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'6I 3 3 OF ATLANTl -.I FEDERAL RESERVE BANK OF ATLANTA SIXTY-FIRST ANNUAL REPORT 1' 1975 .-. . I . FEDERAL RESERVE BANK OF ATLANTA SIXTY-FIRST ANNUAL REPORT 1975 January 2,1976 TO ALL BANKS I N THE SIXTH FEDERAL RESERVE DISTRICT: Presented in this report are a comparative statement of condition of this bank as of December 31,1974 and 1975, a comparative statement of earnings and expenses for 1974 and 1975, and a comparative statement of operations for those years. Also presented are highlights of 1975 operations and current lists of our directors and officers. President 1975 0 NS MIAMI OFFICE GIVEN BRANCH STATUS Improved services to South Florida banks were heralded in April by the announcement that the Board of Governors had approved full Branch status for the Miami Office effective July 1, 1975. The phasing in o f services formerly handled by the Jacksonville Branch began in June and continued through October 1. The Miami Branch now offers a wide range o f services in the areas of reserve accounting, funds transfer, and Fiscal Agency services related to Government securities and Federal tax receipt processing. COMMUNICATIONS NETWORK ENHANCED The Sixth District’s Communications Network, begun in 1973, connects District member banks and the six District offices with each other through terminals and leased telephone lines controlled by a computer switch located in Atlanta. I n turn, the Sixth District network connects to commercial banks and other Federal Reserve offices across the nation through the Federal Reserve System’s switching facilities in Culpeper, Virginia. The Sixth District network i s utilized for wire transfer of funds, security transfers, administrative messages, return item advices, and currency and coin requests. Banks are now permitted to utilize this network to transmit various types o f securities-related information. This service decreases the time between a decision to make a securities transaction and i t s execution by the Reserve Bank, which, in turn, improves the member bank’s ability t o manage i t s reserve position. The District’s communications network was expanded during 1975. The network, which includes 95 terminals, is now serving 58 District commercial banks as well as the six Federal Reserve offices. I n addition to the five banks that came on-line with mini-computer terminals, fifteen banks with relatively less volume were added to the network through a program using the lower speed and less costly TWX terminals. The number of messages handled in December 1975 was up 18% from December 1974. COMPUTER CONVERSIONS Major computer conversions were completed in 1975 and others were approved for 1976. The District adopted an automation philosophy which includes similar equipment installations in each District office, standardized software systems, and shared computer hardware resources between check processing and data processing. A District status report by office follows. c , Atlanta: Successfully completed conversions from second-generation check processing equipment and third-generation data processing equipment to a triple-processor, third-generation computer system now used for both check processing and data processing. Birmingham and Nashville: Received approval to replace second-generation check processing and data processing equipment with a single-processor, third-generation system in each office. Conversions will be completed by mid-1976. Jacksonville: Received approval to upgrade the existing shared third-generation, dual-processor system to a faster dual-processor configuration, also o f the third-generation. Conversion will be completed by mid-1976. Miami: Improved performance on the existing shared dual processor system. New Orleans: Successfully completed conversions from a second-generation check processing operation and a second-generation data processing operation to a dual-processor, thirdgeneration system. These computer conversions are improving computer performance, operational efficiency, and service t o member banks. REGIONAL CHECK PROCESSING In December 1975, the Birmingham Branch expanded i t s Regional Check Processing Center (RCPC) to cover i t s entire zone. RCPC objectives include earlier presentment o f checks for faster collection, reduction o f float, expeditious handling o f dishonored checks, and curtailment of check kiting fraud. With the exception of the Florida Panhandle area of the Jacksonville Zone, the District now offers District-wide RCPC services. RCPC expansion