The year 2000 was an extraordinary one for the Bank, bringing with it sweeping internal and external changes. At the outset, the successful rollover to a leap year in a new century, more commonly known as Y2K, concluded many months of hard work on this effort by our dedicated employees. We then focused on the future by restructuring our operations and administrative areas along functional, rather than geographical, lines. This major change allows us to become a more agile and efficient organization, more responsive to customer needs. Also, as a result of financial modernization legislation, the Bank quickly adjusted to its new role as "umbrella" supervisor of financial holding companies.

From left (standing): George M. Scalise, Deputy Chairman Robert T. Parry, President John F. Moore, First Vice President Seated: Nelson C. Rising, Chairman Gary G. Michael, Chairman (retired)

In this report, we illustrate the diversity of the environment in which our work is accomplished. The Twelfth Federal Reserve District is distinct in terms of its geography, its significant contribution to the national economy, and its cultural richness. The report also features a range of the initiatives we undertake that both shape and reflect our diverse environment, ranging from constructing a new currency processing center in Arizona to developing the Sovereign Lending Initiative, established in order to increase access to credit for American Indian Sovereign Nations. Our ability to be innovative in our diverse landscape reflects the contributions and dedication of our employees.

We would like to extend our thanks and appreciation to our Twelfth District directors for their invaluable counsel during 2000. The directors' independent assessment of economic and financial conditions throughout our nine western states is critical to the formulation of monetary policy. In particular, we acknowledge the outstanding leadership and many contributions of Gary G. Michael (Chairman and Chief Executive Officer, Albertson's, Inc., Boise, Idaho) who stepped down after serving this Reserve Bank District in various capacities for the past eleven years, the last three as Chairman of the Board.

In addition, we would like to express our sincere thanks and appreciation to the other directors who completed their terms of service during 2000: on the Head Office Board, Krestine Corbin (President and Chief Executive Officer, Sierra Machinery, Inc., Sparks, Nevada) and John V. Rindlaub (President, Northwest Banking, Bank of America, Seattle, Washington); on the Los Angeles Branch Board, Liam E. McGee (President, Bank of America--Southern California, Los Angeles, California); on the Salt Lake City Branch Board, R. D. Cash (Chairman, President, and CEO, Questar Corporation, Salt Lake City, Utah) and Jon M. Huntsman, Jr. (Vice Chairman, Huntsman Corporation, Salt Lake City, Utah); and, on the Federal Advisory Council, Twelfth District Member, Walter A. Dods, Jr. (Chairman and CEO, BancWest Corp., Honolulu, Hawaii).

Nelson C. Rising Chairman		Robert T. Parry President