C. Federal Reserve Bank of

1984 Annual Report

“We acknowledge our public i responsibilities and our national t part of the country‘s central banking system.” Table of Contents

From the Boardroom...... 3 Economic Expansion Continues reasonable in the exercise of our authority. We will regard quality and in the Southeast...... 5 responsive service as our most important business priorities and in carrying out our responsibilities we will regard people as more important than pro- ", cess. Our business decisions will be weighed against a comprehensive Atlanta Fed Activities: business plan that outlines our organizational goals and priorities, and these A Commitment to Efficiency, decisions always will be made with careful regard for the longrun health of Integrity, and Excellence . . . .9 the Bank and the constituencies we serve. We acknowledge our public interest responsibilities and our national trust as part of the country's central banking system. We intend to provide exemplary service to our government, Corporate Citizenship: the business community, and the general public. The Challenge of Getting Involved...... 15 Management Philosophy

Since effective teamwork goals, the Bank's -a Directors and organizational structure and overall management style will reflect an open Senior Officers , . , , . , , . . . . .20 and participative approach. Bank managers will be peopleoriented, visible, and accessible at all levels. Employees will be kept informed regarding Branch Directors...... 22 plans, decisions, events and problems affecting them, and their suggestions . . . . will be actively encouraged. Statement of Condition, . , , .24 Employee Relations We will strive to attra taff of individuals who Statement of Earnings...... 25 are highly effective in carrying out their responsibilities, who are com-

mitted to Bank goals, who have the highest standards of personal integrity, ~ Summary of Operations . . . .26 and who genuinely enjoy their careers at the Federal Reserve. The relation- ship between Bank management and other staff members will be characterized by mutual respect, fairness, and equal opportunity and treatment for every individual. ., Pride in Work Excellence is o Reserve Bank . take pride in their professionalism and in providing the highest quality of service possible to the clients we serve. The Bank encourages continual in- , novation, creativity, and involvement to improve productivity and the . quality of services we offer. Staff members are recognized and rewarded €or their contributions to our success. For additional copies write to: Community Involvement Information Center Federal Reserve Bankof Atlanta We take seriously the responsibilities orate citizenship and P. 0.Box 1731 actively encourage and support the civic and community involvement of our Atlanta, 30301 -1 731 staff. (404)521 -8788

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2 L- From the Boardroom

, With a new management team in Our third responsibility, which actu- - place at the beginning of 1984, the ally requires most of our resources, is Federal Reserve Bank of Atlanta adopted providing financial and central banking

~ a corporate philosophy statement that services to the public, depository insti- identifies and articulates the Bank’s tutions, the U.S. government, and the ’mission and goals. That document corn business community. We are dedicated mits us to be prudent and foresighted in to offering superior service in a way that managing Bank resources and fair and T reasonable in exercising our authority as a unit of the nation’s central bank. - As a key section of the statement -> summarizes: “We acknowledge our public interest responsibilities and our national - trust as part of the country‘s central - banking system. We intend to provide exemplary service to our government, the business community, and the general * public.” 4 In addition, we developed a strategic business plan for 1985-1987 to guide - the implementation of our primary responsibilities with careful attention to the longrun health of the Bank and the constituencies it serves. Perhaps the most visible of these responsibilities relates to helping fomw C late national monetary policy. In this regard, we have focused more intently on contributing to national goals through - quality economic research Atlanta Fed President Robert P. Forrestal participates . on the policymaking Federal Open Market -- Committee (FOMC) with the seven gover nom of the Federal Reserve System and the 11 other Federal Reserve Bank * presidents. He became a voting member . of the FOMC in March 1985, as our Banks president does every third year. Atlanta Fed Chairman JohnH. Weitnauer, Jr., left, and Pn it Robert P. Forrestal, right, in a discussion with Federal - A second responsibility spelled out Reserve Board Chairman Paul A. Volcker during a meeting at the New Orleans Branch. ’in the business plan involves our activi- ties relating to supervision and regula- promotes .the efficiency and integrity tion. We commit ourselves to providing of the payments mechanism. + highly professional supervision of finan- Our three corporate missions are di4 cial institutions, emphasizing minimal tinct, yet we see them as being comple interference consistent with safety and mentary and mutually supportive. By soundness, while standing ready as a achieving our strategic goals, we can * lender of last resort to support super help encourage a strong, low-inflation economic environment, and contribute

3 to a stable, efficient financial services human relations through a comprehek industry. sive program to improve management‘s We are pleased with our accom- accessibility and responsiveness to c plishments of last year, and this annual employee concerns. Our efforts include report details the operations and achieve a broadened District-wide program to ments of our various departments. enhance employee relations and an This annual report also will take a intensified dedication to the Bank’s

close look at the economy of the Sixth affirmative action program. We are ~ Federal Reserve District and how it committed to identifying individuals with relates to that of the nation. The District promise and to helping them progress in includes Alabama, , and Georgia, their careers. as well as parts of Louisiana Mississippi, We also intend to sharpen the Bank’s r and . Despite lingering areas focus on community affairs. This report @ details programs that our offices have undertaken to improve their respective - communities, particularly in the area of education. And it will spotlight some of the employees who have given their own time to help make their corn munities better places to live. The Atlanta Fed will seek to improve ties with congressional, business, and community leadm in the District through such initiatives as the distinguished

