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HOUSING AND HOME FINANCE AGENCY HOME LOAN BAN K BOARD SUMMARY OF OPERATIONS FOR FEDERAL HOME LOAN BANK SYSTEM FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION HOME OWNERS' LOAN CORPORATION Washington, D. C. 1950 FOREWORD This "Summary of Operations for 1950" presents a review of the activities and accomplishments of the units of the Home Loan Bank Board, including the Federal Home Loan Bank System, the Federal Savings and Loan Insurance Corporation, Home Owners' Loan Corporation (in liquidation). and the In preparing this summary, the Board feels that the member institutions are interested in and are entitled to receive information of this nature while the data are current and of immediate significance. In addition to these highlights of operation, the statement outlines briefly the changes that have occurred during the calen dar year 1950 in the basic laws creating the units of the Home Loan Bank Board, which are the first substantial changes in many years. Although most of the legislative actions were ef fected in the latter half of the year, the beneficial effects already have been demonstrated in increased advantages to the units of the Board as well as to the member institutions and their savers. William K. Divers, Chairman O. K. LaRoque, Member March, 1951. HOME LOAN BANK BOARD HOME LOAN BANK BOARD FEDERAL HOME LOAN BANK SYSTEM On December 31, 1950, the 3, 930 member institutions of the Federal Home Loan Bank System, with assets of $ 16, 250, 000, 000, consisted of 3, 894 savings and loan associations, 29 savings banks, and 7 insurance companies. This represents a net increase of 70 members during the year. At the close of the year, 34 applications for membership were pending. Advances by the Federal Home Loan Banks during the year aggregated $674, 756, 650 and repayments totaled $292, 229, 082. At the close of the year there was a balance outstanding of $815,956, 718, the largest amount out standing at any time since the System was created. Exhibit 1 presents a sum mary of the lending operations of the Banks, by years, through December 31, 1950. At the close of 1950, 2, 278 member institutions, or 58. 0 percent of the total membership, were borrowers from the Federal Home Loan Banks, as compared with 1, 799 member borrowers, or 46. 6 percent, at the close of 1949. One non-member borrower was indebted to a Federal Home Loan Bank as of December 31, 1950. Secured advances outstanding on December 31, 1950, reached a new high of $567, 972,508, representing the borrowings of 1, 496 members and one non-member mortgagee and accounting for 69. 6 percent of total advances s outstanding. On the same date, unsecured advances to 1, 053 mem ber reacheda new peak of $247, 984, 210 and represented 30. 4percent of total ad vances outstanding. An amendment to the Federal Home Loan Bank Act, approved June 27, 1950, and to become effective June 27, 1951, increases the capital stock re quirement of each member of a Federal Home Loan Bank to an amount equal to at least 2 percent of the aggregate of the unpaid principal of its home mort gage loans, home-purchase contracts, and similar obligations, but not less than $ 500. By December 31, 1950, Government-owned stock in the Banks had declined from the original investment of $124, 741, 000 to $ 56, 021, 900. Member-owned stock on the same date totaled $182, 546, 500, representing 76. 5 percent of the total paid-in capital stock at the close of 1950. (By Feb ruary 28, 1951, all but $10, 000, 000 of Government-owned stock--of two Federal Home Loan Banks--had been retired. It is anticipated that complete retirement of all Government-owned stock will be accomplished not later than July, 1951.) FEDERAL ber 31, HOME LOAN BANK SYSTEM The capital structure of the Federal Home Loan Banks as of Decem 1950, and December 31, 1949, is presented in the following table: December 31, CAPITAL STOCK U. S. Government 1950 December 31, 1949 $ 56, 021, 900 $ 95,818,800 $182, 597, 900 51, 400 $136,271, 100 31, 850 182, 546, 500 136, 239, 250 Total paid-in capital $238, 568, 400 $ 232, 058, 050 SURPLUS Legal Reserve Reserve for Contingencies Undivided Profits 14, 476, 647 5, 624, 807 9, 801, 851 13, 184, 046 4, 785, 651 9, 026, 884 Total Surplus $ 29, 903, 305 $ 26,996,581 Total Capital $268, 471, 705 $259, 054, 631 Members: Stock subscribed Less unpaid subscriptions Total paid in by members During the calendar year 1950, four public offerings of consolidated obligations of the Federal Home Loan Banks were made totaling $476, 000, 000, and four private sales aggregating $261, 000, 000. Retirements during the same period totaled $382, 500, 000. Consolidated obligations of the Ban ks outstanding on December 31, 1950, totaled $ 560, 000, 000. The Federal Home Loan Bank Act, by amendment approved June 27, 1950, authorizes the Secretary of the Treasury to purchase consolidated ob-. ligations of the Federal Home Loan Banks up to a total of $1, 000, 000, 000. No purchases of such obligations by the Secretary of the Treasury had been made through the close of 1950. Deposits of m e m b e r s in the Federal Home Loan Banks decreased from $267, 112, 161 at the close of 1949 to $224, 096, 859 at the close of 1950. Of this total, members' time