Table 113. Ratios of earnings, expenses, and dividends of insured commercial banks in the United States (continental U. S. and other areas), 1952

By class of bank

Table 114. Earnings, expenses, and dividends of insured commercial banks operating throughout 1952 in the United States (continental U. S. and other areas)

Banks grouped according to amount of deposits

Table 115. Ratios of earnings, expenses, and dividends of insured commercial banks operating throughout 1952 in the United States (continental U. S. and other areas)

Commercial banks

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. Data for 9 insured
branches in Puerto Rico of insured national banks in New York are
not available.

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 com-
mercial banks was revised in 1948 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 110-113 and 116
are based upon figures at the beginning, middle, and end of each year,
as reported by banks operating on those dates, adjusted to exclude
asset and liability figures for insured branches in Puerto Rico of in-
sured national banks in New York. Consequently, the asset and lia-

bility averages are not strictly comparable with the earnings data,
but the differences are not large enough to affect the totals significantly.
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 114, and utilized for computation
of ratios shown in Table 115, 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
31, 1952, and for other banks, are averages of beginning, middle, and
end of the year.

Mutual savings banks

A uniform report of income, expenses, and dividends for mutual
savings banks was adopted by the Corporation for the calendar year
1951. Summaries of these reports for 1952 are given in Tables 117 and
118. Historical data are omitted because of lack of comparability.

The new form attempts to present operations on a basis accurately
reflecting actual income and profit and loss, and provides more detailed
information regarding losses and valuation adjustments. For a dis-
cussion of the history and principles of this uniform report see pp.
50-52 in Part Two of the 1951 Annual Report.

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.

Note: Due to rounding, earnings data of State banks for 1949 through 1952 may not add precisely to the indicated totals. 1 Not available.

Revised.

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

Back figures, 1934-1943: See the following Annual Reports: 1950, pp. 250-251, and 1941, pp. 158-159.