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Examinations of the Reserve Bank
2014 Financials

Annual Report 2014

The Reserve Banks and the consolidated limited liability company
(LLC) entity are subject to several levels of audit and review. The
combined ﬁnancial statements of the Reserve Banks as well as the
annual ﬁnancial statements of each of the 12 Banks and the
consolidated LLC entity are audited annually by an independent
auditing ﬁrm retained by the Board of Governors. In addition, the
Reserve Banks, including the consolidated LLC entity, are subject to
oversight by the Board of Governors, which performs its own
reviews. The Reserve Banks use the Internal Control—Integrated
Framework (2013) issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO) to assess their
internal controls over ﬁnancial reporting, including the
safeguarding of assets. Within this framework, the management of
each Reserve Bank annually provides an assertion letter to its board
of directors that conﬁrms adherence to COSO standards.
The Federal Reserve Board engaged Deloitte & Touche LLP (D&T) to audit the 2014 combined
and individual ﬁnancial statements of the Reserve Banks and Maiden Lane LLC.[1] In 2014,
D&T also conducted audits of internal controls over ﬁnancial reporting for each of the Reserve
Banks. Fees for D&T's services totaled $7 million, of which $0.4 million was for the audit of
Maiden Lane LLC. To ensure auditor independence, the Board requires that D&T be
independent in all matters relating to the audits. Speciﬁcally, D&T may not perform services for
the Reserve Banks or others that would place it in a position of auditing its own work, making
management decisions on behalf of the Reserve Banks, or in any other way impairing its audit
independence. In 2014, the Bank did not engage D&T for any non-audit services.
The Federal Reserve Bank of Dallas' ﬁnancial statements as of and for the years ended
December 31, 2014 and 2013 and the independent auditors' report can be found at the
following link:

The Federal Reserve
Bank of Dallas
Financial Statements as of and for the Years Ended
December 31, 2014 and 2013 and
Independent Auditors’ Report

THE FEDERAL RESERVE BANK OF DALLAS
Table of Contents

Page
Management’s Report on Internal Control Over Financial Reporting

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Independent Auditors’ Report

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Abbreviations

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Financial Statements:
Statements of Condition as of December 31, 2014 and December 31, 2013

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Statements of Income and Comprehensive Income for the years ended December 31,
2014 and December 31, 2013

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Statements of Changes in Capital for the years ended December 31, 2014 and
December 31, 2013

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Notes to Financial Statements

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F e d e r a l R eserve B a n k o f D a l l a s
2200 N. PEARL ST.
DALLAS, TX 75201-2272

March 11,2015

To the Board of Directors of the Federal Reserve Bank of Dallas:

The management of the Federal Reserve Bank of Dallas (Bank) is responsible for the preparation
and fair presentation of the Statements of Condition as of December 31,2014 and 2013, and the
Statements of Income and Comprehensive Income, and Statements of Changes in Capital for the
years then ended (the financial statements). The financial statements have been prepared in
conformity with the accounting principles, policies, and practices established by the Board of
Governors of the Federal Reserve System as set forth in the Financial Accounting Manualfo r
Federal Reserve Banks (FAM), and, as such, include some amounts that are based on
management judgments and estimates. To our knowledge, the financial statements are, in all
material respects, fairly presented in conformity with the accounting principles, policies and
practices documented in the FAM and include all disclosures necessary for such fair
presentation.
The management of the Bank is responsible for establishing and maintaining effective internal
control over financial reporting as it relates to the financial statements. The Bank’s internal
control over financial reporting is designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external reporting
purposes in accordance with the FAM. The Bank’s internal control over financial reporting
includes those policies and procedures that (i) pertain to the maintenance of records that in
reasonable detail accurately and fairly reflect the transactions and dispositions of the Bank’s
assets; (ii) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with FAM, and that the Bank’s receipts and
expenditures are being made only in accordance with authorizations of its management and
directors; and (iii) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of the Bank’s assets that could have a material effect
on its financial statements.
Even effective internal control, no matter how well designed, has inherent limitations, including
the possibility of human error, and therefore can provide only reasonable assurance with respect
to the preparation of reliable financial statements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, oi that the degree of compliance with the policies or
procedures may deteriorate.

P.O. B O X 655906 DALLAS, TEXAS 75265-5906

Tne management of the Bank assessed its internal control over financial reporting based upon the
criteria established in the Internal Control - Integrated Framework (2013) issued by the
Committee of Sponsoring Organizations of the Treadway Commission. Based on this
assessment, we believe that the Bank maintained effective internal control over financial
reporting.

President

First Vice President

Chief Financial Officer

Deloitte.

Deloitte & Touche LLP

2200 Ross Avenue
Dallas, TX 75201
USA
Tel: +1 214 840 7000
Fax: +1 214 840 7050
www.deloitte.com

INDEPENDENT AUDITORS’ REPORT
To the Board of Governors of the Federal Reserve System
and the Board of Directors of the Federal Reserve Bank of Dallas:
We have audited the accompanying financial statements of the Federal Reserve Bank of Dallas (“FRB
Dallas”), which are comprised of the statements of condition as of December 31, 2014 and 2013, and
the related statements of income and comprehensive income, and of changes in capital for the years
then ended, and the related notes to the financial statements. We also have audited the FRB Dallas’
internal control over financial reporting as of December 31, 2014, based on criteria established in
Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring
Organizations of the Treadway Commission.
Management’s Responsibility
The FRB Dallas’ management is responsible for the preparation and fair presentation of these
financial statements in accordance with accounting principles established by the Board of Governors
of the Federal Reserve System (the “Board”) as described in Note 3 to the financial statements. The
Board has determined that this basis of accounting is an acceptable basis for the preparation of the
FRB Dallas’ financial statements in the circumstances. The FRB Dallas’ management is also
responsible for the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error. The FRB Dallas’ management is also responsible for its assertion of
the effectiveness of internal control over financial reporting, included in the accompanying
Management’s Report on Internal Control Over Financial Reporting.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements and an opinion on the FRB
Dallas’ internal control over financial reporting based on our audits. We conducted our audits of the
financial statements in accordance with auditing standards generally accepted in the United States of
America and in accordance with the auditing standards of the Public Company Accounting Oversight
Board (United States) (the “PCAOB”) and we conducted our audit of internal control over financial
reporting in accordance with attestation standards established by the American Institute of Certified
Public Accountants and in accordance with the auditing standards of the PCAOB. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement and whether effective internal control over financial
reporting was maintained in all material respects.
An audit of the financial statements involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures selected depend on the
auditor’s judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers

Member of
Deloitte Touche Tohmatsu Limited

internal control relevant to the FRB Dallas’ preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances. An audit of
the financial statements also includes evaluating the appropriateness of accounting policies used and
the reasonableness of significant accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements. An audit of internal control over financial reporting
involves obtaining an understanding of internal control over financial reporting, assessing the risk that
a material weakness exists, testing and evaluating the design and operating effectiveness of internal
control based on the assessed risk, and performing such other procedures as we considered necessary
in the circumstances.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Definition of Internal Control Over Financial Reporting
The FRB Dallas’ internal control over financial reporting is a process designed by, or under the
supervision of, the FRB Dallas’ principal executive and principal financial officers, or persons
performing similar functions, and effected by the FRB Dallas’ board of directors, management, and
other personnel to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with the accounting principles
established by the Board. The FRB Dallas’ internal control over financial reporting includes those
policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the FRB Dallas; (2)
provide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with the accounting principles established by the Board, and that
receipts and expenditures of the FRB Dallas are being made only in accordance with authorizations of
management and directors of the FRB Dallas; and (3) provide reasonable assurance regarding
prevention or timely detection and correction of unauthorized acquisition, use, or disposition of the
FRB Dallas’ assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Control Over Financial Reporting
Because of the inherent limitations of internal control over financial reporting, including the
possibility of collusion or improper management override of controls, material misstatements due to
error or fraud may not be prevented or detected and corrected on a timely basis. Also, projections of
any evaluation of the effectiveness of the internal control over financial reporting to future periods are
subject to the risk that the controls may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the FRB Dallas as of December 31, 2014 and 2013, and the results of its
operations for the years then ended in accordance with the basis of accounting described in Note 3 to
the financial statements. Also, in our opinion, the FRB Dallas maintained, in all material respects,
effective internal control over financial reporting as of December 31, 2014, based on the criteria
established in Internal Control — Integrated Framework (2013) issued by the Committee of
Sponsoring Organizations of the Treadway Commission.

Basis of Accounting
We draw attention to Note 3 to the financial statements, which describes the basis of accounting. The
FRB Dallas has prepared these financial statements in conformity with accounting principles
established by the Board, as set forth in the Financial Accounting Manual for Federal Reserve Banks,
which is a basis of accounting other than accounting principles generally accepted in the United States
of America. The effects on such financial statements of the differences between the accounting
principles established by the Board and accounting principles generally accepted in the United States
of America are also described in Note 3 to the financial statements. Our opinion is not modified with
respect to this matter.

