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A A N U N T Contents: Message from the President 2 Shaping the Future 4 Directors 18 Officers 25 Financial Statements 28 r . Jack Guynn, Atlanta Fed president and CEO (left), and Pat Barron, first vice president and chief operating officer . .. . I I M E S S A G E A F R O M T H E P R E S I D E N T TLANTA’S SKYLINE IS EMBLEMATIC OF walls of an office, in a laboratory, payments arena; moved forward in changes that have transformed or at the computer. Anticipating the providing forums for discussing national the Southeast in the past two decades. potentials of technology, globalization, and international policy issues; helped From Nashville to Miami, cities are, a seamless banking environment, and banks adjust to new regulations and taller, bigger, and more impressive than rich human resources requires close continued developing our internal ever. Stretching upward, this impressive contact with those who are most operations to provide the best service urban architecture signals the region’s immersed in the flow of activity. During possible; explored ways to enhance transition to a new plateau of economic, the past year we’ve made even greater opportunities for consumers of financial social, and cultural achievement. The efforts to keep in touch with the region’s services and provided education; and region has taken its place as an interna- industries, businesses, and financial deepened our commitment to strong tional contender with great potential, as institutions, and we’ve learned how they corporate citizenship. the 1996 Olympic Games confirmed. are growing and evolving. We’ve brought Managing change-understanding different constituencies together to the benefits and risks of innovation and responsibility for the Atlanta Fed to discuss policy issues that affect us all. clearing the way for productive transi- work actively in channeling the econom- We’ve sat down with community leaders tions-is ic, social, and technological dynamism to share their visions and qualms. We’ve world we want to move toward. In times that has carried us beyond regional and rolled up our sleeves and worked side by of rapid and dramatic change, like these, national boundaries, and promises to side with businesses, financial institu- it is critical to look beyond short-term take us further still. The future is not tions, policymakers, and neighborhoods. goals and immediate rewards and move This new status brings with it new simply something that happens-we Working with partners from through- integral to creating the kind of forward with a broader, deeper vision. create it through collaboration with oth- out the region and the nation in bank- With the help of its sources and part- ers who share our hopes and concerns. ing, business, education, government, ners, the Atlanta Fed is committed and the community, in 1997 we took to shaping the future of the economy stock of our role in the quickly evolving in the region and the nation. The Atlanta Fed‘s work of shaping the future cannot take place inside the S H A P I N G E ANTEIPATIIIQ THE FAR-REACHIWB IMPACTS OF ECONOMIC CHAWBE Hugh Brown, chairman of the Federal Reserve Bank of Atlanta Board of Dlrectors and president and CEO of BAMSI Inc. (right), explores develop ments in the space industry with NASA Space Center Administrator Roy Bridges In Cape Canaveral, Florida. T H NVISIONING THE FUTURE IS A requires firsthand understanding of complex task. A few decades transformations in the economy. The ago, people the world over were Federal Reserve Bank of Atlanta awestruck as the first human being relies heavily on the insights of its stepped onto the moon. Now, as pho- boards of directors, whose affiliations tographs return from Mars, galactic in manufacturing, finance, agricul- exploration is no longer a far-fetched ture, and other industries represent miracle but rather an intriguing fact the region’s great economic diversity. of life. The other planets of our solar Hugh Brown, chairman of the Atlanta system have become part of our Fed‘s board of directors and president world, and the boundaries of human and CEO of BAMSI Inc., in Titusville, consciousness have expanded to Florida, toured the NASA Space include them. We live in a radically Center in Cape Canaveral with Space different