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ANN U A L
FEDERAL RESERVE BANK
of C LEV E LAN 0
REP
0
R T
The Federal Reserve System i
respon ibl for formulating and implementing U . . monetalY policy. It
al 0 supervises banks and bank
holding companie. , and provides financial services to depositoly in titutions and the federal government.
The Federal Reserve Bank of Cleveland i one of 12 regional Reserve
Banks in the United State that, together with the Board of Governors
in Wa hington , D .C., compri e the
Federal Reserve System.
The Federal Reserv Bank of Cleveland , its two branches in Cincinnati
and Pittsburgh, and its Columbus
Office erve the Fourth Federal Reerve District. The Fourth District includes Ohio, western Penn ylvania,
the northern panhandle of We t
Virginia , and eastern Kentucky.
It is th policy of the Federal Rerve Bank of Cleveland to provide
equal employm nt opporrunities for
qualified persons regardless of race,
creed , color, national origin , age,
gender, or disability.
2 President's Foreword
6
1993 Highlights
11
Officers
12
Directors
14
Comparative Financial Statement
16 Small Bank Advisory Counci l and
Small Busines AdvisoIY Council
PRESIDENT ' S FOREWORD
The year 1993 will no doubt
be remembered as a turning point,
a time when major directionsconomic and political , internalional ,
This is e\'ident in the L' .S, economy,
as households and busines. es at
national, and 1=1- were changed
last 'eem ready to make the neces-
and the future was embraced.
sary investments to
en~ure
a more
pro perou , stable future. The imbalances caused by
exce~sive
per onal
and corporate debt, by overcapacity
in real estate, and by downsizing to
improve productivity and world
competitivene
continue to be cor-
rected. Though many have argued
that the ongoing recove,y has not
been strong enough or fast enough,
the gro\yth is real and has been accompli 'hed without the devastating
urge in inflation that often accompanies economic upturns.
(standing) C. Wails Humphrey.]r ..
A . William Reynolds, andra Pianalto
(sealed) jen)' L. jordcl/1
Given thar one of the few contribu-
BANKING
tions a central bank can make lO a
[n fact, our banking institutions are
EXCELLENCE
nation 's economic progress is lO main-
already leading the nation. Judged by
tain price stability, J would have
capitalization levels, return on assets,
wished to see a much lower inflation
return on equity. and loan loss re-
rate than even the relatively modest
continue to fare well. During me
serves, our banks are dle 'trongest in
3 percent we experienced in 1993,
recession and early in the current
the country and among the best in
expansion, this region did not suffer
the world. [ have had the opportunity
that households and businesses ex-
the same degree of decline as had
to meet widl dle chief executive offi-
pect inflation to continue and that
been the tradition for dle so-called
cers of nearly every commercial bank
they are skeptical about the Federal
Ru ·t Belt. We can attribute our suc-
in dlis DisU'ict over the last 18 monms
Reserve's resolve in taking the neces-
cess to the fact that, over the last
as well as widl me top management
sarI' steps to contain it. In my remarks
decade, we improved our productiv-
of several of dle region's thrift in:;titu-
to bankers, policymakers, and
ity and developed a more balanced
tions, and [ cannot help but feel fortu-
academics last year, [ emphasized
industria I mix.
nate to be working with such a
urveys and current re earch indicate
that dle central bank remains commit-
dynamic group.
ted to reestablishing trust in the pur-
The region 's stable economy during
chasing power of the dollar. \yhich is
dle past two years and our increased
Because of the confidence I h,!\'e in
crucial to maximizing and fulfilling
presence in foreign markets attest to
our District's banking leader hip,
the productive capacity of this nation,
the gains we have made. After dec-
early in 1993 I publicly proposed
ades of painful economic restructuring
that the industry and its regulator
Cel1ainly. the economy and the
and conservative banking inve tment.
begin a whole new approach to
banking institution of the Fourth
I believe mat we are no\\' poised lO
bank regulation. This approach
Federal Reserve Di ·trict -
regain our historic position as the
would allow market forces to di ci-
country's economic leader.
pline banks. rather than using the
which
includes the state of Ohio, the
western third of Pennsylvania, the
costly and often counterproductive
norulem panhandle of West Virginia,
regulatory apparatus nm>,' in place.
and the ea tern half of Kentucky-
-
reflect my belief that market force
-
are powerful and efficient regulators
began to reap significant benefits
and that we must unlea hour insti-
from these efforts by placing first
My recommendation include public
tutions' potential for success in order
among the twelve Federal Reserve
di closure of regulatory risk ratings,
to compete in the world's financial
Districts in unit co t efficiency.
adoption of market-value accounting
services marketplace.
