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Federal Reserve Bank
of Dallas

l l★K

HELEN E. HOLCOMB
DALLAS, TEXAS
75265-5906

FIRST VICE PRESIDENT AND
CHIEF OPERATING OFFICER

January 21, 2000
Notice 2000-05

TO: The Chief Operating Officer of each
financial institution and others concerned
in the Eleventh Federal Reserve District

SUBJECT
Preliminary Figures on the Operating Income
of Federal Reserve Banks
DETAILS
The Board of Governors of the Federal Reserve System has announced preliminary
figures on the operating income of the Federal Reserve Banks during 1999. Federal Reserve
System income is derived primarily from interest earned on U.S. government securities that the
Federal Reserve has acquired through open market operations.
ATTACHMENT
A copy of the Board’s press release announcing the preliminary figures is attached.
MORE INFORMATION
For further information, please contact Claude Davis at (214) 922-5607. For additional copies of this Bank’s notice, contact the Public Affairs Department at (214) 922-5254 or
access our web site at http://www.dallasfed.org/banking/notices/index.html.
Sincerely,

For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal
Reserve Bank of Dallas: Dallas Office (800) 333-4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012;
Houston Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810.

Federal Reserve Release
For immediate release

January 6, 2000

Preliminary figures indicate that operating income of the Federal Reserve Banks
amounted to $29.347 billion during 1999. Net income before payment of dividends, additions to
surplus, and payments to the Treasury totaled $26.255 billion. About $25.400 billion of this net
income was distributed to the U.S. Treasury during 1999.
Federal Reserve System income is derived primarily from interest earned on U.S.
government securities that the Federal Reserve has acquired through open market operations.
Income from the provision of financial services amounted to $836 million.
Operating expenses of the 12 Reserve Banks totaled $1.904 billion. In addition, the
cost of earnings credits granted to depository institutions under the Monetary Control Act of
1980 amounted to $322 million. Assessments against Reserve Banks for Board expenditures
totaled $214 million and the cost of currency amounted to $485 million.
Net deductions from income amounted to $526 million, resulting primarily from
unrealized losses on assets denominated in foreign currencies revalued to reflect current market
exchange rates. Statutory dividends to member banks were $375 million.
Under the policy established by the Board of Governors at the end of 1964, all net
income after the statutory dividend to member banks and the amount necessary to equate surplus
to paid-in capital is transferred to the U.S. Treasury.

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