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INCOME AND DIVIDENDS OF SECOND DISTRICT MEMBER BANKS March 31, 1967 To All Member Banks of the Second Federal Reserve District: We are pleased to send you this report on the income and dividends and the operating ratios of our member banks for the year 1966, prepared by our Bank Examinations Department. The report is intended for use by your management in analyzing and making comparisons of your operations with those of banks in the same deposit grouping. If you should have any questions that arise from this report, 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 Second District Member Banks Earnings and Condition R e p o rts ........................................ ........ 1 Tables Income, Expenses, and Dividends of Second District Member Banks, 1964-1966 ..................... 3 1966 Average Operating Ratios of All Member Banks in the Second District........................... 4 1966 Average Operating Ratios of Second District Member Banks— In New York C i t y ................................................................................................................ ........ 4 Outside New York City With Deposits under $5 M illio n ................................................................................ ........ 5 With Deposits of $ 5 Million to $ 2 0 M illio n .................................................................... 6 With Deposits of $ 2 0 Million to $50 M illio n ......................................................... ........ 7 With Deposits of $50 Million and o v e r ............................................................................ 8 Notes to Pages 4-8 ......................................................................................................................... ........ 9 Second District Member Banks Earnings and Condition Reports Summary During 1966 net current operating earnings of Second District member banks registered their largest gain of the 1960’s, rising 16.3 per cent above 1965 to almost $1.1 billion. The major factor contributing to this rise was a $551.1 mil lion increase in earnings on loans, which reflected both rising loan portfolios and higher loan rates. The total revenue gain of $650.3 million more than offset a sharp increase in costs of $500 million, about three fifths of which represented rising interest costs. The improvement in the net current operating earnings of New York City banks* was particularly notable, rising 17.3 per cent in 1966, compared with 2 .2 per cent in 1965. Mem- ber banks outside the City showed gains in net earnings of 13.3 per cent, compared with the 6.0 per cent gain recorded in 1965. Operating revenues All revenue categories showed advances except earnings on U. S. Government securities, which declined by $6 .3 mil lion. Earnings on U. S. Government securities of Second District member banks have been contracting steadily since 1962, as holdings of such securities were reduced in order to accommodate the rising demands for credit from the private sector of the economy. During 1966, for example, the loan portfolios of Second District banks increased by more than * This and all other references to “ New York City banks” are to member banks that are classified reserve city banks. In prior years “ New York City banks” referred to member banks that had been classified central reserve city banks before July 28, 1962, when that classification was abolished. 1 $4 billion and the effective rate of return on loans reached a high of 6.46 per cent. Earnings on loans for the 399 mem ber banks in the District advanced 23.9 per cent in 1966; they had risen 17.3 per cent a year earlier. The rise in loan earnings represented nearly 85 per cent of the total gain in current operating revenue achieved during the year. Large gains were also recorded in trust department earnings and in the “ other operating revenue” category— 13.4 per cent and 29.3 per cent, respectively. Operating expenses All operating expense categories, totaling $3.0 billion, showed increases for the year. The largest increase, $305.9 million, was in interest costs. Wages, salaries, and fringebenefit expenses showed a substantial increase of $80.3 mil lion, nearly 1 0 per cent over 1965. The rising cost of deposits was strongly evidenced in the operating results of New York City banks, in which interest payments rose by $241.0 million, an increase of about