Speech

For use in morning papers, Monday, July 31, 1972 RECENT DEVELOPMENTS IN BLACK BANKING: 1970-1971 Report By Andrew F. Brimmer Member Board of Governors of the Federal Reserve System Washington, D.C. July 31, 1972 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis RECENT DEVELOPMENTS IN BLACK BANKING: 1970-1971 by Andrew F. Brimmer* During 1971, banks owned and controlled by blacks continued to expand their deposits at a faster pace than did commercial banks in the country as a whole. While the bulk of the gain in deposits originated with the private sector, the largest relative gains occurred in deposits attracted from the Federal Government. The black banks also continued to increase their earning assets at a faster pace than that achieved by all insured commercial banks. However, reflecting the limited outlets for funds in the black community, the black banks channeled a significant share of their new deposits into loans and investments outside the area that is the principal focus of their activities. In particular, they greatly expanded their holdings of U.S. Government securities. In fact, the black banks seem to be in an anomalous position: they exert considerable effort to attract Federal Government deposits to enhance their ability to lend in the black community; at the same time, they invest a disproportionate share of their total resources in Federal Government securities. So while trying to serve as a magnet to attract U.S. Government funds to the black community, the ^Member, Board of Governors of the Federal Reserve System. Miss Jacqueline McDaniel of the Board's staff did the computer programming to obtain the statistics on which this report is based. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis - 2 - black banks (because of difficulties inherent in lending in the urban ghetto) perhaps inadvertently may be diverting resources from the black community into the financing of the national debt. These are some of the main conclusions which emerge from a review of trends and developments among black banks during 1971. The review was based on statistics from the "Consolidated Report of 11 Condition ("Call Report") collected by Federal bank supervisory agencies each quarter for all insured commercial banks.—^ Part of the information in the Call Report must be published by each bank in a newspaper in its hometown, and it is this information that is being used here. Last October, in response to inquiries about data relating to black banks, a special statistical tabulation was prepared, and it was indicated that additional reports would be made following receipt of data from the June and December Call Reports. Because of the time required to process and analyze the statistics, the reports may not be ready until four or five months following the receipt of the Call Reports. The present report is based on statistics from the Call Report as of December 31, 1971. The data are presented in four attached tables. Tables I A-D show data as of December 31, 1970; Tables II A-D show data as of June 30, 1971, and Tables III A-D show data as of December 31, 1971. In each case, Table A is a summary of assets and liabilities for all black banks combined. Table B shows principal assets of individual black banks, and Tables C 1/ The reports by national banks are received by the Comptroller of the Currency; reports by Federal Reserve member banks are received by the Federal Reserve Board; and reports by insured nonmember banks are received by the Federal Deposit Insurance Corporation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis - 3 - and D show for each bank principal liabilities, reserves and capital accounts. Table IV shows deposit growth and changes in selected types of assets of black banks during 1971. All of the statistics in the tables are from that part of the Call Report which each bank must publish locally. The individual bank reports are presented here as a matter of convenience. Trend in Assets of Black Banks On December 31, 1971, there were 29 banks owned and operated by blacks in the United States. Three of these institutions had been started within that calendar year. Eleven of the banks were members of the Federal Reserve System, and 18 were insured nonmembers. Ten of the banks had national charters (and thus they were required by law to be members of the Federal Reserve). And 18 had State charters. Among the latter, only one had elected to join the Federal Reserve System. At the end of last December, the 29 black banks had total assets of $460 million. Two-fifths of this total ($189 million) was held by member banks. During 1971, total assets of black banks rose by $138 million, or by 43 per cent. The assets of member banks expanded by $65 million—a rate of growth not quite as rapid as that recorded by nonmembers. The three newly-chartered banks accounted for about $12 million of the increase in 1 assets. Over three-quarters of the 1971 rise in the black banks total assets ($105 million) occurred in the last six months of the year. As one would expect, the highest growth rates were generally recorded by the newest banks. But several of the older banks also expanded their assets at rates well above the group average. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis - 4 - Black banks expanded their assets in 1971 about four times as fast as did all insured commercial banks (43 per cent vs. 11 per cent). Consequently, their combined assets rose to 0.072 per cent of the total for all insured banks at the end of last year—compared with 0.056 per cent at the end of 1970, and 0.049 per cent at the close of 1969. Nevertheless, the average black bank remains about one-third the size of the average bank in the country. For instance, as of December 31, 1971, the average insured U.S. bank had assets of $46.8 million; the average black bank had assets of $15.8 million. Sources of Funds: Growth of Deposits At the end of last December, total deposits of black banks amounted to $419 million. This was a rise of $131 million (or 46 per cent) during the year. Nearly three-fifths of the increase centered in 1 time and savings deposits. At the end of 1970, the black banks total deposits were divided roughly 50-50 between checking accounts and time and savings balances. The general structure of deposits at black banks seems to be roughly the same as that at other banks. As of last Decem- ber 31, total deposits of both groups of banks were distributed as follows: 49 per cent demand and 51 per cent time. During 1971, the black banks raised slightly their share of total deposits in the banking