deposits accounted for $183, 967, 090 and mem bers' demand deposits accounted for $40, 129, 769. Interbank deposits were made during the year in the aggregate amount of $121, 500, 000, while repayments totaled $149, 200, 000, resulting in a bal ance outstanding on December 31, 1950, of $1,000,000 compared with $28, 700, 000 outstanding at the close of the previous year. HOME LOAN BANK BOARD During 1950 the Banks purchased U. S. Government obligations hav ing a par value in excess of $ 500, 000, 000. Due to sales and maturities dur ing the period, such obligations were reduced by December 31, 1950, to a face amount of $197, 435, 500. As will be seen from the consolidated statement of condition of the Federal Home Loan Banks as of December 31, 1950, and December 31, 1949, presented as Exhibit 2, total assets of the Banks rose from $734, 274, 206 at the close of 1949 to $1, 058, 458, 393 a year later. Gross operating income of the eleven Federal Home Loan Banks, as will be seen from the consolidated statement of income and expense of the Banks presented in Exhibit 3, increased by 15. 3 percent during the year, ad vancing from $13,426, 355 in 1949, to $15, 479, 472 in 1950. This was due principally to the upward trend in advances outstanding during th.e last half of 1950. Total operating expenses of the Banks for the calendar year 1950 amounted to $9, 533, 385 as compared with $9, 016, 829 for 1949. Non-oper ating income totaled $595, 392 for 1950 and $366, 331 for 1949, while non-op erating charges for the two years aggregated $78, 473 and $17, 875, respec tively. Net income of the Banks for 1950 amounted to $6, 463, 006, while net income for 1949 aggregated $4, 757, 983, an increase of 35. 8 percent. Net income for 1950 and cumulatively from the beginning of operations to Decem ber 31, 1950, was distributed as follows: Calendar Year 1950 Amount October 1932 to December 31, 1950 Percent Amount Percent 956, 010 2,582, 292 14.8 40.0 $26, 113, 670 15, 078, 742 36.4 21.0 17, 1, 292, 839, 774, 980 601 156 967 0.2 20.0 13.0 12.0 655, 959 14, 476, 647 5, 624, 807 9, 801,851 $6,463, 006 100.0 $71, 751, 676 Dividends Paid: U. S. Government Members Retirement Fund - Prior Service Legal Reserve Contingent Reserve Undivided Profits Total Net Income $ 0.9 20.2 7. 8 13. 7 100.0 Dividend declarations by the Banks during the calendar year 1950, at rates ranging from 1 percent to 2-1/4percent per annum, totaled $3, 538, 302, which was shared by member institutions and the U. S. Government in the respective amounts of $2, 582,292 and $956, 010. Dividend declarations from the beginning of operations through December 31, 1950 aggregate $41,192,412, of which the U. S. Government has received $26, 113, 670 and member insti tutions have received $15, 078, 742. FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION During the calendar year 1950 a new record was reached in the num ber of savings and loan associations offering insurance to their savers and investors through the Federal Savings and Loan Insurance Corporation. In sured associations at the close of the year totaled 2, 860, of which 1, 526 were Federal savings and loan associations for which insurance is mandatory, and 1, 334 were State-chartered institutions for which insurance is optional. institutions on December 31, 1950, were Total assets of these insured $13, 691, 000, 000, representing 81 percent of the assets of all savings and loan associations in the country. Exhibit 4 shows the number and assets of insured associations, by States and Federal Home Loan Bank Districts, at the end of 1949 and 1950. A total of 111 institutions with assets of $388, 192, 000 qualified for insurance during 1950. In the same period, 7 institution terminated their insurance, 4 by consolidation with other insured associations, 2 by voluntary dissolution, and 1 continued in operation. Under legislation enacted during the year, the provisions relating to voluntary and involuntary term in ation were equalized. An insured member is now required, whether its insurance is terminated by the Corporation or at its own request, t6 pay a two-year premium and, in exchange, the accounts of its savers which were insured at the time of termination will continue to be protected by the Corporation for a two-year period. The cost of insurance to the institutions, also by legislative action during 1950, was reduced through a lowering of the annual premium paid by insured associations from 1/8 of 1% to 1/12 of 1% of the total amount of all accounts of their insured savers or investors plus creditor obligations. The new rate was retroactively made effective as of July 1, 1949. The Federal Savings and Loan Insurance Corporation guarantees the safety of savings against any type of los.s in each insured association up to $10, 000 for each saver or investor. Prior to September 21, 1950, the max imum insurance protection was $ 5, 000. As a protection to the individual savers or investors in an insured as sociation, the Corporation may act to prevent the default and liquidation of an insured association in difficulty by making a contribution or a loan to the association or by purchasing some or all of its assets. When an insured as sociation is declared in default and is placed in liquidation, the