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Financial Institution Letter

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

The Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board and the Office of the Comptroller of the Currency have issued the 2002 host state loan-to-deposit ratios 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. Section 106 of the Gramm-Leach-Bliley Act of 1999 amended Section 109 to include any branch of a bank controlled by an out-of-state bank holding company. 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 is the press release issued jointly by the three agencies on June 24, 2002, along with the host state loan-to-deposit ratios. This Financial Institution Letter (FIL) supersedes FIL-56-2001, dated June 28, 2001.

Please share this information with your compliance officer.

For more information, please contact Louise Kotoshirodo Kramer, Policy Analyst in the FDIC's Division of Compliance and Consumer Affairs, on (202) 942-3599.

Michael J. Zamorski

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

Distribution: FDIC-Supervised Banks (Commercial and Savings)

NOTE: Paper copies of FDIC financial institution 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: June 24, 2002