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Table of Contents

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EQ

PRESIDENT'S LETTER

First Vice President's Letter
News

and

Views: The Third District Economy

Directors, Officers

and

Advisory Councils

Statement of Condition

0

El

Earnings

and

Expenses

Operating Statistics

The Federal Reserve Bank of Philadelphia

President's Letter
UR NATION’S ECONOMY GREW AT A MODEST PACE IN 1 992, AND BY YEAR-END THE

O

PROSPECTS FOR SUSTAINABLE GROWTH HAD SIGNIFICANTLY IMPROVED.

Third District,

HERE IN THE

we also began to see signs of expansion last year,

not every sector or

AREA IS GROWING YET, BUT I SENSE THAT OVERALL BUSINESS ACTIVITY IS ON THE UPSWING.

Once

a region heavily dependent on manufacturing, the

oped A MUCH MORE DIVERSIFIED ECONOMIC BASE IN RECENT YEARS.

Third District

has devel­

IN THE EARLY 1 970S, MORE

THAN ONE-THIRD OF THE JOBS IN THE THREE DISTRICT STATES WERE IN MANUFACTURING.

BY THE

LATE 198OS, THAT PROPORTION HAD DECLINED TO LESS THAN ONE-FIFTH. TODAY, THE PATTERN OF

District

employment in agriculture, construction, manufacturing and the services indus­

tries CLOSELY MATCHES THAT OF THE NATION.

WITH DIVERSIFICATION, OUR DISTRICT ENJOYED SOLID GROWTH DURING THE EXPANSION OF

THE 1980S.

JOB GROWTH WAS RELATIVELY STRONG AND, BY THE END OF THE DECADE, UNEMPLOY­

MENT RATES FOR THE DISTRICT STATES FELL BELOW THE NATIONAL AVERAGE.

2

The Federal Reserve Bank of Philadelphia

Unfortunately, neither the economic diversification nor
kets OF THE late

1980s could shield us

the strong labor mar­

from the recession and slow recovery that have

PLAGUED THE NATION THUS FAR IN THE 1 990S.

INDEED, THE THIRD DISTRICT HAS SUFFERED A

MORE SERIOUS RECESSION AND SLOWER RECOVERY THAN SOME OTHER PARTS OF THE COUNTRY.

BUT IN THE FALL OF LAST YEAR, WE BEGAN TO SEE SIGNS THAT THE DISTRICT IS ON THE
ROAD TO SUSTAINED GROWTH.

RETAIL SALES PICKED UP.

CONSUMERS BEGAN SHOWING MORE CONFIDENCE, AND THE PACE OF

THIRD DISTRICT EMPLOYMENT EDGED UP SLIGHTLY DURING THE FOURTH

QUARTER, AND AS WE MOVED INTO 1993, OUR REGULAR SURVEYS INDICATED AN IMPROVEMENT IN
THE OVERALL LEVEL OF ECONOMIC ACTIVITY.

WE ALSO SEE CONTINUED IMPROVEMENT IN THE ENVIRONMENT FOR BANK LENDING.

HAVE IMPROVED THEIR CAPITAL POSITIONS AND REDUCED THEIR NONPERFORMING LOANS.

DEMAND FROM SMALL AND MEDIUM-SIZE BUSINESSES HAS PICKED UP SOMEWHAT.

BANKS
LOAN

BANKERS APPEAR

MORE ACTIVE IN SEEKING OUT LENDING OPPORTUNITIES. BANK REGULATORS ARE MORE SENSITIVE

ABOUT REGULATORY IMPEDIMENTS TO LENDING. ALL IN ALL, THE STAGE APPEARS SET FOR AN
INCREASE IN BANK LENDING DURING 1993.

SINCE EARLY 1989, THE FEDERAL RESERVE HAS BEEN USING ITS TRADITIONAL MONETARY

POLICY TOOLS TO HELP FOSTER ECONOMIC PERFORMANCE MORE IN KEEPING WITH OUR NATION'S

POTENTIAL. THE FED CONTINUED TO EASE MONETARY POLICY IN 1992.
INTEREST RATES FELL TO THEIR LOWEST LEVELS IN 30 YEARS.

AS A RESULT, SHORT-TERM

BY YEAR-END, STUBBORNLY HIGH

LONG-TERM RATES BEGAN TO DECLINE AS WELL.

