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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.......... .