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 f Circular No. 4 0 8 5 1 L March IS, 19S4 J Operating Ratios of Member Banks in the Second Federal Reserve District for the Year 1953 To all M em ter Banks in the Second Federal Reserve D istrict: Net profits of all member banks in the Second Federal Reserve District, after all charges but before dividends, averaged 7.3 per cent of capital funds in 1953, the same rate of return as in 1952. But, while the average rate of return on capital (item 3) for all the District’s member banks remained stable, the seven size-groups into which the banks are divided for pur poses of operating ratio analysis had a mixed experi ence. Four of these groups—two in New York City and two outside—enjoyed a higher rate of return on capital in 1953 than in 1952. The other three groups had a lower rate of return last year than the year before. Among the four groups of banks showing increased rates of return over 1952, gains were most pronounced in the two smaller-sized groups of New York City banks, groups V and VI. In the group V banks, aver age returns nearly doubled (rising from 3.1 per cent to 6.1 per cent) because of an increase in operating earnings and the nonrecurrence in 1953 of certain losses and charge-offs experienced the previous year. In the group V I banks, higher net current operating earnings accounted primarily for the increase in profits. The largest decrease in the rate of return for any group—from 7.3 per cent in 1952 to 6.7 per cent in 1953— occurred in the largest New York City banks (group V II) and reflected a sharp rise in net losses taken on securities. Security losses (item 27) for these banks rose from an average of 0.03 per cent of their total average security portfolio in 1952 to 0.55 per cent in 1953. However, these increased losses apparently resulted to a considerable extent from security “ switching” operations aimed at reducing income tax liability. In fact, taxes on net income for this group of banks represented a smaller proportion of total earnings than in 1952 (item 23), whereas in all other groups of banks income taxes were higher in both absolute and relative terms. Net profits also were lower in the group II banks (outside New York City), primarily because of higher income taxes, and the return on capital funds declined from 7.5 per cent in 1952 to 7.1 per cent in 1953. In the group III banks, net profits were higher on average than in 1952, and the minor reduction in the rate of return on capital funds (from 7.5 to 7.4 per cent) merely reflected the failure of net profits to grow as rapidly as capital funds. O PE R A TIN G INCOME Total current earnings increased generally through out the District. The gross return on total assets (item 5) rose to 3.25 per cent, the highest level since 1941. Loan income rose to 56.4 per cent of total earn ings, the highest proportion attained in many years. This rise resulted from both a larger average loan vol ume and higher rates o f interest. The increase in the absolute volume of loans is shown for the average bank in each size-group on Chart I, while item 32 gives loans as a percentage of total assets. Except for a slight decline in group III banks, interest rates received on outstanding loans (item 28) were up modestly throughout the District. In most groups of banks, however, a small rise in net chargeoffs on loans (item 29) partially offset the benefit de rived from the higher effective rates of return. Holdings of United States Government