one third in 1 2 months. Since 1964, deposit-interest costs of New York City banks have almost doubled. The rising trend of interest costs in these years reflected generally tightening credit conditions through 1965 and most of 1966. In this regard, the attractiveness of high yields on open market instruments other than time certificates of deposit, 2 such as Treasury bills, limited the growth of time and savings accounts during 1966. For all Second District banks such deposits grew by only 0.9 per cent from year-end 1965 to year-end 1966. Nei income, faxes, dividends, and retained earnings In spite of substantial transfers to valuation reserves ($67.3 million) and charge-offs on securities ($160.6 million) and on loans ($ 8 8 .0 m illion), District member banks gained $45.3 million, or 6.4 per cent, in net income before taxes. New York City banks’ net income before taxes increased 7.2 per cent although these banks incurred substantial security charge-offs as they reduced their securities portfolios to meet the strong loan demand of business customers during the year. Net income after taxes increased by $23.2 million, or 4.3 per cent, over 1965. This gain was about equal to that experi enced a year earlier. In contrast to net operating earnings and net income before taxes, net income after taxes of Dis trict member banks outside New York City showed relatively larger gains than those in the City (7.4 per cent versus 3.0 per cent). Dividend payments, which include interest on capital notes and debentures, increased by $27.1 million, more than the increase in net income, with a resulting decline in retained earnings. Income, Expenses, and Dividends of Second District Member Banks 1964-1966 (In millions of dollars) All Second District member banks New York City reserve city banks All other Second District member banks Item 1966 1965 1964 1966 1965 1964 1966 1965 1964 399 409 419 12 12 13 387 397 406 Current Operating Revenue: On United States Government securities........................ On other securities............................................................. On loans (including service charges and fees on loans).. Service charges on deposit accounts............................... Trust department earnings............................................... Other current operating revenue..................................... 304.6 336.1 2,855.4 116.3 258.1 166.9 310.9 305.6 2,304.3 109.5 227.7 129.1 350.8 257.6 1,964.5 102.5 211.4 127.8 175.9 212.0 1,996.6 48.2 220.7 139.3 178.9 203.6 1,558.2 46.7 194.2 106.0 214.4 170.9 1,299.4 43.8 181.6 106.5 128.7 124.1 858.8 68.1 37.4 27.6 132.0 102.0 746.1 62.8 33.5 23.1 136.4 86.7 665.1 58.7 29.8 21.3 Number of banks...................................................... Total current operating revenue................... 4,037.4 3,387.1 3,014.6 2,792.7 2,287.6 2,016.6 1,244.7 1,099.5 998.0 Current Operating Expenses: Salaries and wages—officers and employees.................... Pension, hospitalization, social security taxes, etc........ Interest on time and savings deposits............................. Interest and discount on borrowed money...................... Net occupancy expense of bank premises....................... Furniture and equipment— depreciation, rents, etc........ Other current operating expenses..................................... 752.8 144.5 1,379.5 112.3 176.7 67.7 329.0 687.4 129.6 1,073.6 70.7 161.0 60.6 279.6 656.4 119.5 826.5 50.1 151.4 56.3 258.1 484.5 101.8 951.7 99.7 118.1 37.2 195.0 438.2 92.1 710.7 63.4 106.8 33.5 156.7 420.9 84.6 514.6 45.8 101.9 31.9 145.5 268.3 42.7 427.8 12.6 58.6 30.5 134.0 249.2 37.5 362.9 7.3 54.2 27.1 122.9 235.5 34.9 311.9 4.3 49.5 24.4 112.6 Total current operating expenses.................. Net current operating earnings............................................. 2,962.5 1,074.9 2,462.5 924.6 2,118.3 896.3 1,988.0 804.7 1,601.4 686.2 1,345.2 671.4 974.5 270.2 861.1 238.4 773.1 224.9 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: Loan losses...................................................................... Securities losses............................................................... - 88.0 -1 6 0 .6 3.1 - 59.1 3.6 0.6 - 43.1 - 28.8 + 3.9 - 59.3 -1 4 3 .0 + 0.2 - 40.1 + 0.8 2.3 - 20.0 - 21.0 + 1.3 - 28.7 17.6 3.3 - 19.0 4.4 + 1.7 - 23.1 7.8 + 2.6 - 74.3 + 7.0 -1 7 2 .0 + 21.3 - 76.7 + 0.8 - 60.8 + 2.4 -1 5 4 .0 + 17.0 - 51.5 + 0.5 - 13.5 + 4.6 - 18.0 + 4.3 - 25.2 + 0.3 Net income before related taxes........................................... Taxes on net income.............................................................. 