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-^^e Sank Loafs V^f0 ^ § The Federal Reserve Bank of St. Louis Annual Report 1984 The Federal Reserve Bank of St. Louis, one of 12 regional Federal Reserve Banks in the United States, serves the Eighth Federal Reserve District. The Eighth District comprises the state of Arkansas and parts of Illinois, Indiana, Kentucky, Mississippi, Missouri and Tennessee. In addition to the head office in St. Louis, there are three branch offices located in Little Rock, Louisville and Memphis. Table ofCohfen 1 1984: A Year of Strategic Planning 3 The Economy and Monetary Policy 4 Supervision 5 Services 15 Financial Summary 18 Directors and Officers strategic Planning PF.B 2. 0 1985 Nineteen eighty-four was a year in which the Federal Reserve Bank of St. Louis took stock of itself and made careful plans for the future. After three years of transition to a new financial environment following the Monetary Control Act of 1980, we took a long-term look at our role within the Federal Reserve System and our responsibility to our various constituencies. This process began with a strategic planning conference in May, a two-day event that emphasized a multi-year approach to planning for the fijture. That conference mapped out the long-term path along which the Bank will travel in the years ahead. To make the path smoother, some major improvements in the organization were put into place. Most fundamental among the changes was a Bankwide structural reorganization that established more direct lines of authority and instituted greater eflflciencies in our operations. These structural modifications, designed to minimize the distance between organizational decision-making levels, permit Bank management to designate responsibility, authority and accountability more clearly for each Bank function. In addition, the new structure has improved the effectiveness of the District's performance appraisal process. Cost control measures were also strengthened in 1984. To facilitate tighter budget accountability, the Financial Services Division installed new management information software to assist in the preparation of the District's budget. The system will be used in 1985 to control ongoing expenses and to prepare monthly accountability reports for Bank management. In other cost containment measures, the District's health plan was redesigned and the program was placed on a self-insurance basis. In addition, several activities were consolidated over the year at the St. Louis, Little Rock, Louisville and Memphis offices to make optimal use of space and to permit leasing of excess space. Maintenance of the highest level of professionalism among our staff was advanced through the establishment in 1984 of a Quality Assurance Program that refocused our energies on the constituencies we serve. Quality measures were established throughout the District and cash awards instituted for those employees who provide outstanding service to our customers. To enhance the St. Louis office as an inviting place for outsiders to visit and employees to work, an extensive renovation and refurbishing program was undertaken. The Bank renovated the dining and lounge facilities, the executive offices and the Board Room. A conference center, including an auditorium and seminar rooms, was also constructed. ;;-*'.v'i;-/^-,'-v,'»* 1984: A Year of Strategic Planning The newfecilitieswere put to good use in 1984 as our expanded outreach program unfolded. The outreach program consisted of a far-ranging schedule of luncheons, meetings, workshops, press seminars and special events designed to enhance the Bank's close relationship with the business andfinancialcommunity in the District. These events fulfilled a twofold purpose: to facilitate public understanding of the Federal Reserve and to gather input from the diverse elements of our District economy. Economic conditions in the District received a greater share of the Bank's attention in 1984. Two economists specializing in regional analysis joined the St. Louis Fed this year. TTiey have begun developing a regional data base and have established informational contacts around the District in order to enhance the quality of regional analysis that we publish. Economically, the District fared relatively well in 1984. Business activity expanded for the second year in a row, although the expansion shows preliminary signs of slowing. Although there