H.4.1 Factors Affecting Reserve Balances of Depository Institutions

FEDERAL RESERVE statistical release For Release at 4:30 P.M. Eastern time December 28, 2023 The Board's H.4.1 statistical release, "Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks," has been modified to reflect returning the remainder of the Treasury's equity investment in the Municipal Liquidity Facility LLC (MLF) and in the TALF II LLC (TALF II), which occurred on December 22, 2023. Footnotes in Factors Affecting Reserve Balances of Depository Institutions (table 1), Maturity Distribution of Securities, Loans and Selected Other Assets and Liabilities (table 2), Information on Principal Accounts of Credit Facilities LLCs (table 4), Consolidated Statement of Condition of All Federal Reserve Banks (table 5), and Statement of Condition of Each Federal Reserve Bank (table 6) were revised accordingly.

FEDERAL RESERVE statistical release H.4.1 Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks December 28, 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 Dec 27, 2023 Federal Reserve Banks Dec 27, 2023 Dec 20, 2023 Dec 28, 2022 Reserve Bank credit 7,684,978 - 6,052 - 840,718 7,675,996 Securities held outright1 7,233,658 - 9,958 - 919,459 7,224,667 U.S. Treasury securities 4,791,167 - 3,731 - 709,758 4,790,547 Bills2 222,962 - 1,727 - 68,455 222,354 Notes and bonds, nominal2 4,088,681 - 1,960 - 640,837 4,088,681 Notes and bonds, inflation-indexed2 365,578 0 - 11,838 365,578 Inflation compensation3 113,946 - 44 + 11,373 113,933 Federal agency debt securities2 2,347 0 0 2,347 Mortgage-backed securities4 2,440,144 - 6,227 - 209,701 2,431,773 Unamortized premiums on securities held outright5 279,527 - 807 - 35,049 279,171 Unamortized discounts on securities held outright5 -25,968 + 311 + 1,387 -25,884 Repurchase agreements6 2 0 + 2 0 Foreign official 0 0 0 0 Others 2 + 1 + 2 0 Loans 139,648 + 4,991 + 123,506 141,785 Primary credit 2,507 + 322 - 2,059 2,492 Secondary credit 0 0 0 0 Seasonal credit 29 - 1 + 20 22 Paycheck Protection Program Liquidity Facility 3,474 - 79 - 8,093 3,467 Bank Term Funding Program 133,638 + 4,749 + 133,638 135,805 Other credit extensions7 0 0 0 0 Net portfolio holdings of MS Facilities LLC (Main Street Lending Program)8 16,139 - 60 - 6,460 16,156 Net portfolio holdings of Municipal Liquidity Facility LLC8 213 - 2,903 - 5,354 213 Net portfolio holdings of TALF II LLC8 46 - 152 - 1,937 46 Float -245 - 11 - 45 -267 Central bank liquidity swaps9 1,359 + 1,124 + 947 1,359 Other Federal Reserve assets10 40,598 + 1,413 + 1,742 38,750 Foreign currency denominated assets11 18,551 + 101 + 85 18,669 Gold stock 11,041 0 0 11,041 Special drawing rights certificate account 5,200 0 0 5,200 Treasury currency outstanding12 52,602 + 14 + 563 52,602 Total factors supplying reserve funds 7,772,371 - 5,937 - 840,071 7,763,508 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 Dec 27, 2023 Federal Reserve Banks Dec 27, 2023 Dec 20, 2023 Dec 28, 2022 Currency in circulation12 2,340,523 + 8,526 + 36,531 2,344,610 Reverse repurchase agreements13 1,132,915 + 70,326 -1,443,029 1,165,574 Foreign official and international accounts 350,023 + 15,440 + 3,015 346,705 Others 782,891 + 54,886 -1,446,045 818,869 Treasury cash holdings 394 - 3 + 291 396 Deposits with F.R. Banks, other than reserve balances 920,433 + 5,467 + 255,502 887,342 Term deposits held by depository institutions 0 0 0 0 U.S. Treasury, General Account 731,405 - 791 + 303,479 713,064 Foreign official 9,690 + 1 + 1,221 9,690 Other14 179,338 + 6,256 - 49,198 164,588 Treasury contributions to credit facilities15 7,849 - 2,462 - 7,498 7,438 Other liabilities and capital16 -76,201 + 1,857 - 110,436 -76,066 Total factors, other than reserve balances, absorbing reserve funds 4,325,913 + 83,710 -1,268,640 4,329,295 Reserve balances with Federal Reserve Banks 3,446,459 - 89,646 + 428,570 3,434,213 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 outstanding loans 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 $7.4 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 