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F e d e r a l r e s e r v e B an k O F D A LL A S Dallas, Texas, March 5,1949 CONDITION OF MEMBER BANKS, DECEMBER 31, 1948 To Member Banks o f the Eleventh Federal Reserve D istrict: There is presented a statement of the condition of all member banks in the Eleventh Federal Reserve District as of December 31, 1948, with comparative figures for June 30, 1948, and Decem ber 31, 1947. There is also shown a comparative statement of earnings and expenses of member banks for the years 1948 and 1947. The aggregate deposits of member banks increased in 1948, though by a smaller amount than in 1947. On December 31, 1948, total deposits amounted to approximately $6,139,000,000, repre senting a net increase of $198,000,000 during the year, as compared with a net expansion of $555,000,000 in 1947. The principal increases in deposits during 1948 occurred in the demand deposits of individuals, partnerships, and corporations and in deposits of states and political sub divisions, although time deposits and United States Government deposits increased moderately. On the other hand, deposits of banks and “ other” deposits showed declines. Total loans and investments of member banks increased further during 1948, reflecting a sub stantial increase in loans which more than offset the decline in investments. The increase of $256, 000,000 in loans compares with an expansion of $261,000,000 during 1947. On December 31, 1948, total loans of $1,836,000,000 constituted 43 percent of total earning assets, as compared with 38 percent on December 31, 1947. Investments in Government securities, which had increased mod erately in 1947, declined $158,000,000 in 1948, reducing the year-end total to the lowest level since 1943. Since holdings of other securities increased moderately during 1948, the net decline in total investments amounted to $129,000,000, which contrasts with a net increase of $90,000,000 in 1947. The upward trend in the total capital accounts of member banks continued during 1948 and on December 31 amounted to approximately $343,000,000. This amount represents an increase of $24,000,000 during 1948, as compared with an increase of $27,000,000 in 1947. Total earnings of member banks from current operations during 1948 rose to a new peak of $139,500,000, an increase of $19,600,000 over those in 1947. This increase reflects chiefly the larger earnings derived from interest and discount on loans. Total current operating expenses of member banks, amounting to $83,400,000, were $10,300,000 higher than in 1947. In consequence,_net earnings from current operations amounted to $56,100,000, an increase of $9,200,000 over those in 1947. Total losses and charge-offs, including transfers to reserves for bad debt losses on loans authorized by a ruling of the Bureau of Internal Revenue in December 1947, were $21,300,000, as compared with $10,000,000 in the previous year. Taxes on net income, which amounted to $12,400,000 during 1948, were about $500,000 less than in 1947. Net profits for the year 1948 totaled $29,000,000, a decrease of about $2,000,000 from those of 1947. Total dividend payments of approximately $13,000,000 were $1,000,000 larger than the 1947 figure, and the rate of payments on total capital accounts was slightly higher. Yours very truly, R. R. GILBERT President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) C O M PARATIVE ST A T E M E N T OF CONDITION OF M EM BER 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 June 30, 1948* December 31, 1947* Item December 31, 1948p Member banks in Eleventh District....... Loans, including overdrafts................. . U. S. Government obligations, direct and guaranteed............................................. Obligations of states and political sub divisions................................................. Other securities........... .......................... . TOTAL LOANS AND INVESTMENTS Individual— Demand deposits_________ Individual—Time deposits........ .............. Deposits of U. S. Government, including postal savings..................................... Deposits of states and political sub divisions.................. ................ ............. Deposits of banks..................................... Other deposits.......................................... TOTAL DEPOSITS ................ .... ........ TOTAL CAPITAL ACCOUNTS .... Cash and balances due from banks_____ Borrowings from Federal Reserve Bank All other borrowings_______ _________ Ratio of loans to total loans and invest ments...................................................... Ratio of cash and exchange to total deposits.................................................. 