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Selected Operating Wos of Member Banks
ELEVENTH FEDEF HESERVE DISTRICT
JANUAR
; g y : :— : ----------- :---- —---- -----------------------------------

$500 - 15999

N u m b e r o f b a n k s in
TO

TOTAL

$1,000 - $1,999 g o - $4,999

1949

group

1950

1949

1950

1949

1950

20

1950

23

61

74

126

3 .5
7 8 .9
3 2 .5
TOTAL

C A P IT A L

11.4
3.4
78.3
33.0

16.1
4 .4
7 0 .9
3 2 .0

17.1
4.3
69.9
30.5

20.1

TOTAL

1949

1950

1949

1950

1949

1950

1949

1950

212

102

85

51

45

24

21

10

11

12

10

625

618

20.2 j.2

23.5
7.1

2 0 .5

2 2 .7

29.7
4.4

2 8 .3

22.0

2 0 .5

4 .2

3.4

5 .8

5 1 .9

5 5 .3

3 0 .6

2 4 .8

57.3
26.6

6 1 .9

2 8 .9

51.2
29.0

32.3
3.3
47.1
28.1

2 4 .7

5 9 .9

27.2
5.8
50.5
31.2

2 4 .4

57.7
29.7

22.9
7.0
56.4
28.7

10.0
6.0

6 .3

10.2
5.8

5 .8

8.8
5.1

4 .3

1

9 .6

l O .s j - O

6.6

7.9 w

38.5
14.9

3 6 .8

33.1
11.2

3 2 .8

11.1

3 5 .6

33.7

3 6 .7

36.5

4 7 .5

6 .3

8 .8

•

ASSETS

° 'U

6 .2
2 9 .9

6.1
55.1
3 0 .8

5.1
5 5 .8

2 .4

3 0 .6

1
a.

22 1
6 1

b.
2

60 0
29.8

3

s

9.8
6.6r

D E P O S IT S

E A R N IN G

1

1949

3

137

29.6 * ?
“■

1 5 .2
TO

All banks

1950

3 1 .5

9 .0

4 2 .4

R A T IO S

$50,000-$99,999 $100,000 and over

1949

63.2 V

8.6
6.8

5.1
TOTAL

$10,000-$24,999 $25,000-$49,999

1950

6 3 .6

ACCOUNTS

8 .4

TO

$9,999

1949

5 .9

4. Net current operating earnings before income

R A T IO S

$5,000

t

1 1 .3

TO

1949 jjO

E A R N IN G S

1. Interest and dividends on:

R A T IO S

AND 1949
W IT H JUNE 30 DEPOSITS (in thousands o f dollars)

Y O U R BAN K
Under $500

R A T IO S

.!fr'V95

8. U. S. Government securities.............................

11.6
7.8

31.5 f
8.7

31.3
7.1

44.ljL _

51.1

11.8

9.6

12.8
7.5

10.1

29.9
6.0

3 1 .8

5 .0

32.5
5.3

3 2 .9

5 .6

31.6
5.6

3 1 .4

6.1

31.8
6.1

3 1 .4

6 .0

51.2

50.8

5 1 .5

54.3

5 0 .3

54.6

5 7 .2

57.7

7 .0

29.9

6 .3

8.6

6.9
3.4

1 0 .3

34.0
6.7

3 2 .7

6.2
4 6 .0

45.9

7 .5

4

11.0
7.3

5

7 .7

31.8
7.9

7

4 8 .2

47.5

8

6 .9

6

r—Revised.

EXPLANATION
The basic data used in the compilation of the ratios were taken from reports fur­
nished by member banks. The asset and liability items were taken from member bank
condition reports of June 30, 1950, and June 30, 1949. Earnings and expense items are
the amounts reported by member banks for the first 6 months of each year.
Banks were grouped according to the amount of their total deposits at the end of
June of each of the 2 years. Group ratios are expressed in percentages and are averages
of the ratios of the individual banks. This procedure prevents the data for the larger
banks in a group from exercising an undue influence on the ratios of the group and on
the ratios for all banks. Inasmuch as there should be about as many banks above the
average as there are below it, the group averages should not be considered as stand­
ards” of performance. It is not important that the ratios of your bank conform to the
average, but it is important to know the reasons for the differences.

Ratio No. 4— Net current operating earnings to total capital accounts
The ratio is computed by dividing total capital accounts (capital, surplus, undivided
profits and reserves, including retirement account for preferred capital) into net current
operating earnings and shows the rate of earnings on total capital accounts. Because this
report covers earnings for a half year only and because total capital accounts of most
banks remain relatively fixed through the year, the ratio of net current operating earn­
ings to total capital accounts shown in this report is smaller than for the full year 1949.
Ratio No. 5—Net profits after income taxes to total capital accounts
The ratio is computed by dividing total capital accounts into net profits after income
taxes. It is similar to ratio No. 4, except that adjustment has been made for losses and
recoveries and for the payment of income taxes.

Ratio No. la— Interest on Government securities to total earnings
The ratio is computed by dividing total earnings into earnings from interest on
Government securities and shows the percentage of total earnings derived from that
source of income.
Ratio No. lb __Interest and dividends on other securities to total earnings
The ratio is computed by dividing total earnings into earnings from interest and
dividends on other securities and shows the percentage of total earnings derived from
other security holdings.
Ratio No. 2—Interest and discount on loans to total earnings

Ratio No. 6— Cash assets to total deposits
The ratio is computed by dividing total deposits into cash assets (item 1 in the
call report, which includes cash, balances with other banks including reserve balances
and cash items in process of collection). The ratio shows the percentage of total deposits
held in the form of cash assets.
Ratio No. 7— Total capital accounts to total deposits

The ratio is computed by dividing total earnings into earnings from interest and
discount on loans and shows the percentage of total earnings derived from interest and
discount on loans.

The ratio is computed by dividing total deposits into total capital accounts and
shows total capital accounts as a percentage of total deposits.

Ratio No. 3—Salaries and wages to total earnings
The ratio is computed by dividing total earnings into the amount spent on salaries
and wages of officers and employees and shows the percentage of total earnings absorbed
by the payment of all salaries and wages. Ordinarily, this is the largest item of expense
at member banks. The ratio tends to decline as the size of the bank increases.

Ratio No. 8—
-United States Government securities to total earning assets
The ratio is computed by dividing total earning assets into holdings of United
States Government securities. In this study, total earning assets include all loans and
all types of security holdings.