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B U I L D I N G B R I D G E S TO C O M M U N I T Y D E V E L O P M E N T THE FEDERAL RESERVE BANK OF ST. LOUIS THE FEDERAL RESERVE BANK: The Link Between Lenders and the Community THE COMMUNITY AFFAIRS OFFICE AT THE FEDERAL RESERVE BANK OF ST.LOUIS FORGES PRODUCTIVE PARTNERSHIPS BETWEEN LENDERS AND THEIR COMMUNITIES THAT RESULT I N AFFORDABLE HOUSING A N D ECONOMICDEVELOPMENT THROUGHOUT T H E EIGHTH F E D E R A L RESERVE DISTRICT. P R E S I D E N T ' S f^he M E S S A G E Community Reinvestment Act, or CRA, has been controversial since Congress first passed it more than 16 years ago. Today, bank regulators like the Federal Reserve are debating how best to change the regulation implementing CRA so that it meets its objective — to ensure that financial institutions are extending credit throughout their communities. When it comes to CRA, the Federal Reserve plays two distinct roles: one very public, the other behind the scenes. Its public role in evaluating state member banks lending performance under CRA is, by now, well-known. Since 1981, the Fed has quietly played another role, one which has been quite effective: to act as a bridge, or liaison, between local bankers and community-based organizations. Its regional structure makes the Federal Reserve a natural to carry out this role. By putting to use the knowledge of local economic and banking conditions that each regional Reserve Bank gains in the normal course of business, the Fed can help ensure that community needs and lending opportunities are identified and that the interests of both lenders and communities are served. This approach is based on the theory that, if CRA is to succeed, both bankers and community groups must benefit fiom their alliances. And, to endure, these alliances must be based on mutual interest. Our Community Affairs Office works to promote that mutual interest. In the next few pages, we set out to explain how this office is "building bridges" throughout the Eighth Federal Reserve District. Before we begin, however, let me express my deepest appreciation for the service and contributions of the following directors who retired fiom the St. Louis and Branch boards in 1993: Ray U. Tanner and Janet M. Weakley, St. Louis; L. Dickson Flake, Little Rock; and Seymour B. Johnson, Thomas M. Garrott and Larry A. Watson, Memphis. THOMAS C . M E L Z E R PRESIDENT A N D C H I E F EXECUTIVE O F F I C E R B U I L D I N G ^^ B R I D G E S ome members of the community say the TO C O M M U N I T Y D E V E L O P M E N T Community premise of these laws was that bank charters conferred certain Reinvestment Act (CRA) is not a strong enough law to induce economic benefits and, in return, banks should provide certain banks to lend fairly to all segments of their communities. Others public benefits. One of these benefits is access to credit. say bankers have made great strides in providing credit to low- and In 1977, Congress passed CRA to reaffirm its position that moderate-income areas, and, given the risks they must take on bor- financial institutions have a continuing obligation to make loans to rowers' creditworthiness, they're doing the best they can. Moreover, all segments of their communities, including low- to moderate- they're spending too much time and money proving their efforts. income areas, provided such loans are consistent with the banks' As these issues are debated today, no one knows what the future safe and sound operation. This time, however, the responsibility for of CRA will bring. We do know, however, what the past 16 years of CRA compliance did not rest solely with banks: Congress also CRA have borne. In the Eighth Federal Reserve District (see map on charged federal banking regulators, including the Federal Reserve, back cover), community groups and with carrying out the objectives of CRA. bankers have worked together to form Specifically, the law instructs federal partnerships that go beyond CRA \ regulatory agencies to "encourage" banks compliance. And the St. Louis Fed has to serve their communities by evaluat- played an important role in forming ing lenders' reinvestment efforts and these partnerships by serving as a bridge considering such evaluations when between the community and lenders. reviewing merger applications or other How proposed changes in banking opera- IT ALL BEGAN The chronicle of CRA dates back tions, including at the bank holding to banking laws of the 1930s, which company level. At