Consolidated Financial Statements for Bank Holding Companies

Financial Statements for Bank Holding Companies

FRY9C_20110214_i

Consolidated Financial Statements for Bank Holding Companies

OMB: 7100-0128

⚠️ Notice: This form may be outdated. More recent filings and information on OMB 7100-0128 can be found here:

Document [pdf]

Download: pdf | pdf

DRAFT

Draft Instructions
for New and Revised FR Y-9C Report Items
for March 2011

DRAFT
Draft Instructions
for the Proposed New and Revised FR Y-9C Report Items
for March 2011
Contents
General Instructions
Rules of Consolidation

Schedule HI – Income Statement
Memorandum items 9, 9.f, and 9.g

Schedule HI-B, Part I – Charge-offs and Recoveries on Loans and Leases
Items 5 through 5.c

Schedule HC-B – Securities
Items 4.c through 4.c.(2)(b)

Schedule HC-C – Loans and Leases
Item 1.a
Items 6.c and 6.d
Memorandum items 1 through 1.f
Memorandum items 10.c through 10.c.(4)
Memorandum items 11.c through 11.c.(4)

6
7
9
12
13

Schedule HC-D – Trading Assets and Liabilities
Items 4.d and 4.e
Items 6.c through 6.c.(4)
Memorandum items 1.c through 1.c.(4)

13
13
14

Schedule HC-F – Other Assets
Items 5 through 5.c

Schedule HC-K – Quarterly Averages
Items 1.a through 1.c
Items 3.a.(3) through 3.a.(5)(b)

Schedule HC-M – Memoranda
Items 6 through 6.d
Items 7 through 7.b

18
22

DRAFT
Contents (cont.)
Schedule HC-N – Past Due and Nonaccrual Loans, Leases, and Other Assets
Definitions: Restructured in Troubled Debt Restructurings
Items 5 through 5.c
Items 11 through 12.f
Memorandum items 1 through 1.f

23
23
24
27

Schedule HC-P – 1-4 Family Residential Mortgage Banking Activities
General Instructions
Items 4 through 5

30
31

Schedule HC-V – Variable Interest Entities

NOTE: These draft instructions apply to the FR Y-9C Report revisions as described in
the Federal Register notice published on February xx, 2010.

DRAFT
Draft Instructions
for New and Revised FR Y-9C Report Items
for March 2011
General Instructions
RULES OF CONSOLIDATION
For purposes of these reports, all offices (i.e., branches, subsidiaries, VIEs, and IBFs) that are within the
scope of the consolidated bank holding company as defined above are to be reported on a consolidated
basis. Unless the instructions specifically state otherwise, this consolidation shall be on a line-by-line
basis, according to the caption shown. As part of the consolidation process, the results of all transactions
and all intercompany balances (e.g., outstanding asset/debt relationships) between offices, subsidiaries,
and other entities included in the scope of the consolidated bank holding company are to be eliminated in
the consolidation and must be excluded from the Consolidated Financial Statements for Bank Holding
Companies. (For example, eliminate in the consolidation (1) loans made by the bank holding company to
a consolidated subsidiary and the corresponding liability of the subsidiary to the bank holding company,
(2) a consolidated subsidiary's deposits in another bank holding company consolidated subsidiary and
the corresponding cash or interest-bearing asset balance of the subsidiary, and (3) the intercompany
interest income and expense related to such loans and deposits of the bank holding company and its
consolidated subsidiary.)
Exception: For purposes of reporting the total assets of captive insurance and reinsurance subsidiaries in
Schedule HC-M, Memoranda, items 7.a and 7.b, only, bank holding companies should measure the
subsidiaries’ total assets before eliminating intercompany transactions between the consolidated
subsidiary and other offices or subsidiaries of the consolidated bank holding company. Otherwise,
captive insurance and reinsurance subsidiaries should be reported on a consolidated basis as described
in the preceding paragraph.

Schedule HI – Income Statement
Memoranda
Item No.
9

Caption and Instructions
Trading revenue (from cash instruments and derivative instruments). Memorandum
items 9.a through 9.e are to be completed by bank holding companies that reported average
trading assets (in Schedule HC-K, item 4.a) of $2 million or more for any quarter of the
preceding calendar year. Memorandum items 9.f and 9.g are to be completed by bank
holding companies with $100 billion or more in total assets.
Report, in Memorandum items 9.a through 9.e below, a breakdown of trading revenue that
has been included in the body of the income statement in Schedule HI, item 5.c. For each of
the four types of underlying risk exposure, report the combined revenue (net gains and
losses) from trading cash instruments and derivative instruments. For purposes of
Memorandum item 9, the reporting bank holding company should determine the underlying
risk exposure category in which to report the trading revenue from cash instruments and
derivative instruments in the same manner that the bank holding company makes this
determination for other financial reporting purposes. The sum of Memorandum items 9.a
through 9.e must equal Schedule HI, item 5.c.

DRAFT
NOTE: No revisions are proposed to the instructions for Schedule HI, Memorandum
items 9.a through 9.e.
9.f

Impact on trading revenue of changes in the creditworthiness of the bank holding
company’s derivatives counterparties on the bank holding company’s derivative
assets (included in Memorandum items 9.a through 9.e above). Report in this item the
amount included in the trading revenue reported in Schedule HI, Memorandum items 9.a
through 9.e, above that resulted from changes during the calendar year-to-date in the bank
holding company’s credit valuation adjustments (CVA). A CVA is the adjustment to the fair
value of derivatives that accounts for possible nonperformance of the bank holding
company’s derivatives counterparties. It is an estimate of the fair value of counterparty credit
risk.

9.g

Impact on trading revenue of changes in the creditworthiness of the bank holding
company on the bank holding company’s derivative liabilities (included in
Memorandum items 9.a through 9.e above). Report in this item the amount included in the
trading revenue reported in Schedule HI, Memorandum items 9.a through 9.e, above that
resulted from changes during the calendar year-to-date in the bank holding company’s debit
valuation adjustment (DVA). A DVA is the adjustment to the fair value of derivatives that
accounts for possible nonperformance of the bank holding company. It is an estimate of the
fair value of the bank holding company’s own credit risk to its counterparties.

Schedule HI-B, Part I – Charge-offs and Recoveries on Loans and Leases
Item No.

Caption and Instructions

Loans to individuals for household, family, and other personal expenditures. Report in
the appropriate subitem and column loans to individuals for household, family, and other
personal expenditures (as defined for Schedule HC-C, item 6) charged-off and recovered.

5.a

Credit cards. Report in columns A and B, as appropriate, all extensions of credit under
credit cards (as defined for Schedule HC-C, items 6.a) charged-off and recovered.

5.b

Automobile loans. Report in columns A and B, as appropriate, all loans arising from retail
sales of passenger cars and other vehicles such as minivans, vans, sport-utility vehicles,
pickup trucks, and similar light trucks for personal use (as defined for Schedule HC-C, item
6.c) charged-off and recovered.

5.c

Other loans. Report in columns A and B, as appropriate, all other extensions of credit to
individuals for household, family, and other personal expenditures (as defined for Schedule
HC-C, items 6.b and 6.d) charged-off and recovered.

DRAFT
Schedule HC-B – Securities
Item No.

Caption and Instructions

4.c

Commercial MBS. Report in the appropriate columns of the appropriate subitems the
amortized cost and fair value of all holdings of commercial mortgage-backed securities
issued by U.S. Government-sponsored agencies or by others that are not held for trading.
In general, a commercial mortgage-backed security represents an interest in a pool of loans
secured by properties other than 1-4 family residential properties.

4.c.(1)

Commercial mortgage pass-through securities. Report in the appropriate columns of the
appropriate subitems the amortized cost and fair value of all holdings of commercial
mortgage pass-through securities. In general, a commercial mortgage pass-through security
represents an undivided interest in a pool of loans secured by properties other than 1-4 family
residential properties that provides the holder with a pro rata share of all principal and interest
payments on the mortgages in the pool.

4.c.(1)(a)

Issued or guaranteed by FNMA, FHLMC, or GNMA. Report in the appropriate columns the
amortized cost and fair value of all holdings of commercial mortgage pass-through securities
issued by the Federal National Mortgage Association (FNMA) or the Federal Home Loan
Mortgage Corporation (FHLMC) or guaranteed by the Government National Mortgage
Association (GNMA).

4.c.(1)(b)

Other pass-through securities. Report in the appropriate columns the amortized cost and
fair value of all holdings of commercial mortgage pass-through securities issued or
guaranteed by non-U.S. Government issuers.

4.c.(2)

Other commercial mortgage-backed securities. Report in the appropriate columns of the
appropriate subitems the amortized cost and fair value of all CMOs, REMICs, CMO and
REMIC residuals, stripped mortgage-backed securities, and commercial paper backed by
loans secured by properties other than 1-4 family residential properties. Exclude commercial
mortgage pass-through securities (report in Schedule HC-B, item 4.c.(1), above).

4.c.(2)(a)

Issued or guaranteed by FNMA, FHLMC, or GNMA. Report in the appropriate columns the
amortized cost and fair value of all CMOs, REMICs, CMO and REMIC residuals, stripped
mortgage-backed securities, and commercial paper backed by loans secured by properties
other than 1-4 family residential properties that have been issued by the Federal National
Mortgage Association (FNMA) or the Federal Home Loan Mortgage Corporation (FHLMC) or
guaranteed by the Government National Mortgage Association (GNMA).

4.c.(2)(b)

All other commercial MBS. Report in the appropriate columns the amortized cost and fair
value of all CMOs, REMICs, CMO and REMIC residuals, stripped mortgage-backed
securities, and commercial paper backed by loans secured by properties other than 1-4
family residential properties that have been issued or guaranteed by non-U.S. Government
issuers.

DRAFT
Schedule HC-C – Loans and Lease Financing Receivables
Item No.
1.a

Caption and Instructions
Construction, land development, and other land loans. Report in the appropriate subitem
of column B loans secured by real estate made to finance (a) land development (i.e., the
process of improving land – laying sewers, water pipes, etc.) preparatory to erecting new
structures or (b) the on-site construction of industrial, commercial, residential, or farm
buildings. For purposes of this item, "construction" includes not only construction of new
structures, but also additions or alterations to existing structures and the demolition of
existing structures to make way for new structures.
Also include in this item:
(1) Loans secured by vacant land, except land known to be used or usable for agricultural
purposes, such as crop and livestock production (which should be reported in
Schedule HC-C, item 1.b, below, as loans secured by farmland).
(2) Loans secured by real estate the proceeds of which are to be used to acquire and
improve developed and undeveloped property.
(3) Loans made under Title I or Title X of the National Housing Act that conform to the
definition of construction stated above and that are secured by real estate.
Loans written as combination construction-permanent loans secured by real estate should be
reported in this item until construction is completed or principal amortization payments begin,
whichever comes first. When the first of these events occurs, the loans should begin to be
reported in the real estate loan category in Schedule HC-C, item 1, appropriate to the real
estate collateral. For purposes of these reports, a combination construction-permanent loan
arises when the lender enters into a contractual agreement with the original borrower at the
time the construction loan is originated to also provide the original borrower with permanent
financing that amortizes principal after construction is completed and a certificate of
occupancy is obtained (if applicable). This construction-permanent loan structure is intended
to apply to situations where, at the time the construction loan is originated, the original
borrower:
•

•

Is expected to be the owner-occupant of the property upon completion of construction
and receipt of a certificate of occupancy (if applicable), for example, where the financing
is being provided to the original borrower for the construction and permanent financing of
the borrower’s residence or place of business, or
Is not expected to be the owner-occupant of the property, but repayment of the
permanent loan will be derived from rental income associated with the property being
constructed after receipt of a certificate of occupancy (if applicable) rather than from the
sale of the property being constructed.