lecturer series that has brought leading ~ speakers to address our directors and

guests. Prominent economists, govern ~ ment officials, and bankers spoke dur ing the Atlanta series last year. In I addition, our directors heard Federal Thisbrass plaquemarksthetable,stlllusedforAtlantaFedmeetings, aroundwhichBanlcdirectorsfirstmet on October 19, 1914. Reserve Board Chairman Paul Volcker 4 address a joint meeting of our boards in of weakness and the inmasing concern New Orleans. over the vast federal budget deficit, the We want to thank our directors for regional economy and the national econ their valuable counsel during the year, omy so important to its health remain with a special thanks to Guy W. Botts, generally strong. As you’ll see, we former board chairman of Barnett Banks , consider the outlook encouraging for of Florida. Mr. Botts stepped down the months ahead. from our head office board at yearend We’ll discuss the positive but some after completing six years on that body + times traumatic evolution of the finam and three previously with the Jacksok ‘ cia1 services industry. With depository ville Branch board. We want to welcome institutions still feeling the pressures of E.B. Robinson, Jr., chairman and chief L a changing market, our role as a super executive officer of Deposit Guaranty 4 visor and regulator proved .to be an National Bank in Jackson, Mississippi, active one during the year just past; it who recently joined our head office

promises to be no less important in board. c* 1985. And finally, we would like to say Looking ahead, we are aware of our “thank you” to the 2,000 employees obligations not only to our constituents whose dedication and hard work helped but to our employees as well. We plan us meet the challenges of a demanding + to build upon past accomplishments in year in 1984. * 77

4 . Economic Expansion Continues ' in the Southeast

The southeastern economv turned in a unemdovment rates for Georgia and

.I good performance in 1984, hth consicier Flo& declined well below the national able employment and output expansion and regional levels, but in Mississippi \ and little upward pressure on prices. and Alabama doubledigit jobless rates After a slowdown in the third quarter, persisted throughout 1984. The problems 7 the area's economy regained momentum in those two states, plus weak growth toward yearend We look for continued in Louisiana, could make it difficult for growth in 1985 at a moderate pace. the region to reduce its joblessness - Naturally, the outlook for the region's significantly this year. In fact, the economic health depends on develop region's anticipated economic strength ments in national and international in 1985 is likely to continue

(r markets in which many of the region's varying sharply among indk

~ goods and services are sold While vidual states and sectors. Unemployment Rate weak energy prices and the strength of The construction sector is I the dollar in foreign exchange markets expected to continue driving Percent i are likely to dampen activity in some the Southeast's economy. Fol- m Sixth District * States - sectors, vigor in others-such as auto- lowing a jump in the second 11 m United related manufacturing, services indue quarter of 1984, interest rates tries, and defense contracting-should declined substantially through 10 be more than sufficient to maintain the rest of the year and resk growth for the regional economy in dential housing sales accel- coming months. And some parts of the erated. Even though much of region, continuing to enjoy significant the pent-up demand for housing 7 business and population inmigration, was satisfied by late 1984, the + again are likely to grow faster than the construction industry expects :I 8- nation as a whole. activity to remain reasonably J...... J ,r.Y YJ ".."L.., ,"YV'.Y Thanks partly to the manufacturing stronn durinn 1985. In multl- 1983 1904 Soum Bureau of Labor Statistics. + expansion and growth in servicerelated famG housgg, simply main- I employment, the region's total employ- taining last yeds pace-the - ment advanced at a rate averaging nearly strongest since 1973-would constitute . 4 percent during 1984 compared with an impressive performance. only 2 percent the previous year. The Nonresidential construction also grew number of jobs increased by more than energetically in 1984. In this sector, I a half million, 200,000 more than were too, activity reached a level not exceeded ' added during 1983. Although job growth since the early 1970s. Accelerated depre continued through most of last year, ciation writeoffs and other tax laws 4 the rate dropped in the fourth quarter, favorable to investment contributed to .L reflecting the more moderate expansion this burst of activity. Some geographic in the second half. markets have been saturated with new The region's unemployment similarly buildings and, in fact, may now be

A ,mirrored the yeaI's generally positive overbuilt. Although growth is unlikely developments. The rate dropped to 8 to maintain its current pace through percent in February 1984, after averag 1985, nonresidential construction may ing nearly 10 percent during 1983, and still achieve impressive levels if eco ., remained close to the 8 percent level in nomic expansion proceeds as expected the months that followed. Average Consumer spending typically encoun-

