The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
C . Federal Reserve Bank of Atlanta 1984 Annual Report “We acknowledge our public i responsibilities and our national t part of the country‘s central banking system.” Table of Contents From the Boardroom.. .. .. . . 3 Economic Expansion Continues in the Southeast.. . . . . . . . . . . .5 Atlanta Fed Activities: A Commitment to Efficiency, Integrity, and Excellence . . . . 9 Corporate Citizenship: The Challenge of Getting Involved.. . . . . Directors and Senior Officers . . . . .15 . . . . . . .20 Branch Directors.. . . . . . . . . .22 , ,, ,, Statement of Condition, Statement of Earnings. . , , .24 . . . . .25 Summary of Operations . . . .26 reasonable in the exercise of our authority. We will regard quality and responsive service as our most important business priorities and in carrying out our responsibilities we will regard people as more important than process. Our business decisions will be weighed against a comprehensive business plan that outlines our organizational goals and priorities, and these decisions always will be made with careful regard for the longrun health of the Bank and the constituencies we serve. We acknowledge our public interest responsibilities and our national trust as part of the country's central banking system. We intend to provide exemplary service to our government, the business community, and the general public. Management Philosophy Since effective teamwork goals, the Bank's organizational structure and overall management style will reflect an open and participative approach. Bank managers will be peopleoriented, visible, and accessible at all levels. Employees will be kept informed regarding plans, decisions, events and problems affecting them, and their suggestions will be actively encouraged. Information Center Federal Reserve Bankof Atlanta P. 0.Box 1731 Atlanta, Georgia 30301-1 731 -a Employee Relations We will strive to attra taff of individuals who are highly effective in carrying out their responsibilities, who are committed to Bank goals, who have the highest standards of personal integrity, and who genuinely enjoy their careers at the Federal Reserve. The relationship between Bank management and other staff members will be characterized by mutual respect, fairness, and equal opportunity and treatment for every individual. Pride in Work Excellence is o Reserve Bank take pride in their professionalism and in providing the highest quality of service possible to the clients we serve. The Bank encourages continual innovation, creativity, and involvement to improve productivity and the quality of services we offer. Staff members are recognized and rewarded €or their contributions to our success. For additional copies write to: ", ~ ., . , . Community Involvement We take seriously the responsibilities orate citizenship and actively encourage and support the civic and community involvement of our staff. (404)521-8788 r 2 - L From the Boardroom With a new management team in - Federal place at the beginning of the Reserve Bank of Atlanta adopted , 1984, a corporate philosophy statement that identifies and articulates the Bank’s mission and goals. That document corn mits us to be prudent and foresighted in managing Bank resources and fair and reasonable in exercising our authority as a unit of the nation’s central bank. As a key section of the statement -> summarizes: “We acknowledge our public interest responsibilities and our national - trust as part of the country‘s central - banking system. We intend to provide exemplary service to our government, the business community, and the general * public.” 4 In addition, we developed a strategic business plan for 1985-1987 to guide - the implementation of our primary responsibilities with careful attention to the longrun health of the Bank and the constituencies it serves. Perhaps the most visible of these responsibilities relates to helping fomw C late national monetary policy. In this regard, we have focused more intently on contributing to national goals through - quality economic research Atlanta Fed President Robert P. Forrestal participates . on the policymaking Federal Open Market -- Committee (FOMC) with the seven gover nom of the Federal Reserve System and the 11 other Federal Reserve Bank * presidents. He became a voting member .of the FOMC in March 1985, as our Banks president does every third year. - A second responsibility spelled out in the business plan involves our activities relating to supervision and regulation. We commit ourselves to providing + highly professional supervision of financial institutions, emphasizing minimal interference consistent with safety and soundness, while standing ready as a * lender of last resort to support super ~ ’ Our third responsibility, which actually requires most of our resources, is providing financial and central banking services to the public, depository institutions, the U.S.government, and the business community. We are dedicated to offering superior service in a way that T ’ Atlanta Fed Chairman JohnH. Weitnauer, Jr., left, and Pn it Robert P. Forrestal, right, in a discussionwith Federal Reserve Board Chairman Paul A. Volcker during a meeting at the New Orleans Branch. promotes .the efficiency and integrity of the payments mechanism. Our three corporate missions are di4 tinct, yet we see them as being comple mentary and mutually supportive. By achieving our strategic goals, we can help encourage a strong, low-inflation economic environment, and contribute 3 to a stable, efficient financial services industry. We are pleased with our accomplishments of last year, and this annual report details the operations and achieve ments of our various departments. This annual report also will take a close look at the economy of the Sixth Federal Reserve District and how it relates to that of the nation. The District includes Alabama, Florida, and Georgia, as well as parts of Louisiana Mississippi, and Tennessee. Despite lingering areas human relations through a comprehek sive program to improve management‘s accessibility and responsiveness to c employee concerns. Our efforts include a broadened District-wide program to enhance employee relations and an intensified dedication to the Bank’s affirmative action program. We are committed to