All construction loans secured by real estate, other than combination construction-permanent
loans as described above, should continue to be reported in this item after construction is
completed unless and until (1) the loan is refinanced into a new permanent loan by the
reporting bank holding company or is otherwise repaid, (2) the bank holding company
acquires or otherwise obtains physical possession of the underlying collateral in full
satisfaction of the debt, or (3) the loan is charged off. For purposes of these reports, a
construction loan is deemed to be refinanced into a new permanent loan only if the bank
holding company originates:

DRAFT

•
•

An amortizing permanent loan to a new borrower (unrelated to the original borrower) who
has purchased the real property, or
A prudently underwritten new amortizing permanent loan at market terms to the original
borrower – including an appropriate interest rate, maturity, and loan-to-value ratio – that
is no longer dependent on the sale of the property for repayment. The loan should have
a clearly identified ongoing source of repayment sufficient to service the required
principal and interest payments over a reasonable and customary period relative to the
type of property securing the new loan. A new loan to the original borrower not meeting
these criteria (including a new loan on interest-only terms or a new loan with a short-term
balloon maturity that is inconsistent with the ongoing source of repayment criterion)
should continue to be reported as a “Construction, land development, and other land
loan” in the appropriate subitem of Schedule RC-C, part I, item 1.a.

Exclude loans to finance construction and land development that are not secured by real
estate (report in other items of Schedule RC-C, part I, as appropriate).

* * * * * * *
6.c

Automobile loans. Report all loans arising from retail sales of passenger cars and other
vehicles such as minivans, vans, sport-utility vehicles, pickup trucks, and similar light trucks
for personal use.
Exclude from automobile loans:
(1) Loans to finance fleet sales (report in Schedule HC-C, item 4).
(2) Personal cash loans secured by automobiles already paid for (report in Schedule HC-C,
item 6.d).
(3) Loans to finance the purchase of commercial vehicles (report in Schedule HC-C, item 4,
item 8, or item 9.b, as appropriate).
(4) Loans to farmers for purchases of private passenger automobiles used in association
with the maintenance or operations of the farm, and loans for purchases of farm
equipment (report in Schedule HC-C, item 3).
(5) Lease financing receivables (report in Schedule HC-C, item 10.a).
All loans to individuals for household, family, and other personal expenditures (i.e., consumer
loans) originated or purchased before April 1, 2011, that are collateralized by automobiles,
regardless of the purpose of the loan, may be classified as automobile loans for purposes of
this schedule and other schedules in which information on automobile loans is to be reported.
For consumer loans originated or purchased on or after April 1, 2011, banks should exclude
from automobile loans any personal cash loans secured by automobiles already paid for and
consumer loans where some of the proceeds are used to purchase an automobile and the
remainder of the proceeds are used for other purposes (report in Schedule HC-C, item 6.d).

6.d

Other consumer loans. Report all other loans to individuals for household, family, and
other personal expenditures (other than those that meet the definition of a “loan secured by
real estate” and other than those for purchasing or carrying securities). Include loans for
such purposes as:

DRAFT
(1) purchases of household appliances, furniture, trailers, and boats;
(2) repairs or improvements to the borrower's residence (that do not meet the definition of a
“loan secured by real estate”);
(3) educational expenses, including student loans;
(4) medical expenses;
(5) personal taxes;
(6) vacations;
(7) consolidation of personal (nonbusiness) debts;
(8) purchases of real estate or mobile homes to be used as a residence by the borrower's
family (that do not meet the definition of a “loan secured by real estate”); and
(9) other personal expenditures.
Other consumer loans may take the form of:
(1) Installment loans, demand loans, single payment time loans, and hire purchase contracts
(for purposes other than retail sales of passenger cars and other vehicles such as
minivans, vans, sport-utility vehicles, pickup trucks, and similar light trucks for personal
use), and should be reported as loans to individuals for household, family, and other
personal expenditures regardless of size or maturity and regardless of whether the loans
are made by the consumer loan department or by any other department of the bank
holding company.
(2) Retail installment sales paper purchased by the bank holding company from merchants
or dealers (other than dealers of passenger cars and other vehicles such as minivans,
vans, sport-utility vehicles, pickup trucks, and similar light trucks), finance companies,
and others.
Exclude from other consumer loans:
(1) All direct and purchased loans, regardless of purpose, that meet the definition of a loan
secured by real estate” as evidenced by mortgages, deeds of trust, land contracts, or
other instruments, whether first or junior liens (e.g., equity loans, second mortgages), on
real estate (report in Schedule HC-C, item 1).
(2) Loans to individuals that do not meet the definition of a “loan secured by real estate” for
the purpose of investing in real estate when the real estate is not to be used as a
residence or vacation home by the borrower or by members of the borrower's family
(report as all other loans in Schedule HC-C, item 9.b).
(3) Loans to individuals for commercial, industrial, and professional purposes and for
"floor plan" or other wholesale financing (report in Schedule HC-C, item 4).
(4) Loans to individuals for the purpose of purchasing or carrying securities (report
in Schedule HC-C, item 9.b).
(5) Loans to individuals for investment (as distinct from commercial, industrial, or
professional) purposes other than those for purchasing or carrying securities (report as all
other loans in Schedule HC-C, item 9.b).
(6) Loans to merchants, automobile dealers, and finance companies on their own promissory
notes, secured by the pledge of installment paper or similar instruments (report in
Schedule HC-C, item 4, or as loans to nondepository financial institutions in Schedule
HC-C, item 9.a, as appropriate).
(7) Loans to farmers, regardless of purpose, to the extent that can be readily identified as
such loans (report in Schedule HC-C, item 3).

DRAFT

6.d
(cont.)

(8) All credit extended to individuals for household, family, and other personal expenditures
arising from:
(a) Credit cards (report in Schedule HC-C, item 6.a);
(b) Prearranged overdraft plans (report in Schedule HC-C, item 6.b); and
(c) Retail sales of passenger cars and other vehicles such as minivans, vans, sport-utility
vehicles, pickup trucks, and similar light trucks for personal use (report in
Schedule HC-C, item 6.c).

* * * * * * *
Memoranda
Item No.
1

Caption and Instructions
Loans restructured in troubled debt restructurings that are in compliance with their
modified terms. Report in the appropriate subitem loans that have been restructured in
troubled debt restructurings and are in compliance with their modified terms. As set forth in
ASC Subtopic 310-40, Receivables – Troubled Debt Restructurings by Creditors (formerly
FASB Statement No. 15, "Accounting by Debtors and Creditors for Troubled Debt
Restructurings," as amended by FASB Statement No. 114, "Accounting by Creditors for
Impairment of a Loan"), a troubled debt restructuring is a restructuring of a loan in which a
bank holding company, for economic or legal reasons related to a borrower's financial
difficulties, grants a concession to the borrower that it would not otherwise consider. For
purposes of this Memorandum item, the concession consists of a modification of terms, such
as a reduction of the loan’s stated interest rate, principal, or accrued interest or an extension
of the loan’s maturity date at a stated interest rate lower than the current market rate for new
debt with similar risk, regardless of whether the loan is secured or unsecured and regardless
of whether the loan is guaranteed by the government or by others.
Once an obligation has been restructured in a troubled debt restructuring, it continues to be
considered a troubled debt restructuring until paid in full or otherwise settled, sold, or charged
off. However, if a restructured obligation is in compliance with its modified terms and the
restructuring agreement specifies an interest rate that at the time of the restructuring is
greater than or equal to the rate that the bank holding company was willing to accept for a
new extension of credit with comparable risk, the loan need not continue to be reported as a
troubled debt restructuring in this Memorandum item in calendar years after the year in which
the restructuring took place. A loan extended or renewed at a stated interest rate equal to
the current interest rate for new debt with similar risk is not considered a troubled debt
restructuring. Also, a loan to a third party purchaser of "other real estate owned" by the
reporting bank holding company for the purpose of facilitating the disposal of such real estate
is not considered a troubled debt restructuring. For further information, see the Glossary
entry for "troubled debt restructurings."
Include in the appropriate subitem all loans restructured in troubled debt restructurings as
defined above that are in compliance with their modified terms, that is, restructured loans (1)
on which all contractual payments of principal or interest scheduled that are due under the
modified repayment terms have been paid or (2) on which contractual payments of both
principal and interest scheduled under the modified repayment terms are less than 30 days
past due.

DRAFT
Exclude from this item (1) those loans restructured in troubled debt restructurings on which
under their modified repayment terms either principal or interest is 30 days or more past due
and (2) those loans restructured in troubled debt restructurings that are in nonaccrual status
under their modified repayment terms. Report such loans restructured in troubled debt
restructurings in the category and column appropriate to the loan in Schedule HC-N, items 1
through 8, column A, B, or C, and in Schedule HC-N, Memoranda items 1.a through 1.f,
column A, B, or C.
Loan amounts should be reported net of unearned income to the extent that they are reported
net of unearned income in Schedule HC-C.
1.a

Construction, land development, and other land loans (in domestic offices):

1.a.(1)

1-4 family construction loans. Report all loans secured by real estate for the purpose of
constructing 1-4 family residential properties (as defined for Schedule RC-C, part I, item
1.a.(1), column B) that have been restructured in troubled debt restructurings and are in
compliance with their modified terms. Exclude from this item 1-4 family construction loans
restructured in troubled debt restructurings that, under their modified repayment terms, are
past due 30 days or more or are in nonaccrual status (report in Schedule RC-N, item 1.a.(1)
and Memorandum item 1.a.(1)).

1.a.(2)

Other construction loans and all land development and other land loans. Report all
construction loans for purposes other than constructing 1-4 family residential properties, all
land development loans, and all other land loans (as defined for Schedule HC-C, item 1.a.(2),
column B) that have been restructured in troubled debt restructurings and are in compliance
with their modified terms. Exclude from this item other construction loans and all land
development and other land loans restructured in troubled debt restructurings that, under
their modified repayment terms, are past due 30 days or more or are in nonaccrual status
(report in Schedule HC-N, item 1.a.(2) and Memorandum item 1.a.(2)).

