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F e d e r a l Re s e r v e Ba n k OF DALLAS Dallas, Texas, February 18, 1955 CONDITION AND EARNINGS OF MEMBER BANKS ELEVENTH FEDERAL RESERVE DISTRICT To the Member Banks in the Eleventh Federal Reserve District: Total resources of member banks in the Eleventh Federal Reserve District were $9,838,474,000 on December 31, 1954, exceeding by 7.1 percent the previous record of $9,184,766,000 established on December 31, 1953. Loans, investments, deposits, and capital accounts rose to record levels at the end of the year. Net profits of the member banks for 1954 were $57,644,000, representing an increase of 37.6 percent over 1953. Banking growth in the District occurred in a business environment characterized by recession in the early months of the year, a tendency toward stability during the spring and summer, and marked recovery in the last quarter of 1954. Monetary and credit policies were designed to provide banks with an adequate volume of reserves to assure that the credit needs of the economy could be met readily and thus contribute to the resumption of orderly economic growth. Consequently, member banks in the District were able to satisfy the credit demands of business, agriculture, and consumers and to increase substantially their investments. Net loans of the member banks amounted to $3,476,359,000 on December 31, a growth of $377,243,000 — or 12.2 percent — for the year. This expansion, which was more than one and one-half times the gain of $242,185,000 that occurred in 1953, resulted principally from increases of $177,349,000 in commercial and industrial loans, $66,641,000 in CCC loans and certificates of interest, $46,708,000 in loans on securities, and $47,229,000 in real estate loans. Member banks increased their investments $270,756,000, or 9.4 percent, in 1954 to a record total of $3,157,331,000. This expansion contrasts with a growth in 1953 of only $13,699,000, or less than 1 percent. Slightly more than 80 percent of the increase in investments in 1954 consisted of United States Government securities. Total deposits of member banks in the District were at a record level of $9,140,830,000 on December 31, reflecting a growth of $584,573,000, or 6.8 percent. Most of the increase was in the form of demand and time deposits of individuals and businesses, which rose $471,972,000 as com pared with an expansion of only $179,162,000 in 1953. Individual time deposits increased more or less steadily throughout the year, but the gain in demand deposits was concentrated in the period of seasonal loan expansion during the last 3 months of 1954. Member banks increased their capital accounts 8.7 percent to reach $606,702,000 in 1954. Retained earnings accounted for about 71 percent of the increase, with the remainder reflecting the sale of stock. Yours very truly, WATROUS H. IRONS President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) COMPARATIVE STATEMENT OF CONDITION OF MEMBER BANKS ELEVENTH FEDERAL RESERVE DISTRICT (Amounts in thousands of dollars) Item Loans, including overdrafts........................................... U. S. Government obligations, direct and guaranteed.. Obligations of states and political subdivisions......... Other securities ............................................................ TOTAL LOANS AND INVESTMENTS..................... Cash and balances due from banks............................... TOTAL ASSETS .......................................................... Individual — Demand deposits .... ................ ............. Individual — Time deposits ....... ................................. Deposits of U. S. Government, including postal savings........................................................................ Deposits of states and political subdivisions............... Deposits of banks.......................................................... Other deposits .............................................................. TOTAL DEPOSITS ...................................................... TOTAL CAPITAL ACCOUNTS................................... Borrowings from Federal Reserve Bank..................... All other borrowings...................................................... Ratio of loans to total deposits..................................... Ratio of cash and balances due from banks to total deposits.......................................................... Ratio of total capital accounts to risk assets (total assets less Government securities and cash assets) Number of banks............................................................ December 31, 1954p October 7, 1954* December 31, 1953 3,476,359 2,643,721 408,648 104,962 6,633,690 3,014,299 9,833,474 5,671,530 943,027 3,116,911 2,668,820 410,780 97,915 6,294,426 2,578,219 9,036,849 5,297,295 913,141 3,099,116 2,427,003 381,635 77,937 5,985,691 3,040,350 9,184,766 5,344,633 797,952 187,099 722,258 1,464,930 151,986 9,140,830 606,702 0 0 38.0% 260,564 605,071 1,201,942 72,819 8,350,832 617,169 239 250 37.3% 172,493 743,360 1,341,479 156,340 8,556,257 558,071 0 0 36.2% 33.0% 30.9% 35.5% 14.5% 632 16.3% 636 15.0% 635 p— Preliminary, r— Revised. PRINCIPAL ASSET AND LIABILITY ITEMS OF MEMBER BANKS 1945, 1950-54 ELEVENTH FEDERAL RESERVE DISTRICT (In thousands of dollars) December 31 1945 1950 1951 1952 1953 1954p p— Preliminary. Total Deposits 5,738,464 7,198,467 7,742,798 8,191,531 8,556,257 9,140,830 Total Loans 1,138,936 2,406,188 2,570,429 2,856,931 3,099,116 3,476,359 Total Investments 2,863,853 2,643,066 2,768,680 2,872,876 2,886,575 3,157,331 Total Loans and Investments 4,002,789 5,049,254 5,339,109 5,729,807 5,985,691 6,633,690 Total U.S. Gov. Secs. 2,702,604 2,274,935 2,362,881 2,446,220 2,427,003 2,643,721 Total Capital Accounts 253,741 418,483 464,027 516,276 558,071 606,702 COMPARATIVE STATEMENT OF EARNINGS AND EXPENSES OF MEMBER BANKS ELEVENTH FEDERAL RESERVE DISTRICT (Amounts in thousands of dollars) Item 1953 Net Change 1954 over 1953 57,510 147,643 10,285 24,071 239,509 72,741 12,739 60,901 146,381 93,128 4,452 7,562 1,622 3,032 16,668 4,124 1,311 6,103 11,538 5,130 8,116 18,040 22,613 78,631 36,753 41,878 21,157 635 4,131 19,039 3,273 15,766 1,900 —3 1954p Interest and dividends on securities____________ ___ ___ 61,962 Interest and discount on loans.................. ..... .................. 155,205 Service charges on deposit accounts .............................. . 11,907 All other earnings.................................... ........................... 27,103 TOTAL EARNINGS FROM CURRENT OPERATIONS 256,177 Salaries and wages............................... ................................ 76,865 Taxes other than net income............................................... 14,050 All other expenses ........................ ................ .................... 67,004 TOTAL CURRENT OPERATING EXPENSES............... 157,919 NET EARNINGS FROM CURRENT OPERATIONS.... 98,258 Total recoveries, transfers from valuation reserves, and profits .........„ ......... ............ :............ .......... ....... . 26,156 Total losses and charge-offs, and transfers to valuation reserves...... .................................................. 26,744 Profits before income taxes....... ........ ........ ...... ................ 97,670 Taxes on net income........ ............ ............. ....... ................. 40,026 NET PROFITS ............................................................... 57,644 Cash dividends declared1............. ......................................... 23,057 Number of banks........................................................ ..... . 632 1 Includes interest on capital notes and debentures, p— Preliminary. PRINCIPAL ITEMS OF EARNINGS AND EXPENSES OF MEMBER BANKS 1945, 1950-54 ELEVENTH FEDERAL RESERVE DISTRICT (Amounts in thousands of dollars) Year Total Earnings from Current Operations Total Current Operating Expenses 1945 1950 1951 1952 1953 1954p 84,576 173,424 193,010 219,811 239,509 256,177 53,860 101,975 112,833 130,646 146,381 157,919 Net Earnings from Current Operations 30,716 71,449 80,177 89,165 93,128 98,258 Total Total Losses Recoveries and and Profits i Charge-Offs i 11,299 7,399 6,172 5,955 8,116 26,156 p— Preliminary. 1 Beginning with 1948 includes transfers from and to reserves. 2 Includes interest on capital notes and debentures. 8,515 16,932 20,191 20,882 22,613 26,744 Net Profits Cash Dividends Declared2 Number of Member Banks 24,078 41,995 39,393 41,058 41,878 57,644 9,715 15,081 17,531 20,006 21,157 23,057 585 630 633 634 635 632
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