The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF NEW YORK 'Circular No. 1 7 4 1 1 . March 10, 1937. J Operating Ratios of Member Banks in the Second Federal Reserve District For the Year 1936 Compared With 1935 Average operating ratios in 1936 of various groups of member banks in the Second Federal Reserve District, are presented on the following pages. The banks have been grouped, as in previous years, according to size of deposits and each group of banks outside New York City has been further subdivided according to the ratio of time deposits to gross deposits. Owing to the expansion of demand deposits, the number of banks in the groups having high percentages of time deposits diminished further during the past year. All groups of banks showed net profits in 1936 for the first year since 1929. For several years most groups had been showing net losses, due to heavy charge-offs on loans and investments, although in 1935 charge-offs on securities were greatly reduced and a few groups of banks showed some net profits. In 1936, charge-offs on loans continued, although in considerably reduced amount, but there were substantial recoveries on securities previously written down and other profits on securities sold. The average net profit, after charge-offs and recoveries, for the 742 banks included in the compilation was 8.9 per cent of capital funds. Net earnings from current operations increased slightly to 7.1 per cent of total capital funds, as compared with 6.7 per cent in 1935. The improvement in operating income was occasioned by the smaller portion of earnings used for the payment of interest on deposits. This saving in interest payments was offset in part by an increase in "all other expenses" which included the assessment for deposit insurance, formerly reported in "all other" charge-offs by most banks. Service charges on deposit accounts formerly included in "all other earnings" are shown as a separate item of income for the first time. The average rate of income on loans was unchanged from 1935 at 5.5 per cent for all banks, while the rate on investments was reduced 0.2 per cent to 3.7 per cent. The rates of income for the smaller banks were slightly above the average for all banks in the district and for the large New York City banks were much below the average. As usual space has been provided for the insertion of the figures of any bank which may wish to compare its operations with those of other banks of similar size and character of deposits. 193 6 Average Operating Ratios of Member Banks in the Second Federal Reserve District GROUPED ACCORDING TO SIZE AJVD CHARACTER OF DEPOSITS All ratios are expressed in percentages and are arithmetical averages of the ratios of individual banks, rather than ratios based on aggregate figures GROUP IV GREATER NEW YORK CITY BANKS GROUP III BANKS WITH TOTAL DEPOSITS $5,000,000 and Up GROUP II BANKS WITH TOTAL DEPOSITS $1,000,000 to $4,999,999 GROUP I BANKS WITH TOTAL DEPOSITS UNDER $1,000,000 YOUR FIGURES ALL BANKS Under 50% Number of Banks. Year ITEMS OF INCOME, EXPENSE, AND NET PROFIT IN PERCENTAGES OF TOTAL EARNINGS FROM CURRENT OPERATIONS Source! of Earnings from Current Operation* 1. Interest and discount on loans 2. Interest and dividends on bonds and stocks. 