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2 w w w. p h i l . f r b . o r g President’s Letter 5 Monetary Policy 9 Supervision, Regulation, and Credit 11 Payments Services 14 Central Bank 18 Operating Statistics 19 Directors 20 Officers 22 Advisory Councils 24 Financial Reports Insert Federal Reserve Bank of Philadelphia ANNUAL REPORT 2000 3 President Anthony M. Santomero, Ph.D. (left) and First Vice President William H. Stone 4 w w w. p h i l . f r b . o r g President’s Letter With this Annual Report, we at the Federal Reserve Bank of Philadelphia would like to reintroduce ourselves to the broad business community of the Third Federal Reserve District. Many of you know us well, whether you are bankers, business leaders, students of economic policy, or individuals who have had contact with us through our community and public affairs activities. Others of you may have only a passing familiarity, and some may not know the Philadelphia Fed at all. Yet, we interact with each of you in the tiniest details of daily life. Each ATM withdrawal, every check written, whenever change is made, the Federal Reserve helps to complete the transaction. We are the largest financial institution in the region, and our 1300 employees play a fundamental role in the region’s economic life. We want people to better understand what the Federal Reserve is and what it does. Toward this end, we highlight our mission and functions in this year’s Annual Report. Let’s begin at the beginning… The Nation’s Central Bank As the central bank of the United States, the Federal Reserve System has one main purpose: to cultivate a financial environment conducive to the greatest sustainable economic growth and employment. The 12 Federal Reserve Banks located throughout the country, under the direction of the Federal Reserve Board in Washington, D.C., pursue activities in three areas: they establish and implement national monetary policy; they supervise and regulate banking and other financial services; and they ensure the efficient operation of the payments system. F Fe d e de re ar al l R Re se es re vr ve e B Ba an nk k o of f P Ph hi li al ad de le pl ph hi ai a AANNNNUUAAL L R RE EP POOR RT T 2 20 0 0 0 5 5 The area served by the Philadelphia Fed includes most of Pennsylvania, the southern half of New Jersey, and all of Delaware. Geographically, it is one of the smallest Federal Reserve Districts, but it is also one of the most economically diverse, containing metropolitan centers, high-tech areas, agricultural regions, and resorts. Our Bank is the busiest single site in the Federal Reserve System. It processes more checks than any other single Federal Reserve Bank site and is the headquarters of the System’s national cash distribution network. The Philadelphia Fed is also becoming a center of knowledge and expertise on payment cards, the most rapidly evolving mode of payment. In the fall of 2000, we established the Payment Cards Center to explore the impact of credit cards, debit cards, smart cards, and stored-value cards on the way people save, spend, and manage money. Extending the Expansion The national economic expansion that began in 1991 continued in 2000, but a slowdown of growth that began in mid-year reminded us that we cannot take prosperity for granted. From 1995 to 1999, the expansion’s strongest years to date, inflation remained stable because productivity growth helped supply keep pace with demand, thanks to unprecedented technological development in computers and telecommunications. Will technology continue to develop at such a dramatic rate? How long can productivity increase so rapidly? These questions, along with the impact of higher oil prices and increased volatility in the stock market, demand concerted attention if we are to preserve the prosperity Americans have enjoyed for almost 10 years. 6 w w w. p h i l . f r b . o r g This unprecedented period of national prosperity has brought steady economic growth and low unemployment to our District. Activity has expanded across the board, particularly in such key sectors as business services, construction, and tourism. We continue to build on our reputation as a center for pharmaceutical research and production, health care, and higher education. And we are experiencing encouraging growth in bioengineering, communications, computers, and Internet companies. But, despite all of this good news, the Third District is not a high-growth area. Ours is a mature economy that relies heavily on strong, steady growth in the national economy to keep us moving ahead. Thus, the Fed’s monetary policy goal of fostering sustained economic growth really hits home for us. Challenges of Financial Convergence But