Annual Report 2010

Table 10. Income and expenses of the Federal Reserve Banks, by Bank, 2010
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
Term auction credit, primary, secondary, and seasonal loans 50,319 907 43,424 575 161 482 450 1,168 291 186 201 520 1,955
Term Asset-Backed Securities Loan Facility 750,456 ... 750,456 ... ... ... ... ... ... ... ... ... ...
American International Group, Inc., net 2,727,790 ... 2,727,790 ... ... ... ... ... ... ... ... ... ...
Treasury securities 26,372,927 621,472 10,632,686 557,078 937,542 2,419,554 2,689,596 2,234,404 779,979 382,537 985,982 1,155,131 2,976,967
Government-sponsored enterprise debt securities 3,510,486 82,393 1,414,384 73,729 125,094 317,863 359,406 299,192 104,547 51,074 131,828 154,102 396,872
Federal agency and government-sponsored enterprise mortgage-backed securities 44,839,169 1,055,222 18,073,722 945,345 1,595,274 4,095,868 4,578,771 3,806,452 1,329,195 651,045 1,678,848 1,965,408 5,064,020
Foreign currency denominated assets 222,801 8,266 64,219 24,358 16,584 62,137 14,011 5,553 2,099 5,959 1,852 3,047 14,715
Central bank liquidity swaps1 11,547 437 3,263 1,264 857 3,234 766 313 110 276 101 156 771
Other investments2 441 11 178 9 16 42 45 37 13 6 16 19 50
Total interest income 78,485,935 1,768,708 33,710,121 1,602,358 2,675,528 6,899,180 7,643,045 6,347,119 2,216,234 1,091,083 2,798,828 3,278,383 8,455,350
Priced services 566,735 ... 74,853 ... ... ... 420,010 71,871 ... ... ... ... ...
Compensation received for services provided3 233,565 19,363 3,742 7,015 27,058 19,788 438 24,892 3,762 51,988 41,887 13,379 20,252
Securities lending fees 6,638 155 2,671 138 238 585 685 573 200 97 252 293 753
Other income 8,065 7 7,807 115 5 22 19 22 6 15 7 23 16
Total current income 79,300,937 1,788,232 33,799,194 1,609,626 2,702,829 6,919,575 8,064,197 6,444,475 2,220,202 1,143,184 2,840,974 3,292,076 8,476,372
Current expenses
Interest expense on securities sold under agreements to repurchase 94,465 2,290 38,264 2,077 3,300 9,479 9,364 7,661 2,654 1,340 3,419 4,071 10,545
Interest on reserves and term deposits4 2,683,942 42,217 1,412,598 81,963 41,025 446,346 98,478 110,868 27,871 41,070 63,955 51,200 266,352
Earnings credits costs 2,730 184 361 147 104 206 194 253 67 94 107 225 787
Personnel
Salaries and other personnel expenses 1,673,334 86,014 406,186 74,811 91,909 237,445 144,628 122,587 82,328 80,019 99,584 91,061 156,762
Retirement and other benefits 554,448 27,919 118,185 28,582 36,977 75,589 49,825 42,289 27,572 25,726 30,002 34,215 57,567
Net periodic pension expense5 528,936 1,511 512,447 1,401 756 1,448 1,740 1,645 1,328 1,312 1,085 846 3,417
Administrative
Fees 198,351 2,547 65,704 5,154 3,039 63,144 25,920 7,291 10,110 2,659 6,278 2,512 3,994
Travel 76,471 3,003 11,528 2,690 4,067 12,479 8,478 8,248 4,608 3,204 5,210 4,337 8,620
Postage and other shipping costs 30,168 322 1,146 346 2,224 763 17,931 440 768 518 920 1,433 3,358
Communications 46,072 864 5,479 682 818 26,741 1,983 1,910 1,313 1,533 1,137 1,790 1,823
Materials and supplies 58,669 3,583 20,107 4,758 2,912 5,358 5,087 3,805 2,287 1,309 2,390 3,492 3,581
Building
Taxes on real estate 41,037 5,898 7,852 1,589 1,918 2,398 3,385 3,432 664 2,701 3,681 3,255 4,264
Property depreciation 120,283 9,337 18,903 5,679 7,751 13,877 11,231 13,887 7,481 4,299 7,642 10,002 10,193
Utilities 40,851 3,992 8,438 2,587 2,421 4,240 3,827 2,251 1,793 1,841 2,033 4,202 3,224
Rent 46,177 1,446 22,471 913 22 17,135 351 936 1,020 271 738 210 663
Other building 49,680 3,963 7,665 3,827 3,696 4,944 4,041 6,944 2,270 1,909 1,814 5,224 3,382
Equipment/software
Purchases 30,096 4,134 5,643 1,109 1,119 6,342 1,232 2,120 1,303 1,419 1,806 2,346 1,523
Rentals 3,502 295 1,410 372 333 164 453 289 25 9 12 48 92
Depreciation 86,433 5,123 12,108 4,686 3,507 32,169 4,335 4,321 2,835 1,738 4,709 4,478 6,423
Repairs and maintenance 61,768 4,156 7,140 2,906 3,002 17,386 7,811 4,369 1,732 1,503 2,195 3,450 6,116
Software 171,401 5,046 32,277 8,588 3,306 57,792 10,227 3,903 2,983 4,961 5,998 9,032 27,288
Other expenses
Compensation paid for service costs incurred3 233,565 ... 31,571 ... ... ... 193,246 8,748 ... ... ... ... ...
Other expenses 68,678 11,712 58,816 10,179 3,862 -243,911 49,433 50,048 67,792 18,393 5,400 17,119 19,835
Recoveries -139,681 -17,183 -17,320 -4,398 -5,212 -36,807 -13,821 -12,037 -3,646 -2,306 -7,324 -12,500 -7,127
Expenses capitalized6 -34,424 -3,266 -10,626 -2,037 -1,381 -1,981 -1,254 -2,018 -653 -5,592 -1,029 -1,384 -3,202
Total current expenses 6,726,952 205,107 2,778,353 238,611 211,474 752,746 638,125 394,191 246,505 189,931 241,761 240,664 589,481
Reimbursements -456,532 -30,041 -114,539 -34,065 -45,789 -39,664 -16,234 -3,778 -105,066 -27,317 -12,368 -14,286 -13,386
