Consolidated Reports of Condition and Income

Draft Instructions
for the Proposed New and Revised Call Report Items
for June 2013

(FFIEC 031 and FFIEC 041)

As of May 23, 2013
NOTE: These draft instructions, which are subject to change, apply to the Call Report items that will be
added to the report or revised effective June 30, 2013, as described in the banking agencies’ Federal
Register notice published on May 23, 2013 (http://www.gpo.gov/fdsys/pkg/FR-2013-05-23/pdf/201312220.pdf). These Call Report revisions are subject to approval by the U.S. Office of Management and
Budget.
Questions and comments concerning these draft instructions may be submitted to the FFIEC by going to
http://www.ffiec.gov/contact/default.aspx, clicking on “Reporting Forms” under the “Reports” caption on
the Web page, and completing the Feedback Form.

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Draft Instructions
for the Proposed New and Revised Call Report Items
for June 2013
Contents
Schedule RI-A – Changes in Bank Equity Capital
Item 11

2

Schedule RI-E – Explanations
Item 5

3

Schedule RC-C, Part I – Loans and Leases*
Items 1 and 1.a.(1) through 1.e.(2)
Item 12

4
11

Schedule RC-F – Other Assets
Item 6

12

Schedule RC-O – Other Data for Deposit Insurance and FICO Assessments**
General Instructions for Memorandum items 6 through 18
Memorandum items 7, 7.a, and 7.b
Memorandum items 8, 8.a, and 8.b
Memorandum items 9, 9.a, and 9.b
Memorandum items 10, 10.a, and 10.b
Memorandum items 13 and 13.a through 13.h
Memorandum items 18 and 18.a through 18.j

13
14
16
17
19
20
22

Schedule RC-R – Regulatory Capital
Item 19
Item 21

26
26

* The revisions to the instructions for Schedule RC-C, Part I, are applicable to institutions that file the
FFIEC 031 Call Report (i.e., institutions with foreign offices). The instructional revisions to this schedule
do not affect institutions that file the FFIEC 041 Call Report (i.e., institutions with domestic offices only).
** The revisions to the instructions for Schedule RC-O are applicable to institutions that are large
institutions or highly complex institutions as defined for assessment purposes in the FDIC’s regulations
(generally, institutions with $10 billion or more in total assets). The instructional revisions to this schedule
do not affect other institutions.

1

Draft Instructions
for the Proposed New and Revised Call Report Items
for June 2013

Schedule RI-A – Changes in Bank Equity Capital
Item No.
11

Caption and Instructions
Other transactions with stockholders (including a parent holding company). Report the
net aggregate amount of transactions with the institution's stockholders, including its parent
holding company, if any, that affect equity capital directly (other than those transactions
reported in Schedule RI-A, items 5, 6, 8, and 9, above), such as:
(1) Capital contributions other than those for which stock has been issued to stockholders
(report issuances of perpetual preferred and common stock and sales of treasury stock in
Schedule RI-A, items 5 and 6, respectively; issuances of limited-life preferred stock are
not reported in Schedule RI-A).
(2) Dividends distributed to stockholders in the form of property rather than cash (report cash
dividends in Schedule RI-A, items 8 or 9, as appropriate). Record such property
dividends at the fair value of the transferred asset. Include any gain or loss recognized
on the disposition of the asset in the determination of net income for the calendar
year-to-date in Schedule RI, Income Statement. Refer to the Glossary entry for
"dividends" for additional information on property dividends.
(3) Return-of-capital transactions in which contributed capital (i.e., surplus) is reduced
without retiring stock and cash is distributed to the institution’s stockholders.
State the dollar amount of and describe each transaction included in this item in
Schedule RI-E, item 5.

2

Schedule RI-E – Explanations
Item No.
5

Caption and Instructions
Other transactions with stockholders (including a parent holding company). List and
briefly describe in items 5.a and 5.b the dollar amount of each type of other transaction with
the reporting institution's stockholders, including its parent holding company, if any, that is
included in Schedule RI-A, item 11. If Schedule RI-A, item 11, includes more than two types
of other transactions, report the additional types of other transactions in Schedule RI-E,
item 7, below.
If the effect of a type of other transaction with the reporting institution’s stockholders,
including a parent holding company, if any, is to reduce the institution’s equity capital, report
the dollar amount with a minus (-) sign.

3

Schedule RC-C, Part I – Loans and Leases
Item Instructions for Part I
Item No.
1

Caption and Instructions
Loans secured by real estate. Report all loans that meet the definition of a “loan secured
by real estate.” See the Glossary entry for "loan secured by real estate" for the definition of
this term. On the FFIEC 041, all institutions should report in items 1.a.(1) through 1.e.(2) of
column B a nine-category breakdown of loans secured by real estate. On the FFIEC 031, all
large institutions and highly complex institutions – as defined for deposit insurance
assessment purposes in the General Instructions for Schedule RC-O, Memorandum items 6
through 18 – with foreign offices should report a nine-category breakdown of loans secured
by real estate for the consolidated bank in items 1.a.(1) through 1.e.(2) of column A and for
domestic offices in items 1.a.(1) through 1.e.(2) of column B; all other institutions with foreign
offices should report only the total amount of loans secured by real estate for the
consolidated bank in item 1 of column A, but with a nine-category breakdown of these loans
for domestic offices in items 1.a.(1) through 1.e.(2) of column B.
Include all loans (other than those to states and political subdivisions in the U.S.), regardless
of purpose and regardless of whether originated by the bank or purchased from others, that
are secured by real estate at origination 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.
Include as loans secured by real estate:
(1) Loans secured by residential properties that are guaranteed by the Farmers Home
Administration (FmHA) and extended, collected, and serviced by a party other than the
FmHA.
(2) Loans secured by properties and guaranteed by governmental entities in foreign
countries.
(3) Participations in pools of Federal Housing Administration (FHA) Title I home improvement
loans that are secured by liens (generally, junior liens) on residential properties.
Exclude from loans secured by real estate:
(1) Obligations (other than securities and leases) of states and political subdivisions in the
U.S. that are secured by real estate (report in Schedule RC-C, part I, item 8).
(2) All loans and sales contracts indirectly representing other real estate (report in
Schedule RC, item 7, "Other real estate owned").

4

Schedule RC-C, part I – Loans and Leases (cont.)
Item No.

Caption and Instruction

1
(cont.)

(3) Loans to real estate companies, real estate investment trusts, mortgage lenders, and
foreign non-governmental entities that specialize in mortgage loan originations and that
service mortgages for other lending institutions when the real estate mortgages or similar
liens on real estate are not sold to the bank but are merely pledged as collateral (report in
Schedule RC-C, part I, item 2, "Loans to depository institutions and acceptances of other
banks," or item 9.a, “Loans to nondepository financial institutions,” as appropriate).
(4) Bonds issued by the Federal National Mortgage Association or by the Federal Home
Loan Mortgage Corporation that are collateralized by residential mortgages (report in
Schedule RC-B, item 2.b, Securities "Issued by U.S. Government-sponsored agencies").
(5) Pooled residential mortgages for which participation certificates have been issued or
guaranteed by the Government National Mortgage Association, the Federal National
Mortgage Association, or the Federal Home Loan Mortgage Corporation (report in
Schedule RC-B, item 4.a). However, if the reporting bank is the seller-servicer of the
residential mortgages backing such securities and, as a result of a change in
circumstances, it must rebook any of these mortgages because one or more of the
conditions for sale accounting in ASC Topic 860, Transfers and Servicing (formerly
FASB Statement No. 140, “Accounting for Transfers and Servicing of Financial Assets
and Extinguishments of Liabilities,” as amended by FASB Statement No. 166,
“Accounting for Transfers of Financial Assets”), are no longer met, the rebooked
mortgages should be included in Schedule RC-C, part I, as loans secured by real estate.