systems to provide a more accurate
Our top ranking is a particularly
picture of a bank' fmandal condition,
important milestone for this District:
COMPETITIVE
and incentives to encourage banks to
Increasing competition will surely
It is the first time in the eventeen
CHALLENGES
maintain high levels of capital. Fur-
change the face of the financial serv-
thermore, especially well-run, well-
ice industry. The strategies that were
y tem began u ing unit cost as a
capitalized organizations should be
successful in a highly regulated envi-
measure of effiCiency that we have
given the opportunity to consolidate
ronment will almost certainly need
been ranked number one.
more easily or to develop more effi-
to change a banks compete in more
cient corporate tructure, rather
open markets. The Federal Reserve
Last year also marked the fir t time
than having to react to restrictive
System itself, with its pivotal role in
in our Bank's 80-year hi tory that
regulation and negative incentives
the nation's payment sy tem, has
we were reviewed by a team of in-
when making business decisions.
been challenged by many of the
dependent auditors rather than by
same forces that are confronting de-
Federal Reserve System offiCial .
Regulations imposed with even the
pository financial institutions. everal
We received a very positive report,
be t of intentions entail ub tantial
years ago, the leader hip of this Dis-
and our standard and qualitie
costs, many of which are unintended.
trict recognized the necessity of im-
were deemed to be of the same
Indeed, the entire economy is harmed
proving our efficiency, of providing
high caliber as tho e founel in the
to the extent that regulation lowers
customer-driven, price-competitive
best commercial banks.
the efficiency of the financial system
services, and of developing quality
and, therefore, the real growth poten-
in everything we do. In 1993, we
tial of the economy. These propo als
years since the Federal Reserve
We are proud of these accomplishments, bUI we also see them as
I would also like to express my
turning pOint. The dynamic en i-
fulfillment of all our public responsi-
gratitude to our Federal Advisory
ronment of rhe twenty-firsr century
bilities by the considerable experi-
Council member, john B. McCoy
will require an entirely different per-
ence of our 23 dire tors and our
(chairman and chief executive
Small Bank and Small Business
officer of Banc One Corporation).
Advisory Councils.
lie has very ably repre ented the
pective on how we do business, a
per pective that places customer
Fourth District on lhi national coun-
service, quality, and efficiency at
the ery center of our mission. The
I especially want to recognize the
cil since] 991, and will be replaced
management of our District has
contribution' of those Cleveland di-
in 199q by Frank Cahouet.
thu developed a traregic plan for
rectOr who completed their terms
the coming five years that takes a
of service: Verna K. Gibson (pre i-
Clearly,
bolder approach to our traditional
dent, Outlook Consulting Interna-
ment of the Federal Reserve Bank
role as a provider of payments
tional , Inc.) and john R. Hodges
of Cleveland and irs office in Cin-
services, regulator of stare-chartered
(retired preSident, Ohio AFL-CIO).
cinnati, Columbus, and Pittsburgh,
member banks, and decisionmaker
Thanks are al
1993 was a signifi ant year, one in
in the setting of monetary policy.
directors of our two branch offices:
which each accomplishment eemed
jack W. Buchanan (pre idem, Sphar
to open new vistas. I am grateful to
As a result, the Fourth Di trict has
& Company, Inc.) and Marvin
my colleagues here -
at every level
begun to realign irs re ources. From
Rosenberg (Panner, Towne Properrie
of our organization -
for their con-
introducing progres ive, cu tomer-
Ltd.) of our Cincinnati board, and
tributions, and I look forward to th e
focu ed employee [raining programs
Frank V. Cahouet (chairman, pre i-
years ahead.
to enhancing efficiency through wide-
dent, and chief executive officer,
ranging automation projecrs, we are
Mellon Bank Corporation and Mellon
committed to continuously improving
Bank,
our effectiveness. We are guided in
Jr.
the e efforts and are a isted in the
cer, Consolidated Natural Ga Com-
0
due to the outgoing
.A.) and George A. Davidson,
(chainnan and chief executive offi-
pany) of our Pittsburgh board.
10
the staff and manage-
•
One of the bigge t challenges facing
1993 HIGHLIGHTS
participants in the payments ystem
is LO eliminate the expensive and
The need for ever-increasing effi-
time-consuming proce
ciency drives the Federal Reserve
paper checks. [n response to thi
ystem in its role as the guardian of
the nation' payments sy tem.
ince
of moving
challenge. the Fourth District has refined several electronic check products that promi e to improve the
BUILDING A
MORE EFFICIENT
PAYMENTS
SYSTEM
efficiency of the check-clearing system by taking advantage of existing
electronic processing and communi-
1913, the Fed ha been ar the fore-
cation technology.
front of payments system technology. We have developed national
For example, all of the information
transportation and accounting settle-
necessaty to po t a check to a cu -
ment ystems thar enable institutions
tomer's account i contained in the
to clear interbank check more
[[CR line, a machine-readable code
efficiently, helped to de ign and
printed along the bottom of every
te t state-of-the-art check-proce sing
check. Yet million of pap r he k
sy tems, led the banking industry in
are transported acros the country
setting standards for encoding
each day, from the institution \vhere
check for more efficient process-
the check was deposited to the in ti-
ing, and implemented oftware and
tution on which it was drawn. Why
hardware to provide value-added
not imply capture the MICR infor-
ervices to our customer.
mation and wtnsmit it electronically
to the payor institution?