identifying individualswith promise and to helping them progress in their careers. We also intend to sharpen the Bank’s r focus on community affairs. This report details programs that our offices have undertaken to improve their respective communities, particularly in the area of education. And it will spotlight some of the employees who have given their own time to help make their corn munities better places to live. The Atlanta Fed will seek to improve ties with congressional, business, and community leadm in the District through such initiatives as the distinguished lecturer series that has brought leading speakers to address our directors and guests. Prominent economists, govern ment officials, and bankers spoke d u r ing the Atlanta series last year. In addition, our directors heard Federal Reserve Board Chairman Paul Volcker 4 address a joint meeting of our boards in New Orleans. We want to thank our directors for their valuable counsel during the year, with a special thanks to Guy W. Botts, former board chairman of Barnett Banks , of Florida. Mr. Botts stepped down from our head office board at yearend after completing six years on that body and three previously with the Jacksok ville Branch board. We want to welcome E.B. Robinson, Jr., chairman and chief L executive officer of Deposit Guaranty 4 National Bank in Jackson, Mississippi, who recently joined our head office board. c * And finally, we would like to say “thank you” to the 2,000 employees whose dedication and hard work helped us meet the challenges of a demanding + year in 1984. * ~ @ ~ ~ I Thisbrass plaquemarksthetable,stlllusedforAtlantaFedmeetings,aroundwhichBanlcdirectorsfirstmeton October 19, 1914. of weakness and the inmasing concern over the vast federal budget deficit, the regional economy and the national econ omy so important to its health remain generally strong. As you’ll see, we consider the outlook encouraging for the months ahead. We’ll discuss the positive but some times traumatic evolution of the finam cia1 services industry. With depository institutions still feeling the pressures of a changing market, our role as a super visor and regulator proved .to be an active one during the year just past; it promises to be no less important in 1985. Looking ahead, we are aware of our obligations not only to our constituents but to our employees as well. We plan to build upon past accomplishments in ‘ + 7 7 4 Economic Expansion Continues ' in the Southeast . The southeastern economv turned in a good performance in 1984, h t h consicier able employment and output expansion \ and little upward pressure on prices. After a slowdown in the third quarter, the area's economy regained momentum toward yearend We look for continued growth in 1985 at a moderate pace. - Naturally, the outlook for the region's economic health depends on develop ments in national and international markets in which many of the region's goods and services are sold While weak energy prices and the strength of the dollar in foreign exchange markets i are likely to dampen activity in some *- sectors, vigor in others-such as autorelated manufacturing, services indue tries, and defense contracting-should be more than sufficient to maintain growth for the regional economy in coming months. And some parts of the region, continuing to enjoy significant business and population inmigration, + again are likely to grow faster than the nation as a whole. Thanks partly to the manufacturing expansion and growth in servicerelated employment, the region's total employment advanced at a rate averaging nearly 4 percent during 1984 compared with only 2 percent the previous year. The number of jobs increased by more than a half million, 200,000 more than were ' added during 1983. Although job growth continued through most of last year, the rate dropped in the fourth quarter, .L reflecting the more moderate expansion in the second half. The region's unemployment similarly ,mirrored the yeaI's generally positive developments. The rate dropped to 8 percent in February 1984, after averag ing nearly 10 percent during 1983, and remained close to the 8 percent level in the months that followed. Average . I 7 (r ~ + - . I 4 A ., unemdovment rates for Georgia and Flo& declined well below the national and regional levels, but in Mississippi and Alabama doubledigit jobless rates persisted throughout 1984. The problems in those two states, plus weak growth in Louisiana, could make it difficult for the region to reduce its joblessness significantly this year. In fact, the region's anticipated economic strength in 1985 is likely to continue varying sharply among indk Unemployment Rate vidual states and sectors. The construction sector is Percent expected to continue driving the Southeast's economy. Folm Sixth District mUnited States 11 lowing a jump in the second quarter of 1984, interest rates 10 declined substantially through the rest of the year and resk dential housing sales accelerated. Even though much of the pent-up demand for housing 7 was satisfied by late 1984, the construction industry expects 8 J.........J activity to remain reasonably 1904 1983 stronn durinn 1985. In multlS o u m Bureau of Labor Statistics. f a m G housgg, simply maintaining last y e d s pace-the strongest since 1973-would constitute an impressive performance. Nonresidential construction also grew energetically in 1984. In this sector, too, activity reached a level not exceeded since the early 1970s. Accelerated depre ciation writeoffs and other tax laws favorable to investment contributed to this burst of activity. Some geographic markets have been saturated with new buildings and, in fact, may now be overbuilt. Although growth is unlikely to maintain its current pace through 1985, nonresidential construction may still achieve impressive levels if e c o nomic expansion proceeds as expected Consumer spending typically encoun- I :I , r . Y I 5 Y,.. J L".." , " Y V ' . Y I) ters a lull after a period of rapid growth, such as the nation enjoyed through 1983 and into early 1984. Therefore, it isn't surprising that the nation's economy slowed last summer when residential housing sales and construction tapered off. As the summer progressed, consumer demand weakened for a broad array of products including furniture, appliances, and other household