1.a

Construction, land development, and other land loans. Report in the appropriate subitem
(on the FFIEC 041, in column B; on the FFIEC 031, in columns A and B for large institutions
and highly complex institutions – as defined for assessment purposes – with foreign offices,
and in column B for all other institutions with foreign offices) 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 RC-C, part I, 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 RC-C, part I, item 1, appropriate to the
real estate collateral. For purposes of these reports, a combination construction-permanent

5

Schedule RC-C, part I – Loans and Leases (cont.)
Item No.

Caption and Instruction

1.a
(cont.)

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 or is otherwise repaid, (2) the bank 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 originates:
•
•

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).
1.a.(1)

1-4 family residential construction loans. Report (on the FFIEC 041, in column B; on the
FFIEC 031, in columns A and B for large institutions and highly complex institutions – as
defined for assessment purposes – with foreign offices, and in column B for all other
institutions with foreign offices) the amount outstanding of 1-4 family residential construction
loans, i.e., loans for the purpose of constructing 1-4 family residential properties, which will
secure the loan. The term “1-4 family residential properties” is defined in Schedule RC-C,
part I, item 1.c, below. “1-4 family residential construction loans” include:
•
•

Construction loans to developers secured by tracts of land on which 1-4 family residential
properties, including townhouses, are being constructed.
Construction loans secured by individual parcels of land on which single 1-4 family
residential properties are being constructed.
6

Schedule RC-C, part I – Loans and Leases (cont.)
Item No.

Caption and Instruction

1.a.(1)
(cont.)

•
•
•
•
•

•

1.a.(2)

1.b

Construction loans secured by single-family dwelling units in detached or semidetached
structures, including manufactured housing.
Construction loans secured by duplex units and townhouses, excluding garden apartment
projects where the total number of units that will secure the permanent mortgage is
greater than four.
Combination land and construction loans on 1-4 family residential properties, regardless
of the current stage of construction or development.
Combination construction-permanent loans on 1-4 family residential properties until
construction is completed or principal amortization payments begin, whichever comes
first.
Loans secured by apartment buildings undergoing conversion to condominiums,
regardless of the extent of planned construction or renovation, where repayment will
come from sales of individual condominium dwelling units, which are 1-4 family
residential properties.
Bridge loans to developers on 1-4 family residential properties where the buyer will not
assume the same loan, even if construction is completed or principal amortization
payments have begun.

Other construction loans and all land development and other land loans. Report (on the
FFIEC 041, in column B; on the FFIEC 031, in columns A and B for large institutions and
highly complex institutions – as defined for assessment purposes – with foreign offices, and
in column B for all other institutions with foreign offices) the amount outstanding of all
construction loans for purposes other than constructing 1-4 family residential properties, all
land development loans, and all other land loans. Include loans for the development of
building lots and loans secured by vacant land, unless the same loan finances the
construction of 1-4 family residential properties on the property.
Secured by farmland. Report (on the FFIEC 041, in column B; on the FFIEC 031, in
columns A and B for large institutions and highly complex institutions – as defined for
assessment purposes – with foreign offices, and in column B for all other institutions with
foreign offices) loans secured by farmland and improvements thereon, as evidenced by
mortgages or other liens. Farmland includes all land known to be used or usable for
agricultural purposes, such as crop and livestock production. Farmland includes grazing or
pasture land, whether tillable or not and whether wooded or not.
Include loans secured by farmland that are guaranteed by the Farmers Home Administration
(FmHA) or by the Small Business Administration (SBA) and that are extended, serviced, and
collected by any party other than FmHA or SBA.
Exclude loans for farm property construction and land development purposes (report in
Schedule RC-C, part I, item 1.a).

1.c

Secured by 1-4 family residential properties. Report in the appropriate subitem (on the
FFIEC 041, in column B; on the FFIEC 031, in columns A and B for large institutions and
highly complex institutions – as defined for assessment purposes – with foreign offices, and
in column B for all other institutions with foreign offices) open-end and closed-end loans
secured by real estate as evidenced by mortgages (FHA, FmHA, VA, or conventional) or
other liens on:

7

Schedule RC-C, part I – Loans and Leases (cont.)
Item No.

Caption and Instruction

1.c
(cont.)

(1) Nonfarm property containing 1-to-4 dwelling units (including vacation homes) or more
than four dwelling units if each is separated from other units by dividing walls that extend
from ground to roof (e.g., row houses, townhouses, or the like).
(2) Mobile homes where (a) state laws define the purchase or holding of a mobile home as
the purchase or holding of real property and where (b) the loan to purchase the mobile
home is secured by that mobile home as evidenced by a mortgage or other instrument on
real property.
(3) Individual condominium dwelling units and loans secured by an interest in individual
cooperative housing units, even if in a building with five or more dwelling units.
(4) Housekeeping dwellings with commercial units combined where use is primarily
residential and where only 1-to-4 family dwelling units are involved.
Reverse 1-4 family residential mortgages should be reported in the appropriate subitem
based on whether they are closed-end or open-end mortgages. A reverse mortgage is an
arrangement in which a homeowner borrows against the equity in his/her home and receives
cash either in a lump sum or through periodic payments. However, unlike a traditional
mortgage loan, no payment is required until the borrower no longer uses the home as his or
her principal residence. Cash payments to the borrower after closing, if any, and accrued
interest are added to the principal balance. These loans may have caps on their maximum
principal balance or they may have clauses that permit the cap on the maximum principal
balance to be increased under certain circumstances. Homeowners generally have one of
the following options for receiving tax free loan proceeds from a reverse mortgage: (1) one
lump sum payment; (2) a line of credit; (3) fixed monthly payments to homeowner either for a
specified term or for as long as the homeowner lives in the home; or (4) a combination of the
above.
Reverse mortgages that provide for a lump sum payment to the borrower at closing, with no
ability for the borrower to receive additional funds under the mortgage at a later date, should
be reported as closed-end loans in Schedule RC-C, part I, item 1.c.(2). Normally, closed-end
reverse mortgages are first liens and would be reported in Schedule RC-C, part I,
item 1.c.(2)(a). Reverse mortgages that are structured like home equity lines of credit in
that they provide the borrower with additional funds after closing (either as fixed monthly
payments, under a line of credit, or both) should be reported as open-end loans in
Schedule RC-C, part I, item 1.c.(1). Open-end reverse mortgages also are normally first
liens. Where there is a combination of both a lump sum payment to the borrower at closing
and payments after the closing of the loan, the reverse mortgage should be reported as an
open-end loan in Schedule RC-C, part I, item 1.c.(1).
Exclude loans for 1-to-4 family residential property construction and land development
purposes (report in Schedule RC-C, part I, item 1.a). Also exclude loans secured by vacant
lots in established single-family residential sections or in areas set aside primarily for 1-to-4
family homes (report in Schedule RC-C, part I, item 1.a).

8

Schedule RC-C, part I – Loans and Leases (cont.)
Item No.

Caption and Instruction

1.c.(1)

Revolving, open-end loans secured by 1-4 family residential properties and extended
under lines of credit. Report (on the FFIEC 041, in column B; on the FFIEC 031, in
columns A and B for large institutions and highly complex institutions – as defined for
assessment purposes – with foreign offices, and in column B for all other institutions with
foreign offices) the amount outstanding under revolving, open-end lines of credit secured by
1-to-4 family residential properties. These lines of credit, commonly known as home equity
lines, are typically secured by a junior lien and are usually accessible by check or credit card.

1.c.(2)

Closed-end loans secured by 1-4 family residential properties. Report in the appropriate
subitem (on the FFIEC 041, in column B; on the FFIEC 031, in columns A and B for large
institutions and highly complex institutions – as defined for assessment purposes – with
foreign offices, and in column B for all other institutions with foreign offices) the amount of all
closed-end loans secured by 1-to-4 family residential properties (i.e., closed-end first
mortgages and junior liens).

