Guide to Statistical Releases and Special Tables.
STATISTICAL RELEASES--List Published Semiannully, with Latest
Bulletin Reference
Issue Page
Anticipated schedule of release dates for
periodic releases December 1999 A72
SPECIAL TABLES---Data Published Irregularly,
with Latest Bulletin Reference
Title and Date Issue Page
Assets and liabilities of commercial banks
September 30, 1998 February 1999 A64
December 31, 1998 May 1999 A64
March 31, 1999 August 1999 A64
June 30, 1999 November 1999 A64
Terms of lending at commercial banks
November 1998 February 1999 A66
February 1999 May 1999 A66
May 1999 August 1999 A66
August 1999 November 1999 A66
Assets and liabilities of U.S. branches and
agencies of foreign banks
September 30, 1998 February 1999 A72
December 31, 1998 May 1999 A72
March 31, 1999 August 1999 A72
June 30, 1999 November 1999 A72
Pro forma balance sheet and income statements
for priced service operations
March 31, 1999 July 1999 A64
June 30, 1999 October 1999 A64
September 30, 1999 January 2000 A64
Residential lending reported under the Home
Mortgage Disclosure Act
1997 September 1998 A64
1998 September 1999 A64
Disposition of applications for private
mortgage insurance
1997 September 1998 A72
1998 September 1999 A73
Small loans to business and forms
1997 September 1998 A76
1998 September 1999 A76
Community development lending reported under
the Community Reinvestment Act
1997 September 1998 A79
1998 September 1999 A79
4.31 PRO FORMA FINANCIAL STATEMENTS Pro forma financial statements A firm's financial statements as adjusted to reflect a projected or planned transaction. "What-if" analysis. FOR FEDERAL RESERVE PRICED SERVICES A. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma balance sheet Millions of dollars
Item Sept. 30, 1999
Short-term assets (Note 1)
Imputed reserve requirement on clearing 680.5
balances
Investment in marketable securities 6,124.5
Receivables 70.7
Materials and supplies 4.3
Prepaid expenses 21.0
Items in process of collection 3,532.6
Total short-term assets 10,433.7
Long-term assets (Note 2)
Premises 418.8
Furniture and equipment 145.7
Leases and leasehold improvements 40.9
Prepaid pension costs 516.4
Total long-term assets 1,121.8
Total assets 11,555.5
Short-term liabilities
Clearing balances and balances arising from
early credit of uncollected items 7,076.8
Deferred-availability items 3,260.9
Short-term debt 96.0
Total short-term liabilities 10,433.7
Long-term liabilities
Obligations under capital leases 0.0
Long-term debt 225.2
Postretirement/postemployment benefits 215.9
obligation
Total long-term liabilities 441.1
Total liabilities 10,874.7
Equity 680.7
Total liabilities and equity (Note 3) 11,555.5
Item Sept. 30, 1998
Short-term assets (Note 1)
Imputed reserve requirement on clearing 655.7
balances
Investment in marketable securities 5,901.3
Receivables 68.6
Materials and supplies 4.5
Prepaid expenses 17.1
Items in process of collection 4,169.0
Total short-term assets 10,816.4
Long-term assets (Note 2)
Premises 396.4
Furniture and equipment 126.0
Leases and leasehold improvements 22.9
Prepaid pension costs 415.5
Total long-term assets 960.9
Total assets 11,777.3
Short-term liabilities
Clearing balances and balances arising from
early credit of uncollected items 6,146.8
Deferred-availability items 4,579.2
Short-term debt 90.4
Total short-term liabilities 10,816.4
Long-term liabilities
Obligations under capital leases 0.0
Long-term debt 190.9
Postretirement/postemployment benefits 214.6
obligation
Total long-term liabilities 405.5
Total liabilities 11,221.9
Equity 555.5
Total liabilities and equity (Note 3) 11,777.3
NOTE. Components may not sum to totals because of rounding. The priced services financial statements consist of these tables and the accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. notes. (1) SHORT-TERM Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. ASSETS The imputed Attributed vicariously. In the legal sense, the term imputed is used to describe an action, fact, or quality, the knowledge of which is charged to an individual based upon the actions of another for whom the individual is responsible rather than on the individual's reserve requirement on clearing balances held at Reserve Banks by depository institutions Depository institution A financial institution that obtains its funds mainly through deposits from the public. This includes commercial banks, savings and loan associations, savings banks and credit unions. reflects a treatment comparable to that of compensating balances Compensating balance An excess balance that is left in a bank to provide indirect compensation for loans extended or services provided. compensating balance held at correspondent banks Correspondent bank Bank that accepts deposits of, and performs services for, another bank (called a respondent bank); in most cases, the two banks are in different cities. by respondent In Equity