united savings and loan bank

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United savings and loan bank -

Savings and loan association

Type of financial institution

Not to be confused with Savings bank.

A savings and loan association (S&L), or thrift institution, is a financial institution that specializes in accepting savings deposits and making mortgage and other loans. The terms "S&L" or "thrift" are mainly used in the United States; similar institutions in the United Kingdom, Ireland and some Commonwealth countries include building societies and trustee savings banks. They are often mutually held (often called mutual savings banks), meaning that the depositors and borrowers are members with voting rights, and have the ability to direct the financial and managerial goals of the organization like the members of a credit union or the policyholders of a mutual insurance company. While it is possible for an S&L to be a joint-stock company, and even publicly traded, in such instances it is no longer truly a mutual association, and depositors and borrowers no longer have membership rights and managerial control. By law, thrifts can have no more than 20 percent of their lending in commercial loans—their focus on mortgage and consumer loans makes them particularly vulnerable to housing downturns such as the deep one the U.S. experienced in 2007.

Early history[edit]

At the beginning of the 19th century, banking was still something only done by those who had assets or wealth that needed safekeeping. The first savings bank in the United States, the Philadelphia Saving Fund Society, was established on December 20, 1816, and by the 1830s, such institutions had become widespread.

In the United Kingdom, the first savings bank was founded in 1810 by the ReverendHenry Duncan, Doctor of Divinity, the minister of RuthwellChurch in Dumfriesshire, Scotland. It is home to the Savings Bank Museum, in which there are records relating to the history of the savings bank movement in the United Kingdom, as well as family memorabilia relating to Henry Duncan and other prominent people of the surrounding area. However, the main type of institution similar to U.S. savings and loan associations in the United Kingdom is not the savings bank, but the building society and had existed since the 1770s.

U.S. savings and loan in the 20th century[edit]

The savings and loan association became a strong force in the early 20th century through assisting people with home ownership, through mortgage lending, and further assisting their members with basic saving and investing outlets, typically through passbook savings accounts and term certificates of deposit.

The savings and loan associations of this era were famously portrayed in the 1946 film It's a Wonderful Life.

Mortgage lending[edit]

The earliest mortgages were not offered by banks, but by insurance companies, and they differed greatly from the mortgage or home loan that is familiar today. Most early mortgages were short with some kind of balloon payment at the end of the term, or they were interest-only loans which did not pay anything toward the principal of the loan with each payment. As such, many people were either perpetually in debt in a continuous cycle of refinancing their home purchase, or they lost their home through foreclosure when they were unable to make the balloon payment at the end of the term of that loan.[citation needed]

The US Congress passed the Federal Home Loan Bank Act in 1932, during the Great Depression. It established the Federal Home Loan Bank and associated Federal Home Loan Bank Board to assist other banks in providing funding to offer long term, amortized loans for home purchases. The idea was to get banks involved in lending, not insurance companies, and to provide realistic loans which people could repay and gain full ownership of their homes.

Savings and loan associations sprang up all across the United States because there was low-cost funding available through the Federal Home Loan Bank Act.

Further advantages[edit]

Savings and loans were given a certain amount of preferential treatment by the Federal Reserve inasmuch as they were given the ability to pay higher interest rates on savings deposits compared to a regular commercial bank. This was known as Regulation Q (The Interest Rate Adjustment Act of 1966) and gave the S&Ls 50 basis points above what banks could offer. The idea was that with marginally higher savings rates, savings and loans would attract more deposits that would allow them to continue to write more mortgage loans, which would keep the mortgage market liquid, and funds would always be available to potential borrowers.[citation needed]

However, savings and loans were not allowed to offer checking accounts until the late 1970s. This reduced the attractiveness of savings and loans to consumers, since it required consumers to hold accounts across multiple institutions in order to have access to both checking privileges and competitive savings rates.

In the 1980s the situation changed. The United States Congress granted all thrifts in 1980, including savings and loan associations, the power to make consumer and commercial loans and to issue transaction accounts. The Depository Institutions Deregulation and Monetary Control Act (DIDMCA) of 1980[1] was designed to help the banking industry to combat disintermediation of funds to higher-yielding non-deposit products such as money market mutual funds. It also allowed thrifts to make consumer loans up to 20 percent of their assets, issue credit cards, and provide negotiable order of withdrawal (NOW) accounts to consumers and nonprofit organizations. Over the next several years, this was followed by provisions that allowed banks and thrifts to offer a wide variety of new market-rate deposit products. For S&Ls, this deregulation of one side of the balance sheet essentially led to more inherent interest rate risk inasmuch as they were funding long-term, fixed-rate mortgage loans with volatile shorter-term deposits.

In 1982, the Garn-St. Germain Depository Institutions Act[2] was passed and increased the proportion of assets that thrifts could hold in consumer and commercial real estate loans and allowed thrifts to invest 5 percent of their assets in commercial, corporate, business, or agricultural loans until January 1, 1984, when this percentage increased to 10 percent.[3]

Decline[edit]

During the Savings and Loan Crisis, from 1986 to 1995, the number of federally insured savings and loans in the United States declined from 3,234 to 1,645.[4] Analysts mostly attribute this to unsound real estate lending.[5] The market share of S&Ls for single family mortgage loans went from 53% in 1975 to 30% in 1990.[6]

The following is a detailed summary of the major causes for losses that hurt the S&L business in the 1980s according to the United States League of Savings Associations:[7]

  1. Lack of net worth for many institutions as they entered the 1980s, and a wholly inadequate net worth regulation.
  2. Decline in the effectiveness of Regulation Q in preserving the spread between the cost of money and the rate of return on assets, basically stemming from inflation and the accompanying increase in market interest rates.
  3. Inability to vary the return on assets with increases in the rate of interest required to be paid for deposits.
  4. Increased competition on the deposit gathering and mortgage origination sides of the business, with a sudden burst of new technology making possible a whole new way of conducting financial institutions generally and the mortgage business specifically.
  5. A rapid increase in investment powers of associations with passage of the Depository Institutions Deregulation and Monetary Control Act (the Garn-St Germain Act), and, more important, through state legislative enactments in a number of important and rapidly growing states. These introduced new risks and speculative opportunities which were difficult to administer. In many instances management lacked the ability or experience to evaluate them, or to administer large volumes of nonresidential construction loans.
  6. Elimination of regulations initially designed to prevent lending excesses and minimize failures. Regulatory relaxation permitted lending, directly and through participations, in distant loan markets on the promise of high returns. Lenders, however, were not familiar with these distant markets. It also permitted associations to participate extensively in speculative construction activities with builders and developers who had little or no financial stake in the projects.
  7. Fraud and insider transaction abuses, especially in the case of state-chartered and regulated thrifts, where regulatory supervision at the state level was lax,[citation needed] thinly-spread, and/or insufficient (e.g.: Texas, Arizona).
  8. A new type and generation of opportunistic savings and loan executives and owners — some of whom operated in a fraudulent manner — whose takeover of many institutions was facilitated by a change in FSLIC rules reducing the minimum number of stockholders of an insured association from 400 to one.
  9. Dereliction of duty on the part of the board of directors of some savings associations. This permitted management to make uncontrolled use of some new operating authority, while directors failed to control expenses and prohibit obvious conflict of interest situations.
  10. A virtual end of inflation in the American economy, together with overbuilding in multifamily, condominium-type residences and in commercial real estate in many cities. In addition, real estate values collapsed in the energy states — Texas, Louisiana, Oklahoma particularly due to falling oil prices — and weakness occurred in the mining and agricultural sectors of the economy.
  11. Pressures felt by the management of many associations to restore net worth ratios. Anxious to improve earnings, they departed from their traditional lending practices into credits and markets involving higher risks, but with which they had little experience.
  12. The lack of appropriate, accurate, and effective evaluations of the savings and loan business by public accounting firms, security analysts, and the financial community.
  13. Organizational structure and supervisory laws, adequate for policing and controlling the business in the protected environment of the 1960s and 1970s, resulted in fatal delays and indecision in the examination/supervision process in the 1980s.
  14. Federal and state examination and supervisory staffs insufficient in number, experience, or ability to deal with the new world of savings and loan operations.
  15. The inability or unwillingness of the Federal Home Loan Bank Board and its legal and supervisory staff to deal with problem institutions in a timely manner. Many institutions, which ultimately closed with big losses, were known problem cases for a year or more. Often, it appeared, political considerations delayed necessary supervisory action.