March 11, 2015

FEDERAL RESERVE BANK OF DALLAS
Abbreviations:
ACH
ASC
ASU
BEP
Bureau
FAM
FASB
FOMC
FRBA
FRBNY
GAAP
GSE
IMF
MBS
SDR
SERP
SOMA
TBA
TDF

Automated clearinghouse
Accounting Standards Codification
Accounting Standards Update
Benefit Equalization Retirement Plan
Bureau o f Consumer Financial Protection
Financial Accounting Manual for Federal Reserve Banks
Financial Accounting Standards Board
Federal Open Market Committee
Federal Reserve Bank of Atlanta
Federal Reserve Bank of New York
Accounting principles generally accepted in the United States of America
Government-sponsored enterprise
International Monetary Fund
Mortgage-backed securities
Special drawing rights
Supplemental Retirement Plan for Select Officers of the Federal Reserve Banks
System Open Market Account
To be announced
Term Deposit Facility

FEDERAL RESERVE BANK OF DALLAS
STATEMENTS OF CONDITION
As of December 31, 2014 and December 31, 2013
(in millions)
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The accompanying notes are an integral part of these financial statements.

FEDERAL RESERVE BANK OF DALLAS
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For the years ended December 31, 2014 and December 31, 2013
(in millions)
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The accompanying notes are an integral part of these financial statements.

FEDERAL RESERVE BANK OF DALLAS
STATEMENTS OF CHANGES IN CAPITAL
For the years ended December 31, 2014 and December 31, 2013
(in millions, except
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The accompanying notes are an integral part of these financial statements.

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
1.

St r u c t u r e
The Federal Reserve Bank of Dallas (Bank) is part of the Federal Reserve System (System) and is one of the 12
Federal Reserve Banks (Reserve Banks) created by Congress under the Federal Reserve Act of 1913 (Federal
Reserve Act), which established the central bank of the United States. The Reserve Banks are chartered by the
federal government and possess a unique set of governmental, corporate, and central bank characteristics. The
Bank serves the Eleventh Federal Reserve District, which includes Texas and portions of Louisiana and New
Mexico.
In accordance with the Federal Reserve Act, supervision and control of the Bank is exercised by a board of directors.
The Federal Reserve Act specifies the composition of the board of directors for each of the Reserve Banks. Each
board is composed of nine members serving three-year terms: three directors, including those designated as
chairman and deputy chairman, are appointed by the Board of Governors of the Federal Reserve System (Board
of Governors) to represent the public, and six directors are elected by member banks. Banks that are members
of the System include all nationally-chartered banks and any state-chartered banks that apply and are approved
for membership. Member banks are divided into three classes according to size. Member banks in each class
elect one director representing member banks and one representing the public. In any election of directors, each
member bank receives one vote, regardless of the number of shares of Reserve Bank stock it holds.
In addition to the 12 Reserve Banks, the System also consists, in part, of the Board of Governors and the Federal
Open Market Committee (FOMC). The Board of Governors, an independent federal agency, is charged by the
Federal Reserve Act with a number of specific duties, including general supervision over the Reserve Banks.
The FOMC is composed of members of the Board of Governors, the president of the Federal Reserve Bank of
New York (FRBNY), and, on a rotating basis, four other Reserve Bank presidents.

O p e r a t io n s a n d Se r v ic e s
The Reserve Banks perform a variety of services and operations. These functions include participating in formulating
and conducting monetary policy; participating in the payment system, including transfers of funds, automated
clearinghouse (ACH) operations, and check collection; distributing coin and currency; performing fiscal agency
functions for the U.S. Department of the Treasury (Treasury), certain federal agencies, and other entities; serving
as the federal government’s bank; providing short-term loans to depository institutions; providing loans to
participants in programs or facilities with broad-based eligibility in unusual and exigent circumstances; serving
consumers and communities by providing educational materials and information regarding financial consumer
protection rights and laws and information on community development programs and activities; and supervising
bank holding companies, state member banks, savings and loan holding companies, U.S. offices of foreign
banking organizations, and designated financial market utilities pursuant to authority delegated by the Board of
Governors. Certain services are provided to foreign and international monetary authorities, primarily by the
FRBNY.
The FOMC, in conducting monetary policy, establishes policy regarding domestic open market operations, oversees
these operations, and issues authorizations and directives to the FRBNY to execute transactions. The FOMC
authorizes and directs the FRBNY to conduct operations in domestic markets, including the direct purchase and
sale of Treasury securities, government-sponsored enterprise (GSE) debt securities, and federal agency and GSE
mortgage-backed securities (MBS); the purchase of these securities under agreements to resell; and the sale of
these securities under agreements to repurchase. The FRBNY holds the resulting securities and agreements in
a portfolio known as the System Open Market Account (SOMA). The FRBNY is authorized and directed to
lend the Treasury securities and GSE debt securities that are held in the SOMA.
To be prepared to counter disorderly conditions in foreign exchange markets or to meet other needs specified by the
FOMC to carry out the System’s central bank responsibilities, the FOMC has authorized and directed the
FRBNY to execute spot and forward foreign exchange transactions in 14 foreign currencies, to hold balances in
those currencies, and to invest such foreign currency holdings, while maintaining adequate liquidity. The
FRBNY holds these securities and obligations in the SOMA. The FOMC has also authorized the FRBNY to

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
maintain reciprocal currency arrangements with the Bank of Canada and the Bank of Mexico in the maximum
amounts of $2 billion and $3 billion, respectively, and to warehouse foreign currencies for the Treasury and the
Exchange Stabilization Fund in the maximum amount of $5 billion.
Because of the global character of bank funding markets, the System has at times coordinated with other central
banks to provide liquidity. The FOMC authorized and directed the FRBNY to establish U.S. dollar liquidity and
reciprocal foreign currency liquidity swap lines with the Bank of Canada, the Bank of England, the European
Central Bank, the Bank of Japan, and the Swiss National Bank. The FRBNY holds amounts outstanding under
these swap lines in the SOMA. These swap lines, which were originally established as temporary arrangements,
were converted to standing arrangements on October 31, 2013, and will remain in place until further notice.
Although the Reserve Banks are separate legal entities, they collaborate on the delivery of certain services to achieve
greater efficiency and effectiveness. This collaboration takes the form of centralized operations and product or
function offices that have responsibility for the delivery of certain services on behalf of the Reserve Banks.
Various operational and management models are used and are supported by service agreements between the
Reserve Banks. In some cases, costs incurred by a Reserve Bank for services provided to other Reserve Banks
are not shared; in other cases, the Reserve Banks are reimbursed for costs incurred in providing services to other
Reserve Banks. Major services provided by the Bank on behalf of the System for which the costs were not
reimbursed by the other Reserve Banks include Check Automation Services; Desktop Service Center; Lawson
and ImageNow Central Business Administration Function; Consolidated Accounts Payable Function; Account,
Risk, and Credit System; National Examination Data System; and the National Incident Response System.
3.

Sig n if ic a n t Ac c o u n t in g P o l i c i e s
Accounting principles for entities with the unique powers and responsibilities of the nation’s central bank have not
been formulated by accounting standard-setting bodies. The Board of Governors has developed specialized
accounting principles and practices that it considers to be appropriate for the nature and function of a central
bank. These accounting principles and practices are documented in the Financial Accounting Manual for
Federal Reserve Banks (FAM), which is issued by the Board of Governors. The Reserve Banks are required to
adopt and apply accounting policies and practices that are consistent with the FAM. The financial statements
have been prepared in accordance with the FAM.
Limited differences exist between the accounting principles and practices in the FAM and accounting principles
generally accepted in the United States of America (GAAP), due to the unique nature of the Bank’s powers and
responsibilities as part of the nation’s central bank and given the System’s unique responsibility to conduct
monetary policy. The primary differences are the presentation of all SOMA securities holdings at amortized
cost, adjusted for credit impairment, if any, the recording of all SOMA securities on a settlement-date basis, and
the use of straight-line amortization for Treasury securities, GSE debt securities, and foreign currency
denominated investments. Amortized cost, rather than the fair value presentation, more appropriately reflects
the financial position associated with the Bank’s securities holdings given the System’s unique responsibility to
conduct monetary policy. Although the application of fair value measurements to the securities holdings may
result in values substantially greater or less than their carrying values, these unrealized changes in value have no
direct effect on the quantity of reserves available to the banking system or on the ability of the Reserve Banks,
as the central bank, to meet their financial obligations and responsibilities. Both the domestic and foreign
components of the SOMA portfolio may involve transactions that result in gains or losses when holdings are
sold before maturity. Decisions regarding securities and foreign currency transactions, including their purchase
and sale, are motivated by monetary policy objectives rather than profit. Accordingly, fair values, earnings, and
gains or losses resulting from the sale of such securities and currencies are incidental to open market operations
and do not motivate decisions related to policy or open market activities. Accounting for these securities on a
settlement-date basis, rather than the trade-date basis required by GAAP, better reflects the timing of the
transaction’s effect on the quantity of reserves in the banking system. The cost bases of Treasury securities,
GSE debt securities, and foreign government debt instruments are adjusted for amortization of premiums or
accretion of discounts on a straight-line basis, rather than using the interest method required by GAAP.

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
In addition, the Bank does not present a Statement of Cash Flows as required by GAAP because the liquidity and
cash position of the Bank are not a primary concern given the Reserve Bank’s unique powers and responsibilities
as a central bank. Other information regarding the Bank’s activities is provided in, or may be derived from, the
Statements of Condition, Income and Comprehensive Income, and Changes in Capital, and the accompanying
notes to the financial statements. Other than those described above, there are no significant differences between
the policies outlined in the FAM and GAAP.
Preparing the financial statements in conformity with the FAM requires management to make certain estimates and
assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of income and expenses during the
reporting period. Actual results could differ from those estimates.
In 2014, the description of certain line items presented in the Statements of Condition and the Statements of Income
and Comprehensive Income have been revised to better reflect the nature of these items. Amounts related to
these line items were not changed from the prior year, only the nomenclature for the line item was revised, as
further noted below:
•

The line item “System Open Market Account: Other investments” has been revised in the Statements of
Condition to “System Open Market Account: Other assets.”

