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FED ERAL RE SE R V E BANK O F N EW YO RK [ Circular N o. 4 2 0 8 1 M arch IS, 19SS J Operating Ratios of Member Banks in the Second Federal Reserve District for the Year 1954 To all Member Banks in the Second Federal Reserve D istrict: Net profits o f all member banks in the Second Federal Reserve District, after all charges but before dividend payments, averaged 8.3 per cent o f capital funds (item 3) in 1954. This compares with 7.3 per cent in both 1953 and 1952, and was the highest rate of return since 1946 when 11.2 per cent was earned. As reflected in items 21 and 27, the past year’s im provement in net profits resulted largely from the replacement o f losses on security transactions in 1953 by net profits and recoveries on securities in 1954. Net current operating earnings before income taxes generally decreased in 1954 among the District’s member banks, both as a percentage of total earn ings (item 2 0 ) and as a percentage o f capital funds (item 1 ). A ll but one of the seven size-groups into which the banks are divided for purposes o f operating ratio analysis had higher ratios o f net profits before divi dends to capital funds in 1954 than in 1953. This ratio declined slightly for the smallest banks (with total deposits of less than 2 million dollars), however, falling from 7.1 in 1953 to 6 . 6 in 1954. The year-to-year increases in the ratio of net profits to capital funds were most pronounced in the largest (group V I I ) banks in New York City and in the two largest size-groups (III and IV ) outside the City; for these three groups of banks, the shift from security losses in 1953 to security profits last year was especially marked. The shift from security losses to profits was also substantial in the smallest-sized (group V ) banks in New York City, but its effect on this group’s net profits was largely offset by lower net current operating earnings, by enlargement of valuation reserves, and by larger provision for income taxes. OPERATING INCOME Total operating income increased moderately fu r ther in most banks in the Second Federal Reserve District in 1954. The ratio o f total earnings to total assets (item 5) increased from a Second District aver age of 3.25 per cent in 1953 to 3.33 per cent in 1954, the highest level reached since 1939 (when it was 3.50 per cent). Total earnings as a percentage of total assets decreased in two o f the three New York City groups o f banks (V and V I I ), however, as the increase in gross earnings was less than the growth in total assets. In all the other groups o f banks, the ratio of income to assets was higher than in 1953. The rise in total operating income o f banks outside New York City was mainly based on a further rise in income from loans. The rate o f return on loans (item 28) showed a slight decrease in most groups of banks, but net losses and charge-offs on loans (item 29) remained quite small, and the volume o f loans in creased. Loans as a percentage o f total assets (item 32) declined in two o f the New York City groups o f banks (V and V I I ), but rose in the other New York City group (V I) and in each of the four groups of banks outside the City. Average holdings o f United States Government securities increased in all but the two smallest sizegroups of banks outside New York