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HOUSING AND HOME FINANCE AGENCY HOME LOAN BANK BOARD of 0 0 0 0 so. SUMMARY OF OPERATIONS FOR 1951 FEDERAL HOME LOAN BANK SYSTEM FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION HOME OWNERS' LOAN CORPORATION Washington, D. C. FOREWORD The Home Loan Bank Board has prepared for your convenient reference the following "Summary of Operations" of the agencies of the Board during the calendar year 1951. The current activities of the Federal Home Loan Bank System and the Federal Savings and Loan Insurance Corporation are presented briefly, as well as a review of the progress made toward the final liquidation of the Home Owners' Loan Corporation. William K. Divers, Chairman J. Alston Adams, Member Kenneth G. Heisler, Member HOME LOAN BANK BOARD February 1952 FEDERAL HOME LOAN BANK SYSTEM Membership in the Federal Home Loan Bank System reflected a net increase of 51 members during the year to a total of 3, 9'81 on December 31, 1951. These institutions, with estimated assets of $18, 415, 000, 000, com prise 3,950 savings and loan associations, 25 savings banks, and 6 insurance companies. There were 44 applications for membership pending at the end of the year. On December 31, 1951, 2, 220 member institutions representing 55.8 percent of total membership were borrowers from the Federal Home Loan Banks as compared with 2,278 member borrowers or 58.0 percent a year pre viously. A comparison of the 1951 lending operations of the Federal Home Loan Banks with those of prior years, is presented in Exhibit 1 of this Summary. With advances of $422, 977, 074 and repayments setting an all-time high of $432,997,025, advances outstanding on December 31,1951, stood at $805,936,767 or a decrease of $10,019,951 from the record year-end high of $815,956,718 outstanding at the close of 1950. It should be pointed out, however, that the average amount of advances outstanding during the calendar year 1951 exceeded $772, 000, 000, while such average for 1950 was less than $520, 000, 000. Secured advances outstanding on December 31, 1951, reached a new month-end high of $596,622,190 and represented the borrowings of 1,479 members and one nonmember mortgagee. On the same date, unsecured advances of $209, 314, 577 were held by 978 member institutions. Secured advances outstanding on December 31, 1951, accounted for 74 percent and un secured advances for 26 percent of the total, whereas such percentages on December 31, 1950, were 70 and 30, respectively. Primarily as the result of an amendment to the Federal Home Loan Bank Act, effective June 27, 1951, requiring each member to acquire and hold stock in its Federal Home Loan Bank in an amount equal to two percent of its net home mortgage loans, the member-owned capital stock of the Federal Home Loan Banks increased $88, 105,125 during the year to a new high of $270, 651, 625. Also during the year, the balance of the Government-owned capital stock in the amount of $56, 021, 900 was retired at par. The capital stock of the eleven Federal Home Loan Banks is now wholly owned by their respective member institutions. 2 HOME LOAN BANK BOARD As will be noted from Exhibit 2, the capital structure of the Federal Home Loan Banks as of the close of 1951 and 1950 was as follows: December 31, 1951 December 31, 1950 CAPITAL STOCK Members: Stock Subscribed Less: Unpaid Subscriptions Total Paid in by Members $271, 374, 700 723, 075 270, 651, 625 U. S. Government -- Fully Paid -0 Total Paid-in Capital $182,597,900 51,400 182,546,500 56, 021, 900 270, 651, 625 238, 568, 400 Legal Reserve Reserve for Contingencies Undivided Profits 15, 735, 677 5, 510, 758 10, 580, 756 14, 476, 647 5,624,807 9, 801, 851 Total Surplus 31, 827, 191 29, 903, 305 Total Capital $302,478,816 $268, 471, 705 SURPLUS Funds required by the Banks are obtained from capital stock payments and deposits by members, and from public or private sales of the Banks' con solidated obligations. Although an amendment to the Federal Home Loan Bank Act, effective June 27, 1950, authorizes the Secretary of the Treasury to purchase obligations of the Federal Home Loan Banks to a