were pockets of poor performance, particularly in the farm sector, overall the major economic indicators for most industries painted a bright picture. Inflation remained low, while unemployment and interest rates declined. The supervision of banking continued to be a complex task as new banking legislation and a revision of holding company regulation fueled the trend to bank merger and acquisition. Another trend - this one to regional interstate banking - took hold in the Eighth District in 1984. In general, it was a good, though not spectacular, year for most banks. Four directors, one from each office, retired in 1984, and we wish to acknowledge a debt of gratitude to them: George M. Ryrie, St. Louis; Gordon E. Parker, Little Rock; Sister Eileen M. Egan, Louisville; and William M. Matthews, Jr., Memphis. We would also like to welcome the four new directors who will join us in 1985: H. L. Hembree, chairman of the board and chief executive officer, Arkansas Best Corporation, and director of The Merchants National Bank of Fort Smith, Fort Smith, Arkansas; Wayne Hartsfield, president and chief executive officer. First National Bank, Searcy, Arkansas; Raymond M. Burse, president, Kentucky State University, Frankfort, Kentucky; and John R Dulin, president. First Tennessee Bank N.A., Memphis, Tennessee. In official changes over the year, Ben C. Wade was designated senior vice president in charge of Administration, Patricia A Tarbutton arrived from the San Francisco Fed to head Human Resources as vice president, and there were several functional officer promotions. Although official changes in the Bank in 1984 were few, there was an important change at the top. At year-end Theodore H. Roberts resigned to accept the position of president and chief executive officer of a majorfinancialinstitution in Chicago. Once again, the year was a challenging one for the Federal Reserve Bank of St. Louis. How we met these challenges and what plans we made for the ftiture are detailed in the remainder of this report. December 31,1984 "Economicalfyy the Districtfared relatively well in 1984. Business activity expanded Jbr the second year in a row, although the expansion shows preliminary signs of slotving." g^---^ The adjusted monetary base, a key determinant of the growth of M1, moved in a similar pattern, growing 9 percent in the first half and 5.6 percent in the last half of the year. M2 and M3 growth were much steadier over the year: M2 ended the year in the middle of its targeted range while M3 somewhat exceeded its 1984 target. Movements in the discount and federal fijnds rates paralleled those in market interest rates over the year. The Federal Reserve raised the discount rate from 8.5 percent to 9 percent in April, during a period in which interest rates were generally rising, then lowered it back to 8 percent at the end of the year, when rates were generally declining. The expansion continued in 1984, The economic expansion in the Eighth at an even more rapid pace than last District reflected that in the nation, year. The course of the expansion this although, like last year, it grew at a someyear was decidedly uneven: the economy what slower rate. The District unemploysurged ahead strongly during the first ment rate averaged about 1 percentage half and then slowed significantly over point above that for the United States; the last half. For 1984 as a whole, the real payroll employment in the District grew gross national product grew at a 6.8 1.7 percent through November, compercent rate, substantially higher than its pared with 4 percent for the nation. growth last year when it was initially Agricultural output remains one of the recovering from the 1981-82 recession. principal weak spots in both the District Inflation remained moderate in 1984: and the nation. There were major reducprices rose 3.7 percent over the year. tions in acres planted and declines in These increases were only slightly lower crop production nationwide for all crops than those in 1983 but considerably below the 8 percent annual inflation rate during the current marketing year. District farmer crop and livestock receipts from 1980 to 1982. The pattern of interest rate movements declined from their 1983 levels; these declines were nearly twice as large as in financial markets in 1984 followed those for U.S. farmers as a whole. closely the ups and downs in the rest of Next year will be a crucial one for the