monetary policy is not our only challenge. Within our District the Bank is responsible for the supervision and regulation of banking institutions that are themselves going through substantial change. Once-separate industries, such as banking, securities, and insurance, are being transformed into a broad financial services industry. The Financial Modernization Act (Gramm-Leach-Bliley) formalized the convergence that has taken place over the last 10 years. Supervision of these broad financial holding companies, as the resulting entities are now called, is the responsibility of the Federal Reserve, which has been given supervisory oversight for bank holding companies, including those that operate as financial holding companies. Federal Reserve Bank of Philadelphia Federal Reserve Bank of Philadelphia ANNUAL REPORT 2000 ANNUAL REPORT 2000 7 7 Convergence is not inherently good or bad for the financial industry, but it does hold the potential for considerable risk. The variety of financial products, the size and interdependence of companies resulting from mergers and acquisitions, and increased volatility due to faster technology and communications, all of these demand vigilant risk management. We must also recognize and respond to the concerns of individual consumers of financial products. They worry about keeping sensitive personal information private, about their vulnerability to predatory lending practices, and about whether ever-larger financial institutions will be able to remain connected to local communities. These, too, are among the challenges that our combined industry faces and that we as umbrella supervisor must address. In my first year as president of the Philadelphia Fed, I have been mindful of the challenges faced by our District, the financial industry, and the national economy. I intend to ensure that the Federal Reserve Bank of Philadelphia continues to contribute to the financial and economic vitality of our region and the nation. To that end, we will pursue our mission vigorously: to contribute to the nation’s monetary policy, ensure a sound and accessible banking system, and maintain public confidence in all forms of payment. Anthony M. Santomero President 8 8 w w w. p h i l . f r b . o r g w w w. p h i l . f r b . o r g Monetary Policy Setting the Stage for Growth Monetary policy is the primary tool used by the Federal Reserve to create a financial environment for sustained economic growth. Policy is set nationally, through the Federal Open Market Committee (FOMC). All 12 Federal Reserve District presidents participate in FOMC discussions, but they vote on a rotating basis. (Philadelphia’s next turn will come in 2002.) The FOMC meets eight times a year in Washington and consists of 12 voting members: seven from the Board of Governors and a rotating group of five Federal Reserve Bank presidents. The FOMC influences liquidity in the economy by setting the federal funds rate, the interest rate at which banks borrow and lend reserves to one another. This rate affects the availability of money and credit in the economy. The availability of money and credit influences spending and, in turn, demand for goods and services. The Fed’s goal is to keep growth of demand for goods and services in line with that of the economy’s production capacity, which keeps inflation under control. So, by increasing or decreasing banks’ liquidity through cash reserves, the Fed initiates a sequence of events that, ideally, keeps inflation in check and permits economic expansion. Executive Vice President Richard W. Lang, shown at the Independence Mall entrance to the Philadelphia Fed, oversees the Bank’s research and external outreach activities. Federal Reserve Bank of Philadelphia ANNUAL REPORT 2000 99 The discount rate, the interest paid by banks borrowing directly from the Fed, is set by the Board of Governors in Washington and the boards of directors of each Federal Reserve Bank. Every two weeks, Reserve Bank boards meet to discuss national and regional economic conditions and vote on whether to adjust the discount rate. Their recommendations are given to the Board of Governors, and if the situation warrants, the Governors approve a discount rate change for Federal Reserve Banks. The factual foundation for policy discussions is provided by the Research Department. In Philadelphia, regional and national economic data are collected and analyzed to assess underlying trends in the Third District, so that the impact of economic cycles in this area can be better understood. Staff economists regularly brief President Santomero and the Bank’s board of directors on national and regional economic developments. Information gathered and analyzed