Under $150
16
31
627
407
564
884 1,970
210
130 4,839
150 to 250
11
109
SOU
282
267
460 1.275
166
136
Ul2 1.255
380
327
559 1.513
229
247 4,966
250 to 500
3.510
500 to 750
67
36O
646
223
169
208
483
90
ll6
2,362
750 to $.#OQO
56
319
421
116
101
126
263
61
89
1.552
1,000 to 2,000
170
797
683
197
151
119
283
68
132
2,600
2,000 to 5,000
204
733
U07
90
84
80
146
57
86
1,887
5,000 to 10,000
75
236
135
29
17
31
35
16
22
596
10,000 to 50,000
&
186
86
31
18
26
23
11
18
453
48
20
•• •
2
3
7
•• •
15
101
50,000 and over
Total
6
703 3.231 5,084 1.755
1.700 2,1+96 5.998
90S
991 22,866
F e d e r a l Reserve Committee on
Branch, Group and Chain Banking
A P P E N D I X
Form A-5
VIII
State
Date of change
BAM CHANGES DURING I92I-I93O
Report on a s e p a r a t e copy of t h i s form each c o n s o l i d a t i o n , l i q u i d a t i o n
primary o r g a n i z a t i o n , e t c . , and check i n t h e space a t the r i g h t t h e k i n d of c h a n g e .
City or town
PopulaName
tion*
Names of all "banks and trust companies,
of any kind, involved in this change
Total
PaidLoans
in
and inrecapital vestments sources
(OOd's omitted)
Name or names before change
KIND OF CHANGE:
Consolidation
Liquidation
Primary
organization
Conversion of
•orivate tank
Conversion to
•private "bank
Name or names after change
NET CHANGE IN
NUMBER 07 STATE
INSTITUTIONS
Increase
Decrease
Newly organized (primary)
I f above c l a s s i f i c a t i o n s a r e n o t s e l f - e x p l a n a t o r y , p l e a s e u s e r e v e r s e s i d e f o r
*As g i v e n i n t h e b a n k e r s d i r e c t o r y a t t h e time t h e change o c c u r r e d .
details.
(',3
November 6, 1931
Federal Reserve Committee on
Branch, Group and Chain Banking
BANK
SUSPENSIONS
Preliminary material subject to revision
ocJ
BANK SUSPENSIONS
Daring t h e t e n - y e a r p e r i o d 1921-1930 a t o t a l of 7.029 "banks suspended
in the United S t a t e s .
This was n e a r l y two and o n e - h a l f t i n e s the number s u s -
pending d u r i n g t h e p r e v i o u s twenty-nine y e a r s , p r i o r t o which BED r e l i a b l e
s t a t i s t i c s are available.
In t h e f i r s t n i n e months of 1931 an a d d i t i o n a l
1,23*+ "banks were c l o s e d "because of f i n a n c i a l d i f f i c u l t i e s .
This e x t r a -
ordinary i n c r e a s e i n t h e m o r t a l i t y r a t e f o r "banks i n the p a s t decade a s c o n p a r e d w i t h p r e v i o u s y e a r s i s i l l u s t r a t e d i n Charts 1 and 2 and i n Table 1.
A n a l y s i s of Suspensions 1921-1930
Geographic d i s t r i b u t i o n :
Tables 2 to 5 and Charts 3 t o k i l l u s t r a t e
the
e x t e n t t o which suspensions d u r i n g 1921-1930 were c o n c e n t r a t e d in a g r i cultural regions.
N e a r l y t w o - t h i r d s of t h e t o t a l , for example, o c c u r r e d
i n the South E a s t e r n s t a t e s and t h e Western Grain s t a t e s , two groups
which a g g r e g a t e t h i r t e e n a g r i c u l t u r a l s t a t e s .
In the South E a s t e r n s t a t e s
t h e suspensions i n t h e t e n y e a r s amounted t o n e a r l y f o r t y - s i x for every
hundred a c t i v e "banks i n 1920 a s compared w i t h only 2^ p e r hundred i n the
New England and Middle A t l a n t i c s t a t e s .
r a t i o was t h i r t y - t h r e e p e r hundred.
more p e r hundred.
In t h e Western Grain s t a t e s t h e
In s i x s t a t e s the r a t i o was f i f t y
or
In F l o r i d a i t was n i n e t y - o n e per hundred, i n South
Dakota s i x t y - f i v e p e r hundred and i n South Caroline, f i f t y - s i x p e r hundred.
In 1 9 3 1 . however, and to a l e s s e r e x t e n t i n 1930, t h e r e has "been
a noteworthy i n c r e a s e i n s u s p e n s i o n s in i n d u s t r i a l and s e m i - i n d u s t r i a l
states.
Table 5. for example, shows t h a t 30 p e r c e n t of fill tho s u s p e n -
s i o n s d u r i n g the f i r s t n i n e months of 1931 o c c u r r e d i n t h e North C e n t r a l
s t a t e s a s compared w i t h only 9 p e r cent during 1921-1930.
40
The North
Central s t a t e s include Michigan, Wisconsin, I l l i n o i s , Indiana, and Ohio.
Likewise about 9 Ver
cerL,t o f
the 1931 suspensions have been in the
Middle Atlantic s t a t e s as corpared with 1 per cent for the previous ten
years.
Size of suspending hanks:
Tables 6 to 9 and Charts 5 to 11 indicate the
extent to which suspensions have occurred among i n s t i t u t i o n s of s n a i l
size.
Eighty-four per cent of a l l hanks suspending in 1921-1930 had loans
and investments of l e s s than $500,000.
For hanks with loans and i n v e s t -
ments of l e s s than $150,000 the r a t i o of suspensions 1921-1930 to active
banks in 1930 was f o r t y - f i v e per hundred.
This r a t i o of suspensions to
active banks declines rapidly with the increase in the size of banks.
For banks with loans and investments ranging fron $2,000,000 to $5,000,000
the r a t i o was only seven per hundred and for banks of $5°.000,000 and
over i t was only one and a half per hundred.
Size of towns;
(Table 8)
Tables 10 and 11 and Charts 12 and 13 give the d i s t r i b u -
t i o n of suspensions by size of towns.
Thirty-eight per cent of suspen-
sions in the ten-year period were in towns of l e s s than ^00 population
and 73 P°r cent were in towns of l e s s than 2,500. people.
The r a t i o of
suspensions to active banks in towns of l e s s than 500 was thirty-one per
hundred.
This r a t i o declines to t h i r t e e n per hundred in c i t i e s of
100,000 population and over.
Disposition, of suspended banks:
Table 12, giving the disposition of sus-
pended banks, shows t h a t out of 6,706 suspensions of s t a t e and national
banks 1,105 reopened, 225 wore taken over by other i n s t i t u t i o n s and the
d i s p o s i t i o n of 187 was not recorded.
The remainder were placed in r e -
ceivership, of which 1,397 had "been completely l i q u i d a t e d at the time
the schedules were prepared.
Payments to depositors:
Tables 13 to 16 indicate the claims realiBed
"by depositors in suspended hanks and the losses sustained.
In 1,25*+
completely liquidated hanks the general depositors received about 56 per
cent of t h e i r claims, exclusive of o f f s e t s .
S e l l a b l e figures for secured
and preferred claims a r e not a v a i l a b l e hut in most cases theywcro p r e sumably paid in f u l l .
Sources
The Committee has compiled these figures on suspensions back to
1892 from various sources, and although an effort has been made to secure
them on a comparable b a s i s for each year, there are certain defects in
the e a r l i e r s t a t i s t i c a l records which make i t impossible to secure uniform
accuracy throughout the period.
P r i o r to the second decade of t h i s cen-
tury many s t a t e s kept inadequate banking records and in some s t a t e s i t i s
only within comparatively recent years that r e l i a b l e s t a t i s t i c s a r e
available.
Schedule
on suspensions. 1921-1930:
For the years 1921-1930 the figures
were compiled by the Committee on Branch, Group and Chain Banking from
schedules prepared for the purpose of providing b a s i c data for a d e t a i l e d
analysis of suspensions during 1921-1930.
I t i s a four page schedule
c a l l i n g for some forty or f i f t y items cf information regarding each bank
suspending in that p e r i o d .
A copy of that schedule i s attached hereto
at the ond of the s t a t i s t i c a l t a b l e s as Appendix I I I .
For n a t i o n a l "bank
suspensions the schedules were prepared in the office of the Comptroller
of the Currency, and for s t a t e "bank suspensions they were prepared in
the State banking departments, e i t h e r by the staff of the department or
by a representative of the Federal reserve bank of the d i s t r i c t .
On the
whole the r e s u l t s were satisfactory although no s t a t e was able to supply
a l l the information requested, and due to differences in records and
methods of accounting, some of the data were not s t r i c t l y comparable for
the d i f f e r e n t s t a t e s .
After making the necessary allowances and adjust-
ments, however, the figures regarding s t a t e and national banks a r e suff i c i e n t to present a comprehensive p i c t u r e .
Suspensions, as defined by t h e Committee, include a l l banks closed
to the public e i t h e r temporarily or permanently by supervisory a u t h o r i t i e s or by boards of d i r e c t o r s on account of financial
difficulties.
The s t a t i s t i c s include, therefore, not only those banks placed i n receivership but also those which closed and l a t e r reopened or were taken over by
other i n s t i t u t i o n s without the intervention of r e c e i v e r s .
The Committee's
figures on suspensions d i f f e r somewhat from the records of the Comptroller
of the Currency on bank f a i l u r e s which embrace only those closed banks
for'which receivers have been appointed.
They also differ s l i g h t l y from the figures compiled for the same
period by the Federal Reserve Board due to revisions in the preliminary
figures reported to the Board.
Sometimes a closing may be reported
o r i g i n a l l y as a l i q u i d a t i o n or consolidation but upon more complete i n formation may be classed as a suspension, and vice versa.
For the 323 p r i v a t e "bonk suspensions l i t t l e information of value
was secured by the Committee due to the fact t h a t i n many s t a t e s p r i v a t e
hanks a r e not under the supervision of any public authority and no
records are a v a i l a h l e .
Therefore, the a n a l y s i s of suspensions during 1921-1930 "beginning
with Table 2 and Chart k i s "based on national and State "bank suspensions
only, including t r u s t companies and stock savings banks.
are excluded.
P r i v a t e hanks
That accounts for the f a c t that in these tables the t o t a l
number of suspensions for the ten years i s given as 6,706 instead of
7,029 as shown in Table 1 which includes p r i v a t e banks.
In one table the number of suspensions in the f i r s t nine months of
1931 bas been given, but t h e Committee has not asked for schedules to be
prepared for t h i s y e a r ' s suspensions because of the delay which t h i s
would e n t a i l .
With the exception of the one t a b l e , therefore, the analy-
s i s i s limited to the ten years, 1921-1930.
Sources for p r i o r y e a r s :
For the years 1900 to 1920 the number and r e -
sources of suspended s t a t e and national banks were taken in p a r t from the
Banking Inquiry of 1925 prepared under the d i r e c t i o n of Dr. H. Parker
W i l l i s , and in p a r t from B r a d s t r e e t ' s Commercial Agency.
The d e f i n i t i o n
of a " f a i l u r e " in the Banking Inquiry approaches very closely what the
Committee designates a "suspension," and i t i s believed the s t a t i s t i c s
are roughly comparable to those compiled by the Committee for l a t e r y e a r s .
F a i l u r e s t a t i s t i c s for some s t a t e s , especially in the early 1900's,were
not included in t h i s inquiry, however, because the records were not
a v a i l a b l e in the State banking departments.
I t was necessary, therefore,
for the Committee to supplement the figures for c e r t a i n s t a t e s by uno f f i c i a l data taken from B r a d s t r e e t ' s Commercial Agency.
Statistics
on p r i v a t e hank f a i l u r e s for the e n t i r e period, 1900-1920, were l i k e wise taken from B r a d s t r e e t ' s .
For the years 1892-1899 the figures were taken from the annual
reports
of the Comptroller of the Currency.
Here again the s t a t i s t i c s
of s t a t e and p r i v a t e "bank f a i l u r e s were supplied o r i g i n a l l y by B r a d s t r e e t ' s
Commercial Agency.
The figures for national banks during that period
represent " f a i l u r e s , " according to the Comptroller's usage, r a t h e r than
suspensions and to that extent are not s t r i c t l y comparable with the data
for l a t e r y e a r s .
In s p i t e of t h e d i f f i c u l t i e s of securing s t r i c t l y comparable data,
however, i t i s believed that the discrepancies i n the figures as comp i l e d are not s u f f i c i e n t l y great to affect appreciably long term comparisons.
CHART 1
NUMBER OF BANK SUSPENSIONS IN THE UNITED STATES
NUMBER
IStt-193©
1500
Total nuaber of suspensions
of national, State and private banks,
each year from 1892 to 1930
NUMBER
CHART 2
RATIO OF SUSPENSIONS TO ACTIVE BANKS
PERCENT
PERCENT
Suspensions of national, State and private banks
per hundred active banks
each year from 1892 to 1930
T&Wel-
ACTIVE BANKS AMD SUSPENSIONS
Each Year from 1692 to I93O
Active tanks
Year
Number
1S92
1891
1894
1895
I896
I897
1898
I899
1900
1901
1902
1903
1904
1905
1906
1907
1908
1909
1910
1911
1912
1913
1914
1915
1916
1917
191s
1919
1920
1921
1922
1923
1924
1925
1926
1927
192S
1929
1930
8,695
8,843
8,862
3,15^
8,792
8,791
8,825
9,076
9,727
10,731
11,742
13,000
14,151
15,710
17,195
19,032
20,627
21,804
22,420
23,708
24,513
25,324
26,080
26,381
26,838
27,2%
28,194
28,442
29,458
30,125
29,706
29,494
2S,66s
28,162
27,^61
26,376
25,529
24,649
23,406
Resources
(000 omitted)
$ 5,639,984
5,489,787
5.599,177
5,852,759
5.703,993
5,915.290
6,602,934
7,754,06s
8,445,868
9,857,874
10,733,SH
11,538,429
12,335,270
13,907,329
14,973,055
16,324,072
16,202,105
17,641,526
18,735,686
19,798,353
20,976,959
21,536,22s
22,640,618
23,400,652
27,611,836
32,175,454
35,702,199
42,155,674
45,890,033
,43,312,593
43,795,S65
46,859,366
49.4s9.Us5
53,846,716
56,165,162
58,813,187
61,540,994
61.799,350
63,406,014
Per cent of
banks su^ocndins
Suspensions
Number
86
477
S3
115
13
?
154
61
35
35
66
53
52
123
80
52
89
151
I85
7S
101
150
151
53
fi
62
150
496
362
647
772
614
976
660
497
Resources
(000 omitted)
$
25,350
123,ss6
15,446
23,933
22,194
59,087
12,238
10,209
6-,993
28,039
14,664
20,091
43,255
29,036
31,724
184,131
86,024
34,773
33,243
31,085
19,923
27,69s
47,267
60,440
16,015
20,531
is,090
24,bSl
93,373
252,396
141,592
221,511
307,030
233,670
346,276
270,456
187,242
305,l6S
1,184,248
Number
1.0
5.4
•9
1.3
1.5
1.8
.7
.4
.4
.6
*P
# *T
•9
•5
•3
•5
.7
.3
.2
.4
i
.6
.6
.2
.2
.2
.2
•5
1.6
1.2
2.2
2.6
2.2
3-5
2.5
1.9
2.7
Resources
.4
2.3
•i
.4
1.0
.2
.1
.1
•3
.1
.2
.4
.2
.2
1.1
.5
.2
.2
.2
.1
.1
.2
•3
.1
.1
.1
.1
.2
.6
•3
•5
.6
.4
.6
.5
•3
.5
1.9
657
5.7
1,348
Sources: Active banks 1892-1930 and suspensions 1892-1899 from annual reports of
the Comptroller of the Currency; suspensions 1900-1920 from Banking Inquiry of
1925 prepared under the supervision of Dr. H. Parker Willis, supplemented by unofficial data taken from Bradstreet's Commercial Agency; suspensions 1921-1930
compiled by the Federal Reserve Committee on Branch, Group and Chain Banking froir.
schedules prepared by the State Banking Departments and the Comptroller of the
Currency, and from the tabulations of the Federal Reserve Board regarding private
bank suspensions.
