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F ederal reserve Bank
OF DALLAS

March 4, 1944

OPERATING RATIOS OF MEMBER BANKS

To Member Banks in the
Eleventh Federal Reserve District:

We are pleased to present to you the operating ratios of member banks
in the Eleventh Federal Reserve District for the year 1943, with com­
parative figures for the year 1942. In the report for 1943. the asset and
liability items are averages of the amounts taken from the reports of con­
dition for December 31, 1942, June 30, 1943, and October 18, 1943, while
the earnings and expense items are the amounts reported by member banks
for the calendar year. Because of the rapid growth in deposits at banks in
this district during recent years, all banks with average deposits of less
than |500,000 were placed in a single group, while banks with average
deposits of $10,000,000 and over were divided into two groups.
There was a substantial increase in Government security holdings by
member banks in all size groups during 1943, and since the additions to
holdings represented in large part short-term low-yielding securities, the
average rate of return on securities during the year was smaller than in
the preceding year. Due to the expansion in earning assets and the excess
of recoveries on assets previously charged off over losses, net profits after
taxes were higher than in 1942. While this increase was common among
all groups of banks, it was most pronounced in the case of banks having
deposits in excess of $5,000,000.
As in former years, the ratios of your bank have been entered on your
confidential copy to enable you to study your operations for the past two
years and to make comparisons with the operations of other banks of
similar size.
We trust that this information will be interesting and valuable to you.

Sincerely yours,
R. R. Gilbert
President

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

Operating Ratios of Member Banks for the Years 1943 and 1942
ELEVENTH FEDERAL RESERVE DISTRICT
BANKS WITH AVERAGE DEPOSITS (in thousands of dollars)
Under $500
1943

1942

144

122

7.0
5.1
3.4

3.2

Your Bank

1943

84

1942

1942

6.8
6.3
3.4

1943

Number of Banks

~ )0- $999

\000 - $1,999

$2,000 - $4,999

$5,000 - $9,999

$10,000-$24,999

Over $25,000

All Groups

1943

1942

1943

1942

1943

1942

1943

1942

1943

1942

1943

1942

152

148

132

116

64

39

30

32

25

26

19

567

566

8.5
8.8
4.6

8.9
7.2
4.1

8.9
9.3
4.1

9.5
8.3
4.3

10.3
9.4
4.1

9.7
7.7
4.3

9.7
8.9
2.8

9.6
6.3
3.3

11.9
10.0
4.1

7.8
5.6
3.3

11.1
9.4
3.5

7.7
5.9
3.7

9.1
8.8
4.0

8.6
6.8
3.9

1
2
3

4.2
1.1
1.0

2.6
.8
.8

3.5
1.0
.8

2.3
.7
.7

3.0
.9
.8

2.1
.6
.6

2.8
.8
.6

2.0
.6
.5

2.4
.7
.4

1.7
.5
.5

2.0
.5
.4

1.6
.5
.4

1.8
.5
.4

2.4
.7
.7

3.3
.9
.8

4
5
6

12.3
75.2
12.5
100.0
5.9
*

22.7

27.4
53.8
18.8
100.0

23.3
59.4
17.3
100.0

27.6
50.8
21.6
100.0

21.4
59.3
19.3
100.0

33.6
41.4
25.0
100.0

27.7
50.2
22.1
100.0

39.2
36.5
24.3
100.0

26.3
51.7
22.0
100.0

44.7

60.3
17.0
100.0
7.7
#

18.0
66.1
15.9
100.0
7.7
*

34.7
20.6
100.0

31.7
46.9
21.4
100.0

26.4
54.7
18.9
100.0

19.5
64.0
16.5
100.0

8.9
*

7.6

10.4

9.0

10.3

8.5

8.5

7.4

2.1

3.4

3.6

5.1
2.4

42

3.4

10.8
3.0

8.6

.2

2.7

2.6

2.9

39.9
2.0
30.1

39.2
2.7
30.8

39.6
2.3
30.8
72.7

37.9
2.8
30.6
71.3
28.7
+ 3.1

37.9
3.3
31.9
73.1
26.9
+ 3.2

4.4
27.4

37.2
5.1
30.4
72.7
27.3
.8
4.7
21.8

36.0
5.8
33.0
74.8
25.2
2.5
4.1
18.6

35.4
4.1
31.0
70.5
29.5
+ 1.8
4.3
27.0

36.6
5.6
34.5
76.7
23.3
.7
4.7
17.9

31.8
4.6
37.4
73.8
26.2
+ .0
5.5
20.7

38.6
2.6
30.6
71.8
28.2
+ 4.6
4.4
28.4

38.2
3.6
31.6
73.4
26.6
.2
4.5
21.9

7
8
9
10
11
12
13
14
15
16
17
18
19
20

SU M M AR Y R A T IO S

Percentage of Total Capital Accounts
1. Net current earnings.............................
2. Net profits after taxes...........................
3. Cash dividends declared........................
Percentage of Total Assets
4. Total earnings......................................
5. Net current earnings.............................
6. Net profits after taxes...........................
SOURCES AND DISPOSITION OF EARNINGS
Percentage of Total Earnings
7. Interest and dividends on securities.......................................
8. Interest and discount on loans................................................
9. All other earnings...................................................... .....—
Total earnings....................................................................
10 .

