Consolidated Reports of Condition and Income

FFIEC051_20180103_i_draft

Consolidated Reports of Condition and Income

OMB: 7100-0036

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Draft Revisions to the Call Report Instructions
for Revisions to the FFIEC 051 Call Report

Proposed to Take Effect March 31, 2018,

and June 30, 2018

These draft instructions reflect the proposed revisions to
the FFIEC 051 Call Report
that would take effect March 31, 2018, and June 30, 2018,
as described in the federal banking agencies’
final Paperwork Reduction Act Federal Register notice
for this proposal that will be published in January 2018.

The Federal Register notice and the redlined draft reporting forms
for these proposed Call Report revisions
are available at https://www.ffiec.gov/forms051.htm.

Draft as of January 3, 2018

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Draft Revisions to the Call Report Instructions
for Revisions to the FFIEC 051 Call Report
Proposed to Take Effect March 31, 2018, and June 30, 2018
Contents
Draft Revisions to Address Changes in the Accounting for Equity Securities and
Other Equity Investments Proposed to Take Effect March 31, 2018
Schedule RI – Income Statement

5
14

Schedule RC-B – Securities

Schedule RC-F – Other Assets
Schedule RC-K – Quarterly Averages

Schedule RC-M – Memoranda

Schedule RC – Balance Sheet

Schedule RC-R – Regulatory Capital

Draft Burden-Reducing Revisions to the Call Report Proposed to Take Effect June 30, 2018
40

Schedule RI – Income Statement

Schedule RI-B, Part II – Changes in Allowance for Loan and Lease Losses

Schedule RI-E – Explanations

Schedule RC – Balance Sheet

Schedule RC-B – Securities

Schedule RC-C, Part I – Loans and Leases

Schedule RC-K – Quarterly Averages

Schedule RC-L – Off-Balance-Sheet Items

Schedule RC-M – Memoranda

Schedule RC-N – Past Due and Nonaccrual Loans, Leases, and Other Assets

General Instructions

NOTE: These draft instructions reflect the proposed revisions to the FFIEC 051 Call Report
described in the federal banking agencies’ final Paperwork Reduction Act Federal Register
notice for this proposal that will be published in January 2018. The Federal Register notice
and the redlined draft reporting forms for these proposed Call Report revisions are available
at https://www.ffiec.gov/forms051.htm.
Questions concerning these draft instructions may be submitted to the FFIEC by going to
https://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 Revisions to the FFIEC 051 Call Report Instructions
for the Revisions to Address
Changes in the Accounting for
Equity Securities and Other Equity Investments
Proposed to Take Effect March 31, 2018

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RI - INCOME STATEMENT

FFIEC 051

Item No.
1.b

Caption and Instructions
Income from lease financing receivables. Report all income from direct financing and
leveraged leases reportable in Schedule RC-C, Part I, item 10, "Lease financing receivables
(net of unearned income)." (See the Glossary entry for "lease accounting.")
Exclude from income from lease financing receivables:
(1) Any investment tax credit associated with leased property (include in Schedule RI,
item 9, "Applicable income taxes (on item 8)").
(2) Provision for possible losses on leases (report in Schedule RI, item 4, "Provision for
loan and lease losses").

(3) Rental fees applicable to operating leases for furniture and equipment rented to others
(report as "Other noninterest income" in Schedule RI, item 5.l).

Interest income on balances due from depository institutions. Report all income on
assets reportable in Schedule RC, item 1.b, “Interest-bearing balances due from depository
institutions,” including interest-bearing balances maintained to satisfy reserve balance
requirements, excess balances, and term deposits due from Federal Reserve Banks. Include
interest income earned on interest-bearing balances due from depository institutions that are
reported at fair value under a fair value option.

1.d

Interest and dividend income on securities. Report in the appropriate subitem all income
on assets that are reportable in Schedule RC-B, Securities. Include accretion of discount
and deduct amortization of premium on securities. Refer to the Glossary entry for
"premiums and discounts."

1.c

For institutions that have adopted FASB Accounting Standards Update No. 2016-01
(ASU 2016-01), which includes provisions governing the accounting for investments in equity
securities and eliminates the concept of available-for-sale equity securities (see the Note
preceding the instructions for Schedule RI, item 8.b), include dividend income on equity
securities with readily determinable fair values not held for trading that are reportable in
Schedule RC, item 2.c.

Include interest and dividends on securities held in the bank's held-to-maturity and
available-for-sale portfolios, even if such securities have been lent, sold under agreements
to repurchase that are treated as borrowings, or pledged as collateral for any purpose.

Include interest received at the sale of securities to the extent that such interest had not
already been accrued on the bank's books.
Do not deduct accrued interest included in the purchase price of securities from income on
securities and do not charge to expense. Record such interest in a separate asset account
(to be reported in Schedule RC, item 11, "Other assets") to be offset upon collection of the
next interest payment.
Report income from detached U.S. Government security coupons and ex-coupon
U.S. Government securities not held for trading in Schedule RI, item 1.d.(3), as interest and
dividend income on "All other securities." Refer to the Glossary entry for "coupon stripping,
Treasury receipts, and STRIPS."
Exclude from interest and dividend income on securities:
(1) Realized gains (losses) on held-to-maturity securities and on available-for-sale securities
(report in Schedule RI, items 6.a and 6.b, respectively).

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(2) Net unrealized holding gains (losses) on available-for-sale securities (include the amount
of such net unrealized holding gains (losses) in Schedule RC, item 26.b, “Accumulated
other comprehensive income,” and the calendar year-to-date change in such net
unrealized holding gains (losses) in Schedule RI-A, item 10, “Other comprehensive
income”).

(3) For institutions that have adopted ASU 2016-01, realized and unrealized gains (losses) on
equity securities with readily determinable fair values not held for trading (report in
Schedule RI, item 8.b).

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Caption and Instructions

1.d
(cont.)

(34)Income from advances to, or obligations of, majority-owned subsidiaries not consolidated,
associated companies, and those corporate joint ventures over which the bank exercises
significant influence (report as "Noninterest income" in the appropriate subitem of
Schedule RI, item 5).

1.d.(1)

Interest and dividend income on U.S. Treasury securities and U.S. Government agency
obligations (excluding mortgage-backed securities). Report income from all securities
reportable in Schedule RC-B, item 1, “U.S. Treasury securities,” and item 2,
“U.S. Government agency obligations.” Include accretion of discount on U.S. Treasury bills.

1.d.(2)

Interest and dividend income on mortgage-backed securities. Report income from all
securities reportable in Schedule RC-B, item 4, “Mortgage-backed securities.”

1.d.(3)

Interest and dividend income on all other securities. Report income from all securities
reportable in Schedule RC-B, item 3, “Securities issued by states and political subdivisions
in the U.S.,” item 5, “Asset-backed securities and structured financial products,” and item 6,
“Other debt securities,.” and and For institutions that have not adopted ASU 2016-01, include
income from all securities reportable in Schedule RC-B, item 7, “Investments in mutual funds
and other equity securities with readily determinable fair values.” For institutions that have
adopted ASU 2016-01, include income from all securities reportable in Schedule RC, item 2.c,
“Equity securities with readily determinable fair values not held for trading.”

Item No.

Exclude from interest and dividend income on all other securities:

(1) Income from equity securities that do not have readily determinable fair values (report
as “Other interest income” in Schedule RI, item 1.g).

(2) The bank’s proportionate share of the net income or loss from its investments in the stock
of unconsolidated subsidiaries, associated companies, and those corporate joint ventures
over which the bank exercises significant influence (report income or loss before
discontinued operations as “Noninterest income” in the appropriate subitem of
Schedule RI, item 5, and report the results of discontinued operations in Schedule RI,
item 11).
Not applicable.

1.f

Interest income on federal funds sold and securities purchased under agreements to
resell. Report the gross revenue from assets reportable in Schedule RC, item 3, "Federal
funds sold and securities purchased under agreements to resell." Include interest income
earned on federal funds sold and securities purchased under agreements to resell that are
reported at fair value under a fair value option.

1.e

Report the expense of federal funds purchased and securities sold under agreements to
repurchase in Schedule RI, item 2.b; do not deduct from the gross revenue reported in this
item. However, if amounts recognized as payables under repurchase agreements have
been offset against amounts recognized as receivables under reverse repurchase
agreements and reported as a net amount in Schedule RC, Balance Sheet, in accordance
with ASC Subtopic 210-20, Balance Sheet – Offsetting (formerly FASB Interpretation No. 41,
“Offsetting of Amounts Related to Certain Repurchase and Reverse Repurchase
Agreements”), the income and expense from these agreements may be reported on a net
basis in Schedule RI, Income Statement.

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Item No.
1.g

RI - INCOME STATEMENT

Caption and Instructions
Other interest income. Report interest and dividend income on assets other than those
assets properly reported in Schedule RC, items 1 through 4. Include interest income on
receivables arising from foreclosures on fully and partially government-guaranteed mortgage
loans that are reportable in Schedule RC-F, item 6. Include dividend income on “Equity
securities that do not haveinvestments without readily determinable fair values” that are
reportable in Schedule RC-F, item 4. Also include interest income on interest-only strips
receivable (not in the form of a security) that are reportable in Schedule RC-F, item 3.
However, exclude interest and dividends on venture capital investments (loans and
securities), which should be reported in item 5.l, below.

Include interest income on trading assets that are reportable in Schedule RC, item 5,
including accretion of discount on assets held for trading that have been issued on a discount
basis, such as U.S. Treasury bills and commercial paper.

Exclude gains (losses) and fees from trading assets, which should be reported as trading
revenue in Schedule RI, item 5.l, “Other noninterest income.” Also exclude revaluation
adjustments from the periodic marking to fair value of derivative contracts held for trading
purposes, which should be reported as trading revenue in Schedule RI, item 5.l. The effect of
the periodic net settlements on these derivative contracts should be included as part of the
revaluation adjustments from the periodic marking to market of the contracts.
1.h

Total interest income. Report the sum of items 1.a.(6) through 1.g.

Interest expense:

2.a

Interest on deposits. Report in the appropriate subitem all interest expense, including
amortization of the cost of merchandise or property offered in lieu of interest payments, on
deposits reportable in Schedule RC, item 13.a.(2), "Interest-bearing deposits in domestic
offices,".