618 1,835,671,000 616 1,640,494,000 613 1,579,758,000 2,122,766,000 2,162,598,000 2,280,836,000 249,472,000 61,220,000 4,269,129,000 4,055,432,000 506,415,000 235,476,000 58,820,000 4,097,388,000 3,911,126,000 497,714,000 224,282,000 57,789,000 4,142,665,000 3,968,128,000 490,910,000 71,806,000 69,070,000 50,229,000 562,313,000 809,995,000 132,928,000 6,138,889,000 342,623,000 2,164,640,000 — o— — o— 494,760,000 673,822,000 58,439,000 5,704,931,000 333,954,000 1,895,574,000 300,000 — o— 459,824,000 828,327,000 143,083,000 5,940,501,000 318,953,000 2,074,938,000 — o— — o— 43.0% 40.0% 38.1% 3 5 .3 % 3 3.2 % 34.9% r—Revised, p—Preliminary. PR IN CIPAL A S S E T A N D L IA B IL IT Y ITEM S OF M E M B E R B A N K S , 1939-48 E L E V E N T H F E D E R A L R E SE R V E DISTRICT (In thousands of dollars) December 31 1939 1940 1941 1942 1943 1944 1945 1946 1947r 1948p r—Revised, p—Preliminary. Total Deposits Total Loans Total Investments Total Loans and Investments Total U. S. Gov. Secs. Total Capital Accounts 1,576,444 1,738,390 2,051,770 2.867.889 3,557,172 4,521,001 5,738,464 5,385,973 5,940,501 6.138.889 496,359 579,639 663,215 599,354 666,375 815,977 1,138,936 1,319,153 1,579,758 1,835,671 425,330 445,887 532,411 1,092,898 1,726,506 2,272,535 2,863,853 2,472,547 2,562,907 2,433,458 921,689 1,025,526 1,195,626 1,692,252 2,392,881 3,088,512 4,002,789 3,791,700 4,142,665 4,269,129 279,450 294,480 369,689 939,929 1,588,403 2,149,906 2,702,604 2,246,267 2,280,836 2,122,766 167,220 175,880 183,916 188,169 200,785 222,182 253,741 292,167 318,953 342,623 CO M PARATIVE S T A T E M E N T OF E A R N IN G S A N D E X P E N S E S OF M EM BER 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 (Am ounts in thousands of dollars) Item Interest and dividends on securities.................................. Interest and discount on loans............................................. Service charges on deposit accounts................................... All other earnings.................... ..................... ..................... TOTAL EARNINGS FROM CURRENT OPERATIONS Salaries and w ages.................... ........................ ................ Taxes other than on net income............ ............. ............. All other expenses............ ...... .............................. .... ........ TOTAL CURRENT OPERATING EXPENSES____ __ NET EARNINGS FROM CURRENT OPERATIONS Total recoveries and profits...................... ......................... Total losses and charge-offs....... ....... ......... .......... ............ Profits before income taxes............................................... . Taxes on net income............................................................ NET PROFITS.......... ...... ........... ......................... .......... Total dividends paid—....... ...... .......................... ................ Number of member banks................................................... 1948p 1947r Net change 1948 over 1947 39,468 77,336 7,009 15,672 139,485 41,216 7,767 34,379 83,362 56,123 6,630 21,336 41,417 12,391 29,026 12,968 618 38,487 61,164 6,248 14,030 119,929 36,045 7,419 29,551 73,015 46,914 7,006 10,000 43,920 12,925 30,995 11,939 613 — — — — 981 16,172 761 1,642 19,556 5,171 348 4,828 10,347 9,209 376 11,336 2,503 534 1,969 1,029 5 r—Revised, p—Preliminary. PRIN CIPAL ITEM S OF E A R N IN G S A N D E X P E N S E S OF M EM BER B A N K S , 1939-48 E L E V E N T H F E D E R A L R E SE R V E DISTRICT (Am ounts in thousands of dollars) Year 1939 1940 1941 1942r 1943r 1944 1945 1946 1947r 1948p Total Total Current Earnings from Current • Operating Expenses* Operations 46,535 48,376 53,716 53,973 60,829 72,343 84,576 105,947 119,929 139,485 31,518 33,700 37,367 38,598 40,839 46,000 53,860 62,574 73,015 83,362 Net Total Total Earnings Recoveries Losses from Current and Profits and Operations* Charge-Offs 15,017 14,676 16,349 15,375 19,990 26,343 30,716 43,373 46,914 56,123 10,744 7,123 6,905 5,533 7,728 7,734 11,299 10,261 7,006 6,630 10,591 7,649 8,273 5,673 5,940 6,540 8,515 8,708 10,000 21,336 Net Profits Cash Dividends Declared Number of Member Banks 15,170 14,150 14,981 12,048 17,607 21,334 24,078 32,635 30,995 29,026 6,821 7,381 7,606 7,196 7,635 8,298 9,715 11,078 11,939 12,968 547 568 573 570 575 580 585 595 613 618 *Taxes paid on net income were included in expenses prior to 1942 but for 1942 and subsequent years were treated as a deduction from total profits; hence, the data on current operating expenses and net earnings from current operations after 1941 are not strictly comparable with those for prior years. r—Revised, p—Preliminary.
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