the economy. The continuing strength of U.S. economy. The recovery is now two the recovery in the fii^t half of 1984 years old and, as usual for this stage of produced upward pressure on rates; by the expansion, economic growth is the end of June, both short- and longterm interest rates were nearly 200 basis receding toward its "norrnal" longer-run range of 3 to 4 percent annual growth points higher than they had been at the in real GNR start of the year. The slowing in the Whether such growth can be maineconomy in the second half of 1984, tained depends on the policies that will however, was accompanied by declining be pursued and on the absence of interest rates; by the end of the year, economic shocks that may materialize interest rates had Mien below their from non-policy sources. Clearly, federal beginning-of-the-year levels. In February 1984, the Federal Reserve government deficits cannot continue at current levels for an indefinite period of announced the following annual target time without causing damage to ecoranges for growth of the monetary nomic growth. Nor can balance of trade aggregates in 1984: M1 - 4 to 8 percent; deficits of recent magnitude be sustained M2 - 6 to 9 percent; M3 - 6 to 9 percent. for years to come. The resolution of these Ml, which had grown by 10 percent in problems, accompanied by steady and 1983, rose by only 5 percent in 1984, non-inflationary monetary policy, will near the bottom of its target range. Its substantially increase the probability that growth over the year was reflected in the economic growth wiU continue without pattern displayed by financial and real interruption, and that inflation wiU be sector activity, rising swiftly during half of slow^ly eliminated. the year and slowing sharply thereafter. We Economy and Monetary Policy I I as I I I I REAL GROVmi, UNEMPLOYMENT AND INFLATION • • • i Real GNP Growth • • Inflation Unemployment Rate Ml GROWTH AND SHORT-TERM INTEREST RATES mmm MI Growth • • Discount Rate Federal Funds Rate Reflecting the expanding economy, earnings of District banks showed definite improvement in 1984. Although the number of problem banks increased, the industry as a whole appeared healthier, with the average return on assets moderately higher than in 1983. Deregulation of financial institutions has reached a plateau. Most of the legislation permitting payment of market interest rates has been implemented. Meanwhile, legislation proposing expanded powers was considered but not passed by the 98th Congress. Lacking statutory authorization to enter new lines of business, banks are aggressively enhancing and marketing existing products. The trend to variable-rate lending continued strong over the year in response to reluctance of depositors to commit lunds for long periods of time. Since banks must more closely match their assets and liabilities in both maturity and rate to reduce risk, they will most likely be unwilling to ojQFer long-term loans at fixed interest rates for some time to come. Many banks controlled costs in 1984 through merger. High "brick and mortar" costs, plus the costs of additional personnel, discouraged the building of new branches. Faced with these high costs and spurred on by new banking legislation, many banks applied for mergers, consolidating their loan, accounting and automation at the head office, while converting many acquired banks into branches. Mergers and acquisitions were made easier by two factors in 1984: new banking legislation and the revision of Regulation Y Several pieces of major legislation, passed in Eighth District states over the past one and one-half years, aJQFected the industry this year: revised merger and branching laws in Tennessee and Missouri, new multibank holding company laws in Arkansas and Kentucky, and new regional interstate banking legislation in Kentucky. TTie latter trend could prove to be the prelude to nationwide interstate banking if it continues. As part of a long-term regulatory improvement project, the Federal Reserve Board revised Regulation Y early in 1984 to simplify and abbreviate the process of applying for a bank holding company. These changes lessened the burden on bank holding company applicants. The Regulation Y revisions also lessened some of the restrictions on nonbank activities. 