frsbog_mim_v39_0200.pdf

FEDERAL RESERVE BOARD WASHINGTON

a d d r e s s o f f i c i a l c o r r e s p o n d e n c e t o t h e f e d e r a l r e s e r v e b o a r d

X-7572

August 30, 1933.

Dear Sir;

Inclose'd are ten copies of a memorandum prepared in

order to expedite the handling of applications for membership

in the Federal Reserve System through obtaining reasonable

uniformity in the arrangement and form of data accompanying

applications as submitted to the Board.

department to prepare such data in the form outlined in the

inclosed memorandum. Additional copies of this outline are

available for the use of your department if desired.

It will be appreciated if you will instruct your

Very truly yours,

Chester Morrill, Secretary.

Inclosures

TO ALL F. B. AGENTS.

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Exam 2 GENERAL STYLE OF MEMORANDUM

TO ACCOMPANY APPLICATIONS FOR MEMBERSHIP

This outline is intended only to obtain reasonable uniformity in the arrange-

ment and form of memoranda covering applications for membership and is not intended

to limit the scope of the information to be submitted. Each memorandum should in-

clude information relative to any other circumstances which have a significant̂ .--

bearing on the condition of the applicant bank and which should be considered in

passing upon the application. The memorandum to be prepared in this general style

is not intended to supplant the analysis on Federal Reserve Board Form 212 which

should accompany the report of examination and the application.

PLEASE SUBMIT EACH MEMORANDUM IN ORIGINAL AND FOUR CARBON COPIES (in typewriting the memorandum, please double-space all textual matter)

1. DATA ON CITY OR TOWN IN WHICH BANK IS LOCATED (include information as to size and character of community, relative location of city or town in the State with respect to other cities, and nature of principal business or agricultural activities. Give number of other banks in community, with comment as to whether open, closed, or operating under restrictions. If located in a large city, give location of bank with respect to principal business district,nature of the district served, and general type of business conducted ty the bank).

2. STATUS OF BANK (Is bank now operating free of restrictions, and if not, on what basis? Give full information as to any previous restrictions or waiver plans and date when restrictions were removed. If bank has ever been a mem-ber, give period of membership and reason for discontinuance c£ membership).

3. CONDENSED STATEMENT OF CONDITION (Show from where taken and the date). After statement of condition, show following information, where available; Past due paper & (Also show portion of this amount which repre-sents paper past due 6 months or more, if available).

Loans predicated on real estate (Also show portion of this amount which' represents paper secured ty junior liens and amount representing debts previously contracted, if available). Potential "other real estate" in loans $> . Liability of directors, officers, employees and their interests;

Direct # Indirect

Total $ Public deposits $ .Assets pledged to secure:

Borrowings & Public deposits

Total pledged S

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CLASSIFICATION OF CRITICIZED ASSETS (Show from where taken) In tabular form show classification of the various assets. Show depreci-

ation on investments in various subheadings: (a) U. S. Government5 (b) State, county, and municipalj (c) First four grades; (d) Lower grades; (e) Not rated; (f) Defaulted bonds; (g) Stocks; (h) Any other headings necessary to show proper picture.

Explain any reclassification of assets criticized ty examiner.

LIQUIDITY General comment, with various ratios to - Deposits

Total Unsecured Cash and exchange Cash and exchange and unpledged U. S.

Government bonds Cash and exchange and market value of

unpledged securities Amount of paper eligible for rediscount.

EARNINGS, DIVIDENDS AND CHARGE-OFFS (Earnings and charge-off record of the bank over a period of several years and voluntary contributions made or assessment paid try shareholders of the bank during such period. Set up in tabular form where possible).

TREND OF DEPOSITS (List deposits on the last day of the year for a period of several years).

ORGANIZATION AND POTTERS (Enumerate powers which Federal reserve bank's counsel advises bank is authorized to exercise under charter and State law, pointing out any other or unusual powers being exercised try bank. Make definite statement"as to whether or not bank is exercising any powers other than those incident to usual commercial banking operations).

TRUST DEPARTMENT (Information as to the operations of the trust department, if any. If the trust department was not covered by the current exam-ination, state when an examination of this department was last con-ducted and the condition disclosed ty such examination. Discuss in-vestment policies; supervision by directors; extent of investment in securities of affiliated interests, directors' interests, or other friendly interests; source of principal purchases of trust investments).

AFFILIATIONS (If the institution is controlled by a holding company, give the name of such company, the extent of its control and supervision by such company, and if the subject institution owns, controls, or is closely affiliated in any way with other corporations, give detailed information as to the nature of the affiliation, the condition of the affiliate, and the effect of the affiliation on the affairs of this bank).

BRANCHES (Include information whether there are branches outside the city limits, when and where established, etc.).

CHARACTER OF MANAGEMENT AND CONTROL (Discuss fully).

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-» 3 '•UO Exam 2

15. COMMENTS OF BANK EXAMINER WHO MADE THE EXAMINATION

14. COMMENTS OF EXAMINER WHO PREPARES THIS ANALYSIS (Any comments not covered by examiner under No. 13).

15. COMMENTS OF FEDERAL RESERVE AGENT

16. RECOMMENDATION OF RESERVE BANK COMMITTEE

Note:- Under heading 13, 14, or 15 discuss need of the community for the

banking facilities provided by the applicant bank, its competitive position,

and the probability of the successful operation of the bank in view of all

of the circumstances involved.

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