City. The increases in Government security holdings were greatest, in both absolute and relative terms, in the group V and V II banks in New York City. The average Government security holdings o f the group V banks were enlarged by the investment o f funds derived from the sale or maturity of “ other securities” (item 31), while in the group V II banks the growth in Government security portfolios reflected the influence o f a reduction in loans (item 32). As a percentage of total earnings, there fore, income from Government securities (item 9) in creased in these two groups of banks, though the rise was tempered by the lower average yields received (item 25). In the other five groups of Second District banks, income from Government securities either de clined or did not grow as much as total earnings, and the ratio of Government security income to total earn ings (item 9) decreased moderately. Member banks’ average holdings of “ other securi ties” , which are mostly municipal obligations, in creased in 1954 throughout the District, both abso lutely and in relation to total assets, except in the group V banks mentioned above. Rates of return on “ other securities” (item 26) showed mixed year-toyear changes, however; for the District as a whole, the average rate was down slightly to 2.28 per cent, from 2.35 per cent in 1953. O PERATING EXPEN SES Total operating expenses moved higher in 1954, and averaged 70.3 per cent of total earnings for all mem ber banks in the District (as compared with 68.3 per cent in 1953). This was the highest expense ratio since 1943, when expenses averaged 73.5 per cent of earnings. Outlays for salaries and wages continued to increase both in dollar amount and in relation to total earnings; the most important factor in 1954’s higher total expense ratio, however, was increased interest payments on time deposits. Interest payments on time deposits averaged 16.1 per cent o f total earnings for the Second District member banks in 1954, compared with 14.9 per cent in 1953. The 1954 ratio was the largest since 1945, when the average was 16.4 per cent. The rise in inter est payments on time deposits reflected both a larger volume of such deposits (item 38) and moderately higher interest rates (item 39). In the New York City groups o f banks, the increase in the ratio of interest payments on time deposits to total earnings was espe cially large, as the result o f large increases in the volume of time deposits held by these banks for the account of foreign banks. (The comparatively favor process in 1954 and used a considerable part of their 1954 security profits to build up their reserves. Many member banks throughout the District took advantage of a 1954 revision in the Internal Revenue Service formula, in effect since 1947, for the calcula tion of reserves for bad debt losses on loans. The effect of this revision was to permit banks to accumulate additional tax-free reserves for such losses. Under the 1947 formula, a bank’s reserve for bad debt losses on loans could not exceed three times the bank’s average yearly loss experience over the most recent twenty years. The 1954 revision of the formula provided that a bank could accumulate a bad debt loss reserve equal to three times its average loan losses over any twenty consecutive years after 1927. In many banks, therefore, the