1.b

Loans secured by 1-4 family residential properties (in domestic offices). Report all
loans secured by 1-4 family residential properties (in domestic offices) (as defined for
Schedule HC-C, item 1.c, column B) that have been restructured in troubled debt
restructurings and are in compliance with their modified terms. Exclude from this item loans
secured by 1-4 family residential properties restructured in troubled debt restructurings that,
under their modified repayment terms, are past due 30 days or more or are in nonaccrual
status (report in Schedule HC-N, item 1.c and Memorandum item 1.b). Also exclude from
this item all 1-4 family construction loans that have been restructured in troubled debt
restructurings and are in compliance with their modified terms (report in Schedule HC-C,
Memorandum item 1.a.(1), above).

1.c

Loans secured by multifamily (5 or more) residential properties (in domestic offices).
Report all loans secured by multifamily (5 or more) residential properties (in domestic offices)
(as defined for Schedule HC-C, item 1.d, column B) that have been restructured in troubled
debt restructurings and are in compliance with their modified terms. Exclude from this item
loans secured by multifamily residential properties restructured in troubled debt restructurings
that, under their modified repayment terms, are past due 30 days or more or are in
nonaccrual status (report in Schedule HC-N, item 1.d and Memorandum item 1.c).

DRAFT
1.d

Secured by nonfarm nonresidential properties (in domestic offices):

1.d.(1)

Loans secured by owner-occupied nonfarm nonresidential properties. Report all loans
secured by owner-occupied nonfarm nonresidential properties (as defined for Schedule HC-C,
item 1.e.(1), column B) that have been restructured in troubled debt restructurings and are in
compliance with their modified terms. Exclude from this item loans secured by owner-occupied
nonfarm nonresidential properties restructured in troubled debt restructurings that, under their
modified repayment terms, are past due 30 days or more or are in nonaccrual status (report in
Schedule HC-N, item 1.e.(1) and Memorandum item 1.d.(1)).

1.d.(2)

Loans secured by other nonfarm nonresidential properties. Report all loans secured by
other nonfarm nonresidential properties (as defined for Schedule HC-C, item 1.e.(2), column
B) that have been restructured in troubled debt restructurings and are in compliance with their
modified terms. Exclude from this item loans secured by other nonfarm nonresidential
properties restructured in troubled debt restructurings that, under their modified repayment
terms, are past due 30 days or more or are in nonaccrual status (report in Schedule HC-N,
item 1.e.(2) and Memorandum item 1.d.(2)).

1.e

Commercial and industrial loans. Report all commercial and industrial loans (as defined
for Schedule HC-C, item 4) that have been restructured in troubled debt restructurings and
are in compliance with their modified terms. Report a breakdown of these restructured loans
between those to U.S. and non-U.S. addressees for the fully consolidated bank in
Memorandum items 1.e.(1) and (2). Exclude commercial and industrial loans restructured in
troubled debt restructurings that, under their modified repayment terms, are past due 30 days
or more or are in nonaccrual status (report in Schedule HC-N, item 4 and Memorandum item
1.e).

1.e.(1)

To U.S. addressees (domicile). Report all commercial and industrial loans to U.S.
addressees (as defined for Schedule HC-C, item 4.a) that have been restructured in troubled
debt restructurings and are in compliance with their modified terms. Exclude from this item
commercial and industrial loans to U.S. addressees restructured in troubled debt
restructurings that, under their modified repayment terms, are past due 30 days or more or
are in nonaccrual status (report in Schedule RC-N, item 4.a and Memorandum item 1.e.(1)).

1.e.(2)

To non-U.S. addressees (domicile). Report all commercial and industrial loans to non-U.S.
addressees (as defined for Schedule HC-C, item 4.b) that have been restructured in troubled
debt restructurings and are in compliance with their modified terms. Exclude from this item
commercial and industrial loans to non-U.S. addressees restructured in troubled debt
restructurings that, under their modified repayment terms, are past due 30 days or more or
are in nonaccrual status.

1.f

All other loans. Report all other loans that cannot properly be reported in Memorandum
items 1.a through 1.e above that have been restructured in troubled debt restructurings and
are in compliance with their modified terms. Exclude from this item all other loans
restructured in troubled debt restructurings that, under their modified repayment terms, are
past due 30 days or more or are in nonaccrual status (report in Schedule HC-N).
Include in this item loans in the following categories that have been restructured in troubled
debt restructurings and are in compliance with their modified terms:
(1) Loans secured by farmland (in domestic offices) (as defined for Schedule HC-C, item 1.b,
column B);
(2) Loans to depository institutions and acceptances of other banks (as defined for
Schedule HC-C, item 2);
(3) Loans to finance agricultural production and other loans to farmers (as defined for
Schedule HC-C, item 3);

DRAFT
(4) Loans to individuals for household, family, and other personal expenditures (as defined
for Schedule HC-C item 6);
(5) Loans to foreign governments and official institutions (as defined for Schedule HC-C,
item 7);
(6) Obligations (other than securities and leases) of states and political subdivisions in the
U.S. (included in Schedule HC-C, item 9.b.(2));
(7) Loans to nondepository financial institutions and other loans (as defined for
Schedule HC-C, item 9); and
(8) Loans secured by real estate in foreign offices (as defined for Schedule HC-C, item 1,
column A).
Report in Schedule HC-C, Memorandum items 1.f.(1) through 1.f.(6), each category of loans
within “All other loans” that have been restructured in troubled debt restructurings and are in
compliance with their modified terms, and the dollar amount of loans in such category, that
exceeds 10 percent of total loans restructured in troubled debt restructurings that are in
compliance with their modified terms (i.e., 10 percent of the sum of Schedule HC-C,
Memorandum items 1.a through 1.f). Preprinted captions have been provided in
Memorandum items 1.f.(1) through 1.f.(6) for reporting the amount of such restructured loans
for the following loan categories if the amount for a loan category exceeds the 10 percent
reporting threshold: Loans secured by farmland (in domestic offices); Loans to depository
institutions and acceptances of other banks; Loans to finance agricultural production and
other loans to farmers; (Consumer) Credit cards; Automobile loans: Other consumer loans;
Loans to foreign governments and official institutions; and Other loans (i.e., Obligations (other
than securities and leases) of states and political subdivisions in the U.S., Loans to
nondepository financial institutions and other loans, and Loans secured by real estate in
foreign offices).

* * * * * * *
10.c

10.c.(1)

Credit cards. Report the total fair value of all extensions of credit to individuals for
household, family, and other personal expenditures arising from credit cards included in
Schedule HC-C, item 6.a, measured at fair value under a fair value option.

10.c.(2)

Other revolving credit plans. Report the total fair value of all extensions of credit to
individuals for household, family, and other personal expenditures arising from prearranged
overdraft plans and other revolving credit plans not accessed by credit cards included in
Schedule HC-C, item 6.b, measured at fair value under a fair value option.

10.c.(3)

Automobile loans. Report the total fair value of loans arising from retail sales of passenger
cars and other vehicles such as minivans, vans, sport-utility vehicles, pickup trucks, and
similar light trucks for personal use included in Schedule HC-C, item 6.c, measured at fair
value under a fair value option.

10.c.(4)

Other consumer loans. Report the total fair value of all other loans to individuals for
household, family, and other personal expenditures included in Schedule HC-C, item 6.d,
measured at fair value under a fair value option.

DRAFT
* * * * * * *
11.c

Loans to individuals for household, family, and other personal expenditures. Report in
the appropriate subitem the total unpaid principal balance outstanding for all loans to
individuals for household, family, and other personal expenditures reported in
Schedule HC-C, Memorandum item 10.c.

11.c.(1)

Credit cards. Report the total unpaid principal balance outstanding for all extensions of
credit to individuals for household, family, and other personal expenditures arising from credit
cards reported in Schedule HC-C, Memorandum item 10.c.(1).

11.c.(2)

Other revolving credit plans. Report the total unpaid principal balance outstanding for all
extensions of credit to individuals for household, family, and other personal expenditures
arising from prearranged overdraft plans and other revolving credit plans not accessed by
credit cards reported in Schedule HC-C, Memorandum item 10.c.(2).

11.c.(3)

Automobile loans. Report the total unpaid principal balance outstanding for loans arising
from retail sales of passenger cars and other vehicles such as minivans, vans, sport-utility
vehicles, pickup trucks, and similar light trucks for personal use reported in Schedule HC-C,
Memorandum item 10.c.(3).

11.c.(4)

Other consumer loans. Report the total unpaid principal balance outstanding for all other
loans to individuals for household, family, and other personal expenditures reported in
Schedule HC-C, Memorandum item 10.c.(4).

Schedule HC-D – Trading Assets and Liabilities
Item No.

Caption and Instructions

4.d

Commercial MBS issued or guaranteed by FNMA, FHLMC or GNMA. Report the total fair
value of all commercial mortgage-backed securities issued by the Federal National Mortgage
Association (FNMA) or the Federal Home Loan Mortgage Corporation (FHLMC) or
guaranteed by the Government National Mortgage Association (GNMA) that are held for
trading.

4.e

All other commercial MBS. Report the total fair value of all commercial mortgage-backed
securities issued or guaranteed by non-U.S. Government issuers that are held for trading.

* * * * * * *
6.c

6.c.(1)

Loans to individuals for household, family, and other personal expenditures. Report in
the appropriate subitem the total fair value of all loans to individuals for household, family,
and other personal expenditures (as defined for Schedule HC-C, item 6) held for trading.
Credit cards. Report the total fair value of all extensions of credit to individuals for
household, family, and other personal expenditures arising from credit cards (as defined for
Schedule HC-C, item 6.a) held for trading.

DRAFT
6.c.(2)

Other revolving credit plans. Report the total fair value of all extensions of credit to
individuals for household, family, and other personal expenditures arising from prearranged
overdraft plans and other revolving credit plans not accessed by credit cards (as defined for
Schedule HC-C, item 6.b) held for trading.

6.c.(3)

Automobile loans. Report the total fair value of loans arising from retail sales of passenger
cars and other vehicles such as minivans, vans, sport-utility vehicles, pickup trucks, and
similar light trucks for personal use (as defined for Schedule HC-C, item 6.c) held for trading.

6.c.(4)

Other consumer loans. Report the total fair value of all other loans to individuals for
household, family, and other personal expenditures (as defined for Schedule HC-C, item 6.d)
held for trading.

* * * * * * *
Memoranda
Item No.

Caption and Instructions

1.c

1.c.(1)

Credit cards. Report the total unpaid principal balance outstanding for all extensions of
credit to individuals for household, family, and other personal expenditures arising from credit
cards held for trading reported in Schedule HC-D, item 6.c.(1).

