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F ederal Reserve Bank OF DALLAS Dallas, Texas, February 23, 1956 CONDITION AND EARNINGS OF MEMBER BANKS ELEVENTH FEDERAL RESERVE DISTRICT To the Member Banks in the Eleventh Federal Reserve District: On December 31,1955, total assets of all member banks in the Eleventh Federal Reserve District rose to the record level of $10,251,568,000, aided by a substantial seasonal increase in the last quarter of the year. Total earning1 assets, capital accounts, and aggregate deposits also advanced to new peak levels at the year end. Net operating earnings for 1955 reached an all-time high, although net profits were below the 1954 level, largely as a result of lower profits from securities transactions. Bank loans at the year end amounted to $3,951,223,000, reflecting a substantial $474,184,000 gain for the year — with the fourth-quarter rise accounting for more than half of this gain. The most substantial increase in loan accommodation was in commercial and industrial loans, followed by the gains in real-estate credits and consumer loans — all of which are indicative of the growth these various sectors of the economy enjoyed during the year. District member banks reduced their holdings of agricultural loans guaranteed by the Commodity Credit Corporation, more than off setting the rise in other loans to farmers. The loan-to-deposit ratio on December 31, 1955, was 41.6 percent, or significantly higher than at the end of 1954 but somewhat lower than at the beginning of the fourth quarter of 1955. The loan accounts provided the largest source of increase in bank income for the year. Deposit liabilities of Eleventh District member banks advanced again to an unprecedented level. Individuals’ demand and time accounts paced the rise in deposit accounts; while time deposits had the more rapid percentage gain, the larger dollar advance was recorded in demand deposits. Total deposits on December 31, 1955, were $9,488,828,000, having risen $348,135,000 — or 4 percent — for the year. Total capital accounts improved significantly during 1955, expanding $74,736,000 to the new record of $681,214,000. The ratio of capital accounts to risk assets remained approximately un changed, as the increase in capital accounts was about proportional to the growth in total assets less cash and United States Governments. 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) December 31, 1955 Item October 5, 1955 r 3,951,228 Loans (net), including overdrafts_____________ 3,694,782 U. S. Government obligations, direct and guaranteed 2,368,923 2,306,061 Obligations of states and political subdivisions_______________ 448,179451,962 O'tVipy* <3PPiiT’i,Hp<3 19KQ1Q 127,651 TOTAL LOANS (N E l ) AND INVESTMENTS ! 6,894^244 6,580,456 Cash and balances due from banks_________________ 3,159,035 2,556,398 TOTAL ASSETS _________________________________10,251,568 9,329,628 Individual — Demand deposits ___________________ 5,834,600 5,471,283 1,033,501 Individual—Time deposits________ v______________ 1,027,210 Deposits of U. S. Government, including postal 147,127 savings ________________________________________ 168,427 684,389 Deposits of states and political subdivisions_______ 802,510 1,147,911 Deposits of banks________________________________ 1,477,597 91,066 Other deposits ___________________________________ 178,484 8,575,277 TOTAL DEPOSITS __________________ 9,488,828 671,503 TOTAL CAPITAL ACCOUNTS___________________ 681,214 12,446 Borrowings from Federal Reserve Bank___________ 2,000 770 All other borrowings--------------------------------------------0 43.1% Ratio of loans to total deposits____________________ 41.6% Ratio of cash and balances due from banks 29.8% to total deposits------------------------------------------------- 33.3 % Ratio of total capital accounts to risk assets (total 15.0% assets less Government securities and cash assets) 14.4% 634 Number of banks__________________________________ 634 December 31, 1954 3,477,039 2,642,771 408,578 105,159 6,633,547 3,014,298 9,833,310 5,671,531 942,829 186,313 723,243 1,464,911 151,866 9,140,693 606,478 0 0 38.0% 33.0% 14.5% 632 r—Revised. PRINCIPAL ASSET AND LIABILITY ITEMS OF MEMBER BANKS 1945, 1950-55 ELEVENTH FEDERAL RESERVE DISTRICT (In thousands of dollars) December 31 1945 1950 1951 1952 1953 1954 1955 Total Deposits 5,738,464 7,198,467 7,742,798 8,191,531 8,556,257 9,140,693 9,488,828 Total Loans (Net) 1,138,936 2,406,188 2,570,429 2,856,931 3,099,116 3,477,039 3,951,223 Total Investments 2,863,853 2,643,066 2,768,680 2,872,876 2,886,575 3,156,508 2,943,021 Total Loans (Net) and Investments 4,002,789 5,049,254 5,339,109 5,729,807 5,985,691 6,633,547 6,894,244 Total U.S. Gov. Secs. 2,702,604 2,274,935 2,362,881 2,446,220 2,427,003 2,642,771 2,368,923 Total Capital Accounts 253,741 418,483 464,027 516,276 558,071 606,478 681,214 COMPARATIVE STATEMENT OF EARNINGS AND EXPENSES OF MEMBER BANKS ELEVENTH FEDERAL RESERVE DISTRICT (Amounts 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 wages___________________________________ Taxes other than net income__________________________ All other expenses____________________________________ TOTAL CURRENT OPERATING EXPENSES________ NET EARNINGS FROM CURRENT OPERATIONS___ Total recoveries, transfers from valuation reserves, and profits_______________________________________ Total losses and charge-offs, and transfers to valuation reserves _______________________________ Profits before income taxes____________________________ Taxes on net income_________________________________ NET PROFITS _____________________________________ Cash dividends declared 1______________________________ Number of banks_____________________________________ 1955 p 65,625 179,581 12,875 30,537 288,618 82,529 15,242 76,046 173,817 114,801 8,990 29,136 94,655 39,390 55,265 26,707 634 1954 Net Change 62,142 155,528 11,961 27,107 256,738 77,075 14,097 67,117 158,289 98,449 26,432 26,579 98,302 40,038 58,264 22,973 632 1955 over 19; 3,483 24,053 914 3,430 31,880 5,454 1,145 8,929 15,528 16,352 —17,442 2,557 — 3,647 — 648 — 2,999 3,734 2 p—Preliminary. i Includes interest on capital notes and debentures. PRINCIPAL ITEMS OF EARNINGS AND EXPENSES OF MEMBER BANKS 1945, 1950-55 ELEVENTH FEDERAL RESERVE DISTRICT (Amounts in thousands of dollars) Total Net Total Total Total Earnings Earnings Current from Current Operating from Current Recoveries Losses and Net Year Operations Expenses Operations and Profits 1 Charge-Offs 1 Profits 1945 1950 1951 1952 1953 1954 1955p 84,576 173,424 193,010 219,811 239,509 256,738 288,618 53,860 101,975 112,833 130,646 146,381 158,289 173,817 30,716 71,449 80,177 89,165 93,128 98,449 114,801 11,299 7,399 6,172 5,955 8,116 26,432 8,990 r—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 26,579 29,136 24,078 41,995 39,393 41,058 41,878 58,264 55,265 Cash Dividends Declared 2 9,715 15.081 17,531 20,006 21,157 22,973 26,707 Number of Member Banks 585 630 633 634 635 632 634
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