total not exceed ing $1,000,000,000 outstanding at any one time, no request for such purchases has as yet been made. During the calendar year 1951, eleven public offerings of consolidated obligations of the Federal Home Loan Banks were made in the total amount of $843, 500, 000 while nine issues totaling $875, 000, 000 were retired. At the close of the year seven issues were outstanding in the total amount of $529,500,000, including $5,000,000 of two issues maturing February 15, 1952, which had been acquired and were held by two Federal Home Loan Banks. Time deposits of members in the Federal Home Loan Banks amounted to $217, 258, 089 and demand deposits were $43,977,691, or a total of $261, 235,780 on December 31,1951. This represents an increase of $37,138,921 over total deposits of $224, 096,859 on December 31, 1950. The increase consisted principally of time deposits. During 1951 interbank deposits of $9, 500, 000 were made. At the close of 1951 interbank deposits totaled $1, 500, 000 as compared with $1, 000, 000 a year previous. FEDERAL HOME LOAN BANK SYSTEM Investment securities owned (excluding consolidated Federal Home Loan Bank obligations held) increased from $197, 435, 500 at the diose of 1950 to a total of $248, 112, 500 on December 31, 1951. During 1951 invest ment securities were purchased at an aggregate cost of $540,950,000, while sales and maturities approximated $491, 587, 000. A comparative condensed statement of income and expense of the eleven Federal Home Loan Banks for the calendar years 1951 and 1950 is given in Exhibit 3. This exhibit reflects that the earned operating income of the Banks during the year totaled $21, 974, 713, an increase of $6, 495, 241, which is due almost entirely to a larger interest income on advances resulting princi pally from a higher average amount outstanding and, to a lesser extent, upward adjustments in rates of interest charged by some Banks. Non-operating income decreased from $595,392 in 1950 to $92,722 during 1951, principally because of a decline in profit on sales of securities. Operating expenses during 1951 totaled $15, 729, 514 and represented a 65 percent increase over the 1950 total. The principal increase is confined to costs of consolidated obligations which reflect a 140 percent increase over the 1950 costs. Net income for 1951, slightly less than the 1950 figure for reasons set forth above, and the net income from the beginning of operations through December 31, 1951, were distributed as follows: Calendar Year 1951 Amount Percent Dividends Paid: U. S. Government Members $ October 1932 to December 31, 1951 Amount Percent 62,500 4, 297,262 1.0 68.3 $26, 176, 170 19,376,004 33.5 24.8 4, 359,762 69.3 45,552,174 58.3 Retirement Fund--Prior Service 11,501 Legal Reserve 1,259 030 Contingent Reserve - 114,048 Undivided Profits 778,904 0.2 20.0 -1.8 12.3 667,460 15, 735,677 5, 510, 758 10, 580, 756 0.9 20.2 7.0 13.6 100.0 $78,046,825 100.0 Total Total Net Income $6,295,149 Dividend declarations by the Banks during 1951 ranged from 1 percent to 2-1/4 percent per annum. It will be noted from the above tabulation that dividend payments for 1951 equaled 69. 3 percent of the 1951 net income, while dividends since the beginning of operations equal but 58. 3 percent of the cumulative net income. 4 HOME LOAN BANK BOARD FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION The Federal Savings and Loan Insurance Corporation was created in To 1934 to insure savings in institutions of the savings and loan type. qualify for membership, an institution must have unimpaired capital and must operate under safe financial policies and management. The Corpo ration quarantees the safety of savings against loss in each insured association up to $10, 000 for each saver or investor. The cost to the institution for this insurance protection is an annual premium of 1/12 of 1 percent of the total amount of all accounts of the institution's savers or investors plus creditor obligations. On December 31, 1951, insured institutions totaled 3,020--a new high--representing a net increase of 160 over the previous record of 2, 860 Federal savings and loan