1.c.(2)

Other revolving credit plans. Report the total unpaid principal balance outstanding for all
extensions of credit to individuals for household, family, and other personal expenditures
arising from prearranged overdraft plans and other revolving credit plans not accessed by
credit cards held for trading reported in Schedule HC-D, item 6.c.(2).

1.c.(3)

Automobile loans. Report the total unpaid principal balance outstanding for all loans arising
from retail sales of passenger cars and other vehicles such as minivans, vans, sport-utility
vehicles, pickup trucks, and similar light trucks for personal use held for trading reported in
Schedule HC-D, item 6.c.(3).

1.c.(4)

Other consumer loans. Report the total unpaid principal balance outstanding for all other
loans to individuals for household, family, and other personal expenditures held for trading
reported in Schedule HC-D, item 6.c.(4).

DRAFT

Schedule HC-F – Other Assets
Item No.
5

Caption and Instructions
Life insurance assets. Report in the appropriate subitem the amount of the bank holding
company’s general account, separate account, and hybrid account holdings of life insurance
that could be realized under the insurance contracts as of the report date. In general, this
amount is the cash surrender value reported to the bank holding company by the insurance
carrier, less any applicable surrender charges not reflected by the carrier in the reported cash
surrender value, on all forms of permanent life insurance policies owned by the bank holding
company, its consolidated subsidiaries, and grantor (rabbi) trusts established by the bank
holding company or its consolidated subsidiaries, regardless of the purposes for acquiring the
insurance. A bank holding company should also consider any additional amounts included in
the contractual terms of the insurance policy in determining the amount that could be realized
under the insurance contract. For further information, see the Glossary entry for “bankowned life insurance.”
Permanent life insurance refers to whole and universal life insurance, including variable
universal life insurance. Purposes for which insurance may be acquired include offsetting
pre- and post-retirement costs for employee compensation and benefit plans, protecting
against the loss of key persons, and providing retirement and death benefits to employees.
Include as life insurance assets the bank holding company’s interest in insurance policies
under split-dollar life insurance arrangements with directors, officers, and employees under
both the endorsement and collateral assignment methods.

5.a

General account life insurance assets. Report the amount of the bank holding company’s
holdings of life insurance assets associated with general account insurance policies. In a
general account life insurance policy, the general assets of the insurance company issuing
the policy support the policy’s cash surrender value.
Also include the portion of the carrying value of separate account policies that represents
general account claims on the insurance company, such as realizable deferred acquisition
costs and mortality reserves.

5.b

Separate account life insurance assets. Report the amount of the bank holding company’s
holdings of life insurance assets associated with separate account insurance policies. In a
separate account policy, the policy’s cash surrender value is supported by assets segregated
from the general assets of the insurance carrier. Under such an arrangement, the
policyholder neither owns the underlying separate account created by the insurance carrier
on its behalf nor controls investment decisions in the underlying account, but does assume all
investment and price risk.
Separate accounts are employed by life insurers to meet specific investment objectives of
policyholders. The accounts are often maintained as separate accounting and reporting
entities for pension plans as well as fixed benefit, variable annuity, and other products.
Investment income and investment gains and losses generally accrue directly to such
policyholders and are not accounted for on the general accounts of the insurer. On the books
of the insurer, the carrying values of separate account assets and liabilities usually
approximate each other with little associated capital. Because they are legally segregated,
the assets of each separate account are not subject to claims on the insurer that arise out of
any other business of the insurance company.

DRAFT
5.c

Hybrid account life insurance assets. Report the amount of the bank holding company’s
holdings of life insurance assets associated with hybrid account insurance policies. A hybrid
account insurance policy combines features of both general and separate account insurance
products. Similar to a general account life insurance policy, the general assets of the
insurance company issuing the policy support the policy’s cash surrender value. However,
like a separate account policy, the assets of a hybrid account assets are protected from
claims on the insurer. Additionally, the bank holding company holding the hybrid account life
insurance policy is able to select the investment strategy in which the insurance premiums
are invested. Hybrid policies do not offer stable value protection, but generally offer a
guaranteed minimum crediting rate.

Schedule HC-K – Quarterly Averages
Item No.

Caption and Instructions

Securities.

1.a

U.S. Treasury securities and U.S. Government agency obligations
(excluding mortgage-backed securities). Report the quarterly average of the
amortized cost of the bank holding company's held-to-maturity and available-for-sale U.S.
Treasury and Government agency obligations (as defined for Schedule HC-B, items 1
and 2, columns A and C).

1.b

Mortgage-backed securities. Report the quarterly average of the amortized cost of the
bank holding company's held-to-maturity and available-for-sale mortgage-backed
securities (as defined for Schedule HC-B, item 4, columns A and C).

1.c

All other securities. Report the quarterly average of the amortized cost of the bank
holding company's held-to-maturity and available-for-sale securities issued by states and
political subdivisions in the U.S., asset-backed securities and structured financial
products, and other debt securities (as defined for Schedule HC-B, items 3, 5, and 6,
columns A and C) plus the quarterly average of the historical cost of investments in
mutual funds and other equity securities with readily determinable fair values (as defined
for Schedule HC-B, item 7, column C).

**********************
3.a.(3)

Loans to finance agricultural production and other loans to farmers. Report
the quarterly average for loans to finance agricultural production and other loans
to farmers in domestic offices (as defined for Schedule HC-C, item 3,
column B).

3.a.(4)

Commercial and industrial loans. Report the quarterly average for
commercial and industrial loans (in domestic offices) (as defined for
Schedule HC-C, item 4, column B).

3.a.(5)

Loans to individuals for household, family, and other personal expenditures:

3.a.(5)(a)

Credit cards. Report the quarterly average for credit cards. For purposes of this
schedule, credit cards (in domestic offices) (as defined for Schedule HC-C, item
6.a)

DRAFT
3.a.(5)(b)

Other. Report the quarterly average for all other loans (in domestic offices) to
individuals for household, family, and other personal expenditures other than
credit cards (as defined for Schedule HC-C, items 6.b, 6.c, and 6.d).

DRAFT
Schedule HC-M – Memoranda
Item No.

Caption and Instructions

Assets covered by loss-sharing agreements with the FDIC. Under a loss-sharing
agreement, the FDIC agrees to absorb a portion of the losses on a specified pool of a failed
insured depository institution’s assets in order to maximize asset recoveries and minimize the
FDIC’s losses. In general, for transactions that occurred before April 2010, the FDIC
reimburses 80 percent of losses incurred by an acquiring institution on covered assets over a
specified period of time up to a stated threshold amount, with the acquirer absorbing 20
percent of the losses on these assets. Any losses above the stated threshold amount are
reimbursed by the FDIC at 95 percent of the losses recognized by the acquirer. For more
recent transactions, the FDIC generally reimburses 80 percent of the losses incurred by the
acquirer on covered assets, with the acquiring institution absorbing 20 percent.
Report in the appropriate subitem the balance sheet carrying amount as of the report date of
all assets acquired from failed insured depository institutions or otherwise purchased from the
FDIC that are covered by loss-sharing agreements with the FDIC. These asset amounts
should also be included in the balance sheet category appropriate to the asset on
Schedule HC, Balance Sheet.
Do not report the “book value” of the covered assets on the failed institution’s books, which is
the amount upon which payments from the FDIC to the reporting bank holding company are
to be based in accordance with the loss-sharing agreement.

6.a

Loans and leases. Report in the appropriate subitem the carrying amount of loans and
leases held for sale and the recorded investment in loans held for investment included in
Schedule HC-C, items 1 through 10 acquired from failed insured depository institutions or
otherwise purchased from the FDIC that are covered by loss-sharing agreements with the
FDIC.

6.a.(1)

Loans secured by real estate (in domestic offices):

6.a.(1)(a)

Construction, land development, and other land loans:

6.a.(1)(a)(1) 1-4 family residential construction loans. Report the amount of 1-4 family residential
construction loans included in Schedule HC-C, item 1.a.(1), column B, acquired from failed
insured depository institutions or otherwise purchased from the FDIC that are covered by
loss-sharing agreements with the FDIC.
6.a.(1)(a)(2) Other construction loans and all land development and other land loans. Report the
amount of other construction loans and all land development and other land loans included in
Schedule HC-C, item 1.a.(2), column B, acquired from failed insured depository institutions or
otherwise purchased from the FDIC that are covered by loss-sharing agreements with the
FDIC.
6.a.(1)(b)

Secured by farmland. Report the amount of loans secured by farmland included in
Schedule HC-C, item 1.b, column B, acquired from failed insured depository institutions or
otherwise purchased from the FDIC that are covered by loss-sharing agreements with the
FDIC.

DRAFT
6.a.(1)(c)

Secured by 1-4 family residential properties:

6.a.(1)(c)(1) Revolving, open-end loans secured by 1-4 family residential properties and extended
under lines of credit. Report the amount of revolving, open-end loans secured by 1-4 family
residential properties and extended under lines of credit loans included in Schedule HC-C,
item 1.c.(1), column B, acquired from failed insured depository institutions or otherwise
purchased from the FDIC that are covered by loss-sharing agreements with the FDIC.
6.a.(1)(c)(2) Closed-end loans secured by 1-4 family residential properties:
6.a.(1)(c)(2)(a)
Secured by first liens. Report the amount of closed-end loans secured by first liens
on 1-4 family residential properties included in Schedule HC-C, item 1.c.(2)(a), column B,
acquired from failed insured depository institutions or otherwise purchased from the FDIC
that are covered by loss-sharing agreements with the FDIC.
6.a.(1)(c)(2)(b) Secured by junior liens. Report the amount of closed-end loans secured by junior liens
on 1-4 family residential properties included in Schedule HC-C, item 1.c.(2)(b), column B,
acquired from failed insured depository institutions or otherwise purchased from the FDIC
that are covered by loss-sharing agreements with the FDIC.
6.a.(1)(d)

Secured by multifamily (5 or more) residential properties. Report the amount of loans
secured by multifamily (5 or more) residential properties included in Schedule HC-C, item 1.d,
column B, acquired from failed insured depository institutions or otherwise purchased from
the FDIC that are covered by loss-sharing agreements with the FDIC.