While not specifically identified above, a related specific factor was that S&Ls and their lending management were often inexperienced with the complexities and risks associated with commercial and more complex loans as distinguished from their roots with "simple" home mortgage loans.

Consequences of U.S. government acts and reforms[edit]

As a result, the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) dramatically changed the savings and loan industry and its federal regulation. Here are the highlights of this legislation, signed into law on August 9, 1989:[8]

  1. The Federal Home Loan Bank Board (FHLBB) and the Federal Savings and Loan Insurance Corporation (FSLIC) were abolished.
  2. The Office of Thrift Supervision (OTS), a bureau of the United States Treasury Department, was created to charter, regulate, examine, and supervise savings institutions.
  3. The Federal Housing Finance Board (FHFB) was created as an independent agency to oversee the 12 Federal Home Loan Banks (also called district banks), formerly overseen by the FHLBB.
  4. The Savings Association Insurance Fund (SAIF) replaced the FSLIC as an ongoing insurance fund for thrift institutions. (Like the Federal Deposit Insurance Corporation (FDIC), FSLIC was a permanent corporation that insured savings and loan accounts up to $100,000.) SAIF was administered by the FDIC alongside its sister fund for banks, Bank Insurance Fund (BIF) until 2006 when the Federal Deposit Insurance Reform Act of 2005 (effective February 2006) provided, among other provisions, that the two funds merge to constitute the Depositor Insurance Fund (DIF), which would continue to be administered by the FDIC.
  5. The Resolution Trust Corporation (RTC) was established to dispose of failed thrift institutions taken over by regulators after January 1, 1989.
  6. FIRREA gave both Freddie Mac and Fannie Mae additional responsibility to support mortgages for low- and moderate-income families.

The Tax Reform Act of 1986 had also eliminated the ability for investors to reduce regular wage income by so-called "passive" losses incurred from real estate investments, e.g., depreciation and interest deductions. This caused real estate value to decline as investors pulled out of this sector.

Characteristics[edit]

The most important purpose of savings and loan associations is to make mortgage loans on residential property. These organizations, which also are known as savings associations, building and loan associations, cooperative banks (in New England), and homestead associations (in Louisiana), are the primary source of financial assistance to a large segment of American homeowners. As home-financing institutions, they give primary attention to single-family residences and are equipped to make loans in this area.

Some of the most important characteristics of a savings and loan association are:

  1. It is generally a locally owned and privately managed home financing institution.
  2. It receives individuals' savings and uses these funds to make long-term amortized loans to home purchasers.
  3. It makes loans for the construction, purchase, repair, or refinancing of houses.
  4. It is state or federally chartered.[3]

Differences from savings banks[edit]

Accounts at savings banks were insured by the FDIC. When the Western Savings Bank of Philadelphia failed in 1982, it was the FDIC that arranged its absorption into the Philadelphia Savings Fund Society (PSFS).[citation needed] Savings banks were limited by law to only offer savings accounts and to make their income from mortgages and student loans. Savings banks could pay one-third of 1% higher interest on savings than could a commercial bank. PSFS circumvented this by offering "payment order" accounts which functioned as checking accounts and were processed through the Fidelity Bank of Pennsylvania.[citation needed] The rules were loosened so that savings banks could offer automobile loans, credit cards, and actual checking accounts.[citation needed] In time PSFS became a full commercial bank.

Accounts at savings and loans were insured by the FSLIC. Some savings and loans did become savings banks, such as First Federal Savings Bank of Pontiac in Michigan. What gave away their heritage was their accounts continued to be insured by the FSLIC.

Savings and loans accepted deposits and used those deposits, along with other capital that was in their possession, to make loans. What was revolutionary was that the management of the savings and loan was determined by those that held deposits and in some instances had loans. The amount of influence in the management of the organization was determined based on the amount on deposit with the institution.

The overriding goal of the savings and loan association was to encourage savings and investment by common people and to give them access to a financial intermediary that otherwise had not been open to them in the past. The savings and loan was also there to provide loans for the purchase of large ticket items, usually homes, for worthy and responsible borrowers. The early savings and loans were in the business of "neighbors helping neighbors".

See also[edit]

References[edit]

  1. ^Pub.L. 96–221, H.R. 4986, 94 Stat. 132, enacted March 31, 1980
  2. ^Pub.L. 97–320, H.R. 6267, 96 Stat. 1469, enacted October 15, 1982
  3. ^ abMishler, Lon; Cole, Robert E. (1995). Consumer and business credit management. Homewood, Ill: Irwin. pp. 123–124. ISBN .
  4. ^Curry, Timothy; Shibut, Lynn (December 2000). "The Cost of the Savings and Loan Crisis: Truth and Consequences"(PDF). FDIC Banking Review. Federal Deposit Insurance Corporation (FDIC). 13 (2): 26–35.
  5. ^Seidman, L. William; Litan, Robert E.; White, Lawrence J.; Silverberg, Stanley C. (January 16, 1997). Symposium Proceedings: Panel 3 – Lessons of the 1980s: What Does the Evidence Show?(PDF). History of the Eighties - Lessons for the Future. II. Federal Deposit Insurance Corporation (FDIC), Division of Research and Statistics. pp. 55–85.
  6. ^Diamond Jr., Douglas B.; Lea, Michael J.; Gabriel, Stuart A. (1992). "Housing Finance in Developed Countries: An International Comparison of Efficiency, Chapter 6. United States"(PDF). Journal of Housing Research. Fannie Mae. 3 (1): 145–170. Archived from the original(PDF) on 2008-04-13.
  7. ^Strunk, Norman; Case, Fred (1988). Where deregulation went wrong: a look at the causes behind savings and loan failures in the 1980s. Chicago: United States League of Savings Institutions. pp. 15–16. ISBN . OCLC 18220698.
  8. ^"FIRREA – It's Not a New Sports Car". Credit World. International Credit Association (ICA): 20. September–October 1989. ISSN 0011-1074.

