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F

ed eral

r e se r v e

Ba

n k

OF DALLAS

Dallas, Texas, February 2 3 ,1 9 5 1

O PER ATIN G RATIOS OF M E M B E R B A N K S
E L E V E N T H F E D E R A L R E SE R V E DISTRICT

To Member Banks of the
Eleventh Federal Reserve District:

T h e annual sta tem en t o f op e ra tin g ra tios o f th e m em b er banks in th e E leven th
F ed era l R eserve D istrict f o r th e y ea r 1950, w ith com p a ra tiv e figu res f o r 1949, is presen ted
on th e inside p ages o f th is letter. T h e 1950 ra tios sh ow n under each d eposit-size grou p are
a v era g es o f th e ra tios o f individu al banks com pu ted fr o m data taken fr o m the rep orts o f
con d ition as o f D ecem b er 31, 1949, June 30, 1950, and O ctober 4, 1950, and fr o m rep orts
o f ea rn in gs and exp en ses f o r th e y ea r 1950. F o r y o u r con ven ien ce in m a k in g use o f th ese
data, ra tios f o r y o u r bank also are included.
R a tios o f n et p rofits to tota l capital accou n ts rose d u rin g 1950 a t ban k s in th e grou p
w ith d eposits o f $1,000,000 to $1,999,000 and at banks h a v in g deposits o f $10,000,000 and
over, b u t eith er d ecreased o r sh ow ed no ch a n ge in all o th e r grou p s. R a tio s o f cash dividends
to tota l capital a ccou n ts rem ain ed a t 1949 levels o r ro se fra ctio n a lly , e x ce p t th a t th e grou p
o f banks h avin g d eposits b etw een $10,000,000 and $24,999,000 sh ow ed a fra ctio n a l decrease.
C h anges in th e com p osition o f earn in g assets d urin g 1950 are reflected in th e earn in gs
ra tios o f banks in th e several size grou p s. A lth o u g h the D is trict’s m em b er banks increased
th eir h old in g s o f G overn m en t secu rities in th e a g g re g a te , loans rose m o re ra p id ly and b y
a m u ch la rg er am ount. M oreover, th ese ch a n ges w ere m ore p ron ou n ced in th e larger ban k size grou p s. A s a resu lt o f th ese s h ifts , earn in gs derived fr o m loans w eigh ed m ore h ea v ily
in tota l earn in gs in 1950 th an in 1949. E a rn in g s fr o m loans o f banks h a v in g deposits o f
less th a n $500,000 rose fr o m 75.6 p ercen t o f tota l earn in gs to 76.6 p ercen t, w h ile th e
in crease f o r banks in th e grou p w ith deposits o f $25,000,000 and over w as fr o m 52.4 p e r­
cen t to 55.7 p ercent. E a rn in g s fr o m in terest on G overn m en t secu rities as a p rop ortion o f
tota l ea rn in g s w ere low er in m ost grou ps, a lth ou gh banks w ith d eposits under $500,000
and b etw een $1,000,000 and $1,999,000 sh ow ed increases.
E xp en ses o f banks w ith d eposits b etw een $500,000 and $999,000 and o f banks in th e
tw o grou p s h av in g d eposits o f $10,000,000 o r m ore absorb ed a sm aller p e rce n ta g e o f tota l
ea rn in g s in 1950 than in 1949. F o r all oth er grou p s, h ow ever, th e p ro p o rtio n s w ere larger,
reflectin g to som e ex te n t increases in th e ra tios o f salaries and w a ges to tota l earn in gs.
T h ese la tter increases w ere com m on to all grou p s w ith th e ex ce p tio n o f th a t co m p risin g
banks w ith deposits o f $25,000,000 and over.
It is h oped th a t th e in form a tio n in this re p o rt w ill be b o th in te re stin g and valuable in
m a k in g com p a rison s b etw een th e ra tios f o r y o u r bank and th ose f o r o th e r banks o f co m ­
parable size. It should be rem em bered, h ow ever, th a t th e individu al bank ra tio s fr o m w h ich
a v era g e ra tios w ere com pu ted ran ged ra th er w id ely in som e cases.
Yours very truly,
R . R . G IL B E R T
P resid en t

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

OPERATING RATIOS O F MEMBER BANKS FOR THE YEARS 1950 A N D 1949 — ELEVENTH FEDERAL RESERVE DISTRICT
BANKS WITH AVERAGE DEPOSITS (in thousands o f d olla rs)

1950

$500 $099
1950
1949

Under $500
1949
1950
18
20

Your Bank

1949

Number of Banks in Group

52

j

$ 1 ,0 0 0 $1,999
1950
1949*
133
130

© -

$2 ,0 0 0 - $4,999
1950
1949

221

221

18.6
15.7
12.2
4.3

$5,000 $9,999
1950
1949
100
96

19.7
16.2
12.7
4.3

$10,000-$24,999
1950
1949
51
48

$25,000 and Over
1950
1949
46
43

All Banks
1949
619

1950
623

SUMMARY RATIOS
Percentage of Total Capital Accounts
1.
2.
3.
4.

