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F ed era l R ese r v e Bank
DALLAS. TEXAS

of

Dallas

75222

Circular No. 67-50
March 13, 1967

CONDITION AND INCOME OF MEMBER BANKS
ELEVENTH FEDERAL RESERVE DISTRICT

To All Member Banks
in the Eleventh Federal Reserve District:
The rapid growth of the national economy during most of 1966, the concomitant
demands for borrowed funds, and a gradual tightening of monetary policy produced the
highest interest rates in nearly 40 years, augmented both bank revenues and expenses,
and caused sharp alterations in the composition of member bank assets and liabilities.
Total assets of member banks in the Eleventh Federal Reserve District advanced $887
million to an end-of-year figure of $18,096,254,000.
During 1966, interest and discount on loans at District member banks rose 13.9 per­
cent ($66.5 million), thus providing the major impetus to the 13.8-percent ($96.5 million)
increase in total current operating revenue. At the same time, the 24.0-percent ($45.4
million) rise in interest on time and savings deposits accounted for over one-half of the
15.2-percent ($77.3 million) increase in total current operating expenses. Because expenses
rose faster than revenue in 1966, net current operating earnings expanded at a slower
rate than revenue (10.0 percent versus 13.8 percent). Total losses, charge-offs, and trans­
fers to valuation reserves continued to rise rapidly in 1966; but taxes on net income
advanced only 3.7 percent, resulting in an 11.5-percent increase in net income, or somewhat
above the gain in 1965.
As interest rates rose in 1966, banks shifted their portfolios in favor of higheryielding loans and tax-exempt securities and away from U.S. Government securities.
Holdings of U.S. Government securities declined 5.7 percent, but holdings of non-U.S.
Government securities (primarily tax-exempts) rose 14.0 percent. Net loans increased a
more modest 5.9 percent, as liquidity considerations inhibited growth in the second half
of the year.
Rising interest rates induced a rapid expansion of time deposits relative to noninterest-bearing demand deposits. Time deposits of individuals, partnerships, and cor­
porations rose 9.1 percent, but their demand deposits increased only 2.2 percent. Similarly,
time deposits of state and local governments rose 13.5 percent, in contrast to a 4.1-percent
increase in their demand deposits. Total deposits of the U.S. Government fell 7.7 percent
during the year.
On December 31, 1966, the ratio of total loans to total deposits was 56.0 percent, or
0.6 percentage point higher than the year-earlier figure but 2.1 percentage points lower
than the June 30, 1966, ratio. The ratio of total capital accounts to risk assets declined
from 12.6 percent on December 31, 1965, to 12.3 percent on December 31, 1966.
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)
Dec. 31,
June 30,
Dec. 31,
Item
1966p
1966
1965
___________________ 29,008,844 28,697,580
8,509,564
Loans (net), including overdrafts1
U.S. Government obligations, direct and guaranteed_____ 2,355,901
2,282,741
2,498,091
Obligations of states and political subdivisions_________ 1,878,393
1,783,579
1,691,921
Other securities _________________________________ 2383,773
2387,950
291,629
TOTAL LOANS (NET) AND INVESTMENTS________ 13,626,911 13,151,850 12,991,205
Cash and balances due from banks_ _______________ 3,930,459
_
3,254,386
3,730,727
TOTAL ASSETS ________________________________ 18,096,254 16,911,827 17,209,296
Individual — Demand deposits _____________________ 7,183,610
6,479,071
7,032,046
4,959,925
4,608,185
Individual — Time deposits ________ _______________ 5,026,952
Deposits of U.S. Government, including postal savings_
_ 172,113
375,657
186,559
Deposits of states and political subdivisions__________ 1,761,789
1,661,848
1,611,149
Deposits of banks _________ _______ ______________ 1,745,190
1,345,698
1,743,211
Certified and officers’ checks, etc____________________ 183,557
136,027
184,852
TOTAL DEPOSITS _______________________________16,073,211 14,958,226 15,366,002
1,436,338
1,378,642
TOTAL CAPITAL ACCOUNTS_____________________ 1,454,663
Borrowings from Federal Reserve Bank_______________________ 400
7,324
19,646
246,262
All other borrowings______________________________________ 312,377284,468
Ratio of loans to total deposits_______________________________56.0% 58.1%
55.4%
Ratio of cash and balances due from banks
to total deposits_________________________________________ 24.5% 21.8%
24.3%
Ratio of total capital accounts to risk assets (total assets
less Government securities and cash assets)__________________ 12.3% 12.6%
12.6%
Number of member banks_____
_________________________673
676
675
1Includes Federal funds sold.
2Commodity Credit Corporation certificates of interest and Export-Import Bank participations are now included
in “Other securities,” rather than “Loans (net), including overdrafts.”
p—Preliminary.

