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FEDERAL RESERVE BANK OF DALLAS Typical Operating Ratios of Member Banks In The Eleventh Federal Reserve District For The Years 1929, 1933, 1934, and 1935. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) ANALYSIS OF MEMBER BANKS’ EARNINGS AND EXPENSES There is presented in the following pages a tabulation showing, for the years 1929, 1933, 1934, and 1935, typical operating ratios (expressed in percentages) of member banks in the Eleventh Federal Reserve District. The banks were classified according to the volume of their loans and investments and divided into six groups. It is believed that the banks in these respective groups are confronted with similar operating problems and that each bank will find it profitable to compare its ratios with those for the group. It is realized, however, that banks with approximately the same volume of loans and investments operate under widely varying conditions due to the types of business handled, the diversity of climatic conditions, and the variation in interest rates between com munities. Therefore, in order to give a broader basis of comparison the sources of income and the distribution of earnings have been expressed as percentages of gross earnings and as percentages of loans and investments. Other ratios which have an important bearing on a bank’s operation and earning capacity are also given. In compiling these ratios we have included only the figures of those banks for which complete annual data were available. In the case of new banks, reorganizations, and con solidations the figures of the new or succeeding institution were not used unless it had been in operation for a full calendar year. Likewise, the figures for those banks which operated on a restricted basis for any part of a given calendar year have been excluded from that particular year. Base figures covering capital, surplus, gross deposits, time deposits, and loans and investments were obtained from averages of the figures shown on the condition reports rendered as of June 30 and December 31 of each year. All other figures were obtained from the semi-annual earnings and dividend reports. “ Loans and investments” include loans and discounts, bills of exchange, overdrafts, United States Government securities (direct and fully guaranteed) and other stocks, bonds, and securities. May 6,1936 T Y P IC A L O P E R A TIN G R A T IO S M BER BANKS IN TH ELEVEN EM E TH DISTRICT WITH LOANS AND INVESTM ENTS UNDER $150,000 PERCENTAGES OF GROSS EARNINGS: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Interest and discount on loans and investments........... Other earnings.............. ......................................................... Salaries and wages ............................................................... Interest paid on gross deposits............. .......................... Other expenses....................................................................... Total expenses ( 3 + 4 + 5 ) .................................................... Net earnings......................... .................................................. Net losses.............................................................................. Total expenses and losses (6 + 8 ) ..................................... Net addition to profits....... ................................................ 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. Interest and discount on loans and investments...... . Other earnings..................... ................................................. Total earnings (1 1 + 1 2 )....... .......................— ................. Salaries and wages........... ........ ~......................— ........— Interest paid on gross deposits.................... .................... Other expenses ..............—................ ................................... Total expenses (1 4 + 1 5 + 1 6 ).............................................. Net earnings....................... ............................- ...................... Net losses............ ............. - ----------- ------.... - ..................... Total expenses and losses (17 + 19).......... ...................... Net addition to profits ....... ............................................. Capital, surplus, profits, and reserves ............... .......... Gross deposits........................................................................ 24 25. 26. 27. 28. Net earnings (before losses) to capital and surplus.... Net addition to profits to capital and surplus. ............ Time deposits to gross deposits............. ......................... Capital and surplus to gross deposits............................. Interest on deposits to gross deposits ................ ............ 1929 1933 1934 1935 87.93 12.07 35.92 5.44 28.02 69.38 30.62 24.14 93.52 6.48 86.73 13.27 42.41 6.45 35.82 84.68 15.32 39.63 124.31 — 24.31 84.59 15.41 40.82 4.44 34.61 79.87 20.13 20.50 100.37 — .37 85.81 14.19 37.73 3.49 32.03 73.25 26.75 7.95 81.20 18.80 9.15 1.26 10.41 3.74 .56 2.92 7.22 3.19 2.51 9.73 .68 34.21 104.01 7.94 1.21 9.15 3.88 .59 3.28 7.75 1.40 3.63 11.38 — 2.23 44.29 122.70 7.44 1.35 8.79 3.59 .39 3.04 7.02 1.77 1.80 8.82 — .03 41.63 134.63 8.30 1.37 9.67 3.65 .34 3.09 7.08 2.59 .77 7.85 1.82 43.26 139.97 10.21 2.16 6.22 30.00 .54 3.42 — 5.44 7.82 33.37 .48 4.58 — .08 6.92 28.72 .29 6.46 4.54 7.15 28.58 .24 PERCENTAGES OF LOANS AND INVESTMENTS: OTHER PERCENTAGES: T Y P IC A L O P E R A T IN G R A T IO S M BER BANKS IN TH ELEVEN EM E TH DISTRICT WITH LOANS AND INVESTM ENTS FROM $150,000 TO $249,999 PERCENTAGES OF GROSS EARNINGS: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Interest and discount on loans and investments........... Other earnings. . . ....... ....................................................... Salaries and wages ........ ........................... ............. Interest paid on gross deposits....................................... Other expenses...................... .................................... Total expenses ( 3 + 4 + 5 ) ............... .............................. . Net earnings............................. ................................. ......... Net losses..... ....... ................................... .............................. Total expenses and losses (6 + 8 ) ........ ......................... Net addition to profits.................................... .........—- ...... 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. Interest and discount on loans and investments........... Other earnings... ..............................- ....................... ..... Total earnings (11 + 12)......... .............. ............ ............. Salaries and wages___________ ___ -Interest paid on gross deposits.... ..................................... Other expenses_________________—................................... Total expenses (14+15 + 1 6 ) ......... ~....... Net earnings................ ........................... ...................-............ Net losses . ..... .........................................................—.........Total expenses and losses (17 + 19)................................. Net addition to profits........................................................ Capital, surplus, profits, and reserves........................... Gross deposits.............. ........................................................ 24. 25. 26. 27. 28. Net earnings (before losses) to capital and surplus..... Net addition to profits to capital and surplus......... ... Time deposits to gross deposits ............................ ......... Capital and surplus to gross deposits...... ........... Interest on deposits to gross deposits 1929 1933 1934 1935 88.43 11.57 32.29 7.44 26.68 66.41 33.59 22.45 88.86 11.14 85.12 14.88 37.51 7.60 32.34 77.45 22.55 45.33 122.78 — 22.78 82.16 17.84 36.18 5.78 32.22 74.18 25.82 33.91 108.09 — 8.09 82.00 18.00 34.55 4.54 30.14 69.23 30.77 11.40 80.63 19.37 8.81 1.15 9.96 3.22 .74 2.66 6.62 3.34 2.23 8.85 1.11 27.93 103.06 7.17 1.26 8.43 3.16 .64 2.73 6.53 1.90 3.82 10.35 — 1.92 35.72 115.70 6.80 1.48 8.28 2.99 .48 2.67 6.14 2.14 2.81 8.95 — .67 34.99 132.62 7.39 1.62 9.01 3.11 .41 2.72 6.24 2.77 1.03 7.27 1.74 34.46 143.83 13.48 4.47 7.24 24.10 .72 5.90 — 5.96 9.18 27.87 .55 6.74 — 2.11 9.07 23.94 .36 8.97 5.65 8.71 21.49 .28 PERCENTAGES OF LOANS AND INVESTMENTS: O T H E R PER C EN TAG ES : TY P IC A L O P E R A TIN G R A T IO S MEMBER BANKS IN THE ELEVENTH DISTRICT WITH LOANS AND INVESTMENTS FROM $250,000 TO $499,999 P ER C EN T AG ES O F G R O S S E A R N IN G S : 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Interest and discount on loans and investments........... Other earnings.................................. Salaries and wages .......... ............................ Interest paid on gross deposits............ ........................... Other expenses............. . ........... ...................... Total expenses (3 + 4 + 5).................... ............ Net earnings.................................................. Net losses ..................................................... Total expenses and losses ( 6 + 8 ) _________ __ ___ _____ Net addition to profits................................ ......................... PER C EN TAG ES O F L O A N S A N D 1929 1933 1934 1935 88.49 11.51 29.75 10.85 24.09 64.69 35.31 15.73 80.42 19.58 85.26 14.74 33.34 11.51 28.21 73.06 26.94 46.44 119.50 — 19.50 83.59 16.41 32.97 8.02 28.39 69.38 30.62 43.31 112.69 — 12.69 83.24 16.76 32.40 7.01 28.57 67.98 32.02 5.93 73.91 26.09 8.05 1.05 9.10 2.71 .99 2.19 5.89 3.21 1.43 7.32 1.78 25.25 103.34 6.42 1.11 7.53 2.51 .87 2.12 5.50 2.03 3.50 9.00 — 1.47 29.41 110.42 6.43 1.26 7.69 2.53 .62 2.18 5.33 2.36 3.33 8.66 — .97 28.98 127.11 6.68 1.35 8.03 2.60 .56 2.30 5.46 2.57 .48 5.94 2.09 29.20 139.64 14.56 8.07 9.25 21.35 .96 7.70 — 5.57 12.61 23.87 .78 9.15 — 3.79 11.76 20.25 .48 10.11 8.23 11.90 18.22 .40 IN V ESTM EN TS: 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. Interest and discount on loans and investments.......... Other earnings.......... ............................ .................... Total earnings (11 + 12)......... ............................................ Salaries and wages ....... .......................... ......................... Interest paid on gross deposits.......................................... Other expenses .......... ....................... .............................. Total expenses (14+15+16) ............................ ............... Net earnings ............. ....... ..................................... Net losses ................ ....... ......... ...................... Total expenses and losses (17 + 19)____________ ______ Net addition to profits ..... ..................................... ............ Capital, surplus, profits, and reserves.......................... Gross deposits....................................................................... 24. 25. 26. 27. 28. Net earnings (before losses) to capital and surplus.... Net addition to profits to capital and surplus.... .......... Time deposits to gross deposits ... ...................... ...... Capital and surplus to gross deposits................. ........... Interest on deposits to gross deposits................. ............ O T H E R P ER C EN TAG ES : TY P IC A L O PER ATIN G R A TIO S MEMBER BANKS IN THE ELEVENTH DISTRICT WITH LOANS AND INVESTMENTS FROM $500,000 TO $999,999 P ER C EN T AG ES O F G R O S S E A R N IN G S : 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Interest and discount on loans and investments ........... Other earnings.......................... ............ ......... ............. Salaries and wages ............... .... ...................................... Interest paid on gross deposits.......... ........................... Other expenses ......... .......................................... Total expenses (3 + 4 + 5) ......... ......................................... Net earnings.................................. ....................................... . ....... .......................................-............. Net losses .... Total expenses and losses (6 + 8 ) ........... ......................... Net addition to profits ....... ...... ............. ......................... PER C EN TAG ES O F L O A N S A N D 1929 1933 1934 1935 88.33 11.67 26.73 14.54 22.82 64.09 35.91 13.37 77.46 22.54 86.98 13.02 31.24 14.66 25.59 71.49 28.51 41.31 112.80 — 12.80 85.27 14.73 30.54 10.99 26.35 67.88 32.12 32.90 100.78 — .78 86.01 13.99 30.70 9.39 26.24 66.33 33.67 15.63 81.96 18.04 7.44 .98 8.42 2.25 1.22 1.92 5.39 3.03 1.13 6.52 1.90 21.47 104.62 6.18 .92 7.10 2.22 1.04 1.82 5.08 5.75 .99 6.74 2.06 .74 1.78 4.58 2.16 2.93 8.01 — .91 24.95 115.21 6.09 .99 7.08 2.17 .67 1.86 4.70 2.38 1.10 5.80 1.28 20.46 142.56 16.68 10.47 12.76 17.33 1.17 9.44 — 4.24 17.34 18.62 .90 IN VESTM EN TS: 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. Interest and discount on loans and investments ......... Other earnings ............................................................. Total earnings (11 + 12) .................................................... Salaries and wages ... ___ . .............................................. Interest paid on gross deposits ......................................... Other expenses ........ ....................... Total expenses (14+15+16) ................ .............. —.... Net earnings ....................................................................... Net losses........... ........ ..... ............... .............. Total expenses and losses (17+19) ....... ........................ Net addition to profits .......................-....... 22. Capital, surplus, profits, and reserves........................... 23. Gross deposits....... ....... ....... ............................................. 