External links[edit]

Источник: https://en.wikipedia.org/wiki/Savings_and_loan_association

United Savings and Loan Bank

Home > United Savings and Loan Bank

Status:Inactive as of 2003-08-31
 Merger - Without Assistance
Successor Bank:Washington Federal Bank
Headquarters:United Savings and Loan Bank
601 South Jackson Street
Seattle, WA98104
Established:1959-01-01
FDIC Insurance:1960-06-21
FDIC Cert:#31131
Charter Class:Savings associations, state or federal charter, supervised by the Office of Thrift Supervision (OTS)
Total Assets:$320,372,000
Total Deposits:$272,203,000

History

1990-09-30Changed name to United Savings and Loan Bank
2003-08-31Merged into and subsequently operated as part of Washington Federal Savings and Loan Association (28088) in SEATTLE, WA
2007-02-13Acquired First Federal Bank (29702) in ROSWELL, NM
2008-02-01Acquired First Mutual Bank (19835) in BELLEVUE, WA
2010-01-08Acquired Horizon Bank (22977) in BELLINGHAM, WA as part of a government assisted transaction.
2011-07-07Changed name to Washington Federal (28088)
2011-07-21Changed primary regulatory agency from OFFICE OF THRIFT SUPERVISION to COMPTROLLER OF THE CURRENCY
2011-12-16Acquired Western National Bank (57917) in PHOENIX, AZ as part of a government assisted transaction.
2012-10-31Acquired South Valley Bank & Trust (22401) in KLAMATH FALLS, OR
2013-07-17Changed institution class to INSURED COMMERCIAL BANK, NATIONAL, MEMBER FRS
2013-07-17Changed organization type to COMMERCIAL BANK
2013-07-17Changed name to Washington Federal, National Association (28088)
2019-04-29Changed name to Washington Federal Bank, National Association (28088)

Financial Information (2003-06-30 and Older)

Assets and Liabilities

Cash and Balances Due

Securities

U.S. Government Obligations

Total Debt Securities

Net Loans and Leases

1- 4 Family Residential Net Loans and Leases

Loans to Depository Institutions

Total Loans and Leases in Foreign Offices

Maturity & Repricing for Loans and Leases

Small Business Loans

Loans Restructured in Troubled Debt Restructurings

Other Real Estate Owned

Goodwill and Other Intangibles

Total Deposits

Transaction Accounts

Nontransaction Accounts

Time Deposits of Less Than $100,000

Time Deposits of $100,000 or More

Deposits Based on the $100,000 Reporting Threshold

Deposits Based on the $250,000 Reporting Threshold

Deposits Held in Foreign Offices

Changes in Bank Equity Capital

Total Unused Commitments

Letters of Credit

Total Assets and Liabilities in Foreign Offices

Derivatives

Past Due and Nonaccrual Assets

Past Due 30- 89 Days 1- 4 Family Residential

Past Due 90+ Days 1- 4 Family Residential

Nonaccrual 1- 4 Family Residential

Past Due and Nonaccrual Loans Wholly or Partially US Gvmt Guaranteed

Fiduciary and Related Services

Number of Fiduciary and Related Asset Accounts

Total Fiduciary and Related Assets

Total Managed Assets held in Fiduciary Accounts

Corporate Trust and Agency Accounts

Collective Investment & Common Trust Funds

Gross Fiduciary and Related Services Income

Fiduciary settlements, surcharges, and other losses

Carrying Amount of Assets Covered by FDIC Loss- Share Agreements

Bank Assets Sold and Securitized

Maximum Amount of Credit Exposure Retained

Unused Commitments

Amount of Ownership (Seller) Interests

Memoranda

Income and Expense

Total Interest Income

Total Interest Expense

Trading Account Gains & Fees

Additional Noninterest Income

Additional Noninterest Expense

Loan Charge- Offs and Recoveries

Total Charge- offs 1- 4 Family Residential

Total Recoveries 1- 4 Family Residential

Net Charge- offs 1- 4 Family Residential

Cash Dividends

Interest income and expense in foreign offices

Performance and Condition Ratios

Net charge- offs to loans

Noncurrent loans to loans

Источник: https://www.usbanklocations.com/united-savings-and-loan-bank-31131.shtml

Savings and Loans, S&L History and Operations

Savings and Loans (S&Ls) are specialized banks created to promote affordable homeownership. They get their name by funding mortgages with savings that are insured by the Federal Deposit Insurance Corporation. Historically, they have offered higher rates on savings accounts to attract more deposits, which increases their ability to offer mortgages.

Early Supplier of Home Mortgages

Before the Federal Home Loan Bank Act of 1932, most home mortgages were short-term and provided by insurance companies, not banks. S&Ls then gained the ability to offer 30-year mortgages that offered lower monthly payments than previously available. It helped make homeownership more affordable.

S&Ls have changed significantly in recent decades. Those that still exist today operate like most commercial banks by offering checking accounts and other common features. The key difference is that they must have nearly two-thirds of their assets invested in residential mortgages.

Creation of the Savings and Loan Banks

Before the Great Depression, mortgages were 5 to 10-year loans that had to be refinanced or paid off with a large balloon payment. By 1935, 10% of all U.S. homes were in foreclosure, thanks to these harsh terms and falling housing prices. To stop the carnage, the New Deal did these three things: 

  1. The Home Owner’s Loan Corporation bought 1 million defaulted mortgages from banks. The HOLC changed them to the long-term, fixed-rate mortgage we know today and reinstated them. 
  2. The Federal Housing Administration provided mortgage insurance.
  3. The Federal National Mortgage Association created a secondary market for mortgages.

The FNMA also created Savings and Loans to issue these mortgages. These changes were in response to an economic catastrophe. But they significantly boosted homeownership in the United States.

The Growth of the Home Loan Market

In 1944, the Veterans Administration created a mortgage insurance program that lowered payments. That encouraged returning war veterans to buy homes in the suburbs. The program spurred economic activity in the home construction industry.

Throughout the 1960s and 1970s, almost all mortgages were issued through S&Ls. Thanks to all these federal programs, homeownership rose from 43.6% in 1940 to 64% by 1980.

Trouble for the S&Ls

In 1973, President Richard Nixon created rampant inflation by removing the U.S. dollar from the gold standard. S&Ls couldn't raise interest rates to keep up with rising inflation, so they lost their deposits to money market accounts. That eroded the capital S&Ls needed to create low-cost mortgages. The industry asked Congress to remove certain restrictions on its operations.

In 1982, President Ronald Reagan signed the Garn-St. Germain Depository Institutions Act. It allowed banks to raise interest rates on savings deposits, make commercial and consumer loans, and reduce loan-to-value ratios. S&Ls invested in speculative real estate and commercial loans. Between 1982 and 1985, these assets increased by 56%.

Collapse and Bailout

The collapse of these investments led to the failure of half the nation's banks. As banks went under, state and federal insurance funds began to run out of the money needed to refund depositors. 

In 1989, the George H.W. Bush administration bailed out the industry with the Financial Institutions Reform, Recovery, and Enforcement Act. FIRREA provided an initial $50 billion to close failed banks, set up the Resolution Trust Corporation to resell bank assets, and used the proceeds to reimburse depositors. FIRREA prohibited S&Ls from making more risky loans. 

Unfortunately, the savings and loan crisis destroyed confidence in institutions that once had been thought to be secure sources of home mortgages because state-run funds backed them.

Repeating Past Mistakes

Like other banks, S&Ls had been prohibited by the Glass-Steagall Act from investing depositors' funds in the stock market and high-risk ventures to gain higher rates of return. The Clinton administration repealed Glass-Steagall to allow U.S. banks to compete with more loosely regulated international banks. It allowed banks to use FDIC-insured deposits to invest in risky derivatives.

The most popular of these risky investment instruments were the mortgage-backed security (MBS). Banks sold mortgages to Fannie Mae or the Federal Home Loan Mortgage Corporation. They then bundled the mortgages and sold them as MBS to other investors on the secondary market.

Many hedge funds and large banks would buy the loans and, in turn, repackaged and resell them with subprime mortgages included in the package. These institutional and large buyers were insured against default by holding credit default swaps (CDS). The demand for the packaged and high-yielding MBS was so great that banks started selling mortgages to anyone and everyone. The housing bubble expanded.

