Table 107. ASSETS AND LIABILITIES OF OPERATING INSURED BANKS, DECEMBER 31, 1951, JUNE 30, 1951, AND DECEMBER 30, 1950-Continued

Back figures: See the Annual Report for 1950, pp. 236-239, and earlier reports.

EXAMINERS' EVALUATION OF INSURED COMMERCIAL BANKS

Banks grouped according to amount of deposits

The tables in this section present a summary of the evaluation of
bank assets and liabilities made by examiners of the Federal supervisory
agencies. Since bank examinations are made at various dates during
the year, these tables differ from those in the previous sections, which
are based on reports submitted by the banks for specified dates. These
tables have been prepared from reports of examination available during
the year and do not cover precisely the banks examined in that year.
The figures for 1951 include 13,390 insured commercial banks operating
at the close of the year and 23 banks which ceased operations or were
taken over by others during the year. Figures for 26 insured banks
operating at the close of the year were not included in the tabulations:
6 because they were engaged primarily in trust business, and 20 because
reports of examination were, for various reasons, not available for
tabulation. For 383 banks the figures are derived from reports of
examination made in the last six months of 1950.

Evaluation of assets

Book value of assets is the net value, after deduction of valuation
and premium reserves, at which the assets are carried on the books
of the banks at the time of examination.

Assets not on the books represent the determinable sound value
of assets which are not included in the bank's statement of assets or
are carried at nominal values.

Examiners' deductions from total assets represent the difference
between the appraised value and book value of assets shown on the
books.

Examiners' deductions (net) from total assets in Table 110 is

the difference between examiners' deductions and the determinable sound values of assets not shown on the books.

Appraised value of total assets represents the value of all assets as
determined by examiners and is segregated into two groups: (1) not
criticized, which represents the appraised value of assets regarded as
suitable for bank investment; and (2) substandard, which represents the
appraised value of assets believed by the examiners to involve a sub-
stantial degree of risk, or to be otherwise undesirable for bank invest-
ment. For a description of the procedure followed in examiners' evalua-
tion of assets, see the following Annual Reports of the Corporation; 1938,
pages 61-78; and 1949, pages 10-11. Appraised value of other securities
and of loans and discounts does not include assets not shown on the
books which are included in the appraised value of fixed and mis-
cellaneous assets.

Evaluation of liabilities and capital

Adjusted liabilities include all liabilities shown on the books and
such others as have been determined by the examiners.

Book value of capital accounts refers to the net worth or equity
of the stockholders (including holders of capital notes and debentures)
shown on the books at the time of examination.

Adjusted capital accounts equal book value of total capital ac-
counts plus the value of assets not shown on the books, less examiners'
deductions from total assets, and less liabilities not shown on the books.
The term "adjusted capital accounts" corresponds to the term "net
sound capital" used in the Annual Reports of the Corporation for the
years 1939-1943.

Table 108. EXAMINERS' APPRAISAL OF ASSETS, LIABILITIES, AND CAPITAL OF INSURED COMMERCIAL BANKS EXAMINED IN 1942-1951