755.9 196.9 710.6 174.8 752.4 241.1 544.2 155.0 507.6 129.9 580.7 199.0 211.7 41.9 203.0 44.9 171.7 42.1 Net income...................................................... Dividends declared (including interest on debt capital). . . . Net income after dividends................................................... 559.0 342.1 216.9 535.8 315.0 220.8 511.3 278.0 233.3 389.2 259.4 129.8 377.7 240.3 137.4 381.7 212.9 168.8 169.8 82.7 87.1 158.1 74.7 83.4 129.6 65.1 64.5 Note: Data excludes those banks that have merged during the year for which the continuing institutions have not submitted consolidated year-end reports. 3 1966 Average Operating Ratios of All Member Banks in the Second District (All ratios in this table and in th e tables on the following pages are expressed in percentages and are arithm etical averages o f the ratios o f individual banks in each group, rather th a n ratios based on aggregate dollar figures.) BANK:S IN NEW YO RX CITY* Note: Balance-sheet figures used as a basis for the 1966 ratios are averages of amounts reported for December 31, 1965, April 5, 1966, June 30, 1966, September 20, 1966, and December 31, 1966. Ratios for 1965 have been recomputed by using a similar base. SUMMARY RATIOS Number of banks......... All Second District Banks Deposits under $100 million Deposits of J $100 million to $1 billion Deposits over $1 billion YOUR BANK 1966 1965 1966 1965 1966 1965 1966 1965 388 400 3 4 6 5 8 8 P ercen tag e of Total C ap ital Accounts 2. Net income before related taxes .......................................... 13.83 12.75 16.91 14.78 19.7S 17.39 16.14 14.80 10.50 10.28 9.02 10.73 16.85 14.15 10.3S 10.79 8.2S 7.74 5.02 7.67 12.13 9.66 7.19 7.87 3.2 3.19 3.45 3.31 4.03 4.20 5.31 5.04 P ercen tag e of Total Assets .5.21 4.93 5.46 4.77 5.33 4.66 4.45 3.98 4.11 3.92 4.20 3.61 3.91 3.39 3.17 2.76 1.10 1.01 1.26 1.16 1.41 1.26 1.28 1.21 .66 .61 .37 .61 .88 .73 .58 .65 15.20 16.24 8.97 10.23 9.22 11.85 6.91 8.46 8.78 8.23 3.11 7.15 11.17 7.61 6.88 8.21 66.65 66.02 71.62 67.89 68.82 66.59 71.81 68.18 SOURCES AND DISPOSITION O F EARNIN GS Percen tag e of Total C urrent O p e ra tin g Reven ue 9. Interest on U. S. Government o b lig a tio n s ......................... 10. Interest and dividends on other s e c u r it ie s ......................... 12. Service charges on deposit accounts .................................... 13. A ll other current operating r e v e n u e .................................... 5.95 6.17 3.77 3.71 3.31 3.85 1.50 1.75 3.42 3.35 12.54 11.03 7.48 10.11 12.91 13.41 100.00 100.00 100.00 100.00 100.00 100.00 b 100.00 100.00 5.81 7.08 7.93 8.68 22.45 20.69 25.40 17.95 19.92 3.61 3.33 3.79 3.35 3.61 32.86 32.37 24.50 32.38 29.54 15. Trust department earnings2 (part of item 13) ................. 2.67 2.75 16. Salaries and wages (officers and em ployees) ................... 22.03 23.13 23.14 17. Pension, hospitalization, and other b e n e fit s ....................... 2.89 2.84 4.03 18. Interest on time and savings d e p o s it s .................................. 36.29 35.06 33.09 19. N et occupancy expense o f bank p re m is e s ........................... 20. A ll other current operating expenses ................................. 4.19 4.47 4.08 3.97 4.69 6.18 4.16 4.54 13.59 14.06 12.48 12.56 12.86 13.32 13.41 11.94 b 78.99 79.56 76.83 75.45 73.95 73.19 71.25 69.55 21.01 20.44 23.17 24.55 26.05 26.81 28.75 30.46 23. N et recoveries and profits ( + ) or losses ( - ) 3 . . . . ......... - 3.37 - 2.32 - 6.49 - 3.31 - 2.72 - 2.22 24. Net increase ( - ) or decrease ( + ) in valuation reserves4. - 1.57 - 1.60 - 4.75 - 3.54 - .63 - 1.71 3.37 4.12 5.18 4.67 6.13 7.24 25. T axes on net income ................................................................ 12.69 12.41 6.74 13.04 16.58 15.63 26. Net in c o m e ............................................................................... - 7.52 - 2.53 - 2.64 - 5.63 21. T otal current operating e x p e n s e s ..................................... 5.71 6.08 12.88 16.22 RATES O F RETURN ON SECURITIES AND LO AN S Return on Securities 27. Interest on U. S. Government o b lig a tio n s ......................... 3.83 3.55 4.33 3.25 3.79 3.73 28. Interest and dividends on other securities ......................... 