Branch Banks

Miss. Code Ann. tit. 81, ch. 7

in effect

Miss. Code Ann. § 81-7-1 Application and procedure for establishment of branch banks; appeal; judicial review.

Banks may establish branch banks under the restrictions prescribed in this chapter, but no branch bank may be established unless the parent bank shall have first obtained from the commissioner a certificate that the public convenience and necessity will be promoted by the establishment of such branch bank. Applications seeking permission for the establishment of branch banks shall be filed with the commissioner and shall be in such form and contain such information as the commissioner by regulation may require. A separate application shall be filed for each branch bank proposed to be established, and each application shall be accompanied by the fee required by statute, which shall be transferred by the commissioner into the maintenance fund of the Department of Banking and Consumer Finance. Upon receipt of such application, the commissioner shall immediately give written notice of the filing of said application to all banks having their domicile or a branch bank or branch office in the county in which the applicant bank maintains its principal office, together with all banks, branch banks or branch offices located in the county in which the proposed branch bank is to be located, and to such other banks and interested parties that, in the opinion of the commissioner, may have an interest in the application; and the commissioner shall also at the same time publish such notice once in a newspaper having a general circulation in the county in which the proposed branch bank is to be located. Any interested party may file a written protest to said application with the commissioner within thirty (30) days from the date of the mailing and publishing of said notice. Any protest shall specify the interest of the protestant in the application and state the grounds for the protest. If no protest is filed within the time prescribed, the commissioner shall investigate the facts and render a final decision within sixty (60) days after receipt of the application as to whether the public convenience and necessity requires the establishment of the proposed branch bank, said decision to be based upon the results of the commissioner’s investigation, the contents of the application and any additional evidence which the commissioner may request the applicant to furnish. If his decision is favorable to the applicant, he shall immediately grant the applicant a certificate to establish and operate the branch bank. If the commissioner’s decision shall be unfavorable to the applicant, he shall immediately furnish the applicant bank a copy of his final decision. Appeals from an unfavorable final decision may be taken by the applicant bank to the State Board of Banking Review by filing a notice of appeal with the commissioner within ten (10) days after the commissioner has rendered his final decision. The commissioner shall inform the board of such appeal, and the board shall hold a hearing on the matter within sixty (60) days after such notice is filed. At the hearing the board shall consider the findings and decision of the commissioner, shall hear such oral testimony as the commissioner may wish to give and shall also receive information and testimony from the applicant bank. The board may also consider such other information and evidence as it deems necessary to dispose of the application. The board shall render a decision within sixty (60) days after the conclusion of the final hearing on the matter. If the board’s decision is favorable to the applicant, the commissioner shall immediately grant to the applicant a certificate to establish and operate the branch bank. If the board’s decision is unfavorable to the applicant, the commissioner shall immediately furnish the applicant a copy of the board’s final decision. Appeals from an unfavorable board decision may be taken by the applicant bank within ten (10) days from the date of the board’s order to the chancery court of the county in which the proposed branch bank is to be located. Except as otherwise provided herein, appeals by an applicant bank from the State Board of Banking Review to a chancery court shall be taken in the manner set forth in Section 81-3-13(2), which governs appeals from the State Board of Banking Review in regard to the incorporation of a new bank. If a protest to an application to establish a branch bank is received by the commissioner within the prescribed time, he shall investigate the facts and submit said application, the results of his investigation, and his recommendations as to the disposition of said application to the State Board of Banking Review within sixty (60) days after receipt of the application. The board shall hold a hearing on the matter within one hundred twenty (120) days after the application is received and render a final decision thereon within sixty (60) days after the conclusion of the final board hearing. Except as otherwise provided herein, the board shall conduct its proceedings in accordance with Section 81-3-13(1), which prescribes the procedures for actions by the board on applications to establish new banks. Appeals from any final decision of the State Board of Banking Review acting upon a contested application may be taken by the applicant or any interested organization, person or persons who have participated in the proceeding and feel aggrieved by such decision. Such appeals shall be taken within ten (10) days from the date of the board’s order to the chancery court of the county in which the proposed branch bank is to be located. Except as otherwise provided herein, appeals from the State Board of Banking Review to a chancery court shall be taken in the manner set forth in Section 81-3-13(2), which governs appeals from the State Board of Banking Review in regard to the incorporation of a new bank. Notwithstanding the foregoing and any other provision of law to the contrary, if a branch bank has not been established and is not in operation within two (2) years from the date of the certificate approving such branch bank or within two (2) years from the date upon which any appellate litigation with respect to such certificate has been concluded, the certificate shall expire. Provided, however, the State Board of Banking Review may extend for good cause shown said two-year period a maximum number of two (2) times for periods not exceeding six (6) months each. This provision shall in no way affect certificates issued prior to March 21, 1980. Notwithstanding the foregoing and any other provision of law to the contrary, the commissioner may grant by regulation eligible banks, as defined in Section 81-3-1, certain preferences with respect to new branch activity which may include but are not limited to an expedited approval process.