Corporation HOME LOAN BANK BOARD may pay the insured accounts in cash or may make other accounts in other operating i n s u r e d institutions available to the savers of the association in liquidation. This method of settlement was a result also of legislation en acted during the year. Previously the individual was given the option of se lecting, in settlement of his account, either an insured account in another in stitution or cash and debentures of the Corporation. Assets of the 2,860 insured associations approximated $13, 691, 000, 000 on December 31, 1950, an increase of $2, 387, 000, 000, or 21 percent during the year. About $11, 188, 000, 000, or 82 percent of these assets, represented loans made on the security of first mortgages on homes. Another 14 percent consisted of cash and United States Government securities. Loans made by insured associations reached a new high of $4, 352, 000, 000 during 1950, as compared with $2, 887, 000, 000 the year previous. Savings capital increased $1, 662, 000, 000, or 17 percent during the year, to a total of $11, 374, 000, 000 on December 31, 1950. Reserves and undivided profits continued to grow during 1950 and at the close of the year amounted to $955, 000, 000. Total assets of the Federal Savings and Loan Insurance Corporation at the close of 1950, as shown in Exhibit 5, amounted to $199, 592, 517, of which 97 percent consisted of cash and U. S. Government securities. Legislation enacted during the year provides that the Corporation be gin the systematic retirement of its $100, 000, 000 capital stock now held by the United States Treasury. Starting with the fiscal year ending June 30, 1951, the Corporation will retire capital stock in an amount equal to one-half of its income after expenses and losses. During 1950 the Corporation was also authorized to pay to the United States Treasury, in place of cumulative dividends on the capital stock, an amount equal to 2 percent simple interest per year on its capital stock since the Corporation was created. This amount was computed at $28, 981, 112, after allowance for dividends previously paid. In the future, annual payments in lieu of dividends will be made by the Cor poration on the average amount of its unretired capital stock at a rate to be determined by the Secretary of the Treasury. Reserves of the Corporation at the close of 1950 totaled $93, 590, 275, a drop of 17.3 percent from the previous year end. The decrease was largely the result of the payment made to the United States Treasury in lieu of ac- FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION cumulated dividends. This reserve for losses is equivalent to .79 percent of the Corporation's potential risk, which consists of the insured amount of all accounts of insured institutions plus their creditor obligations. Legislation enacted during 1950 directed the United States Treasury to lend to the Corporation such funds as may be needed, up to $750, 000, 000 outstanding at any one time. At the same time the Corporation's previous authority to borrow funds from other sources was revoked. Gross operating income of the Corporation during 1950, as shown in Exhibit 6, amounted to $13, 209, 008 as compared with $13, 831, 555 during the previous year. The decrease resulted from the reduction in annual pre miums paid by the insured member institutions and a reduction in income from investments because of payment to the United States Treasury of an amount in lieu of cumulative dividends on the capital stock of the Corporation. Premium income during the year accounted for $ 8, 451, 489 of gross operating income and interest income amounted to $4, 624, 020. Admission fees from associations qualifying for insurance totaled $134, 337 during 1950. Administrative expenses of the Corporation during 1950 amounted to $ 579, 963 as compared with $ 599, 512 the previous year. HOME LOAN HOME OWNERS' BANK BOARD LOAN CORPORATION The Home Owners' Loan Corporation was created June 13, 1933, to grant long-term mortgage loans, at low interest rates, to home owners who, because of depression conditions, were faced with foreclosure and were un able to refinance their loans through normal channels. During its three-year lending period which ended June 12, 1936, Corporation loaned $3, 093, 451, 321 to refinance the mortgages of 1, 017, home owners. Supplementary advances made for such items as taxes, surance, maintenance, reconditioning, and acquisition costs increased original investment by $405, 445, 363, bringing the Corporation's gross mulative investment at the close of 1950 to $ 3, 498, 896, 684. the 821 in this cu Since 1936 the chief task of the Corporation has been the liquidation of its assets. At the end of the calendar year 1950, as summarized in the fol lowing table, most of the Corporation's assets had been liquidated: Original amount loaned to 1, 017, 821 individuals ....... Subsequent advances ................................ Cumulative investment to December 31, Outstanding on December 31, 1950: Original loans and advances .......... Vendee accounts and advances ........ Loans in foreclosure. ................ 1950. ........ $ 3, 093, 451, 321. 01 405, 445, 362.63 3, 498, 896, 683. 64 $6, 718, 367. 