Exclude the cost of gifts or premiums (whether in the form of merchandise, credit, or cash)
given to depositors at the time of the opening of a new account or an addition to, or renewal
of, an existing account (report in Schedule RI, item 7.d, "Other noninterest expense").

Include as interest expense on the appropriate category of deposits finders' fees, brokers'
fees, and other fees related to any type of interest-bearing brokered deposit account
(e.g., money market deposit accounts) that represent an adjustment to the interest rate paid
on deposits the reporting bank acquires through brokers. If these fees are paid in advance
and are material, they should be capitalized and amortized over the term of the related
deposits. However, exclude fees levied by brokers that are, in substance, retainer fees or that
otherwise do not represent an adjustment to the interest rate paid on brokered deposits
(e.g., flat fees to administer the account) (report such fees in Schedule RI, item 7.d, "Other
noninterest expense").
Also include interest expense incurred on deposits that are reported at fair value under a fair
value option. Deposits with demand features (e.g., demand and savings deposits) are
generally not eligible for the fair value option.
Deduct from the gross interest expense of the appropriate category of time deposits penalties
for early withdrawals, or portions of such penalties, that represent the forfeiture of interest
accrued or paid to the date of withdrawal. If material, portions of penalties for early

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FFIEC 051

Item No.
5.k

RI - INCOME STATEMENT

Other noninterest income. Report all operating income of the bank for the calendar year to
date not required to be reported elsewhere in Schedule RI.

5.l

For institutions that have adopted ASU 2016-01, do not include:
(1) Unrealized holding gains (losses) on equity securities and other equity investments
without readily determinable fair values not held for trading that are measured at fair value
through earnings.
(2) Impairment, if any, plus or minus changes resulting from observable price changes on
equity securities and other equity investments without readily determinable fair values not
held for trading for which this measurement election is made.
These amounts should be reported in Schedule RI, item 8.b. Also do not include net gains
(losses) on sales and other disposals of held-to-maturity securities, available-for-sale debt
securities, equity securities with readily determinable fair values not held for trading, loans and
leases (either directly or through securitization), trading assets, and other real estate owned
(report these net gains (losses) in the appropriate items of Schedule RI).

Disclose in Schedule RI-E, items 1.a through 1.l, each component of other noninterest
income, and the dollar amount of such component, that is greater than $100,000 and exceeds
3 percent of the other noninterest income reported in this item. If net losses have been
reported in this item for a component of “Other noninterest income,” use the absolute value of
such net losses to determine whether the amount of the net losses is greater than $100,000
and exceeds 3 percent of “Other noninterest income” and should be reported in
Schedule RI-E, item 1. (The absolute value refers to the magnitude of the dollar amount
without regard to whether the amount represents net gains or net losses.)
For each component of other noninterest income that exceeds the disclosure threshold in
the preceding paragraph and for which a preprinted caption has not been provided in
Schedule RI-E, items 1.a through 1.i, describe the component with a clear but concise caption
in Schedule RI-E, items 1.j through 1.l. These descriptions should not exceed 50 characters
in length (including spacing between words).
For disclosure purposes in Schedule RI-E, items 1.a through 1.i, when components of “Other
noninterest income” reflect a single credit for separate “bundled services” provided through
third party vendors, disclose such amounts in the item with the preprinted caption that most
closely describes the predominant type of income earned, and this categorization should be
used consistently over time.

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Item No.

RI - INCOME STATEMENT

Caption and Instructions
Total noninterest income. Report the sum of items 5.a through 5.l.

6.a

Realized gains (losses) on held-to-maturity securities. Report the net gain or loss
realized during the calendar year to date from the sale, exchange, redemption, or retirement
of all securities reportable in Schedule RC, item 2.a, "Held-to-maturity securities." The
realized gain or loss on a security is the difference between the sales price (excluding interest
at the coupon rate accrued since the last interest payment date, if any) and its amortized cost.
Also include in this item other-than-temporary impairment losses on individual held-to-maturity
securities that must be recognized in earnings. For further information on the accounting for
impairment of held-to-maturity securities, see the Glossary entry for “securities activities.”
If the amount to be reported in this item is a net loss, report it with a minus (-) sign.

5.m

Exclude from this item realized gains (losses) on available-for-sale securities (report in
Schedule RI, item 6.b, below) and on trading securities (report as trading revenue in
Schedule RI, item 5.l, “Other noninterest income”).

Realized gains (losses) on available-for-sale securities. Report the net gain or loss
realized during the calendar year to date from the sale, exchange, redemption, or retirement
of all securities reportable in Schedule RC, item 2.b, "Available-for-sale securities." The
realized gain or loss on a security is the difference between the sales price (excluding interest
at the coupon rate accrued since the last interest payment date, if any) and its amortized cost.
Also include in this item other-than-temporary impairment losses on individual
available-for-sale securities that must be recognized in earnings. For further information on
the accounting for impairment of available-for-sale securities, see the Glossary entry for
“securities activities.” If the amount to be reported in this item is a net loss, report it with a
minus (-) sign.

6.b

For institutions that have adopted FASB Accounting Standards Update No. 2016-01
(ASU 2016-01), which includes provisions governing the accounting for investments in equity
securities and eliminates the concept of available-for-sale equity securities (see the Note
preceding the instructions for Schedule RI, item 8.b), include realized gains (losses) only on
available-for-sale debt securities in item 6.b. Report realized and unrealized gains (losses)
during the year-to-date reporting period on equity securities with readily determinable fair
values not held for trading in Schedule RI, item 8.b.
Exclude from this item:

(1) (a) For institutions that have not adopted ASU 2016-01, Tthe change in net unrealized
holding gains (losses) on available-for-sale debt and equity securities during the
calendar year to date (report in Schedule RI-A, item 10, “Other comprehensive
income”).
(b) For institutions that have adopted ASU 2016-01, the change in net unrealized holding
gains (losses) on available-for-sale debt securities during the calendar year to date
(report in Schedule RI-A, item 10, “Other comprehensive income”).
(2) Realized gains (losses) on held-to-maturity securities (report in Schedule RI, item 6.a,
above) and on trading securities (report as trading revenue in Schedule RI, item 5.l,
“Other noninterest income”).

Noninterest expense:

7.a

Salaries and employee benefits. Report salaries and benefits of all officers and
employees of the bank and its consolidated subsidiaries including guards and contracted
guards, temporary office help, dining room and cafeteria employees, and building department

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Item No.

Caption and Instructions

7.d
(cont.)

Exclude from other noninterest expense:
(1) Material expenses incurred in the issuance of subordinated notes and debentures
(capitalize such expenses and amortize them over the life of the related notes and
debentures using the effective interest method and report the expense in Schedule RI,
item 2.c, "Other interest expense"). For further information, see the Glossary entry for
“Debt issuance costs.”

(2) Expenses incurred in the sale of preferred and common stock (deduct such expenses
from the sale proceeds and credit the net amount to the appropriate stock account.
For perpetual preferred and common stock only, report the net sales proceeds in
Schedule RI-A, item 5, "Sale, conversion, acquisition, or retirement of capital stock, net").
(3) Depreciation and other expenses related to the use of bank-owned automobiles,
airplanes, and other vehicles for bank business (report in Schedule RI, item 7.b,
"Expenses of premises and fixed assets").

(4) Write-downs of the cost basis of individual held-to-maturity and available-for-sale
securities for other-than-temporary impairments (report in Schedule RI, item 6.a,
"Realized gains (losses) on held-to-maturity securities," and item 6.b, "Realized gains
(losses) on available-for-sale securities," respectively).

(5) Revaluation adjustments to the carrying value of all assets and liabilities reported in
Schedule RC at fair value under a fair value option. Banks should report these net
decreases (increases) in fair value on servicing assets and liabilities in Schedule RI,
item 5.f, and on financial assets and liabilities (including trading assets and liabilities) in
Schedule RI, item 5.l. Interest income earned and interest expense incurred on these
financial assets and liabilities should be excluded from the net decreases (increases) in
fair value and reported in the appropriate interest income or interest expense items on
Schedule RI.
Total noninterest expense. Report the sum of items 7.a through 7.d.

8.a

Income (loss) before unrealized holding gains (losses) on equity securities not held for
trading, applicable income taxes, and discontinued operations. Report the
bank'sinstitution’s pretax operating income from continuing operations before unrealized
holding gains (losses) on equity securities not held for trading. This amount is determined by
taking item 3, "Net interest income," minus item 4, "Provision for loan and lease losses," plus
item 5.m, "Total noninterest income," plus item 6.a, "Realized gains (losses) on held-tomaturity securities," plus item 6.b, "Realized gains (losses) on available-for-sale securities,"
minus item 7.e, "Total noninterest expense." If the result is negative, report it with a minus (-)
sign.

7.e

NOTE: Item 8.b is to be completed only by institutions that have adopted FASB Accounting Standards
Update No. 2016-01 (ASU 2016-01), which includes provisions governing the accounting for investments
in equity securities and eliminates the concept of available-for-sale equity securities. ASU 2016-01
requires holdings of equity securities (except those accounted for under the equity method or that result in
consolidation), including other ownership interests (such as partnerships, unincorporated joint ventures,
and limited liability companies), to be measured at fair value with changes in the fair value recognized
through net income. However, an institution may choose to measure equity securities and other equity
investments that do not have readily determinable fair values at cost minus impairment, if any, plus or
minus changes resulting from observable price changes in orderly transactions for the identical or a
similar investment of the same issuer.
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RI - INCOME STATEMENT

Institutions that have not adopted ASU 2016-01 should leave item 8.b blank and report their unrealized
gains (losses) on available-for-sale equity securities during the year-to-date reporting period in Schedule
RI-A, item 10, “Other comprehensive income”).

Unrealized holding gains (losses) on equity securities not held for trading. Report
unrealized holding gains (losses) during the year-to-date reporting period on equity securities
with readily determinable fair values not held for trading. Include unrealized holding gains
(losses) during the year-to-date reporting period on equity securities and other equity
investments without readily determinable fair values not held for trading that are measured at
fair value through earnings. Also include impairment, if any, plus or minus changes resulting
from observable price changes during the year-to-date reporting period on equity securities
and other equity investments without readily determinable fair values not held for trading for
which this measurement election is made).

