Federation Bank and Trust Company
List of Deals
Federation Bank & Trust was established in 1923 by the labor leader and aviation enthusiast Peter J. Brady. It was incorporated in New York in May 1923 as the Federation Bank of New York. In 1926 the name was changed to Federation Bank & Trust Company.
On October 30, 1931, Federation was closed because of non-liquidity and depreciation of its assets. At the time of its closing, the bank had 30,000 depositors and $12.2 million in deposits. On October 3, 1932, the bank was reopened after being reorganized. As part of the reorganization, depositors were permitted to withdraw two-thirds of their deposits and received participation certificates for the remaining one-third.
Federation Bank had a strong affiliation with labor organizations from its beginnings, and it was largely from the efforts of trade union leaders that the bank reopened. In fact, the new chairman was William Green, president of the American Federation of Labor. In January 1933 it was also described as the largest labor bank in the United States.
The bank grew quickly in the years after reorganization. In October 1933, after reorganizing, Federation's deposits stood at $5.8 million. One year later they were at $9.1 million and by 1940 they were $12.4 million. In 1945 Federation reported deposits of $32.2 million.
In 1950 Federation announced that earnings for 1949 were the largest in the bank's twenty-five year history, at $405,853. It also opened its first branch office located in the Grand Central area of Manhattan.
During the 1950s Federation grew as the economy prospered in the post-War years. In 1951 deposits were $45.4 million, and by 1959 they had more than tripled to $159.9 million. In 1958 Federation merged with the Citizens Bank of Brooklyn. At the time, Federation had four offices: three in Manhattan and one in Queens. The merger provided Federation with its first office in Brooklyn.
Federation employed 400 people in 1963. Besides the main office in Columbus Circle, it operated eleven branches in the four boroughs of New York City. By 1963 deposits had grown to $222.6 million.