INFLATIONARY PRESSURES HAVE EASED IN RECENT YEARS, AND THESE GAINS ARE CRUCIAL
FOR SUSTAINABLE GROWTH AND PROSPERITY. LOWER INFLATION AND THE PROSPECT OF SMALLER

FEDERAL BUDGET DEFICITS SHOULD HELP KEEP LONG-TERM INTEREST RATES LOW AND THUS RAISE
THE PATH OF EMPLOYMENT AND ECONOMIC GROWTH IN 1 993 AND BEYOND.

Edward G. Boehne

President

The Federal Reserve Bank of Philadelphia

3

Letter from the First Vice President
hroughout the

T

Third District, banks and other companies

are rigorously

RESTRUCTURING THEIR ORGANIZATIONS TO RAISE PRODUCTIVITY AND IMPROVE THE

QUALITY OF THEIR SERVICES.

WE AT THE PHILADELPHIA FED ARE COMMITTED TO SUPPORTING THE

CHANGES OF A NEW, MORE VIGILANT BUSINESS ENVIRONMENT AND TO HELPING BANKS IMPROVE THEIR

SERVICES BY UPGRADING OUR OWN.

During

1992, we made significant progress in many areas of our operations.

We

WORKED TO IMPROVE OUR SERVICES AND PRODUCTS TO FINANCIAL INSTITUTIONS IN THE DISTRICT.

WE ALSO STEPPED UP OUR QUALITY PROGRAMS AND IMPROVED OUR CONTROL SYSTEMS ON A BANK­
WIDE BASIS. THE CHALLENGES WERE MANY, BUT OUR EFFORTS HAVE BEEN REWARDED.

4

The Federal Reserve Bank of Philadelphia

Already
our

the largest single-site check processor in the

Bank experienced a major

increase in volume in

Federal Reserve System,

1992. The

total number of items

PROCESSED WAS UP BY ALMOST 10 PERCENT OVER 1991.

OUR FOCUS ON QUALITY AND CONTROL EFFORTS HELPED DISTINGUISH US IN OTHER AREAS
OF THE BANK, TOO.

OUR DATA SECURITY CONTROLS, FOR INSTANCE, PRESENTLY RANK AMONG THE

BEST IN THE FEDERAL RESERVE SYSTEM.

THE CHALLENGES TO OUR SUPERVISORY ACTIVITIES OVER THE PAST YEAR WERE INDEED

NUMEROUS.

OUR SUPERVISION AND REGULATION DEPARTMENT HAS UNDERGONE MANY CHANGES

SINCE THE PASSAGE OF THE FDIC IMPROVEMENT ACT.

WE ADDED STAFF AND REORGANIZED THE

DEPARTMENT IN ORDER TO BETTER COORDINATE AND IMPROVE SUPERVISORY ACTIVITIES.

All

in all, we accomplished the goals we set for ourselves BECAUSE people at

ALL LEVELS OF OUR OPERATIONS WERE ENCOURAGED TO GET INVOLVED. THE TEAM EFFORT OF OUR

EMPLOYEES WAS THE KEY TO A SUCCESSFUL YEAR.

IN THE SPIRIT OF A STRENGTHENED ENVIRONMENT, WE WILL CONTINUE IMPROVING

The

SERVICES WE PROVIDE YOU, JUST AS YOU CONTINUE improving services TO YOUR

CUSTOMERS.

WILLIAM H. STONE, JR.
first

Vice

president

The Federal Reserve Bank of Philadelphia

5

ichard W. Lang

(right). Senior Vice
President and Director of

Research, and Theodore
M. Crone, Assistant Vice
President and Economist,

discuss recently com­
piled Third District data.

News and Views: The Third District Economy

p

■ ■

IVEN ITS LOCATION, IT'S TEMPTING TO THINK OF THE THIRD FEDERAL RESERVE

Vb

District

as a slice of the

NORTHEAST RUST BELT.

Eastern "megalopolis" or

a section in the

BUT THE DISTRICT SERVED BY THE FEDERAL RESERVE BANK OF

PHILADELPHIA IS AN ECONOMICALLY DIVERSE ONE.

PHILADELPHIA ITSELF IS THE FOURTH MOST POPULOUS METROPOLITAN AREA IN THE
NATION-HOME TO SOME 5 MILLION PEOPLE.

BUT NOT FAR FROM THE CITY-IN PARTS OF SOUTH

JERSEY, SOUTHERN DELAWARE AND SOUTH-CENTRAL PENNSYLVANIA-FARMING IS STILL A MAJOR

INDUSTRY.