into the Panhandle is now being considered. RESERVE REQUIREMENTS EASED FOR BANKS CONVERTING TO MEMBERSHIP During the latter part of the year, the Board of Governors of the Federal Reserve System announced a policy which will provide transitional relief from reserve requirements when a nonmember bank joins the Federal Reserve System. The policy also provides relief when a member or nonmember bank merges into a member bank. The transitional relief i s in the form o f a waiver, by the Reserve Bank, of penalties for deficiencies in reserve requirements on a graduated basis over a 24-month period. A member bank covered by this policy would not have t o satisfy all o f i t s new reserve requirement until two years after becoming a member. DATA ON SCM'S FURNISHED TO BANKS In January 1975, a program was instituted by the Department o f Supervision and Regulation for computerized pricing of state, county, and municipal securities o f State member banks. A copy of the information compiled, including current market price, report o f pledged securities, and maturity distribution is furnished each bank as a service o f the Federal Reserve Bank. OFFICERS as o f January 1,1976 Monroe Kimbrel, President Kyle K. Fossum, First Vice President Arthur H. Kantner, Senior Vice President Robert P. Forrestal, Senior Vice President and General Counsel B. H. Hargett, Senior Vice President Brown R. Rawlings, Senior Vice President Harry C. Schiering, General Auditor Harry Brandt, Vice President and Director o f Research W. Ronnie Caldwell, Vice President Frank Craven, Vice President William N. Cox, I l l , Vice President and Associate Director o f Research Charles D. East, Vice President Delmar Harrison, Vice President Robert E. Heck, Vice President William G . Pfaff, Vice President Pierre M. Viguerie, Vice President Martha Bethea, Assistant Vice President Byron L. Bohannon, Assistant General Auditor John Branscomb, Assistant Vice President George Budd, Assistant Vice President David A. Callison, Assistant Vice President John T. Cleckley, Assistant Vice President Richard A. Dill, Assistant Vice President David E. Herrington, Assistant Vice President George Hibbert, Assistant General Counsel Eric B. Hingst, Assistant Vice President (also Secretary, Board of Directors) B. E. Howard, Assistant Vice President Kenneth J . Kearney, Assistant Vice President Zane R. Kelley, Examining Officer John R. Kerr, Assistant Vice President B. Frank King, Research Officer Wilbur W. Lawrence, Assistant Vice President john E. Leimone, Research Officer Ely S. Matteri, Assistant Vice President George W. Moseley, Assistant Vice President Ronald Robinson, Assistant Vice President Clifford M. Saxon, Assistant Vice President Robert Sexton, Assistant Vice President Jack R. Sicard, Assistant Vice President H. Terry Smith, Assistant Vice President Gene D. Sullivan, Research Officer Benjamin C. Wade, I I I , Assistant Vice President John M. Wallace, Assistant Vice President BIRMINGHAM BRANCH Hiram j . Honea, Vice President William A. Waller, J r., Assistant Vice President Fred Hoer, Assistant Vice President Robert G. Dole, Assistant Vice President John D. Swanson, Assistant Vice President JACKSONVILLE BRANCH E. C. Rainey, Senior Vice President Alan D. Davis, Assistant Vice President Vestus L. Crow, Vice President S. J.Stacklin, jr., Assistant Vice President Richard L. Berry, Assistant Vice President Cecil L. Williams, Assistant Vice President MIAMI BRANCH W. M. Davis, Vice President Robert j . Slack, Assistant Vice President Robert E. Lee, Assistant Vice President Patrick K. Barron, Assistant Vice President Jessie T. Watson, Assistant Vice President NASHVILLE BRANCH Jeffrey j . Wells, Vice President W. Ralph Thurman, Assistant Vice President James D. Hawkins, Assistant Vice President A. D. Sands, Assistant Vice President William W. Dykes, Assistant Vice President NEW ORLEANS BRANCH jack Guynn, Vice President H. C. DeBlonde, Assistant Vice President R. M. junca, Assistant Vice President E. Channing Workman, Assistant Vice President H. H. Bourgaux, Assistant Vice President Federal Reserve Bank o f Atlanta D IRECTORS H. G. Pattillo, (Chairman), Chairman, Pattillo Construction Company, Inc., Decatur, Georgia Clifford M. Kirtland, Jr., (Deputy Chairman), President, Cox BroadcastingCorporation, Atlanta, Georgia Fred Adams, Jr., President, Cal-Maine Foods, Inc., Jackson, Mississippi Ulysses V. Goodwyn, Executive Vice President, Southern Natural Resources, Inc., Birmingham, Alabama Robert D. Hornbeck, Manager-Tennessee Operations, Aluminum Company o f