the same time, the asserted that financial institutions public was given the right to comment should serve the "convenience and on a bank's lending practices and to needs of their communities." The protest changes to a bank's structure. THE ST. LOUIS FED'S COMMUNITY AFFi E DISTRIBUTED ABOUT 3 , 0 0 0 EDUCATIONAL BOOKLETS IN 1 9 9 3 AND RESPONDED TO ALMOST 5 0 0 CALLS FOR INFORMATION OVER T H E PHONE. ITS " C O M M U N I T Y A F F A I R S " NEWSLETTER REACHES SOME 2 , 5 0 0 PEOPLE. ^ . . Ithough the spirit of this law has not changed over the years, its execution has. The lifting of state restrictions on interstate banking, unique credit needs. Second, such activities should concentrate on long-term strategies. which began in the early 1980s, led to a rush of merger applications. Since it was created more than 13 years ago, the St. Louis Fed's Meanwhile, community groups' efforts became more organized. Community Affairs Office has had one mission — to promote Consequently, banks, community groups and regulators spent con- CRA's objectives by linking community credit needs with lending siderable time resolving CRA protests. programs to help meet those needs. Ultimately, the goal is to further Later in the 1980s, Congressional hearings determined that credit access by facilitating partnerships among community groups, lenders and regulators could do more to carry out CRA's objectives. local governments and lenders. As such, many of the activities at In 1989, the Fed and other regulatory agencies responded to the the St. Louis Fed are grass roots efforts, bringing multiple players hearings in a joint policy statement that clarified what they expected together throughout the Eighth Federal Reserve District. of lenders and provided guidance on the factors contributing to a A L L I N A DAY'S WORK bank's CRA rating. Also that year, revised laws made CRA evalua- Community Affairs activities usually fall into one of three cate- tions and banks' expanded mortgage data available to the public. gories: helping banks meet their community credit needs, serving as A GRASS ROOTS APPROACH an information broker or handling protests of community groups At the Federal Reserve System, the charge of enforcing CRA has regarding banking practices. always been carried out in CRA examinations by banking super- Often, these activities go hand in hand, as in the case of visors. To augment its enforcement role, however, the Fed in 1981 publishing community profiles. Community Affairs staff obtain established a community liaison at each Reserve Bank to help com- information about a community's demographics, unique credit munities and bankers better understand CRA. needs and area programs available to meet those needs by meeting In establishing these regional Community Affairs Offices, the one-on-one with members of local community organizations and Fed maintained several convictions. First, Reserve Banks have the government agencies. In 1993, such interviews numbered more knowledge of local banking and economic conditions needed to than 100. Community Affairs staff then compile their research into help establish programs that would best meet their communities' extensive community profiles that identify lending opportunities in W I T H T H E PARTICIPATION OF COMMUNITY AFFAIRS, r- S E T T L E D BEFORE EVER R E A C H I N G A FORMAL PROTEST. IN THE LAST EIGHT Y E A R S , T H E O F F I C E HAS ALSO P A R T I C I P A T E D IN T H E R E S O L U T I O N OF 17 FORMAL C R A PROTESTS. SMALL BUSINESS GETS B I G BOOST When the production of wooden pallets couldn't keep up with demand, Jacksonville Industrial Service needed a loan just to keep its business afloat. After considering traditional lending sources for small businesses, Secretary and Treasurer Luther Warren turned to the newly formed Tri-County Community Development Corporation (CDC) for funding. The Tri-County CDC, established in 1989, is a for-profit consortium of lenders and private investors that provides equity and debt financing to support job creation and retention in Cass, Morgan and Scott counties in Illinois. Since 1991, it has made two loans to Jacksonville Industrial Service — one for $55,000 and another for $21,000. Warren says he pursued funding with the CDC for several reasons. "Most funding for small businesses requires a lot of paperwork and forces you to work with people you don't know in different communities," he explains. "Working with the CDC was easier because we already knew these people, and