2006 Financial Crisis

All went well until housing prices started falling in 2006. Just like during the Great Depression, homeowners began defaulting on their mortgages, and the entire derivatives market selling the packaged and repackaged securities collapsed. The 2008 financial crisis timeline recounts the critical events that happened in the worst U.S. financial crisis since the Great Depression.

Washington Mutual was the largest savings and loan bank in 2008. It ran out of cash during the financial crisis when it couldn't resell its mortgages on the collapsed secondary market. When Lehman Brothers went bankrupt, WaMu depositors panicked. They withdrew $16.7 billion over the next ten days. The FDIC took over WaMu and sold it to JPMorgan Chase for $1.9 billion.

Post-Crisis S&Ls

The difference between commercial banks and S&Ls has narrowed significantly. In 2019, there were only 659 Savings and Loans, according to the FDIC. The agency supervised almost half of them. Today, S&Ls are like any other bank, thanks to the FIRREA bailout of the 1980s.

Most S&Ls that remain can offer banking services similar to other commercial banks, including checking and savings accounts. The key difference is that 65% of an S&L's assets must be invested in residential mortgages.

Another key difference is the local focus of most S&Ls. Compared to banks that often are large, multinational corporations, S&Ls more often are locally owned and controlled, more similar in fashion to credit unions. For this reason, they often can be a good place to get the best rates on mortgages.

Источник: https://www.thebalance.com/what-are-savings-and-loans-history-and-today-3305959

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Источник: https://www.unionsavings.com/

City Loan and Savings Company v. United States, 177 F. Supp. 843 (N.D. Ohio 1959)

177 F. Supp. 843 (1959)

CITY LOAN AND SAVINGS COMPANY, Plaintiff,
v.
UNITED STATES of America, Defendant.

Civ. No. 8103.

United States District Court N. D. Ohio, Western Division.

August 28, 1959.

*844*845 Ross W. Shumaker and Robert G. Clayton of Shumaker, Loop & Kendrick, Toledo, Ohio, for plaintiff.

Fred J. Neuland, Washington, D. C., and Richard M. Colasurd, Asst. U. S. Atty., Toledo, Ohio, for defendant.

KLOEB, Chief Judge.

The Court having heard the evidence, reviewed the stipulations on file, studied the briefs of the parties and heard oral argument, upon the evidence makes the following findings of fact and conclusions of law:

 
Findings of Fact

1. Plaintiff, herein called "taxpayer", is a corporation organized on July 29, 1912, under the laws of the State of Ohio governing building and loan associations (Rev.Code, Ch. 1151), with its principal office in the Savings Building, Lima, Ohio. It is, and has been since its incorporation, engaged continuously in the personal loan and finance business in the State of Ohio and licensed to carry on such business under the Small Loan Act of the State of Ohio (Rev.Code, Ch. 1321). In the conduct of its business it operates, and during the period herein involved, operated many offices and places of business throughout the State of Ohio. (Stip. Facts, par. 2)

2. In the year 1951, and since the date of its incorporation, taxpayer has been subject to supervision and inspection of its financial status and operations by the Superintendent of Building and Loan Associations of the State of Ohio, and has been required to render, and has rendered, annual and semi-annual reports to the Superintendent of Building and Loan Associations concerning its financial status and operations (Rev. Code, Ch. 1155). In 1951, since said time and for a long time prior thereto, the loans made by the taxpayer have been under the supervision of the Division of Securities, Department of Commerce of the State of Ohio (Rev.Code, Ch. 1707). (Stip. Facts, par. 3)

3. In order to provide capital for carrying on its small loan and personal finance business, the taxpayer in the year 1951 and at all times since its incorporation, accepted funds from persons, firms and corporations, including financial institutions, for which it issued certificates of deposit, bearing interest and payable in accordance with the withdrawal and other provisions of its Constitution and By-Laws (Sec. XV and Sec. XIX of the By-Laws). Said funds were not subject to check, draft or payment on demand by the certificate holder. (Stip. Facts, pars. 5 and 6)

4. Said funds accepted by taxpayer from persons, firms and corporations, including *846 financial institutions, for which the taxpayer issued certificates of deposit, were accepted in good faith by the taxpayer for the purpose of its business and were used in its business. (Supp. Stip., par. 2)

5. The business of the taxpayer since the date of its incorporation has consisted in the making of chattel loans and the financing of commercial paper. In the years 1951 and 1952 the largest source of income was the making of chattel loans, approximately three-fourths of which were for the purpose of aiding borrowers in the payment of bills, consolidating debts, overcoming financial difficulties, meeting medical and educational expenses and other emergencies and personal uses, no chattel loan to any one person exceeding $1,000 in amount. At the close of the year 1951 there were outstanding 240,204 loans of all types, averaging approximately $315 each. (Stip. Facts, par. 7)

6. Taxpayer as an Ohio building and loan company was organized, supervised and operated under different statutory provisions from those under which commercial banks in Ohio were organized, supervised and operated (Banks, Rev. Code, Ch. 1101; Building and Loan Companies, Ch. 1151). (Stip. Facts, par. 9)

7. Taxpayer has never used, nor has it been permitted under the statutes of Ohio, to use, in its corporate name, any of the following words: "bank", "banking", "trust", "federal", "national", "U. S.", "United States" or "international" (Rev.Code § 1151.07), the use of such terms being restricted to banks; and all other persons, firms or corporations have been and are prohibited from soliciting, accepting or receiving deposits, or from using such words in such fashion (Rev. Code § 1101.02). (Stip. Facts, par. 10)

8. In its taxable year 1951, and prior and subsequently thereto, taxpayer could not perform the following acts and transactions, all of which could be performed by commercial banks, to-wit: (a) accept commercial accounts or funds subject to check; (b) issue certified checks; (c) accept deposits payable on demand; (d) accept bank deposits; (e) issue letters of credit; (f) accept items for collection; (g) qualify for and obtain trust powers; (h) pledge assets to secure public funds; (i) receive money for transmission to foreign countries; (j) make loans without security; (k) acquire or hold stock in any corporation; and (l) become a member of the Federal Reserve System. Building and loan companies are and were in the relevant years exempt from the usury laws with respect to dues, fines, interest and premiums on loans (Rev.Code § 1151.21) which is not true of commercial banks. (Stip. Facts, par. 11)

9. Taxpayer has never, at any time, used any sign or name at any place of business which would indicate that such place of business is the place or office of a bank or trust company, or that deposits are received as a bank or trust company, or that payments are made on a check, or that any other form of banking or trust company business is transacted on its premises. (Stip. Facts, par. 12)

10. Taxpayer has never made use of or circulated any letterheads, billheads, blank notes, blank receipts, certificates or circulars, or any printed or written or partly printed and partly written paper whatsoever having thereon any word or words indicating that its business is the business of a bank or trust company. (Stip. Facts, par. 13)

11. In its taxable years 1951 and 1952, taxpayer paid interest on money deposited with it as follows: on straight certificates, 3% per annum; on certificates if money was left for one year or more, 3½%; on passbook accounts, 2½%; and on employees' special savings plans, depending on the amount of the deposit, 3% up to 8%. In said taxable years 1951 and 1952 commercial banks in Lima, Wapakoneta and Fostoria, Ohio, in which cities taxpayer raised all its capital in said years, paid interest on both savings accounts and certificates of deposit at the rate of 1% per annum. (Stip. Facts, par. 14)

