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IF-

-B

- ---I

e
of Atlanta







CONTENTS
Message from the President

2

Building Bridges, Building Partnerships

5

Directors

20

Officers

26

Financial Statements

30

The three and a half million people




who live in Atlanta
will always remember 1996 as the year of the Centennial Olympic Games. The staff
of the Federal Reserve Bank of Atlanta will particularly remember it that way. The
Bank was literally in the middle of the festivities because it is located only one block
from Centennial Olympic Park and in the heart of the Olympic Ring, the area of the
city where most events took place. This Bank works hard to reach out to the various
communities it serves, and the extensive preparations for the Summer Games done
by the atlanta Committee for the Olympic Games, the municipalities of metro
Atlanta, and the people who live here were a reminder of how important it is to
establish public-private partnerships and to make them work.
On an institutional level, in the areas of cash services, security, and
transportation, the Bank itself worked with many of the groups that helped to
coordinate the Games. And during the seventeen days of the Games themselves,
on a personal level, many members of our Bank staff helped make numerous
domestic and international visitors to our city feel welcome. With or without the
Olympic Games in town, however, the Federal Reserve Bank of Atlanta is reaching
out to the many communities it serves by
Building bridges
Building partnerships,
Bringing people together to get things done.

These three principles guide our work every day, and they are mort
important than ever in light of the vast changes taking place in technology, in the
financial system, and in the economy at large. Here at the Federal Reserve Bank
of Atlanta, we’ve been building bridges and partnerships for many years in the
banking industry. Now, to meet today’s challenges and changes, we are beginning to
deepen and expand on partnerships we’ve already made, to create new partnerships
both inside and outside of the region, and to increase our role as an intermediary,
bringing together groups that might not otherwise sit down with one another to talk
about how to solve issues that affect the financial arena and the economy. This
annual report focuses on some recent steps we’ve taken and points to where we’re
headed as we approach the next century.
A unique feature of the Federal Reserve System is its decentralized structure
and the role it affords for regional participation in important public policy decisions.
The president and staff of a Reserve Bank work together with directors to understand what is going on with the people and companies that make up their region’s
economy as a key input into decisions about monetary policy. For this reason it is
critically important in this time of profound-and not well understood-economic

The management team of
the Federal Reserve Bank
of Atlanta in nearby
Centennial Olympic Park:
Jack Guynn, president and
chief executive officer;
HI@ Brown, chairman of
the board of directors;
and Pat Barron,
first vice president and
chief operating officer.

I







shifts to gather information that can help shape the wisest monetary policy and, in
turn, foster truly sustainable economic growth. To do so, we at the Federal Reserve
Bank of Atlanta garner economic intelligence from throughout the Sixth Districtwhich stretches from the Louisiana-Texas border to the mountains of Tennessee
to the tip of the Florida Keys-seeking out the opinions and insights of business
people and community leaders about the rapidly changing economy.
It is not only the economy that is evolving. Profound changes are taking
place in the financial services industry and in the nation's payments system. To
address issues like the future of checks and the optimal regulatory framework for
the financial system, we are trying increasingly to work in concert with bankers
and others to create solutions that will work for the twenty-first century.
Being part of the central bank, we also have our own ideas about what
measures can best help to increase economic well-being for all, but we do
not lay claim to having all the answers. That is why we want to serve as an
intermediary-to bring the right people together to discuss and debate problems
and, ultimately, to help us make the best decisions that will result in the best
outcomes. We recognize that this kind of collaborative process does not produce
results overnight. Yet it is a necessary step in building the kind of consensus
that does bring about important change.
Building bridges and building partnerships are long-term activities. The
Atlanta Fed has been part of the Southeast's financial infrastructure for more than
eighty years now, and, with offices in six major southeastern cities, we have set down
roots throughout the region. We are dedicated to creating the kind of long-term
relationships that will continue to work to the benefit of everyone throughout the
next century. No one can ever be certain about the future, but we believe the steps
we are taking now set the right course. With the help of officers and staff of the
Bank and counsel from our directors, I am optimistic that the Federal Reserve Bank
of Atlanta wl continue to play a vital role in the nation's economic future.
il

JACK

GUY"




many constituencies throughout the
Sodteast by building bridges andpartnershli)-cand byplaying on intermediary m b
with diverse groups. Thephotographic essay
thatfollowspresents a f e w examples of how
the Atlanta Fed reached out in 1996:
il,

Working with business and community leaders
in the region to find out more about current develo
and trends in the national economy

Working with international central bankers and bank supervisors
to create partnerships that improve consolidated supervision of
international banks

Working with the financial community to find w
the nation’s payments system more efficient

Working with visiting scholars and financial
to learn how best to safeguard the financial system
while encouraging financial innovation

Working with community representatives and bankers
to help low- and moderate-income families achieve the dream
of owning a home

Working with the U.S. Treasury to prot

1

Getting input about
changes in the auto indus.
try at the Saturn plant in
Spring Hill, Tennessee:
Jack Guynn, president and
CEO of the Atlanta Fed
(far right), and Waymon
Hickman, Atlanta Fed
director (second from left),
with Saturn’s Thomas
Manoff, vice president of
finance (left), and Robert
Bonrff, vice president of
manufacturing operations.




