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Contents:

Message from the President 2




Shaping the Future 4

Directors 18

Officers 25

Financial Statements 28




r

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Jack Guynn, Atlanta Fed
president and CEO (left),
and Pat Barron, first
vice president and
chief operating officer

. ..

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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

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

Federal Reserve Bank of
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.




Center in Cape Canaveral with Space

different universe.

Atlanta Board of Dlrectors and

Florida, toured the NASA Space

include them. We live in a radically

Hugh Brown, chairman of the

and CEO of BAMSI Inc., in Titusville,

consciousness have expanded to

IMPACTS OF ECONOMIC CHAWBE

Fed‘s board of directors and president

world, and the boundaries of human

ANTEIPATIIIQ THE FAR-REACHIWB

Hugh Brown, chairman of the Atlanta

system have become part of our

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

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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

s
region and beyond. A 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

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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

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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

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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

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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

o Slaydon Consultants and
f

the New Orleans Branch.

insight Productions and

E




MIKlwQ A D
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IN C M U m s
O M N E:

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.

.
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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

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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

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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

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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

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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

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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




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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

NEW

ORLEANS

Robert J. Musso

BIRMINGHAM

Vice President

James T Curry 111
.

Assistant Vice President

M I A M I

Amy S. Goodman

Vice President

Juan del Busto
Frederick R. Herr
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




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 o net income
f
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, December 31,1996
and
Capital Paid-in

B a b W e a Jmucry 1,199B
t
(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 a December 31,1998
t
(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










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