they knew us." Warrens business partner, President Charles Walker, offers another reason. "A conventional lender considers a business' collateral and its bottom line in determining a loan amount. But a CDC considers saving a job as equally important 'equity!" Harold Cox, president of the CDC and executive vice president at the Farmers State Bank and Trust Co., worked closely with the Fed's Community Affairs staff in creating the CDC. "The Fed took on a very proactive role during the start-up phase of the CDC — not only in the regulatory aspect, but in a supportive role as well. They were always willing to come out or share information over the phone." Having benefited from the Fed's assistance. Cox, in turn, has served as a resource for the Fed. He has spoken at several of the Fed's conferences about multi-lender CDCs and how rural CDCs can succeed. As a result of the 1993 expansion financed by the Tri-County CDC, Jacksonville Industrial Service has enjoyed a 30 percent increase in production and retained its three employees. As for the Tri-County CDC, its shareholder equity has grown to $535,000 in 1993, and it has become a model for other cooperative efforts around the country. low- and moderate-income communities for the benefit of bankers issues. Often, discussion turns to cooperative financing options who have not specialized in such lending in the past. The District's that fill the gap between what a bank can prudently lend and what largest MSAs, including St. Louis, Memphis, Evansville, Louisville and the community's credit needs are. One topic of interest has been Little Rock, have been initial targets; other profiles are also planned. the creation of Community Development Corporations (CDCs), Another way the Office obtains valuable information is by which are for-profit or not-for-profit entities made up of banks, attending business meetings of community groups or local govern- other private-sector investors and government agencies. These ment agencies whenever topics include a regional credit assessment or consortia, by definition, finance urban redevelopment, affordable a development program that might interest Eighth District bankers. housing or other economic development projects for low- to The Bank also sponsors its own outreach activities. Last year, for moderate-income residents. example, the Community Affairs Office sponsored five CRA train- Sometimes, the Community Affairs Office helps launch such ing workshops for bank directors and initiatives. To spark interest in shared executive officers in the District. The lending efforts in the St. Louis area, for purpose of these workshops is to help example. Community Affairs staff in directors understand that CRA perfor- 1993 participated on a steering com- mance begins at the top — not just mittee that developed plans for a with lenders, compliance officers, multi-lender C D C called the St. Louis CRA officers, legal counsel or public Business Development Fund. The goal affairs staff. Workshops focus on other of this CDC, which is expected to topics and audiences as well. incorporate as a for-profit entity, is to has also stimulate business and job growth by teamed up with community organiza- making loans to viable small compa- tions to co-sponsor forums at which nies that are unable to obtain financing lenders learn about regional credit from conventional sources. C o m m u n i t y Affairs E V E R Y Y E A R , C O M M U N I T Y A F F A I R S S T A F F M A K E A B O U T 25 PRESENTATIONS ON COMMUNITY C R E D I T ISSUES, M O S T O F T H E M T O C O M M U N I T Y G R O U P S OR B A N K E R S ' A S S O C I A T I O N S . I N 1 9 9 3 , T H E Y A L S O S P O K E TO N O N - P R O F I T A N D FOR-PROFIT D E V E L O P E R S , AS W E L L AS LOCAL G O V E R N M E N T AGENCIES. SUCCESS FROM PROTEST TO PARTNERSHIP Following a protest agreement in 1987 with Union Planters National Bank of Memphis, Mid-South Peace and Justice Center's Hubert Van Tol said the Fed's role as facilitator was crucial "in getting to talk to bankers at the key level that could make a difference." Even though the original formal agreements have expired, the parties continue to meet quarterly to discuss community credit issues. A FRUITFUL FORUM Delmar Tegtmeier, vice president and CRA officer of Magna Bank of St. Clair County in Illinois, says that several banks became interested in his Metro East Lenders Group following his presentation at the Fed's St. Clair County Lenders Forum in April 1993. OPPORTUNITY