universe. Center Administrator Roy Bridges As our vision of what is possible has grown to include scenarios that were once the stuff of science fiction, so has our economy evolved in ways our great-grandparents could have scarcely imagined. Leaps in technology have not only changed how we produce things and brought efficiencies to the marketplace but have also transformed how we do business, pay our bills, and administer our financial resources. Hand in hand with technology come innovations in communication that have converted the world into a global village and transfigured networks for the production and distribution of goods and services. Bank deregulation, which makes it possible for financial institutions to keep pace in an environment of rapid change, has resulted in major transitions in the banking industry. Managing change effectively to maximize benefits and minimize risks to learn more about significant shifts in the space industry. Like many other agencies and enterprises, NASA has reconfigured itself to meet the challenges of the changing economic landscape. Just as the region’s industries have evolved at a rapid pace in response to economic and technological changes, so has the Atlanta Fed moved into a new era. In areas like payments and supervision and regulation, transformations are apparent; but even less obvious areas, like research, have felt the impact of technology. For example, new techniques of economic modeling created by Atlanta Fed research staff provide explicit measures of the uncertainty of forecasts and an empirically coherent framework for making policy decisions. S H A P I N G T H E - I D URING THE PAST YEAR THE ATLANTA economies that may have once seemed Fed has taken an active role distant. In February, for its annual in facilitating public discussion of far- conference in Miami on financial mar- reaching policy issues. Insulated from kets, the Atlanta Fed brought together short-term political pressures as part of a distinguished group of economists, the Federal Reserve System, the Atlanta bankers, scholars, financiers, govern- Fed can provide an open forum for ment officials, and policy analysts from fostering and framing debate about around the world to discuss “Market and topics of profound importance for the Regulatory Structures in a Global region and beyond. As boundaries among Environment.” regional, national, and international In fulfilling the Atlanta Fed‘s super- economies continue to dissolve, the visory responsibilities for U S . offices of Atlanta Fed has responded to the need banks originating in Latin America and to explore the implications of broad- the Caribbean, staff have worked to based policy decisions. continue building strong relationships The North American Free Trade with banking authorities in these areas. Agreement and its possible extension to Bank representatives conducted work- other countries represent a complicated shops and participated in training policy arena where many conflicting initiatives throughout Central and interests compete. To present the diver- South America and the Caribbean, gent views of the key players and offer treating such diverse topics as money participants a chance to question them, laundering, capital markets, and credit the Federal Reserve Bank of Atlanta analysis; they also offered training joined the Brookings Institution and the sessions in Atlanta and Miami for inter- Carter Center in the fall in hosting a national supervisors and central conference, “Freer Trade: In Whose bankers. The Atlanta Fed‘s growing Interest?” Former U.S. President Jimmy expertise in these regions, through Carter, Atlanta Fed President Jack supervisory, financial services, and Guynn, and Robert Litan, director of economic research initiatives, provides the Economic Studies Program of the a base of knowledge for the entire Brookings Institution, joined other con- Federal Reserve System. In addition, ference participants in discussing the this year the Atlanta Fed also conducted challenges and potentials of NAFTA. international training activities in Global trade also raises critical questions about the soundness of banking and financial infrastructures in China and Russia. FACIUTATING IMPORTANT POLICY DiscussioNs Former President Jimmy Carter (center), Jack Guynn, Atlanta Fed president