IN A SENSE, THE THIRD DISTRICT IS A MICROCOSM OF THE NATION. THERE'S A LITTLE BIT
OF EVERYTHING HERE.

THE PROPORTIONS OF OUR WORK FORCE ENGAGED IN AGRICULTURE, MANU­

FACTURING AND THE SERVICE INDUSTRIES CLOSELY MATCH THOSE OF THE COUNTRY AS A WHOLE.

BUT THE DISTRICT HAS ITS SPECIALTIES AS WELL-SUCH AS HEALTH CARE.

WE HAVE A

LARGE NUMBER OF MEDICAL CENTERS AND A CONCENTRATION OF PHARMACEUTICAL RESEARCH AND

PRODUCTION COMPANIES.

National economic shifts
HETEROGENEOUS AS OURS.
OF THE 1980S.

and trends have an irregular impact on a region as

NEW JERSEY, FOR EXAMPLE, PROSPERED DURING THE LONG EXPANSION

A BUILDING BOOM, COUPLED WITH A SURGING FINANCIAL SERVICES INDUSTRY AND

CASINO GAMBLING IN ATLANTIC CITY, BROUGHT TREMENDOUS GROWTH TO THE STATE. BUT WHEN
THE BUILDING STOPPED, THE STATE SLIPPED BADLY.

Meanwhile in Pennsylvania,

the expansion of the

1980s

never really produced

A BOOM AND THE ENSUING RECESSION NEVER PRODUCED A BUST.

Pennsylvania was spared

a recession.

As is

THIS IS NOT TO SAY

typical of recessions, the most recent

RECESSION HIT MANUFACTURING EMPLOYMENT HARD AND MANUFACTURING IS IMPORTANT IN

PENNSYLVANIA.

The Federal Reserve Bank of Philadelphia

7

'./v. - »
J

harles C. Bylone

President, Vineland

Cooperative Produce
Auction,Vineland, New
Jersey, shows a lush bed

of romaine lettuce
Mr.Bylone is chairman of

the Philadelphia Fed's
Small Business/Agriculture

Advisory Council

oreover, much of

M

Pennsylvania comprises small

towns where one firm

REPRESENTS THE MAJOR SOURCE OF EMPLOYMENT.

AS INDIVIDUAL FIRMS

FALTER, INDIVIDUAL COMMUNITIES FEEL THE IMPACT.

Delaware,

one of the smallest states in the nation, took its economic destiny

INTO ITS OWN HANDS-AND HAS REAPED THE REWARDS. WITH THE PASSAGE OF ITS FINANCIAL CENTER

Development Act

in 1981,

Delaware

became the location of choice for credit-card and

OTHER OPERATIONS FOR A NUMBER OF THE NATION'S LARGEST BANKS. OVER THE NEXT 10 YEARS,

FINANCIAL-SECTOR EMPLOYMENT DOUBLED AND OVERALL JOB GROWTH IN THE STATE WAS ONE AND

A HALF TIMES THE NATIONAL AVERAGE.

Though employment declined
the

District states to regain

On

in

Delaware during

its pre-recession employment level.

the whole, the most recent recession hit the

REST OF THE NATION.

the recession, it is the first of

Third District harder than the

AT THE RECESSION'S WORST, WHICH FOR THIS REGION CAME IN THE THIRD

QUARTER OF 1992, DISTRICT EMPLOYMENT HAD DECLINED 4 PERCENT.

MORE THAN THREE-QUAR­

TERS OF JOBS LOST WERE IN MANUFACTURING AND CONSTRUCTION, BUT AGAIN MIRRORING THE
NATION, AN UNUSUALLY HIGH PERCENTAGE WERE IN THE SERVICE INDUSTRIES.

AS 1992 DREW TO A CLOSE, WE WERE ONLY STARTING TO SEE THE FIRST SIGNS OF A
GENUINE ECONOMIC RECOVERY.

quarter.

Retailers

dents to our

EMPLOYMENT EDGED UP IN THE DISTRICT DURING THE FOURTH

reported healthy holiday sales, and a growing number of respon­

Business Outlook Survey reported

stepped-up production.

As THE RECESSION FADES AND THE RECOVERY GETS UNDER WAY, THE LONG-RUN TRENDS AT
WORK IN OUR DISTRICT WILL REEMERGE.

