Decisions on Bank Applications
Real Estate - Leasing (over 2% of Tier 1 capital)
Bank may indirectly through a wholly-owned subsidiary engage in the leasing of real property under certain circumstances involving
over 2% of Tier 1 Capital.
Disclaimer
The following list shows those activities and investments approved by the FDIC under Section 24 of the
Federal Deposit Insurance Act and Part 362 of the FDIC’s Rules and Regulations, 12 C.F.R. Part 362. The list provides
insured state banks and their counsel some initial guidance regarding activities and investments that the FDIC may approve
under Section 24. However, the fact that a particular activity or investment has received FDIC approval in the past does not
affect the obligation of another institution to seek permission from the FDIC to engage in the same or similar activity.
Additionally, the fact that a particular investment or activity has been approved in the past does not restrict the FDIC's review
of future requests to engage in similar activities nor our ability to impose prudential standards on the conduct of that activity.
Finally, it should be borne in mind that since the time any particular application was approved, key statutory or regulatory
changes may have taken place, which might impact how the issues would be treated today.
UNION BANK & TRUST
-
LIVINGSTON, TN |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Delegated Authority |
2/4/2005 |
$1,000 |
2% |
Application to hold real estate and mineral rights acquired for debts previously contracted ("DPC"), and held for over ten years, in a wholly-owned subsidiary, . |
ABINGTON SAVINGS BANK
-
JENKINTOWN, PA |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Delegated Authority |
9/4/1998 |
|
9.84% |
Application to continue to hold a number of real estate investments (apartment buildings) through a wholly-
owned subsidiary. At the time of the application two of the apartment buildings were held directly by the
bank. |
BEAL SAVINGS BANK
-
LAS VEGAS, NV |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Delegated Authority |
7/28/2004 |
$500,000 |
10% |
De novo State bank with a Nevada Thrift Company charter seeks consent to engage in real estate investment activities permitted for thrift companies and banks under Nevada law. The activities include the acquisition, development, sale, rental, lease, and management of real estate; |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Delegated Authority |
7/28/1998 |
$ 375,000 |
14.5% |
Application to continue to indirectly engage in real estate investment activity through a wholly-owned
subsidiary, that owns a 50% interest in a real estate joint venture. The joint venture constructs multi-
family residential and commercial real estate. |
BORDER TRUST CO.
-
SOUTH CHINA, ME |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Board Action |
7/17/1997 |
$ 314,853 |
6.11% |
Application to continue to engage in real estate investment activities. Border Trust Company |
PROVIDENT BANK
-
AMESBURY, MA |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Delegated Authority |
6/18/2003 |
$1,600,000 |
6.5% |
Application to continue to hold a parcel of land, with a building, across the street from the Bank’s main
office. Until recently, the property was owned by the Bank directly, but has now formed a subsidiary to
hold the property. |
BIDDEFORD SAVINGS BANK
-
BIDDEFORD, ME |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Delegated Authority |
6/16/2000 |
1.1M |
5.43% |
The bank filed an application to engage in real estate investment through a wholly owned subsidiary. The
bank will invest up to 5.43% of tier one capital in the subsidiary. |
THE BOSTON BANK OF COMMERCE
-
BOSTON, MA |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Board Action |
4/9/1996 |
$ 100,000 |
2.1% |
Application to continue the purchase outstanding shares of thrift holding company that owns Federal
Savings Bank. The Boston Bank of Commerce |
CAPE COD COOPERATIVE
-
YARMOUTH PORT, MA |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Board Action |
4/23/1996 |
$ 513,100 |
3.7% |
Application to continue to engage in real estate investment activities through a wholly-owned subsidiary. Cape Cod Cooperative Bank |
VALLEY VIEW STATE BANK/ WINONA SAVINGS BANK
-
WINONA, MO |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Board Action |
3/14/1995 |
$271,592 |
5.27 |
Application to indirectly continue residential real estate investment and development activities through a
wholly-owned subsidiary. Winona Savings Bank |
PLANTERS & MERCHANTS
-
GILLET, AR |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Board Action |
2/9/1995 |
$ 115,312 |
6.1% |
Application to continue leasing previously foreclosed-condemned property to the U.S. Postal Service. The
activity is conducted through a wholly-owned subsidiary, which was formed in 1986 for the specific purpose
of developing this one property deeded to the bank through voluntary foreclosure ("DPC"). Planters & Merchants Bank |
FARMERS & MERCHANTS BANK