by the Philadelphia Fed is made available to the rest of the Federal Reserve System, as well as to businesses, educators, the media, and the general public. The Bank’s monthly Business Outlook Survey, taken among Third District manufacturing firms, is considered by financial analysts to be an early barometer of changing conditions in the national economy. Results of this survey, as well as the Research Department’s other surveys and analyses, are available at the Philadelphia Fed’s web site: www.phil.frb.org. By contributing local perspective to the national discussion of monetary policy, conducting ongoing research into regional economic trends, and keeping in close touch with the people who live, work, and do business in the Third District, the Philadelphia Fed contributes significantly to the creation of a financial environment conducive to economic growth. 10 w w w . p h i l . f r b . o r g Supervision, Regulation, and Credit Managing Risk Worldwide banking trends are evident in the Third Federal Reserve District, which includes central and eastern Pennsylvania, southern New Jersey, and all of Delaware. Here, as they have across the country, financial services have converged as regulatory barriers have dissolved. Depository institutions have consolidated and have expanded their functions by merging with providers of uninsured financial products. In managing personal finances, individuals have more freedom, more information, more options, more decisions, and, often, more confusion than ever before. The Federal Reserve is charged with maintaining a sound and responsive banking system, working in cooperation with other federal and state banking agencies to ensure that laws are followed, risk is managed effectively, and responsive relationships are maintained with communities and other constituencies. As the financial services landscape has changed, however, the Fed’s approach to supervision has changed too, most significantly in the past year. The Financial Modernization Act of 1999 enabled bank holding companies to affiliate with securities and insurance firms and also established a new supervisory structure. Each financial function is directly supervised: banking Senior Vice President and Lending Officer Michael E. Collins leads the Supervision, Regulation, and Credit Department at the Philadelphia Fed. The department helps to maintain public confidence in the banking system by ensuring that laws are followed and risk is managed. Recent legislation extended the Fed’s supervisory role to securities and insurance. Federal Reserve Bank of Philadelphia 11 A N N U A L R E P O R T 2 0 0 0 11 by the Federal Reserve and other federal and state authorities, securities by the Securities and Exchange Commission, and insurance by state-level commissioners. In addition to serving as a primary supervisor for banking, the Federal Reserve is required, under the new framework, to coordinate activities with the appropriate supervisors of financial holding companies’ banking, securities, and insurance subsidiaries. The Philadelphia Fed’s supervisory and regulatory functions reside in the Supervision, Regulation, and Credit Department (SRC). Supervision entails the continuous oversight and examination of banking organizations to assess their condition and compliance with pertinent laws. Regulation involves formulating guidelines for bank structure and conduct. Credit refers to the department’s administration of the credit discount window. The Fed provides short-term liquidity to depository institutions in times of unexpected demand for cash reserves, thus serving as a buffer against unanticipated fluctuation. In addition, when an institution experiences difficulty, the Fed is the lender of last resort. The Federal Reserve directly supervises bank and financial holding companies, state-chartered banks that are Fed members, and Edge Act corporations, which are formed by domestic banks to engage in international banking activities in the United States and to make overseas investments in foreign organizations. With regard to other banking institutions, the Fed shares supervisory duties with the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision, and state and foreign authorities. As a bank supervisor, the Fed approves the formation of new institutions; collects financial statistics on banks’ condition; examines bank holding companies, banks, and many of their nonbanking subsidiaries; and takes remedial action when necessary. In the Third District, the Philadelphia Fed 12 w w w . p h i l . f r b . o r g supervises 150 banking organizations headquartered in the District, including 20 financial holding companies. Because Delaware has a high