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federal

reserve

bank

OF DALLAS

March 10,1945

OPERATING RATIOS OF MEMBER BANKS

To Member Banks in the
Eleventh Federal Reserve D istrict:

We are pleased to present to you the operating ratios o f member banks
in the Eleventh Federal Reserve District for the year 1944, with compara­
tive figures for the year 1943. In the report for 1944, the asset and liability
items are averages of the amounts taken from the reports o f condition for
December 31, 1943, June 30, 1944, and December 30, 1944, while the earn­
ings and expense items are the amounts reported by member banks for the
calendar year. Because o f the continued rapid growth o f deposits in this
district, many of the banks have shifted to a larger size deposit group and
this fact should be taken into consideration in studying the ratios fo r the
various groups.
During the past year, member banks continued to add substantially to
their holdings o f Government securities and in all size groups holdings of
Government securities constituted a larger percentage o f total assets than
in the preceding year. In most groups, the percentage o f cash assets declined
further, indicating that member banks are moving toward a fuller invest­
ment of their assets. The earnings o f member banks generally increased
further during 1944, and despite an increase in expenses, net current earn­
ings constituted a larger percentage of total earnings than in the preceding
year. Although taxes on net incomes in all size groups increased consider­
ably, net profits after taxes were generally higher than in the preceding
year.
As in form er years, the ratios of your bank have been entered On your
confidential copy to enable you to study your operations fo r the past two
years and to make comparisons with the operations of other banks o f
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)

O perating Ratios o f M em ber Banks for the Years 1944 and 1943
ELEVENTH FEDERAL RESERVE DISTRICT
BANKS WITH AVERAGE DEPOSITS (in thousands o f dollars)
Under $500

Number of Banks

1943

1944

L943

1944

1943

1944

1943

1944

1943

1944

1943

1944

1943

1944

1943

45

84

92

122

155

148

171

116

38

39

39

32

31

26

571

567

7.2*
6.4*
3.4

9.4
9.4
4.5

8.7*
9.1*
4.8*

12.3
11.0
4.9

92*
9.5*
4.2*

13.3
11.7
4.4

10.8*
10.0*
4.3*

16.8
12.3
4.0

9.7
8.9
2.8

13.5
10.5
3.4

11.9
10.0
4.1

13.0
10.5
3.3

11.1
9.4
3.5

12.2
10.6
4.3

9.1
8.8
4.0

1
2
3

2.9
1.0
.7

1943

1944

8.3
5.9
3.1

1944

$500 - $9*

3.3*
1.0
.9

2.4
.8
.8

2.7*
.8
.8

2.2
.8
.7

2.3
.7
.7

2.0
.7
.6

2.2*
.6
.6

2.0
.7
.5

2.0
.6
.5

1.8
.6
.5

1.7
.5
.5

1.5
.6
.4

1.6
.5
.4

2.1
.8
.7

2.4
.7
.7

4
5
6

15.6
71.0
13.4
100.0

25.1
58.5
16.4
100.0

22.6*
60.4*
17.0
m o
7.7*
*•

27.5
53.8
18.7
100.0

34.2
46.2
19.6
100.0

39.9
2.1*
129.8*
71.8* {
28.2*
i -6.8*
4.6
30.4*
i

37.2
1.3
27.0
65.5
34.5
+ 2.8
5.4
31.9

30.0
3.9
30.3
64.2
35.8
+ 3.0
9.8
29.0

44.7
34.7
20.6
100.0
5.1
2.4
31.4
3.5
32.3
67.2
32.8
+ 2 .3
7.3
27.8

31.3
49.8
18.9
100.0

38.4
1.7

39.2
36.5
24.3
100.0
103
3.4
35.4
4.1
31.0
70.5
29.5
+ 1 .8
4.3
27.0

49.2
31.2
19.6
100.0

39.4*
2.3*
29.6*
71.3*
28.7*
+ 2 .3 *
4.5
26.5*

33.6
41.4
25.0
100.0
10.8
3.0
37.9
3.3
31.9
73.1
26.9
+ 3 .2
2.9
27.2

44.1
31.5
24.4
100.0

39.6
1.6
26.9
68.1
31.9
— 3.3
6.2
22.4

27.5*
51.0*
21.5*
100.0
103*
2*
37.8*
2.7*
30.3*
70.8*
, 29.2*
+ 3 .1
4.4
27.9*

39.9
38.2
21.9
100.0

6.7
**

14.2*
73.5*
12.3*
100.0
5 2*
•*

26.4
54.7
18.9
100.0
8.5
2.6
38.6
2.6
30.6
71.8
28.2
+ 4 .6
4.4
28.4

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

1.5

1.5

1.8

4- -1

—

1.8
—

21
22

4.0
.2

5.9
+ .3

6.4
+ -5

23
24

Your Bank

$1,000- $1,999

$2,000- $4,999

$5,000- $9,999

$10,000-$24,999

$25,000 and Over

All Groups

SUMMARY RATIOS
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 O F EARNINGS
Percentage of Total Earnings
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