1

1

Building Bridges, Building Partnerships

Gathering information directly from business and community leaders




is one of the most important duties of every regional Federal Reserve Bank

president. Jack Guynn, president and chief executive officer of the Atlanta Fed,
visited Saturn Corporation’s plant in Spring Hill, Tennessee, in September to meet
with representatives of the region’s growing automobile manufacturing sector and
hear their views on the industry and the regional economy. Grassroots information
such as this helps Reserve Bank presidents not only to represent their regions
and leading industries at meetings of the Federal Open Market Committee-the
Federal Reserve System’s monetary policymaking body-but also to offer unique
insights into economic developments nationally.
Atlanta Fed Director Waymon Hickman, a community banker in Columbia,
Tennessee, accompanied President Guynn on his visit to the Saturn plant. In
addition to touring the assembly line, they spoke with members of Saturn
management to get their views on the future of the auto industry. With the
relocation of many automobile manufacturing facilities and parts suppliers to this
region, the Southeast has a particular interest in this industry, which is gaining
local prominence along with the area’s traditional manufacturing industries: lumber,
paper, home appliances, textiles, and apparel. Although the Summer Olympic
Games in Atlanta grabbed a majority of the headlines, the real economic story for
the Southeast has been the strong growth driven by the automobile- and housingrelated industries following the 1990-91 recession.
Another part of the visit to Tennessee was spent talking with a large group
of business and community leaders to hear about their individual economic
experiences. Many of these people represent the service industry, which has
become a major part of the southeastern economy. In tandem with manufacturing,
the growth in the service industry has helped this region to outpace the national
economy for more than five years. But, ironically, the strong growth the Southeast
has enjoyed has sometimes masked underlying dislocations and painful structural
adjustments. For instance, while the automobile industry has been growing in this
region, the traditional base of apparel manufacturing has been going through a
difficult period as tens of thousands of jobs have moved to developing economies
in other parts of the world. This dislocation of workers in parts of the regional
economy is an issue that has both economic consequences and social implications.
These are the kinds of larger public interest issues that Atlanta Fed
staff grapple with every day, and the Bank has found it useful not only to conduct
research into issues like state tax policy but also to sponsor conferences and other
meetings that bring people together from outside the organization to explore such
issues as the best way to finance education reforms and the economic development
role of professional sports.

Alan Greens an, chairman of the Federal Reserve System’s Board of Governors,

,P

.




came to e Atlanta Fed in October to speak at a meeting of the board of directors.
He also had a chance to talk about the economy with Atlanta Fed Chairman Hugh
Brown, who heads a firm in the aerospace industry, and Director Maria Camila
Leiva, an executive with the Miami Free Trade Zone, as well as the Sixth District’s
other head office and branch directors. Since the information gathered by Reserve
Bank presidents and their staff from directors and other business contacts around
their regions is an important contribution to policymaking at the Fed, Chairman
Greenspan often visits the various regions of the country to hear firsthand what the
Reserve Bank directors are reporting.
The Atlanta Fed’s board of directors and branch directors, who number
forty-four in all, are a broad cross-section of southeastern business and community
leaders. In 1996 these included executives in the fields of utilities, nonprofit work,
retailing, manufacturing, and banking in addition to aerospace engineering and
exporting. The president of the Atlanta Fed also meets regularly with the Bank‘s
Advisory Council on Small Business, Agriculture, and Labor to gain insights into
the special perspective and concerns of the sectors of the economy the members
represent. As 1996 played out as another year of steady growth and low inflation,
Atlanta Fed directors and council members helped the president and his staff gain
a better understanding of the labor and wage picture in this business cycle. Their
information helped Fed policymakers seated around the Federal Open Market
Committee table judge whether labor shortages were becoming more widespread
and whether wage increases were likely to feed through to higher inflation.
As many important economic theories that had been validated by actual
experience over past economic cycles have proved to be less useful in today’s
environment, input from directors has helped to fill the gap in information and
understanding. Some approaches, such as targeting monetary aggregates, have
become less reliable, in the same way that inventory cycles are not as helpful as
gauges of the economy in an era when “just-in-time” inventory has become a way
of life for most businesses. Overall, judgments about monetary policy are enhanced
not only by economic models and data but also by the information gathered firsthand from business and community leaders.




Dbcussingviews on
current economic developments and trends:
Federal Reserve Chainnan
Alan Greenspan (center)
with Atlanta Fed
directors Hugh Brown,
chainnan, and
Maria Camila Leiva.