TIle Foulth District has pioneered the
effoIt to provide just such a service
so that our customer receive the
A similar effo It took pl ace in 1993.
informati on they need much sooner.
w hen th e Fed eral Reserve Bank o f
In 1993, w e w ere success ful in ga in-
a foundati on for such electronic
Cleveland helped Fourth Distri ct in-
ing w ider customer acceptance for
enhancement '. Th e new item-
stitutions convert to an all-electronic
ou r electronic check products -
processing system also allow s
automated clearinghou e (ACI!)
cru cial step in reducing reliance on
checks to he soned and balanced
environment.
paper items and ultimately improv-
more effiCiently, has an increased
acces~
ing the effi ciency o f th e payments
ca paCity to process electronic fil es,
ti ons nationwide, either directl y or
is faster, and is compatible with the
th ro ugh service pro vid er , and have
opt fo r the Distri ct's trunca tion
full range o f electronic communica-
new options in deposit deadlines
servi ce, checks d o not need to be
ti ons interfaces.
that allo w o riginator quicker turn-
a
ystem . In fact, if payor instituti ons
moved from th e Federal Heserve at
o w , customers have
to 2').000 depOsitory institu-
around times in delivering payments.
all : They are simply stored until
For everal yeal , the Fourth District
needed or destroyed .
has led the Federal Reserve ystem 's
I-I ere in the Fourth Di tri ct, w e are
effoIt to d evelop this o ftware, as
taking adva ntage o f the potential
The next step in reducing the mo ve-
\yell as software to speed check ad-
for using ACI I even more effi-
ment of paper is imaging -
justment . From the initial resea rch
ciently. We have expanded our pro-
crea ting an electroni c pi cture o f all
to implementatio n and testing, a
gram to help utilities automatica lly
components o f a check and then
tea m o f District programmers,
debit households electroni ca ll y, a
··storing" th at information in ele -
check-p rocessing pro fessional , and
fuIth er effoIt to p rovide customers
tJ·o nic form . In 1993, the Distri ct
customer servi ce specialists have
with cost-effec tive, dependable pay-
introd uced software th at provides
w orked across departments and
ment ervice and to timul ate the
o ffice to bring th e latest technology
growth o f electronic payments.
that is,
to our customers.
sa vings bonds are handled . Our
Pittsburgh o frice, in particular, ha
S{ll'il1gS BOllC/
COIL olidatioll
been at the forefront o f strea mlining
The Pittsburgh facility has also bee n
many aspects o f savings bond i u-
na med as one of two loca tio ns in
ance and redemption.
th e count ry to handle th
printing
and mailing o f an estim ated 70 mil-
The u.s. Treasury, especially
th rough its activities in the Bureau of
DEVELOPING
WORLD-CLASS SERVICE
FOR THE WORLD ' S
LARGEST CUSTOMER
tile Public Debt, is the Federal Re-
lion savings bond annually. Ultimately, th e o ffi ce will ervi ce about
60 percent of th e Federal Reserve
serve y tem's bigge t custo mer.
Thi s expertise culminated in the
More than that, the Burea u has an
aw ard o f several permanent assign-
it will continue to be the only na-
important relatio nship w ith our
ments for that facility. It w as named
tionaI w arehouse fo r unis ued 'av-
o th er customers: depository financial
as one o f fi ve Federal Reserve sites
ings bond stock, will provide stock
institutions til ro ughout the counny
in the counllY to be a Regional De-
conSignment to all i uing agents
that parti cipate in marketing and
livelY System (ROS) office for savings
across th e counuy, and will remain
process ing TreasLllY securities and
bond issuance, a w ell as a center
the onl y nati onal proces ing ite for
savings bonds. The e are certainly rea-
for exchanges, redemptions, and
book-enllY savings bonds.
sons enough for the Fourth Di trict to
several other record keeping opera-
provi Ie a high level o f efficiency and
tions. Extensive modifica tions have
These projects are just a few examples
cu tomer service to tile Bureau.
already been made to our downtown
of the Federal Reserve ystem's on-
Pittsburgh building to accommodate
going str'dtegy to automate and con-
ystem's o lume. At the sa me time,
olidate the handling of savings bonds
Ilowever, we have gone beyond
the additional operations. By the time
simply maintaining a good business
consolidation is completed in 1996,
and other government debt in tru-
relati onshi p and have initiated sev-
staffing will have been increased
ments. In so doing, tile Fed sa ves tax-
eral successful automati on and con-
50 percent over fomler levels.
payers millions of dollars annually and
solidati on projects with the Burea u
demonsu-ates that good customer serv-
th at have revolutionized the way
ice mean taking on the challenges of
the world ' bigge t securitie issuer.