4 Supervision As a result, the volume of bank holding company applications continued at a high level. In 1984, bank holding company applications filed in the Eighth District totaled 243. The number of one-bank holding companies in the District increased from 413 to 498, while multibank holding companies increased from 47 to 66, mostly as a result of new legislation in Arkansas and Kentucky. In total, the number of bank holding companies increased 23 percent to 564. To handle the increased workload, the bank holding company staflF was increased, and microcomputers were used more extensively in analyzing existing and proposed bank holding companies. With the rapid pace of bank holding company formations in recent years, bank holding company inspections also jumped in 1984. Over 120 holding companies were inspected in 1984, with about 170 inspections projected for 1985. Despite the increase, our supervision staff has kept pace with Systemwide inspection frequency guidelines. In general, since the Eighth District is diversified economically, banks performed well over the year. There were pockets of problem banks, however, usually in areas with substantial agricultuml loans. Four District banks failed in 1984. The Federal Reserve discount window was busier in 1984 than in recent years. Both the number of borrowers and the amount of borrowing increased. Much of this increase came from nonmember banks, who continue to exercise the borrowing privilege granted them by the Monetary Control Act of 1980. The amount of seasonal borrowing at the discount window also increased in 1984. YEAR-END FIGURES I n I I III I 1980 1981 1982 1983 1984 BANK HOU)ING COMPANY FORMATION • • • i Multibank holding companies • ^ • i One-bank holding companies Also during 1984, MICRsort, a cash management service for payor institutions, was e:jq)anded. As a subscriber to the custom-tailored MICRsort service, customers receive timely account-total information and increased operating and cost efficiencies. In 1985, we will extend and accelerate the delivery of fundsrelated information available through MICRsort. Services Transfers of Funds Check "ACH vied tvith the noncash collection service for the fastest-growing Fed service over the year." Processing We processed more than 532 million checks in 1984, with a value of approximately $336 billion. Also, after being chosen as the national processing site for postal money orders, we processed an additional 119 million items. During the year, we made virtually no price increases in the check collection service and no ftirther price increases are anticipated for 1985. Funds availability was enhanced by improved transportation arrangements and the development of new products. In the St. Louis area, improved check deposit deadlines provide up to two more hours for depository institutions to collect country checks and still receive the same availability. A low-dollar deposit program provides for a more costeflfective means of collecting small dollar checks. Another new service, offered currently on a pilot basis, provides for the accelerated reclearing of returned checks valued under $100. We also initiated a Systemwide program in 1984 to reduce float and streamline the payments mechanism. This service, known as the high-dollar group sort, offers an accelerated collection service for high value checks drawn on institutions outside our city zones. Transfers of funds continued to grow in 1984, registering close to 3 million transfers, with a dollar value of 12.6 trillion. Also in 1984, the number of direct, computer-to-computer hook-ups for banks with large funds transfer volume was expanded. By the end of its second year, FEDNET, our dial-up, on-line funds transfer network, had almost 200 customers. One modification in the basic FEDNET service in 1984 was the elimination of minimum volume requirements, a change that enabled small customers to subscribe to the service in greater numbers. Also over the year, three new FEDNET applications were added. An economic broadcast service provides each customer with up-to-date statistics on important economic indicators, both national and District, such as interest rates, money growth, deposit and loan totals, unemployment and gross national product. The Treasury Tax and Loan call notification service electronically provides customers with information on current and pending calls from the Treasury that will aflfect their reserve account balances. Both these services are free of charge to FEDNET and other on-line customers. A third new FEDNET application, the cash