*847 12. Taxpayer has never been a member of the Federal Reserve System, a member of the Federal Deposit Insurance Corporation or designated as a depositary for State or Federal funds. (Stip. Facts, par. 15)

13. Taxpayer has never engaged in any of the primary banking functions of discount, deposit or circulation. (Stip. Facts, par. 16)

14. The tax sought to be recovered in this suit was paid by taxpayer to the District Director of Internal Revenue, 10th District, in Toledo, Ohio, in the Northern District of Ohio, Western Division of this Court. (Stip. Facts, par. 17)

15. On or about March 11, 1952, taxpayer filed with the Collector or Director of Internal Revenue at Toledo, Ohio, its federal income and excess profits tax returns for the calendar year 1951, reflecting the income and excess profits tax liability of taxpayer for said year in the total amount of $2,944,367.77 allocated as follows:

 
Income tax $2,771,353.98 Excess profits tax 173,013.79 _____________ Total $2,944,367.77

Said income and excess profits taxes were paid by the taxpayer to the District Director of Internal Revenue, Toledo, Ohio, on the dates and in the amounts as follows:

 
March 11, 1952 $1,030,528.72 June 15, 1952 1,013,132.78 September 15, 1952 437,927.47 December 4, 1952 462,778.80 _____________ Total $2,944,367.77 (Stip. Facts, par. 18)

16. On or about May 26, 1952, taxpayer filed with the Director of Internal Revenue amended income and excess profits tax returns for the year 1951, in which an error in the original returns was corrected, and on said amended returns the income and excess profits tax liability for 1951 of the taxpayer was reflected as being in the total amount of $2,919,516.44 in lieu of $2,944,367.77 as shown by the original returns, a reduction in said tax for 1951 of $24,851.33. No claim for the refund of said $24,851.33 was filed with said amended returns, and the amount of income and excess profits taxes paid by taxpayer in the year 1952 for said year 1951 is the sum of $2,944,367.77 as shown in paragraph 15 above. (Stip. Facts, par. 19)

17. In preparing its federal income and excess profits tax returns and amended returns for the years 1951 and 1952 (unused excess profits credit in 1952 was carried back to 1951), the taxpayer computed its excess profits tax liability under the provisions of Section 439 of the Excess Profits Tax Act of 1950 (26 U.S.C.A. § 439(b) (1) 1952 ed.), and in accordance therewith considered and treated its certificates of deposit as borrowed capital within the meaning of said Section. (Stip. Facts, par. 20)

18. In filing its federal income and excess profits tax returns and amended returns for its taxable years 1951 and 1952, taxpayer treated its certificates of deposit as borrowed capital for excess profits tax purposes in reliance upon (1) the policy and practice followed by the Commissioner in auditing taxpayer's federal income and excess profits tax returns in the World War II excess profits tax years; (2) the decision of the Tax Court in Economy Savings & Loan Co. v. Commissioner, 1945, 5 T.C. 543, and the failure of the Commissioner to prosecute an appeal therefrom; and (3) the acquiescence of the Commissioner in said decision of the Tax Court, and the accompanying announcement that such acquiescence was for the information of taxpayers and the general public, and that "Decisions so acquiesced in should be relied upon by officers and employees of the Bureau of Internal Revenue as precedents in the disposition of other cases" (Cum.Bull.1945, p. iv and p. 3). (Stip. Facts, par. 21)

19. On May 5, 1953, taxpayer filed with the District Director of Internal Revenue at Toledo, Ohio, its claim for refund requesting the refund of income *848 and excess profits taxes paid by it for the year 1951 in the amount of $206,220.78 for the reasons and upon the grounds (the borrowed capital issue was not involved) fully set forth in said claim for refund to which reference is hereby made. The agent of the Internal Revenue Service who reviewed the said claim for refund recommended the allowance thereof in the amount of $206,191.51, which recommendation and finding was approved by the Acting District Director of Internal Revenue at Toledo, Ohio. (Stip. Facts, par. 22)

20. Subsequently the Appellate Division, Internal Revenue Service, Cleveland, Ohio, to which the matter of said refund of 1951 income and excess profits taxes had been referred for review, preparatory to submission to the Joint Committee on Internal Revenue Taxation in accordance with Section 6405(a) of the Internal Revenue Code of 1954, 26 U.S. C.A. § 6405(a), determined that taxpayer was not entitled to the refund as recommended by the agent and approved by the Acting District Director of Internal Revenue, for the reason that upon a different issuethe borrowed capital issue the taxpayer was liable for excess profits taxes for said year 1951 in the amount of $649,612.87, and that after crediting thereon the said sum of $206,191.51, found due to the taxpayer on its claim for refund for said year, as described in paragraph 19, there was left a deficiency in excess profits taxes due from the taxpayer for said year of $443,421.36, plus interest. Said Appellate Division determined that the income and excess profits tax liability of the taxpayer for the year 1951 was in the total amount of $3,387,789.13 allocated as follows:

 
Excess profits tax $ 649,612.87 Normal tax and surtax 2,738,176.26 _____________ Total $3,387,789.13 (Stip. Facts, par. 23)

21. On October 28, 1957, said Appellate Division formally notified taxpayer with respect to said deficiency of $443,421.36, and on November 15, 1957, the District Director of Internal Revenue, Toledo, Ohio, demanded payment of said deficiency together with interest thereon in the sum of $149,931.08. Thereafter, on November 21, 1957, taxpayer under protest paid to the said District Director the deficiency of $443,421.36, together with interest thereon of $149,931.08, a total of $593,352.44. (Stip. Facts, par. 24)

22. The federal income and excess profits tax returns filed by taxpayer for its taxable years 1951 and 1952, in which its tax liability was computed after according borrowed capital treatment to its certificates of deposit, were approved by the examining agent and by the District Director of Internal Revenue without any exception, the Appellate Division at Cleveland, Ohio, first having taken exception to said returns by disallowing borrowed capital treatment to said funds. (Stip. Facts, par. 25)

23. The determination by the Appellate Division of the Internal Revenue Service above referred to was made upon the premise that the taxpayer in the computation of its 1951 and 1952 excess profits credits based on income (the year 1952 is involved to the extent of the carryback from that year to 1951 of unused excess profits credit), was not entitled to consider and treat as "borrowed capital", within the meaning of Section 439 of the Excess Profits Tax Act of 1950, said certificates of deposit issued by the taxpayer in accordance with its Constitution and By-Laws. (Stip. Facts, par. 26)

24. Taxpayer learned for the first time in the month of January 1957 of the determination of the Appellate Division of the Internal Revenue Service at Cleveland, Ohio, to deny borrowed capital treatment, for excess profits tax purposes, to taxpayer's certificates of deposit in the years 1951 and 1952. This determination of the Appellate Division affected not only taxpayer's taxable year 1951, but also its taxable years 1952 and 1953, involving an additional excess profits tax liability for said three years, including interest, of approximately $2,750,000. *849 Said deficiencies in tax for said years, including the large sums of interest payable thereon, had not been anticipated by taxpayer and no reserves therefor had been provided or set up. (Stip. Facts, par. 27, and Supp. Stip., par. 4)

25. On February 25, 1958 (within the time stipulated between the Commissioner and taxpayer), taxpayer filed with the District Director of Internal Revenue for the Tenth District at Toledo, Ohio, its claim for refund demanding that the Commissioner refund to it the sum of $649,612.87, representing income and excess profits taxes determined and assessed by the Internal Revenue Service against taxpayer for said year 1951, together with interest paid by it on November 20, 1957, of $149,931.08, with interest on said sums computed according to law. A true copy of said claim for refund is attached to the complaint herein, marked Exhibit A and made part thereof. (Stip. Facts, par. 28)