6.a.(1)(e)

Secured by nonfarm nonresidential properties:

13.a.(1)(e)(1) Loans secured by owner-occupied nonfarm nonresidential properties. Report the
amount of loans secured by owner-occupied nonfarm nonresidential properties included in
Schedule HC-C, item 1.e.(1), column B, acquired from failed insured depository institutions or
otherwise purchased from the FDIC that are covered by loss-sharing agreements with the
FDIC.
6.a.(1)(e)(2) Loans secured by other nonfarm nonresidential properties. Report the amount of loans
secured by other nonfarm nonresidential properties included in Schedule HC-C, item 1.e.(2),
column B, acquired from failed insured depository institutions or otherwise purchased from
the FDIC that are covered by loss-sharing agreements with the FDIC.
6.a.(2)

Loans to finance agricultural production and other loans to farmers. Report the amount
of loans to finance agricultural production and other loans to farmers included in
Schedule HC-C, item 3, column A, acquired from failed insured depository institutions or
otherwise purchased from the FDIC that are covered by loss-sharing agreements with the
FDIC.

6.a.(3)

Commercial and industrial loans. Report the amount of commercial and industrial loans
included in Schedule HC-C, items 4.a and 4.b, column A, acquired from failed insured
depository institutions or otherwise purchased from the FDIC that are covered by loss-sharing
agreements with the FDIC.

DRAFT

6.a.(4)

Loans to individuals for household, family, and other personal expenditures:

6.a.(4)(a)

Credit cards. Report the amount of extensions of credit arising from credit cards included in
Schedule HC-C, item 6.a, column A, acquired from failed insured depository institutions or
otherwise purchased from the FDIC that are covered by loss-sharing agreements with the
FDIC.

6.a.(4)(b)

Automobile loans. Report the amount of automobile loans included in Schedule HC-C, item
6.c, column A, acquired from failed insured depository institutions or otherwise purchased
from the FDIC that are covered by loss-sharing agreements with the FDIC.

6.a.(4)(c)

Other consumer loans. Report the amount of extensions of credit arising from other
revolving credit plans and other consumer loans included in Schedule HC-C, items 6.b and
6.d, column A, acquired from failed insured depository institutions or otherwise purchased
from the FDIC that are covered by loss-sharing agreements with the FDIC.

6.a.(5)

All other loans and all leases. Report the amount of loans that cannot properly be reported
in Schedule HC-C, Memorandum items 6.a.(1) through 6.a.(4), above acquired from failed
insured depository institutions or otherwise purchased from the FDIC that are covered by
loss-sharing agreements with the FDIC. Include in this item covered loans in the following
categories:
(1) Loans to depository institutions and acceptances of other banks included in Schedule
HC-C, items 2.a.(1) through 2.c.(2), column A;
(2) Loans to foreign governments and official institutions included in Schedule HC-C, item 7,
column A;
(3) Obligations (other than securities and leases) of states and political subdivisions in the
U.S. included in Schedule HC-C, item 8, column A;
(4) Loans to nondepository financial institutions and other loans included in Schedule HC-C,
item 9, column A; and
(5) Loans secured by real estate in foreign offices included in Schedule HC-C, item 1,
column A.
Also include all lease financing receivables included in Schedule HC-C, items 10.a and 10.b,
column A, acquired from failed insured depository institutions or otherwise purchased from
the FDIC that are covered by loss-sharing agreements with the FDIC.
Report in Schedule HC-M, items 6.a.(5)(a) through 6.a.(5)(d), each category of loans and
leases within “All other loans and all leases” covered by loss-sharing agreements with the
FDIC, and the dollar amount of covered assets in such category, that exceeds 10 percent of
total loans and leases covered by loss-sharing agreements with the FDIC (i.e., 10 percent of
the sum of Schedule HC-M, items 6.a.(1) through 6.a.(5)). Preprinted captions have been
provided in items 6.a.(5)(a) through 6.a.(5)(d) for reporting the amount of covered loans and
leases for the following loan and lease categories if the amount for a loan or lease category
exceeds the 10 percent reporting threshold: Loans to depository institutions and
acceptances of other banks, Loans to foreign governments and official institutions, Other
loans (i.e., Obligations (other than securities and leases) of states and political subdivisions in
the U.S., Loans to nondepository financial institutions and other loans, and Loans secured by
real estate in foreign offices), and Lease financing receivables.

6.b

Other real estate owned. Report in the appropriate subitem the carrying amount of other
real estate owned (included in Schedule HC, item 7) acquired from failed insured depository
institutions or otherwise purchased from the FDIC that are covered by loss-sharing
agreements with the FDIC.

DRAFT
6.b.(1)

Construction, land development, and other land (in domestic offices). Report the
carrying amount of all other real estate owned included in Schedule HC, item 7, representing
construction, land development, and other land (in domestic offices), acquired from failed
insured depository institutions or otherwise purchased from the FDIC that are covered by
loss-sharing agreements with the FDIC.

6.b.(2)

Farmland (in domestic offices). Report the carrying amount of all other real estate owned
included in Schedule HC, item 7, representing farmland (in domestic offices), acquired from
failed insured depository institutions or otherwise purchased from the FDIC that are covered
by loss-sharing agreements with the FDIC.

6.b.(3)

1-4 family residential properties (in domestic offices). Report the carrying amount of all
other real estate owned included in Schedule HC, item 7, representing 1-4 family residential
properties (in domestic offices), acquired from failed insured depository institutions or
otherwise purchased from the FDIC that are covered by loss-sharing agreements with the
FDIC.

6.b.(4)

Multifamily (5 or more) residential properties (in domestic offices). Report the carrying
amount of all other real estate owned included in Schedule HC, item 7, representing
multifamily (5 or more) residential properties (in domestic offices), acquired from failed
insured depository institutions or otherwise purchased from the FDIC that are covered by
loss-sharing agreements with the FDIC.

6.b.(5)

Nonfarm nonresidential properties (in domestic offices). Report the carrying amount of
all other real estate owned included in Schedule HC, item 7, representing nonfarm
nonresidential properties (in domestic offices), acquired from failed insured depository
institutions or otherwise purchased from the FDIC that are covered by loss-sharing
agreements with the FDIC.

6.b.(6)

In foreign offices. Report the carrying amount of all other real estate owned included in
Schedule HC, item, representing amounts in foreign offices, acquired from failed insured
depository institutions or otherwise purchased from the FDIC that are covered by loss-sharing
agreements with the FDIC.

6.b.(7)

Portion of covered other real estate owned included in items 6.b.(1) through (6) above
that is protected by FDIC loss-sharing agreements. Report the maximum amount
recoverable from the FDIC under loss-sharing agreements covering the other real estate
owned reported in Schedule HC-M, items 13.b.(1) through (6), beyond the amount that has
already been reflected in the measurement of the reporting bank holding company’s
indemnification asset, which represents the right to receive payments from the FDIC under
the loss-sharing agreement.
In general, the maximum amount recoverable from the FDIC on covered other real estate
owned is the carrying amount of the other real estate, as reported in the preceding
Schedule HC-M items, multiplied by the currently applicable loss coverage rate (e.g.,
80 percent or 95 percent). This product will normally be the maximum amount recoverable
because reimbursements from the FDIC for covered losses related to the amount by which
the “book value” of a covered asset on the failed institution’s books (which is the amount
upon which payments under an FDIC loss-sharing agreement are based) exceeds the
amount at which the reporting bank reports the covered asset on Schedule HC, Balance
Sheet, should already have been taken into account in measuring the carrying amount of the
reporting bank’s loss-sharing indemnification asset, which is reported in Schedule HC-F,
item 6, “Other” assets.

DRAFT
6.c

Debt securities. Report the amortized cost of held-to-maturity debt securities (included in
Schedule HC, items 2.a) and the fair value of available-for-sale debt securities (included in
Schedule HC, item 2.b) acquired from failed insured depository institutions or otherwise
purchased from the FDIC and covered by loss-sharing agreements with the FDIC.

6.d

Other assets. Report the balance sheet carrying amount of all assets that cannot properly
be reported in Schedule HC-M, items 6.a through 6.c, and have been acquired from failed
insured depository institutions or otherwise purchased from the FDIC and are covered by
loss-sharing agreements with the FDIC.
Exclude FDIC loss-sharing indemnification assets. These indemnification assets represent
the carrying amount of the right to receive payments from the FDIC for losses incurred on
specified assets acquired from failed insured depository institutions or otherwise purchased
from the FDIC that are covered by loss-sharing agreements with the FDIC. Report FDIC
loss-sharing indemnification assets in Schedule HC-F, item 6, “Other” assets.

Captive insurance and reinsurance subsidiaries:

7.a

Total assets of captive insurance subsidiaries. Report the carrying amount of all assets
held by captive insurance subsidiaries of the reporting bank holding company. A captive
insurance company is a limited purpose insurer licensed as a direct writer of insurance.
Some common lines of business include credit life, accident, and health insurance; disability
insurance; and employee benefits coverage. Report total assets before eliminating
intercompany transactions between the consolidated insurance subsidiary and other offices
or subsidiaries of the consolidated bank company.

7.b

Total assets of captive reinsurance subsidiaries. Report the carrying amount of all assets
held by captive reinsurance subsidiaries of the reporting bank holding company.
Reinsurance is the transfer, with indemnification, of all or part of the underwriting risk from
one insurer to another for a portion of the premium or other consideration. For further
information, see the Glossary entry for “reinsurance.”
Some common lines of business include credit life, accident, and health reinsurance;
disability reinsurance; reinsurance of employee benefits coverage; private mortgage guaranty
reinsurance; and terrorism risk reinsurance. Report total assets before eliminating
intercompany transactions between the consolidated reinsurance subsidiary and other offices
or subsidiaries of the consolidated bank holding company.

DRAFT
Schedule HC-N – Past Due and Nonaccrual Loans, Leases, and Other Assets
Definitions
Restructured in Troubled Debt Restructurings – A troubled debt restructuring is a restructuring of a loan in
which a bank holding company, for economic or legal reasons related to a borrower's financial difficulties,
grants a concession to the borrower that it would not otherwise consider. For purposes of this schedule,
the concession consists of a modification of terms, such as a reduction of the loan’s stated interest rate,
principal, or accrued interest or an extension of the loan’s maturity date at a stated interest rate lower
than the current market rate for new debt with similar risk, regardless of whether the loan is secured or
unsecured and regardless of whether the loan is guaranteed by the government or by others.
Once an obligation has been restructured in a troubled debt restructuring, it continues to be considered a
troubled debt restructuring until paid in full or otherwise settled, sold, or charged off. However, if a
restructured obligation is in compliance with its modified terms and the restructuring agreement specifies
an interest rate that at the time of the restructuring is greater than or equal to the rate that the bank
holding company was willing to accept for a new extension of credit with comparable risk, the loan need
not continue to be reported as a troubled debt restructuring in calendar years after the year in which the
restructuring took place. A loan extended or renewed at a stated interest rate equal to the current interest
rate for new debt with similar risk is not considered a troubled debt restructuring. Also, a loan to a third
party purchaser of "other real estate owned" by the reporting bank holding company for the purpose of
facilitating the disposal of such real estate is not considered a troubled debt restructuring.
For further information, see the Glossary entry for "troubled debt restructurings."

* * * * * * * * * *
Item No.