and CEO (right), and Robert Litan, director of the Economic Studies Program at the Brookings Institution, discuss the future of NAFTA during a conference at the Carter Center. f I T GATHERING INFORMATION ON-SITE: John Seward, Nashville Branch director and president and CEO of Paty Lumber Co. Inc. (right); Georgia-Pacific plant manager Robert Newsome (left); and the Atlanta Fed's research offlcer in charge of regional research, Tom Cunningham, take a firsthand look at innovations in the \ -. manager Robert Newsome to discuss how technological innovations are on the pulse of the region’s economy. revolutionizing the industry. In this Close communication with those at operation logs are scanned by lasers the heart of the region’s industries that feed the information into com- and businesses provides Atlanta Fed puter programs, which in turn deter- researchers with information they mine the optimal way to cut each log. can’t get from just looking at The new system minimizes waste and statistics. Branch directors represent speeds delivery to customers across economic activities as widely varied the nation. as agriculture, education, heavy Understanding how change-not industry, technology, hospitality, only in technology but in the whole retail business, and labor and service structure of the economy-affects organizations as well as financial everyday work situations can help institutions. The diversity of their economists interpret statistical affiliations, concerns, and back- information and add critical insight grounds is an essential resource for about the region’s economic potential. in-depth perspectives on the region’s In addition to maintaining ongoing economic activity. contact with the Bank’s directors, Just as technology is transforming Atlanta Fed President Jack Guynn the global economy, it is also changing meets regularly with small groups of the shape of the region’s most tradi- leaders in business and the communi- tional industries. Nashville Branch ty throughout the region. Economic Director John Seward, president and research staff also gather information CEO of Paty Lumber Co. Inc., and from diverse audiences on various Tom Cunningham, vice president sectors of the economy. The informa- in charge of the regional research tion from these exchanges is a crucial group at the Federal Reserve Bank complement to formal research. of Atlanta, toured the Georgia-Pacific Corporation’s lumber mill in Warrenton, Georgia, with plant S H A P I N G T H E In addition to working with large banks, the Atlanta Fed provided special challenge to the Atlanta Fed. First, how workshops and training for midsize do we help banks make a transition to banks to help them make the most of the new banking environment? Second, the new single-charter structure. Anne how does the Fed adjust its internal DeBeer, senior vice president and head operations to provide a seamless inter- of accounting and automation, and face in a financial world where state Bill Estes, senior vice president over and even regional borders have become supervision and regulation, visited obsolete? The Atlanta Fed has stretched with Compass Bancshares CEO and beyond traditional Reserve Bank roles Atlanta Director D. Paul Jones in to smooth the way to a boundary-free Birmingham to discuss some of the banking environment. ways his institution is taking advantage Changes in the size and shape of banking have called for new regulatory, administrative, and accounting struc- of the opportunities to grow in the new banking environment. To complement the single-charter tures within the system. During the arrangement, the Federal Reserve has past year congressional legislation took also adopted a single-account structure effect that makes it possible for banks that allows banks to consolidate their to maintain one charter for all their funds management and reporting sys- branches, even those in other states tems. Atlanta Fed staff worked on-site or districts. The Atlanta Fed worked with institutions throughout the region closelywith teams from the larger banks to help them institute the new account- to assist with their transition to the new ing procedure. Fine-tuning the new account structure. In some instances process often called for day-to-day staff reworked procedures to assure that consultations and