1.c.(2)(a)

Secured by first liens. Report (on the FFIEC 041, in column B; on the FFIEC 031, in
columns A and B for large institutions and highly complex institutions – as defined for
assessment purposes – with foreign offices, and in column B for all other institutions with
foreign offices) the amount of all closed-end loans secured by first liens on 1-to-4 family
residential properties.

1.c.(2)(b)

Secured by junior liens. Report (on the FFIEC 041, in column B; on the FFIEC 031, in
columns A and B for large institutions and highly complex institutions – as defined for
assessment purposes – with foreign offices, and in column B for all other institutions with
foreign offices) the amount of all closed-end loans secured by junior (i.e., other than first)
liens on 1-to-4 family residential properties. Include loans secured by junior liens in this item
even if the bank also holds a loan secured by a first lien on the same 1-to-4 family residential
property and there are no intervening junior liens.

1.d

Secured by multifamily (5 or more) residential properties. Report (on the FFIEC 041, in
column B; on the FFIEC 031, in columns A and B for large institutions and highly complex
institutions – as defined for assessment purposes – with foreign offices, and in column B for
all other institutions with foreign offices) all other nonfarm residential loans secured by real
estate as evidenced by mortgages (FHA and conventional) or other liens that are not
reportable in Schedule RC-C, part I, item 1.c. Specifically, include loans on:
(1) Nonfarm properties with 5 or more dwelling units in structures (including apartment
buildings and apartment hotels) used primarily to accommodate households on a more or
less permanent basis.
(2) 5 or more unit housekeeping dwellings with commercial units combined where use is
primarily residential.
(3) Cooperative-type apartment buildings containing 5 or more dwelling units.
Exclude loans for multifamily residential property construction and land development
purposes (report in Schedule RC-C, part I, item 1.a). Also exclude loans secured by nonfarm
nonresidential properties (report in Schedule RC-C, part I, item 1.e).

9

Schedule RC-C, part I – Loans and Leases (cont.)
Item No.
1.e

Caption and Instruction
Secured by nonfarm nonresidential properties. Report in the appropriate subitem (on the
FFIEC 041, in column B; on the FFIEC 031, in columns A and B for large institutions and
highly complex institutions – as defined for assessment purposes – with foreign offices, and
in column B for all other institutions with foreign offices) loans secured by real estate as
evidenced by mortgages or other liens on nonfarm nonresidential properties, including
business and industrial properties, hotels, motels, churches, hospitals, educational and
charitable institutions, dormitories, clubs, lodges, association buildings, "homes" for aged
persons and orphans, golf courses, recreational facilities, and similar properties.
Exclude loans for nonfarm nonresidential property construction and land development
purposes (report in Schedule RC-C, part I, item 1.a).
For purposes of reporting loans in Schedule RC-C, part I, items 1.e.(1) and 1.e.(2), below,
the determination as to whether a nonfarm nonresidential property is considered “owneroccupied” should be made upon acquisition (origination or purchase) of the loan. However,
for purposes of determining whether existing nonfarm nonresidential real estate loans should
be reported as “owner-occupied” when a bank must first begin reporting such loans as of
1
March 31, 2007 (or March 31, 2008), the bank may consider the source of repayment either
when the loan was acquired or based on the most recent available information. Once a bank
determines whether a loan should be reported as “owner-occupied” or not, this determination
need not be reviewed thereafter.

1.e.(1)

Loans secured by owner-occupied nonfarm nonresidential properties. Report (on the
FFIEC 041, in column B; on the FFIEC 031, in columns A and B for large institutions and
highly complex institutions – as defined for assessment purposes – with foreign offices, and
in column B for all other institutions with foreign offices) the amount of loans secured by
owner-occupied nonfarm nonresidential properties.
“Loans secured by owner-occupied nonfarm nonresidential properties” are those nonfarm
nonresidential property loans for which the primary source of repayment is the cash flow from
the ongoing operations and activities conducted by the party, or an affiliate of the party, who
owns the property. Thus, for loans secured by owner-occupied nonfarm nonresidential
properties, the primary source of repayment is not derived from third party, nonaffiliated,
rental income associated with the property (i.e., any such rental income is less than
50 percent of the source of repayment) or the proceeds of the sale, refinancing, or permanent
financing of the property. Include loans secured by hospitals, golf courses, recreational
facilities, and car washes unless the property is owned by an investor who leases the
property to the operator who, in turn, is not related to or affiliated with the investor (in which
case, the loan should be reported in Schedule RC-C, part I, item 1.e.(2), below). Also include
loans secured by churches unless the property is owned by an investor who leases the
property to the congregation (in which case, the loan should be reported in Schedule RC-C,
part I, item 1.e.(2), below).

1

Reporting nonfarm nonresidential real estate loans as loans secured by “owner-occupied” properties or by other
properties, as appropriate, takes effect:
• March 31, 2007, for (1) all banks with $300 million or more in total assets as of December 31, 2005, or with
foreign offices, and (2) banks with less than $300 million in total assets as of December 31, 2005, and domestic
offices only whose total construction, multifamily, and nonfarm nonresidential real estate loans (Schedule RC-C,
part I, sum of items 1.a, 1.d, and 1.e) as of December 31, 2005, was greater than 150 percent of total equity
capital (Schedule RC, item 28) as of December 31, 2005; and
• March 31, 2008, for banks with less than $300 million in total assets as of December 31, 2005, and domestic
offices only that do not meet this percentage test.

10

Schedule RC-C, part I – Loans and Leases (cont.)
Item No.

Caption and Instruction

1.e.(2)

Loans secured by other nonfarm nonresidential properties. Report (on the FFIEC 041,
in column B; on the FFIEC 031, in columns A and B for large institutions and highly complex
institutions – as defined for assessment purposes – with foreign offices, and in column B for
all other institutions with foreign offices) the amount of nonfarm nonresidential real estate
loans that are not secured by owner-occupied nonfarm nonresidential properties.
“Loans secured by other nonfarm nonresidential properties” are those nonfarm nonresidential
property loans where the primary source of repayment is derived from rental income
associated with the property (i.e., loans for which 50 percent or more of the source of
repayment comes from third party, nonaffiliated, rental income) or the proceeds of the sale,
refinancing, or permanent financing of the property. Include loans secured by hotels, motels,
dormitories, nursing homes, assisted-living facilities, mini-storage warehouse facilities, and
similar properties in this item as loans secured by other nonfarm nonresidential properties.

* * * * * * * * * *

12

Total loans and leases, net of unearned income. On the FFIEC 041, report in column B
the sum of items 1.a.(1) through 10, column B, less the item 11, column B. On the
FFIEC 031, for large institutions and highly complex institutions – as defined for assessment
purposes – with foreign offices, report in column A the sum of items 1.a.(1) through 10.b,
column A, less item 11, column A; report in column B the sum of items 1.a.(1) through 10,
column B, less item 11, column B. On the FFIEC 031, for all other institutions with foreign
offices, report in column A the sum of item 1 and items 2.a.(1) through 10.b, column A, less
item 11, column A; report in column B the sum of items 1.a.(1) through 10, column B, less
item 11, column B.
The amount reported for this item (on the FFIEC 041, in column B; on the FFIEC 031, in
column A) must equal Schedule RC, item 4.a plus item 4.b.