securities decreased in most groups of banks (Chart I ), but the effect of this decrease in volume was more than offset by the higher rates of return (item 25) obtainable on issues refunded during the year. Consequently, in come from Government securities increased moderately in all groups of banks in 1953. As a percentage of total earnings (item 9), however, Government security income was generally smaller because of the greater relative growth in other kinds of earnings, especially earnings from loans. Net losses and charge-offs on securities were modestly higher in most groups of banks, the greatest increase being, as mentioned previ ously, in the largest New York City banks. Security losses as a percentage of total security holdings (item 27) remained small, however, and for the Dis trict as a whole averaged only 0.14 per cent. Holdings of “ Other securities” decreased in the two largest-sized groups of New York City banks (item 31 and Chart I ). And, while higher rates of re turn on these securities (item 26) partly compensated for the smaller volume held by these groups of banks, income from this source as a proportion of total earn ings (item 10) declined moderately. In the other groups of banks in the District, average holdings in creased, rates of return remained relatively unchanged, and income from other securities as a fraction of total earnings was about the same as in 1952. O PE R A TIN G E X PE N SE S Total expenses were slightly higher, as a proportion of total earnings, in 1953 than a year earlier because of larger interest payments on time deposits. All groups of banks increased their effective rates of pay ment (item 39), with the most pronounced rise occur ring in the two largest-sized groups of New York City banks. Also, six of the seven groups of banks paid the higher rates on a higher average volume of time de posits (item 38 and Chart I) in 1953 than in 1952. But the time deposits of banks in group II decreased slightly despite the higher effective rates of interest paid. Outlays for salaries and wages, and “ other ex penses” , decreased further as a proportion of total earnings from the highs of recent years. In fact, in three groups of banks (IV , VI, and V II) in which interest payments are not too important a segment of total expenses, the proportion of total earnings carried through to net current operating earnings before in come taxes (ratio 20) were at all-time highs in 1953. Heavy tax liabilities, however, reduced the ratio of net profits to total earnings below the levels of some earlier years. NO N RECU RRIN G IT E M S— CH AN GE IN PR E SE N TA T IO N In former years, increases or decreases in valuation reserves against losses on loans and securities were in cluded in the computation o f the ratio (item 21) of net 1 9 5 3 Average Operating Ratios o f Member Banks in the Second District, G rouped A ccording to Size o f Deposits and P roportion o f Loans to Total Assets All ratios are expressed in percentages and are arithmetical averages of the ratios of individual banks in each group, rather than ratios based on aggregate dollar figures BANKS N o te : GROUP I— Deposits under $2,000,000 Group average Loans to total assets, per cent— 1953 Under 20 20-29.9 30-39.9 40and up 1952 1953 A B D C ALL BANKS Second District Balance sheet figures used as a basis fo r the 1953 ratios are averages o f am ounts reported for D ecem ber 31, 1952, June 30, 1953, and Septem ber 30, 1953. OUTSIDE GROUP II— Deposits o f $2,000,000 