26. Said claim for refund was disallowed by the District Director of Internal Revenue on May 27, 1958, which disallowance was confirmed by registered mail dated August 21, 1958, addressed to taxpayer by the District Director. (Stip. Facts, par. 29)

27. In all World War II excess profits tax years the Commissioner of Internal Revenue allowed taxpayer to include as borrowed capital, for excess profits tax purposes, its certificates of deposit of the same character as those employed by it for raising money in the years 1951 and 1952; and the federal income and excess profits tax returns of taxpayer for each and all of the World War II excess profits tax years are and have long since been closed so far as the taxpayer and the Internal Revenue Service are concerned. (Stip. Facts, par. 30)

28. The taxpayer and The Economy Savings and Loan Company, of Columbus, Ohio, are both building and loan companies organized under the same statutory law and for the same purpose, supervised and operated under the same Ohio statutes, employing in the year 1951 identical methods for raising capital to carry on business, including substantially identical certificates of deposit, deriving their principal income from the same type of business, and said two companies are and have been since 1923 the only building and loan companies in Ohio conducting, and authorized to conduct, a small loan and personal finance business (Rev.Code § 1151.29(E)). (Stip. Facts, par. 8)

29. In all World War II excess profits tax years The Economy Savings and Loan Company was permitted by the Internal Revenue Service to treat moneys raised through its certificates of deposit as borrowed capital; and likewise in its taxable years 1951, 1952 and 1953 The Economy Savings and Loan Company filed its excess profits tax returns in which it treated the funds attributable to its certificates of deposit as includible in borrowed capital, and the Internal Revenue Service after examining said returns for each of said years approved the same without raising any question or taking any exception to the fact that borrowed capital treatment had been given the funds received from the holders of its certificates of deposit; and the returns of said taxpayer for said years have been and are closed so far as the Internal Revenue Service is concerned. (Dep. G. Robert Becker, pp. 11, 12, 17)

30. On March 23, 1959, the Commissioner of Internal Revenue announced his nonacquiescence in the decision of the Tax Court in Economy Savings & Loan Co. v. Commissioner, 1945, 5 T.C. 543, accompanied by the statement that the acquiescence published in C.B.1945, 3 is withdrawn and nonacquiescence is substituted therefor (Int.Rev.Bull.No. 1959-12, p. 9). (Stip. Facts, par. 31)

31. While this suit involves primarily taxpayer's taxable year 1951, in computing its tax liability for said year taxpayer was entitled to, and did, pursuant to the applicable section of the Code, carry back certain unused excess profits credit to said year from its taxable year 1952 and that fact necessitated, in determining taxpayer's 1951 excess profits tax *850 liability, the taking into account as well its 1952 excess profits tax liability, which will explain the references and data in some of the paragraphs of these findings relating to the year 1952. (Stip. Facts, par. 32)

32. References to Ohio statutes in these findings are to the Revised Code now in effect, but substantially identical provisions of the General Code were in effect at all times and dates referred to in these findings. (Stip. Facts, par. 33)

 
Conclusions of Law

1. The Court has jurisdiction of the action, of the parties and of the subject matter of the suit (28 U.S.C. § 1346(a) (1)).

2. The sole issue presented in this case for decision (and the parties have so stipulated, Supp.Stip., par. 2) is whether the funds received by taxpayer from persons, firms and corporations, including financial institutions, for which the taxpayer issued certificates of deposit in the relevant years, were entitled, for the purpose of determining excess profits credit, to be considered and treated as borrowed capital within the meaning of the Excess Profits Tax Act of 1950 (26 U.S.C.A. § 439(b) (1) 1952 ed.).

3. The funds received by taxpayer from persons, firms and corporations, including financial institutions, for which the taxpayer issued certificates of deposit in the relevant years, constituted an outstanding indebtedness of the taxpayer to the holders of such certificates, incurred in good faith for the purposes of taxpayer's business.

4. The certificates of deposit issued by taxpayer to persons, firms and corporations, including financial institutions, depositing funds with the taxpayer in the relevant years were certificates of indebtedness within the meaning of the term as used in the Excess Profits Tax Act of 1950 (26 U.S.C.A. § 439(b) (1) 1952 ed.).

5. The funds raised by taxpayer through the issuance of certificates of deposit to persons, firms and corporations, including financial institutions, constituted borrowed capital within the meaning of the definition of that term contained in the Excess Profits Tax Act of 1950 (26 U.S.C.A. § 439(b) (1) 1952 ed.), and were properly includible by taxpayer as borrowed capital in the filing of its federal income and excess profits tax returns and amended returns for its taxable years 1951 and 1952. Economy Savings & Loan Co. v. Commissioner, 1945, 5 T.C. 543, modified and affirmed on other issues, 6 Cir., 1946, 158 F.2d 472; Jackson Finance & Thrift Co. v. Commissioner, 10 Cir., 1958, 260 F.2d 578.

6. The funds obtained by taxpayer in the relevant years through the issuance of certificates of deposit to persons, firms and corporations, including financial institutions, were invested in the business of the taxpayer by the holders of said certificates, and said certificates of deposit constituted investment securities within the meaning of Treasury Regulations, Section 40.439-1 (f) (Treas.Reg. 130, Int.Rev.Code 1939). Economy Savings & Loan Co. v. Commissioner, supra; Stoddard v. Miami Savings & Loan Co., 6 Cir., 1933, 63 F.2d 851.

7. Taxpayer was not a bank within the definition of the term "bank" contained in Section 104 of the Internal Revenue Code of 1939, 26 U.S.C.A. § 104, nor within the provisions of the statutes of Ohio which distinguish clearly between banks on the one hand and building and loan companies on the other. Jackson Finance & Thrift Co. v. Commissioner, 10 Cir., 1958, 260 F.2d 578, 582; Hoenig v. Huntington National Bank, 6 Cir., 1932, 59 F.2d 479, 482; United States v. Cambridge Loan & Building Co., 1928, 278 U.S. 55, 58, 49 S. Ct. 39, 73 L. Ed. 180.

8. By re-enacting in the Excess Profits Tax Act of 1950 the statutory definition of borrowed capital for purposes identical with that definition's original purpose as included in the Excess Profits Tax Act of 1939 and without *851 substantial change in the definition, it must be presumed that Congress approved and intended to adopt the judicial interpretation placed upon that definition by the Tax Court in Economy Savings & Loan Co. v. Commissioner, 1945, 5 T.C. 543, and the administrative interpretation placed upon the Congressional definition by the Commissioner of Internal Revenue through regulation, and the formal acquiescence of the Commissioner in the result reached in the Economy case. Jackson Finance & Thrift Co. v. Commissioner of Internal Revenue, 10 Cir., 1958, 260 F.2d 578, 581.

9. The Commissioner of Internal Revenue either lacked power to deny, or was equitably estopped from denying, borrowed capital treatment to the funds raised by taxpayer through the issuance of certificates of deposit because the taxpayer, in good faith, had filed its federal income and excess profits tax returns and had treated such funds as borrowed capital, in reliance upon and being lured by the acquiescence of the Commissioner of Internal Revenue in the conclusion reached in the Economy case and his official pronouncements in connection therewith (Finding of Fact No. 18), and incurred substantial prejudice in the way of large interest charges and the failure to set up reserves, directly due to the change of position of the Commissioner of Internal Revenue. Woodworth v. Kales, 6 Cir., 1928, 26 F.2d 178, 181; H. S. D. Co. v. Kavanagh, 6 Cir., 1951, 191 F.2d 831, 846.