America, Alcoa, Tennessee George W. Jenkins, Chairman, Publix Super Markets, Inc., Lakeland, Florida Jack P. Keith, President, First National Bank, West Point, Georgia John T. Oliver, Jr., President, First National Bank, Jasper, Alabama Sam 1. Yarnell, Chairman, American National Bank & Trust Company, Chattanooga, Tennessee FEDERAL ADVISORY COUNCIL MEMBER Lawrence A. Merrigan President The Bank o f New Orleans and Trust Company New Orleans, Louisiana Birmingham Branch DIRECTORS Harold B. Blach, Jr., (Chairman), President, J. Blach & Sons, Inc., Birmingham, Alabama John Maples, Jr., Executive Vice President, Union Bank & Trust Company, Montgomery, Alabama William H. Martin, III, Executive Vice President, Martin Industries, Sheffield, Alabama Frank P. Samford, Jr., Chairman, Liberty National L i f e Insurance Company, Birmingham, Alabama Clarence L. Turnipseed, President, First National Bank, Brewton, Alabama D. C. Wadsworth, Jr., President, American National Bank o f Gadsden, Gadsden, Alabama Robert H. Woodrow, Jr., Chairman o f the Board and Chief Executive Officer, First National Bank o f Birmingham, Birmingham, Alabama Jacksonville Branch DIRECTORS Egbert R. BealI, (Chairman), President, Bea1I's Departme nt Stores, B rade nt o n, FIor ida John T. Cannon, 111, President, Barnett Bank o f Cocoa, N.A., Cocoa, Florida Richard A. Cooper, Chairman, First National Bank o f New Port Richey, New Port Richey, Florida Chauncey W. Lever, Chairman, Florida First National Bank, Jacksonville, Florida James E. Lyons, President, Lyons Industrial Corporation, Winter Haven, Florida Gert H. W. Schmidt, President, TeLeVision 12 of Jacksonville, Jacksonville, Florida MacDonell Tyre, Chairman, Sun First National Bank o f Orlando, Orlando, Florida Miami Branch D IRECTORS Castle W. Jordan, (Chairman), President, Aegis Corporation, Coral Gables, Florida Harry Hood Bassett, Chairman o f the Board, Southeast First National Bank of Miami, Miami, Florida Alvaro Luis Carta, President, Gulf + Western Americas Corporation, Vero Beach, Florida Jean McArthur Davis, President, McArthur Dairy, Inc., Miami, Florida Thomas F. Fleming, Jr., Chairman of the Board, First Bank and Trust Company, Boca Raton, Florida Michael J . Franco, Chairman of the Board, City National Bank o f Miami, Miami, Florida David G. Robinson, President, Edison Community College, Fort Myers, Florida NashviII e Branch DIRECTORS James W. Long, (Chairman), Farmer, Springfield, Tennessee John W. Andersen, President and Chief Executive Officer, First National Bank o f Sullivan County, Kingsport, Tennessee John C. Bolinger, Jr., Management Consultant, Knoxville, Tennessee T. Scott Fillebrown, Jr., Vice Chairman, First American National Bank, Nashville, Tennessee W. M. Johnson, President, First National Bank, Sparta, Tennessee Fred R. Lawson, President, Blount National Bank, Maryville, Tennessee James R. Lawson, Fisk University, Nashville, Tennessee New Orleans Branch D I RECTORS Edwin J.Caplan, (Chairman), President, Caplan’s Men’s Shops, Inc., Alexandria, Louisiana George C. Cortright, J r., Planter, Rolling Fork, Mississippi Hettie Dawes Eaves, Executive Vice President, Avondale Shipyards, Inc., New Orleans, Louisiana R. B. Lampton, President, First National Bank, Jackson, Mississippi Charles W. McCoy, Chairman of the Board and President, Louisiana National Bank of Baton Rouge, Baton Rouge, Louisiana Martin C. Miler, Chairman o f the Board and President, The Hibernia National Bank, New Orleans, Louisiana Wilmore W. Whitmore, President and Chief Executive Officer, First National Bank of Houma, Houma, Louisiana STATEMENT OF CONDITION ASSETS December 31. 1974 Gold Certificates ............................. $ 343.215. 192 2 2.000. 000 Special Drawing Rights Certificate Account . . . . . . Federal Reserve Notes o f Other Banks . . . . . . . . . . . . 192.222. 612 OtherCash ............................... 34.513. 230 Subtotal ............................... 591.951.034 Discounts and Advances ..................... 19.140. 000 U.S. Government Securities..................... 4.573.563. 000 Federal Agency Obligations. . . . . . . . . . . . . . . . . . . 268.629. 000 Total Loans and Securities . . . . . . . . . . . . . . . . . 4.861.332. 000 Other Assets: Cash Items in Process o f Collection . . . . . . . . . . . . . 1.389.265. 963 14.385. 110 Bank Premises and Capital Equipment (Net) . . . . . . A 11 Other ................................. 73.078. 155 Total Other Assets........................ 1.476.729. 228 TOTAL ASSETS ...................... .$6.930.012. 262 December 31. 