extensive training. institutions with an extensive presence in more than one district could consolidate their charters and still access services from multiple districts with no disruption of customer service. BANKlNQ ACROSS BOUNDAWES: Atlanta Director and Compass Bancshares CEO D. Paul Jones (right) discusses deregulation with Anne DeBeer, Atlanta Fed senior vice president over accountingand automation, and Bill Estes, senior vice president in supervision and regulatior PROWDIN6 LEADERSHIPIN PAYMENTS SYSIEMII: Federal Reserve Board Vice Chairman Alice Rlvlin, on a visit to the Atlanta Fed, with Me1 Purceli, vice president of the Nashville Branch, observes Willie Pearl Sims demonstrating check-ciearlngprocedures. Gregg Ehrllch (left) and Preston Hughes work In the background. I " the commission’s meetings as well as conducting regional meetings. decades from a simple paper-based While on a visit to Atlanta, Vice system of checks to a complex array Chairman Rivlin observed current of electronic possibilities. Long a operational procedures in check significant force in exploring the processing with Me1 Purcell, vice implications of electronic payments, president of the Nashville Branch. the Atlanta Fed played an important The volume of check payments at role during the past year in a study to the Atlanta Fed grew in 1997 about determine how the Federal Reserve 10 percent. can best serve in this rapidly diversi- Assessing the soundness of new fylng area. In a series of meetings payments alternatives and making around the country, Alice Rivlin, vice consumers aware of risks and chairman of the Board of Governors potentials are important aspects of of the Federal Reserve System, took the Fed‘s task. This role has taken the question to bankers and other the Atlanta Fed beyond US.borders stakeholders who deal with payments to work with central bankers in on a daily basis. Responding to a survey that proposed five scenarios with varying degrees of Fed involvement, from withdrawing from pay- Latin and Central America and the transactions. Staff from the ments altogether to assuming a Birmingham and Miami branches greater leadership role, participants formed a team to educate bankers, called for the Fed to lead the way in Spanish, about the new currency in developing and integrating new released in early 1997 and the payments alternatives. availability of Fed services. The Atlanta Fed contributed significantly to the Rivlin Commission’s work through participation in the scenario team and hosting two of Caribbean, where U.S. dollars are used extensively in business S H A P I N G M TH AKING SURE THAT CONSUMERS centers-the Southeast Louisiana are educated about the Black Chamber of Commerce new banking environment and remov- Women’s Business Center and ing obstacles that keep them from the Women Entrepreneurs for achieving their full economic poten- Economic Development-to tial were important aspects of the the potential of entrepreneurship explore Atlanta Fed‘s mission in 1997. In as a means to help women move response to recent statistics that from welfare to work. Fed Governor indicate the extraordinary growth of Susan Phillips joined New Orleans businesses owned by women during Branch Director Jo Ann Slaydon and the 1980s, ten Federal Reserve Banks workshop participants-a selected around the nation joined with the group of business owners, lenders, National Women’s Business Council financial regulators, and intermedi- and the US.Small Business aries who help welfare recipients Administration to host a series of make a transition to the workforce. workshops to help promote the The Atlanta Fed also hosted a growth of women-owned enterprises. public hearing in Atlanta-one of One aspect of the workshops involved three in the country-on assessing banks’ credit-scoring in Lending Act amendment, which processes to see if they provide an attracted participants to discuss accurate gauge of women’s creditwor- how home equity lending disclosure thiness as small business owners. requirements might be improved. The New Orleans Branch of the Atlanta Fed partnered with two Louisiana-based women’s business a Truth I EXPLORINGTHE P O E M OF Advertising (left), talk with WOMEN AS m N E l l R S Cathy Harris, president of Federal Reserve Board C. Hanis Companies Inc. (second Governor