CD
GEOGRAPHIC DISTRIBUTION OF SUSPENSIONS
1921-1930
50
CHART 3
BANK SUSPENSIONS DURING 1921-1930
Table 2 - B A M SUSPENSIONS BY GEOGRAPHIC DIVISIONS*
1921 - 1930
National "banks
Geographic
Divisions**
Number
Total - National
and Sta1;e banks Loans and
Loans and
investinvestments
ments
Number
(000
(000
omitted)
omitted)
State banks
Loans and
investNumber
ments
(000
omitted)
k
M&
Ik
H2,U2
18
U6.976
Middle Atlantic States
29
25.732
*3
353.6^8
72
379,^10
North Central States
7S
53.0U6
55U
251,723
632
30^,769
Southern Mountain States
25
65,2^8
250
11^,055
275
179,303
South Eastern States
110
103,373
1,125
^33,797
1,235
537,170
South Western States
155
86,072
657
167,676
812
253,7^8
Western Grain States
3U6
168,519
2,619
598,^71
2,965
766,990
Hooky Mountain States
ite
81,826
M3
106,^76
555
188,302
3S
3^,369
IOM-
927
623,0^9
5,779
New England States
Pacific Coast States
.UNITED STATES
»
61,51*2
2,129,530
lk2
95,911
6,706 2,752,579
* Exclusive of private bank suspensions.
** The figures for each state in these geographic divisions are given in Appendix
I attached hereto.
52
CHART 4
GEOGRAPHICAL DISTRIBUTION OF BANK SUSPENSIONS
DURING TEN YEAR PERIOD. 1921-1930 INCLUSIVE
Table 3 - NUMBER OF SUSPENSIONS DURING 1921-1930 PER HUNDRED ACTIVE BANKS
ON JUNE 30, 1920
Geographic
Divisions*
National
hanks
State
hanks
Total
National
and
State hanks
New England States
1.0
u.u
2.5
Middle Atlantic States
1.7
3.5
2.5
North Central States
5,7
15.3
12.7
Southern Mountain States
U.S
17.2
1U.0
South Eastern States
24.7
50.0
^5.8
South Western States
15.1
29.5
24.9
Western Grain States
21.9
35.3
33.0
Rocky Mountain States
27.4
39.2
35.3
7.9
11.5
10.3
11.6
28.2
23.5
Pacific Coast States
UNITED STATES
*See Appendix I for names of states in these geographic divisions.
>
Table 5 - NUMBER OF STATE AND NATIONAL BANK SUSPENSIONS
BY GEOGRAPHIC DIVISIONS
1921-1930
Geographic
Divisions*
Number
1931 (9 months)
Per cent
of total
suspensions
Number
Per cent
of total
suspensions
New England States
18
.3
2
.2
Middle Atlantic States
72
1.1
105
2.9
North Central States
632
9.*
357
30.3
Southern Mountain States
275
H.i
72
6.1
South Eastern States
1,235
18.1+
132
11.2
South Western States
812
12.1
70
5.9
Western Grain States
2,965
m.2
385
32.6
Rocky Mountain States
555
8.3
30
2.5
Pacific Coast States
1U2
2.1
27
2.3
6,706
100.0
1,180
100.0
UNITED STATES
•See Appendix I for names of states in these divisions.
56
SIZE OF SUSPENDING BANKS
1921-1930
&?
Table 6 - PERCENTAGE DISTRIBUTION OF SUSPENDED BANES BY SIZE GROUPS
1921 - 1930
National
bank suspensions
Loans and
investments
Per cent
of
number
State
bank suspensions
Per cent Per cent
of loans
of
and in- number
vestments
National and State
bank suspensions
Per cent Per cent
of loans
of
and innumber
vestments
Per cent
of loans
and investments
Under $500,000
66.7
26.0
S6.7
39.4
83.9
36.4
500,000 - 999,999
17.7
18.3
3.8
16.4
10.0
l6.g
1,000,000 - U,999,999
lk.k
37.9
4.1
20.8
5.5
24.6
1.2
17.S
0.4
23.4
0.6
22.2
100.0
100.0
100.0
100.0
100.0
100.0
5,000,000 and over
Total
•3
T a b l e 7 — VttBBSS&JSl DISTRIBUTION OF THE WMBM OF ACTIVE BANKS
IN 1920 AND THE NUMBER OF SUSPENSIONS DURING 1 9 2 1 - 1 9 3 0
BY SIZE GROUPS
National and
State banks
Per cent Per cent Per cent Per cent Per cent Per cent
of total of total of total of total of total of total
suspenactive
active
suspensuspen- active
sions
banks
banks
sions
banks
sions
6-10-1920 iq21-iqTO 6-10r-iq20 1921-19-SO 6-10-1920 1921-1910
National banks
Loans and
investments
State banks
Under $500,000
39.0
66.7
7^.0
S6.7
64.2
83.9
500,000 - 999,999
27.2
17.7
13.6
8.8
17.4
10.0
1,000,000 - M-,999,999
27.8
1U.1+
10.1
k.l
15.1
5.5
5,000,000 and over
6.0
1.2
2.3
O.k
3*3
0.6
Total
100.0 ,
100.0
100.0
100.0
100.0
100.0
PER
CHART 5
SUSPENSIONS PER HUNDRED ACTIVE NATIONAL BANKS
HUNDRED GROUPED BY SIZE OF LOANS AND INVESTMENTS PER HUNDRED
Number of national bank suspensions during
1921-1930 per hundred active national banks
oh June 30, 1920, grouped by s i z e
of loans and investments
CHART 6
SUSPENSIONS PER HUNDRED ACT1YE STATE BANKS
or a HUNDRED GROUPED BY SIZE OF LOANS AND INVESTMENTS PER HUNDRED
50
Number of S t a t e bank suspensions during
1921-1930 p e r hundred a c t i v e S t a t e banks
on June 30, 1920, grouped
by s i z e of loans and investments
CHART 7
SUSPENSIONS PER HUNDRED ACTIVE NATIONAL AND STATE BANKS
GROUPED BY SIZE OF LOANS AND INVESTMENTS
PER HUNDRED
u n w u r i , , /
" " *Jitml'
Vl
*•*»«"•» " " «
Number of n a t i o n a l and
d u r i n g 1921-1930 per
on June 30, 1920,
of loans and
U
"
W I
™ I -« I *» p E R HUNDRED
S t a t e bank suspensions
hundred a c t i v e banks
grouped by s i z e
investments
Table 8 - SUSPENSIONS DURING 1921-1930 PER HUNDRED ACTIVE BANKS,
ON JUNE 30, 1920, BY SIZE GROUPS
Size groups
Loans and investments
in thousands of dollars
National
and State
banks
National
banks
State
banks
Under $150
33.3
^.k
UI4-.7
150 to 250
21*. 9
27.7
27.3
25O to 500
15.5
22.8
20.6
500 to 75O
8.6
18.7
lU.5
750 to 1,000
5.9
17.2
11.8
1,000 to 2,000
7.1
12.2
9.5
2,000 to 5,000
h.i
10.0
6.9
5,000 to 10,000
3.5
5.6
M
10,000 to 50,000
1.1
5.9
3.5
50,000 and over
0.0
2.9
1.U
All hanks
n.6
28.2,
23.5
63
CHART 8
SUSPENSIONS PER HUNDRED ACTIVE NATIONAL AND STATE BANKS
GROUPED BY SIZE OF LOANS AND INVESTMENTS
Number of national and State bank suspensions
during 1921-1930 per hundred active banks on
June 30, 1920, grouped by size
of loans and investments
Table 9 - SUSPENSIONS OF NATIONAL AND STATE BANKS DURING 1921-1930
PER HUNDRED ACTIVE B A M S ON JUNE 30, 1920,
BY SIZE GROUPS
Size Groups
Loans and
investments
in thousands of
dollars
New
Middle North South- South South West- Rocky
ern
EngCenEast- Western Moun- Pacific
AtMounCoast
land lantic tral
ern
ern
Grain tain
tain
States
States States States
States States States States
States
Under $150
0.0
5.1
29.3
21.5
65.6
39.7
50.1
51.6
22.5
150 to 25O
3.3
3*
l6.7
14.1
4l.7
19.3
3^.7
35.6
13.0
25O to 500
1.1
3.3
12.6
13.3
42.8
19.7
25.3
29.7
12.7
500 to 750
2.1
M
9.1
11.3
28.8
l4.6
20.7
24.8
4.1
750 to 1,000
1.4
0.9
8.3
8.3
30.3
18.1
17.9
30.4
5.6
1,000 to 2,000
3.5
1.1
6.5
6.2
32.6
16.9
12.9
26.5
5.5
2,000 to 5,000
3.0
1.9
5.6
6.9
32.0
10.2
10.7
8.6
5.8
5,000 to 10,000
1.9
3.3
3.0
0.0
23.5
8.3
9.3
5.9
5.7
10,000 to 50,000
3.0
1.5
0.0
23.5
22.2
4.3
0.0
0.0
2.6
50,000 and over
0.0
2.8
0.0
0.0
0.0
0.0
0.0
0.0
0.0
2.5
2.5
12.7
i4.o
45.8
24.9
33.0
35-3
10.3
All banks
CHART 9
LOANS AND INVESTMENTS 0F5U5PENDED BANKS
PER HUNDRED DOLLARS OFLOANS AND INVESTMENTS OF ACTIVE BANKS
PER HUNDRED
PER HUNDRED
50
Loans and investments of national and State banks
suspending during 1921-1930 per hundred dollars
of loans and investments of aotive banks on June 30, 1920,
Banks are grouped by size of loans and investments.
50
CHART 10
SUSPENSIONS PER HUNDRED ACTIVE NATIONAL AND STATE BANKS
« W « K D BY SIZE OF CAPITALSTOCK
PER HOKEO
40 ~
-"
~
_ . -
Number of national and State bank suspensions
during 1921-1930 per hundred active banks
on June 30, 1920, grouped by size
of oapital stock
67
CHART 11
SUSPENSIONS PER HUNDRED ACTIVE NATIONAL AND STATE BANKS
GROUPED BY SIZE OF CAPITAL STOCK
Number of national and State bank suspensions
during 1921-1930 per hundred active banks
on June 30, 1920, grouped by size
of caDital stock
68
SIZE OP TOWNS WHERE B A M S SUSPENDED
1921-1930
Table 10 - CLASSIFICATION OF BANKS SUSPENDING
DURING 1921-1930, BY SIZE OF TOWNS*
Population
of towns
Number of
suspensions
Per cent
of total
suspensions
Less than 500
2,516
3S
500 to 999
1.351
20
1,000 to 2,1*99
1.3^8
20
2,500 to 4,999
559
8
5,000 to 9,999
289
4
10,000 to 24,999
254
k
25,000 and over
389
6
6,706
100
Total
* Includes only national and state bank suspensions.
70
CHART 12
SUSPENSIONS PER HUNDRED ACTIVE NATIONAL AND STATE BANKS
GROUPED BYSIZEOFTOWNS
Number of national and State bank suspensions during 1921-1930
per hundred active banks on June 30, 1920,
grouped by size of towns
Table 11 - RATIO OP SUSPENDED BANKS TO ACTIVE BANKS,
GROUPED BY POPULATION OF TOWNS*
Population
of towns
Number of
suspensions
1921-1930 per
hundred active
banks
on
June 30, 1920
Loans and investments
of suspended banks
1921-1930 per hundred
dollars of loans and
investments of active
banks on
June 30, 1920
Less than 500
31.2
22.3
500 to 999
26.7
19.2
1,000 to 2,^99
23.9
16.9
2,500 to 4,999
18.5
12.8
5,000 to 9,999
ik.k
10.7
10,000 to 24,999
*.7
9.7
25,000 to ^9,999
10.9
5.4
50,000 to 99,999
16.0
7.5
100,000 and over
12.7
3.5
Average
23.5
7.6
•State and National banks.
CHART 13
SUSPENSIONS PER HUNDRED ACTIVE NATIONAL AND STATE BANKS
GROUPED BY SIZE OFTOWNS
Number of national and State bank suspensions
during 1921-1930 per hundred active banks
on June 30, 1920,grouped by size
of towns
73
DISPOSITION OP SUSPENDED BANKS
1921-1930
•labfc lc •• iISx-C3IT:0H OF SUSPENDED BAMS, STATE MD NATIONAL, 1921-1930
Number
Geographic
Divisions
Reopened Taken
over
Percentage of t o t a l
In proComcess of p l e t e l y
liquiliquidation
dated
Disposition
not
recorded
Total
Reopened
Taken
over
In p r o Comcess of p l e t e l y
liquiliquidation
dated
Disposition
not
recorded
3
0
18
11.1
0.0
72.2
16.7
0.0
11
0
72
16.7
6.9
6l.l
15.3
0.0
390
^5
2
632
23.1
7.8
61.7
7.1
0.3
21
190
36
0
275
10.2
7.6
69.I
13.1
0.0
218
33
7^8
176
60
1,235
17.7
2.6
60.6
1^-3
k.8
South Western
167
51
i+01
192
1
812
20.6
6.U
14-9.1*.
23. U
0.2
Western Grain
U6H
UU
1,813
622
22
2.965
15.6
1.5
61.2
21.0
0.7
Rocky Mountain
50
16
139
2Ug
102
555
9.0
2.9
25.0
UU.7
18 A
^pacific Coast
18
6
5*
6U
0
1U2
12.7
k.2
38.0
^5-1
0.0
1,105
225
3,792
1,397
187
6,706
16.5
3.4
56.5
20.8
2.8
2
0
12
5
1U6
k3
28
South Eastern
liew England
Middle A t l a n t i c
Horth Central
Southern Mountain
UNITED STATES
13
Kl
75
PAMENTS TO DEPOSITOHS
OF SUSPENDED BANKS AND LOSSES SUSTAINED
1921-1930
Table 13 - REOPENED AND TAKEN-OVER BANKS GROUPED
ACCORDING TO PERCENTAGE OF C U I M S
REALIZED BY DEPOSITORS
National
banks*
State
banks*
National and
State banks
0 to 19$
0
6
6
20 to 39
»-»
Percentage of
claims realized
30
31
1+0 to 59
7
S7
9^
60 to 79
17
97
III+
80 to 99
9
39
1+8
119
787
906
153
1,046
1,199
100
Total
* Information as to claims realized by depositors in 1
national bank and I3O State banks was unavailable.
Note:- The above are those banks suspending during 1921-1930
which had been reopened or taken over by other institutions
at the time the schedules of information were prepared for
the Committee, with the exception of the 131 banks for which
information is not available.
Table lH - TOTAL ESTIMATED LOSSES T6 DEPOSITORS OF SUSPENDED BANKS
WHICH WERE REOPENED OR TAKEtf OVER
Geographic
divisions
New England
State
National
National and
banks
banks
State banks
(OOO omitted) (000 omitted) (000 omitted)
$
0
$
0
$
0
Middle Atlantic
302
0
302
North Central
215
6,392
6,607
0
523
523
South Eastern
2Ud
7,300
7,5^0
South Western
925
1,507
2,^32
Western Grain
1,0^6
31.063
32,109
Rocky Mountain
1,377
i,i4o
2,517
Pacific Coast
1&3
1+18
2,051
U8,3^3
5^,081
Southern Mountain
Total
5.73S
Note:- The above are those banks suspending during 1921-1930
which had been reopened or taken over by other institutions
at the time the schedules were prepared for the Committee.
Table 15 - CLAIMS REALIZED BY DEPOSITORS IN COMPLETELY LIQUIDATED
NATIONAL AND STATE BANKS BY GEOGRAPHIC DIVISIONS
(000 omitted from dollar amounts)
Geographic
divisions
!
