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• The banking agencies have issued the attached 2005 host state loan-to-deposit ratios used to determine compliance with Section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act. These ratios update information published on August 26, 2004.
• Section 109 prohibits any bank from establishing or acquiring a branch outside its home state primarily for the purpose of deposit production. This prohibition applies to any bank branch controlled by an out-of-state bank holding company.
• As part of the test for compliance with Section 109, a bank’s statewide loan-to-deposit ratio is compared to the appropriate host state loan-to deposit ratio.

Distribution:
�౦��Ϸ����-Supervised Banks (Commercial and Savings)

Suggested Routing:
Chief Executive Officer
Compliance Officer

Note:
�౦��Ϸ���� Financial Institution Letters (FILs) may be accessed from the �౦��Ϸ����'s Web site at www.fdic.gov/news/financial-institution-letters/2005/index.html .

To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html .

Paper copies of �౦��Ϸ���� FILs may be obtained through the �౦��Ϸ����'s Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (1-877-275-3342 or (703) 562-2200).