Annual Report 2011

Table 10. Income and expenses of the Federal Reserve Banks, by Bank, 2011
Thousands of dollars

Item Total Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco
Current income
Interest income
Primary, secondary, and seasonal loans 266 8 73 14 2 9 13 47 16 32 22 11 19
Term Asset-Backed Securities Loan Facility 264,683 ... 264,683 ... ... ... ... ... ... ... ... ... ...
American International Group, Inc., net 408,716 ... 408,716 ... ... ... ... ... ... ... ... ... ...
Total loan interest income 673,665 8 673,472 14 2 9 13 47 16 32 22 11 19
Treasury securities 42,256,692 1,046,318 19,067,611 1,335,902 1,212,747 4,863,828 3,349,186 2,673,278 869,743 632,232 1,202,932 1,696,245 4,306,670
Government-sponsored enterprise debt securities 3,053,680 75,771 1,365,356 94,135 89,174 351,132 246,501 196,712 64,358 45,318 88,628 123,117 313,476
Federal agency and government-sponsored enterprise mortgage-backed securities 38,281,682 949,615 17,137,660 1,184,160 1,115,320 4,402,469 3,082,647 2,460,075 804,265 568,744 1,108,198 1,542,519 3,926,010
Foreign currency denominated assets 248,871 8,638 72,092 24,311 18,466 52,239 14,333 6,286 2,048 7,636 2,227 3,747 36,848
Central bank liquidity swaps 1 34,521 1,193 9,998 3,345 2,561 7,083 1,979 875 281 1,066 311 523 5,307
Total SOMA interest income 83,875,446 2,081,535 37,652,717 2,641,853 2,438,268 9,676,751 6,694,646 5,337,226 1,740,695 1,254,996 2,402,296 3,366,151 8,588,311
Total interest income 84,549,110 2,081,543 38,326,188 2,641,867 2,438,270 9,676,760 6,694,659 5,337,273 1,740,711 1,255,028 2,402,318 3,366,162 8,588,330
Priced services 477,371 ... 74,543 ... ... ... 327,082 75,746 ... ... ... ... ...
Compensation received for services provided 2 198,931 15,629 2,816 1,248 24,877 18,900 457 21,352 3,277 51,884 38,780 9,344 10,368
Securities lending fees 13,194 327 5,889 405 386 1,517 1,068 853 279 196 384 532 1,356
Other income 2,760 6 2,569 18 3 20 31 38 8 5 9 26 26
Total other income 692,256 15,962 85,817 1,671 25,266 20,437 328,638 97,989 3,564 52,085 39,173 9,902 11,750
Total current income 85,241,366 2,097,505 38,412,008 2,643,537 2,463,537 9,697,197 7,023,297 5,435,260 1,744,276 1,307,114 2,441,491 3,376,064 8,600,081
Current expenses
Interest expense on securities sold under agreements to repurchase 44,000 1,096 19,362 1,297 1,323 5,051 3,663 2,922 965 644 1,319 1,787 4,573
Interest on reserves 3 3,764,908 57,356 2,491,731 122,441 54,503 267,780 109,420 174,634 30,103 23,108 58,209 83,625 292,000
Interest on term deposits 4 6,266 20 2,747 939 5 1,251 2 534 47 51 36 13 620
Earnings credits costs 1,351 91 153 74 52 101 81 128 30 37 102 99 404
Personnel
Salaries and other personnel expenses 1,757,419 90,640 425,187 78,549 96,887 257,125 144,237 130,131 86,157 85,685 109,225 95,611 157,984
Retirement and other benefits 576,690 26,901 127,326 26,908 47,166 80,627 48,659 44,691 28,287 28,019 34,345 34,378 49,382
Net periodic pension expense 5 525,284 764 513,248 1,061 429 1,404 1,563 1,726 15 1,146 1,463 798 1,667
Administrative
Fees 174,405 3,129 44,144 7,559 3,878 64,880 18,539 8,096 12,663 2,563 2,048 2,817 4,090
Travel 85,138 2,898 12,506 3,156 4,975 14,004 9,093 9,551 5,265 3,496 5,883 4,801 9,511
Postage and other shipping costs 18,445 369 961 310 2,121 712 5,788 368 767 752 949 2,154 3,193
Communications 45,753 984 5,537 736 810 26,736 1,785 1,787 1,179 1,574 1,300 1,746 1,579
Materials and supplies 64,626 4,741 22,509 5,862 2,300 5,884 5,158 3,742 2,515 1,620 2,601 4,046 3,648
Building
Taxes on real estate 42,015 5,843 7,903 1,746 1,564 2,728 3,332 3,376 688 3,445 3,489 3,476 4,425
Property depreciation 126,221 10,574 20,653 5,612 9,337 14,310 9,808 15,091 7,629 4,090 7,802 10,916 10,401
Utilities 39,936 4,030 8,345 2,356 2,100 4,379 3,733 2,109 1,715 1,833 2,105 4,056 3,175
Rent 48,625 302 22,793 856 21 21,144 172 967 989 264 662 191 264
Other building 55,851 4,996 7,724 3,696 3,286 5,329 4,387 7,443 2,090 2,361 1,895 9,024 3,619
Equipment/software
Purchases 35,214 3,711 6,709 1,461 1,077 6,900 2,593 2,857 1,428 1,452 2,223 1,982 2,822
Rentals 3,849 287 1,708 238 338 134 495 459 22 10 15 41 102
Depreciation 87,677 5,280 10,140 4,863 3,019 36,157 4,835 5,164 3,006 1,827 4,095 3,873 5,419
