Orders issued under Bank Holding Company Act - Legal Developments - Allied Irish Banks P.L.C. to acquire share of M&T's subsidiary banks

Federal Reserve Bulletin, May, 2003 by Robert DeV. Frierson

(19.) 12 U.S.C. [section] 1842(c)(2).

(20.) 12 U.S.C. [section] 2901 et seq.

(21.) See 12 C.F.R. 225.28(b)(6) and (11).

(22.) 12 U.S.C. [section] 1843(j)(2)(A).

Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Gramlich, Bies, Olson, Bernanke, and Kohn.

ROBERT DE V. FRIERSON

Deputy Secretary of the Board

South Trust Corporation

SouthTrust of Alabama, Inc.

South Trust Bank

All in Birmingham, Alabama

Order Approving the Acquisition of Bank Holding Companies, Merger of Banks, and Establishment of Branches

SouthTrust Corporation ("SouthTrust") and its wholly owned subsidiary, SouthTrust of Alabama, Inc. ("SouthTrust Alabama"), both bank holding companies subject to the provisions of the Bank Holding Company Act ("BHC Act"), have requested the Board's approval under section 3 of the BHC Act (12 U.S.C. [section] 1842) to acquire Founders Bancshares ("Founders") and its wholly owned subsidiaries, Skillman Bancshares ("Skillman") and Founders National Bank ("Founders Bank"), all in Dallas, Texas. SouthTrust's subsidiary bank, SouthTrust Bank ("SouthTrust Bank"), a state member bank in Birmingham, has requested the Board's approval under section 18(c) of the Federal Deposit Insurance Act (12 U.S.C. [section] 1828(c)) ("Bank Merger Act") to merge with Founders Bank, with SouthTrust Bank as the surviving entity. (1) In addition, SouthTrust Bank proposes to retain and operate branches at the main and branch offices of Founders Bank. (2)

Notice of the proposal, affording interested persons an opportunity to comment, has been published in accordance with the relevant statutes and the Board's Rules of Procedure (12 C.F.R. 262.3(b)) in the Federal Register (68 Federal Register 3,029 (2003)) and locally. As required by the BHC Act and the Bank Merger Act, reports on the competitive effects of the merger were requested from the U.S. Attorney General and the relevant banking agencies. The time for filing comments has expired, and the Board has considered the applications and all comments received in light of the factors set forth in section 3 of the BHC Act, the Bank Merger Act, and the statutory provisions that govern the retention and operation of interstate branches.

SouthTrust, with total assets of $50.8 billion, is the largest banking organization in Alabama. SouthTrust operates depository institutions in Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, and Texas. SouthTrust Bank is the 19th largest depository institution in Texas, controlling deposits of approximately $1.8 billion, representing less than 1 percent of total deposits of insured depository institutions in the state ("state deposits"). (3) Founders Bank is the 230th largest depository institution in Texas, controlling deposits of $102.5 million, representing less than 1 percent of state deposits. On consummation of the proposal, SouthTrust Bank would become the 18th largest depository institution in Texas, controlling deposits of approximately $1.9 billion, representing less than 1 percent of state deposits.