H.4.1 Factors Affecting Reserve Balances of Depository Institutions

FEDERAL RESERVE statistical release H.4.1 Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks June 1, 2023 1. Factors Affecting Reserve Balances of Depository Institutions Millions of dollars Reserve Bank credit, related items, and Averages of daily figures Wednesday reserve balances of depository institutions at Week ended Change from week ended May 31, 2023 Federal Reserve Banks May 31, 2023 May 24, 2023 Jun 1, 2022 Reserve Bank credit 8,379,935 - 25,917 - 499,106 8,349,344 Securities held outright1 7,751,349 - 18,573 - 728,836 7,724,820 U.S. Treasury securities 5,190,766 - 4,066 - 579,625 5,164,237 Bills2 281,041 0 - 45,003 281,041 Notes and bonds, nominal2 4,438,136 - 4,847 - 536,726 4,409,053 Notes and bonds, inflation-indexed2 365,839 + 403 - 15,624 368,253 Inflation compensation3 105,750 + 378 + 17,728 105,889 Federal agency debt securities2 2,347 0 0 2,347 Mortgage-backed securities4 2,558,236 - 14,507 - 149,210 2,558,236 Unamortized premiums on securities held outright5 299,005 - 996 - 38,324 298,829 Unamortized discounts on securities held outright5 -27,760 + 56 - 3,298 -27,846 Repurchase agreements6 1 - 14 + 1 0 Foreign official 1 0 + 1 0 Others 0 - 15 0 0 Loans 295,809 - 4,777 + 274,955 293,644 Primary credit 3,698 - 3,378 + 2,819 3,971 Secondary credit 0 0 0 0 Seasonal credit 6 - 2 + 4 5 Paycheck Protection Program Liquidity Facility 8,054 - 172 - 11,919 7,961 Bank Term Funding Program 93,342 + 4,659 + 93,342 93,615 Other credit extensions7 190,708 - 5,885 + 190,708 188,092 Net portfolio holdings of MS Facilities LLC (Main Street Lending Program)8 20,260 - 229 - 6,407 20,279 Net portfolio holdings of Municipal Liquidity Facility LLC8 5,579 + 2 + 44 5,582 Net portfolio holdings of TALF II LLC8 1,745 - 5 - 516 1,708 Float -363 - 195 + 306 -675 Central bank liquidity swaps9 392 - 2 + 200 392 Other Federal Reserve assets10 33,918 - 1,183 + 2,771 32,611 Foreign currency denominated assets11 18,280 - 179 - 562 18,258 Gold stock 11,041 0 0 11,041 Special drawing rights certificate account 5,200 0 0 5,200 Treasury currency outstanding12 51,765 + 14 + 728 51,765 Total factors supplying reserve funds 8,466,221 - 26,082 - 498,940 8,435,609 Note: Components may not sum to totals because of rounding. Footnotes appear at the end of the table.

H.4.1 1. Factors Affecting Reserve Balances of Depository Institutions (continued) Millions of dollars Reserve Bank credit, related items, and Averages of daily figures Wednesday reserve balances of depository institutions at Week ended Change from week ended May 31, 2023 Federal Reserve Banks May 31, 2023 May 24, 2023 Jun 1, 2022 Currency in circulation12 2,341,420 + 7,046 + 62,619 2,344,176 Reverse repurchase agreements13 2,545,365 - 88,054 + 285,160 2,615,677 Foreign official and international accounts 343,694 - 25,277 + 80,347 360,818 Others 2,201,671 - 62,777 + 204,813 2,254,859 Treasury cash holdings 231 + 12 + 140 247 Deposits with F.R. Banks, other than reserve balances 267,797 - 14,973 - 766,735 268,475 Term deposits held by depository institutions 0 0 0 0 U.S. Treasury, General Account 48,954 - 12,998 - 740,578 48,512 Foreign official 9,696 + 11 + 2,182 9,755 Other14 209,147 - 1,986 - 28,339 210,209 Treasury contributions to credit facilities15 13,358 - 284 - 4,582 13,358 Other liabilities and capital16 -11,397 + 896 - 62,959 -11,850 Total factors, other than reserve balances, absorbing reserve funds 5,156,774 - 95,357 - 486,357 5,230,083 Reserve balances with Federal Reserve Banks 3,309,447 + 69,275 - 12,583 3,205,526 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight securities lending facility; refer to table 1A. 2. Face value of the securities. 3. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed securities. 4. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. The current face value shown is the remaining principal balance of the securities. 5. Reflects the premium or discount, which is the difference between the purchase price and the face value of the securities that has not been amortized. For U.S. Treasury securities, Federal agency debt securities, and mortgage-backed securities, amortization is on an effective-interest basis. 6. Cash value of agreements. 7. Includes loans that were extended to depository institutions that were subsequently placed into Federal Deposit Insurance Corporation (FDIC) receivership, including depository institutions established by the FDIC. The Federal Reserve Banks' loans to these depository institutions are secured by pledged collateral and the FDIC provides repayment guarantees. 8. Includes assets purchased pursuant to terms of the credit facility and amounts related to Treasury contributions to the facility. Refer to note on consolidation below. 9. Dollar value of foreign currency held under these agreements valued at the exchange rate to be used when the foreign currency is returned to the foreign central bank. This exchange rate equals the market exchange rate used when the foreign currency was acquired from the foreign central bank. 10. Includes bank premises, accrued interest, and other accounts receivable. 11. Revalued daily at current foreign currency exchange rates. 12. Estimated. 13. Cash value of agreements, which are collateralized by U.S. Treasury securities, federal agency debt securities, and mortgage-backed securities 14. Includes deposits held at the Reserve Banks by international and multilateral organizations, government-sponsored enterprises, designated financial market utilities, and deposits held by depository institutions in joint accounts in connection with their participation in certain private-sector payment arrangements. Also includes certain deposit accounts other than the U.S. Treasury, General Account, for services provided by the Reserve Banks as fiscal agents of the United States. 15. Book value. Amount of equity investments in MS Facilities LLC of $9.7 billion, Municipal Liquidity Facility LLC of $2.8 billion, and TALF II LLC of $0.9 billion. 16. Includes the liability for earnings remittances due to the U.S. Treasury. Sources: Federal Reserve Banks and the U.S. Department of the Treasury.

H.4.1 1A. Memorandum Items Millions of dollars Averages of daily figures Wednesday Memorandum item Week ended Change from week ended May 31, 2023 May 31, 2023 May 24, 2023 Jun 1, 2022 Securities held in custody for foreign official and international accounts 3,409,690 + 12,172 + 14,005 3,400,132 Marketable U.S. Treasury securities1 2,986,213 + 13,184 - 4,827 2,976,268 Federal agency debt and mortgage-backed securities2 342,160 - 695 + 20,561 342,545 Other securities3 81,317 - 317 - 1,728 81,319 Securities lent to dealers 52,737 + 11,354 + 12,914 53,572 Overnight facility4 52,737 + 11,354 + 12,914 53,572 U.S. Treasury securities 52,728 + 11,354 + 12,905 53,563 Federal agency debt securities 9 0 + 9 9 Note: Components may not sum to totals because of rounding. 1. Includes securities and U.S. Treasury STRIPS at face value, and inflation compensation on TIPS. Does not include securities pledged as collateral to foreign official and international account holders against reverse repurchase agreements with the Federal Reserve presented in tables 1, 5, and 6. 2. Face value of federal agency securities and current face value of mortgage-backed securities, which is the remaining principal balance of the securities. 3. Includes non-marketable U.S. Treasury securities, supranationals, corporate bonds, asset-backed securities, and commercial paper at face value. 4. Face value. Fully collateralized by U.S. Treasury securities.