f u r nishings. for those 11 months, while Louisiana lagged slightly behind The national pause in consumer spending proved to be only a temporary lull during another year of expansion, with a strong fourth quarter that provided a m m h g start for 1985.With that renewed momentum, the Southeast's outlook for the remainder of 1985 is encouraging. The flow of businesses and residents into the region should heighten demand over 70 financial institutions' ATMs. Retail sales in the Southeast held up better than in the country as a whole at that time. The Sixth District states continued to outperform the national aver age, with Florida and Georgia leading the way. In the first 11 months of the year, for instance, Florida posted a 13.3 percent gain over the same months of 1983, compared with a 10.9 percent gain for the nation as a whole. Tennessee exceeded the national average slightly for service industries, particularly in Florida and Georgia. Moreover, business and tourist travel to the region seems likely to advance during 1985. An expansion of convention facilities in several cities will accommodate an influx of business travelers, and new facilities apparently are being booked nearly as quickly as they become available. The region's planepassenger traffic grew more slowly in 1984 than in 1983, . partly because of lackluster perfomance in the tourist sector. Many in the region's c tourist industry look for improvement this year. Last year, the number of il visitors to the region was curtailed by competition from the Los Angeles Olymn g dollar, which encour pics and the m aged U.S. citizens to travel abroad. The / c e w Orleans World's Fair proved to be a disappointing money-loser for its sponsors although it clearly boosted tourism revenue in neighboring states. Defenserelated manufacturing, espe cially electrical and electronic machinery and equipment, should exhibit solid growth this year as will the region's substantial paper manufacturing indue try. Unfortunately, not all the region's manufacturers will fare as well. Much of the apparel and textile manufacturing sector is suffering because of keen competition from imported products, their prices discounted in our outlets because of the dollar's strength in for eign exchange markets. Unless the dollar continues its early 1985 decline against other currencies, pressures on the d e mestic textile industry will mount. The displacement of textile workers will pose a lingering absorption problem for the southeastern labor market. Virtually every industry heavily dependent on foreign sales has seen its market share shrink in recent years. The agricultural sector has been especially troubled by reduced foreign demand Low prices for farm products, heavy debt d c e requirements, and declining land prices remain major hurdles for farmers. The nation's economic expansion scarcely touched the southeads energyproducing sector in 1984 and the new year promises little improvement. The worldwide market for Detroleum and natural gas is abundantli supplied, even ' though some producers have slashed output to shore up prices. Growth in + foreign economies has been far less robust than ours and conservation efforts have restrained demand. Regional oil and gas production cannot rebound until global market conditions improve. I ,. e- 1 6 - businesses Southeastern seaport facilities and dependent on export marketing find themselves hurt by the declining exports. Rising imports have bolstered a number of seaports and traderelated businesses, but a realignment of the dollar with other world currencies appears to be a prerequisite to restoring ’the health of most of the Southeast‘s international trade sector. In the financial services industry, a continuing evolution in 1984 laid the groundwork for additional changes in -the new year. Geographic barriers to %ompetition among banks and savings and loan associations eroded further during 1984, while loan losses hastened -, the failure of additional depository institutions. + In another development typifying the atransition in financial services, Georgia consumers gained access to almost all of the state’s automated teller machines ’ late in the year through the creation of Avail, a statewide ATM system modeled J after Florida’s Honor system. The barriers to interstate competition A were reduced significantly in the South east by four states‘ approval of reciprocal regional interstate banking legislation, by the opening of the “nonbank bank” loophole, and by a large New York bank holding company’s acquisition of a failing S8tL in Florida. A change with great potential for banking in the southeast was the passage of regional reciprocal interstate banking -* legislation in Florida, Georgia, North Carolina, and South Carolina. These four legislatures voted to allow banking 1 organizations in other southern states s to acquire their institutions if the other states provide reciprocal privileges. All ,four state laws, which become effective jn 1985 or 1986, prohibit banks outside the South from acquiring institutions in these states. The constitutionality of regional inter 4 state banking bills like those passed in the Southeast was challenged in New England early in 1984. The regional ”bills were upheld in the federal Court of - . _L - - Appeals, but the Supreme Court has agreed to review the legislation. The first merger proposed under the reciprocal laws would link Sun Banks of Florida, the second largest banking organization in the Sunshine State, and Atlanta-based Trust Company of Geor gia, the third largest banking organization in that state. Another major development in inter state banking came when the Federal Reserve Board approved U.S. Trust Corporation of New YorKs proposal to convert its trust company in Florida into a “nonbank bank.” A nonbank, or limited-service bank, is insured and ~~ Many proposed nonbank banks are expected to be opened in the Sixth District states if Congress and the courts permit holding companies to exploit the loophole aggressively. Ninety-five applications had been filed as of midJanuary for the Sixth District states. Florida leads the list with 42 proposed nonbank banks, while 22 applications have been filed for Georgia. Both states‘ legislatures have voted to prohibit the nonbank institutions. Still another banking