system. At the end of last year, they held 0.078 per cent of the total-- compared with 0.060 per cent a year earlier and 0.053 per cent at the end of 1969. However, the extent to which black banks have attracted deposits from broad segments of the economy varies considerably. As mentioned Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis - 5 - above, these institutions held 0.078 per cent of total deposits as of last December 31. On the same date, they held 0.071 per cent of private deposits (i.e., deposits of individuals, partnerships, and corporations). Their share of deposits of State and local governments was 0.102 per cent. In the case of the Federal Government, the proportion was 0.492 per cent. Thus, in relation to their size in the banking system as a whole, the black banks had performed best in attracting deposits of the Federal 1 Government, and State and local units were next in line. The black banks holdings of Federal Government deposits are examined further below. Uses of Funds: Scarcity of Loan Demand Black banks have demonstrated clearly their ability to attract deposits. Yet, they continued to face difficulties in finding reasonably secure outlets for their funds in the black community. At the end of 1971, they recorded $172 million in loans to businesses and individuals. This amount represented 41.1 per cent of their total deposits. For all insured banks, loans represented 64.5 per cent of deposits at the end of last year. Over the last few years, the ratio of loans to deposits has been shrinking for all banks. Black banks have exhibited the same trend, but the relative decline in the ratio has been somewhat greater for them. In the case of all insured banks, the proportion declined from 67.9 per cent at the end of 1969 to 64.5 per cent last year—a drop of 3.4 percentage points. For black banks, the decline was 6.0 percentage points—from 56.8 per cent to 50.8 per cent. To some extent, the lag in the growth of loans reflects the economic sluggishness associated with the 1969-70 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis - 6 - recession. The black banks may have been affected by the same factors, but more fundamental circumstances may also have been at work. The fact that black banks face a much higher degree of risk in extending loans than do banks in the nation as a whole is widely recognized: the lower income of the typical individual borrower, the smaller size of the average black business, and the higher incidence of crime in urban areas—all combine to compound the exposure of black banks to loan losses. The results can be traced in the evidence on relative loan losses and profitability. Reflecting this experience, the black banks have been cautious in channeling their new deposits into loans. For example, in the two years ending last December, the black banks lifted their share of total loans outstanding at all insured commercial banks from 0.044 per cent to 0.062 per cent. However, this relative increase was less than the rise in their share of total deposits—which rose from 0.053 per cent to 0.078 per cent. Thus, there was a widening of the gap between the ability of the black banks to attract funds and their ability to lend the funds in the black community. Because of these limited outlets for loans in their local communities, the black banks have relied heavily on the acquisition of investments as earning assets. They have concentrated particularly on U.S. Government issues, but obligations of States and political subdi- visions have also been acquired in substantial amounts. At the end of last December, total investments in marketable securities by the black banks amounted to $177.8 million. These holdings consisted of $138.9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis - 7 - million in U.S. Government and agency issues, $30.0 million in State and local obligations, and $8.9 million of other securities (including corporate stocks). In the aggregate, these investments represented 1 42.4 per cent of the black banks total deposits. On the same date, at all insured commercial banks, investments amounted to $169.6 billion— or 31.5 per cent of their total deposits. Over the last few years, the black banks have come to rely even more heavily on sales of Federal funds as deposit outlets. These 1 funds represent short-term lending of member banks excess reserves at Federal Reserve Banks. Usually smaller institutions supply such funds to the largest banks on an over-night basis. This allows them to employ their money at little cost and at a fairly good rate of interest—depending on money market conditions. For example, the Federal funds rate averaged about 4.91 per cent in June; interest rates on 3-month U.S. Treasury bills averaged 4.74 per cent; yields on residential mortgages were about 7,38 per cent, and interest rates charged on small business loans probably were even higher. At the end of last December, black banks as a group had sold about $41.4 million in Federal funds. This represented about 9.9 per cent of their total deposits. Both the level and ratio of Federal funds to deposits have been rising over the last few years. At the end of 1969, the percentage was 6.2, and it rose to 7.8 by December 31, 1970. Moreover, if Federal funds sold are classified as loans, the increased reliance on such outlets is still noticeable. As a proportion of total loans, fund sales rose from 10.9 per cent in 1969 to 14.3 per cent in 1970 to 19.4 per cent at the end of last year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis - 8 - Sales of Federal funds by all insured commercial banks have also been rising relative to total deposits, but the pace has been somewhat slower than at black banks. For example, at the end of 1969, the Federal funds/deposit proportion for all insured banks was 2.2 per cent; this rose to 3.3 per cent at the end of 1970 and to 3.7 per cent at the end of last year. Again if sales of Federal funds are classed as loans, the percentage rose from 3.2 in 1969 to 4.8 in 1970 to 5.4 at the end of last year. Furthermore, participation in the Federal funds market by black banks has risen substantially in the last few years. At the end of 1969, 13 of the 22 black banks (59 per cent) had sold such funds. One year later, 22 of the 26 institutions (85 per cent) had done so; and at the end of last year, 23 out of 29 (80 per cent) were carrying fund sales on their books. As one would expect, the dependence on sales of Federal funds varied appreciably from one bank to another. While for all banks fund sales represented 19.4 per cent of total loans at the end of 1971, the proportion was 50 per cent or more at two banks. It was between one- quarter and one-half at six other banks. To some extent, the heavy reliance on sales of Federal funds reflects the fact that several of the banks were recently opened for business. As is generally known, it takes time to develop loan outlets for deposits, so the banks put their liquid funds to work in the short-term money market. Yet, a number of the older banks seem to do so because of a scarcity of sound loan prospects. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis - 9 - Black Banks and the Federal Government In the last year or so, black banks have made a special effort to attract deposits of the Federal Government. They have argued that such funds would help them strengthen their lending in the black commu- nity. Partly in response to those arguments, a special $100 million- deposit program was announced on October 2, 1970, to be achieved within one year. The Federal Government's share of this total was set at $35 million, and the rest was to come from State and local governments and the private sector. The goals apparently were achieved by the target date— October 2, 1971. A few months later—December 31—the black banks held $50.3 million in U.S. Government deposits. This was an increase of $20 million (or two-thirds) over the $30.3 million outstanding at the end of 1970. As mentioned above, the black banks' total deposits rose by 46 per cent during 1971. By the end of last year, U.S. Government deposits amounted to 12.0 per cent of total deposits at black banks—compared with 6.5 per cent at the end of 1969 and 10.4 per cent at the close of 1970. The corresponding figures for all insured banks were 1.1 per cent in 1969, 1.6 per cent in 1970, and 1.9 per cent at the end of last year. Thus, the black banks have clearly demonstrated their ability to attract deposits from the Federal Government. What is less clear is the extent to which they have been able to use the funds to expand lending in the black community. Instead, it appears that black banks may be in the anomalous position of campaigning for U.S. Government funds which they then use to finance a disproportionate share of the Federal debt. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis - 10 - As indicated above, black banks have channeled a much larger proportion of their total deposits into U.S. Government issues than have banks generally. As of December 31, 1971, black banks held $88.2 million of U.S. Treasury securities and $50.6 million of Federal agency issues— for a total of $138.9 million of Federal Government obligations. During the course of 1971, this total rose by $56.4 million—or by 68 per cent. In comparison, the black banks' total assets rose by only 43 per cent in the same period. So at the end of last year, Federal Government securities 1 represented 30 per cent of the black banks total assets. In contrast, as of December 31, 1971, all insured commercial banks held $82.5 billion of Federal Government securities—consisting of $64.7 billion of Treasury issues and $17.8 billion of obligations of United States agencies. During 1971, this total rose by $7.9 billion—or by 11 per cent. These batnks' total assets expanded by 11 per cent. Thus, Federal Government securities accounted for 13 per cent of the total assets of all insured commercial banks at the end of 1971. To some extent, of course, the greater proportion of Federal Government issues in the portfolios of black banks reflects the relatively small size of these institutions. In general, smaller banks tend to hold a higher proportion of their assets in U.S. Government securities than do larger banks. But even after allowing for this fact, the black banks are still much more dependent on U.S. Government securities as outlets for their deposits. While these investments obviously provide black banks with earnings—and thus make a positive constribution to their progress—they also represent a use of funds alternative to the expansion of loans in the black community. - 0 - Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Table I-A CONSOLIDATED REPORT OF CONDITION FOR BLACK BANKS AS OF 70/12/31 (AMOUNTS IN THOUSANDS OF DOLLARS) ASSETS NATIONAL STATE MEMBER ALL MEMBER NONMEMBER TOTAL I. CASH AND DUE FROM BANKS 17* 53B 3*955 21*493 18*500 39,993 2. U.S. TREASURY SECURITIES 24*636 704 25*340 22,105 47,445 3. OBLIGATIONS 0* OTHER U.S. GOVT AGENCIES t CORPS 14*902 86 14*988 2 C , C19 3 5 ,0 C 7 4. OBLIGATIONS OP STATES t POLITICAL SUBDIVISIONS 3*009 10*111 13 *12C 9,884 23,0C 4 5. OTHER SECURITIES (INCLUDING CORPORATE STOCKS) 699 62 761 3 ,13C 3,891 6. TRADING ACCOUNT SECURITIES 0 0 0 C C 7* FEDERAL c UNOS SOLO 9*150 1 * 550 10*700 11,725 22,425 3. OTHER LOANS 51,107 11*520 62*627 72*284 134*911 9. BANK PREMISES* FURNITURE AND FIXTURES 2*380 4*589 6,969 4*461 11*430 10. REAL ESTATE OWNED OTHER THAN BANK PREMISES 486 108 594 480 1,074 11. ALL OTHER ASSETS 1*679 2C5 1*884 1,457 3,341 12. TOTAL ASSETS 125*586 32*890 158*476 164,045 322,521 LIABILITIES 13. DEMAND DEPOSITS* IPC 41*425 15*035 56*460 49,229 105,689 14. TIME AND SAVINGS DEPOSITS* IPC 48*9C7 8*838 57*745 68,525 126*270 15. DEPOSITS OF U.S. GOVERNMENT 12*641 1*513 14*154 16*118 30*272 16. DEPOSITS OF STATES AND POLITICAL SUBDIVISIONS 8*506 791 9*297 10,144 19,441 17. DEPOSITS OF FOREIGN GOVTS* OFFICIAL INSTITUTIONS 0 C C C 0 18. DEPOSITS OF COMMERCIAL BANKS 226 0 226 437 663 19. CERT IFIFD AND OFFICERS CHECKS, ETC 2*125 382 2 * 5C 7 3*262 5,769 20. TOTAL DEPOSITS 113*830 26*559 140*389 147*715 288,1C4 !A) TOTAL DEMAND DEPOSITS 57*111 17*282 74*393 73,184 147*577 (B) TOTAL TIME £ SAVINGS DEPOSITS 56*719 9*277 65*996 74,531 14r,527 21. FEDERAL FUNDS PURCHASED 0 0 C 150 150 22. MORTGAGE INDEBTEDNESS 111 3*200 3*311 879 4,190 23. ALL OTHER LIABILITIES 2*393 522 2*915 2,915 5,830 24. TOTAL LIABILITIES 116*334 30*281 146*615 151 * 659 298,274 25. MINORITY INTEREST IN CONSOLIDATED SUBSIDIARIES 0 0 0 19 19 CM . TOTAL RESERVES ON LOANS AND SECURITIES 288 179 467 625 1,092 CAPITAL ACCOUNTS 27. CAPITAL NOTES ANO DEBENTURES 825 C 825 350 1, 175 28. PREFERRED STOCK 0 0 C N C 29. COMMON STOCK 4*181 88C 5*061 5*552 10,613 30. SURPLUS 2*140 1*171 3*311 5,111 8,422 31. UNDIVIDEO PR^ITS 1*811 175 1,986 414 2,4CC 32. RESERVES FOR CONTINGENCIES £ OTHER CAP RESERVES 7 204 211 315 526 33. TOTAL CAPITAL ACCOUNTS 8*964 2*430 11*394 11*742 23,136 34. TOTAL LIABILITIES* RESERVES* AND CAPITAL ACCOUNTS 125*586 32 * 89C 158,476 164,045 3 22,521 NUMBER OF BANKS 8 1 9 17 26 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Table I-B PRINCIPAL ASSETS OF BLACK