H.4.1 2. Maturity Distribution of Securities, Loans, and Selected Other Assets and Liabilities, May 31, 2023 Millions of dollars Within 15 16 days to 91 days to Over 1 year Over 5 year Over 10 Remaining Maturity All days 90 days 1 year to 5 years to 10 years years Loans1 190,594 2,662 92,433 7,955 0 ... 293,644 U.S. Treasury securities2 Holdings 49,400 304,685 626,398 1,825,259 867,661 1,490,834 5,164,237 Weekly changes - 46,487 - 13,587 + 810 + 28,147 - 2,520 + 2,913 - 30,724 Federal agency debt securities3 Holdings 0 0 0 0 2,347 0 2,347 Weekly changes 0 0 0 0 0 0 0 Mortgage-backed securities4 Holdings 0 2 15 8,410 44,228 2,505,581 2,558,236 Weekly changes 0 - 1 - 4 - 160 - 571 - 11,452 - 12,189 Loan participations held by MS Facilities LLC (Main Street Lending Program)5 0 0 0 10,672 ... ... 10,672 Municipal notes held by Municipal Liquidity Facility LLC6 0 0 2,907 0 ... ... 2,907 Loans held by TALF II LLC7 0 287 518 0 ... ... 804 Repurchase agreements8 0 0 ... ... ... ... 0 Central bank liquidity swaps9 392 0 0 0 0 0 392 Reverse repurchase agreements8 2,615,677 0 ... ... ... ... 2,615,677 Term deposits 0 0 0 ... ... ... 0 Note: Components may not sum to totals because of rounding. ...Not applicable. 1. Loans includes primary, secondary, and seasonal loans and credit extended through the Paycheck Protection Program Liquidity Facility (PPPLF), Bank Term Funding Program, and other credit extensions. A component of PPPLF loans presented in the Within 15 day category has reached maturity and is recognized as performing loans based upon the underlying guarantee of the collateral by the Small Business Administration. Additionally, the Within 15 days category includes loans to depository institutions (including FDIC-established depository institutions) that were subsequently placed in receivership. These loans are recognized as performing based upon payment due from the receiverships, pledged collateral securing the loans, and the FDIC repayment guarantees. Loans exclude the loans from the Federal Reserve Bank of New York (FRBNY) to Municipal Liquidity Facility LLC and TALF II LLC, and from the Federal Reserve Bank of Boston (FRBB) to MS Facilities LLC, which were eliminated when preparing the FRBNY's and FRBB's statement of condition, respectively, consistent with consolidation under generally accepted accounting principles. 2. Face value. For inflation-indexed securities, includes the original face value and compensation that adjusts for the effect of inflation on the original face value of such securities. 3. Face value. 4. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. The current face value shown is the remaining principal balance of the securities. 5. Book value of the loan participations held by the MS Facilities LLC. 6. Book value of the municipal notes held by the Municipal Liquidity Facility LLC. 7. Book value of the loans held by the TALF II LLC. 8. Cash value of agreements. 9. Dollar value of foreign currency held under these agreements valued at the exchange rate to be used when the foreign currency is returned to the foreign central bank. This exchange rate equals the market exchange rate used when the foreign currency was acquired from the foreign central bank.

H.4.1 3. Supplemental Information on Mortgage-Backed Securities Millions of dollars Wednesday Account name May 31, 2023 Mortgage-backed securities held outright1 2,558,236 Residential mortgage-backed securities 2,549,845 Commercial mortgage-backed securities 8,391 Commitments to buy mortgage-backed securities2 5 Commitments to sell mortgage-backed securities2 138 Cash and cash equivalents3 1 1. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. The current face value shown is the remaining principal balance of the securities. 