3.23 3.05 2.68 2.C6 3.82 3.13 29. N et recoveries & profits ( + ) or losses ( - ) on total securities5 - .24 - .06 - .77 - .21 - .33 + .06 3.81 3.52 3.61 3.22 - 1.49 - .09 Return on Loans 30. Earnings on loans1 ..................................................................... 6.27 6.60 5.60 6.46 6.20 5.62 31. N et losses ( - ) or recoveries ( + ) on lo a n s " ..................... - .18 - .17 - .34 - .14 - .24 - .23 5.12 5.71 - .17 - .16 DISTRIBUTION OF ASSETS P e rce n ta g e of Total A sse ts 32. U. S. Government obligations.......................................... 33. Other securities ................................................................ 18.07 20.50 14.27 14.56 12.80 15.14 7.91 9.38 14.17 13.25 3.92 8.13 14.91 11.37 8.55 10.11 34. Loans .................................................................................. 35. Cash assets ......................................................................... 36. Real estate assets .............................................................. 54.03 52.30 62.96 57.39 55.03 54.95 55.99 52.96 11.59 11.85 16.58 17.83 14.92 15.85 22.26 22.36 1.43 1.46 .65 .68 .80 .99 1.06 1.02 7.13 7.34 8.02 8.28 CAPITAL AND DEPOSIT RATIOS 37. Capital accounts to total assets........................................ 38. Capital accounts to total assets, less U. S. Government securities and cash assets .............................................. 8.21 8.41 7.60 7.89 12.29 13.07 11.03 11.86 9.95 10.69 11.45 12.07 39. Capital accounts to total deposits..................................... 9.25 9.51 8.52 8.82 8.00 8.26 9.87 10.02 40. Time and savings to total deposits ................................. 56.69 55.55 44.47 43.75 39.95 32.97 35.22 34.05 41. Interest on time and savings deposits ............................. 3.69 3.43 4.44 3.94 4.65 3.73 5.01 4.13 A V ER A G E BAN K IN G R O U P — In thou san ds of d o llars 181,199 164,901 80,042 78,304 299,588 293,402 5,773,652 5,429,338 17,791 16,182 6,984 6,957 26,654 26,926 608,509 * New Y ork City banks include only those banks that have their main office located in Manhattan. 1 See page 9 for the note to “ Earnings on loans” and other notes referred to in this table. 571,292 4 100.00 1966 Average Operating Ratios o f Second District Member Banks Outside New York City with Deposits under 85 Million Note: Balance-sheet figures used as a basis for the 1966 ratios are averages of amounts reported for December 31, 1965, April 5, 1966, June 30, 1966, September 20, 1966, and December 31, 1966. Ratios for 1965 have been recomputed by using a similar base. SUMMARY RATIOS Group average Loans to total assets, per cent—1966 1966 1965 Under 40 40-50 50-60 Over 60 63 81 9 16 22 16 11.19 Number of banks....... YOUR BANK Percentage o f Total Capital Accounts 1. Net current operating earnings ...................................... 2. Net income before related taxes .................................... 11.25 9.86 8.43 10.96 12.66 8.90 8.07 7.56 9.92 10.24 6.79 6.83 5.95 6.47 7.74 7.80 4.81 2.19 2.03 2.66 2.46 2.40 1.36 Percentage o f Total Assets 5. 6. 7. 8. Total current operating revenue........................................ Total current operating expenses..................................... Net current operating earnings........................................ Net income (after taxes) ............................................... 5.22 4.92 4.48 5.04 5.29 5.70 4.08 3.96 3.55 3.83 4.10 4.61 1.13 .96 .92 1.21 1.19 1.09 .68 .56 .71 .87 .73 .42 9. Interest on U. S. Government obligations...................... 10. Interest and dividends on other securities...................... 20.81 19.61 38.04 25.24 18.14 10.36 6.43 6.46 9.13 6.90 6.95 3.73 11. Earnings on loans1 ............................................................ 64.90 66.21 43.62 61.16 66.89 77.86 SOURCES AND DISPOSITION OF EARNINGS Percentage o f Total Current Operating Revenue 12. Service charges on deposit accounts ............................... 13. All other current operating revenue............................... 14. Total current operating revenue................................... 15. Trust department earnings'2 (part of item 13) ................. 5.68 5.83 7.35 5.12 5.84 5.10 2.17 1.88 1.81 1.57 2.17 2.96 100.00 100.00 100.00 100.00 100.00 100.00 b .83 c b c c 16. Salaries and wages (officers and employees) ................ 17. Pension, hospitalization, and other benefits.................... 