State banks
National L banks
1 Per
Per
1
PayPaycent
cent
ments
ments
of
Genof
Number
Number Genon
on
Payeral
payof
of
eral
gengenments banks** claims*. eral
ments
banks claims* eral
to
to
claims*
claims*
claims
claims
New England
1
279
187
67.P
1
1,822
1,822
100.0
Middle A t l a n t i c
3
2,381
1,885
79.2
4
8I+3
791
93.8
North Central
8
M71
2,757
59.0
30
5,677
3.891
68.5
Southern Mountain
2
366
332
90.7
13
i,405
l,06l
75.5
South Eastern
21
3,288
1,802
5^.8
139
1^,987
6,1+93
^3.3
South Western
50
17,167
7,787 ^5.3
99
9,577
4,752
1+9.6
Western Grain
83
20,397
10,324
50.6
523
81,023
1+5,006
55-5
Rocky Mountain
86
17.449
7,4l8
U2.5
128
16,911+
9,832
58.1
Pacific Coast
13
2,1191
1,5^2
61.9
50
23,671+
17,451
73.7
68,1+89 3^,031+ ^9.7
987
155,922
9L099
58.4
UNITED STATES
267
* Exclusive of offsets.,
* Information as to claims and payments for ll+3 completely liquidated State
banks is not available.
Note:- The above are those banks suspending during 192I-I93O which had been
completely liquidated at the time the schedules of information were prepared for the Committee, with the exception of the ll+3 banks for which
information is not available.
Table l6 - AVERAGE PER CENT OF CLAIMS REALIZED BY DEPOSITORS
IN 1,25U COMPLETELY LIQUIDATED NATIONAL AND
STATE BANKS, GROUPED BY SIZE OF TOWN
Population
of towns
Number of
banks
completelyliquidated*
35.607
49.1#
72,004
37,450
52.0
4o
13,210
7,083
53.6
31
24,242
16,480
68.0
42,398
28,513
67.3
224,411
125,133
55.7
Under 1,000
784
1,000 to 4,999
3U2
5,000 to 9,999
10,000 to 24,999
25,000 and over
All groups-
*
**
Average
General
Payments
per cent of
claims
to general
claims
claimants**
allowed**
realized by
(000 omitted) (000 omitted) depositors
L25H
$
72,557
$
Information as to claims and payments for l43 State banks is not
available.
Exclusive of offsets.
Note:- The above are those banks suspending during 1921-1930 which
had been completely liquidated at the time the schedules of information were prepared for the Committee, with the exception of the
l43 State banks for which information is not available.
Table. 17 - EXPENSE OF LlqtJiMtfiNG StfSPEKBED NATIONAL BANKS*
Geographic
divisions
Number
of
banks
Total
Per cent
Expenses
resources
Per cent
Total
of
of exat time
collecof exliquidapenses to
of sustions
penses to
tion
total
pension
(000
total re(000
collecsources omitted)
(000
omitted)
tions
omitted)
? •••
•.•
3.6
2,220
5*o
206
3.S
^,038
5.1
501
31
6.2
517
6.0
21
7,086
36U
5.1
3,756
9.7
South Western
50
29,009
1,197
^.1
16,578
7.2
Western Grain
S3
3L707
1,7^5
5.5
18,680
9.3
Hocky Mountain
86
36.1U6
1,915
5.3
19,867
9.6
Pacific Coast
13
5.87S
3^7
5.S
^,269
8.1
267
H9,07S
5,9^7
5.0
70,iUU
8.5
New England
1
Middle Atlantic
3
North Central
Southern Mountain
$
150
•••
•• •
3.115
112
8
5,^86
2
South Eastern
UNITED STATES
$
* Compiled from annual reports of the Comptroller of the Currency.
Note:- The above are those national banks suspending during 1921-1930
which had been completely liquidated at the time the schedules of
information were prepared for the Committee.
81
APPENDICES
A P P E N D I X
BAHK SUSPENSIONS BY STATES AND GEOGRAPHIC DIVISIONS
1921 - 1930
States by
Geographic
Divisions
Number
New England
Maine
New Hampshire
Vermont
Massachusetts
Bhode Island
Connecticut
0
0
1
1
1
1
Total
1*
1*
Middle Atlantic
New York
New JerseyDelaware
Pennsylvania
Maryland
Total
North Central
Michigan
Wisconsin
Illinois
Indiana
Ohio
Total
Southern Mountain
West Virginia
Virginia
Kentucky
Tennessee
Total
State banks
National banks
Loans and
investments
(000 omitted)
$
0
0
1,138
29U
1.535
1,897
Number
2
1
1
Loans and
investments
(OGO omitted)
*
5
1,235
1,1*75
1,014
19,681*
1,063
l7,6Ui
4,864
14
1*2,112
8
1
19
2
1,999
1.527
679
20,575
952
%
253,1^8
8,321
257
84,667
7,285
29
25.732
*3
353,678
4
2.72S
3,241
21,581
7,909
17,587
17
93
221
163
60
8,810
25,61*1*
108,516
68,6iq
1*0,134
7S
53,046
554
251,723
9
7,9*0
3,576
39.05^
istii*6
13,1*09
1*2,1*1*2
40,058
111*,O55
3
3
2
3
1
5
1M75
56
69
90
25
65,21*8
250
I
83
-2-
States "by
Geographic
Divisions
National banks
Number
South Eastern
North Carolina
South Carolina
Georgia
Florida
Alabama
Mississippi
23
26
19
20
15
Total
South Western
Louisiana
Texas
Arkansas
Oklahoma
Total
Western Grain
Minnesota
North Dakota
South Dakota
Iowa
Nebraska
Missouri
Kansas
Total
Rocky Mountain
Montana
Idaho
Wyoming
Colorado
New Mexico
Arizona
Utah
Nevada
Total
State banks
Loans and
investments
(000 omitted)
Number
189
226
Loans and
investments
(000 omitted)
6,759
59
7
8,038
103
79,282
68,066
65,4lS
166,552
18,771
35,708
110
103,373
1,125
^33,797
2
62
20
71
2,033
^1.996
10,085
53
3L95S
189
200
215
15,144
44,626
63,843
44,063
155
86,072
657
167,676
58
S
29,592
20,280
24,386
62,736
17,335
3,991
10,199
346
61
26
11
18
20
7?
5*
105
32
$
-24,887
14,763
20,276
28,650
33*
214
$
383
247
86,109
59,980
100,774
15L376
67,996
81,057
51,179
168,519
2,619
598,471
23,868
16,325
150
46
3M91*
9,73*+
50
$
8?
38O
3
3
12,641
14,385
1,828
3,645
4i
29
19
0
0
3
13.781
9,328
12,727
12,992
14,231
5,103
3.^20
142
81,826
413
106,476
75
-3-
States by
Geographic
Divisions
Pacific Coast
Washington
Oregon
California
Total
UNITED STATES
National banks
Number
Loans and
investments
(000 omitted)
Stat<3 banks
Number
Loans and
investments
(000 omitted)
6,679
1U.5S6
46
38
20
38
3^369
10*+
6l,5l+2
927
623,01+9
5,779
2,129,530
12
8
IS
$
13,101+
$
31,379
lM8f5
15,278
A P P E N D I X
II
SUSPENSIONS OF STATE AND NATIONAL BANKS DURING 1921-1930
PER HUNDRED ACTIVE BANKS JUNE 30, 1920
State
Alabama
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
Number of
active banks
June "SO. 1920
Number of
suspensions
1921-19^0
Suspensions
per hundred
active banks
3^7
7*
37
482
720
396
139
32
220
38
3?
2
0
234
5.1
0.0
90.7
353
48.9
32.4
17.2
20.3
30.5
19.*+
12.5
20.6
25S
722
222
1&1
879
1.712
1.3^3
585
267
118
236
271
653
1.508
1,647
423
%
6
72
257
178
522
261
73
55
2
r
0
1+
21
52*
9.1
3
1
275
33
1.7
2.5
1.5
3.2
211
396
33
1,410
£3
29.2
32.7
24.0
1+12
959
5.3
mi
no
1,196
SO
366
122
817
578
898
991
21.3
36.8
%.6
6
61
12
212
486
1$
286
1+6
46
3
1.3
1.6
50.0
1.5
36.7
5^.1
7.5
29.8
16.7
3'3
9.1
-2-
State
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Total
Number of
active banks
June TO. 1920
^53
688
$6
1.5^8
132
88
500
390
338
968
Number of
suspensions
1921-iq-K)
252
Suspensions
per hundred
active banks
5*7
55.6
65,0
95
251
22
2
63
16.2
16.7
2
-l
12.6
S
102
17A
l4,9
158
6l
13.0
10.5
38.6
28,499
6,706
23.5
AFPI2IDIX III
is onitted fron this copy.
This is the printed schedule
used in collecting information
regarding hank suspensions from
1921 to 1930*
November 6, 1931
Federal Reserve Committee on
Branch, Group and Chain Banking
BANKING
COSTS
AND
PROFITS
Preliminary material subject to revision
88
BANKING- COSTS AND PROFITS
The following series of ten charts and accompanying tables
form a part of an intensive analysis of national bank earnings over a
five-year period, I926-I93O.
It has often "been alleged of recent years that the banks in
small towns do not make earnings sufficient to support themselves and
that this is one important reason for the greater mortality among these
institutions.
National bank earnings data have been arranged to bring
out some of the facts in this respect. The charts show that the proportion of small banks making satisfactory profit returns on invested capital is much smaller than among large banks, and that the contrast between the size groups is more pronounced in agrarian districts than in
industrial ones.
Although small banks typically have a higher rate
of gross return on loans and investments, they are not as profitable
as large banks because their costs of handling a unit of business are
higher than those of large banks and their losses are greater.
Analysis by size of bank:
Charts 1 and 2 and Tables 1 and 2 are
based upon an enumeration of national banks by size and by rates of
earnings during the five years I926-I93O.
They show that on the
average one-third of the banks in the smallest size group (loans and
investments of less than $150,000) reported an annual loss or no net
earnings.
Half the banks in the same size group earned less than 3
per cent, including those showing losses.
89
In 1920 there were over
6,000 State and national banks of that size in the country, hut in 1930
the number had been reduced to something less than 5,000.
The propor-
tion of banks showing losses or earnings less than 3 per cent grew progressively smaller as the size of the banks increased.
Of those banks
with loans and investments of $50,000,000 or more, less than 3 per cent
showed net losses and only 7 Ver
cent earned less than 3 per cent annu-
ally on invested capital (capital, surplus, undivided profits and capital reserves).
Geographical differences;
Charts 3 and k and Tables 3 and U bring out
the difference in earnings in the industrial northeastern states as
contrasted with the agricultural mid-continent states.
In the case of
the smallest size group and the largest size group the differences between the two areas are not great.
It should be noted, however, that
there are very few banks in the northeastern states with loans and investments of less than $150,000, but a comparatively large number in
the mid-continent states.
In the other size groups the proportion of
poor earners is much larger among the mid-continent banks than among
the northeastern banks.
Analysis by size of town:
Charts 5 an<i 6 &&•&• Tables 5 and- S are based
on an enumeration of banks by size of town in which located and by rates
of earnings.
These again reflect chiefly the contrast between small
and large banks although not as sharply as in the preceding charts since
there are many small banks in large towns.
Operating ratios:
Charts 7 to 10 and Tables 7 to 10 show certain in-
come and expense items among banks of various sizes.
In order to com-
pare size groups, the income and expense items of each national hank
were reduced to amounts per hundred dollars of loans and investments*
The ratios with respect to any particular size group represent the
averages of the annual ratios of each hank in the group over the fiveyear period.
Chart 7 shows that the small hanks have a higher rate
of gross earnings but a smaller margin of net profits per $100 of loans
and investments than the large banks.
The unfavorable results of the
smaller banks grow oiit of higher salaries and wages, higher overhead
expenses, and larger losses per unit of business.
Payments of inter-
est on deposits, as Chart 8 shows, does not contribute to the condition.
Sources
The material from which these charts were derived was taken
from the condition reports and earnings and expense reports of each
national bank active in the years 1926 through 1930»
The analysis
sheet upon which the data were compiled originally by the Federal reserve banks is included as an appendix following the charts and tables.
It was necessary to prepare five analyses for each active national
bank, one for each of the five years, or approximately 35,000 in all.
It will be observed from the analysis sheet that the condition figures
used for each year represent the averages of the several reports made
during the year, usually four.
After the analysis sheets had been
completed in the Federal reserve banks, groupings of the data were
at?(W
transmitted to the Committee in tabulations designed by it.
The staff
of the Committee made the combinations and experiments necessary to
bring out points bearing upon the problem of banking structure.
oi5
EAMINGS 3Y SIZE OF BAM
PER CENT
CHART 1
PERCENTAGE OF NATIONAL BANKS EARNING NOTHING
SIZE GROUPS
40
PER CENT
40
i
*
*
Percentage of national banks showing annual net losses
or no net earnings during 1926-1930
Banks grouped aocording to size of loans and investments
Table 1 - PERCENTAGE 01 NATIONAL BANKS SHOWING
ANNUAL NET LOSSES OR NO NET EARNINGS
DURING 1926-1930
Banks Grouped According to Size of Loans and Investments
Size Groups
Loans and investments
Percentage of "banks
showing losses
Under $150,000
35.0
150,000 to 250,000
22.0
250,000 to 500,000
20.6
500,000 to 750,000
lk.G
750,000 to 1,000,000
13.2
1,000,000 to 2,000,000
10.5
2,000,000 to 5,000,000
8.1+
5,000,000 to 10,000,000
6.S
10,000,000 to 50,000,000
5.3
50,000,000 and over
2.5
All groups
15.s
96
PER CENT
60
CHART Z
PERCENTAGE OF NATIONAL BANKS EARNING LESS THAN 3>%
SIZE GROUPS
PER CE.NT
60
Percentage of national banks showing annual net earnings available
for dividends of l e s s than Z% on invested capital during 1926-1930
flanks grouped according to size of loans and investments
Table 2 - PERCENTAGE OF NATIONAL BAMS SHOWING ANNUAL NET EARNINGS
AVAILABLE FOR DIVIDENDS OF LESS THAN % ON INVESTED CAPITAL
DURING 1926-1930
Banks Grouped According to Size of Loans and Investments
Size Groups
Loans and investments
Percentage of banks
earning less than 3$
Under $150,000
53.7
150,000 to 250,000
^3-3
250,000 to 500,000
33*3
500,000 to 750,000
25.9
750,000 to 1,000,000
2kA
1,000,000 to 2,000,000
20.6
2,000,000 to 5,000,000
16.1
5,000,000 to 10,000,000
1^.0
10,000,000 to 50,000,000
11.s
50,000,000 and over
7.1
All groups
27.1
http://fraser.stlouisfed.org/
•
Federal Reserve Bank of St. Louis
&yc*
EARNINGS IN INDUSTRIAL AND AGRICULTURAL AREAS
99
CHART 3
PERCENTAGE OF NATIONAL BANKS EARNING
NOTHING IN NORTHEASTERN STATES AS CONTRASTED
WITH MID-CONTINENT STATES
PERCENT
40
SIZE GROUPS
PERCENT
40
Percentage of national banks showing annual l o s s e s or no net earnings
during 1926-1930
Bank6 grouped according t o s i z e of loans and investments
Table 3 - PERCENTAGE 01 NATIONAL B A M S IN NORTHEASTERN STATES
AS CONTRASTED WITH MID-CONTINENT STATES
SHOWING ANNUAL LOSSES OR NO NET EARNINGS
DURING 1926-1930
Banks Grouped According to Size of Loans and Investments
Size Groups
Loans and investments
Percentage of banks showing losses
Northeastern
states*
Mid-Continent
states**
Under $150,000
32.s
35-6
150,000 to 250,000
19.6
31.9
250,000 to 500,000
11.8
25.3
500,000 to 750,000
8.9
19.s
750,000 to 1,000,000
9.7
IS.2
1,000,000 to 2,000,000
7.5
16.8
2,000,000 to 5,000,000
6.5
9.7
5,000,000 and over
5.2
u,u
8.5
23.6
All groups
* Northeastern states:- Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, New Jersey,
Delaware, Pennsylvania, Maryland, District of Columbia.