8.b

If an institution sells an equity security or other equity investment, but had not yet recorded the
change in value to the point of sale since the last value change was recorded, include the
change in value of the equity security or other equity investment to the point of sale in this
item.
Income (loss) before applicable income taxes and discontinued operations. Report the
institution’s pretax income from continuing operations as the sum of Schedule RI, item 8.a,
"Income (loss) before unrealized holding gains (losses) on equity securities not held for
trading, applicable income taxes, and discontinued operations," and Schedule RI, item 8.b,
"Unrealized holding gains (losses) on equity securities not held for trading." If the amount is
negative, report it with a minus (-) sign.

8.c

Applicable income taxes (on item 8.c). Report the total estimated federal, state, and local
income tax expense applicable to item 8.c, "Income (loss) before applicable income taxes and
discontinued operations." Include both the current and deferred portions of these income
taxes. If the amount is a tax benefit rather than tax expense, report it with a minus (-) sign.

Include as applicable income taxes all taxes based on a net amount of taxable revenues
less deductible expenses. Exclude from applicable income taxes all taxes based on gross
revenues or gross receipts (report such taxes in Schedule RI, item 7.d, "Other noninterest
expense").

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Item No.

Caption and Instructions

9
(cont.)

Include income tax effects of changes in tax laws or rates. Also include the effect of changes
in the valuation allowance related to deferred tax assets resulting from a change in estimate
of the realizability of deferred tax assets, excluding the effect of any valuation allowance
changes related to unrealized holding gains (losses) on available-for-sale securities that are
charged or credited directly to the separate component of equity capital for “Accumulated
other comprehensive income" (Schedule RC, item 26.b).
Include the tax benefit of an operating loss carryforward or carryback for which the source of
the income or loss in the current year is reported in Schedule RI, item 8, "Income (loss) before
applicable income taxes and discontinued operations."

Also include the dollar amount of any material adjustments or settlements reached with a
taxing authority (whether negotiated or adjudicated) relating to disputed income taxes of prior
years.
Exclude the estimated federal, state, and local income taxes applicable to:

(1) Schedule RI, item 11, "Discontinued operations, net of applicable income taxes."

(2) Schedule RI-A, item 2, "Cumulative effect of changes in accounting principles and
corrections of material accounting errors."
(3) Schedule RI-A, item 10, "Other comprehensive income.“

Refer to the Glossary entry for "income taxes" for additional information.

Income (loss) before discontinued operations. Report Schedule RI, item 8.c, "Income
(loss) before applicable income taxes and discontinued operations," minus Schedule RI,
item 9, "Applicable income taxes (on item 8)." If the amount is negative, report it with a
minus (-) sign.

Discontinued operations, net of applicable income taxes. Report the results of
discontinued operations, if any, net of applicable income taxes, as determined in accordance
with the provisions of ASC Subtopic 205-20, Presentation of Financial Statements –
Discontinued Operations (formerly FASB Statement No. 144, “Accounting for the Impairment
of Long-Lived Assets”). If the amount reported in this item is a net loss, report it with a
minus (-) sign. State the dollar amount of the results of, and describe each of, the reporting
institution’s discontinued operations included in this item and the applicable income tax effect
in Schedule RI-E, item 3.

Net income (loss) attributable to bank and noncontrolling (minority) interests.
Report the sum of Schedule RI, items 10 and 11. If this amount is a net loss, report it with a
minus (-) sign.

LESS: Net income (loss) attributable to noncontrolling (minority) interests. Report that
portion of consolidated net income reported in Schedule RI, item 12, above, attributable to
noncontrolling interests in consolidated subsidiaries of the bank. A noncontrolling interest,
also called a minority interest, is the portion of equity in a bank’s subsidiary not attributable,
directly or indirectly, to the parent bank. If the amount reported in this item is a net loss, report
it with a minus (-) sign.

Net income (loss) attributable to bank. Report Schedule RI, item 12, less item 13. If this
amount is a net loss, report it with a minus (-) sign.

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RC - BALANCE SHEET

Item No.

Caption and Instructions

1.a
(cont.)

(2) Noninterest-bearing balances that reflect deposit credit received by the reporting bank
because of credit or debit card sales slips that had been forwarded for collection. (Until
credit has been received, report as noncash items in process of collection in
Schedule RC-F, item 6, "All other assets.”)
(3) Amounts that the reporting bank has actually passed through to a Federal Reserve Bank
on behalf of its respondent depository institutions (see the Glossary entry for
"pass-through reserve balances" for further discussion).
Exclude from noninterest-bearing balances due from depository institutions:

(1) Balances due from Federal Reserve Banks (report as interest-bearing balances due from
depository institutions in Schedule RC, item 1.b).

(2) Deposit accounts "due to" other depository institutions that are overdrawn (report in
Schedule RC-C, Part I, item 2, "Loans to depository institutions and acceptances of other
banks").

(3) All noninterest-bearing balances that the reporting bank's trust department maintains with
other depository institutions.
Interest-bearing balances. Report all interest-bearing balances due from depository
institutions whether in the form of demand, savings, or time balances, including certificates of
deposit (CDs), even if the CDs are negotiable or have CUSIP numbers, but excluding
certificates of deposit held for trading. Include balances due from Federal Reserve Banks
(including balances maintained to satisfy reserve balance requirements, excess balances,
and term deposits), commercial banks in the U.S., other depository institutions in the U.S.,
Federal Home Loan Banks, banks in foreign countries, and foreign central banks. Include the
fair value of interest-bearing balances due from depository institutions that are accounted for
at fair value under a fair value option.

1.b

For banks with $300 million or more in total assets, the components of this item will also be
included in the appropriate items of Schedule RC-A in the June and December reports when
Schedule RC-A must be completed.
Exclude from interest-bearing balances:

(1) Loans to depository institutions and acceptances of other banks (report in
Schedule RC-C, Part I, item 2).
(2) All interest-bearing balances that the reporting bank's trust department maintains with
other depository institutions.
(3) Certificates of deposit held for trading (report in Schedule RC, item 5).
(4) Investments in money market mutual funds, which, for purposes of these reports, are to
be reported as investments in equity securities.

Securities:

2.a

Held-to-maturity securities. Report the amount from Schedule RC-B, item 8, column A,
"Total amortized cost."

2.b

Available-for-sale securities. Report the amount from Schedule RC-B, item 8, column D,
"Total fair value."

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Item No.

Caption and Instructions

NOTE: Item 2.c is to be completed only by institutions that have adopted FASB Accounting Standards
Update No. 2016-01 (ASU 2016-01), which includes provisions governing the accounting for investments
in equity securities, including investment in mutual funds, and eliminates the concept of available-for-sale
equity securities. ASU 2016-01 requires holdings of equity securities (except those accounted for under
the equity method or that result in consolidation), including other ownership interests (such as
partnerships, unincorporated joint ventures, and limited liability companies), to be measured at fair value
with changes in the fair value recognized through net income. However, an institution may choose to
measure equity securities and other equity investments that do not have readily determinable fair values at
cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly
transactions for the identical or a similar investment of the same issuer.

Institutions that have not adopted ASU 2016-01 should leave item 2.c blank and report their holdings of
equity securities with readily determinable fair values not held for trading as available-for-sale equity
securities in Schedule RC-B, item 7, and in Schedule RC, item 2.b.

Equity securities with readily determinable fair values not held for trading. Report the
fair value of all investments in mutual funds and other equity securities (as defined in ASC
Topic 321, Investments-Equity Securities) with readily determinable fair values that are not
held for trading. Such securities include, but are not limited to, money market mutual funds,
mutual funds that invest solely in U.S. Government securities, common stock, and perpetual
preferred stock. Perpetual preferred stock does not have a stated maturity date and cannot
be redeemed at the option of the investor, although it may be redeemable at the option of the
issuer.

2.c

Exclude equity securities held for trading from Schedule RC, item 2.c. For purposes of the
Call Report balance sheet, trading activities typically include (a) regularly underwriting or
dealing in securities; interest rate, foreign exchange rate, commodity, equity, and credit
derivative contracts; other financial instruments; and other assets for resale, (b) acquiring or
taking positions in such items principally for the purpose of selling in the near term or
otherwise with the intent to resell in order to profit from short-term price movements, and
(c) acquiring or taking positions in such items as an accommodation to customers or for other
trading purposes. When an institution’s holdings of equity securities with readily determinable
fair values fall within the scope of the preceding description of trading activities, the equity
securities should be reported as trading assets in Schedule RC, item 5. Otherwise, the equity
securities should be reported in this item 2.c.
According to ASC Topic 321, the fair value of an equity security is readily determinable if sales
prices or bid-and-asked quotations are currently available on a securities exchange registered
with the U.S. Securities and Exchange Commission (SEC) or in the over-the-counter market,
provided that those prices or quotations for the over-the-counter market are publicly reported
by the National Association of Securities Dealers Automated Quotations systems or by OTC
Markets Group Inc. (“Restricted stock” meets that definition if the restriction terminates within
one year.) The fair value of an equity security traded only in a foreign market is readily

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determinable if that foreign market is of a breadth and scope comparable to one of the U.S.
markets referred to above. The fair value of an investment in a mutual fund (or in a structure
similar to a mutual fund, i.e., a limited partnership or a venture capital entity) is readily
determinable if the fair value per share (unit) is determined and published and is the basis for
current transactions.
Investments in mutual funds and other equity securities with readily determinable fair values
may have been purchased by the reporting institution or acquired for debts previously
contracted.

Include in this item common stock and perpetual preferred stock of the Federal National
Mortgage Association (Fannie Mae), common stock and perpetual preferred stock of the
Federal Home Loan Mortgage Corporation (Freddie Mac), Class A voting and Class C
non-voting common stock of the Federal Agricultural Mortgage Corporation (Farmer Mac),
and common and preferred stock of SLM Corporation (the private-sector successor to the
Student Loan Marketing Association).
Exclude from equity securities with readily determinable fair values not held for trading:

(1) Paid-in stock of a Federal Reserve Bank (report as an equity investment without a readily
determinable fair value in Schedule RC-F, item 4).
(2) Stock of a Federal Home Loan Bank (report as an equity investment without a readily
determinable fair value in Schedule RC-F, item 4).
(3) Common and preferred stocks that do not have readily determinable fair values, such as
stock of bankers' banks and Class B voting common stock of the Federal Agricultural
Mortgage Corporation (Farmer Mac) (report in Schedule RC-F, item 4).