Pa)'lllents SJ1 te111 Risk
Cleveland ha reengineered its approach to a va ri ety o f info rmati o ngathering and analysis activiti e .
With the introducti o n o f th e Daylight
One o f th e Federal Re erve Sy tem 's
During ] 993, interrelated o perati o ns
O verd raft R po rting and Pricing
mandated roles is to m aintain th e
such as financial surveillance, data
stabili ty and integrity o f th e nati o n's
collectio n, administrati o n o f collat-
Bank -
payments system , especiall y as it o p-
eral fo r discount windo w loa ns, and
institutio n th emselves -
erate thro ugh depo ito lY fin ancial
mo nito ring o f intraday credit ri k
to ca pture much mo re informatio n
instituti o ns. In additio n , as th e en-
were consolidated under the sa me
abo ut institutio ns' Funding po itio ns
til y thaI guarantee the settlement
management within the Banking u-
on a rea l-time basis. This develo p-
o f trilli ons of do llars o f payment
pervision and Regulatio n Department.
ment directl y suppo rt th e Fo urth
tio ns through th e discount window ,
and deposito ry financia l
are able
Distri ct's superv isio n strategy: not to
thro ugh wire transfer o peratio n
and that advances loa ns to institu -
ystem ( DORPS) , Federal Reserve
NEW STRUCTURE
STREAMLINES
CREDIT RISK
MANAGEMENT
eliminate risk in banking, but to
help instituti o ns manage risk mo re
effecti vely in o rder to ensure a mo re
the Federal Re erve i itself at ri k .
This approach has enabled us ro
In order to maintain an effi cient and
manage our ri k mo re effi Ciently
stable payments system , as w ell as
through centralized o versight o f in-
to mo nito r the credit ri k expo ure
titutio n . financial conditio n , and
to Distri ct in ·tituti o n mo re effec-
to coordinate our effo rts to info rm
tively, th e Federal Reserve Bank o f
bankers about new d aylight overdraft po licie .
stable payments system .
th e Fed ca n best help th e nati on
ECOll0lnic
achieve its ultimate employment
Re earel:)
and interest-rate ohjectives.
[Q
During 1993, the Bank's resea rchers
contributed to public poli cy discus-
In pursuing this line o f inquily. the
Inrecent yea r ' , the Federal Reserve
sions by ta king a cl oser look at
Bank has puhlished several studi es
Bank of Cleveland has developed a
how price stabili ty i measured . At
that exa mine a variant o f the most
natio nal repu ta ti on for promo ting
i ' ue is the po tential erro r of basing
po pular measure of current infia-
price stabili ty as th e primary goa l o f
monet;lIY polic)' deci ions on hon -
ti on, the Con umer Price Index
monetalY po licy. The Bank 's eco-
term flu ctuatio ns in relative prices,
(C Pl) . This alternati ve . kn o wn as
no mic resea rchers, as w ell as its current and former presidents, ha ve
argu ed persuasively that controlling
the median CPI , shows a stronger
MEDIAN CPI STUDIES
HELP TO FRAME
EFFECTIVE MONETARY
POLICY DECISIONS
the price le\'el is the only goa l any
correlati on '\vith money suppl y
gro,\\1h than do other price-level
measures, making it a better tan-
nation's central bank can rea listi ca ll y
rath er than o n tru e signals that an
d ard for ga uging the tru e inflation-
achieve through moneralY po licy.
overall rise in the level o f all price
;IIY effect o f monetary po licy. Based
U . . law currently require th e Fed-
changes (inflatio n ) has occurred .
on this devel opment, th e Fourth Dis-
eral Reserve t
pur ue maximum
tri ct has taken a public po licy stance
employment gro'\\'th , moderate long-
on using the median CPl as a bench-
term interest rates, and price stabil -
mark for monitoring the nati on's
it y. Our Bank' po ition i ' th at price
monetalY objectives.
stability is the means through whi ch
Jerry l. Jordan
PIt'sldelll & CI1lefE.w!CIIIIl'e OJJieer
Sandra Plana Ito
FlrSI nee Pre Idelll & Chzef O/X'ITillll/i Officer
Charles A. Cerino
SC'lIlor \ "ice Presldel1l
Cillelllll(ll/ Cllld COllllllblls OJ/icC's
~F~E~D~E~R~A~l~R~E~S~E~R~V~E~B~A~N~K_O~F~C~l~E~V~E~l~A~N~D~O~F~FI~C~E~R~S~~I IDI
As o/December 31.