1

I

Building Btidges, Buiiding Partnerships

The Atlanta Fed

hosted a meeting of the board of directors of the Association of
Supervisory Authorities of Latin America and the Caribbean in October. Meetings
such as this one at the Miami office help the Federal Reserve System to keep
open lines of communication and to work mutually with international banking
authorities toward having the necessary information to supervise international
financial institutions.
The large international banking community in Miami has provided many
opportunities for Atlanta Fed staff to develop ties with international banking authorities. For instance, Fed staff have made frequent trips to Latin America to conduct
training aimed at helping international supervisors develop policies and procedures

Partnering with Latin American supervisory authorities: Sergio GhpJiazza,
director of CEMLA, Mexico C i , and lose florencio Guzman, superintendent of banks and financial institutions in Chile and chairman of the
Association of Supervisory Authorities of Latin America and the
Caribbean, with Suzanna Costello, Atlanta Fed vice president for international examinations, and William Ryback, associate director of banking
supervision and regulation at the Federal Reserve Board of Governors.

?




a

3

1




to curtail money laundering. But Congress added another reason to expand these
ties when it enacted the Foreign Bank Supervision Enhancement Act of 1991,
making the Federal Reserve the lead authority for supervising international banks
with offices in the United States and approving applications for their entry and
expansion. The act, which is in line with the goals of the Basle Agreement on
worldwide supervision, was established to ensure that foreign financial institutions
operating in the United States would have comprehensive and consolidated
supervision by their home country. Within the Federal Reserve System, the Atlanta
Fed has been given responsibility for developing specialized expertise on most of
Latin America and the Caribbean, a knowledge base that can be used by all of the
regional Reserve Banks and the Board of Governors.
I'he Bank's supervisory staff have been
building partnerships with their counterparts in
countries like Colombia and Chile for several years,
and staff members have also been on loan in different
Latin American and Caribbean countries to teach
commercial and central bankers about the Fed's
methods of supervision. In addition, the Atlanta Fed's
economic research department has established a Latin
American research group, a team of economic analysts
who monitor economic and financial developments in
this region of the world.
The Bank has not limited itself to Latin
America and the Caribbean in its international
partnership-building. For instance, staff are providing
ongoing technical assistance to Azerbaijan and other
fledgling market economies in the former Soviet Union
and in Eastern Europe to help them put modern
banking systems and payments systems in place. Over
the past three years, more than four hundred central
bankers, bank regulators, and commercial bankers
from these regions, as well as countries in Africa,
Latin America, and Asia, have visited the Atlanta Fed
to learn more about the U.S. financial system and the
operations of the U.S. central bank. These kinds of
initiatives reflect the Atlanta Fed's commitment to
helping emerging market economies.
1

11

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f

i

A

Par

-

In 1996

Fred Herr, senior vice president of the Atlanta Fed, worked closely with representatives
from commercial banks such as SunTrust, NationsBank, and others to take checks
to the next step beyond paper. As financial service institutions look for ways to make
some of their back-room operations more efficient, the Atlanta Fed has partnered
with several commercial banks to develop an efficient check-imaging
system, in which a full image of a check is transmitted or stored electronically rather
than moving the piece of paper itself or storing it on microfilm. The Sixth District
completed tests on such a check-imaging system and went live with imaging services
in 1996. Another dimension of the check-imaging effort is reflected in the Bank's







work with other Federal Reserve Banks and the U S . Treasury, the nation’s
largest check writer, to convert all Treasury checks to electronic images at
the Federal Reserve Bank of first deposit.
Working with commercial banks and other financial service
institutions comes naturally to a regional Federal Reserve Bank, and the
Atlanta Fed is forging ahead to become an even more active partner.
For instance, this Bank has completed a pilot project with five
commercial banks in the Sixth District to test a software program to
detect fraudulent checks.
With approximately 60 billion paper checks being written in the
United States each year, this nation’s payments system is far removed from
the Federal Reserve’s goal of moving from paper-based to electronic-based
payments. The Atlanta Fed first did a ground-breaking study of how to
move toward an electronic system for making retail payments back in the
1970s. More than twenty years after the original COPE (Committee on
Paperless Entries) study, it is abundantly clear that this nation still loves
its paper checks.
A technology even more promising than check imaging is
electronic check presentment, which refers to a method of capturing
the pertinent data about a paper check embedded in the magnetically
encoded characters at the bottom of the check and electronically
transmitting that data for presentment and reconcilement. The development in the 1950s of the magnetic ink character recognition (MICR)
system, which allows check data to be read electronically, thereby
speeding up posting to an individual’s account, was one of the Federal
Reserve System’s early contributions to the automation of check
processing. Electronic check presentment seems to be more promising for
the industry-and for consumers, who should benefit from cost savingsbecause most financial institutions can use technology built on the MICR system,
whereas fewer can afford to invest in full-fledged check-imaging systems.
The Atlanta Fed has been providing significant leadership and staff
resources to help promote this approach with a pilot project of the Electronic Check
Presentment Advisory Council, a Fed-sponsored banking industry group that was
formed to advance the use of electronic check presentment and to examine possible
operational enhancements to make the process more attractive to all participants.
This group, which is made up of seventeen banks from across the nation, has
teamed with the Southwest Clearing House in a pilot program to work out
operational issues involved in wide-scale electronic check presentment. This effort
is indicative of a clear Federal Reserve strategy to partner with the industry to
improve the overall efficiency and integrity of the payments system.