revision of the formula increased the maximum reserve permitted for tax purposes because under the revised formula banks could include the years of their worst loss experience—the early thirties— in comput ing their twenty-year average loan loss. However, charges against earnings to bring the reserve to the new, higher, permissible maximum must be spread over a three-year period. Thus, in 1954, an amount equal to one third of the difference between the actual bal ance in the reserve for bad debt loan losses and the new “ ceiling” could be transferred to the reserve. able rates available in 1954 on time balances led foreign banks to favor them over bankers’ acceptances and Treasury bills as an investment medium for short-term dollar balances.) NONRECURRING ITEMS Higher prices of Government and municipal securi ties in 1954 permitted all size-groups of banks except the smallest (group I) banks to record net profits and recoveries on securities in place of the net losses and charge-offs they showed in 1953. And the group I banks halved their 1953 losses in 1954. In fact, the year-to-year change from net losses and charge-offs to net profits and recoveries (item 2 1 ) was the principal factor accounting for the higher 1954 net profits of the Second District member banks. As a percentage of total earnings, the changes gen erally varied directly with the size of the banks. Thus the year-to-year changes ranged from 0.7 per cent of total earnings in the smallest size-group of banks in the District to a substantial 13.6 per cent of total earn ings in the largest New York City banks. In the larger banks of the District, security profits (the main com ponent of item 2 1 ) were enlarged as a result of the “ switching operations” conducted in 1953 for tax pur poses ; these operations involved the sale of some issues of securities for the purpose of taking losses and the simultaneous purchase of other issues at correspond ingly low prices. In relation to total security holdings (item 27), net profits and recoveries in 1954 averaged 0.28 per cent for all banks in the District, compared with a net loss o f 0.14 per cent in 1953. Because a large number of the smaller banks in the Second District do not maintain valuation reserves for losses on loans or securities, the average increases in reserves of the smaller groups of banks were relatively small (item 2 2 ), and their indicated net profits are somewhat higher than they would have been if larger transfers to reserves had been made. To permit the TAXES, DIVIDENDS, AND RETAINED EARNINGS Income tax liabilities of member banks were gener ally higher throughout the District in 1954, reflecting the larger incomes subject to tax. The elimination of the excess profits tax lowered the taxes of compara tively few banks, and had little effect on the average ratio of taxes to total earnings (item 23) of the various groups of banks. Dividend payments continued to rise in 1954, the District average equaling 2.7 per cent of capital funds, compared with 2.5 per cent in 1953. But most of the year’s increase in net profits was retained and added to capital funds, along with the In per cent of total earnings Size-group B AN KS W IT H V A L U A T IO N RESERVES* Outside New York City with deposits: Under $2 million..................................................... $2 million to $5 million.......................................... $5 million to $20 million........................................ Over $20 million...................................................... of banks 195S Net current earnings before income taxes Net profits and recoveries ( + ) or losses ( —) 1954 195S 1954 41 131 219 88 41 119 212 101 32.1 31.4 30.6 31.2 31.9 29.9 28.7 29.1 - 2 .3 -3 .1 -3 .9 - 4 .7 - 1 .6 + 0 .9 + 3 .6 + 3 .7 80 42 4 79 42 4 32.2 31.9 33.7 30.0 29.7 31.2 -3 .1 - 4 .0 + 3 .4 + 1 .2 + 1 .6 + 4 .7 195S 1954 Net increase ( —) or decrease ( + ) in valuation reserves 195S Taxes on net income Net profits 1954 1953 1954 195S 1954 - 1 .9 - 1 .5 -1 .1 -1 .4 -0 .8 -1 .6 -2 .2 -4 .4 8.1 8.6 9.1 10.0 8.8 8.4 10.0 10.9 19.8 18.2 16.5 15.1 20.7 20.8 20.1 17.5 _ — + 0 .2 7.7 8.0 8.9 12.2 8.1 10.2 11.8 23.1 21.1 19.0 24.9 19.8 23.3 21.1 24.1 B A N K S W IT H O U T V A L U A T IO N RESERVES* Outside New York City with deposits: $2 million to $5 million.......................................... $5 million to $20 million........................................ Over $20 million...................................................... - — — — * As of the end of the year. banks to make a more accurate comparison of their results with the group averages, we have again pro vided a supplementary table of selected ratios for the member banks outside New York City; the table shows separate sets of ratios for banks with valuation re serves and for banks without them. The table indicates that all but the smallest-sized group of banks outside New York City added larger amounts to their reserves in 1954 than they did a year earlier. And the three New York City groups, which in 1953 drew on their valuation reserves to cushion the impact o f their losses (item 2 2 ), reversed the proceeds of a number of new stock issues. The rate of growth in capital funds barely exceeded that in total deposits, however, and the ratio of capital funds to deposits averaged 9.5 per cent in 1954, compared with 9.4 per cent in 1953. As a percentage of “ risk” assets (total assets less United States Government securities and cash assets—item 36), capital funds de clined from a District average of 19.8 per cent in 1953 to a new postwar low of 19.1 per cent in 1954. A llan S proul, President. 1 9 5 4 Average Operating Ratios of Memb iks in the Second District, Grouped According to Size of Deposits and Proportion of Loans to Total Assets (All ratios are expressed in percentages and ar netical averages of the ratios of individual banks in each group, rather than ratios based on aggregate dollar figures) YOUR NOTES BANKS N o te : Balance sheet figures used as a basis for the 1954 ratios are averages o f amounts reported for Decem ber 31, 1953, June 30, 1954, O ctober 7, 1954, and Decem ber 31, 1954. 1953 SUM M AR Y R A TIO S G G R O U P I— Deposits under 52 million all banks Second District Group average 1954 1953 1954 Under 20 20-29.9 B A 30-39.9 C 40 and up D YOUR BANK Under 21 20-29.9 B A 1953 18 40 and up D 30-39.9 C NEW YORK BAN KS IN M A N H A T T A N , N E W Y O R K C IT Y CITY GR OU P n r — Deposits of $5 million to $20 million YOUR BANK Under 26 20-29.9 B A 1 1953 1954 • S >J 261 254 16 Group average 1953 1954 Under 2( 20-29.9 A B 30-39.9 C 89 68 40 and up D 81 92 105 YOUR BANK GR OU P V Deposits under $100 million Loans