Repairs and maintenance 61,297 4,372 6,190 3,041 2,696 19,626 6,822 3,821 1,688 1,519 2,388 3,333 5,802
Software 155,393 5,171 31,660 9,251 4,447 58,809 12,729 3,913 2,633 4,734 5,793 9,811 6,443
Other expenses
Compensation paid for service costs incurred2 198,931 ... 32,537 ... ... ... 158,247 8,146 ... ... ... ... ...
Other expenses 72,534 12,805 69,539 10,969 5,613 -251,970 40,109 52,884 67,922 19,646 6,541 20,720 17,755
Recoveries -141,710 -17,833 -18,509 -4,720 -5,064 -40,939 -11,407 -10,603 -4,430 -1,930 -6,478 -13,617 -6,179
Expenses capitalized 6 -48,127 -4,445 -17,344 -2,733 -2,651 3,712 -2,154 -1,482 -2,982 -6,168 -4,284 -549 -7,047
Total current expenses 7,801,991 224,082 3,855,459 285,528 240,231 605,874 581,689 472,456 250,390 181,778 243,725 285,132 575,651
Reimbursements -485,348 -32,563 -114,677 -35,424 -51,670 -46,013 -15,914 -4,665 -105,413 -28,435 -15,808 -22,903 -11,861
Net expenses 7,316,643 191,519 3,740,782 250,104 188,561 559,861 565,775 467,791 144,977 153,343 227,917 262,228 563,791
Profit and loss
Current net income 77,924,723 1,905,986 34,671,225 2,393,433 2,274,976 9,137,336 6,457,522 4,967,469 1,599,299 1,153,771 2,213,574 3,113,836 8,036,290
Additions to (+) and deductions from (-) current net income
Profit on sales of Treasury securities 2,258,051 55,517 1,050,091 77,351 60,995 260,782 167,869 134,095 42,738 34,703 60,066 89,306 224,538
Profit on sales of federal agency and government-sponsored enterprise mortgage-backed securities 9,709 239 4,515 333 262 1,121 722 577 184 149 258 384 965
Foreign currency gains (losses) 151,969 5,338 43,984 15,181 11,291 33,861 8,872 3,809 1,284 4,582 1,338 2,252 20,177
Dividends on preferred interests 46,987 ... 46,987 ... ... ... ... ... ... ... ... ... ...
Term Asset-Backed Securities Loan Facility unrealized losses 7 -83,835 ... -83,835 ... ... ... ... ... ... ... ... ... ...
Net income from consolidated variable interest entities 8 -356,570 ... -356,570 ... ... ... ... ... ... ... ... ... ...
Other additions 61,670 9 61,333 120 1 6 73 32 2 3 29 27 35
Total additions 2,087,981 61,103 766,504 92,986 72,549 295,770 177,536 138,513 44,208 39,437 61,691 91,970 245,715
Other deductions -71,983 -1 -61,301 0 -10,270 0 0 0 0 0 0 0 -411
Total deductions -71,983 -1 -61,301 0 -10,270 0 0 0 0 0 0 0 -411
Net addition to (+) current net income 2,015,998 61,102 705,203 92,986 62,279 295,770 177,536 138,513 44,208 39,437 61,691 91,970 245,304
Cost of unreimbursed Treasury services 8 ... 8 ... ... ... ... ... ... ... ... ... ...
Assessments by Board
Board expenditures 9 472,300 16,376 137,231 44,028 35,128 98,054 26,627 11,924 3,897 14,606 4,453 7,047 72,929
Cost of currency 648,798 31,741 129,494 34,543 34,468 54,337 95,116 61,114 19,591 12,526 22,845 60,551 92,471
Consumer Financial Protection Bureau 10 241,712 8,547 71,301 22,013 18,189 50,738 13,724 6,428 2,046 5,010 2,361 3,608 37,747
Office of Financial Research10 40,000 1,435 11,917 3,650 3,034 8,475 2,279 1,108 344 471 396 600 6,292
Net income before distributions 78,537,904 1,908,989 35,026,478 2,382,185 2,246,436 9,221,502 6,497,313 5,025,408 1,617,629 1,160,595 2,245,209 3,133,999 8,072,155
Change in funded status of benefit plans -1,161,848 621 -1,129,118 -1,490 25,406 -17,256 -11,612 -5,715 -1,210 -7,471 -6,834 -8,303 1,131
Comprehensive income before distributions 77,376,056 1,909,610 33,897,360 2,380,695 2,271,842 9,204,246 6,485,701 5,019,693 1,616,419 1,153,124 2,238,375 3,125,696 8,073,286
Dividends paid 1,577,284 55,639 470,489 143,799 118,576 330,244 89,753 42,456 13,266 27,962 15,562 23,656 245,884
Payments to U.S. Treasury (interest on Federal Reserve notes) 75,423,597 1,827,617 32,432,120 2,472,979 2,132,131 8,748,635 6,377,838 4,931,572 1,599,321 1,834,696 2,194,032 3,073,008 7,799,648
Transferred to/from surplus and change in accumulated other comprehensive income 375,175 26,354 994,754 -236,082 21,135 125,368 18,109 45,666 3,834 -709,531 28,782 29,029 27,755
Surplus, January 1 26,524,057 916,618 7,682,284 2,569,208 1,967,519 5,438,856 1,519,966 671,991 216,166 819,267 238,767 401,849 4,081,565
Surplus, December 31 26,899,231 942,973 8,677,037 2,333,126 1,988,654 5,564,224 1,538,076 717,658 219,999 109,736 267,550 430,878 4,109,320