BANKS AS OF 70/12/31 {AMOUNTS IN THOUSANDS OF DOLLARS) OBLIG OBLIG CASH £ U.S. GOVT STATES a TRADG FED BANK ALL DUE FR TREAS AGEN £ POLIT OTHER ACCT FUNDS OTHER PREM £ REAL OTHER TOTAL BANKS SECUR CORPS SUBDIV SECUR SECUR SOLD LOANS FURN ESTATE ASSETS ASSETS UNITY BANK £ TRUST CO BOSTON MA 941 288 2,392 0 0 0 1,300 5,521 409 0 85 10,936 FQEEDOM NATIONAL BANK NEW YORK NY 6,773 8,589 10,020 0 113 r 2,200 16,187 605 486 671 45,644 UNITY STATE BANK DAYTON OH 205 629 0 0 0 0 475 923 55 0 32 2,319 INDUSTRIAL BANK OF WASHINGTON DC 1,953 4,348 2,483 3,532 2,893 0 r\ 7,955 506 64 53 23,787 UNITED COMMUNITY NAT BANK OF WASHINGTON DC 1,177 2,072 0 0 35 0 2,775 3,879 126 0 107 10,171 MECHANICS AND FARMERS BANK DURHAM NC 1,475 3,288 4,177 2,443 3 0 2,200 9,347 847 11 247 24,038 VICTORY SAVINGS BANK COLUMBIA SC 143 483 333 344 0 0 500 1,458 50 3 48 3,362 FIRST STATE BANK DANVILLE VA 345 393 0 B03 101 0 1,250 2,719 49 3 4 5,667 CONSOLIDATED BANK AND TRUST RICHMOND VA 2,066 1,058 800 1,191 0 0 1,300 7,262 221 0 138 14,036 CITIZENS TRUST COMPANY ATLANTA GA 3,955 704 86 10,111 62 0 1,550 11,520 4,589 108 205 32,890 CARVER STATE BANK SAVANNAH GA 701 1,364 100 286 0 0 0 1,454 47 0 1 3,953 CITIZENS SAVINGS BANK AND TR NASHVILLE TN 2, 189 955 1,760 15 0 0 0 2,415 29 0 0 7,363 HIGHLAND COMMUNITY BANK CHICAGO IL 239 300 1,006 0 0 0 650 38 25 0 35 2,293 INDEPENDENCE BANK OF CHICAGO CHICAGO IL 2,715 1,933 3,701 0 0 0 1,000 6,577 134 11 170 16,241 SEAWAY NATIONAL BANK OF CHICAGO IL 3,777 3,768 1,600 3,009 42 0 0 12,621 631 0 403 25,851 FIRST INDEPENDENCE NAT BANK DETROIT MI 1,250 2,414 901 0 446 0 2,COO 1,727 215 0 101 9,054 GATEWAY NATIONAL BANK ST LOUIS MO 1,189 2,528 880 0 13 0 600 5,152 240 0 92 10,694 TRI STATE BANK OF MEMPHIS MEMPHIS TN 937 2,380 298 379 50 0 800 6,747 2 50 39 110 11,990 FIRST PLYMOUTH NAT BANK MINNEAPOLIS MN 688 3,911 200 0 11 0 125 1,987 203 0 45 7,170 DOUGLASS STATE BANK KANSAS CITY KS 1,525 1,582 226 891 13 0 250 6,194 484 174 62 11,4C1 SWOPE PARKWAY NATL BANK KANSAS CITY. MO 1,770 854 C 0 23 0 900 5,974 102 0 102 9,725 AMERICAN STATE BANK TULSA OK 432 196 0 0 0 0 100 719 57 0 12 1,516 RIVERSIDE NAT BANK HOUSTON TX 914 500 1,301 0 16 0 550 3,580 258 0 115588 77,,227777 BANK OF FINANCE LOS ANGELES CA 1,740 1,289 1,934 0 69 0 900 10,056 884 175 364 1177,,441111 FREEDOM BANK OF FINANCE PORTLAND OR 342 1,065 0 0 1 0 300 636 200 0 47 2,591 LIBERTY BANK OF SEATTLE SEATTLE WA 552 554 809 0 0 0 700 2,263 214 0 55,,114411 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis PRINCIPAL LIABILITIES* RESERVES , AND CAPITAL ACCOUNTS OF BLACK BANKS AS OF 70/12/31 (AMOUNTS IN THOUSANDS OF DOLLARS) TIME £ DEPS CERT £ TOTAL FED DEMAND SAVNGS DEPS STATES £ DEPS DEPS OFFICERS TOTAL TIME £ FUNDS DEPS DEPS U.S. POLIT FOREIGN COML CHECKS TOTAL DEMAND SAVNGS PUR- MORT IPC IPC GOVT SUBDIV GOVTS BANKS ETC DEPS DEPS DEPS CHASED INDEBT UNITY RANK £ TPUST CO BOSTON MA 3,253 4,583 1,619 50 0 5 493 10,003 5,420 4,583 0 0 FREEDOM NATIONAL BANK NEW YORK NY 15*718 18,423 2,195 5,753 0 70 898 43,057 19,074 23,983 0 0 UNITY STATE BANK DAYTON OH 610 5 86 421 0 0 0 56 1,673 1,087 586 0 0 INDUSTRIAL BANK OF WASHINGTON DC 8,289 12,768 1,113 0 0 0 231 22,401 9,633 12,768 0 o UNITED COMMUNITY NAT BANK OF WASHINGTON DC 3,495 4,002 1,181 0 0 0 ICO 8,778 4,767 4,011 0 0 MECHANICS AND FARMERS BANK DURHAM NC 7,734 10,307 1,463 1,789 0 0 339 21,632 10,570 11,062 0 248 VICTORY SAVINGS BANK COLUMBIA SC 931 1,465 418 182 0 0 20 3,016 1,406 1 ,610 0 0 p IR ST STATE BANK DANVILLE VA 1,002 3,324 467 225 0 0 39 5,057 1,533 3,524 C 0 CONSOLIDATED BANK AND TRUST RICHMOND VA 3, 569 7,355 1,483 239 0 0 86 12,732 5,377 7,355 0 0 CITIZENS TRUST COMPANY ATLANTA GA 15,035 8,838 1,513 791 0 0 382 26,559 17,282 9,277 0 3,200 CARVER STATE BANK SAVANNAH GA 474 2,038 428 538 0 15 68 3,561 1,029 2,532 0 0 CITIZENS SAVINGS BANK AND TR NASHVILLE TN 2,637 2,839 485 794 0 0 43 6,798 3,699 3,099 C 0 HIGHLAND COMMUNITY BANK CHICAGO IL 397 496 614 0 0 0 95 1,602 1,106 496 0 0 INDEPENDENCE BANK OF CHICAGO CHICAGO IL 5,314 6,081 2,230 1,414 0 0 197 15,236 7,847 7,389 c 0 SEAWAY NATIONAL BANK OF CHICAGO IL 9,016 11,444 1,085 1,260 0 20 387 23,212 10,572 12,640 c 0 PIRST INDEPENDENCE NAT BANK DETROIT MI 1,935 3,348 2,218 101 0 n 63 7,665 4,217 3,448 0 0 GATFWAY NATIONAL BANK ST LOUIS MO 3,583 4,429 744 708 0 0 317 9,781 4,850 4,931 0 111 TRI STATE BANK OF MEMPHIS MEMPHIS TN 3,186 5,298 998 1,098 0 0 85 10,665 4,402 6,263 C C p I RST PLYMOUTH NAT BANK MINNEAPOLIS MN 1,213 1,447 3,417 3 54 0 0 85 6,516 4,769 1,747 0 C DOUGLASS STATE BANK KANSAS CITY KS 2,859 4,464 900 1,702 0 14 169 10,108 4, 840 5,268 0 2C5 SWOPE PARKWAY NATL BANK KANSAS CITY MO 4,278 2,962 969 0 0 135 112 8,456 5,494 2,962 C 0 AMERICAN STATE RANK TULSA CK 257 251 10 109 0 395 9 1,031 695 336 c 0 RIVERSIDE NAT BANK HOUSTON TX 2, 187 2,852 832 330 0 1 163 6,365 3,368 2 ,997 c 0 BANK OF FINANCE LOS ANGELES CA 6,490 4,496 2,184 1,372 0 0 1,284 15,826 10,840 4,986 0 339 FREEDOM BANK OF FINANCE POPTLAND , OR 620 715 322 302 0 0 14 1,973 958 1,015 0 0 LIBERTY BANK OF SEATTLE SEATTLE WA 1,60 7 1,459 963 ' 330 0 8 34 4,401 2,742 1,659 150 87 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis PRINCIPAL LIABILITIES, RESERVES, AND CAPITAL ACCOUNTS OF BLACK BANKS AS OF 70/12/31 (cont'd.) (AMOUNTS IN THOUSANDS OF DOLLARS) MINOR RESERVES TOTAL ALL INT IN ON LNS CAP RESERVES TOTAL LIABS, OTHER TOTAL CONSOL AND NOTES PREFER COMMON SUR- UNDIV FOR CAPITAL RESER, LIABS LIABS SUBSID SECUR £ DEB STOCK STOCK PLUS PROFIT CONTING ACCTS CAP ACCT UNITY BANK & TRUST CO BOSTON MA 619 10,622 0 231 0 C 600 315 -832 0 83 10,936 FREEDOM NATIONAL BANK NEW YORK NY 497 43,554 f> 82 400 0 876 400 325 7 2,008 45,644 UNITY STATE BANK DAYTON OH 64 1,737 0 0 0 0 254 211 117 0 582 2,319 INDUSTRIAL BANK OF WASHINGTON DC 329 22,730 0 23 0 0 248 606 175 5 1, C34 23,787 UNITED COMMUNITY NAT BANK OF WASHINGTON DC 98 8,876 0 54 0 0 750 2 50 241 0 1,241 10, 171 MECHANICS AND FARMERS BANK DURHAM NC 299 22,179 19 157 200 0 565 803 115 0 1,683 24,038 VICTORY SAVINGS BANK COLUMBIA SC 38 3,054 0 31 0 0 112 118 47 0 277 3,362 FIRST STATE BANK DANVILLE VA 40 5,097 0 30 0 C 50 375 10 105 54C 5,667 CONSOLIDATED BANK AND TRUST RICHMOND VA 251 12,983 0 61 0 0 300 625 67 0 992 14,036 CITIZENS TRUST COMPANY ATLANTA GA 522 30,281 0 179 0 0 880 1,171 175 204 2,4 30 32,890 CARVER STATE BANK SAVANNAH GA 35 3,596 0 15 0 0 149 56 82 55 342 3,953 CITIZENS SAVINGS BANK AND TR NASHVILLE TN 75 6,873 0 0 0 0 2 50 182 58 0 490 7,363 HIGHLAND COMMUNITY BANK CHICAGO IL 5 1,607 0 0 0 0 300 300 -64 150 686 2,293 INDEPENDENCE BANK OF CHICAGO CHICAGO IL 151 15,387 0 5 0 0 400 267 182 0 849 