associations, for which in reached last year. surance is mandatory, accounted for 1,549 of the total insured membership and State-chartered institutions, for which insurance is optional, accounted for 1,471. The assets of insured institutions, totaling $16, 204, 000, 000, repre sented 85 percent of the total assets of all savings and loan associations. The number and assets of insured associations, by States and Federal Home Loan Bank Districts, on December 31, 1951, and December 31, 1950, are presented in Exhibit 4. At the close of the year over 9, 000, 000 savers and investors held accounts in insured institutions. Total savings in these institutions amounted to $13, 653, 000, 000, of which about 98 percent was fully insured. As a protection to the savers and investors in insured institutions, 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 purcnasing some or all of its assets. When an insured institution is declared in default and is placed in liquidation, the Corporation may pay the insured accounts in cash or may make accounts in other operating insured associations available to the savers of the institution in liquidation. FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION The assets of the 3,020 insured institutions totaled $16, 204, 000, 000 at the close of the calendar year 1951, an 18 percent increase over the previous year-end total. First mortgage loans accounted for about 82 percent of total assets. Mortgage loans made by insured associations during the reporting period amounted to $4, 501, 000, 000 and represented a 3 percent increase over the previous high set in 1950. Savings capital at the close of 1951 totaled $13, 653, 000, 000 as com pared with $11,374, 000,000 a year ago. During the calendar year 1951, withdrawals were equivalent to 67 percent of new savings received. On December 31, 1951, the combined reserves and undivided profits of insured institutions had increased to $1, 160, 000, 000 and represented 7. 2 percent of assets or 8. 5 percent of savings capital. Exhibit 5 presents a comparative statement of condition of the Federal Savings and Loan Insurance Corporation as of December 31, 1951, and December 31, 1950. As seen from the statement, assets of the Corporation totaled $208,211,786 at the close of the calendar year 1951 as compared with $199,592,517 at the preceding year-end. As in the previous year, these assets consisted almost entirely of United States Government securities. The Corporation is retiring its capital stock, held by the United States Treasury, by making annual payments, on a fiscal-year basis, in an amount equal to one-half of its income after expenses and losses. Payment during the calendar year 1951 of $6, 716, 000 reduced the outstanding capital stock to $93, 284, 000 on December 31, 1951. Also, in accordance with statutory requirements, the Corporation provided for the payment to the U.S. Treasury of $1, 762, 573 as a return on capital stock for the year 1951. From organi zation to June 30,1951, the Corporation has paid $33,891,438 for this purpose. The potential liability of the Corporation, which consists of the insured amount of all accounts of insured institutions plus their creditor obligations, totaled $14, 314, 000, 000 at the close of 1951. Against this potential liability, the Corporation has a primary protection of $93,284,000 in capital stock plus a reserve for losses of $106,118,581. This serves to supplement the $1, 160, 000, 000 of reserves and undivided profits held by insured members at the close of 1951. The Corporation also has a secondary protection of $750, 000, 000 which it may call upon the United States Treasury to advance for purposes of paying insurance. No part of this authority has been used. 5 6 HOME LOAN BANK BOARD The income of the Federal Savings and Loan Insurance Corporation is derived principally from the annual premiums paid by insured members and from earnings on investments. During the calendar year 1951 the gross income of the Corporation, as seen in Exhibit 6, totaled $14,803,622. This was a 12 percent increase over the $13,209,753 income for the previous Expenses of the Corporation during 1951 