AGAIN THE TRENDS ARE NATIONAL, BUT THE SPECIAL

CHARACTERISTICS OF THE DISTRICT SHAPE THEIR IMPACT HERE.

The Federal Reserve Bank of Philadelphia

9

L

ozelle DeLuz, President

and Owner, Deluz

Management, at one of the

MacDonald's she operates
in downtown Wilmington,

Delaware. Mrs.DeLuz is

deputy chairperson of the
Philadelphia. Fed's Small
Business/Agriculture
Advisory Council.

r

I

IV

ANUFACTURED GOODS REPRESENT A STEADY SHARE OF THE NATION'S OUTPUT,
BUT MANUFACTURING JOBS REPRESENT A DECLINING SHARE OF THE NATION'S
EMPLOYMENT, AS PRODUCTIVITY IN THAT SECTOR CONTINUES TO RISE RAPIDLY.

Our own District

Index

is no exception to that trend.

Our Mid-Atlantic Manufacturing

shows output growing at an annual rate of 1 1/4 percent during the 1980s, while

MANUFACTURING EMPLOYMENT WITHIN THE DISTRICT FELL AT NEARLY A 1 PERCENT RATE.

The

demographics of our district accentuate the impact of two other national

EMPLOYMENT TRENDS: THE DECLINE OF CONSTRUCTION AND THE RISE OF SERVICES.

Across

the country, the aging of the baby boomers is slowing the rate of house­

hold FORMATION.

OVER TIME THIS IS DIMINISHING THE DEMAND FOR NEW HOMES.

MEANWHILE,

PEOPLE ARE LIVING LONGER AND THIS AGING POPULATION IS DEMANDING MORE HEALTH CARE
SERVICES.

HERE IN THE THIRD DISTRICT, GROWTH IN THE WORKING-AGE POPULATION LAGS THE REST

OF THE NATION AND THE AVERAGE AGE OF THIRD DISTRICT RESIDENTS EXCEEDS THE NATIONAL

AVERAGE.

Perhaps

nowhere are national trends having more of an impact than on the

District's banking industry. Of course,

the impact of the FDIC Improvement

Act of 1991

HAS YET TO BE FELT COMPLETELY. THE LAW HAS ALREADY TIGHTENED REGULATORY STANDARDS AND

FOSTERED MORE CAUTIOUS LENDING PRACTICES, BUT OTHER PROVISIONS CONCERNING BANK MANAGE­
MENT PRACTICES AND RESPONSIBILITIES HAVE YET TO BE IMPLEMENTED.

The Federal Reserve Bank of Philadelphia

11

A

fiN Inside View...

By each of

the maps below, we've indicated the number of small, medium and large com­

mercial BANKS (BY ASSETS) IN THE PORTIONS OF THE THREE STATES IN THE THIRD FEDERAL

Reserve District. Our District includes the eastern two-thirds of Pennsylvania,
Southern New Jersey and all of Delaware.

PENNSYLVANIA

Small banks

Medium banks
Large banks

DELAWARE

• Small
•

• Large

12

banks------- total assets under $100 million

MEDIUM BANKS------- BETWEEN $100 MILLION AND $1 BILLION

banks------- greater than $1 billion

The Federal Reserve Sank of Philadelphia

A

Look At Annual Growth

in

Payroll Employment...

3

2

1

0

-1

-2

-3

■

Pennsylvania

j

New Jersey

Delaware

The Federal Reserve Bank of Philadelphia

13

resident Boehne

P

regularly meets with

business and community

leaders throughout the

Third District. After

a recent meeting in
Bloomsburg, Pennsylvania,

President Boehne visited
local businessman Mike

Kanterman, Executive

Vice President, Magee
Industrial Enterprises.

Inc. The company manu­

factures carpeting for
automobiles.

D

UT FOR OVER A DECADE, BANKING IN THE DISTRICT HAS BEEN EVOLVING IN

RESPONSE TO CHANGING REGULATION, FINANCIAL INNOVATIONS AND TECHNOLOGI­
CAL advances.

Delaware has established

itself as a harbor for several of the largest

INSTITUTIONS OPERATING ON A NATIONAL SCALE. MEANWHILE IN NEW JERSEY, THE LARGER INSTITU­
TIONS ARE CAPTURING A GREATER SHARE OF THE BANKING BUSINESS THROUGH CONSOLIDATION.

Pennsylvania, holding companies

IN

had been combining community banks into networks to

TAKE ADVANTAGE OF SCALE ECONOMIES.