97 2,873, 812.04 3, 714.96 Total outstanding................................. Net reduction in mortgage and property assets (99.7%) 9, 595, 894. 97 3, 489, 300, 788. 67 The liquidation program of the Corporation has progressed in an or derly manner. Borrowers have been encouraged to pay their loans in full be fore maturity date, especially where loan balances have become small. In March 1948 a speed-up program of liquidation was launched in 20 States and the District of Columbia where loan portfolios were less than $1. 5 million. Borrowers were given opportunity to refinance their loans with local institu tions of their own choice, but where such transfers were not made, the Cor poration arranged with financial institutions within the general community to purchase the remaining accounts. By the close of 1949 the loan balances in these States and the District of Columbia had been reduced from an aggregate of $15,726, 130 to $1,462, 179. HOME OWNERS' LOAN CORPORATION In June 1949 a further program of liquidation acceleration was insti tuted designed to sell all remaining loans by publicly offering them for sale on a State-wide basis by bid and contract. This pro gram extended to 29 States with total balances in about 160,000 accounts approximating $277, 000, 000. During 1950 the Corporation concluded the contracting for purchase of these accounts by savings and loan associations, mutual savings banks, trust companies, life insurance companies, and commercial banks. Deliveries of these accounts to the successful bidders continued to be made during the cal endar year and by December 31, there remained undelivered 8, 909 accounts with balances of $9, 592, 180. From September 1, 1949, when the first pur chase contract was closed, to December 31, 1950, the Corporation has re ceived cumulative premiums of $ 2, 174, 720 through sale of loans by contract. Of the $223, 856, 710 investment of the Corporation in the shares of nearly 1, 500 savings and loan associations as a means of stimulating local financing of home loans, all but $414, 200 in five associations had been re paid by December 31, 1950. Dividends paid to the Corporation on these in vestments aggregated $44, 745, 332. In addition to its capital stock of $200, 000, 000 originally subscribed by the United States Government, the Corporation issued for value bonds amounting to $3, 489, 453, 550. On January 27, 1950, the last of the bonds issued by the Corporation was retired, and at the close of the calendar year 1950, all of the capital stock had been retired and the United States Treasury repaid in full. From the beginning of operations to December 31, 1950, as shown in Exhibit 7, the Corporation had a cumulative net income of $352, 247, 062 be fore actual losses and provisions for future losses. Cumulative losses for the same period amounted to $338, 010, 020, including losses on sale of properties amounting to $336, 544, 274 and losses of $1, 465, 746 from princi pal, interest and properties charged off, fire and other hazards, and fidelity and. casualty 1 o s se s. Accordingly, after deducting cumulative 10o s s e s of $338, 010, 020 and the balances in reserves and provision for future losses amounting to $ 326, 388 from the net income, the Corporation had a surplus of $13, 910, 654 on December 31, 1950. During the calendar year 1950, total income of the Corporation amounted to $6, 554, 096 and total expenses amounted to $1, 838, 059, leaving a net income of $4, 716, 037. Losses during the year of $12, 116 resulted in a net profit of $4, 703, 921. Premiums on the sale of loans accounted for $1, 897,496 of this profit. Exhibit 8 presents a statement of income and ex pense of the Corporation for the calendar year 1950. HOME LOAN 3ANK BOARD LIST OF EXHIBITS 1. Federal Home Loan Banks--Summary of Lending Operations, 1932-1950, 2. Federal Home Loan Banks- -Consolidated Statement of Con dition as of December 31, 1950, and December 31, 1949. 3. Federal Home Loan Banks--Consolidated Comparative State ment of Operations for the Calendar Years 1950 and 1949. 4. Federal Savings and L o a n Insurance Corporation- -Number and Assets of In sured Savings and Loan Associations, by Type, December 31, 1950, and December 31, 1949. 5. Federal Savings and Loan Insurance Corporation-- Statement of Condition as of December 31, 1950, and December 31, 1949. 6. Federal Savings and Loan Insurance Corporation--Statement of Operations for the Calendar Years 1950 and 1949. 7. Home Owners' Loan Corporation--Statement of Income and Expense from the Beginning of Operations, June 13, 1933, to December 31, 1950. 8. Home Owners' Loan Corporation--Statement Expense for the Calendar Year 1950. of Income and For your convenience and ready reference, selected statistics concerning the Federal Home Loan Banks and the Federal Savings and Loan Insurance Cor poration have been repro duced in the attached pocket - size information card. r 2 a C i V0 VI 1 I 4400M0C 01 o ODt- L C -'3 C 0 L *Q * . '0 A 0 I . 10 I 9 s ;I 0 .(00 c0 . 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CA COHO ICMC. coH 07000 OHOOIW 0CCO0CH OI-4 0A W0DOH- 001 0 coOZ -H Co IHH-4ovtm 0n o COOV A o,1 A 00Ct towmH&o -ovOCD wo HOME LOAN BANK BOARD 10 EXHIBIT 1 FEDERAL HOME LOAN BANKS Summary of lending operations Year 1950 Advances $ Boston 40,692,625.00 Repayments $ Balance Outstanding End of Year 17,817,498.00 $ 50,734,183.00 New York 94, 558, 300.03 28,636,671.60 96, 152, 751.26 Pittsburgh 44,675,800.00 19,050,960.00 62, 377, 945. 