FRB: Annual Report 2006, Statistical Table 10: Income and Expenses of the Federal Reserve Banks, by Bank, 2006

10. Income and Expenses of the Federal Reserve Banks, by Bank, 2006
Thousands of dollars
Item	Total	Boston	New York	Philadelphia	Cleveland	Richmond	Atlanta	Chicago	St. Louis	Minneapolis	Kansas City	Dallas	San Francisco
Current Income
Loans	12,038	551	1,597	14	478	412	431	3,031	1,112	2,582	1,159	164	506
U.S. Treasury securities	36,452,265	1,712,534	14,520,198	1,454,413	1,511,710	2,861,861	2,888,396	3,216,671	1,111,823	721,055	1,021,749	1,621,236	3,810,619
Foreign currencies	368,905	12,756	103,272	19,564	28,793	97,807	23,987	24,389	4,364	6,959	4,866	4,254	37,893
Priced services	908,363	0	65,846	0	0	0	787,847	54,670	0	0	0	0	0
Compensation received for check services provided¹	572,329	46,466	37,091	32,272	67,696	44,012	469	58,784	21,996	74,126	70,644	59,750	59,024
Other	96,527	2,395	61,125	1,918	2,278	7,665	4,474	4,488	1,593	910	1,266	1,944	6,472
Total	38,410,427	1,774,702	14,789,129	1,508,181	1,610,954	3,011,757	3,705,604	3,362,033	1,140,888	805,632	1,099,685	1,687,348	3,914,513

Current Expenses
Salaries and other personnel expenses	1,407,617	76,544	286,428	67,218	86,172	191,575	129,149	108,688	73,743	74,153	91,041	83,001	139,904
Retirement and other benefits	427,673	19,968	81,799	22,285	25,881	64,130	41,586	32,966	22,130	23,075	22,588	28,771	42,494
Net periodic pension benefit expense²	65,601	1,071	57,394	374	534	760	1,295	402	626	720	762	475	1,187
Fees	114,852	2,860	9,949	1,422	4,713	59,317	8,064	5,974	9,225	1,553	4,189	3,688	3,897
Travel	67,247	2,988	8,717	2,356	4,482	9,829	7,882	6,851	3,591	3,042	4,871	3,911	8,728
Software expenses	142,574	4,174	18,653	8,775	23,215	53,282	3,460	3,641	7,625	3,230	4,220	4,780	7,518
Postage and other shipping costs	94,173	1,596	3,489	1,815	5,904	3,334	57,295	3,954	2,357	2,860	2,053	3,810	5,706
Communications	39,339	2,036	3,193	513	717	23,241	1,648	1,427	1,279	1,036	1,081	1,514	1,655
Materials and supplies	55,909	3,532	8,945	3,762	5,255	5,897	6,709	4,467	2,669	2,440	2,962	4,558	4,714

Building expenses
Taxes on real estate	33,260	4,572	4,841	1,551	1,886	2,232	3,197	3,507	518	3,153	1,206	3,366	3,230
Property depreciation	94,732	5,884	17,604	4,056	7,570	8,496	9,130	11,083	5,150	4,679	4,166	8,527	8,388
Utilities	38,389	3,653	7,444	2,787	2,550	3,621	3,806	2,456	1,734	1,894	794	4,358	3,291
Rent	42,392	1,261	16,021	371	598	14,272	622	2,423	1,708	251	3,653	159	1,053
Other	34,195	1,277	6,661	1,775	3,177	3,399	3,925	4,568	1,005	1,472	485	4,016	2,434

Equipment
Purchases	30,100	2,484	5,507	1,023	1,537	6,457	2,455	1,874	1,449	1,730	2,538	1,292	1,754
Rentals	4,160	266	1,873	350	233	286	393	300	182	22	42	53	160
Depreciation	96,727	4,737	8,600	5,115	5,749	35,919	8,747	4,430	3,325	2,759	4,893	5,090	7,364
Repairs and maintenance	85,982	5,023	9,559	4,693	6,316	18,944	10,670	7,009	2,990	2,470	3,212	5,601	9,495

Earnings-credit costs	276,389	12,765	80,953	12,508	23,233	52,610	17,434	26,003	5,100	5,329	8,173	6,080	26,199
Compensation paid for check services costs incurred¹	572,329	0	29,073	0	0	0	543,255	0	0	0	0	0	0
Other	79,957	23,526	57,522	11,633	13,559	-256,628	19,562	42,951	75,530	22,613	17,538	36,101	16,050
Recoveries	-92,292	-13,459	-11,060	-2,409	-3,112	-29,564	-3,985	-8,758	-1,867	-1,056	-3,866	-7,025	-6,131
Expenses capitalized³	-21,075	-1,270	-9,580	-315	0	-3,041	0	-456	-2,372	-384	-652	-705	-2,301