visiting scholarsand staff in the economic research department of the Atlanta Fed
U




found ample opportunities in 1996 to talk about their research on financial markets
not only with academic economists but also with market practitioners like Paul
Jacob of Hyperion Capital Management Inc., New York. By partnering with visiting
scholars like Steve Smith, who is the H. Talmage Dobbs Jr. Chair of Finance at
Georgia State University, the Atlanta Fed brings differing viewpoints to the
discussion of monetary policy and financial markets. The research done at the
Atlanta Fed has also proved useful to market practitioners like Jacob, who, as
director of portfolio strategies for Hyperion, works on asset allocation strategies
and econometric model-building for clients.
Since the 1980s a number of market forces have transformed the financial services industry. These include further geographic consolidation with the
proliferation of interstate banking, increasing international investment, the rise of
nonbank financial intermediaries, and ongoing technological changes. In the past
few years, derivatives have become high-profile new instruments. With globalization
and technology helping these innovations to appear at a breathtaking pace, the
issues pertaining to the liquidity, transparency, and regulation of derivatives markets
are complex.
The Atlanta Fed’s staff of financial economists and visiting scholars have
been studying these problems and publishing research for a number of years,
foreseeing the tremendous growth in this arena. Recognizing that not all problems
can be addressed by in-house research alone or even through partnerships with
visiting scholars, the Atlanta Fed is equally involved in bringing together groups
of people to work on problems in which they all have an interest. One of the best
examples of this intermediary role is the Bank’s annual financial markets conference, which brings together top scholars, market practitioners, and policymakers
from around the world.
In 1996 the Bank held its fifth annual conference on financial markets.
Representatives from organizations as diverse as the Deutsche Bundesbank,
the Financial Accounting Standards Board, the University of Chicago, Morgan
Stanley, the U S . Office of the Comptroller of the Currency, and the Federal Reserve
discussed topics such as whether derivatives change the way monetary policy affects
the economy and how to foster transparency in the markets, both in terms of
positions taken and prices set. The financial markets conference continues to serve
as a thought-provoking forum for such broad issues as optimal regulatory structures
in a global context.




Connecting scholarly
research with real-world
practice: Steve
Smii, vising scholar
at the Atlanta Fed, and
Paul Jacob, director of
portfolio strategies with
Hyperion Capital
Management Inc.

Finding ways to bring
together lenders and lowto moderate-income home
buyers: Ron Zimmerman
(right), Atlanta Fed
vice president in supervision and regulation, with
Harriet Stone (left),
director of housing management services,
Tampa United Methodist
Center, and Mishondra
Key, homeowner.



By purchasin




her own home in Tampa, Florida, in 1996, Mishondra Key was
part of the American dream, thanks in large part to an undertaking
of Ron Zimmerman, vice president in the Atlanta Fed’s supervision and regulation
division. Zimmerman developed a software program called Partners, which has
helped the Bank to serve as an intermediary between bankers who lend money
and people in low- and moderate-income areas who wish to purchase a house.
His Partners program provides lenders and community groups with an easy-tounderstand method of determining who can qualify for a home purchase loan,
given the underwriting criteria and the financial information provided. It also offers
solutions to overcome barriers for applicants who may not immediately qualify for
conventional home purchase loans.
Community lending has been a strong focus for the Bank since the
passage of the Community Reinvestment Act (CRA) of 1977, which governs how
financial service institutions meet the credit needs of their communities, including
low- and moderate-income areas. In a further effort to bring information to the
people who can put it to best use, in 1996 the community affairs department of the
Atlanta Fed spurred an effort throughout the twelve regional banks in the Federal
Reserve System t o develop a comprehensive computer database system that covers
all the community development groups that serve low- and moderate-income areas
and small business development needs. With 7,000 contacts in the Southeast alone,
this database now allows the regional Reserve Banks to track, sort, and manage
information on specialized loan and investment programs.
Besides the traditional safety and soundness bank examinations, bank
examiners at the Atlanta Fed and elsewhere are required by law to do separate
CRA and community lending examinations of lending institutions in the Sixth
District. Following a customer survey of commercial bankers carried out throughout
the Federal Reserve System, the Atlanta Fed reorganized some of the ways its
supervision and regulation division handles examinations in response to suggestions
from bankers. Now, for example, rather than visiting a lending institution three
or more times for the different kinds of examinations, Bank staff often consolidate
their exams into one visit. These changes are part of the Bank’s continuing effort of
working with financial service institutions to make bank supervision more efficient.

l7

I

Assisting the Treasury
Department in the successful roll-out of newly
redesigned currency:
Bob Musso, the Atlanta
Fed’s New Orleans
branch manager and
chairman of the Federal
Reserve System’s Cash
Advisory Group.