•

The line item “System Open Market Account: Foreign currency denominated assets, net” has been revised
in the Statements of Income and Comprehensive Income to “System Open Market Account: Foreign
currency denominated investments, net.”

Certain amounts relating to the prior year have been reclassified in the Statements of Income and Comprehensive
Income to conform to the current year presentation. $ 1 million previously reported for the year ended December
31, 2013 as “Non-interest (loss) income: Other” has been reclassified into a new line titled “Non-interest (loss)
income: System Open Market Account: Other.”
Significant accounts and accounting policies are explained below.
a. Consolidation
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) established the
Bureau of Consumer Financial Protection (Bureau) as an independent bureau within the System that has
supervisory authority over some institutions previously supervised by the Reserve Banks in connection with
those institutions’ compliance with consumer protection statutes. Section 1017 of the Dodd-Frank Act
provides that the financial statements of the Bureau are not to be consolidated with those of the Board of
Governors or the System. The Board of Governors funds the Bureau through assessments on the Reserve
Banks as required by the Dodd-Frank Act. The Reserve Banks reviewed the law and evaluated the design
of and their relationship to the Bureau and determined that it should not be consolidated in the Bank’s
financial statements.
b. Gold and Special Drawing Rights Certificates
The Secretary of the Treasury is authorized to issue gold certificates to the Reserve Banks. Upon authorization,
the Reserve Banks acquire gold certificates by crediting equivalent amounts in dollars to the account
established for the Treasury. The gold certificates held by the Reserve Banks are required to be backed by
the gold owned by the Treasury. The Treasury may reacquire the gold certificates at any time, and the
Reserve Banks must deliver them to the Treasury. At such time, the Treasury’s account is charged, and the
Reserve Banks’ gold certificate accounts are reduced. The value of gold for purposes of backing the gold
certificates is set by law at $42 2/9 per fine troy ounce. Gold certificates are recorded by the Banks at
original cost. The Board of Governors allocates the gold certificates among the Reserve Banks once a year
based on each Reserve Bank’s average Federal Reserve notes outstanding during the preceding twelve
months.

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
Special drawing rights (SDR) are issued by the International Monetary Fund (IMF) to its members in proportion
to each member’s quota in the IMF at the time of issuance. SDRs serve as a supplement to international
monetary reserves and may be transferred from one national monetary authority to another. Under the law
providing for U.S. participation in the SDR system, the Secretary of the Treasury is authorized to issue SDR
certificates to the Reserve Banks. When SDR certificates are issued to the Reserve Banks, equivalent
amounts in U.S. dollars are credited to the account established for the Treasury and the Reserve Banks’
SDR certificate accounts are increased. The Reserve Banks are required to purchase SDR certificates, at
the direction of the Treasury, for the purpose of financing SDR acquisitions or for financing exchangestabilization operations. At the time SDR certificate transactions occur, the Board of Governors allocates
the SDR certificates among the Reserve Banks based upon each Reserve Bank’s Federal Reserve notes
outstanding at the end of the preceding calendar year. SDR certificates are recorded by the Banks at original
cost. There were no SDR certificate transactions during the years ended December 31, 2014 and 2013.
c. Coin
The amount reported as coin in the Statements of Condition represents the face value of all United States coin
held by the Bank. The Bank buys coin at face value from the U.S. Mint in order to fill depository institution
orders.
d. Loans
Loans to depository institutions are reported at their outstanding principal balances and interest income is
recognized on an accrual basis.
Loans are impaired when current information and events indicate that it is probable that the Bank will not receive
the principal and interest that are due in accordance with the contractual terms of the loan agreement.
Impaired loans are evaluated to determine whether an allowance for loan loss is required. The Bank has
developed procedures for assessing the adequacy of any allowance for loan losses using all available
information to identify incurred losses. This assessment includes monitoring information obtained from
banking supervisors, borrowers, and other sources to assess the credit condition of the borrowers and, as
appropriate, evaluating collateral values. Generally, the Bank would discontinue recognizing interest
income on impaired loans until the borrower’s repayment performance demonstrates principal and interest
would be received in accordance with the terms of the loan agreement. If the Bank discontinues recording
interest on an impaired loan, cash payments are first applied to principal until the loan balance is reduced to
zero; subsequent payments are applied as recoveries of amounts previously deemed uncollectible, if any,
and then as interest income.
e. Securities Purchased Under Agreements to Resell, Securities Sold Under Agreements to Repurchase, and
Securities Lending
The FRBNY may engage in purchases of securities with primary dealers under agreements to resell (repurchase
transactions). These repurchase transactions are typically settled through a tri-party arrangement. In a tri
party arrangement, two commercial custodial banks manage the collateral clearing, settlement, pricing, and
pledging, and provide cash and securities custodial services for and on behalf of the FRBNY and
counterparty. The collateral pledged must exceed the principal amount of the transaction by a margin
determined by the FRBNY for each class and maturity of acceptable collateral. Collateral designated by
the FRBNY as acceptable under repurchase transactions primarily includes Treasury securities (including
Treasury Inflation-Protected Securities, Separate Trading of Registered Interest and Principal of Securities
Treasury securities, and Treasury Floating Rate Notes); direct obligations of several federal and GSE-related
agencies, including Federal National Mortgage Association, Federal Home Loan Mortgage Corporation,
and Federal Home Loan Banks; and pass-through federal agency and GSE MBS. The repurchase
transactions are accounted for as financing transactions with the associated interest income recognized over
the life of the transaction. These transactions are reported at their contractual amounts as “System Open
Market Account: Securities purchased under agreements to resell” and the related accrued interest

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
receivable is reported as a component of “System Open Market Account: Accrued interest receivable” in
the Statements of Condition.
The FRBNY may engage in sales of securities under agreements to repurchase with primary dealers and with a
set of expanded counterparties which includes banks, savings associations, GSEs, and domestic money
market funds (Overnight and term reverse repurchase agreements). These reverse repurchase transactions,
are settled through a tri-party arrangement, similar to repurchase transactions. Reverse repurchase
transactions may also be executed with foreign official and international account holders as part of a service
offering. Reverse repurchase agreements are collateralized by a pledge of an amount of Treasury securities,
GSE debt securities, or federal agency and GSE MBS that are held in the SOMA. Reverse repurchase
transactions are accounted for as financing transactions, and the associated interest expense is recognized
over the life of the transaction. These transactions are reported at their contractual amounts as “System
Open Market Account: Securities sold under agreements to repurchase” and the related accrued interest
payable is reported as a component of “System Open Market Account: Other liabilities” in the Statements
of Condition.
Treasury securities and GSE debt securities held in the SOMA may be lent to primary dealers, typically
overnight, to facilitate the effective functioning of the domestic securities markets. The amortized cost basis
of securities lent continues to be reported as “System Open Market Account: Treasury securities, net” and
“System Open Market Account: Government-sponsored enterprise debt securities, net,” as appropriate, in
the Statements of Condition. Securities lending transactions are fully collateralized by Treasury securities
based on the fair values of the securities lent increased by a margin determined by the FRBNY. The FRBNY
charges the primary dealer a fee for borrowing securities, and these fees are reported as a component of
“Non-interest (loss) income: System Open Market Account: Other” in the Statements of Income and
Comprehensive Income.
Activity related to securities purchased under agreements to resell, securities sold under agreements to
repurchase, and securities lending is allocated to each of the Reserve Banks on a percentage basis derived
from an annual settlement of the interdistrict settlement account that occurs in the second quarter of each
year.
f. Treasury Securities, Government-Sponsored Enterprise Debt Securities, Federal Agency and GovernmentSponsored Enterprise Mortgage-Backed Securities, Foreign Currency Denominated Investments, and
Warehousing Agreements
Interest income on Treasury securities, GSE debt securities, and foreign currency denominated investments
included in the SOMA is accrued using the straight-line method. Interest income on federal agency and
GSE MBS is accrued using the interest method and includes amortization of premiums, accretion of
discounts, and gains or losses associated with principal paydowns. Premiums and discounts related to
federal agency and GSE MBS are amortized or accreted over the term of the security to stated maturity, and
the amortization of premiums and accretion of discounts are accelerated when principal payments are
received. Gains and losses resulting from sales of securities are determined by specific issue based on
average cost. Treasury securities, GSE debt securities, and federal agency and GSE MBS are reported net
of premiums and discounts in the Statements of Condition and interest income on those securities is reported
net of the amortization of premiums and accretion of discounts in the Statements of Income and
Comprehensive Income.
In addition to outright purchases of federal agency and GSE MB S that are held in the SOMA, the FRBNY enters
into dollar roll transactions (dollar rolls), which primarily involve an initial transaction to purchase or sell
“to be announced” (TBA) MBS for delivery in the current month combined with a simultaneous agreement
to sell or purchase TBA MBS on a specified future date. During the years ended December 31, 2014 and
2013, the FRBNY executed dollar rolls to facilitate settlement of outstanding purchases of federal agency
and GSE MBS. The FRBNY accounts for dollar rolls as purchases or sales on a settlement-date basis. In
addition, TBA MBS transactions may be paired off or assigned prior to settlement. Net gains resulting from
these MBS transactions are reported as “Non-interest (loss) income: System Open Market Account: Federal