KNOCKING BREEDS SUCCESS WAS Beverly Morrow, an associate board member of Simmons First National Bank in Pine Bluff, Ark., attended a Fedsponsored training workshop in May 1993 and learned that an aggressive approach to CRA can create more of an opportunity than a burden. She hopes to enhance Simmons' existing practice of referring denied loan applicants to consumer credit counselors in the hope that it will ultimately generate a creditworthy customer and new bank business. TT EDUCATIONAL EFFORT IN EVANSVILLE Two TALES IN LOUISVILLE Gathering information to be published in the Louisville community profile. Community Affairs employee Judy Armstrong stopped by the Friary, a former seminary converted in 1991 into a dwelling for 24 households. New Directions Housing Corp. developed the $1.6 million project, P N C Bank of Kentucky, Inc., served as a limited equity partner and provided mortgage lending, and the city of Louisville provided funding for infrastructure improvements. She also visited a new, singlefamily home for low- to moderate-income residents in the city's California neighborhood. "The Fed's profile of Evansville's credit needs has helped educate the financial community here," says Gregory Volz, project director for Legal Services Organization of Indiana, Inc., which counsels community groups on fair housing. "With some 50 percent of the black households in Evansville in poverty, many bankers have told me they want to help and know they should do more. The Fed's profile has given them the base to develop specific projects." A POPULAR P R O F I L E After being profiled in the Fed's Community Affairs newsletter in April 1992, Memphis' Habitat for Humanity received about a dozen calls from community organizers interested in establishing affiliates in their cities. A SUCCESSFUL RURAL Verle Hugenout, chairman, president and CEO of United Missouri Bank Northeast in Monroe City, Mo., built a very successful track record in minority lending despite his bank's STRATEGY small size — just over $66 million in assets. Hugenout has shared his insights with other small-town bankers at a St. Louis Fed-sponsored CRA workshop. he Community Affairs Office also reports on community original $50 million lending commitment by offering additional development initiatives in its Community Affairs newsletter for resources and CRA products. Today, it has integrated those products compliance officers and community representatives. Through the into its regular portfolio as profitable business. The bank also newsletter, bankers and community groups learn from each made changes in its business practices — it now markets its services other by reading profiles of successful housing and economic to low- and moderate-income communities, makes offices more development programs. accessible to residents of these communities, and invites community f^y Occasionally, the Community Affairs Office serves as a facilitator, if requested, between community groups and bankers in CRA input to develop bank products. A FINAL THOUGHT disputes. When a bank holding company applies for permission to The Federal Reserve Bank of St. Louis has for 13 years played an acquire another institution or open a branch, the Federal Reserve active role in carrying out CRA objectives in the Eighth District. considers the applicant's CRA record. After such applications are Though it is ultimately up to lenders to develop the credit programs filed with the Fed, the public can and often does comment on the that serve their communities, the Fed's Community Affairs Office applicant's success in meeting its CRA obligations. has boosted such efforts by serving as a bridge between Eighth If such comments raise clear questions about an applicant's CRA District community groups and lenders. record, the Fed's Community Affairs officer may be asked to hold a Although no one knows exactly what regulatory changes are in private discussion between the lender and the community group. By store for CRA, the Fed's community liaison role will likely become serving as a neutral intermediary, the Community Affairs officer is increasingly important. With its regional expertise in the banking often able to suggest alternatives that meet the needs of both parties. system and a deep-rooted knowledge of community credit needs, the Over the years, many such agreements have become catalysts for Fed has a natural ability to help forge the partnerships necessary to successful community lending and development strategies