U4 
BANKING STANDARDS 
TABLE 83 
COMPARATIVE PERCENTAGE AMOUNTS OF DEVIATION FROM DISTRICT 
LEVELS AND NET YEAR-TO-YEAR CHANGE IN RATIOS OF 
NET EARNINGS TO EARNING ASSETS 
DIFFERENCES FROM DISTRICT AVERAGES, 1010-102 
Sign 
Number of 
Cases 
iy 
Percentage | Average 
Groups Percentage 
Average 
0.31 
5.00 and over 
".50 to 15.00 
Under 7.<o 
20.05 
10.86 
2.6¢ 
Under 7.50 4.69 
7.50 to 15.00 9.79 
‘5.00 and over 20.45 
Average 
8.072 
NET PERCENTAGE 
CHANGE FROM 
YEAR TO YEAR 
2.02 
—II JI 
- 4.13 
—- 2.02 
+ 5.17 
+ 2.22 
+ 5.28 
4. 
A 
to type, the type being in each case the level common to the re- 
spective districts. 
Earlier discussion showed that gross earnings and operating ex- 
penses also revert to type. In these cases, however, the reversion 
is greater than that for net earnings. But this is to be expected 
in view of the fact that net earnings, as residuals, are dependent 
not only upon the amounts of gross earnings and of operating 
expenses, but also upon the relations between them. 
While inverse correlation obtains between the positions of net 
earnings ratios in a given year and the directions of change from 
year to year, direct correlation occurs between the net percentage 
amounts of such change and the percentage amounts of the dis- 
persion. That is, as shown in the detail in Table 85, the greater 
the distance, measured on a percentage scale, which ratios of 
net earnings are above or below the levels of the districts to which 
they belong, the larger are the net percentage changes from year 
to year. There is, as the table shows, but one exception to this 
rule. Regression to type is indicated, accordingly, not only by 
the direction but also by the amount of change. 
The yearly net earnings ratios in the various districts may be 
compared with their own district levels, and these levels may be 
compared with one another and with the levels for all districts