Net expenses 6,270,420 175,066 2,663,814 204,547 165,685 713,083 621,891 390,413 141,439 162,614 229,393 226,378 576,095
Profit and loss
Current net income 73,030,517 1,613,166 31,135,381 1,405,080 2,537,144 6,206,492 7,442,306 6,054,061 2,078,764 980,570 2,611,581 3,065,698 7,900,277
Additions to (+) and deductions from (-) current net income
Profit on sales of federal agency and government-sponsored enterprise mortgage-backed securities 782,267 17,566 312,949 15,413 28,593 60,734 83,443 70,928 25,037 11,753 30,782 35,165 89,903
Foreign currency gains (losses) 554,079 20,460 160,426 60,558 41,269 154,371 34,403 13,534 5,202 15,189 4,556 7,603 36,508
Dividends on preferred interests 1,279,041 ... 1,279,041 ... ... ... ... ... ... ... ... ... ...
Term Asset-Backed Securities Loan Facility unrealized losses7 -436,045 ... -436,045 ... ... ... ... ... ... ... ... ... ...
Net income from consolidated variable interest entities8 7,560,077 ... 7,560,077 ... ... ... ... ... ... ... ... ... ...
Other additions 115,968 3 115,882 16 1 2 ... 24 1 ... 1 21 17
Total additions 9,855,388 38,029 8,992,331 75,987 69,864 215,107 117,846 84,487 30,240 26,942 35,338 42,789 126,428
Other deductions -109,818 -1 -103,067 0 0 0 0 -4 0 0 0 0 -6,746
Total deductions -109,818 -1 -103,067 0 0 0 0 -4 0 0 0 0 -6,746
Net addition to (+) current net income 9,745,570 38,028 8,889,264 75,987 69,864 215,107 117,846 84,483 30,240 26,942 35,338 42,789 119,682
Cost of unreimbursed Treasury services 7 ... 7 ... ... ... ... ... ... ... ... ... ...
Assessments by Board
Board expenditures9 422,200 15,267 122,485 45,652 31,095 109,294 25,600 10,069 3,902 11,970 3,421 5,920 37,525
Cost of currency 622,846 29,390 128,669 32,047 33,558 60,546 91,868 59,147 20,861 14,168 22,883 41,805 87,903
Consumer Financial Protection Bureau and Office of Financial Research10 42,286 1,500 12,305 4,530 3,082 10,131 2,521 1,016 374 1,222 341 605 4,658
Net income before distributions 81,688,747 1,605,037 39,761,179 1,398,838 2,539,273 6,241,627 7,440,163 6,068,312 2,083,866 980,153 2,620,274 3,060,157 7,889,873
Change in funded status of benefit plans 45,881 9,083 27,560 6,091 -17,656 10,870 5,335 -3,181 1,031 1,479 1,638 4,202 -570
Comprehensive income before distributions 81,734,628 1,614,120 39,788,739 1,404,929 2,521,617 6,252,497 7,445,498 6,065,131 2,084,897 981,632 2,621,912 3,064,359 7,889,303
Dividends paid 1,582,785 55,160 455,362 170,590 114,996 348,978 93,754 38,615 13,619 46,470 12,877 23,608 208,755
Payments to U.S. Treasury (interest on Federal Reserve notes) 79,268,124 1,586,761 39,092,783 1,467,087 2,349,504 7,604,335 7,412,843 5,974,018 2,095,393 827,941 2,579,833 2,991,405 5,286,222
Transferred to/from surplus and change in accumulated other comprehensive income 883,724 -27,799 240,593 -232,745 57,117 -1,700,816 -61,099 52,497 -24,115 107,222 29,201 49,344 2,394,327
Surplus, January 1 25,640,333 944,417 7,441,692 2,801,953 1,910,403 7,139,672 1,581,065 619,494 240,281 712,046 209,566 352,505 1,687,238
Surplus, December 31 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

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. Represents interest income earned on short-term investments related to the federal agency and government-sponsored enterprise mortgage-backed securities portfolio. Return to table

3. The Federal Reserve Bank of Atlanta has overall responsibility for managing the Reserve Banks' provision of check and ACH services and recognizes total System revenue for these services. The Federal Reserve Bank of New York 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 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 Federal Reserve Bank of Atlanta, the Federal Reserve Bank of New York, and the Federal Reserve Bank of Chicago compensate the other Reserve Banks for the costs incurred in providing these services. Return to table

4. In October 2008, the Reserve Banks began to pay interest to depository institutions on qualifying balances held at the Federal Reserve Banks. 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 Federal Reserve Bank of New York. Net pension expense for the System, which was $492,956 thousand. is recorded in the books of the Federal Reserve Bank of New York. 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 TALF loans, which are recorded at fair value. In addition to the valuation adjustment, earnings on TALF loans include interest income of $750 million, administrative fees of $13 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 Federal Reserve Bank of New York. 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 (CFPB) and Office of Financial Research (OFR). 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. Return to table

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Last update: July 5, 2011