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f t ? j - J / / EARNINGS AND EXPENSES OF SECOND DISTRICT MEMBER BANKS March 26, 1963 To All Member Banks of the Second Federal Reserve District: We are pleased to send you this report on the earnings and expenses and the operating ratios of our member banks for the year 1962, prepared by our Bank Examinations Department. This report is intended for use as a management tool at your bank. Should any questions arise, you may direct your inquiries to the Bank Examinations Department. Additional copies of this report are available upon request. A lfred H ayes, President. Federal Reserve Bank of New York CONTENTS Page PART I, Revenues and Expenses of Second District Member Banks in 1962.............................. 1 Table: Income, Expenses, and Dividends of Second District Member Banks, 1961-62................... 3 PART II, Operating Ratios of Second District Member Banks for the Year 1962 3 Tables 1962 Average Operating Ratios of All Member Banks in the Second District.................................. 7 1962 Average Operating Ratios of Second District Member Banks: In New York C i t y ............................................................................................................................... 7 In Group I — Deposits under $2 Million ................................................................................... 8 In Group II — Deposits of $2 Million to $5 M illio n .................................................................. 9 In Group III— Deposits of $5 Million to $20 Million ............................................................. 10 In Group IV— Deposits of $20 Million to $50 Million ........................................................... 11 In Group V— Deposits of $50 Million or o v e r .......................................................................... 12 Notes to Pages 7-12 .................................................................................................................... 13 PART I R ev en u es a n d E xp en ses o f S econ d District M e m b e r B anks in 1962 Summary M AJO R OPERATING REVENUES AND EXPENSES SECOND DISTRICT MEMBER BANKS Second District member banks’ net current operating earn ings of $836.3 million in 1962 were 3 per cent lower than in 1961, falling by $26.2 million. The rate of decline, how ever, was only about one half that registered for the earlier 1953-62 M illio n s of d o lla r s M illio n s of d o lla r s year. Factors underlying the 1962 results were generally similar for both New York City* and other District member banks. While total operating revenues of $2.51 billion continued to rise over preceding years, 9.5 per cent over 1961, total oper ating expenses of $1.67 billion advanced at a more rapid rate, 17 per cent higher than in 1961. The increase in inter est paid on time and savings deposits was mainly responsible for the rise in total current operating expenses. Higher net deductions in nonoperating items brought net income before related taxes down $29.8 million from the 1961 level; net income after taxes, however, was a fraction higher, entirely accounted for by banks outside of New York City. Cash dividends declared were higher than in 1961 so that net income after dividends eased off by 2.2 per cent. The rate of decline, however, was far less than the 7.6 per cent drop reported the earlier year. Overall, the income, expense, and dividend figures confirm the general consensus that, except for the unusual rise in costs, 1962 was a good year for banking. This major reason for lower net earnings may be gradually offset as banks con tinue to increase volume and shift to higher earning assets to meet the higher costs of operation. Preliminary figures for 1962 are tabulated on page 3, and trends throughout the past decade are shown on the accom panying chart. S o u rce s: B o a rd of G o v e rn o rs of t h e F e d e r a l R e s e r v e S y s t e m , 1 9 5 3 - 6 1 . F ig u re s fo r 19 6 2 a re p r e lim in a r y a n d a r e c o m p ile d b y t h e F e d e ra l R e s e rv e B a n k of N e w Y o rk . Operating Revenue The $217.2 million gain in total operating revenue for 1962 over 1961, a 9.5 per cent increase, far bettered the gain recorded in 1961. Percentagewise, the 1962 gains were about the same at banks in New York City and at other District banks. Average asset holdings were larger and, as reported in Part II of this report, the rates of return on total securities holdings and loans were higher than in the previous year. The higher earnings on securities reflected shifts in holdings * This and all other references to New York City member banks are to those that were central reserve city member banks prior to July 28. 1962, when the central reserve city classification was abolished. The category is retained for yearly comparisons. 1 deposits at New York City banks accounted for about 25 per cent of total deposits, whereas at other banks in the District the percentage is nearly twice as high. both for New York City and other banks. However, while member banks throughout the District reported increases in returns on U.S. Governments and other securities, a com parison between New York City banks and others discloses certain differences. Despite the net liquidation of more than $500 million of U.S. Government obligations by New York City banks, interest income from these securities rose by 4.6 per cent, indicating shifts towards higher yielding issues that more than offset reduced holdings. In addition, the New York City banks’ larger holdings of other securities— mainly tax-exempt State and municipal issues— raised earn ings on these by $24 million, a 29.4 per cent increase over 1961. Outside of New York City, member banks’ revenues from the two categories of securities rose at relatively con stant rates— 15.4 per cent on U.S. Government securities, and 17.2 per cent on other securities. Salary and wage payments of $595 million continued to be the largest single item of expense. The upward movement of salary and wage payments continued at a slightly higher rate, 5.3 per cent, in 1962 than in the year before. The per centage rise in these outlays was approximately the same at banks both within and outside New York City. However, for reasons already cited, they accounted for a conspicuously smaller proportion, 35.5 per cent of total expenses, than the almost 40 per cent in 1961. Another expense item, “ interest and discount on borrowed money,” although comparatively small, was more than 74 per cent higher in 1962 than in the prior year. Virtually all of this increase resulted from bor rowings by New York City banks finding themselves tem porarily short of reserves. In the more sluggish 1960-1961 economic period, the borrowings had declined 44 per cent. The Districtwide $1.57 