concentration of credit card banks, and many major banks have overseas operations in the District, the Philadelphia Fed’s supervision team has become particularly skilled in these areas, expertise that is shared with other examination teams across the Federal Reserve System. As overall supervisor of financial services, the Fed will take the same approach it does in its primary regulation activities: it will emphasize fairness, promptness, and consistency, to promote confidence among institutions and the public. It recognizes risk as an inherent part of financial dealings and evaluates institutions’ condition by assessing their ability to manage risk. Stress-testing balance sheets is one way the Fed makes this assessment. Such testing is particularly important with the integration of insured and uninsured activities within institutions and with the increasingly dense technological and international web in which financial transactions occur. Given the evolution of the financial services industry into large and small entities, the Fed recognizes the need to tailor examination activities to the size and complexity of an institution. The Fed will continue to be proactive as a supervisor by continuously enhancing information gathering, analysis, coordination, and communication. Sometimes the best way to ensure that financial services are accessible to all segments of the community is to simply bring together the people involved. The Fed’s Community and Consumer Affairs Department serves as a regular contact point for financial institutions, businesses, and community groups. The Bank often sponsors meetings on emerging financial issues, development opportunities, and needs for concerned groups. In 2000, topics included credit options for minority entrepreneurs and strategies to combat predatory lending. Federal Reserve Bank of Philadelphia 13 A N N U A L R E P O R T 2 0 0 0 13 Payments Services Supporting Everyday Commerce Open your wallet, your checkbook, or your online financial account and the Fed is there. Almost imperceptibly, the Federal Reserve is involved in the millions of everyday monetary transactions in the American economy. The need to ensure that payment transactions are made efficiently and securely was one of the reasons behind the creation of the central bank in 1913. As facilitator of the payments system, the Federal Reserve reliably moves funds among individuals, businesses, banks, and the government. Regardless of the specific exchange, people take payment transactions for granted. They expect money to be universally accepted, checks and credit cards to be honored, and electronic funds to be as good as cash. And they are. It all happens without incident because the Fed works behind the scenes Executive Vice President Donald F. Doros, shown here outside a currency counting room, oversees cash and wire services at the Bank. In the counting room, currency received from depository institutions is counted, unfit bills are removed and shredded, and fit bills are packaged with new currency for recirculation. 14 w w w . p h i l . f r b . o r g supplying banks and thrift institutions with coin and currency, clearing checks, and transferring funds among them electronically. Our currency is accepted not only because of the strength and stability of the American economy but also because the Fed, in cooperation with the U.S. Treasury, guarantees its value. When the Fed receives excess cash The most visible changes in cash during 2000 were the redesigned $5 and $10 bills, which joined the previously redesigned $20, and the ongoing series of commemorative state quarters. from banks, worn and counterfeit tender is pulled from circulation, and fit notes are packaged for redistribution. The Fed also supports the Treasury in redesigning currency to enhance its security. In 2000, the introduction of new five- and ten-dollar bills completed the latest currency redesign. As public demand for cash fluctuates throughout the year, the Fed is responsible for providing depository institutions with needed The Philadelphia Fed receives between 8 and 9 million notes a day from depository institutions. About 80 percent of these are $1 and $20 bills. supplies of new and fit bills. The Philadelphia Fed is a busy cash processing center, preparing bundles of currency for destinations up and down the East Coast. In 2000, a total of $37 billion in cash and coin was recirculated by the Philadelphia Fed. Beyond meeting the cash needs in its own vicinity, the Philadelphia Fed serves as the headquarters of the Federal Reserve’s national cash distribution network. Federal Reserve Bank of Philadelphia ANNUAL REPORT 2000 15 At the Philadelphia Fed, 250 Check Services