** Mid-Continent states:- Louisiana, Texas, Arkansas, Oklahoma,
Minnesota, North Dakota, South Dakota, Iowa, Nebraska,
Missouri, Kansas,
101
CHART 4
PERCENTAGE OF NATIONAL BANKS EARNING
LESS THAN 3% IN NORTHEASTERN STATES AS CONTRASTED
WITH MID-CONTINENT STATES
ptHCENT
60
SIZE: GROUPS
PERCEHT
60
Percentage of national banks showing annual net earnings available
for dividends of l e s s than 3% on invested capital during 1926-1930
Banks grouped according to size of loans and investments
102
Table k - PERCENTAGE OF NATIONAL 3ANKS IN NORTHEASTERN STATES
AS CONTRASTED WITH MID-CONTINENT STATES
SHOWING ANNUAL NET EARNINGS AVAILABLE FOR DIVIDENDS
OF LESS THAN 3$ ON INVESTED CAPITAL
DURING 1926-1930
Banks Grouped According to Size of Loans and Investments
Size Groups
Loans and investments
Percentage of banks
earning l e s s than 3$
Mid-Continent
Northeastern
states**
states*
Under $150,000
51.7
51-*
150,000 to 250,000
32.5
^7.S
250,000 to 500,000
21+.2
38.U
500,000 to 750,000
19.1
32.9
750,000 to 1,000,000
18.7
3L5
1,000,000 to 2,000,000
15.2
30.6
2,000,000 to 5,000,000
12.S
18.2
5,000,000 and over
12.2
11.2
I6.9
37.0
All groups
* Northeastern states:- Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Delaware, Pennsylvania,, Maryland, District of Columbia.
** Mid-Continent states:- Louisiana, Tezas, Arkansas, Oklahoma,
North Dakota, Minnesota, South Dakota, Iowa, Nebraska, Missouri, Kansas.
103
1AENINGS 01 BANKS 3Y SIZE OP TOWN
CHART 5
PERCENTAGE OF NATIONAL BANKS EARNING NOTHING
POPULATION GROUPS
PER CENT
40
Percentage of national banks showing annual net losses
or no net earnings during 1926-1930
Banks grouped acoording to size of towns
Table 5 - PERCENTAGE OF HATIONAL BANKS SHOWING
ANNUAL NET LOSSES OR NO NET EARNINGS
DURING 1926-I93O
Banks Grouped According to Size of Towns
Size of towns
Percentage of banks
showing losses
Less than 5OO
22.9
500 to 1,000
20.9
1,000 to 2,500
IS.5
2,500 to 5,000
13.8
5,000 to 10,000
13.3
10,000 to 50,000
10.1
50,000 to 100,000
100,000 and over
All groups
9.^
10.0
15.s
106
CHART 6
PERCENTAGE OF NATIONAL BANKS EARNING LESS THAN 3 %
PER CENT
40
POPULATION GROUPS
PER CENT
40
Percentage of n a t i o n a l banks showing annual net earnings a v a i l a b l e
for dividends of l e s s than 2>% on invested c a p i t a l during 1926-1930
flanks grouped according to s i z e of towns
107
Table 6 - PERCENTAGE OJ NATIONAL B A M S SHOWING ANNUAL NET
EARNINGS AVAILA3LE FOR DIVIDENDS OP LESS THAN 3$
ON INVESTED CAPITAL DUEING 1926-1930
Banks Grouped According to Size of Towns
Size of towns
Percentage of banks
earning less than 3$
Less than 500
35.9
500 to 1,000
33-0
1,000 to 2,500
30.1
2,500 to 5,000
25.2
5,000 to 10,000
23.5
10,000 to 50,000
20.2
50,000 to 100,000
18.3
100,000 and over
21.5
All groups
27.1
108
TYPICAL OPERATING PATIOS BY SIZE OP 3 A M
CHART 7
GROSS AND NET EARNINGS OF NATIONAL BANKS
BY SIZE GROUPS
Amounts of annual gross and net earnings per $100 of loans and i n v e s t ments for a l l banks in each group averaged for y e a r s 1926-1930
Banks grouped according to size of loans and investments
Table 7 - ANNUAL GROSS AND NET EARNINGS PER $100
OF LOANS AND INVESTMENTS I'OR ALL NATIONAL BANKS
IN EACH GROUP AVERAGED FOB YEARS I926-I93O
Banks Grouped According to Size of Loans and Investments
Size Groups
, Loans and investments
Under $150,000
Amounts p<3r $100 of
loans and :investments
Gross income
$
9-18
Net income
$
.02
150,000 to 250,000
S.06
.50
250,000 to 500,000
7.35
.70
500,000 to 750,000
6.99
.93
750,000 to 1,000,000
6.7U
• 99
1,000,000 to 2,000,000
6.52
1.05
2,000,000 to 5,000,000
6.55
1.13
5,000,000 to 10,000,000
6.37
1.1^
10,000,000 to 50,000,000
6.39
1.21
50,000,000 and over
6.O9
1.37
Ill
CHART 6
EXPENSES AND LOSSES OF NATIONAL BANKS
BY SIZE GROUPS
Amounts of annual expanses and l o s s e s per $100 of loans and investments
for a l l banks in each group averaged for years 1926-1930
Banks grouped acoording t o s i z e of loans and investments
Table 8 - ANNUAL EXPENSES AND LOSSES PER $100 OF
LOANS AND INVESTMENTS POR ALL NATIONAL BANKS
IN EACH GEOTJP AVERAGED POE YEASS 1926-I93O
Banks Grouped According to Size of Loans and Investments
Amounts per $100 of loans and investments
Size Groups
Loans and investments
Interest
on
deposits
Salaries
and
wages
Other
expenses
Net
losses
$ 1.3^
$ 3.32
$ 2.81
$ I.69
150,000 to 250,000
1.7^
2.U6
2.0U
1.33
250,000 to 500,000
1.97
1.95
1.6l
1.13
500,000 to 750,000
2. (ft-
1.66
1.U0
.91
750,000 to 1,000,000
2.08
1.51
1.30
.86
1,000,000 to 2,000,000
2.18
1.38
1.20
.75
2,000,000 to 5,000,000
2.2U
1.31
1.18
.70
5,000,000 to 10,000,000
2.28
1.19
1.15
.62
10,000,000 to 50,000,000
2.17
1.22
1.19
• 59
50,000,000 and over
2.00
1.10
1.08
.53
Under $150,000
113
CHART 9
GROSS EARNINGS OF
NATIONAL BANKS IN NORTHEASTERN STATES AS CONTRASTED
WITH MID-CONTINENT STATES
SIZE GROUPS
OF DOLLARS
Amounts of annual gross earnings per $100 of loans and Investments
for a l l banks in each group averaged for years 1926-1930
Banks grouped according t o s i z e of loans and investments
114
Table 9 - ANNUAL GROSS EARNINGS PER $100 OF
LOANS AND INVESTMENTS FOR ALL NATIONAL
B A M S IN EACH GROUP AVERAGED
FOR YEARS I926-I93O
Banks Grouped According to Size of Loans and Investments
Size Groups
Loans and investments
Amounts of annual gross earnings
per $100 of loans and investments
Mid-Continent
Northeastern
States
States
$ 6.14-0
$ 9.83
150,000 to 250,000
6.32
8.69
250,000 to 500,000
6.29
7-SS
500,000 to 750,000
6.32
7.6U
750,000 to 1,000,000
6.33
7.31
1,000,000 to 2,000,000
6.27
7.15
2,000,000 to 5,000,000
6.2S
7.01
5,000,000 and over
6.15
6.62
Under $150,000
115
CHART 20
EXPENSES AND LOSSES OF
DOLLARS
NATIONAL BANKS IN NORTHEASTERN STATES AS CONTRASTED
WITH MID-CONTINENT STATES
SIZE GROUPS
I Mew Englandand
Wistern Grain and
•Southwestern States
\MiddkAt/a/rficStates
Amounts of annual expenses and losses per $100 of loans and investments
for all banks in each group averaged for years 1926-1930
Banks grouped according to size of loans and investments
116
Table 10 - ANNUAL EXPENSES AND LOSSES PES $100 OF LOANS AND
INVESTMENTS FOE.ALL NATIONAL BANKS IN EACH GROUP
AVERAGED FOR YEARS 1926-1930
Banks Grouped According to Size of Loans and Investments
Amount
Intelrest
on deiDosits
Size Groups
North- MidLoans and investments
eastConern
tinent
states states
Under $150,000
$1.39
per $100 of loans and invesltments
Other
Salaries
Net 1<)sses
expenses
and waees
North- Mid- North- Mid- North- MidCon- easteastCon- eastContinent
tinent
ern
tinent
ern
ern
states states states states states states
$1.27 $2.12 §3.&3 $2.05 $2.95 $1.11 $1.96
150,000 to 250,000
I.56
1.75
1.76
2.71
1.U8
2.22
• 57
1.66
250,000 to 500,000
1.90
2.00
1.^3
2.22
1.23
1.78
.61
i.*3
500,000 to 750,000
2.01
2.12
1.30-
1.93
1.12
1.55
• 59
1.19
750,000 to 1,000,000
2.12
2.09
1.21
I.83
1.09
l.UU
.63
l.lU
1,000,000 to 2,000,000
2.28
2.12
1.15
1.70
1.01
1.41
.56
l.ll
2,000,000 to 5,000,000
2.39
2.0S
1.09
1.60
.99
1.^2
.56
.90
5,000,000 and over
2.33
2.13
1.05
I.36
1.00
1.35
•55
.66
APPENDIX
FEDERAL RESERVE COMMITTEE ON
BRANCH, GROUP AND CHAIN BANKING
ANALYSIS OF BANK EARNINGS
(Use a separate blank for each year for each bank)
State
Year.
Name of bank.
City
Federal Reserve District No..
PERCENTAGES OF GROSS EARNINGS
Per cent
(two decimals)
1. Interest and discount on loans and investments
(A -5- C)
1.
2. Other earnings
(B -5- C)
2.
3. Salaries and wages
(D -5- C)
3.
4. Interest paid on gross deposits
(E -f- C)
4.
5. Other expenses
(F -5- C)
5.
6.
(G •*• C)
6.
(H -5- C)
7.
(3 + 4 + 5 + 7)
8.
Q-5-C)
9.
Net earnings
7. Net losses
8.
Total expenses and losses
100%
100%
100%
9. Net addition to profits
PERCENTAGES OF LOANS AND INVESTMENTS
10. Interest and discount on loans and investments
(A -s- K)
10.
11. Other earnings
(B -f- K)
11.
12.
Total earnings
(10 + 11)
_ =
12.
13. Salaries and wages
(D -5- K)
13 1
14. Interest paid on gross deposits
(E -r- K)
14.
15. Other expenses
(F+K)
15.
16.
(G -5- K)
= Item 12
Net earnings
17. Net losses
18.
_ _
(H-fK)
Total expenses and losses
. (13 + 14 + 15 + 17)
16.
17.
___
18.
= Item 12
19. Net addition to profits
(j-i-K)
19.
20. Capital, surplus, profits and reserves
(L -f- K)
20.
21. Gross deposits
(N -*• K)
21.
22. Net earnings (before losses) to invested capital
(G -f- L)
22.
23. Net addition to profits to invested capital
(J -=- L)
23.
(M -5- N)
24.
25. Invested capital to gross deposits
(L -r- N)
25.
26. Interest on deposits to gross deposits
(E -5- N)
26.
OTHER PERCENTAGES
24. Time deposits to gross deposits
NOTE.—Check ratios by seeing that: (a) Items 1 + 2 equal 100 per cent; (b) Items 3 to 6 equal 100 per cent; (c) Items 8 + 9
equal 100 per cent; (d) Items 13 to 16 equal item 12; (e) Items 18 + 19 equal item 12; (f) Items 20 to 26 are calculated twice.
November 6, 1931
Federal Reserve Committee on
Branch, Group and Chain Banking
B R A N C H
B A N K I N G
Preliminary material subject to revision
118
BRANCH
TAMjm
Since 1900 the number of branches of State and national banks
in the United States has increased from 111 to 3;^3>
part of this development has occurred since 1320o
and
- the greater
The extension of
branches was confined almost entirely to State banks prior to 1921, but
since that time the number operated by national banks has grown almost
as rapidly as those of State banks.
Most of the increase has occurred
among branches situated in the same city with the head office, and at
the present time these compose about two-thirds of the total.
The to-
tal number of branches in the country declined somewhat between the
middle of 1930 a n ^ th.e middle of 1931 *"or
tile
first time since annual
figures have been available.
These developments are shown in Charts
1-3» Table 1 and Appendix I,
The figures in these and the following
charts and tables give the branches of State and national banks, including trust companies and stock savings banks, but exclude branches of
mutual savings banks and private banks, of which there are comparatively
few.
Geographic distribution:
Charts H-8, Tables 2-7, and Appendix II give
certain geographical distributions of branches, including groups of
States according to the legal status of branch banking.
Nine States
and the District of Columbia permit State-wide branch banking.
these States there are 1,276 branches or 37 P e r
cen,fc
In
°f t h e total.
The principal State in this group is California with 819 branches.
There are fifteen States which permit branches restricted as
119
to l o c a t i o n .
These States usually r e s t r i c t 'branches to the sane c i t y
in which the parent "bank i s located "but sometimes to the same county or
contiguous counties.
Over 60 per cent of a l l branches in the country
are located i n those 15 S t a t e s .
The chief States in t h i s group a r e
New York with 707 "branches, Michigan with H03 "branches, and Ohio with
269 "branches.
In the other 2^ States which e i t h e r p r o h i b i t the establishment
of additional branches or make no provision i n law for branches, there
are only H6 in operation.
Size of towns in which branches operate:
Chart 9 snd Tables 8 and 9
classify branches according to size of town.
Over 63 p e r c e n t of the
branches i n the country a r e in towns of 100,000 or more population.
The
p r i n c i p a l branch banking c i t i e s are New York City with 557 branches and
Detroit with 2lk (Table
lh).
Size of branch systems:
Charts 10 and 11 and Tables 10 and 11 c l a s s i f y
branch systems by s i z e .
Over 55 per c e n t of the branches in the United
States are operated by banks with loans and investments of $50,000,000
or more, and another 21 per cent are operated bjr banks with loans and
investments of $10,000,000 to $50,000,000.
Nearly 70 per cent of a l l
banks with loans and investments of $50,000,000 or more have branches.
Table 12 c l a s s i f i e s the number of branch systems according to
the number of branches i n each system.
Of the 722 banks with branches
on June 30, 1931. over half, or 380 had but one branch each.
number of branches belonging to one bank was 350.
The l a r g e s t
The largest branch
121
systems, however, are by no means identical with the largest banks, and
the majority of the latter appear to owe very little of their size to
their branches.
This is illustrated in Table 13, which lists the 20
largest banks having branches.
each.
Four of these have only two branches
The loans and investments of these twenty amount to practically
50 per cent of the loans and investments of all banks having branches.
Sources
The historical data relating to branches before 1926 wers assembled by the Federal Reserve Committee on Branch, Group and Chain Banking with the cooperation of the Federal reserve banks and the State
superintendents of banking.
The data comes in part from the records of
the State banking departments, in part from the records of the Federal
Reserve Board, and in part from the Banking Inquiry of 1925.
The data
for the years 1926 to 1931 are from current records of the Federal Reserve Board.
Table 1 - NUMBER OF BRANCH SYSTEMS AND NUMBER OF BRANCHES
IN THE UNITED STATES*
1900-1931
Year**
1900
1905
1910
1915
1920
1921
1922
1923
1924
1925
1926
1927
192S
1929
1930
1931
*
Number of
banks with
branches
79
Nunaber of brandies
Outside
In
Total
head office head office
branches
city
city
188
292
25
135
271
397
U35
530
547
610
671
706
719
742
738
773
763
749
722
904
1,156
I.327
1,51*+
1,724
1.877
1.958
2,1^0
2,275
2,385
2,299
77
?
S6
207
277
350
507
m
727
785
801
824
954
995
1,075
1,131
1,164
111
342
548
785
1,280
1,454
1,800
2,054
2,299
2,525
2,701
2,912
3.135
3,350
3,5l6
3.463
Figures are given separately for State banks and national
banks in Appendix I.