to total assets, per cent— 1954 30-39.9 C 40 and up D 16 43 44 YOUR BAN K G R O U P VI Deposits S100 million to SI billion GR OU P V II Deposits over SI billion 1953 1954 1953 1954 1953 1954 9 9 10 9 9 tr, E YOUR BANK 5 5 a 9 3 44 67 9 .3 9 .9 11.2 11.9 1 13.7 12.7 10.1 11.5 12.8 14.0 15.6 15.0 13.2 13.8 17.0 10.6 8 .9 14.0 13.6 14.6 13.8 l 9 .7 211 10.2 11.3 11.5 2 11.5 13.3 11.0 12.9 13.6 13.8 12.7 14.7 12.7 14.0 16.4 9 .8 10.9 13.4 14.2 12.8 14.6 2 7 .4 8 .4 8 .0 3 7 .4 8.9 8.6 8 .9 9 .5 8 .2 7 .6 9.1 7 .8 9 .3 9.3 6 .1 6 .5 7 .3 7 .5 6.7 8 .1 3 2 .5 2 .3 2 .6 4 2 .5 2.8 2 .0 3 .4 2.6 2 .6 3 .2 3.4 3 .1 3 .2 3.7 2 .3 2 .6 3 .7 3 .7 4.1 4 .3 4 S 678 105 94 9 18 22 45 6 .0 8 .6 9 .6 11.4 11.8 9 .9 10.2 6 .5 7.1 7 .5 1.7 69 GROU P IV— Deposits over $20 million Loans to total assets, per cent— 1954 Group average Loan* to total assets, per cent — 1954 697 N um ber o f B a n k s.. . MANHATTAN, -Deposits of $2 million to $5 million Grou Loans to total assets, per cent— 1954 OUTSIDE 2* P erce nta ge o f Total C apital Accounts 1. Net current earnings before income taxes........................ 12.9 12.1 10.5 9 .9 2. Profits before income taxes ............................................... 11.0 12.3 9 .6 9 .3 6 .8 8 .6 9 .9 3. Net profits ............................................................................... 7 .3 8 .3 7 .1 6 .6 5 .6 6 .2 7 .5 4. Cash dividends declared ....................................................... 2 .5 2 .7 2 .1 2 .1 1 .5 1 .8 2 .1 2 .3 2.4 S. Total earnings ......................................................................... 3.25 3.33 3.41 3.54 2 .5 5 3 .0 3 3 .34 4 .04 3.2 2.55 2.98 3 .3 2 3.69 5 3.21 3.30 2.52 2.87 3.39 3.73 3.34 3.38 2.84 3 .23 3.76 3.28 3.01 2.79 2.80 2.50 2 .4 5 Total expenses ....................................................................... 2.22 2.35 2 .3 0 2.48 1.94 2.11 2 .37 2.79 2.2 1.80 2 .08 2 .3 4 2.58 6 2.22 2 .3 5 1.82 2 .04 2 .41 2.67 2.30 2.39 1.98 2.32 2.63 2.51 2.43 1.48 1.47 1.33 1.35 6 7. Net current earnings before income t a x e s ........................ 1.03 0 .9 8 1.11 1.06 0 .61 0 .9 2 0 .97 1.25 l.C 0.75 0 .90 0 .9 8 1.11 7 0.99 0 .9 5 0.70 0 .83 0 .9 8 1.06 1.04 0.99 0 .86 0.91 1.13 0 .77 0.58 1.31 1.33 1.17 1.10 7 Net profits ............................................................................... 0 .5 9 0 .6 7 0.76 0 .7 0 0 .5 8 0 .6 6 0 .7 6 0.72 0-fi 0.61 0.67 0 .7 3 0 .7 5 8 0.53 0 .6 8 0.59 0.63 0 .72 0.62 0.51 0.60 0 .52 0.60 0.62 0 .4 5 0.43 0 .68 0 .73 0.54 0 .6 5 8 P erce nta ge o f To ta l Assets 6. 8. SOURCES A N D D IS P O S ITIO N O F EA R N IN G S P erce nta g e o f To ta l Earnings 9. Interest on United States Government securities .......... 10. Interest and dividends on other securities ........................ 25.0 2 3.4 2 4.3 22.4 41.6 29.9 2 4 .5 14.4 6 .9 6 .8 7 .1 14.9 1 2.2 6 .4 3 .9 56.4 5 7.4 6 0.7 62.1 34.2 48.9 6 0 .0 74.1 6 .9 7 .2 5 .2 5 .5 6 .0 5 .9 5 .7 5 .2 5 .0 5 .1 3 .0 2 .9 3 .3 3.1 3 .4 2 .4 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Total earnings ..................................................................... IS. Trust department earnings2 (part of item 1 3 ).................. 2 .9 3 .0 1 .0 1 .3 — 1.3 16. Salaries and wages ................................................................. 