-
REYNO, AR |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Board Action |
2/3/1995 |
$ 60,000 |
5.3% |
Application to continue to hold various income producing properties acquired due to defaulted loans
("DPC") through a wholly-owned subsidiary. Farmers and Merchants Bank |
LOWELL FIVE CENT SAVINGS BANK
-
LOWELL, MA |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Board Action |
2/20/1996 |
8.4M |
20.30% |
Application to develop and sell condominiums with retention until divestiture of certain unimproved land
and two commercial properties. The Lowell Five Cent Savings Bank |
TROY SAVINGS BANK
-
TROY, NY |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Board Action |
2/11/1997 |
3.2M |
2.67% |
Application to retain investments, through wholly-owned subsidiaries. The investments include a limited
partnership interest in realty property and direct ownership of one condominium unit. Real estate activities
conducted by the bank through the subsidiary are limited to disposing of the assets and no capital infusions
into the subsidiary are contemplated. The Bank must dispose of the properties by 12/31/99. The Troy Savings Bank |
CITIZENS BANK
-
BOONEVILLE, AR |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Board Action |
12/7/1995 |
$ 293,712 |
3.95% |
Application to continue real estate investment, acquisition and development activities through a wholly-
owned subsidiary. The subsidiary holds, improves and markets real estate obtained by the bank through
foreclosure proceedings. Citizens Bank |
CITIBANK DELAWARE
-
NEW CASTLE, DE |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Board Action |
12/7/1995 |
33.4M |
4.76% |
Applicant request consent to conduct real estate leasing activities through its wholly-owned subsidiary. Citibank (Delaware) - Modification |
JACKSON BANK & TRUST CO.
-
GAINESBORO, TN |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Board Action |
12/4/1996 |
$ 364,000 |
3.5% |
Application to indirectly continue to engage as principal in real estate investment activities through a
wholly-owned subsidiary. The properties are leased to third parties, and have not been marketed for sale. Jackson Bank and Trust Company |
FARMERS BANK & TRUST
-
MAGNOLIA, AR |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Board Action |
12/21/1995 |
$ 644,247 |
3.32% |
Application to continue to hold, develop and lease two properties through a wholly-owned subsidiary. Farmers Bank & Trust |
MCGEHEE BANK
-
MCGEHEE, AR |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Board Action |
12/21/1995 |
$ 750,000 |
5.5% |
Application to continue real estate acquisition, development and leasing activities through a wholly owned
subsidiary. McGehee Bank |
BEAL BANK, S.S.B.
-
DALLAS, TX |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Board Action |
12/19/1995 |
3M |
7.6% |
Application to continue to engage in real estate investment, development and leasing activities through a
wholly-owned subsidiary, following a 1994 conversion from a state savings association to a SAIF insured
state chartered savings bank. Beal Bank |
WARE CO-OPERATIVE BANK
-
WARE, MA |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Board Action |
11/8/1995 |
$ 190,200 |
3.44% |
Application to engage in real estate investment activity involving the retention of the bank's former office
building until sale in a reasonable market is feasible. Ware Co-operative Bank |
BANK OF CAVE CITY
-
CAVE CITY, AR |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Board Action |
11/14/1995 |
$ 240,000 |
7.38% |
Application to continue equity investments in real estate following their transfer to a wholly-owned
subsidiary. Bank of Cave City |
BERKSHIRE COUNTY SAVINGS BANK
-
PITTSFIELD, MA |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Board Action |
10/20/1995 |
|
2.17% |
Application to continue real estate investment, development and leasing activities through two wholly-
owned subsidiaries. Berkshire County Savings Bank |
WEYMOUTH SAVINGS BANK
-
WEYMOUTH, MA |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Delegated Authority |
10/20/1995 |
$ 714,425 |
5.5% |
Application to retain investment, through a wholly-owned subsidiary, in two parcels of land. Weymouth Savings Bank |
FREMONT BANK
-
FREMONT, CA |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Board Action |
1/23/1996 |
7.3M |
20% |
Denial of application to engage in direct real estate investment activities as principle with order to divest the
properties immediately. Approval to conduct real estate activities through a subsidiary with standard Part
362 separateness and capital conditions. Fremont Bank |
BANK OF MULBERRY
-
MULBERRY, AR |
Application or Notice |
Board or Delegated Authority |
Date of Approval |
Amount of Investment |
Percent of Tier I Capital |
Application |
Board Action |
|
$ 496,000 |
25.87% |
Denial of application to conduct real estate investment activities directly as principle, through a majority
owned general partnership interest. Bank of Mulberry |