** For the years 1900 to 1923 inclusive the figures are not as
of any uniform month. For 1924 they are as of June, for
I925 and 1926 as of December, and for 1926 to 193I inclusive
they are as of June.
Note:- This and following tables give revised figures for 1929 and
1930 on the basis of additional data received since the preparation of previous summaries of branch banking by the Federal Reserve Board. Furthermore, mutual savings banks and private banks reported as operating branches have been omitted.
Mutual savings banks thus excluded numbered 71 at the end of
June 1931, with 110 branches and Joans and investments of
$3,715,000,000. Private banks excluded numbered 3 °n the
same date, with 4 branches and loans and investments of
$684,000.
Where comparisons in these tables are made with
all active banks, private and mutual savings banks have likewise been eliminated from the active bank figures.
124
CHART 2
NUMBER
NUMBER OF BANKS OPERATING BRANCHES
IN THE UNITED STATES
NUMBER
800
Number of State and national banks operating branches in the United
States, 1900-1931. Prom 1900 to 1920 figures are for five year periods, but from 1920 to 1931 they are annual
125
CHART 3
NUMBER
2,500
BRANCHES OF NATIONAL AND STATE. BANKS
IN THE UNITED STATES
NUMBER
Z.500
Number of branches of State and national banks i n t h e United S t a t e s ,
1900-1931, From 1900 t o 1920 the figures are for f i v e y e a r p e r i o d s , but
from 1920 t o 1931 they are annual
X£6
GEOGRAPHIC DISTRIBUTION OF BRANCHES
±27
CHART 4
STATUS OFSTATE LAWS ON BRANCH BANKING
JUNE 30,1931
128
CHARTS
NUMBER
2,500
BRANCHES OF BANKS
INSTATES PERMITTING BRANCHES
NUMBER
2,500
Number of branches of State and national banks in those states which
on June 30, 1931 permitted the establishment of state-wide branches
and. branches restricted as to location
Table 2 - BRANCH SYSTEMS IN STATES RESTRICTING BRANCHES
AS TO LOCATION*
Year
1900
1905
1910
1915
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931
Number of
banks with
branches
^5
119
175
227
319
32
1
365
m
U39
U61
1+82
I4-96
522
525
516
50l+
Number of b r a n d•xes
Outside
In
Total
head office head office
branches
city
city
20
123
230
369
671
781
906
1,006
1,152
1,295
1,^15
1,509
1,653
l.SW
1,926
1,35s
^5
65
90
ill
135
180
190
198
230
245
2^5
232
23U
2%
2^7
257
283
213
314i
50^
851
971
i,ioU
1,236
1,397
1,51+0
1,61+7
1,7^3
1,896
2,051
2,183
2,lUl
* iegal status as of June 30, 1931* These states are:
Georgia, Indiana, Iowa, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Mississippi, Montana, New Jersey, New
York, Ohio, Pennsylvania, Tennessee.
130
Table 3 - BRANCH SYSTEMS IN STATES PERMITTING
STATE-WIDE BRANCH BANKING*
Tfnm'hAT* c\"P
Year
1900
1905
1910
1915
1920
1921
1922
1923
1924
1925
1926
1927
192S
1929
1930
1931
banks with
"branches
24
46
Number of branches
In
Outside
Total
head office head office
city
city
1
6
si
137
27
180
1SS
215
91
113
230
300
342
239
240
232
235
217
220
215
212
197
53
443
43O
46S
452
440
422
26
81
120
169
280
402
27
87
1^7
222
371
427
632
U56
756
499
517
558
686
718
841
930
795
843
854
1,001
1,116 .
1,186
1,247
1,283
1,276
Legal status as of June 30, 1931*
These states are: Arizona,
California, Delaware, District of Columbia, Maryland, North
Carolina, Rhode Island, South Carolina, Vermont, Virginia.
131
CHART 6
NUMBER
1200
DISTRIBUTION OF BRANCHES
BY GEOGRAPHIC DIVISIONS - JUNE 30,1931
NUMBER
1200
Number of branches of State and national banks arranged according
to the geographic divisions in which they are situated
132
Table k - BRANCH SYSTEMS BY GEOGRAPHIC DIVISIONS
Geographic
divisions
Number <3f hanks
with hi"anches
Loans and
investments
(000 omitted)
June
June
1920
1931
Number of
branches
June
1931
63
97
92
126
2U0
365
1,126
North Central
93
ill
336
696
922,960
2,768,3^
Southern Mountain
32
67
52
139
98,982
^38,538
South Eastern
SO
9\
132
2*+5
152,939
370,161+
South Western
36
Uk
86
108
20^,157
210,292
Western Grain
2
33
2
*3
10.H80
186,626
Rocky Mountain
9
9
25
29
15,621+
18,00^
89
57
190
S25
839,1+sk
2,1+77,967
530
722
1,280
3,^63
New England
Middle Atlantic
Pacific Coast
UNITED STATES
June
1920
June
1911
June
1920
252 $
597,531 $ 1,789,015
k,0^k,6^
12,331.770
$ 6,896,851 $20,590,72!+
Table 5 - BRANCHES INSIDE AMD OUTSIDE THE CITY Of HEAD OFFICE
BY GEOGRAPHIC DIVISIONS, JUNE 30, 1931
Geographic
divisions
Number
of banks
with
branches
Number of
branches Number of
Number of
outside branches
Total
branches
head
outside number of
in head
county of branches
office
office
city but
head
city
in same
office
county
97
150
64
32
252
Middle Atlantic
2^0
1,01*0
56
30
1,126
North Central
111
663
28
5
696
Southern Mountain
67
73
33
33
139
South Eastern
64
Ho
42
163
2U5
South Western
1*
51
52
5
108
Western Grain
33
8
26
9
^3
•• •
13
16
29
57
27U
89
462
825
722
2,299
403
76l
3,463
New England
Rocky Mountain
Pacific Coast
Total
9
134
CHART 7
NUMBER
300
DISTRIBUTION OF BRANCH SYSTEMS
BY GEOGRAPHIC DIVISIONS-JUNE 30,1951
NUMBER
300
Hunber of State and national banks with branches arranged
according to the geographic divisions in which they are located
1
CHART 8
In California there are numerous branches In the metrop o l i t a n areas centering around San Franoiseo and Los Angeles,
but t e c h n i c a l l y outside their c i t y l i m i t s . On the map the
dots extend muoh beyond the t e r r i t o r y in which the branches
are actually located around these o l t i e s .
In the terms of the Iowa law, no "branches" are permitted
in that s t a t e , but banks are authorised to have "offices" in
the sane and contiguous c o u n t i e s . Although the functions of
these offloee are limited, they are included here in the general c l a s s i f i c a t i o n of branohes.
1
Table 6 - LOANS AND INVESTMENTS OF BRANCH SYSTEMS COMPARED
WITH LOANS AND INVESTMENTS OP ALL BANKS
JUNE 30, 1931
States classified
according to
law regarding
branch banking
State-wide branch banking permitted
Loans and
Loans and
investments of investments of
banks operating
all active
branches
banks
(000 omitted) (000 omitted)
Per cent of
total in
branch
systems
$ 3,70^,327
$ 5,624,173
65.9
Branches restricted as to
location
l6,44l,091
2S,0S2,6l7
58.5
Establishment of branches
prohibited
444,701
10,063,209
4.4
605
654,935
.1
$20,590,724
$44,424,934
46.3
No provision in State
law
Total
137
Table 7 - NUMBER OF BAMS AND BANKING OFFICES IN
BRANCH SYSTEMS COMPARED WITH ALL BANKS,
JUNE 30, 1931
Branch systems
All active banks
Ratio of
branch
States classified
systems
Total
Total
according to
to
total
Number
banking
banking
Number
law regarding
number
offices
of
offices
of
branch banking
banks (banks and banks (banks and of banks
branches) (per cent)
branches)
Ratio of
banking
offices in
branch
systems
to total
banking
offices
(per cent)
State-wide branch
banking permitted
197
1.U73
1,75"+
3,030
11.2
Ug.6
Branches restricted
as to location
50^
2,645
8,k68
10,609
6.0
2U.9
20
65
9,580
9,625
.2
.7
1
2
1,321
1,322
.1
.2
722
H.1S5
21,123
2^,586
3.*
17.0
Establishment of
branches prohibited
No provision in
State law
Total
138
SIZE OF TOMS III WHICH BRANCHES OPERATE
139
CHART 9
NUMBER
2200
DISTRIBUTION OF BRANCHES
BY SIZE OF TOWN-JUNE 30 1931
NUMBER
2200
Number of branches of State and national banks arranged according
to the size of town in which they are situated
140
Table 8 - BRANCHES BY SIZE OF TOVJN
JUKE 30,
Population
of town
Under 5OO
500 to 1,000
1,000 to 2,500
2,500 to 5,000
5,000 to 10,000
10,000 to 25,000
25,000 to 50,000
50,000 to 100,000
100,000 and over
Total
1931
In head
Outside head
Total
office city. office city
Number Per
Number Per
Number Per
cent
cent
cent
2
185
169
212
139
15.9
1^.5
18.2
12.0
187
169
219
IU5
2,043
106
92
*7
60
15*
9.1
1.2
3.0
5.7
88.9
117
121
117
191
2,197
H
Si
2,299
100.0
1.16U
100.0 3.^3
100.0
•
•
•
I
11
29
70
.1
•• •
•3
.5
7.9
k.o
5.2
13.2
6.3
U.2
3.*
Table 9 —
BHAKCH SYSTEMS BY SIZE 0? T O W OF EEiD OFFICE,
JUHS! 30, 1931
Population
of
town
Number
of
banks
Per cent
of
total
Per cent
of
total
Loans and
investments
(000 omitted)
Under 500
26
3.6
$15,20S
.1
500 to 1,000
3S
5.3
23,2b2
.1
1,000 to 2,500
6l
S.4
6S,7^5
.3
2,500 to 5,000
54
7.5
102,59*+
.5
5,000 to 10,000
39
5.4
91,011
.4
10,000 to 25,000
57
7.9
224,114
1.1
25,000 to 50,000
60
8.3
3SS.42S
1.9
50,000 to 100,000
79
10.9
ssi,309
4.3
308
42.7
is,796,053
91.3
722
100.0
$20,590,724
100.0
100,000 and over
Total
>
142
SIZE OF BHMCH SYSTEMS
143
CHART 10
NUMBER
2000
DISTRIBUTION OF BRANCHES ST SIZE OF
BANKS TO WHICH THEY BELONG-JUNE 30,1930
NUMBER
2000
Number of branches of State and national banks arranged according
to the amount of loans and investments of the branch systems to
to which they belong
144
CHART 11
NUMBER
DISTRIBUTION OF BRANCH SYSTEMS
BY SIZE OF LOANS AND INVESTMENTS -JUNE 30,1930
NUMBER
200
Number of branch systems, State and national, arranged according
to the amount of their loans and investments
200
Table 10 — BRANCH SYSTEMS CLASSIFIED BY SIZE OF LOANS AND
INOSTMElvTS, JUEB 30, 1931
S i z e Groups
Loans and i n v e s t m e n t s
Aggregat e
Number
lumber Per cent l o a n s rnd
Fer c e n t
of ba:ir:s
of
of
of
investments
with
t
o
t
a
l
t
o
tal
b
r
a
n
c
h
e
s
(000. omitted)
branches
Under $150,000
11
11
.3
$1,064
150,000 to 250,000
17
20
.6
3,1^0
250,000 to 500,000
^7
52
1.5
17,537
.1
500,000 to 750,000
30
37
l.l
17,895
.1
750,000 to 1,000,000
32
^5
1.3
27,2U2
.2
1,000,000 to 2,000,000
87
125
3.6
123,361
.6
2,000,000 to 5,000,000
136
283
8.2
^58,SIS
2.2
5,000,000 to 10,000,000
11s
25^
7.3
ssU,909
10,000,000 to 50,000,000
169
716
20.7
3,618,996
17.6
75
1,920
55 A
15,^37,762
7^.9
722
3.^3
100.0
20,590, 72U
100.0
50,000,000 and over
Total
146
Table 11 — RATIO OF BBMCH SYSTEMS TO ACTIVE BATIKS, BY SIZE
OF LOAHS AiTD INVESTMENTS, JUNE 30, 1930.
Size Groups
Loans and Investments
lumber of
a l l tanks
in the U.S.
Per cent of
Ifumber of
a l l banks
"banks'- .
with branches operating branches
Under $150,000
M39
6
.12
150,000 to 250,000
3,510
g
.23
250,000 to 500,000
M-,966
^9
•99
500,000 to.750,000
2,362
kl
1.7*
750,000 to 1,000,000
1.552
22
1.U2
1,000,000 to 2,000,000
2,600
S5
3.27
2,000,000 to 5,000,000
1.SS7
iij6
7.7*
5,000,000 to 10,000,000
59b
123
20. ok
10,000,000 to 50,000,000
>+53
199
* ^3.93
50,000,000 and over
101
70
6q.3o
22,866
7U9
3.28
Total
Table 12 — 3TE33R OF 3RMCH SYSTEHS CLASSIFIED BY WJ&ZZL OF BHA2TCH3S
Iff EACH SYST314.JOT3 30, 1931
Number of
"branches
per bank
Aggregate
number of
branches
Number of banks
with
branches
1
2
3
4
5
380
115
65
6
7
9
10
11
6
7
7
4
66
42
56
63
4o
457,363
185,213
309,829
265,92s
247,150
11-15
1S-20
a-30
27
9
7
33^
167
169
2.272,232
633,941
1,443,961
33
34
36
37
38
1
2
1
1
1
33
6g
36
37
38
98,933
s4s,09i
219,407
225,203
98,832
1+3
44
2
1
2
1
g6
44
108
57
S3
1.3S1.B1?
21,9p,4
1,111,877
265,si5
50,054
1
1
1
1
1
1
67
80
93
126
150
350
722
3,^63
215,286
339,011
209,131
458,363
376,200
S65.S54
$20,590,724
4o
25
s
5k
57
63
67
SO
93
126
150
350
Total
r
!
380
230
195
160
125
Aggregate
loans and
investments
(000 omitted)
$2,261,293
3,353,849
929,146
1,000,575
534,4is
148
Table 13 - TWENTY LARGEST BANKS HT THE UNITED STATES WHICH OPERATE BRANCHES
JUNE 30, 1931.
Name
Chase National Bank, New York
Guaranty Trust Co., New York
National City Bank, New York
Bank of America N.T. & S.A., San Francisco
Central Hanover Bank & Tr.Co., New York
Bankers Trust Company, New York
Irving Trust Company, New York
Security F i r s t Nat. Bank, Los Angeles
F i r s t National Bank, Boston
Chemical Bank & Trust Co., New York
Peoples Wayne County Bank, Detroit
Bank of Manhattan Trust Co., New York
Philadelphia Nat. Bank, Philadelphia
Cleveland Trust Co., Cleveland
Union Trust Company, Cleveland
New York Trust Co., New York
Manufacturers' Trust Co., New York
Penn Co. for Insurance on L i v e s , e t c . , P h i l a .