John M. Davis
~l!lIlOr
1993
\ "ice Presldelll & Dln'Clor of ResearciJ
Samuel D. Smith
SC'lIlor \ 'Ice Pres/delll
Factlilles. Financial Serl';ces. PrOleclion
Mark S. Snlderman
Harold J. Swart
Joseph C. Thorp
Sellior I 'ice President
Plllsl711 rg" Office
1'jct! Presidellt
Blllldlllg
Donald G. Vlncel
Robert Van Valkenburg
\ 'Ice Plt'sldelll (. Assac/me f)1/"('Clor
rif Research
William J. Major
....Is..ns/alll ";ce PresideNlt
Check C(Jl/eclulI/
'-ellior \ ·;n.~ President
\ "ice Pre~"iid(!",
Laura K. McGowan
Alllolllalloll, C(/sh, ~eellrilles FIscc". EEO Officer
Accoullting. Budget. Expense,
.-isr;lstalll "ice Presulent
Cbc'Ck Col/ecl/(J1/.
FIIICIIlciall'irlllllillg
Robert F. Ware
Secretal)' to the BOtlrd oj Directont
Senior \ ke Presidellt
Andrew W. WaHs
Cht'e" (.;'I/<lclloll. AU I.
Fllllds 7irlll.\fer. .IlarkellllR
\ "ice P/t-lsitlel,(
c- Regula/ory COllllsel
Charles F. Williams
James W. Rakowsky
A.'••.';;istallt '"ice PreSIdent
Data Proces"""R
John J. Wixted , Jr.
l'let! Preside,,'
Senior ,"(."'" Presidellt
CillCl/l/lCIII </l/t! Colllmblls QOlces
Lois A. Rlback
Terry N. BenneH
Ass;.\"/[1111 '-icC' Presulellt
Cash. Dtlla Processlllg. Dala )"Slems Suppm1.
.Harkellllg. EEO OjJlcer
Plllsl", rgh OjJlce
"upen'is;()11 allcl Rei!lIlatwII.
Ciwlil Rls" .I/(III(lgelllell/. DalCl Sen·lces.
Illforllllllloll SeclI,.,l)"
As..'\/~'\lalll
"ice Presidellt
CasiJ
Andrew J. Bazar
"ice Presldellt
Raymond L. Brinkman
.-llIlom(/IIOIl
As..'''ls/(I ut "fce Presldellt
Jake D. Breland
Fisc"I. Secunties. Accollllllng, Gelleral Sen 'ices
PIlIslJ/lrgh OjJlce
"ice President
Cas/). Sect/niles Fiscal
William T. Gavin
Andrew C. Burkle, Jr.
AssisU/l/1 \ 'icl? PI"('sldenl & &ol/olllisl
,HOlleICII), Policy alld .IJacroecollomlcs
\ 'Ice PreSldell1
SlIpen'lSlOIl a lid Regliial/oll.
011/1111111111)" AjJC/lrs OJflcer
Jill Goubeaux Clark
\ 'IC:C Presltiellt &- General Counsel
Lawrence Cuy
"ice
PIl~sidel1l
Supel'lt'\icJII tllld Regll/otifJlI
Elena M. McCall
Elaine G. Geller
David E. Rich
Assistallt "ice Pn/sidenl
Data COIJI III II UiCCItlOIIS, S)'stem.\" PflJp,rllmmlllR
John P. Robins
EXClm/llillg OJficer
Supen'isioll ancl RegulatiOIl
Terrence J. Roth
AssistaHi \ ',ce President
JJclrkelillR
As...ltiislalll "ice Presu.Jelll
Robert B. Schaub
Dala Sel1'Ices. "(forma/loll eClIl1ly
Robert J. Gorius
Assistall/ \ 'ice Presidellt
Cbeck Col/ecllUlI. Blliidillg. Proleclloll
Plllsbllrgb Office
Ass;slClIlI "ice Presidelll
Gellert" Sen 'ices COld JI(lil
William J. Smith
Eddie L. Hardy
b'lll/ll/lIlIg QOlcer
Ilpen'IS/CJ1I mill Regllialloll
ASS;!!jltlllt \ 'ice Pre..,,.ldellt
Personnel
Edward J. Stevens
Assistant \ "Ice PreSIdent
I "ice PreSident
Barbara H. Hertz
PC.JniOIlIJl!/
AssiSI" III \ '/ce Presidell!
Bllildillg. Casb Fiscal. Prolectioll.
Reglslele" .ITa"
CiIlCillllallOffice
James B. Thomson
David P. Jager
Walker F. Todd
R. Chris Moore
\ 'Ice Pre'idelll
llpelrisloll alld Regllialloll
Robert W, Price
\ 'ice Presidelll
Check Col/eel/ull. ACII.
Flillds Tmll.\fer
Edward E, Richardson
\ 'Ice Presldell!
.\/arkellllg
Asslstalll \ ice Preslllelll
ACfI. FIlIld.1 7im~\fer
Rayford P. Kallch
ASSI lalll \ "ice Presldell!
SlIpen'lslolI alld Regulatioll.