billion earnings from loans in 1962 reflected a $136 million increase over 1961. This 9.5 per cent gain— in contrast to the previous year’s levelling off in earnings from this source— was due to larger average loan volume and shifts in the composition of the loan port folios toward higher yielding consumer and real estate loans. The $779 million increase in these two loan categories brought the combined total to $9.25 billion, or close to a 10 per cent rise over the 1961 combined total. Revenues from commercial loans also rose, based upon the $576 million increase in such loans over 1961, a 4.4 per cent rise that carried the total to $13.7 billion for the District. However, the increase was wholly confined to New York City banks rather than at other District banks where these loans were approximately the same as in 1961. For the District as a whole, commercial loans accounted for a lesser portion of total assets than in 1961 because of the increases in other assets. Net current operating earnings, the balancing of current operating revenue and expenses, fell off by 3 per cent with the rate of decline slightly higher at the banks outside of New York City. Nonoperating Items, Taxes, Dividends, and Retained Earnings Losses from security transactions, other profit and loss adjustments, and changes in valuation reserves exceeded corresponding recoveries in 1962, resulting in write-downs slightly greater than in 1961. Loan losses were lighter in both New York City banks and other banks in the District, but so were securities profits, the result being a net decline. Combined with valuation reserves entries, the total non operating accounts reduced net current operating earnings by $81.9 million, bringing net income before related taxes slightly below the 1961 level. However, the decline was partially offset by lighter taxes on net income contrasted to the year before, with taxes amounting to 38.9 per cent of net income in 1962 as against 41.4 per cent in the pre ceding year. Operating Expenses On the cost side, District member banks’ total expenses, aggregating $1.67 billion, advanced at a more rapid rate than did gross operating revenues. The sharpest increase in expense was the $157 million rise in interest payments on time and savings accounts. These outlays accounted for more than one third of total expenses, in contrast to one quarter in 1961. As shown on the chart, these outlays have been rising over the years, and the 41.7 per cent rise in 1962 was the steepest in the last decade. This rise resulted from the $2.6 billion increase in total lime and savings deposits, in addition to the increased rates paid since January 1962. As between the two major bank groupings, time and savings The result was a fractional gain in net income over the previous year. Of this amount, 54 per cent was distributed to stockholders, heavily weighted by the New York City figures, and the balance retained for plow-backs within the banks. The total net income retained after dividends was 2.2 per cent lower than the corresponding amount in 1961. The decline was accounted for by the New York City banks, all others having registered a 14.2 per cent increase. 2 Income, Expenses, and Dividends o f Second District M ember Banks 1 9 6 1 -1 9 6 2 (In millions of dollars) New York City member banks* A ll Second District member banks 1962 1961 438 462 215.4 8 1.4 917.9 3 3.2 143.0 100.8 141.8 6 8.0 568.6 5 6.8 3 3.9 2 0.5 122.9 5 8.0 514.4 5 3.7 34.1 18.0 1 ,6 2 0.4 1 ,4 9 1.7 889.6 801.1 564.4 101.6 377.8 17.5 121.2 36.3 211.5 379.3 80.1 273.5 2 8.6 8 8.7 21.5 123.1 360.3 73.1 187.7 16.1 8 1.2 18.7 111.2 215.2 3 1 .4 261.7 1 .9 4 2.9 20.3 105.5 204.1 2 8.5 190.1 1 .4 4 0.0 17.6 100.3 1,6 7 3.7 836.3 1 ,4 3 0.3 862.5 994.8 625.6 848.3 643.4 678.9 210.7 582.0 219.1 - 26.0 + 33.4 + 5 .4 + - 40.1 7 7.6 9 .6 + - 14.5 24.9 5 .6 - 2 5.6 + 6 5 .2 7 .7 - 11.5 + 8 .5 + 11.0 + - 14.5 12.4 1 .9 - - 9 2 .3 13.9 - 6 2.9 + 1 .2 - - - 17.9 6 .4 784.2 324.7 568.7 239.3 593.4 257.0 185.7 54.1 190.8 6 7.7 461.0 459.5 329.4 336.4 131.6 123.1 249.1 211.9 242.8 216.7 189.2 140.2 182.5 153.9 59.9 71.7 6 0.3 6 2.8 1962 1961 1962 1961 451 475 13 13 On loans (including service charges and fees on loans).. 367.1 173.3 1,5 6 8.7 9 1.8 190.1 119.0 338.3 139.4 1,432.3 8 6.9 177.1 118.8 225.3 105.3 1,0 0 0.1 3 5.0 156.2 9 8.5 Total current operating revenue................... 2 ,5 1 0 .0 2 ,2 9 2 .8 594.5 111.5 535.2 3 0.5 131.6 4 1.8 228.6 T otal current operating expenses................... Net recoveries ( + ) or charge-offs ( —) on loans................... Securities profits and recoveries ( + ) or charge-offs ( —) . . All other recoveries ( + ) or charge-offs ( —) ............. Net additions to ( —) or deductions from ( + ) valuation reserves for: Item Current Operating Revenue: On United States Government securities........................... All other Second District member banks Current Operating Expenses: Salaries aud wages— officers and em ployees...................... Pension, hospitalization, Boeial security taxes, etc.............. Interest, and discount on borrowed m oney........................ Net occupancy expense of bank premises......................... Furniture and equipm ent—depreciation, rents, e tc ......... 9 2 .5 2 .2 754.4 293.4 7 4.4 7 .5 29.6 3 .4 * Includes only those member banks that were “ central reserve city member banks” prior to July 28, 1962, when the central reserve city classification was abolished. PART II O p e r a tin g R a tios o f S e co n d District M e m b e r B anks fo r the Y e a r 1962 counts also dropped, and the percentage of retained earnings (#3 minus # 4 ) — after all nonoperating deductions and cash Summary Districtwide averages tabulated on page 7 show a decline in net current operating earnings both as a percentage of total capital accounts ( # 1) and of total assets (# 7 ), 1962 being the second consecutive year of decline. Even though the ratio of total operating revenue to assets (# 5 ) gained over the earlier year, the lower net return is the outcome of total current operating expenses (# 6 ) having increased at a faster rate than the total operating revenue. The declines were carried down through net income as a percentage of total assets (# 8 ) after adjustments for nonoperating items and taxes. Net income as a percentage of total capital ac dividends— was lower than in 1961. Selected key ratios are commented upon below under topi cal headings that conform to the headings shown in the operating ratio tables beginning on page 7. For the first time two new ratios, #17 and #19, are shown in the tables. Sources and Disposition of Earnings Total current operating revenue earned on total assets by Second District member banks was slightly higher in 1962 3 than in 1901, reaching a new postwar high. The moderate increase reflected