STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

UNITED FIRST FEDERAL SAVINGS AND LOAN ) ASSOCIATION and FIRST FEDERAL SAVINGS AND ) LOAN ASSOCIATION OF CHARLOTTE COUNTY, )

)

Petitioners, )

)

vs. ) CASE NO. 79-1109

) AMERICAN SAVINGS AND LOAN ASSOCIATION ) OF FLORIDA and OFFICE of the COMPTROLLER, )

)

Respondents. )

)

REPORT

Pursuant to notice, an administrative hearing was held before Diane D. Tremor, Hearing Officer with the Division of Administrative Hearings, on June 25, 1979, in the courtroom of the Public Safety Building, 2050 Ringling Boulevard, Sarasota, Florida. The purpose of the hearing was to receive evidence concerning the application of American Savings and Loan Association to open a branch office at the Promenades Mall on Harbor Boulevard just northeast of its intersection with U.S. Highway 41, in Port Charlotte, Charlotte County, Florida.

APPEARANCES

For Petitioner First Bernard R. Mosely and Federal Savings and Earl Drayton Farr, Jr. Loan Association of 166 North Tamiami Dr. S.C.

Charlotte County: Port Charlotte, Florida 33952

For Petitioner United William D. Branhan and First Federal Savings George Page

and Loan Association: Post Office Box 1475

Sarasota Florida 33578

For Respondent Shepard Broad and Patricia Lebow Applicant: Barnett Bank Building

1108 Kane Concourse

Bay Harbor Islands, Florida 33154

For Respondent Karlyn Anne Loucks

Comptroller: Assistant General Counsel Office of the Comptroller The Capitol

Tallahassee, Florida 32301

INTRODUCTION AND RULINGS ON EVIDENTIARY MATTERS

On April 9, 1979, the American Savings and Loan Association of Florida (hereinafter referred to as applicant) filed its application with-the Division of Banking, Office of the Comptroller, for authority to open a branch office on Harbor Boulevard in Port Charlotte, Florida. The petitioners United First Federal Savings and Loan Association (United) and First Federal Savings and Loan Association of Charlotte County (First Federal) timely filed their requests for a public hearing on the application.

At the beginning of the hearing it was ruled that the applicant would have the burden of going forward with its evidence and witnesses and proving that it met the statutory and regulatory-criteria for approval of its application. In support of its application, the applicant put into evidence the testimony of Peggy Bieley, Vice President and Economist for American Savings and Loan Association, and Morris N. Broad, President of American Savings and Loan Association, and documentary evidence consisting of Exhibits A through Q.

The protestant United announced its presence at the hearing and reserved the right to offer testimony as the hearing developed. At the conclusion of the hearing, United announced its desire to offer no testimony.

The Protestant First Federal presented the testimony of its President, Donald R. Witter, Jr., but offered no documentary evidence.

The Office of the Comptroller presented the testimony of Adina Simmons, who was accepted as an expert in the areas of economics and demographics. Received into evidence from the Comptroller were Exhibits 1 through 3, consisting of the public file, the confidential file (sealed) and certain economic and demographic materials.

Each of the parties have submitted proposed findings of fact which have been carefully considered. To the extent that said proposed findings are not included in the findings of fact in this Report, they are rejected as either being not supported by competent, substantial evidence, irrelevant or immaterial to the issues for consideration, or as being conclusions of law as opposed to findings of fact.

FINDINGS OF FACT

Upon consideration of the oral and documentary evidence adduced at the hearing, the following relevant facts are found:

1. The applicant, American Savings and Loan Association of Florida, is a state chartered stock association, ranking fifth in size in the State of Florida. Its stock is carried on the New York Stock Exchange and a May 14, 1979, Forbes publication lists the applicant as the 499th largest corporation in the United States in terms of asset size. Its major lending area is Dade, Broward, and Palm Beach Counties. It is a statewide mortgage lender and relies heavily upon FIIA, VA and other government lenders.

   
   

2. The applicant was chartered in 1950. At the time of the application, the applicant had 24 offices opened, three of fices approved and awaiting opening and three applications for branch offices pending.