Susan Phillips from left), and Judy Watts, (second from rlght) and president and CEO of Agenda New Orleans Branch Director for Children, on their way to Jo Ann Slaydon, president a wotlshop hosted by of Slaydon Consultants and the New Orleans Branch. insight Productions and E MIKlwQ A D -I IN COMMUNmEs: Atlanta Fed volunteers Cheryl Woodie (left) and Emily Graham and children from the neighborhood pitch in to help make a dream come true for Atlanta’s Reynoldstown community. . I I S H A P I N G in Comrtllrnrtv THE T spaghetti dinners and other fundrais- always been a high priority at the programs. The New Orleans Branch Atlanta Fed, but in 1997 it assumed partnered with local financial institu- an even more important place in tions in setting up simulated "Finance the Bank's vision. Understanding Centers" that provide a business the region's people, its cities, towns, environment enabling students to and neighborhoods, its problems learn about business and banking. AKING AN ACTIVE ROLE IN THE 1 region's communities has and potentials, calls for hands-on ers, and initiated Junior Achievement Participating in community involvement. The Reynoldstown projects creates links beyond the Theater project in Atlanta was one neighborhoods and groups that are of several initiatives around the served. Fed employees get to know region that took Bank employees into other civic leaders, local business the community. Atlanta Fed staff groups, and service organizations helped erect the stage and backdrops that work with diverse segments of for a two-week summer theater festi- the population. Employees also get val, sold tickets, and served as ushers to know each other better. Building, to help this neighborhood raise money painting, teaching, or mentoring, for improvements. employees share experiences that Federal Reserve branches around reinforce our organization's commit- the region have partnered with schools ment to corporate citizenship. to provide support and encouragement Working side by side with those for students, teachers, and parents. In determined to bring out the best in 1997 the Nashville Branch celebrated their communities inspires us to its twelfth year of partnership with a continue doing our best as partners local elementary school, where bank in shaping the future. staff have maintained an ongoing tutoring program as well as helped mulch nature trails, sponsored B O A R D O F D I Hugh M. Brown chairman President and Chief Executive Officer BAMSI Inc. Titusville, Florida Waymon L. Hlckman Chairman and Chief Executive Officer First Farmers and Merchants National Bank Columbia, Tennessee David R. Jones Deputy Chairmun President and Chief Executive Officer AGL Resources Inc. Atlanta, Georgia D. Paul Jones Jr. Chairman and Chief Executive Officer Compass Bancshares Inc. Birmingham, Alabama Larry W. Klnderman President and Chief Executive Officer Stockham Valves & Fittings Inc. Birmingham, Alabama Juanita P. Baranco Executive Vice President Baranco Automotive Group Lilburn, Georgia LEFT TO Maria Camlla Leiva Executive Vice President Miami Free Zone Corp. Miami, Florida Howard L. McMlllan Jr. President and Chief Operating Officer Deposit Guaranty National Bank Jackson, Mississippi John Wleland President John Wieland Homes Inc. Atlanta, Georgia RIOOT: Wleland, Brown, Hlckman, Leiva, Baranco, Paul Jones Not pictured: David Jones, Klnderman. McMlllan i 1 dd 1 L k - L r D. Bruce carr Chairman Labor-Relations Liaison Laborers’ District Council of Alabama Gadsden, Alabama Patricia B. Compton President Patco Inc. Georgiana, Alabama W. Charles Mayer 111 J. Stephen Nelson Senior Executive Vice President AmSouth Bancorporation President, Alabama Banking Group AmSouth Bank Birmingham, Alabama Chairman and Chief Executive Officer First National Bank of Brewton Brewton, Alabama Marlin D. Moore Jr. Chairman Pritchett-Moore Inc. Tuscaloosa, Alabama Columbus Sanders President Consolidated Industries Inc. Huntsville, Alabama V. Larkin Martin Managing Partner Martin Farm Courtland, Alabama LEFT TO RIEHT: Sanders, Mayer, Compton, Carr, Moore, Martin, Nelson A I I 1 i 1 1 A i 1 1 I I ‘ Patrick C. Kelly Ghainnan Chairman and Chief Executive Officer PSSporld Medical Inc. Jacksonville, Florida Arnold A. Heggestad Professor of Finance and Director of Entrepreneurial Programs University