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
agency and government-sponsored enterprise mortgage-backed securities gains, net” in the Statements of
Income and Comprehensive Income.
Foreign currency denominated investments, which can include foreign currency deposits, securities purchased
under agreements to resell, and government debt instruments, are revalued daily at current foreign currency
market exchange rates in order to report these assets in U.S. dollars. Foreign currency translation losses
that result from the daily revaluation of foreign currency denominated investments are reported as “Non
interest (loss) income: System Open Market Account: Foreign currency translation losses, net” in the
Statements of Income and Comprehensive Income.
Because the FRBNY enters into commitments to buy Treasury securities, federal agency and GSE MBS, and
foreign government debt instruments and records the related securities on a settlement-date basis in
accordance with the FAM, the related outstanding commitments are not reflected in the Statements of
Condition.
Activity related to Treasury securities, GSE debt securities, and federal agency and GSE MBS, including the
premiums, discounts, and realized gains and losses, is allocated to each Reserve Bank on a percentage basis
derived from an annual settlement of the interdistrict settlement account that occurs in the second quarter of
each year. Activity related to foreign currency denominated investments, including the premiums,
discounts, and realized and unrealized gains and losses, is allocated to each Reserve Bank based on the ratio
of each Reserve Bank’s capital and surplus to the Reserve Banks’ aggregate capital and surplus at the
preceding December 31.
Warehousing is an arrangement under which the FOMC has approved the exchange, at the request of the
Treasury, of U.S. dollars for foreign currencies held by the Treasury over a limited period. The purpose of
the warehousing facility is to supplement the U.S. dollar resources of the Treasury for financing purchases
of foreign currencies and related international operations. Warehousing agreements are valued daily at
current market exchange rates. Activity related to these agreements is allocated to each Reserve Bank based
on the ratio of each Reserve Bank’s capital and surplus to the Reserve Banks’ aggregate capital and surplus
at the preceding December 31.
g. Central Bank Liquidity Swaps
Central bank liquidity swaps, which are transacted between the FRBNY and a foreign central bank, can be
structured as either U.S. dollar or foreign currency liquidity swap arrangements.
Central bank liquidity swaps activity, including the related income and expense, is allocated to each Reserve
Bank based on the ratio of each Reserve Bank’s capital and surplus to the Reserve Banks’ aggregate capital
and surplus at the preceding December 31. The foreign currency amounts associated with these central bank
liquidity swap arrangements are revalued daily at current foreign currency market exchange rates.
U.S. dollar liquidity swaps
At the initiation of each U.S. dollar liquidity swap transaction, the foreign central bank transfers a specified
amount of its currency to a restricted account for the FRBNY in exchange for U.S. dollars at the prevailing
market exchange rate. Concurrent with this transaction, the FRBNY and the foreign central bank agree to
a second transaction that obligates the foreign central bank to return the U.S. dollars and the FRBNY to
return the foreign currency on a specified future date at the same exchange rate as the initial transaction.
The Bank’s allocated portion of the foreign currency amounts that the FRBNY acquires are reported as
“System Open Market Account: Central bank liquidity swaps” in the Statements of Condition. Because the
swap transaction will be unwound at the same U.S. dollar amount and exchange rate that were used in the
initial transaction, the recorded value of the foreign currency amounts is not affected by changes in the
market exchange rate.

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
The foreign central bank compensates the FRBNY based on the amount outstanding and the rate under the swap
agreement. The Bank’s allocated portion of the amount of compensation received during the term of the
swap transaction is reported as “Interest income: System Open Market Account: Central bank liquidity
swaps” in the Statements of Income and Comprehensive Income.
Foreign currency liquidity swaps
The structure of foreign currency liquidity swap transactions involves the transfer by the FRBNY, at the
prevailing market exchange rate, of a specified amount of U.S. dollars to an account for the foreign central
bank in exchange for its currency. The foreign currency amounts that the FRBNY receives are recorded as
a liability.
h. Bank Premises, Equipment, and Software
Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on a
straight-line basis over the estimated useful lives of the assets, which range from 2 to 50 years. Major
alterations, renovations, and improvements are capitalized at cost as additions to the asset accounts and are
depreciated over the remaining useful life of the asset or, if appropriate, over the unique useful life of the
alteration, renovation, or improvement. Maintenance, repairs, and minor replacements are charged to
operating expense in the year incurred.
Costs incurred to acquire software are capitalized based on the purchase price. Costs incurred during the
application development stage to develop internal-use software are capitalized based on the cost of direct
services and materials associated with designing, coding, installing, and testing the software. Capitalized
software costs are amortized on a straight-line basis over the estimated useful lives of the software
applications, which generally range from two to five years. Maintenance costs and minor replacements
related to software are charged to operating expense in the year incurred.
Capitalized assets, including software, buildings, leasehold improvements, furniture, and equipment, are
impaired and an adjustment is recorded when events or changes in circumstances indicate that the carrying
amount of assets or asset groups is not recoverable and significantly exceeds the assets’ fair value.
i. Interdistrict Settlement Account
Each Reserve Bank aggregates the payments due to or from other Reserve Banks. These payments result from
transactions between the Reserve Banks and transactions that involve depository institution accounts held
by other Reserve Banks, such as Fedwire funds and securities transfers and check and ACH transactions.
The cumulative net amount due to or from the other Reserve Banks is reflected in the “Interdistrict
settlement account” in the Statements of Condition.
An annual settlement of the interdistrict settlement account occurs in the second quarter of each year. As a result
of the annual settlement, the balance in each Bank’s interdistrict settlement account is adjusted by an amount
equal to the average balance in the account during the previous twelve-month period ended March 31. An
equal and offsetting adjustment is made to each Bank’s allocated portion of SOMA assets and liabilities.
j. Federal Reserve Notes
Federal Reserve notes are the circulating currency of the United States. These notes, which are identified as
issued to a specific Reserve Bank, must be fully collateralized. All of the Bank’s assets are eligible to be
pledged as collateral. The collateral value is equal to the book value of the collateral tendered with the
exception of securities, for which the collateral value is equal to the par value of the securities tendered.
The par value of securities sold under agreements to repurchase is deducted from the eligible collateral
value.

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
The Board of Governors may, at any time, call upon a Reserve Bank for additional security to adequately
collateralize outstanding Federal Reserve notes. To satisfy the obligation to provide sufficient collateral for
outstanding Federal Reserve notes, the Reserve Banks have entered into an agreement that provides for
certain assets of the Reserve Banks to be jointly pledged as collateral for the Federal Reserve notes issued
to all Reserve Banks. In the event that this collateral is insufficient, the Federal Reserve Act provides that
Federal Reserve notes become a first and paramount lien on all the assets of the Reserve Banks. Finally,
Federal Reserve notes are obligations of the United States government.
“Federal Reserve notes outstanding, net” in the Statements of Condition represents the Bank’s Federal Reserve
notes outstanding, reduced by the Bank’s currency holdings of $14,760 million and $53,146 million at
December 31, 2014 and 2013, respectively.
At December 31, 2014 and 2013, all Federal Reserve notes outstanding, reduced by the Reserve Bank’s currency
holdings, were fully collateralized. At December 31, 2014, all gold certificates, all special drawing rights
certificates, and $1,282 billion of domestic securities held in the SOMA were pledged as collateral. At
December 31, 2014, no investments denominated in foreign currencies were pledged as collateral.
k. Deposits
Depository Institutions
Depository institutions’ deposits represent the reserve and service-related balances in the accounts that
depository institutions hold at the Bank. The interest rates paid on required reserve balances and excess
balances are determined by the Board of Governors, based on an FOMC-established target range for the
federal funds rate. Interest payable is reported as a component of “Interest payable to depository
institutions” in the Statements of Condition.
The Term Deposit Facility (TDF) consists of deposits with specific maturities held by eligible institutions at the
Reserve Banks. The Reserve Banks pay interest on these deposits at interest rates determined by auction.
Interest payable is reported as a component of “Interest payable to depository institutions” in the Statements
of Condition. There were no deposits held by the Bank under the TDF at December 31, 2014 and 2013.
Other
Other deposits include the Bank’s allocated portion of foreign central bank and foreign government deposits
held at the FRBNY.
l. Capital Paid-in
The Federal Reserve Act requires that each member bank subscribe to the capital stock of the Reserve Bank in
an amount equal to six percent of the capital and surplus of the member bank. These shares are nonvoting,
with a par value of $100, and may not be transferred or hypothecated. As a member bank’s capital and
surplus changes, its holdings of Reserve Bank stock must be adjusted. Currently, only one-half of the
subscription is paid in, and the remainder is subject to call. A member bank is liable for Reserve Bank
liabilities up to twice the par value of stock subscribed by it.
By law, each Reserve Bank is required to pay each member bank an annual dividend of six percent on the paidin capital stock. This cumulative dividend is paid semiannually.
m. Surplus
The Board of Governors requires the Reserve Banks to maintain a surplus equal to the amount of capital paidin. On a daily basis, surplus is adjusted to equate the balance to capital paid-in. Accumulated other
comprehensive income is reported as a component of “Surplus” in the Statements of Condition and the