I

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I

Building Bridges, Building Partnerships

Cash vaults




throughout the Federal Reserve System in 1996 started to receive the U S .
Treasury’s redesigned $100 bill, which employs new technology and enhances the
integrity of U S . currency. The Federal Reserve System’s Cash Advisory Group,
which is chaired by Robert MUSSO,vice president and branch manager of the Atlanta
Fed’s New Orleans office, played an important role in the successful introduction of
these notes. Since there was no recall of the “old” $100 bills, the Cash Advisory
Group devised a plan to accelerate the return of the old notes while keeping an
adequate supply of new notes on hand to replace them. This complicated inventory
problem was handled smoothly, preventing any shortage of notes. A similar program
will be used to introduce the newly redesigned $50 bills in 1997.
At the same time the Atlanta Fed’s operations staff were heavily involved in
the new currency roll-out, they were also installing a new generation of high-speed
cash processing equipment. This new equipment, which processes cash faster than
the old equipment and also more accurately detects counterfeit and unfit currency
that must be taken out of circulation, will enable the Sixth District to continue
serving both the public and the Treasury Department efficiently.
The Atlanta Fed office also played an important intermediary role during
the Summer Olympic Games in Atlanta. In preparation for the tight security and
limited transportation access to the Atlanta Fed and banks in the city, as well as in
anticipation of the much greater need for cash in Atlanta during the two weeks of
the Games, the Atlanta office began planning more than a year in advance to make
arrangements with commercial banks and city and Olympic officials. Cash delivery
trucks had to be rescheduled and rerouted, space had to be created in the cash
vault to handle larger inventories, and enough cash had to be on hand to meet the
needs of the many Olympic visitors. Through these endeavors, the Atlanta Fed
provided a nearly invisible, yet critical, service for all the U S . citizens and visitors
from around the world who came to Atlanta for the Summer Games.

These examples o the Atlanta Fed’s work-gathering inforkaf
tion, buildingpartnershi+s, and serving as an intermedia y- are
f
on/ypart o what the Bank has done andplans to do to serve its
many communities. Nineteen nineq-six began an era o new
f
leadersh2;oat the Federal Reserve Bank ofAtlanta. Under this
f
leadershi& the Bank intends tofind new ways o enhancing its
legacy by building bridges, building partnersh+s, and bringing
people together to work on importantpub Zic interest issues that
are arising in today’s rapid& changing world.

Atlanta Fed head office directors, drawn from throughout the
Southeast, help shape monetary policy by providing the Bank
president with insights into current economic developments
derived from their business experience and community ties.

L E F T T 0 R I G H T : WILLIAMS, PAUL JONES,

LENA,HICKMAN,

Atlanta Board of Directors




KINDERMAN,

BROWN,
DAVID
JONES, RUBENSTEIN. PICTURED: SWEAT
NOT

HUGH BROWN
M.
Chairman
President and Chief Executive Officer
BAMSl Inc.
Titusville. Florida

LARRY KINDERMAN
W.
President and Chief Executive Officer
Stockham Valves & Fittings Inc.
Birmingham, Alabama

MARiA CAMILA
LENA

DANE. SWEAT
JR
Deputy Chairman
Program Director
The America Project
Atlanta, Georgia

Executive Vice President
Miami Free Zone Corp.
Miami. Florida

AND& M. RUBENSTEIN
WAYMON HICKMAN
L.

Chairman and Chief Executive Officer
Rubenstein Brothers Inc.
New Orleans, Louisiana

Chairman and Chief Executive Officer
First Farmers and
Merchants National Bank
Columbia, Tennessee

JAMES WILLIAMS
B.

DAVID JONES
R.

Chairman and Chief Executive Officer
SunTrust Banks Inc.
Atlanta, Georgia

President and Chief Executive Officer
AGL Resources Inc.
Atlanta, Georgia

Federal Advisory Council Member
D. PAUL
JONES
JR.

CHARLES RICE
E.

Chairman and Chief Executive Officer
Compass Bancshares Inc.
Birmingham, Alabama

Chairman and Chief Executive Officer
Barnett Banks Inc.
Jacksonville, Florida

Birmingham Branch Directors

PATRICM COMFTON
B.

