View original document

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.