24.14 25.69 24.70 24.79 23.20 2.41 2.38 1.56 2.54 2.79 2.25 18. 19. 20. 21. 22. 34.67 32.66 37.86 33.48 35.46 32.98 Interest on time and savings deposits ............................. Net occupancy expense of bank premises........................ All other current operating expenses ............................. Total current operating expenses................................. Net current operating earnings........................................ 23. Net recoveries and profits ( + ) or losses ( - ) 3 ............... 24. Net increase ( - ) or decrease ( + ) in valuation reserves4. 25. Taxes on net income ........................................................ 26. 24.46 3.44 4.58 2.99 3.27 3.45 3.87 13.76 15.60 12.56 12.51 12.65 17.20 80.78 78.43 80.90 79.70 76.59 77.53 21.57 19.09 20.30 23.40 22.47 19.21 - 3.30 - 2.52 - 1.59 - 1.07 - 3.01 - 1.03 - 1.09 - .42 - 1.04 - 1.00 - 6.90 - 1.40 3.96 4.24 2.69 4.67 4.43 3.34 13.27 11.24 15.62 16.62 14.01 7.59 4.44 3.79 4.69 4.58 4.30 4.38 3.30 3.39 3.17 2.96 3.60 Net incom e..................................................................... RATES OF RETURN O N SECURITIES AND LO A N S 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 - .17 - .05 - a .08 - .17 3.31 - .37 Return on Loans 30. Earnings on loans1 ............................................................ 31. Net losses ( - ) or recoveries ( + ) on loa n s'................ 6.69 - .24 6.54 - .20 6.63 - .08 6.68 - .11 6.67 - .21 6.77 - .51 DISTRIBUTION O F ASSETS P e rce n ta g e of Total A ssets 32. U. S. Government obligations.......................................... 33. Other securities ................................................................ 24.14 24.85 40.22 28.19 22.25 10.72 9.79 16.49 11.64 11.18 5.91 34. Loans .................................................................................. 35. Cash assets ......................................................................... 36. Real estate assets .............................................................. 51.25 50.56 30.18 46.14 53.10 65.69 12.21 12.73 11.83 12.56 11.83 12.59 1.23 1.64 .70 1.17 1.17 1.66 10.48 10.93 11.54 10.57 9.98 10.48 18.36 19.04 33.76 17.98 15.29 14.29 12.02 12.67 13.52 12.04 11.32 12.12 56.24 53.83 55.45 52.02 58.27 58.09 3.49 3.28 3.17 3.35 3.61 3.65 13.64 CAPITAL AND DEPOSIT RATIOS 37. Capital accounts to total assets ........................................ 38. Capital accounts to total assets, less U. S. Government securities and cash assets .............................................. 39. Capital accounts to total deposits.................................... 40. Time and savings to total deposits ................................. 41. Interest on time and savings deposits............................. A V ER A G E BANK IN G R O U P— In thou san ds o f d o llars Total deposits ............... . Capital accounts ........................... 3,140 3,184 3,581 2,740 3,149 3,279 369 394 487 316 344 392 1 See page 9 for the note to “ Earnings on loans” and other notes referred to in this table. 100.00 1 9 6 6 Average Operating Ratios of Second District Member Banks Outside New York City with Deposits of $5 Million to $ 2 0 Million Note: Balance-sheet figures used as a basis for the 1966 ratios are averages of amounts reported for December 31, 1965, April 5, 1966, June 30, 1966, September 20, 1966, and December 31, 1966. Ratios for 1965 have been recomputed by using a similar base. SUM M ARY R A TIO S Group average Number of banks....... Loans to total assets, per cent;—1966 1966 1965 Under 40 40-50 50-60 Over 60 149 153 13 38 52 46 13.39 12.55 12.45 12.35 13.64 14.22 9.86 9.76 10.36 8.73 10.75 9.65 7.85 7.10 8.61 7.17 8.56 7.41 2.82 2.86 3.07 2.75 2.94 2.66 YOUR BANK P e rc e n ta g e of To tal C a p ital Accounts 1. Net current operating earnings .............................. •........ 4. Dividends declared ............................................................. P e rc e n ta g e of Total A ssets 5. Total current operating revenue ............................................ 5.14 4.88 4.35 4.82 5.16 5.59 6. Total current operating expenses .......................................... 4.06 3.88 3.39 3.84 4.09 4.39 7. Net current operating earnings........................................... 8. Net income (after taxes) ....................................................... 