NOW CONSOLIDATION SEEMS TO BE COMING TO

Pennsylvania banking as well.

Throughout

the year, we heard the frustrations of people dealing with a

LINGERING RECESSION-AND RECESSION PSYCHOLOGY.

THE HARDWARE STORE OWNER WHO COM­

PLAINS HIS CUSTOMERS “WILL DRIVE FIVE MILES TO SAVE 25 CENTS.”

“Every

one of my customers says the same thing:

‘It's bad out

OR THE BANKER WHO SAYS,

there, but

I've been

lucky’.”

a

But

they express even greater concerns about THE LONG-RUN ISSUES: the respon­

siveness OF GOVERNMENT; THE QUALITY OF OUR LABOR FORCE; AND THE CHALLENGE OF AN
INCREASINGLY INTERNATIONAL ECONOMY.

Whatever the challenges, third district businesses respond with practicality
AND PURPOSE.

ASKED HOW HE SURVIVES DIFFICULT TIMES, ONE FARMER SAID SIMPLY, “WE DIVERSI­

FY OUR PRODUCTS AND WE MAINTAIN OUR QUALITY.” A DISTRICT BUSINESSWOMAN PUT HER MISSION
THIS WAY: “WE SERVE OUR CUSTOMERS AND WE SERVE OUR COMMUNITY.”

The Federal Reserve Bank of Philadelphia

15

eputy Chairperson of
the Board Jane G.

Pepper, President of the
Pennsylvania Horticultural

Society, Philadelphia,
Pennsylvania, and Chairman

of the Board Peter A.
Benoliel, Chairman of
Quaker Chemical Corp.,
Conshohocken, Pennsylvania

Board of Directors
n

1992, James A. Hagen

was elected a

Class B director, replacing

I

Nicholas Riso.

Chairman

H. Bernard Lynch

Peter A. Benoliel

President and Chief Executive Officer

Chairman

The First National Bank of Wyoming

Quaker Chemical Corp.

Wyoming, DE

Conshohocken, PA
Samuel A. McCullough

Deputy Chairperson

Chairman and Chief Executive Officer

Jane G. Pepper

Meridian Bancorp, Inc.

President

Reading, PA

The Pennsylvania Horticultural Society

Philadelphia, PA

James M. Mead

President and Chief Executive Officer

James A. Hagen

Capital Blue Cross

President and Chief Executive Officer

Harrisburg, PA

Consolidated Rail Corp. (CONRA1L)

Philadelphia, PA

Gary F. Simmerman

President and Chief Executive Officer

David W. Huggins

United Jersey Bank/South, N.A.

President and Chief Executive Officer

Cherry Hill, NJ

RMS Technologies, Inc.
Marlton, NJ

Donald J. Kennedy
Business Manager

International Brotherhood of
Electrical Workers Local Union #269

Trenton, NJ

The Federal Reserve Bank of Philadelphia

17

Officers
N 1992, THE FOLLOWING CHANGES WERE MADE IN OUR SUPERVISION AND REGULATION

I

DEPARTMENT: STEPHEN M. HOFFMAN WAS NAMED VICE PRESIDENT RESPONSIBLE FOR

INTERNATIONAL EXAMINATIONS, AUTOMATION AND SURVEILLANCE AND SUPPORT, AND MICHAEL E.
COLLINS BECAME VICE PRESIDENT IN CHARGE OF EXAMINATION PROCESSING AND QUALITY CONTROL,

Enforcement

Credit Discount.

and

John

J.

Diebel was promoted

President of International Examinations-, John

V.

to

Assistant Vice

Heelan was appointed International

Examinations Officer and Joan M. Immel became Examinations Review Officer. Thomas L.

Tweedale was

Eileen

p.

named

Assistant Vice President of the Surveillance and Support Unit, and

Adezio was named Assistant Vice President of the Enforcement Section.

In

our

Check Operations Department, D. Blake Prichard

was appointed

Senior

VICE PRESIDENT; KEVIN J. MCCABE WAS NAMED ASSISTANT VICE PRESIDENT AND HENRY T. KERN

WAS PROMOTED TO ASSISTANT VICE PRESIDENT IN CHARGE OF CHECK ADJUSTMENTS AND RETURN

Items.

In other

official changes,

Jeanette M. Paladino

of the

Legal Department was

PROMOTED TO ASSISTANT COUNSEL.

In

changes of official assignment.