Caption and Instructions

Loans to individuals for household, family, and other personal expenditures. Report in
the appropriate subitem and column the amount of all loans to individuals for household,
family, and other personal expenditures (i.e., consumer loans) included in Schedule HC-C,
item 6, that are past due 30 days or more or are in nonaccrual status as of the report date.

5.a

Credit cards. Report in the appropriate column the amount of all extensions of credit to
individuals for household, family, and other personal expenditures arising from credit cards
included in Schedule HC-C, item 6.a, that are past due 30 days or more or are in nonaccrual
status as of the report date.

5.b

Automobile loans. Report in the appropriate column the amount of loans arising from retail
sales of passenger cars and other vehicles such as minivans, vans, sport-utility vehicles,
pickup trucks, and similar light trucks for personal use included in Schedule HC-C, item 6.c,
that are past due 30 days or more or are in nonaccrual status as of the report date.

5.c

Other consumer loans. Report in the appropriate column the amount of all other loans to
individuals for household, family, and other personal expenditures included in Schedule HCC, items 6.b and 6.d, that are past due 30 days or more or are in nonaccrual status as of the
report date.

* * * * * * * * * *

DRAFT
Item No.
11

Caption and Instructions
Loans and leases reported in items 1 through 8 above that are wholly or partially
guaranteed by the U.S. Government, excluding loans and leases covered by losssharing agreements with the FDIC. Report in the appropriate column the aggregate
recorded investment in all loans and leases reported in Schedule HC-N, items 1 through 8,
above for which repayment of principal is wholly or partially guaranteed or insured by the U.S.
Government, including its agencies and its government-sponsored agencies, but excluding
loans and leases covered by loss-sharing agreements with the FDIC, which are reported in
Schedule HC-N, item 12, below. Examples include loans guaranteed by the Small Business
Administration and the Federal Housing Administration. Amounts need not be reported in
this item and in items 11.a and 11.b below if they are considered immaterial.
Exclude from this item loans and leases guaranteed or insured by state or local governments,
state or local government agencies, foreign (non-U.S.) governments, and private agencies or
organizations. Also exclude loans and leases collateralized by securities issued by the
U.S. Government, including its agencies and its government-sponsored agencies.

11.a

Guaranteed portion of loans and leases included in item 11 above, excluding rebooked
“GNMA loans.” Report in the appropriate column the maximum amount recoverable from
the U.S. Government, including its agencies and its government-sponsored agencies, under
the guarantee or insurance provisions applicable to the loans and leases included in
Schedule HC-N, item 11, above.
Seller-servicers of GNMA loans should exclude all delinquent rebooked GNMA loans that
have been repurchased or are eligible for repurchase from this item (report such rebooked
GNMA loans in item 11.b below). Servicers of GNMA loans should exclude individual
delinquent loans (for which they were not the transferor) that they have purchased out of
GNMA securitizations from this item (report such purchased GNMA loans in item 11.b below).

11.b

Rebooked "GNMA loans" that have been repurchased or are eligible for repurchase
included in item 11 above. Report in the appropriate column the recorded investment in:
(1) Delinquent rebooked GNMA loans that have been repurchased or are eligible for
repurchase by seller-servicers of GNMA loans; and
(2) Delinquent loans that have been purchased out of GNMA securitizations by servicers of
GNMA loans that were not the transferors of the loans.

12.a
12.a.(1)

Loans and leases reported in items 1 through 8 above that are covered by loss-sharing
agreements with the FDIC. Report in the appropriate subitem and column the aggregate
recorded investment in all loans and leases covered by loss-sharing agreements with the
FDIC and reported in Schedule HC-M, items 6.a.(1)(a)(1) through 6.a.(5), that have been
included in Schedule HC-N, items 1 through 8, because they are past due 30 days or more or
are in nonaccrual status as of the report date. Amounts need not be reported in
Schedule HC-N, items 12.a.(1)(a) through 12.f, below if they are considered immaterial.
Loans secured by real estate (in domestic offices):
Construction, land development, and other land loans:

12.a.(1)(a) 1-4 family residential construction loans. Report in the appropriate column the amount of
all covered 1-4 family residential construction loans reported in Schedule HC-M,
item 6.a.(1)(a)(1), that are included in Schedule HC-N, item 1.a.(1), above because they are
past due 30 days or more or are in nonaccrual status as of the report date.

DRAFT
12.a.(1)(b) Other construction loans and all land development and other land loans. Report in the
appropriate column the amount of all other covered construction loans and all covered land
development and other land loans reported in Schedule HC-M, item 6.a.(1)(a)(2), that are
included in Schedule HC-N, item 1.a.(2), above because they are past due 30 days or more
or are in nonaccrual status as of the report date.
12.a.(2)

Secured by farmland. Report in the appropriate column the amount of all covered loans
secured by farmland reported in Schedule HC-M, item 6.a.(1)(b), that are included in
Schedule HC-N, item 1.b, above because they are past due 30 days or more or are in
nonaccrual status as of the report date.

12.a.(3)

Secured by 1-4 family residential properties:

12.a.(3)(a) Revolving, open-end loans secured by 1-4 family residential properties and extended
under lines of credit. Report in the appropriate column the amount of all covered revolving,
open-end loans secured by 1-4 family residential properties and extended under lines of
credit loans held for sale and held for investment reported in Schedule HC-M,
item 6.a.(1)(c)(1), that are included in Schedule HC-N, item 1.c.(1), above because they are
past due 30 days or more or are in nonaccrual status as of the report date.
12.a.(3)(b) Closed-end loans secured by 1-4 family residential properties:
12.a.(3)(b)(1) Secured by first liens. Report in the appropriate column the amount of all covered
closed-end loans secured by first liens on 1-4 family residential properties reported in
Schedule HC-M, item 6.a.(1)(c)(2)(a), that are included in Schedule HC-N, item 1.c.(2)(a),
above because they are past due 30 days or more or are in nonaccrual status as of the report
date.
12.a.(3)(b)(2) Secured by junior liens. Report in the appropriate column the amount of all covered
closed-end loans secured by junior liens on 1-4 family residential properties reported in
Schedule HC-M, item 6.a.(1)(c)(2)(b), that are included in Schedule HC-N, item 1.c.(2)(b),
above because they are past due 30 days or more or are in nonaccrual status as of the report
date.
12.a.(4)

Secured by multifamily (5 or more) residential properties. Report in the appropriate
column the amount of all covered loans secured by multifamily (5 or more) residential
properties reported in Schedule HC-M, item 6.a.(1)(d), that are included in Schedule HC-N,
item 1.d, above because they are past due 30 days or more or are in nonaccrual status as of
the report date.

12.a.(5)

Secured by nonfarm nonresidential properties:

12.a.(5)(a) Loans secured by owner-occupied nonfarm nonresidential properties. Report in the
appropriate column the amount of all covered loans secured by owner-occupied nonfarm
nonresidential properties reported in Schedule HC-M, item 6.a.(1)(e)(1), that are included in
Schedule HC-N, item 1.e.(1), above because they are past due 30 days or more or are in
nonaccrual status as of the report date.
12.a.(5)(b) Loans secured by other nonfarm nonresidential properties. Report in the appropriate
column the amount of all covered loans secured by other nonfarm nonresidential properties
reported in Schedule HC-M, item 6.a.(1)(e)(2), that are included in Schedule HC-N,
item 1.e.(2), above because they are past due 30 days or more or are in nonaccrual status as
of the report date.

DRAFT
12.b

Loans to finance agricultural production and other loans to farmers. Report in the
appropriate column the amount of all covered loans to finance agricultural production and
other loans to farmers reported in Schedule HC-M, item 6.a.(2), that are included in Schedule
HC-N, item 3, above because they are past due 30 days or more or are in nonaccrual status
as of the report date.

12.c

Commercial and industrial loans. Report in the appropriate column the amount of all
covered commercial and industrial loans reported in Schedule HC-M, item 6.a.(3), that are
included in Schedule HC-N, item 4, above because they are past due 30 days or more or are
in nonaccrual status as of the report date.

12.d

Loans to individuals for household, family, and other personal expenditures:

12.d.(1)

Credit cards. Report in the appropriate column the amount of all covered extensions of
credit arising from credit cards reported in Schedule HC-M, item 6.a.(4)(a), that are included
in Schedule HC-N, item 6.a, above because they are past due 30 days or more or are in
nonaccrual status as of the report date.

12.d.(2)

Automobile loans. Report in the appropriate column the amount of all covered automobile
loans reported in Schedule HC-M, item 6.a.(4)(b), that are included in Schedule HC-N,
item 6.c, above because they are past due 30 days or more or are in nonaccrual status as of
the report date.

12.d.(3)

Other consumer loans. Report in the appropriate column the amount of all covered
extensions of credit arising from other revolving credit plans and all other covered consumer
loans reported in Schedule HC-M, item 6.a.(4)(c), that are included in Schedule HC-N, items
6.b and 6.d, above because they are past due 30 days or more or are in nonaccrual status as
of the report date.

12.e

All other loans and all leases. Report in the appropriate column the amount of covered
loans and leases reported in Schedule HC-M, item 6.a.(5), “All other loans and all leases,”
that are past due 30 days or more or are in nonaccrual status as of the report date, Include
in the appropriate column of this item covered loans in the following categories that are past
due 30 days or more or are in nonaccrual status as of the report date:
(1) Loans to depository institutions and acceptances of other banks included in
Schedule HC-N, item 2;
(2) Loans to foreign governments and official institutions included in Schedule HC-N, item 6;
(3) Obligations (other than securities and leases) of states and political subdivisions in the
U.S. included in Schedule HC-N, item 7;
(4) Loans to nondepository financial institutions and other loans included in Schedule HC-N,
item 7; and
(5) Loans secured by real estate in foreign offices included in Schedule HC-N, item 1.f.
Also include in the appropriate column all covered lease financing receivables included in
Schedule HC-N, item 8, above that are past due 30 days or more or are in nonaccrual status
as of the report date.
For each category of loans and leases within “All other loans and all leases” for which the
reporting bank holding company reported the amount of covered loans or leases in Schedule
HC-M, items 6.a.(5)(a) through 6.a.(5)(d), report in the appropriate column in Schedule HC-N,
items 12.e.(1) through 12.e.(4), the amount of covered loans or leases in that category that
are past due 30 days or more or are in nonaccrual status as of the report date.