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
Statements of Changes in Capital. Additional information regarding the classifications of accumulated other
comprehensive income is provided in Notes 9 and 10.
n. Remittances to the Treasury
The Board of Governors requires the Reserve Banks to transfer excess earnings to the Treasury as interest on
Federal Reserve notes after providing for the costs of operations, payment of dividends, and reservation of
an amount necessary to equate surplus with capital paid-in. Currently, remittances to the Treasury are made
on a weekly basis. This amount is reported as “Earnings remittances to the Treasury” in the Statements of
Income and Comprehensive Income. The amount due to the Treasury is reported as “Accrued remittances
to the Treasury” in the Statements of Condition. See Note 12 for additional information on earnings
remittances to the Treasury.
If earnings during the year are not sufficient to provide for the costs of operations, payment of dividends, and
equating surplus and capital paid-in, remittances to the Treasury are suspended. A deferred asset is recorded
that represents the amount of net earnings a Reserve Bank will need to realize before remittances to the
Treasury resume. This deferred asset is periodically reviewed for impairment.
o. Income and Costs Related to Treasury Services
When directed by the Secretary of the Treasury, the Bank is required by the Federal Reserve Act to serve as
fiscal agent and depositary of the United States Government. By statute, the Treasury has appropriations to
pay for these services. During the years ended December 31, 2014 and 2013, the Bank was reimbursed for
all services provided to the Treasury as its fiscal agent.
p. Compensation Receivedfo r Service Costs Provided
The Federal Reserve Bank of Atlanta (FRBA) has overall responsibility for managing the Reserve Banks’
provision of check and ACH services to depository institutions, the FRBNY has overall responsibility for
managing the Reserve Banks’ provision of Fedwire funds and securities services, and the Federal Reserve
Bank of Chicago has overall responsibility for managing the Reserve Banks’ provision of electronic access
services to depository institutions. The Reserve Bank that has overall responsibility for managing these
services recognizes the related total System revenue in its Statements of Income and Comprehensive
Income. The Bank is compensated for costs incurred to provide these services by the Reserve Banks
responsible for managing these services and reports this compensation as “Non-interest (loss) income:
Compensation received for service costs provided” in its Statements of Income and Comprehensive Income.
q. Assessments
The Board of Governors assesses the Reserve Banks to fund its operations and the operations of the Bureau.
These assessments are allocated to each Reserve Bank based on each Reserve Bank’s capital and surplus
balances. The Board of Governors also assesses each Reserve Bank for expenses related to producing,
issuing, and retiring Federal Reserve notes based on each Reserve Bank’s share of the number of notes
comprising the System’s net liability for Federal Reserve notes on December 31 of the prior year.
The Dodd-Frank Act requires that, after the transfer of its responsibilities to the Bureau on July 21, 2011, the
Board of Governors fund the Bureau in an amount not to exceed a fixed percentage of the total operating
expenses of the System as reported in the Board of Governors’ 2009 annual report, which totaled $4.98
billion. After 2013, the amount will be adjusted annually in accordance with the provisions of the DoddFrank Act. The percentage of total operating expenses of the System for the years ended December 31,
2014 and 2013 was 12.22 percent ($608.4 million) and 12 percent ($597.6 million), respectively. The
Bank’s assessment for Bureau funding is reported as “Assessments: Bureau of Consumer Financial
Protection” in the Statements of Income and Comprehensive Income.

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
r. Taxes
The Reserve Banks are exempt from federal, state, and local taxes, except for taxes on real property. The Bank’s
real property taxes were $4 million for each of the years ended December 31, 2014 and 2013, and are
reported as a component of “Operating expenses: Occupancy” in the Statements of Income and
Comprehensive Income.
s. Restructuring Charges
The Reserve Banks recognize restructuring charges for exit or disposal costs incurred as part of the closure of
business activities in a particular location, the relocation of business activities from one location to another,
or a fundamental reorganization that affects the nature of operations. Restructuring charges may include
costs associated with employee separations, contract terminations, and asset impairments. Expenses are
recognized in the period in which the Bank commits to a formalized restructuring plan or executes the
specific actions contemplated in the plan and all criteria for financial statement recognition have been met.
In 2014, the Treasury announced plans to consolidate the provision of substantially all fiscal agent services for
the U.S. Treasury at the Federal Reserve Bank of Cleveland, the Federal Reserve Bank of Kansas City, the
FRBNY, and the Federal Reserve Bank of St. Louis. The implementation plan associated with this
consolidation is expected to be completed in 2018.
Note 11 describes the Bank’s restructuring initiatives and provides information about the costs and liabilities
associated with employee separations and contract terminations. The costs associated with the impairment
of certain Bank assets are discussed in Note 6. Costs and liabilities associated with enhanced pension
benefits in connection with the restructuring activities for all of the Reserve Banks are recorded on the books
of the FRBNY. Costs and liabilities associated with enhanced postretirement benefits are discussed in Note
9.
The Bank had no significant restructuring activities in 2014 and 2013.
t. Recently Issued Accounting Standards
In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU)
2014-08, Presentation o f Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic
360): Reporting Discontinued Operations and Disclosures o f Disposals o f Components o f an Entity. This
update changes the requirements for reporting discontinued operations, which may include a component of
an entity or a group of components of an entity, or a business or nonprofit activity. This update is effective
for the Bank for the year ending December 31, 2015, and is not expected to have a material effect on the
Bank’s financial statements.
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This update
was issued to create common revenue recognition guidance for U.S. GAAP and International Financial
Reporting Standards. The guidance is applicable to all contracts for the transfer of goods or services
regardless of industry or type of transaction. This update requires recognition of revenue in a manner that
reflects the consideration that the entity expects to receive in return for the transfer of goods or services to
customers. This update is effective for the Bank for the year ending December 31, 2018, and is not expected
to have a material effect on the Bank’s financial statements.
In June 2014, the FASB issued ASU 2014-11, Transfer and Servicing (Topic 860): Repurchase-to-Maturity
Transactions, Repurchase Financings, and Disclosures. This update requires changes in the accounting for
repurchase to maturity transactions and repurchase financing transactions. Additionally, this update
provides guidance for the disclosures for certain transfers of financial assets accounted for as sales, where
the transferor retains substantially all of the exposure to economic return on the transferred financial asset;
and repurchase agreements, securities lending transactions, and repurchase to maturity transactions that are

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
accounted for as secured borrowings. This update is effective for the Bank for the year ending December
31, 2015, and is not expected to have a material effect on the Bank’s financial statements.
4.

Lo a n s
Loans to Depository Institutions
The Bank offers primary, secondary, and seasonal loans to eligible borrowers, and each program has its own interest
rate. Interest is accrued using the applicable interest rate established at least every 14 days by the Bank’s board
of directors, subject to review and determination by the Board of Governors. Primary and secondary loans are
extended on a short-term basis, typically overnight, whereas seasonal loans may be extended for a period of up
to nine months.
Primary, secondary, and seasonal loans are collateralized to the satisfaction of the Bank to reduce credit risk. Assets
eligible to collateralize these loans include consumer, business, and real estate loans; Treasury securities; GSE
debt securities; foreign sovereign debt; municipal, corporate, and state and local government obligations; assetbacked securities; corporate bonds; commercial paper; and bank-issued assets, such as certificates of deposit,
bank notes, and deposit notes. Collateral is assigned a lending value that is deemed appropriate by the Bank,
which is typically fair value reduced by a margin. Loans to depository institutions are monitored daily to ensure
that borrowers continue to meet eligibility requirements for these programs. If a borrower no longer qualifies
for these programs, the Bank will generally request full repayment of the outstanding loan or, for primary or
seasonal loans, may convert the loan to a secondary credit loan. Collateral levels are reviewed daily against
outstanding obligations, and borrowers that no longer have sufficient collateral to support outstanding loans are
required to provide additional collateral or to make partial or full repayment.
The Bank had no loans outstanding as of December 31, 2014 and 2013.
At December 31, 2014 and 2013, the Bank did not have any loans that were impaired, restructured, past due, or on
non-accrual status, and no allowance for loan losses was required. There were no impaired loans during the
years ended December 31, 2014 and 2013.

Sy s t e m O p e n M a r k e t Ac c o u n t
a.

Domestic Securities Holdings

The FRBNY conducts domestic open market operations and, on behalf of the Reserve Banks, holds the resulting
securities in the SOMA.
During the years ended December 31, 2014 and 2013, the FRBNY continued the purchase of Treasury securities and
federal agency and GSE MBS under the large-scale asset purchase programs authorized by the FOMC. In
September 2011, the FOMC announced that the Federal Reserve would reinvest principal payments from the
SOMA portfolio holdings of GSE debt securities and federal agency and GSE MBS in federal agency and GSE
MBS. In June 2012, the FOMC announced that it would continue this reinvestment policy. In September 2012,
the FOMC announced that the Federal Reserve would purchase additional federal agency and GSE MBS at a
pace of $40 billion per month. In December 2012, the FOMC announced that the Federal Reserve would also
purchase longer-term Treasury securities initially at a pace of $45 billion per month after its program to extend
the average maturity of its holdings of Treasury securities was completed in 2012. In December 2013, the FOMC
announced that it would slow the pace of its additional asset purchases. In October 2014, the FOMC concluded
its asset purchase program while maintaining its existing policy of reinvesting principal payments from its
holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of
rolling over maturing Treasury securities at auction.
The Bank’s allocated share of activity related to domestic open market operations was 3.047 percent and 3.883
percent at December 31, 2014 and 2013, respectively.