(4) Preferred stock that by its terms either must be redeemed by the issuing enterprise or is
redeemable at the option of the investor (i.e., redeemable or limited-life preferred stock),
including trust preferred securities subject to mandatory redemption (report such
preferred stock as an other debt security in Schedule RC-B, item 6).

(5) "Restricted stock," i.e., equity securities for which sale is restricted by governmental or
contractual requirement (other than in connection with being pledged as collateral),
except if that requirement terminates within one year or if the holder has the power by
contract or otherwise to cause the requirement to be met within one year (if the restriction
does not terminate within one year, report "restricted stock" as an equity investment
without a readily determinable fair value in Schedule RC-F, item 4).
(6) Participation certificates issued by a Federal Intermediate Credit Bank, which represent
nonvoting stock in the bank (report as an equity investment without a readily determinable
fair value in Schedule RC-F, item 4).
(7) Minority interests held by the reporting institution in any companies not meeting the
definition of associated company (report as equity investments without readily
determinable fair values in Schedule RC-F, item 4), except minority holdings that
indirectly represent bank premises (report in Schedule RC, item 6) or other real estate
owned (report in Schedule RC, item 7), provided that the fair value of any capital stock
representing the minority interest is not readily determinable. (See the Glossary entry for
"subsidiaries" for the definition of associated company.)
(8) Equity holdings in those corporate joint ventures over which the reporting institution does
not exercise significant influence (report as equity investments without readily

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determinable fair value in Schedule RC-F, item 4), except equity holdings that indirectly
represent bank premises (report in Schedule RC, item 6) or other real estate owned
(report in Schedule RC, item 7). (See the Glossary entry for "subsidiaries" for the
definition of corporate joint venture.)

(9) Holdings of capital stock of and investments in unconsolidated subsidiaries, associated
companies, and those corporate joint ventures over which the reporting bank exercises
significant influence (report in Schedule RC, item 8, "Investments in unconsolidated
subsidiaries and associated companies").

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Item No.
6

RC - BALANCE SHEET

Caption and Instructions
Premises and fixed assets. Report the book value, less accumulated depreciation or
amortization, of all premises, equipment, furniture and fixtures purchased directly or acquired
by means of a capital lease. Any method of depreciation or amortization conforming to
accounting principles that are generally acceptable for financial reporting purposes may be
used. However, depreciation for premises and fixed assets may be based on a method used
for federal income tax purposes if the results would not be materially different from
depreciation based on the asset's estimated useful life.

Include as premises and fixed assets:

Do not deduct mortgages or other liens on such property (report in Schedule RC, item 16,
"Other borrowed money").

(1) Premises that are actually owned and occupied (or to be occupied, if under construction)
by the bank, its branches, or its consolidated subsidiaries.

(2) Leasehold improvements, vaults, and fixed machinery and equipment.
(3) Remodeling costs to existing premises.

(4) Real estate acquired and intended to be used for future expansion.

(5) Parking lots that are used by customers or employees of the bank, its branches, and its
consolidated subsidiaries.
(6) Furniture, fixtures, and movable equipment of the bank, its branches, and its consolidated
subsidiaries.

(7) Automobiles, airplanes, and other vehicles owned by the bank and used in the conduct of
its business.
(8) The amount of capital lease property (with the bank as lessee): premises, furniture,
fixtures, and equipment. See the discussion of accounting with bank as lessee in the
Glossary entry for "lease accounting."

(9) (a) Stocks and bonds issued by nonmajority-owned corporations and
(b) Investments in limited partnerships or limited liability companies (other than
investments so minor that the institution has virtually no influence over the partnership
or company)
whose principal activity is the ownership of land, buildings, equipment, furniture, or
fixtures occupied or used (or to be occupied or used) by the bank, its branches, or its
consolidated subsidiaries. For institutions that have adopted ASU 2016-01 (see the Note
preceding the instructions for Schedule RC, item 2.c), report such stocks and investments
at (i) fair value or (ii) if chosen by the reporting institution for an equity investment that
does not have a readily determinable fair value, at cost minus impairment, if any, plus or
minus changes resulting from observable price changes in orderly transactions for the
identical or a similar investment of the same issuer.
Exclude from premises and fixed assets:
(1) Original paintings, antiques, and similar valuable objects (report in Schedule RC-F,
item 6, "All other assets”).

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Caption and Instructions

9
(cont.)

(3) Real estate originally acquired and held for investment by the bank or a consolidated
subsidiary that has been sold under contract and accounted for under the deposit method
of accounting in accordance with ASC Subtopic 360-20, Property, Plant, and Equipment –
Real Estate Sales (formerly FASB Statement No. 66, “Accounting for Sales of Real
Estate”). Under this method, the seller does not record notes receivable, but continues to
report the real estate and any related existing debt on its balance sheet. The deposit
method is used when a sale has not been consummated and is commonly used when
recovery of the carrying value of the property is not reasonably assured. If the full
accrual, installment, cost recovery, reduced profit, or percentage-of-completion method of
accounting under ASC Subtopic 360-20 is being used to account for the sale, the
receivable resulting from the sale of the real estate should be reported as a loan in
Schedule RC-C and any gain on the sale should be recognized in accordance with
ASC Subtopic 360-20.

Item No.

(4) Any other loans secured by real estate and advanced for real estate acquisition,
development, or investment purposes if the reporting bank in substance has virtually the
same risks and potential rewards as an investor in the borrower's real estate venture.

(5) Investments in subsidiaries that have not been consolidated; associated companies;
corporate joint ventures, unincorporated joint ventures, and general partnerships over
which the bank exercises significant influence; and noncontrolling investments in certain
limited partnerships and limited liability companies (described in the Glossary entry for
“equity method of accounting”) that are primarily engaged in the holding of real estate for
development, resale, or other investment purposes. The entities in which these
investments have been made are collectively referred to as “investees.” Investments by
the bank in these investees may be in the form of common or preferred stock, partnership
interests, loans or other advances, bonds, notes, or debentures. Such investments shall
be reported using the equity method of accounting. For further information on the equity
method, see the instruction to Schedule RC, item 8, above.

(6) Investments in corporate joint ventures, unincorporated joint ventures, and general
partnerships over which the bank does not exercise significant influence and investments
in limited partnerships and limited liability companies that are so minor that the bank has
virtually no influence over the partnership or company, where the entity in which the
investment has been made is primarily engaged in the holding of real estate for
development, resale, or other investment purposes. For institutions that have adopted
ASU 2016-01 (see the Note preceding the instructions for Schedule RC, item 2.c), report
such investments at (i) fair value or (ii) if chosen by the reporting institution for an equity
investment that does not have a readily determinable fair value, at cost minus impairment,
if any, plus or minus changes resulting from observable price changes in orderly
transactions for the identical or a similar investment of the same issuer.

Intangible assets:

10.a

Goodwill. Report the carrying amount of goodwill as adjusted for any impairment losses and,
if the private company goodwill accounting alternative has been elected, the amortization of
goodwill. Except when this accounting alternative has been elected, goodwill should not be
amortized. However, regardless of whether goodwill is amortized, it must be tested for
impairment as described in the Glossary entry for “goodwill.” See "acquisition method" in the
Glossary entry for "business combinations" for guidance on the recognition and initial
measurement of goodwill acquired in a business combination.

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RC-B - SECURITIES

Item No.

Caption and Instructions

6.b
(cont.)

(3) Debt securities issued by international organizations such as the International Bank for
Reconstruction and Development (World Bank), Inter-American Development Bank, and
Asian Development Bank.
(4) Preferred stock of non-U.S.-chartered corporations that by its terms either must be
redeemed by the issuing enterprise or is redeemable at the option of the investor
(i.e., redeemable or limited-life preferred stock).

NOTE: Item 7 is to be completed only by institutions that have not adopted FASB Accounting Standards
Update No. 2016-01 (ASU 2016-01), which includes provisions governing the accounting for investments
in equity securities, including investment in mutual funds, and eliminates the concept of available-for-sale
equity securities. ASU 2016-01 requires holdings of equity securities with readily determinable fair values
(except those accounted for under the equity method or that result in consolidation) to be measured at fair
value with changes in the fair value recognized through net income.

Institutions that have adopted ASU 2016-01 should leave item 7 blank and report their holdings of equity
securities with readily determinable fair values not held for trading in Schedule RC, item 2.c.

For institutions that are public business entities, as defined in U.S. GAAP, ASU 2016-01 is effective for
fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For
example, an institution with a calendar year fiscal year that is a public business entity must begin to apply
ASU 2016-01 in its Call Report for March 31, 2018. For all other institutions, ASU 2016-01 is effective for
fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after
December 15, 2019. For example, an institution with a calendar year fiscal year that is not a public
business entity must begin to apply ASU 2016-01 in its Call Report for December 31, 2019. Early
application of ASU 2016-01 is permitted for all institutions that are not public business entities as of
fiscal years beginning after December 15, 2017, including interim periods within those fiscal years.
Investments in mutual funds and other equity securities with readily determinable fair
values. Report in columns C and D the historical cost and fair value, respectively, of all
investments in mutual funds and other equity securities (as defined in ASC Topic 320,
Investments-Debt and Equity Securities (formerly FASB Statement No. 115, “Accounting for
Certain Investments in Debt and Equity Securities”)) with readily determinable fair values.
Such securities include, but are not limited to, money market mutual funds, mutual funds that
invest solely in U.S. Government securities, common stock, and perpetual preferred stock.
Perpetual preferred stock does not have a stated maturity date and cannot be redeemed at
the option of the investor, although it may be redeemable at the option of the issuer.