equaled $645,012, less year. than 5 percent of total income. Premiums totaling $10, 125, 281 paid by insured institutions during 1951 represented the largest source of income, while income from investments totaled $4, 515, 07 1. HOME OWNERS' LOAN CORPORATION HOME OWNERS' LOAN CORPORATION Created June 13,1933, as atemporary emergency relief measure, the Home Owners' Loan Corporation was directed by the Congress to commence The scheduled liquidation as soon as its purposes had been accomplished. three-year lending period ended June 12, 1936. During that period the Corporation made loans totaling $3, 093, 451, 321 to 1, 017, 821 home owners who, had it not been for its existence, would have lost their homes through foreclosure . Capitalized additions of $405, 451, 791 for taxes, insurance, maintenance, reconditioning, and acquisition costs brought the cumulative investment as of June 30, 1951, to $3, 498, 903, 112. Since 1936 the program for the liquidation of the assets of the Corpo At the close of 1950 only ration has progressed in an orderly manner. $9, 595, 895 of the Corporation's total investment was unliquidated. During the calendar year 1951 the Corporation "went out of business" as a mortgage holding agency of the Government. By December 31, 1951, the Corporation had disposed of all its assets. The $200, 000, 000 stock of the Corporation, originally subscribed by the U. S. Government, was retired by repurchase at par value from the Secretary of the Treasury by the close of the calendar year 1950, and the amount thereof was paid into the Treasury of the United States and the re ceipts evidencing ownership of such stock were canceled. The Corporation issued its bonds to the extent of $3, 489, 453, 550. Such bond issues have either been called or matured and all bonds have been redeemed with the exception of a relatively small amount which has not been presented for payment. However, funds are on deposit with the Treasurer of the United States for the retirement of these outstanding bonds. Exhibit 7 presents a cumulative statement of income, expense, loss, and surplus of the Corporation from June 13, 1933, to December 31, 1951. The total i n come of the Corporation during its operations aggregated $1, 417, 134, 830 and its expenses amounted to $1, 065, 052, 681, or a net in come of $352, 082, 149, of which a reserve of $351, 990, 459 was established for losses on loans and interest, property, fidelity and casualties, fire and A cumulative total loss of $338, 016, 707 was sustained by other hazards. the Corporation, of which $337, 893, 825 was charged against this reserve. Thus the surplus or net earnings after losses was $14, 065, 442. 7 HOME 8 LOAN BANK BOARD During May 1951 the Corporation paid into the Treasury of the United States $13, 800, 000 of this surplus, thus reducing its available surplus at June 30,1951, to $265,442. Due to a reduction in accrued liabilities princi pally as a result of the transfer of employees to other Government agencies, the surplus was increased by $3, 147, to $268, 589 on November 30, 1951. Pursuant to the Independent Offices Appropriation Act, 1952, approved August 31, 1951, surplus funds of the Home Owners' Loan Corporation totaling $75,000 were made available to the Home Loan Bank Board to cover post audit and miscellaneous expenses, possible claims against the Corpo ration, and the costs of the final liquidation report to be submitted to the Congress as required by Section 20 of the Federal Home Loan Bank Act. The residue surplus of $193, 589 was paid into the Treasury of the United States during December 1951, thus accounting for the Corporation 's total surplus of $14, 068, 589 as of December 31, 1951. 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 pocket - size attached information card. wt Co Co Co C C;e Lo t- * to eq Lo .fL L - q C LO* t- 0 MCe 0C4 60 -4j0 q c I"-4 0 U1 Co 0 r OI u0 e C-0C -C V4 404 t C-t-CD tV- U"4j4 0m w4 L- cz~q Co U ) CqrE-an Co t t~o *. 0 eq1 .0 eqI C4 Mr Cd C 00p 00U C E 00'( 'I14 Hf 0 .4 M 54 •. 0 0 E-100000a*p q. ccX0 o,. .!! 