3. As of September 30, 1978, the applicant's excess over required actual reserves (Federal Insurance Reserve) was $6.9 million. For the twelve months ending March 31, 1979, its return on average assets was 1.04 percent. As of March 31, 1979, its scheduled items as a percent of total assets was 0.20 percent. As of June 11, 1979, the applicant's excess ever required liquidity for total assets was $41,484,236.00. For short term assets, its excess over required liquidity was $45,700,478.00.

   
   

4. The site of the proposed branch office is a one-acre parcel in front of the Winn Dixie supermarket portion of the Promenades Mall shopping center in Port Charlotte. The site is an unincorporated area of Charlotte County and faces Harbor Boulevard just north of U.S. Highway 41 or Tamiami Trail. The applicant intends to purchase a one-acre site for $262,500.00 and build a 12,000 square foot two-story building. The proposed branch office will occupy approximately 30 percent of the structure. No officer, employee or director of American Savings and Loan Association has any direct or indirect interest in the parcel of land which will be purchased for the proposed site. The proposed branch will initially be housed in a temporary double-wide trailer facility, which may have one drive-in teller, for no more than one year. It is anticipated that this facility can be opened within 90 days of approval. The applicant estimates the cost of the trailer at $25,000.00.

   
   

5. The name of the proposed branch office is to be American Savings and Loan Association of Florida--Port Charlotte Office. There was no evidence adduced at the hearing that such a name would be misleading or confusing to the public.

   
   

6. The applicant intends to offer a full range of services, including VISA and Master Charge accounts. For the first three years of operation the applicant projects total deposits in the amount of $8.5 million per year. In the last three branch offices opened by the applicant, its actual savings deposits were substantially above the projections made at the time of application- . Its net income after taxes for the first year is projected to be

   $39,327.00, and the second and third year net incomes are projected to be

   $190,886.00 and $311,557.00.

   
   

7. The applicant's designated primary market area has a population of approximately 30,000. It is bounded by three natural boundaries and one political boundary: the Peace River on the south and east, the Myakka River on the west and the Charlotte/Sarasota County line on the north. In addition to the Promenades Mall--a 216,000 square foot shopping center housing some 53 commercial establishments, there are two general hospitals and a cultural center in the immediate vicinity of the proposed site. There are several large residential subdivisions in the applicant's primary market area, including the 92,000 acre unincorporated community of Port Charlotte developed by General Development Corporation. According to the application there are 286 retail establishments and 181 service establishments within the proposed primary market area.

   
   

8. Within the applicant's designated primary market area, there are four commercial banks (one is unopened) and four savings and loan associations. There are no state chartered savings and loan institutions in Charlotte County. Each of the existing financial institutions has experienced substantial increases in total deposits. The applicant estimates that there are untapped potential savings in the primary market area amounting to $69 million.

9. There are no official state current population estimates for the primary service area. General trends of population changes in the County illustrate rapid, but uneven growth. The average annual increase in population ranged between 8.8 and 9.5 percent between 1970 and 1976, dropped to a range between 3.6 and 5.0 percent in 1976 and 1977, and increased to 13.3 percent between 1977 and 1978. The fastest rate of increase occurred in Punta Gorda, with a slightly lower growth rate occurring in the unincorporated areas. All of the population growth in the County (112.23 percent) resulted from net migration comprised primarily of retirees. In 1978, the percentage of those persons aged 45-65 plus reached 68.4. The labor force group (ages 15-65) comprised 19.2 percent of the population in 1978. The average rate of unemployment in the County was well below the state average rate in March and April of 1979. The per capita annual personal income from the county increased from $5,516 in 1976 to $6,222 in 1977, an 11.6 percent increase. Although this growth is somewhat higher than the 9.8 percent state average, the county's averages remained below the state averages of $6,101 and $6,697, respectively, for the same years.

   
   

10. The applicant is in substantial compliance with and meets the reserve requirements of all pertinent state and federal laws affecting its operation.

In accordance with the provisions of Florida Statutes 120.57(1)(a)(12), conclusions of law and a recommendation are not included in this Report.

Respectfully submitted and entered this 6th day of August, 1979, in Tallahassee, Florida.