1.08 1.00 .95 .99 1.07 1.20 .64 .57 .67 .58 .68 .63 17.46 18.13 37.79 22.01 15.29 10.40 8.55 8.01 14.43 11.27 8.39 4.81 65.88 65.31 39.90 57.41 68.17 77.62 5.43 SO U RCES AND DISPO SITIO N O F EARN IN G 5 P e rc e n ta g e of Total C u rre n t O p e ra tin g R even u e 9. Interest on U. S. Government obligations ...................... 10. Interest and dividends on other securities...................... 12. Service charges on deposit accounts ................................ 13. All other current operating revenue............................... 14. Total current operating revenue................................... 15. Trust department earnings2 (part of item 13) ................. 5.91 6.28 5.39 6.58 5.97 2.21 2.26 2.49 2.73 2.19 1.73 100.00 100.00 100.00 100.00 100.00 100.00 1.22 1.30 .78 1.80 .98 .78 16. Salaries and wages (officers and employees) ................. 21.52 22.27 19.82 22.08 21.89 21.12 17. Pension, hospitalization, and other benefits.................... 2.63 2.62 1.70 2.83 2.84 2.47 18. Interest on time and savings deposits .............................. 37.89 37.34 40.60 37.86 37.98 37.06 19. Net occupancy expense of bank premises........................ 3.97 3.96 3.67 4.06 3.86 4.09 20. All other current operating expenses ............................. 21. Total current operating expenses ................................. 22. Net current operating earnings......................................... 13.07 13.45 12.18 12.86 12.70 13.92 23. Net recoveries and profits ( + ) or losses ( - ) 3 ............... 24. Net increase ( - ) or decrease (-}-) in valuation reserves4. 79.07 79.65 77.96 79.70 79.27 78.65 • 20.93 20.35 22.04 20.30 20.73 21.35 - 3.07 - 3.67 - 2.99 - 2.43 - 2.34 - 3.74 - 2.55 - 2.32 - 1.86 - 1.39 - - 1.62 25. Taxes on net income ......................................................... 26. Net incom e...................................................................... 1.95 3.17 4.31 2.91 2.52 3.48 3.43 12.44 11.75 15.40 12.08 13.09 11.18 100.00 RATES O F RETURN O N SECURITIES AND LO A N S Return on Securities 27. Interest on U. S. Government obligations ...................... 4.51 3.86 4.67 4.65 4.37 4.51 28. Interest and dividends on other securities ...................... 29. Net recoveries & profits ( + ) or losses ( - )on total securities5 3.18 2.94 ' 3.50 3.16 3.13 3.15 .20 — .05 - - .12 - .30 - .19 - .15 R eturn on Lo an s 30. Earnings on loans1 ............................................................. 31. Net losses ( - ) or recoveries ( + ) on loa n s'.................. 6.39 - .15 .17 6.12 6.03 6.24 - - .10 - .12 6.66 6.44 - .16 - .19 DISTRIBUTION O F AS5ETS P e rc e n ta g e o f Total A sse ts 32. U. S. Government obligations .......................................... 33. Other securities ................................................................. 19.95 22.42 38.24 24.29 18.35 13.79 12.99 19.37 17.67 14.10 8.66 34. Loans ................................................................................... 53.25 51.54 28.88 45.15 54.66 65.25 35. Cash assets .......................................................................... 36. Real estate assets ............................................................... 10.98 11.17 12.06 11.08 10.99 10.60 1.54 1.48 1.06 1.29 1.49 1.93 13.01 CAPITA L AND DEPO SIT RATIO S 37. Capital accounts to total assets......................................... 8.32 8.21 7.98 8.20 8.13 8.72 38. Capital accounts to total assets, less U. S. Government securities and cash assets .............................................. 12.45 12.79 18.35 12.83 11.57 11.46 39. Capital accounts to total deposits..................................... 9.30 9.20 8.83 9.09 9.06 9.88 40. Time and savings to total deposits ................................. 41. Interest on time and savings deposits .............................. 59.39 59.06 55.98 57.50 59.14 62.19 3.60 3.39 3.46 3.48 3.65 3.70 A V E R A G E BAN K IN G R O U P — In th o u san d s o f d o llars 10,783 11,133 10,195 11,402 11,241 9,920 976 984 903 1,005 984 964 1 See page 9 for the note to “ Earnings on loans” and other notes referred to in this table. 6 1 9 6 6 Average Operating Ratios of Second District Member Banks Outside New York City with Deposits of $ 2 0 Million to $ 5 0 Million Note: Group average Balance-sheet figures used as a basis for the 1966 ratios are averages of amounts reported for December 31, 1965, April 5, 1966, June 30, 1966, September 20, 1966, and December 31,1966. Ratios for 1965 have been recomputed by using a similar base. SUMMARY RATIOS Number of banks......... Loans to total assets, per cent—>1966 1966 1965 Under 40 40-50 50-60 Over 60 77 70 4 17 34 22 YOUR BANK Percentage of Total Capital Accounts 1. Net current operating earnings ..................................... 