of Florida Gainesville, Florida LEFT TO Royce B. Walden Judy R. Jones President J.R. Jones and Associates Tallahassee, Florida Vice President SouthTrust Securities Orlando, Florida Marsha G. Rydberg Partner Foley & Lardner Tampa, Florida Terry R. West President and Chief Executive Officer Jax Navy Federal Credit Union Jacksonville, Florida William G. Smith Jr. President Capital City Bank Group Tallahassee, Florida RIGHT: West, Walden, Kelly, Rydberg, Heggestad, Jones Not pictured: Smith I i 1 I I I D I R E B R A N C H I Kaaren Johnson-Street R. Kirk Landon E. Anthony Newton Chairman Vice President of Minority Business Development and Urban Initiatives Enterprise Florida Miami, Florida Chairman American Bankers Insurance Group Miami, Florida Past President and Chief Executive Officer Island National Bank and Trust Co. West Palm Beach. Florida Carlos A. Migoya President, Dade/Monroe Counties First Union National Bank of Florida Miami, Florida D. Keith Cobb Past Vice Chairman and Chief Executive Officer Alamo Rent A Car Inc. Fort Lauderdale, Florida LEFT TO James W. Moore President Gulf Utility Co. Estero. Florida RIQHT: Migoya, Landon, Cobb, Johnson-Street, Sodders, Newton, Moore L L 1 Y l1 I II 1 D Mark T. Sodders President Lakeview Farms Inc. Pahokee. Florida Frances F. Marcum James E. Dalton Jr. chairman President and Chief Executive Officer Quorum Health Group Inc. Brentwood, Tennessee Chairman and Chief Executive Officer Micro Craft Inc. Tullahoma, Tennessee Dale W. Polley President First American National Bank Nashville, Tennessee Paula Lovell President Lovell Communications Inc. Nashville, Tennessee John E. Seward Jr. President and Chief Executive Officer Paty Lumber Co. Inc. Piney Flats, Tennessee LEFT TO RIEHT: Marcum, Polley, Dalton, Lovell, Seward Not pictured: Vaughn, Walker CI 4 1 I 1 L Jack J. Vaughn President Hospitality & Attractions Group Gaylord Entertainment Co. Nashville, Tennessee L.A. Walker Jr. Chairman, President, and Chief Executive Officer First National Bank and Trust Co. Athens, Tennessee B R A N C H D I R E Jo Ann Slaydon Howell N. Gage R. Glenn Pumpelly Chairmun President Slaydon Consultants and Insight Productions and Advertising Baton Rouge, Louisiana Chairman and Chief Executive Officer Merchants Bank Vicksburg, Mississippi President and Chief Executive Officer Pumpelly Oil Inc. Westlake, Louisiana Howard C. Gaines Lucimarian T. Roberts Past President Mississippi Coast Coliseum Commission and Community Advocate Biloxi, Mississippi Angus R. Cooper II Chairman and Chief Executive Officer Cooperfl. Smith Corp. Mobile, Alabama LEFT TO Chairman First National Bank of Commerce New Orleans, Louisiana Kay L. Nelson President Nelson Capital Corp. New Orleans, Louisiana RIQHT: Galnes, Nelson, Cooper, Slaydon, Gage, Roberts, Pumpelly ‘ 1 t I‘ t A D V I S O R Y C O U N C I L S Federal Advisory Council Member Stephen A. Hansel President and Chief Executive Officer Hibernia National Bank New Orleans, Louisiana Small Business, Agriculture, and Labor Advisory Council Luis Ajamil Principal Bermello, Ajamil & Partners Inc. Miami, Florida Whitney Johns Chief Executive Officer Whitney Johns & Co. Nashville. Tennessee Michael E. Bennett UAW MAC Advisor Saturn Corp. Spring Hill, Tennessee Willie S. King Jr. Owner/Operator King’s Transmission Service King’s Funeral Home King’s Meter Reading Service Lake Charles, Louisiana Peter E. Black Chief Executive Officer Kliklok Corp. Decatur, Georgia Benjamin F. Burkett Owner B&B Farms Petal, Mississippi Clark S. Coogan Chief Financial Officer Physician Sales & Service Inc. Jacksonville, Florida John Harris President Corporate Environments Inc. Atlanta, Georgia John Hendricks President Alabama Cryogenic Engineering Inc. Huntsville. Alabama Claude Leach President Sweet Lake Land and Oil Co. Inc. and North American Land Co. Inc. Lake Charles, Louisiana Marilyn P. Lenard President Florida AFL-CIO Tallahassee, Florida Richard A. Machek General Manager Mazzoni Farms Inc. Boynton Beach, Florida James E. Smith Vice President District 3 Communications Workers of America Decatur, Georgia LaVegne L. Turpin James A. Hughes Tree Farmer Cottonwood, Alabama Owner/Manager LaVergne’s TeleMessaging Alexandria, Louisiana M A N A G E M E N T C O M M I T T E E Jack Guynn Chairman President and Chief Executive Officer