management service, offers timely account information on a variety of transactions, such as selected cash letter and automated clearinghouse debits and credits. Scheduled for next year are several new FEDNET applications - including electronic delivery of ACH transactions and software enhancements to keep FEDNET a state-of-the-art electronic service. rMi Services Securities In securities services, the biggest news was a remarkable increase in noncash collection volume. The number of coupons collected this year was over 320,000, up 100 percent from last year. This volume increase, in part, was the result of a new noncash mixed deposit option and improved availability on coupon collections. Tlie year also witnessed thefinalphase on the automation of the savings bond processing system. The new system improves both the quality and the efficiency of the savings bond service. In our definitive safekeeping service, prices were lowered, and, as a result, significant gains were made in attracting new customers. Automation To support priced services, vs^e spent much of 1984 developing an advanced delivery system designed to speed electronic communications between the Bank and our customers. This system is scheduled for implementation in 1985. Cash Also during the year, on-line storage Volumes were up substantially in the fecilities were upgraded at all four offices cash services area in 1984. Over 470 to provide for future data growth. million pieces of currency, with a dollar In addition, we were chosen as the value of $4.5 billion, were processed and development site for the Customer delivered to District depository instituInformation System, a major component tions. In addition, 713 million pieces of of the Federal Reserve's resource-shared coin with a dollar value of $182 million automation program. The system, which were processed. provides a central repository of informaAfter a study showed that the private tion about all financial institutions that sector was providing an efficient cash are Fed customers, wiU reduce the transportation service, we withdrew from duplication of customer data collection this service, effective at year-end. across Federal Reserve districts. Also during the year, we became the development site for a new Treasury Tax and Loan system, which mil automate the maintenance of depository institution TT&L accounts. Automated Clearinghouse ACH vied with the noncash collection service for the fastest-growing Fed service over the year. The volume of ACH items processed was up almost 24 percent in 1984. The most important improvement in ACH services, begun this year, was the automation of data delivery. An electronic, dial-up data link that transmits ACH data was successfully piloted over the year and will be expanded further next year. This electronic transmission of ACH data, developed to reduce the dependency on ground delivery, will also be offered next year as part of the FEDNET service. Another improvement occurred in ACH deposit deadlines. Deadlines were improved Districtwide allowing for up to six-hours-later deposit on certain types of ACH items. These deadlines, moreover, were made consistent across the entire Federal Reserve System. Finally, we offered ACH originators the option to deposit items on Sunday. ''To support priced services^ we spent much of 1984 developing an advanced delivery system designed to speed electronic ' communications between the Bank and our customers." Federal Reserve Board Chairman Paul A. Volcker greets St. Louis business leaders at a September gathering. To keep abreast of economic and business trends around the District, we hosted numerous meetings for community leaders throughout 1984. From left to right, First Vice President Joseph P. Garbarini, President Theodore H. Roberts and Chairman of the Board W. L. Hadley Griffin lead the discussion at a monthly Board of Directors meeting. Milton Friedman, Nobel prize winner in economics, addresses luncheon guests at our annual economic policy conference. Senior Vice President Anatol B. Balbach explains the trends in money growtli over the recent past. A research anat>«t calls up the latest interest rate data on the computer terminal. In researching articles for our economic publications, economists (far right) have access to the Bank's library, housing over 15,000 volumes and 800 periodicals. Regional economists spend time in the field, analyzing the prevailing trends in the Eighth District. 