on an address important community development issues. And it may be in ongoing basis. this arena that the Fed can ultimately have the greatest impact on After a 1986 agreement between a holding company and community development. a community organization, for example, one bank exceeded its T H E C O M M U N I T Y A F F A I R S O F F I C E R SERVES ON T H E BOARDS OF DIRECTORS OF D I S T R I C T ORGANIZATIONS. C U R R E N T L Y , H E SERVES ON T H E BOARD OF S T . LOUIS' NEIGHBORHOOD COMMUNITY HOUSING SERVICES A N D IS ON T H E F I N A N C E C O M M I T T E E OF E C U M E N I C A L HOUSING PRODUCTION CORPORATION. ONE RESIDENT BECOMES PART OF T H E S O L U T I O N In 1989, Carmen McClendon bought her first home in the Village of Uplands Park, a small residential community just north of St. Louis. Newly divorced with two children. she felt the location offered good neighbors and a positive atmosphere. To her distress. however, she found that the neighborhood's older homes were deteriorating — along with their property values — and residents couldn't afford to make the necessary repairs. Fortunately, Neighborhood Housing Services of St. Louis, Inc. (NHS), came to their aid. NHS stabilizes low- to moderateincome neighborhoods with loans, code enforcement repairs, training for new homebuyers, and homeowner and insurance counseling. Funding comes from a partnership of residents and businesses, including banks and insurance firms. The organizations board of directors includes a member from the Fed's Community Affairs Office. As of 1993, NHS has dispensed more than $9 million in loans and funds for home upgrades or rehabilitation for six communities in the St. Louis area. "The participation by the Federal Reserve on our board enhances lenders' involvement," says Yvonne Sparks, executive director of NHS. ^^^^^^^^^^^^^^^^^^^^^^^^^^^•€ ..^^ K S ^ ^ ^ ^ ^ ^ ^ ^ ^ H B ^ ^ T ^ ' ^j^^^^^^^^^^^^H IHIV • K ' ^ ^^^^^^^^^^^K^ "^ma^^^^^^^^^^^^^^^^^^^k ^ ' ^^% .••mm^ % ' - ^^^^^^^^^^^^^^^K, Jjw -^^H^^^^^^^^^^^H H^iv^^^ft^^K ^"^^^H •y^^^Bf^H ^s^^l '^^' ^m f ^^Hv' ' •W W •'•••^•- '\ v'\ / . • , • *•>•••• ^ ^' 1 / ^ ^ ^ ' ^ • • ^ * ^^^- i * ^^r/ YVONNE SPARKS, NEIGHBORHOOD HOUSING SERVICES OF ST. LOUIS, INC.; RANDALL SUMNER, ST. LOUIS FED; AND CARMEN MCCLENDON, RESIDENT OF THE VILLAGE OF UPLANDS PARK :• 1 ^ "As a result, bankers see community investment as an important thing to do." McClendon is just one example of how community investment ejforts can gain momentum well beyond their sometimes modest beginnings. NHS recruited her to serve an unfinished term on its board, where she has proved to be a great asset for her neighborhood and NHS. As one of NHS' "model block neighborhoods," the Village of Uplands Park now has rebuilt curbs, sidewalks and driveways. In front of McClendon's home, some 16 sections of sidewalk concrete were replaced. In addition, NHS replaced aging sycamores and elms with pear trees. These improvements. in turn, freed up homeowners' money for paint, new windows and doors, and other much-needed repairs. As a result of her involvement with NHS, McClendon's view of banks and bankers has changed. "I used to think bankers dealt strictly with finances," she says. "I was surprised to learn they have a lot of new ideas about a lot of things, and they are very creative. They have been very sensitive to the needs of the community and finding ways to meet those needs." S T A T E M E N T (thousands OF O P E R A T I N G C O N D I T I O N S T A T I S T I C S of dollars) December 31, 1991 December 31, 1992 NUMBER ^OPERATIONS 1993 ASSETS Gold certificate account Special Drawing Rights certificate account Coins Loans to depository institutions Securities: Federal agency obligations U.S. government securities Total securities Cash items in process Bank premises (net) Other assets Interdistrict settlement account TOTAL ASSETS $ 392,000 168,000 21,650 1,250 163,772 11,722,725 $11,886,497 246,352 30,861 783,320 1,856,794 $15,386,724 $ 304,000 168,000 25,274 5,000 132,435 7,218,244 $ 7,350,679 293,612 29,797 683,302 5,311,031 $14,170,695 SERVICES TO CHECK DEPOSITORY INSTITUTIONS SERVICES U.S. government checks Postal money orders ACH 29,055,000 191,950,000 SERVICES ^^^^^^H Commercial . ^ ^ ^ ^ . . . U.S. government. . 115,076,000 26,683,000 COLLECTION SERVicEg^™*™""*^^*''™''''*' U.S. government coupons paid. . . 