DIANE D. TREMOR

Hearing Officer

Division of Administrative Hearings Room 101, Collins Building Tallahassee, Florida 32301

(904) 488-9675

COPIES FURNISHED:

Bernard R. Mosely, Esquire and Earl Drayton Farr, Esquire

166 North Tamiami Drive Southeast Port Charlotte, Florida 33952

William D. Branham, Esquire and George Page, Esquire

Post Ofrice Box 1478 Sarasota, Florida 33578

Shepard Broad, Esquire and Patricia Lebow, Esquire Barnett Bank Building

1108 Kane Concourse

Bay Harbor Island, Florida 33154

Karlyn Ann Loucks Assistant General Counsel Office of the Comptroller The Capitol

Tallahassee, Florida 32301

Honorable Gerald Lewis Comptroller, State of Florida The Capitol

Tallahassee, Florida 32301

================================================================= AGENCY FINAL ORDER

=================================================================

STATE OF FLORIDA DEPARTMENT OF BANKING AND FINANCE

UNITED FIRST FEDERAL SAVINGS AND LOAN ASSOCIATION and FIRST FEDERAL SAVINGS AND LOAN ASSOCIATION OF CHARLOTTE COUNTY,

Petitioner,

vs. CASE NO. 79-1109

AMERICAN SAVINGS AND LOAN ASSOCIATION OF FLORIDA, and OFFICE OF THE COMPTROLLER,

Respondent.

/

FINDINGS OF FACT, CONCLUSIONS OF LAW AND FINAL ORDER

Pursuant to notice, an administrative hearing was held before Diane D. Tremor, Hearing Officer with the Division of Administrative Hearings, on June 25, 1979, in the courtroom of the Public Safety Building, 2050 Ringling Boulevard, Sarasota, Florida. The purpose of the hearing was to receive evidence concerning the application of American Savings and Loan Association to open a branch office at the Promenades Mall on Harbor Boulevard just northeast of its intersection with U.S. Highway 41, in Port Charlotte, Charlotte County, Florida.

APPEARANCES

For Petitioner, First Bernard R. Moseley Federal Savings and Earl Drayton Farr, Jr.

Loan Association of 166 North Tamiami Drive, Southeast Charlotte County: Port Charlotte, Florida 33952

For Petitioner, William D. Branham United First Federal George Page

Savings and Loan Post Office Box 1478 Association: Sarasota, Florida 33578

For Respondent, Shepard Broad

Applicant: Patricia Lebow Barnett Bank Building 1108 Kane Concourse

Bay Harbor Islands, Florida 33154

For Respondent, Karlyn Anne Loucks, Esquire Comptroller: Office of the Comptroller

The Capitol

Tallahassee, Florida 32301

Upon consideration of the oral and documentary evidence adduced at the hearing, the Report of the Hearing Officer submitted on August 6, 1979, is hereby adopted and incorporated herein. The Report includes an Introduction and Rulings on Evidentiary Matters and Findings of Facts as paragraphs one (1) through ten (10).

The pertinent provision of Chapter 665, Florida Statutes, which governs the approval of the establishment of a branch office is as follows:

1. APPROVAL OF ESTABLISHMENT.--Each application for approval of the establishment and maintenance of a branch office shall state the proposed location thereof, the need therefor, the functions to be performed therein, the estimated volume of business thereof, the estimated annual expense thereof, and the mode of payment therefor. Each such application shall be accompanied by a budget of the association for the current earnings period and for the next succeeding semiannual period, which reflects the estimated additional expense of the maintenance of such a branch office. Upon the receipt by the department of such an application, it shall determine whether the establishment and maintenance of such office will unduly injure any properly conducted existing association or federal association in the community where such branch office is proposed to be established. If it finds that no undue injury is likely to result and that the establishment and maintenance of such branch office is advisable, it may approve the application.

   The Department's rule implementing Section 655.441(3), Florida Statutes, at the time the application was submitted, was Rule 3C-21.09, Florida Administrative Code, which provided

   
   

   1. Definition -- a "branch office" is a legally established place of business of the association other than the home office authorized by the board of directors and approved by the Department, at which savings accounts and loan payments may be accepted, application for loans may be received, account books and membership certificates may be issued, and loans may be closed.