Bank of America - N.A., New York
Marine Trust Company, Buffalo
Twenty l a r g e s t hanks with branches
All other (702) hanks with branches
All banks (722) with branches
Loans and
investments
(000 omitted)
Number
of
branches
(a, 6 3 9 , ^ 0
U3
2
1,092,965
5^
1,017,69S
865,35^
350
570, M+5
15
500,230
2
i+90,927
27
U5S,363
126
1136,19s
21
ik
399,267
376,200
150
339,011
80
2
295, SsU
265,215
57
263,225
22
•2^7,661
2
^3
2^1,975
233,62k
11
225,203
37
219.^07
?6
31.6$
;)10,1SU,192 49,5$ L09U
10.U0b.532 50. 5% 2,369
Sg.i#
$20,590,72H 100.0 3,^63 100.0
Table l4 — NUMBER 01 BRANCH SYSTEMS AND BRANCHES IF TEE ELEVEN
LARGEST CITIES 0? THE UNITED STATES, JUKE 30, 1931
Cities
Population
1930
census
Number
Number Number
Loans and
of
investments
of
of
Total
banlrs
of br,nks with branches branches branches
branches
with
within outside
branches (000 omitted) c i t y
city
New York City
6,930,446
51
Chicago
3,376,438
-
Philadelphia
1,950,961
30
1,332,589
104
Detroit
1,568,662
7
755,670
274
Los Angeles
l,238,04g
9
723,774
*157
133
•290
Cleveland
900,429
10
805,996
93
21'
114
S t . Louis
821,960
-
Baltimore
804,S74
9
279,278
56
Boston
781,188
13
921,721
64
-
64
Pittsburgh
669,817
3
186,985
9
-
9
San Francisco
634,394
7
1,503,286
95
366
461
Total 11 c i t i e s 19,677,217
139
$14,537,000
1,409
522
1,931
Remainder U. S. 103,097,825
583
6,053,724
S90
642
1,532
122,775,042
722
$20,590,724
2,299
1,164
3,^63
Total U. S.
$8,027,701
-
-
557
-
557
-
-
•
274
-
-
-
2
•Exclusive of 79 branches belonging to banks outside Los Angeles.
io4
58
150
APPENDICES
A P P E N D I X
I
BDMB3R 0? STATS AM) MTIOI'AL BAT'S 17ITH BRil'CHSS AI© MJMBER
OF BHA1TCK3S I1T THE UNIT3D STAT3S, 1900-1931
Year
N a t i o n a l banks
Number
Number
jSfunfb er of b r a n c h e s
of
of n a t i o n a l banks
of
Outside
state
n a t i o n a l In
Total
head b r a n c h e s
"banks
"banks head
o f f i c e o f f i c e of n a t i o n with
with
c i t y a l banks
branches c i t y
branches
S t a t e banks
Fuiiiber of branches
of s t a t e banks
Outside
Total
In
head
branches
head
office
of s t a t e
office
c
i
t
y
banks
city
1900
5
1
4
5
74
24
82
106
1905
5
1
4
5
183
134
203
337
1910
9
1
11
12
283
270
266
536
1915
12
15
11
26
3S5
420
339
759
1920
21
4i
22
63
509
732
485
1,217
1921
23
50
22
72
524
854
528
1,382
1922
55
118
22
i4o
555
1,038
622
1,660
1923
91
181
23
204
580
i,i46
704
1,850
1924
112
233
23
256
594
1,281
762
2,043
1925
130
29b
22
31s
5S9
1,428
779
2,207
1926
l4g
384
37
421
594
1,493
787
2,280
1927
153
433
290
723
535
1,525
664
2,189
192S
171
595
339
934
602
1,545
656
2,201
1929
167
650
345
995
596
1,625
730
2,355
11930
166
703
340
1,043
5S3
1,682
791
2,473
1931
164
714
396
1,110
558
1,585
768
2,353
.. .
A-0,<£
A P F 3 iT D I X
II
NUMBER 0? BASES Xm BRA3CHSS BY STATES, JUKE 30, 1931*
States classified
according t o law
regarding branch
•banking
Total
number
of
"banks
Total
Banks wj„th branches
number
Other
City
of
systems systems T o t a l
**
branches
Number of b r a n c h e s
Outside
In head
head offoffice
ice city
citv
STAT3-WID3 BRANCH BASKEJG FBHMITTED
Arizona
California
Delawaro
D i s t . of Columbia
Maryland
North C a r o l i n a
Rhode I s l a n d
South C a r o l i n a
Vermont
Virginia
Total
37
4l0
59
39
205
3 24
26
l4o
84
430
1,75^
26
S19
12
26
11s
SO
wm
S
S
23
2
12
12
30
4
53
6
271
2
5
*w
26
548
10
—
—
l4
22
12
26
26
27
12
59
59
78
11
12
16
20
S
—
28
10
30
422
854
19
16
1
36
S
3
81
10
3
Q
2
5
53
13
22
7
35
1,276
SO
117
197
j
73
BRA5CH3S RESTRICTED AS TO LOCATION
Georgia
Indiana
Iowa
Kentucky
Louisiana
Maine
Massachusetts
Michigan
Mississippi
Montana
New J e r s e y
New York
Ohio
Pennsylvania
Tennessee
Total
344
713
1,107
515
206
90
24S
672
267
165
515
904
871
1,418
433
8,468
p
35
15
35
•4
24
106
6
72
133
4o3
22
—
104
707
269
159
57
2,l4l
-
10
2
53
56
8
1
29
2
32
20
-
l
3
S
13
5
29
8
42
22
56
56
9
14
21
51
7
127
403
l
—
52
82
-
—
2
—
54
94
82
3S
56
6
4
8
16
707
238
152
24
373
131
44
60
24
504
1,858
35
3
55
65
6
—
21
—
10
—
31
7
33
283
APPS1TDIX
II (Cont'd)
NUMBSH 0? BANKS MD 3BA1TOESS 3 1 STAT3S, JUNE 3 0 , 1931*
States classified
according to law
regarding branch
banking
Total
number
of
banks
Total
B;.uv:s w i t h b r a n c h e s Number of b r a n c h e s
In head
Outside
number
Other
City
Total office
head offof
systems systems
city
ice city
branches
ESTABLISHED C ? 3EA1*CE3S PR0EI3IT3D BY LAW
Alabama
Arkansas
Colorado
Connecticut
Florida
Idaho
Illinois
Kansas
Minnesota
Missouri
Nebraska
Nevada
New Mexico
Oregon
Texas
Utah
Washington
West V i r g i n i a
Wisconsin
Total
284
321
250
156
193
131
1,463
972
17
2
—
—
-
—
—
—
-
933
1,100
727
6
2
-
-
2
2
33
-
3
-
l
1
-
—
51
215
1,176
96
307
262
910
9,580
3
3
2
2
_
_
—
-
_
—
—
—
—
—
—
-
2
6
-
-
17
2
_
—
—
—
—
—
—
-
-
2
2
-
-
-
—
-
3
3
-
-
1
1
1
3
1
-
1
2
-
-
-
9
5
1
6
8
1
45
11
9
20
19
26
5
-
2
NO PROVISION III STAT5 LAW REGARDING BRANCH 3ANKING
l
1
i
i
i
states
21,123
3.^63
464
258
722
2,299
1,164
National
S t a t e members
S t a t e nonmembers
6,800
982
13,3^1
1,110
1,287
1,066
152
137
175
12
18
228
l64
155
4o3
7l4
396
1,157
428
130
Total a l l
1,321
1
1
t
l
Total
1
1
1 1 1 1
1
i
302
550
318
82
l
1
69
i
New Hampshire
North Dakota
Old. oho ma
South Dakota
Wyoming
•Mutual s a v i n g s banks and p r i v a t e "baits a r e excluded.
"""Includes ban-.s o p e r a t i n g b r a n c h e s i n head o f f i c e c i t y and contiguous
territory only.
638
APPENDIX
III
LOANS MD INVESTMENTS OF ALL BAMS AND OP BAMS OPERATING BRANCHES, BY STATES
JUNE 30, 1931*
(In thousands of d o l l a r s )
States classfied according
to law regarding branch
"banking
All
active
banks
Banks operating tranches
City
Other
Total
Systems** Systems
STATE-WIPE BRANCH BANKING- PERMITTED
Arizona
Cal ifornia
Delaware
Dist. of Columbia
Maryland
North Carolina
Rhode Island
South Carolina
Vermont
Virginia
Total
62,701
3,1^9,193
135,50^
24g,4s3
617,403
278,577
363,054
136,43S
142,736
489.084
5,624,173
«•,
562,814
44,276
151,753
284,284
16,135
53,214
10,039
3,268
134.660
1,260,443
17,792
1,838,943
4o,34o
-
61,54s
92,244
274,756
61,506
23,747
33,008
2,443,884
17,792
2,401,757
s4,6l6
15U53
345,S32
108,379
327,970
71,545
27,015
167.668
3,704,327
BRANCHES RESTRICTED AS TO LOCATION
Georgia
Indiana
Iowa
Kentucky
Louisiana
Maine
Massachusetts
Michigan
Mississippi
Montana
New Jersey
New York
Ohio
Pennsylvania
Tennessee
Total
291,430
631,320
682,833
421,243
376,509
301,284
1,942,457
1,722,276
147,477
119,482
1,963,337
11,698,632
2,315.657
5,120,128
347,952
28,082,617
102,140
74,504
-
99,212
163,143
4,451
1.254,838
1,110,241
8,388
-
889,353
9,084,453
1,092,528
1,685,386
137.382
15,706,019
61,357
290
17,333
3,H5
45,980
138,469
35,667
-
13,334
-
70,042
-
297,989
20,335
3l.l6l
735,072
163,497
74,794
17.333
102,327
209,123
142,920
1,290,505
1,110,241
a,722
-
959,395
9,084,453
1,390,517
1,705,721
168.543
16,441,091
A P P E N D I X
III (Cont'd)
LOANS AND INVESTMENTS OP ALL BANKS AND OP BANKS OPERATING BRANCHES, BY STATES
JUNE 30, 1931*
(In thousands of dollars)
S t a t e s c l a s s i f i e d according
t o law r e g a r d i n g branch
"banking
All
active
hanks
Banks o-perating "branches
Other
City
Total
systems
systems**
ESTABLISHMENT OP BRANCHES PROHIBITED BY LAW
Alabama
Arkansas
Colorado
Connecticut
Florida
Idaho
Illinois
Kansas
Minnesota
Missouri
Nebraska
Nevada
Now Mexico
Oregon
Texas
Utah
Washington
'Test V i r g i n i a
Wisconsin
Total
Hew Hampshire
N o r t h Dakota
Old. ohoma
South Dakota
Wyoming
Total
T o t a l a l l banks
National
S t a t e members
S t a t e nonmembers
22b,0§2
135,371
2 4 l , 263
598,514
189,061
67,5Si
3,207,106
325,793
723,065
1,102,347
303,456
33,944
35,136
229,1450
885,121
150,032
383,824
301,70S
853.764
10,063,209
5,oa
-
5,021
1,169
1,169
163,027
-
6,266
-
-
IQ3,027
-
6,266
-
212
569
-
74,7^1
-
212
569
-
-
75,641
900
-
-
191.465
1,331
192.796
436,068
8,633
444,701
HO PROVISION III STATE LAY; REGARDING BRANCH BANKING
78,628
605
605
88,564
327,548
—
108,015
52.080
_
654,935
605
605
44,424,934
20,590,724
17,402,530 3,188,194
20,824,530
13,097,992
10,502,412
6,984,945 3,544,334
8,601,057 907,213
1,816,528 736,647
8,529,279
9,508,270
2,553,175
•Mutual savings banks and private banks are jxeludeu..
"""Includes banks operating branches in head office city and contiguous
territory only
November 6, 1931
Federal Reserve Committee on
Branch, Group and Chain Banking
CHAIN
AND
OHOUP
B A N K I N G
Preliminary material subject to revision
156
CHAIN AND GROUP BANKINGThere has teen little change in the number of banks in chain
and group systems since the end of 1929 according to the tabulations
of the Federal Reserve Board*
During this period the movement has
comprehended some 2,000 banks belonging to around 300 different systems.
The tabulations of the Board have included only those chain
and group systems which comprise three or more banks, and have excluded
those affiliations of two banks only.
This Committee has been making
an effort through the Federal reserve banks to account for the twobank relationships as well as other types of affiliations, and although
these compilations have not yet been completed, the indications are
that over 5OO banks are involved in two-bank affiliations.
Mutual savings banks and private banks have been excluded
from the figures given in this series of tables and charts,.
The spe-
cial nature of the organization and functions of mutual savings banks
makes their inclusion in a comparative study of this kind of doubtful
value, especially in view of the small number which are affiliated
with other institutions in such a way that they might be called members
of groups or chains.
Private banks belonging to chains and groups are
likewise few, and the amount of information available regarding private
banks generally is not sufficient to warrant their inclusion in this
1.57
1
comparative study.
Developments since June 3Q» 1929:
Tables 1-U show the developments of
the group and chain movement during the past two years, together with
the ratio of banks in chains and groups to all active banks in the country.
The figures indicate a substantial growth during the latter half
of 1929.
A small increase in the first half of 1930 w a s more than
offset by a decline in the next twelve months, due largely to failures.
However, the loans and investments of chains and groups rose substantially during the first half of this year in spite of the failure of
several systems.
This was due to the inclusion of a large New York
"bank which recently acquired a second bank affiliate, making it a group
system within the definition of the Board.
On June 30, 1931» there were 288 chain and group systems controlling 2,0^7 banks, with aggregate loans and investments of $13,600,000,000.
About 10 per cent of all banks and 31 per cent of the loans
and investments of all banks were included in chain and group systems
on that date.
Geographic distribution:
Tables 5-9 a^cL Chart 1 summarize the geo-
graphical distribution of chain and group banking and show that it has
had its largest development in states where the establishment of
branches is prohibited by law.
One-half of all banks in chain and
group systems are in these states.
(The states are listed in Appen-
dix I according to their laws regarding branch banking.)
The Western
Grain states, where banking difficulties have been large during the
159
past decade, account for nearly 700 of the "banks represented in chains
and groups.
State
Out of a total of 2SS chain and group systems, 56 cross
lines and control hanks in two or more States.
One system
operates in 8 States and another in 5 (Table 8 ) .
Size of hanks;
Tables 10-12 and Charts 2-4 classify the banks in
chain and group systems by size, and indicate that a large proportion
of all the loans and investments of such systems is accounted for by
a few large banks.
Some of these which have but a few banks associ-
ated with them, for example, the Chase National Bank and the Central
Hanover Bank and Trust Company of New York, are in contrast with more
typical groups, such as the Northwest Bancorporation and the First Bank
Stock Corporation of Minneapolis, each of which includes more than 100
banks.
Banks with loans and investments of $50»0^0,000
or
more each
(45 in number) account for over oS per cent of the total loans and investments of all chain and group banks (Table 10).
As of June 30,
1930, nearly 44 per cent of all active banks in the largest size group
(loans and investments of $50,000,000 and over) were included in chains
and groups.
In the smallest size group (loans and investments under
$150,000) only 6 per cent of the banks belonged to chains and groups
(Table 12).
Table 13 shows that of the 288 chain and group systems, 75
are composed of only 3 banks, 59 of 4 banks and 40 of 5 banks.
Thus
60 per cent of the chain and group systems consist of from 3 to 5 banks
each and account for Uo per cent of the loans and investments of all
chain and group systems.
Principal chain and group systems:
Tables lU-ig and Chart 5 list the
principal chain and group systems and classify the banks in the U9
principal groups according to size.
The 62 systems listed, including
the chains, account for 973 banks with loans and investments of
$11,900,000,000.
Among the principal systems have been included those
with 10 or more banks and/or $50»000,000 loans and investments.
Branches operated by banks in chain and group systems;
A number of
the tables in this section indicate the extent to which banks in chain
and group systems operate branches.
These banks with their branches
are also included in the statistics of the section dealing with branch
banking.
161
DEVELOPMENTS IN CHAIN AND GROUP BANKING SINCE JUNE 30, I929
Table 1 — 13Ui£3E 0? 3^~:S 127 CHAW A1JD GROUP SYSTEMS,
BY CLASS OF BAM
Number of Fumbe .• of tKinks in chain and ^.roup ry,items
State
chain
National
Nonmembor
and group
bank
Total
banks
banks
systems
members
Date
Juno 30, 1329
301
67S
108
1,084
1,870
Dec. 3 1 , 1929
312
831
130
1,186
2,1^7
June 30, 1530
311
865
131
1,223
2,219
Dec. 3 1 , 1930
302
S50
125
l,l6l
2,136
Juno 30, 1931
2S8
838
121
1,088
2,0^7
HOTS: F i g u r e s f o r 1929 and 1930 a s shown i n t h i s and following': t a b l e s a r e
as r e v i s e d i n October 1931» on t h e b a s i s of a d d i t i o n a l d a t a r e c e i v e d s i n c e
the p r e p a r a t i o n of p r e v i o u s summaries of chain and group banking. F u r t h e r more, mutual savings and p r i v a t e banks r e p o r t e d a s members of c h a i n s have
been o m i t t e d . Mutual s a v i n g s banks t h u s excluded numbered 9 a t t h e end of
1931 w i t h l o a n s and i n v e s t m e n t s of $79»OQO,000; and p r i v a t e banks, 23 w i t h
loans and i n v e s t m e n t s of $ 4 , 0 0 0 , 0 0 0 . Twelve o t h e r banks with l o a n s and i n vestments of $26,000,000 were a l s o e l i m i n a t e d from t h e summaries, due to
the f a c t t h a t t h e o m i s s i o n of a f f i l i a t e d mutual s a v i n g s banks and p r i v a t e
banks reducod t h e i n d i v i d u a l a f f i l i a t i o n s to l e s s t h a n 3 banks.