Miss. Code Ann. § 81-7-3 How branch banks to be named.

The name of all branch banks in this state shall include the name of the parent bank, followed by the name of the municipality in which the branch is domiciled, followed in turn by the word “branch”, and such name shall be prominently displayed upon the branch bank premises. Where an established bank is annexed or merged as a branch bank, then the name of the bank so annexed or merged may be retained if followed by appropriate words indicating it as a branch of the parent bank.

Miss. Code Ann. § 81-7-5 Repealed.

Repealed by Laws, 1986, ch. 469, § 14, eff from and after July 1, 1986. [Codes, 1942, § 5228; Laws, 1934, ch. 146; 1936, ch. 165; 1942, ch. 261; 1966, ch. 253, § 1; 1980, ch. 312, § 35]

Miss. Code Ann. § 81-7-7 Establishment of branch banks de novo or by merger or consolidation.

For purposes of this section and Section 81-7-8, “branch bank de novo” or “branching de novo” refers to a branch established by the opening of a new branch bank and includes a branch bank or branch office acquired from another bank without acquiring substantially all of the assets of the other bank. Subject to the restrictions contained in Section 81-7-8, a bank may establish: Branch banks de novo within the applicable radius from the parent bank, as specified in subsection (5) of this section, subject to compliance with the procedures set forth in Section 81-7-1; Branch banks by the merger or consolidation with, or the purchase of all or substantially all of the assets of, any other bank located in Mississippi; and Branch banks de novo in accordance with subsection (3) of this section, subject to compliance with the procedures set forth in Section 81-7-1. Compliance with the procedures set forth in Section 81-7-1 is not required to establish branch banks under paragraph (b) of this subsection. Subject to the restrictions contained in Section 81-7-8, after the establishment of a branch bank or branch banks outside of the applicable radius from the parent bank (of the surviving bank for branching purposes), as specified in subsection (5) of this section, as a result of a transaction pursuant to subsection (2)(b) of this section, a bank may establish branch banks de novo: In any county where any such branch bank established under subsection (2)(b) is located; and If any such branch bank established under subsection (2)(b) is located in a town or city situated in two (2) or more counties, in any of such counties; and If any such branch bank established under subsection (2)(b) is located in an area designated as a Metropolitan Statistical Area by the United States Office of Management and Budget or any successor designation based upon substantially the same criteria, throughout such area so designated, or if such area is not entirely located in Mississippi then throughout the portion of such area located in Mississippi. The bank resulting from a merger, consolidation or purchase may retain and operate as branch banks any of the parent offices, branch banks or branch offices of the banks participating in the transaction. For the purposes of this section, the applicable radius from the parent bank shall be: One hundred (100) miles, from July 1, 1986, through June 30, 1987; One hundred fifty (150) miles, from July 1, 1987, through June 30, 1988; Two hundred (200) miles, from July 1, 1988, through June 30, 1989; The geographical boundaries of the State of Mississippi, from and after July 1, 1989.

Miss. Code Ann. § 81-7-8 Restrictions upon establishment of branch banks.

