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F ed er a l R eser ve Ba n k o f D allas DALLAS, TEXAS 75222 C ircular No. 75-173 N ovem ber 12, 1975 CONDITION OF MEMBER BANKS, JUNE 30, 1975 ELEVENTH FEDERAL RESERVE DISTRICT To All Member Banks in the Eleventh Federal Reserve District: Total credit a t m em ber banks in th e E leventh D istrict grew only m oderately in th e first h alf of 1975 as th e economy reg istered one of its deepest declines of th e postw ar period. Bank loans increased m arginally, and banks acquired m unicipal securities a t a r a te only one-third as f a s t as in th e sam e period in 1974. However, holdings of U.S. G overnm ent securities expanded rapidly th ro u g h m idyear. Total deposits declined slightly, and m em ber banks increased th e ir borrow ings, p rim arily in th e Federal fu nds m ark et, in order to finance th e grow th in to tal credit. Total loans rose 1.9 p ercent in th e first h a lf of 1975 — even less th a n th e m odest 2.7 percent increase fo r th e sam e period in 1974. Business loans rose only slightly. Loan dem and was generally weaker, and som ew hat m ore restric tiv e lending policies w ere in effect a t m any banks in th e first h a lf of 1975. More a ttra c tiv e conditions in bond and equity m ark e ts p erm itted some large corporations to sh ift a sizable portion of th e ir sh o rt-te rm bank borrow ing into long-term m a rk e t debt. In addition, curtailm en ts in plan t and equipm ent expenditures and sh arp cuts in inventories allowed businesses to f u rth e r reduce th e ir need fo r bank loans. Real e sta te loans declined 1.0 percent, reflecting fu rth e r w eakening in construction activity in th e D istrict. M ortgage ra te s rem ained high th ro u g h o u t th e period, especially on residential construction m ortgages. Consum er loans were about unchanged a s concern over continuing inflation and u n c e rta in ty over th e fu tu re of th e economy led consum ers to exercise considerable caution in borrow ing and spending. A utom obile sales slackened m arkedly following th e end of th e cash reb a te plans in late February, and sales of o th er durable goods stren g th en ed only m oderately as a re s u lt of th e spring ta x refunds and cash rebates. W ith relatively weak loan dem and and th e desire to im prove liquidity positions, m em ber banks in th e D istrict substantially increased th e ir holdings of U.S. T reasu ry securities in th e first six m onths of 1975. M oreover, sales of G overnm ent issues w ere a ttrac tiv e ly priced as th e volume of such debt coming to m ark e t rose sharply during th is period. H oldings of T reasu ry securities increased 24.5 percent, but holdings of m unicipal securities advanced only 3.8 percent. Total deposits declined slightly in th e first h alf of th e year, m ainly because of a sh arp reduction in interb an k deposits. Dem and deposits of individuals and businesses rose less th a n 1 percent. Time deposits of individuals and businesses rose 3.7 percent a s declining m oney m ark e t ra te s on a lte rn a tiv e investm ents increased th e a ttrac tiv e n e ss of such deposits. In addition, some of th e ta x refunds and rebates, as well as th e bonus Social Security checks, were deposited in savings accounts — a t least tem porarily. W ith th e small decline in to tal deposits, however, D istrict m em ber banks relied prim arily on th e F ederal funds m a rk e t to finance th e grow th in assets. S in c e r e ly y o u r s , E rn e st T. B aughm an P r e s id e n t 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, 1974 June 30, 1974 21,897,329 2,026,000 5,744,738 1,467,245 31,135,312 7,141,099 39,794,541 12,159,295 12,496,891 255,625 4,642,418 2,849,047 379,295 32,782,571 2,765,183 23,100 2,917,492 66.8% 21,423,061 2,029,553 5,543,596 1,391,422 30,387,632 5,615,633 37,405,411 11,132,553 11,764,406 315,234 4,497,329 1,963,138 311,452 29,984,112 2,656,277 148,616 3,318,942 71.4% 21.8% 18.7% 9.0% 658 8.9% 650 June 30, 1975 Item Loans (gross), including o v e rd ra fts1___________________ .22,308,585 U. S. T reasu ry securities______________________________ . 2,522,597 O bligations of s ta te s and political subdivisions... _____ _ 5,963,645 O ther securities (including tra d in g account se cu ritie s)... 1,455,450 TOTAL LOANS (GROSS) AND INVESTMENTS______ 32,250,277 Cash and balances due from b an k s______________________ 6,029,087 TOTAL ASSETS_____________ ___ _________________ .40,072,897 Individual — Dem and deposits _______________________ _.12,202,157 Individual — Time d e p o s its ___________________________ .12,957,845 Deposits of U. S. G o v e rn m e n t__________ ___ ___ ______ . 207,328 Deposits of sta te s and political subdivisions____________ _ 4,645,548 D eposits of b a n k s ____________________________________ . 2,434,954 Certified and officers’ checks, etc___ _______________ ____ . 286,037 TOTAL DEPOSITS _________ ______ _______________ .32,733,869 TOTAL CAPITAL ACCOUNTS___________ _______ _ 2,918,196 Borrow ings from F ederal R eserve B a n k _______________ . 489 All o th e r borrow ings ________ . 3,046,354 Ratio of loans to total deposits ____ ____ . 68.2% R atio of cash and balances due from banks to to tal d e p o s its ____________________________________ . 18.4% Ratio of to tal capital accounts to risk assets (total assets 9.3% less Governm ent securities and cash assets) _________ . N um ber of m em ber b a n k s ____________________________ . 663 1 Includes Federal funds sold. PRINCIPAL ASSET AND LIABILITY ITEMS OF MEMBER BANKS AS OF SELECTED CALL DATES ELEVENTH FEDERAL RESERVE DISTRICT (In thousands of dollars) D ate Ju n e 30, 1966 1967 June 29, 1968 Ju n e 30, 1969 1970 1971 1972 1973 1974 1975 Total Deposits Total Loans (G ro ss)1 14,958,226 15,761,181 a8,856,218 9,383,796 H , 454,270 17,148,944 18,505,827 18,446,197 21,488,589 24,037,863 27,196,817 29,984,112 32,733,869 Total Loans (Gross) and Investm ents Total U.S. T reasury Securities Total Capital Accounts 4,705,175 13,310,488 14,088,971 2,282,741 2,266,988 1,436,338 1,511,731 10,246,381 5,172,916 15,419,297 2,393,234 1,601,550 11,597,414 11,848,383 13,701,508 15,637,590 19,074,334 21,423,061 22,308,585 5,304,234 5,353,022 6,677,975 7,461,857 8,233,601 8,964,571 9,941,692 16,901,648 17,201,405 20,379,483 23,099,447 27,307,935 30,387,632 32,250,277 2,111,304 1,949,988 2,246,757 2,165,661 2,204,081 2,029,553 2,522,597 1,717,697 1,809,987 1,951,947 2,127,374 2,363,583 2,656,277 2,918,196 Total Investm ents 1 Includes Federal funds sold. 2 Commodity Credit Corporation certificates o f interest and E xport-Im port Bank participations are henceforth included in “Total Investm ents,” rather than “Total Loans (G ro ss).”
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