According to ASC Topic 320, the fair value of an equity security is readily determinable if sales
prices or bid-and-asked quotations are currently available on a securities exchange registered
with the U.S. Securities and Exchange Commission (SEC) or in the over-the-counter market,
provided that those prices or quotations for the over-the-counter market are publicly reported
by the National Association of Securities Dealers Automated Quotations systems or by
Pink Sheets LLCOTC Markets Group Inc. (“Restricted stock” meets that definition if the
restriction terminates within one year.) The fair value of an equity security traded only in a
foreign market is readily determinable if that foreign market is of a breadth and scope
comparable to one of the U.S. markets referred to above. The fair value of an investment in a
mutual fund is readily determinable if the fair value per share (unit) is determined and
published and is the basis for current transactions.
Investments in mutual funds and other equity securities with readily determinable fair values
may have been purchased by the reporting bank or acquired for debts previously contracted.

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Item No.
4

RC-F - OTHER ASSETS

Caption and Instructions
Equity securities that do not haveinvestments without readily determinable fair values.
Report the reporting institution’s historical cost of equity securities and other equity
investments without readily determinable fair values that are not reportable in other items on
the Call Report balance sheet (Schedule RC). An equity security does not have a readily
determinable fair value if sales prices or bid-and-asked quotations are not currently available
on a securities exchange registered with the U.S. Securities and Exchange Commission
(SEC) or are not publicly reported by the National Association of Securities Dealers
Automated Quotations systems or by OTC Markets Group Inc. The fair value of an equity
security traded only in a foreign market is not readily determinable if that foreign market is not
of a breadth and scope comparable to one of the U.S. markets referred to above.

Equity investments that do not have readily determinable fair values may have been
purchased by the reporting institution or acquired for debts previously contracted.

For institutions that have not adopted FASB Accounting Standards Update No. 2016-01 (ASU
2016-01), which includes provisions governing the accounting for investments in equity
securities (see the Note preceding the instructions for Schedule RC, item 2.c), report equity
securities and other equity investments without readily determinable fair values at historical
cost. These equity securities are outside the scope of ASC Topic 320, Investments-Debt and
Equity Securities (formerly FASB Statement No. 115, “Accounting for Certain Investments in
Debt and Equity Securities”).
For institutions that have adopted ASU 2016-01, report equity securities and other equity
investments without readily determinable fair values at (i) fair value or (ii) if chosen by the
reporting institution for an individual equity investment that does not have a readily
determinable fair value, at cost minus impairment, if any, plus or minus changes resulting
from observable price changes in orderly transactions for the identical or a similar investment
of the same issuer. These equity securities are within the scope of ASC Topic 321,
Investments-Equity Securities, or ASC Topic 323, Investments-Equity Method and Joint
Ventures.

Although Federal Reserve Bank stock and Federal Home Loan Bank stock do not have
readily determinable fair values, they are outside the scope of ASC Topics 321 and 323. In
accordance with ASC Subtopic 942-325, Financial Services-Depository and Lending –
Investments-Other, Federal Reserve Bank stock and Federal Home Loan Bank stock are
carried at cost and evaluated for impairment.

An equity security does not have a readily determinable fair value if sales or bid-and-asked
quotations are not currently available on a securities exchange registered with the Securities
and Exchange Commission (SEC) and are not publicly reported by the National Association of
Securities Dealers Automated Quotations systems or the National Quotation Bureau. The fair
value of an equity security traded only in a foreign market is not readily determinable if that
foreign market is not of a breadth and scope comparable to one of the U.S. markets
referenced above.
Equity securities that do not have readily determinable fair values may have been purchased
by the reporting bank or acquired for debts previously contracted.
Include in this item:
(1) Paid-in stock of a Federal Reserve Bank stock.
(2) Stock of a Federal Home Loan Bank stock.

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RC-K – AVERAGES

Item Instructions
Item No.

Caption and Instructions

ASSETS
Interest-bearing balances due from depository institutions. Report the quarterly average
for interest-bearing balances due from depository institutions (as defined for Schedule RC,
item 1.b, "Interest-bearing balances").

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's held-to-maturity and available-for-sale U.S. Treasury and Government agency
obligations (as defined for Schedule RC-B, items 1 and 2, columns A and C).

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

All other debt securities and equity securities with readily determinable fair values not
held for trading purposes.

For institutions that have not adopted FASB Accounting Standards Update No. 2016-01
(ASU 2016-01), which includes provisions governing the accounting for investments in equity
securities, including investment in mutual funds, and eliminates the concept of available-forsale equity securities (see the Note preceding Schedule RC-B, item 7), Rreport the quarterly
average of the amortized cost of the bankinstitution'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 RC-B, items
3, 5, and 6, columns A and C) plus the quarterly average of the historical cost of the
institution’s investments in mutual funds and other equity securities with readily determinable
fair values (as defined for Schedule RC-B, item 7, column C).

For institutions that have adopted ASU 2016-01, report the quarterly average of the
amortized cost of the institution’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 RC-B, items 3, 5, and 6,
columns A and C) plus the quarterly average of the fair value of the institution’s investments
in mutual funds and other equity securities with readily determinable fair values (as defined
for Schedule RC, item 2.c).
Federal funds sold and securities purchased under agreements to resell. Report the
quarterly average for federal funds sold and securities purchased under agreements to resell
(as defined for Schedule RC, item 3).

Loans:

6.a

Total loans. Report the quarterly average for total loans held for investment and held for
sale (as defined for Schedule RC-C, Part I, sum of items 1 through 9, less item 11).

6.b

Loans secured by real estate:

6.b.(1)

FFIEC 051

Loans secured by 1-4 family residential properties. Report the quarterly average for
loans secured by 1-4 family residential properties (as defined for Schedule RC-C, Part I,
item 1.c).

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Item No.
6.d

RC-K – AVERAGES

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

6.d.(1)

Credit cards. Report the quarterly average for credit cards (as defined for Schedule RC-C,
Part I, item 6.a).

6.d.(2)

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

NOTE: Item 7 is to be completed by banks that have $100 million or more in total assets.
Trading assets. Report the quarterly average for trading assets (as defined for
Schedule RC, item 5). Trading assets include trading derivatives with positive fair values.

Lease financing receivables (net of unearned income). Report the quarterly average for
lease financing receivables, net of unearned income (as defined for Schedule RC-C, Part I,
item 10).

Total assets.

For institutions that have not adopted FASB Accounting Standards Update No. 2016-01
(ASU 2016-01), which includes provisions governing the accounting for investments in equity
securities, including investment in mutual funds, and eliminates the concept of available-forsale equity securities (see the Note preceding the instructions for Schedule RC, item 2.c),
Rreport the quarterly average for the bank's total assets, as defined for "Total assets," on
Schedule RC, item 12, except that this quarterly average should reflect:
•
aAll debt securities (not held for trading) at amortized cost; and
• aAvailable-for-sale equity securities with readily determinable fair values not held for
trading at the lower of cost or fair value,; and
• eEquity securities and other equity investments without readily determinable fair values
not held for trading at historical cost.
This exception for equity securities and other equity investments does not apply to those
accounted for under the equity method or that result in consolidation.

For institutions that have adopted ASU 2016-01, report the quarterly average for the bank’s
total assets, as defined for “Total assets,” on Schedule RC, item 12, except that this quarterly
average should reflect:
• All debt securities not held for trading at amortized cost;
• Equity securities with readily determinable fair values not held for trading at fair value;
and
• Equity securities and other equity investments without readily determinable fair values not
held for trading as defined for “Total assets,” report such securities and investments at
their balance sheet carrying values (i.e., fair value or, if elected, cost minus impairment, if
any, plus or minus changes resulting from observable price changes in orderly
transactions for the identical or a similar investment of the same issuer).
This exception for equity securities and other equity investments does not apply to those
accounted for under the equity method or that result in consolidation.

In addition, to the extent that net deferred tax assets included in the bank's total assets, if
any, include the deferred tax effects of any unrealized holding gains and losses on availablefor-sale debt securities, these deferred tax effects may be excluded from the determination of
the quarterly average for total assets. If these deferred tax effects are excluded, this
treatment must be followed consistently over time.
This item is not the sum of items 1 through 8 above.

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Item No.

RC-M - MEMORANDA

Caption and Instructions

NOTE: Item 4 is to be completed only by insured state banks that (1) have received FDIC approval in
accordance with Section 362.3(a) of the FDIC’s regulations to hold certain equity investments
(“grandfathered equity securities”), and (2) have adopted FASB Accounting Standards Update No.
2016-01 (ASU 2016-01), which includes provisions governing the accounting for investments in equity
securities, including investment in mutual funds, and eliminates the concept of available-for-sale equity
securities (see the Note preceding Schedule RC, item 2.c). Other institutions should leave item 4 blank.
Not applicable.Cost of equity securities with readily determinable fair values not held for
trading. Report the cost basis of the reporting institution’s holdings of equity securities with
readily determinable fair values not held for trading, the fair value of which is reported in
Schedule RC, item 2.c. The cost basis should reflect the effect of any write-downs of such
securities resulting from other-than-temporary impairments recognized by the institution
before its adoption of ASC 2016-01.

Other borrowed money. Report in the appropriate subitem the specified information about
Federal Home Loan Bank advances to and other borrowings by the consolidated bank.

A fixed interest rate is a rate that is specified at the origination of the advance or other
borrowing, is fixed and invariable during the term of the advance or other borrowing, and is
known to both the bank and the creditor. Also treated as a fixed interest rate is a
predetermined interest rate, which is a rate that changes on a predetermined basis during the
term of the advance or other borrowing, with the exact rate of interest over the life of the
advance or other borrowing known with certainty to both the bank and the creditor when the
advance or other borrowing is originated.
A floating rate is a rate that varies, or can vary, in relation to an index, to some other interest
rate such as the rate on certain U.S. Government securities, or to some other variable
criterion the exact value of which cannot be known in advance. Therefore, the exact interest
rate the advance or other borrowing carries at any subsequent time cannot be known at the
time the advance or other borrowing is originated by the bank or subsequently renewed.

When the rate on an advance or other borrowing with a floating rate has reached a
contractual floor or ceiling level, the advance or other borrowing is to be treated as "fixed rate"
rather than as "floating rate" until the rate is again free to float.

Remaining maturity is amount of time remaining from the report date until the final contractual
maturity of an advance or an other borrowing without regard to the advance’s or the
borrowing’s repayment schedule, if any.