generally the higher interest income on both securities and loans (#27, #28, #30) that also reached new postwar highs during 1962. The improved income arose from changes in the composition of loan and investment portfolios in efforts to meet the higher cost pressures that were injected into the banking scene at the start of 1962. Sources of operating revenues as percentages of total earn ings changed only slightly as reported in ratios #9 through #13. However, over the decade, as Chart 1 shows, the portion of revenue derived from loans rose from 56.4 per cent in 1953 to 62.8 per cent in 1962. And, by contrast, the chart indicates the decline in the portion of income derived from U. S. Government securities from 25.0 per cent at the outset of the decade to 18.9 per cent at the close. C h a rt 1 CURRENT O P ER A TIN G REVEN U ES AS A PERCEN TA G E OF TOTAL ALL SECO N D DISTRICT BAN KS 1953-1962 Per cent 100 cu rre n e a rn in g s S e r v ic e ch a rg e s on __d e p o sits In te re s t o th er se c u ritie s In te re s t on U.S .g o v ’t o b lig a tio n s E a rn in g s on lo a n s Total current operating expenses as a proportion of total earnings (#21) reached a new high in the postwar years. Moreover, the 1962 percentage point rise over 1961 was the steepest registered throughout that period. The major factor accounting for the rise was the interest cost on time and savings deposits (# 1 8 ), which absorbed a higher percentage of total operating revenues in 1962 than in any year since 1923, the earliest year of comparison. To illustrate, the ratio more than doubled that reported a decade ago. Underlying the increase was the sharp rise in rates paid (#41) and the expansion in time and savings deposits relative to total deposits (# 4 0 ). The steepest effective rate increases occurred in two of the New York City bank groups, VI and VII, as well as in the largest size bank group located outside New York City. varied widely among the bank groupings and sub-groupings, depending upon the interrelations between dollar costs and and total earnings. For example, the steep decline registered for Group IV was the outcome of a sharp rise in operating expenses that far outweighed the gains in total operating revenue (shown as percentages of total assets, # 5 ). The Districtwide decline in net current earnings is also shown in the percentages of total capital accounts (# 1 ) and of total assets (# 7 ). Salaries and wages (#16) continued to claim a smaller portion of total current operating revenue despite the rise in dollar payments to officers and employees. Relatively low ratios— such as those of the largest size New York City banks— are attributed to the high total operating revenues upon which the ratios are computed, rather than belowaverage salary and wage levels, f or comparisons, salary and wage outlays should be considered together with “ pension, hospitalization and other benefits” (# 1 7 ), now included for the first time in this report. “ Net occupancy expenses” (#19) is another new entry. Because of these changes, the ratio for “ all other current operating expenses” (#20) is lowered and no longer comparable with ratios published prior to 1961. Net income as a percentage of total operating revenue (#26) likewise dropped sharply from the 1961 level to a degree matched in recent years by the “ recovery-to-boom” period 1958-1959. The earlier setback, however, reflected wholly different circumstances, notably the heavy losses taken on security transactions to meet rising loan demand and to reduce taxes. By contrast, the lower 1962 net income results were determined more by the reduction in the net operating earnings ratio, resulting from higher operating expenses, rather than the relatively slight losses taken on the nonoperating accounts (# 2 3 ), smaller transfers to valuation reserves (# 2 4 ), and the reduced tax burden (#25) resulting from the lower taxable income. The outcome of operating expenses absorbing a larger portion of total operating revenue was to drop the net current operating earnings ratio (#22) considerably below that of 1961— and also below the ratio for any of the years since the early 1930’s. The range of earnings falloffs, however, Rates of Return on Securities and Loans Most of the ratios following #26 give the details account ing for the higher total current operating revenue. With the exception of Group I, the average rate of return on 1962 4 Government securities holdings (#27) rose over that of the earlier year. Yields on other securities (#28) rose, however, for only the four smaller groups. The higher interest returns reflect shifts in securities holdings toward longer maturities as well as the average higher rates on short-term instruments that prevailed in the 1962 money markets. The moderately higher rate of returns on loans (#30) reversed the previous year’s decline— although the rise did not come close to matching some of those that took place during tight money periods in the 1950’s. Increased income in 1962 rather reflected shifts in loan categories toward real estate and consumer credit in efforts to offset the increase in the interest expense on deposits. The returns on loans were higher in every group other than the two smaller New York City groups. C h a rt 2 continued its unbroken postwar downward slope. Although the range of years charted is limited to a decade, the 1962 ratio stands close to one half of the ratio recorded 15 years ago. Increased holdings of other securities (# 3 3 ), largely the tax-exempt State, county, and municipal issues, are almost twice the earlier holdings, while the loan sector (#34) has more than doubled over the past 15 years. The 1962 nonearning cash holdings continued their uninterrupted descent. On the whole, the District experience— heavily weighted by the $2 billion deposit gains centered in New York City— indicated difficulties in matching loan volume with deposit inflows or, in some instances, a reluctance to press for higher loan-asset risk ratios. As shown on Chart 3 depicting annual loan-asset ratios, the 1962 rises are relatively slight con trasted with other than recession years. Capital and Deposit Ratios All groups, with the exception of two New York City bank groups (VI and V III), managed either to maintain or in crease their capital strength measured against total assets (#37) and total deposits (# 3 9 ). Moderate reversal of the steady increase recorded over the years in dividends de clared (# 4 ) helped stem declines in these capital ratios. New York City Group VI was the sole exception in dividend out Distribution of Assets As shown on Chart 2 and ratios #32 through #36, Second District member banks’ various higher asset totals showed relatively minor shifts from the previous year’s distribution. U. S. Governments, as a proportion of total