Chairman
E-

President
Patco Inc.
Georgiana, Alabama

President
The Better Business Bureau of
Central Alabama Inc. and the
Counties of the Wiregrass
Birmingham, Alabama

MARLIN MOOREJR.
D.
Chairman
Pritchett-Moore Inc.
Tuscaloosa, Alabama

JULIAN BANTON
W.
Chairman, President and
Chief Executive Officer
SouthTrust Bank of Alabama, N.A.
Birmingham, Alabama

J. STEPHEN
NELSON
Chairman and Chief Executive Officer
First National Bank of Brewton
Brewton, Alabama

D. BRUCE
CARR
International Representative
Laborers' International Union
of North America
Gadsden, Alabama

L E F T T 0 R I G H T : MOORE,SANDERS,




NELSON,
BOOMERSHINE,
CAR&

COMPM)N,

COLUMBUS
SANDERS
President
Consolidated Industries Inc.
Huntsville, Alabama

BANTON

Birmingham branch directors visit liberty Park, the
Birmingham site selected in 1996 for a new branch building
that will replace the current structure, built in 1926.

Jacksonville branch directors pause in the branch’s lobby
on a rainy day as they gather for their monthly meeting
to discuss business and financial condiions in north and
central Florida.

L E FT T0 R I G

-

H T : W.\L.DEY, KELLY,
SMITH, KLFFIER, J O ~ E S ,HEGGESTAII,
WEST

Jacksonville Branch Directors

Jom D- RUFFIER

WILLIAM SMITH
G.
JR.

Chairman

President
Capital City Bank Group
Tallahassee, Florida

General Partner
Sunshine Cafes
Orlando, Florida

ROYCE WALDEN
B.

ARNOLDA. HEGGESTAD
Professor of Finance and Director
of Entrepreneurial Programs
University of Florida
Gainesville, Florida

Vice President
SouthTrust Securities
Orlando, Florida

TERRY WEST
R.
JUDY

R JONES

President
J.R. Jones and Associates
Tallahassee. Florida

PATRICK KELLY
C.
Chairman and Chief Executive Officer
Physician Sales & Service Inc.
Jacksonville, Florida

I


22


President and Chief Executive Officer
Jax Navy Federal Credit Union
Jacksonville, Florida

Miami Branch Directors

STEVEN SHIMP
C.

R. KIRKLANDON
Chairman
Chairman
American Bankers Insurance Group
Miami, Florida

President
0-A-K/Florida Inc.
Fort Myers, Florida

PAT TORNILLO
L.
JR
JOHNSON-STREET

-EN

Vice President of
Minority Business Development
Enterprise Florida
Miami, Florida

~

L

O

Executive Vice President
United Teachers of Dade
Miami, Florida

MICHAEL WILSON
T.

A. MIGOYA
S

President, Dade/Monroe Counties
First Union National Bank of Florida
Miami, Florida

President
Vinegar Bend Farms Inc.
Belle Glade, Florida

E. ANTHONY
NEWTON
President and Chief Executive Officer
Island National Bank and Trust Co.
Palm Beach, Florida

LE F T T0 R I G H T :

TORNILLO, LANDON, JOHNSON-STREET,
SHIMP,
NEWTON,
MIGOYA. PIClWRED:
NOT

WILSON

Miami is known for its beaches, palm trees, and tourists,
but the makeup of the Miami branch board of directorswhose members represent agriculture, labor, banking, insurance,
and economic development-reflects
interests in south Florida.

f

f



f

the diversity of business

Nashville branch directors visit the Atlanta Fed to
discuss regional and national economic conditions with
their counterDarts from other Sixth District branches.

LEFT To R I G HT:

DALTON,
MARCUM,
VAUGHN,
Lomu, SEWARD, o w , ARANT
P

Nashville Branch Directors




PAULA
LOVELL

DALEW. POLLEY

Chainan

President
First American National Bank
Nashville, Tennessee

President
Lovell Communications Inc.
Nashville, Tennessee

JOHNE. SEWARD
JR.
WILLIAMS A a JR.
E. R w
Chairman
First Knoxville Bank
Knoxville, Tennessee

JAMES DALTON
E.
JR
President and ChiefExecutive Officer
Quorum Health Group Inc.
Brentwood, Tennessee

FRANCES MARCUM
F.
Chairman and Chief Executive Officer
Micro Craft Inc.
Tullahoma, Tennessee

President and Chief Executive Officer
Paty Lumber Co. Inc.
Piney Flats, Tennessee

JACK VAUGHN
J.
President
Opryland Hospitality
& Attractions Group
Gaylord Entertainment Co.
Nashville, Tennessee

New Orleans Branch Directors

HOWARD GAINES
C.

LuclMAR~N
T.

Chairman
First National Bank of Commerce
New Orleans, Louisiana

Chairman

President
Mississippi Coast Coliseum
Commission
Biloxi, Mississippi

KAYL. NELSON
President
Nelson Capital Corp.
New Orleans, Louisiana

VICTORBUSSIE
President
Louisiana AFL-CIO
Baton Rouge, Louisiana

JO

ANGUS COOPER
R.
I1
Chairman and Chief Executive Officer
Cooperfl. Smith Corp.
Mobile, Alabama

A” SLAYDON

President
Slaydon Consultants and
Insight Productions and Advertising
Baton Rouge, Louisiana

HOWELL GAGE
N.
Chairman and Chief Executive Officer
Merchants Bank
Vicksburg, Mississippi

L E FT T0 R I G H T :

GAGE,
GAINES,
ROBERTS,SLAYDON, NELSON,
BUSSIE. PICTURED:
NOT

COOPER

St. Louis Cathedral, in the French Quarter, evokes the
history and ambience that support the tourism
industry, which New Orleans branch directors report on
together with other regional industries such as energy,
petrochemicals, and shipbuilding.

t




I,

MernbeISofthe
Mmgement Committee,
framed here by the

columns from the original
buildingthat still rnatk the
Bank's entrance, help guide
the Bank as it dealswith

I

today's changes and chd-

lenges that are affeding
the framework of the

nation's financial system.