development was Citicorp’s acquisition of a financially troubled savings and loan association in Miami, approved by the Federal ~ Value of U.S. Dollar Percent Change from December 1971 Tradeweighted Against 10 Currencies A 30 20 10 0 J F M A M J J A S O N D J F M A M J J A S O N D 1983 1984 Souroe: Federal Reserve Bunk of Atlanta regulated but, because it does not meet the definition of a bank in the Bank Holding Company Act, it is not subject to commercial banks‘ customary g e e graphic restrictions. In February 1985 a federal district court ordered the Comptroller of the Currency not to issue any final approvals for limited-service banks pending a final court decision. The comptroller had begun approving nonbank bank charters after Congress failed to revise the Bank Holding Company Act in 1984. He had imposed a moratorium earlier to give Congress time to revise that act. 7 Reserve Board early in 1984. Acquisition of the Florida S L , arranged by the Federal Savings and Loan Insurance Corporation under provisions of the Garn-St Germain Act, gave the nation’s largest banking organization an entry into one of the fastest-growing states. Barriers to intrastate competition in Louisiana were lowered by the passage of a bill permitting multi-parish bank holding companies The legislation could prompt the reorganization of many chain banking organizations into bank holding companies, as well as holding companies’ purchase of some previously unrelated banks. 1 1 z r c r t i I r A .d I In the BanKs control room,guards monitor the closdcircuit television screens that enable our ProtectionDepartment to maintain surveillance essential to a central bank p. *-ip Atlanta Fed Activities: .A Commitment to Efficiency, - Integrity, and Excellence -‘- The evolving financial services environment has brought major changes not only to our pricdservices operations ’but to more traditional Bank activities \such as those involved with supervising, regulating, and lending to commercial banks. Other departments, including :Accounting and Statistical Reports, also have been affected. At the same time, developments in * our national and regional economies ?pose new challenges for our specialists dedicated to researching economic trends and counseling President Robert P. -, Forrestal on monetary policy. We have come to feel at home in the -new operating environment that was 4 thrust on us by “MCA-80”-the Mone tary Control Act of 1980. The act required us to sell, at explicit prices, services that we had for years provided free to member banks-services such as check 9 processing, securities and noncash collection, wire transfers, and net settle ments. We were also to make those services available to nonmember banks, b savings and loan associations, and credit unions. ’ Throughout 1984, our 2,000 employees continued the high operating efficiency that has kept us in the forefront of the 12-Bank Federal Reserve System. That + efficiency helped us to comply with the congressional mandate, enunciated in MCA-80, that the Reserve Banks match operating costs with revenues. Despite our efficiency, a growing workload continued to tax our physical ‘ facilities. In Jacksonville, one of the ”fastest-growing economies in the nation has prompted the construction of a new ’ Branch building. The growing volume - of business at the Jacksonville Branch has inundated our present building, which dates to 1952, with more work , than its limited space can accommodate. The new 208,000-squarefoot building, well suited to the electronic age, is 1 “rising just west of Jacksonville’s business district. On the following pages we comment ’ briefly on our operations in 1984, noting * 4 + a few of our plans for further improve ments in the years to come. Data on the volume of our operations appear on page 26. Financial Services One of the Bank’s most important missions is to serve the public interest by providing superior f i i c i a l services. This meshes well with our dedication to promoting the efficiency and integrity of the payments mechanism- another major ongoing mission of this District and the Federal Reserve System. Since enactment of MCA-80, we have sought to cover our costs of providing ~ - 7 t Guy Hitchcock, foreground, end Ted Reddy review plans for the new JacksonvilleBranch building now under construction in that Florida city. priced services by continuing the Distids emphasis on low costhigh quality operations. In 1984 we covered costs, met our volume targets, and remained a leader in the Federal Reservds measures of production costs. Because the industry we serve is changing rapidly, we have concentrated our longer range planning on developing new services. From 1981 to t 9 . I - I A c F Assistant Vice t 7- f+ =- President JamesL. BrownconferswithBarbaraTysononasecuritiesservicestransferbetweenthe Atlanta Fed and a District financial institution. : +? 10 J ’ - 1983, we received approval from the Board of Governors to offer 21 new or improved services; in 1984 we obtained approval for 19 more. The following sections highlight our 1984 accomplish- ments and preview some of our future plans. Check Collection Check collection, a mature product , line, generates 85 percent of the Atlanta Fed’s revenue from financial services. The future seems to promise fewer checks to be processed and fewer check processors. This trend is likely because of consolidations among regional c o r n spondent banks, a reduction in endpoints served due to mergers, and continued ? interest by financial institutions in direct local and regional exchanges. In 1984, the District processed 2.14 billion checks or 8 percent more than during 1983. This is the largest volume of any Federal + Reserve District. We continue to explore other needs in the marketplace. We hope to develop cooperative ventures in which we would . provide specialized processing for other large processors, and to employ tech. nology that can make our service more efficient. In 1984,we took further steps toward serving an increasingly elec * tronic payments mechanism by providing microfilming services for commer cial checks either for a depositor prior + to check sorting or for a check receiver - following sorting. In 1985 we will continue moving toward a less paper dependent system by piloting a program for truncation of checks