DRAFT
12.f

Portion of covered loans and leases included in items 12.a through 12.e above that is
protected by FDIC loss-sharing agreements. Report the maximum amount recoverable
from the FDIC under loss-sharing agreements covering the past due and nonaccrual loans
and leases reported in Schedule HC-N, items 12.a.(1)(a) through 12.e, above beyond the
amount that has already been reflected in the measurement of the reporting bank holding
company’s indemnification asset, which represents the right to receive payments from the
FDIC under the loss-sharing agreement.
In general, the maximum amount recoverable from the FDIC on covered past due and
nonaccrual loans and leases is the recorded amount of these loans and leases, as reported
in Schedule HC-N, items 12.a.(1)(a) through 12.e, multiplied by the currently applicable loss
coverage rate (e.g., 80 percent or 95 percent). This product will normally be the maximum
amount recoverable because reimbursements from the FDIC for covered losses related to
the amount by which the “book value” of a covered asset on the failed institution’s books
(which is the amount upon which payments under an FDIC loss-sharing agreement are
based) exceeds the amount at which the reporting bank holding company reports the covered
asset on Schedule HC, Balance Sheet, should already have been taken into account in
measuring the carrying amount of the reporting bank holding company’s loss-sharing
indemnification asset, which is reported in Schedule HC-F, item 6, “Other” assets.

* * * * * * * * * *
Memoranda
Item No.
1

Caption and Instructions
Loans restructured in troubled debt restructurings included in Schedule HC-N, items 1
through 7, above. Report in the appropriate subitem and column loans that have been
restructured in troubled debt restructurings (as described in “Definitions” above) and are past
due 30 days or more or are in nonaccrual status as of the report date. Such loans will have
been included in one or more of the loan categories in items 1 through 7 of this schedule.
Exclude all loans restructured in troubled debt restructurings that are in compliance with their
modified terms (report in Schedule HC-C, Memorandum item 1),
For further information, see the Glossary entry for "troubled debt restructurings."

1.a

Construction, land development, and other land loans (in domestic offices):

1.a.(1)

1-4 family construction loans. Report in the appropriate column all loans secured by real
estate for the purpose of constructing 1-4 family residential properties included in item 1.a.(1)
of this schedule that have been restructured in troubled debt restructurings and, under their
modified repayment terms, are past due 30 days or more or are in nonaccrual status as of the
report date.

1.a.(2)

Other construction loans and all land development and other land loans. Report in the
appropriate column all construction loans for purposes other than constructing 1-4 family
residential properties, all land development loans, and all other land loans included in item
1.a.(2) of this schedule that have been restructured in troubled debt restructurings and, under
their modified repayment terms, are past due 30 days or more or are in nonaccrual status as
of the report date.

DRAFT
1.b

Loans secured by 1-4 family residential properties (in domestic offices). Report in the
appropriate column all loans secured by 1-4 family residential properties (in domestic offices)
included in item 1.c of this schedule that have been restructured in troubled debt
restructurings and, under their modified repayment terms, are past due 30 days or more or
are in nonaccrual status as of the report date.

1.c

Loans secured by multifamily (5 or more) residential properties (in domestic offices).
Report in the appropriate column all loans secured by multifamily (5 or more) residential
properties (in domestic offices) included in item 1.d of this schedule that have been
restructured in troubled debt restructurings and, under their modified repayment terms, are
past due 30 days or more or are in nonaccrual status as of the report date.

1.d

Secured by nonfarm nonresidential properties (in domestic offices:

1.d.(1)

Loans secured by owner-occupied nonfarm nonresidential properties. Report in the
appropriate column all loans secured by owner-occupied nonfarm nonresidential properties
included in item 1.e.(1) of this schedule that have been restructured in troubled debt
restructurings and, under their modified repayment terms, are past due 30 days or more or
are in nonaccrual status as of the report date.

1.d.(2)

Loans secured by other nonfarm nonresidential properties. Report in the appropriate
column all nonfarm nonresidential real estate loans not secured by owner-occupied nonfarm
nonresidential properties included in item 1.e.(2) of this schedule that have been restructured
in troubled debt restructurings and, under their modified repayment terms, are past due 30
days or more or are in nonaccrual status as of the report date.

1.e

Commercial and industrial loans. Report all commercial and industrial loans included in
item 4 of this schedule that have been restructured in troubled debt restructurings and, under
their modified repayment terms, are past due 30 days or more or are in nonaccrual status as
of the report date. Report a breakdown of these restructured loans between those to U.S.
and non-U.S. addressees for the fully consolidated bank holding company in Memorandum
items 1.e.(1) and (2).

1.e.(1)

To U.S. addressees (domicile). Report in the appropriate column all commercial and
industrial loans to U.S. addressees included in item 4.a of this schedule that have been
restructured in troubled debt restructurings and, under their modified repayment terms, are
past due 30 days or more or are in nonaccrual status as of the report date.

1.e.(2)

To non-U.S. addressees (domicile). Report in the appropriate column all commercial and
industrial loans to non-U.S. addressees included in item 4.b of this schedule that have been
restructured in troubled debt restructurings and, under their modified repayment terms, are
past due 30 days or more or are in nonaccrual status as of the report date.

1.f

All other loans. Report in the appropriate column all other loans that cannot properly be
reported in Memorandum items 1.a through 1.e above that have been restructured in troubled
debt restructurings and, under their modified repayment terms, are past due 30 days or more
or are in nonaccrual status as of the report date. Include in the appropriate column of this
item all loans in the following categories that have been restructured in troubled debt
restructurings and, under their modified repayment terms, are past due 30 days or more or
are in nonaccrual status as of the report date:
(1) Loans secured by farmland (in domestic offices) included in Schedule HC-N, item 1.b;
(2) Loans to depository institutions and acceptances of other banks included in
Schedule HC-N, item 2;
(3) Loans to finance agricultural production and other loans to farmers included in
Schedule HC-N, item 3;

DRAFT
(4)
(5)
(6)
(7)
(8)

Consumer credit cards included in Schedule HC-N, item 5.a;
Consumer automobile loans included in Schedule HC-N, item 5.b;
Other consumer loans included in Schedule HC-N, items 5.c;
Loans to foreign governments and official institutions included in Schedule HC-N, item 6;
Obligations (other than securities and leases) of states and political subdivisions in the
U.S. included in Schedule HC-N, item 7;
(9) Loans to nondepository financial institutions and other loans included in Schedule HC-N,
item 7; and
(10)Loans secured by real estate in foreign offices included in Schedule HC-N, item 1.f.
Report in Schedule HC-N, Memorandum items 1.f.(1) through 1.f.(6), each category of loans
within “All other loans” that have been restructured in troubled debt restructurings and, under
their modified repayment terms, are past due 30 days or more or are in nonaccrual status as
of the report date, and the dollar amount of loans in such category, that exceeds 10 percent
of total loans restructured in troubled debt restructurings that are past due 30 days or more or
are in nonaccrual status as of the report date (i.e., 10 percent of the sum of Schedule HC-N,
Memorandum items 1.a through 1.e plus Memorandum item 1.f, columns A through C).
Preprinted captions have been provided in Memorandum items 1.f.(1) through 1.f.(6) for
reporting the amount of such restructured loans for the following loan categories if the
amount for a loan category exceeds this 10 percent reporting threshold: Loans secured by
farmland (in domestic offices); Loans to depository institutions and acceptances of other
banks; Loans to finance agricultural production and other loans to farmers; (Consumer) credit
cards; (Consumer) automobile loans; Other consumer loans; Loans to foreign governments
and official institutions; and Other loans (i.e., Obligations (other than securities and leases) of
states and political subdivisions in the U.S.; Loans to nondepository financial institutions and
other loans; and Loans secured by real estate in foreign offices).

DRAFT
Schedule HC-P – 1-4 Family Residential Mortgage Banking Activities
General Instructions
Schedule HC-P is to be completed by (1) all bank holding companies with $1 billion or more in total
assets and (2) those bank holding companies with less than $1 billion in total assets where any of the
following residential mortgage banking activities (in domestic offices) exceeds $10 million for two
consecutive quarters:
(a) Closed-end and open-end first lien and junior lien 1-4 family residential mortgage loan originations
and purchases for resale from all sources during a calendar quarter; or
(b) Closed-end and open-end first lien and junior lien 1-4 family residential mortgage loan sales during a
calendar quarter; or
(c) Closed-end and open-end first lien and junior lien 1-4 family residential mortgage loans held for sale
and held for trading at calendar quarter-end.
For purposes of measuring 1-4 family residential mortgage banking activities (at bank holding companies
with less than $1 billion in total assets) and reporting on these activities in Schedule HC-P, bank holding
companies should include those 1-4 family residential mortgage loans that would be reportable as held
for sale as well as those that would be reportable as held for trading.
For a bank holding company with less than $1 billion in total assets, the bank holding company must
complete Schedule HC-P beginning the second quarter in which the $10 million threshold is exceeded
and continue to complete the schedule through the end of the calendar year. Open-end mortgage
banking activities should be measured using the “total commitment under the lines of credit” as defined
below. For example, if the bank holding company’s closed-end and open-end first and junior lien 1-4
family residential mortgage loan originations and purchases for resale from all sources exceeded $10
million during the quarter ended June 30, 2010, and the bank holding company’s sales of such loans
exceeded $10 million during the quarter ended September 30. 2010, the bank holding company would be
required to complete Schedule HC-P in its September 30 and December 31, 2010, FR Y-9C reports. If its
total assets remain less than $1 billion, the level of this bank holding company’s mortgage banking
activities during the fourth quarter of 2010 and the first quarter of 2011 would determine whether it would
need to complete Schedule HC-P each quarter during 2011 beginning March 31, 2011.
For purposes of Schedule HC-P, closed-end 1-4 family residential mortgage loans are defined in
Schedule RC-C, part I, item 1.c.(2), “Closed-end loans secured by 1-4 family residential properties.”
All closed-end 1-4 family residential mortgage loans secured by junior (i.e., other than first) liens should
be reported as junior liens in Schedule RC-P even if the bank has also originated or purchased a loan
secured by a first lien on the same 1-4 family residential property and there are no intervening junior liens.
Open-end 1-4 family residential mortgage loans are defined in Schedule RC-C, part I, item 1.c.(1),
“Revolving, open-end loans secured by 1-4 family residential properties and extended under lines of
credit.” These Schedule RC-C definitions also apply to closed-end and open-end 1-4 family residential
mortgage loans that would be reportable as held for trading in Schedule RC-D and in Schedule RC,
item 5, “Trading assets.”
For purposes of reporting on open-end loans extended under lines of credit in Schedule RC-P, the “total
commitment under the lines of credit” is defined as the total amount of the lines of credit granted to
customers at the time the open-end credits were originated. For retail and wholesale originations of such
open-end loans, the “principal amount funded under the lines of credit” is defined as the initial fundings
made to customers on newly established lines of credit. For open-end loans purchased, sold, held for
sale, and repurchased or indemnified, the “principal amount funded under the lines of credit” is defined as
the principal balance outstanding of loans extended under lines of credit at the transaction date or at
quarter-end, as appropriate.

* * * * * * * * * *

DRAFT
Item No.