Left to right Bo n Herr,
rw,
Caklwd, Eisenbeis, Guynn,

Oliver, ke ,Barn,
ts
Hawki, DeBeer.




t

(CHAIRMAN)

Senior Vice President

President and
Chief Executive @cer

PATRICK BARRON
K.

Senior Vice President and
Coordinating Branch Manager

ROBERT EISENBEIS
A.
Senior Vice President and
Director o Research
f

Senior Vice President

WILLIAM ESTES111
B.

CHRISTOPHERBROWN
G.

RICHARD OLIVER
R.

(VICE CHAIRMAN)

First Vice President and
Chief Operating @cer

Senior Vice President

Vice President and
General Auditor

W. RONNIE
CALDWELL
Executive Vice President

(ADVISOR)

JAMES HAWKINS
D.
Senior Vice President and
Coordinating Branch Manager

Senior Vice Presidents
FRANK CRAVEN
J.
JR.
Senior Vice President and
Director o Human Resources
f

DONALD NELSON
E.

EDMUND
WILLINGHAM

Senior Vice President

Senior Vice President and
General Counsel

B. FRANK
KING

MARYS. ROSENBAUM
Vice President

Vice Presidents




LOISC. BERTHAUME
Vice President

Vice President and
Associate Director o Research
f

RONALD ZIMMERMAN
N.

ZANE R. KELLEV
Vice President

BOBBIE MCCRACKIN
H.
Vice President and
Public Affairs Oficer

JOHN

R KERR

Vice President

JOHND. PELICK
Vice President

Vice President

Assistant Vice Presidents




EDWARD ANDREWS
C.
Assistant Vice President
JOHN H. ATKINSON
Assistant Vice President

JAMES L. BROWN
Assistant Vice President

DAVID CARR
E
Assistant Vice President
ROBERTO C m C
J.
Research W c e r
THOMAS
J. CUNNINGHAM
Research Ojker

JAYNE

Fox

Assistant Vice President and
Corporate Secretary

CYNTHIA GOODWIN
C.
Assistant Vice President
BARRY HARTIN
G.
Assistant Vice President
WILLIAM HERBERT
R
Assistant Vice President
SUSAN
HOY
Assistant General Counsel

ALBERT MARTIN I11
E.

TED REDDY
G.
I11
Assistant Vice President
MARION . RIVERS
P
I11
Assistant Vice President
WILLLAM. ROBERDS
T
Research m c e r
MELINDA RUSHING
J.
Assistant Vice President

LARRY SCHULZ
J.
Assistant V i e President
ROBERT SEXTON
T.
Assistant Vice President

Assistant General Counsel

CHAPELLE DAVIS
D.
Assistant Vice President

DANIEL MASLANEY
A.
Assistant Vice President

J. COURTNEY
DUFRIES
Assistant Vice President

D. WALL
Research W c e r

LARRY

AMELIA MURPHY
A.
Assistant Vice President

J. STEPHEN
FOLEY
Assistant Vice President

DAVID SMITH
W.
Assistant Vice President

ALVIN PILKINTON
L.
JR.
Assistant General Auditor

ADRIENNE WELLS
M.
Assistant V i e President

,

Branchofficers
ATLANTA

J A C K S O N V I L L E

N A S H V I L L E

JAMES

M. MCKEE
Vice President and
Branch Manager

JAMES D.

HAWKINS
Senior Vice President and
Coordinating Branch Manager

MELSTN PURCELL
K.
Vice President and
Branch Manager

MARIEC. GOODING
Assistant Vice President and
Assistant Branch Manager

ROBERT SLACK
J.
Vice President and
Assistant Branch Manager

LEE C. JONES
Assistant Vice President and
Assistant Branch Manager

ROBERT LOVE
A.
Assistant Vice President

CHRISTOPHER L. OAKLEY
Assistant Vice President

MARGARET THOMAS
A.
Assistant Vice President

ROBERT MCKENZIE
I.
Assistant Vice President

JEFFREY L. WELTZIEN
Assistant Vice President

JOEL

WILLIAM POWELL
R.
Assistant Vice President

KIMBERLY WINSTEL
K.
Assistant Vice President

B I R M I N G H A M

M I A M I

E. WARREN
Assistant Vice President

NEW

ORLEANS

ROBERT Musso
J.
Vice President and
Brunch Manager

JAMES T.