Where comparisons i n t h e s e t a b l e s a r c made w i t h a l l a c t i v e b a n k s ,
p r i v a t e and mutual s a v i n g s bankr. have l i k e w i s e been e l i m i n a t e d from t h e
a c t i v e bank f i g u r e s .
Table 2 — HUM3ER OF 3APES I IT CHAIIT AND &R0UP SYSTEMS
FSE HUNDESD ACTIVE BAFKS
Dat e
national
banks
State
bank
members
Nonmember
banks
Total
June 30, 1929
9.0
9.2
7.0
7.7
June 30, 1930
11.9
12.3
s.k
9.7
June 30, 1931
12.3
12.3
8.1
9.7
Table 3 — LQA1JS AND INVESTMENTS OF BANKS IN CHAIN AND GROUP
SYSTEMS, BY' CLASS OF BANK
Date
(In millions of dollars)
State
NonNational
bank
member
1)ruiks
members
banks
Total
June 30, 1929
$M99
$3.osi
$1,723
-P9,507
Dec. 3 1 , 1929
6,4^5
3,963
1,983
12,392
June 30, 1930
6,667
3,992
2,15s
12,818
Dec. 3 1 , 1930
6,635
3,^4
1,868
11,968
June 30, 1931
8,062
3,731
1,790
13.5S3
Table k — LOANS AND INVESTMENTS OF BANKS IN CHAIN AND
GROUP SYSTEMS PES HUNDRED DOLLARS OF LOANS
AND INVESTMENTS OF ALL ACTIVE BANKS
Nonmember
banks
Date
Nat i o n a l
banks
State
bank
members
June 30, 1929
$21.9
$21.6
$13-1
$19.5
June 30, 1930
30.7
28.7
17.^
26,7
June 30, 1931
38.7
28.5
17.0
30.6
Total
164
GEOGRAPHIC DISTRIBUTION 0? CHAIN AND GROUP BANKING
165
CHART 1
BANKS IN CHAINS AND GROUPS
JUNE JO, M l
Table 5 — EITSBSR OP BA17KS AITD B2A1TCH3S III CEAI1T -MID ©OOP SYSTEMS
3Y STATES CLASSIFIED ACCORDING TO LEGAL STATUS OJ
BHA1TCH BATZIITG, JUI72 30, 1 9 3 1 .
States classified
a c c o r d i n g to the
law r e g a r d i n g
branch "banking*
T o t a l numb e r of
banks i n
c h a i n and
group
systems
Uumbcr
operating
branches
JTuir.be r
in
In
head
office
city
of b r a n c h e s o p e r a t e d by banks
c h a i n and ^rou-p systems
In
Outside head
office c i t y
other
Total
but i n same
counties
county
!
S t a t e - w i d e "branch
"banking p e r m i t t e d
i
72
13
lSl
oJC
126
S50
E s t a b l i s h m e n t of
"branches p r o h i b i t e d
1,033
s
15
1*1
1,02b
Total
i
|
^70
33
1
52
i
i
9to
17
272
2,0^7
7<*
(o
523
•The States in these various classifications are listed as in
Appendix I.
S70
!
Branches r e s t r i c t e d
as t o l o c a t i o n
ITo p r o v i s i o n i n
S t a t e law
39
1,627
1
Table S — NOMBSS 01 3AIIXS AITS BAMLTG OJ7IC3S Ifl CHAD! A2TD GROUP SYSTEMS
COMPARED WITH TOTAL ACTIVE BAHXS AUD BRANCHES BY STATES CLASSIFIED ACCORDING- TO LEGAL STATUS OP BRANCH 3AZKIHG, JU1IE 30, 1931
States classified
a c c o r d i n g t o the
law r e g a r d i n g
"branch "banking
All
Chain and group
active
banks *
37ster_is
ITumber
Humber
Total
Total
banking
of
banking
of
banks o f f i c e s * * banks offices*"
ITuriber i n c h a i n
and group systems
p e r hundred a c t i v e
Banks
Banking
offices**
S t a t e - w i d e "branch "banking
permitted
72
7^2
1.75^
3,030
U.i
24.5
Branches r e s t r i c t e d a s to
location
S70
1,610
g,46s
10,609
7.9
15.2
E s t a b l i s h m e n t of "branches
prohibited
1,033
1,050
9,520
9,625
10.2
10.9
Ho p r o v i s i o n i n s t a t e law
272
272
1,321
20.6
20.6
2,0l+7
3,b7^
21,123
9.7
14.9
Total
24,535
•Based on d a t a f u r n i s h e d by Comptroller of t h e Currency.
**3anks and b r a n c h e s .
Table 7 — LOANS AND INVESTMENTS OP BAMS HI CHAIN AND GROUP SYSTEMS CO!PARED
WITH ALL ACTIVE BANKS BY STATES CLASSIFIED ACCORDING TO LEGAL
STATUS OF BRANCH BANKING, JUNE 30, 1931
States classified
a c c o r d i n g to the law
r e g a r d i n g "branch
hanking
Loans and i n v e s t ments of bo.nks
i n c h a i n and
group systems
(000,000 o m i t t e d )
Per c e n t of
t o t a l in
chain
and
(000,000 omitted) group systems
Loans and i n v e s t ments of a l l a c t i v e banks
$1,980
$5,621+
35-2
Branches r e s t r i c t e d a s t o
location
S.30U
28,023
29.6
E s t a b l i s h m e n t of branches
prohibited
3,09*
10,0o3
30.7
No p r o v i s i o n i n s t a t e law
206
13,533
LP
Total
VO
S t a t e - w i d e branch "bankingpermitted
31.*
4U.1+25
30.6
-3.69
Table 8 — GHAI1T AITD GBOUP SYSTEMS, 3Y TK3 IJUiBSR 0? STAT2S
IN 'THICK HT3IP. BAK35 OPERiTH: JUH3 30, 1931
ITumbc-r of s t a t e s
in which harJ-s
operate
Futibcr of
chain and
&roup systems
Agsre-^ata number
of "b:::ihs in chain
a-id group systems
1
232
1,339
2
*3
291
3
9
127
1+
2
6o
5
1
105
g
1
125
28S
2,0^7
Total
Table 9 ~
Goographic
divisions
Now England
CEAI1! AH) GROUP BAiTOHC- 3Y GEOGRAPHIC DIVISIONS
Sfuriber of t r nlrs
June 30
1329
M
*3
Loans and investments
i n m i l l i o n s of d o l l a r s
June 30
June 30
Juno 30
1930
1929
1331
June 30
1930
Juno 30
1931
S2
SZ
734
1,197
1,212
Middle A t l a n t i c
211
249
254
3,357
4,015
5.^51
North C e n t r a l
237
336
284
1,704
2,927
2,662
2S
56
42
101
311
1SS
South E a s t e r n
127
154
133
345
443
424
South Western
260
2S9
237
233
327
351
Western Grain
646
697
663
630
1,013
954
Rociy Mountain
164
181
179
224
267
23S
P a c i f i c Coast
15^
175
161
2,11b
2,316
2,102
Total
1.870
2,219
2,047
9,507
12,SIS
13,583
Southern ifountain
I.7l
SIZE OF BAMS IN CHAIN AND GROUP SYSTEMS
172
CHART Z
NUMBER
NUMBER OF BANKS IN CHAIN AND GROUP SYSTEMS
BY SIZE OF BANK
NUMBER
400
Number of banks in ohain and group systems as of June 30, 1931
Banks c l a s s i f i e d aooording to size of loans and investments
400
173
CHARTS
LOANS AND INVESTMENTS OF BANKS IN
CHAIN AND GROUP SYSTEMS
BY SIZE OF BANK
MILLIONS OF DOLLARS
MILLIONS OF DOLLARS
1O00O
Loans and investments of banks 111 chain and group systems
as of June 30, 1931
Banks olassified acoording to size of loans and investments
fO 000
Table 10 — 11UME3R 0? BASKS IJ CHAIIT AKD G30UP SYST3HS BY SIZE OF
LOi^S A17D IKVZSTLSATTS: JUKE 30, 1931
S i z e Groups
Loans raid i n v e s t m e n t s
Kunber
of
banks
P e r cent,
of
total
Aggregate
P e r cent
of
investments
t
o
tal
!000,000 omitted)
IOIXLS
rnd
Under $150,000
2SS
1U.6
$28
$150,000 to 250,000
263
12.S
52
A
250,000 to 500,000
399
19.5
1^5
1.1
500,000 to 750,000
19s
9-7
122
.9
750,000 to 1,000,000
1U0
6.8
123
.9
1,000,000 t o 2 , 0 0 0 , 0 0 0
259
12.7
367
2.7
2 , 0 0 0 , 0 0 0 to 5,000,000
2^0
11.7
73S
5A
5,000,000 t o 1 0 , 0 0 0 , 0 0 0
110
5M
301
5.9
10,000,000 t o 50,000,000
95
4.6
1.90S
14.0
50,000,000 and over
U5
2.2
9,300
6"S.5
2,0^7
100.0
13,523
100.0
Total
.2
Table 11 — HUHB3R OF 3JUSKS 1-7 CEAII? AZD GROUP SYSTSI-iS,
3Y SIZ3 OP TOW: JViB 30, 1931
Population
of town
ITumb or For cent
of
of
•br;V!-s
total
Aggregate
Per cent
lotms rad
of
investments
t
o
tal
(000.000 omitted)
Under 500
3^7
17.0
$63
.5
500 to 1,000
276
13.5
S6
.6
1,000 to 2,500
3^5
16.9
177
1.3
2,500 to 5,000
197
9.6
167
1.2
5,000 to 10,000
183
6.9
2U0
1.8
10,000 to 25,000
195
9.5
51+4
4.0
25,000 to 50,000
90
k.h
3S7
2.S
50,000 to 100,000
97
4.7
661
4.9
317
15.5
11,257
S2.9
2,0^7
100.0
13.5S3
100.0
100,000 end over
Total
176
CHARTS
PER HUNDRED
50
NUMBER OF BANKS IN CHAIN AND GROUP SYSTEMS
PER HUNDRED ACTIYE BANKS
PER HUNDRED
BY SIZE OF BANK
50
Number of banks in ohain and group systems per hundred active
banks as of June 30, 1930
fV
Banks classified according to size of loans and investments
1
Tabic 12 — HUM3SR OF 3AI~'S IK CHAI3ST AMD GROUP SYSTEMS PER 100
ACTIVE BA1CS, BY SIZE OF L0A3S AI® IJTESTMEITTS:
JTJH3 30, 1930
Size Groups
Loans and i n v e s t m e n t s
ISumbor of "brr>s i n
chain and group systems
p e r hundred a c t i v e banks
Under $150,000
6.3
150,000 t o 250,000
2.3
250,000 to 500,000
s.s
500,000 to 750,000
9.0
750,000 to 1,000,000
10.0
1,000,000 t o
2,00,000
10.5
2,000,000 to 5,000,000
15.2
5,000,000 t o 10,030,000
lk.8
10,000,000 t o 50,000,000
27.S
50,000,000 and over
43.6
Total
9.7
I
Table 13 -- BUJOER OF CHAI" A1TD GROUP SYSTEMS CLASSIFIED BY HUHS:-* 0?
BATES IF EACH SYS72M, JUU3 30, 1 931
ITuriber of banks
i n group
Humber
of
chain
group
systems
P s r cent
Per c ent of
Aggregate
Aggregate
total loans
number of
of baalts
l o a n s and
and i n v e s t bonks i n
investments
in a l l
ments of a l l
c h a i n and chain and of banj.cs i n
chain and
group
chain and
group
systems
systems group systems group systems
(000 omitted)
11.0
28.2
225
$3,232,997
3
75
4
59
236
11.5
1,129,625
8.7
5
4o
200
9.2
432,190
3.2
6
31
186
9.1
494,S97
3.6
7
17
119
5.8
1,001,037
7.4
g
12
96
4.7
100,433
.8
9
15
135
6.6
946,729
7.0
10
11
110
5.4
357,782
2.6
11-15
12
154
7.5
1,734,249
12.8
16-20
8
i45
7.1
1,996,506
14.7
21-30
3
go
3.9
433,596
3.2
35
l
35
1.7
68,131
.5
46
l
1+6
2.3
252,915
1.9
50
l
50
2.4
42,307
.3
105
l
105
5.1
337,134
2.5
125
l
125
6.1
34g,562
2.6
2Sg
2,047
100.0
13,583,090
100.0
Total
179
P H I N C I P i l (SAIN AHD GROUP SYSTEMS
ISO
Table l 4 — PRINCIPAL GROUP SYSTEMS CONTROLLED 3Y HOLDING CORPORATIONS:
JUN3 30, 1931
(Systems with 10 or more banks or $50,000,000 or more loans and investments.)
Name and l o c a t i o n of
controlling interest
Transamerica C o r p o r a t i o n , Hew York
D e t r o i t Bankers, I n c . , D e t r o i t
Marine Midland Group, I n c . , Duffalo
Guardian D e t r o i t Union Group, I n c .
Detroit
Manhattan Company, Hew York
Northwest B a n c o r p o r a t i o n , Minneapolis
f i r s t Bank g t o c k Corp. r K i n n e a o o i i s •
'Goldman Sachs Trading C o r p . , Hew York
Wisconsin Bankshares Corp. , Milwaukee
F i n a n c i a l I n s t i t u t i o n s , I n c . . A u g u s t a , Me.
BancOhio C o r p . , Columbus, Ohio
Melbank C o r p o r a t i o n , P i t t s b u r g h
Socarnat Bank Corp., C h a r l e s t o n , S. C.
Marine B a n c o r p o r a t i o n , S e a t t l e
F i r s t S e c u r i t y Corp., Ogden, Utah
Old N a t i o n a l Corp., Spokane, Wash.
F i r s t H a t l . I n v e s t . C o . , B o i s e , Idaho
T o t a l , 17 groups
Nurnbc r of branches
Outside
Number
In
of
head
head
Total
banks** o f f i c e o f f i c e
city
city
20
84
219
17
54
29
4
75
13
125
105
3
46
15
10
12
10
10
27
24
10
4so
366
-
so
-
72
52
3
4
6
3
11
-
3
-
-
27
14
-
Loans and
investments
(000 omitted
U50 $1,186,547
219
623,996
5^
420,083
75
20
3
4
130
6
30
11
17
-
366.1U2
353,082
348,562
337,134
316,510
252,915
24,694
71,343
4S.774
37,004
35,314
35.ISO
32,274
11,502
6i4
1+65 1,079
4,621,056
*Not a typical "holding company" group, and since June has disposed
of i t s i n t e r e s t in one of the 3 banks included above.
**Exclusive of mutual savings banks and p r i v a t e banks.
A
Table 15 — PRIHCIPAL GROUP SYSTEMS CONTROLLED BY A BASK. OH TRUST COMPAHY:
juira 30, 1931
(Systems with 10 or more "banks or $50,000,000 or more loans and investments.)
