The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F ederal Reserve Bank DALL AS, T E X A S of Dallas 75222 Circular No. 68-57 M arch 13, 1968 CONDITION AND INCOME OF MEMBER BANKS ELEVENTH FEDERAL RESERVE DISTRICT To All M ember B anks in the Eleventh Federal Reserve D istrict: Bank revenues and expenses and total bank credit registered substantial increases a t m em ber banks in the Eleventh F ederal Reserve D istrict d u rin g 1967. The easing of m onetary policy and the persistence of high levels of in te rest rate s w ere m ajo r factors contributing to these developments. W ith rapid grow th in deposits, m em ber banks in the D istrict added heavily to th e ir investm ent holdings (especially investm ents in non-U.S. Governm ent securities) and expanded th e ir loan portfolios substantially. Total assets of th e D istrict m em ber banks rose $1.8 billion to a to tal of $19.9 billion on December 30, 1967, reflecting a gain of m ore th a n 10 percent over the previous year-end. N et income of D istrict m em ber banks rose 11.4 percent during 1967, about th e sam e percentage increase as in 1966. Total c u rren t operating revenue advanced 10.7 percent ($85.3 m illion), w ith gains of 13.1 percent ($22.0 million) in in te rest and dividends on securities and 9.8 percent ($53.1 million) in in te rest and discount on loans. On th e expense side, in te rest paid on tim e and savings deposits rose 16.1 percent ($37.9 million) and was th e m ajo r fac to r in th e 11.1-percent ($65.2 million) gain in to tal c u rren t operating expenses. In 1966 th is item of expense showed a gain of 24 percent. Credit expansion a t D istrict m em ber banks in 1967 totaled $1.4 billion, or 10.4 p er cent, m ore th a n twice th e percentage increase in 1966. M ember banks added heavily to th e ir holdings of obligations of sta te s and political subdivisions ($256.2 million, or 13.6 percent) and U.S. Governm ent securities ($254.6 million, or 10.8 percent), as yields on these issues w ere relatively a ttra c tiv e and funds w ere available. Also, loan portfolios expanded $767 million, or 8.5 percent. A lthough th e rise in credits extended to commercial and industrial firms accounted fo r alm ost one-half of th e total gain, notable increases w ere recorded in loans to individuals and financial institutions and credits secured by real estate. Total deposits a t th e D istrict’s m em ber banks increased $1.6 billion, or 10.2 percent, in 1967. In co n tra st to th e experience of o th er recent years, th e rise of 8.9 percent ($888 million) in dem and deposits contributed im portantly to total deposit expansion. P a rtly reflecting th e unusually high ra te of personal savings during th e y e a r and also th e a ttra c tiveness of tim e deposit rate s relative to open m ark e t ra te s during m uch of th e year, tim e and savings deposits of individuals, partn erships, and corporations advanced 14.4 percent. Reflecting th e rebuilding of liquidity by D istrict banks, th e ratio of total loans to total deposits declined from 56.0 percent on December 31, 1966, to 55.2 percent on December 30, 1967. The ratio of total capital accounts to risk assets declined from 12.3 percent on December 31, 1966, to 11.8 percent on December 30, 1967. Yours very truly, P. E. Coldwell 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) June 30, 1967 Dec. 31, 1966 9,775,599 2,610,106 2,135,242 OtViPT* Q p p i i r i t i p c ! 529,715 15,050,662 TOTAL LOANS (NET) AND INVESTMENTS "" 4,279,750 Cash and balances due from banks----------------------19,906,823 TOTAL ASSETS_____________________________ 7,954,309 Individual — Demand deposits--------------------------5,749,867 Individual — Time deposits 199,848 Deposits of U.S. Government, including postal savings.. 1,735,181 Deposits of states and political subdivisions_________ 1,845,007 Deposits of banks---------------------------------------------224,547 Certified and officers’ checks, etc---------------------------TOTAL DEPOSITS _____________________________ 17,708,759 1,539,435 TOTAL CAPITAL ACCOUNTS___________________ 5,800 Borrowings from Federal Reserve Bank375,201 All other borrowings.. 