'Inflationary expectations are the main driving force behind interest rate movements." Anatol B. Balbach Senior Vice President Research and Public Information "Our goal is to be the best provider of high-quality services in the District." Our new audiovisual facilities will support a broader range of public programs in 1985. Savings bonds are now printed and processed electronically. Robert E. Matthews Senior Vice President Operations Senior Vice President Robert E. Matthews presents the Quality Assurance Program to Fed employees. 10 The withdrawal of sacks of currency for use by depository institutions is a daily occurrence at all four Eighth District oflBces. 11 'Attention to the customer's service needs, a positive attitude, and a personal interest can make the difference in attracting new business relationships." A marketing analyst transforms up-to-date figures on the Bank's service volumes into charts. Ben C. Wade Senior Vice President Administration Senior Vice President Ben C. Wade discusses our recent progress in meeting customer service goals. Our staff holds regular training sessions in the operation of FEDNET, a dial-up funds transfer network. 12 High-speed equipment sorts more than 100,000 checks an hour. Incoming requests from customers to transfer ftmds to other institutions keep the phones in our wire room busy. New equipment sorts rejected postal money orders tlu-ee times fester than previous manual processing. 13 'We anticipate that, during 1985, bank holding company activity mill continue to increase, and interstate banking mill be substantially expanded." In 1984, our examiners visited 43 banks and trust companies throughout the District. Harold E. Uthoff Senior Vice President Banking Supervision and Regulation EIGHTH FEDERAL RESERVE DISTRICT B St. Louis Zone O Litde Rock Zone Q Louisville Zone B Memphis Zone The St. Louis Fed supervises institutions in the Eighth Federal Reserve District, a sevenstate area shown above. Senior Vice President Harold E. Uthoflf (center) discusses the current status of several bank holding company applications. 14 Stutement of Condition •m». Assets Gold certificate account i . . / . • • . . ^ . . . . .^ . . . . . . Special Drawing Rights certificate account 2 . . . . . . . . . . . . . . . . ; . . Coin Loans to depository institutions . . .. Securities: Federal agency obligations . . . . . .;......... . U.S. government securities . . . . . : . .:..... .... Total securities : ... Cash items in process of collection Bank premises (net) Other assets Interdistrict settlement account TOTAL ASSETS .:,.....: . , . , . . : . , . December 31, 1984 $ 357,000,000 170,000,000 23,900,960 34,280,000 December 31, 1983 $ 468,000,000 170,000,000 22,447,327 92,825,000 240,673,010 4,567,794,734 $4,808,467,744 688,274,477 16,864,418 202,524,110 357,148,740 $6,658,460,449 245,033,434 4,267,387,980 $4,512,421,414 678,497,720 15,555,042 227,523,313 0 $6,187,269,816 Liabilities Federal Reserve notes. . . . . > . . . . . . . . .>, . . . $5,245,594,904 Deposits: Depository institutions V. . .:..... . . 575,525,978 Due to other Federal Reserve Banks - collected funds 0 Foreign 4,050,000 Other 13,122,727 Total deposits v. . . . v . . . . . . . . v . . . . . . . . . . . : ; . . . . . $5,838,293,609 Deferred availability cash items 652,733,235 Other liabilities , : 75,539,405 Interdistrict settlement account. . . . . . ^. ; , , . , . . . . . . . . . . . . . . . . . . . 0 TOTAL LIABIUTIES . . . . . . . ! , . . . . . . . . . , . . ; . . . : . ; . : . . . / . . . $6,566,566,249 Capital Accounts ^ Capital paid in . . . . . . . ; . . . . . . . . . . . . . . . . , . . . . . ; : . . . . . . . . . . . . . $ 45,947,100 Surplus .... .... : . . . . . . ... . . ...... . . . 45,947,100 TOTAL CAPITAL ACCOUNTS $ 91,894,200 TOTAL UABILITIES AND CAPITAL ACCOUNTS. V. . . $6,658,460,449 1/ This Bank's share of gold certificates deposited by the U.S. Treasury with the Federal Reserve System. 