23,348 All other 43,594 Currency received and counted. . . Wire transfer of funds 772,778,000 3,322,167 LIABILITIES Federal Reserve notes $14,005,725 $12,823,759 S E R V I C E S T O U.S. Deposits: Depository institutions Foreign banks Other deposits Total deposits $ Deferred availability credit items Other liabilities Interdistrict settlement account TOTAL LL\BILITIES 214,670 98,533 0 $15,238,058 204,338 44,365 0 $14,030,831 $ $ 906,693 3,183 9,254 919,130 $ 952,292 3,433 2,644 958,369 CAPITAL ACCOUNTS Capital paid in Surplus TOTAL CAPITAL ACCOUNTS TOTAL LLVBILITIES AND CAPITAL Loans to depository institutions . . 74,333 74,333 $ 148,666 $15,386,724 69,932 69,932 $ 139,864 $14,170,695 j^^s^mS?^ TREASURY Transfer of government securities Food stamps redeemed 158,219 267,666,000 I I N C O M E A N D E X P E N S E S (thousands ofdollars) NUMBER 1992 December 31, 1993 DOLLAR A M O U N T (THOUSANDS) 1992 1993 December 31, 1992 EARNINGS 29,988,000 180,904,000 572,736,000 93,787,000 H5,227,000 $ 22,760,000 22,207,000 390,836,000 480,344,000 62,959,000 $ 26,414,000 20,188,000 377,213,000 416,676,458 55,074,285 10,903 135,642 14,867 248,539 740,377,000 9,771,590 9,057,263 3,267,365 4,452,005,000 3,951,305,000 sm. 30,459 78,367 ^ ^ ^ 585 900,000 767,000 173,031 257,792,000 315,931,000 1,348,243 446,756,000 1,248,585 Interest on loans to depository institutions Interest on government securities Earnings on foreign currency Revenue from priced services All other income Total current income $ 692 537,604 28,783 30,570 210 $597,859 $ Current operating expenses Less reimbursables Current net operating expenses $ 80,832 (10,541) 70,291 $ 72,235 (10,001) 62,234 Cost of earnings credits Current net expenses CURRENT NET INCOME 3,603 73,894 $523,965 4,l4l 66,375 $450,600 $ $ CURRENT 841 432,402 52,606 30,873 253 $516,975 EXPENSES PROFIT A N D LOSS Additions to current net income: Profit on sale of government securities (net) Profit on foreign exchange transactions (net) All other additions Total additions Deductions from current net income: Loss on foreign exchange transactions (net) All other deductions Total deductions Net additions or deductions Cost of unreimbursed Treasury service Assessment by Board of Governors: Expenditures Federal Reserve currency costs NET INCOME AVAILABLE FOR DISTRIBUTION D I S T R I B U T I O N OF N E T $ $ 1,226 6,080 0 7,306 3,154 78,088 5 $ 81,247 0 31,391 31,391 (24,085) (1,774) $104,732 105 104,837 (23,590) (1,669) (3,187) (I4,l4l) $480,778 (3,183) (7,170) $414,988 $ (4,293) $ (4,092) 472,141 4,345 $ 69,932 $ 74,277 406,546 4,350 $ 65,582 $ 69,932 INCOME Dividends paid Payment to the U.S. Treasury (interest on Federal Reserve notes) Transferred to surplus Surplus, January I Surplus, December 31 B O A R D S BOARD O F ST. LOUIS OF D I R E C T O R S DIRECTORS FEDERAL COUNCIL ADVISORY MEMBER Chairman Robert H. Quenon Mining Consultant St. Louis, Missouri Andrew B. Craig, III Chairman, President & CEO Boatmen's Bancshares, Inc. St. Louis, Missouri Deputy Chairman John F. McDonnell Chairman & Chief Executive Officer McDonnell Douglas Corporation St. Louis, Missouri BOARD O F D I R E C T O R S LiTTUE R O C K Richard E. Bell President & Chief Executive Officer Riceland Foods, Inc. Stuttgart, Arkansas W. D. Glover Chairman & Chief Executive Officer First National Bank of Eastern VVrkansas Forrest City, Arkansas Warren R. Lee President W R. Lee & Associates, Inc. Louisville, Kentucky Douglas M. Lester Chairman of the Board & President Trans Financial Bancorp, Inc. Bovvfling Green, Kentucky Veo Peoples, Jr. Partner Peoples, Hale & Coleman St. Louis, Missouri Henry G. River President First National Bank in Pinckneyville Pinckneyville, Illinois Sandra B. Sanderson President & Chief Executive Officer Sanderson Plumbing Products, Inc. Columbus, Mississippi Chairman Robert D . Nabholz, Jr. Chief Executive Officer Nabholz Construction Corporation Conw^ay, Arkansas Betta Carney President & Chief Executive Officer World Wide Travel Service Inc. Little Rock, Arkansas Barnett Grace Chairman & Chief Executive Officer First Commercial Bank, N.A. Little Rock, Arkansas Janet M. Jones President The Janet Jones Company Little Rock, Arkansas James V. Kelley Chairman, President & CEO First United Bancshares, Inc. El Dorado, Arkansas Mahlon A. Martin President Winthrop Rockefeller Foundation Little Rock, Arkansas Mark A. Shelton, III President M. A. Shelton Farming Company Altheimer, Arkansas BOARD O F DIRECTORS LOUISVILUE BOARD O F MEMPHIS Chairman Laura M. Douglas Legal Director Louisville & Jefferson County Metropolitan Sewer District Louisville, Kentucky Chairman Sidney Wilson, Jr. Owner & President Wilson Automotive Group Inc. Jackson, Tennessee Daniel L. Ash Senior Consultant Wenz-Neely Company Louisville, Kentucky John A. Williams Chairman & Chief Executive Officer Computer Services, Inc. Paducah, Kentucky Malcolm B. Chancey, Jr. Chairman of the Board & CEO Liberty National Bank and Trust Company Louisville, Kentucky DIRECTORS Woods E. Eastland President & Chief Executive Officer Staple Cotton Cooperative Association Greenwood, Mississippi Lewis F. Mallory, Jr. Chairman & Chief Executive Officer National Bank of Commerce of Mississippi Starkville, Mississippi John V. Myers President Better Business Bureau Memphis, Tennessee Robert M. Hall Owner, Family Farm Seymour, Indiana Anthony M. Rampley President & Chief Executive Officer Arkansas Glass Container Corporation Jonesboro, Arkansas Thomas E. Spragens, Jr. President & Chief Executive Officer Farmers National Bank Lebanon, Kentucky Benjamin W Rawlins, Jr. Chairman & Chief Executive Officer Union Planters Corporation Memphis, Tennessee Charles D. Storms President & Chief Executive Officer Red Spot Paint & Varnish Co., Inc. Evansville, Indiana Katie Winchester President First Citizens National Bank Dyersburg, Tennessee E C O N O M I C A D V I S O R Y C O U N C I L / B A N K O F F I C E R S ECONOMIC ADVISORY COUNCIL ST. LOUIS OFFICERS Carol L. Barnes Secretary and Co-Owner The Missouri Peddlers St. Louis, Missouri Thomas C. Melzer President John W Block Assistant Vice President Kim D. Nelson Assistant Vice President Karl W Ashman Vice President & Manager James R. Bowen First Vice President Timothy A. Bosch Assistant Vice President Harold H. Rieker Assistant Vice President Thomas R. Callaway Assistant Vice President Henry H. Bourgaux Senior Vice President Keith M. Carlson Assistant Vice President Frances E. Sibley Assistant Vice President Marilyn K. Corona Operations Officer Joan P. Cronin Senior Vice President Martin J. Coleman Assistant Vice President John A. Tatom Assistant Vice President William G. Dewald Senior Vice President Cletus C. Coughlin Assistant Vice President Robert J. Taylor Assistant Vice President Mary H. Karr Vice President, General Counsel & Secretary Judith A. Courtney Assistant Vice President Daniel L. Thornton Assistant Vice President Jeffrey M. Dale Assistant Vice President Richard G. Anderson Research Officer Hillary B. Debenport Assistant Vice President Bernard E. Berns Customer Support Officer John P. Baumgartner Vice President & Manager R. Alton Gilbert Assistant Vice President Dennis W Blase Supervisory Officer Anthony C. Cremerius, Jr. Assistant Vice President Edvi^ard A. Hopkins Assistant Vice President Michael W DeClue Supervisory Officer Michael R. Sinnett Operations Officer Robert A. Hopkins Assistant Vice President Patricia A. Marshall Assistant Counsel & Assistant Secretary to the Board Roy H. Hunt President Hunt Tractor and Equipment Louisville, Kentucky W K. McGehee, Jr. President Spurling Fire & Burglar Alarm Co. & Telecom, Inc. Fort Smith, Arkansas Lucy Shawf President & Chief Executive Officer The Regional Medical Center at Memphis Memphis, Tennessee Russ B. Little, Sr. CEO/Chairman of the Board Afro World Hair Company St. Louis, Missouri Brady Deaton Department of Agricultural Economics University of Missouri Columbia, Missouri Allen Franks Guthrie, Kentucky Margaret McKee Friars Point, Mississippi Richard E. Kay Vice President Raymond H. Laurence Vice President Jean M. Lovati Vice President Martha L. Ferine Vice President & Controller Michael D. Renfro General Auditor Kristi D. Short Vice President William J. Sneed Vice President Randall C. Sumner Vice President Lynn M. Barry Assistant Vice President L I T T L E ROCK Susan B. McCoUum Assistant Vice President Jerome J. McGunnigle Assistant Vice President John P. Merker Assistant Vice President Michael J. Mueller Assistant Vice President Steven N. Silvey Information Systems Officer Harold E. Slingerland Credit Officer LeisaJ. Spalding Audit Officer LOUISVILLE BRANCH BRANCH W Howard Wells Vice President & Manager Thomas A. Boone Assistant Vice President Thomas O. Short Assistant Vice President MEMPHIS BRANCH EIGHTH FEDERAL RESERVE DISTRICT FEDERAL. RESERVE BANK OF S T . l_ouiS Post Office Box 442 St. Louis, Missouri 63166 314-444-8444 LITTLE ROCK BRANCH Post Office Box 1261 Little Rock, Arkansas 72203 501-324-8300 LOUISVILLE BRANCH Post Office Box 32710 Louisville, Kentucky 40232 502-568-9200 MEMPHIS BRANCH Post Office Box 407 Memphis, Tennessee 38101 901-523-7171
@FedFRASER