3. Income from Trust Department Group Average Group Average Under 50% 70% and Up 50% to 69.9% Under 50% 70% and Up 50% to 69.9% 70% and Up Total Deposits Under $10,000,000 Total Deposits $10,000,000 and Up 634 713 731 742 283 278 65 77 148 160 70 41 303 313 37 47 135 157 131 109 94 100 27 30 51 53 16 17 '.N 28 23 23 1933 1934 1935 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 1936 50.0 46.6 43.5 42.7 45.5 45.6 44.9 44.2 45.0 45.8 45.0 47.5 42.2 40.8 42.8 40.2 43.2 43.2 41.0 37.5 45.9 43.2 44.5 42.2 46.7 43.5 46.0 43.9 38.2 41.4 32.2 32.9 40.3 43.0 44.3 43.9 44.4 43.3 43.1 43.6 43.8 42.8 46.6 44.8 46.9 47.1 42.5 44.6 45.0 43.9 50.1 52.9 38.8 40.0 38.4 37.9 37.9 40.4 41.9 42.8 37.3 33.1 41.1 37.9 1.2 1.2 l.S 1.5 0.1 0.1 0.2 0.2 0.1 0.1 0.1 0.1 1.1 1.0 1.8 1.6 1.2 1.0 0.8 0.8 3.6 3.6 3.9 5.0 3.9 3.5 1.9 1.9 0.5 0.7 15.2 16.4 4.6 4.5 4.7 5.4 5.4 4.6 4.7 3.4 3.4 3.8 4.0 6.4 6.2 4.1 4.3 2.7 2.6 3.8 3.9 4.4 4.4 3.7 2.9 3.0 13.7 15.2 2.1 2.1 9.2 4.4 3.8 7.9 6.3 7.3 5.5 6.3 6.4 5.6 6.6 4.9 4.2 6.0 7.1 6.5 7.4 6.5 7.6 5.4 6.2 7.0 9.3 8.8 10.5 7.8 8.8 7.3 S.4 10.3 9.6 9.4 10.7 4. Service charges on deposit accounts 5. All other earnings Total earnings from current operations 50% to 69.9% Ratio of Time Deposits to Total Deposits Ratio of Time Deposits to Total Deposits Ratio of Time Deposits to Total Deposits Group Average 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Disposition of Earnings 6. Salaries and wages 24.2 25.2 26.4 26.7 27.7 28.2 33.1 33.4 27.5 27.0 23.1 23.6 24.1 24.7 29.6 30.3 25.2 25.3 21.4 21.3 24.5 24.8 27.2 27.7 24.0 24.3 21.8 21.5 33.0 32.9 37.5 35.7 7. Interest on deposits 33.6 31.7 27.7 23.2 26.2 22.0 16.3 15.2 27.1 23.3 33.3 29.5 31.7 26.2 21.0 16.2 29.6 25.0 37.1 32.4 29.5 25.2 22.3 18.4 30.8 26.9 37.2 32.2 14.1 11.5 3.0 2.4 2.0 0.8 0.2 0.2 0.2 0.2 0.3 0.1 0.3 0.2 0.2 0.3 0.3 0.2 1.2 0.5 0.2 0.2 0.1 0 0.1 0 0 0 0.1 0 0 0.1 0.2 0.2 0 0 25.2 23.6 25.6 26.5 28.4 23.7 25.5 20.7 20.9 21.0 23.5 29.0 28.7 21.9 23.9 17.8 20.7 22.3 25.4 26.3 29.2 20.9 23.8 20.2 23.1 32.5 34.2 28.4 32.0 77.7 76.0 76.2 77.1 78.6 76.0 77.3 74.3 77.1 74.6 80.8 75.7 76.9 74.4 76.4 74.4 76.4 75.4 75.8 75.3 75.8 75.0 79.2 76.9 79.8 78.8 68.9 70.1 23.1 20.2 21.2 31.1 29.9 —33.9 — 6.6 —36.9 — 7.8 —26.3 — 6.5 —53.4 — 4.9 - 7.8 - 2.3 —12.6 — 1.2 17.5 - 0.3 23.5 — 6.9 — 6.1 — 6.4 — 6.0 — 6.3 — 7.0 — 9.5 — 3.7 -10.8 - 5.8 — 5.9 — 6.7 8. Interest and discount on borrowings 9. All other expenses 18.1 21.0 22 8 10. Total current expenses 78.5 78.7 77.1 75.3 11. Net earnings from current operations 21.fi 21.3 22 9 24.7 Net Recoveries or Net Lostet (—) 12. On loans* -16.8 —24.8 -20.9 - 5.6 13. On bonds and stocks**. -23.9 —21.7 - 2.4 10.6 14. All other* - 2.2 — 8.6 - 6.8 - 6.8 —21.4 —30.7 — 7.2 31.0 16. Net profit or n e t loss (—) (after charge-offs, recoveries, etc.) ASSET AND LIABILITY RATIOS 16. Capital funds to total deposits. •. 