0"(,,,,1 Rls" ,\/c/l/agelllelll
Susan G. Schueller
Kevin P. Kelley
;L~r;isla", "ice President
\ 'ice Presidellt & General Auditor
Blldgel. Eypellse. FI/wlle/al Plallllillg
John E. Kleinhenz
As.....islall' "ice Presldellt
.I Tarkelillg
c- EculIlJlnist
.l/ollelary Pultc.!' all" PaYll1el1ls )'slelll
AssiS1C/171 \ 'Ice Pre.<iclelll & £eollomiSI
Ballklllg alld F/1I(/IIe/a/JtarkeIS
AssisWIII Gellercil COllllsel [. Researc/) OjJicer
Henry P. Trollo
AssiS16111l "ice President
AutomatIOn
Darell R. WIHrup
AssistCillt \ 'Ice Presulellt
ACCOlllllilig
_I
FEDERAL RESERVE BANK OF CLEVELAND DIRECTORS
As oj December 31, 1993
CLEVELAND
Chainnall & Federal Resenoe Agellt
A. William Reynolds
Chainllall & Chief Execlltive Officer
GenCorp
Fairlawll. Obio
John R. Hodges
Retiloed Presidellt
Ohio AFL-C/O
Columblls, Obio
DePII~Y Chaimlall
G. Watts Humphrey, Jr.
Presidelll. GIffH Holdillgs. /lIC.
Pittsbllrgh, Pellllsylvania
Alfred C. Leist
Cbainnall, Presldellt & Cb iq( Execlltive Officer
The Apple Creek Ballkillg Co.
Apple Creek, Ohio
Edward B. Brandon
Chainl/all & Cbief Execlltive Officer
Natiollal City CO/fJOratiOI/
Clevel<lIId, Obio
William T. McConnell
Chairman & Chief Execlltive Officer
nJe Park Natiollal Balik
Newark. Obio
Verna K. Gibson
Presidellt
Ollliook COllsulting Il1Iematiol/al. II/C.
Coillmblls, Ohio
Douglas E. Olesen
Presidellt & Cb ief ExeClitive Officer
Battelle MemoriallllStitllte
Coillmblls, Ohio
I. N. Rendall Harper, Jr.
Presitiellt & Cbief ExeClitive Officer
Americall Micrograpbics Co .. Illc.
MOllroeville, Penllsylvallla
CINCINNATI
ChainllCIII
Marvin Rosenberg
Pal1l1er
TOU'lIe Prope,1ies, Ltd
CillClllllall, Obio
PITISBURGH
Cba ,rmall
Robert P. BOllone
Presidelll & Cbief E.\·('Clltil'f! Officer
AlleghellY Llldillm Co,poratioll
Pittsbllrgb, Pellll.sylvclllia
Raymond A. Bradbury
Rellred ChClinllall
,l/011ill Call Ill)' Coal CorporatiOIl
Inez, Ke1llllcky
Frank V. Cahouet
Cbainllall, Presldelll & Cbief £xeCllliue Officer
Melloll Balik Co,poralioll & Mello II Balik, N A
Pittsbllrgb, Pellllsylvallia
Jack W. Buchanan
Presldelll
phar& CompallY, IIIC
1f'llIchesler, Kelllllcky
David S. Dahlmann
Presidelll & Cb lef E.xeclllll'e Officer
SOlllbwesl Salional Co/poralioll
Greensburg.
Pelllls),/t'llll;tl
Jerry W. Carey
Presidelll & Cb ief E.xeclllil'f! Officer
LIlllolI aliollol Balik and Tl7lsl Co.
Borbolllville. Kellll/cky
George A. Davidson, Jr.
Cbairmall & Cblef £>:f!ClltiL'f! Officer
COlLSoltdaleci ,valliral Gas Campa II)'
Pittsbll"Rb. Pellllsylvallia
Eleanor Hicks
Sellior Partller& Cb ief E.xeclllit'f! Officer
/licks & Klllle)'
Cincillllall, Obio
Sandra L. Phillips
£,'eclllil'e Dlreclor
Pittsbll"Rb POl1l1ersbip for Neigbborhood DeL'f!lopmelll
Plttsbllrgh, Pellllsyluallia
Marvin J. Stammen
Presidelll & Chief £XecIiIiL'f! Officer
Secolld ollollal Balik
G/~,(!lIvi/le, Ohio
Jack B. Piatt
Cba irmon oflbe Board
Millcrajl l lldllslries, Illc.
\fIashillgloll, Penll.~)"vallia
John N. Taylor, Jr.
Chail1llall & Ch ief E.:>:ecllliw Officer
KIITZ-Kasch, llIc.
Dayloll, Ohio
Randall L.C. Russell
Presidelll & Chief E.xeclilit'f! Officer
R{lIIbor Techllology, Illc.