at the Federal Reserve. Truncated checks are held at a deposit point rather than being returned - to the check-writer. This service could permit even greater savings for the payments process. ~ ~ - ‘ popularity; therefore, we plan to use advanced technology to make wire trans fer and ACH services broader and more cost-efficient through faster processing and improved data communications. As a major step in this program, the Bank last year began employing the latest technology to implement an u p graded, online, multi-service electronic network to deliver Federal Reserve ser vices to Sixth District financial institutions. As a further step, we expanded ACH night-cycle processing and offered new electronic delivery options. During the past year, the number of commer cial ACH transactions processed at our six offices increased by about 44 per cent while the dollar volume more than doubled. Securities Services With the new requirement that all securities be renistered and the national trend toward -book-entry of registered securities, our existing definitive safekeeping and Check Collection coupon collection services Average Daily Incoming Items have limited long-term poten[millions) tiaL However, while adapting to long-run needs of the m a r ketplace, we intend to pursue nearterm service opportunities. As part of this strategy, a standard securities services software package using a new microcomputer network was implemented in December. It offers substantial improve ments over our Drevious sv.+ CP 42 43 44 CP c22 4 3 tem, and allows &line insti”k- Wire TransfedACH As the nation’s payments system -.evolves further toward electronic t r a m fers, the Fed also will move in that direction, continuing to be a stateof+ theart payments processor. Electronic payment generally is recognized as the medium of the future, particularly as (POS), automated teller point-of-sale +machine (ATM), automated clearinghouse (ACV, and other electronic pay* ment and settlement functions gain - I t 11 9.0 8.5 8.0 7.5 7.0 W [ I first introduced in mi&1983 was continued successfully last year, with the District handling more than onefourth of total Systemwide noncash volume. This program appeals to financial institutions that prefer not to sort their noncash items but rather to deposit a mixture of items payable both locally and in other Federal Reserve Districts. ’ E Caeh and Other Non-Priced Activities In addition to the innovations in e priced services, the Sixth District continues to improve the efficiency of cash operations and to support the System’s eefforts to provide increasingly automated and higher quality services to the govem ment. The Dishkt is working with the Treasury Department on new cash e management services and on converting additional securities to book-entry form. Over the past few years, new high speed currency processing machines and standards have improved the quality of currency in circulation. A redesigned fitness sensor is now being installed on all existing equipment. We also are participating in the test of a second generation currency system, with the prototype to be installed in Atlanta 4 during the second quarter of 1985. +. * ~ c + I Economic Research and Public Information I c c Our Research Department is com- 3 mitted to helping formulate and imple ment monetary policy and adding to our understanding of macroeconomic *r policy issues through high quality research. Top priorities are the evaluation of how monetary policy influences the regional, domestic, and interna- * tional economies, and the development of policy alternatives. We continue our longterm interest in the impact of a - & changing financial structure on regulatory and monetary policies. Last year, the research effort was deepened through + greater use of quantitative methods, including work with a structural model w of the U.S. economy. v-1 ~ c . one of the Atlanta Feds massive vault doors symbolizes the strength of the institution. 12 ? Meanwhile, the Bank is working to communicate to the public effectively through its publications, conferences, President Forrestal’s regular newspaper column, and presentations delivered to civic and professional groups by senior officers and economists. We seek to foster public understanding of Bank and System responsibilities and objeo tives h u g h the press as well as h u g h our contacts with and publications for the academic and business communities. The department‘s Economic Review, which won a national communications award in 1984, and our Southeastern Economic Insight newsletter have proved to be popular conduits for channeling such &formation to the public. Those publications analyze economic, financia1 and business conditions nationally and in the region. Act banks and branches and agencies of foreign banks doing business in the Sixth District changed little during the year. At yearend there were 106 inter national banking institutions in the D k trict, 24 of them in Atlanta and 79 in the Miami area. Diecount and Credit In addition to performing its normal function of supplying seasonal and short-term adjustment credit, the Dis count and Credit Department worked in concert with other regulatory agencies durinn the vear for the orderly resolution of p&ble& at eight failing ~mstitutions. That was one more than the seven institutions assisted in 1983, when a number of related problems arose in Supervision and Regulation Our activities in this segment of our business have been shaped by the continuing evolution of the nation’s financial system and the rules governing it. Critical to this evolution is the continued restructuring of the system through the bank holding company form of organization, which the Federal Reserve alone has responsibility for regulating. In the Sixth District, bank holding company activity was at record levels last year. We processed 150 applications from institutions seeking to form new holding companies and 165 applications relating to other changes such as mergers and acauistions of commercial banks .or noibank firms. Twelve new statechartered banks and one existing bank in the Sixth District were admitted to membership in the Federal Reserve System in 1984, with 13 applications still pending at yemend. Since MCA-80 diminished the resewe requirement &advantages *--of membership the number of stke member banks in the Sixth District has risen to 98, the most in recent history. *. On the international banking scene, foreign debt problems and a rising dollar brought a slowdown after several years ILof rapid growth. The number of Edge - - Vereran compuairormeim t,regu4 nelps acqualnr Lneryi MlllWwU wlln fflnt: aupumur;areu puururyye Illnliuule installed in the Print Shop to provide wider variety while speedin8 the composition process. eastern Tennessee. In the Sixth District all such cases in recent years have been handled h u g h what is generally called the “purchase and assumption” proce dure, which provides virtually uninter rupted service to depositors. 