5 I) .. ters a lull after a period of rapid growth, for those 11 months, while Louisiana partly because of lackluster perfomance such as the nation enjoyed through lagged slightly behind in the tourist sector. Many in the region's c 1983 and into early 1984. Therefore, it The national pause in consumer spend- tourist industry look for improvement isn't surprising that the nation's economy ing proved to be only a temporary lull this year. Last year, the number of I slowed last summer when residential during another year of expansion, with visitors to the region was curtailed by il housing sales and construction tapered a strong fourth quarter that provided a competition from the Los Angeles Olym- off. As the summer progressed, con- mmhg start for 1985. With that renewed pics and the mng dollar, which encour sumer demand weakened for a broad momentum, the Southeast's outlook aged U.S. citizens to travel abroad. The / array of products including furniture, for the remainder of 1985 is encouraging. cew Orleans World's Fair proved to be appliances, and other household fur The flow of businesses and residents a disappointing money-loser for its nishings. into the region should heighten demand sponsors although it clearly boosted tourism revenue in neighboring states. Defenserelated manufacturing, espe cially electrical and electronic machinery and equipment, should exhibit solid growth this year as will the region's substantial paper manufacturing indue try. Unfortunately, not all the region's manufacturers will fare as well. Much of the apparel and textile manufacturing sector is suffering because of keen competition from imported products, their prices discounted in our outlets because of the dollar's strength in for eign exchange markets. Unless the dollar continues its early 1985 decline against other currencies, pressures on the de mestic textile industry will mount. The displacement of textile workers will pose a lingering absorption problem for the southeastern labor market. Virtually every industry heavily depen- dent on foreign sales has seen its market share shrink in recent years. The agri- cultural sector has been especially troubled by reduced foreign demand Low prices for farm products, heavy debt dcerequirements, and declining land prices remain major hurdles for farmers. over 70 financial institutions' ATMs. The nation's economic expansion scarcely touched the southeads energy- Retail sales in the Southeast held up for service industries, particularly in producing sector in 1984 and the new better than in the country as a whole at Florida and Georgia. Moreover, busi- year promises little improvement. The that time. The Sixth District states con- ness and tourist travel to the region worldwide market for Detroleum and ' tinued to outperform the national aver seems likely to advance during 1985. An natural gas is abundantli supplied, even age, with Florida and Georgia leading expansion of convention facilities in though some producers have slashed the way. In the first 11 months of the several cities will accommodate an influx output to shore up prices. Growth in + year, for instance, Florida posted a 13.3 of business travelers, and new facilities foreign economies has been far less ,. percent gain over the same months of apparently are being booked nearly as robust than ours and conservation efforts 1983, compared with a 10.9 percent quickly as they become available. have restrained demand. Regional oil gain for the nation as a whole. Tennessee The region's planepassenger traffic and gas production cannot rebound exceeded the national average slightly grew more slowly in 1984 than in 1983, until global market conditions improve.

e- 1 6 - Southeastern seaport facilities and Appeals, but the Supreme Court has Many proposed nonbank banks are businesses dependent on export market- agreed to review the legislation. expected to be opened in the Sixth ing find themselves hurt by the declining The first merger proposed under the District states if Congress and the courts exports. Rising imports have bolstered reciprocal laws would link Sun Banks permit holding companies to exploit - a number of seaports and traderelated of Florida, the second largest banking the loophole aggressively. Ninety-five businesses, but a realignment of the organization in the Sunshine State, and applications had been filed as of mid- dollar with other world currencies Atlanta-based Trust Company of Geor January for the Sixth District states. appears to be a prerequisite to restoring gia, the third largest banking organiza- Florida leads the list with 42 proposed ’the health of most of the Southeast‘s tion in that state. nonbank banks, while 22 applications international trade sector. Another major development in inter have been filed for Georgia. Both states‘ In the financial services industry, a state banking came when the Federal legislatures have voted to prohibit the continuing evolution in 1984 laid the Reserve Board approved U.S. Trust nonbank institutions. groundwork for additional changes in Corporation of New YorKs proposal to Still another banking development -the new year. Geographic barriers to convert its trust company in Florida was Citicorp’s acquisition of a finan- %ompetition among banks and savings into a “nonbank bank.” A nonbank, or cially troubled savings and loan associ- and loan associations eroded further limited-service bank, is insured and ation in Miami, approved by the Federal .during 1984, while loan losses hastened ~~ ~ -,the failure of additional depository insti- tutions. Value of U.S. Dollar Percent Change from December 1971 + In another development typifying the Tradeweighted Against 10 Currencies atransition in financial services, Georgia consumers gained access to almost all 30 of the state’s automated teller machines A ’ late in the year through the creation of Avail, a statewide ATM system modeled 20 J after Florida’s Honor system. The barriers to interstate competition A were reduced significantly in the South east by four states‘ approval of reciprocal 10 regional interstate banking legislation, by the opening of the “nonbank bank” loophole, and by a large New York 0 bank holding company’s acquisition of JFMAMJJASONDJFMAMJJASOND a failing S8tL in Florida. 1983 1984 A change with great potential for Souroe: Federal Reserve Bunk of Atlanta banking in the southeast was the passage of regional reciprocal interstate banking regulated but, because it does not meet Reserve Board early in 1984. Acquisition -* legislation in Florida, Georgia, North the definition of a bank in the Bank of the Florida SL, arranged by the Carolina, and . These Holding Company Act, it is not subject Federal Savings and Loan Insurance four legislatures voted to allow banking to commercial banks‘ customary gee Corporation under provisions of the 1 organizations in other southern states graphic restrictions. Garn-St Germain Act, gave the nation’s s to acquire their institutions if the other In February 1985 a federal district largest banking organization an entry states provide reciprocal privileges. All court ordered the Comptroller of the into one of the fastest-growing states. ,four state laws, which become effective Currency not to issue any final approvals Barriers to intrastate competition in _L jn 1985 or 1986, prohibit banks outside for limited-service banks pending a Louisiana were lowered by the passage the South from acquiring institutions in final court decision. The comptroller of a bill permitting multi-parish bank - these states. had begun approving nonbank bank holding companies The legislation could The constitutionality of regional inter charters after Congress failed to revise prompt the reorganization of many chain 4 state banking bills like those passed in the Bank Holding Company Act in banking organizations into bank holding the Southeast was challenged in New 1984. He had imposed a moratorium companies, as well as holding com- - England early in 1984. The regional earlier to give Congress time to revise panies’ purchase of some previously ”bills were upheld in the federal Court of that act. unrelated banks.