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U) P)a: :3 O' CO Ooz.0.0 w Lii C Q0 0 C) 0 C 0 0 co( 0 0 <oto C oCA mC :3 0 iC; Hj '~ C :3 > 0 90 N 0( toMA-to 0 CO 000 C)P 0 z4 COA"otCO 0W00 CO 04 En H 0n00 0000 0 z CO W C) 0 -o w4 &OCO C 0CO- C WOC0 A&(0D (MC CD0O A -13CO)to COt-- to CO-4CD cn (0 w 0 PP. & -o CA C( 40 L44C 0 0 0 C C 9 En CO . 0 CDCD-X 0 v m MC0M lq z >z 0 . 0 CDdC M M M %M n:3 M m .. Lx 1 I- 1 H0O tCtA e+0 MCD mP M 30 C-14 2 C' C W ' m 0wD ~ 40D 93CO 'AW g 04 0P)po0 r+ m "I14Q moo CDC!O 00 m 09w r 0'-dt 0'Egnr CCDOtJH 04Vi H 0 0 UQ ,. 00J--AO O0Om ( tOObCO- m CCOICCO0C m HOME LOAN BANK BOARD LIST OF EXHIBITS 1. Federal Home Loan Banks--Summary of Lending Operations, 1932-1951. 2. Federal Home Loan Banks--Comparative Consolidated State ment of Condition as of December 31, 1951, and December 31, 1950. 3. Federal Home Loan Banks--Comparative Consolidated State ment of Operations for the Calendar Years 1951 and 1950. 4. Federal Savings and Loan Insurance Corporation--Number and Assets of Insured Savings and Loan Associations, by Type, December 31, 1951, and December 31, 1950. 5. Federal Savings and Loan Insurance Corporation--Statement of Condition as of December 31, 1951, and December 31, 1950. 6. Federal Savings and Loan Insurance Corporation--Statement of Operations for the Calendar Years 1951 and 1950. 7. Home Owners ' Loan Corporation -- Statement of Income, Expense, Loss, and Surplus, cumulative from June 13, 1933, to December 31, 1951. 10 HOME EXHIBIT LOAN BANK BOARD 1 FEDERAL HOME LOAN BANKS Summary of Lending Operations Balance Outstanding End of Year Calendar Year 1951 Federal Home Loan Banks Repayments Advances Boston New York Pittsburgh $ $ 30,224,900.00 76,974, 209.47 27,286,700.00 30,624,997.00 69,464,930.13 23,635, 130.00 $ 50,334, 086.00 103,662,030.60 66,029,515.00 Greensboro Cincinnati Indianapolis 47,558,500.00 31,637,000.00 21,852,450.00 45,015,513.36 30,659,025.00 17,344,591.59 92,625,375.95 52,213,650.00 58,021,048.37 Chicago Des Moines Little Rock 48,450,437.68 21,325,660.00 21,790, 500.00 32,911,128.29 24,004,709.86 20,988,944.00 147,690,347.00 52,668,606.50 43,405,862.00 Topeka San Francisco 12,700,250.00 83,176,467.00 21,500,696.47 116,847,358.85 30,849,770.00 108,436,476.00 432,997,024.55 $805,936,767.42 Total - Year Grand Total - -- 1951 $ $ 422,977,074.15 1950 1949 1948 1947 674,756,649.69 255,662,641.50 359,612,776.74 351,079,350.99 292,229,081.73 337,249,580.83 280, 168,873.35 208,961,931.93 815,956,717.82 433,429,149.86 515,016,089.19 435,572,185.80 1946 1945 1944 329,231,890.68 277,748,276.84 239,254,221.89 230,649,366.93 213,438,982.95 218,759,089.74 293,454,766.74 194,872,242.99 130,562,949. 10 1943 1942 1941 156,925,588.93 99,461,876.19 157,600,420.85 176,070,303.60 189,695,394.41 139,646,335.38 110,067,816.95 129,212,531.62 219,446,049.84 1940 1939 1938 134,212, 165". 93 94,780,586.64 81,958,343.39 114,033,192.20 112,310,034.15 83,153,601.22 201,491,964.37 181,312,990.64 198,842,438.15 1937 1936 1935 123,251,172.91 93,257,057.50 59, 130,068.56 68,440,498.13 50,715,704.66 43,046,971.39 200,037,695.98 145,227,021.20 102,685,668.36 1934 1933 1932 38,675,566.12 90,032,164.49 837,500.00 37,515,249.30 5,427,410.12 -0- 86,602,571.19 85,442,254.37 837,500.00 $4,040,445,393.99 -L $3,234,508,626. 57 I HOME LOAN BANK 11 BOARD EXHIBIT 2 FEDERAL HOME LOAN BANKS Comparative Consolidated Statement of Condition as of Dates Indicated December 31,1950 December 31, 1951 Items ASSETS Cash: On hand - Including Imprest Funds.. On deposit with: Treasurer of the United States . . Commercial Banks . . . . . . . . Total cash . . . . . . . . . . $ $ 19,660.28 39,881.58 9,729,204.85 26,146,436.68 35,895,301.81 22,020,069.89 18,419,169.32 40,479,120.79 Investment Securities . . . . . . . . . . . . . . . . . 249,520,917.81 199,313,821.53 Advances outstanding: Secured . . . . . . . . . . . . . . . . . . . . . . .. Unsecured . Total advances outstanding . . 596,622,190.42 209,314,577.00 805,936,767.42 567,972,507.52 247,984,210.30 815, 956,717. 82 Accrued interest receivable . . . . . . . . . . . . . . Deferred charges . . . . . . . . . . . . . . . . . . . Other assets . . . . . . . . . . . . . . . . . . . . . 