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
The Bank’s allocated share of Treasury securities, GSE debt securities, and federal agency and GSE MBS, net,
excluding accrued interest, held in the SOMAHeadr-owclumn1:204PCUtizpscolumn3:2014UaretdisTzhwNP$9,87p(5)B6yGSEb-FgM
at December 31 was as follows (in millions):
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The FRBNY enters into transactions for the purchase of securities under agreements to resell and transactions to sell
securities under agreements to repurchase as part of its monetary policy activities. These operations are for the
purpose of further assessing the appropriate structure of such operations in supporting the implementation of
monetary policy during normalization. In addition, transactions to sell securities under agreements to repurchase
are entered into as part of a service offering to foreign official and international account holders.
There were no material transactions related to securities purchased under agreements to resell during the years ended
December 31, 2014 and 2013. Financial information related to securities sold under agreements to repurchase
for the years ended December 31
was as follows (in millions):
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Securities pledged as collateral, at December 31, 2014 and 2013, consisted solely of Treasury securities.

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
The remaining maturity distribution of Treasury securities, GSE debt securities, federal agency and GSE MBS bought
outright, and securities sold under agreements to repurchase that were allocated to the Bank at
December 31, 2014 and 2013Headr-owclumn1:W
ith5ys26903 was as follows (in millions):
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T h e p a r a m o u n t s h o w n f o r f e d e r a l a g e n c y a n d G S E M B S is t h e re m a in in g p r in c ip a l b a l a n c e o f t h e s e c u r itie s .

Federal agency and GSE MBS are reported at stated maturity in the table above. The estimated weighted average
life of these securities, which differs from the stated maturity primarily because it factors in scheduled payments
and prepayment assumptions, was approximately 5.7 and 6.5 years as of December 31, 2014 and 2013,
respectively.
The amortized cost and par value of Treasury securities and GSE debt securities that were loaned from the SOMA
under securities lending agreements, at December
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The FRBNY enters into commitments to buy and sell Treasury securities and records the related securities on a
settlement-date basis. As of December 31, 2014, there were no outstanding commitments.
The FRBNY enters into commitments to buy and sell federal agency and GSE MBS and records the related securities
on a settlement-date basis. As of December 31, 2014, the total purchase price of the federal agency and GSE
MBS under outstanding purchase commitments was $28,692 million, none of which was related to dollar rolls.
The total purchase price of outstanding purchase commitments allocated to the Bank was $874 million, none of
which was related to dollar rolls. As of December 31, 2014, there were no outstanding sales commitments for
federal agency and GSE MBS. These commitments, which had contractual settlement dates extending through
January 2015, are principally for the purchase of TBA MBS for which the number and identity of the pools that
will be delivered to fulfill the commitment are unknown at the time of the trade. These commitments are subject

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
to varying degrees of off-balance-sheet market risk and counterparty credit risk that result from their future
settlement. The FRBNY requires the posting of cash collateral for MBS commitments as part of its risk
management practices used to mitigate the counterparty credit risk.
Other assets consists primarily of cash and short-term investments related to the federal agency and GSE MBS
portfolio. Other liabilities, which are primarily related to federal agency and GSE MBS purchases and sales,
includes the FRBNY’s obligation to return cash margin posted by counterparties as collateral under
commitments to purchase and sell federal agency and GSE MBS. In addition, other liabilities includes
obligations that arise from the failure of a seller to deliver MBS to the FRBNY on the settlement date. Although
the FRBNY has ownership of and records its investments in the MBS as of the contractual settlement date, it is
not obligated to make payment until the securities are delivered, and the amount included in other liabilities
represents the FRBNY’s obligation to pay for the securities when delivered. The amount of other assets and
other liabilities allocated to the Bank and held in the Headr-owclumn1:204AthBk3Bankcolum3:2014TtSOM
SOMA at December 31 was as follows (in millions):
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Accrued interest receivable on domestic securities holdings was $25,561 million and $23,405 million as of December
31, 2014 and 2013, respectively, of which $779 million and $909 million, respectively, was allocated to the
Bank. These amounts are reported as a component of “System Open Market Account: Accrued interest
receivable” in the Statements of Condition.

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
Information about transactions related to Treasury securities, GSE debt securities, and federal agency and GSE
MBS during the years ended December 31, 2014 Headr-owclumn1:AthBkNs2column3:AatedhBkTrsyi4GSEb5FgM
and 2013, is summarized as follows (in millions):
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1 P u rch a ses an d sales m a y include paym ents a n d receip ts re la te d to principal, prem ium s, discounts, and inflation com pensation
adjustm ents to th e basis o f inflation-indexed securities. The am ount re p o rte d as sales includes the realized gains and losses on such
tran sactio n s. P u rch a ses an d sales exclude M B S T B A transactions th a t are settled on a n e t basis.
2 R ealized gains, n e t o ffse t th e am ount o f realized gains and losses included in the re p o rte d sales am ount.
3 R eflects the an n u al adjustm ent to th e B an k 's allocated portion o f the re la te d S O M A securities th a t results fro m the annual settlem ent
o f the interdistrict settlem en t account, as d iscu ssed in N o te 3i.
4 Includes inflation com pensation.

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS

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ehrow

Foreign Currency Denominated Investments

The FRBNY conducts foreign currency operations and, on behalf of the Reserve Banks, holds the resulting foreign
currency denominated investments in the SOMA.
The FRBNY holds foreign currency deposits with foreign central banks and the Bank for International Settlements
and invests in foreign government debt instruments of Germany, France, and Japan. These foreign government
debt instruments are backed by the full faith and credit of the issuing foreign governments. In addition, the
FRBNY enters into transactions to purchase Euro-denominated government debt securities under agreements to
resell for which the accepted collateral is the debt instruments issued by the governments of Belgium, France,
Germany, Italy, the Netherlands, and Spain, which are backed by the full faith and credit of those issuing
governments.
The Bank’s allocated share of activity related to foreign currency operations was 1.672 percent and 1.587 percent at
December 31, 2014 and 2013, respectively.

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
Information about foreign currency denominated investments valued at amortized cost and foreign currency market
exchange rates at December 31Headr-owclumn1:204AthBk3TSOM
was as follows (in millions):
vb8J
k$6,975-G
igypsB
F
E
edhrw
A
M
O
taS
n4:2013T
colum

Accrued interest receivable on foreign currency denominated investments was $83 million and $88 million as of
December 31, 2014 and 2013, respectively, of which $1 million for each of the years was allocated to the Bank.
These amounts are reported as a component of “System Open Market Account: Accrued interest receivable” in
the Statements of Condition.
The remaining maturity distribution of foreign currency denominated investments that were allocated to the Bank at
December 31, 2014 and 2013,Headr-owclumn1:W
ith5ys26903 was as follows (in millions):
i$6978Jp
W
b3,20E
D
dhw
ver1yat5sT
n4:O
colum

There were no foreign exchange contracts related to open market operations outstanding as of December 31, 2014.
The FRBNY enters into commitments to buy foreign government debt instruments and records the related securities
on a settlement-date basis. As of December 31, 2014, there were $137 million of outstanding commitments to
purchase foreign government debt instruments, of which $2 million was allocated to the Bank. These securities
settled on January 5, 2015, and replaced Euro-denominated government debt instruments held in the SOMA that
matured on that date. During 2014, there were purchases and maturities of foreign government debt instruments
of $5,494 million and $3,337 million, respectively, of which $91 million and $55 million, respectively, were
allocated to the Bank. There were no sales of foreign government debt instruments in 2014.

In connection with its foreign currency activities, the FRBNY may enter into transactions that are subject to varying
degrees of off-balance-sheet market risk and counterparty credit risk that result from their future settlement. The
FRBNY controls these risks by obtaining credit approvals, establishing transaction limits, receiving collateral in
some cases, and performing monitoring procedures.
At December 31, 2014 and 2013, there was no balance outstanding under the authorized warehousing facility.
There were no transactions related to the authorized reciprocal currency arrangements with the Bank of Canada and
the Bank of Mexico during the years ended December 31, 2014 and 2013.
Foreign currency working balances held and foreign exchange contracts executed by the Bank to facilitate its
international payments and currency transactions it made on behalf of foreign central banks and U.S. official
institution customers were not material as of December 31, 2014 and 2013.
c.

Central Bank Liquidity Swaps

U.S. Dollar Liquidity Swaps
The Bank’s allocated share of U.S. dollar liquidity swaps was approximately 1.672 percent and 1.587 percent at
December 31, 2014 and 2013, respectively.
The total foreign currency held under U.S. dollar liquidity swaps in the SOMA at December 31, 2014 and 2013, was
$1,528 million and $272 million, respectively, of which $26 million and $4 million, respectively, was allocated
to the Bank.
The remaining maturity distribution of U.S. dollar liquidity swaps that were allocated to the Bank at December 31
was as followsHeadr-owclumn1:204W
ith5ys693T (in millions):
$-Jp
E
erw
ith5days69T
n4:2013W
colum

Foreign Currency Liquidity Swaps
At December 31, 2014 and 2013, there was no balance outstanding related to foreign currency liquidity swaps.
d.