   2. Approval of Establishment -- Each application for approval of the establishment and maintenance of a branch office shall be in accordance with the substantive provisions of Section 665.441, F.S.; and the procedures as set forth in Chapter 120, F.S.

INTRODUCTION AND RULINGS ON EVIDENTIARY MATTERS

On April 9, 1979, the American Savings and Loan Association of Florida (hereinafter referred to as Applicant) filed its application with the Division of Banking, Office of the Comptroller, for authority to open a branch office on Harbor Boulevard in Port Charlotte, Florida. The petitioners, United First Federal Savings and Loan Association (United) and First Federal Savings and Loan Association of Charlotte County (First Federal), timely filed their requests for a public hearing on the application.

At the beginning of the hearing, it was ruled that the Applicant would have the burden of going forward with its evidence and witnesses and proving that it met the statutory and regulatory criteria for approval of its application. In support of its application, the Applicant put into evidence the testimony of Peggy Bieley, Vice President and Economist for American Savings and Loan Association, and documentary evidence consisting of Exhibits A through Q.

The Protestant, United, announced its presence at the hearing and reserved the right to offer testimony as the hearing developed. At the conclusion of the hearing, United announced its desire to offer no testimony.

The Protestant, First Federal, presented the testimony of its President, Donald R. Witter, Jr., but offered no documentary evidence.

The Office of the Comptroller presented the testimony of Adina Simmons, who was accepted as an expert in the areas of economics and demographics. Received into evidence from the Comptroller were Exhibits 1 through 3, consisting of the public file, the confidential file (sealed) and certain economic and demographic materials.

Each of the parties submitted proposed findings of fact to the Hearing Officer and were carefully considered. To the extent that said proposed findings were not included in the findings of fact in the Hearing Officer's Report, they were rejected as either being not supported by competent, substantial evidence, irrelevant or immaterial to the issues for consideration, or as being conclusions of law as opposed to findings of fact.

FINDINGS OF FACT

Upon consideration of the oral and documentary evidence adduced at the hearing, the following relevant facts are found:

1. The Applicant, American Savings and Loan Association of Florida, is a state chartered stock association, ranking fifth in size in the State of Florida. Its stock is carried on the New York Stock Exchange and a May 14, 1979, Forbes publication lists the Applicant as the 499th largest corporation in the United States in terms of asset size. Its major lending area is Dade, Broward and Palm Beach Counties. It is a statewide mortgage lender and relies heavily upon FHA, VA and other government lenders.

   
   

2. The Applicant was chartered in 1950. At the time of the application, the Applicant had 24 offices opened, three offices approved but unopened and three applications for branch offices pending.

   
   

3. As of September 30, 1978, the Applicant's excess over required actual reserves (Federal Insurance Reserve) was $6.9 million. For the twelve months ending March 31, 1979, its return on average assets was 1.04 percent. As of March 31, 1979, its scheduled items as a percent of total assets was 0.20 percent. As of June 11, 1979, the Applicant's excess over required liquidity for total assets was $41,484,236.00. For short term assets, its excess over required liquidity was $45,700,478.00.

   
   

4. The site of the proposed branch office is a one-acre parcel in front of the Winn Dixie supermarket portion of the Promenades Mall shopping center in Port Charlotte. The site is an unincorporated area of Charlotte County and faces Harbor Boulevard just north of U.S. Highway 41 or Tamiami Trail. The Applicant intends to purchase a one-acre site for $262,500.00 and build a 12,000 square foot two-story building. The proposed branch office will occupy approximately 30 percent of the structure. No officer, employees or director of American Savings and Loan Association has any direct or indirect interest in the parcel of land which will be purchased for the proposed site. The proposed branch will initially be housed for no more than one year in a double-wide trailer facility, which may have one drive-in teller. It is anticipated that this facility can be opened within 90 days of approval. The Applicant estimates the cost of the trailer at $25,000.00.