14.04 13.17 13.55 13.74 13.81 14.70 10.44 10.63 10.52 11.05 10.29 10.17 8.34 8.28 9.59 8.80 8.48 7.56 3.19 3.28 3.57 3.36 2.97 3.33 Percentage of Total Assets 5.27 5.05 4.45 4.90 5.45 5.44 4.26 4.08 3.50 3.90 4.46 4.38 1.01 .97 .95 .99 .99 1.06 .60 .61 .66 .64 .61 .55 9.52 SOURCES AMD DISPOSITION OF EARNINGS Percentage of Total Current Operating Revenue 9. Interest on U. S. Government obligations...................... 13.13 14.83 22.76 20.02 10.89 10. Interest and dividends on other securities...................... 9.78 9.06 15.70 11.00 10.48 6.69 11. Earnings on loans1 ............................................................. 12. Service charges on deposit accounts ............................... 66.92 65.75 51.04 57.70 68.09 75.12 6.86 6.95 8.53 6.68 7.55 5.64 13.. All other current operating revenue............................... 3.31 3.41 1.98 4.61 3.00 3.04 Total current operating revenue................................... 100.00 100.00 100.00 100.00 100.00 100.00 15. Trust department earningsa (part of item 1 3 ) ................. 14. 2.04 2.19 .29 4.11 1.75 1.25 16. Salaries and wages (officers and employees) ................. 22.15 22.78 24.32 22.33 22.53 21.01 17. Pension, hospitalization, and other benefits.................... 3.05 2.98 3.19 2.99 3.11 2.98 18. Interest on time and savings deposits.............................. 37.11 36.32 32.01 37.98 36.65 38.07 19. Net occupancy expense of bank premises........................ 4.48 4.71 4.89 4.18 4.83 4.11 20. All other current operating expenses ............................. 14.05 13.96 14.07 12.27 14.62 14.54 21. 80.72 Total current operating expenses ................................. 80.84 80.75 78.47 79.76 81.73 22. Net current operating earnings......................................... 19.16 19.25 21.53 20.24 18.27 19.28 23. Net recoveries and profits ( + ) or losses ( - ) * ............... 24. Net increase ( - ) or decrease ( + ) in valuation reserves*. - 3.03 - 2.14 - 4.36 - 2.42 - 2.97 - 3.34 - 1.76 - 1.49 - 1.09 - 1.42 - 1.51 - 2.52 25. Taxes on net incom e......................................................... 2.86 3.40 1.47 3.36 2.40 3.43 11.52 12.22 14.61 13.04 11.38 10.00 4.24 100.00 RATES OF RETURN ON SECURITIES AND LOANS Return on Securities 27. Interest on U. S. Government obligations...................... 4.16 3.83 3.84 4.15 4.14 28. Interest and dividends on other securities...................... 29. Net recoveries & profits(-f-)or losses(-)on total securities5 3.22 2.96 3.37 2.98 3.23 - .22 - .07 - .15 - .21 - .13 3.38 - .38 Return on Loans 6.49 31. Net losses ( - ) or recoveries ( + ) on loans*................... - .14 6.35 - .14 6.04 - .03 6.31 - .08 6.69 - .20 6.40 - .12 DISTRIBUTION OF ASSETS Percentage of Total Assets 16.40 19.25 26.29 23.16 14.35 12.54 15.76 15.19 20.72 17.88 17.31 10.80 34. Loans .................................................................................. 54.58 52.59 37.42 44.68 55.55 63.86 35. Cash assets ......................................................................... 11.08 10.91 13.95 12.39 10.54 10.39 1.60 1.54 1.00 1.34 1.65 1.83 CAPITAL AND DEPOSIT RATIOS 7.33 7.45 7.32 7.38 7.27 7.38 38. Capital accounts to total assets, less U. S. Government securities and cash assets .............................................. 10.20 10.78 12.36 11.48 9.72 9.55 39. Capital accounts to total deposits..................................... 8.17 8.28 8.23 8.18 8.10 8.27 40. Time and savings to total deposits ................................. 58.05 57.33 50.18 54.51 59.39 60.13 41. Interest on time and savings deposits............................. 3.72 3.51 8.08 3.74 3.73 3.81 Total deposits .................................................................... 29,856 30,237 31,806 26,040 29,695 32,698 Capital accounts ................................................................. 2,465 2,527 2,741 2,112 2,404 2,780 AVERAGE BANK IN GROUP— In thousands of dollars 1 See page 9 for the note to “Earnings on loans” and other notes referred to in this table. 