30.8 3 1.2 3 1.5 32.0 41.3 31.7 3 3.5 29.6 17. Interest on time deposits ..................................................... 14.9 16.1 14.5 16.1 13.0 16.8 14.1 17.4 Other current expenses ......................................................... 22.6 23.0 22.2 22.3 2 1.1 21.3 2 3.3 22.4 Total expenses ................................................................... 6 8.3 20. Net current earnings before income t a x e s ........................ 21. Net profits and recoveries or losses ( - ) 3.......................... 22. Net increase ( - ) or decrease ( + ) in valuation reserves4 31.7 - 23. Taxes on net income ............................................................. 24. 68.2 7 0.3 2 .3 31.8 29.7 3 .4 0 .9 - 1 .8 70.4 - 1.4 0 .7 7 5.4 6 9.8 7 0.9 29.6 - 2 4.6 3 0.2 29.1 0 .7 3 .3 1 .0 1.7 6 9.4 0 .3 — - 0 .6 - 0 .5 - 3 .4 0 .2 - 9 .8 7 .9 8 .4 5 .0 8 .6 7 .6 9 .4 2 1.8 20.2 22.9 22.0 22.7 17.6 100.0 100.0 1 .3 1.3 30.9 5 4 .2 5 5.4 29.0 4 4 .8 57.0 7 .9 8 .3 9 .1 8 .4 8 .7 13 5 .1 5 .2 4 .4 5 .5 14 100.0 100.0 100.0 0 .7 15 2 .0 2 .0 1 .5 30.8 29.6 16 3 0 .3 3 0.7 16.8 17.5 18.1 17 16.1 21.7 22.2 22.2 18 69.4 70.5 69.9 30.6 29.5 30.1 1.5 1.4 0 .2 21 1 .0 22 - 0 .9 - 1.1 15.1 - 2 1.2 2 0.2 29.8 2 0 .8 15.7 19.1 22.8 2 0.7 18.0 17.8 20.8 6 .6 6 .5 8 .5 7 .6 3.8 6 .0 4 .3 5.7 6 .4 4 .5 5 .0 67.8 57.6 5 8.0 4 5.4 5 5 .5 66.3 56.6 54.8 51.1 5 1.3 60.1 55.1 7 .4 7 .1 7 .8 8 .1 8 .2 7.4 8 .9 9 .3 3 .7 2.6 2.3 2 .8 12 5 .2 5 .1 7 .5 7.5 8 .2 7 .9 6.8 9 .4 8 .8 18.8 21.7 15.3 16.3 13 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 2 .3 1.9 2 .1 3 .5 3.5 3 .9 4 .0 2.8 6 .4 6 .3 13.3 15.6 8.2 8 .6 15 31.3 3 0 .4 3 1.3 30.3 3 2.0 32.5 3 2.8 33.3 31.6 38.6 38.8 3 1.8 3 1.2 30.2 30.3 16 16.8 16.8 17.6 15.6 17.4 12.7 14.0 14.1 13.9 14.0 7 .9 12.5 1.6 2 .1 3.7 5 .3 17 2 2 .8 23.7 24.1 23.1 23.6 24.0 24.0 24.3 2 3.3 24.7 24.3 29.2 28.9 19.4 18.5 19.2 19.6 18 19 69.2 71.2 7 2.2 7 1 .1 7 0.5 71.7 68.7 7 0.8 7 0.2 71.9 69.9 75.7 80.2 52.8 5 1.8 53.1 55.2 19 20 3 0 .8 28.8 2 7.8 2 8 .9 29.5 28.3 31.3 29.2 2 9.8 28.1 30.1 46.9 44.8 20 - 3 .9 3 .3 3 .5 4 .5 3 .5 2 .0 - 4 .3 3 .7 2 .9 3 .0 4.9 5 .8 7 .8 21 - 1 .0 2 .3 - 1.4 26.1 9 100.0 - 1.8 - 0 .8 - 1.6 - 1.8 16.3 - 100.0 - 4 .2 - 3 .9 7 .2 19.: 8 .4 7 .9 8 .8 23 9 .0 10.0 7 .1 9 .9 9 .5 11.3 10.1 10.9 10.8 23.9 8 .' 20.4 100.0 6 .5 0.1 0.J 9 .1 2 .9 22.6 9 .3 1.4 3.3 18.3 Net profits ........................................................................... 3 .8 3 2 .0 14.1 29.6 3 i.; - 3 .4 43.4 6 .7 70.4 6 8 .f 3 0.6 - 12 2 4.4 20.6 22.6 19. 5 .6 18.4 16.t 18. 11 7 .1 3 1.4 1.2 — 71.3 1.5 30. < — 5 7.8 6 .7 100.0 100.6 100.0 4 7 .9 4 .2 3.6 14. 7 .0 7 .5 6.6 13. Other current earnings ......................................................... 24.3 10.6 30.1 5 6 .E 12. Service charges on deposit accounts ................................. 31.4 9 .3 7.C 11. Earnings on loans1 ............................................................... 48.9 2 6 .c 6 .7 2 2.8 2 1.9 2 0.5 24 16.9 20.3 23.4 21.9 21.7 16.7 15.5 17.8 18.0 - 2 .8 - 100.0 24.3 - 5.9 19.8 3.1 7 .6 1.0 - 4 7.2 9 .5 8 .0 16.5 14.2 - 11 100.0 14 3 .8 0 .3 4 .6 22 2 0.5 23.6 19.8 21.4 23 24.6 10.2 18.8 5 .8 26.6 21.6 26.6 24 0 .6 2 .5 12.6 4 8.2 2.7 - 9 14.7 - - RATES O F RETURN O N SECURITIES A N D L O A N S Return on Securities 25. Interest on United States Government securities............ 2 .10 2 .3 5 26. Interest and dividends on other securities ...................... 