11

Schedule RC-F – Other Assets
Item No.
6

Caption and Instructions
All other assets. Report the amount of all other assets (other than those reported in
Schedule RC-F, items 1, 2, 3, 4, and 5, above) that cannot properly be reported in
Schedule RC, items 1 through 10.
Report in Schedule RC-F, items 6.a through 6.i, each component of all other assets, and the
dollar amount of such component, that is greater than $25,000 and exceeds 25 percent of the
amount of all other assets reported in this item. Preprinted captions have been provided in
Schedule RC-F, items 6.a through 6.e, for reporting the following components of all other
assets if the component exceeds this reporting threshold: prepaid expenses, repossessed
personal property (including vehicles), derivatives with a positive fair value held for purposes
other than trading, retained interests in accrued interest receivable related to securitized
credit cards, and FDIC loss-sharing indemnification assets. For each component of all other
assets that exceeds the reporting threshold for which a preprinted caption has not been
provided, describe the component with a clear but concise caption in Schedule RC-F, items
6.g through 6.i. These descriptions should not exceed 50 characters in length (including
spacing between words). Any amounts reported in Schedule RC-F, item 6.f, “Prepaid deposit
insurance assessments,” for report dates from December 31, 2009, through March 31, 2013,
will not be made available to the public on an individual institution basis.
Include as all other assets:
(1)

Prepaid expenses, i.e., those applicable as a charge against earnings in future
1
periods.

[NOTE: The remaining instructions for Schedule RC-F, item 6, are unchanged.]

1

.

For banks involved in insurance activities, examples of prepaid expenses include ceding fees and acquisition fees
paid to insurance carriers external to the consolidated bank.

12

Schedule RC-O – Other Data for Deposit Insurance and FICO Assessments
General Instructions for Schedule RC-O, Memorandum items 6 through 18
Memorandum items 6 through 18 are applicable only to large institutions and/or highly complex
institutions as defined below. Amounts reported in Memorandum items 6 through 9, 14, 15, and 18 will
not be made available to the public on an individual institution basis. Large institutions and highly
complex institutions should complete Memorandum items 6 through 18, as appropriate, on a fully
consolidated basis. Thus, when a large institution or highly complex institution owns another FDICinsured institution as a subsidiary, it should complete Memorandum items 6 through 18, as appropriate,
on a fully consolidated basis.
According to Section 327.8(f) of the FDIC’s regulations, a large institution is an FDIC-insured bank or
savings association that reported total assets of $10 billion or more as of December 31, 2006, that does
not meet the definition of a highly complex institution. After December 31, 2006, if a bank or savings
association not previously classified as a large institution reports total assets of $10 billion or more for
four consecutive quarters, the bank or savings association will be classified as a large institution
beginning the following quarter. In the Consolidated Reports of Condition and Income, an FDIC-insured
depository institution’s total assets are reported in Schedule RC, item 12.
According to Section 327.8(g) of the FDIC’s regulations, a highly complex institution is an FDIC-insured
1
bank or savings association (excluding a credit card bank ) that:
(1) Has had $50 billion or more in total assets for at least four consecutive quarters that either is
controlled by a U.S. parent holding company that has had $500 billion or more in total assets for four
consecutive quarters, or is controlled by one or more intermediate U.S. parent holding companies that
are controlled by a U.S. holding company that has had $500 billion or more in total assets for four
consecutive quarters; or
(2) Is a processing bank or trust company that has had $10 billion or more in total assets for at least four
consecutive quarters. According to Section 327.8(s) of the FDIC’s regulations, a processing bank or
trust company is “an institution whose last three years’ non-lending interest income, fiduciary
revenues, and investment banking fees, combined, exceed 50 percent of total revenues (and its last
three years fiduciary revenues are non-zero), and whose total fiduciary assets total $500 billion or
more.”
If, after December 31, 2010, a bank or savings association classified as a highly complex institution falls
below $50 billion in total assets for four consecutive quarters, or its parent company or companies fall
below $500 billion in total assets for four consecutive quarters, or a processing bank or trust company
falls below $10 billion in total assets for four consecutive quarters, the FDIC will reclassify the bank or
savings association as a large institution or a small institution, as appropriate, beginning the quarter after
the fourth consecutive quarter.

1

As defined in Section 327.8(t) of the FDIC’s regulations, a credit card bank is “a bank for which credit card
receivables plus securitized receivables exceed 50 percent of assets plus securitized receivables.”

13

Schedule RC-O – Other Data for Deposit Insurance and FICO Assessments (cont.)
General Instructions for Schedule RC-O, Memorandum items 6 through 18 (cont.)
Amounts Guaranteed or Insured by the U.S. Government, its Agencies, or its Government-Sponsored
Agencies – The instructions for Schedule RC-O, Memorandum items 6, 11, and 16 refer to amounts
recoverable from, or guaranteed or insured by, the U.S. government, its agencies, or its governmentsponsored agencies under guarantee or insurance provisions. Examples include guarantees or
insurance (or reinsurance) provided by the Department of Veterans Affairs, the Federal Housing
Administration, the Small Business Administration (SBA), the Department of Agriculture Rural
Development Loan Program, and the Department of Education for individual loans as well as coverage
provided by the FDIC under loss-sharing agreements. For loan securitizations and securities, examples
include those guaranteed by the Government National Mortgage Association, the Federal National
Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac) as
well as SBA Guaranteed Loan Pool Certificates and securities covered by FDIC loss-sharing agreements.
However, if an institution holds securities backed by mortgages it has transferred to Fannie Mae or
Freddie Mac with recourse or other transferor-provided credit enhancements, these securities should not
be considered guaranteed to the extent of the institution’s maximum contractual credit exposure arising
from the credit enhancements.
Amounts Guaranteed or Insured by the U.S. Government – The instructions for Schedule RC-O,
Memorandum items 7 through 10, 13, and 18 refer to the maximum amounts recoverable from the U.S.
Government. Amounts recoverable from the U.S. government do not include amounts recoverable from
government-sponsored agencies (also known as government-sponsored enterprises) including the
Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation
(Freddie Mac), the Federal Home Loan Banks, and the Farm Credit System.
NOTE: Because certain information on coverage under FDIC loss-sharing agreements is reported
elsewhere in the Consolidated Reports of Condition and Income, the treatment of FDIC loss-sharing
agreements varies in Schedule RC-O, Memorandum items 6 through 9, 10.b, 11, 13, 16, and 18.
Higher-risk Securitizations – For purposes of Schedule RC-O, Memorandum items 7.b, 8.b, and 9.b,
higher-risk securitizations are securitizations where more than 50 percent of the assets backing the
securitization meet the criteria for “nontraditional 1-4 family residential mortgage loans,” “higher-risk
consumer loans,” or “higher-risk commercial and industrial loans and securities” as those terms are
defined in the instructions for Schedule RC-O, Memorandum items 7.a, 8.a, and 9.a, and in Appendix C
to Subpart A to Part 327 of the FDIC’s regulations.

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

Caption and Instruction

7

“Nontraditional 1-4 family residential mortgage loans” as defined for assessment
purposes only in FDIC regulations. Report in the appropriate subitem on a fully
consolidated basis the balance sheet amount of nontraditional 1-4 family residential mortgage
loans and securitizations of such mortgage loans.

7.a

Nontraditional 1-4 family residential mortgage loans. Report on a fully consolidated basis
the balance sheet amount of nontraditional 1-4 family residential mortgage loans, as defined
for assessment purposes only in Appendix C to Subpart A to Part 327 of the FDIC’s
regulations. Nontraditional 1-4 family residential mortgage loans include all 1-4 family
residential loan products (as defined for Schedule RC-C, part I, item 1.c) that allow the
borrower to defer repayment of principal or interest and includes all interest-only products,
14

Schedule RC-O – Other Data for Deposit Insurance and FICO Assessments (cont.)
Memoranda
Item No.