assets (# 3 2 ), 5 lays and also registered the largest declines in the two capital ratios cited above. The third capital ratio, the so-called “ risk asset” ratio (#38) has registered annual declines throughout the postwar period, and 1962 is no exception. This has been accounted for by the long downward trend in Government securities and cash holdings as percentages of total assets. Comments bearing on time deposits relative to total de posits and the average rate of interest paid (#40 and #41) have been made earlier in connection with bank costs and earnings. The increases were spread generally throughout the District, with the New York City banks feeling the heavier impact of shiftings by customers from certain money mar ket instruments to the higher time deposit yields. Also related was the stimulus to time deposit growth by the rela tively new negotiable interest-bearing time certificates of deposit, issued mainly by the money market banks. However, these banks continue to hold a far lower ratio of time and savings to total deposits than banks outside of New York City. 6 1 9 62 Average Operating Ratios of All Member Banks in the Second District (All ratios in this table and in the tables on the following pages 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.) N ote: SUMMARY RATIOS BANKS IN NEW YOU,K C ITY* All Second District Banks Balance-sheet figures used as a basis for the 1962 ratios are averages of amounts reported for December 30, 1961; June 30, 1962; and September 28, 1962. GROUP VI Deposits under $100 million GROUP VII Deposits $100 million to $1 billion GROUP V III Deposits over $1 billion 1962 1961 1962 1961 1962 1961 1962 1961 446 472 5 5 7 7 7 7 Number of banks......... YOUR B AN K Percentage of Total Capital Account* 1. Net current operating earnings ................................................ 12.1 13.5 15.6 15.5 20.3 21.5 16.7 18.1 2. Net income before related taxes ............................................. 3. Net incom e......................................................................... 10.5 11.8 10.3 11.2 18.1 19.1 15.2 17.0 7.4 8.1 6 .5 7.5 9.2 9.7 8.9 9.7 4. Dividends declared ............................................................ 3.1 3 .2 2 .6 2 .3 4.6 4.8 5.1 5.1 Percentage of Total Aglets 5. Total current operating revenue........................................ 4.61 4.46 4.58 4.60 4.80 4.72 3.78 3.73 .............................................. 3.61 3.35 3.40 3.34 2.96 2.79 2.31 2.09 7. Net current operating, earnings .................................................. 1.00 1.11 1.18 1.26 1.84 1.93 1.47 1.64 0.61 0.67 0.49 0.62 0.85 0.89 0.78 0.87 6. Total current operating expenses SOURCES AND DISPOSITION OF EARNINGS Percentage o f Total Current Operating Revenue 9. Interest on U. S. Government obligations...................... 18,9 18.8 16.4 14.4 12.9 12.1 14.1 10. Interest and dividends on other securities...................... 7 .8 7 .9 4.2 6.1 3.8 4 .0 6.5 5 .3 11. Earnings on loans1 ............................................................. 12. Service charges on deposit accounts ............................... 62.8 62.7 66.5 65.6 57.7 59.6 62.0 61.8 6.8 7 .0 5 .2 5.9 2.9 3 .2 2.0 2 .0 13. All other current operating revenue ............................... 3.7 3.6 7 .7 8.0 22.7 21.2 15.4 16.2 Total current operating revenue................................... Trust department earnings* (part of item 13) ................ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 3.2 3 .2 b 11.4 20.2 19.2 9 .7 9 .7 16. Salaries and wages (officers and employees) ................ 17. Pension, hospitalization, and other benefits.................... 24.7 25.9 25.6 28.7 28.3 28.3 23.7 24.6 2.9 2 .8 3 .9 3 .6 4 .9 4 .8 4.6 4 .5 18. Interest on time and savings deposits............................. 32.6 27.8 28.4 22.1 10.6 7.9 16.5 12.2 14. 15. 14.7 19. Net occupancy expense of bank premises........................ 4 .5 4 .8 4.4 4.9 5.5 5.5 5.2 5 .2 20. All other current operating expenses ............................. 13.7 13.9 11.9 13.1 12.4 12.5 11.0 9.8 78.4 75.2 74.2 72.4 61.7 59.0 61.0 56.3 21.6 24.8 25.8 27.6 38.3 41.0 39.0 2.7 a - 0 .8 + 3 .7 - 3.8 - 3 .8 21. Total current operating expenses................................. 22. Net current operating earnings......................................... 23. Net recoveries and profits ( + ) or losses ( - ) ’ ............... 24. Net increase ( - ) or decrease ( + ) in valuation reserves*. 26. Net incom e...................................................................... 0.6 - 0.8 2 .0 - 2 .3 - 2.2 6.2 - 4.7 - 0.3 100.0 43.7 + - 2.6 5.2 5.6 6 .7 6 .5 6.6 17.1 17.8 14.8 17.7 13.4 15.0 10.9 13.6 17.6 18.6 20.7 23.4 RATES OF RETURN ON SECURITIES AND LOANS Return on Securities 27. Interest on U. S. Government obligations ...................... 3.25 3.09 3.29 3.11 3.34 3.01 3.06 28. Interest and dividends on other securities ...................... 2.96 2.89 3.69 3.83 3.09 3.38 3.01 29. Net recoveries & profits ( + ) or losses ( - ) on total securities5 + 0.09 0.14 - 0.38 ■f 0.26 + + 0.23 + 0.29 + 0.23 2.84 3.13 + 0.66 Return on Loam 30. Earnings on loans1 ............................................................ 6.22 31. Net losses ( - ) or recoveries (-f-) on loa n s'.................. - 0.15 - 6.06 5.56 5.71 0.15 - 0.08 - 0.45 5.23 5.16 - 0.07 - 0.17 5.07 - 0.06 4.98 - 0.12 DISTRIBUTION OF ASSETS Percentaga o f Total Asset* 32. U. S. Government obligations.......................................... 33. Other securities ................................................................ 34. L o a n s................................................................................... 26.0 26.2 23.1 22.1 17.9 18.4 17.4 12.1 12.0 4.7 7 .6 6 .6 5.9 8.1 6.3 46.9 46.5 55.7 53.3 49.7 50.6 46.1 46.3 35. Cash assets ......................................................................... 36. Real estate assets .................................... ......................... 13.4 13.6 15.0 15.2 23.0 22.5 23.6 23.3 1.4 1.4 0.9 1.1 0.7 0.6 1.0 0.9 37. Capital accounts to total assets........................................ 8.5 8.6 7.6 8.3 9.3 9 .2 8 .9 9.2 38. Capital accounts to total assets, less U. S. Government securities and cash assets .............................................. 39. Capital accounts to total deposits..................................... 14.7 14.8 12.8 13.5 15.6 15.6 15.2 15.9 9.6 9.6 8.4 9.2 10.7 10.7 10.6 11.1 39.5 23.3 22.3 22.1 18.8 19.2 CAPITAL AND DEPOSIT RATIOS 40. Time and savings to total deposits ................................. 41. Interest on time and savings deposits ............................. 52.3 3.14 60.8 2.67 41.4 3.39 2.80 2.67 2.12 3.35 2.85 AVERAGE BANK IN GROUP— In thousand* o f dollars Total deposits .................................................................... Capital accounts ................................................................................ 