11.
12.

1.0
.9

14.5

72.8
100.0

12.7
100.0

100.0

5.4

Service charges on deposit accounts (Included in item 1 0 )* .

*

Trust department earnings (Included in item 1 0 ) * ...............

*

4.5
26.3

40.0
2.9
31.7
74.6
25.4
1.3
4.1
20.0

2.2
.0

2.8
+ -1

1.9
+ .0

2.7
.0

1.9
.0

2.7
.0

1.5
.0

2.2
.1

1.6
.0

2.0
.2

1.9
.1

1.7
.0

+ .1

1.7
.0

1.8
.0

2.5
.0

21
22

7.9
+ .6

8.4
+ .0

6.8
+ .5

7.5
+ .3

6.4
+ .5

6.8
+ -2

5.9

6.8
+ A

5.9
+ .3

5.6
—

4.7

4.6
+ .1

4.0
+ .2

3.6
+ -2

6.4

+ .5

+ .5

7.1
+ .1

23
24

DISTRIBUTIONS OF TOTAL ASSETS
Percentage of Total Assets
25. Government securities.....................
26. Other securities................................
27. Loans...............................................
28. Real estate assets..............................
29. Cash assets.....................................
30. All other assets.................................

16.7
3.9
33.7
1.3
44.2
.2

9.8
7.4
39.0
1.9
41.8
.1

22.8
6.2
26.3

11.7
9.9
33.1
1.5
43.7
.1

25.4
7.6
23.2

28.6
6.8
21.3
42.3
.0

16.0
10.6
26.0
1.6
45.7
.1

34.1
6.6
15.5
1.3
4 2 .4
.1

19.4
11.5
22.0
2.2
44.8
^ .1

39.2
5.2
15.2
1.2
39.1
.1

22.4
5.9
23.6
1.7
46.2
.2

43.7

42.5
.3

14.2
11.3
28.7
1.4
44.2
.2

28.3
4.4
23.2
2.1
41.7
.3

26.5
6.2
23.6
1.1
42.5
.1

13.7
9.4
31.4
1.7
43.6
.2

25
26
27
28
29
30

CAPITAL AND DEPOSIT RATIOS (In Percentage)
31. Capital accounts to total assets..............................................................
32. Capital accounts to total assets less Governments and cash assets...........
33. Capital accounts to total deposits...........................................................
34. Time to total deposits............................................................................

14.5
43.4
17.3
4.1

17.3
37.9
21.6
7.1

11.7
29.0
13.4
6.2

7.9
29.8
8.7
4.4

9.7
25.8
10.8
7.0

6.4
26.1
6.9
5.6

8.6
25.0
9.5
11.2

6.3
32.5
6.8
9.0

7.7
23.7
8.4
14.8

5.1
27.9
5.4
10.6

6.6
23.6
7.1
13.6

6.2
23.4
6.7
10.3

8.5
31.7
9.6
5.4

11.7
29.3
13.7
8.1

31
32
33
34

39.5
2.4
30.2
72.1
27.9

13.
14.
15.
16.
17.
18.
19.

Salaries and wages.................................................................
Interest on time and savings deposits.................................—
All other expenses................................................................
Total expenses................... ........................................ ~....
Net current earnings........................................................ .....
Net charge-offs (Net recoveries -f-).....................................
Taxes on net incomes................................ .. .........................
20. Net profits after taxes........................................................... .

+ 2 .9

RATES OF EARNINGS ON LOANS AND SECURITIES
Percentage of Total Securities
21. Interest and dividends on securities.................................
22. Net losses on securities (Net recoveries and profits -f-) ...
Percentage of Total Loans
23. Earnings on loans.............................................................
24. Net losses on loans (Net recoveries + ) .............. ............

—

30.1

27.3
+ .2
4.7
22.8

+ 6.5
3.9
29.9

37.5
3.4
31.1
72.0
28.0
+1.2
4.4
24.8

77

J
J

+ 6.7
4.6

1.0
43.6
.1
9.7

33.0
10.9
4V

nr

.... ~ -3= ---—
~ -

27.3

1.0

* Banks reporting zero amounts were excluded in computing this average and figures are not shown where there wei. jwer than three nks in a group.
Note: Balance sheet figures used as a basis for ratios are averages of amounts reported December 31, 1942, June 30, 1943, and October 18, 1943.

+

-5

1.0

2.9
27.2

31.4
3.5

32.3
67.2

32.8
+ 2 .3
7.3

27.3

1.5

3.3
14.4

1.4
37.0
.2
4.7
27.8
4.9

3.0


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102