27. Net profits and recoveries or losses( - ) on total securities5 - 2.09 2 .2 8 0.14 0 .2 8 5.41 2 .17 2 .25 2 .06 2.24 2.26 2.30 2.98 2.90 2.51 2.48 2.: 2 .5 7 5.38 2.61 0 .0 3 0 .1 0 5.97 - 5 .9 0 0 .0 0 0 .1 4 0.17 0.07 5.70 5 .6 3 - 6.14 2 .2 0 2.15 2.1 2.19 2.10 25 2.42 2 .32 2.41 26 0 .1 5 0.21 0 .2 0 27 5 .50 0. 2 .4 0 0 .04 5 .4 3 5 .45 5.56 28 0 .12 29 2 .08 2.06 2 .10 2.07 2.10 2 .00 2 .27 2 .1 3 2 .78 2 .08 2.08 2.11 0 .17 0 .3 2 0.14 0 .23 0 .3 2 0.42 5.28 - 5 .35 5.14 5.04 5.49 2.03 5.49 1.97 1.97 1.95 1.97 2.11 1.82 2.21 2.11 1.80 1.97 2 .33 3.29 2.81 0.21 0.43 0.27 0 .30 0 .63 0 .03 0.58 5.17 - 5.18 4.89 5 .04 5 .43 4.87 4.67 0.04 0.01 -0 .0 6 -0 .0 5 1.94 1.76 25 2.33 2.26 26 0.55 0 .59 27 3.41 3.58 3.51 28 0 .02 0.03 0.03 29 2.35 2 .37 0.21 0.61 3 .59 - 1.77 1.89 - Return on Loans 28. Earnings on loans1 ............................................................... 29. Net losses ( - ) or recoveries on loans^ ............................ - 0 .0 8 - 0 .0 9 - 0 .0 9 - 0.19 5.71 - 0.01 - 0 .2 0 - 0 .0 2 - 0 .3 0 5.. - 0.1 - 0.01 - 0 .1 2 - 0.07 - - 0 .06 - 0 .0 8 - 0.03 - 0 .07 - 0.06 - 0.11 - 0.13 - - 0.23 - 0.08 - 0 .02 - - D ISTR IB U TIO N O F ASSETS P erce nta ge of To ta l Assets 30. United States Government securities ............................... 36.6 3 5 .3 35.3 3 2.9 50.6 4 0.3 3 6 .0 24.9 38.' 5 8 .0 4 2.0 36.6 2 6 .3 30 38.1 3 8.7 51.3 4 4.1 34.9 29.6 33.5 3 3.5 43.3 3 3.9 29.4 29.2 3 5.4 2 8.6 28.0 23.5 28.7 30 31. Other securities ....................................................................... 9 .7 9 .9 8 .7 9 .1 13.4 14.2 8 .6 6 .5 9 .' 9 .6 13.0 10.2 8 .1 31 10.1 10.4 16.1 1 2.7 11.0 6 .5 10.5 10.5 12.9 1 2.5 6.8 6 .7 5 .5 6 .0 6 .5 5.2 5.9 31 32. Loans ......................................................................................... 34.7 3 6.2 35.7 3 8 .2 15.3 2 6 .0 3 5 .6 48.9 33.' 14.0 26.3 35.2 4 7 .4 32 3 3.6 34.9 14.3 2 5 .5 35.4 46.2 37.5 3 8.2 26.3 3 5 .5 46.1 38.3 36.4 3 8 .4 40.1 42.1 38.8 32 33. Cash assets ............................................................................... 17.8 17.4 19.3 18.9 2 0 .2 18.8 18.8 18.7 17. 17.6 17.6 17.0 16.9 33 1 7.0 16.8 17.5 16.6 17.3 1 6.3 17.0 16.3 15.9 16.5 16.2 24.3 2 1.3 2 5 .6 23.9 27.3 24.4 33 34. Real estate assets ................................................................... 1.0 1.0 0 .9 0 .9 0 .5 0 .6 0 .9 1 .0 0 .7 1.0 1.0 1.2 34 1.0 1.1 0 .6 0 .9 1 .2 1.3 1.2 1.2 1 .3 1.2 1.1 0 .9 0 .8 0 .5 0 .4 0 .6 0.6 34 c a p it a l and 1.' 2 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 three banks in a group. 3 Includes recoveries, charge-offs, profits, or losses charged or credited to either undivided profits or valuation reserves. 4 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 o f the earnings and divi dends report at the end o f the preced ing year from the balance on hand at the end o f the current year. 5 Transfers to and from valuation reserves for losses on securities ex cluded. 6 Transfers to and from valuation reserves for losses on loans excluded. d e p o s it r a t io s 35. Capital accounts to total assets ........................................... 8 .4 8 .5 10.9 11.2 11.5 11.6 10.9 1 1.2 9. 8 .4 9 .6 8 .9 36. Capital accounts to total assets, less United States Government securities and cash assets .......................... 