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Financial Institution Letter
Host State Loan-To-Deposit Ratios

SUBJECT: Banking Agencies Issue Host State Loan-to-Deposit Ratios

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.

Stephen M. Cross

Attachment: Press Release 53-99
Press Release- Section 109 Host State Loan-To-Deposit Ratios

Distribution: FDIC-Supervised Banks (Commercial and Savings)

NOTE: Paper copies of FDIC financial institutions letters may be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (800-276-6003 or (703) 562-2200).

Last Updated: September 7, 1999