to $5.000.000 Group average Loans to total assets, per cent — 1953 Jnder 20 20-29.9 30-39.9 40 and up 1952 1953 D B A C YOUR MANHATTAN. YOUR NEW YORK GROUP III—Deposits of >5.000,000 to >20,000.000 Group average Loans to total assets, per cent—1953 0 -Q 3 z Jnder 20 20-29.9 30-39.9 A B C YOUR YOUR 260 261 25 72 90 74 93 92 3 20 28 41 13.0 1 13.4 13.7 10.8 12.9 13.3 16.2 14.6 15.6 12.9 14.8 14.5 17.0 8.6 11.4 2 11.1 11.5 10.0 10.5 11.0 13.6 11.4 12.7 10.4 11.5 12.4 13.5 6 .0 6.6 7.7 3 7.5 7.4 7.1 7.3 7.1 8.0 7.2 7.6 7.4 7.5 7.8 7.6 2.5 2.3 2.6 4 2.5 2.5 2.0 2.5 2.5 2.7 3.2 3.2 2.7 3.0 3.0 2.93 3.26 3.76 5 3.05 3.21 2.47 2.88 3.20 3.80 3.11 3.34 2.89 2.88 3.13 697 118 105 13 24 25 43 216 211 21 57 70 63 1. Net current earnings before income taxes.............. 12.4 12.9 10.0 10.5 6.4 9.4 11.0 12.0 11.7 11.8 9.9 11.4 11.5 2. Profits before income taxes....................................... 10.6 11.0 9.1 9.6 6.4 8.6 10.0 11.0 10.3 10.2 8.9 9.9 9.8 3. Net profits ......................................................... *........... 7.3 7.3 6.9 7.1 4.9 6.3 7.7 7.8 7.5 7.1 7.0 7.1 4. Cash dividends declared ............................................... 2.5 2.5 2.0 2.1 1.7 2.0 1.9 2.4 2.3 2.4 1.9 3.08 3.25 3.18 3.41 2.51 2.92 3.44 3.94 3.07 3.24 2.50 2.22 2.16 2.30 1.82 2.00 2.29 2.63 2.07 1.11 0.69 0.92 1.15 1.31 1.00 1.02 0.80 0.98 0.99 1.17 7 0.96 0.99 0.76 0.91 0.76 0.54 0.63 0.83 0.85 0.64 0.62 0.57 0.60 0.57 0.70 8 0.54 0.53 0.50 0.51 N um ber o f B a n k s. . 0 and up D '<3 715 SUMMARY RATIOS BANK BANK GROUP VI Deposits $100 million to $1 billion GROUP V Deposits under $100 million 1953 1953 BANK GROUP IV—Deposits over $20.000,000 Group average Loans to total assets, per cent— 1953 nder 20 *0-29.9 JO-39.9 iOandup 1952 1953 A B C D 1952 1952 YOUR NOTES BANKS IN MANHATTAN. NEW YORK CITY CITY GROUP VII Deposits over $1 billion 1952 YOUR BANK 1953 1952 1953 10 10 10.6 12.8 14.0 13.9 14.6 9.8 12.1 13.4 13.5 12.8 3.1 6.1 6.6 7.3 7.3 6.7 3.3 2.1 2.3 3.6 3.7 3.9 4.1 3.73 3.11 3.28 2.54 2.79 2.31 2.50 1.48 1.23 1.33 BANK 1953 1952 P ercen tage o f Total Capital Account* P ercen tage o f Total Assets 5. Total earnings ................................................................... 2.10 6. Total expenses1 ................................................................ 7. Net current earnings before income taxes............ 0.98 1.03 1.02 8. Net profits ..................................................................... 0.59 0.59 0.71 2.22 1.70 1.95 2.27 2.59 6 2.09 2.22 1.71 2.63 2.15 2.30 1.99 1.92 2.19 2.57 2.49 2.51 1.38 0.96 1.17 0.96 1.04 0.90 0.96 0.94 1.16 0.62 0.77 1.16 1.31 1.08 1.17 0.52 0.59 0.48 0.51 0.53 0.48 0.51 0.52 0.22 0.45 0.61 0.68 0.57 0.54 2.24 1.97 SOURCES AND DISPOSITION OF KARNINGS P ercen tag e o f Total Earnings 9. Interest on U. S. Government securities................ 26.0 25.0 25.8 24.3 43.8 32.2 22.4 15.2 27.3 26.3 48.5 31.5 24.5 16.2 9 27.2 26.1 45.3 32.4 24.2 15.9 22.3 21.2 33.2 29.4 22.5 15.5 18.6 19.1 23.6 20.7 18.9 17.8 9 10. Interest and dividends on other securities............ 6.8 6.7 6.9 6.8 14.1 9.2 5.7 3.8 7.2 7.0 11.3 9.6 5.9 4.5 10 6.7 6.7 12.3 9.0 5.9 3.5 6.7 6.6 18.7 7.9 7.5 4.4 5.5 6.0 6.4 5.7 4.8 4.5 10 11. Earnings on loans2 ....................................................... 55.0 56.4 58.9 60.7 34.0 49.4 63.3 73.5 55.0 56.5 28.9 48.3 59.5 69.9 11 52.8 54.2 28.8 45.4 56.8 68.1 55.8 57.6 31.5 44.8 55.0 67.4 55.5 56.6 46.9 51.1 57.9 60.1 11 12. Service charges on deposit accounts...................... 