116,238 101,703 11,159 9,763 53,825 47,350 314,010 290,931 4,688,437 4,330,916 4,521 4,356 33,599 31,130 * See page 13 for the note to “ Banks in New York City” and other notes referred to in this table. 496,974 480,732 7 1 9 6 2 Average Operating Ratios of Second District Member Banks in Group I — Deposits under $2 Million N ote: SUMMARY RATIOS Loans to total assets, per cent—1962 Group average Balance-sheet figures used as a basis for the 1962 ratios are averages of amounts reported for December 30, 1961; June 30, 1962; and September 28, 1962. Number of banks....... 0-34.9 A 1962 1961 23 31 4 35-44.9 B 45-54.9 C 8 55 and up D 9 YOUR BAN K 2 P e rc e n ta g e o f Total C apital Accounts 1. Net current operating earnings ....................................... 2. Net income before related taxes ..................................... 3. Net in com e........................................................................... 4. Dividends declared , ............................................................ 9.8 10.9 7.0 12.4 8.9 8.1 9.7 5.4 11.5 6 .4 5.6 7.6 3 .6 8.6 3.7 1.6 1.8 1.9 1.5 1.1 4.72 P e rc e n ta g e of Total A ssets 5. Total current operating revenue......................................... 4.61 4.48 3.85 4.72 6. Total current operating expenses..................................... 3.55 3.31 2.88 3.50 8.78 7. Net current operating earnings......................................... 8. Net income (after taxes) ................................................ 1.06 1.17 0.97 1.22 0.94 0.5S 0.83 0.50 0.83 0.37 SOURCES AND DISPOSITION OF EARNINGS P e rc e n ta g e of Total C urrent O p e ra tin g Revenue 9. Interest on U. S. Government obligations ...................... 10. Interest and dividends on other securities ...................... 23.2 22.1 39.0 24.6 7.3 7 .3 8 .5 9 .3 5 .3 11. Earnings on loans1 .............................................................. 61.3 62.4 44.4 58.6 68.6 12. Service charges on deposit accounts................................ 5.9 6.4 6 .0 6 .4 5 .5 13. All other current operating revenue ................................ 2.3 1.8 2.1 1.1 3.7 14. Total current operating revenue.................................... 15. Trust department earnings2 (part of item 13) ..................... 100.0 100.0 100.0 100.0 100.0 b b b b b 27.3 16.9 16. Salaries and wages (officers and employees) ................. 26.8 28.6 26.2 25.8 17. Pension, hospitalization, and other benefits .................... 2 .2 2 .2 2.1 1.5 2.4 18. Interest on time and savings deposits ■.............................. 30.2 25.8 32.0 31.4 29.0 19. Net occupancy expense of bank premises........................ 3.8 4.1 2.8 2 .4 5.1 20. All other current operating expenses .............................. 14.1 13.6 11.5 13.7 16.0 21. Qh D 5 H 'Z to X £ Total current operating expenses .................................. 77.1 74.3 75.2 74.8 79.8 22. Net current operating earnings......................................... 22.9 25.7 24.8 25.2 20.2 a H M a 23. Net recoveries and profits 24. Net increase (-) ............... - 4 .0 - 2 .5 5.4 - 2 .2 - 5.9 in valuation reserves4. - 0 .5 - 0.1 a - 0 .2 - 0.1 or losses (+ ) ( - ) 3 - z .................................................... 5 .8 4.9 6.6 5.7 6 .0 < K Net in com e....................................................................... 12.6 18.2 12.8 17.1 8 .2 a 25. Taxes on net income 26. (+ ) or decrease ... is RATES OF RETURN ON SECURITIES AND LOANS £ Return on Securities 27. Interest on U. S. Government obligations ...................... 28. Interest and dividends on other securities ....................... 29. Net recoveries & profits ( + ) or losses ( - ) on total securities5 3.34 3.30 3.25 3.46 3.25 3.47 2.95 3.11 4.35 2.97 + 0.08 + 0.03 + 0.02 + 0.05 + 0.15 R eturn on Loans 30. Earnings on loans1 ........ J ................................................. 31. Net losses ( - ) or recoveries ( + ) on loans"................. 6.57 - 0.47 6.42 - 0.24 0.73 6.56 6.81 6.10 - - 0.31 - 0.62 DISTRIBUTION OF ASSETS Percentage of Total Assets 32. U. S. Government obligations ........................................... 31.1 28.7 46.4 33.8 33. Other securities ................................................................. 9.3 10.7 10.8 9.6 8.4 34. Loans .................................................................................... 43.3 43.8 28.1 41.0 49.1 15.5 15.8 14.3 14.7 17.8 0 .8 0.9 0 .4 0 .9 1.0 36. Real estate assets ..................................................................... 23.5 CAPITAL AND DEPOSIT RATIOS 37. Capital accounts to total assets ................................................... 11.2 11.0 13.4 10.7 10.5 38. Capital accounts to total assets, less U. S. Government securities and cash assets .......................................................... 21.8 20.6 34.9 20.6 17.7 39. Capital accounts to total deposits ............................................... 12.8 12.5 15.6 12.2 11.9 40. Time and savings to total deposits 50.7 47.6 45.0 54.3 49.9 .......................................... 41. Interest on time and savings deposits ..................................... 2.90 2.69 2.35 2.99 3.06 AYERAGE BANK IN GROUP— In thousands of dollars 1,450 1,506 1,621 1,412 1,369 186 188 253 172 163 1 See page 13 for the note to “ Earnings on loans” and other notes referred to in this table. 100.0 O « CO " 1962 Average Operating Ratios of Second District Member Banks in Group II -— Deposits of $2 Million to $5 Million Note: Balance-sheet figures used as a basis (or the 1962 ratios sre averages of amounts reported (or December 30, 1961; June 30, 1962; and September 28, 1962. SUMMARY RATIOS Group average Loans to total assets, per cent-—1962 1962 1961 94 105 Number of banka.......... 0-34.9 A 35-44.9 B 45-54.9 C 55 and up D 13 28 29 24 YOUR BAN K Percentage of Total Capita! Accounts 1. Net current operating earnings ....................................... 9 .6 10.8 8.1 9 .2 9.4 2. Net income before related taxes ..................................... 3. Net incom e.......................................................................... 8 .4 9 .5 7 .5 8.2 8 .5 8.9 5.9 6 .8 5.3 6.2 6.0 5 .8 4. Dividends declared ............................................................. 2.4 2.6 2 .2 2.3 2.6 2.1 5. Total current operating revenue......................................... 4.55 4.40 3.9G 4.34 4.62 5.05 6. Total current operating expenses..................................... 3.61 3.37 3.23 3.41 3.70 3.95 0.94 1.03 0.73 0.93 0.92 1.10 0.68 0.64 0.48 0.63 0.58 0.56 11.3 Percentage of Total Asioti SOURCES AND DISPOSITION OF EARNINGS Percentage of Total Current Operating Revenue 9. Interest on U. S. Government obligations ...................... 20.4 20.6 35.5 22.4 17.8 10. Interest and dividends on other securities ...................... 