The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F ederal reserve Ba n k DALLAS, TEXAS of Dallas 75222 Circular No. 73-234 September 20, 1973 CO NDITIO N OF MEMBER BANKS, JUNE 30, 1973 ELEVENTH FEDERAL RESERVE DISTRICT To All Member Banks in the Eleventh Federal Reserve D istrict: Total assets of District member banks rose by only $344 million, or about 1 percent, in the first half of 1973. The composition of the assets changed considerably, however, as banks sold U.S. Government securities and some other investments to help provide loans to businesses and consumers during the strong economic expansion. The composition of bank liabilities also changed as total deposits declined somewhat and increases in borrowings were required to meet loan demands. Total loans at member banks rose by $1.03 billion, or 5.7 percent, in the first six months of this year. A $266 million increase in real estate loans accounted for more than a quarter of this change, as construction activity in the District continued at a high level. Although increases in loans secured by farmland and residential property contributed to the strength in real estate loans, the major increase was a 16.5-percent gain in loans secured by business property. With the rapid pace of economic activity in the District, commercial and industrial loans rose by 10.9 percent. Some of this increase in business loans can be attributed to the fact that increases in prime lending rates at banks lagged behind the market interest rates on alternative sources of funds to businesses. Loans to farmers and to other individuals for household and other personal expenditures rose $386 million with most of the increases representing various types of instalment loans. Loans to purchase automobiles and mobile homes were particularly strong. The only significant decline in a major loan category was in loans to financial institutions, as a 17.7-percent de crease in the first half of this year partially offset an extraordinary 55.5-percent increase in the previous six-month period. The inclusion of Federal funds sold makes this loan category subject to the somewhat erratic changes. Member banks increased their investments in the obligations of state and local govern ments by $348 million, at least in part due to the increase in the deposits of governmental units which must be secured by eligible categories of securities. But in order to meet the heavy loan demand of businesses and consumers in the face of declining total deposits, banks sold $185 million of U.S. Treasury securities and $153 million of other securities, decreasing their investments in these securities by 7.8 percent and 10.8 percent, respectively. Total deposits at member banks declined $336 million during the period, reflecting, in part, normal seasonal patterns. Individuals and businesses typically require smaller demand deposit balances in midsummer than in late December. Demand deposit balances of individuals, part nerships, and corporations declined $843 million, or 7.6 percent. Interbank deposits also decreased substantially, reflecting the high interest rates available to banks for alternative uses of such funds. Time deposits of individuals, partnerships, and corporations at member banks rose 7.4 percent, to $10.4 billion. More than half of the increase was in large negotiable certificates of deposit as banks bid aggressively for additional funds. With sales tax and income tax revenues continuing to rise in the strong economic expansion, U.S. Government deposits increased approximately 10 percent as did the deposits of states and political subdivisions. Revenue sharing payments, which began last December, also contributed to the rise in deposits of state and local governments. Under the tightening conditions in credit markets, member bank borrowings at the Federal Reserve Bank increased $21 million, or more than 50 percent, while borrowing from other sources increased $377 million, or 14.9 percent. 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) Dec. 31, 1972 June 30, 1972 18,043,657 2,389,335 4,423,667 1,410,519 26,267,178 5,919,961 33,284,151 11,034,652 9,642,206 420,377 3,642,022 2,406,511 387,548 27,533,316 2,222,533 41,335 2,531,273 65.5% 15,637,590 2,165,661 4,103,945 1,192,251 23,099,447 5,085,837 29,195,635 9,333,672 8,808,190 379,904 3,347,020 1,938,730 230,347 24,037,863 2,127,374 200 2,039,377 65.1% 21.5% 21.2% 8.9% 633 9.7% 632 June 30, 1973p Item Loans (gross), including overdrafts1________________ __19,074,300 U.S. Treasury securities_____________________________ __ 2,204,101 4,771,949 Obligations of states and political subdivisions________ 1,257,575 Other securities (including trading account securities).. TOTAL LOANS (GROSS) AND INVESTMENTS_____ _27,307,925 Cash and balances due from banks___________________ ..... 5,072,960 TOTAL ASSETS ...33,628,345 Individual — Demand d e p o sits______________________ .....10,191,505 Individual — Time d ep osits_________________________ __10,352,871 Deposits of U.S. G overnm ent_______________________ . 461,935 4,036,312 Deposits of states and political subdivisions__________ Deposits of b a n k s ________________________________ .... _ 1,902,544 Certified and officers’ checks, e t c .____________________ ..... 251,715 TOTAL DEPOSITS _ .27,196,882 . 2,363,556 TOTAL CAPITAL ACCOUNTS 62,582 Borrowings from Federal Reserve B a n k _____________ 2,908,713 All other borrowings________________________________ 70.1% Ratio of loans to total deposits______________________ Ratio of cash and balances due from banks 18.7% to total d ep osits__________________________________ ..... Ratio of total capital accounts to risk assets (total assets less Government securities and cash a s s e t s ) ________ ..... 9.0% Number of member b a n k s__ _____ ______ __________ .. . 639 1 Includes Federal funds sold, p — Preliminary PRINCIPAL ASSET AND LIABILITY ITEMS OF MEMBER BANKS AS OF SELECTED CALL DATES ELEVENTH FEDERAL RESERVE DISTRICT (In thousands of dollars) Date June 30, 1964 1965 1966 1967 June 29, 1968 June 30, 1969 1970 1971 1972 1973p Total Deposits Total Loans (G ross)1 Total Investments Total Loans (Gross) and Investments Total U.S. Treasury Securities Total Capital Accounts 13,131,582 14,026,491 14,958,226 15,761,181 7,351,208 8,292,375 28,856,218 9,383,796 4,078,522 4,169,763 24,454,270 4,705,175 11,429,730 12,462,138 13,310,488 14,088,971 2,564,231 2,418,691 2,282,741 2,266,988 1,238,498 1,359,843 1,436,338 1,511,731 17,148,944 10,246,381 5,172,916 15,419,297 2,393,234 1,601,550 18,505,827 18,446,197 21,488,589 24,037,863 27,196,882 11,597,414 11,848,383 13,701,508 15,637,590 19,074,300 5,304,234 5,353,022 6,677,975 7,461,857 8,233,625 16,901,648 17,201,405 20,379,483 23,099,447 27,307,925 2,111,304 1,949,988 2,246,757 2,165,661 2,204,101 1,717,697 1,809,987 1,951,947 2,127.374 2,363,556 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 (Gross).” p — Preliminary.