Next repricing date is (a) the date the interest rate on an advance or other borrowing with
a floating rate can next change in accordance with the terms of the contract or (b) the
contractual maturity date of the advance or other borrowing, whichever is earlier.
Advances and other borrowings with a fixed rate that are callable at the option of the Federal
Home Loan Bank or other creditor should be reported according to their remaining maturity
without regard to their next call date unless the advance or other borrowing has actually been
called. When an advance or other borrowing with a fixed rate has been called, it should be
reported based on the time remaining until the call date. Advances and other borrowings with
a floating rate that are callable should be reported on the basis of their next repricing date
without regard to their next call date unless the advance or other borrowing has actually been
called. Advances and other borrowings with a floating rate that have been called should be
reported on the basis of their next repricing date or their actual call date, whichever is earlier.
Advances and other borrowings with a fixed rate that are puttable at the option of the bank

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Part I. (cont.)
Item No.

Caption and Instructions

7
(cont.)

For example, in calendar year 2017, an institution will deduct 80 percent of intangible assets
(other than goodwill and MSAs), net of associated DTLs, from common equity tier 1 capital.
The institution must apply a 100 percent risk weight to the remaining 20 percent of the
intangible assets that are not deducted.

LESS: Deferred tax assets (DTAs) that arise from net operating loss and tax credit
carryforwards, net of any related valuation allowances and net of DTLs. Report the
amount of DTAs that arise from net operating loss and tax credit carryforwards, net of
associated valuation allowances and net of associated DTLs.

Transition provisions:

(i) Determine the amount as described in the instructions for this item 8.
(ii) Multiply the amount in (i) by the appropriate percent in column A of Table 4 below.
Report this product in Schedule RC-R, Part I, item 8.
(iii) Multiply the amount in (i) by the appropriate percent in column B of Table 4 below.
Report this product as part of Schedule RC-R, Part I, item 24, “Additional tier 1 capital
deductions.”

Table 4 – Deductions of DTAs that arise from net operating loss and tax credit
carryforwards, net of any valuation allowances and net of DTLs; gain-on-sale in
connection with a securitization exposure; defined benefit pension fund assets; changes
in fair value of liabilities; and expected credit losses during the transition period
Transition period

Calendar year 2017
Calendar year 2018
and thereafter

Column A: Percentage of the
adjustment applied to common
equity tier 1 capital
80
100

Column B: Percentage of the
adjustment applied to
additional tier 1 capital
20
0

Note for Table 4: An institution may only take a deduction from additional tier 1 capital up to the
amount of additional tier 1 capital before deductions, as reported in item 23, that the institution
has. For example, if an institution does not have any additional tier 1 capital before deductions
(i.e., the institution reports $0 in item 23), then the entire deduction amount will be from common
equity tier 1 capital. In this case, include the deduction amount that applies to additional tier 1
capital in item 24 and also include it in item 17, “LESS: Deductions applied to common equity
tier 1 capital due to insufficient amounts of additional tier 1 capital and tier 2 capital to cover
deductions.”

AOCI-related adjustments. Institutions that entered “1” for Yes in Schedule RC-R, Part I,
item 3.a, must complete Schedule RC-R, Part I, items 9.a through 9.e, only. Institutions that
entered “0” for No in Schedule RC-R, Part I, item 3.a, must complete Schedule RC-R, Part I,
item 9.f, only.

9.a

LESS: Net unrealized gains (losses) on available-for-sale securities.

For institutions that have not adopted ASU 2016-01, which includes provisions governing the
accounting for investments in equity securities, including investment in mutual funds, and
eliminates the concept of available-for-sale equity securities (see the Note preceding the
instructions for Schedule RC, item 2.c), rReport the amount of net unrealized gains (losses)
on available-for-sale debt and equity securities, net of applicable income taxes, that is
included in Schedule RC, item 26.b, “Accumulated other comprehensive income.” If the
amount is a net gain, report it as a positive value in this item. If the amount is a net loss,
report it as a negative value in this item.

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Part I. (cont.)
Item No.
9.a
(cont.)

Caption and Instructions
For such institutions, Iinclude in this item net unrealized gains (losses) on available-for-sale
debt and equity securities reported in
Schedule RC-B, items 1 through 7, columns C and D, and on those assets not reported
in Schedule RC-B, that the bank accounts for like available-for-sale debt securities in
accordance with applicable accounting standards (e.g., negotiable certificates of deposit
and nonrated industrial development obligations).

For institutions that have adopted ASU 2016-01, report the amount of net unrealized gains
(losses) on available-for-sale debt securities, net of applicable income taxes, that is included
in Schedule RC, item 26.b, “Accumulated other comprehensive income.” If the amount is a
net gain, report it as a positive value in this item. If the amount is a net loss, report it as a
negative value in this item.

For such institutions, include in this item net unrealized gains (losses) on available-for-sale
debt securities reported in Schedule RC-B, items 1 through 6, columns C and D, and on
those assets not reported in Schedule RC-B, that the bank accounts for like available-for-sale
debt securities in accordance with applicable accounting standards (e.g., negotiable
certificates of deposit and nonrated industrial development obligations).
NOTE: Item 9.b is to be completed only by institutions that have not adopted FASB Accounting
Standards Update No. 2016-01 (ASU 2016-01), which includes provisions governing the accounting for
investments in equity securities, including investment in mutual funds, and eliminates the concept of
available-for-sale equity securities (see the Note preceding the instructions for Schedule RC, item 2.c).
Institutions that have adopted ASU 2016-01 should leave item 9.b blank.

LESS: Net unrealized loss on available-for-sale preferred stock classified as an equity
security under GAAP and available-for-sale equity exposures. Report as a positive
value the amount of any net unrealized loss on available-for-sale preferred stock classified as
an equity security under GAAP and available-for-sale equity exposures, net of applicable
income taxes, that is included in Schedule RC, item 26.b, “Accumulated other comprehensive
income.” Available-for-sale preferred stock classified as an equity security under GAAP and
available-for-sale equity exposures are reported in Schedule RC-B, item 7, columns C and D,
and include investments in mutual funds.

9.b

LESS: Accumulated net gains (losses) on cash flow hedges. Report the amount of
accumulated net gains (losses) on cash flow hedges, net of applicable income taxes, that is
included in Schedule RC, item 26.b, “Accumulated other comprehensive income.” The
amount reported in item 9.c should include gains (losses) on cash flow hedges that are no
longer effective but included in AOCI. If the amount is a net gain, report it as a positive value
in this item. If the amount is a net loss, report it as a negative value in this item.

9.c

9.d

FFIEC 051

LESS: Amounts recorded in AOCI attributed to defined benefit postretirement plans
resulting from the initial and subsequent application of the relevant GAAP standards
that pertain to such plans. Report the amounts recorded in AOCI, net of applicable income
taxes, and included in Schedule RC, item 26.b, “Accumulated other comprehensive income,”
resulting from the initial and subsequent application of ASC Subtopic 715-20 (formerly FASB
Statement No. 158, “Employers’ Accounting for Defined Benefit Pension and Other
Postretirement Plans”) to defined benefit postretirement plans (an institution may exclude the
portion relating to pension assets deducted in Schedule RC-R, Part I, item 10.b). If the
amount is a net gain, report it as a positive value in this item. If the amount is a net loss,
report it as a negative value in this item.

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Part I. (cont.)
Item No.

Caption and Instructions

NOTE: Item 31 is to be completed only by institutions that have not adopted FASB Accounting Standards
Update No. 2016-01 (ASU 2016-01), which includes provisions governing the accounting for investments
in equity securities, including investment in mutual funds, and eliminates the concept of available-for-sale
equity securities (see the Note preceding the instructions for Schedule RC, item 2.c).
Institutions that have adopted ASU 2016-01 should leave item 31 blank.
31

Unrealized gains on available-for-sale preferred stock classified as an equity security
under GAAP and available-for-sale equity exposures includable in tier 2 capital.

(i) Institutions that entered “1” for “Yes" in Schedule RC-R, Part I, item 3.a:

Report the pretax net unrealized holding gain (i.e., the excess of fair value as reported in
Schedule RC-B, item 7, column D, over historical cost as reported in Schedule RC-B, item 7,
column C), if any, on available-for-sale preferred stock classified as an equity security under
GAAP and available-for-sale equity exposures includable in tier 2 capital, subject to the limit
in section 20(d) of the regulatory capital rules. The amount to be reported in this item equals
45 percent of the institution’s pretax net unrealized gains on available-for-sale preferred stock
classified as an equity security under GAAP and available-for-sale equity exposures.
(ii) Institutions that entered “0” for “No” in Schedule RC-R, Part I, item 3.a:
Transition provisions for phasing out unrealized gains on available-for-sale preferred
stock classified as an equity security under GAAP and available-for-sale equity
exposures:

(1) Determine the amount of net unrealized gains on available-for-sale preferred stock
classified as an equity security under GAAP and available-for-sale equity exposures that
an institution currently includes in tier 2 capital.
(2) Multiply (1) by the percentage in Table 8 and include this amount in tier 2 capital.
Table 8 – Percentage of unrealized gains on available-for-sale preferred stock
classified as an equity security under GAAP and available-for-sale equity
exposures that may be included in tier 2 capital

Transition period

Calendar year 2017
Calendar year 2018 and
thereafter

Percentage of unrealized gains on available-for-sale
preferred stock classified as an equity security under
GAAP and available-for-sale equity exposures that
may be included in tier 2 capital
9
0

For example, during calendar year 2017, include up to 9 percent of net unrealized gains on
available-for-sale preferred stock classified as an equity security under GAAP and availablefor-sale equity exposures in tier 2 capital. During calendar year 2018 (and thereafter), this
percentage goes down to zero.

FFIEC 051

Tier 2 capital before deductions. Report the sum of Schedule RC-R, Part I, items 27
through 31.

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Part II. (cont.)
Item No.

Caption and Instructions

○ Any securities reported as “structured financial products” in Schedule RC-B, item 5.b,

2.a
(cont.)