2. Current face value. Includes residential and commercial mortgage-backed securities. Residential mortgage-backed securities generally settle within 180 calendar days and include commitments associated with outright transactions, dollar rolls, and coupon swaps. Commercial mortgage-backed securities generally settle within three business days. 3. This amount is included in other Federal Reserve assets in table 1 and in other assets in table 5 and table 6. 4. Information on Principal Accounts of Credit Facilities LLCs Millions of dollars Wednesday May 31, 2023 Net portfolio holdings of Credit Facilities LLCs Outstanding Credit Facilities LLCs: principal Outstanding amount amount of Treasury of loan facility contributions extended to asset and the LLC1 purchases2 other assets3 Total MS Facilities LLC (Main Street Lending Program) 10,016 9,659 10,620 20,279 Municipal Liquidity Facility LLC 2,907 2,907 2,674 5,582 TALF II LLC 884 804 904 1,708 Note: Components may not sum to totals because of rounding. 1. Book value. This amount was eliminated when preparing the Federal Reserve Banks' statement of condition consistent with consolidation under generally accepted accounting principles. Refer to the note on consolidation accompanying table 6. Loans are extended from the Federal Reserve Bank to the LLC upon settlement of the investment activity. 2. Outstanding amount of facility asset purchases: a. For the MS Facilities LLC (Main Street Lending Program) includes loan participations at face value, net of an allowance for loan losses updated as of March 31, 2023. b. For the Municipal Liquidity Facility LLC includes municipal notes at book value. Asset balances from trading activity may be reported on a one-day lag after the transaction date. c. For the TALF II LLC includes loans to holders of eligible asset-backed securities at book value. 3. Includes short term receivables, interest and dividend receivables, and other assets of the facility. Also includes the portion of the Treasury contribution to the credit facilities, which is held as investments in nonmarketable Treasury securities and the residual portion which is held as cash and cash equivalents at the FRBNY. The amount of cash and cash equivalents held at the FRBNY are eliminated in consolidation and, as result, are excluded from net portfolio holdings in Tables 1, 5, and 6. Amounts excluded are approximately 15% of Treasury contributions to the Municipal Liquidity Facility LLC and TALF II LLC. Refer to the note on consolidation accompanying table 6.

H.4.1 5. Consolidated Statement of Condition of All Federal Reserve Banks Millions of dollars Change since Eliminations from Wednesday Assets, liabilities, and capital Wednesday Wednesday consolidation May 31, 2023 May 24, 2023 Jun 1, 2022 Assets Gold certificate account 11,037 0 0 Special drawing rights certificate account 5,200 0 0 Coin 1,281 - 9 + 21 Securities, unamortized premiums and discounts, repurchase agreements, and loans 8,289,448 - 47,151 - 524,428 Securities held outright1 7,724,820 - 42,913 - 755,752 U.S. Treasury securities 5,164,237 - 30,724 - 606,542 Bills2 281,041 0 - 45,003 Notes and bonds, nominal2 4,409,053 - 33,930 - 564,305 Notes and bonds, inflation-indexed2 368,253 + 2,817 - 14,713 Inflation compensation3 105,889 + 388 + 17,479 Federal agency debt securities2 2,347 0 0 Mortgage-backed securities4 2,558,236 - 12,189 - 149,210 Unamortized premiums on securities held outright5 298,829 - 872 - 38,297 Unamortized discounts on securities held outright5 -27,846 - 121 - 3,359 Repurchase agreements6 0 - 30 0 Loans7 293,644 - 3,216 + 272,979 Net portfolio holdings of MS Facilities LLC (Main Street Lending Program)8 20,279 + 22 - 6,397 Net portfolio holdings of Municipal Liquidity Facility LLC8 5,582 + 3 + 46 Net portfolio holdings of TALF II LLC8 1,708 - 44 - 487 Items in process of collection (0) 58 + 24 - 86 Bank premises 468 + 12 - 165 Central bank liquidity swaps9 392 + 1 + 209 Foreign currency denominated assets10 18,258 - 120 - 402 Other assets11 32,143 - 3,140 + 2,492 Total assets (0) 8,385,854 - 50,401 - 529,196 Note: Components may not sum to totals because of rounding. Footnotes appear at the end of the table.