practice, the party who answers a bill or other proceeding in equity. The party against whom an appeal or motion, an application for a court order, is instituted and who is required to answer in order to protect his or her interests. institutions. The reserve requirement imposed on respondent balances must be held as vault cash Vault cash Cash kept on hand in a depository institution's vault to meet day-to-day business needs, such as cashing checks for customers; can be counted as a portion of the institution's required reserves. or as nonearning balances maintained at a Reserve Bank; thus, a portion of priced services clearing balances held with the Federal Reserve is shown as required reserves Required reserves The dollar amounts, based on reserve ratios, that banks are required to keep on deposit at a Federal Reserve Bank. required reserves on the asset side of the balance sheet. The remainder of clearing balances is assumed to be invested in three-month Treasury bills, shown as investment in marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has . Receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed are (1) amounts due the Reserve Banks for priced services and (2) the share of suspense-account and difference-account balances related to priced services. Materials and supplies are the inventory value of short-term assets. Prepaid expenses Prepaid Expense An asset that arises on a balance sheet because of the payment of something in advance (prepayment). Services for the payment will be received in the near future. include salary advances and travel advances for priced-service personnel. Items in process of collection is gross Federal Reserve cash items in process of collection (CIPC CIPC Cast-In-Place Concrete CIPC Chlorophenyl Isopropyl Carbamate (sprout supressant for potatoes) CIPC Cisco Ip Communicator ) stated on a basis comparable to that of a commercial bank. It reflects adjustments for intra-System items that would otherwise be double-counted on a consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Federal Reserve balance sheet; adjustments for items associated with non-priced items, such as those collected for government agencies; and adjustments for items associated with providing fixed availability or credit before items are received and processed. Among the costs to be recovered under the Monetary Control Act is the cost of float, or net CIPC during the period (the difference between gross CIPC and deferred-availability items which is the portion of gross CIPC that involves a financing cost), valued at the federal funds rate Federal Funds Rate The interest rate at which a depository institution lends immediately available funds (balances at the Federal Reserve) to another depository institution overnight. . (2) LONG-TERM ASSETS Long-Term Assets 1. Reported on the balance sheet, it's the value of a company's property, equipment and other capital assets, less depreciation. 2. A stock, bond or other asset that you plan on holding in your portfolio for a lengthy period of time. Consists of long-term assets used solely in priced services, the priced-services portion of long-term assets shared with nonpriced services, and an estimate of the assets of the Board of Governors used in the development of priced services. Effective Jan. 1, 1987, the Reserve Banks implemented the Financial Accounting Standards Board's Statement of Financial Accounting Standards No. 87, Employers' Accounting for Pensions (SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 87). Accordingly, the Federal Reserve Banks recognized credits to expenses of $24.9 million in the third quarter of 1999, $32.3 million in the second quarter of 1999, $21.9 million in the first quarter of 1999, $20.4 million in the third quarter of 1998, $28.7 million in the second quarter of 1998, and $16.2 million in the first quarter of 1998, and corresponding increases in this asset account. (3) LIABILITIES AND EQUITY Under the matched-book capital structure for assets that are not "self-financing self-financing adj → autofinanziado self-financing self adj → selbstfinanzierend ," short-term assets are financed with short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. . Long-term assets are financed with long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. and equity in a proportion equal to the ratio of long-term debt to equity for the fifty largest bank holding companies, which are used in the model for the private-sector adjustment factor (PSAF PSAF Private Sector Adjustment Factor ). The PSAF consists of the taxes that would have been paid and the return on capital that would have been provided had priced services been furnished fur·nish tr.v. fur·nished, fur·nish·ing, fur·nish·es 1. To equip with what is needed, especially to provide furniture for. 2. by a private-sector firm. Other short-term liabilities include clearing balances maintained at Reserve Banks and deposit balances arising from float. Other long-term liabilities Other Long-Term Liabilities A balance sheet item that includes obligations that do not currently require interest payments. Notes: This would include items such as remaining leases, future employee benefits and deferred taxes. consist of obligations on capital leases. 4.31 PRO FORMA FINANCIAL STATEMENTS FOR FEDERM, RESERVE PRICED SERVICES B. Pro forma income statement Millions of dollars