13 1 r+x;euuy "j, - 3 F Kathy Clements of Corporate Accounting shares a book with skyearold Joey Bryan at Henrietta Egleston Hospital for Children in Atlanta, where Kathy pitchea in as a volunteer on weekends. 14 f Corporate Citizenship: ;The-Challenge of Getting Involved L 7 - We at the Atlanta Fed view ourselves as partners in various civiominded corporate undertakings in the six southeastern cities where we have offices. In fact, our corporate philosophy state ment notes, “We take seriously the re sponsibilities of our corporate citizenship and actively encourage and support the civic and community involvement -i of our staff.” While there are limitations on the role that a quasi-public entity can play, both social and business considerations * support the concept of community involvement The importance of corporate 4 interest in community affairs has been .L heightened in recent years because private businesses and citizens have been . called upon along with local governments to assume a large share of support previously provided through federal government expenditures. Individual employees are free of the ? strictures that often limit an institution r- in its desire to “do good” Bank employees in Birmingham, Jacksonville, Miami, Nashville, and New Orleans, as well as - Atlanta, have involved themselves in projects as diverse as performing volun * teer work for a children’s hospital, serving on emergency rescue units, helping feed the needy, counseling prison inmates, teaching illiterate adults to i read and coaching youth sports teams. We feel that a clearly legitimate area , for community involvement, both on the part of the Bank and its individual employees, is in the realm of educationencouraging and working to promote excellence among superior students as 4 well as potential dropouts struggling with average classwork. Therefore, much of the Bank’s community activity is directed toward this end. Fostering excellence in educational , systems can benefit everybody. Employ+ers can gain a better qualified labor market to draw upon, and improved access to jobs through schooling may 4 -‘ even reduce crime. To date, the Bank has become involved in such programs as the Harper Magnet School for Financial Services, Inroads, Adopt-*Student, and the Atlanta Chamber of Commerce Task Force on Education. In the widely praised Harper Magnet School program, which the Atlanta Fed helped create in 1982, high school students with proven academic competence and a desire to enter the financial field are given special support by - ~ ~ . ~ I Tourguide Monica Walker explains displaysof rare coins and currency in the monetary museum, an Atlanta Fed exhibit tracing the history of money. All of the Bank‘s offices host public tours. Atlanta’s banking community. Young people selected from all over the city are brought together in this “school within a school” where they are given special financial services training by regular classroom teachers and bafik staff members. Each student is offered an internship at one of eight sponsoring banks, as well as summer employment at a financial institution following graduation. The Atlanta Fed alone employed 12 graduates last summer. c 15 ?- 3 P 3 1 A d 4 Two P internship. 4 16 “Inroads“ is a national organization that identifies, trains, and develops talented minority college students inter ested in corporate careers in business t or engineering. The program’s objectives are to provide experience and increase business opportunities for the youths, while giving corporations an opportunity to develop future employees. We e m ployed two Inroads interns last summer. One student completed her third summer of internship at the Bank, while the other finished her first summer work experience and entered college in the fall. The Bank also recruited volunleer employees qualified to work oneonone with teenagers as part of the Adopt-a Student program. In this program, high school seniors in the lowest quartile of their classes are “adopted” by individuals in business who encourage and help them after houps. The object is to mot& vate students to improve their grades, graduate from high school, and find employment Ten Atlanta Fed employees made commitments to the program for the 1984-85school year. The Atlanta Fed also took part in an Education Task Force created by Atlam ta’s Chamber of Commerce. In one task 3 force project, schoolteachers who lacked a computer background were given an eight-week course in the basics to help them more effectively instruct - students who were already computer knowledgeable. - One member of our staff lectures at L workshops sponsored by the Georgia Council on Education and serves as a trustee of the council, which develops techniques and materials to help teachers give students an understanding of basic economics. And, during 1984, high school vocational and career counselors toured the Bank on Educators’ Day, part of a program designed to encourage young people to continue their studies. , Not all of the Bank‘s community involvement energy is channeled into education. Our community affairs fune tion was expanded during the past year through the activities of a community affairs officer who serves as liaison between the District‘s financial institu*?ions and cities and various local o r ganizations. L Y Our designated officer seeks to familiarize himself with economic and community development needs and programs within the District, and to inform financial institutions how they might involve themselves in relevant programs in their markets. He works with the District‘s 20 Neighborhood Housing Services