STATE BANKING DEPARTMENT REPORT OF THE COMMISSIONER. STATE OF MICHIGAN, Banking Department, Lansing, December 31, 1921. To the Honorable Alex. J. Groesbeck, Governor, State of Michigan: The general tendencies of the year up to September 6, 1921, as reflected in the condition of Michigan state banks are indicated by the following comparative statement: Since September 8, 1920, the general tendency has been toward a reduction in loans and discounts and bills payable and rediscounts. I believe the general banking and economic conditions in Michigan to be fundamentally sound and that the present depression will be successfully weathered. Present indications are toward a gradual revival of business upon a more stable foundation, a general easing of credit, and a gradual return to prosperity. Our state banks have again withstood the test and I believe are more secure as the result of the trials of strength to which they have been subjected. I take pleasure in presenting the detailed statistics outlining the activities of this Department and the condition of the institutions under its supervision in the following pages. Respectfully submitted, REPORT OF COMMISSIONER. NUMBER OF STATE BANKS AND TRUST COMPANIES. There are at the date of this report, under the supervision of the Department, 559 state banks, 2 industrial banks and 11 trust companies transacting business in Michigan. FINANCIAL CONDITION. Reports showing the condition of all state banks and trust companies will be found on pages 3 to 296 inclusive. Reports of condition were called for by the Department and made by the banks at the close of business, December 28, 1920, February 21, April 28, June 30, September 6, and December 31, 1921. The report of September 6, as to each state bank will appear in the Department's annual report for the year 1921. In order that the annual report may be in the hands of the public in time to be of use as a book of reference, this plan of publishing reports has been adopted. Statements of condition of each national bank in Michigan will be found on pages 299 to 358 inclusive. Again included are the statistics of the state and national banks located in Detroit and statistics of the state and national banks by counties. NUMBER OF EXAMINATIONS. The examining staff of the Department, during the year 1921, made examinations, as follows: All state banks have been examined during the year as well as 10 trust companies. Preliminary examinations consist of examinations of new banks under Section 7 of the Banking Law, which is incumbent upon the Department to make precedent to the issuance of certificate of authority to commence business. Reports of examiners as to condition of the several state banks have been carefully scrutinized and letters of criticism written the banks. Such letters, as well as replies thereto, are made a part of the directors' records in each bank. All state banks, with the exception of those organized during the year, have made five reports of condition, two reports of earnings and dividends, two reports showing results of directors' examinations, and also special reports whenever the Department has deemed it necessary to require the same. Oaths of directors, signatures of officers, and list of stockholders, together with a report as to the number of depositors, are furnished the Department each NEW BANKS. During the year 1921 the following Michigan state banks have been authorized to commence business: For the purpose of increasing their capital stock the following banks have amended their original articles of incorporation, in accordance with Sections 10 and 10-a of the General Banking Law. The foregoing table shows an increase in capital stock of $1,694,000.00, adding to this amount $2,380,000.00 capital stock of new banks makes a total increase for the year of $4,074,000.00. After subtracting $421,000.00 the capital of the banks consolidated, liquidated, and the one decrease in capital stock there re CONSOLIDATION. The stockholders of "The American Savings Bank of Lansing" and the "Lansing State Savings Bank of Lansing" on the 3d and 4th days of February, 1921, respectively, voted to consolidate the affairs of both institutions under the provisions of Section 54 of the general banking law, which consolidation became effective February 11, 1921, under the title of "The American State Savings Bank of Lansing." The stockholders of the "First State Savings Bank of Breckenridge" and "The Farmers' State Bank of Breckenridge" on the 8th and 9th of March, 1921, respectively, voted to consolidate the affairs of both institutions under the provisions of Section 54 of the general banking law, which consolidation became effective March 15, 1921, under the title of "The Farmers' State Bank of Breckenridge." The stockholders of "The Oakland County Savings Bank of Pontiac" and the "Pontiac Commercial and Savings Bank of Pontiac" on the 5th day of May, 1921, voted to consolidate the affairs of both institutions under the provisions of Section 54 of the general banking law, which consolidation became effective May 31, 1921, under the title of "Pontiac Commercial and Savings Bank of Pontiac." On May 31, 1921, the "Federal Commercial and Savings Bank of Port Huron" purchased the assets and assumed the liabilities of the "South Park Federal Commercial and Savings Bank of South Park." CHANGE OF TITLE. The following banks have amended their original articles of incorporation for the purpose of changing their corporate title: Lansing State Savings Bank, Lansing, to American State Savings Bank, Lansing. Loan & Deposit Bank, Grand Ledge, to Loan & Deposit State Bank, Grand Ledge. RESERVE CITIES. As required by Sections 24 and 27 of the General Banking Law, I hereby designate for the year 1922 the following cities as reserve cities for Michigan state banks and trust companies: Adrian, Alpena, Ann Arbor, Battle Creek, Bay City, Benton Harbor, Cadillac, Detroit, Flint, Grand Rapids, Jackson, Kalamazoo, Lansing, Marquette, Muskegon, Pontiac, Port Huron, Saginaw, Sault Ste. Marie, Traverse City, Baltimore, Boston, Buffalo, Chicago, Cincinnati, Cleveland, Milwaukee, Minneapolis, New York, Philadelphia, Pittsburg, St. Louis, St. Paul and Toledo. EXTENSION OF CORPORATE EXISTENCE. In accordance with the provisions of Act 143 of the Public Acts of 1899 the stockholders voted to extend the corporate existence of the following banks for the period specified: 111 Lowell State Bank, Lowell, for thirty years from and after January 5, 1921. 112 Owosso Savings Bank, Owosso, for thirty years from and after January 12, 1921. 115 Grosvenor Savings Bank, Jonesville, for thirty years from and after February 9, 1921. 117 State Savings Bank, Lapeer, for thirty years from and after March 31, 1921. 118 Clare County Savings Bank, Clare, for thirty years from and after May 17, 1921. 119 First State Bank, Petoskey, for thirty years from and after June 18, 1921. 120 First State Savings Bank, Three Rivers, for thirty years from and after July 2, 1921. 122 Marine Savings Bank, Marine City, for thirty years from and after August 20, 1921. 124 Shiawassee County Bank, Durand, for thirty years from and after August 126 First State Savings Bank, Flushing, for thirty years from and after November 11, 1921. 129 Elk Rapids State Bank, Elk Rapids, for thirty years from and after November 6, 1921. 130 Antrim County State Savings Bank, Mancelona, for thirty years from and after December 27, 1921. 132 State Bank of Perry, Perry, for thirty years from and after January 2, 1922. 133 American State Savings Bank, Lansing, for thirty years from and after January 3, 1922. 134 Citizens State Bank, Sturgis, for thirty years from and after January 25, 1922. 135 Commercial Bank, Iron Mountain, for thirty years from and after January 31, 1922. 137 Commercial Savings Bank, Marshall, for thirty years from and after February 1, 1922. GROWTH OF STATE BANKS. December 31, 1921, marks the thirty-third anniversary of the founding of the present system of state bank supervision in Michigan. The following table shows the enormous increase in the aggregate footings of the state banks from the close of the first year's existence of this Department to the present time: De In the period 1889-1921 the following approximate increases are shown: posits, $774,000,000; loans, $776,800,000; capital, $56,000,000; surplus and undivided profits, $52,700,000. EARNINGS AND DIVIDENDS OF STATE BANKS. The General Banking Law of the State of Michigan does not fix a uniform dividend period for state banks. It provides, however, that each bank shall report to the Commissioner of the Banking Department within ten days after declaring any dividend, such reports showing amount of dividend, amount carried to surplus and any earnings in excess thereof. The custom of the Department in this regard is to call for a report of earnings and dividends as of June 30 and |