Item Quarter ending
Sept. 30, 1999
Revenue from services provided to depository 210.9
institutions (Note 4)
Operating expenses (Note 5) 173.6
Income from operations 37.3
Inputed costs (Note 6)
Interest on float 1.0
Interest on debt 4.6
Sales taxes 2.3
FDIC insurance 0.9 8.8
Income from operations after imputed costs 28.5
Other income and expenses (Note 7)
Investment income on clearing balances 84.6
Earnings credits (79.2) 5.4
Income before income taxes 33.9
Inputed income taxes (Note 8) 10.9
Net income 23.1
MEMO 14.3
Targeted return on equity (Note 9)
Nine months
ending Sept
30, 1999
Revenue from services provided to depository 619.3
institutions (Note 4)
Operating expenses (Note 5) 508.5
Income from operations 110.8
Imputed costs (Note 6)
Interest on float 6.9
Interest on debt 13.8
Sales taxes 6.9
FDIC insurance 2.5 30.2
Income from operations after imputed costs 80.7
Other income and expenses (Note 7)
Investment income on clearing balances 243.8
Earnings credits (220.2) 23.6
Income before income taxes 104.3
Imputed income taxes (Note 8) 33.4
Net income 70.9
MEMO
Targeted return on equity (Note 9) 45.8
Item Quarter ending
Sept. 30, 1998
Revenue from services provided to depository 205.5
institutions (Note 4)
Operating expenses (Note 5) 167.0
Income from operations 38.4
Inputed costs (Note 6)
Interest on float 1.8
Interest on debt 4.3
Sales taxes 2.4
FDIC insurance 0.7 9.1
Income from operations after imputed costs 28.5 29.3
Other income and expenses (Note 7)
Investment income on clearing balances 89.8
Earnings credits (85.6) 4.2
Income before income taxes 33.9 33.5
Inputed income taxes (Note 8) 10.9 10.7
Net income 23.1 22.7
MEMO 14.3 17.1
Targeted return on equity (Note 9)
Nine months
ending Sept.
30, 1998
Revenue from services provided to depository 602.5
institutions (Note 4)
Operating expenses (Note 5) 483.9
Income from operations 118.6
Imputed costs (Note 6)
Interest on float 11.1
Interest on debt 12.8
Sales taxes 3.1
FDIC insurance 0.7 30.7
Income from operations after imputed costs 88.0
Other income and expenses (Note 7)
Investment income on clearing balances 271.3
Earnings credits (251.2) 20.2
Income before income taxes 108.1
Imputed income taxes (Note 8) 34.7
Net income 73.4
MEMO
Targeted return on equity (Note 9) 49.9
NOTE. Components may not sum to totals because of rounding. The priced services financial statements consist of these tables and the accompanying notes. (4) REVENUE Revenue represents charges to depository institutions for priced services and is realized from each institution through one of two methods: direct charges to an institution's account or charges against its accumulated ac·cu·mu·late v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates v.tr. To gather or pile up; amass. See Synonyms at gather. v.intr. To mount up; increase. earnings credits. (5) OPERATING EXPENSES Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. Operating expenses consist of the direct, indirect, and other general administrative expenses of the Reserve Banks for priced services plus the expenses for staff members of the Board of Governors working directly on the development of priced services. The expenses for Board staff members were $.85 million in the first three quarters of 1999 and $0.7 million in the first three quarters of 1998. The credit to expenses under SFAS 87 (see note 2) is reflected in operating expenses. (6) IMPUTED COSTS Imputed costs consist of interest on float, interest on debt, sales taxes sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. , and the FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). assessment. Interest on float is derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from the value of float to be recovered, either explicitly ex·plic·it adj. 1. a. Fully and clearly expressed; leaving nothing implied. b. Fully and clearly defined or formulated: "generalizations that are powerful, precise, and explicit" or through per-item fees, during the period. Float costs include costs for checks, book-entry securities Book-Entry Securities Securities that are recorded in electronic records called book entries rather than as paper certificates. Also referred to as "book-entry receipt." Notes: Ownership of U.S. government book-entry securities is transferred over fedwire. , noncash collection, ACH (Automated Clearing House) A system of the U.S. Federal Reserve Bank that provides electronic funds transfer (EFT) between