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I p. In the BanKs control room,guards monitor the closdcircuit television screens that enable our Protection Department to maintain surveillance essential to a central bank *-ip Atlanta Fed Activities: .A Commitment to Efficiency, -‘-- Integrity, and Excellence

* The evolving financial services envi- a few of our plans for further improve 4 ronment has brought major changes ments in the years to come. Data on the not only to our pricdservices operations volume of our operations appear on ’but to more traditional Bank activities page 26. \such as those involved with supervising, regulating, and lending to commercial Financial Services banks. Other departments, including One of the Bank’s most important :Accounting and Statistical Reports, also missions is to serve the public interest have been affected. by providing superior fiicial services. At the same time, developments in This meshes well with our dedication * our national and regional economies to promoting the efficiency and integrity ?pose new challenges for our specialists of the payments mechanism- another dedicated to researching economic trends major ongoing mission of this District + and counseling President Robert P. and the Federal Reserve System. -, Forrestal on monetary policy. Since enactment of MCA-80, we have We have come to feel at home in the sought to cover our costs of providing -new operating environment that was 4 thrust on us by “MCA-80”-the Mone tary Control Act of 1980. The act required us to sell, at explicit prices, services

~ that we had for years provided free to member banks-services such as check 9 processing, securities and noncash col- lection, wire transfers, and net settle ments. We were also to make those services available to nonmember banks, b savings and loan associations, and credit unions. ’ Throughout 1984, our 2,000 employees - continued the high operating efficiency that has kept us in the forefront of the

7 12-Bank Federal Reserve System. That + efficiency helped us to comply with the congressional mandate, enunciated in MCA-80, that the Reserve Banks match operating costs with revenues. Despite our efficiency, a growing workload continued to tax our physical ‘ facilities. In Jacksonville, one of the t ”fastest-growing economies in the nation has prompted the construction of a new Guy Hitchcock, foreground, end Ted Reddy review plans for the new JacksonvilleBranch building now under construction in that Florida city. ’ Branch building. The growing volume - of business at the Jacksonville Branch priced services by continuing the Distids has inundated our present building, emphasis on low costhigh quality opera- which dates to 1952, with more work tions. In 1984 we covered costs, met ,, than its limited space can accommodate. our volume targets, and remained a The new 208,000-squarefoot building, leader in the Federal Reservds measures well suited to the electronic age, is of production costs. 1 “rising just west of Jacksonville’s busi- Because the industry we serve is ness district. changing rapidly, we have concen- On the following pages we comment trated our longer range planning on ’ briefly on our operations in 1984, noting developing new services. From 1981 to t 9 I-

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Assistant Vice President JamesL. BrownconferswithBarbaraTysononasecuritiesservicestransferbetweenthe Atlanta a District financial institution. J =- Fed and .:

10 1983, we received approval from the popularity; therefore, we plan to use Board of Governors to offer 21 new or advanced technology to make wire trans ’ improved services; in 1984 we obtained fer and ACH services broader and more approval for 19 more. The following cost-efficient through faster processing sections highlight our 1984 accomplish- and improved data communications. - ments and preview some of our future As a major step in this program, the plans. Bank last year began employing the latest technology to implement an up graded, online, multi-service electronic Check Collection network to deliver Federal Reserve ser Check collection, a mature product vices to Sixth District financial institu- tions. As a further step, we expanded , line, generates percent of the Atlanta 85 ACH night-cycle processing and offered ~ Fed’s revenue from financial services. The future seems to promise fewer new electronic delivery options. During checks to be processed and fewer check the past year, the number of commer processors. This trend is likely because cial ACH transactions processed at our of consolidations among regional corn six offices increased by about 44 per spondent banks, a reduction in endpoints cent while the dollar volume more than ~ served due to mergers, and continued doubled. ? interest by financial institutions in direct local and regional exchanges. In 1984, Securities Services the District processed 2.14 billion checks With the new requirement that all - or 8 percent more than during 1983. securities be renistered and the national This is the largest volume of any Federal trend toward -book-entry of + Reserve District. registered securities, our exist- We continue to explore other needs ing definitive safekeeping and 9.0 in the marketplace. We hope to develop Check Collection ‘ coupon collection services Average Daily Incoming Items cooperative ventures in which we would have limited long-term poten- [millions) . provide specialized processing for other tiaL However, while adapting 8.5 large processors, and to employ tech- to long-run needs of the mar . nology that can make our service more ketplace, we intend to pursue efficient. In 1984, we took further steps nearterm service opportuni- 8.0 toward serving an increasingly elec ties. As part of this strategy, a * tronic payments mechanism by provid- standard securities services ing microfilming services for commer software package using a new cial checks either for a depositor prior microcomputer network was 7.5 + to check sorting or for a check receiver implemented in December. It - following sorting. In 1985 we will con- offers substantial improve tinue moving toward a less paper ments over our Drevious sv.+ 7.0 dependent system by piloting a program tem, and allows &line insti”k- CP 42 43 44 CP c22 43 W for truncation of checks at the Federal Reserve. Truncated checks are held at a deposit point rather than being returned - to the check-writer. This service could permit even greater savings for the payments process.