   
   

5. The name of the proposed branch office is to be American Savings and Loan Association of Florida -- Port Charlotte Office. There was no evidence adduced at the hearing that such a name would be misleading or confusing to the public.

   
   

6. The Applicant intends to offer a full range of services, including VISA and Master Charge accounts. For the first three years of operation, the Applicant projects total deposits in the amount of $8.5 million per year. In the last three branch offices opened by the Applicant, its actual savings deposits were substantially above the projections made at the time of application. Its net income after taxes for the first year is projected to be

   $39,327.00, and the second and third year net incomes are projected to be

   $190,886.00 and $311,557.00.

   
   

7. The Applicant's designated primary market area has a population of approximately 30,000. It is bounded by three natural boundaries and one political boundary: the Peace River on the south and east; the Myakka River on

   the west and the Charlotte/Sarasota County line on the north. In addition to the Promenades Mall -- a 216,000 square foot shopping center housing some 53 commercial establishments, there are two general hospitals and a cultural center in the immediate vicinity of the proposed site. There are several large residential subdivisions in the Applicant's primary market area, including the 92,000 acre unincorporated community of Port Charlotte developed by General Development Corporation. According to the application, there are 286 retail establishments and 181 service establishments within the proposed primary market area.

   
   

8. Within the Applicant's designated primary market area, there are four commercial banks (one is unopened) and four savings and loan associations. There are no state chartered savings and loan institutions in Charlotte County.

   Each of the existing financial institutions has experienced substantial increase in total deposits. The Applicant estimates that there are untapped potential savings in the primary market area amounting to $69 million.

   
   

9. There are no official state current population estimates for the primary service area. General trends of population changes in the County illustrate rapid, but uneven growth. The average annual increase in population ranged between 8.8 and 9.5 percent between 1970 and 1976, dropped to a range between 3.6 and 5.0 percent in 1976 and 1977, and increased to 13.3 percent between 1977 and 1978. The fastest rate of increase occurred in Punta Gorda, with a slightly lower growth rate occurring in the unincorporated areas. All of the population growth in the County (112.23 percent) resulted from net migration comprised primarily of retirees. In 1978, the percentage of those persons aged 45-65 plus reached 68.4 percent. The labor force group (ages 15-65) comprised

   19.2 percent of the population in 1978. The average rate of unemployment in the County was well below the State average rate in March and April of 1979. The per capita annual personal income from the County increased from $5,516 in 1976 to $6,222 in 1977, an 11.6 percent increase. Although this growth is somewhat higher than the 9.8 percent state average, the County's averages remained below the State averages of $6,101 and $6,697, respectively, for the same years.

   
   

10. The Applicant is in substantial compliance with and meets the reserve requirements of all pertinent state and federal laws affecting its operation.

    
    

11. The Deputy Comptroller, Gerri Raines Dolan, and the Director of the Division of Banking, Ryland T. Rigsby, as advisory staff members to the Comptroller, reviewed the application and the Department's entire file relating to the application. They assisted and concurred with the Comptroller in the ultimate determination of the application.

RULINGS ON PROPOSED FINDINGS OF FACT

All parties submitted proposed findings of fact. The Applicant's proposed findings 1-5 and 7-14 are hereby accepted except where they might specifically conflict with the findings stated in this Final Order or where they constitute conclusions of law. The Applicant's proposed finding 6 is accepted, with the exception of fourth sentence which is not supported by competent substantial evidence in the record. Proposed findings 1-6 of the Protestant, First Federal, are accepted except where they might specifically conflict with the findings stated in this Final Order or where they constitute conclusions of law.

Proposed findings 7 through 9 of Protestant, First Federal, are rejected in that they constitute conclusions of law. Proposed findings 1, 2, 4, and 5 of the Protestant, United, are accepted except where they might specifically conflict with the findings stated in this Final Order. Its proposed finding 3 is

accepted with the exception that the record showed that the primary market area is served by four savings and loan association offices. Its proposed finding 6 and 7 are rejected as not supported by competent substantial evidence in the record adduced at the hearing. The Department's proposed findings 1 through 9 and 11 through 13 are accepted except where they might specifically conflict with the findings stated in this Final Order. The Department's proposed finding

10 is accepted except for the finding as to net income which is not supported by competent substantial evidence in the record and conflicts with the findings stated in finding 11.