PRINCIPAL ASSET AND LIABILITY ITEMS OF MEMBER BANKS
1957-66
ELEVENTH FEDERAL RESERVE DISTRICT
(In thousands of dollars)

Date

Dec. 31,
1957
1958
1959
1960
1961
Dec. 28,
1962
Dec. 20,
1963
Dec. 31,
1964
1965
1966p

Total
Deposits

Total
Loans
(N et)1

Total
Investments

Total Loans
(Net) and
Investments

9,701,443
10,659,885
10,669,985
11,215,770
12,167,914

4,163,708
4,617,590
4,857,870
5,154,181
5,645,684

3,098,982
3,544,026
3,469,554
3,501,845
3,893,949

12,456,678

6,167,837

12,968,887
14,489,488
15,366,002
16,073,211

Total U.S.
Gov. Secs.

Total
Capital
Accounts

7,262,690
8,161,616
8,327,424
8,656,026
9,539,633

2,397,877
2,711,203
2,594,655
2,620,601
2,904,526

798,713
849,568
909,042
973,089
1,034,789

4,099,016

10,266,853

2,910,190

1,132,235

6,854,157

4,200,729

11,054,886

2,767,547

1,202,411

7,740,423
8,509,564
29,008,844

4,268,358
4,481,641
24,618,067

12,008,781
12,991,205
13,626,911

2,669,966
2,498,091
2,355,901

1,298,084
1,378,642
1,454,663

-

1 Includes Federal funds sold.
2 Commodity Credit Corporation certificates of interest and Export-Im port Bank participations are now included
in “Total Investments,” rath er than “Total Loans (N e t).”
p—Preliminary.

COMPARATIVE STATEMENT OF INCOME AND DIVIDENDS OF MEMBER BANKS
ELEVENTH FEDERAL RESERVE DISTRICT
(Amounts in thousands of dollars)
1965

Net Change,
1966 from 1965

148,502
477,218
29,808
45,896
701,424
148,587
189,294
171,249
509,130
192,294

19,234
66,517
4,073
6,685
96,509
11,355
45,400
20,504
77,259
19,250

9,569

—883

50,802
151,061
45,961
105,100
56,080
675

4,593
13,774
1,707
12,067
3,737
—2

1966p

Item

Interest and dividends on securities _
_ - _ ___ 167,736
.......
...... ..___ 543,735
Interest and discount on loans
Service charges on deposit accounts______________ __ 33,881
All other revenue
52,581
TOTAL CURRENT OPERATING REVENUE ________ 797,933
Salaries and wages
___ __ _ . ............159,942
_
Interest on time and savings deposits
_____ 234,694
All other expenses
191,753
TOTAL CURRENT OPERATING EXPENSES_____ ___ 586,389
_ . .211,544
NET CURRENT OPERATING EARNINGS
Total recoveries, transfers from valuation reserves,
and profits
8,686
Total losses, charge-offs, and transfers to
valuation re s e r v e s
___ 55,395
Net income before related taxes
...... 164,835
Taxes on net income
47,668
NET INCOME
...117,167
Cash dividends declared1
___ 59,817
Number of member banks
___
673
1 Includes interest on capital notes and debentures,
p—Preliminary.

PRINCIPAL ITEMS OF INCOME AND DIVIDENDS OF MEMBER BANKS
1957-66
ELEVENTH FEDERAL RESERVE DISTRICT
(Amounts in thousands of dollars)

Year

Total
Current
Operating
Revenue1

Total
Current
Operating
Expenses1

Net
Current
Operating
Earnings

Total
Recoveries,
Transfers,
and Profits

Total
Losses,
Charge-offs,
and
Transfers

Net
Income

1957
1958
1959
1960
1961
1962
1963
1964
1965
1966p

349,842
378,067
424,727
458,798
459,019
516,727
573,061
637,030
701,424
797,933

216,929
241,292
269,118
289,110
295,129
344,023
396,221
452,370
509,130
586,389

132,913
136,775
155,609
169,688
163,890
172,704
176,840
184,660
192,294
211,544

7,751
19,610
9,638
10,665
19,768
13,765
15,714
14,330
9,569
8,686

29,262
29,947
43,381
32,038
35,737
38,872
39,873
51,096
50,802
55,395

67,309
76,123
70,630
88,765
88,748
89,803
90,545
95,942
105,100
117,167

Number
Cash
of
Dividends Member
Declared2 Banks

31,577
34,315
37,623
40,702
42,164
44,167
46,668
50,956
56,080
59,817

634
631
633
632
630
632
656
672
675
673

1 Beginning in 1961, income and expenses related to bank premises are reported net (plus or minus) under current
operating expenses.
2 Includes interest on capital notes and debentures,
p—Preliminary.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102