Guide to statistical releases and special tables.

Guide to Statistical Releases and Special Tables

STATISTICAL RELEASES--List Published Semiannually,
with Latest Bulletin Reference

                                                         Issue   Page

Anticipated schedule of release dates
for periodic releases                                June 2001    A72

SPECIAL TABLES--Data Published Irregularly,
with Latest Bulletin Reference

Title and Date                                           Issue   Page

Assets and liabilities of commercial banks

June 30, 2000                                    November 2000    A64
September 30, 2000                               February 2001    A64
December 31, 2000                                     May 2001    A64
March 31, 2001                                     August 2001    A64

Terms of lending at commercial banks

August 2000                                      November 2000    A66
November 2000                                    February 2001    A66
February 2001                                         May 2001    A66
May 2001                                           August 2001    A66

Assets and liabilities of U.S. branches and
agencies of foreign banks

June 30, 2000                                    November 2000    A72
September 30, 2000                               February 2001    A72
December 31, 2000                                     May 2001    A72
March 31, 2001                                     August 2001    A72

Pro forma balance sheet and income statements
for priced service operations

September 30, 2000                               February 2001    A76
March 31, 2001                                     August 2001    A76
June 30, 2001                                     October 2001    A64

Residential lending reported under the Home
Mortgage Disclosure Act

1999                                            September 2000    A64
2000                                            September 2001    A64

Disposition of applications for private
mortgage insurance

1999                                            September 2000    A73
2000                                            September 2001    A73

Small loans to businesses and farms

1999                                            September 2000    A76
2000                                            September 2001    A76

Community development lending reported under
the Community Reinvestment Act

1999                                            September 2000    A79
2000                                            September 2001    A79
4.31 PRO FORMA FINANCIAL STATEMENTS FOR FEDERAL RESERVE PRICED SERVICES
A. Pro forma balance sheet
Millions of dollars

            Item                    June 30, 2001       June 30, 2000

Short-term assets (Note 1)
Imputed reserve requirement
    on clearing balances          694.7                610.7
Investment in marketable
    securities                  6,252.3              5,496.2
Receivables                        76.9                 76.4
Materials and supplies              3.1                  3.3
Prepaid expenses                   33.0                 28.5
Items in process of
    collection                  3,356.1              3,234.3

  Total short-term assets                 10,416.0              9,449.4

Long-term assets (Note 2)
Premises                          472.2                450.6
Furniture and equipment           169.0                165.0
Leases and leasehold
    improvements                   75.9                 48.9
Prepaid pension costs             710.2                600.5

  Total long-term assets                   1,427.3              1,265.0

Total assets                              11,843.3             10,714.4

Short-term liabilities
Clearing balances and
    balances arising from
    early credit of
    uncollected items           6,567.5              5,893.3
Deferred-availability items     3,735.6              3,448.0
Short-term debt and payables      112.9                108.2

  Total short-term
    liabilities                           10,416.0              9,449.4

Long-term liabilities
Long-term debt                    492.8                405.4
Postretirement/postemployment
    benefits obligation           251.3                236.0

  Total long-term liabilities     744.1                641.4

Total liabilities                         11,160.1             10,090.8

Equity                                       683.3                623.6

Total liabilities and equity
    (Note 3)                              11,843.3             10,714.4

B. Pro forma income statement

Millions of dollars

                                      Quarter ending    Quarter ending
               Item                   June 30, 2001     June 30, 2000

Revenue from services provided to
    depository institutions
    (Note 4)                                   232.6             221.9
Operating expenses (Note 5)                    200.8             173.6

Income from operations                          31.8              48.3

Inputed costs (Note 6)
  Interest on float                    (3.7)               .4
  Interest on debt                      8.0               7.9
  Sales taxes                           2.5               1.9
  FDIC insurance                        0.0      6.8      0.0     10.2

Income from operations after
    imputed costs                               25.0              38.1

Other income and expenses (Note 7)
  Investment income on clearing
    balances                           64.2              98.9
  Earnings credits                    (65.2)    (1.0)    93.4      5.5

Income before income taxes                      24.0              43.6
Inputed income taxes (Note 8)                    7.6              13.7

Net income                                      16.3              29.9

MEMO
Targeted return on equity (Note 9)              27.3              24.6

                                        Six months         Six months
                                          ending            ending
                                       June 30, 2001     June 30, 2000

Revenue from services provided to
    depository institutions
    (Note 4)                                   463.4             433.4
Operating expenses (Note 5)                    398.7             346.4

Income from operations                          64.7              87.0

Imputed costs (Note 6)
  Interest on float                    (0.5)              3.2
  Interest on debt                     16.0              15.8
  Sales taxes                           5.3               4.2
  FDIC insurance                        0.0     20.8      0.0     23.2

Income from operations after
    imputed costs                               43.9              63.8
Other income and expenses (Note 7)
  Investment income on clearing
    balances                          145.1             203.7
  Earnings credits                   (144.0)     1.1   (181.8)    22.0

Income before income taxes                      45.1              85.7
Imputed income taxes (Note 8)                   14.2              27.0

Net income                                      30.9              58.7

MEMO
Targeted return on equity (Note 9)              54.6              49.2

NOTE. Components may not sum to totals because of rounding. The priced
services financial statements consist of these tables and the
accompanying notes.

(1) SHORT-TERM ASSETS

The imputed reserve requirement on clearing balances held at Reserve
Banks by depository institutions reflects a treatment comparable to
that of compensating balances held at correspondent banks by respondent
institutions. The reserve requirement imposed on respondent balances
must be held as vault cash 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 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.

Receivables 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 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) 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 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.

(2) LONG-TERM ASSETS

Consists of long-term assets used solely in priced services, the
priced-services portion of long-term assets shared with non-priced
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 87). Accordingly, the Federal Reserve
Banks recognized credits to expenses of $50.4 million in the second
quarter of 2001, $25.2 million in the first quarter of 2001, $57.7
million in the second quarter of 2000, $28.9 million in the first
quarter of 2000, and corresponding increases in this asset account.

(3) LIABILITIES AND EQUITY

Under the matched-book capital structure for assets that are not
"self-financing," short-term assets are financed with short-term debt
and payables. Long-term assets are financed with 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). 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 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 consist of
obligations on capital leases.

(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 earnings credits.

(5) OPERATING EXPENSES

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 $2.5 million in the first and second quarters of
2001 and $2.1 million in the first and second quarters of 2000. 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, and the FDIC assessment. Interest on float is derived from the
value of float to be recovered, either explicitly or through per-item
fees, during the period. Float costs include costs for checks,
book-entry securities, noncash collection, ACH, 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 by the appropriate federal funds rate. Other
imputed costs are allocated among priced services according to 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 second quarter
of 2001 and 2000 in millions of dollars:

                                 2001      2000

Total float                      257.2     466.4
Unrecovered float                152.7       8.0
Float subject to recovery        104.5     458.4
Sources of float recovery:
  Income on clearing balances     10.7      46.4
  As-of adjustments              438.4     438.8
  Direct charges                 353.5     279.9
  Per-item fees                 (698.1)   (306.8)

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 for float
for cash items in process of collection, which reduces imputed reserve
requirements. The income on clearing balances reduces the float to be
recovered through other means. As-of adjustments are memorandum
adjustments to an institution's reserve or clearing position to recover
float incurred 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 2001 and 2000.

(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 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 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).