2/ This Bank's share of Special Drawing Rights certificates deposited by the U.S. Treasury with the Federal Reserve Bank of New York. 15 $4,873,441,625 474,844,993 0 4,200,000 11,280,067 $ 490,325,060 579,252,538 67,443,446 96,563,147 $6,107,025,816 $ 40,122,000 40,122,000 $ 80,244,000 $6,187,269,816 Earnings and Expenses Curretit Earnings Interest on loans to depository institutions Interest on government securities Earnings on foreign currency Revenue from priced services All other earnings Total current earnings 1984 $ 5,252,164 474,799,584 5,872,289 28,680,466 415,144 $515,019,647 1983^ $ 3,044,091 452,105,131 7,666,265 24,693,959 326,068 $487,835,514 Current Expenses Current operating expenses Cost of earnings credits Federal Reserve currency Total current expenses Less expenses reimbursed or recovered Current net expenses CURRENT NET EARNINGS $ 54,505,572 5,616,758 5,038,807 $ 65,161,137 (5,438,842) $ 59,722,295 $455,297,352 % 53,806,039 3,063,683 5,514,625 $ 62,384,347 (4,042,018) % 58,342,329 $429,493,185 $ $ . .: Profit and Loss Additions to current net earnings: Profit on sales of government securities (net) All other additions Total additions Deductions from current net earnings: Loss of foreign exchange transactions (net) All other deductions Total deductions . . . . . V. , . . . . . . . . . . ..;. . ; . : ; . . . Net additions or deductions . . ;. 1 . . . . . ; . Assessment for expenses of Board of Governors NET EARNINGS AVAILABLE FOR DISTRIBUTION $ 12,280,017 452,135 $ 12,732,152 (11,342,545) $ (2,245,400) $441,709,407 $ 12,776,327 56,608 $ 12,832,935 (12,138,548) $ (1,996,900) $415,357,737 Distribution of Net Earnings Dividendspaid Payments to the U.S. Treasury (interest on E R. notes) Transferred to surplus Surplus, January 1 Surplus, December 31 $ (2,524,330) (433,359,977) 5,825,100 40,122,000 $ 45,947,100 $ (2,344,760) (410,970,627) 2,042,350 38,079,650 $ 40,122,000 1/ Final figures as of March 8, 1984 16 $ 1,388,237 1,370 1,389,607 $ 668,104 26,283 694,387 Volume of Operations ,630,490,000 $2,795,485,000 35,673,800 6,191,000 550,071,000 27,448,400 8,093,000 335,816,500 26,923,800 423,800 341,970,200 8,844,000 11,984,000 78,665,600 6,210,300 267,000 161,923 120,037 485,900 6,330,181 229,935 1,124 1,834,200 436,637,400 $ 8,091,400 336,038,500 5,400,000 $ 4,047,500 Currency received and counted Coin received and counted Food stamps redeemed Transfer of funds Checks handled: U.S. government checks 34,458,000 Postal money orders 118,795,000 All other 532,987,000 ACH items handled: c ; ^?: Commercial T'Tfr. 12,795,000 U.S. government 12,970,000 Collection items handled: U.S. government coupons paid 210,000 All other 323,148 Issues, redemptions, and exchanges of U.S. government securities: Definitive ;..... 6,771,944 Book entry ^ • .;. . . 252,559 Loans. Dollar Amount (thousands) Number Handled 1984 1983 474,433,000 424,075,000 713,397,000 659,967,000 200,543,000 . 186,838,000 2,670,334 2,838,784 1,944 1984 4,474,600 182,200 581,007 17 $ $ 1983 4,757,800 84,200 827,700 35,972,500 5,375,600 122,400 267,200 DIRECTORS (December 31,1984) St. Louis Board of Directors Chairman W. L. Hadley Griffin Chairman of the Board Brown Group, Inc. St. Louis, Missouri Robert). Sweeney President and Chief Executive Officer Murphy Oil Corporation El Dorado, Arkansas Deputy Chairman Mary P. HoU President Clothes Horse Little Rock, Arkansas Robert L. Virgil, Jr. Dean School of Business Washington University St. Louis, Missouri Clarence C. Barksdale Chairman of the Board Centerre Bank NA St. Louis, Missouri Federal Advisory Council Donald L. Hunt President First National Bank of Marissa Marissa, Illinois Member William H. Bowen Chairman of the Board and Chief Executive Officer First Commercial Bank, N.A. Little Rock, Arkansas Frank A. Jones, Jr. President Dietz Forge Company Memphis, Tennessee Executive George M. Ryrie President First National Bank and Thist Company Alton, Illinois W. L. Hadley Griffin, Chairman Donald L. Hunt Jesse M. Shaver Robert L. Vii^il, Jr. Audit Committee Robert L. Virgil, Jr., Chairman Donald L. Hunt Frank A. Jones, Jr. Robert J. Sweeney Jesse M. Shaver President JMS Corporation Louisville, Kentucky Committee Hunmn Resources Jesse M. Shaver, Chairman Clarence C. Barksdale Mary R Holt George M. Ryrie 18 Committee Little Rock Board of Directors Louisville Board ofLh'rectors Chairman Sheffield Nelson House, Wallace, Nelson and Jewell, PA Little Rock, Arkansas Chairman Sister Eileen M. Egan President Spalding University Louisville, Kentucky D. Eugene Fortson Chairman of the Board and Chief Executive Officer Worthen Bank and Thist Company, N.A. Little Rock, Arkansas William C. Ballard, Jr Executive Vice President Finance and Administration Humana, Inc. Louisville, Kentucky Wilbur P. Gulley, Jr. Chairman of the Board and Chief Executive Officer Savers Federal Savings and Loan Association Little Rock, Arkansas John