CONCLUSIONS OF LAW

1. When an application for authority to open a branch office is filed, it is the applicant's responsibility to prove that the minimum statutory and regulatory criteria warranting the grant of authority are met. It is the duty of the Department to evaluate the application pursuant to Section 665.441(3), Florida Statutes, and the rules of the Department implementing that section and then to approve or deny the application in its discretion. This discretion is neither absolute nor unqualified, but is condition upon consideration of the criteria listed in Section 665.441(3), Florida Statutes, and the provisions of the rules of the Department. At the time this application was submitted, Rule 3C-21.09, Florida Administrative Code, with regard to the establishment of branch offices, was in effect. Subsequently, this rule was repealed and Rule

   3C-21.4-0, Florida Administrative Code, was promulgated, effective May 20, 1979. Since this application was submitted prior to the effective date of the new rule and the new rule was not admitted into evidence as incipient departmental policy, this application has been reviewed under the provisions of the old rule.

   
   

   The information which the aforementioned statute requires an applicant to submit to the Department is usually within the applicant's control. Therefore, should the Department find the information submitted inadequate, it will usually allow the applicant to supplement it. However, two of the criteria of Section 665.441(3), Florida Statutes, the establishment and maintenance of such office will not unduly injure any properly conducted existing association or federal association in the community where such branch office is proposed to be established and the advisability of the proposed branch, are not generally within an applicant's control. Therefore, if either of these criteria is not met, the Department cannot approve the application. In considering a branch application, an applicant's capacity to support such expansion is of major importance. The closing of a branch does not present the same risk of loss to the public as does the failure of a savings and loan association. Therefore, the judgment of the applicant as to the viability of a proposed branch will ordinarily be respected, provided that in the opinion of the Department the applicant's capacity is sufficient or will be enhanced by the new activity.

   
   

2. It is the opinion and conclusion of the Department that the statutory information requirements set forth in Section 665.441(3), Florida Statutes, ARE met.

   
   

   1. The proposed branch is to be located at the Promenades Mall on Harbor Boulevard just northeast of its intersection with U.S. Highway 41 in Port Charlotte, Charlotte County, Florida.

      
      

   2. The functions to be performed by the proposed branch are as follows: open new savings account; savings deposits and withdrawals; update passbooks; mortgage payments; issue travelers checks and money orders; mortgage applications; check cashing; VISA and Master Charge card applications and cash

      advances, AmeriCan Do Accounts, with its package of services, including direct deposit of Social Security checks and telephone transfer of funds; notary public services and other related services customarily furnished by financial institutions as permitted under the laws of the State of Florida and any other services as provided for in the future by the State of Florida.

      
      

   3. The Applicant's estimated volume of business is $8.5 million per year for each of the first three years of operation.

      
      

   4. The estimated annual expense of the proposed branch will be $438,350 for the first year, $1,047,400 for the second year, and $1,700,575 for the third year. These expenses will be paid out of earnings. The Applicant projects a new income after taxes for the first year of $39,327.00, of $190,886.00 for the second year, and of $311,557.00 for the third year. This income will be derived from interest on mortgage loans, fees on mortgage loans, interest on investments, and other fees and income.

      
      

   5. The application was accompanied by a budget of the proposed branch office for the first three years of operation.

      
      

   6. The Applicant's statement of need for the proposed branch was based upon the rapid population growth of the PMA, which is a result of net migration of new residents into the County; the large percentage of retiree population and the significant untapped savings potential. In addition, the Applicant intends to offer services not presently offered by the existing savings and loan association offices.

   
   

3. It is the opinion and conclusion of the Department that the establishment and maintenance of the proposed branch office will not unduly injure any properly conducted existing association or federal association in the community where such branch office is proposed to be established.