H.4.1 5. Consolidated Statement of Condition of All Federal Reserve Banks (continued) Millions of dollars Change since Eliminations from Wednesday Assets, liabilities, and capital Wednesday Wednesday consolidation May 31, 2023 May 24, 2023 Jun 1, 2022 Liabilities Federal Reserve notes, net of F.R. Bank holdings 2,293,934 + 6,701 + 63,486 Reverse repurchase agreements12 2,615,677 + 4,671 + 385,137 Deposits (0) 3,474,001 - 62,735 - 911,824 Term deposits held by depository institutions 0 0 0 Other deposits held by depository institutions 3,205,526 - 45,245 - 151,869 U.S. Treasury, General Account 48,512 - 961 - 732,063 Foreign official 9,755 + 69 + 2,048 Other13 (0) 210,209 - 16,598 - 29,940 Deferred availability cash items (0) 733 + 498 + 448 Treasury contributions to credit facilities14 13,358 0 - 4,582 Other liabilities and accrued dividends15 -54,257 + 458 - 62,655 Total liabilities (0) 8,343,446 - 50,408 - 529,990 Capital accounts Capital paid in 35,623 + 6 + 794 Surplus 6,785 0 0 Other capital accounts 0 0 0 Total capital 42,408 + 6 + 794 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight securities lending facility; refer to table 1A. 2. Face value of the securities. 3. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed securities. 4. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. The current face value shown is the remaining principal balance of the securities. 5. Reflects the premium or discount, which is the difference between the purchase price and the face value of the securities that has not been amortized. For U.S. Treasury securities, Federal agency debt securities, and mortgage-backed securities, amortization is on an effective-interest basis. 6. Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities. 7. Loans includes primary, secondary, and seasonal loans and credit extended through the Paycheck Protection Program Liquidity Facility, Bank Term Funding Program, and other credit extensions. 8. Includes assets purchased pursuant to terms of the credit facility and amounts related to Treasury contributions to the facility. Refer to note on consolidation below. 9. Dollar value of foreign currency held under these agreements valued at the exchange rate to be used when the foreign currency is returned to the foreign central bank. This exchange rate equals the market exchange rate used when the foreign currency was acquired from the foreign central bank. 10. Revalued daily at current foreign currency exchange rates. 11. Includes accrued interest, which represents the daily accumulation of interest earned, and other accounts receivable. 12. Cash value of agreements, which are collateralized by U.S. Treasury securities, federal agency debt securities, and mortgage-backed securities. 13. Includes deposits held at the Reserve Banks by international and multilateral organizations, government-sponsored enterprises, designated financial market utilities, and deposits held by depository institutions in joint accounts in connection with their participation in certain private-sector payment arrangements. Also includes certain deposit accounts other than the U.S. Treasury, General Account, for services provided by the Reserve Banks as fiscal agents of the United States. 14. Book value. Amount of equity investments in MS Facilities LLC of $9.7 billion, Municipal Liquidity Facility LLC of $2.8 billion, and TALF II LLC of $0.9 billion. 15. Includes the liability for earnings remittances due to the U.S. Treasury.

H.4.1 6. Statement of Condition of Each Federal Reserve Bank, May 31, 2023 Millions of dollars Kansas San Assets, liabilities, and capital Total Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Dallas City Francisco Assets Gold certificates and special drawing rights certificates 16,237 557 5,175 525 752 1,187 2,287 1,104 479 264 452 1,290 2,165 Coin 1,281 22 43 119 42 176 89 246 25 37 85 150 247 Securities, unamortized premiums and discounts, repurchase agreements, and loans1 8,289,448 158,242 4,513,437 133,467 249,369 561,650 547,026 503,414 123,249 62,542 111,984 399,932 925,134 Net portfolio holdings of MS Facilities LLC (Main Street Lending Program)2 20,279 20,279 0 0 0 0 0 0 0 0 0 0 0 Net portfolio holdings of Municipal Liquidity Facility LLC2 5,582 0 5,582 0 0 0 0 0 0 0 0 0 0 Net portfolio holdings of TALF II LLC2 1,708 0 1,708 0 0 0 0 0 0 0 0 0 0 Central bank liquidity swaps3 392 17 139 14 37 79 12 14 9 2 4 8 56 Foreign currency denominated assets4 18,258 785 6,509 655 1,720 3,693 547 635 411 115 194 385 2,610 Other assets5 32,670 712 16,301 598 987 2,400 2,037 1,825 712 444 723 1,555 4,376 Interdistrict settlement account 0+ 30,279- 422,065+ 576+ 78,323+ 293,412+ 46,229+ 31,272+ 3,956- 1,911- 4,661+ 5,180 - 60,590 Total assets 8,385,854 210,893 4,126,828 135,955 331,231 862,598 598,226 538,510 128,840 61,494 108,782 408,500 873,999 Note: Components may not sum to totals because of rounding. Footnotes appear at the end of the table.