6.9 6.9 5.4 5.2 4.7 6.0 5.2 5.0 6.6 6.6 7.3 7.0 6.5 6.0 12 8.0 7.9 8.8 8.1 8.0 7.5 7.1 7.1 5.8 8.0 7.4 6.6 9.4 8.9 3.8 3.7 2.4 2.3 12 13. Other current earnings ............................................... 5.3 5.0 3.0 3.0 3.4 3.2 3.4 2.5 3.9 3.6 4.0 3.6 3.6 3.4 13 5.3 5.1 4.8 5.1 5.1 5.0 8.1 7.5 10.8 9.9 7.6 6.1 11.0 9.4 19.3 18.8 16.0 15.3 Total earnings ........................................................... 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 14 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 15. Trust department earnings3 (part of item 1 3 ) . . . . 2.9 2.9 0.9 1.0 1.1 1.2 1.0 1.2 1.4 1.0 15 2.1 2.0 1.7 1.8 1.9 2.6 3.6 3.5 6.7 5.3 3.2 2.5 7.0 6.4 13.4 13.3 8.5 8.2 16. Salaries and wages ....................................................... 31.0 30.8 31.8 31.5 38.4 31.8 31.7 29.0 30.3 30.3 30.7 31.1 30.6 28.9 16 30.2 30.3 30.3 29.7 31.1 30.1 32.7 32.0 34.6 31.9 33.0 31.2 40.7 38.6 32.9 31.8 30.9 30.2 16 17. Interest on time d e p o sits............................................. 14.1 14.9 14.2 14.5 14.1 14.9 13.3 15.3 15.1 16.0 17.4 13.9 16.5 17.0 17 15.4 16.1 17.7 17.0 15.3 15.5 11.9 12.7 12.0 11.5 12.2 13.7 5.8 7.9 1.2 1.6 2.4 3.7 17 14. — — — 100.0 — 100.0 100.0 100.0 13 100.0 14 18. Other current expenses ............................................... 22.9 22.6 22.1 22.2 20.4 21.7 22.8 22.7 22.1 22.0 19.9 21.4 22.4 22.7 18 23.1 22.8 21.0 21.6 23.7 23.5 24.6 24.0 22.0 23.3 24.7 24.0 32.6 29.2 19.9 19.4 19.8 19.2 18 19. Total expenses ........................................................... 68.0 68.3 68.1 68.2 72.9 68.4 67.8 67.0 67.5 68.3 68.0 66.4 69.5 68.6 19 68.7 69.2 69.0 68.3 70.1 69.1 69.2 68.7 68.6 66.7 69.9 68.9 79.1 75.7 54.0 52.8 53.1 53.1 19 20. Net current earnings before income taxes.............. 32.0 31.7 31.9 31.8 27.1 31.6 32.2 33.0 32.5 31.7 32.0 33.6 30.5 31.4 20 31.3 30.8 31.0 31.7 29.9 30.9 30.8 31.3 31.4 33.3 30.1 31.1 20.9 24.3 46.0 47.2 46.9 46.9 20 1.4 0.1 - 0.7 - 1.8 - 2.0 ■ 5.8 21 0.2 - - 0.7 - 0.6 0.3 22 21. N et losses ( - ) o r recoveries and profits4 .......... 22. Net increase( - ) or decrea se(+ ) in valuation reserves5 23. Taxes on net income ................................................... 24. Net profits ................................................................. - 4.3 1 - 3.4 - 2.3 j - 1 - 0.7 J - 0.9 - 1.1 5.8 - 4.4 - 2.2 - 1.4 0.2 - 2.9 - 1.9 - 0.4 - 3.1 - 2.6 - 3.5 - 3.3 - 2.8 21 - 3.9 - 2.2 - 4.8 - 4.0 - 3.5 \ - 4.3 J - 0.9 - 0.3 - 0.9 - 1.2 - 0.9 22 - 1.0 - 0.4 - 0.9 - 1.1 - 0.9 J- -3 7 ) - 5.7 6.3 3.1 ■ - 2 .0 2.7 - 1.0 1.6 0 .6 8.4 9.1 7.2 7.9 5.8 7.9 6.9 9.0 7.6 8.4 6.4 8.4 8.5 8.9 23 8.5 9.0 8.0 8.0 8.6 10.9 8.9 10.1 7.0 9.2 9.6 11.0 7.1 8 .0 19.9 20.5 20.7 19.8 23 19.3 18.3 22.4 21.8 21.2 21.9 22.8 21.4 21.2 19.3 22.7 20.8 17.5 18.8 24 17.8 16.9 20.4 18.0 16.2 15.6 15.5 15.5 18.8 16.8 16.4 14.0 7.5 14.2 24.1 24.6 24.6 2 1.6 24 RATES OF RETURN ON SECURITIES AND LOANS Return o n Securities 25. Interest on U. S. Government securities.................. 1.99 2.10 2.10 2.17 2.11 2.21 2.16 2.18 2.04 2.14 2.10 2.14 2.14 2.15 25 1.% 2.08 2.10 2.11 2.08 2.03 1.86 2.03 2.08 2.02 2.01 2.04 1.91 2.11 1.73 1.94 1.69 1.89 26. Interest and dividends on other securities.............. 25 2.36 2.35 2.62 2.57 3.15 2.30 2.32 2.68 2.35 2.36 2.54 2.32 2.19 2.54 26 2.28 2.27 2.28 2.20 2.26 2.37 2.21 2.21 2.66 1.83 2.17 2.39 3.09 3.29 2.27 2.35 2.18 2.33 26 0.14 - 0.01 0.03 0.01 0.09 - 0.01 - 0.09 - 0.10 0.13 27 - 0.14 0.17 - 0.08 0.21 - 0.22 0.18 - 0.14 - 0.28 0.07 0.03 t 0.21 0.03 0.55 27 5.83 28. Earnings on loans2 ....................................................... 