55.2% Ratio of loans to total deposits______________________ 9,218,284 2,266,988 1,988,990 449,197 13,923,459 3,456,519 17,909,610 6,756,825 5,447,052 212.199 1,718,002 1,465,903 161.200 15,761,181 1,511,731 3,435 392,439 58.5% 9,008,633 2,355,472 1,879,082 383,831 13,627,018 3,930,450 18,096,045 7,183,613 5,026,958 172,113 1,761,794 1,745,193 183,559 16,073,230 1,454,963 400 316,814 56.0% 24.2% 21.9% 24.5% 11 .8 % 667 12.4% 671 12.3% 673 Dec. 30, 1967p Item Loans (net), including overdrafts1----------------------U.S. Government obligations, direct and guaranteed.. Obligations of states and political subdivisions____ 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 member banks---------------------------------------1 Includes Federal funds sold, p—Preliminary. PRINCIPAL ASSET AND LIABILITY ITEMS OF MEMBER BANKS 1958-67 ELEVENTH FEDERAL RESERVE DISTRICT (In thousands of dollars) Date Dec. 31, 1958 1959 1960 1961 Dec. 28, 1962 Dec. 20, 1963 Dec. 31, 1964 1965 1966 Dec. 30, 1967p Total Deposits Total Loans (N e t)1 Total Investments Total Loans (N et) and Investments Total U.S. Gov. Secs. Total Capital Accounts 10,659,885 10,669,985 11,215,770 12,167,914 4,617,590 4,857,870 5,154,181 5,645,684 3,544,026 3,469,554 3,501,845 3,893,949 8,161,616 8,327,424 8,656,026 9,539,633 2,711,203 2,594,655 2,620,601 2,904,526 849,568 909,042 973,089 1,034,789 12,456,678 6,167,837 4,099,016 10,266,853 2,910,190 1,132,235 12,968,887 6,854,157 4,200,729 11,054,886 2,767,547 1,202,411 14,489,488 15,366,002 16,073,230 7,740,423 8,509,564 29,008,633 4,268,358 4,481,641 24,618,385 12,008,781 12,991,205 13,627,018 2,669,966 2,498,091 2,355,472 1,298,084 1,378,642 1,454,963 17,708,759 9,775,599 5,275,063 15,050,662 2,610,106 1,539,435 1 Includes Federal funds sold. 2 Commodity Credit Corporation certificates of interest and Export-Import Bank participations are henceforth included in “Total Investments,” rather than “Total Loans (N et).” p— Preliminary. COMPARATIVE STATEM ENT OF INCOME AND DIVIDENDS OF M EM BER BANKS E L E V E N T H F E D E R A L R E SE R V E DISTRICT (A m ounts in thousands of dollars) 1967p Item Net Change, 1967 from 1966 1966 In te re st and dividends on se cu rities________________ ____ 189,702 In te re st and discount on loans______________________ ____ 596,913 Service charges on deposit accounts_____________________ 37,119 59,363 All o th er revenue .. ____ _________________________ TOTAL CU RRENT OPERATING R E V E N U E _______ ____ 883,097 Salaries and wages ____ . ....... .... ____ 173,483 In te re st on tim e and savings deposits________ ______ ____ 273,098 All o th e r e x p e n s e s _____ ___________________ __ ____ ____ 204,986 TOTAL CU RRENT OPERATING E X P E N S E S _____ ____ 651,567 N E T CU RRENT OPERATING EA R N IN G S_________ ____ 231,530 Total recoveries, tra n s fe rs from valuation reserves, and profits _____________________________________ ____ 12,134 Total losses, charge-offs, and tra n s fe rs to valuation reserves ___________________________________ 60,989 N et in romp, before related ta x e s ........ ......................... ____ 182,675 Taxes on n e t incom e____________________________________ 52,665 N E T INCOME ______ __ ___________________________ ____ 130,010 Cash dividends declared1--------------------------- -------- ----- _ _ 64,606 N um ber of m em ber b a n k s _________________________ ____ 667 167,741 543,846 33,883 52,364 797,834 159,949 235,226 191,222 586,397 211,437 21,961 53,067 3,236 6,999 85,263 13,534 37,872 13,764 65,170 20,093 8,880 3,254 56,076 164,241 47,497 116,744 59,816 673 4,913 18,434 5,168 13,266 4,790 —6 1 Includes interest on capital notes and debentures, p—Preliminary. PR IN C IPA L ITEMS OF INCOME AND DIVIDENDS OF M EM BER BANKS 1958-67 E L E V E N T H F E D E R A L R E SE R V E DISTRICT (A m ounts 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 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967p 378,067 424,727 458,798 459,019 516,727 573,061 637,030 701,424 797,834 883,097 241,292 269,118 289,110 295,129 344,023 396,221 452,370 509,130 586,397 651,567 136,775 155,609 169,688 163,890 172,704 176,840 184,660 192,294 211,437 231,530 19,610 9,638 10,665 19,768 13,765 15,714 14,330 9,569 8,880 12,134 29,947 43,381 32,038 35,737 38,872 39,873 51,096 50,802 56,076 60,989 76,123 70,630 88,765 88,748 89,803 90,545 95,942 105,100 116,744 130,010 Number of Cash Dividends Member Declared2 Banks 34,315 37,623 40,702 42,164 44,167 46,668 50,956 56,080 59,816 64,606 631 633 632 630 632 656 672 675 673 667 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.
@FedFRASER