Wire TransfedACH

I As the nation’s payments system - -.evolves further toward electronic tram fers, the Fed also will move in that direction, continuing to be a stateof- + theart payments processor. Electronic payment generally is recognized as the medium of the future, particularly as +- point-of-sale (POS), automated teller machine (ATM), automated clearing- house (ACV, and other electronic pay- * ment and settlement functions gain t 11 first introduced in mi&1983 was con- tinued successfully last year, with the ’ [ District handling more than onefourth of total Systemwide noncash volume. - This program appeals to financial insti- E I tutions that prefer not to sort their noncash items but rather to deposit a mixture of items payable both locally and in other Federal Reserve Districts.

Caeh and Other

Non-Priced Activities In addition to the innovations in +. priced services, the Sixth District con- e tinues to improve the efficiency of cash operations and to support the System’s e- efforts to provide increasingly automated * and higher quality services to the govem ment. The Dishkt is working with the Treasury Department on new cash e management services and on converting additional securities to book-entry form.

Over the past few years, new high ~ speed currency processing machines and standards have improved the quality of currency in circulation. A redesigned c fitness sensor is now being installed on

all existing equipment. We also are + participating in the test of a second generation currency system, with the prototype to be installed in Atlanta during the second quarter of 1985. 4

I c Economic Research and

Public Information c Our Research Department is com- 3 mitted to helping formulate and imple

ment monetary policy and adding to ~ our understanding of macroeconomic *r policy issues through high quality research. Top priorities are the evalua- tion of how monetary policy influences the regional, domestic, and interna- * I tional economies, and the development of policy alternatives. We continue our c longterm interest in the impact of a-& changing financial structure on regula- tory and monetary policies. Last year, .. the research effort was deepened through + greater use of quantitative methods, including work with a structural model of the U.S. economy. w v-1 one of the Atlanta Feds massive vault doors symbolizes the strength of the institution.

12 Meanwhile, the Bank is working to Act banks and branches and agencies communicate to the public effectively of foreign banks doing business in the through its publications, conferences, Sixth District changed little during the President Forrestal’s regular newspaper year. At yearend there were 106 inter column, and presentations delivered to national banking institutions in the Dk civic and professional groups by senior trict, 24 of them in Atlanta and 79 in the officers and economists. We seek to Miami area. foster public understanding of Bank and System responsibilities and objeo tives hughthe press as well as hugh our contacts with and publications for Diecount and Credit the academic and business communities. In addition to performing its normal The department‘s Economic Review, function of supplying seasonal and which won a national communications short-term adjustment credit, the Dis award in 1984, and our Southeastern count and Credit Department worked Economic Insight newsletter have proved in concert with other regulatory agencies to be popular conduits for channeling durinn the vear for the orderly resolution ? such &formation to the public. Those of p&ble& at eight failing ~mstitutions. publications analyze economic, finan- That was one more than the seven cia1 and business conditions nationally institutions assisted in 1983, when a and in the region. number of related problems arose in

Supervision and Regulation Our activities in this segment of our business have been shaped by the con- tinuing evolution of the nation’s finan- cial system and the rules governing it. Critical to this evolution is the continued restructuring of the system through the bank holding company form of organi- zation, which the Federal Reserve alone has responsibility for regulating. In the Sixth District, bank holding company activity was at record levels last year. We processed 150 applications from institutions seeking to form new holding companies and 165 applications relating to other changes such as mergers and acauistions of commercial banks .or noibank firms. Twelve new statechartered banks and one existing bank in the Sixth District were admitted to membership in the Federal Reserve System in 1984, with 13 applications still pending at

yemend. Since MCA-80 diminished Vereran compuairor meim t,regu4 nelps acqualnr Lneryi MlllWwU wlln fflnt: aupumur;areu puururyye Illnliuule r+x;euuy installed in the Print Shop to provide wider variety while speedin8 the composition process. 1 the resewe requirement &advantages - *--of membership the number of stke member banks in the Sixth District has eastern Tennessee. In the Sixth District - risen to 98, the most in recent history. all such cases in recent years have been *. On the international banking scene, handled hughwhat is generally called foreign debt problems and a rising dollar the “purchase and assumption” proce brought a slowdown after several years dure, which provides virtually uninter ILof rapid growth. The number of Edge rupted service to depositors.

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Kathy Clements of Corporate Accounting shares a book with skyearold Joey Bryan at Henrietta Egleston Hospital for Children in Atlanta, where Kathy pitchea in as a volunteer on weekends. 14 f L Corporate Citizenship: ;The-Challenge of Getting Involved

7 - We at the Atlanta Fed view ourselves even reduce crime. To date, the Bank as partners in various civiominded has become involved in such programs - corporate undertakings in the six south- as the Harper Magnet School for Finan-

4 eastern cities where we have offices. In cial Services, Inroads, Adopt-*Student, fact, our corporate philosophy state and the Atlanta Chamber of Commerce ment notes, “We take seriously the re Task Force on Education. ‘ sponsibilities of our corporate citizen- In the widely praised Harper Magnet - ship and actively encourage and support School program, which the Atlanta the civic and community involvement Fed helped create in 1982, high school -i of our staff.” students with proven academic com- While there are limitations on the petence and a desire to enter the finan- role that a quasi-public entity can play, cial field are given special support by - both social and business considerations * support the concept of community in- volvement The importance of corporate 4 interest in community affairs has been .L heightened in recent years because pri- vate businesses and citizens have been . called upon along with local govern- ments to assume a large share of support previously provided through federal government expenditures. Individual employees are free of the ? strictures that often limit an institution r- in its desire to “do good” Bank employees in Birmingham, Jacksonville, Miami, Nashville, and New Orleans, as well as - Atlanta, have involved themselves in projects as diverse as performing volun * teer work for a children’s hospital,