16,241 SEAWAY NATIONAL BANK OF CHICAGO IL 659 23,871 0 61 425 0 625 430 439 0 1,919 25,851 FIRST INDEPENDENCE NAT BANK DETROIT MI 87 7,752 0 0 0 C 750 3 50 202 0 1,302 9,054 GATEWAY NATIONAL BANK ST LOUIS MO 267 10,159 0 30 0 0 235 185 85 0 505 10,694 TRI STATE BANK OF MEMPHIS MEMPHIS TN 400 11,065 0 44 0 0 340 385 156 0 881 11,990 FIRST PLYMOUTH NAT BANK MINNEAPOLIS MN 181 6,697 0 16 0 0 250 iro 107 0 457 7,170 DOUGLASS STATE BANK KANSAS CITY KS 187 10,500 0 6 0 0 375 397 123 0 895 11,401 SWOPE PARKWAY NATL BANK KANSAS CITY MO 458 8,914 0 40 0 0 375 225 171 0 771 9, 72 5 AMERICAN STATE BANK TULSA OK 2 1,033 0 3 0 0 290 145 45 0 48C 1,516 RIVERSIDE NAT BANK HOUSTON TX 146 6,511 0 5 0 0 320 200 241 0 761 7,277 BANK OF FINANCE LOS ANGELES CA 369 16,534 0 0 150 0 667 60 0 0 877 17,411 FREEDOM BANK OF FINANCE PORTLAND OR 5 1,978 0 0 0 0 400 100 113 0 613 2,591 LIBERTY BANK OF SEATTLE SEATTLE WA 46 4,684 0 19 0 0 252 166 20 0 %38 "5,141 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Table II-A CONSOLIDATED REPORT OF CONDITION FOR BLACK BANKS AS OF 71/06/30 (AMOUNTS IN THOUSANDS OF DOLLARS) ASSETS NATIONAL STATE MEMBER ALL MEMBER NONMEMBER TOTAL 1. CASH AND DUE CRQM RANKS 14,370 4,773 l c ,143 20,19C 39,333 2. U.S. TREASURY SECURITIES 27,5 57 1,923 29,480 27,900 57,380 3. OR LIGATIONS 0*= OTHER U.S. GOVT AGENCIES £ CORPS 19f02 5 65 19,C9C 21,896 40,986 OBLIGATIONS OF STATES £ POLITICAL SUBDIVISIONS 4,542 7,263 11,805 12,200 24,OC 5 5. OTHER SECURITIFS (INCLUDING CORPORATE STOCKS) 1,836 62 1,898 5,316 7,214 6 • TRADING ACCOUNT SECURITIES 0 0 0 0 0 7. FEDERAL FUNDS SOLD 9,575 0 9,575 10,974 20,549 8. OTHER LOANS 54,483 13,260 67,743 80,978 148,721 9. BANK PREMISES, FURNITURE AND FIXTURES 2,775 5,013 7,788 4,541 12,329 REAL ESTATE OWNED OTHER THAN BANK PREMISES 589 41 630 536 1,166 11. ALL OTHER ASSETS It 224 188 1,412 1,776 3,188 12. TOTAL ASSETS 135,976 32,588 168,564 186,307 354,871 LIABILITIES 13. DEMAND DEPOSITS, IPC 42,314 9,771 52,C 85 59,218 111,303 14. TIME AND SAVINGS DEPOSITS, IPC 61,201 9,314 70,515 83 ,01C 153,525 15. DEPOSITS OF U.S. GOVERNMENT 9,806 293 1C,C99 11,475 21,574 16. DEPOSITS OF STATES AND POLITICAL SUBDIVISIONS 9,101 5,646 14,747 11,053 25,800 17. DEPOSITS OF FOREIGN GOVTS, OFFICIAL INSTITUTIONS 0 0 0 C 0 18. DEPOSITS OF COMMERCIAL BANKS 76 0 76 538 614 19. CERTIFIED AND OFFICERS CHECKS, ETC 1,836 241 2,077 2,927 5, CC4 20. TOTAL DEPOSITS 124,334 25,265 149,599 168,221 317,820 (A) TOTAL DEMAND DEPOSITS 56,468 14,232 70,700 77,430 148,130 (B) TOTAL TIME £ SAVINGS DEPOSITS 67,866 11,033 78,899 90,791 169,690 21. FEDERAL FUNDS PURCHASED 0 1,300 1,300 650 1,950 22. MORTGAGE INDEBTEDNESS 306 3,195 3,501 860 4,361 23. ALL OTHER LIABILITIES 2,316 500 2,816 3, 5 44 6,360 24. TOTAL LIABILITIES 126,956 30,260 157,216 173,275 330,491 25. MINORITY INTEREST IN CONSOLIDATED SUBSIDIARIES 0 0 0 20 20 26. TOTAL RESERVES ON LOANS AND SECURITIES 206 -13 193 620 813 CAPITAL ACCOUNTS 27. CAPITAL NOTES AND DEBENTURES 825 0 825 45C 1,275 28. PREFERRED STOCK 0 0 C 33 33 29. COMMON STOCK 4,181 880 5,061 5,837 1C,89 8 30. SURPLUS 2,282 1,171 3,453 5,397 8,850 31. UNDIVIDED PROFITS 1,519 86 1,605 659 2,264 32. RESERVES FOR CONTINGENCIES £ OTHER CAP RESERVES 7 204 211 16 227 33. TOTAL CAPITAL ACCOUNTS 8,814 2,341 11,155 12,392 23,547 34. TOTAL LIABILITIES, RESERVES, AND CAPITAL ACCOUNTS 135,976 32,588 168,564 186,307 354,871 NUMBER OF BANKS 8 1 9 18 27 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Table II-B PRINCIPAL ASSETS OF BLACK BANKS AS OF 71/06/30 (AMOUNTS IN THOUSANDS OF DOLLARS) OBLIG OBLIG CASH £ U.S. GOVT STATES £ TRADG FED BANK ALL DUE FR TREAS AGEN £ POLIT OTHER ACCT FUNDS OTHER PREM £ REAL OTHER TOTAL BANKS SECUR CORPS SUBDIV SECUR SECUR SOLD LOANS FURN ESTATE ASSETS ASSETS UNITY BANK £ TRUST CO BOSTON MA 637 509 1 ,842 0 429 0 1,050 4,464 405 0 161 9,497 FREEDOM NATIONAL BANK NEW YORK NY 4 ,561 9, 289 11 ,064 530 124 0 0 16,904 584 539 416 44,011 UNITY STATE BANK DAYTON OH 286 693 0 0 0 0 500 1,748 59 0 44 3,330 INDUSTRIAL BANK OF WASHINGTON DC 2 t 263 4,792 2 ,258 3 ,649 4,360 0 800 8,284 490 86 64 27,046 UNITED COMMUNITY NAT BANK OF WASHINGTON DC 1 • 199 2, 575 750 0 38 0 4,000 2,971 123 0 86 11,742 MECHANICS AND FARMERS BANK DURHAM NC 2 ,481 3, 751 4 1577 3 1714 3 0 400 10,022 835 12 2 54 26,049 VICTORY SAVINGS BANK COLUMBIA SC 223 483 356 377 0 0 450 1,539 69 3 42 3,542 FIRST STATE BANK DANVILLE VA 319 687 0 793 101 0 1,100 2,713 50 2 4 5,769 CONSOLIDATED BANK AND TRUST RICHMOND VA 1 ,759 It 552 1 ,840 1 1145 0 0 500 7,403 240 0 186 14,625 CITIZENS TRUST COMPANY ATLANTA GA 4 ,773 It 923 65 7 ,263 62 0 0 13,260 5,013 41 188 32,588 CARVER STATE BANK SAVANNAH GA 648 It 510 100 386 0 0 0 1,513 48 0 0 4,2 C 5 CITIZENS SAVINGS BANK AND TR NASHVILLE TN 1 ,974 954 1 ,861 416 0 0 0 2,385 29 c 0 7,619 HIGHLAND COMMUNITY BANK CHICAGO IL 511 1, 201 953 0 0 0 1,20C 1,961 46 0 78 5,950 INDEPENDENCE BANK OF CHICAGO CHICAGO IL 2 ,958 2, 802 2 ,703 309 0 0 1,050 9,853 134 11 223 20,043 SEAWAY NATIONAL BANK OF CHICAGO IL 3 ,332 4, 864 1 ,696 4 52 0 0 13,656 785 0 240 28,637 FIRST INDEPENDENCE NAT BANK DETROIT MI 1 ,053 3, 453 1 ,973 0 1,559 0 2,300 2,764 212 0 160 13,474 NORTH MILWAUKEE STATE BANK MILWAUKEE WI 224 801 46 0 0 0 150 938 23 0 11 2,193 GATEWAY NATIONAL BANK ST LOUIS MO 1 ,480 2, 365 2 ,C40 0 13 0 1,100 5,546 241 5C 120 12,955 TRI STATE BANK OF MEMPHIS MEMPHIS TN 1 ,253 3, 105 714 415 50 0 1,500 6,617 241 7 134 14 ,C36 FIRST PLYMOUTH NAT BANK MINNEAPOLIS MN 211 1, 814 200 0 12 0 1,000 2,330 352 0 68 5,987 DOUGLASS STATE BANK KANSAS CITY KS 1 1207 It 591 1 1275 996 13 0 624 6,482 486 1 c 7 138 13,0C9 SWOPE PARKWAY NATL BANK KANSAS CITY MO 1 ,455 2t 647 0 0 23 0 200 6,516 173 0 8 11,022 AMERICAN STATE BANK TULSA OK 446 495 0 0 225 0 100 1,344 95 C 11 2,716 RIVERSIDE NAT BANK HOUSTON TX 1 ,079 550 1 ,302 0 15 0 975 3,796 305 0 126 8,148 BANK OF FINANCE LOS ANGELES CA 1 ,871 907 2 ,296 0 135 0 0 10,733 865 218 315 17,34C c FRFEQOM BANK 0^ INANCF PORTLAND OR 500 It 416 •s 0 0 0 0 700 6 70 206 0 44 3,536 LIBERTY BANK OF SEATTLE SEATTLE WA 630 651 1 tC75 0 0 0 850 2,309 220 0 67 5, 8C 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Table II-C PRINCIPAL LIABILITIES, RESERVES, AND CAPITAL ACCOUNTS OF BLACK BANKS AS OF 71/06/30 (AMOUNTS IN THOUSANDS OF DOLLARS) TIME & DEPS CERT & TOTAL FED DEMAND SAVNGS DEPS STATES G DEPS DEPS OFFICERS TOTAL TIME L FUNDS DEPS DEPS U.S. POLIT FOREIGN COML CHECKS TOTAL DEMAND SAVNGS PUR- MORT IPC IPC GOVT SUBDIV GOVTS BANKS ETC DEPS DEPS DEPS CHASED INDEBT UNITY BANK 8 TRUST CO ROSTON MA 3,229 4,933 8 54 61 0 2 193 9,272 4,319 4,953 C 0 FREEDOM NATIONAL BANK NEW YORK