11.7
9.5
7.7
3.4

Net current earnings before income taxes........................................
Profits before income taxes................................................................
Net profits...............................................................................................
Cash dividends declared.......................................................................

3.4

16.2
14.2
11.5
4.2

15.1

15.1
12.3
9.8
3.5

12.5
10.9
8.7

1 2 .0

9.8
3.1

18.2
14.3
11.3
4.0

21.0
17.1
11.9
3.5

19.5
16.4
11.5
3.1

2 2 .1

17.5
12.7
3.3

18.9
15.0
1 0 .8

3.5

18.8
16.9
11.1
3.5

18.1
15.2
11.5
3.9

17.8
14.0
9.5
3.3

18.9
15.2
1 1 .6

3.8

1
2

3
4

Percentage of Total Assets
3.64
1.37
.83

5. Total earnings........................................................................................
6. Net current earnings before income taxes.........................................
7. Net profits.......................................................................-......................

3.42
1.36
.87

3.50
1.44
.95

3.65
1.48
1 .0 1

3.18
1.24
.87

3.20
1.34
.82

2.89
1.17
.77

2.79
1.13
.64

2 .8 6

1.19
.77

2.73

2.71
1.02
.61

1.12

.64

2.59
.97
.54

2.39
.96
.58

2.96
1.18
.76

2.28
.88

.46

2.93

5

1 .2 0

6

.74

7

SOURCES AND DISPOSITION OF EARNINGS
Percentage of Total Earnings
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.

Interest on U. S. Government securities............................................
Interest and dividends on other securities.........................................
Earnings on loans.................................................................................
Other current earnings................................... ......................................
Total earnings...............................................................................
Service charges on deposit accounts (Included in item 1 1 )* * .....
Trust department earnings (Included in item 1 1 )* * ......................
Salaries and wages...............................................................................
Interest on time deposits........................................................- ...........
Other current expenses.........................................................................
Total expenses..............................................................................
Net current earnings before income taxes........................................
Net recoveries and profits (or losses ■ ) .........................................
—
Taxes on net income....................................... - ...................................
Net profits............................................................................. -...............