Total	3,690,228	165,488	703,586	151,657	220,173	268,368	876,298	265,759	217,697	157,042	175,949	201,422	286,791
Reimbursements	-426,384	-23,368	-85,297	-30,547	-59,375	-28,208	-14,613	-4,646	-115,598	-26,347	-10,472	-13,686	-14,226
Net expenses	3,263,844	142,120	618,289	121,110	160,798	240,159	861,685	261,113	102,100	130,694	165,476	187,736	272,564

Profit and Loss
Current net income	35,146,583	1,632,582	14,170,841	1,387,071	1,450,157	2,771,597	2,843,919	3,100,920	1,038,788	674,938	934,209	1,499,612	3,641,949

Additions to and deductions from (-) current net income⁴
Profits on foreign exchange transactions	1,185,560	31,981	330,788	65,609	91,326	322,377	79,152	78,502	13,225	22,097	15,658	13,679	121,167
Other additions	7,286	7	23	2	0	3	20	44	0	0	1,291	0	5,896
Total additions	1,192,847	31,989	330,811	65,610	91,326	322,380	79,172	78,546	13,225	22,097	16,949	13,679	127,063
Interest expense on reverse repurchase agreements	-1,342,144	-65,129	-505,075	-55,771	-57,659	-109,366	-110,361	-122,680	-42,409	-27,460	-38,987	-61,610	-145,636
Other deductions	-9,550	0	0	0	0	0	0	-610	-555	0	-8,386	0	0
Total deductions	-1,351,694	-65,129	-505,075	-55,771	-57,659	-109,367	-110,361	-123,289	-42,964	-27,460	-47,372	-61,610	-145,636
Net addition to or deduction from (-) current net income	-158,847	-33,141	-174,264	9,840	33,667	213,013	-31,189	-44,743	-29,738	-5,363	-30,424	-47,931	-18,573

Cost of unreimbursed Treasury services	-2	0	1	-3	0	0	0	0	0	0	0	0	0

Assessments by Board
Board expenditures⁵	301,014	7,379	81,676	21,904	22,535	80,873	20,742	19,585	3,254	5,427	3,874	3,688	30,075
Cost of currency	491,962	31,062	106,608	29,515	23,255	42,241	65,067	51,165	17,276	12,383	17,174	24,924	73,291

Net income before payment to U.S. Treasury	34,194,762	1,560,999	13,808,291	1,345,494	1,438,034	2,863,497	2,726,921	2,985,426	988,520	651,765	882,737	1,423,068	3,520,010

Dividends paid	871,255	21,592	221,339	80,190	63,285	240,681	64,625	52,280	9,205	15,064	10,502	11,959	80,533
Payments to U.S. Treasury (interest on Federal Reserve notes)	29,051,678	1,453,044	11,977,585	175,737	1,279,262	1,764,199	2,251,659	2,910,601	935,913	594,235	864,852	1,323,733	3,520,859

Transferred to/from surplus	4,271,828	86,363	1,609,367	1,089,567	95,487	858,617	410,636	22,546	43,402	42,466	7,382	87,377	-81,382
Adjustments to surplus⁶	-1,848,716	-7,094	-1,567,462	-23,790	-22,222	-72,769	-26,515	-40,756	-21,196	-12,026	-5,795	-28,263	-20,829

Surplus, January 1	12,901,176	316,824	3,685,179	744,048	1,013,470	3,307,452	892,166	876,301	144,000	245,322	174,757	152,628	1,349,029
Surplus, December 31	15,324,288	396,093	3,727,084	1,809,826	1,086,735	4,093,301	1,276,288	858,091	166,206	275,762	176,344	211,742	1,246,817

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

1. During 2005, the Federal Reserve Bank of Atlanta was assigned the overall responsibility for managing the Reserve Banks' provision of check services and recognizes total System check revenue on its Statements of Income. In 2006, this policy was extended to ACH services managed by the Federal Reserve Bank of Atlanta, as well as to Fedwire funds transfer and securities transfer services, which are managed by the Federal Reserve Bank of New York. The Federal Reserve Bank of Atlanta and the Federal Reserve Bank of New York compensate the other Reserve Banks for the costs incurred in providing these services. Return to table

2. Reflects the effect of Financial Accounting Standards Board Statement of Financial Accounting Standards No. 87, Employers' Accounting for Pensions (SFAS 87). The System Retirement Plan for employees is recorded on behalf of the System on the books of the Federal Reserve Bank of New York, resulting in a increase in expenses of $43,150 thousand. The expenses related to the Retirement Benefit Equalization Plan and the Supplemental Employee Retirement Plan are recorded by each Federal Reserve Bank. Return to table

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

4. Includes reimbursement from the U.S. Treasury for uncut sheets of Federal Reserve notes, gains and losses on the sale of Reserve Bank buildings, counterfeit currency that is not charged back to the depositing institution, and stale Reserve Bank checks that are written off. Return to table

5. For additional details, see the chapter "Board of Governors Financial Statements." Return to table

6. The implementation of FAS 158 in 2006 required an adjustment in the amount of $1,848,716 thousand to accumulated other comprehensive income, which is reported as a component of surplus. Return to table

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