H.4.1 6. Statement of Condition of Each Federal Reserve Bank, May 31, 2023 (continued) Millions of dollars Kansas San Assets, liabilities, and capital Total Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Dallas City Francisco Liabilities Federal Reserve notes, net 2,293,934 80,261 733,716 52,126 111,935 173,594 355,800 124,786 71,923 33,533 49,899 189,530 316,830 Reverse repurchase agreements6 2,615,677 50,534 1,460,725 43,110 80,381 182,023 177,197 163,052 39,129 17,735 33,818 127,533 240,440 Deposits 3,474,001 69,039 1,953,098 39,496 135,751 505,184 62,889 253,047 16,783 9,967 24,635 91,324 312,789 Depository institutions 3,205,526 69,031 1,839,612 39,494 135,720 504,752 62,860 99,178 16,725 9,805 24,599 91,045 312,705 U.S. Treasury, General Account 48,512 0 48,512 0 0 0 0 0 0 0 0 0 0 Foreign official 9,755 2 9,729 1 4 8 1 1 1 0 0 1 6 Other7 210,209 7 55,245 0 27 424 28 153,867 58 161 36 278 78 Earnings remittances due to the U.S. Treasury8 -65,484 -1,244 -44,686 -499 -1,710 -8,132 -76 -5,167 -119 -138 -223 -1,103 -2,388 Treasury contributions to credit facilities9 13,358 9,684 3,674 0 0 0 0 0 0 0 0 0 0 Other liabilities and accrued dividends 11,960 813 5,433 216 425 1,451 1,090 771 163 128 193 347 929 Total liabilities 8,343,446 209,088 4,111,960 134,449 326,782 854,121 596,901 536,489 127,879 61,225 108,322 407,630 868,600 Capital Capital paid in 35,623 1,513 12,454 1,262 3,809 7,102 1,122 1,784 808 226 388 727 4,428 Surplus 6,785 292 2,414 244 640 1,374 203 236 153 43 72 143 971 Other capital 0 0 0 0 0 0 0 0 0 0 0 0 0 Total liabilities and capital 8,385,854 210,893 4,126,828 135,955 331,231 862,598 598,226 538,510 128,840 61,494 108,782 408,500 873,999 Note: Components may not sum to totals because of rounding. Footnotes appear at the end of the table.

H.4.1 6. Statement of Condition of Each Federal Reserve Bank, May 31, 2023 (continued) 1. Securities include outright holdings of U.S. Treasury securities, federal agency debt securities, and mortgage-backed securities, including securities lent to dealers under the overnight securities lending facility; refer to table 1A. Mortgage-backed securities are guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. Unamortized premiums and discounts are the differences between the purchase price and the face value of the securities that have not been amortized. For U.S. Treasury securities, federal agency debt securities, and mortgage-backed securities, amortization is on an effective-interest basis. Repurchase agreements reflect the cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities. Loans includes primary, secondary, and seasonal loans and credit extended through the Paycheck Protection Program Liquidity Facility, Bank Term Funding Program, and other credit extensions. 2. Includes assets purchased pursuant to terms of the credit facility and amounts related to Treasury contributions to the facility. Refer to note on consolidation below. 3. Dollar value of foreign currency held under these agreements valued at the exchange rate to be used when the foreign currency is returned to the foreign central bank. This exchange rate equals the market exchange rate used when the foreign currency was acquired from the foreign central bank. 4. Revalued daily at current foreign currency exchange rates. 5. Includes items in process of collection, bank premises, accrued interest (which represents the daily accumulation of interest earned), and other accounts receivable. 6. Cash value of agreements, which are collateralized by U.S. Treasury securities, federal agency debt securities, and mortgage-backed securities. 7. Includes deposits held at the Reserve Banks by international and multilateral organizations, government-sponsored enterprises, designated financial market utilities, and deposits held by depository institutions in joint accounts in connection with their participation in certain private-sector payment arrangements. Also includes certain deposit accounts other than the U.S. Treasury, General Account, for services provided by the Reserve Banks as fiscal agents of the United States. 