Fair Value o f SOMA Assets and Liabilities

The fair value amounts below are presented solely for informational purposes. Although the fair value of SOMA
security holdings can be substantially greater than or less than the recorded value at any point in time, these
unrealized gains or losses have no effect on the ability of the Reserve Banks, as the central bank, to meet their
financial obligations and responsibilities. Because SOMA securities are recorded at amortized cost, cumulative
unrealized gains (losses) are not recognized in the Statements of Condition and the changes in cumulative
unrealized gains (losses) are not recognized in the Statements of Income and Comprehensive Income.
The fair value of the Treasury securities, GSE debt securities, federal agency and GSE MBS, and foreign government
debt instruments in the SOMA’s holdings is subject to market risk, arising from movements in market variables
such as interest rates and credit risk. The fair value of federal agency and GSE MBS is also affected by the
expected rate of prepayments of mortgage loans underlying the securities. The fair value of foreign government

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
debt instruments is also affected by currency risk. Based on evaluations performed as of December 31, 2014,
there are no credit impairments of SOMA securities holdings.
The following table presents the amortized cost, fair value, and cumulative unrealized gains (losses) on the Treasury
securities, GSE debt securities, and federal agency and GSE MBS held in the SOMA at December 31 (in
millions):
v
kizsF
thB
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H
H
pf-P
O
bM
E
S
$,987G
yN
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6w
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kC
atedhB
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colum

The fair value of Treasury securities and GSE debt securities was determined using pricing services that provide
market consensus prices based on indicative quotes from various market participants. The fair value of federal
agency and GSE MB S was determined using a pricing service that utilizes a model-based approach that considers
observable inputs for similar securities.
The cost basis of securities purchased under agreements to resell, securities sold under agreements to repurchase, and
other investments held in the SOMA domestic portfolio approximate fair value.
At December 31, 2014 and 2013, the fair value of foreign currency denominated investments was $20,996 million
and $23,802 million, respectively, of which $351 million and $378 million, respectively, was allocated to the
Bank. The fair value of foreign government debt instruments was determined using pricing services that provide
market consensus prices based on indicative quotes from various market participants. The fair value of foreign
currency deposits and securities purchased under agreements to resell was determined by reference to market
interest rates.

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
The following table provides additional information on the amortized cost and fair values of the federal agency and
GSE MBS portfolio at December
31 (in millions):
V
z3F
hgyp204A
S
B
istbfM
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H
O
8,76T
$9V
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S
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bfM
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avhw
rtizeds5F
n4:2013A
colum

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
The following tables present the realized gains (losses) and the change in the cumulative unrealized gains (losses)
related to SOMA domestic securities holdings during theHeadr-owclumn1:204AthBkRizgsbfp“N()SyOM
v years ended December 31, 2014 and 2013 (in millions):
”IC
8H
9F
E
$567G
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-y”w
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1Realized gains are reported in “Non-interest (loss) income : System Open Market Account” in the Statements of Income and Comprehensive
Income.
2Because SOMA securities are recorded at amortized cost, the change in the cumulative unrealized gains (losses) is not reported in the Statements
of Income and Comprehensive Income.

The amount of change in cumulative unrealized gains (losses) position, net, related to foreign currency denominated
investments was a gain of $18 million and a loss of $90 million for the years ended December 31, 2014 and
2013, respectively, of which $281 thousand and $1 million, respectively, were allocated to the Bank.
Accounting Standards Codification (ASC) Topic 820 (ASC 820) defines fair value as the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. ASC 820 establishes a three-level fair value hierarchy that distinguishes between
assumptions developed using market data obtained from independent sources (observable inputs) and the Bank’s
assumptions developed using the best information available in the circumstances (unobservable inputs). The
three levels established by ASC 820 are described as follows:
•

Level 1 - Valuation is based on quoted prices for identical instruments traded in active markets.

•

Level 2 - Valuation is based on quoted prices for similar instruments in active markets, quoted prices
for identical or similar instruments in markets that are not active, and model-based valuation techniques
for which all significant assumptions are observable in the market.

•

Level 3 - Valuation is based on model-based techniques that use significant inputs and assumptions
not observable in the market. These unobservable inputs and assumptions reflect the Bank’s estimates

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
of inputs and assumptions that market participants would use in pricing the assets and liabilities.
Valuation techniques include the use of option pricing models, discounted cash flow models, and
similar techniques.
Treasury securities, GSE debt securities, federal agency and GSE MBS, and foreign government debt instruments
are classified as Level 2 within the ASC 820 hierarchy because the fair values are based on indicative quotes
and other observable inputs obtained from independent pricing services. The fair value hierarchy level of SOMA
financial assets is not necessarily an indication of the risk associated with those assets.
6.

Ba n k P r e m is e s , Eq u ip m e n t , a n d So f t w a r e
Bank premises and equipment at December
n1:2043h
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H
31 were as follows (in millions):
provets2014:$63B
andlim
xfL
(),D
bA
5S
F
kqug9chy7C

The decrease in Bank premises and equipment, net is primarily due to the sale o f the San Antonio Branch facility
and continued depreciation o f other assets.
The Bank leases space to outside tenants with remaining lease terms ranging from 1 to 3 years. Rental income from
such leases was $2 million for each o f the years ended December 31, 2014 and 2013, and is reported as a
component o f “Non-interest (loss) income: Other” in the Statements o f Income and Comprehensive Income.
Future minimum lease payments that the Bank will receive under noncancelable lease agreements in existence
at December 31, 2014, are as follows (in millions):
2015

2016
2017
Total

1.3

1.2
____________0.5
_$_________ 3.0

The Bank had capitalized software assets, net o f amortization, o f $5 million and $4 m illion at December 31, 2014
and 2013, respectively. Amortization expense was $2 million and $1 million for the years ended December 31,
2014 and 2013, respectively. Capitalized software assets are reported as a component o f “Other assets” in the
Statements o f Condition and the related amortization is reported as a component o f “Operating expenses: Other”
in the Statements o f Income and Comprehensive Income.

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
7.

Co m m it m e n t s a n d Co n t in g e n c ie s
In conducting its operations, the Bank enters into contractual commitments, normally with fixed expiration dates or
termination provisions, at specific rates and for specific purposes.
At December 31, 2014, the Bank was obligated under noncancelable leases for premises and equipment with
remaining terms ranging from 1 to approximately 14 years. These leases provide for increased lease payments
based upon increases in real estate taxes and operating costs.
Rental expense under operating leases for certain operating facilities, warehouses, and data processing and office
equipment (including taxes, insurance, and maintenance when included in rent), net of sublease rentals, was
$621 thousand and $209 thousand for the years ended December 31, 2014 and 2013, respectively.
Future minimum lease payments under noncancelable operating leases, net of sublease rentals, with remaining terms
of one year or more, at December 31,heraftO
ptigshF
n1:O
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pingls:3,954H
y$678201T2014, are as follows (in thousands):
um

At December 31, 2014, there were no material unrecorded unconditional purchase commitments or obligations in
excess of one year.
Under the Insurance Agreement of the Reserve Banks, each of the Reserve Banks has agreed to bear, on a perincident basis, a share of certain losses in excess of 1 percent of the capital paid-in of the claiming Reserve Bank,
up to 50 percent of the total capital paid-in of all Reserve Banks. Losses are borne in the ratio of a Reserve
Bank’s capital paid-in to the total capital paid-in of all Reserve Banks at the beginning of the calendar year in
which the loss is shared. No claims were outstanding under the agreement at December 31, 2014 and 2013.
8.

Re t ir e m e n t

and

Th r if t P l a n s

Retirement Plans
The Bank currently offers three defined benefit retirement plans to its employees, based on length of service and
level of compensation. Substantially all of the employees of the Reserve Banks, Board of Governors, and Office
of Employee Benefits of the Federal Reserve System participate in the Retirement Plan for Employees of the
Federal Reserve System (System Plan). Under the Dodd-Frank Act, newly hired Bureau employees are eligible
to participate in the System Plan. In addition, employees at certain compensation levels participate in the Benefit
Equalization Retirement Plan (BEP) and certain Reserve Bank officers participate in the Supplemental
Retirement Plan for Select Officers of the Federal Reserve Banks (SERP).
The FRBNY, on behalf of the System, recognizes the net asset or net liability and costs associated with the System
Plan in its consolidated financial statements. During the years ended December 31, 2014 and 2013, certain costs
associated with the System Plan were reimbursed by the Bureau.
The Bank’s projected benefit obligation, funded status, and net pension expenses for the BEP and the SERP at
December 31, 2014 and 2013, and for the years then ended, were not material.

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
Thrift Plan
Employees of the Bank participate in the defined contribution Thrift Plan for Employees of the Federal Reserve
System (Thrift Plan). The Bank matches 100 percent of the first 6 percent of employee contributions from the
date of hire and provides an automatic employer contribution of 1 percent of eligible pay. The Bank’s Thrift
Plan contributions totaled $6 million for each of the years ended December 31, 2014 and 2013, respectively, and
are reported as a component of “Operating expenses: Salaries and benefits” in the Statements of Income and
Comprehensive Income.
9.