E. Darnell, Jr. Chairman of the Board The Owensboro National Bank Owensboro, Kentucky William H. Kennedy, Jr Chairman of the Executive Committee National Bank of Commerce of Pine Bluff Pine Bluff, Arkansas Henry E Frigon President and Chief Operating Officer BATUS, Inc. Louisville, Kentucky Gordon E. Parker President First Commercial Corporation Little Rock, Arkansas Allan S. Hanks President The Anderson National Bank Lawrenceburg, Kentucky Shirley J. R. Pine, Ph.D. Department of Communicative Disorders University of Arkansas at Little Rock Little Rock, Arkansas Frank B. Hower, Jr Chairman of the Board and Chief Executive Officer Liberty National Bank and Thist Company Louisville, Kentucky Richard V. Warner Group Vice President Wood Products Group Potlatch Corporation Warren, Arkansas R. I. Kerr, Jr. Chairman of the Board, President and Chief Executive Officer Great Financial Federal Louisville, Kentucky v-y'i^^^- jy.y^..^ ^> 19 Memphis Board of Chairman Patricia W. Shaw President and Chief Executive Officer Universal Life Insurance Company Memphis, Tennessee Edgar H. Bailey Chairman and Chief Executive Officer Leader Federal Savings and Loan Association Memphis, Tennessee William H. Brandon, Jr President First National Bank of Phillips County Helena, Arkansas William M. Matthews, Jr. Memphis, Tennessee G. Rives Neblett Neblett, Bobo, Chapman and Heaton Shelby, Mississippi Wayne W. Pyeatt President Memphis Fire Insurance Company Memphis, Tennessee Donald B. Weis President Tamak Thinsportation Corporation West Memphis, Arkansas OFFICERS Federal Reserve Directors Bank of St. Senior Management Theodore H. Roberts President and ChiefExecutive Officer Joseph R Garbarini First Vice President Adtninistration Ben C. Wade Senior Vice President Financial Services Martha L. Ferine Vice President and Controller John W. Druelinger Assistant Vice President Leshe E Schmeding Assistant Vice President Htinian Resources Patricia A. Tarbutton Vice President Judie A. Courtney Human Resources Officer Marketing Jean M. Lovati Assistant Vice President Support Services William J. Sneed Vice President Gregory S. Pusczek General Services Officer Banking Supervision and Regulation Harold E. UthoflF Senior Vice President Bank Holding Companies Dehner D. Weisz Vice President Harry L. Rea Assistant Vice President Dennis W. Blase Supervisory Officer Consumer Affairs, Trust, and Credit Randall C. Sumner Vice President Harold E. Slingerland Credit Officer Member Banks Charles R. Halbrook Vice President Jerome R. Rodgers Assistant Vice President Harold H. Rieker Supervisory Officer 20 Louis Operations Robert E. Matthews Senior Vice President Walter W. Jacobs Assistant Vice President Information Systems James R. Kennedy Vice President Jerome J. McGunnigle Assistant Vice President John R Merker Assistant Vice President Frances E. Sibley Systems Officer Payments Robert W. Thomas Vice President Robert J. Taylor Assistant Vice President Valuables Processing Michael T Moriarty Vice President Edward R. Schott Assistant Vice President Darwin W. Stephens Assistant Vice President Research and Public Information Anatol B. Balbach Senior Vice President Economic Analysis Albert E. Burger Vice President Keith M. Carlson Assistant Vice President R. Alton Gilbert Assistant Vice President John A. Tatom Assistant Vice President Dallas S. Batten Research Officer RikW. Hafer Research Officer Public Information Ruth A. Bryant Vice President Statistics Michael E. Ti-ebing Research Officer Support Hillary B. Debenport Research Officer Staff Functions Audit Richard E. Kay General Auditor Alan C. Wheeler Assistant General Auditor Legal E Garland Russell, Jr. Senior Vice President, General Counsel and Secretary Joan R Cronin Vice President, Deputy General Counsel and Assistant Secretary Little Rock Branch John E Breen Vice President and Manager David T. Rennie Assistant Vice President Louisville Branch James E. Conrad Vice President and Manager George E. Reiter, Jr. Assistant Vice President Memphis Branch Paul I. Black, Jr. Vice President and Manager Anthony C. Cremerius, Jr. Assistant Vice President Federal Reserve Bank of St. Louis Post Office Box 442 St. Louis, Missouri 63166 Little Rock Branch Post Office Box 1261 Little Rock, Arkansas 72203 Louisville Branch Post Office Box 32710 Louisville, ICentucky 40232 Memphis Branch Post Office Box 407 Memphis, Tennessee 38101
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