00 Greensboro 66, 120, 500.00 34,825,017.34 90, 082, 389. 31 Cincinnati 41,317, 550.00 17, 137,675.00 51, 235, 675.00 Indianapolis 34,850,718.75 12, 585, 478.90 53, 513, 189.96 100, 518, 012.91 29,615,034.80 132, 151,037.61 Des Moines 47, 102,776.00 15, 280, 289.45 55, 347,656.36 Little Rock 32,943,600.00 13,259,955.00 42, 604, 306. 00 Topeka 30,596,097.00 12, 742, 172. 50 39, 650,216.47 141,380, 670.00 91,278, 329.14 142, 107, 367.85 292,229,081.73 $815,956,717.82 Chicago San Francisco Total - Year 1950 $ 674,756,649.69 $ 1949 433, 429'149.86 359,612,776.74 280, 168, 873.35 515,016,089.19 1947 351,079,350.99 208,961,931.93 435, 572, 185. 80 1946 329,231,890.68 230,649,366.93 293, 454, 766. 74 1945 277,748,276.84 213,438, 982.95 194,872,242.99 1944 239,254,221.89 218, 759,089.74 130, 562,949. 10 1943 156, 925, 588.93 176, 070,303.60 110,067,816.95 1942 99,461,876.19 189, 695, 394.41 129, 212, 531.62 1941 157,600,420.85 139,646,335.38 219,446,049.84 1940 134,212, 165.93 114,033,192.20 201,491,964. 37 1939 94, 780, 586.64 112, 310,034.15 181,312,990.64 1938 81,958,343.39 83,153,601.22 198,842,438.15 1937 123, 251,172.91 68,440,498.13 200, 037, 695. 98 1936 93,257,057.50 50,715,704.66 145, 227,021.20 1935 59,130,068.56 43,046,971.39 102,685,668.36 1934 38,675,566.12 37, 515, 249.30 86, 602, 571. 19 1933 90,032,164.49 5,427,410. 12 85, 442, 254. 37 1932 337,249,580.83 1948 Grand Total 255,662,641.50 837,500.00 $3,617,468,319.84 -0 $2,801,511,602.02 837,500.00 11 HOME EXHIBIT LOAN BANK BOARD 2 FEDERAL HOME LOAN BANKS Consolidated statement of condition as of Dec. 31, 1950 and 1949 December 31, 1950 December 31, 1949 Assets Cash: On hand - including imprest funds................. On deposit with: Treasurer of the United States................. Commercial banks.............................. $ 39,881.58 $ 112,872.10 22, 020, 069.89 18,419, 169.32 40, 479, 120.79 7, 314, 843.32 15, 951,168.70 23,378,884.12 Investments: U. S. Treasury bills ............................ Other U. S. Treasury obligations................. Total investments........................... 33, 450,748.68 165, 863,072.85 199, 313, 821.53 6, 886, 093. 41 268, 082, 257. 55 274, 968, 350.96 Advances outstanding: 1 year or less .................................. Amortized - 1 to 10 years........................ Total to members ........................... Nonmember mortgagee .......................... Total advances outstanding................... 546, 906, 188.48 269,003,029.34 815, 909, 217.82 47,500.00 815,956,717.82 230, 880, 919.05 202, 323, 230.81 433, 204, 149.86 225,000. 00 433, 429, 149.86 934,351.79 1,490, 982.93 2,425,334.72 1, 647, 365.97 751,327.25 2, 398,693.22 214, 328.61 4,367.65 53, 047.74 271,744.00 69, 056.43 6,591. 72 7,666.18 83,314.33 3,082.03 8, 561.11 11.00 11,654.14 2, 948.21 12,854.75 11.00 15,813.96 1,058, 458, 393.00 734,274,206.45 183,967, 090.18 40,129, 769.01 180, 000.00 86, 850. 00 224,363,709.19 231,677, 602.61 35, 434, 558.70 -0 147,550.00 267, 259, 711.31 Accrued interest payable: Deposits - members' time ........................ Consolidated obligations ......................... Total accrued interest payable.............. 620, 498.42 2,807,541.90 3,428,040.32 717, 190. 09 1, 242, 975. 67 1,960, 165.76 Dividends payable: Member institutions ............................ U. S. Treasury.. ............................. Total dividends payable...................... 1,415,374.66 465,233.50 1,880, 608.16 1,087, 133.43 681,879.25 1, 769, 012.68 314,330.05 560 000,000.00 789, 986, 687.72 5, 685.99 204, 225, 000. 00 475, 219, 575.74 Total cash............................. ... . Accrued interest receivable: Investments .................................... Advances....................................... Total accrued interest receivable............. Deferred charges: Prepaid consolidated obligations expense .......... Prepaid surety bond premiums ................... Other prepaid expenses .......................... Total deferred charges ...................... Other assets: U. S. Savings bonds redeemed.................... Accounts receivable............................ Furniture and equipment ......................... Total other assets......................... Total assets................................ Liabilities and Capital Liabilities: Deposits: Members-time............................... Members-demand. ............................ Government instrumentalities-demand.......... Applicants for membership.................... Total deposits .............................. Accounts payable .......... ..................... Consolidated obligations (net)! ...................... Total liabilities .................. . ....... 1/ Consolidated Federal Home Loan Bank obligations issued by the Home Loan Bank Board are the joint and several obligations of all Federal Home Loan Banks and are not guaranteed by the United States nor by any agency thereof. HOME LOAN BANK BOARD 12 EXHIBIT 2 FEDERAL HOME LOAN BANKS Consolidated statement of condition as of Dec. 31, 1950 and 1949 -contd. I r December 31, 1950 December 31, 1949 -- - - Liabilities and Capital--continued Capital: Capital stock outstanding (par): Members (fully paid) ........... .......... Members (partially paid)...................... Total member subscriptions ............... Less: Unpaid subscriptions.................... Total paid in by members .................... U. S. Government subscriptions (fully paid)..... Total paid in on capital stock................. 