22.3 24.0 23.8 21.4 24.0 22.7 25.7 22.9 -14.5 — 4.5 - 8.9 — 4.0 -16.2 - 4.2 -15.9 - 7.0 -24.6 1.0 10.3 - 4.4 13.2 - 6.9 - 5.2 — 6.4 - 5.6 — 4.9 - 5.8 - 6.7 - 3.7 - 5.0 -7.9 33.4 — 1.3 26.9 —16.5 19.8 10.4 0.6 18.7 5.0 22.9 20.6 3.2 32.8 14.3 34.6 0.4 28.6 25.6 21.6 25.4 19.2 — 6.2 -8.3 15.9 16.1 15.0 25.7 25.0 22.6 39.8 37.7 42.0 38.2 38.9 21.4 20.5 20.1 20.6 18. Loans to loans and investments 60.2 45.9 42.1 40.7 43.1 42.7 42.5 41.7 43.8 43.0 42.2 61.4 60.9 59.2 56.7 58.9 56.5 36.6 37.3 61.2 61.1 75.0 74.5 65.8 62.8 fl.5 5.5 5.5 6.5 5.8 5.8 5.9 5.8 5.8 5.9 5.8 5.9 5.5 5.6 21. Income from investments to investments — 9.3 — 7.0 — 7.3 0 19.0 22.8 RATES OF EARNINGS 20. Income from loans to loans. 19.3 16.4 21.4 23.4 43.3 — 8.1 — 7.3 19.1 — 7.8 16.8 22.7 20.0 19. Time deposits to total deposits 19.4 — 6.1 23.6 —17.2 27.1 13.8 25.6 34.7 17. Banking house and equipment to capital funds. 16.3 23.6 27.5 —16.9 18.0 22.2 25.6 23.8 —13.3 19.2 24.3 23.1 29.4 —27.3 20.1 , 24.3 - 6.9 —32.2 —12.6 —21.5 — 7.9 —25.7 — 2.9 20.8 19.5 19.2 19.1 23.0 16.8 29.8 28.1 16.1 22.4 21.3 26.2 24.6 20.9 24.2 6.7 32.8 —12.4 14 0 17.0 24.7 24.2 22.1 — 1.8 25.0 20.8 21.4 — 5.8 6.4 32.9 —47.9 32.0 1.3 36.6 19.0 46.1 14.6 13.9 12.9 25.1 20.5 16.7 14.6 15.2 13.0 29.2 30.4 25.0 23.8 24.8 27.9 15.9 14.8 15.7 42.5 45.9 42.6 46.6 42.5 45.8 42.5 43.0 45.9 42.2 43.6 37.4 60.2 59.7 75.7 74.5 42.3 37.6 7.6 6.6 26.5 41.0 40.2 38.0 33.8 37.7 62.2 61.1 77.2 76.1 56.5 55.5 38.0 5.1 5.3 5.5 5.6 5.6 5.6 5.0 6.0 4.6 4.8 5.1 6.1 5.2 5.2 5.6 S.8 2.5 2.5 46.3 4.3 4.2 3.0 3.7 4.2 4.0 4.0 3.9 4.2 4.0 4.2 4.0 3.9 3.7 3.6 3.5 3.9 3.7 4.0 3.9 3.5 3.3 3.2 3.0 3.5 3.3 3.8 3.7 3.7 3.3 2.3 2.2 22. Total earnings to total available funds 4.5 4.3 4.1 3.9 4.3 4.1 4.1 3.9 4.3 4.2 4.4 4.2 4.1 3.9 3.9 3.7 4.1 3.9 4.1 4.0 3.8 3.6 3.5 3.3 3.9 3.7 4.0 3.9 4.7 4.4 2.4 2.3 23. Net earnings to total available funds 1.0 0.9 1.0 1.0 1.0 1.0 1.0 0.9 0.9 1.0 1.1 1.1 1.0 1.0 0.7 0.9 1.0 1.0 1.0 1.0 0.9 0.9 0.8 0.8 1.0 1.0 0.9 0.9 1.0 1.0 0.7 0.7 24. Net earnings to capital funds 7.1 6.7 6.7 7.1 6.1 6.3 5.4 5.3 5.9 6.6 6.9 7.1 7.1 7.6 5.2 6.4 7.3 8.0 5.3 5.7 26. Net profit or net lossf (—) to capital funds 7.1 0.9 2.5 8.0 0.5 8.3 2.6 7.8 0 8.8 0.2 7.2 5.4 8.8 6.4 6.8 5.7 26. Net profit or net lossf (—) to total available funds 1.0 1.3 0.3 1.3 0.1 1.4 0.5 1.4 0 1.4 0 1.1 0.6 1.2 0.8 0.9 0.5 * Losses and depreciation charged off less recoveries. ** Losses and depreciation charged off less recoveries and profits on securities sold, t After charge-offs, recoveries, etc. Note: Groups I, II, III do not include New York City banks. Cp and reti deposits uepusjiB, ana Dorrowea money; aemana deposits include deposits of other Daniis, etc., and Government deposits as well as individual deposits payable on demand 7.6 7.7 7.9 6.8 7.3 8.2 8.2 7.6 8.0 5.5 6.5 8.6 — 4.7 10.0 4.5 10.3 2.6 9.9 1.8 10.4 -16.5 10.8 0.9 10.7 2.9 8.S 1.1 — 0.6 1.4 0.7 1.3 0.4 1.4 0.5 1.2 - 2.0 1.2 0.1 1.6 0.4 1.0 7.5 Group Ratio of Time Deposits to Total Deposits 1935 24.1 33.0 —10.2 14.5 Total Deposits Ratios 1-15 were computed from the figures of section 1 of the semi-annual earnings and dividends reports; ratios 16-19 were computed from averages of figures from the "call" condition reports (in computing yearly averages, the December "call" figures of the previous year were included); ratios 20-26 were based on figures from earnings and dividends and condition reports.