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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.