corporations, partner ships of financial institutions, neighbor hood residents, and city governments created to revitalize urban neighbor hoods. He has helped several organg zations by attending fun&raising events for the contributing financial institutions one such affair was hosted by the $1 L J Iayne Fox-Bryan,director of community relations, offers some communications pointers to Harper Magnet School students and Inroads interns. Miami Branch. A related initiative is publishing “Opportunities,” a bimonthly newsletter designed to inform banks of opportunities for participation in local economic and community development programs. Our offices support such respected programs as United Way campaigns and Red Cross blood drives. Again, the Bank’s involvement must be limited, since our charter precludes making corporate gifts to charitable organizations. Yet for years the Bank has s u p ported the United Way and the many community agencies under its umbrella. 17 Officers and other staff members in our various offices participate in the annual fun&raising campaign, serving as group and division managers. The Miami and New Orleans Branches both provided two "loaned executives" for the 1984 fund drive, and the Atlanta office con tributed one for that city's drive. Bank officers serve on agency relations committees, overseeing the programs and expenditures of various organizations. Bank employees contribute generously to the United Way in OUT six cities, establishing a level of giving that has Individual employees in Jacksonville spend off-duty hours working with such organizations as the American Red Cross, the Boy Scouts of America, the r Salvation Army, and the Special Olympics. Employees serve on volunteer fire departments and perform in community theater groups. rc In Miami, employees enter into activlties ranging from chairing the West Dade Chamber of Commerce-an organ ization with more than 100 participating businesses-to working as a Big Brother or Big Sister in a program that ? fosters a personal relationship between an adult and a oneparent child Various employees give their time to such organ izations as the Urban League of Greater Miami, the Inner City Children's Touring Dance Company, and the Sierra Club of _, South Florida. The Nashville Branch has been honored as an outstanding employer of the deaf, employing several deaf men and ., women. To enhance communication with deaf employees, sign language classes are conducted periodically by interpreters from the League for the Hearing Impaired. In New Orleans, Branch employees coordinate a child abuse and battered A womexi's program, conduct fudraising activities for a retarded children's special school, and counsel adolescents troubled by family problems or drug addiction. One employee serves with the Land, Air and Sea Emergency Rescue Unit, responding to disasters and emergency situations ranging from plane crashes to hostage negotiations. Why do we encourage such off-hours activism by our employees? Community C involvement's longterm benefits to an institution or a corporation often are uncertain in the beginning. Yet, s o m e i advantages are obvious. For example, involvement benefits the society in which we work and live. Community projects also help us identify talented,competent employees. Furthermore, if an institution and its employees can help raise educational standards, u p I grade the lives of the underprivileged and afflicted, and contribute to the , overall well-being of a locality's econ-+ omy, everyone will benefit. ~ - LI -' Miami Branch employees JackFinch, left, and Francisco Padilla check out a work schedule with Zenaida Hernandezat the United Way of Dade County, where Finch and Padda worked six weeks each as loaned executives. captured many awards. More than 87 percent of our Atlanta office staff participates in the Charity Parity plan, a payroll deduction plan for charitable giving. Total 1984 pledges increased by 15 percent and fair share giving rose by 24 percent. Employees responded with similar enthusiasm in the Bank's other offices. An officer of the Birmingham Branch served as chairman of the Alabama Youth Football State Championship, which involved 1,200 youngsters and raised funds for King's Ranch, which shelters mistreated children and unwed mothers. 18 J ' i L Robert E. Heck, an officerin Supervision andRegulation shown bere in uniformto referee a high school football game, alsocoaches &la softball teams in his off houra 19 Directors and Senior Officers Board of Directors, 1984 e JOHN H. WEITNAUER, JR. CHAIRMAN Chairman and Chief Executive Officer Richway Atlanta, Georgia r -4 BRADLEY CURREY, JR. DEPUTY CHAIRMAN President Rock-Tenn Company Norcross, Georgia !-I DAN B. ANDREWS President First National Bank Dickson, Tennessee a a HAROLD B. BLACH, JR. President Blach's, Inc. Birmingham, Alabama GUY W. BOTTS Senior Partner Culverhouse, Botts, Mills & Cone Jacksonville, Florida JANE C. COUSINS President and Chief Executive Officer Merrill Lynch Realty/Cousins Miami, Florida BERNARD F. SLIGER President Florida State University Tallahassee, Florida 2 \ HORATIO C. THOMPSON President Horatio Thompson Investment, Inc. Baton Rouge, Louisiana A 2 MARY W. WALKER President The National Bank of Walton County Monroe, Georgia I 6' -- New Director for 1985 1984 Directors:Seated are Currey. left and Weitnauer. Standing, from left, are Blach, Federal Advisory Councilmember Searle. Cousins, Thompson, Walker, Andrews. Sliger, and Botts. Y E.B. ROBINSON, JR. Chairman and Chief Executive Officer Deposit Guaranty National Bank Jackson, Mississippi -4 c: >& Federal Advisory Council PHILIP F. SEARLE Chairman Sun Banks, Inc. Orlando, Florida 20 t4 Management Committee Senior Officers JOHN R. KERR ROBERT P. FORRESTAL President JACK GUYNN Vice President First Vice President B. FRANK KING First Vice President B. H. HARGETT Vice President Senior Vice President RICHARD R. OLIVER CHARLES D. EAST Executive Vice President W. R. CALDWELL ELY S. MATTER1 Vice President Senior Vice president JOHN M. WALLACE CHARLES D. EAST Vice President Senior Vice President and Comptroller JEFFREY J. WELLS HARRY C. SCHIERING General Auditor H. TERRY SMITH Vice President and Nashville Branch Manager EDMUND WILLINGHAM Vice President and General Counsel SHEILA TSCHINKEL Senior Vice President and Director