3,171,119.14 739,431.70 12,111.14 2,425,334.72 271,744.00 11,654.14 . . . . $1,095,275,649.02 $1,058,458,393.00 $ $ Total assets 0 0 . . 0 . 0 6 0 0 0 0 . . . . . . . . . . . . . 0 LIABTLITIES AND CAPITAL Liabilities: Deposits: Members - time . . . . . . . . . . . Members - demand . . . . . . . . . Government instrumentalities - demand Applicants for membership . . . . . Total deposits . . . . . . . . . . Accrued interest payable . . . . . . . . . . . . . . . .. . . . . . . . . . . .. . . . . 217,258,088.99 43,977,691.13 . 261,706,880.12 183,967,090.18 40,129,769.01 180,000.00 86,850.00 224,363,709.19 . . . . . . . . . . . . 4,431,358.75 3,428,040.32 2,126,375.65 -0 2, 126,375.65 1,415,374.66 465,233.50 1,880,608.16 32,218.20 524,500,000.00 314,330.05 560,000,000.00 Dividends payable: Member institutiona . . . . U. S. Treasury . . . . . . . Total dividends payable . -0 471,100.00 00 Accounts payable . . . . . . . . . . Consolidated obligations (net) ] . . . Total liabilities. . . . . . . . . . . . ... . . $ 792,796,832.72 $ 789,986,687.72 Capital: Capital stock (par): Amount paid in by members on stock . . . . . . . U. S. Government subscriptions (fully paid) . . . Total paid in on capital stock . . . . . . . . . $ 270,651,625.00 -0270,651,625.00 $ 182,546,500.00 56,021,900.00 238,568,400.00 Surplus-earned: Legal reserve . . . . . . . . . . . . . . . . . ..... Reserve for contingencies . . . . . . . . . . . . . . Undivided profits . . * ................. * * Total earned surplus . . . . . . . . . . . . . Total capital . . . . . . . . . . . . . . . Total liabilities and capital .... 14, 476,647.07 5,624,806.68 9,801,851.53 29,903,305.28 15,735,676.93 5,510,758.42 10,580,755.95 31,827,191.30 $ . . . . . . ... 302,478,816.30 $1,095,275,649.02 $ 268,471,705.28 $1,058,458,393.00 I j/ 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. 12 HOME EXHIBIT LOAN BANK BOARD 3 FEDERAL HOME LOAN BANKS Comparative Consolidated Statement of Income and Expense for the Calendar Years Indicated Year ended December 31, 1951 Year ended December 31, 1950 $17,089,441.76 4,879,682.27 5,588.93 $10,524,968.23 4,950,588.99 3,915.18 21,974,712.96 15,479,472.40 Operating expenses: Compensation . . . . . . . . . . . . . . . Travel . . . . . . . . . . . . . . . . . . Other operating expenses . . . . . . . . . . 1,044, 478.85 103,737.10 394, 144.86 935,402.13 99,946.62 377,486.16 Interest on consolidated obligations . . . . . Consolidated obligations expense - concessions Paid through office of fiscal agent . . . . . . 10,224,127.90 533,019.16 70, 134.04 4, 233,301.61 253,085.01 49, 366. 32 Interest on members' deposits . . . . . . . . GAO audit expense . . . . . . . . . . . . . Assessment for expenses of HLB Board . . . 2,958,732.30 8, 350.88 392,789.00 3,136,596.14 6,951.47 441,250.00 Items Earned operating income: Interest on advances . . . . . . . . . . . . . . . . . . . . . . Interest on securities. . Miscellaneous. . . . . . . . . . . . . . . . . . . . . . . Total operating income. . Total operating expenses. . . 15,729,514.09 9,533,385.46 Net operating income . . . . . . . . . . $ 6,245,198.87 $ 5,946,086,94 Non-operating income: Profit - sales of securities. . . . . . . . . Furniture and equipment sales . . . . . . ... Miscellaneous .. . . . ............... . 88,096.38 3,650.40 974.86 590,569.45 4,748.96 73.61 92,721.64 595, 392.02 16,670.15 26,101.19 28,260.40 50,212.72 42,771.34 78,473.12 $ 6,295,149.17 $ 6,463,005.84 . . . . Non-operating charges: Loss - sales of securities . . . . . . Furniture and equipment purchased . . Total non-operating charges. . _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . . . . . . . . . . Net income . . . . . . . . . . . _ . . . . . . . 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HOME LOAN 15 BOARD BANK EXHIBIT 5 FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION Statement of Condition as of Dates Indicated December 31, 1951 Items i. Cash ........... .. ASSETS ... ....................... Accounts receivable: Insurance premiums - payments Insurance premiums - payments Admission fees receivable...... Advances for traveling expenses Due from governmental agencies M iscellaneous............................... $ -0 -0 4.00 ........... Total .................... ... Investments: U. S. Government securities (par value) ....... Net unamortized premium and discount on investments ......... ...................... T otal ............................ ....... Accrued interest on investments. ............... Pending and unclaimed insured accounts in liquidated institutions ......................... Less: Allowance for losses ............... Total ........ .. ...................... Assets purchased from insured institutions to prevent default ............................... Less: Allowance for losses .................. T otal .............. ............... . Furniture, fixtures and equipment......... Less: Reserve for depreciation .............. Total ...................... ....... 192, 612, 000. 00 208,406.33 15,632.39 199, 781,593. 67 192, 627, 632. 39 994, 254. 36 927, 787.27 7,046.38 596.23 10,146.38 710.35 6,450.15 9,436.03 969, 298.94 3, 325,473.08 132, 155.25 969, 298.94 3, 193, 317.83 55, 347.10 55, 347.10 53, 960.38 53, 960.38 143, 108.91 722.12 61, 590.48 143,831.03 61,590.48 ... ... ... .. 2, 477, 974.84 29, 977.38 887, 573. 22 19, 293.03 -0 1,000, 000.00 15, 921. 23 12, 227.15 .. 7, 046. 38 8, 132.84 10, 146.38 11,120 29 . 3,400,020.31 1,079, 392 43 5,409,175.34 9.06 4, 576, 185. 89 346, 088.75 574.79 . .. .. -0 ........ ...... Reserve fund as provided by law ...... . ..... Unallocated income .... . .. ..... . . . . . . . . . . Total ............ .. ....... . . . . . . . ..... . Total liabilities and capital ................ -0 199, 592, 516.81 .......... .... -0 208, 211,786.06 Deferred credits: Unearned insurance premiums .......... .. . . Prepaid insurance premiums ..... ........... Unapplied collections . . ................... . Capital: Capital stock........ -0 -0 . . .. LIABILITIES AND CAPITAL Liabilities: 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 ............ .. -0 199, 990, 000. 00 720 32 Total......................... 11-7, 549.52 2, 116, 669. 61 2,106.72 300 00 469.49 .... . .......... Total........................ 535,657 47 ..... .... ....... $ 2, 237, 095. 34 Other assets ................................. Total assets ............... 1950 3, 111,730. 98 -0 Deferred charges: Home Loan Bank Board ........ .......... .. Fidelity bond and other insurance premiums . ... Total ....................... 3,203,906.61 240, 915. 33 2,868, 250.64 2,561.01 due .......... deferred ...... ............. .............. ............. December 31, i I 5,409,184.40 4, 922,849.43 93, 284, 000.00 100, 000, 000.00 99, 761,632.55 6, 356, 948.80 88, 205, 486.31 5, 384, 788.64 106, 118, 581.35 93,590,274.95 $208, 211,786.06 $199, 592, 516.81 16 HOME EXHIBIT LOAN BANK BOARD 6 FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION Statement of Operations for the Calendar Years 1950 and 1951 Items Operating income: Insurance premiums earned ..................... Admission fees earned. ..................... .. Interest earned on U. S. Government securities ... M iscellaneous ................................. Total operating income ....................... January 1, 1951 through December 31, 1951 $10, 125, 281.36 161,137.40 4, 515, 070.95 6.57 $ 8,451,489.07* 134, 337-. 32 4, 624, 019. 70 837.78(-) 14, 801, 496. 28 13, 209, 008.31* Operating expenses and losses: Administrative expenses........................ Liquidation and other expenses .................. Services rendered by Home Loan Bank Board ..... Depreciation of furniture, fixtures and equipment.. Losses on subrogated accounts .................. 489, 5, 144, 4, 734.12 838.98 187.31** 764. 30 112.55 644, 637.26 Total operating expenses and losses ........... Net income from operations .................. January 1, 1950 through December 31, 1950 14, 156, 859. 02 579, 963.34 11, 166.55 -0 3, 937.86 321.86(-) 594, 745.89 12, 614, 262.42* Nonoperating income: Sale of furniture, fixtures and equipment ......... Miscellaneous.................................. 984.00 1,142.25 744.40 .06 Total nonoperating income. ................... 2, 126.25 744.46 Nonoperating charges: Commission on securities.... 375.02 Net income before adjustment of valuation reserves.. 