Interest and dividends on securities....... ...............................
Interest and discount on loans..........................................
All other earnings...................................................................
Total earnings....................................................................
Service charges on deposit accounts (Included in item 9 )**
Trust department earnings (Included in item 9 )* * .............
Salaries and wages........... .... 1 ......................................
.....
Interest on time and savings deposits....................................
All other expenses...................................................................
Total expenses.....................................................................
Net current earnings..................................... ..........................
Net charge-offs (— ) or recoveries (-| -)................................
Taxes on net incomes.............................................................
Net profits after taxes.................................... ........................

100.0

100.0

8.1
••

-1
30.9
+ 7.1
5.0
33.0

\

RATES OF EARNINGS ON LOANS AND SECURITIES
Percentage of Total Securities
21. Interest and dividends on securities....................... ..............
22. Net losses (— ) or recoveries and profits ( + ) on securities........

2.1

1.9

2.2
—

+

+

8.2*
.6

+ 1.2

.1

9J8
**

27.3*
54.0*
18.7*
100.0
8.8*
.2*
39.5*
2.3
30.3*
72.1*
27.9*
+ 6 .5
4.0*
30.4*

1.8

i 1.9

35.6
2.0
28.1
65.7
34.3
+ 1.7
4.9
31.1

1.7

1.9
—

—

—

10.0
**

10.5
2.8

34.1
2.9
27.3
64.3
35.7
— .5
6.8
28.4

1.7

1.6*
—

—

— .1

6.1*
.6*

+

9.0
3.7

32.8
4.0
29.7
66.5
33.5
+

5.9
27.7

1.7

5.9
2.0

93
3.4

36.2
2.1
28.0
66.3
33.7
+ 2.3
5.6
30.4

1.6
—

— .2

1.5*
— .1

4-

5.9
.3

4.4
4- .2

4.7
4- -5

+

45.1
4.2
15.3
34.1
1.2
.1

39.2
5.2
15.2
39.1
1.2
.1

49.2
2.1
14.6
33.0
1.0
.1

43.7
3.3
14.4
37.0
1.4
2

33.0
4.2
22.5
39.4
.8
.1

26.5
6.2
23.6
42.5
1.1
.1

25
26
27
29
28
30

5.0
31.1
5.3
10.0

5.1
27.9
5.4
10.6

4.3
27.4
4.5
9.3

4.7
27.8
4.9
8.0

6.8
31.0
7.5
4.4

8.5
31.7
9.6
5.4

31
32
33
34

Percentage of Total Loans
23. Earnings on loans................. .......................................... ...............
24. Net losses (— ) or recoveries ( + ) on loans................................

7.5

— .3

+

6.8

1 7.1*
H .5

+

6.1
-2

+

6.6*
.5

+

5.5
*2

+

5.8
.3

+

3.6
.8

+

DISTRIBUTIONS OF TO TA L ASSETS
Percentage of Total Assets
25.
26.
27.
28.
29.
30.

Government securities.....................................................................
Other securities................................................................................
Loans.......... ...... ............... .............................................................. Cash assets.......................................................................................
Real estate assets.............................................................................
All other assets........................ - ........ .............................................

19.4
2.3
32.6
44.8
.8
.1

16.7
3.9
33.7
44.2
1.3
.2

27.2
3.9
26.1
42.1
.7

12.1
42.2
14.2
2.9

14.5
43.4
17.3
4.1

9.0
37.2
10.1

—

22.8
6.2
26.3
43.6
1.0
.1

29.9
4.4
24.9
40.0
.7
.1

25.4
7.6
23.2
42.5
1.0
.3

35.5
4.9
20.3
38.6
.7

40.0
5.6
15.4
38.3
.7

—

28.6
6.8
21.3
42.3
1.0
—

—

34.1
6.6
15.5
42.4
1.3
.1

9.7
33.0
10.9
4.1 ,

6.8
28.8

7.9
29.8
8.7
4.4

5.6
27.5
6.0
3.9

6.4
26.1
6.9
5.6

5.1
29.6
5.4
8.4

6.3
32.5
6.8
9.0

CAPITAL AND DEPOSIT RATIOS (In Percentage)
31.
32.
33.
34.

Capital accounts to total assets........................................................
Capital accounts to total assets less Governments and cash assets.
Capital accounts to total deposits.............................................-.....
Time to total deposits.....................................................................

1

\ 7-4

2.8

t________

•Revised.
"i
••Banks reporting zero amounts were excluded in computing this average and figures are not shown where there were fewer than three banks in a group.
N ote: Balance sheet figures used as a basis for ratios are averages of amounts reported December 31, 1943, June 30, 1944, and December 30, 1944.

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