7.4 7 .5 10.5 9.3 7.3 3 .8 63.9 63.4 45.4 58.8 66.7 76.5 5 .4 12.8 12. Service charges on deposit accounts ................................ 6.4 6 .5 6.8 7 .3 6.1 13. All other current operating revenue................................ 1.9 2.0 1.8 2.2 2.1 1.5 Total current operating revenue.................................... 100.0 100.0 100.0 100.0 100.0 100.0 IS. Trust department earnings3 (part of item 13) ................. 1.4 0.2 b 2.2 1 .3 b 16. Salaries and wages (officers and employees) ................. 25.4 26.1 24.4 27.4 25.7 23.4 17. Pension, hospitalization, and other benefits..................... 2 .7 2 .5 1.8 3 .2 2.7 2 .6 33.6 29.6 39.2 30.8 34.7 32.6 14. 18. Interest 011 time and savings deposits .............................. 19. Net occupancy expense of bank premises........................ 4.2 4 .7 3.7 3 .9 4.1 4.7 20. All other current operating expenses .............................. 13.6 13.9 12.7 13.3 13.0 15.2 78.5 Total current operating expenses .... ............................ 79.5 76.8 81.8 78.6 80.2 22. Net current operating earnings......................................... 21. 20.5 23.2 18.2 21.4 19.8 23. Net recoveries and profits ( + ) or losses ( - ) 3 ............... 24. Net increase ( - ) or decrease ( + ) in valuation reserves4. 21.5 .. - 1.3 - 1.6 - 0.7 - 1.5 - 0.6 - 2 .4 - 1.4 - 1.2 - 0 .5 - 0 .9 - 1.4 - 2.3 5.2 5.8 5.1 4.6 5.2 5.9 12.6 14.6 11.9 14.4 12.6 10.9 RATES OP RETURN ON SECURITIES AND LOANS Return on Securities 27. Interest on U. S. Government obligations ...................... 3.25 3.14 3.30 3.17 3.37 28. Interest and dividends on other securities...................... 29. Netrecoveries & profits(-f-)orlosses(-)on total securities5 3.10 3.02 2.98 2.89 3.02 0.03 a + 0.02 - 0.12 + 0.07 - 0.18 + + 0.10 - 0.08 3.19 3.50 - 0. 0s - 0.15 Return on Loans 6.33 31. Net losses ( - ) or recoveries ( + ) 011 loans’ ................... 6.19 6.25 - 0.11 6.27 6.25 - 0.16 6.52 DISTRIBUTION OF ASSETS Percentage of Total Assets 32. U. S. Government obligations ........................................... 33. Other securities ................................................................. 34. Loans .................................................................................... 20.3 27.7 27.8 42.1 30.4 24.6 10.9 11.0 14.0 13.7 10.9 5.9 40.5 45.6 29.1 40.8 49.1 59.4 35. Cash assets ........................................................................... 13.4 13.9 13.6 13.9 13.7 12.5 36. Real estate assets ............................................................... 1.4 1.5 1.1 1.1 1.6 1.8 10.2 10.3 10.1 15.1 CAPITAL AND DEPOSIT RATIOS 37. Capital accounts to total assets......................................... 10.1 9.8 9 .3 38. Capital accounts to total assets, less U. S. Government securities and cash assets ............................................... 17.6 17.7 22.1 18.5 16.8 39. Capital accounts to total deposits..................................... 11.4 11.0 10.3 11.5 11.7 11.5 40. Time and savings to total deposits .................................. 54.1 63.0 54.1 49.2 56.1 57.4 41. Interest on time and savings deposits .............................. 3.08 2.69 3.14 2.87 3.17 3.18 AVERAGE BANK IN GROUP— in thousands 0/ dollars Total deposits ..................................................................... 3,482 3,446 3,524 3,402 3,390 3,663 Capital accounts ................................................................. 397 379 363 391 397 421 1 See page 13 for the note to “ Earnings on loans” and other notes referred to in this table. 100.0 1 9 6 2 Average Operating Ratios of Second District Member Banks in Group I I I :— Deposits of $5 Million to $ 2 0 Million N ote: Group average Balance-sheet figures used as a basis for the 19G2 ratios arc averages of amounts reported for December 30. 1961; June 30, 1962; and September 28, 1962. SUMMARY RATIOS Number of banks......... Loans to total assets, per cenl — 1962 1962 1961 0-34.9 A 35-44.9 B 45-54.9 C 55 and up D 183 198 21 64 68 30 YOUR BANK P e rc e n ta g e o f Total C apital Accounts 1. Net current operating earnings ....................................... 11.3 12.7 9.8 11.0 11.7 12.2 2. Net income before related taxes ..................................... 10.2 11.2 10.3 10.1 10.4 10.2 3. Net incom e.......................................................................... 7.3 7.9 8.1 7.6 7.3 6.3 4. Dividends declared ............................................................. 2.9 3.0 2.9 3.0 2 .8 3 .1 P e rc e n ta g e o f Total A ssets 5. Total current operating revenue......................................... 4.68 4.40 3.96 4.38 4.78 5.01 6. Total current operating expenses ................................... 3.66 3.38 3.18 3.62 3.84 3.93 7. Net current operating earnings......................................... 8. Net income (after taxes) ................................................. 0.92 1.02 0.78 0.86 0.94 1.08 0.60 0.63 0.64 0.60 0.69 0.57 SOURCES AND DISPOSITION OF EARNINGS P e rc e n ta g e o f Total C urrent O p e ra tin g R evenue 9. Interest on U. S. Government obligations ...................... 20.0 19.5 33.9 22.8 16.6 10. Interest and dividends on other securities............. ........ 8 .3 8.4 13.1 9 .2 7.4 6.1 11. Earnings on loans1 .............................................................. 61.6 61.7 41.0 56.9 66.7 74.6 11.8 12. Service charges on deposit accounts ................................ 7.3 7.6 9.0 7 .7 7.1 5 .7 13. All other current operating revenue ............................... 2.8 2.8 3.0 3.4 2 .2 2.9 Total current operating revenue............................ ....... 100.0 100.0 100.0 100.0 100.0 100.0 15. Trust department earnings2 (part of item 13) ................. 1.7 0.7 0.8 2.3 1.2 0.8 16. Salaries and wages (officers and employees) ................. 23.9 25.3 25.0 24.0 23.9 23.3 2 .7 2 .7 2 .2 2 .7 2.8 2.6 36.1 29.9 34.9 35.6 36.1 33.9 14. 17. Pension, hospitalization, and other benefits.................... 18. Interest on time and savings deposits .............................. 19. Net occupancy expense of bank premises........................ 20. All other current operating expenses .............................. 21. Total current operating expenses ................................. 22. Net current operating earnings......................................... 23. Net recoveries and profits (-)-) or losses ( - ) 3 ............... 24. Net increase ( - ) or decrease ( + ) in valuation reserves4. 4.8 4.5 4.6 4 .3 4.4 14.1 13.4 13.4 14.4 14.4 80.1 76.8 80.0 80.3 80.6 78.6 19.9 23.2 20.0 19.7 19.5 21:4 - 0.3 - 0 .5 + 0.4 - 0.1 + 0 .1 - - 1.4 - 2.3 + 0.8 - 1.6 - 2.1 - 6.0 6.0 4.5 4.3 5.3 6.6 13.2 14.4 16.7 13.7 12.2 11.7 25. Taxes on net in com e.......................................................... 26. 