~ serving on emergency rescue units, helping feed the needy, counseling prison inmates, teaching illiterate adults to i read and coaching youth sports teams. We feel that a clearly legitimate area I Tour guide Monica Walker explains displays of rare coins and currency in the monetary museum, an Atlanta Fed exhibit , for community involvement, both on tracing the history of money. All of the Bank‘s offices host public tours. the part of the Bank and its individual employees, is in the realm of education- Atlanta’s banking community. Young encouraging and working to promote people selected from all over the city ~ excellence among superior students as are brought together in this “school 4 well as potential dropouts struggling within a school” where they are given with average classwork. Therefore, special financial services training by . much of the Bank’s community activity regular classroom teachers and bafik is directed toward this end. staff members. Each student is offered Fostering excellence in educational an internship at one of eight sponsoring , systems can benefit everybody. Employ- banks, as well as summer employment +ers can gain a better qualified labor at a financial institution following gradu- market to draw upon, and improved ation. The Atlanta Fed alone employed

~ access to jobs through schooling may 12 graduates last summer.

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Two internship. P 4 16 Our designated officer seeks to L “Inroads“ is a national organization that identifies, trains, and develops familiarize himself with economic talented minority college students inter and community development needs and Y ested in corporate careers in business programs within the District, and to t or engineering. The program’s objectives inform financial institutions how they are to provide experience and increase might involve themselves in relevant business opportunities for the youths, programs in their markets. He works while giving corporations an opportunity with the District‘s 20 Neighborhood to develop future employees. We em Housing Services corporations, partner ployed two Inroads interns last summer. ships of financial institutions, neighbor One student completed her third summer hood residents, and city governments of internship at the Bank, while the created to revitalize urban neighbor other finished her first summer work hoods. He has helped several organg experience and entered college in the zations by attending fun&raising events fall. for the contributing financial institutions The Bank also recruited volunleer one such affair was hosted by the employees qualified to work oneon- one with teenagers as part of the Adopt-a Student program. In this program, high school seniors in the lowest quartile of their classes are “adopted” by individuals $1 in business who encourage and help them after houps. The object is to mot& vate students to improve their grades, graduate from high school, and find employment Ten Atlanta Fed employees made commitments to the program for the 1984-85 school year. The Atlanta Fed also took part in an Education Task Force created by Atlam ta’s Chamber of Commerce. In one task 3 force project, schoolteachers who lacked L a computer background were given an eight-week course in the basics to

J help them more effectively instruct - students who were already computer knowledgeable. - One member of our staff lectures at L workshops sponsored by the Georgia Council on Education and serves as a Iayne Fox-Bryan, director of community relations, offers some communications pointers to Harper Magnet School trustee of the council, which develops students and Inroads interns. techniques and materials to help teachers give students an understanding of basic Miami Branch. A related initiative is economics. And, during 1984, high publishing “Opportunities,” a bimonthly school vocational and career counselors newsletter designed to inform banks of toured the Bank on Educators’ Day, opportunities for participation in local part of a program designed to encourage economic and community development young people to continue their studies. programs. , Not all of the Bank‘s community Our offices support such respected involvement energy is channeled into programs as United Way campaigns education. Our community affairs fune and Red Cross blood drives. Again, the tion was expanded during the past year Bank’s involvement must be limited, through the activities of a community since our charter precludes making affairs officer who serves as liaison corporate gifts to charitable organiza- between the District‘s financial institu- tions. Yet for years the Bank has sup *?ions and cities and various local or ported the United Way and the many ganizations. community agencies under its umbrella.

17 Officers and other staff members in our Individual employees in Jacksonville various offices participate in the annual spend off-duty hours working with such fun&raising campaign, serving as group organizations as the American Red and division managers. The Miami and Cross, the Boy Scouts of America, the r New Orleans Branches both provided Salvation Army, and the Special Olym- two "loaned executives" for the 1984 pics. Employees serve on volunteer fire fund drive, and the Atlanta office con departments and perform in community tributed one for that city's drive. Bank theater groups. rc officers serve on agency relations com- In Miami, employees enter into activl- mittees, overseeing the programs and ties ranging from chairing the West - expenditures of various organizations. Dade Chamber of Commerce-an organ ~ Bank employees contribute generously ization with more than 100 partici- to the United Way in OUT six cities, pating businesses-to working as a Big establishing a level of giving that has Brother or Big Sister in a program that ? fosters a personal relationship between - an adult and a oneparent child Various employees give their time to such organ - izations as the Urban League of Greater - Miami, the Inner City Children's Touring Dance Company, and the Sierra Club of _, South Florida. - The Nashville Branch has been hon- ored as an outstanding employer of the deaf, employing several deaf men and ., women. To enhance communication with deaf employees, sign language classes are conducted periodically by interpreters from the League for the Hearing Impaired. LI In New Orleans, Branch employees coordinate a child abuse and battered A womexi's program, conduct fudraising activities for a retarded children's special school, and counsel adolescents troubled by family problems or drug addiction. -' One employee serves with the Land, Air and Sea Emergency Rescue Unit, responding to disasters and emergency - Miami Branch employees Jack Finch, left, and Francisco Padilla check out a work schedule with Zenaida Hernandez at the United Way of Dade County, where Finch and Padda worked six weeks each as loaned executives. situations ranging from plane crashes J to hostage negotiations. captured many awards. More than 87 Why do we encourage such off-hours percent of our Atlanta office staff parti- activism by our employees? Community C cipates in the Charity Parity plan, a involvement's longterm benefits to an payroll deduction plan for charitable institution or a corporation often are giving. Total 1984 pledges increased by uncertain in the beginning. Yet, somei 15 percent and fair share giving rose by advantages are obvious. For example, 24 percent. Employees responded with involvement benefits the society in similar enthusiasm in the Bank's other which we work and live. Community offices. projects also help us identify talented,- ' An officer of the Birmingham Branch competent employees. Furthermore, if served as chairman of the Alabama an institution and its employees can Youth Football State Championship, help raise educational standards, up I which involved 1,200 youngsters and grade the lives of the underprivileged raised funds for King's Ranch, which and afflicted, and contribute to the , shelters mistreated children and unwed overall well-being of a locality's econ-+ mothers. omy, everyone will benefit.

