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F ederal Reserve Bank of Dallas DALLAS, TEXAS 75222 Circular No. 68-197 September 11, 1968 CONDITION OF MEMBER BANKS, JUNE 29, 1968 ELEVENTH FEDERAL RESERVE DISTRICT To All Member Banks in the Eleventh Federal Reserve D istrict: Total loans and investm ents at the D istrict’s member banks expanded $185 million, or 1.2 percent, during the first half of 1968. This increase is considerably below the $296 million, or 2.2-percent, rise in the first half of 1967. Changes in the major asset and liability items at these banks were heavily influenced by the surge in economic activity, the associated monetary restraint, and the high interest rates of the first half of the current year. The rapid expansion in the D istrict’s economy produced an increase in loan demand, particularly for consumer and real estate loans. A t the same time, however, monetary restraint resulted in considerably less strength in both demand and tim e and savings deposits. W ith deposits declining and with mod erately heavy loan demand, member banks in the District reduced their holdings of investm ents. The $185 million gain in total loans and investm ents at the D istrict’s member banks in the first half of this year was entirely the result of a $288 million rise in loans, an increase which exceeded the $210 million advance in the corresponding 1967 period. Business loans expanded $100 million, only slightly more than in the first half of 1967, although these loans were quite strong at the larger banks. Consumer loans rose $96 million, and real estate loans, $78 m illion; combined, these advances were more than three tim es the rate of increase in the pre vious year. In mid-1968, real estate loans, led by loans secured by nonfarm, nonresidential property, were nearly 18 percent above a year earlier. In contrast, total investm ents fell $102 million, as a substantial decline of $217 million in holdings of U.S. Government issues more than offset the $114 million gain in the non-Govemment securities portfolio. During the first 6 months of 1968, deposits of individuals, partnerships, and corporations fell $220 million, compared with a nominal decline in the first half of 1967. The reduction in IPC deposits was entirely in demand deposits, which fell $540 million, or 6.8 percent; but in mid-1968, these deposits were 9.7 percent above a year earlier. Although advancing $321 million, or 5.6 percent, IPC time and savings deposits also showed less strength than in the same period in 1967. This relative weakness primarily reflected the competition from high market interest rates. The basic midyear trends of the past few years persisted, with the ratio of loans to total deposits edging slightly higher and the ratio of capital accounts to risk assets slipping steadily lower. Of special note is the continued rise in borrowings, much of which reflected Federal funds purchases. These borrowings reached $490.6 million at mid-1968, or $95.0 million more than a year earlier and nearly $200.0 million above the mid-1966 level. 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 (Am ounts in thousands of dollars) Ju n e 29, 1968p Item Loans (net), including overdrafts1 .10,063,339 U.S. Government obligations__________________________ 2,393,217 Obligations of states and political subdivisions_________ 2,256,740 Other securities _____________________________________ . 522,764 TOTAL LOANS (N E T ) AND IN V ESTM EN TS________.15,236,060 Cash and balances due from banks_____________________ . 3,713,293 TOTAL ASSETS . . .19,549,194 Individual — Demand d e p o sits________________________ . 7,413,910 Individual — Time d e p o sits___________________________ . 6,070,481 Deposits of U.S. Government, including postal savings..... 205,877 Deposits of states and political subdivisions___________ . 1,771,419 Deposits of b a n k s ____________________________________ . 1,510,588 176,654 Certified and officers’ checks, etc______________________ TOTAL, DEPO SITS .17,148,929 TOTAL CA PITA L ACCOUNTS 1,601,547 16,233 Borrowings from Federal Reserve Bank_______________ All other borrowings _________________________________ . 474,371 Ratio of loans to total deposits________________________ . 58.7% Ratio of cash and balances due from banks to total deposits____________________________________ . 21.7% Ratio of total capital accounts to risk assets (total assets less Government securities and cash a sse ts)__________ . 11.9% Number of member banks_____________________________. 663 _____________________________________________________ . . _ . . Dec. 30, 1967 Ju n e 30, 1967 9,775,383 2,610,139 2,135,273 529,792 15,050,587 4,279,773 19,906,830 7,954,181 5,749,849 199,880 1,735,222 1,845,026 224,574 17,708,732 1,539,474 5,800 375,201 55.2% 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% 24.2% 21.9% 11.8% 667 12.4% 671 1 Includes F ederal funds sold. p— P relim inary. PRINCIPAL ASSET AND LIABILITY ITEMS OF MEMBER BANKS AS OF SELECTED CALL DATES ELEVENTH FEDERAL RESERVE DISTRICT (In thousands of dollars) Date June 10, 1959 June 15, 1960 June 30, 1961 1962 June 29, 1963 June 30, 1964 1965 1966 1967 June 29, 1968p Total Deposits Total Loans (N et)1 Total Investments Total Loans (Net) and Investments Total U.S. Gov. Secs. Total Capital Accounts 9,864,995 4,632,461 3,400,541 8,033,002 2,576,445 902,267 9,815,514 4,877,424 3,206,915 8,084,339 2,387,143 953,245 10,653,569 11,612,983 5,089,470 5,709,653 3,576,367 3,823,628 8,665,837 9,533,281 2,645,929 2,756,538 1,006,705 1,084,510 12,544,624 6,301,403 4,114,110 10,415,513 2,834,081 1,154,072 13,131,582 14,026,491 14,958,226 15,761,181 7,214,565 8,141,491 28,697,580 9,218,284 4,078,522 4,169,763 24,454,270 4,705,175 11,293,087 12,311,254 13,151,850 13,923,459 2,564,231 2,418,691 2,282,741 2,266,988 1,238,498 1,359,843 1,436,338 1,511,731 17,148,929 10,063,339 5,172,721 15,236,060 2,393,217 1,601,547 1 Includes F ederal funds sold. 2 Commodity C redit C orporation certificates of in terest and E x p o rt-Im p o rt Bank particip atio n s are henceforth included in “T otal Investm ents,” ra th e r th a n “T otal Loans (N e t).” p— P relim inary.
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