   
   

   During the last year for which date by office were available, the four savings and loan association branch offices located within the PMA have experienced excellent savings growth in attracting $112.8 million in total deposits. In addition, the savings and loan associations are multi-office, large institutions with substantial assets. Neither Protestant alleged that the establishment and maintenance of the proposed branch office in Port Charlotte at the proposed site will unduly injure their respective associations. The PMA's population has been growing rapidly, and is comprised of mainly retirees, who generally utilize the services of a savings and loan association more than other segments of the population. Based upon the above-stated factors and particularly the excellent savings growth of competing thrift institutions within the PMA, it is the Department's conclusion that the proposed branch would serve as a viable competitive alternative.

   
   

4. It is the opinion and conclusion of the Department that the establishment and maintenance of the proposed branch office is advisable.

   
   

   The Applicant, is a state-chartered savings and loan association and the fifth largest in the State of Florida. The Applicant's Second Quarter Financial Report dated March 31, 1979, shows substantial increases in total assets, mortgage loans, and total savings accounts, which performance record is indicative of competent, competitive, and efficient management. Its major lending area is Dade, Broward and Palm Beach Counties, however, it is currently providing residential mortgage funds under a $1 million commitment to General

   Development in and near the PMA. The Applicant also proposes to offer services not presently provided by other area savings and loan associations.

   
   

   The market and economic conditions cited above which show that the PMA can accommodate the proposed branch office without undue injury to existing thrift institutions also support the advisability of establishing the proposed branch office. In addition, the location of the proposed site, in the Promenades Mall, will be convenient to the PMA residents. The Department, therefore, concludes that the establishment and maintenance of the proposed branch office is advisable.

   
   

5. The Department has also evaluated the application for compliance with Rule 3C-21.40, Florida Administrative Code, effective after the date the application was submitted to the Department. The Department concludes that:

1. the Applicant is in compliance with the reserve requirements of Section 665.201, Florida Statutes, and Rule 3C-22.01, Florida Administrative Code;

   
   

2. the Applicant has a return on average assets of 0.5 percent or above for the preceding year;

   
   

3. the Applicant is in compliance with the liquidity requirement of Section 665.371, Florida Statutes;

   
   

4. the Applicant is in compliance with all applicable state and federal laws affecting its operations; and

   
   

5. the proposed name, American Savings and Loan -- Port Charlotte Branch

-- reasonably identifies the branch and is not likely to unduly confuse the public.

FINAL ORDER

Based upon the record, the Findings of Fact and Conclusions of Law recited above, it is established that the statutory and regulatory criteria to open a savings and loan association branch office have been met. It is thereupon

ORDERED that authority to establish a branch office at the Promenades Mall on Harbor Boulevard just northeast of its intersection with U.S. Highway 41, in Port Charlotte, Charlotte County, Florida, is hereby granted to the Applicant upon the following conditions:

1. That the branch office bear the name of American Savings and Loan Association of Florida -- Port Charlotte branch.

   
   

2. An exact site designation by street address and number be submitted to the Department, if available, prior to the proposed formal opening date for the branch office.

This approval shall expire six (6) months from this date if the branch office has not been opened, unless in the meantime a request for an extension of time has been requested by the Applicant and granted by the Department.

Until the conditions herein specified and other reasonable requirements of the Department of Banking and Finance are met, or if any interim development is

deemed by the Comptroller to warrant such action, the Comptroller shall have the right to alter, suspend, or withdraw this approval.

DONE AND ORDERED this 4th day of September 1979 in Tallahassee, Florida.

GERALD A. LEWIS, Comptroller of the State of Florida

The Capitol

Tallahassee, Florida 32301

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that a true and correct copy of the foregoing was sent by

U.S. Mail to Bernard R. Moseley and Earl Drayton Farr, Jr., 166 North Tamiami Drive, S.E., Port Charlotte, Florida 33952; William D. Branham and George Page, Post Office Box 1478, Sarasota, Florida 33578 and Shepard Broad and Patricia Lebow, Barnett Bank Building, 1108 Kane Concourse, Bay Harbor Islands, Florida 33154, this 4th day of September, 1979.

KARLYN ANNE LOUCKS

Assistant General Counsel Office of the Comptroller The Capitol

Tallahassee, Florida 32301

(904) 488-9896

Docket for Case No: 79-001109

Orders for Case No: 79-001109