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Federal Reserve Bank
of Dallas

HELEN E. HOLCOMB
DALLAS, TEXAS
75265-5906

FIRST VICE PRESIDENT AND
CHIEF OPERATING OFFICER

February 9, 2001

Notice 01-14

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 Federal Reserve Banks during 2000. 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 printed on
the reverse side of this notice.
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 District Notices on 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 18, 2001

Preliminary figures indicate that the Federal Reserve Banks distributed approximately
$25.3 billion of their $34.0 billion total income to the Treasury during 2000. In addition, $3.75
billion was transferred from surplus to the Treasury in May 2000, as required by statute.
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.
This income amounted to $32.7 billion. Additionally, revenues from fees for the provision of
priced services to depository institutions totaled $881 million. The remaining income of $335
million includes earnings on foreign currencies, earnings from loans, and other income.
The operating expenses of the twelve Reserve Banks totaled $1.59 billion, including
the System’s pension cost credit. In addition, the cost of earnings credits granted to depository
institutions under the Monetary Control Act of 1980 amounted to $389 million. Assessments
against Reserve Banks for Board expenditures totaled $188 million and the cost of currency
amounted to $436 million.
Net deductions from income amounted to $1.49 billion, resulting primarily from
unrealized losses on assets denominated in foreign currencies revalued to reflect current market
exchange rates.
Total net income for the Federal Reserve Banks amounted to $29.9 billion. Under the
Board's policy, 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 Treasury. The statutory dividends to member banks were $410 million.

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