10. The doctrine of equitable estoppel does not bar correction by the Commissioner of Internal Revenue of a mistake of law, but in this case it does not appear that there was a mistake of law, a mistake of fact, or other lawful excuse for the Commissioner to change his position, to the prejudice of the taxpayer, merely because the Commissioner entertained a different view or change of opinion in 1957, or a "matured and better judgment" of the same factual situation which existed in 1945. Woodworth v. Kales, supra; H. S. D. Co. v. Kavanagh, supra.

11. The change of position by the Commissioner of Internal Revenue, first made known to taxpayer in January 1957, denying borrowed capital treatment to the funds raised by certificates of deposit issued by taxpayer to holders for the purpose of raising money to carry on its business, and his action in making an individual, retroactive and discriminatory application of such change of position to taxpayer, while allowing borrowed capital treatment to like funds of The Economy Savings & Loan Company which was identically organized, supervised and operated, constituted inequitable conduct by the Commissioner, if not an unlawful abuse of discretion within the meaning of Section 7805(b) of the Internal Revenue Code of 1954, 26 U.S.C.A. § 7805(b). Lesavoy Foundation v. Commissioner, 3 Cir., 1956, 238 F.2d 589, 591, 592; Automobile Club of Michigan v. Commissioner, 1957, 353 U.S. 180, 185, 77 S. Ct. 707, 1 L. Ed. 2d 746.

12. Taxpayer is entitled to judgment against the defendant in the sum of $799,543.95, with interest on $76,161.13 at 6% per annum computed from December 4, 1952, on $130,030.38 at 6% per annum computed from May 6, 1953, and on $593,352.44 at 6% per annum computed from November 21, 1957, and for its allowable costs.

Источник: https://law.justia.com/cases/federal/district-courts/FSupp/177/843/1884608/

World Savings is Now Wells Fargo

World Savings Bank offered home loans and savings and checking accounts to customers across the United States. Its parent company was Golden West Financial. As of March 31, 2006, Golden West was one of the nation’s largest financial institutions, with assets over $125 billion.

Golden West’s stock was listed on the New York Stock Exchange (NYSE) under the ticker symbol GDW.

World Savings is acquired

In October 2006, Wachovia Corporation acquired Golden West Financial Corporation, including World Savings. With the merger, Wachovia gained mortgage lending operations under the World Savings Bank name in 39 states.

In 2008, Wells Fargo & Company acquired Wachovia Corporation, including World Savings.

Need help?

If you are a customer and want to access your accounts online, please go to wellsfargo.com.

If you have questions, please call us at 1-800-TO-WELLS (1-800-869-3557). We’re available 24 hours a day, 7 days a week.

Источник: https://www.wellsfargo.com/about/corporate/worldsavings/
united savings and loan bank

: United savings and loan bank

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United Savings and Loan Bank

Home > United Savings and Loan Bank

Status:Inactive as of 2003-08-31
 Merger - Without Assistance
Successor Bank:Washington Federal Bank
Headquarters:United Savings and Loan Bank
601 South Jackson Street
Seattle, WA98104
Established:1959-01-01
FDIC Insurance:1960-06-21
FDIC Cert:#31131
Charter Class:Savings associations, state or federal charter, supervised by the Office of Thrift Supervision (OTS)
Total Assets:$320,372,000
Total Deposits:$272,203,000

History

1990-09-30Changed name to United Savings and Loan Bank
2003-08-31Merged into and subsequently operated as part of Washington Federal Savings and Loan Association (28088) in SEATTLE, WA
2007-02-13Acquired First Federal Bank (29702) in ROSWELL, NM
2008-02-01Acquired First Mutual Bank (19835) in BELLEVUE, WA
2010-01-08Acquired Horizon Bank (22977) in BELLINGHAM, WA as part of a government assisted transaction.
2011-07-07Changed name to Washington Federal (28088)
2011-07-21Changed primary regulatory agency from OFFICE OF THRIFT SUPERVISION to COMPTROLLER OF THE CURRENCY
2011-12-16Acquired Western National Bank (57917) in PHOENIX, AZ as part of a government assisted transaction.
2012-10-31Acquired South Valley Bank & Trust (22401) in KLAMATH FALLS, OR
2013-07-17Changed institution class to INSURED COMMERCIAL BANK, NATIONAL, MEMBER FRS
2013-07-17Changed organization type to COMMERCIAL BANK
2013-07-17Changed name to Washington Federal, National Association (28088)
2019-04-29Changed name to Washington Federal Bank, National Association (28088)

Financial Information (2003-06-30 and Older)

Assets and Liabilities

Cash and Balances Due

Securities

U.S. Government Obligations

Total Debt Securities

Net Loans and Leases

1- 4 Family Residential Net Loans and Leases

Loans to Depository Institutions

Total Loans and Leases in Foreign Offices

Maturity & Repricing for Loans and Leases

Small Business Loans

Loans Restructured in Troubled Debt Restructurings

Other Real Estate Owned

Goodwill and Other Intangibles

Total Deposits

Transaction Accounts

Nontransaction Accounts

Time Deposits of Less Than $100,000

Time Deposits of $100,000 or More

Deposits Based on the $100,000 Reporting Threshold

Deposits Based on the $250,000 Reporting Threshold

Deposits Held in Foreign Offices

Changes in Bank Equity Capital

Total Unused Commitments

Letters of Credit

Total Assets and Liabilities in Foreign Offices

Derivatives

Past Due and Nonaccrual Assets

Past Due 30- 89 Days 1- 4 Family Residential

Past Due 90+ Days 1- 4 Family Residential

Nonaccrual 1- 4 Family Residential

Past Due and Nonaccrual Loans Wholly or Partially US Gvmt Guaranteed

Fiduciary and Related Services

Number of Fiduciary and Related Asset Accounts

Total Fiduciary and Related Assets

Total Managed Assets held in Fiduciary Accounts

Corporate Trust and Agency Accounts

Collective Investment & Common Trust Funds

Gross Fiduciary and Related Services Income

Fiduciary settlements, surcharges, and other losses

Carrying Amount of Assets Covered by FDIC Loss- Share Agreements

Bank Assets Sold and Securitized

Maximum Amount of Credit Exposure Retained

Unused Commitments

Amount of Ownership (Seller) Interests

Memoranda

Income and Expense

Total Interest Income

Total Interest Expense

Trading Account Gains & Fees

Additional Noninterest Income

Additional Noninterest Expense

Loan Charge- Offs and Recoveries

Total Charge- offs 1- 4 Family Residential

Total Recoveries 1- 4 Family Residential

Net Charge- offs 1- 4 Family Residential

Cash Dividends

Interest income and expense in foreign offices

Performance and Condition Ratios

Net charge- offs to loans

Noncurrent loans to loans

Источник: https://www.usbanklocations.com/united-savings-and-loan-bank-31131.shtml

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Savings and Loans, S&L History and Operations

Savings and Loans (S&Ls) are specialized banks created to promote affordable homeownership. They get their name by funding mortgages with savings that are insured by the Federal Deposit Insurance Corporation. Historically, they have offered higher rates on savings accounts to attract more deposits, which increases their ability to offer mortgages.

Early Supplier of Home Mortgages

Before the Federal Home Loan Bank Act of 1932, most home mortgages were short-term and provided by insurance companies, not banks. S&Ls then gained the ability to offer 30-year mortgages that offered lower monthly payments than previously available. It helped make homeownership more affordable.