NY 15,713 19,845 1,884 3,656 0 70 412 41,580 18,480 23,ICO C 0 UNITY STATE BANK DAYTON OH 9n8 1,052 5 86 r 0 0 26 2,572 1,520 1, C 52 C 0 INDUSTPIAL BANK OF WASHINGTON! DC 9,338 14,821 1,095 C 0 0 249 25,503 10,682 14,821 C 0 UNITED COMMUNITY NAT BANK OF WASHINGTON DC 3,331 5,291 1,525 0 0 C 143 10,290 4,99C 5,300 0 0 MECHANICS AND FARMERS BANK DURHAM NC 8,672 11,496 353 2,447 0 c 598 23,566 1C , 599 12,967 C 242 VICTORY SAVINGS BANK COLUMBIA SC 915 1,605 378 242 0 0 21 3,161 1,411 1,750 C 0 cIR ST STATE BANK DANVILLE VA 994 3,487 275 356 0 0 33 5,145 1,358 3,787 0 0 CONSOLIDATED BANK AND TRUST RICHMOND VA 3, 367 8,161 887 2C2 n C 82 13,199 5,038 8, 161 0 0 rITIZENS TRUST COMPANY ATLANTA GA 9,771 9,314 293 5,646 0 c 241 25,265 14,232 11,033 1, 3CC 3, 195 CARVER STATE RANK SAVANNAH GA 671 2,281 3 8° 455 0 15 21 3,823 1,072 2,751 0 0 CITIZENS SAVINGS BANK AND TR NASHVILLE TN 2,883 3,022 451 660 0 o 39 7,055 3,483 3,572 0 0 HIGHLAND COMMUNITY BANK CHICAGO IL 1, 562 1,855 1,659 100 0 0 60 5,236 3,281 1,955 c 0 INDEPENDENCE BANK OF CHICAGO CHICAGO IL 7,577 9, 168 1 ,C 57 835 0 n 254 18,891 8,920 9,971 0 0 SEAWAY NATIONAL BANK OF CHICAGO IL 8,979 13,907 1,073 1,830 0 0 379 26,168 1C,434 15,734 c 0 cIRST INDEPENDENCE NAT BANK DETROIT MI 1,792 6,333 1, °69 1,873 0 0 79 12,046 5,413 6,633 0 0 NORTH MILWAUKEE STATE BANK MILWAUKEE WI 637 514 163 30C 0 0 57 1,671 857 814 C 0 GATEWAY NATIONAL BANK ST LOUIS MO 4, 6C7 5,489 222 1,2 90 0 0 371 11,979 5,563 6,416 C 1C6 TRI STATE BANK 0*= MEMPHIS MEMPHIS TN 3,713 6,320 860 1,622 0 0 137 12,652 4,764 7,888 0 0 FIRST PLYMOUTH NAT BANK MfNNEAPOLIS MN 1,426 1,948 1,471 231 0 r 113 5,189 3,039 2,150 0 2C0 DOUGLASS STATE BANK KANSAS CITY KS 3,218 4,955 645 2,166 0 14 162 11,160 5,118 6,042 0 2C0 SWOPF PARKWAY NATL BANK KANSAS CITY MO 3, 748 5, C54 978 0 0 5 139 9,924 4,870 5,054 C C AMERICAN STATF BANK TULSA OK 543 712 222 199 0 499 25 2,200 1,313 887 0 0 RIVERSIDE NAT BANK HOUSTON TX 2,718 3,334 684 221 0 1 200 7,158 3,679 3,479 C 0 RANK OF FINANCE LOS ANGFLES CA 7,774 5,395 514 577 0 0 804 15,064 9, 379 5,685 650 332 FREEDOM BANK OF FINANCE PORTLAND OR 1,093 970 368 390 0 0 16 2,837 1,567 1,270 0 0 LIBERTY BANK OF SEATTLE SEATTLE WA 1,624 2,263 728 441 0 8 150 5,214 2,749 2,465 0 86 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Table II-D PRINCIPAL LIABILITIES, RESERVES, ANO CAPITAL ACCOUNTS OF BLACK BANKS AS OF 71/06/30 (cont'd.) (AMOUNTS IN THOUSANDS OF DOLLARS) MINOR RESERVES TOTAL ALL INT IN ON LNS :AP RESERVES TOTAL LIABS, OTHER TOTAL CONSOL AND 3TES PREFER COMMON SUR- UNDIV FOR CAPITAL RESER, LIABS LIABS SUBSID SECUR DEB STOCK STOCK PLUS PROFIT CONTING ACCTS CAP ACC1 UNITY BANK £ TRUST CO BOSTON MA 15C 9,422 0 178 0 0 600 314 -1,017 0 -103 9,497 FRFCDOM NATIONAL BANK NFW YORK NY 541 42,121 0 44 400 0 876 424 143 3 1,846 44,011 UNITY STATE BANK DAYTON OH 170 2,742 0 0 0 0 258 215 115 0 588 3 ,33C INDUSTRIAL BANK OF WASHINGTON DC 376 25, 879 0 33 0 0 248 606 275 5 1,134 27,046 UNITED COMMUNITY NAT BANK OF WASHINGTON DC 165 10,455 O 57 0 0 750 3 50 130 0 1,230 11,742 MECHANICS AND FARMERS BANK DURHAM NC 351 24,159 20 138 200 0 569 857 106 0 1, 732 26 r C49 VICTORY SAVINGS BANK COLUMBIA SC 32 3,193 0 31 0 0 112 140 66 0 318 3,542 FIRST STATE BANK DANVILLE VA 139 5,284 0 30 0 0 5C 375 30 0 455 5,769 CONSOLIDATED BANK AND TRUST RICHMOND VA 289 13,438 0 82 0 0 300 625 130 0 1,055 14,625 CITIZENS TRUST COMPANY ATLANTA GA 5C0 30,260 0 -13 0 0 880 1,171 86 204 2,341 32 ,588 CARVER STATE BANK SAVANNAH GA 32 3,855 0 15 0 0 150 56 118 11 335 4,205 CITIZENS SAVINGS BANK AND TR NASHVILLE TN 8 7,063 0 0 0 0 2 50 182 124 0 556 7,619 HIGHLAND COMMUNITY BANK n CHICAGO IL 117 5,353 0 1 0 300 300 -4 0 5^6 5,950 INDEPENDENCE BANK OF CHICAGO CHICAGO IL 229 19,120 0 21 0 c 400 267 235 n op 2 20,C 43 SEAWAY NATIONAL BANK OF CHICAGO IL 424 26,592 0 62 425 0 625 440 489 4 1 ,983 28,637 FIRST D ET IN R D O E IT P ENDENCE NAT MI B ANK 174 12,220 c 0 0 0 750 3 5C 154 0 1,254 13,474 NOPTH MILWAUKEE STATF BANK MILWAUKEE WI 19 1,690 0 c 0 0 275 165 63 n 503 2,193 GATEWAY NATIONAL BANK ST LOUIS MO 289 12,374 0 36 0 0 235 185 125 0 545 12,955 TRI STATE BANK OF MEMPHIS MEMPHIS TN 382 13,034 0 50 0 0 341 387 224 o 952 14,036 PIRST PLYMOUTH NAT RANK MINNEAPOLIS MN 132 5,521 0 17 0 c 250 100 99 n 449 5,987 DOUGLASS STATE BANK KANSAS CITY KS 735 12,095 0 18 0 33 375 397 91 0 896 13,0C9 SWOPE PARKWAY NATL BANK KANSAS CITY MO 389 10,313 0 -19 0 0 375 225 128 0 728 11,022 AMEPI CAN STATE BANK TULSA OK 32 2,232 0 3 0 0 290 145 46 r 481 2,716 RIVERSIDE NAT BANK HOUSTON TX 2C2 7,360 C 9 C 0 320 2C8 251 0 7 79 8,148 BANK OF FINANCE LOS ANGELES CA 275 16,321 0 1 250 0 668 ICO 0 0 1,018 17,340 CREEQOM BANK OF FINANCE PORTLAND OR 146 2,983 0 0 0 0 400 100 53 0 553 3,536 LIBERTY BANK OF SEATTLE SEATTLE WA 62 5,362 0 19 0 0 251 166 4 0 421 5 i 8C 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Table III-A CONSOLIDATED REPORT OF CONDITION FOR BLACK BANKS AS OF 71/12/31 (AMOUNTS IN THOUSANDS OF DOLLARS! ASSETS NATIONAL STATE MEMBER ALL MEMBER NIONMEMBFR TOTAL 1. CASH AND DUE FROM BANKS 24,496 4,626 29,122 21,588 50,710 2. U.S. TREASURY SECURITIES 43,172 2,878 46,050 42,178 88,228 3. OBLIGATIONS OF OTHER U.S. GOVT AGENCIES t CORPS 23,079 343 23,422 27,210 50,632 4. OBLIGATIONS OF STATES t POLITICAL SUBDIVISIONS 6,316 7,444 13,760 16,237 29,997 5. OTHER SECURITTF^ < INCLUDING C0RP3RATE STOCKSI 2,124 6? 2t 186 6,602 8,788 6. TRADING ACCOUNT SFCURITIES 0 0 0 0 0 7. FEOERAL FUNDS SOLI 22,226 0 22,226 19,200 41,426 8. OTHER LOANS 61,944 13,156 75,100 96,422 171,522 9. BANK PREMIS ES, FURNIf TURE AND FIXTURES 3,317 6,051 9,368 4,494 13,862 10. *FAL ESTATE OWNFD OTHER THAN BANK PREMISES 652 43 695 483 1,178 IK ALL OTHER ASSETS 1,594 249 1,843 2,201 4,044 12* TOTAL ASSETS 188,920 34,852 223,772 236,615 460,387 LIABILITIES 13. DEMAND DEPOSITS, IPC 52,843 10,571 63,414 66,559 129,973 14. TIME AND SAVINGS DEPOSITS, IPC 72,611 10,101 82,712 95,755 178,467 15. DEPOSITS OF U.S. GOVERNMENT 25,822 1,944 27,766 22,530 50,296 16. DEPOSITS OF STATES AND POLITICAL SUBDIVISIONS 20,771 5,185 25,956 22,638 48,594 17. DEPOSITS CIF FOREIGN GOVTS, OFFICIAL INSTITUTIONS 0 0 0 0 0 18. DEPOSITS OF COMMERCIAL BANKS 101 0 101 696 797 19. CERTIFIED AND OFFICERS CHECKS, ETC 2,631 431 3,362 7,946 11,008 20. TOTAL DEPOSITS 174,779 28,232 203,311 216,124 419,135 (A) TOTAL DEMAN3 DEPOSITS 83,137 16,628 99,765 102,728 202,493 (81 TOTAL TIME t SAVINGS DEPOSITS 91,642 11,604 103,246 113,396 216,642 21* FEDERAL FUNDS PURCHASED 0 0 0 0 0 22. MORTGAGE INDEBTEDNESS 103 3,465 3,568 842 4,410 23. ALL OTHER LIABILITIES 3,465 726 4,191 3,840 8,031 24. TOTAL