Caption and Instruction

7.a
(cont.)

teaser rate mortgages, and negative amortizing mortgages, with the exception of home equity
lines of credit and reverse mortgages. Nontraditional 1-4 family residential mortgage loans
do not include loans reported as trading assets in Schedule RC, item 5; conventional fully
amortizing adjustable rate mortgage loans that do not have a teaser rate; and interest-only
residential construction loans, but include conventional fully amortizing adjustable rate
mortgage loans that have a teaser rate.
A teaser-rate mortgage loan is defined for assessment purposes as a mortgage with a
discounted initial rate. A discounted initial rate is an effective interest rate at the time of
origination or refinancing that is less than the rate the bank is willing to accept for an
otherwise similar extension of credit with comparable risk. A mortgage loan is no longer
considered a nontraditional 1-4 family residential mortgage loan once the teaser rate has
expired, or in the case of an escalating interest rate, once the rate is no longer discounted
and the borrower is making full principal and interest payments (has not been granted any
principal and interest concessions). Nontraditional 1-4 family residential mortgage loans can
be reclassified as traditional loans once they become fully amortizing loans, provided they no
longer have a teaser rate.
The amount to be reported in this item for nontraditional 1-4 family residential mortgage loans
should include purchased credit-impaired loans as defined in ASC Subtopic 310-30,
Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality (formerly
AICPA Statement of Position 03-3, “Accounting for Certain Loans or Debt Securities Acquired
in a Transfer”), provided they meet the characteristics of nontraditional 1-4 family residential
mortgage loans as described above.
The amount to be reported in this item should exclude the maximum amount recoverable on
nontraditional 1-4 family residential mortgage loans under guarantee or insurance provisions
from the U.S. government, including the maximum amount recoverable under FDIC losssharing agreements.

7.b

Securitizations of nontraditional 1-4 family residential mortgage loans. Report on a fully
consolidated basis the balance sheet amount of higher-risk securitizations where more than
50 percent of the assets backing the securitization meet the criteria for nontraditional
1-4 family residential mortgage loans (as defined for Schedule RC-O, Memorandum item 7.a,
above), with the exception of those securities reported as trading assets in Schedule RC,
item 5.
For securitizations issued before April 1, 2013, the amount to be reported in this item should
include those securitizations where more than 50 percent of the assets backing the
securitization meet one or more of the criteria for nontraditional 1-4 family residential
mortgage loans, with the exception of those securities reported as trading assets in
Schedule RC, item 5. Alternatively, an institution may apply the definitions in Appendix C to
Subpart A to Part 327 of the FDIC’s regulations to all of its securitizations. For securitizations
issued on or after April 1, 2013, the amount to be reported in this item should include those
securitizations (with the exception of those securities reported as trading assets in
Schedule RC, item 5) where more than 50 percent of the assets backing the securitization
meet either the criteria for nontraditional 1-4 family residential mortgage loans or the criteria
for higher-risk consumer loans (as defined for Schedule RC-O, Memorandum item 8.a,
below), and the amount of nontraditional 1-4 family residential mortgage loans exceeds the
amount of higher-risk consumer loans.
15

Schedule RC-O – Other Data for Deposit Insurance and FICO Assessments (cont.)
Memoranda
Item No.

Caption and Instruction

8

“Higher-risk consumer loans” as defined for assessment purposes only in FDIC
regulations. Report in the appropriate subitem on a fully consolidated basis the balance
sheet amount of higher-risk consumer loans and securitizations of such higher-risk consumer
loans.

8.a

Higher-risk consumer loans. Report on a fully consolidated basis the balance sheet
amount of higher-risk consumer loans, as defined for assessment purposes only in
Appendix C to Subpart A to Part 327 of the FDIC’s regulations, but excluding higher-risk
consumer loans that have been reported as nontraditional 1-4 family residential mortgage
loans in Schedule RC-O, Memorandum item 7.a, above. For assessment purposes, higherrisk consumer loans are loans secured by 1-4 family residential properties (as defined for
Schedule RC-C, part I, item 1.c) and loans and leases to individuals for household, family,
and other personal expenditures (as defined for Schedule RC-C, part I, items 6 and 10.a)
where, as of origination, or, if the loan has been refinanced, as of refinance, the probability of
default (PD) within two years is greater than 20 percent, excluding loans that meet the
definition of a nontraditional 1-4 family residential mortgage loan (as defined for
Schedule RC-O, Memorandum item 7.a, above). The PD must be calculated in accordance
with the requirements of Appendix C to Subpart A to Part 327 of the FDIC’s regulations.
The amount to be reported in this item for higher-risk consumer loans should include
purchased credit-impaired loans as defined in ASC Subtopic 310-30, Receivables – Loans
and Debt Securities Acquired with Deteriorated Credit Quality (formerly AICPA Statement of
Position 03-3, “Accounting for Certain Loans or Debt Securities Acquired in a Transfer”),
provided they meet the characteristics of higher-risk consumer loans described above.
The amount to be reported in this item should exclude:
(1) Consumer loans reported as trading assets in Schedule RC, item 5.
(2) The maximum amounts recoverable on higher-risk consumer loans under guarantee or
insurance provisions from the U.S. government, including the maximum amount
recoverable under FDIC loss-sharing agreements.
(3) Loans fully secured by cash collateral (provided the requirements regarding loans fully
secured by cash collateral that are detailed in Appendix C to Subpart A to Part 327 are
met).

8.b

Securitizations of higher-risk consumer loans. Report on a fully consolidated basis the
balance sheet amount of higher-risk securitizations issued on or after April 1, 2013, where
more than 50 percent of the assets backing the securitization meet the criteria for higher-risk
consumer loans (as defined for Schedule RC-O, Memorandum item 8.a, above), with the
exception of those securities reported as trading assets in Schedule RC, item 5.
Securitizations of higher-risk consumer loans also include securitizations (other than those
securities reported as trading assets in Schedule RC, item 5) issued on or after April 1, 2013,
where more than 50 percent of the assets backing the securitization meet either the criteria
for higher-risk consumer loans or the criteria for nontraditional 1-4 family residential mortgage
loans (as defined for Schedule RC-O, Memorandum item 7.a, above) and the amount of
higher-risk consumer loans exceeds the amount of nontraditional 1-4 family residential
mortgage loans.

16

Schedule RC-O – Other Data for Deposit Insurance and FICO Assessments (cont.)
Memoranda
Item No.

Caption and Instruction

8.b
(cont.)

For securitizations issued before April 1, 2013, that contain consumer loans, the reporting
institution must either:
(1) Report the securitizations using the definition of subprime loans contained in the FDIC’s
final rule on assessments and large bank pricing, 76 Fed. Reg. 10672 (February 25,
2011), or
(2) Report the securitizations if more than 50 percent of the assets backing the securitization
were identified as subprime loans by the institution’s then existing internal methodology
1
for identifying loans as subprime loans.
Alternatively, an institution may apply the definitions in Appendix C to Subpart A to Part 327
of the FDIC’s regulations to all of its securitizations.

9

“Higher-risk commercial and industrial loans and securities” as defined for
assessment purposes only in FDIC regulations. Report in the appropriate subitem on a
fully consolidated basis the balance sheet amount of, plus the amount of unfunded
commitments for, higher-risk commercial and industrial (C&I) loans and securities and
securitizations of such higher-risk C&I loans and securities.

9.a

Higher-risk commercial and industrial loans and securities. Report on a fully
consolidated basis the balance sheet amount of higher-risk commercial and industrial (C&I)
loans and securities, as defined for assessment purposes only in Appendix C to Subpart A to
Part 327 of the FDIC’s regulations.
The amount to be reported in this item for higher-risk C&I loans and securities should include
purchased credit-impaired loans and securities as defined in ASC Subtopic 310-30,
Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality (formerly
AICPA Statement of Position 03-3, “Accounting for Certain Loans or Debt Securities Acquired
in a Transfer”), provided the purchased credit-impaired loans and securities meet the
definition of a higher-risk C&I loan or security.
The amount to be reported in this item should exclude:
(1) Loans to individuals for commercial, industrial, and professional purposes.
(2) The maximum amounts recoverable on higher-risk C&I loans and securities under
guarantee or insurance provisions from the U.S. government, including the maximum
amount recoverable under FDIC loss-sharing agreements.