A bank chartered after October 16, 1985, may neither establish a branch by merger, consolidation or purchase as provided in Section 81-7-7(2)(b) nor become a branch as the result of such a transaction, unless such bank has been in continuous operation as a state or federally chartered bank, savings association or savings bank for at least its previous five (5) years of existence. For purposes of the five-year requirement, a bank which has been involved in an interim bank merger shall be deemed to have been in operation from the date it began operation under the original charter. “Interim bank merger” means the technique by which a bank holding company obtains a new bank charter solely for the purpose of merging an existing bank into the bank for which the charter is sought or solely for the purpose of merging the bank for which the charter is sought into an existing bank. A bank is prohibited from establishing a branch by merger, consolidation or purchase, as provided for in Section 81-7-7(2)(b), if upon such merger, consolidation or purchase the surviving bank and all of its branch banks and branch offices located in Mississippi would have combined deposits which exceed twenty-five percent (25%) of the total deposits of all offices located in Mississippi of commercial banks, savings banks, savings and loan associations and credit unions. Determination of the percentage of total deposit concentration limited by this subsection shall be made based on data contained in the most recent call reports or reports of condition furnished immediately prior to the merger, consolidation or purchase to the appropriate regulatory officials by the banks involved in the merger, consolidation or purchase. “Appropriate regulatory officials” means, for any national bank in Mississippi, the Comptroller of the Currency of the United States or the Board of Governors of the Federal Reserve System of the United States; “appropriate regulatory officials” means, for any state-chartered bank in Mississippi, the Commissioner of Banking and Consumer Finance. In determining total deposits of all offices located in Mississippi of commercial banks, savings banks, savings and loan associations and credit unions, data shall be used as furnished by the Department of Banking and Consumer Finance as of the most recent calendar quarter for which complete data are available. For the purpose of furnishing such data, the department shall obtain from appropriate federal regulatory agencies the most recent data available regarding the deposits of federally chartered institutions. For purposes of this subsection and subsection (4) of this section, “deposits” mean all individual, partnership, corporate and government deposits (including, without limitation, all demand, savings, time, certificates of deposit and other similar depository accounts of individuals, partnerships, corporations and governmental bodies). In the sale of any insolvent bank made pursuant to the provisions of Chapter 9, Title 81, Mississippi Code of 1972, or pursuant to federal banking laws, the restrictions contained in subsections (1) and (2) of this section shall not apply to prevent the acquisition of such insolvent bank by another bank; and, additionally, neither restriction shall apply to prohibit any purchasing bank from retaining any established branches of the insolvent bank which the purchasing bank would otherwise be prohibited from establishing. For branching purposes, a parent bank is considered to be located where it was domiciled on June 30, 1986. For any bank opening for business after that date, a parent bank shall be considered for branching purposes to be located where it is first domiciled. Upon a merger, consolidation or purchase as provided for in Section 81-7-7(2)(b), the parent bank for branching purposes of the surviving bank shall be considered to be at the location of the parent bank for branching purposes of the bank involved in such transaction which had the greater amount of deposits based on data contained in the most recent call reports or reports of condition furnished immediately prior to the merger, consolidation or purchase to the appropriate regulatory officials referred to in subsection (2) of this section. In order for a parent bank to establish a branch bank through de novo branching, merger, consolidation or purchase after June 30, 1986, the parent bank shall have prior to the approval of any such branch application, and shall be expected to maintain, primary capital and total capital ratios equal to or above the minimum acceptable ratios established by the federal bank regulatory agency which primarily regulates and examines such bank. The components of capital and the method of computing the capital ratios shall be those defined by the applicable federal bank regulatory agency.

Miss. Code Ann. § 81-7-9 Capital requirements for branch banking system.

All parent banks permitted to establish branch banks shall have capital sufficient to meet the requirements of the commissioner and/or other supervising federal regulatory agencies.

Miss. Code Ann. § 81-7-11 Issues of stock for annexation of branches.