14, 158, 610.25 Adjustment of valuation Provision for losses insured institutions Provision for losses insured accounts in reserves: on assets purchased from ...................... ..... on pending and unclaimed liquidated institutions ....... 132, 155.25 114.12 Net adjustment of valuation reserves .......... Net income before payment of return on capital stock ........................................... Provision for return on capital stock in lieu of dividends...................... ................ Net incom e ...................................... 132, 269.37 -0 12, 615, 006.88* 132, 155. 25(-) -0 132, 155. 25(-) 14, 290, 879.62 12,482,851.63* 1,762, 573.22 2, 000,000.00 12, 528, 306.40 10, 482, 851.63* -- * Reflects estimated reduction due to retroactive change in premium rate on June 27, 1950, by Public Law No. 576, 81st Congress. ** Classified as administrative expenses prior to June 30, 1951. HOME LOAN BANK 17 BOARD EXHIBIT 7 STATEMENT OF INCOME, EXPENSE, LOSS AND SURPLUS CUMULATIVE FROM INCEPTION OF HOME OWNERS' LOAN CORPORATION JUNE 13, 1933 TO DECEMBER 31, 1951 Operating and other income: Interest: Mortgage loans and advances .. . . . Vendee accounts and advances . . . Investments - Government securities . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . Dividends: Capital stock - Federal Savings and Loan Insurance Corporation Investments in savings and loan associations . . . . . . . . . Property management operations............................. . . . . . . Insurance commissions - Stock Company Association Premium on sale of loan accounts . ........................... . . . . . . . $1, 055,792, 756. 97 136, 223, 865.56 1, 417, 726. 52 . . . . . . 28, 217,076.07 44, 745, 479. 03 . . . . . . . . Rental income: Federal Home Loan Bank Board Building . . . . Leaseholds . . . . . . . . . . . . . . . . . . Miscellaneous ................. . . . $1, 193,434, 349.05 72,962,555. 10 138,645,668.78 3,073,582.02 2,241,649.11 . . . 1,882,713.62 357, 810.85 2,240, 524. 47 4, 536, 500.98 1,417, 134, 829. 51 Operating and other expense: Interest-Bonded indebtedness . . . . . . . . .. Less: Premium on bonds sold . . . . . . . . . Discount on refunded bonds . .......... Administrative expenses: Personal services . . . . . . . . . . . . . Travel, transportation and communications . . Rents-Space, equipment, and related facilities Other . . . . . . . . . . . . . . . . ... Property management expenses . . . . . . . . General operating expenses . . . . . . . . . . Net income before losses . $655, 209,292. 74 1,618,866.43 . 224, 17, 14, 16, . . . . . . 653, 590, 426.31 7, 147, 710.28 752,775. 25 026, 146. 83 546, 126. 87 442,627.66 . . . . . . . . . . . . . . . . . .• . .• 272,767,676.61 112, 826, 733.45 18, 720, 134.12 1, 065, 052, 680.77 . ................. 352,082,148.74 Losses: Principal and interest: Mortgage loans . . . . . ............... . Vendee accounts .............. Discount on loans sold . . . . . . . . . . . . . Property losses - Sales . . . . . . . ... . . Other property losses . . . . . . . . . . . . . Losses on loans, interest and properties . . . 356,053.55 15,918.72 19,533.97 336, 548,215.74 214, 514.22 . . . . . . . . . . 337, 154, 236.20 Other losses: Fidelity and casualties . . . . . . . . . . . . Fire and other hazards . . . . . . . . . . . Losses on investments . . . . . . . . . . . . Miscellaneous . . . .............. Total losses . . . . . . . . . . . . . . . Surplus net income . ....................... Reduction: Paid into Treasury of the United States, May 1951 . 372,053. 31 367,535.65 34, 264.80 88,617.02 . . . . . . . . . . . . . . . . . 338, 016, 706. 98 . . . . . . . . . . . . . . . 14,065,441.76 . . . 13, 800,000.00 . 265,441.76 Net Surplus at June 30,1951................. Addition: Reduction in accrued liabilities, November 1951. . . . . ... 3, 146.88 268, 588.64 Reductions: Allocated to HLBB for expenses, claims etc. Paid into U. S. Treasury, December 1951 . Net Surplus December 31,1951 ....... . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ . . 75,000.00 193,588.64 . . . . . . 268,588. 64 $ -0-
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