of Research PATRICK K. BARRON Vice President and Miami Branch Manager WARDLYN BASSLER Vice President HENRY BOURGAUX Vice President and New Orleans Branch Manager HARRY BRANDT Corporate Secretary and Assistant to the President FRANK J. CRAVEN Vice President W. M. DAVIS Vice President DELMAR HARRISON Vice President and Atlanta Branch Manager JAMES D. HAWKINS Vice President and Jacksonville Branch Manager ROBERT E. HECK Vice President +--FREDERICK R. HERR Vice President and Birmingham Branch Manager Executive Vice President W. R. CALDWELL Senior Vice President and Comptroller HARRY C. SCHIERING General Auditor Senior Vice President - B. H. HARGETT Vice President and Associate Director of Research JACK GUYNN I H. TERRY SMITH Senior Vice President SHEILA TSCHINKEL Senior Vice President and Director of Research Branch Directors, 1984 Birmingham Jacksonville Miami MARTHA McINNIS CHAIRMAN JEROME P. KEUPER CHAIRMAN SUE McCOURT COBB CHAIRMAN President EnviroSouth, Inc. Montgomery, Alabama President Florida Institute of Technology Melbourne, Florida Attorney Greenberg, Traurig, Askew, Hoffman, Lipoff, Rosen and Quentel, P.A. Miami, Florida G. MACK DOVE President and Chief Executive Officer Security First Federal Savings and Loan Association Daytona Beach, Florida EUGENE E. COHEN LEWIS A. DOMAN D. S. HUDSON, JR. President Citizens and Peoples National Bank Pensacola, Florida Chairman First National Bank and Trust Company of Stuart Stuart, Florida President AAA Cooper Transportation Company Dothan, Alabama GRADY GILLAM Chairman AmSouth Bank, N.A. Gadsden, Alabama SAMUEL RICHARDSON HILL, JR. President University of Alabama at Birmingham Birmingham, Alabama CHARLES LEE PEERY Chairman The First National Bank of Florence Florence, Alabama WILLIAM M. SCHROEDER GEORGE C. BOONE, JR. Chief Financial Officer and Treasurer Howard Hughes Medical Institute Coconut Grove, Florida E. F. KEEN, JR. Vice Chairman NCNB Bancorporation, Inc. Bradenton, Florida ROBERT L. KESTER Vice Chairman Barnett Bank of South Florida, N.A. Pompano Beach, Florida E. WILLIAM NASH, JR. President South-Central Operations Prudential Life Insurance Company of America Jacksonville, Florida ROBERT D. RAPAPORT Principal The Rapaport Companies Palm Beach, Florida Chairman and President Central State Bank Calera, Alabama JO ANN DOKE SMITH ROY VANDEGRIFT, JR. CmOwner Smith Brothers Micanopy, Florida President Roy Van, Inc. Pahokee. Florida LOUIS J. WILLIE JOHN D. UIBLE Executive Vice President Booker T. Washington Insurance Company Birmingham, Alabama Chairman and Chief Executive Officer Florida National Banks of Florida, Inc. Jacksonville, Florida New Directors for 1985 New Directors for 1985 WILLARD L. HURLEY ANDREW A. ROBINSON STEPHEN G. ZAHORIAN President Barnett Bank of Lee County, N.A. Fort Myers, Florida New Directors for 1985 ROBERT D. APELGREN Chairman and Chief Executive Officer First Alabama Bancshares, Inc. Birmingham, Alabama Dean, College of Education and Human Services University of North Florida Jacksonville, Florida President Apelgren Corporation Pahokee, Florida A. G. TRAMMELL JOEL R. WELLS, JR. JAMES P. HERMES President Alabama Labor Council- AFGCIO Birmingham, Alabama President and Chief Executive Officer Sun Banks, Inc. Orlando, Florida President and Chief Executive Officer Bank of the Islands Sanibel, Florida 22 Nashville -.C. WARREN NEEL 1 CHAIRMAN Dean College of Business Administration -'The University of Tennessee Knoxvue, Tennessee ~ 3 I CONDON S. BUSH - President __ Bush Brothers & Company Dandridge, Tennessee d MICHAEL T. CHRISTIAN President and Chief Executive Officer Commerce Union Bank Greeneville 5 Greeneville, Tennessee r SAMUEL H. HOWARD Vice President and Treasurer Hospital Corporation of America Nashville, Tennessee In a scene repeated daiiy at our six Branch offices, an operator prepares money for processing on a hwspeed currency machine that will verify the amount and screen out unfit bills and counterfeits. k 8- ROBERT W. JONES Chairman and President - First National Bank McMinnville, Tennessee 4 i OWEN G. SHELL, JR. President and Chief Executive Officer First American National Bank of Nashville . Nashville, Tennessee 2 New Orleans PHILIP K. LIVINGSTON SHARON A. PERLIS CHAIRMAN Vice Chairman, President, and Chief Executive Officer Citizens National Bank Hammond, Louisiana Attorney Metairie, Louisiana TOM B. SCOTT, JR. JERRY W. BRENTS President and Chief Executive Officer First Louisiana Holding Company Lafayette, Louisiana ROOSEVELT STEPTOE PATSY R. WILLIAMS J Partner Rhyne Lumber Company Newport, Tennessee 5 CARL E. JONES, JR. Chairman, President, and Chief Executive Officer Merchants National Bank of Mobile Mobile, Alabama ' New Director for 1985 * WILL A. HILDRETH *sident and Chief Executive Officer First National Bank of Loudon County Lenoir City, Tennessee LESLIE B. LAMPTON President Ergon, Inc. Jackson, Mississippi -I President and Chief Executive Officer Unifirst Bank for Savings, F.A. Jackson, Mississippi 23 Professor of Economics Southern University Baton Rouge Campus Baton Rouge, Louisiana New Director for 1985 JAMES G. BOYER Chairman, President, and Chief Executive Officer Gulf National Bank at Lake Charles Lake Charles, Louisiana Statement of Condition Decsmber31.1983 December 31,1984 $ 371,000,000 $ 360,000,000 161,000,000 161,000,000 42,238,437 49,655,950 Loans and Securities 3,870,336,372 4,Ol8,821,491 Cash Items in Process of Collection 1,209,887,887 541,108,045 34,189,340 39,275,879 394,674,961 437,619,842 35,376,273 2,276,686,836 $6,118,703,270 $7,884,168,043 $3,155,985,661 $5,216,469,381 ASSetS Gold Certificate Account Special Drawing Rights Certificate Accwnt Coin Bank Premises Other Assets lnterdistrict Settlement Account Total Assets Liabiliii Federal Reserve Notes Deposits* 1,578,055,351 1,756,695,061 Deferred Availability Cash Items 1,074,442,781 545,785,769 67,137,577 96,905,432 0 0 Other Liabilities lnterdistrict Settlement Account $5,875,621,370 $7,615,855,643 $ 121,540,950 $ 134,156,200 121,540,950 134,l 56,200 Total Capital Accounts $ 243,081,900 $ 268,312,400 Total Liabilities and Capital Accounts $6,118,703,270 $7,884,168,043 Total Liabilities capital Accarnts Capital Paid In Surplus 'Includes Depository lnstiluton Acawnts collected Funds Due to Other F.R Banks U S Treasurer - General Acawnt ---- -I-- I _ I