1

Institutions that did not have an existing methodology in place to identify subprime consumer loans and securities
(because they were not required to report on these exposures to their primary federal regulator for examination or
other supervisory purposes or did not measure and monitor loans and securities with these characteristics for internal
risk management purposes) may, as an alternative to applying the definitions in the FDIC’s assessment regulations to
loans backing securitizations issued before April 1, 2013, apply then existing guidance provided by their primary
federal regulator or the agencies’ 2001 Expanded Guidance for Subprime Lending Programs to determine whether
more than 50 percent of the assets backing the securitization are subprime consumer loans, thus requiring that the
securitization be reported as a securitization of higher-risk consumer loans in Schedule RC-O, Memorandum
item 8.b.

17

Schedule RC-O – Other Data for Deposit Insurance and FICO Assessments (cont.)
Memoranda
Item No.

Caption and Instruction

9.a
(cont.)

(3) Loans fully secured by cash collateral (provided the loans meet the requirements
regarding loans fully secured by cash collateral that are detailed in Appendix C to
Subpart A to Part 327 of the FDIC’s regulations).
(4) Loans that are eligible for the asset-based or floor plan lending exclusions detailed in
Appendix C to Subpart A to Part 327 of the FDIC’s regulations, provided the institution’s
primary federal regulator has not cited a criticism (included in the Matters Requiring
Attention) of the institution’s controls or administration of its asset-based or floor plan loan
portfolios.
For C&I loans and securities originated, refinanced, or purchased by the reporting institution
before April 1, 2013, that are owed to the reporting institution by a borrower that does not
meet the definition of a higher-risk C&I borrower as that term is defined in Appendix C to
Subpart A to Part 327 of the FDIC’s regulations, the reporting institution must continue to
report these loans using:
(1) The definition of leveraged loans and securities contained in the FDIC’s final rule on
assessments and large bank pricing, 76 Fed. Reg. 10672 (February 25, 2011), or
1
(2) The institution’s then existing internal methodology for identifying leveraged loans.
Alternatively, a reporting institution may opt to apply the definition of higher-risk C&I loans
and securities in Appendix C to Subpart A to Part 327 of the FDIC’s regulations to all of its
C&I loans and securities without regard to when the loan was originated or refinanced (i.e.,
whether the loan was originated or refinanced before or after April 1, 2013).

9.b

Securitizations of higher-risk commercial and industrial loans and securities. Report
on a fully consolidated basis the balance sheet amount of higher-risk securitizations issued
on or after April 1, 2013, where more than 50 percent of the assets backing the securitization
meet the criteria for higher-risk commercial and industrial (C&I) loans and securities (as
defined for Schedule RC-O, Memorandum item 9.a, above), with the exception of those
securities reported as trading assets in Schedule RC, item 5.
For securitizations issued before April 1, 2013, that contain leveraged loans or securities, the
reporting institution must either:
(1) Report the securitizations using the definition of leveraged loans and securities contained
in the FDIC’s final rule on assessments and large bank pricing, 76 Fed. Reg. 10672
(February 25, 2011), or

1

Institutions that did not have an existing methodology in place to identify leveraged loans and securities (because
they were not required to report on these exposures to their primary federal regulator for examination or other
supervisory purposes or did not measure and monitor loans and securities with these characteristics for internal risk
management purposes) may, as an alternative to applying the definitions in the FDIC’s assessment regulations to
loans and securities originated or refinanced before April 1, 2013, apply then existing guidance provided by their
primary federal regulator or the February 2008 Comptroller’s Handbook on Leveraged Lending to determine whether
the loans or securities are to be reported as higher-risk C&I loans and securities in Schedule RC-O, Memorandum
item 9.a.

18

Schedule RC-O – Other Data for Deposit Insurance and FICO Assessments (cont.)
Memoranda
Item No.

Caption and Instruction

9.b
(cont.)

(2) Report the securitizations if more than 50 percent of the assets backing the securitization
are identified as leveraged loans or securities by the institution’s then existing internal
1
methodology for identifying leveraged loans.
Alternatively, an institution may apply the definitions in Appendix C to Subpart A to Part 327
of the FDIC’s regulations to all of its securitizations regardless of when the securitization was
issued. If a bank applies the Appendix C definition of higher-risk C&I loans and securities to
all of its securitizations, it must assume all loans to the borrower were originally made or
refinanced on or after April 1, 2013.

10

Commitments to fund construction, land development, and other land loans secured
by real estate (for the consolidated bank). For purposes of Memorandum items 10.a
and 10.b, construction, land development, and other land loans are defined in the instructions
for Schedule RC-C, part I, item 1.a, “Construction, land development, and other land loans.”
Commitments are defined in the instructions for Schedule RC-L, item 1, “Unused
commitments.”
On the FFIEC 031 report form, the reporting of foreign office data in Schedule RC-O,
Memorandum items 10.a and 10.b, is optional for June 30, 2013, and required beginning
September 30, 2013; however, domestic office data must be reported in these Memorandum
items when reporting as of June 30, 2013. An institution that opts not to include foreign office
data in Schedule RC-O, Memorandum items 10.a and 10.b, when it initially files its report for
June 30, 2013, is permitted, but not required, to amend the amounts originally reported in
these Memorandum items for June 30, 2013, after it has the systems in place to gather the
necessary foreign office data.

10.a

Total unfunded commitments. Report on a fully consolidated basis the unused portion of
commitments to extend credit to fund construction, land development, and other land loans
(in domestic and foreign offices) that, when funded, would be reportable as loans secured by
real estate in Schedule RC-C, part I, item 1.a. The amount reported in this item should also
have been included in the amounts reported in Schedule RC-L, items 1.c.(1)(a) and (b).

1

Institutions that did not have an existing methodology in place to identify leveraged loans and securities (because
they were not required to report on these exposures to their primary federal regulator for examination or other
supervisory purposes or did not measure and monitor loans and securities with these characteristics for internal risk
management purposes) may, as an alternative to applying the definitions in the FDIC’s assessment regulations to
C&I loans and securities backing securitizations issued before April 1, 2013, apply then existing guidance provided by
their primary federal regulator or the February 2008 Comptroller’s Handbook on Leveraged Lending to determine
whether more than 50 percent of the assets backing a securitization are leveraged loans, thus requiring that the
securitization be reported as a securitization of higher-risk C&I loans and securities in Schedule RC-O, Memorandum
item 9.b.

19

Schedule RC-O – Other Data for Deposit Insurance and FICO Assessments (cont.)
Memoranda
Item No.
10.b

Caption and Instruction
Portion of unfunded commitments guaranteed or insured by the U.S. government.
Report on a fully consolidated basis the maximum amount of the unused portion of the
construction, land development, and other land loan commitments (in domestic and foreign
offices) reported in Schedule RC-O, Memorandum item 10.a, above that is recoverable from
the U.S. government under guarantee or insurance provisions, including the maximum
amount recoverable under FDIC loss-sharing agreements.
Exclude amounts recoverable from state or local governments, state or local government
agencies, foreign (non-U.S.) governments, and private agencies or organizations.