LIABILITIES 178,347 32,423 210,770 220,806 431,576 25. MINORITY INTEREST IN CONSOLIDATED SUBSIDIARIES 0 0 0 21 21 26. TOTAL RESERVES ON LOANS AND SFCURITIES 381 25 406 832 1,238 CAPITAL ACCOUNTS 27. CAPITAL NOTES AWO DEBENTURES 825 0 825 2,675 3,500 28. PREFERRED STOCK 0 0 0 34 34 29. COMMON STOCK 5,044 897 5,941 6,007 11,948 30. SURPLUS 2,615 1,171 3,786 5,954 9,740 31. UNDIVIDED PROFITS 1,670 132 1,802 214 2,016 32. RESERVES FOR CONTINGENCIES t OTHER CAP RESERVES 38 204 242 72 314 33. T3TAL CAPITAL ACCOUNTS 10,192 2,404 12,596 14,956 27,552 34. TOTAL LIABILITIES, RESERVES, AND CAPITAL ACCOUNTS 188,920 34,852 223,772 236,615 460,387 NUMBER OF RANKS 10 1 11 18 29 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Table III-B PRINCIPAL ASSETS OF BLACK RAN«S AS OF 71/12/31 (AMOUNTS IN THOUSANOS flF HOLLARS) ORLIG OBLIG CASH K U.S. GOVT STATES £ TPADG FED BANK ALL OUF T3EAS AGFN £ POLIT OTHFR ACCT FIJNOS OTHFR PRFM £ real OTHFP TOTAL RANKS SECUR CORPS SUBOtV SFCUP SECUR SOLO LOANS FIJPN ESTATE ASSETS ASSET* UNITY RANK f. TtflJST Cn 10S TON MA 615 503 4,247 0 38? 0 2,600 5.032 337 0 ?06 13,977 PREFOOM NAT I ONM RANK NEW YORK MY 7, 96 7 10v 536 10,257 I t 581 123 0 6.500 15,468 585 601 543 54,161 UNITY STATF RANK DAYTON OH 579 It 585 0 0 0 0 400 2,376 76 0 85 5,101 INDUSTRIAL RANK WASHINGTON OZ I, RIO 4t 75? 2,657 3 .990 5.579 0 900 8, 756 489 72 45 29,050 UNITFD COMMUNITY NAT BANK OP WASHINGTON HC 1, 536 2 1594 21300 0 38 0 4, R5i 4,518 121 0 99 16,057 MECHANICS AND FAP*F*S HANK DURHAM MC 553 4t 2 53 5t 188 5 .235 4 0 4,600 10,131 B 3 R 24 236 34,162 GPEENSRORO NATIONAL *ANK GPFENSROPO rjr 275 450 130 0 367 0 0 712 66 0 I 1 2,011 VICTORY SAVINGS RA-JK CHLUMRIA SC 76 7 489 384 403 0 0 500 1,637 6? I 19 3, P 12 FI^ST STATF BAN* DANVUir V4 6?4 0 It 191 1 1018 1 3 3 0 1,050 3.084 44 2 4 7,200 ATLANTIC NAT NORFOLK VA 460 99 900 0 24 0 0 1,971 ? 41 0 30 3,725 : ONS3L IOATFI) BANK A \T, TPUST fflCHMONO VA It 460 It 013 2t 494 I 1665 0 0 I ,300 9 f 135 197 0 193 17,457 citizens T«usT company ATLANTA GA 4, 6?6 2t 878 343 7 *444 6 2 0 0 13,156 6,051 43 ?49 34,852 CAPVEP STATE oA\jK SAVANNAH GA I, 009 1 1576 100 380 0 0 200 1.676 4 0 0 0 4 ,990 CITIZENS SAVINGS R* MK AND TR NASHVILLE TN 948 11 258 1,860 458 0 0 150 2,507 71 0 0 7,408 HIGHLAND COMMUNITY BANK CHICAGr M 177 3,984 736 0 0 0 0 2,8 84 40 0 5? 8,427 f NDE C P H F I N C O A E G N O C F RANK IF rn IL i CAGO 3, 039 8t 706 1.90? 629 0 0 1,500 13,109 137 10 349 29,381 SEAW C AY H IC N A A G T O IO NAL RANK IL 5, R?5 8 .296 1 1393 4 t 21 9 52 0 0 14 » 2 72 9 ?0 0 32? 35,313 FIRST O FT IN PO OE IT P EN'lFMCr N AT M R ANK 7, 527 7, 102 2t 668 0 1.347 0 6 • 600 4, 297 211 0 167 24,919 NORTH MILWAUKfF STAT^ RAN* MIL WAIIK r f 4 I 445 31103 0 0 0 0 os 3 1,453 36 0 37 6,024 GATEW ST A Y LO N U A I T S I ONAL *MNK Mn It 739 3.687 2t 589 516 7 2 0 1 ,000 6,855 2 3R 51 156 16,90 3 TP I M ST E A M T P E H IS R ANK nr McMPH T I N S It 048 3.010 711 1 .476 50 0 l ,?on 7, R 03 ?6 ? 18 152 15,730 FIRST M fN PL N Y F M A O PO U L T H I S NAT RANK M N I. 2 90 5t 532 ?00 0 I 12 0 800 3,038 361 0 79 1 11 402 DOUG K L A AS N S S AS S T C A I T E T V B ANK KS It 099 I ,893 It 107 983 7 0 1,301 6,786 496 209 150 14,030 SWOPE PARKWAY N4H ^ A MK KANSAS CITY M0 It 463 3. 670 I, 125 0 23 0 1.400 6,234 264 0 7 2 14,201 AMEP T IC U A L N S A STATE RANK OK 576 690 0 0 2 31 0 100 1,634 93 0 10 3, 2R4 R 1 VE - P fO S 'l I S D T E O N N AT RAMK TX It 3 74 it206 1,512 0 16 0 1.0 75 4,579 301 0 165 10, 2 ? R RANK 0* EINANCF L OS ANGEI CA 1* 33? 2t598 3t004 0 205 0 1.500 14,428 834 M? 451 24,964 FRFEOOM RANK OF FIANCE POPTLANO 1R 371 1.9 75 too 0 0 0 750 793 197 0 3 4 4,270 L IRF S P F T A Y TT L RA F N K 0^ S^AT w T A IE It S9 1 785 1.529 0 11 0 0 3.098 221 35 73 7, 348 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Table III-c r^INCIPAL LIA R 11 ITIFS, RESERVES, AND CAPITAL ACCOJNTS OF BLACK BANKS A$ OF 71/12/31 I AMOUNTS IN THOUSANDS OF DOLLARS! TIME £ DEPS CERT rA TOTAL FED DEMAND SAVNGS DEPS STATES £ DEPS DEPS OFFICERS TOTAL TIME £ FUNOS DEPS DFPS U.S. POL IT FOREIGN COML CHECKS TOTAL DEMAND SAVNGS PUR- MORT IPC IPC GOVT SURD IV GOVTS BANKS ETC DEPS DEPS DEPS CHASED TNDFRT UNITY BANK L TRUST CD RTSTON MA 3,414 4,931 2,243 1,128 0 70 188 11,974 7,018 4,956 0 0 FREEDOM NATIONAL BANK NEW YORK NY 16,300 ?0,941 4,766 9,073 0 70 660 51,810 22,397 29,413 0 0 UNITY STATE BANK OAYTON OH 1,537 1,610 643 402 0 0 41 4,233 2,433 1,800 0 0 INDUSTR T At RANK HP WASHINGTON PC 9,910 16,169 1,005 0 0 0 228 27,312 11,143 16,169 0 0 UNITED COMMUNITY NAT BANK OF WASHINGTON OC 6. 1 BR 6,614 1,432 0 0 0 132 14,366 7, 752 6,614 0 0 MECHANICS ANO FARMfRS RANK DURHAM NIC 10,028 13,259 1,285 6,413 0 0 496 31,481 13,182 18,299 0 236 GREENSBORO NAT IHNA( «ANK GREENSBORO NC 4 P.O 413 116 280 0 25 13 1,327 634 693 0 0 VICTORY SAVINGS RANK COLUMBIA SC l,0?8 1,860 319 176 0 0 35 3,418 1,393 2,025 0 0 FIRST STATE BANK DANVILLE VA 1,503 3,720 375 919 0 0 45 6,562 1,752 4, 810 0 0 ATLANTIC NAT RK NORFOLK VA ^07 1 ,015 20 5 404 0 0 157 2,688 1,303 1,385 0 0 CONSOLIDATED RANK A MO TRUST RICHMOND VA 8,346 1,336 1,595 0 0 201 16,047 6,001 10,046 0 0 CITIZENS TRUST TOMPANY ATLANTA GA 10,571 10,101 1,944 5,185 0 0 431 28,232 16,628 11,604 0 3,465 CARVER STATE BANK SAVANNAH GA 8|4 2,678 372 645 0 15 49 4,573 I, 256 3,317 0 0 CITIZENS SAVINGS RANK AND TR NASHVILLE TN 2,326 3,412 307 670 0 0 78 6,793 2,811 3,982 0 0 HIGHLAND COMMUNITY RANK CHICAGO IL 1,99? 2,621 2,142 800 0 60 60 7,675 4,254 3,421 0 0 INDEPENDENCE BANK OF CHICAGO CHICAGO II 8,417 11,895 4,479 2.39 8 0 0 294 27,483 13,230 14,253 0 0 SEAWAY NATIONAL BANK OF CHICAGO IL 11, 1?1 15,161 2,998 2,970 0 0 471 32,721 14,509 18,212 0 0 FIRST INDEPENOFNCF NAT RANK DETROIT M| 3,174 8,529 8,016 3,380 0 0 162 23,261 11,857 11,404 0 0 NORTH MILWAUK FF STAT^ R^NK MILWAUKEE HI l,NO6 1,588 2,398 370 0 0 55 5,417 3,529 1,888 0 0 GATEWAY NATIONAL RANK ST LOUIS MO 4, 551 7, 146 2,203 1,019 0 0 600 15,519 7,125 8,394 0 103 TRI STATE BANK OF MFMPHIS MEMPHIS TN 4, 453 6,881 1,053 1,778 0 0 129 14,294 5, 837 8,457 0 0 FIRST PLYMOUTH NAT nANK MINNEAPOLIS m^ 2 , 7?0 3,818 3,446 607 0 0 137 10,728 6,313 4,415 0 0 DOUGLASS STATF RANK KANSAS CI^Y KS 3,298 5,426 900 2,660 0 15 189 12,488 5,941 66,,554477 0 196 SWOPE PARKWAY N^TL "4NK KANSAS CITY 4, 5?5 5,084 1,559 2,060 0 5 0 13,233 6,856 6,377 0 0 AMERICAN STAT R RANK TULSA HK 64 5 1,086 69 350 0 528 48 2,726 1,315 1,411 0 0 RIVERSIDE NAT RANK HOUSTON T X 2,877 3,890 1,081 978 0 I 299 9,126 4, 391 4,735 0 0 RANK OF FINANCF LOS ANGELFS FA 7,766 6,837 2,279 1,15? 