5.41 5.97 5.39 29. Net losses ( - ) or recoveries on loans7 ................... - 0.05 - 0.08 - 0.08 - 0.09 6.08 5.53 5.59 5.28 4.97 5.79 4.76 4.95 5.48 4.82 4.87 3.38 3.59 3.42 3.58 28 0.01 - 0.06 - 0.09 t - 0.03 - 0.07 - 0.22 0.14 0.23 0.03 0 .0 2 0.02 0.03 29 27. Net losses ( - ) on total securities^........................... - 0.10 - - - 0.01 5.72 6.20 - 0.08 - 0.08 - 0.13 - - 0.08 - 0.11 - 0.07 - 0.05 - 0.07 - 0.11 - - - 0.17 - 0.17 - 0.22 - - 0.11 5.09 5.17 - 0.02 - 0.13 - - Return o n Loans 5.63 5.65 5.52 5.55 - 5.69 28 0.10 29 - 0.04 - 5.36 0.06 5.17 5.21 t - 0.03 -0 .0 7 5.57 - 0.11 - DISTRIBUTION OF ASSETS P ercen ta g e o f Total Assets 38.1 36.6 36.8 35.3 51.4 42.3 35.1 26.7 38.9 38.0 57.6 42.6 37.4 28.0 30 39.8 38.1 52.9 43.9 36.8 29.1 35.5 33.5 46.4 41.4 34.7 27.8 29.6 29.2 32.7 28.6 26.0 9.7 8.3 23.5 9.4 8.7 12.5 11.6 8.6 5.8 9.9 30 9.9 11.2 12.9 9.0 7.6 31 9.8 10.1 14.4 12.5 9.9 6.4 10.0 10.5 20.1 12.4 12.1 7.7 7.0 6.7 6.2 6 .0 5.7 5.2 32.3 34.7 33.2 35.7 15.3 25.4 35.4 47.9 31.4 31 33.6 12.8 25.6 35.0 46.3 32 31.3 33.6 14.4 25.3 35.0 46.6 34.5 37.5 15.7 27.0 34.8 46.0 36.1 38.3 34.0 38.4 39.3 33. Cash assets ..................................................................... 19.0 17.8 20.8 42.1 19.3 20.1 19.8 19.8 18.5 18.7 17.4 32 17.6 17.9 17.5 16.7 33 17.8 17.0 17.4 17.2 17.0 16.5 18.4 17.0 16.8 17.6 16.9 16.9 25.7 24.3 25.7 25.6 27.2 34. Real estate assets ......................................................... 1.0 1.0 0.8 27.3 0.9 0.6 0.7 1.0 1.0 1.0 33 1.0 0.7 0.9 1.0 1.3 34 1.0 1.0 0.8 0.9 1.1 1.2 1.2 1.2 0.8 1.3 1.2 1.2 1.0 0.9 0.5 0 .5 0 .5 0 .6 34 35 7.5 7.5 7.5 7.4 7.5 7.5 6.7 6.8 7.0 6.6 6.6 7.0 7.5 7.4 9.6 10.0 8.0 8.2 30. U . S. Government securities ..................................... CAPITAL AND DEPOSIT RATIOS 8.3 8.4 10.7 10.9 11.1 10.8 10.6 11.1 8.8 9.0 8.4 9.1 8.9 9.2 Government securities and cash a s s e t s .............. 20.9 19.8 27.0 25.8 42.2 28.9 23.7 20.3 22.5 21.8 37.6 23.6 20.0 16.8 36 18.9 17.8 28.4 19.6 16.4 14.0 15.1 14.1 20.1 16.4 13.8 12.8 19.5 18.5 23.2 37. Capital accounts to total d e p o s its ............................. 22. 17.0 9.3 9.4 12.4 16.6 12.2 12.6 12.3 12.1 12.7 9.7 10.0 9.3 36 10.1 9.9 10.4 37 8.2 8.2 8.2 8.1 8.2 8.3 7.3 7.4 7.6 7.1 7.1 7.7 8.3 8.1 11.3 11. 9 .0 9 .3 44.6 46.4 49.2 38 47.3 47.6 46.4 47.7 46.2 49.6 37.2 38.3 44.7 34.4 36.3 41.1 37 13.5 17.1 10.1 10. 0. 7.4 8.6 38 0.80 1.13 39 35. Capital accounts to total a s s e t s ................................. 36. Capital accounts to total assets, less United States 38. Tim e to total deposits ................................................. 39. Interest on time d e p o s its ............................................. 43.8 1.07 44.2 1.18 43.7 1.11 44.0 1.19 38.3 0.89 43.6 1.14 43.9 1.11 45.9 1.36 46.6 1.07 46.8 1.20 46.9 0.95 0.98 1.27 1.42 39 1.06 1.15 0.99 1.10 1.14 1.27 1.08 1.20 0.82 1.03 1.13 1.36 1.37 1.61 0.55 1,341 1,348 1,210 1,405 1,394 1,331 3,319 3,311 3,104 3,461 3,207 3,360 40 9,695 10,005 9,861 9,557 10,451 9,946 67,052 72,525 59,891 47.37C 88,737 74,648 37,577 39,967 440,534 41. for Capital accounts ........................................................... Digitized FRASER 161 165 149 170 172 164 317 326 281 340 314 343 41 778 806 783 774 830 817 4,806 5,226 4.50C 3.33S 6,084 5,614 3,041 3,199 49,096 436,001 2,380,338 2,416,170 50,140 214,168 222,501 2 Includes service charges and other fees on loans. 