* * * * * * * * * *

NOTE: Memorandum item 13.a is to be completed by “large institutions” and “highly complex
institutions.” Memorandum items 13.b through 13.h are to be completed by “large institutions” only.
13

Portion of funded loans and securities (in domestic and foreign offices) guaranteed or
insured by the U.S. government (including FDIC loss-sharing agreements). Report in
the appropriate subitem on a fully consolidated basis the portion of the balance sheet amount
of funded loans and securities (in domestic and foreign offices) that is guaranteed or insured
by the U.S. government, including the maximum amount recoverable under FDIC losssharing agreements.
Exclude loans guaranteed or insured by state or local governments, state or local
government agencies, foreign (non-U.S.) governments, and private agencies or organizations
as well as loans collateralized by securities issued by the U.S. government.
On the FFIEC 031 report form, the reporting of foreign office data in Schedule RC-O,
Memorandum items 13.a through 13.d, is optional for June 30, 2013, and required beginning
September 30, 2013; however, domestic office data must be reported in these Memorandum
items when reporting as of June 30, 2013. An institution that opts not to include foreign office
data in Schedule RC-O, Memorandum items 13.a through 13.d, when it initially files its report
for June 30, 2013, is permitted, but not required, to amend the amounts originally reported in
these Memorandum items for June 30, 2013, after it has the systems in place to gather the
necessary foreign office data.

13.a

Construction, land development, and other land loans secured by real estate. Report
on a fully consolidated basis the portion of the balance sheet amount of construction, land
development, and other land loans (in domestic and foreign offices) (as defined for
Schedule RC-C, part I, item 1.a) that is guaranteed or insured by the U.S. government,
including the maximum amount recoverable under FDIC loss-sharing agreements.

13.b

Loans secured by multifamily residential and nonfarm nonresidential properties.
Report on a fully consolidated basis the portion of the balance sheet amount of loans secured
by multifamily (5 or more) residential properties and loans secured by nonfarm nonresidential
properties (in domestic and foreign offices) (as defined for Schedule RC-C, part I, items 1.d
and 1.e., respectively) that is guaranteed or insured by the U.S. government, including the
maximum amount recoverable under FDIC loss-sharing agreements.

20

Schedule RC-O – Other Data for Deposit Insurance and FICO Assessments (cont.)
Memoranda
Item No.

Caption and Instruction

13.c

Closed-end loans secured by first liens on 1-4 family residential properties. Report on
a fully consolidated basis the portion of the balance sheet amount of closed-end loans
secured by first liens on 1-4 family residential properties (in domestic and foreign offices)
(as defined for Schedule RC-C, part I, item 1.c.(2)(a)) that is guaranteed or insured by the
U.S. government, including the maximum amount recoverable under FDIC loss-sharing
agreements.

13.d

Closed-end loans secured by junior liens on 1-4 family residential properties and
revolving, open-end loans secured by 1-4 family residential properties and extended
under lines of credit. Report on a fully consolidated basis the portion of the balance sheet
amount of closed-end loans secured by junior liens on 1-4 family residential properties and
revolving, open-end loans secured by 1-4 family residential properties and extended under
lines of credit (in domestic and foreign offices) (as defined for Schedule RC-C, part I,
items 1.c.(2)(b) and 1.c.(1), respectively) that is guaranteed or insured by the U.S.
government, including the maximum amount recoverable under FDIC loss-sharing
agreements.

13.e

Commercial and industrial loans. Report on a fully consolidated basis the portion of the
balance sheet amount of commercial and industrial loans (as defined for Schedule RC-C,
part I, item 4) that is guaranteed or insured by the U.S. government, including the maximum
amount recoverable under FDIC loss-sharing agreements.

13.f

Credit card loans to individuals for household, family, and other personal
expenditures. Report on a fully consolidated basis the portion of the balance sheet amount
of credit card loans to individuals for household, family, and other personal expenditures (as
defined for Schedule RC-C, part I, item 6.a) that is guaranteed or insured by the U.S.
government, including the maximum amount recoverable under FDIC loss-sharing
agreements.

13.g

All other loans to individuals for household, family, and other personal expenditures.
Report on a fully consolidated basis the portion of the balance sheet amount of revolving
credit plans other than credit cards (as defined for Schedule RC-C, part I, item 6.b),
automobile loans (as defined for Schedule RC-C, part I, item 6.c), and other consumer loans
(as defined for Schedule RC-C, part I, item 6.d) that is guaranteed or insured by the U.S.
government, including the maximum amount recoverable under FDIC loss-sharing
agreements.

13.h

Non-agency residential mortgage-backed securities. Report on a fully consolidated basis
the portion of the balance sheet amount of residential mortgage-backed securities (as defined
for Schedule RC-B, items 4.a.(3) and 4.b.(3)) that is guaranteed or insured by the U.S.
government, including the maximum amount recoverable under FDIC loss-sharing
agreements.

* * * * * * * * * *

21

Schedule RC-O – Other Data for Deposit Insurance and FICO Assessments (cont.)
Memoranda
Item No.

Caption and Instruction

NOTE: Memorandum item 18 is to be completed on a fully consolidated basis by “large institutions” and
“highly complex institutions.”
18

Outstanding balance of 1-4 family residential mortgage loans, consumer loans, and
consumer leases by two-year probability of default. Report on a fully consolidated basis
the balance sheet amount of all consumer loans, as defined for assessment purposes below,
segmented by nine product types and 12 two-year probability of default (PD) bands. This
information is intended to supplement the amount of higher-risk consumer loans reported in
Schedule RC-O, Memorandum items 7.a and 8.a, above, and should include all consumer
loans, as defined for assessment purposes, regardless of whether they have a two-year PD
of more than 20 percent. Institutions must calculate the PD for each consumer loan in
accordance with the requirements set forth in Appendix C to Subpart A to Part 327 of the
FDIC’s regulations. When determining the PD band to which a consumer loan should be
assigned, institutions must round the PD of the loan to the nearest hundredth of a percentage
point (e.g., round a PD of 5.6789 percent to 5.68 percent).
Amounts reported in Memorandum item 18 will not be made available to the public on an
individual institution basis.
For assessment purposes, consumer loans are defined as loans secured by 1-4 family
residential properties (as defined for Schedule RC-C, part I, item 1.c) and loans and leases to
individuals for household, family, and other personal expenditures (as defined for
Schedule RC-C, part I, items 6 and 10.a). However, when completing Memorandum item 18,
exclude:
(1) Consumer loans reported as trading assets in Schedule RC, item 5;
(2) The maximum amounts recoverable on consumer loans from the U.S. government under
guarantee or insurance provisions, including the maximum amount recoverable under
FDIC loss-sharing agreements; and
(3) Consumer loans fully secured by cash collateral, provided the requirements regarding
loans fully secured by cash collateral that are detailed in Appendix C to Subpart A to
Part 327 of the FDIC’s regulations are met.
(4) All securitizations.
The amounts to be reported in Memorandum item 18 should include purchased creditimpaired loans as defined in ASC Subtopic 310-30, Receivables – Loans and Debt Securities
Acquired with Deteriorated Credit Quality (formerly AICPA Statement of Position 03-3,
“Accounting for Certain Loans or Debt Securities Acquired in a Transfer”).
The total amount reported in Memorandum item 18.j, column N, may be less than the
balance sheet amount of consumer loans reported in Schedule RC-C, part I, due to the
exclusions noted above as well as the reporting exceptions detailed in Appendix C to
Subpart A to Part 327 of the FDIC’s regulations.

22

Schedule RC-O – Other Data for Deposit Insurance and FICO Assessments (cont.)
Memoranda
Item No.

Caption and Instruction

18
(cont.)