Senior Vice President Peter M. DiPlacido

ASSUMED RESPONSIBILITY FOR THE GENERAL ADMINISTRATIVE SERVICES DEPARTMENT AND JOHN

Shafer

was named

the

Treasury Direct Operations Officer,

Bank's Controller.

Annie R.

Assistant Vice President

Ward was

named

Camille

Ochman assumed responsibility for the Savings Bond Division in the Fiscal

M.

Department.

18

Vice President of Accounting and

B.

The Federal Reserve Bank of Philadelphia

and

Edward G. Boehne
President
William H. Stone, Jr.
First Vice President
Donald F. Doros
Executive Vice President

Edward J. Coia
Senior Vice President

Thomas K. Desch
Senior Vice President
and Lending Officer

Donald J. McAneny
Vice President and
General Auditor

Louis N. Sanfelice
Vice President
John B. Shaffer
Vice President

Milissa M. Tadeo
Vice President

Mary M. Labaree
Assistant General Auditor
Thomas P. Lambinus
Assistant Vice President
Kevin J. McCabe
Assistant Vice President

Joseph L. McCann
Administrative Services Officer

Herbert E. Taylor
Vice President and Secretary

Alice J. Menzano
Disaster-Recovery Planning
and Quality Assurance Officer

Vish P. Viswanathan
Deputy Check Product
Manager

Loretta J. Mester
Research Officer
and Economist

Richard W. Lang
Senior Vice President and
Director of Research

Eileen P. Adezio
Assistant Vice President

Edward Morrison
Systems Development Officer

Ronald B. Lankford
Senior Vice President

John G. Bell
Research Officer

Camille M. Ochman
Assistant Vice President

D. Blake Prichard
Senior Vice President

Gerard A. Callanan
Assistant Vice President
and Planning Officer

Jeanette M. Paladino
Assistant Counsel

Peter M. DiPlacido
Senior Vice President

Robert J. Bucco
Vice President

J. Warren Bowman, Jr.
Vice President
Michael E. Collins
Vice President

Shirley L. Coker
Assistant Counsel

Theodore M. Crone
Assistant Vice President
and Economist

Robert A. Dobie
Vice President

Dean Croushore
Research Officer
and Economist

Patrick L. Donahue
Vice President

John J. Deibel
Assistant Vice President

William Evans, Jr.
Vice President

Robert N. Downes, Jr.
Assistant Vice President

Joanna H. Frodin
Vice President and
Check Product Manager

Frank E. Eisel, Jr.
Assistant Vice President

Patrick M. Regan
Assistant Vice President
Edward G. Rutizer
Assistant Vice President
Sherrill Shaffer
Assistant Vice President
and Economist

Richard A. Sheaffer
Assistant Vice President

Ronald R. Sheldon
Assistant Vice President
Marie Tkaczyk
Assistant Vice President
Sharon N. Tomlinson
Assistant Vice President

Stephen M. Hoffman
Vice President

John V. Heelan
International Examinations
Officer

Thomas L. Tweedale
Assistant Vice President

Jerry Katz
Vice President

Eugene E. Hendrzak
Assistant Vice President

Annie R. Ward
Operations Officer

Edward M. Mahon
Vice President and General
Counsel

Joan M. Immel
Examination Review Officer

Elizabeth S. Webb
Assistant Counsel

A run Jain
Planning Officer

Bernard M. Wennemer
Assistant Vice President

Henry T. Kern
Assistant Vice President

Anthony J. White
Financial Services Officer

Alan L. Kiel
Assistant Vice President

Richard A. Valente
Audit Officer

Frederick M. Manning
Vice President and
Community Affairs Officer
Stephen A. Meyer
Vice President and Associate
Director of Research

The Federal Reserve Bank of Philadelphia

19

Advisory Councils
he bank's four advisory councils include representatives from many of the

T

Third District’s leading industries. The meetings between

members of the

COUNCILS AND THE BANK'S SENIOR OFFICERS PROVIDE A VENUE FOR THE EXCHANGE OF IMPORTANT
INFORMATION ABOUT LOCAL BUSINESS AND THE ECONOMY.

THE 1992 MEMBERS OF THE ADVISORY

COUNCILS ARE LISTED BELOW.