3 Banks not reporting this item or reporting negligible amounts were ex cluded in computing this average, and averages are not shown where there were fewer than 3 banks in a group. 4 Includes recoveries, charge-offs, profits, or losses charged or credited to either undivided profits or valuation reserves. 5 Represents the net increase or de crease for the year in valuation re serves against loans and investments. Calculated by deducting the balances in Schedule D of the earnings and divi dend report at the end o f the preceding year from the balance on hand at the end o f the current year. 6 Transfers to and from valuation reserves for losses on securities ex cluded in 1953 but included in prior years. 7 Transfers to and from valuation reserves for losses on loans excluded. AVERAGE BANK IN GROUP — In thousands o f dollars 40. Total deposits ................................................................ FOOTNOTES 1 For prior years, this ratio can be computed by subtracting the ratio of net current earnings before income taxes to total assets from the ratio of total earnings to total assets. t Less than 0.005 per cent. Prepared by 40 F in a n c ia l S t a t is t ic s D iv is io n 41 R esea rch D ep a rtm en t number maintaining valuation reserves decreases pro gressively. Thus, in the smallest-sized banks (group I), only 39 per cent of the banks maintain such reserves. The fact that a relatively small number of the smaller banks maintain valuation reserves results in an understatement of the average ratio of net increase or decrease in valuation reserves to total earnings (item 22) for those banks maintaining these reserves. In addition, banks that do not make provision for future losses show higher net profits than banks that are accumulating reserves. Therefore, to enable an individual bank to compare its results with groups following similar reserve practices, the following sup plementary averages of selected ratios have been com piled for the four groups of banks outside New York City. losses or recoveries to total earnings. This year, to make possible the accurate measurement of actual profit or loss on loans and securities, these charges or credits have been shown separately under the caption “ Net increase (—) or decrease (+ ) in valuation reserves” (item 22). The ratio of profits or losses taken on securities to total securities held (item 27) lias also been calculated on the basis of actual profit or loss experience for the first time. Loan losses as a percentage of outstanding loans (item 29) have been calculated on this basis since 1948. Every one of the New York City banks (groups V, VI, and V II) maintains valuation reserves. And in the largest-sized banks outside the City (group IV) 96 per cent of the banks have adopted this practice. However, as the size of banks becomes smaller, the In per cent o f total earnings Size-group N um ber o f banks N et current earnings before incom e taxes N et losses ( —) or recoveries N et increase ( —) or decrease ( + ) in valuation reserves Taxes on net incom e N et profits BANKS WITH VA LU A TIO N RESERVES Outside N . Y . C . w ith deposits: Under $2 m illion ............................................................. $2 t o $5 m illion............................................................... Jo t o $20 m illion ............................................................. Over $20 m illion............................................................. 