Column Instructions
Columns A through L, Two-Year Probability of Default: Report each consumer loan by
product type in the appropriate two-year PD band column based on the two-year PD
assigned to the loan in accordance with the requirements in Appendix C to Subpart A to
Part 327 of the FDIC’s regulations, unless the loan is unscoreable.
Column M, Unscoreable: Report in column M the total amount of unscoreable loans by
product type. Unscoreable loans are defined for assessment purposes as consumer loans
where the available information about the borrower is insufficient to determine a credit score
and, consequently, the loan cannot be assigned a two-year PD in accordance with the
requirements in Appendix C to Subpart A to Part 327 of the FDIC’s regulations.
Column N, Total: Report in column N the total amount of scoreable and unscoreable
consumer loans by product type, i.e., the sum of columns A through M for each product type.
Column O, PDs Were Derived Using: Report in column O for each product type the method
or methods used to assign PDs to the consumer loans within that product type. For each
product type, enter a 1 in column O if the PDs assigned to the loans were derived using a
credit score-to-default rate mapping provided by a third party vendor; enter a 2 in column O if
the PDs assigned to the loans were derived using an internally developed mapping approach;
and enter a 3 in column O if third party and internal mapping were applied to derive the PDs
for different segments of loans within the product type.

18.a

“Nontraditional 1-4 family residential mortgage loans” as defined for assessment
purposes only in FDIC regulations. For “nontraditional 1-4 family residential mortgage
loans,” as defined for assessment purposes in Schedule RC-O, Memorandum item 7.a,
above, report in the appropriate column the amount of such loans to which a two-year PD has
been assigned, the amount of unscoreable loans within this product type, the total amount of
loans in this product type, and the method(s) used to assign PDs to the loans in this product
type. The amount reported in Memorandum item 18.a, column N, should be less than or
equal to the amount reported in Schedule RC-O, Memorandum item 7.a.

18.b

Closed-end loans secured by first liens on 1-4 family residential properties. For
closed-end loans secured by first liens on 1-4 family residential properties, as defined for
Schedule RC-C, part I, item 1.c.(2)(a) (but excluding first liens reported as “nontraditional
1-4 family residential mortgage loans” in Memorandum item 18.a, above), report in the
appropriate column the amount of such loans to which a two-year PD has been assigned,
the amount of unscoreable loans within this product type, the total amount of loans in this
product type, and the method(s) used to assign PDs to the loans in this product type. The
amount reported in Memorandum item 18.b, column N, should be less than or equal to:
•
•

The amount reported in Schedule RC-C, part I, item 1.c.(2)(a), column A, less the amount
reported in Schedule RC-O, Memorandum item 13.c, on the FFIEC 031;
The amount reported in Schedule RC-C, part I, item 1.c.(2)(a), column B, less the amount
reported in Schedule RC-C, Memorandum item 13.c, on the FFIEC 041.

23

Schedule RC-O – Other Data for Deposit Insurance and FICO Assessments (cont.)
Memoranda
Item No.

Caption and Instruction

18.c

Closed-end loans secured by junior liens on 1-4 family residential properties. For
closed-end loans secured by junior liens on 1-4 family residential properties, as defined for
Schedule RC-C, part I, item 1.c.(2)(b) (but excluding junior liens reported as “nontraditional
1-4 family residential mortgage loans” in Memorandum item 18.a, above), report in the
appropriate column the amount of such loans to which a two-year PD has been assigned, the
amount of unscoreable loans within this product type, the total amount of loans in this product
type, and the method(s) used to assign PDs to the loans in this product type. The amount
reported in Memorandum item 18.c, column N, should be less than or equal to the amount
reported in Schedule RC-C, part I, item 1.c.(2)(b), column A, on the FFIEC 031;
Schedule RC-C, part I, item 1.c.(2)(b), column B, on the FFIEC 041.

18.d

Revolving, open-end loans secured by 1-4 family residential properties and extended
under lines of credit. For revolving, open-end loans secured by 1-4 family residential
properties and extended under lines of credit, as defined for Schedule RC-C, part I, item
1.c.(1), report in the appropriate column the amount of such loans to which a two-year PD
has been assigned, the amount of unscoreable loans within this product type, the total
amount of loans in this product type, and the method(s) used to assign PDs to the loans in
this product type. The amount reported in Memorandum item 18.d, column N, should be less
than or equal to the amount reported in Schedule RC-C, part I, item 1.c.(1), column A, on the
FFIEC 031; Schedule RC-C, part I, item 1.c.(1), column B, on the FFIEC 041.

18.e

Credit cards. For credit cards to individuals for household, family, and other personal
expenditures, as defined for Schedule RC-C, part I, item 6.a, report in the appropriate column
the amount of such loans to which a two-year PD has been assigned, the amount of
unscoreable loans within this product type, the total amount of loans in this product type, and
the method(s) used to assign PDs to the loans in this product type. The amount reported in
Memorandum item 18.e, column N, should be less than or equal to
•
•

The amount reported in Schedule RC-C, part I, item 6.a, column A, less the amount
reported in Schedule RC-O, Memorandum item 13.f, on the FFIEC 031;
The amount reported in Schedule RC-C, part I, item 6.a, column B, less the amount
reported in Schedule RC-O, Memorandum item 13.f, on the FFIEC 041.

18.f

Automobile loans. For automobile loans to individuals for household, family, and other
personal expenditures, as defined for Schedule RC-C, part I, item 6.c, report in the
appropriate column the amount of such loans to which a two-year PD has been assigned, the
amount of unscoreable loans within this product type, the total amount of loans in this product
type, and the method(s) used to assign PDs to the loans in this product type. The amount
reported in Memorandum item 18.f, column N, should be less than or equal to the amount
reported in Schedule RC-C, part I, item 6.c, column A on the FFIEC 031; Schedule RC-C,
part I, item 6.c, column B, on the FFIEC 041.

18.g

Student loans. For student loans included in Schedule RC-C, part I, item 6.d, “Other
consumer loans,” report in the appropriate column the amount of such loans to which a twoyear PD has been assigned, the amount of unscoreable loans within this product type, the
total amount of loans in this product type, and the method(s) used to assign PDs to the loans
in this product type.

24

Schedule RC-O – Other Data for Deposit Insurance and FICO Assessments (cont.)
Memoranda
Item No.

Caption and Instruction

18.h

Other consumer loans and revolving credit plans other than credit cards. For revolving
credit plans other than credit cards to individuals for household, family, and other personal
expenditures and other consumer loans, as defined for Schedule RC-C, part I, items 6.b
and 6.d, respectively (but excluding student loans), report in the appropriate column the
amount of such loans to which a two-year PD has been assigned, the amount of unscoreable
loans within this product type, the total amount of loans in this product type, and the
method(s) used to assign PDs to the loans in this product type. The sum of the amounts
reported in Memorandum items 18.g and 18.h, column N, should be less than or equal to the
sum of the amounts reported in Schedule RC-C, part I, items 6.b and 6.d, column A, on the
FFIEC 031; Schedule RC-C, part I, items 6.b and 6.d, column B, on the FFIEC 041.

18.i

Consumer leases. For leases to individuals for household, family, and other personal
expenditures, as defined for Schedule RC-C, part I, item 10.a, report in the appropriate
column the amount of such leases to which a two-year PD has been assigned, the amount of
unscoreable leases within this product type, the total amount of leases in this product type,
and the method(s) used to assign PDs to the leases in this product type. The amount
reported in Memorandum item 18.i, column N, should be less than or equal to the amount
reported in Schedule RC-C, part I, item 10.a, column A.

18.j

Total. For each of columns A through N, report the sum of Memorandum items 18.a
through 18.i. Memorandum item 18.j, column N, must equal the sum of columns A through M
for Memorandum item 18.j.

25

Schedule RC-R – Regulatory Capital
Item No.
19

Caption and Instructions
Not applicable.

* * * * * * * * * *

Item No.
21

Caption and Instructions
Total risk-based capital. Report the sum of Schedule RC-R, items 11 and 18, less item 20.
The amount reported in this item is the numerator of the bank's total risk-based capital ratio.

26