Subject to the provisions of subsections (2), (3) and (4) of Section 81-7-8, a bank may annex actively operating unit banks as branch banks by exchanging its own increase of common or preferred capital shares, issued for such annexation purpose, for the capital shares of the bank proposed to be annexed as a branch. Also a bank may annex branch banks by issuing additional common or preferred shares to be exchanged for the assets of closed banks, including assets other than cash. All transactions authorized by this section shall first be submitted in writing in full detail to the commissioner, and shall not be effective until he shall have made a careful analysis and investigation of the soundness of the proposed transaction, and shall have approved the same in writing. In no instance, however, shall the bank building and fixtures of the operating or closed bank, proposed to be annexed as a branch bank, represent in value more than one-third (1/3) of the amount of stock issued by the parent bank for the purpose of such annexation. For purposes of applying the restrictions of subsections (2) and (3) of Section 81-7-8, the annexation of an actively operating unit bank described herein shall be considered the establishment of a branch by merger.

Miss. Code Ann. § 81-7-13 Discontinuance and removal of branch banks.

No branch bank in this state may be discontinued or abandoned without the consent in writing of the commissioner first obtained. By and with such consent first obtained, branch banks may be moved from one municipality to another within the restrictions provided in this chapter as to branching de novo. Any established unit bank (branch banks not included) may move from one municipality to a larger municipality, according to the latest federal census, within the county of its domicile, with the written consent and approval of the commissioner. However, any proposed movement of an established unit bank shall be subject to each and every restriction applicable to the location of branch banks as provided in this chapter, and, before giving any such consent and approval, the commissioner shall give to each bank in the county ten (10) days’ notice in writing of the application of any bank to move its domicile.

Miss. Code Ann. § 81-7-15 Examination of branch banks.

The state comptroller shall formulate rules and regulations for the examination of branch bank systems, including provisions for the simultaneous examination of a parent bank and all of its branches, and such rules and regulations when reduced to writing shall be enforced by him as other provisions of the Mississippi Banking Law.

Miss. Code Ann. § 81-7-17 National banks may establish branches.

National banks are hereby granted the right and authority to establish branches in this state, with the same rights and under the same restrictions as state banks establishing branches. But where federal statutes and regulations impose different restrictions, including minimum capital stock requirements, from those imposed by this state, then such federal restrictions may apply to such national banks instead of those of this state.

Miss. Code Ann. § 81-7-19 Operation of multibank holding companies permitted; definitions; restrictions; divestment; enforcement.

