Federal Deposit
Insurance Corporation

The Federal Deposit Insurance Corporation, the Federal Reserve Board and the Office of the Comptroller of the Currency have issued the host state loan-to-deposit ratios that the agencies will use to determine compliance with Section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. Section 109 prohibits any bank from establishing or acquiring a branch outside of its home state primarily for the purpose of deposit production, and one test of compliance with the law involves a comparison of the bank's statewide loan-to-deposit ratio to the host state's loan-to-deposit ratio.

Attached are the press release issued jointly by the three agencies on September 3, 1999, and the host state loan-to-deposit ratios. This letter supercedes the previous one on the subject issued last year (FIL-88-98, dated August 17, 1998).

For more information, please contact Louise Kotoshirodo, Review Examiner in the FDIC's Division of Compliance and Consumer Affairs, at (202) 942-3599.