P o s t r e t ir e m e n t Be n e f it s O t h e r T h a n R e t ir e m e n t P l a n s a n d P o s t e m p l o y m e n t Be n e f it s
Postretirement Benefits Other Than Retirement Plans
In addition to the Bank’s retirement plans, employees who have met certain age and length-of-service requirements
are eligible for both medical and life insurance benefits during retirement.
The Bank funds benefits payable under the medical and life insurance plans as due and, accordingly, has no plan
assets.
Following is a reconciliation of the beginning and ending
n1:2043hA
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balances of the benefit obligation (in millions):
D
P
M
B
()8C
vh57I6N
latedposrinbfgJy1204:$.3S
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At December 31, 2014 and 2013, the weighted-average discount rate assumptions used in developing the
postretirement benefit obligation were 3.96 percent and 4.79 percent, respectively.
Discount rates reflect yields available on high-quality corporate bonds that would generate the cash flows necessary
to pay the plan’s benefits when due. The System Plan discount rate assumption setting convention uses an
unrounded rate.

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
Following is a reconciliation of the beginning and ending balance of the plan assets, and the unfunded postretirement
benefit obligation and accrued postretirement
benefit costs (in millions):
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Accrued postretirement benefit costs are reported as a component of “Accrued benefit costs” in the Statements of
Condition.
For measurement purposes, the assumed health-care
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9 cost trend rates at December 31 are as follows:
i()5Y
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37R
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ealth-crosndum

Assumed health-care cost trend rates have a significant effect on the amounts reported for health-care plans. A one
percentage point change in assumed health-care cost trend rates would have the following effects for the year
ended December 31,H
ptgis2pointdecrashw
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:$2.1(7)ul895 2014 (in millions):
bO
fgvm
E

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
The following is a summary of the components of net periodic postretirement benefit expense for the years ended
December 31H
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x9(in millions):
z()N
l6A
ervicost-bnfadughp2014:$.537Im

Estimated amounts that will be amortized from accumulated other comprehensive loss into net periodic
postretirement benefit expense in 2015 are shown below:
Prior service c o st
N et actuarial loss
T otal

$
(0.1)
___________
_$______ (0.1)

Net postretirement benefit costs are actuarially determined using a January 1 measurement date. At January 1, 2014
and 2013, the weighted-average discount rate assumptions used to determine net periodic postretirement benefit
costs were 4.79 percent and 3.75 percent, respectively.
Net periodic postretirement benefit expense is reported as a component of “Operating expenses: Salaries and
benefits” in the Statements of Income and Comprehensive Income.
The Medicare Prescription Drug, Improvement and Modernization Act of 2003 established a prescription drug
benefit under Medicare (Medicare Part D) and a federal subsidy to sponsors of retiree health-care benefit plans
that provide benefits that are at least actuarially equivalent to Medicare Part D. The benefits provided under the
Bank’s plan to certain participants are at least actuarially equivalent to the Medicare Part D prescription drug
benefit. The estimated effects of the subsidy are reflected in actuarial loss in the accumulated postretirement
benefit obligation and net periodic postretirement benefit expense.
Federal Medicare Part D subsidy receipts were $392 thousand and $311 thousand in the years ended December 31,
2014 and 2013, respectively. Expected receipts in 2015, related to benefits paid in the years ended December
31, 2014 and 2013, are $122 thousand.
Following is a summary of expected postretirement
ithsby2201467-T
n1:W
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benefit payments (in millions):
ihusbdy:$59.38H
otalW

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
Postemployment Benefits
The Bank offers benefits to former or inactive employees. Postemployment benefit costs are actuarially determined
using a December 31 measurement date and include the cost of providing disability; medical, dental, and vision
insurance; and survivor income benefits. The accrued postemployment benefit costs recognized by the Bank at
December 31, 2014 and 2013, were $7 million and $9 million, respectively. This cost is included as a component
of “Accrued benefit costs” in the Statements of Condition. Net periodic postemployment benefit expense
included in 2014 and 2013 operating expenses were $41 thousand and $1 million, respectively, and are recorded
as a component of “Operating expenses: Salaries and benefits” in the Statements of Income and Comprehensive
Income.
10. Ac c u m u l a t e d O t h e r Co m p r e h e n s iv e I n c o m e An d O t h e r Co m p r e h e n s iv e I n c o m e
Following is a reconciliation of beginning and ending balances of accumulated other comprehensive loss as of
December 31Headr-owclumn1:204Atpsibfhcolumn2:013AtreadpsibfhwBJy4$(.)CgPv-7zR“OExS”IN8659D(in millions):

1Reclassification is reported as a component of “Operating Expenses: Salaries and benefits” in
the Statements of Income and Comprehensive Income.

Additional detail regarding the classification of accumulated other comprehensive loss is included in Note 9.

FEDERAL RESERVE BANK OF DALLAS
NOTES TO FINANCIAL STATEMENTS
11. Bu s in e s s Re s t r u c t u r in g Ch a r g e s
The Bank had no business restructuring charges in 2014 and 2013.
In years prior to 2013, the Reserve Banks announced the acceleration of their check restructuring initiatives to align
the check processing infrastructure and operations with declining check processing volumes. The new
infrastructure consolidated paper and electronic check processing at the FRBA. The Reserve Banks also
announced the consolidation of some of their currency processing operations. As a result of this initiative,
currency processing operations performd by the San Antonio Branch were consolidated into the Houston Branch.
Final distribution of 2012 and prior restructuring plans was made in 2014.
12. DISTRIBUTION OF C OMPREHENSIVE I NCOME
In accordance with Board policy, Reserve Banks remit excess earnings, after providing for dividends and the amount
necessary to equate surplus with capital paid-in, to the U.S. Treasury as earnings remittances to the Treasury.
The following table presents the distribution of the Bank’s comprehensive income in accordance with the
3hw
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Board’s policy for the years ended
yf()p-qH
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otaldisrbun2014:$3,658gem
vk7 December 31 (in millions):
D
E

During the year ended December 31, 2014, the Bank recorded a reduction in the amount of capital paid-in and a
corresponding reduction of surplus, which is presented in the above table as “Transfer from surplus - amount
required to equate surplus with capital paid-in.” The reduction of surplus resulted in an equivalent increase in
“Earnings remittances to the Treasury” and an increase in “Comprehensive loss” for the year ended December
31, 2014.
13. Su b s e q u e n t E v e n t s
There were no subsequent events that require adjustments to or disclosures in the financial statements as of December
31, 2014. Subsequent events were evaluated through March 11, 2015, which is the date that the financial
statements were available to be issued.

Oﬃcers/Senior Staff
As of December 31, 2014

Annual Report 2014

DALLAS

Richard W. Fisher

Helen E. Holcomb

President and Chief Executive
Officer

First Vice President and
Chief Operating Officer

Meredith N. Black

John D. Buchanan

Evan F. Koenig

Senior Vice President

Senior Vice President, General
Counsel and Corporate
Secretary

Senior Vice President and
Principal Policy Advisor

Joanna O. Kolson

Harvey R. Mitchell III

Alfreda B. Norman

Senior Vice President

E. Ann Worthy

Mine K. Yücel

Senior Vice President

Senior Vice President and
Director of Research

Tommy E. Alsbrooks

Glenda S. Balfantz

Bobby E. Coberly Jr.

Vice President

Vice President and General
Auditor

Vice President

Diane M. de St. Germain

John V. Duca

Paul T. Elzner

Vice President and Regional Sales
Manager

Vice President and Associate
Director of Research

Vice President

Robert G. Feil

Sherry Kidd Garvin

KaSandra Goulding

Vice President and Associate
Secretary

Vice President

Kathy K. Johnsrud

Rob Jolley

Richard J. Mase Jr.

Vice President

Dana S. Merritt

Robert R. Moore

Pia M. Orrenius

Vice President and OMWI Director

Vice President

Sharon A. Sweeney

Robert L. Triplett III

Michael N. Turner

Vice President, Deputy General
Counsel and Associate Secretary

Vice President

Hazel W. Adams

Dex Beyene

Stephan D. Booker

Assistant Vice President

Laurel M. Brewster

Claude H. Davis

Mario A. Garcia

Assistant Vice President

Jeffrey L. Garrett

D. Kay Gribbin

Barbara R. Hendrix

Assistant Vice President

Steve Henslee

Laurel S. Neustadter

Vincent G. Pacheco

Mark A. Wynne
Vice President, Associate Director
of Research and Director of the
Globalization and Monetary Policy
Institute

Assistant Vice President

Jane L. Pyke

Allen E. Qualman

Rita Riley

Assistant Vice President

Gary A. Scott

William W. Shaffer Jr.

Shareef Shaik

Assistant Vice President

Thomas F. Siems

Jay Sudderth

Marion E. White

Assistant Vice President

Natalia Bennett

Matthew C. Davies

Mark D. Duncan

Information Technology Officer

Payments Outreach Officer

Corporate Planning Officer

Mario Hernandez

James R. Hoard

Michael D. Johnson

Statistics Officer

Public Affairs Officer

Information Technology Officer

Anthony Murphy
Economic Policy Advisor and Senior
Economist

EL PASO

Roberto A. Coronado

Javier R. Jimenez

Assistant Vice President in Charge

Assistant Vice President

HOUSTON

Daron D. Peschel

Donald N. Bowers II

Michelle D. Treviño

Senior Vice President in Charge

Assistant Vice President

Jason K. Ritchie

Paul R. Wheeler

Operations Officer

Examining Officer

SAN ANTONIO

Blake Hastings

Leonard S. Edgar

Tara F. Payne

Senior Vice President in Charge

Examining Officer

Public Affairs Officer

Keith R. Phillips
Research Officer

Full text of Annual Report of the Federal Reserve Bank of Dallas : Annual Report, 2014 : Examinations of the Reserve Bank

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