Note: Components may not sum to totals because of rounding.

1. Represents interest income recognized on swap agreements with foreign central banks. Return to table

2. The Federal Reserve Bank of Atlanta (FRBA) has overall responsibility for managing the Reserve Banks' provision of check and automated clearinghouse (ACH) services and recognizes total System revenue for these services. The Federal Reserve Bank of New York (FRBNY) has overall responsibility for managing the Reserve Banks' provision of Fedwire funds transfer and securities transfer services, and recognizes the total System revenue for these services. The Federal Reserve Bank of Chicago (FRBC) has overall responsibility for managing the Reserve Banks' provision of electronic access services to depository institutions, and recognizes the total System revenue for these services. The FRBA, the FRBNY, and the FRBC compensate the other Reserve Banks for the costs incurred in providing these services. Return to table

3. In October 2008, the Reserve Banks began to pay interest to depository institutions on qualifying balances held at the Federal Reserve Banks. Return to table

4. In April 2010, the Reserve Banks began to pay interest on term deposits under the Term Deposit Facility. Return to table

5. Reflects the effect of the Financial Accounting Standards Board's Codification Topic (ASC 715) Compensation - Retirement Benefits. The System Retirement Plan for employees is recorded on behalf of the System on the books of the FRBNY. Net pension expense for the System, which was $495,447 thousand, is recorded in the books of the FRBNY. The Retirement Benefit Equalization Plan and the Supplemental Employee Retirement Plan are recorded by each Federal Reserve Bank. Return to table

6. Includes expenses for labor and materials capitalized and depreciated or amortized as charges to activities in the periods benefited. Return to table

7. Represents the valuation adjustment for Term Asset-Backed Securities Loan Facility (TALF) loans, which are recorded at fair value. In addition to the valuation adjustment, earnings on TALF loans include interest income of $265 million, and the FRBNY's allocated share of TALF LLC's net income. Return to table

8. Represents the portion of the consolidated variable interest entities' net income recorded by the FRBNY. The amount includes interest income, interest expenses, realized and unrealized gains and losses, and professional fees. Return to table

9. For additional details, see the "Board of Governors Financial Statements" in the "Federal Reserve System Audits" section of this report. Return to table

10. The Board of Governors assesses the Reserve Banks to fund the operations of the Consumer Financial Protection Bureau and Office of Financial Research. These assessments are allocated to each Reserve Bank based on each Reserve Bank's capital and surplus balances as of the most recent quarter. Return to table

... Not applicable.

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Last update: July 11, 2012