41 131 219 88 32.1 31.4 30.6 31.2 - 2 .3 - 3 .1 - 3 .9 - 4 .7 -1 .9 -1 .5 -1 .1 -1 .4 8.1 8.6 9.1 10.0 19.8 18.2 16.5 15.1 BANKS WITHOUT V A LU A TIO N RESERVES Outside N . Y . C . with deposits: Under $2 m illion ............................................................. $2 t o $5 m illion ............................................................... $5 to $20 m illion............................................................. Over $20 m illion............................................................. 64 80 42 4 31.6 32.2 31.9 33.7 - 0 .8 - 3 .1 - 4 .0 + 3 .4 — — — 7.7 8.0 8.9 12.2 23.1 21.1 19.0 24.9 D IV ID E N D PA Y M E N T S — higher in some groups of banks. In the largest-sized group of New York City banks, for example, the divi dend rate rose to 4.1 per cent of capital funds (from 3.9 per cent a year previous), the highest level since 1941. Dividend payments rose in absolute terms through out the District in 1953. In proportion to capital funds, which also showed continued growth, the aver age rate of payment (item 4) remained unchanged at 2.5 per cent for the District as a whole but was slightly A llan S proul, President. C h a ri I P E R C E N T A G E C H A N G E F R O M 1952 TO 1953 IN SELECTED A SSET A N D L IA B IL IT Y ITEM S B Y S IZ E G R O U P S O F M E M B E R B A N K S IN THE SECO N D F E D E R A L R E S E R V E D IS T R IC T * GROUP I II III GROUP IV V VI VII U . S . G O V E R N M E N T SECURITIES I III V77\in c r e a s e D ECR E ASE ♦ 0 .6 -3 .2 -2 .7 + 5 .4 ♦2 .6 + Q.2 .V77L IV V D EM A N D D EPO SITS + 6 .7 P 7 771 + 3 .0 3777\— YZlA__tzzza_ - 1 .6 - 1 .7 LO A N S - 0.1 TIM E D EPO SITS ♦ 3 2 .5 +20.1 /// +10-9 m y ^ m r n m r n m 22. +5 » Y //A ♦5.i rm ♦».» + 2 .6 + 2 .6 - E Z Z 3 --------17773— V/A m x im -ta r \m - e .7 +0.2 . z.0 + 3 .5 ♦8-7 p rrra T777\ V//A +0.1 Y77A +9-6 W Z L izzk ' Figures used to calculate the percentage changes are the averages per banlt of the amounts reported for three call dates each year -the preceding year end, June 30, and the autumn call dote. „ , +2 I + 3 .9 -E2Z2L TO TAL ASSETS LESS G O V K N M E N T S AND CASH ASSETS CASH ASSETS +13 ZZZj. .. C A PIT A L ACCOUNTS ♦il.® V77A____ M ™ O T H E R SECU RITIES +5.9 m . +8.0 m + 5 .2 1772. C h a r i li DISTRIBUTION OF SECOND DISTRICT MEMBER BAN KS OUTSIDE N EW YO RK CITY ACCORDING TO SIZE OF CERTAIN KEY RATIOS GROUP I* GROUP II* GROUP III * G R O U P IV RATIO O F TOTAL CURRENT EA RNIN GS TO TOTAL ASSETS No. of banks No. of banka 60 I2 0 i------- No. of banks o f banks 60 >i *!l *?i 40 80 40 20 40 20 0 150 2 -5 1 ' 3.01 3..S1 3.00 8.50 4.00 YA 4.01 Over 4.50 4.50 0 2.50 1 % V f- Inn 2.51 3.01 3.51 4.01 Over 3.00 3.50 4.00 4.50 4.50 2._51 2.50 3.00 3.01 3.50 3.51 4.0 1 Over 4.0 0 4.5 0 4.50 0 2-50 2-51 3 .01 3.51 4.0 1 3.00 1 50 4.00 4. 50 Over 4.50 RATIO OF TOTAL EXPEN SES TO TOTAL ASSETS RATIO O F NET CURRENT EA R N IN G S BEFORE INCOME TA XES TO TOTAL ASSETS R A T IO O F NET PROFITS TO TOTAL ASSETS 60 120 180 40 60 120 20 40- IVkr&0 0..31 0.61 0.»1 Over 0 0.30 0 60 0.90 1.20 1.20 * B A N K S W IT H T O T A L D E P O S IT S UNDER $ 2 ,0 0 0 ,0 0 0 60 OBder 0 0.31 0.61 0.»1 Over 0 0~300.60 0.*0 l.'ao L20 ♦ b a n k s W IT H T O T A L D E P O S IT S $ 2 ,0 0 0 ,0 0 0 T O $ 5 ,0 0 0 ,0 0 0 60 W PA ii 40 - a 0.31 0.61 0.91 Over 0 0.30 0.60 0.90 1.20 1.20 * B A N K S W IT H T O T A L D E P O S IT S $ 5 ,0 0 0 ,0 0 0 TO * 2 0 ,0 0 0 ,0 0 0 20 Coder 0 0.3 1 0.61 0.91 Over 0 0.3 0 0.6 0 0.9 0 1 20 1.20 * 8 A N K S W IT H T O T A L D E P O S IT S OVER $ 2 0 ,0 0 0 ,0 0 0
@FedFRASER