2.02 2.22 6.80 — .06 23.34 122.72 O T H E R PER C EN TAG ES : 24. 25. 26. 27. 28. Net earnings (before losses) to capital and surplus.... Net addition to profits to capital and surplus___ ____ Time deposits to gross deposits Capital and surplus to gross deposits Interest on deposits to gross deposits ........................... 10.85 — .26 17.11 16.27 .60 11.65 6.24 15.08 14.35 .47 TY P IC A L O P E R A TIN G R A T IO S MEMBER BANKS IN THE ELEVENTH DISTRICT WITH LOANS AND INVESTMENTS FROM $1,000,000 TO $4,999,999 PERCENTAGES OF GROSS EARNINGS: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Interest and discount on loans and investments........... Other earnings ................................................................... Salaries and wages.................................... ........................... Interest paid on gross deposits............... ........................ Other expenses. . ....... .................................................... .......... Total expenses (3 + 4 + 5)............... .................................... Net earnings .............. ........................................................... Net losses ........................ ..................................................... Total expenses and losses ( 6 + 8 ) ................. .................... Net addition to profits........... ............... ............................ 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. Interest and discount on loans and investments..... . Other earnings___________________ ___ ________________ Total earnings (11+12)...................................................... Salaries and wages................... ............................................ Interest paid on gross deposits............ ............................ Other expenses...... .......................................... ................ . Total expenses (14+15 + 16) ............................................ Net earnings........ ..............................—............................... Net losses . ............. . ..... ..... .............................. ..... . Total expenses and losses (17 + 19) .... ............................ Net addition to profits ....................................................... Capital, surplus, profits, and reserves....... ....... ......... Gross deposits..................................................................... 1929 1933 1934 1935 86.75 13.25 23.05 21.71 23.15 67.91 32.09 13.40 81.31 18.69 84.18 15.82 28.72 20.76 26.19 75.67 24.33 42.90 118.57 — 18.57 82.90 17.10 28.94 16.29 25.60 70.83 29.17 30.72 101.55 — 1.55 80.79 19.21 29.90 14.13 26.19 70.22 29.78 11.69 81.91 18.09 6.99 1.07 8.06 1.86 1.75 1.87 5.48 2.58 1.08 6.56 1.50 18.32 107.72 5.41 1.02 6.43 1.85 1.33 1.68 4.86 1.57 2.76 7.62 — 1.19 20.79 124.10 5.18 1.07 6.25 1.81 1.02 1.60 4.43 1.82 1.92 6.35 — .10 20.14 143.11 4.99 1.19 6.18 1.85 .87 1.62 4.34 1.84 .72 5.06 1.12 20.13 151.25 16.84 9.81 23.77 14.27 1.63 8.48 — 6.48 28.06 14.85 1.07 10.22 — .54 25.27 12.47 .71 10.57 6.42 24.52 11.51 .58 PERCENTAGES OF LOANS AND INVESTMENTS: OTHER PERCENTAGES: 24. 25. 26. 27. 28. Net earnings (before losses) to capital and surplus.... Net addition to profits to capital and surplus.............. Time deposits to gross deposits ....................................... Capital and surplus to gross deposits......................... . Interest on deposits to gross deposits.................. .......... T Y P IC A L O P E R A TIN G R A T IO S MEMBER BANKS IN THE ELEVENTH DISTRICT WITH LOANS AND INVESTMENTS OF $5,000,000 AND OVER P ER C EN T AG ES O F G R O S S E A R N IN G S : 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. In te re st and discount on loans and in v e s t m e n t s ............ O th er e a r n in g s....... ....... ............................................. .................. . S alaries and w a g e s .................... In terest paid on g ro ss deposits ............................................... O th er e x p e n s e s ............................ ................................. ............. ........... T otal expen ses ( 3 + 4 + 5 ) .............................................................. .......... .............................. ............ N e t e a r n in g s .......... N e t lo s s e s------- -------------------- ------------------- ............................... T o ta l expen ses and losses ( 6 + 8 ) . ...... ............. ......... ............. N e t addition to p ro fits........................ ............ ................................. P ER C EN TAG ES O F L O A N S A N D 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 1933 1934 1935 84.64 15.36 23.64 20.19 23.61 67.44 32.56 59.46 126.90 — 26.90 82.71 17.29 24.14 13.62 23.84 61.60 38.40 46.1 4 107.74 — 7.74 80.01 19.99 25.97 11.20 25.80 62.97 37.03 3.98 66.95 33.05 6.02 .93 6.95 1.35 2.09 1.44 4.88 2.07 .47 5.35 1.60 15.34 111.90 4.39 .80 5.19 1.23 1.05 1.22 3.50 1.69 3 .08 6.58 — 1.39 17.19 124.81 4.07 .85 4.92 1.19 .67 1.17 3.03 1.89 2.27 5.30 — .38 16.90 141.36 3.65 .91 4 .56 1.18 .51 1.18 2.87 1.69 16.60 12.78 27.27 11.14 1.87 11.47 — 9.48 27.16 11.79 .84 12.62 — 2.54 20.76 10.58 .47 IN V ES TM E N TS : 23. In te re st and discount on loan s and in v e s t m e n t s ............ O ther e a rn in g s_____ __________ ____ —- ............................................ T o ta l earn in gs ( 1 1 + 1 2 ) ........................... ......... ............................ S alaries and w a g e s ...... .... .......... ................ ....... .............................. In terest paid on gro ss d ep osits..... .......... .................................. O t h e r e xp en se s........ ............. .......................... ......... .......................... T o ta l expen ses (14 + 1 5 + 1 6 ) ....................................................... N e t e a r n in g s ........................................................................................... N e t l o s s e s ........... ............................................. ....................................... T o ta l expen ses and losse s ( 1 7 + 1 9 ) . . . . ...... ............................. N e t addition to p r o fit s ...... .............. .......... .................................... C a p ita l, surplus, profits, and r e se rv e s................................. G ross d ep osits............................... ......... ......... ................................... 24. 25. 26. 27. 2 8. N e t earn in gs (b efore lo sse s) to capital and su rp lu s...... N e t addition to profits to capital and su rplu s................... T im e deposits to g ro ss d ep osits.................... ...... ................. C apital and surplus to gro ss d ep osits.......................... ......... In te re st on deposits to g ro ss d ep osits.................................... 22. 1929 86.63 13.37 19.40 30.12 20.69 70.21 29.79 6.85 77.06 22.94 .18 3 .05 1.51 16.83 145.46 O T H E R P ER C EN TAG ES : 11.62 10.37 18.30 9.99 .35 TY P IC A L O P E R A TIN G R A T IO S ALL MEMBER BANKS IN THE ELEVENTH DISTRICT PER C EN TAG ES O F G R O S S E A R N IN G S : 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Interest and discount on loans and investments Other earnings ......... Salaries and wages Interest paid on gross deposits.......... Other expenses........... . Total expenses (3 + 4 + 5) Net earnings ............... . Net losses .......... Total expenses and losses ( 6 + 8 ) _ ___ __ _ _ Net addition to profits 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. Interest and discount on loans and investments . Other earnings....... ........................... ......... Total earnings (11 + 12)............................... Salaries and wages______ _______ ______ Interest paid on gross deposits........... ........... Other expenses ...................................... ........... Total expenses (14 + 15+16) ...... ............... Net earnings ............. ....................... ...... Net losses ............. ........... Total expenses and losses (17+19) ....... Net addition to profits.......... ............................ Capital, surplus, profits, and reserves........... Gross deposits.............................................. PERCENTAGES O F L O A N S A N D 1929 1933 1934 1935 87.21 12.79 23.47 22.00 22.45 67.92 32.08 11.58 79.50 20.50 84.89 15.11 27.58 18.05 25.57 71.20 28.80 51.57 122.77 — 22.77 83.11 16.89 27.68 12.90 25.57 66.15 33.85 39.69 105.84 — 5.84 81.32 18.68 28.81 10.81 26.61 66.23 33.77 7.72 73.95 26.05 6.79 1.00 7.79 1.83 1.71 1.75 5.29 2.50 .90 6.19 1.60 18.57 108.61 5.05 .90 5.95 1.64 1.07 1.52 4.23 1.72 3.07 7.30 — 1.35 20.55 122.57 4.75 .96 5.71 1.58 .74 1.46 3.78 1.93 2.26 6.04 — .33 19.93 138.85 4.53 1.04 5.57 1.61 .60 1.48 3.69 1.88 .43 4.12 1.45 19.93 146.07 16.05 10.26 21.95 14.34 1.58 9.55 — 7.55 24.79 14.63 .88 10.96 — 1.89 20.37 12.71 .53 10.88 8.40 18.68 11.84 .41 IN VESTM EN TS: O T H E R P E R C EN T AG ES : 24. 25. 26. 27. 28. Net earnings (before losses) to capital and surplus Net addition to profits to capital and surplus Time deposits to gross deposits . . ______ _____ Capital and surplus to gross deposits.............. Interest on deposits to gross deposits.......... .