18 i

L

Robert E. Heck, an officer in Supervision andRegulation shown bere in uniform to referee a high school football game, also coaches &la softball teams in his off houra

19 Board of Directors, 1984

Directors and Senior Officers JOHN H. WEITNAUER, JR. e CHAIRMAN Chairman and Chief Executive Officer r Richway -4 Atlanta, Georgia BRADLEY CURREY, JR. DEPUTY CHAIRMAN President

Rock-Tenn Company !- Norcross, Georgia I- I- DAN B. ANDREWS President a First National Bank Dickson, Tennessee a HAROLD B. BLACH, JR. President Blach's, Inc. Birmingham, Alabama GUY W. BOTTS Senior Partner Culverhouse, Botts, Mills & Cone Jacksonville, Florida JANE C. COUSINS President and Chief Executive Officer Merrill Lynch Realty/Cousins Miami, Florida 2 BERNARD F. SLIGER \ President Florida State University Tallahassee, Florida HORATIO C. THOMPSON President A Horatio Thompson Investment, Inc. 2 Baton Rouge, Louisiana MARY W. WALKER President The National Bank of Walton County Monroe, Georgia 6' I -- New Director for 1985 1984 Directors: Seated are Currey. left and Weitnauer. Standing, from left, are Blach, Federal Advisory Councilmember Y Searle. Cousins, Thompson, Walker, Andrews. Sliger, and Botts. E.B. ROBINSON, JR. -4 Chairman and Chief Executive Officer Deposit Guaranty National Bank Jackson, Mississippi c: >&

Federal Advisory Council

PHILIP F. SEARLE Chairman t4 Sun Banks, Inc. Orlando, Florida

20 Senior Officers Management Committee JOHN R. KERR ROBERT P. FORRESTAL Vice President JACK GUYNN First Vice President President B. FRANK KING Vice President and B. H. HARGETT JACK GUYNN Executive Vice President First Vice President Associate Director of Research ELY S. MATTER1 W. R. CALDWELL B. H. HARGETT Vice President Senior Vice President Executive Vice President RICHARD R. OLIVER CHARLES D. EAST W. R. CALDWELL Vice President Senior Vice President and Senior Vice president Comptroller JOHN M. WALLACE CHARLES D. EAST Vice President HARRY C. SCHIERING Senior Vice President and General Auditor Comptroller JEFFREY J. WELLS Vice President and H. TERRY SMITH HARRY C. SCHIERING Nashville Branch Manager Senior Vice President General Auditor EDMUND WILLINGHAM SHEILA TSCHINKEL Vice President and Senior Vice President and H. TERRY SMITH General Counsel Director of Research Senior Vice President SHEILA TSCHINKEL Senior Vice President and Director of Research

PATRICK K. BARRON Vice President and Miami Branch Manager WARDLYN BASSLER Vice President

HENRY BOURGAUX Vice President and New Orleans Branch Manager

HARRY BRANDT Corporate Secretary and Assistant to the President

FRANK J. CRAVEN I Vice President

W. M. DAVIS Vice President

DELMAR HARRISON Vice President and Atlanta Branch Manager

JAMES D. HAWKINS Vice President and Jacksonville Branch Manager ROBERT E. HECK Vice President

+-- FREDERICK R. HERR Vice President and - Birmingham Branch Manager Branch Directors, 1984

Birmingham Jacksonville Miami

MARTHA McINNIS JEROME P. KEUPER SUE McCOURT COBB CHAIRMAN CHAIRMAN CHAIRMAN President President Attorney EnviroSouth, Inc. Florida Institute of Technology Greenberg, Traurig, Askew, Hoffman, Montgomery, Alabama Melbourne, Florida Lipoff, Rosen and Quentel, P.A. Miami, Florida GEORGE C. BOONE, JR. G. MACK DOVE President and Chief Executive Officer EUGENE E. COHEN President Security First Federal Savings Chief Financial Officer and Treasurer AAA Cooper Transportation Company and Loan Association Howard Hughes Medical Institute Dothan, Alabama Daytona Beach, Florida Coconut Grove, Florida

