EARNINGS, EXPENSES, AND DIVIDENDS OF INSURED BANKS

Table 111. Earnings, expenses, and dividends of insured commercial banks, 1942-1950

Table 112. Ratios of earnings, expenses, and dividends of insured commercial banks, 1942-1950

Table 113. Earnings, expenses, and dividends of insured commercial banks, 1950

By class of bank

Table 114. Ratios of earnings, expenses, and dividends of insured commercial banks, 1950
By class of bank

Table 115. Earnings, expenses, and dividends of insured commercial banks operating throughout 1950

Banks grouped according to amount of deposits

Table 116. Ratios of earnings, expenses, and dividends of insured commercial banks operating throughout 1950

Banks grouped according to amount of deposits

Table 117. Earnings, expenses, and dividends of insured commercial banks, by State, 1950
Table 118. Earnings, expenses, and dividends of insured mutual savings banks, 1942-1950

Table 119. Ratios of earnings, expenses, and dividends of insured mutual savings banks, 1942-1950

Reports of earnings, expenses, and dividends are submitted to the
Federal supervisory agencies on either a cash or an accrual basis.

Earnings data are included for all insured banks operating at the
end of the respective years, unless indicated otherwise. In addition,
appropriate adjustments have been made for banks in operation during
part of the year but not at the end of the year.

On December 8, 1947, the Commissioner of Internal Revenue issued
Comm. Mimeograph Coll. No. 6209 entitled, "Reserve Method of
Accounting for Bad Debts in the Case of Banks." (See pp. 82-84 in
the 1947 Annual Report). Under this ruling, banks are permitted to
accumulate limited amounts of tax-free reserves for bad debt losses on
loans. As a result, since 1947 unusually large amounts were set aside
from income to valuation reserves, and net profits were decreased
accordingly. The uniform report of earnings and dividends for the
calendar year 1948 was revised to show separately for the first time
charge-offs and transfers to valuation reserves as well as recoveries
and transfers from valuation reserves. Also, the actual recoveries and
losses that are credited and charged to valuation reserves were reported
as memoranda items.

Averages of assets and liabilities shown in Tables 111-114 and 117

119 are based upon figures at the beginning, middle, and end of each
year, as reported by banks operating on those dates. Consequently, the
asset and liability averages are not strictly comparable with the earnings
data, but the differences are not large enough to affect the totals sig-
nificantly. Some further incomparability is also introduced into the
data by class of bank by shifts between those classes during the year.

Assets and liabilities shown in Table 115, and utilized for computation
of ratios shown in Table 116, are for the identical banks to which the
earnings data pertain. For national banks and State banks members
of the Federal Reserve System, assets and liabilities are as of December
30, 1950, and for other banks, are averages of beginning, middle, and
end of the year.

Sources of data

National banks, and State banks not members of the Federal Reserve
System in the District of Columbia: Office of the Comptroller of the
Currency.

State banks members of the Federal Reserve System: Board of
Governors of the Federal Reserve System.

Other insured banks: Federal Deposit Insurance Corporation.

1944

1945

1946

1947

1948

1949

1950

179,408

189,559

225,425

Interest and discount on loans.

1,263,788

1,577,633

Service charges and fees on bank's loans..

Service charges on deposit accounts.

Other service charges, commissions, fees, and

collection and exchange charges.

55,148

67,533

78,485

90,617

97,995

97,264

97,456

95,420

104,602

Trust department......

100,652

104,710

112,486

120,317

140,340

144,734

156,678

160,430

180,674

Other current operating earnings.

123,484

124,676

128,278

134,782

153,589

166,794

178,016

182,030

184,445

Note: Due to rounding, earnings data of State banks for 1949 and 1950 may not add precisely to the indicated totals.

1 Not available.

Asset and liability items are averages of figures reported at beginning, middle, and end of year.

Back figures: See the Annual Report for 1941, pp. 158-159.