182,494, 800.00 103, 100.00 182, 597, 900.00 51,400.00 182, 546, 500.00 56, 021,900.00 238, 568, 400.00 136, 182, 900. 00 88,200.00 136, 271,100.00 31,850.00 136, 239, 250. 00 95, 818, 800. 00 232, 058, 050. 00 Surplus-earned: Legal reserve .................................. Reserve for contingencies........................ Total surplus reserves ............. Undivided profits. . ..................... Total earned surplus ........................ Total capital ................................ 14,476,647.07 5, 624, 806.68 20, 101,453.75 9,801,851.53 29, 903, 305.28 268, 471,705.28 13, 4, 17, 9, 26, 259, Total liabilities and capital................... ........ .. . . . 1,058, 458, 393.00 I 184, 045. 91 785, 650.60 969, 696. 51 026, 884.20 996,580.71 054, 630. 71 734, 274,206.45 Ii 13 HOME EXHIBIT LOAN BANK BOARD 3 FEDERAL HOME LOAN BANKS Consolidated statement of operations for the calendar years 1950 and 1949 Year ended December 31, 1950 Earned operating income: Interest on advances.............................. ........ Interest on securities................... Miscellaneous ................................... Total earned operating income ................. Year ended December 31, 1949 $10, 524, 968.23 4,950, 588.99 3, 915.18 15,479,472.40 $ 7,608,097.09 Operating expenses: Compensation, travel and other expenses........... Interest on consolidated obligations................ Consolidated obligations expense--concessions...... Paid through office of fiscal agent.................. Interest on members' deposits..................... GAO audit expense .............................. Assessment for expenses of HLB Board ............ Total operating expenses....................... 5,815,223.81 3, 034.48 13, 426, 355.38 1,412,834.91 4,233, 301.61 253,085.01 49,366.32 3, 136, 596.14 6, 951.47 441, 250.00 9, 533, 385.46 5, 946, 086.94 .Nonoperating income: Profit-sales of securities......................... Assessment credit ............................... Furniture and equipment sales..................... Miscellaneous ................................... Total nonoperating income...................... 4,409, 526.29 590,569.45 Net operating income .......................... 1, 276, 4, 417, 273, 49, 2, 536, 20, 442, 9, 016, 286, 571.48 78,679.29 -0 097.79 690.97 150.58 872.03 858.69 729.74 429.29 829.09 4, 748.96 73.61 595,392.02 28,260.40 50, 212.72 78,473.12 Net incom e ................................... 4, 579.32 13, 295. 35 17,874.67 6, 463, 005.,84 Nonoperating charges: Loss-sales of securities.......................... Furniture and equipment purchased ................ Total nonoperating charges..................... 366,331.05 4, 757, 982.67 333.99 746.29 DETAIL OF COMPENSATION, TRAVEL, AND OTHER EXPENSES Compensation: Directors' fees .................................. Officers' salaries................................ Counsels' compensation........................... Other salaries ................................... Total compensation ........................... 60,680.00 487,288.22 71, 198.68 316, 235.23 935, 402.13 Travel expense: Directors ....................................... Officers......................................... Counsel and others............................... Maintenance and operation costs of automobile ...... Total travel expense.......................... 56,955.51 32,958.49 6,695.43 3,337.19 99, 946.62 Other expenses: Retirement fund contribution ...................... Telephone and telegraph .......................... Postage and expressage........................... Stationery, printing and other office supplies ........ Rent of banking quarters (net)...................... Maintenance of banking quarters and equipment ...... Services of HLBB's examining division............. Safekeeping and protection services ................ Insurance and surety bond premiums............... Reports and other publications..................... Stockholders' annual meeting expenses ............. 79, 599.12 29, 561.50 21,033.09 35,587.90 95, 361.31 27, 700.38 4, 835.15 2,714.52 18, 735.65 Total compensation, travel and other expenses ... ' - - -- -- - - - 64,973.19 26,070.30 20,363.87 31, 358.31 91, 030.75 13, 214. 00 4, 164.28 2,529.60 16,671.49 6, 966.94 17,556.23 15,236.81 13, 240.08 3, 641.10 327, 016.95 1, 412, 834.91 Public relations expense.......................... Miscellaneous operating expenses.................. Total other expenses........................... - 52,953.24 33, 507.61 9, 589.64 3, 989.75 100, 040.24 7, 588.41 22,357.03 16,492.21 11,298.46 4, 621.43 377,486.16 Dues- and subscriptions ......................... 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T4 030o0-0c0t Ct-w C - C-0 "r4 00 o . 040(3 a G00O0-0 V40C4 0.4 M $ Cc U, z : z u .O 0 z U) 0 0 .