Patrick K. Barron Vice Chairman First Vice President and Chief Operating Officer W. Ronnie Caldweli Executive Vice President Anne M. DeBeer Senior Vice President Robert A. Eisenbeis Senior Vice President and Director of Research William B. Estes 111 Senior Vice President James D. Hawkins Senior Vice President Frederick R. Herr Senior Vice President Richard R. Oliver Senior Vice President Christopher 0. Brown Adviser Vice President and General Auditor O T H E R C O R P O R A T E S E N I O R V I C E O F F I C E R S P R E S I D E N T S Frank J. Craven Jr. Donald E. Nelson Edmund Willingham Senior Vice President Senior Vice President and General Counsel Lois C. Berthaume John R. Kerr John D. Pellck Vice President Vice President Vice President Senior Vice President and Director of Human Resources V I C E P R E S I D E N T S Suzanna J. Costello B. Frank King Mary S. Rosenbaum Vice President Vice President and Associate Director of Research Vice President Bobble H. McCrackin Vice President Zane R. Kelley Ronald N. Zlmmerman Vice President Vice President and Public Affairs Officer A S S I S T A N T Edward C. Andrews Assistant Vice President John H. Atklnson Assistant Vice President V I C E P R E S I D E N T S Jayne Fox Alvin L. Pilkinton Jr. Assistant Vice President and Corporate Secretary Assistant General Auditor Cynthia C. Goodwin Assistant Vice President John S. Branigin Assistant Vice President Barry 0. Hartin Assistant Vice President James L. Brown Assistant Vice President David F. Carr Assistant Vice President Roberto J. Chang William R. Herbert (resigned) Assistant Vice President Susan Hoy Assistant General Counsel Research Officer Ted 0. Reddy 111 Assistant Vice President Marion P. Rivers 111 Assistant Vice President William T. Roberds Research Officer Melinda J. Rushing Assistant Vice President Larry J. Schulz Assistant Vice President R e n d J. Leggett Thomas 1. Cunningham Assistant Vice President Research Officer Robert T. Sexton Assistant Vice President Albert E. Martin 111 Chapelle D. Davis Assistant General Counsel Assistant Vice President David W. Smith Assistant Vice President Daniel A. Masianey J. Courtney Dufries Assistant Vice President Assistant Vice President Larry D. Wall Research Officer Marie E. McNally Gerald P. Dwyer Assistant Vice President Assistant Vice President Adrienne M. Wells Assistant Vice President Amelia A. Murphy J. Stephen Foley Assistant Vice President Assistant Vice President Kimberly K. Winstel Assistant Vice President B R A N C H O F F I C E R S NASHVILLE ATLANTA JACKSONVILLE James M. McKee James D. Hawkins Melvyn K. Purcell Vice President Senior Vice President Vice President Marie C. Goodlng Robert J. Slack Lee C. Jones Assistant Vice President and Assistant Branch Manager Vice President Assistant Vice President and Assistant Branch Manager Christopher N. Alexander Assistant Vice President and Assistant Branch Manager Annita T. Moore Christopher L. Oakley Assistant Vice President Assistant Vice President Robert A. Love Darrin G. Finley Joel E. Warren Assistant Vice President Assistant Vice President Assistant Vice President Robert 1. McKenzie Jeffrey L. Weltzlen (resigned) Assistant Vice President Assistant Vice President Wllllam R. Powell Assistant Vice President BIRMINGHAM Robert J. Musso Vice President James T. Curry 111 Amy S. Goodman Vice President Senior Vice President Assistant Vice President and Assistant Branch Manager Andre T. Anderson Vicki A. Anderson Vice President Assistant Vice President Margaret A. Thomas Fred D. Cox Assistant Vice President and Assistant Branch Manager Assistant Vice President Fredrlc L. Fullerton Assistant Vice President Robert A. de Zayas Assistant Vice President Carolyn C. Healy Charles W. Prime Assistant Vice President ORLEANS M I A M I Juan del Busto Frederick R. Herr NEW Assistant Vice President Assistant Vice President and Assistant Branch Manager W. Jeffrey Devine Assistant Vice President Edward B. Hughes Assistant Vice President Patricia D. Van de Graaf Assistant Vice President S T A T E M E N T OF C O N D I T I O N (in rniuionsj December 31,1997 December 31,1996 Assets Gold certificates s 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 lnterdistrict settlement account Bank premises and equipment, net Other assets 723 602 45 1,287 163 28,961 1,574 274 793 132 23 81 1,556 