•

For HTM securities that are directly and unconditionally guaranteed by foreign central
governments or are exposures to foreign banks that do not qualify as securitization
exposures and must be risk-weighted according to the Country Risk Classification (CRC)
methodology, assign these exposures to risk-weight categories based on the CRC
methodology described in the General Instructions for Schedule RC-R, Part II, and the
instructions for Schedule RC-R, Part, II, item 2.a, in the instructions for the FFIEC 031
and FFIEC 041 Call Reports.

Available-for-sale debt securities and equity securities with readily determinable fair
values not held for trading. For institutions that have not adopted ASU 2016-01, which
includes provisions governing the accounting for investments in equity securities, including
investments in mutual funds, and eliminates the concept of available-for-sale (AFS) equity
securities (see the Note preceding the instructions for Schedule RC, item 2.c), Rreport in
column A the fair value of available-for-sale (AFS) debt and equity securities reported in
Schedule RC, item 2.b, excluding those AFS securities that qualify as securitization
exposures as defined in §.2 of the regulatory capital rules. The fair value of those AFS
securities reported in Schedule RC, item 2.b, that qualify as securitization exposures must be
reported in Schedule RC-R, Part II, item 9.b, column A. The sum of Schedule RC-R, Part II,
items 2.b and 9.b, column A, must equal Schedule RC, item 2.b.

2.b

In column J–150% risk weight, include the exposure amounts of securities reported in
Schedule RC-B, column A, that are past due 90 days or more or in nonaccrual status
(except sovereign exposures), excluding those portions that are covered by qualifying
collateral or eligible guarantees as described in §.37 and §.36, respectively, of the
regulatory capital rules.

•

that are not securitization exposures and qualify for the 100 percent risk weight.
Note: Many of the structured financial products would be considered securitization
exposures and must be reported in Schedule RC-R, Part II, item 9.a, for purposes of
calculating risk-weighted assets.
The portion of any exposure reported in Schedule RC, item 2.a, that is secured by
collateral or has a guarantee that qualifies for the 100 percent risk weight.
Also include all other HTM securities that do not qualify as securitization exposures
reported in Schedule RC, item 2.a, that are not included in columns C through H
and J.

For institutions that have adopted ASU 2016-01, report in column A the sum of:
(1) The fair value of AFS debt securities reported in Schedule RC, item 2.b; and
(2) The fair value of equity securities with readily determinable fair values not held for trading
reported in Schedule RC, item 2.c;
excluding those debt and equity securities that qualify as securitization exposures as defined
in §.2 of the regulatory capital rules.

Exposure amount to be used for purposes of risk weighting by a bank that has not made the
Accumulated Other Comprehensive Income (AOCI) opt-out election in Schedule RC-R,
Part I, item 3.a:
For a security classified as AFSreported in Schedule RC-R, Part II, item 2.b, column A, where
the bank has not made the AOCI opt-out election (i.e., most AOCI is included in regulatory
capital), the exposure amount to be risk weighted by the bank is:
• For a debt security: the carrying value, which is the value of the asset reported on the
balance sheet of the bank determined in accordance with GAAP (i.e., the fair value of the
AFS debt security) and in column A.

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For equity securities and preferred stock classified as an equity under GAAP: the
11
adjusted carrying value.

•

Adjusted carrying value applies only to equity exposures and is defined in §.51 of the regulatory capital rules. In
general, it includes an on-balance sheet amount as well as application of conversion factors to determine on-balance
sheet equivalents of any off-balance sheet commitments to acquire equity exposures. For institutions that have not
made the AOCI opt-out election, the on-balance sheet component is equal to the carrying value. For institutions that
have made the AOCI opt-out election, the on-balance sheet component is the carrying value less any net unrealized
gains that are reflected in the carrying value but excluded from regulatory capital. Refer to §.51 for the precise
definition.
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Part II. (cont.)
Caption and Instructions

2.b
(cont.)

Exposure amount to be used for purposes of risk weighting by a bank that has made the
AOCI opt-out election in Schedule RC-R, Part I, item 3.a:
• For institutions that have not adopted ASU 2016-01, Ffor a security classified as AFS
where the bank has made the AOCI opt-out election (i.e., most AOCI is not included in
regulatory capital), the exposure amount to be risk weighted by the bank is:
o For a debt security: the carrying value, less any unrealized gain on the exposure or
plus any unrealized loss on the exposure included in AOCI.
o For equity securities and preferred stock classified as an equity under GAAP:
the carrying value less any net unrealized gains that are reflected in such carrying
value but are excluded from the bank’s regulatory capital components.
• For institutions that have adopted ASU 2016-01, for a security reported in Schedule
RC-R, Part II, item 2.b, column A, where the bank has made the AOCI opt-out election
(i.e., most AOCI is not included in regulatory capital), the exposure amount to be risk
weighted by the bank is:
o For a debt security: the carrying value, less any unrealized gain on the exposure or
plus any unrealized loss on the exposure included in AOCI.
o For equity securities and preferred stock classified as an equity under GAAP
11a
with readily determinable fair values: the adjusted carrying value.
•

In column B, a bank that has made the AOCI opt-out election should include the
difference between the fair value and amortized cost of those AFS debt securities that do
not qualify as securitization exposures. This difference equals the amounts reported in
Schedule RC-B, items 1 through 6, column D, minus items 1 through 6, column C, for
those AFS debt securities included in these items that are not securitization exposures.
o When fair value exceeds cost, report the difference as a positive number in
Schedule RC-R, Part II, item 2.b, column B.
o When cost exceeds fair value, report the difference as a negative number (i.e., with a
minus (-) sign) in Schedule RC-R, Part II, item 2.b, column B.
In column B, for a bank that has made the AOCI opt-out election and has not adopted
ASU 2016-01:
o If AFS equity securities with readily determinable fair values have a net unrealized
gain (i.e., Schedule RC-B, item 7, column D, exceeds item 7, column C), the portion
of the net unrealized gain (55 percent) not included in Tier 2 capital should be
included in Schedule RC-R, Part II, item 2.b, column B. The portion that is not
included in Tier 2 capital equals Schedule RC-B, item 7, column D minus column C,
minus Schedule RC-R, Part I, item 31.

•

Item No.

Example: A bank reports an AFS debt security that is not a securitization exposure on its
balance sheet in Schedule RC, item 2.b, at a carrying value (i.e., fair value) of $105. The
amortized cost of the debt security is $100. The bank has made the AOCI opt-out
election in Schedule RC-R, Part I, item 3.a. The AFS debt security has a $5 unrealized
gain that is included in AOCI. In Schedule RC-R, Part II, item 2.b, the bank would report
in Schedule RC-R, Part II, item 2.b:
a. $105 in column A. This is the carrying value of the AFS debt security on the bank’s
balance sheet.

11a

Adjusted carrying value applies only to equity exposures and is defined in §.51 of the regulatory capital rules. In
general, it includes an on-balance sheet amount as well as application of conversion factors to determine on-balance
sheet equivalents of any off-balance sheet commitments to acquire equity exposures. For institutions that have made
the AOCI opt-out election, the adjusted carrying value of an on-balance sheet equity exposure, such as an equity
security with a readily determinable fair value not held for trading, is equal to the carrying value of the equity
exposure, i.e., the value of the asset on the balance sheet determined in accordance with U.S. GAAP. Refer to §.51
for the precise definition.

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b. $5 in column B. This is the difference between the carrying value (i.e., fair value) of
the debt security and its exposure amount that is subject to risk weighting. For a
bank that has made the AOCI opt-out election, column B will typically represent the
amount of the unrealized gain or unrealized loss on the security. Gains are reported
as positive numbers; losses as negative numbers. (Note: If the bank has not made
or cannot make the opt-out election, there will be no adjustment to be reported in
column B.)
c. $100 is the exposure amount subject to risk weighting. This amount will be reported
under the appropriate risk weight associated with the exposure (columns C through
J). For a bank that has made the opt-out election, the exposure amount typically will
be the carrying value (i.e., fair value) of the debt security excluding any unrealized
gain or loss.
In column B, for a bank that has made the AOCI opt-out election and has adopted
ASU 2016-01, no amount should be included for equity securities and preferred stock
classified as an equity under GAAP with readily determinable fair values that are reported
in Schedule RC-R, Part II, item 2.b, column A.

•

In column B, include the amount of:
o Non-significant investments in the capital of unconsolidated financial institutions that
are reported in Schedule RC, item 2.b (for a bank that has not adopted ASU
2016-01) or item 2.c (for a bank that has adopted ASU 2016-01), and have been
deducted from capital in Schedule RC-R, Part I, item 11, item 24, and item 33.

•

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Part II. (cont.)
Item No.

Caption and Instructions
○

2.b
(cont.)

In column C–0% risk weight, the zero percent risk weight applies to exposures to the U.S.
government, a U.S. government agency, or a Federal Reserve Bank, and those
exposures otherwise unconditionally guaranteed by the U.S. government. Include
exposures to or unconditionally guaranteed by the FDIC or the NCUA. Certain foreign
government exposures and certain entities listed in §.32 of the regulatory capital rules
may also qualify for zero percent risk weight. Include the exposure amounts of those
debt securities reported in Schedule RC-B, column C, that do not qualify as securitization
exposures that qualify for the zero percent risk weight. Such debt securities may include
portions of, but may not be limited to:
○ Item 1, "U.S. Treasury securities,"
○ Item 2.a, Securities "Issued by U.S. Government agencies,"
o Item 4.a.(1), Residential mortgage pass-through securities "Guaranteed by GNMA,”
o Portions of item 4.b.(1), Other residential mortgage-backed securities (MBS) "Issued
or guaranteed by U.S. Government agencies or sponsored agencies," such as
GNMA exposures,
o Item 4.c.(1)(a), certain portions of commercial MBS “Issued or guaranteed by FNMA,
FHLMC, or GNMA” that represent GNMA securities, and
o Item 4.c.(2)(a), certain portions of commercial MBS “Issued or guaranteed by U.S.
Government agencies or sponsored agencies” that represent GNMA securities.
o The portion of any exposure reported in Schedule RC, item 2.b, that is secured by
collateral or has a guarantee that qualifies for the zero percent risk weight.