4.5 13.9 Net in com e....................................................................... 100.0 2.1 1.0 RATES OF RETURN ON SECURITIES AND LOANS R eturn on Securities 27. Interest on U. S. Government obligations ...................... 8.24 3.07 3.31 3.26 3.22 securities ...................... 2.87 2.80 3.06 2.80 2.81 29. Net recoveries & profits ( - f ) or losses ( - )on total securities’ + 0.13 + 0.15 28. Interest and dividends 011 other + 0.14 - 0.55 + 0.12 - 0.09 + 0.22 - 0.13 3.19 8.01 - 0.09 - 0.14 R eturn on Loans 30. Earnings on loans1 .............................................................. 31. Net losses ( - ) or'recoveries ( + ) on loans8 ................... 6.28 - 0.16 0.12 6.45 6.16 6.02 6.02 - 6.31 DISTRIBUTION OF ASSETS P e rc e n ta g e of Total Assets 32. U. S. Government obligations ........................................... 27.4 27.3 40.5 30.6 24.4 33. Other securities ................................................................. 13.0 12.8 18.4 14.3 12.2 8 .4 45.3 45.4 27.5 40.4 49.4 69.0 12.7 12.9 12.3 13.2 12.4 12.4 1.4 1.4 1.1 1.4 1.4 1.7 36. Real estate assets ................................................................ 18.3 CAPITAL AND DEPOSIT RATIOS 8.2 8.2 8.1 8.0 8.1 8.8 38. Capital accounts to total assets, less U. S. Government securities and cash assets .............................................. 14.4 14.3 22.2 14.3 12.9 12.7 39. Capital accounts to total deposits..................................... 9.1 9.1 8.9 8.8 9 .0 9.8 40. Time and savings to total deposits .................................. 55.4 54.0 49.7 54.6 56.5 58.6 41. Interest on time and savings deposits .............................. 3.15 2.65 2.93 3.10 3.24 3.19 AVERAGE SANK IN GROUP—In th o u sa n d s of dollars 11,056 11,125 11,565 11,939 10,579 9,687 1,006 1,012 1,056 1,051 952 949 1 See page 13 for the note to “ Earnings 011 loans” and other notes referred to in this table. 10 1 9 62 Average Operating Ratios of Second District Member Banks in Group IV — Deposits of $ 2 0 Million to $ 5 0 Million Note: Group average Balance-sheet figures used as a basis for the 1962 ratios are averages of amounts reported for December 30, 1961; June 30, 1962: and September 28, 1962. SUMMARY RATIOS Loans to total assets, per cent —1962 1962 1961 0-34.9 A 35-44.9 B 45-54.9 C 55 and up D 63 60 4 11 33 15 Number of banks......... YOUR B AN K Percentage of Total Capital Account* 1. Net current operating earnings ....................................... 13.0 15.5 11.7 13.1 12.8 13.7 2. Net income before related taxes ..................................... 3. Net incom e.......................................................................... 11.2 13.7 10.1 11.1 11.5 10.9 7.9 8.9 7.3 8.5 8.1 7 .2 4. Dividends declared ............................................................. 3.5 3.8 2 .4 3.8 3 .4 3.9 Percentage of Total Assets 5. Total current operating revenue ....................................... 4.65 4.52 3.77 4.42 4.68 4.97 6. Total current operating expenses ..................................... 3.64 3.35 2.87 3.43 3.67 S .91 7. Net current operating earnings ......................................... 8. Net income (after taxes) ................................................ 1.01 1.17 0.90 0.99 1.01 1.06 0.62 0.67 0.57 0.66 0.64 0.56 SOURCES AND DISPOSITION OF EARNINGS Percentage of Total Current Operating Revenue 9. Interest on U. S. Government obligations ...................... 16.4 16.3 28.3 21.8 15.1 10. Interest and dividends on other securities ...................... 8 .7 8.9 13.1 11.5 8 .5 6.1 56.0 65.6 71.9 12.0 11. Earnings on loans1 ............................................................. 12. Service charges on deposit accounts ................................ 64.1 63.1 44.9 7.1 7.8 11.3 7.6 6.8 6 .4 13. All other current operating revenue ................................ 14. Total current operating revenue................................... 3 .7 3.9 2 .4 3.1 4.0 3 .6 100.0 100.0 100.0 100.0 100.0 100.0 15. Trust department earnings2 (part of item 13) ................. 2 .2 2.0 1.8 2.4 2.1 24.3 25.0 26.6 22.9 24.1 25.1 3 .0 3 .0 2.7 2.8 3 .0 3 .1 28.1 29.3 34.5 34.0 31.8 16. Salaries and wages (officers and employees) ................. 17. Pension, hospitalization, and other benefits .................... b 18. Interest on time and savings deposits .............................. 33.3 19. Net occupancy expense of bank premises........................ 4.4 4 .6 5.3 4 .5 4.3 4 .6 20. All other current operating expenses .............................. 13.2 13.4 12.4 13.2 13.0 14.1 21. Total current operating expenses ................................. 78.2 74.1 76.3 77.9 78.4 78.7 22. Net current operating earnings......................................... 21.8 25.9 23.7 22.1 21.6 21.3 23. Net recoveries and profits ( + ) or losses ( - ) 3 ............... - 0 .2 - 24. Net increase ( - ) or decrease ( + ) in valuation reserves*. - 2.7 - 2.6 25. Taxes on net income .......................................................... 26. Net in com e....................................................................... 0 .7 - 0 .9 - 2.6 + 1.5 - 0 .3 - 1.0 - 4 .7 - 1.9 - 3.0 5 .5 7.6 5 .0 4.1 5.8 6.0 13.4 15.0 15.2 14.8 13.6 11.3 100.0 RATES OF RETURN ON SECURITIES AND LOANS Return on Securities 27. Interest on U. S. Government obligations ...................... 3.23 3.03 3.17 3.30 3.27 28. Interest and dividends on other securities ...................... 2.91 2.82 2.80 3.10 2.77 + 0.04 + 0.13 + 0.04 + 0.26 29. Netrecoveries & profits(-f)orlosses(-)on total securities3 + 0.06 - 0.09 3.10 3.12 - 0.15 Return on Loan* 30. Earnings on loans1 ............................................................. 31. Net losses ( - ) or recoveries (4 -) on loans*................... - 6.16 0.01 0.09 - 0.11 - 5.82 6.22 0.13 - 0.10 6.24 6.14 - 0.07 DISTRIBUTION OF ASSETS Percentage of Total Asset* 32. U. S. Government obligations ........................................... 33. Other securities ................................................................. 23.3 23.8 33.6 29.2 22.0 13.9 14.0 17.7 16.8 14.2 0.9 48.6 47.7 29.2 39.9 50.0 57.3 35. Cash assets .......................................................................... 12.4 12.7 18.0 12.4 11.9 11.9 36. Real estate assets ............................................................... 1.5 1.4 1.3 1.2 1.5 1.5 34. Loans .................................................................................... 19.1 CAPITAL AND DEPOSIT RATIOS 37. Capital accounts to total assets......................................... 7 .8 7.7 8.0 7 .6 7.9 7 .7 38. Capital accounts to total assets, less U. S. Government securities and cash assets ............................................... 12.3 12.3 16.3 13.0 12.1 11.2 39. Capital accounts to total deposits..................................... 