banks. It is used for all kinds of fund transfer transactions, including direct deposit of paychecks and monthly debits for routine payments to , and funds transfers. Interest is imputed on the debt assumed necessary to finance priced-service assets. The sales taxes and FDIC assessment that the Federal Reserve would have paid had it been a private-sector firm are among the components of the PSAF (see note 3). Float costs are based on the actual float incurred for each priced service, multiplied mul·ti·ply 1 v. mul·ti·plied, mul·ti·ply·ing, mul·ti·plies v.tr. 1. To increase the amount, number, or degree of. 2. Mathematics To perform multiplication on. by the appropriate federal funds rate. Other imputed costs are allocated among priced services according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the ratio of operating expenses less shipping expenses for each service to the total expenses for all services less the total shipping expenses for all services. The following list shows the daily average recovery of float (before converting to float costs) by the Reserve Banks for the third quarter of 1999 and 1998 in millions of dollars:
1999 1998
Total float
Unrecovered float 437.1 386.2
Float subject to recovery (148.5) 19.7
Sources of float recovery 585.6 366.5
Income on clearing balances 44.3 36.6
As-of adjustments 352.0 240.2
Direct charges 100.2 113.7
Per-item fees 89.0 (23.9)
Unrecovered float includes float generated by services to government agencies and by other central bank services. Float recovered through income on clearing balances is the result of the increase in investable clearing balances; the increase is produced by a deduction deduction, in logic, form of inference such that the conclusion must be true if the premises are true. For example, if we know that all men have two legs and that John is a man, it is then logical to deduce that John has two legs. for float for cash items in process of collection, which reduces imputed reserve requirements Reserve Requirements Requirements regarding the amount of funds that banks must hold in reserve against deposits made by their customers. This money must be in the bank's vaults or at the closest Federal Reserve Bank. . The income on clearing balances reduces the float to be recovered through other means. As-of adjustments are memorandum An informal record, in the form of a brief written note or outline, of a particular legal transaction or document for the purpose of aiding the parties in remembering particular points or for future reference. adjustments to an institution's reserve or clearing position to recover float increased by the institution. Direct charges are billed to the institution for float incurred when an institution chooses to close on a normal business day and for float incurred on interterritory check transportation. Float recovered through direct charges is valued at cost using the federal funds rate and charged directly to an institution's account. Float recovered through per-item fees is valued at the federal funds rate and has been added to the cost base subject to recovery in the second quarters of 1999 and 1998. (7) OTHER INCOME AND EXPENSES Consists of imputed investment income on clearing balances and the actual cost of earnings credits. Investment income on clearing balances represents the average coupon-equivalent yield coupon-equivalent yield The stated rate of return on bonds without accounting for any compounding. Because bonds nearly always pay interest twice a year, the coupon-equivalent yield must be compounded semiannually to produce the effective annual yield, a on three-month Treasury bills applied to the total clearing balance maintained, adjusted for the effect of reserve requirements on clearing balances. Expenses for earnings credits granted to depository institutions on their clearing balances are derived by applying the average federal funds rate to the required portion of the clearing balances, adjusted for the net effect of reserve requirements on clearing balances. (8) INCOME TAXES Imputed income taxes are calculated at the effective tax rate derived from the PSAF model (see note 3). (9) RETURN ON EQUITY Represents the after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. rate of return on equity that the Federal Reserve would have earned had it been a private business firm, as derived from the PSAF model (see note 3). This amount is adjusted to reflect the recovery of automation consolidation costs of $.3 million for the third quarter of 1999, $.2 million for the second quarter of 1999, $.4 million for first quarter of 1999, $4.0 million for the third quarter of 1998, $4.1 million in the second quarter of 1998, and $2.6 million for the first quarter of 1998. The Reserve Banks plan to recover these amounts, along with a finance charge, by the end of 1999. |
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