0 26,312 1,890 237 0 133 29 Liabllltles rmd capital Liabilities Federal Reserve notes outstanding, net $ 30,390 $ 27,512 Deposits Depository institutions 2,081 17 1,210 95 0 74 12 Other deposits Deferred credit items Statutory surplus transfer due U.S. Treasury Interdistrict settlement account Accrued benefit cost Other liabilities 1,708 31 1,033 36 511 70 11 8 33,879 8 30,912 $ 359 339 $ Total cspltd 8 698 8 425 415 840 T o t d IlabilW and capital 8 34,s77 8 S11752 Total IiabllW Capital Capital paid-in Surplus These statements are prepared by Bank management. Copies of full and final financial statements, complete with footnotes, are available by contactingthe Public Affairs Department of the Federal Reserve Bank of Atlanta. STATEMENT O F INCOME {in millions) For the years ended December 31,1997 December 31,1996 interest Income Interest on U S . government securities $ Interest on foreign currencies Total interest income 8 1,679 35 1,714 $ 1,448 43 8 1,491 $ 109 16 19 4 47 72 Other operating income (IOU) Income from services Reimbursable services to government agencies Foreign currency losses, net Government securities gains, net Other income Total other operating iom Operating expenses Salaries and other benefits $ Occupancyexpense Equipment expense 115 15 20 Cost of unreimbursed Treasury services 38 72 Assessments by Board of Governors Other exDenses Total operating expenses Net income prior to dirtrlbution 8 280 8 267 8 1,830 8 1,173 23 $ 25 36 787 Dlstrikrtion of net income Dividends paid to member banks $ Transferred from surplus (66) 0 Payments to U.S. Treasury as interest on Federal Reserve notes Payments to U.S. Treasury as required by statute $ 1,373 1.330 325 1.173 These statements are prepared by Bank management. Copies of full and final financial statements, complete with footnotes, are available by contactingthe Public Affairs Department of the Federal Reserve Bank of Atlanta. STATEMENT O F CHANGES (in millions) I N for CAPITAL the years ended December 31,1997,and December 31,1996 Capital Paid-in B a b W e at Jmucry 1,199B (7.8 million shares) Surplus Total Capital $ 389 $ 389 $ 778 $ 425 $ 415 $ 840 Net income transferred to surplus Statutory surplus transfer to the U.S. Treasury Net change in capital stock issued (0.7 million shares) Balmce at December 31,1998 (8.5 million shares) Net income transferred from surplus (66) (66) Statutory surplus transfer to the U.S. Treasury (10) (10) Net change in capital stock redeemed (1.3 million shares) Balsnce at December 31,1997 (7.2 million shares) $ (66) $ $ 359 $ $ 339 $ (66) 698 These statements are prepared by Bank management. Copies of full and final financial statements, complete with footnotes, are available by contactingthe Public Affairs Department of the Federal Reserve Bank of Atlanta. T HE FEDERAL RESERVEBANK OF Atlanta is one of twelve regional Reserve Banks in the United States that, together with the Board of Governors in Washington, D.C., make up the Federal Reserve System-the nation’s central bank. Since its establishment by an act of Congress in 1913, the Federal Reserve System’s primary role has been to foster a sound financial system and a healthy economy, To advance this goal, the Atlanta Fed helps formulate monetary policy, supervises and regulates banks and bank holding companies, and provides financial services to depository institutions and the federal government. Through its six facilities in Atlanta, Birmingham, Jacksonville, Miami, Nashville, and New Orleans, the Federal Reserve Bank of Atlanta serves the Sixth Federal Reserve District, which comprises Alabama, Florida, Georgia, and parts of Louisiana, Mississippi, and Tennessee. Head Office and Atlanta Branch 104 Marietta Street, N.W. Atlanta, Georgia 30303-2713 Birmingham Branch 1801 Fifth Avenue, North Birmingham, Alabama 35203-2104 Jacksonville Branch 800 West Water Street Jacksonville, Florida 32204-1616 Miami Branch 9100 N.W. 36th Street Miami, Florida 33178-2425 Nashville Branch 301 Eighth Avenue, North Nashville. Tennessee 37203-4407 New Orleans Branch 525 St. Charles Avenue New Orleans, Louisiana 70130-3480 For additional copies contact: Public Affairs Department Federal Reserve Bank of Atlanta 104 Marietta Street, N.W. Atlanta, Georgia 30303-2713 404.521.8020 http://www.frbatlanta.org @ Printed on Recycled Paper