1975 $ 61 1.241. 099 28.000. 000 235.051. 852 43.063. 522 917.356.473 3 7.45 0.0 0 0 4. 527.645. 0 0 0 3 1 7.03 1.000 4.882.126. 000 920.911. 043 14.384. 279 100.112. 384 1.035.407. 706 $6.834.890. 179 LIABILITIES Federal Reserve Notes........................ .$3.984.485. 687 Deposits : Member Bank Reserve Accounts . . . . . . . . . . . . . . . 1.726.951. 031 Due t o Other F.R. Banks - Collected Funds. . . . . . -0U.S. Treasurer - General Account . . . . . . . . . . . . . 97.281. 479 Foreign .................................. 21.170. 000 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47.668. 508 Total Deposits ........................... 1.893.071. 018 0the r L iab iIities : Deferred Availability Cash Items . . . . . . . . . . . . . . . 849.824. 509 AllOther . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65.649. 348 -0Due to Other FR Banks - Settlement Account . . . . Total Other Liabilities ..................... 91 5.473. 857 TOTAL L IAB IL I T IES . . . . . . . . . . . . . . . . . . .$6.793.030. 562 $4.049.153. 260 1.577.729. 587 -0- 360.754. 736 19.957.600 39.45 9. 72 3 1.997.901. 646 496.956. 533 61.967. 522 85.369. 818 644.293. 873 $6.691.348.779 CAPITA L ACCOUNTS Capital Paid I n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 68.490. 850 Surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68.490. 850 Total Capital Accounts ...................... 136.981. 700 TOTA L L IAB IL I T IES CAPITAL ACCOUNTS . . . . . . . . . . . . . . . . ..$6.930.012. 262 $ 71.770. 700 71.770. 700 1 4 3 3 4 1.400 $6.834.890. 179 ~ EARNINGS AND EXPENSES 1974 ......................... Net Expenses.. ................................ Current Net Earnings. ....................... Total Current Earnings .$344,032,93 1 50,879,939 .$293,152,992 1975 $323,483,217 54,689,311 $268,793,906 Additions to Current Net Earnings: Profit on Sales of U. S. Government Securities (Net). .......................... -0- 2,022,793 .................................. Total Additions. ............................ 159,633 159,633 21 8,183 2,240,976 2,262,100 2.921.343 5,183,443 18,376,608 32.457 18,409,065 -5,023,810 $288,129,182 -1 6,168,089 $252,625,817 AllOther Deductions from Current Net Earnings: Loss on Foreign Exchange Transactions (Net). ..... ................................ Total Deductions. ........................... All Other.. Net Additions (+) Deductions (-) Net Earnings Before Payment to U. S. Treasury DISTRIBUTION OF NET EARNINGS Dividends Paid. ............................... .$ Payments t o U.S. Treasury (Interest on F.R. Notes) . . . . 3,968,021 277,674,711 $ 4,243,371 245,102,596 Transferred to Surplus Account . . . . . . . . . . . . . . +6,486,450 ...................... $288,129,182 Net Additions (+) Deductions (-). Total Earnings Distributed +3,279,850 $252,625,817 SURPLUS ACCOUNTS Surplus January 1 ............................. . . . . . . . . . . . . . . . . 6,486,450 .......................... .$ 68,490,850 Transferred to Surplus - As Above. Surplus December 31 .$ 62,004,400 $68,490,850 3,279,850 $71,770,700 I STATEMENT OF OPERATIONS Items Dollars 1974 Loans to Member banks ...... 14.9 billion 1974 1975 1.9 billion 3,239 1975 675 Currency and coin receipts ............................ 6.6 billion 7.7 billion N/A NIA Currency and coin payments.......................... 5.8 billion 6.5 billion N/A N/A Currency processed .............. 6.3 billion 7.3 billion 61 3.3 million 581.9 million 234.3 million 245.7 million 1.9 billion 1.9 billion 1.5 billion 1.6 billion Coin processed..................... ...528.3 billion 548.9 billion Noncash collections .............. 365 million 348 million Check clearing operations Wire transfers o f funds ........ 1.7 trillion 1.7 trillion .... 38.7 billion 61 .O billion U. S. Savings Bonds issued, exchanged, redeemed ...... 1.6 billion 1.2 billion Wire transfer o f securities Other Government securities issued, exchanged, redeemed ...... 60.8 586 thousand 426 thousand 1.3 million 1.6 million 72 thousand 81 thousand 19.5 million 18.7 million billion 65.8 billion 438 thousand 373 thousand 7.7 billion 12.2 billion 93 thousand 123 thousand in conventional form ........ 2.9 billion 2.6 billion 3 6 thousand 30 thousand Securities held i n safekeeping in book-entry form .............. BANKI NG STAT1ST ICs 1974 1975 ....................... 646 658 ..................... 1,308 1,348 ......................... 41 37 Member banks a t year end.. Nonmember banks at year end Nonpar banks a t year end I 4 c . .-., - .., C'
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