Dec 27, 2023 Dec 27, 2023 Dec 20, 2023 Dec 28, 2022 Securities held in custody for foreign official and international accounts 3,385,740 - 1,286 + 67,558 3,394,130 Marketable U.S. Treasury securities1 2,958,250 - 200 + 49,380 2,966,930 Federal agency debt and mortgage-backed securities2 344,077 - 1,169 + 16,152 343,804 Other securities3 83,413 + 83 + 2,026 83,396 Securities lent to dealers 32,622 - 985 - 14,644 38,439 Overnight facility4 32,622 - 985 - 14,644 38,439 U.S. Treasury securities 32,622 - 985 - 14,623 38,439 Federal agency debt securities 0 0 - 21 0 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, December 27, 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 2,658 42,795 92,870 3,463 0 ... 141,785 U.S. Treasury securities2 Holdings 65,252 240,389 572,986 1,627,413 779,339 1,505,168 4,790,547 Weekly changes + 6,576 - 6,908 - 1,410 - 18 - 10 - 12 - 1,782 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 0 23 4,895 32,350 2,394,505 2,431,773 Weekly changes 0 - 1 - 4 - 108 - 4,663 - 6,944 - 11,719 Loan participations held by MS Facilities LLC (Main Street Lending Program)5 0 0 0 7,923 ... ... 7,923 Repurchase agreements6 0 0 ... ... ... ... 0 Central bank liquidity swaps7 1,359 0 0 0 0 0 1,359 Reverse repurchase agreements6 1,165,574 0 ... ... ... ... 1,165,574 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. Loans exclude the loans from the Federal Reserve Bank of Boston (FRBB) to MS Facilities LLC, which were eliminated when preparing the FRBB's statement of condition, 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. Cash value of agreements. 7. 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 Dec 27, 2023 Mortgage-backed securities held outright1 2,431,773 Residential mortgage-backed securities 2,423,545 Commercial mortgage-backed securities 8,228 Commitments to buy mortgage-backed securities2 0 Commitments to sell mortgage-backed securities2 0 Cash and cash equivalents3 0 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 Dec 27, 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) 7,434 7,411 8,745 16,156 Municipal Liquidity Facility LLC 0 0 213 213 TALF II LLC 0 0 46 46 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 September 30, 2023. 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. 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 Dec 27, 2023 Dec 20, 2023 Dec 28, 2022 Assets Gold certificate account 11,037 0 0 Special drawing rights certificate account 5,200 0 0 Coin 1,422 - 14 + 227 Securities, unamortized premiums and discounts, repurchase agreements, and loans 7,619,739 - 9,539 - 827,862 Securities held outright1 7,224,667 - 13,501 - 919,915 U.S. Treasury securities 4,790,547 - 1,782 - 710,287 Bills2 222,354 - 1,741 - 68,838 Notes and bonds, nominal2 4,088,681 0 - 640,837 Notes and bonds, inflation-indexed2 365,578 0 - 11,838 Inflation compensation3 113,933 - 42 + 11,226 Federal agency debt securities2 2,347 0 0 Mortgage-backed securities4 2,431,773 - 11,719 - 209,629 Unamortized premiums on securities held outright5 279,171 - 865 - 35,007 Unamortized discounts on securities held outright5 -25,884 + 305 + 1,404 Repurchase agreements6 0 0 0 Loans7 141,785 + 4,523 + 125,656 Net portfolio holdings of MS Facilities LLC (Main Street Lending Program)8 16,156 + 20 - 6,461 Net portfolio holdings of Municipal Liquidity Facility LLC8 213 - 2,482 - 5,356 Net portfolio holdings of TALF II LLC8 46 - 123 - 1,938 Items in process of collection (0) 190 + 124 + 90 Bank premises 438 - 3 - 35 Central bank liquidity swaps9 1,359 + 1,124 + 947 Foreign currency denominated assets10 18,669 + 257 + 267 Other assets11 38,312 - 645 + 1,733 Total assets (0) 7,712,781 - 11,282 - 838,388 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 Dec 27, 2023 Dec 20, 2023 Dec 28, 2022 Liabilities Federal Reserve notes, net of F.R. Bank holdings 2,293,821 + 8,659 + 36,650 Reverse repurchase agreements12 1,165,574 + 41,372 -1,461,578 Deposits (0) 4,321,556 - 60,191 + 704,504 Term deposits held by depository institutions 0 0 0 Other deposits held by depository institutions 