Small Business/Agriculture Advisory Council

Credit Union Advisory Council

Chairman
Charles C. Bylone
Vineland Cooperative Produce Auction
Vineland, NJ

Chairman
Robert H. Edmondson
Atlantic Employees FCU
Media, PA

Deputy Chairperson
Lozelle DeLuz
DeLuz Management
Wilmington, DE

Deputy Chairman
Anthony LaRosa
Police and Fire FCU
Philadelphia, PA

Raymond L. Blew, Jr.
Centerton Nurseries
Bridgeton, NJ

Elisa P. Alexeeve
Trenton Auto Workers FCU
Trenton, NJ

Donald Clark
Clark Seed Company
Kenton, DE

David Baker
York Educational FCU
York, PA

John L. Coates
Tri-County Hardware
Berwick, PA

Martin J. Banecker
Campbell Employees FCU
Camden, NJ

C. William Haines
Larchmont Farms
Mount Laurel, NJ

Susan Bicking
Mobil 1167 FCU
Paulsboro, NJ

Allan Hawkins
Hawkins Cleaning Service
Philadelphia, PA

Linda Blattenberger
Capital Health Systems CU
Harrisburg, PA

Eleanor Marquisee
Arden Films & Video
Wilmington, DE

Linda Fischer
Barrington FCU
Barrington, NJ

William J. Oyler
Oyler's Farm
Biglerville, PA
Charles Patitucci
Patitucci Agency
Bridgeton, NJ

John C. Simms, VMD
Burnt Mill Veterinary Center
Shippensburg, PA
Larry R. Weaver
Weaverland Valley Farms
New Holland, PA

20

The Federal Reserve Bank of Philadelphia

Christine M. Kaczmarczvk
DEXSTA FCU
Wilmington, DE

Shirlee Nicolino
Merck Sharp & Dohme, FCU
West Point, PA

JoAnne Simpson
Chryco Newark FCU
Newark, DE
Thomas Swierzv
Smith Kline Employees FCU
Philadelphia, PA

Community Bank Advisory Council

Thrift Institution Advisory Council

Chairperson
Jane C. Diebert
Schuylkill Haven Trust Co.
Schuylkill Haven, PA

Chairman
Jack W. Shader, Sr.
Harris Savings Bank
Harrisburg, PA

Deputy Chairman
Ronald C. Brown
The Yardville National Bank
Yardville, NJ

Deputy Chairman
Edward J. Molnar
Harleysville Savings Bank
Harleysville, PA

J. Gerald Bazewicz
The First National Bank of Berwick
Berwick, PA

Ronald IV. Bevan
Delaware Savings Bank, FSB
Wilmington, DE

Frederick W. Bisbee
First National Trust Bank
Sunbury, PA

Gregory DiPaolo
South Jersey Savings & Loan Association
Turnersville, NJ

Adolph F. Calovi
Sun National Bank
Medford, NJ

Carl F. Gregory
Third Federal Savings & Loan
Philadelphia, PA

Joseph H. Doble
Farmers Bank of Mullica Hill
Mullica Hill, NJ

John D. Hollenbach
First Savings Bank
Perkasie, PA

Paul H. Mylander
Delaware National Bank
Georgetown, DE

Herbert Hornsby
Cape Savings Bank, SLA
Cape May Court House, NJ

John H. O'Neill
Bank of Delaware Valley
Fairless Hills, PA

Bruce R. Hostler
Reliance Savings Association
Altoona, PA

Melvin Pankuch
Blue Ball National Bank
Blue Ball, PA

William H. Kiick
First Federal Savings Bank
Hanover, PA

Harold L. Slatcher
County Bank
Rehoboth Beach, DE

Ellen Ann Roberts
First Financial Savings Bank PASA
Downingtown, PA

Harry W. Van Sciver
Burlington County Bank
Burlington, NJ

Patricia A. Saunders
Morton Savings & Loan Association
Morton, PA

Ray L. Wolfe
Fanners Trust Co.
Carlisle, PA

Joseph J. Tyron
Hatboro Federal Savings
Hatboro, PA

The Federal Reserve Bank of Philadelphia

21

STATEMENT OF CONDITION

12/31/92

12/31/91

$347,000,000
303,000,000
23,521,894

$318,000,000
319,000,000
39,844,938

591,880,000
164,746,239
8,979,356,206

159,714,271
7,041,384,541,

ASSETS
Gold certificate account
Special drawing rights certificates
Other cash - coin

Loans and securities:

Discounts and advances
Federal agency obligations
United States government securities

Total loans and securities

Other assets:

Cash items in process of collection
Bank premises-net
Operating equipment-net
Foreign currencies
All other