GRADY GILLAM LEWIS A. DOMAN D. S. HUDSON, JR. Chairman President Chairman AmSouth Bank, N.A. Citizens and Peoples National Bank First National Bank and Gadsden, Alabama Pensacola, Florida Trust Company of Stuart Stuart, Florida E. F. KEEN, JR. SAMUEL RICHARDSON HILL, JR. Vice Chairman President ROBERT L. KESTER NCNB Bancorporation, Inc. Vice Chairman University of Alabama at Birmingham Bradenton, Florida Birmingham, Alabama Barnett Bank of South Florida, N.A. Pompano Beach, Florida CHARLES LEE PEERY E. WILLIAM NASH, JR. President Chairman South-Central Operations ROBERT D. RAPAPORT The First National Bank of Florence Prudential Life Insurance Principal Florence, Alabama Company of America The Rapaport Companies Jacksonville, Florida Palm Beach, Florida WILLIAM M. SCHROEDER Chairman and President JO ANN DOKE SMITH ROY VANDEGRIFT, JR. Central State Bank CmOwner President Calera, Alabama Smith Brothers Roy Van, Inc. Micanopy, Florida Pahokee. Florida

LOUIS J. WILLIE JOHN D. UIBLE Executive Vice President STEPHEN G. ZAHORIAN Chairman and Chief Executive Officer President Booker T. Washington Insurance Company Florida National Banks of Florida, Inc. Birmingham, Alabama Barnett Bank of Lee County, N.A. Jacksonville, Florida Fort Myers, Florida

New Directors for 1985 New Directors for 1985 New Directors for 1985 ANDREW A. ROBINSON WILLARD L. HURLEY ROBERT D. APELGREN Chairman and Chief Executive Officer Dean, College of Education and Human Services President First Alabama Bancshares, Inc. Apelgren Corporation Birmingham, Alabama University of North Florida Jacksonville, Florida Pahokee, Florida

A. G. TRAMMELL JOEL R. WELLS, JR. JAMES P. HERMES President President and Chief Executive Officer President and Chief Executive Officer Alabama Labor Council- AFGCIO Sun Banks, Inc. Bank of the Islands Birmingham, Alabama Orlando, Florida Sanibel, Florida

22 - Nashville

1 -. C. WARREN NEEL CHAIRMAN

~ Dean College of Business Administration -'The University of Tennessee Knoxvue, Tennessee

3

I CONDON S. BUSH - President __ Bush Brothers & Company Dandridge, Tennessee - d MICHAEL T. CHRISTIAN President and Chief Executive Officer Commerce Union Bank Greeneville 5 Greeneville, Tennessee

r SAMUEL H. HOWARD Vice President and Treasurer Hospital Corporation of America Nashville, Tennessee k In a scene repeated daiiy at our six Branch offices, an operator prepares money for processing on a hwspeed currency

8- machine that will verify the amount and screen out unfit bills and counterfeits.

ROBERT W. JONES Chairman and President New Orleans PHILIP K. LIVINGSTON - First National Bank Vice Chairman, President, and McMinnville, Tennessee SHARON A. PERLIS Chief Executive Officer Citizens National Bank 4 CHAIRMAN Hammond, Louisiana Attorney i Metairie, Louisiana OWEN G. SHELL, JR. President and Chief Executive Officer TOM B. SCOTT, JR. 2 First American National Bank of Nashville President and Chief Executive Officer .. Nashville, Tennessee JERRY W. BRENTS Unifirst Bank for Savings, F.A. President and Chief Executive Officer Jackson, Mississippi First Louisiana Holding Company Lafayette, Louisiana PATSY R. WILLIAMS ROOSEVELT STEPTOE Partner Professor of Economics Southern University J Rhyne Lumber Company CARL E. JONES, JR. Newport, Tennessee Baton Rouge Campus Chairman, President, and Baton Rouge, Louisiana Chief Executive Officer Merchants National Bank of Mobile 5 Mobile, Alabama New Director for 1985 ' New Director for 1985 JAMES G. BOYER * WILL A. HILDRETH LESLIE B. LAMPTON Chairman, President, and *sident and Chief Executive Officer President Chief Executive Officer First National Bank of Loudon County Ergon, Inc. Gulf National Bank at Lake Charles Lenoir City, Tennessee Jackson, Mississippi Lake Charles, Louisiana -I

23 Statement of Condition

ASSetS Decsmber31.1983 December 31,1984

Gold Certificate Account $ 371,000,000 $ 360,000,000

Special Drawing Rights Certificate Accwnt 161,000,000 161,000,000

Coin 42,238,437 49,655,950

Loans and Securities 3,870,336,372 4,Ol 8,821,491

Cash Items in Process of Collection 1,209,887,887 541,108,045

Bank Premises 34,189,340 39,275,879

Other Assets 394,674,961 437,619,842 lnterdistrict Settlement Account 35,376,273 2,276,686,836

Total Assets $6,118,703,270 $7,884,168,043

Liabiliii

Federal Reserve Notes $3,155,985,661 $5,216,469,381

Deposits* 1,578,055,351 1,756,695,061

Deferred Availability Cash Items 1,074,442,781 545,785,769

Other Liabilities 67,137,577 96,905,432 lnterdistrict Settlement Account 0 0

Total Liabilities $5,875,621,370 $7,615,855,643

capital Accarnts

Capital Paid In $ 121,540,950 $ 134,156,200

Surplus 121,540,950 134,l 56,200

Total Capital Accounts $ 243,081,900 $ 268,312,400

Total Liabilities and Capital Accounts $6,118,703,270 $7,884,168,043

'Includes Depository lnstiluton Acawnts collected Funds Due to Other F.R Banks USTreasurer - General Acawnt

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