0 0 5,628 23,162 15, 543 7,619 0 325 FREEDOM RANK nr ep^NCf PORTLAND FI* l,5?l 1,243 425 449 0 0 36 3,674 2,065 1,608 0 0 LIBERTY BANK OF SFATT'IF SFATTLF 2,832 2,193 900 733 0 8 146 66,,881122 44,,002244 22,,778888 0 85 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Table III-D PRINCIPAL LIABILITIES, RESERVES, AND CAPITAL ACCOUNTS OF BLACK BANKS AS OF 71/12/31 (cont'd.) fAMOUNTS IN THOUSANDS OF DOLLARS) MINOR RESERVES TOTAL ALL INT IN ON LNS CAP RESERVES TOTAL LIARS, OTHP R T3TAL CONSOL AND NOTES PREFER COMMON SUR- UNO IV FOR CAPITAL RFSER, LIARS LIABS SUBS ID SECUR C DEB STICK STICK PLUS PROFIT CONTING ACCTS CAP ACC1 UNITY BANK f. TRUST CO ROSTON *A 133 12,107 0 334 1,985 0 600 314 -1,363 0 1,536 13,977 FREEDOM NATIONAL BANK NEW YORK NY 1,014 52,824 0 0 400 0 R76 50 11 0 1,337 54,161 UNITY STATE BANK OAYTON UH 256 4,489 0 0 0 0 266 227 119 0 612 5, 101 INDUSTRIAL BANK OF WASHINGTON DC 391 27,703 0 27 0 0 248 649 398 25 1,320 29f050 UNITED COMMUNITY NAT ft ANK OF WASHINGTON DC 299 14,665 0 54 0 0 750 350 238 0 1,33R 16,057 MECHANICS AND FARMFRS BANK DURHAM NC 475 32,192 21 145 190 ' 0 580 967 67 0 1,804 34,162 GREENSBORO NATIONAL RANK GRFFNSBORO NC 13 1,340 0 0 0 0 280 280 111 0 671 2,011 VICTORY SAVINGS BANK COLUMBIA SC 54 3,472 0 33 0 0 112 140 55 0 307 3,812 FIRST STATE BANK DANVILLE VA 159 6,721 0 30 0 0 50 375 24 0 449 7,200 ATLANTIC NAT RK NORFOLK VA IB7 2,875 0 12 0 0 500 300 38 0 R 3 ° 3,725 CONSOLIDATED HANK A NO TRUST RICHMONO VA 309 16,356 0 77 0 0 300 675 49 0 I , 0? 4 17,457 CITIZENS TRUST COMPANY ATLANTA GA 7?6 32,423 0 25 0 0 897 I, 171 132 204 2,404 34,852 CARVER STATE BANK SAVANNAH GA 6 3 4,636 0 16 0 0 150 56 R6 46 338 4,990 CITIZENS SAVINGS BANK AND TR NASHVILLE TN 99 6,892 0 0 0 0 2 50 189 77 0 516 7,408 HIGHLAND COMMUNITY RANK CHICAGO IL 187 7,862 0 2 0 0 300 263 0 0 563 8,427 INDEPENDENCE RANK CHICAGO CHICAGO II AO 7 27,890 0 51 250 0 550 450 190 0 1,440 29,381 SEAWAY NATIONAL RANK OF CHICAGO IL 44 R 33,169 0 82 425 0 625 450 55R 4 2,06? 35,313 FIRST D ET IN R O O E IT P FNDFNCE NAT M R f ANK 375 23,636 0 17 n 0 750 350 166 0 1,266 24,919 NORTH MILWAUKEE STATF RANK MILWAUKEE Wf RO 5,497 0 0 0 0 275 165 87 0 527 6,0 24 GATEWAY NATIONAL RANK ST LOUIS MO 394 16,016 0 60 0 0 318 352 157 0 827 16,903 TRI STATF BANK OF K FMPH T S mfmphis tn 436 14,730 0 59 0 0 341 387 212 I 941 15,730 FIRST M I P N L N Y E M A O P U O T L H IS NAT RA M N N K 2PH 10,956 0 18 0 0 250 100 7* 0 4 2 R I 1,402 DOUGLASS STATF RANK KANSAS CITV KS ?80 12,964 0 46 0 34 3 75 556 55 0 1,070 14,030 SWOPF PARKWAY NATL A NK KANSAS CITY MO 271 13,504 0 113 0 0 375 117755 0 34 584 14,201 AMER T IC U A LS N A STATE RANK OK 29 2,755 0 12 0 0 290 114455 R2 0 517 3,2R4 RIVER H S O I U D S E T O N N A T RANK TX 236 9,362 0 25 n 0 320 220088 313 0 841 10,228 BANK LO O S F A F N IN G A E N LE C S E CA 390 23,877 0 0 .250 0 669 116688 0 0 1,087 ? 4,964 FREED P O O M R TL B A A N N D K OF FINANC O E R 30 3,704 0 0 0 0 400 110000 66 0 566 44,,227700 LIBER S T E Y A TT BA LE N K OF SEATTL W E A 62 6,959 0 0 0 0 225511 112288 10 0 33RR99 77,,334488 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Table IV Deposit Growth and Changes in Selected Types of Assets of Black Sanka, Deceaber 31, 1970 to December 31, 1971 (teowti in thousands of dollars) Changes in Major Types of Assets Cash and Due from U.S. Government and Federal Funds Total Deposits Total Assets Banks Agency Securities Sold Other Loan* Rate of Rate of Per cent Per cent Per cent Per cent Nake of Bank Growth Growth of Cheng* of Change of Change of Change Aattunt 1971 Amount 1971 Amount in Total Amount In Total Amount in Total Amount in Total (12/31/71) (Per cent) (12/31/71) (Per cent) 1(12/31/71) AiMti (12/31/71) Assets (12/31/71). Assets (12/31/71) Assets Unity Bank and Trust Co., 1,971 19.7 3,041 27.8 10.7 2,075 , 68.2 1,300 42.7 - 489 - 16.1 Boston Free N d ew o m Y N o a rk t ional Bank, 8,753 20.3 8,517 18.7 - 2,184 25.6 4,300 50.5 - 719 - 8.4 Unity State Bank, Dayton 2,560 153.0 2,782 120.0 374 13.4 956 34.4 - 75 - 2.7 1,453 52.2 Industrial Bask of Washing- 4,911 21.9 5,263 22.1 - 143 2.7 578 11.0 900 17.1 801 15.2 ton, D.C. United Consunity National 5,588 63.7 5,886 57.9 - 2,822 47.9 2,076 35.3 639 L0.9 Bank, Washington, D.C. Mechanics and Farmers Bank, 9,849 45.5 10,124 42.1 2,078 20.5 . 1,976 19.5 2,400 23.7 834 8.2 Durham Victory Savings Bank, Columbia 402 13.3 450 13.4 124 27.6 57 12.7 0 - 229 50,9 First State Bank, Danville 1,505 29.6 1,533 27.1 329 21.5 798 52.1 - 200 - 13.0 365 23.8 Consolidated Bank and Trust, 3,315 26.0 3,421 24.4 . 606 17.7 1,649 48.2 0 1,873 54.8 Richmond Citizens Trust Company, 1.673 6.3 1,962 6.0 671 34.2 257 13.1 - 1,550 - 79.0 1,636 83.4 Atlanta Carver State Bank, Savannah 1,012 28.4 1,037 26.2 308 29.7 212 20.4 200 19.3 222 21.4 Citizen's Savings Bank and 5 -0.7 45 0.6 - 1,241 757.8 403 895.6 350 777.8 92 204.4 Trust, Nashville Highland Community Bank, 6,073 379.1 6,134 267.5 7.9 3,414 55.7 - 650 - 10.6 2,846 46.4 Chicago Independence Bank of Chicago 12,247 80.4 13,140 80.9 324 2.5 4,974 37.9 500 3.8 6,532 49.7 0 Seaaay National Bank, Chicago 9,509 41.0 9,462 36.6 - 4,326 45.7 0 - 1,651 17.4 First Independence National 15,596 203.5 15,865 175.2 0 - 6,435 40.7 4,600 29.0 2,570 It.! Bank, Detroit Gateway Rational Bank, 5,738 58.7 6,209 58.1 - 2,868 46.2 400 6.4 1,703 37.4 St. Louia Tri State Bank of Memphis 3,629 34.0 3,740 31.2 111 3.0 1,043 27.8 400 10.7 1,056 28.2 Plrat Plymouth National 4,212 64.6 4,232 59.0 0 - 1,621 38.3 675 15.9 1,051 24.8 Bank, Minneapolis Dewglass State Bank, Kansas 2,380 23.5 2,629 16.2 1,192 45.3 1,050 40.0 592 22.5 City, Kansas Swepe Parkway National Bank, 4,777 56.5 - 3,941 88.0 500 11.2 260 5.8 Kansas City, Mo. American State Bank, Tulsa 1,695 164.4 1,768 116.6 94 5.3 494 27.9 0 - 915 51.8 Riverside National Bank, 2,761 43.4 2,951 40.6 0 - 917 31.1 525 17.8 999 31.9 Houston Bank of Finance, Los Angeles 7,336 46.4 7,553 43.4 92 1.2 2,379 31.5 600 7.9 4,372 57.t Freedom Bank of Finance, 1,701 86.2 1,679 64.8 29 1.7 1,010 60.2 450 26.8 157 9.4 Portland Liberty Bank of Seattle 2,411 54.8 2,207 1,039 47.1 951 43.1 - 700 - 31.7 835 37.8 Memo A r ll a nd B u l m a ck Banks 131,031 45.5 137,866 10,717 7.8 56,625 41.1 19,001 13.8 36,611 26.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Andrew F. Brimmer (1972, July 30). Speech. Speeches, Federal Reserve. https://whenthefedspeaks.com/doc/speech_19720731_brimmer

@misc{wtfs_speech_19720731_brimmer,
  author = {Andrew F. Brimmer},
  title = {Speech},
  year = {1972},
  month = {Jul},
  howpublished = {Speeches, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/speech_19720731_brimmer},
  note = {Retrieved via When the Fed Speaks corpus}
}