GlellsiJall', Pennsylvania
1m
_I
COMPARATIVE FINANCIAL STATEMENT
STATEl\IENT OF CONDITION
Foryears elided December 37
1993
ASSET
Gold celtificate account
p ecia l d rawing rig ht ce rtificate account
$
701 ,000,000
1992
$
556,000,000
21 ,234, 140
Coin
Loa ns a nd ecuritie :
Loa ns to de pos ito ry institutio n
Federal agency obligatio ns bou g ht o utrig ht
25,995,434
-0-
-0-
311 ,578,704
340,680,714
10,772,433,990
8,872,000,411
8,924,796,483
7,438,416,40 1
2658, 156,406
2,205,304,963
$ 22,302,590,807
18,568,517,847
$ 22,614,1 69,5 11
$ 18,909, 198,56 1
274,834,436
442,406,029
37,373,597
1,800,8 16,531
-3,32 1,205,721
35,939,937
1,682,967,122
1,420, 144,348
$ 22,684, 222,494
$ 23,730,65 1.431
$ 20, 161,201,280
$ 21,679,962,723
1,556, 106,868
8,020,300
14, 204,742
1,340,703,323
8,45 1,200
U. . governme nt securities:
Bills
otes
Bo nds
To tal U.S. governme nt securities
658, 000 ,000
556,000,000
. ... ... ..... .. . . .. ................ , ...................... .. . .. . .. . ... .. ........... . .. . .... ....... . .. . ... .......... ............... .. ....... ....... , ............. . , ..
To ta l loans a nd securities
Cas h item in process of collectio n
Bank pre mi es
Othe r a set
Inte rdistrict settle me nt account
....... ............ . .................. . ............. ................. . . ... .. ... ............................................ ............................... .. .. . .. ..
TOTAL AS ETS
................... .. .. . .... , . .. .. .. .............. , .. , .. .. ... . ............. .................................... . .. . ..... . ........ . .... ....................... ... .. .. . .. . ...... ................. .
LIABILITIE
Fed e ra l Re erve n o te
De po it :
De p os ito lY in titutiQn
Fo re ig n
Othe r de posit
To tal de posits
1,578,33 1,910
Defe rred availa bility cash ite m
Othe r lia bilitie
14,900,693
$
1,364,055,216
339,713.652
157,918,052
220,326,754
113,869,63
$ 22,237, 164,894
23,378,21 4,331
.......................................... ...... ............ ..... . . .. ................. .. . .. ........... . ... ...... .......... ... .. .................. .. .. .............
TOTAL LIABILITIE
... .. .. ........................ .. .............. . ............................... . ........... ...................... .. . .. . .. . ................................... ......... .. ..... ... .. ...... ... ... .
CAPITAL
TS
ACCO
Ca pital paid in
urplus
S
223,528,800
223,528,800
$
447,057,600
$
176, 218.550
176, 218,550
........ .. ........ ... ....... .. ...... .......... ... .. .. ... ............... ........ ........... .. .. . .. .. ... .......... . .. . ........ . ........ ... ... . ... . . . .... . .. .........
TOTAL CAPITAL ACCO
$
TS
352,437,100
. ...................... .... . ................. . ...................... ... ... .. .. .. . . .......... ....... .......... ... .. ..... ... .............. . .. ... . .. .. .... . . .. . ...... .
TOTAL LIABILITIES AND CAPITAL ACCO
TS
22,684,222,494
$ 23,730,65 1,43 1
•
INCO.'\1E AND EXPENSES
For years ended Decelilber 31
]993
CURRENT
INCOME
Interest on loan
Interest on government securitie
Earnings on foreign currency
Income from ervices
All other income
Total cun-ent income
$
$
181
1,105,592,400
72,384,137
44,464,874
229,592
1992
$
51,177
1,083,681,615
127,851,245
43,856,164
284,196
1,222,671,184
1,255,724,397
.................................................................................................................................................................................................
CURRE T
EXPE SES
Current operating expen e
Cost of earning credits
$
1,132,681,854
$
74,893,149
7,166,749
....... " ...........................................................................................................................................................
CURRE T NET INCOME
PROFIT
DLO
79,232,490
10,756,840
Additions to
Profit on
Profit on
All other
$
current net income
foreign exchange tran actions
sales of government securitie
additions
1,173,664,499
15,319,310
2,556,007
2,776,384
-07,605,686
4,203
20,651,701
7,609,889
....................................................................................................................................................................
Total additions
Deductions from current net income
Loss on foreign exchange transactions
All other deduction
$
-033,032,393
$
65,585,542
10,279
..... ................ ........................ ......................... , .. , ................... , ..................................................................... .
Total deduction
$
33,032,393
$
65,595,821
et additions or deductions
Cost of Unreimbur able TreasLIIY ervices
A essment by Board of Governor
Expenditures
Federal Re erve currency co ts
12,380,692
1,685,403
57,985,932
1,751,906
8,215,500
23,192,101
7,795,200
18,485,886
...................................................................................................................................................................