FREDERICKHERR
R.
Senior Vice President and
Coordinating Branch Manager

CURRY
I11
Vice President and
Brunch Manager

ANDRET. ANDERSON
Assistant Vice President and
Assistant Branch Manager

JUAN DEL BUSTO

Assistant Vice President and
Assistant Branch Manager

W. JEFFREY DEVINE
Assistant Vice President

FREDRICFULLERTON
L.
Assistant Vice President

VICKIA. ANDERSON
Assistant Vice President

EDWARD HUGHES
B.
Assistant Vice President

CHARLES PRIME
W.
Assistant Vice President

SUZANNA
J. COSTELLO

PATRICUVANDE GRAAF
D.
Assistant Vice President




Vice President

FRED Cox
D.
Assistant Vice President
ROBERT DE ZAYAS
A.
Assistant Vice President
RAUL DOMINGUEZ
(retired)
Assistant Vice President

CAROLXNHEALY
C.
Assistant Vice President

AMY S. GOODMAN
Assistant Vice President and
Assistant Branch Manager

I

Statement of Condition

(in millions)

Gold certificates
Special drawing rights certificates
Coin
Items in process of collection
Loans to depository institutions
U S . government and federal agency securities, net
Investments denominated in foreign currencies
Accrued interest receivable
Interdistrict settlement account
Bank premises and equipment, net
Other assets
Total assets

DECEMBER 1996
3 1,

DECEMBER 1995
3 1,

$

769
745
81
1,556
0
26,312
1,890
237
0
133
29

$

556
523
66
688
9
17,728
1,954
180
13,362
118
29

$

31,752

$

35,213

$

27,512

$

31,186

liabilities and Capital

LIABILITIES
Federal Reserve notes outstanding, net
Deposits
Depository institutions
Other deposits
Deferred credit items
Statutory surplus transfer due U S . Treasury
Interdistrict settlement account
Accrued benefit cost
Other liabilities

2,481
19
660

1,7ulr
31
1,033
36
511
70
11

15

64
10

$

30,912

$

34435

$

425
415

$

389
389

Total capital

$

840

$

778

Total liabilities and capital

$

31,752

$

35,213

Total liabilities
CAPITAL
Capital paid-in
Surdus

These statements are prepared by Bank management. Copies of f i l l and final financial statements, complete with
footnotes, are available by contacting the Public Affairs Department o the Federal Reserve Bank o Atlanta.
f
f




I

Statement of Income
FOR THE YEARS ENDED

(in millions)

Interest income
Interest on US. government securities
Interest on foreign currencies
Interest on loans to depository institutions

Total interest income
Other operating income
Income from services
Reimbursable services to government agencies
Foreign currency gains (losses),net
Government securities gains (losses),net
Other income

Total other operating income
Operating expenses
Salaries and other benefits
Occupancy expense
Equipment expense
Cost of unreimbursed Treasury services
Assessments by Board of Governors
Other expenses

Total operating expenses

DECEMBER 1996
3 1,

$

1,448
43
0

$

1,086
73
0

$

1,491

$

1,159

$

95
12
(163)
2
3

$

92
14
93
0
3

$

(51)

$

202

$

109
16
19
4
47
72

$

267

Income before cumulative effect of accounting change
Cumulative effect of change in accounting principle
Net income prior to distribution
Distribution of net income
Dividends paid to member banks
Transferred to surplus
Payments to U S . Treasury as interest on
Federal Reserve notes
Payments to U S . Treasury as required by statute

DECEMBER 1995
3 1,

106
13
17
3
33
81
$

1,173
0

253
1,108
(8)

$

1,173

$

1,100

$

25
36
787

$

22
48
1,030

325
$

1,173

0

$

1,100

These statements are prepared by Bank management. Copies offill and final financial statements, complete with
f
f
footnotes, are available by contacting the Public Affairs Department o the Federal Reserve Bank o Atlanta.




I

Statement of Changes in Capital

(in millions)

F 0R TH E Y E A R S E N D E D

CAPITAL. PAID-IN

Balance at January 1,1995
(6,820,342 shares)

$

341

D C M E 31, 1996, AND D C M E 31, 1995
EE BR
EE BR

SURPLUS

$

Balance at December 31,1995
(7,779,238 shares)

$

48

Net income transferred to surplus
Net change in capital stock issued
(958,896 shares)

341

TOTAL
CAPITAL

$

48

$

$

389

$

48
$

389

48

$

778

36

Net income transferred to surplus

682

36

Statutory surplus transfer to the U S . Treasury
Net change in capital stock issued
(722,057 shares)

Balance at December 31,1996
(8,501,295 shares)

$

36

$

$

425

$

$

415

36

$

840

These statements are prepared by Bank management. Copies offill and final financial statements, complete with
footnotes, are available by contacting the Public Afairs Department o the Federal Reserve Bank o Atlanta.
f
f











Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102