The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL. R E SE R V E B AN K OF DALLAS Average Operating Ratios of Selected Member Banks in the Eleventh Federal Reserve District for the Year 1 9 29 This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) ANNUAL ANALYSIS OF MEMBER BANKS’ EARNINGS AND EXPENSES On the opposite page will be found a tabulation showing, for the year 1929, certain important ratios (expressed as percentages) which have been calculated from the figures contained in the periodical reports of 150 selected member banks of the Eleventh Federal Reserve District. These banks have been divided into five groups, according to the volume of their loans and investments, so that the group averages thus obtained may be used by any member bank as a “ yardstick” for the purpose of comparing its own operating ratios with those of other member banks having a similar volume of loans and investments and a relatively high ratio of net profits. In selecting the 150 banks whose figures were used in this table, all member banks in the district were classified as to the volume of their loans and investments, and divided into five size groups. The thirty banks in each group which showed, for the year 1929, the highest ratio of net profits to total loans and investments were then chosen to represent their respective groups for “ yardstick” purposes. Variations in local interest rates, as between one community and another, give rise to marked differences in the rates of gross earnings shown by banks having about the same volume of loans and investments. Therefore, our tabulation of average operating ratios shows various items of expenses, charge-offs, etc., as percentages of gross earn ings (ratios 9-16) and also as percentages of total loans and investments (ratios 17-25). Dallas, Texas, May 23, 1930. Average Operating Ratios of 150 Selected Member Banks in the Eleventh Federal Reserve District Divided Into Five Groups of 30 Banks Each, Based on Operations and Condition Reports for the Year 1929 (Grouped According to Amount of Loans and Investments Indicated) ■ Group I R a t io s E xpre sse d in P e r c e n t a g e s Under $300,000 CAPITAL 1. Capital and surplus to gross deposits Group II Group III Group IV Group V $300,000 $500,000 $800,000 General to to to $2,000,000 Average $500,000 $800,000 $2,000,000 and up 27.5 25.1 20.7 17.5 13.8 20.9 4.5 7.8 7.7 13.1 25.5 11.7 .4 .7 1.0 1.1 1.7 1.0 Your figures DEPOSITS 2. Time deposits to gross deposits Your figures 3. 4. 5. Interest paid on deposits to gross deposits Your figures Salaries and wages to gross deposits Your figures Total expense to gross deposits 2.9 2.5 2.2 2.1 1.5 2.2 5.6 5.3 5.0 5.1 4.7 5.1 11.8 9.6 9.1 9.1 8.0 9.5 21.2 21.3 22.3 25.4 21.4 22.3 5.0 4.4 4.1 3.6 2.6 3.9 27.7 25.8 23.5 23.8 20.7 24.3 .6 .9 1.5 1.7 1.9 1.3 4.4 8.0 11.2 12.5 23.2 11.9 20.1 20.0 19.0 20.4 18.5 19.6 52.8 54.7 55.2 58.4 64.3 57.1 47.2 45.3 44.8 41.6 35.7 42.9 3.5 4.5 6.8 7.1 5.0 5.4 27.5 27.2 26.2 22.4 15.2 23.7 3.3 2.5 2.2 2.2 1.6 2.4 .1 .1 .1 .1 .2 .1 .5 .8 1.0 1.1 1.8 1.0 2.4 1.9 1.7 1.9 1.5 1.9 6.3 5.3 5.0 5.3 5.1 5.4 5.5 4.3 4.1 3.8 2.9 4.1 .5 .5 .7 .7 .4 .6 5.3 4.2 3.6 3.2 2.5 3.8 3.2 2.6 2.4 2.1 1.2 2.3 Your figures EARNINGS 6. Gross earnings to loans and investments Your figures 7. 8. Net earnings to capital and surplus Your figures Net earnings to gross deposits Your figures EXPENSES, LOSSES, ETC. Ratio of the following items to gross earnings: 9. Salaries and wages Your figures 10. Interest on borrowed money Your figures 11. Interest on deposits Your figures 12. Other expenses Your figures 13. Total expenses Your figures 14. Net earnings 15. Losses and charge-offs, less recoveries Your figures Divdends paid Your figures 16. Your figures 17. Ratio of the following items to loans and investments: Salaries and wages 18. Interest on borrowed money Your figures Your figures 19. 20. 21. Interest on deposits Your figures Other expenses Your figures Total expenses Your figures 22. Net earnings Your figures 23. 24. Losses and charge-offs, less recoveries Your figures N et profits Your figures 25. Dividends paid Your figures N O T E : Capital, surplus, gross deposits, time deposits, and loans and investments were computed from the average figures of condition reports rendered as o f June 30 and December 31. A ll other figures were obtained from semi-annual earnings reports. “ Loans and investments” include loans and discounts, bills of exchange, overdrafts, United States Government securities, and other bonds, stocks and securities.
@FedFRASER