S&Ls have changed significantly in recent decades. Those that still exist today operate like most commercial banks by offering checking accounts and other common features. The key difference is that they must have nearly two-thirds of their assets invested in residential mortgages.

Creation of the Savings and Loan Banks

Before the Great Depression, mortgages were 5 to 10-year loans that had to be refinanced or paid off with a large balloon payment. By 1935, 10% of all U.S. homes were in foreclosure, thanks to these harsh terms and falling housing prices. To stop the carnage, the New Deal did these three things: 

  1. The Home Owner’s Loan Corporation bought 1 million defaulted mortgages from banks. The HOLC changed them to the long-term, fixed-rate mortgage we know today and reinstated them. 
  2. The Federal Housing Administration provided mortgage insurance.
  3. The Federal National Mortgage Association created a secondary market for mortgages.

The FNMA also created Savings and Loans to issue these mortgages. These changes were in response to an economic catastrophe. But they significantly boosted homeownership in the United States.

The Growth of the Home Loan Market

In 1944, the Veterans Administration created a mortgage insurance program that lowered payments. That encouraged returning war veterans to buy homes in the suburbs. The program spurred economic activity in the home construction industry.

Throughout the 1960s and 1970s, almost all mortgages were issued through S&Ls. Thanks to all these federal programs, homeownership rose from 43.6% in 1940 to 64% by 1980.

Trouble for the S&Ls

In 1973, President Richard Nixon created rampant inflation by removing the U.S. dollar from the gold standard. S&Ls couldn't raise interest rates to keep up with rising inflation, so they lost their deposits to money market accounts. That eroded the capital S&Ls needed to create low-cost mortgages. The industry asked Congress to remove certain restrictions on its operations.

In 1982, President Ronald Reagan signed the Garn-St. Germain Depository Institutions Act. It allowed banks to raise interest rates on savings deposits, make commercial and consumer loans, and reduce loan-to-value ratios. S&Ls invested in speculative real estate and commercial loans. Between 1982 and 1985, these assets increased by 56%.

Collapse and Bailout

The collapse of these investments led to the failure of half the nation's banks. As banks went under, state and federal insurance funds began to run out of the money needed to refund depositors. 

In 1989, the George H.W. Bush administration bailed out the industry with the Financial Institutions Reform, Recovery, and Enforcement Act. FIRREA provided an initial $50 billion to close failed banks, set up the Resolution Trust Corporation to resell bank assets, and used the proceeds to reimburse depositors. FIRREA prohibited S&Ls from making more risky loans. 

Unfortunately, the savings and loan crisis destroyed confidence in institutions that once had been thought to be secure sources of home mortgages because state-run funds backed them.

Repeating Past Mistakes

Like other banks, S&Ls had been prohibited by the Glass-Steagall Act from investing depositors' funds in the stock market and high-risk ventures to gain higher rates of return. The Clinton administration repealed Glass-Steagall to allow U.S. banks to compete with more loosely regulated international banks. It allowed banks to use FDIC-insured deposits to invest in risky derivatives.

The most popular of these risky investment instruments were the mortgage-backed security (MBS). Banks sold mortgages to Fannie Mae or the Federal Home Loan Mortgage Corporation. They then bundled the mortgages and sold them as MBS to other investors on the secondary market.

Many hedge funds and large banks would buy the loans and, in turn, repackaged and resell them with subprime mortgages included in the package. These institutional and large buyers were insured against default by holding credit default swaps (CDS). The demand for the packaged and high-yielding MBS was so great that banks started selling mortgages to anyone and everyone. The housing bubble expanded.

2006 Financial Crisis

All went well until housing prices started falling in 2006. Just like during the Great Depression, homeowners began defaulting on their mortgages, and the entire derivatives market selling the packaged and repackaged securities collapsed. The 2008 financial crisis timeline recounts the critical events that happened in the worst U.S. financial crisis since the Great Depression.

Washington Mutual was the largest savings and loan bank in 2008. It ran out of cash during the financial crisis when it couldn't resell its mortgages on the collapsed secondary market. When Lehman Brothers went bankrupt, WaMu depositors panicked. They withdrew $16.7 billion over the next ten days. The FDIC took over WaMu and sold it to JPMorgan Chase for $1.9 billion.

Post-Crisis S&Ls

The difference between commercial banks and S&Ls has narrowed significantly. In 2019, there were only 659 Savings and Loans, according to the FDIC. The agency supervised almost half of them. Today, S&Ls are like any other bank, thanks to the FIRREA bailout of the 1980s.

Most S&Ls that remain can offer banking services similar to other commercial banks, including checking and savings accounts. The key difference is that 65% of an S&L's assets must be invested in residential mortgages.

Another key difference is the local focus of most S&Ls. Compared to banks that often are large, multinational corporations, S&Ls more often are locally owned and controlled, more similar in fashion to credit unions. For this reason, they often can be a good place to get the best rates on mortgages.

Источник: https://www.thebalance.com/what-are-savings-and-loans-history-and-today-3305959

In March 1985, the Home State Savings Bank of Cincinnati collapsed, setting off a series of savings-and-loan closures in Ohio and across the United States of America.

Following the Great Depression, the federal government insured deposits in most banks and savings-and-loan associations. However, many states, including Ohio, allowed the establishment of savings-and-loan organizations that were state-insured. By the early 1980s, many of these savings-and-loan businesses were in trouble from making bad investments, including investing funds in poorly performing stocks, making bad mortgage loans, and loaning poorly performing businesses funds with their depositors' money. In these cases, the savings-and-loan businesses stood to lose much, if not all, of the money deposited in them.

The crisis began in Ohio when investigators discovered that Home State Savings Bank, located in Cincinnati, had invested approximately 140 million dollars in a non-existent securities firm. Numerous depositors flooded the bank, seeking to withdraw all of their savings. To curb the rush upon Home State Savings Bank and to prevent a similar circumstance for other savings-and-loans in the state, Governor Richard F. Celeste declared a banking holiday for any savings-and-loans insured by the state government. He declared this holiday on March 15, 1985, and the banks remained closed until they could secure insurance from the federal government. Some of these banks never reopened, although all depositors eventually received back their money. In the case of the Home State Savings Bank, the Ohio government paid back the depositors their lost funds, costing the state approximately twelve million dollars.

The Home State Savings Bank collapse helped trigger other savings-and-loan closures across the United States. Numerous lending institutions closed, leading the federal and various state governments to repay the banks' depositors. In the end, the savings-and-loan crisis cost American taxpayers billions of dollars.

See Also

Источник: https://ohiohistorycentral.org/w/Home_State_Savings_Bank%27s_Failure

World Savings is Now Wells Fargo

World Savings Bank offered home loans and savings and checking accounts to customers across the United States. Its parent company was Golden West Financial. As of March 31, 2006, Golden West was one of the nation’s largest financial institutions, with assets over $125 billion.

Golden West’s stock was listed on the New York Stock Exchange (NYSE) under the ticker symbol GDW.

World Savings is acquired

In October 2006, Wachovia Corporation acquired Golden West Financial Corporation, including World Savings. With the merger, Wachovia gained mortgage lending operations under the World Savings Bank name in 39 states.

In 2008, Wells Fargo & Company acquired Wachovia Corporation, including World Savings.

Need help?

If you are a customer and want to access your accounts online, please go to wellsfargo.com.

If you have questions, please call us at 1-800-TO-WELLS (1-800-869-3557). We’re available 24 hours a day, 7 days a week.

Источник: https://www.wellsfargo.com/about/corporate/worldsavings/

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