Interdistrict
settlement account

45,290,000

$9,735,982,445

$7,246,388,812

538,169,101
45,093,745
19,248,779
851,937,342
179,412,854

592,229,058
44,271,308
16,706,557
1,312,235,000
128,912,896

2,183,258,569

3,171,568,486^

Total assets

$14,226,624,729

$13,189,157,055,

Federal reserve notes
Depository institutions' reserves
Foreign
All other

$11,341,210,181
2,207,168,223
5,504,400
8,052,813*

$10,872,446,355
1,469,840,995
7,125,000
73,648,540;

$2,220,725,436

$1,550,614,535

368,035,076

489,958,715

LIABILITIES AND
CAPITAL ACCOUNTS

Note liabilities:
Deposits:

Total deposits

Other liabilities:

Deferred availability cash items
All other

$12,978,956,055

Capital paid in

117,317,900

105,100.500

Surplus

117,317,900

105,100,500,

$14,226,624,729

$13,189,157,05^

Total liabilities and capital

* Includes payable due to Treasury.

22

65,936,450,

$13,991,988,929

Total liabilities

Capital accounts:

62,018,236

The Federal Reserve Bank of Philadelphia

EARNINGS AND EXPENSES

12/31/92

12/31/91

From U.S. government securities
From discounts, advances and
miscellaneous sources
From services to depository institutions

$504,283,274

$522,542,526

85,651,898
41,061,467

119,510,419
37,861,697

Total current earnings

$630,996,639

$679,914,642

70,808,127
19,217,932

65,253,442
13,986,254

$90,026,059

$79,239,696

$540,970,580

$600,674,946

3,494,576
0
9,953

3,632,617
15,218,772
3,603

Total additions

$3,504,529

$18,854,992

Loss on foreign currency transactions
Miscellaneous non/operating expenses
Assessment by the Board of Governors:
Board expenditures
Federal Reserve currency

42,716,899
1,468,155*

Currrent Earnings:

Net expenses:

Operating expenses
(after deducting reimbursable expenses)

Cost of earnings credits
Total net expenses

Current net earnings

Additions to current

net earnings:

Deductions from current

net earnings:

Gain on sales of government securities
Gain on foreign currency transactions
Miscellaneous non/operating income

5,135,700
10,548,662

4,818,600
6.912,056

$59,869,416

$23,684,571

($56,364,887)

($4,829,579)

Net earnings (before payment to U.S. Treasury)

$484,605,693

$595,845,367

Dividends paid
Paid to U.S. Treasury (interest on FR notes)
Retained to equate surplus to capital

$6,856,095
465,532,198
12,217,400

$6,134,888
599,783,979
(10,073,500)

$484,605,693

$595,845,367

Total deductions
Net additions

Distribution of earnings:

0
11.953,915 =

Net earnings

(deductions)

nonreimbursed Treasury services.

The Federal Reserve Bank of Philadelphia

23

OPERATING STATISTICS

1992

1992

1991

1991

Volume

Dollar Value

Volume

Dollar Value~

5.3 million
transfers

$16.9 trillion

5.0 million
transfers

$16.7 trillion

37.3 million
items

$52.2 billion

35.0 million

$52.2 billion

111.2 million

$313.2 billion

SERVICES TO
DEPOSITORY INSTITUTIONS

Wire transfers of funds

Government

ACH

Commercial

items

items
Check processing

U.S. Government

22.6 million

Cash operations

Currency received
and counted
Coin received
and counted

Loans to depository institutions

$287.1 billion

items

$27.9 billion

checks
All others

90.8 million

23.9 million

$28.3 billion

checks
$1.2

trillion

SI 1.5

billion

1.2 billion
checks

$1.4 trillion

1.0 billion

$13.1 billion

1.0 billion
notes

$174 million

150 thousand
bags

$103 milW

1247

$2.7 billion

1.046

$2.5 bilW

987.9 thousand

$14.3 trillion

956.6 thousand
transfers

$914 million

4.4 million

checks

notes

126 thousand

1.1 billion

bags

SERVICES TO U.S. TREASURY
Electronic book
entry transfers
Savings bonds issued

transfers
5.2 million

bonds
Food stamps redeemed

162.4 million
coupons

24

The Federal Reserve Bank of Philadelphia

$13.2 trilH^

$444 mill'0*

bonds
$813 million

130.9 million
coupons

$655


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102