-4 C) 0 V.4a* o En 00= 04 W V4 W 0.T4.V4 0 CV- 0 9.4 0.430 q -cO z Co M M 0 4.6 Z r.4 b .,4 CU.4 r4 .0WA00.00.0 'r.4E.r4 C) mm o00to 003M 000044C q V4 j CUC0 .0 > a Co l HOME LOAN BANK 16 BOARD EXHIBIT 5 FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION 1950 and 1949 Statement of condition as of December 31, December 31, 1949 December 31, 1950 a- i ASSETS C ash ......................................... $ Accounts receivable: Insurance premiums - payments due .......... Insurance premiums - payments deferred ...... Admission fees receivable ................... Advances for traveling expenses.............. Due from governmental agencies.............. . Miscellaneous .............................. 535,657.47 117,549.52 2, 116,669.61 2, 106. 72 300.00 469.49 551,245.92 134,451.30 907, 884.84* 2, 299.22 -0 64.20 875.43 -0 2, 237, 095. 34 Total .................................... Investments: U. S. Government securities (par value)....... Unamortized premium on investments ......... $ 1, 045, 574.99* Total .................................... Assets purchased from insured institutions to prevent default............................... Less: Allowance for losses.................. 1,117, 765.53 10, 146.38 710.35 9, 436.03 Pending and unclaimed insured accounts in liquidated institutions.......................... Less: Allowance for losses.................. 213, 978, 568.15 927,787.27 10, 146. 38 710.35 Accrued interest on investments................. 213, 962, 000.00 16, 568.15 192, 627, 632. 39 Total .................................... 192, 612,000.00 15, 632.39 9, 436.03 3, 325, 473. 08 132,155.25 Total .................................... 3, 193,317.83 Furniture, fixtures and equipment ............... Less: Reserve for depreciation............... 53, 960. 38 53, 960. 38 -0 Total .................................... Deferred charges: Home Loan Bank Board...................... Fidelity bond and other insurance premiums .. . Preliminary expenses on problem cases ....... Total .................................... 61, 590. 48 -0 -0 61,590.48 Total assets ............................. 199, 592, 516.81 -0 -0 -0 50, 981.32 50, 981.32 -0 71, 879.65 463.64 2, 924.38 75, 267.67 216, 777, 858. 29* LIABILITIES AND CAPITAL Liabilities: Accounts payable............................ Accrued liabilities ........................... Accrued payments in lieu of dividends on capital stock .............................. Deductions from employees' salaries. ......... Funds held in escrow........................ Pending and unclaimed insured accounts in liquidated institutions ...................... Custodial funds - receiverships............... T otal................................ Deferred credits: Unearned insurance premiums ............... Prepaid insurance premiums................. Unapplied collections....................... Total.................................... Capital: Capital stock ............................... Reserve fund as provided by law.............. Unallocated income.......................... Total.......................... Total liabilities and capital................ .... -0 29, 977.38 151.42 30, 932.28 1, 000, 000. 00 15, 921.23 12,227. 15 13, 861.15 -0 10, 146. 38 11,120. 29 10, 146.38 11, 115.01 1, 079, 392.43 66, 206.24 -0 4, 576, 185. 89 346, 088. 75 574.79 3, 807, 041. 75* 1, 816, 037.46* 37.25 4, 922, 849.43 5,623,116.46* 100, 000,000.00 88, 205, 486. 31 5, 384, 788. 64 100, 000, 00. 00 105, 194, 656,22* 5, 893, 879. 37* 93, 590, 274. 95 111,088, 535.59* 199, 592, 516.81 216, 777, 858.,29* * Adjusted to reflect the effect of estimated changes due to retroactive reduction of premium rate on June 27, 1950, by Public Law No. 576, 81st Congress. 17 HOME EXHIBIT LOAN BANK BOARD 6 FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION Statement of operations for the calendar years 1950 and 1949 January 1, 1950 through December 31, 1950 Operating income: Insurance premiums earned.................... Admission fees earned...................... Interest earned on U. S. Government securities... Miscellaneous ........................ ......... Total operating income...................... $ 8,451,489.07* 134, 337.32 4,624, 019.70 837.78 (-) Total operating expenses and losses ........... Net income from operations .................. Nonoperating income: Profit on sale of securities ...................... Sale of furniture, fixtures and equipment ......... Miscellaneous ................................. Net income before adjustment of valuation reserves .................................. reserves: on subrogated accounts in in liquidation............... on assets purchased from ........................... on pending and unclaimed liquidated institutions ....... Net adjustment of valuation reserves .......... Net income before payment of return on capital stock.................................... 13, 831, 555.47* 599,511. 94 10,912. 96 5, 003.60 278, 372. 19 594, 745.89 893, 800.69 12, 614, 262.42* -0 12, 937, 754. 78* 744.40 .06 190, 843. 77 6, 441. 02 -0 197, 284.79 -0- 12, 615, 006.88* 390. 63 -0 13, 134, 648. 94* 280, 025.28 -0 132, 155.25 (-) -0 132, 155.25 (-) 8.26 280, 033. 54 12,482, 851.63* Provision for return on capital stock in lieu of dividends..................................... ........... 2, 000, 000. 00 13, 414, 682. 48* 10, 482, 851.63* -0 13, 414, 682.48* * Reflects estimated reduction due to retroactive change in premium rate on June 27, Public Law No. 576, 81st Congress. 