employees work on three shifts in functions that include Receiving, Data Preparation, High-Speed Sort, Low-Speed Sort, Shipping, Settlement, and Adjustment. Of the 65 billion checks written each year, about a quarter are cleared through Federal Reserve Banks. Even when banks clear checks themselves, they settle debits and credits through their reserve accounts at the Fed. Thanks to its business with the large banks’ operations centers in Delaware, the Philadelphia Fed is the busiest check processor in the Federal Reserve System, clearing as many as five to seven million checks on a peak night. In 2000, this amounted to 1.3 billion checks worth $1.9 trillion. The Fed first transacted electronic payments in 1918, between banks, through the Fedwire network. In the early 1970s, the Fed pioneered the use of electronics for smaller payments, such as payrolls, through its automated clearinghouse, Fed ACH. Today, as the payments system increasingly relies on the speed and economy of electronic transfers of funds, the Federal Reserve continues to be a major processor of electronic payments, annually handling a half-trillion dollars through its automated clearinghouse and almost $23 trillion in electronic funds transfers – everything from direct Social Security deposits to multimillion-dollar transactions. 16 16 w w w . p h i l . f r b . o r g Late in 2000, the Philadelphia Fed established a Payment Cards Center to study the economic impact of credit cards, debit cards, smart cards, and stored-value cards. The Center will bring together academic researchers, industry experts, and public policymakers to examine how these methods of payment affect wholesale and retail commerce and to explore their potential. Philadelphia is a natural setting for the Payment Cards Center because some of the nation’s largest issuers of these payment vehicles are headquartered in Delaware. Demand for all forms of payment – cash, check, and electronic – is rising, thanks to a growing population, an expanding economy, and increasing opportunities to spend. Still, the payments system of the future will rely increasingly on faster, cheaper electronic transfers of funds, and the Federal Reserve is committed to the technological innovation that will make this shift possible. At the same time, the Fed remains committed to increasing the efficiency and safety of all forms of payment, so that whatever method people choose, they can remain confident that their transactions will be completed uneventfully. Senior Vice President D. Blake Prichard directs retail payment operations at the Philadelphia Federal Reserve, the busiest single check-processing site in the Fed System. F Fe d e de re ar al l R Re se es re vr ve e B Ba an nk k o of f P Ph hi li al ad de le pl ph hi ai a AANNNNUUAAL L R RE EP POOR RT T 2 20 00 00 0 1717 Central Bank Balancing Continuity and Change Providing the money and credit to support a healthy pace of economic activity, ensuring that banks prudently manage risk, facilitating day-to-day transactions — all these activities are part of the Fed’s mission to create a financial environment that fosters maximum growth, full employment, and stable prices. The Federal Reserve Bank of Philadelphia has an important role to play in the successful accomplishment of the Fed’s mission. We represent our District in the Fed’s monetary policy deliberations. We work with our fellow regulatory agencies to oversee the banking institutions that operate here. And we move money — in cash, check, or electronic form — to effect transactions here, across the nation, and around the world. The year 2000 was a busy one at the Philadelphia Fed, and 2001 is off to a fast start as well. Last year also marked the passage to a new century — a time for weighing the forces of continuity and change. Recognizing the power of each is important for succeeding as the nation’s central bank. Continuity of purpose and commitment to high-quality service are crucial for maintaining public confidence in the nation’s economic and financial system. At the same time, responsiveness to changes in business climate, in technology, and in the delivery of financial services is vital to providing people with the full measure of economic progress and rising standards of living. So we at the Federal Reserve Bank of Philadelphia continue to move ahead, contributing to the financial and economic vitality of the region and the nation in these changing times. 