Each depositor insured to at least $250,000 per insured bank

The Federal Reserve Board, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, today issued the host state loan-to-deposit ratios that the banking agencies will use to determine compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (Interstate Act).

Section 109 prohibits any bank from establishing or acquiring a branch or branches outside of its home state under the Interstate Act primarily for the purpose of deposit production and provides a two-step process to test compliance with the statutory requirements.

The first step involves a loan-to-deposit ratio screen that compares a bank=s statewide loan-to-deposit ratio to the host state loan-to-deposit ratio for a particular state.

The second step requires the banking agencies to determine if the bank is reasonably helping to meet the credit needs of the communities served by the bank=s interstate branches.

A bank that fails both steps is in violation of section 109 and is subject to sanctions by the banking agencies.

The host state loan-to-deposit ratios are attached.

Attachment : SECTION 109 HOST STATE LOAN-TO-DEPOSIT RATIOS