3,434,214 - 43,074 + 454,472 U.S. Treasury, General Account 713,064 - 19,657 + 303,255 Foreign official 9,690 + 2 + 1,256 Other13 (0) 164,588 + 2,538 - 54,480 Deferred availability cash items (0) 457 + 129 - 170 Treasury contributions to credit facilities14 7,438 - 2,873 - 7,909 Other liabilities and accrued dividends15 -118,915 + 1,621 - 110,935 Total liabilities (0) 7,669,932 - 11,281 - 839,438 Capital accounts Capital paid in 36,065 0 + 1,051 Surplus 6,785 0 0 Other capital accounts 0 0 0 Total capital 42,850 0 + 1,051 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 $7.4 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, December 27, 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 1,422 48 39 134 54 177 102 249 33 54 96 178 259 Securities, unamortized premiums and discounts, repurchase agreements, and loans1 7,619,739 150,838 4,185,516 125,900 232,988 531,581 517,503 475,635 119,917 58,455 106,673 379,167 735,567 Net portfolio holdings of MS Facilities LLC (Main Street Lending Program)2 16,156 16,156 0 0 0 0 0 0 0 0 0 0 0 Net portfolio holdings of Municipal Liquidity Facility LLC2 213 0 213 0 0 0 0 0 0 0 0 0 0 Net portfolio holdings of TALF II LLC2 46 0 46 0 0 0 0 0 0 0 0 0 0 Central bank liquidity swaps3 1,359 58 483 49 128 275 41 47 31 9 14 29 194 Foreign currency denominated assets4 18,669 803 6,644 671 1,760 3,780 560 650 420 118 198 394 2,671 Other assets5 38,941 905 17,959 741 1,200 2,944 4,131 2,307 723 613 981 2,029 4,407 Interdistrict settlement account 0+ 14,015- 60,877- 17,057+ 51,367+ 111,030- 31,728- 68,990- 7,725- 5,727- 12,650- 46,911 + 75,253 Total assets 7,712,781 183,381 4,155,197 110,963 288,249 650,973 492,896 411,003 113,878 53,786 95,764 336,175 820,518 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, December 27, 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 2,293,821 79,769 745,273 50,330 109,943 160,782 355,934 123,235 72,911 32,918 47,812 189,753 325,160 Reverse repurchase agreements6 1,165,574 22,519 650,915 19,210 35,818 81,112 78,961 72,658 17,436 7,903 15,070 56,830 107,143 Deposits 4,321,556 72,820 2,822,835 40,892 142,430 419,408 55,768 221,992 22,456 12,776 32,676 89,895 387,607 Depository institutions 3,434,214 72,765 2,044,114 40,891 142,399 419,185 55,740 114,107 22,438 12,603 32,646 89,755 387,572 U.S. Treasury, General Account 713,064 0 713,064 0 0 0 0 0 0 0 0 0 0 Foreign official 9,690 2 9,665 1 4 8 1 1 1 0 0 1 6 Other7 164,588 53 55,993 0 27 215 27 107,883 17 173 30 140 29 Earnings remittances due to the U.S. Treasury8 -131,518 -2,483 -84,510 -1,216 -4,911 -20,343 49 -9,601 -62 -206 -473 -1,657 -6,105 Treasury contributions to credit facilities9 7,438 7,438 0 0 0 0 0 0 0 0 0 0 0 Other liabilities and accrued dividends 13,060 1,521 5,801 233 493 1,524 798 713 172 125 214 344 1,124 Total liabilities 7,669,932 181,584 4,140,314 109,449 283,772 642,484 491,510 408,996 112,914 53,517 95,299 335,165 814,929 Capital Capital paid in 36,065 1,505 12,469 1,270 3,837 7,116 1,182 1,770 812 226 393 867 4,617 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 7,712,781 183,381 4,155,197 110,963 288,249 650,973 492,896 411,003 113,878 53,786 95,764 336,175 820,518 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, December 27, 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 $7.4 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 Dec 27, 2023 Federal Reserve notes outstanding 2,707,134 Less: Notes held by F.R. Banks not subject to collateralization 413,313 Federal Reserve notes to be collateralized 2,293,821 Collateral held against Federal Reserve notes 2,293,821 Gold certificate account 11,037 Special drawing rights certificate account 5,200 U.S. Treasury, agency debt, and mortgage-backed securities pledged1,2 2,277,584 Other assets pledged 0 Memo: Total U.S. Treasury, agency debt, and mortgage-backed securities1,2 7,224,667 Less: Face value of securities under reverse repurchase agreements 1,298,611 U.S. Treasury, agency debt, and mortgage-backed securities eligible to be pledged 5,926,055 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.