7 1 9 6 6 Average Operating Ratios of Second District Member Banks Outside New York Gity with Deposits of $ 5 0 Million and Over Note: Balance-sheet figures used as a basis for the 1966 ratios are averages of amounts reported for December 81, 1965, April 5, 1S66, June 30, 1966, September 20, 1966, and December 31, 1966. Ratios for 1965 have been recomputed by using a similar base. SUMMARY RATIOS Group average 1966 1965 82 Number of banks....... Loans to total assets, per cent—1966 Under 40 40-50 50-60 Over 60 2 8 45 27 79 YOUR BANK Percentage of Total Capital Accounts 15.64 15.87 15.96 15.08 12.53 13.01 12.66 12.32 11.49 10.11 4.77 10.06 9.77 4.71 4.85 4.77 5.27 Percentage of Total Assets 5.34 5.05 4.21 3.97 4.50 1.13 1.08 1.08 .73 .72 .70 10.20 11.73 7.97 10.29 9.80 7.59 68.33 67.09 73.02 6.07 6.33 5.12 5.05 5.58 SOURCES AND DISPOSITION OF EARNINGS Percentage of Total Current O perating Revenue 12. Service charges on deposit accounts ............................... 100.00 100.00 IS. Trust department earnings1 (part of item 1 3 ) ................. 3.28 3.23 16. Salaries and wages (officers and employees) ................. 21.67 22.72 17. Pension, hospitalization, and other benefits.................... 3.48 3.42 18. Interest on time and savings deposits.............................. 34.65 33.33 19. Net occupancy expense of bank premises........................ 4.85 5.03 20. All other current operating expenses .............................. 14.11 14.06 78.75 78.56 22. Net current operating earnings......................................... 21.25 21.44 23. Net recoveries and profits ( + ) or losses ( - ) * ............... - 3.96 - 1.99 24. Net increase ( - ) or decrease ( + ) in valuation reserves4. - 25. Taxes on net in com e......................................................... 26. Net incom e...................................................................... . 5.58 Oc o —« o_ . pp p ... m GQ 5.84 inn nn 100.00 4.01 22.90 3.41 H 34.74 5.16 W 13.24 14.54 PQ ri o o 80.75 19.25 - 4.33 - 4.24 - 3.27 + - - .80 - 1.19 3.26 3.83 13.72 14.43 16.98 .20 .33 .35 RATES OF RETURN ON SECURITIES AND LOANS Return on Securities 27. Interest on U. S. Government obligations...................... 4.19 3 87 4.13 4.28 4.06 28. Interest and dividends on other securities...................... 3.19 2.99 3.06 3.22 3.18 29. Net recoveries & profits(-}-)or losses(-)on total securities' - .25 - .10 - .27 - .28 - .19 Return on Loans 30. Earnings on loans* ............................................................. 31. Net losses ( - ) or recoveries ( + ) on loans*................... 6.48 - .20 6.20 - .15 6.49 - .23 6 48 - .21 6.48 - .20 DISTRIBUTION OF ASSETS Percentage of Total Assets 32. U. S. Government obligations........................................... 33. Other securities ................................................................. 13.06 15.21 17.03 16.91 16.26 23.46 13.39 34. Loans ................................................................................... 56.49 54.80 46.33 55.32 35. Cash assets .......................................................................... 36. Real estate assets ............................................................... 11.24 11.50 11.15 11.50 1.34 1.29 1.15 1.37 7.24 7.17 7.33 7.27 10.91 10.72 CAPITAL AND DEPOSIT RATIOS 37. Capital accounts to total assets......................................... 7.16 38. Capital accounts to total assets, less U. S. Government securities and cash assets .............................................. 9.61 9.83 10.25 9.71 39. Capital accounts to total deposits..................................... 8.12 8.03 8.16 8.18 40. Time and savings to total deposits ................................. 54.61 53.12 48.97 54.40 41. Interest on time and savings deposits .............................. 3.76 3.50 3.93 3.71 3.81 Total deposits .................................................................... 219,209 210,982 158,459 259,227 180,429 Capital accounts ................................................................. 18,235 17,474 13,492 21,481 15,043 AVERAGE BANK IN GROUP— In thousands of dollars 1 See page 9 for the note to “Earnings on loans” and other notes referred to in this table. 100.00 N O T E S T O P A G E S 4-8 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. c No banks in this group have trust department earnings. Ratios do not add exactly in every case to their respective totals because of rounding. Year-to-year com parisons by size groups may be affected by mergers and shifts of banks from one size group to another. N o te : 9