Total assessments by Board of Governors
33,093,004
28,032,992
NET I COME AVAILABLE FOR DISTRIBUTIO
1,087,208,158
$ 1,087,645,575
........ ,.,., ......................................................... , .. " ......................................................................................................................
DISTRIBUTIO
OF NET
I COME
Dividends paid
Payments to U.S. TreasLIIY
(interest on Federal Reserve notes)
Transferred to surplus
..
"
12,010,618
1,027,887,290
47,310,250
$
10,100,417
1,062,482,358
15,062,800
................................................................................................................................................................
Total di tributed
$ 1,087, 208,158
$ 1,087,645, 575
_I
SMAll BANK ADVISORY COUNCil, 1993-94
Edward M. George
c/;o
Prt'Sidelll {-.
\\"esiJtI1ICO,
Inc
1I'1,eellll/l,.
Ires/
SMAll BUSINESS ADVISORY COUNCil, 1992-93
\'11"/I,11I/a
Jack A. Hartlngs
PlT'Sldelll (-. CEO
71:>e Peoples Ballklllg Campa II)'
Cold,m/er Oh,o
James E. Bushman
Peter N. Stephans
Presideut
Cas/-Fah Techllolog ies. Illc.
Cinelllllall , Oh IO
PresIde'"
DYllome/, IIIC
\f!ashillglO lI, Pellllsyll'all/a
Dale C. Phillip
John N. Taylor, Jr.
Presldell/
KijJer IlIdllslnes Illc.
Ciet'f!lalld, Ohio
CIJainnall (;. CEO
KII rz-Kasch. Illc.
DaY/Oil . Obio
James A. Poure
lee T. Todd, Jr.
Chairmall & CEO
Gelleral A llim (;. Cbemical Cotporalioll
" olland. Ob lO
Cbairmall & CEO
Dale/Beam CO/porcm on
Lexing toll , Kenttlcky
H. Edward Rigel
Richard D. Zande
Owner/Operalor
RIgel Fanlls In c.
leipsic, Obio
Chainll{11I
R. D . Zallde & Associa/es, Lid
Colllmblls, Ob io
E. Eugene lehman
P'T!Sldell/ {-. CEO
n'e
l"lIifm
Ballk Compa"y
Coillmhlls GrolV!. Ohio
Norma J. linville
Preslllelll (;. CEO
Farmers (-. Trllders BCII/k ofM/ OIiIV!/
,1/1 O"tV!/. Kell/llck) '
Richard C. Mizer
PlT'Sldem (;. CEO
CeIllIlIJ'Ballk
I pper Arlillg/Oll. Ohio
Robert F. Muth
Preside", {-. CEO
71Je Alldoper Balik
Andover. Ohio
Brad Roller
Presidelll
wiger Coil ystems. Inc
Ciet'elalld, Oh IO
Robert A. Rimbey
PlT'Sidell/ {-. CEO
ReetV!S Balik
Beat-er Falls, Pellllsyll'CllI/a
Scott Rusch
I 'ice PlT!sidell/
A 1I0malic Cotp.
Newark. Ohio
Donald S. Shamey
Prt'Sidell/ (;. COO
71Je CllizellS '\(nloIlClI Blink of Et'alls CI/)'
El'a/IS CiO'. Pellnsylt 'o nitl
David Voight
PlT'Sidell/ (-. CEO
The Ci/lzellS BcmklllR Comptlnl'
SCII/dllsk)'. Ohio
Benedict Welssenrleder
Presldelll (-. CEO
Ilocklllg I 'aile)' Balik of A/hellS
A/hells, Oblo
Randall l.C. Russell
Presidelll
Rall""r TecIJllolog,l' IIIC
Glellsbaw, Pellllsyll'lIl1ill
FEDERAL RESERVE BANK OF CLEVELAND
C L EVE L A ' D
14')5 Easl 6th treel
Ciel'e/allc/, Off 44 /1..,
(216) 579-2000
CI
CI
A T!
150 East 4th Street
CiIlCiIlIlClIi, Ofl45202
(513) 721-4787
PlTT S B
R G I-I
71 7 Gralll Street
Pills/mrgh, PA 15219
(412) 261-7800
CO L
M B
S
965 Killgsmill Parkway
CO/lIl1/bIlS, OH 43229
(614) 846-7494
This annual repon was prepared by
the Public Affairs and Bank Relations Department and the Research
Department. Federal Reserve Bank
of Cleveland,
For additional copies. ontact the
Public Affairs and Bank Relations
Department. Federal Reen'e Bank
of Cleveland, P,O, Box 6387.
Clev land . 0[( +1101. or call
J -800-5"3-3'-189.
.\lid",,,1 Galka
Exeullil'e ['Or/rCIII BIll Pappas
Dc!SI,~1/
7)1X11.l/llph.l': Liz 1/1I1111a
Federal Reserve Bank of Cleveland
p.o. Box 6387
Cleveland. OJ-l 44101
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