53* 72 44 78 744.46 Commission on securities.... Net income .................... 881. 686. 631. 355. 579, 963.34 11, 166.55 3, 937.86 321.86 (-) Total nonoperating income.................... Adjustment of valuation Provision for losses insured institutions Provision for losses insured institutions Provision for losses insured accounts in 9, 068, 79, 4, 677, 5, $ 13, 209, 008.31* Operating expenses and losses: Administrative expenses ........................ Liquidation and other expenses .................. Depreciation of furniture, fixtures and equipment.. Losses on subrogated accounts ................. Nonoperating charges: January 1, 1949 through December 31, 1949 1950, by HOME LOAN BANK 18 BOARD EXHIBIT 7 HOME OWNERS' LOAN CORPORATION Statement of income and expense from beginning of operations, June 13, 1933, to December 31, Operating and other income: Interest: Mortgage loans and advances . Vendee accounts and ad vances .................... 1950 $1,055, 754, 663. 78 136, 207, 716. 91 1,191, 962,380.69 1, 417, 726. 52 Special investments.......... Property income ......................... .......... Dividends received--F. S. &L. I. C.................... Dividends on investnments in savings and loan associations...................................... Premium on sale of loans............................ Miscellaneous ..................................... $1, 193, 380, 107.21 138,645, 668.78 28,217,076.07 44, 745, 331. 53 2, 177, 343.29 9, 768, 731.01 1,416, 934, 257.89 Operating and other expenses: Interest on bonded indebtedness.. Less: Premium on bonds sold... 655, 209, 1,618, 653, 590, 7, 147, 272, 410, 18, 712, 112, 826, Discount on refunded bonds. ..... Administrative expenses ........ General expenses .............. Property expense .............. 292. 74 866.43 426. 31 710. 28 223. 84 108.35 726. 95 1,064,687,195.73 Net income before provision for losses which may be 352,247, 062.16 sustained in the liquidation of assets .................. Losses and provision for losses: On mortgage loans, interest and property. ................ 349, 737, 153.25 For fidelity and casualties ...... For fire and other hazards...... For uncollectible accounts receivable ................... Total provision for losses .... Losses on investments. ......... 1, 372, 053. 31 881,252.50 75, 944.89 .. 352, 066, 403. 95 34, 264. 80* Total losses and provision for losses .............. 352, 100, 668. 75 Net income after losses and provision for losses for period June 13, 1933 to December 31, 1950 .......... Add: Surplus adjustments--reserve against fire and other hazards, reserve for losses on mortgage loans, interest and property and unlocated pay 13,764,260.90 ............ m ents (net)....................... Surplus at December 31, 146,393.41 1950.................... .... 13,910,654.31 * Excess liquidating dividends of $31, 080. 61 included in income "Dividends on investments in savings and loan associations". 19 HOME EXHIBIT HOME OWNERS' LOAN BANK 8 LOAN CORPORATION Statement of income and expense for calendar year 1950 Operating and other income: Interest: Mortgage loans and advances ........................ Vendee accounts and advances ....................... $ 2, 955,181.38 1, 478, 607. 92 4, 433, 789.30 42, 756.87 Special investments................................. ...... Total..................................... Property income..................................... Dividends received from savings and loan associations... Premiums on sale of loans ............................. Miscellaneous ....................................... Total income.................. ................ .. Operating and other expenses: Interest on bonded indebtedness......................... Administrative expenses .............................. General expenses .................................... Property expense .................................... Total expense..................................... Net income before provision for losses which may be sustained in the liquidation of assets..................... Provision for losses: On mortgage loans, interest and property............... For fidelity and casualties ............................ For fire and other hazards............................. For uncollectible accounts receivable .................. Total provision for losses .......................... Losses on investments in savings and loan associations .. Total losses ...................................... Net income for calendar year after provision for losses..... Add: Surplus adjustments--reserve against fire and other hazards, reserve for losses on mortgage loans, interest and property and unlocated payments (net) ........................ Surplus at December 31, Surplus at December 31, 1949.................... 1950 ............................ 4, 476, 546. 17 -0 13, 454.25 1, 897, 495. 86 166, 599.91 6, 554, 096. 19 17, 368.78 1, 783, 484.87 36,693.51 511.90 1,838, 059.06 4, 716, 037.13 -0 275.00 -0 8, 134.11 8,409.11 3, 707. 32* 12, 116.43 4, 703, 920.70 415,433.26 8, 791, 300. 35 13, 910, 654. 31 * Excess liquidating dividends of $31, 080. 61 included in income "Dividends on investments in savings and loan associations"--Exhibit 7. BOARD
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