Caption and Instructions

1–4 family residential mortgage loans held for sale or trading at quarter-end. Report in
the appropriate subitem closed-end and open-end 1-4 family residential mortgages held for
sale or trading as of the quarter-end report date and included in Schedule HC, item 4.a,
“Loans and leases held for sale,” and in Schedule HC, item 5, “Trading assets.” Loans held
for sale should be reported at the lower of cost or fair value consistent with their presentation
in Schedule HC, item 4.a. Loans held for trading should be reported at fair value consistent
with their presentation in Schedule HC, item 5. Closed-end and open-end 1-4 family
residential mortgage loans held for sale or trading at quarter-end include any mortgage loans
transferred at any time from the bank holding company’s loan portfolio to a held-for-sale
account or a trading account that have not been sold by quarter-end.

4.a

Closed-end first liens. Report the carrying amount of closed-end first lien 1-4 family
residential mortgage loans held for sale or trading at quarter-end.

4.b

Closed-end junior liens. Report the carrying amount of closed-end junior lien 1-4 family
residential mortgage loans held for sale or trading at quarter-end.

4.c

Open-end loans extended under lines of credit:

4.c.(1)

Total commitment under the lines of credit. Report the total amount of open-end
commitments under revolving, open-end lines of credit secured by 1-4 family residential
properties held for sale or trading at quarter-end.

4.c.(2)

Principal amount funded under the lines of credit. Report the total principal amount
funded under open-end commitments associated with the revolving, open-end lines of credit
secured by 1-4 family residential properties held for sale or trading at quarter-end reported in
item 4.c.(1) above.

Noninterest income for the quarter from the sale, securitization, and servicing of
1-4 family residential mortgage loans. Report in the appropriate subitem the noninterest
income earned during the calendar quarter ending on the report date from mortgage banking
activities involving closed-end and open-end 1-4 family residential mortgage loans. Include
the portion of the consolidated bank holding company’s “Trading revenue,” “Net servicing
fees,” “Net securitization income,” and “Net gains (losses) on sales of loans and leases”
(items 5.c, 5.f, 5.g, and 5.i of Schedule HI) earned during the quarter that is attributable to
closed-end and open-end 1-4 family residential mortgage loans.

DRAFT
Schedule HC-V – Variable Interest Entities
General Instructions
A variable interest entity (VIE), as described in ASC Topic 810, Consolidation (formerly FASB
Interpretation No.46 (revised December 2003), “Consolidation of Variable Interest Entities,” as amended
by FASB Statement No. 167, "Amendments to FASB Interpretation No. 46(R)”), is an entity in which equity
investors do not have sufficient equity at risk for that entity to finance its activities without additional
subordinated financial support or, as a group, the holders of the equity investment at risk lack one or
more of the following three characteristics: (a) the power, through voting rights or similar rights, to direct
the activities of an entity that most significantly impact the entity’s economic performance, (b) the
obligation to absorb the expected losses of the entity, or (c) the right to receive the expected residual
returns of the entity.
Variable interests in a VIE are contractual, ownership, or other pecuniary interests in an entity that
change with changes in the fair value of the entity’s net assets exclusive of variable interests. When a
bank holding company or other company has a variable interest or interests in a VIE, ASC Topic 810
provides guidance for determining whether the bank holding company or other company must consolidate
the VIE. If a bank holding company or other company has a controlling financial interest in a VIE, it is
deemed to be the primary beneficiary of the VIE and, therefore, must consolidate the VIE. For further
information, see the Glossary entry for “variable interest entity.”
Schedule HC-V collects information on VIEs that have been consolidated by the reporting bank holding
company because the bank holding company or a consolidated subsidiary is the primary beneficiary of the
VIE. Schedule HC-V should be completed on a fully consolidated basis, i.e., after eliminating
intercompany transactions. The asset and liability amounts to be reported in Schedule HC-V should be
the same amounts at which these assets and liabilities are reported on Schedule HC, Balance Sheet,
e.g., held-to-maturity securities should be reported at amortized cost and available-for-sale securities
should be reported at fair value.
Column Instructions
Column A, Securitization Vehicles: Securitization vehicles include VIEs that have been created to pool
and repackage mortgages, other assets, or other credit exposures into securities that can be transferred
to investors.
Column B, ABCP Conduits: Asset-backed commercial paper (ABCP) conduits include VIEs that
primarily issue externally rated commercial paper backed by assets or other exposures.
Column C, Other VIEs: Other VIEs include VIEs other than securitization vehicles and ABCP conduits.
For purposes of Schedule HC-V, information about each consolidated VIE should be included in only one
of the three columns of the schedule. The column selected for a particular consolidated VIE should be
based on the purpose and design of the VIE and this column should be used consistently over time.
Item Instructions
Item No.
1

Caption and Instructions
Assets of consolidated variable interest entities (VIEs) that can be used only to settle
obligations of the consolidated VIEs. Report in the appropriate subitem and column those
assets of consolidated VIEs reported in Schedule HC, Balance Sheet, that can be used only
to settle obligations of the same consolidated VIEs and any related allowance for loan and
lease losses. Exclude assets of consolidated VIEs that cannot be used only to settle
obligations of the same consolidated VIEs (report such assets in Schedule HC-V, item 3,
below).

DRAFT
1.a

Cash and balances due from depository institutions. Report in the appropriate column
the amount of cash and balances due from depository institutions held by consolidated VIEs
included in Schedule HC, item 1.a, “Noninterest-bearing balances and currency and coin,”
and item 1.b, “Interest-bearing balances,” that can be used only to settle obligations of the
same consolidated VIEs.

1.b

Held-to-maturity securities. Report in the appropriate column the amount of held-tomaturity securities held by consolidated VIEs included in Schedule HC, item 2.a, “Held-tomaturity securities,” that can be used only to settle obligations of the same consolidated VIEs.

1.c.

Available-for-sale securities. Report in the appropriate column the amount of available-forsale securities held by consolidated VIEs included in Schedule HC, item 2.b, “Available-forsale securities,” that can be used only to settle obligations of the same consolidated VIEs.

1.d

Securities purchased under agreements to resell. Report in the appropriate column the
amount of securities purchased under agreements to resell held by consolidated VIEs
included in Schedule HC, item 3.b, “Securities purchased under agreements to resell,” that
can be used only to settle obligations of the same consolidated VIEs.

1.e

Loans and leases held for sale. Report in the appropriate column the amount of loans and
leases held for sale by consolidated VIEs included in Schedule HC, item 4.a, “Loans and
leases held for sale,” that can be used only to settle obligations of the same consolidated
VIEs.

1.f.

Loans and leases, net of unearned income. Report in the appropriate column the amount
of loans and leases held for investment by consolidated VIEs included in Schedule HC, item
4.b, “Loans and leases, net of unearned income,” that can be used only to settle obligations
of the same consolidated VIEs.

1.g

Less: Allowance for loan and lease losses. Report in the appropriate column the amount
of the allowance for loan and lease losses held by consolidated VIEs included in
Schedule HC, item 4.c, “LESS: Allowance for loan and lease losses,” that is allocated to
these consolidated VIEs’ loans and leases held for investment that can be used only to settle
obligations of the same consolidated VIEs and are reported in Schedule HC-V, item 1.f,
above.

1.h

Trading assets (other than derivatives). Report in the appropriate column the amount of
trading assets (other than derivatives) held by consolidated VIEs included in Schedule HC,
item 5, “Trading assets,” that can be used only to settle obligations of the same consolidated
VIEs.

1.i

Derivative trading assets. Report in the appropriate column the amount of derivative
trading assets held by consolidated VIEs included in Schedule HC, item 5, “Trading assets,”
that can be used only to settle obligations of the same consolidated VIEs.

1.j

Other real estate owned. Report in the appropriate column the amount of other real estate
owned held by consolidated VIEs included in Schedule HC, item 7, “Other real estate
owned,” that can be used only to settle obligations of the same consolidated VIEs.

1.k

Other assets. Report in the appropriate column the amount of all other assets held by
consolidated VIEs included in Schedule HC, item 12, “Total assets,” and not reported in
Schedule HC-V, items 1.a through 1.j, above, that can be used only to settle obligations of
the same consolidated VIEs.

DRAFT
2

Liabilities of consolidated VIEs for which creditors do not have recourse to the general
credit of the reporting bank holding company. Report in the appropriate subitem and
column those liabilities of consolidated VIEs reported in Schedule HC, Balance Sheet, for
which creditors do not have recourse to the general credit of the reporting bank holding
company. Exclude liabilities of consolidated VIEs for which creditors have recourse to the
general credit of the reporting bank holding company (report such liabilities in Schedule HCV, item 4, below).

2.a

Securities sold under agreements to repurchase. Report in the appropriate column the
amount of securities sold under agreements to repurchase by consolidated VIEs reported in
Schedule HC, item 14.b, “Securities sold under agreements to repurchase,” for which the
holders of these repurchase agreements do not have recourse to the general credit of the
reporting bank holding company.

2.b

Derivative trading liabilities. Report in the appropriate column the amount of derivative
trading liabilities of consolidated VIEs reported in Schedule HC, item 15, “Trading liabilities,”
for which the derivative counterparties do not have recourse to the general credit of the
reporting bank holding company.

2.c

Commercial paper. Report in the appropriate column the amount of commercial paper
issued by consolidated VIEs reported in Schedule HC, item 16, “Other borrowed money,” for
which the holders of this commercial paper do not have recourse to the general credit of the
reporting bank holding company.

2.d

Other borrowed money (exclude commercial paper). Report in the appropriate column
the amount of other borrowed money (other than commercial paper) of consolidated VIEs
reported in Schedule HC, item 16, “Other borrowed money,” for which the creditors on these
borrowings do not have recourse to the general credit of the reporting bank holding company.

2.e

Other liabilities. Report in the appropriate column the amount of all other liabilities of
consolidated VIEs included in Schedule HC, item 21, “Total liabilities,” and not reported in
Schedule HC-V, items 2.a through 2.d, above, for which the creditors on these liabilities do
not have recourse to the general credit of the reporting bank holding company.

All other assets of consolidated VIEs. Report in the appropriate column the amount of
assets of consolidated VIEs reported in Schedule HC, items 1 through 11, that have not been
included in Schedule HC-V, items 1.a through 1.k, above. Loans and leases held for
investment that are included in this item should be reported net of any allowance for loan and
lease losses allocated to these loans and leases.

All other liabilities of consolidated VIEs. Report in the appropriate column the amount of
liabilities of consolidated VIEs reported in Schedule HC, items 14 through 20, that have not
been included in Schedule HC-V, items 2.a through 2.e, above.

File Type	application/pdf
File Title	SCHEDULE RC-V – VARIABLE INTEREST ENTITIES
Author	rstorch
File Modified	2011-03-11
File Created	2011-03-11