100.0

1 0 0 .0

3.9

100.0

100.0

3.3
75.6
1 0 .0

1 0 0 .0

5.6

5.6

1 1 .1

18.7
5.3
65.2
10.8
100.0
6.1

6.3

15.4
3.6
71.1
9.9

14.6
4.0
72.1
9.3
100.0

4.5

11.4
3.5
76.6
8.5
100.0

12.2
1 00.0

1 0 0 .0

22.1
5.8
56.4
15.7
100.0

1 0 0 .0

7.2
2.4

7.5
2.3

32.5
2.4
24.2
59.1
40.9
7.4
9.6
23.9

32.2
2.4
24.4
59.0
41.0
— 7.9

25.1

1 2 .6

11

1 00.0

19.9
5.5
62.4
12.2
100.0

1 0 0 .0

12

4.3
2.7

4.5
2.3

6.3
2.5

6.5
2.6

32.3
3.5
27.1
62.9
37.1
— 7.4
8.3
21.4

28.9
4.2
26.9
60.0
40.0
— 3.7
12.3
24.0

29.3
4.5
27.6
61.4
38.6

13
14
15
16
17
18
19

24.1
4.2
55.7
16.0
100.0

2.3

24.3

33.1
3.3
26.4
62.8
37.2
5.6
9.5
22.1

6 .6

57.6
14.1

6 .0

52.8
16.1

27.1
3.9
52.4
16.6

2 0 .8

8

5.9
60.7

10

9

32.7

26.6

33.7
1.2
24.5
59.4
40.6
5.5
7.7
27.4

24.4
58.3
41.7
- 7.0
7.3
27.4

1.7

1.7

1.6

1.7

1.6

1.6

1.6

1 .6

1.6

1.6

1.6

1.7

23

3.2

3.1

3.2

2.9

2.9

2.3

2.5

2.5

2 .6

2.4

2.4

2.9

2.9

24

—

—

—

—

—

—

—

.1

—

—

—

.1

7.1
.4

6.4
.3

6 .0

4.6

—

.2

__

37.4
6.9
24.0
30.7
.9

35.7
4.1
28.1
30.9

.1

34.4
4.4
29.9
30.0
1.1
.2

37.6
.9
23.9
62.4
37.6
7.6
6.0
24.0

36.3
22.9
59.8
40.2
— 4.2
7.2
28.8

1.7

1.8

4.7

4.1

3.1

.1

.1

—

—

1.7

—

21.7

7.0
2.4

6.9
58.9

6.8

—

2.0

—

20.8
5.6
60.2
13.4
100.0

2 2 .0

6.5
3.5

—

—

.6

21.0
6.4
60.8
11.8
100.0

18.2
5.9
64.6
11.3

33.6
34.9
1.3
1.1
25.9
24.1
60.8
60.1
39.2
39.9
6.7 — 8.2

34.5
1.4
25.1
61.0
39.0
—
4.6
5.(
• 6.4
25.4 ’ 28.0

)

26.5

—

32.9
1 .0

24.6
58.5
41.5
—

8 .1

—

6 .8

—

1.2

—

—

8 .8

7.4

-

8.1
10.0

20.5

33.5
32.6
1.8
1.7
24.9
25.0
60.2
59.3
39.8
40.7
— 5.6 — 7.5
8.1
7.6
26.1
25.6

20
21
22

RATES OF EARNINGS ON SECURITIES AND LOANS
Percentage of U. S. Government Securities
23. Interest on U. S. Government securities............................................

Percentage of Other Securities
24. Interest and dividends on other securities.........................................

Percentage of Total Securities
25. Net recoveries and profits (or losses— ) on total securities........ .

-

.1

—

—

25

Percentage of Total Loans
26. Earnings on loans.................................................................................
27. Net recoveries (or losses— ) on loansf..........................................

—

9.3
.9

9.4
—

.6

—

7.8
.7

8.0
—

.7

—

7.6
.4

7.6
—

.7

—

6.8
.2

-

—

6.3
.4

—

6.1
.2

—

4.3
- -

.2

—

6.8
.3

—

7.0
.5

26
27

33.2

DISTRIBUTION OF TOTAL ASSETS
Percentage of Total Assets
28.
29.
30.
31.
32.
33.

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

27.8
4.9
31.5
35.0

.1

25.0
4.9
33.4
36.1
.5
.1

11.8

11.9

37.9
13.5
2.5

38.6

20.8
3.6
31.0
44.3
.3
—

21.9
3.4
31.7
42.5

.4

29.2
33.2

.7
.1

31.9
6.0
28.5
32.8
.7
.1

9.5

9.2

26.0
10.6

26.9
.10.3
3/

OTHER RATIOS
34. Total capital accounts to total assets.................................................
35. Total capital accounts to total assets less Government
securities and cash assets....................................................................
36. Total capital accounts to total deposits............................................
37. Time deposits to total deposits........................................... ...............
* Revised.
'

**Banks reportin g zero am ounts w ere excluded in com puting this average, and figures
are not shown w here there w ere few er than three banks in a group.

-(Computed on the basis o f actual net losses or recoveries rather than on basis o f figures reported
on the fa ce o f the earnings and dividends report.

13.6
2 .0

9

"*

35.3
7.4
25.2
31.3

.7
.1

34.2
7.2
27.0
30.8
.7
.1

.1

.1

.1

35.7
6.9
26.2
30.2
.9
.1

7.8

7.5

6.5

6.3

5.6

5.3

5.6

5.5

24.1
8.6
3.8

23.3

20.5
7.0
4.1

2 0 .6

17.1
5.9
7.5

17.1
5.6
7.5

18.3
6.0
11.3

19.5
5.9
11.4

30.2
6 .6

8 .2

3.4

.7

6.7
3.7

34.7
6.8
27.7
29.8
.9

34.5
7.1
26.6
30.9
.8

27.2
32.2

.2

32.8
6.3
28.3
31.8
.7
.1

.7
.1

28
29
30
31
32
33

5.2

5.1

6.9

6.7

34

15.6
5.6
13.0

16.5
5.5
13.6

21.2
7.5
5.7

21.4
7.3

35
36
37

1.0

6 .6

5.5

Note: B^anee sheet figures used as a basis fo r ratios are averages o f am ounts reported Decem ber 31, 1949, June 30, 1950, and O ctober 4, 1950.

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