As used in this section, unless the context otherwise requires: “Appropriate regulatory officials” means, for any national bank in Mississippi, the Comptroller of the Currency of the United States; “appropriate regulatory officials” means, for any state bank in Mississippi, the Commissioner of Banking and Consumer Finance or the Federal Deposit Insurance Corporation or the Board of Governors of the Federal Reserve System of the United States. “Bank” means any person chartered to do a banking business subject to the laws of this or any other jurisdiction. “Bank holding company” means any person which is required to register as a bank holding company with the Board of Governors of the Federal Reserve System under the federal Bank Holding Company Act of 1956, as amended. “Person” means an individual, corporation, firm, trust, estate, partnership, joint venture or association. “Interim bank merger” means the technique by which a bank holding company obtains a new bank charter solely for the purpose of merging an existing bank into the bank for which the charter is sought or solely for the purpose of merging the bank for which the charter is sought into an existing bank. “Control” means the direct or indirect ownership of five percent (5%) or more of any class of voting securities of a bank. A bank holding company acting directly or indirectly may not acquire any of the shares of any bank in Mississippi unless such bank has been in operation for at least five (5) years, except in the following instances: The acquisition of shares of a bank by a bank holding company which before the acquisition owned more than fifty percent (50%) of the shares of the bank; An interim bank merger for the purpose of acquiring a bank which has been in operation for at least five (5) years; The acquisition by a bank affiliated with a bank holding company of stock which has been given as collateral security to the bank upon a loan contracted in good faith where the acquisition is necessary to prevent loss upon such loan and the making of the loan and the acquisition of such stock are in the ordinary course of business and not as a means of circumventing this section; however, the stock so purchased or acquired shall be sold or disposed of by the bank at public or private sale within a period of one (1) year from the acquisition thereof, unless the Commissioner of Banking and Consumer Finance extends such period because he deems that an additional period or periods are required to permit the disposition of such stock without undue risk or loss; The acquisition of an insolvent bank where the sale is made pursuant to the provisions of Chapter 9, Title 81, Mississippi Code of 1972, or pursuant to federal banking laws, or the acquisition of a bridge bank pursuant to federal banking laws; The acquisition of shares in any bank by another bank acting solely in a fiduciary capacity in the ordinary course of its trust business and not for the purpose of circumventing this section; and The acquisition of shares of a bank by a person which will become a bank holding company solely by reason of such acquisition. A bank holding company must divest itself of stock in a bank in Mississippi if, upon acquiring directly or indirectly twenty-five percent (25%) or more of any class of voting securities of such bank, the bank holding company fails within six (6) months after such acquisition to acquire stock sufficient to lawfully vote a merger of the banks or bank holding companies involved in the transaction, even though such merger is not required; however, such acquiring bank holding company may retain ownership of less than twenty-five percent (25%) of any class of voting securities of such bank. The six-month time period provided herein may be extended, upon a showing of reasonable cause therefor, by the Commissioner of Banking and Consumer Finance. This subsection (3) shall not apply to a bank holding company which has lawfully acquired, or has an application pending to acquire, five percent (5%) or more of any class of voting securities of a bank prior to October 1, 1989, with respect to the stock of that particular bank. A bank holding company is prohibited from acquiring, directly or indirectly, ownership of stock of a bank in Mississippi if the effect of such acquisition of stock is that the acquiring bank holding company would control, directly or indirectly, banks in Mississippi having in the aggregate more than twenty-five percent (25%) of the total deposits of all offices located in Mississippi of commercial banks, savings banks, savings and loan associations, and credit unions. Determination of the percentage of total deposit concentration limited by this subsection shall be made based on data contained in the most recent call reports furnished immediately before the acquisition of stock of such bank to the appropriate regulatory officials by the banks involved in the transaction. In determining total deposits of all offices located in Mississippi of commercial banks, savings banks, savings and loan associations and credit unions, data shall be used as furnished by the Department o f Banking and Consumer Finance as of the most recent calendar quarter for which complete data are available. For the purpose of furnishing such data, the department shall obtain from appropriate federal regulatory agencies the most recent data available regarding the deposits of federally chartered institutions. For purposes of this subsection, “deposits” means all individual, partnership, corporate and government deposits (including, without limitation, all demand, savings, time, certificates of deposit and other similar depository accounts of individuals, partnerships, corporations and governmental bodies). The restriction contained in this subsection shall not apply to prohibit transactions described in subsection (2)(c), (d), (e) and (f). The Commissioner of Banking and Consumer Finance shall have the power to enforce the prohibitions of this section by seeking to enjoin any violation, by issuing cease and desist orders, by imposing administrative fines or penalties, and by any other remedies that are provided by law. An out-of-state bank holding company, as defined in Section 81-8-1, shall comply with Chapter 8, Title 81, Mississippi Code of 1972, and this section. For purposes of this section, the acquisition of shares of a bank holding company shall be considered the indirect acquisition of shares of the bank or banks controlled by such bank holding company.

Miss. Code Ann. § 81-7-21 Certain branches not affected.

None of the provisions of Sections 81-7-1, 81-7-3, 81-7-7 and 81-7-9 of this chapter shall be mandatory on branch banks heretofore established and in operation on April 2, 1934, nor on the parent bank of such branch banks so far as such branch banks are concerned, but such parent and branch banks shall continue to operate under the laws in effect immediately preceding the enactment of this chapter, so far as such branch banks already established are concerned. However, when any parent bank now in existence shall hereafter establish a branch bank, it shall so far as such branch banks hereafter established are concerned, comply with this chapter in all respects.

Miss. Code Ann. § 81-7-23 Application of chapter.

The provisions of this chapter apply to branching within the State of Mississippi by: Banks chartered by the State of Mississippi or national banks having their headquarters in the State of Mississippi, and Out-of-state banks which maintain a branch in the State of Mississippi subsequent to an interstate branching transaction pursuant to Chapter 23, Title 81, Mississippi Code of 1972, known as the “Interstate Bank Branching Act.”

Source: Public.Resource.Org MS CodeURL: https://unicourt.github.io/cic-code-ms/transforms/ms/ocms/r78/gov.ms.code.title.81.htmlFetched: 6/10/2026