18 w w w . p h i l . f r b . o r g Operating Statistics The trend toward greater use of electronic payments is reflected in the growth of our commercial and government ACH business volumes in 2000. For U.S. government payments, direct deposit is displacing payment by check, and the number of government checks we process continued to decline. The Bank continues to be a major processor of cash in the Federal Reserve System. Two new currency counting rooms will be added in 2001 to handle the increased volume. The substantial decline in food coupons processed reflects state governments’ shift from paper coupons to electronic debit cards as a means of distributing benefits. 2000 Volume 2000 Dollar Value 1999 Volume 1999 Dollar Value SERVICES TO DEPOSITORY INSTITUTIONS Wire Transfer of Funds 7.7 million transfers $25.3 trillion 7.7 million transfers $22.7 trillion ACH: Government Commercial 268.7 million items 122.4 million items $335.4 billion $311.2 billion 245.2 million 109.3 million $300.4 billion $268.5 billion Check processing: U.S. Government All other 31.1 million checks 1,314.5 million checks $32.5 billion $1,913.4 billion 32.3 million 1,124.4 million $33.7 billion $1,723.6 billion Cash operations: Currency processed Coin processed 1,659.0 million notes 19.7 thousand bags $35.6 billion $9.6 million 1,575.8 million 21.9 thousand bags $30.1 billion $10.3 million 183 loans $545 million 226 loans $786 million 47,000 transfers $138 million 40,500 transfers $241 million 6.3 million coupons $31.6 million 18.6 million coupons $99.0 million Loans to depository institutionsAdjustment and seasonal credit SERVICES TO U.S. TREASURY Electronic book-entry transfers Food coupons processed Federal Reserve Bank of Philadelphia ANNUAL REPORT 2000 19 Directors From left Chairman Joan Carter, President & COO, UM Holdings Ltd., Haddonfield, NJ Deputy Chairman Charisse R. Lillie, Partner, Ballard Spahr Andrews & Ingersoll, Philadelphia, PA From left Rufus A. Fulton, Jr., Chairman, President & CEO, Fulton Financial Corporation, Lancaster, PA Robert E. Chappell, Chairman & CEO, The Penn Mutual Life Insurance Co., Horsham, PA Howard E. Cosgrove, Chairman & CEO, Conectiv, Wilmington, DE 20 w w w . p h i l . f r b . o r g From left Harry Elwell, III, President & CEO, First National Bank of Absecon, Absecon, NJ Robert D. Burris, President & CEO, Burris Foods, Inc., Milford, DE From left Frank Kaminski, Jr., Chairman, President & CEO, Atlantic Central Bankers Bank, Camp Hill, PA Glenn A. Schaeffer, President, Pennsylvania Building and Construction Trades Council, Harrisburg, PA Federal Reserve Bank of Philadelphia ANNUAL REPORT 2000 21 Officers In 2000, the Board appointed Dr. Anthony M. Santomero to the position of president of the Bank. Several officers received promotions in 2000: Richard W. Lang to Executive Vice President; Loretta J. Mester to Senior Vice President and Director of Research; John Bell and Reed Raymond to Vice President; and Donna Franco and Elisabeth Videira-Dzeng to Assistant Vice President. In addition, four employees were promoted to the official staff: Mitchell Berlin to Research Officer; Stephen G. Hart to Marketing and Service Quality Officer; John P. Kelly to Check Adjustments Officer; and Anthony Scafide, Jr. to Wholesale Payments Services Officer. Peter P. Burns joined the Bank as Vice President and Director of the new Payment Cards Center. Anthony M. Santomero President Milissa M. Tadeo Senior Vice President William H. Stone, Jr. First Vice President John G. Bell Vice President Donald F. Doros Executive Vice President Robert J. Bucco Vice President Richard W. Lang Executive Vice President Peter P. Burns Vice President and Director, Payment Cards Center William A. Bonifield, Jr. Senior Vice President and Manager Cash/Fiscal Product Office Michael E. Collins Senior Vice President and Lending Officer Ronald B. Lankford Senior Vice President Loretta J. Mester Senior Vice President and Director of Research D. Blake Prichard Senior Vice President 22 w w w . p h i l . f r b . o r g Gerard A. Callanan Vice President Theodore M. Crone Vice President and Economist John J. Deibel Vice President Patrick L. Donahue Vice President William Evans, Jr. Vice President Joanna H. Frodin Vice President Shirley L. Coker Assistant Vice President and Counsel Edward Morrison Operations Officer Arun K. Jain Vice President Dean Croushore Assistant Vice President and Economist Camille M. Ochman Assistant Vice President Jerry Katz Vice President Donna L. Franco Assistant Vice President and Assistant Secretary Henry T. Kern Vice President Edward M. Mahon Vice President and General Counsel Stephen G. Hart Marketing and Service Quality Officer Stephen A. Meyer Vice President and Senior Economic Policy Advisor John V. Heelan International Examinations Officer Mary DeHaven Myers Vice President and Community Affairs Officer Mary Ann Hood Assistant Vice President A. Reed Raymond, III Vice President Howard