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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.
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