Hame and l o c a t i o n of
controlling interest
Humber of branches
Outside
ITumber
In
head.
head
Total
of
banks** o f f i c e o f f i c e
city
city
Chase n a t i o n a l Bank, Hew York
3
F i r s t n a t i o n a l Bank, .Chicago
9
Union Trust C o . , P i t t s b u r g h
7
C e n t r a l Hanover Bk. & T r . Co., Hew York
3
F i r s t N a t i o n a l Bank, Boston
20
S e c u r i t y F i r s t 11. B . , Los Angeles
1+
Peoples Pittsburgh Trust Co., P i t t s b u r g h
3
C e n t r a l T r u s t Co., Chicago
12
F i d e l i t y Union T r u s t Co., Howark
3
I n d u s t r i a l Trust Co., Providence
3
n a t i o n a l Shawmut Bank, Boston
6
Anglo-London P a r i s n . B . , San F r a n c i s c o
17
*Hat. Bank of t h e R e p u b l i c , Chicago
10
M. & T. T r u s t Company, Buffalo
3
F i r s t T r u s t & Deposit C o . , Syracuse
15
F i r s t n a t i o n a l Bank, A t l a n t a
7
F i r s t S e a t t l e Dexter Horton 11.B,, S e a t t l e
7
Commerce T r u s t C o . , Kansas City
6
U n i t e d S t a t e s H a t . Bank, P o r t l a n d , Ore.
12
Worcester Bank & T r . C o . , 'Worcester
7
American n a t i o n a l Bank, H a s h v i l l o
18
Exchange n a t i o n a l Bank, T u l s a
35
C i t i z e n s & Southern H a t . Bank, Savannah
7
0
F e d e r a l n a t i o n a l Bank, Boston
F i r s t n a t i o n a l Bank, Birmingham
Republic H a t . Bank & T r . C o . , D a l l a s
5
F i r s t n a t i o n a l Bank, L o u i s v i l l e
0
Hartford-Connecticut Tr. Co., Hartford
Hamilton n a t i o n a l Bank, Chattanooga
17
P e o p l e s T r u s t & Guaranty Co.Hackensacl',
. 10
M e r c a n t i l e Bank & T r . C o . , D a l l a s
10
Exchange n a t i o n a l Bank, Tampa
12
T o t a l , 32 groups
Loans and
investments
(000 o m i t t e d )
i
s
10
3
7
8
5
-
58
10
1
4
8
-
S3 $1,732,57S
736,99*+
581.873
577,447
15
562,843
35
126
459,417
186,321
s
183,492
156,700
?
14
153,554
12
150,226
1
147,507
142,654
20
133,899
102,446
13
94,794
9
2
81,311
77,235
73,909
6
72,849
i4
69,264
68,131
11
67,364
7
63,273
53,892
53,283
8
5L91S
37,312
34,763
5
25,073
16,227
14.628
301
297
SI
37S
63
15
35
68
S
9
4
12
1
20
13
9
2
-
6,963,177
*Since June the n a t i o n a l Bank of the Republic has been absorbed by
the Central Trust Company, the dominant bank in another group.
••Exclusive of mutual savings banks and p r i v a t e banks.
Table 16 — PRINCIPAL CHA.IU SYSTEMS: JUNE 30, 1931.
(Systems with 10 or more banks or $50,000,000 or more loans and investments.)
Name and location of
controlling interest
W. C. Hepperiheimer, Jersey City*
Otto Bremer, S t . Paul
George Wingfield, Reno , Nev.
James IP. Toy, Sioux City
J. G. & H. H. Wilkinson, Port Worth
John Clay, Chicago
M. Weil & Family, Lincoln„ Neb.
A. 3D. Sleeper, Bad Axe, Mich.
Isaac Hazlett, e t a l , Minneapolis
Thurmond Bros., Oklahoma City
C. A. McCloud & Assoc. York, Nebr.
J . M. Crews, Childress, Tex.
M. C. P a r r i s h , et a l . , Austin, Tex.
Total, 13 chains
Number
of
banks**
Loans and
investments
(000 omitted)
10
n
$80,878
^8,307
a,306
12,976
7,836
7,381
7,328
^,023
5,05^
3,775
2.857
2,03^
1.099
192
204,854
u 3
50
13
18
11
10
10
13
18
15
10
*The banks in t h i s chain have a t o t a l of ten branches, eight in
the head office c i t y and two outside the head office c i t y but
in t h e same county as the head office. None of the other banks
in the above l i s t of chains operate branches.
*I5xclusive of mutual savings banks and p r i v a t e banks.
183
CHART 5
NUMBER OF BANKS IN 49 PRINCIPAL GROUP SYSTEMS
NUMBER
BY SIZE OF BANK
300
NUMBER
300
Number of banks in 49 principal group systems as of June 30, 1931
Banks classified according to size of loans and investments
1,84
Table 17 — BUM3ER OF MJT.S IN 49 FRE^IPAL &E0UP SYSTEMS,
3Y SIZE OF LOAKS A2D IiiVSSTLGEJTS: JUNE 30, 1931
Size Groups
Loans and i n v e s t m e n t s
Humber
of
banks
P e r c ent
of
total
.Aggregate
Per cent
l o a n s and
of
investments
total
(000.000 omitted)
Under $150,000
43
5.5
$4
150,000 t o 250,000
59
7.5
12
.1
250,000 to 500,000
110
14.1
42
.4
500,000 to 750,000
S3
10.6
52
.5
750,000 to 1,000,000
57
7.3
50
.4
1,000,000 to 2 , 0 0 0 , 0 0 0
135
17.3
195
1.7
2,000,000 to 5 , 0 0 0 , 0 0 0
128
16.4
390
3.4
5,000,000 to 1 0 , 0 0 0 , 0 0 0
66
2.5
10,000,000 to 50,000,000
56
7.2
1,204
10.3
50,000,000 and over
44
5.6 '
9,222
79.1
11,641+
100.0
Total
761
100.0
4.1
Table IS — SUISBER OFBLIZS I ? l|g PHIBCIPA1 GROUP SI'STSMS,
BY SIZL OF TOOT; JDH3 3 0 , 1931
•
llumber
of
"banlis
Per c ent
of
total
Aggregate
l o a n s and
investment s
(000.000 omittod)
Under 500
35
K5
$6
.1
500 to 1,000
6o
7.7
26
.2
Population
of town
P e r cent
of
total
1,000 to 2,500
129
16.5
73
.6
2,500 to 5»ooo
85
10.9
77
.7
5,000 t o 10,000
SO
11.5
131+
1.1
10,000 to 25,000
110
lU.i
325
2.8
25,000 to 50,000
hi
5.2
200
1.7
50,000 to 100,000
h5
5.8
U32
3.7
186
23.8
10,371
89.1
781
100.0
11.6HU
100.0
100,000 and over
Total
186
APPENDICES
187
APPENDIX I
HUM3SR OF AIL BJ^JS IiT TEE UiTITSD STATES AHD BANZS ASD BRANCHES
1ST CEiIIi-7 iiiffi GROUP SYSTEMS: JUE3 30, 1931
States
classified
' a c c o r d i n g to law r e g a r d i n g
"branch
banking
Total
number of ban!:s i n
ITuinber of branches
number of chain "-nJ. group s y s t ems of banks i n chain
branches
and sroup systems
o p e r a t i n g brsmches
of ban".-.:s
Outside
In
City*
Other
i n chain
head
head
Total branch b r a n c h
and group
o
ffice
o
f
f
i
c
e
systems systems
systems
city
city
STATS-WIDE BRA1TCE BAMI1J& PERMITTED
Total
number
of "banks'
All
a c t i v e i n chain
hanks v.nd group
systems
Arizona
California
Delaware
D i s t . of Col.
Maryland
North C a r o l i n a
Rhode I s l a n d
South C a r o l i n a
Vermont
Virginia
Total
6
1
51
1
637
-
1
_
3
1
2
84
U30
i4
is
1
i4o
l
3
11
-
-
-
1,754
72
670
13
3
10
161
11
37
4io
59
39
205
324
26
_
-
—
_
1
S
mm
—
—
6
153
—
—
—
4
4
2
1
—
4s4
—
—
10
lit
—
-
509
BEAiTCHES RESTRICTED AS TO LOCATION
Georgia
Indiana
Iowa
Kentucky
Louisiana
Maine
Massachusetts
Michigan
Mississippi
Montana
Hew J e r s e y
Hew York
Ohio
Pennsylvania
Tennessee
Total
344
713
1,107
515
206
90
248
672
267
165
515
904
871
l,4l8
433
2.4
13
60
6
21
IS
50
111
23
45
90
106
10
5S
8.46S
19
2
1
l
-
-
-
2
1
1
9
7
15
2S
1
—
1
-
5
4
7
2
s
42
35
62
333
12
-
13
28
-
1
2
-
-
23
21
1
35
3^
10
21
21
1
6
6
670
94o
126
103
7
l
-
55
314
11
13
—
8
29
3
60
333
-
-
2
-
13
32
2
-
12
-
6
1
4
49
314
11
12
20
1
14
23
850
90
-
*l»©lua.es o:m.wd o p e r a t i n g ur'Uicn.es only i n head >r»*.~i~-& c i t y and
contiguous t e r r i t o r y .
8
-
-
1.88
APPEIIDIX I ( C o n t ' d )
NUMBER OF ALL BABES IN THE UNITED STATES AED EATCS AMD BRANCHES
i r CEAIiT AND GROUP SYSTEMS: JUNE 30, 1931
States
classified
1
All
a c c o r d i n g to
law r e g a r d i n g
active
branch
banks
banking
Total
number
of banks
i n chain
•wd.group
systems
Number of banks i n
Total
Number of b r a n c h e s
number of chain 'iad group systems of banks i n c h a i n
o p e r a t i n g branches
branches
and group systems
of banks
In
Outside
City*
Other
i n c h a i n Total b r a n c h branch
head
head
and. group
office
o
f
f
i
c
e
systems systems
systems
city
city
IBTABLISHM3NT OF BRANCHES PROHIBITED 3Y LAW
28k
321
250
156
193
131
1,463
972
Alabama
Arkansas
Colorado
Connecticut
Florida
Idaho
Illinois
Kansas
Minnesota
IvfiLssouri
Nebraska
Nevada
Hew Mexico
Oregon
Texas
Utah
Washington
West V i r g i n i a
Wisconsin
5k
1+5
65
933
S7
270
27
33
17
1,100
727
51
215
1,176
66
5
307
262
910
29
104
25
81
1
85
9.5SO
1,033
96
Total
26
IS
11
17
mm
—
M
,
1
1
_
—
_
-
_
—
_
-
X
—
—
-
-
_»
—
—
-
—
_
—
—
—
-
1—
—
-
2
2
—
-
—
-
-
k
2
1
1
-
-
-
-
6
3
6
-
17
8
•3
6
-
2
15
2
6
6
-
3
1
MP PROVISION IF STATE LAW HSGAHDI1T6 BRANCH BANK INS
Total
Total a l l
National
S t a t e members
Nonrnembers
-
_
—
-
—
-
_
-
—
-
-
-
1,026
601
302
550
318
82
95
3k
58
25
1,321
272
-
-
2,0^7
1,627
147
112
35
5k
37
56
1+8
33
6
k
4io
533
31
25
S3
s t a t e s 21,123
6,800
982
13,3^1
_.
_
-
_
-
69
Hew Hampshire
North Dakota
Oklahoma
South Dakota
Wyoming
838
121
1,088
792
601+
231
n
-
• I n c l u d e s banks o p e r a t i n g branches only in herul o f f i c e c i t y and
contiguous t e r r i t o r y .
382
71
14-8
i.89
APPETDiSX I I
S T M E H T S 0 ? ALL 3A21KS ALTD OF BAMS HI CHAIK AiTD GSOuP ,"5TEMS
LOANS M D H T J SiiSTM
JUxJE 30, 1931
(000 o m i t t e d )
States c l a s s i f i e d according t o law r e g a r d ing "branch
"banking
All
ac t ive
"bni.s
A l l "banks i n
c h a i n and
group
systems
Banks 3.n c h a i n and group
systems 5 o-peratirj.,2.' "branches
C i t y * Other irancl--1.1
branch
nystens
J Total
Systems
1
SfSAiJiJ-Winm BRAIN'CH 3AHKIJG. 1'ZLJSXED
W65
Arizona
California
Delaware
D i s t . of Columbia
Liar y l a n d
ITorth C a r o l i n a
Rhode I s l a n d
South C a r o l i n a
Vermont
Virginia
$52,701
3,149,193
135,504
249,483
617,403
278,577
353,054
136,43s
142,735
489,084
$15,507
1,766,763
2,973
153,554
40,910
-
$760
$3,601 1,584,709
142,783
27,30s
2,86l
-
1,588,310
142,783
30,169
-
Total
5,524,173
1,979,707
6,1*62 1,755,555
1,762,028
3EMCE3S RESTRICTED AS TO LOCATION
Georgia
Indiana
Iowa
Kentucky
Louisiana
Maine
Lias s achus e 11 s
Michigan
Mississippi
Montana
Hew J e r s e y
Hew York
Ohio
Pennsylvania
Tcnnossee
Total
301,884
1,942,457
1,722,276
147,477
119 ,'482
1,953,337
LI,598,b32
2,315,657
5,120,128
3^7,952
71,551
163,537
46,026
71,954
51,918
26,331
140,^55
84,340
95,390
864,761 735,921
1,120,001 939,437
22,315
70,147
435,987
090,055
3,808,245 3,595,072
71,343
29,794
951,941 206,628
135,394
94,951
56,14S
571
21,872
55,454
29,711
4,822
70,042
1,274
24,537
127,809
571
26,331
106,212
65,454
765,632
939,437
4,822
^06,029
3,595,072
29,794
207,902
119,488
28,082,517
8,303,594 6,221,122
274,441
6,495,563
291, 430
531,320
582,833
421, 243
376,50c
• I n c l u d e s "banks o p e r a t i n g "branches only i n head o f f i c e c i t y and
contiguous t e r r i t o r y .
190
APP^iSlX I I
(Cont'd)
LOUIS iSD IUV3STK3LJTS OF ALL 3AHKS AND OF BAMS III (HALT A17D GROUP S ^ S M S
juira 30, 1931
(000 omitted)
States c l a s s i f i e d according to law r e g a r d i n g "branch
banking
All
active
banks
A l l Banks i n Banks i n c h a i n and •^Tov.-g •
systems o p e r a t i n g b r a n c h e s
chain and
City* Other Branch
group
Total
Branch
Systems
systems
Systems |
SSTABLISEUZLT? OF BHANCH3S PBOHLDITZJD BY LAW
Alabama
Arkansas
Colorado
Connecticut
Florida
Idaho
Illinois
Kansas
Minnesota
Missouri
Nebraska
Nevada
Hew Mexico
Oregon
Texas
Utah
Washington
West V i r g i n i a
Wisconsin
226,032
135,371
2Ul, 269
593,514
139,5bl
67,561
3,207,106
325.79S
733,065
1,102,347
303,456
33,944
35,136
229 ,450
S3 5,121
150,032
4i,i45
542,321
136,310
62,354
23,39s
1,433
125,675
109,973
43,493
253,754
208,"01
1,43b
302,414
10,053,209
3,094,035
333,324
301,70s
Total
61,674
14,129
23,743
97,324
131,295
37,352
1,122,395
-
153,027
-
71,730
-
1So,069
394,325
1S9
159
-
-
163,027
3,oii
74,741
-
-
l60,Ob9
-
3,130
393,005
ITO PROVISION HI SEATS LAW REGARDING BEA1TCH BANKING
44,424,934
13,533,090
6,622,410 2,033,137
s,655,597
20,824,530
13,097,992
10,502,412
3,062,050
3,730,387
1,790,153
3,730,015 1,442,766
2,549,349 421,956
292,546 168,465
5,222,731
2,971,305
461,011
1
National
S t a t e members
Nonmembers
' 205,754
1
states
654,935
-
1
Total a l l
80,451
45,432
IS,430
55,44i
1
.Total
-
-
-
• I n c l u d e s banks o p e r a t i n g branches only i n *iead o f f i c e
and contiguous t e r r i t o r y .
-
73,623
38,564
327,54s
108,015
52,030
1
U©tr Hanip s h i r e
North Dakota
Oklahoma
South Dakota
Wyoming
city