M. James, Jr. Assistant Vice President Louis N. Sanfelice Vice President John P. Kelly Check Adjustment Officer John B. Shaffer Vice President and General Auditor Herbert E. Taylor Vice President and Secretary Vish P. Viswanathan Vice President and Discount Officer Eileen P. Adezio Assistant Vice President Mitchell Berlin Research Officer William L. Gaunt Assistant Vice President Linda K. Kirson Office Automation Support Officer Thomas P. Lambinus Assistant Vice President Joseph L. McCann Administrative Services Officer and Security Officer Alice J. Menzano Assistant Vice President and Cash/Fiscal Product Officer Federal Reserve Bank of Philadelphia Patrick M. Regan Assistant Vice President and Information Security Officer Anthony Scafide, Jr. Wholesale Payments Services Officer Richard A. Sheaffer Assistant Vice President Ronald R. Sheldon Assistant Vice President Stephen J. Smith Assistant Counsel Marie Tkaczyk Assistant Vice President Sharon N. Tomlinson Assistant Vice President and Assistant Secretary Richard A. Valente Assistant General Auditor Elisabeth C. Videira-Dzeng Assistant Vice President Bernard M. Wennemer Assistant Vice President Anthony J. White Financial Services Officer Michael P. Zamulinsky Assistant Vice President ANNUAL REPORT 2000 23 Advisory Councils Community Bank Council (from left): Julie Wong, Robert H. King, Kenneth R. Shoemaker, Stephen C. Nelson, Thomas J. Bisko, John G. Gerlach, Thomas W. Cook, Thomas A. Vento COMMUNITY BANK COUNCIL Chairman Stephen C. Nelson President & CEO Artisans’ Bank Wilmington, DE Deputy Chairman Kenneth R. Shoemaker President & CEO Orrstown Bank Shippensburg, PA Theodore D. Bessler President & CEO Shore Community Bank Toms River, NJ 24 w w w . p h i l . f r b . o r g Thomas J. Bisko President The Quakertown National Bank Quakertown, PA Daniel L. Price, Sr. President & CEO Century Savings Bank Bridgeton, NJ Thomas W. Cook Executive Vice President & CEO The Bank of Landisburg Landisburg, PA Thomas A. Vento President & CEO Prudential Savings Bank, PASA Philadelphia, PA John G. Gerlach President/CEO & Director Pocono Community Bank Stroudsburg, PA Julie Wong President & CEO United Heritage Bank Edison, NJ Robert H. King President Sterling Bank Mt. Laurel, NJ Credit Union Council (from left): Ignacio I. Morales, L. Edward Brzozowski, Anthony R. Hinds, David G. Keffer, John D. Buchinski, C. Kipp Stecher, Jo Ann Broderick, Dennis Flickinger CREDIT UNION COUNCIL Chairman John D. Buchinski President & CEO Wheatland FCU Lancaster, PA Deputy Chairman Lee T. MacMinn President/CEO Freedom CU Philadelphia, PA Jo Ann Broderick President First Commonwealth FCU Lehigh Valley, PA L. Edward Brzozowski President MON-OC FCU Toms River, NJ David G. Keffer CEO/Manager Cornerstone FCU Carlisle, PA Virginia M. Fifer CEO/Manager Atlantic City Electric Company Employees FCU Mays Landing, NJ Paul J. Ladd CEO/Manager Garden State FCU Moorestown, NJ Dennis Flickinger President & CEO First Capital FCU York, PA Anthony R. Hinds CEO, DPL FCU Newark, DE Federal Reserve Bank of Philadelphia Ignacio I. Morales Manager Borinquen FCU Philadelphia, PA C. Kipp Stecher President & CEO AmeriChoice FCU Mechanicsburg, PA ANNUAL REPORT 2000 25 Small Business and Agriculture Council (from left): Daniel R. Hawbaker, Dennis E. Duffy, Janis Herschkowitz, Thomas K. Leidy, Chloe R. Eichelberger, Warren B. Matthews, M.D., Sandra Holsonback, David J. Freschman, David C. Hileman SMALL BUSINESS AND AGRICULTURE COUNCIL Chairman Thomas K. Leidy President & Chairman Leidy’s Inc. Souderton, PA Deputy Chairman Janis Herschkowitz, President & CEO PRL, Inc. & Subsidiaries Cornwall, PA Cary S. Borish Co-President Marathon Grill Philadelphia, PA Peter Bylone Manager Vineland Produce Auction Vineland, NJ 26 w w w . p h i l . f r b . o r g Dennis E. Duffy President Duffy, Dolcy & McManus, Absecon, NJ David C. Hileman Owner Hilecrest Farms Tyrone, PA Chloe R. Eichelberger Owner, President & CEO Chloe Eichelberger Textiles, Inc. Middletown, PA Sandra Holsonback Director Lehigh University Small Business Development Center Bethlehem, PA David J. Freschman President Delaware Innovation Fund Wilmington, DE Daniel R. Hawbaker President Glenn O. Hawbaker, Inc. State College, PA Warren B. Matthews, M.D. President Wyncote Family Medicine Wyncote, PA Jay Windsor President Lakeside Greenhouses, Inc. Laurel, DE For additional copies, contact the Public Affairs Department, Federal Reserve Bank of Philadelphia, Ten Independence Mall, Philadelphia, PA 19106 or call (215) 574-6115 This annual report is also available on our web site at www.phil.frb.org. Federal Reserve Bank of Philadelphia ANNUAL REPORT 2000 27
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