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FEDERAL RESERVE BANK OF DALLAS Average Operating Ratios of Selected Member Banks in the Eleventh Federal Reserve District for the Year 1931 This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) ANALYSIS OF MEMBER BANKS’ EARNINGS AND EXPENSES There is presented on the opposite page a tabulation showing, for the year 1931, 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 Elev enth Federal Reserve District. These banks have been divided into five groups, according to the volume of their loans and investments, so that the group average 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 thereto. For the purpose of selecting the 150 member banks whose figures were used in the tabulation, all member banks were classified as to the volume of their loans and invest ments and divided into five groups. Then the thirty banks in each group having the highest ratio of net profits to total loans and investments were selected to represent their respective groups. Variations in interest rates between one community and another and a diversity of operating conditions often cause marked differences in the rates of gross profits even where banks have approximately the same volume of loans and investments. Therefore, to furnish a broader basis for comparison, we have shown in our tabulation of average operating ratios, various items o f expenses, charge-offs, etc., as percentages of gross earnings (ratios 9-16) and also as percentages of loans and investments (ratios 17-25). Dallas, Texas, April 4,1932. 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 1931 (Grouped According to Amount o f Loans and Investments Indicated) Group I R a t io s E xpressed in P e r c e n t a g e s Under $300,000 CAPITAL 1. Capital and surplus to gross deposits Your figures DEPOSITS 2. Time deposits to gross deposits Your figures 3. Interest paid on deposits to gross deposits Your figures 4. Salaries and wages to gross deposits Your figures 5. Total expenses to gross deposits Your figures EARNINGS 6. Gross earnings to loans and investments Your figures 7. Net earnings to capital and surplus Your figures 8. Net earnings to gross deposits Your figures EXPENSES, LOSSES, ETC. Ratio o f 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 Your figures 15. Losses and charge-offs, less recoveries Your figures 16. Dividends paid Your figures Ratio o f the following items to loans and investments: 17. Salaries and wages Your figures 18. Interest on borrowed money Your figures 19. Interest on deposits Your figures 20. Other expenses Your figures 21. Total expenses Your figures 22. Net earnings Your figures 23. Losses and charge-offs, less recoveries Your figures 24. Net profits Your figures 25. Dividends paid Your figures Group II Group III Group IV Group V $300,000 $500,000 $800,000 $2,000,000 General to to to and Average over $500,000 $800,000 $2,000,000 42.0 25.3 19.9 17.6 12.4 23.4 6.2 11.3 15.4 16.8 26.4 15.2 .5 1.0 1.3 1.2 1.6 1.1 3.9 2.8 2.3 2.0 1.5 2.5 7.0 5.9 5.4 4.8 4.3 5.5 10.6 8.4 7.9 7.8 6.9 8.3 9.0 14.1 13.6 15.1 14.4 13.2 3.2 3.0 2.4 2.5 1.7 2.6 38.4 32.4 29.0 28.3 24.4 30.5 .7 1.2 1.5 1.2 1.0 1.1 5.5 11.7 17.3 17.3 27.3 15.8 23.8 21.8 22.0 19.7 19.7 21.4 68.4 67.1 69.8 66.5 72.4 68.8 31.6 32.9 30.2 33.5 27.6 31.2 7.6 12.9 12.3 17.3 14.5 12.9 15.2 13.5 12.8 15.4 13.7 14.1 4.1 2.7 2.3 2.2 1.7 2.6 .1 .1 .1 .1 .1 .1 .6 1.0 1.3 1.4 1.8 1.2 2.5 1.8 1.8 1.5 1.4 1.8 7.3 5.6 5.5 5.2 5.0 5.7 3.3 2.8 2.4 2.6 1.9 2.6 .8 1.1 1.0 1.4 1.0 1.1 3.0 1.7 1.4 1.3 .9 1.7 1.6 1.1 1.0 1.2 .9 1.2 NOTE: Capital, surplus, gross deposits, time deposits, and loans and investments were computed from the average figures of condition reports rendered as of June 30 and December 31. All 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.
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