8 .7 8.6 8.8 8.4 8.8 8 .7 43.1 52.4 54.0 54.1 40. Time and savings to total deposits ................................. 41. Interest on time and savings deposits.............................. 53.0 3.21 51.3 2.71 2.66 3.23 3.25 3.27 AVERAGE BANK IN GROUP— In thousands of dollars Total deposits ..................................................................... 31,315 32,800 29,460 32,725 30,931 31,622 Capital accounts ................................................................. 2,721 2,821 2,592 2,749 2,722 2,751 1 See page 13 for the note to “ Earnings on loans” and other notes referred to in this table. 11 1 9 62 Average Operating Ratios of Second District Member Banks in Group V — Deposits of $ 5 0 Million or over Note: Balance-sheet figures used as a basis for the 1962 ratios are averages of amounts reported for December 30, 1961; June 30, 1962: and September 28, 1962. SUMMARY RATIOS Number Group average 1962 of banka........ 1961 64 Loans to total assets, per cent -1 9 6 2 0-34.9 A 59 35-44.9 B 45-54.9 C 55 and up D 19 26 19 0 YOUR BAN K Percentage of Total Capital Accounts Net current operating earnings ....................................... 15.9 18.4 14.6 15.4 18.2 2. Net income before related taxes ..................................... 13.6 15.5 13.3 13.3 14.4 1. 3. Net incom e.......................................................................... 9 .7 9 .9 9 .7 9 .8 9 .6 4. Dividends declared ............................................................. 4 .5 5 .0 4.0 4.9 4 .5 Percentage of Total Assets 5. Total current operating revenue......................................... 4.80 4.76 4.38 4.73 5.33 6. Total current operating expenses..................................... 3.79 3.48 3.39 3.66 4.05 7. Net current operating earnings......................................... 1.01 1.28 0.99 1.07 1.28 Net income (after taxes) ................................................ 0.68 0.69 0.66 0.69 0.69 8. SOURCES AND DISPOSITION OF EARNINGS Percentage of Total Current Operating Revenue 9. Interest on U. S. Government obligations...................... 15.8 15.4 21.8 14.8 10. Interest and dividends on other securities...................... 11. Earnings on loans1 ............................................................. 7 .4 7 .0 9.5 8 .3 4 .0 64.5 65.1 56.0 65.0 72.3 12. Service charges on deposit accounts............................... 6.9 7.0 13. All other current operating revenue............................... 5 .4 5 .5 14. Total current operating revenue................................... 7.5 6.5 6.8 5 .2 5 .4 5.6 100.0 100.0 100.0 3.4 3 .7 3 .8 25.8 CM o a 11.3 100.0 100.0 item 1 3 ) ................. 3.7 3.5 16. Salaries and wages (officers and employees) ................. 25.3 26.6 03 24.5 25.5 H W co CQ < 3 .8 3.7 3 .7 30.2 29.4 27.5 15. Trust department earnings2 (part of 17. Pension, hospitalization, and other benefits.................... 3 .7 3 .8 18. Interest on time and savings deposits.............................. 29.1 23.5 19. Net occupancy expense of bank premises........................ 5.1 5.3 20. All other current operating expenses .............................. 13.7 13.9 21. Total current operating expenses................................. 76.9 22. Net current operating earnings......................................... 23.1 4 .8 5.1 5 .5 13.8 13.5 73.1 £ O 13.7 77.0 77.5 76.0 26.9 M 23.0 22.5 24.0 ...p H ------- + 0 .8 - 0.2 24. Net increase ( - ) or decrease (4 -) in valuation reserves4. - 3.9 - 3.7 25. Taxes on net in com e......................................................... Net in com e...................................................................... » o 23. Net recoveries and profits ( + ) or losses ( - ) 8 ............... 26. CQ 5 .7 8 .3 14.3 14.7 RATES OF RETURN ON SECURITIES AND LOANS H + 1.5 + 0 .5 + 0 .5 - 3 .5 - 3 .4 - 5.0 oo W < ------ e 5 .8 5.1 6 .5 15.2 14.5 13.0 100.0 o z Return on Securities 27. Interest on U. S. Government obligations ............................ 3.31 3.09 3.34 3.31 3.29 28. Interest and dividends on other securities 2.79 2.82 2.72 2.84 2.79 + 0.14 + 0.24 + 0.27 + 0.01 + 0.21 ............................ 29. Net recoveries & profits (4 -) or losses ( - ) on total securities5 Return on Loans 30. Earnings on loans1 31. Net losses (-) ............................................................................ or recoveries (+ ) on loa n s'................... 6.16 - 0.14 0.16 6.12 5.90 6.10 - - 0.09 - 0.13 6.49 - 0.22 DISTRIBUTION OF ASSETS Percentage of Total Assets 32. U. S. Government obligations........................................... 33. Other securities ........................................................ ......... 36. Real estate assets ............................................................................... 22.4 23.1 28.4 21.1 12.2 11.3 15.0 13.5 7.5 50.4 50.8 41.6 50.2 59.5 13. i 12.9 13.2 13.4 12.5 1.3 1.4 1.2 1.2 1.6 18.0 CAPITAL AND DEPOSIT RATIOS 37. Capital accounts to total assets......................................... 7 .0 7.0 6 .8 6.9 7 .2 38. Capital accounts to total assets, less U. S. Government securities and cash assets .............................................. ia .9 11.1 11.7 10.6 10.4 39. Capital accounts to total deposits..................................... 7.7 7.8 7.5 7 .7 8 .0 40. Time and savings to total deposits .................................. 47.8 45.5 46.1 47.9 49.3 41. Interest on time and savings deposits.............................. 3.20 2.69 3.14 3.20 3.26 AVERAGE BANK IN GROUP—In th o u san d s o f d ollars 190,609 183,642 160,803 196,608 212,207 14,677 14,824 12,060 15,139 16,977 1 See page 13 for the note to “ Earnings on loans” and other notes referred to in this table. 12 N O T E S T O P A G E S 7-12 New York City banks include only those banks that have their main office located in Manhattan. One trust com pany was not included in the computation of average ratios. 1 Includes service charges and other fees on loans. 2 Excludes banks not reporting this item or reporting negligible amounts. 3 Includes recoveries, charge-offs, profits, or losses charged or credited to either undivided profits or valuation reserves. 4 Represents the net increase or decrease for the year in valuation reserves against loans and investments; calculated by deducting the balances in Schedule D of the income and dividends report at the end of the preceding year from the balance on hand at the end of the current year. 5 Excludes transfers to and from valuation reserves for losses on securities. 6 Excludes transfers to and from valuation reserves for losses on loans. a Less than 0.01 per cent. b Averages are not shown when fewer than three banks are in a group. Year-to-year comparisons by size groups may be affected by mergers and shifts of banks from one size group to another. N o te : 13 YOUR NOTES
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