8. The Federal Reserve Banks remit residual net earnings to the U.S. Treasury after providing for the costs of operations, payment of dividends, and the amount necessary to maintain each Federal Reserve Bank's allotted surplus cap. Positive amounts represent the estimated weekly remittances due to U.S. Treasury. Negative amounts represent the cumulative deferred asset position, which is incurred during a period when earnings are not sufficient to provide for the cost of operations, payment of dividends, and maintaining surplus. The deferred asset is the amount of net earnings that the Federal Reserve Banks need to realize before remittances to the U.S. Treasury resume. 9. Book value. Amount of equity investments in MS Facilities LLC of $9.7 billion, Municipal Liquidity Facility LLC of $2.8 billion, and TALF II LLC of $0.9 billion. Note on consolidation: The Federal Reserve Bank of New York (FRBNY) and the Federal Reserve Bank of Boston (FRBB) have extended loans to limited liability companies under the authority of section 13(3) of the Federal Reserve Act. On June 5, 2020, FRBNY began extending loans to the Municipal Liquidity Facility LLC (MLF LLC), a limited liability company formed to purchase municipal notes from eligible issuers. The assets of the MLF LLC and the amount provided by U.S. Treasury as credit protection to the FRBNY are used to secure the loan from the FRBNY. On June 25, 2020, FRBNY began extending loans to the TALF II LLC, a special purpose vehicle that was formed to help support the flow of credit to consumers and businesses. The assets of the TALF II LLC and the amount provided by U.S. Treasury as credit protection to the FRBNY are used to secure the loan from the FRBNY. On July 15, 2020, the FRBB began extending loans to the MS Facilities LLC (Main Street Lending Program), a special purpose vehicle that was formed to help ensure credit flows to small and medium-sized businesses and to eligible nonprofits. The assets of the MS Facilities LLC and the amount provided by U.S. Treasury as credit protection to the FRBB are used to secure the loan from the FRBB. The FRBNY is the managing member of MLF LLC and TALF II LLC. The FRBB is the managing member of MS Facilities LLC (Main Street Lending Program). Consistent with generally accepted accounting principles, the assets and liabilities of each LLC have been accounted for and consolidated with the assets and liabilities of the FRBNY or FRBB, in the preparation of the statements of condition shown on this release. As a consequence of the consolidation, the loan from the Reserve Bank to the LLC is eliminated as are any balances held at the FRBNY for LLCs consolidated to FRBNY or FRBB for LLCs consolidated to FRBB. Treasury contributions to credit facilities are held at FRBNY until invested. Net assets of the LLC appears as assets on table 6 (and in table 1 and table 5), and the liabilities of the LLC to entities other than the FRBNY or FRBB, including those with recourse only to the portfolio holdings of the LLC, are included in other liabilities in this table (and table 1 and table 5). The amount provided by U.S. Treasury as credit protection to FRBNY and FRBB appears as liabilities on table 6 (and in table 1 and table 5).

H.4.1 7. Collateral Held against Federal Reserve Notes: Federal Reserve Agents' Accounts Millions of dollars Wednesday Federal Reserve notes and collateral May 31, 2023 Federal Reserve notes outstanding 2,657,021 Less: Notes held by F.R. Banks not subject to collateralization 363,088 Federal Reserve notes to be collateralized 2,293,934 Collateral held against Federal Reserve notes 2,293,934 Gold certificate account 11,037 Special drawing rights certificate account 5,200 U.S. Treasury, agency debt, and mortgage-backed securities pledged1,2 2,277,697 Other assets pledged 0 Memo: Total U.S. Treasury, agency debt, and mortgage-backed securities1,2 7,724,820 Less: Face value of securities under reverse repurchase agreements 2,817,799 U.S. Treasury, agency debt, and mortgage-backed securities eligible to be pledged 4,907,021 Note: Components may not sum to totals because of rounding. 1. Includes face value of U.S. Treasury, agency debt, and mortgage-backed securities held outright, compensation to adjust for the effect of inflation on the original face value of inflation-indexed securities, and cash value of repurchase agreements. 2. Includes securities lent to dealers under the overnight securities lending facility; refer to table 1A.