Current through Register Vol. 24-18, September 15, 2024
The notice of intention to organize a state bank or trust
company shall be filed with the director in duplicate, on a form furnished by
the division of banks. It is the established policy of the division of banks to
require diligent and timely completion and submission of forms, schedules,
surveys, economic studies, maps and all supporting data deemed necessary and
required to conduct the statutory investigation. For the purpose of expediting
the investigation and correlating said investigation with that of the Federal
Deposit Insurance Corporation, in the event deposits of the proposed bank or
trust company are to be insured by that agency, the schedules, statements and
supporting data shall be organized under six basic general headings or
factors:
(1) Financial history and
condition.
(a) Pro forma statement of
condition - beginning of business.
(b) Premises to be occupied by proposed bank,
whether owned or leased, whether permanent or temporary, details as to
description, costs, from whom purchased or leased, insurance coverage,
estimated annual depreciation. If property is to be purchased or leased from a
director, officer, a large shareholder, or an interest of any such, complete
details should be furnished.
(c)
Details as to proposed investment in and rental of furniture, fixtures and
equipment.
(d) Relationships and
associations with proposed bank of any of the sellers or lessors of land,
buildings or equipment, either directly or indirectly.
(e) Organization expenses (which should not
be borrowed from any source) - complete and detailed accounting is required for
all expenses related to organization, including detailed account of actual
legal work performed together with any additional costs anticipated prior to
opening or costs incurred or work performed during the organization period for
which disbursement has been deferred beyond the opening date.
(2) Adequacy of the capital
structure.
(a) Proposed allocations within
total capital structure.
(i) Amount of paid-in
common capital stock (No. shares x par value).
(ii) Amount of paid-in surplus.
(iii) Amount of paid-in undivided
profits.
(iv) Amount of other
segregations, including the organization or expense fund, if planned.
(b) Minimum capital requirements
of state law (RCW 30.08.010 as amended by chapter 104, Laws of 1973).
(c) The adequacy (deemed reasonable) of the
proposed capital structure is evaluated, in part, by:
(i) The population of the community to be
served.
(ii) Ratio the projected
net total capital structure will bear to the estimated volume of deposits at
the end of each of the first three years of operations.
(3) Future earnings prospects. A
detailed projection of earnings and expenses is to be submitted showing the
breakdown of income and expenses for each of the first three years of
operations. Provision should be made for the bad debt reserve (loan losses)
based upon the major types of loaning demands the proposed bank expects to
serve and total loans expected by the end of the first, second and third years
of operations.
(4) General
character of management.
(a) A financial
report and a biographical report for each officer and director is required
together with a report by each officer and director stating the number of
shares to be purchased, the total cost of such shares and details as to source
and financing terms for such portion as not paid in cash. (If disclosure of any
of the proposed officers would jeopardize current employment, include the
information in a special "CONFIDENTIAL SECTION.")
(b) The subscribers (proposed shareholders)
are to be listed alphabetically with name and address, occupation and number of
shares being purchased indicated by number of shares and total subscription
price. The list should indicate "D" for the directors designee, "O" for
officers.
(c) For any subscribers
for 5% or more of the proposed capital stock, the financing terms are required
as for directors and officers.
(d)
The membership of the committees of the directorate are to be designated and
duties outlined, including:
(i) Loan and/or
executive committee.
(ii)
Investment committee.
(iii) Audit
committee.
(e)
Management of the proposed bank will report:
(i) Name of principal correspondent bank or
banks and basis upon which the selection was made.
(ii) Determination that sufficiency of surety
bond coverage conforms with generally accepted banking practices.
(f) Any changes contemplated in
the proposed directorate or active management during the first year are to be
reported, or, if none, so state.
(5) Convenience and needs of the community to
be served.
(a) Applicants have the
responsibility of developing as fully as possible the economic support and
justification for the proposed bank including:
(i) The community and "surrounding country"
(the trade territory or market area) which the proposed bank will serve,
including the geographic boundaries within which all or most of the bank's
potential customers reside.
(1) Furnish a
detail map of such area pinpointing and indexing each financial institution
(banks and savings and loan associations and mutual savings bank, whether head
office or branch office).
(2)
Provide list or recapitulation of subscribers residing in or closely identified
with the area to be served.
(3)
Provide estimates of the total deposits anticipated during the early period of
operations together with totals expected by the end of each of the first three
years. The latter should be segregated:
(a)
Demand deposits.
(b) Savings
passbook accounts.
(c) Other time
deposits.
(d) Public
funds.
(e) Recapitulation as to
total demand and total time.
(4) The economic characteristics of the trade
territory specified above for the most recent five-year period where
possible... including manufacturing, agricultural and other industrial data,
construction activity, retail and wholesale sales, housing starts, school
population, census figures and projections.
(5) Such additional data relating to the
trade area considered relevant and indicating support for the proposed bank as
may be obtained from such sources as local offices of utilities, planning
commission, chamber of commerce or trade associations, traffic surveys, county
auditor, title insurance company, etc. (In the event an economic survey or
feasibility study has been prepared it may provide most of the information
needed.)
(ii) List
principal business and industries of the market area by name of company, type
of business, average number of employees, approximate annual payroll and annual
sales. If significant, furnish details as to public employment of the area,
including schools, military, U.S., state, county, municipal or other.
(b) List all banks, branches,
trust companies, mutual savings banks and branches, together with savings and
loan associations presently serving in the proposed market area and surrounding
country, including any authorized but unopened offices, indicating "N/A" for
information determined unobtainable:
(i) Name
of the financial institution.
(ii)
Location.
(iii) Distance (road
miles or city blocks) from proposed site.
(iv) Direction from site.
(v) Date established.
(vi) Date of latest statement
available.
(vii) Deposits: Demand,
time and total.
(viii) Loans:
Commercial, consumer, real estate secured and total to extent
available.
(6) Consistency of corporate powers. In
addition to the proposed articles of incorporation submitted with the notice of
intention to organize, the proposed bylaws should be submitted together with
articles of incorporation and complete details for any proposed affiliate
(i.e., a premises holding company).
Statutory Authority: RCW 30.04.030 and
43.320.040. 00-17-141, amended and
recodified as §
208-528-030, filed 8/22/00,
effective 9/22/00; Order 21, § 50-28-030, filed
8/6/73.