19.8 19.1 25.8 2 4.9 4 1.6 29.3 2 4 .5 19.9 21. 3 8 .2 24.2 19.5 37. Capital accounts to total deposits ..................................... 9 .4 9 .5 12.4 12.8 13.1 13.4 1 2.4 12.8 10. < 9 .3 10.7 9 .9 38. Time to total deposits ........................................................... 4 4 .2 4 4 .3 4 4 .0 4 5 .2 3 3.1 46.1 4 3 .2 4 8.3 46. 46.1 44.0 4 8 .0 4 8 .9 39. Interest on time deposits ..................................................... F O O TN O TE S 1 Includes service charges and other fees on loans. 1.18 1.29 1.19 1.36 0.93 1.25 1.19 1.57 1. 1.05 1.25 1.32 9 .5 35 7 .5 7 .8 7 .4 7 .5 7 .9 7 .9 6 .8 6.7 6 .5 6 .6 6.9 7 .4 6 .8 10.0 10.3 8.2 8.1 35 16.9 36 17.8 17.6 28.5 19.6 18.8 14.6 14.1 13.7 16.5 13.4 12.7 18.5 19.1 2 2.1 21.6 16.6 17.4 36 10.6 37 8 .2 8 .5 8 .2 8 .2 8 .7 8 .7 7 .4 7 .3 7 .1 7 .2 7.5 8 .1 7 .4 11.8 12.1 9 .3 9 .2 37 38 47.6 4 6.7 42.8 4 6 .5 46.1 4 8.3 3 8.3 38.6 3 8 .0 41.0 17.1 24.9 10.3 12.1 8 .6 11.9 38 1.49 39 1.15 1 .25 1.06 1.15 1.19 1.44 1.20 1.28 1.10 1.25 1.40 1.61 1.49 0.76 0.84 1 .13 1.16 * Averages are not shown when fewer than three banks are in a group. Prepared by 39 Fi n a n c i a l A V E R A G E B A N K i n G R O U P — In thousands of dollars 40. Total deposits ......................................................................... 1.348 1,332 1,277 1,286 1,465 1,297 3 ,3 3,161 3,357 3,402 3 ,315 40 10,005 9,894 9,244 9,509 10,102 10,117 72,525 71,954 54,038 63,960 86,125 39,967 47,299 436,001 419,811 2,416,170 2.621,287 40 41. Capital accounts ..................................................................... 165 167 160 167 185 160 3 282 352 333 347 41 806 832 729 773 857 874 5,226 5,153 3,665 4,4 7 0 6,315 3,199 3,432 50.140 51,488 222,501 240,802 41 T r a d e St a t is t ic s D iv is io n and R esearch D e p a r t m e n t DISTRIBUTION OF SECOND DISTRICT MEMBER BANKS OUTSID E NEW YORK CITY ACCORDING TO S IZ E OF CERTAIN KEY RATIOS GROUP GROUP I II GROUP I II GROUP IV ' R A T IO O F T O T A L CURRENT E A R N IN G S T O T O T A L ASSETS 2 .5 0 3 .0 0 3 .5 0 4 .0 0 4 .5 0 2 .5 0 4 .5 0 N o . of banka N o . o f ban ka N o . of bank* No. 3.'0 0 . 3 . 5 0 4 . 0 0 4 .5 0 2 .5 0 4 .5 0 3 '0 0 3 . 5 0 4 . 0 0 4 .5 0 4 .5 0 2 .5 0 3 .'0 0 3.'5 0 4.‘ 00 4.'5 0 4 .5 0 2 .0 0 2 .5 0 3 . 0 0 3 .5 0 3 .5 0 1.'7 0 2.' 10 2 . 10 R A TIO OF T O T A L EXPENSES T O T O T A L ASSETS 120 I8O1------------------j----------------- 80 120 4 0 - & IZZL 1 . 5 1 ( 2 .0 1 IS O 2 .5 1 3 .0 1 Over 2^0 3 :0 0 3.'5 0 3 .5 0 2."50 0 I? 5 0 1 .5 1 2 .0 1 2 .5 1 3 .0 1 O ver 2.'0 0 2 .'5 0 3 . 00 3 /5 0 3 .5 0 0 1 .5 1 LS0 2 .0 1 2 .5 1 3 .0 1 Over 2."00 1 50 3 .'0 0 37 50 3 .5 0 17S0 R A TIO O F N E T C UR R EN T EARNINGS BEFORE IN C O M E TA X E S T O T O T A L ASSETS 180 120 0 0 .5 0 0*9 0 l.*30 l."70 2* 10 2 .1 0 0 .5 0 0. 9 0 l.~30 1.'70 2 .' 10 2 .1 0 0 .5 0 0 ; 51 0; 9 1 1 .3 1 1 .1 1 Over 0 .9 0 1 70 2 . 10 2 . 10 1 .3 0 0 .5 0 0.*90 1.'3 0 R A T IO O F NET P R O FITS T O T O T A L ASSETS ♦ B A N K S W IT H T O T A L DEPO SITS U N D ER S 2 M IL L IO N *B A N K S W IT H T O T A L D E P O S ITS * B A N K S W IT H T O T A L D E P O S ITS * 2 M I L L I O N T O S S M IL L I O N S 5 M IL L IO N T O 1 2 0 M I L L I O N ^ IN C L U D E S T W O BANKS W IT H N E T C U R R E N T D E F IC I T S . ♦ BANKS W IT H T O T A L D E P O S IT S O VER S 2 0 M I L L I O N
@FedFRASER