•

Significant investments in the capital of unconsolidated financial institutions not in the
form of common stock that are reported in Schedule RC, item 2.b (for a bank that has
not adopted ASU 2016-01) or item 2.c (for a bank that has adopted ASU 2016-01),
and have been deducted from capital in Schedule RC-R, Part I, item 24 and item 33.
Significant investments in the capital of unconsolidated financial institutions in the
form of common stock reported in Schedule RC, item 2.b (for a bank that has not
adopted ASU 2016-01) or item 2.c (for a bank that has adopted ASU 2016-01), that
are subject to the 10 percent and 15 percent common equity tier 1 capital
threshold limitations and have been deducted for risk-based capital purposes in
Schedule RC-R, Part I, items 13 and 16.

In column G–20% risk weight, the 20 percent risk weight applies to general obligations of
U.S. states, municipalities, and U.S. public sector entities. It also applies to exposures to
U.S. depository institutions and credit unions, exposures conditionally guaranteed by the
U.S. government, as well as exposures to U.S. government sponsored enterprises.
Certain foreign government and foreign bank exposures may qualify for the 20 percent
risk weight as indicated in §.32 of the regulatory capital rules. Include the exposure
amounts of those debt securities reported in Schedule RC-B, column C, that do not
qualify as securitization exposures that qualify for the 20 percent risk weight. Such debt
securities may include portions of, but may not be limited to:
o Item 2.b, Securities "Issued by U.S. Government-sponsored agencies” (exclude
interest-only securities),
o Item 3, "Securities issued by states and political subdivisions in the U.S." that
represent general obligation securities,
o Item 4.a.(2), Residential mortgage pass-through securities "Issued by FNMA and
FHLMC" (exclude interest-only securities),
o Item 4.b.(1), Other residential MBS "Issued or guaranteed by U.S. Government
agencies or sponsored agencies," (exclude interest-only securities)
o Item 4.c.(1)(a), those commercial MBS “Issued or guaranteed by FNMA, FHLMC, or
GNMA” that represent FHLMC and FNMA securities (exclude interest-only
securities),

•

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Part II. (cont.)
Caption and Instructions
○

2.b
(cont.)

In column H–50% risk weight, include the exposure amounts of those debt securities
reported in Schedule RC-B, column C, that do not qualify as securitization exposures that
qualify for the 50 percent risk weight. Such debt securities may include portions of, but
may not be limited to:
o Item 3, "Securities issued by states and political subdivisions in the U.S.," that
represent revenue obligation securities,
○ Item 4.a.(3), "Other [residential mortgage] pass-through securities," (that represent
residential mortgage exposures that qualify for the 50 percent risk weight. (Passthrough securities that do not qualify for the 50 percent risk weight should be
assigned to the 100 percent risk weight category.)
o Item 4.b.(2), Other residential MBS "Collateralized by MBS issued or guaranteed by
U.S. Government agencies or sponsored agencies" (exclude portions subject to an
FDIC loss-sharing agreement and interest-only securities) that represent residential
mortgage exposures that qualify for the 50 percent risk weight, and
o Item 4.b.(3), “All other residential MBS.” Include only those MBS that qualify for the
50 percent risk weight. Refer to §.32(g), (h) and (i) of the regulatory capital rules.
Note: Do not include MBS that are tranched for credit risk; those should be reported
as securitization exposures in Schedule RC-R, Part II, item 9.b. Do not include
interest-only securities.
o The portion of any exposure reported in Schedule RC, item 2.b, that is secured by
collateral or has a guarantee that qualifies for the 50 percent risk weight.

•

Item 4.c.(2)(a), those commercial MBS “Issued or guaranteed by U.S. Government
agencies or sponsored agencies” that represent FHLMC and FNMA securities
(exclude interest-only securities),
Item 4.b.(2), Other residential MBS "Collateralized by MBS issued or guaranteed by
U.S. Government agencies or sponsored agencies" (exclude interest-only securities),
and
Any securities categorized as “structured financial products” on Schedule RC-B that
are not securitization exposures and qualify for the 20 percent risk weight. Note:
Many of the structured financial products would be considered securitization
exposures and must be reported in Schedule RC-R, Part II, item 9.b, for purposes of
calculating risk-weighted assets. Exclude interest-only securities.
The portion of any exposure reported in Schedule RC, item 2.b, that is secured by
collateral or has a guarantee that qualifies for the 20 percent risk weight.

Item No.

In column I–100% risk weight, include the exposure amounts of those debt securities
reported in Schedule RC-B, column C, that do not qualify as securitization exposures that
qualify for the 100 percent risk weight. Such debt securities may include portions of, but
may not be limited to:
o Item 4.a.(3), "Other [residential mortgage] pass-through securities," that represent
residential mortgage exposures that qualify for the 100 percent risk weight,
o Item 4.b.(2), Other residential MBS "Collateralized by MBS issued or guaranteed by
U.S. Government agencies or sponsored agencies" (excluding portions subject to an
FDIC loss-sharing agreement) that represent residential mortgage exposures that
qualify for the 100 percent risk weight,
o Item 4.b.(3), "All other residential MBS." Include only those MBS that qualify for the
100 percent risk weight. Refer to §.32(g), (h) and (i) of the regulatory capital rules.
Note: Do not include MBS portions that are tranched for credit risk; those should be
reported as securitization exposures in Schedule RC-R, Part II, item 9.b.
o Item 4.c.(1)(b), “Other [commercial mortgage] pass-through securities,”
o Item 4.c.(2)(b), “All other commercial MBS,”
o Item 5.a, "Asset-backed securities,"

•

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Part II. (cont.)
Item No.

Caption and Instructions
○

Any securities reported as “structured financial products” in Schedule RC-B, item 5.b,
that are not securitization exposures and qualify for the 100 percent risk weight.
Note: Many of the structured financial products would be considered securitization
exposures and must be reported in Schedule RC-R, Part II, item 9.b, for purposes of
calculating risk-weighted assets.
o The portion of any exposure reported in Schedule RC, item 2.b, that is secured by
collateral or has a guarantee that qualifies for the 100 percent risk weight.
o All other AFS debt securities that do not qualify as securitization exposures reported
in Schedule RC, item 2.b, that are not included in columns C through H, J through N,
or R.
Also include in column I–100% risk weight the exposure amounts of Ppublicly traded AFS
equity exposures with readily determinable fair values and AFS equity exposures to
investment funds with readily determinable fair values (including mutual funds) reported
in Schedule RC, item 2.b (for a bank that has not adopted ASU 2016-01) or item 2.c (for
a bank that has adopted ASU 2016-01), to the extent that the aggregate carrying value of
the bank’s equity exposures does not exceed 10 percent of total capital. If the bank’s
aggregate carrying value of equity exposures is greater than 10 percent of total capital,
the bank must report the exposure amount of its AFS equity exposures to investments
funds with readily determinable fair values (including mutual funds) in column R (and the
risk-weighted asset amount of such AFS equity exposures in column S) and the exposure
amount of its other AFS equity exposures with readily determinable fair values in either
columns L or N, as appropriate.
In addition, include in column I–100% risk weight the portion of Schedule RC, item 2.b
(for a bank that has not adopted ASU 2016-01) or item 2.c (for a bank that has adopted
ASU 2016-01), that represents the adjusted carrying value of exposures that are
significant investments in the common stock of unconsolidated financial institutions that
are not deducted from capital. For further information on the treatment of equity
exposures, refer to §.51 to §.53 of the regulatory capital rules.
Also include all other AFS securities that do not qualify as securitization exposures
reported in Schedule RC, item 2.b, that are not included in columns C through H, J
through N, or R.

2.b
(cont.)

In column J–150% risk weight, include the exposure amounts of securities reported in
Schedule RC-B, column C, that are past due 90 days or more or in nonaccrual status
(except sovereign exposures), excluding those portions that are covered by qualifying
collateral or eligible guarantees as described in §.37 and §.36, respectively, of the
regulatory capital rules.

•

In column K–250% risk weight, include the portion that does not qualify as a
securitization exposure of Schedule RC, item 2.b, that represents the adjusted carrying
value of exposures that are significant investments in the common stock of
unconsolidated financial institutions that are not deducted from capital. For further
information on the treatment of equity exposures, refer to §.51 to §.53 of the regulatory
capital rules. This risk weight takes effect in 2018, and therefore this item is blocked from
being completed until that time. Before 2018, report such significant investments in the
100 percent risk weight category.

•

In column L–300% risk weight,
o For a bank that has not adopted ASU 2016-01, for publicly traded AFS equity
securities with readily determinable fair values reported in Schedule RC-B, item 7
(except equity securities to investment firms), include the fair value of these equity
securities (as reported in Schedule RC-B, item 7, column D) if they have a net
unrealized loss. If these equity securities have a net unrealized gain, include their
adjusted carrying value (as reported in Schedule RC-B, item 7, column C) plus the

•

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portion of the unrealized gain (up to 45 percent) included in tier 2 capital (as reported
in Schedule RC-R, Part I, item 31).
For a bank that has adopted ASU 2016-01, for publicly traded equity securities with
readily determinable fair values reported in Schedule RC, item 2.c (except equity
securities to investment firms), include the fair value of these equity securities as
reported in Schedule RC, item 2.c.

In column N–600% risk weight,
o For a bank that has not adopted ASU 2016-01, for AFS equity securities to
investment firms with readily determinable fair values reported in Schedule RC-B,
item 7, include the fair value of these equity securities (as reported in Schedule RCB, item 7, column D) if they have a net unrealized loss. If these equity securities
have a net unrealized gain, include their adjusted carrying value (as reported in
Schedule RC-B, item 7, column C) plus the portion of the unrealized gain (up to 45
percent) included in tier 2 capital (as reported in Schedule RC-R, Part I, item 31).
o For a bank that has adopted ASU 2016-01, for equity securities to investment firms
with readily determinable fair values reported in Schedule RC, item 2.c, include the
fair value of these equity securities as reported in Schedule RC, item 2.c.

•

In columns R and S—Application of Other Risk-Weighting Approaches, include the
bank’s AFS equity exposures to investment funds with readily determinable fair values
(including mutual funds) reported in Schedule RC, item 2.b (for a bank that has not
adopted ASU 2016-01) or item 2.c (for a bank that has adopted ASU 2016-01), if the

•

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Part II. (cont.)
Item No.

Caption and Instructions

2.b
(cont.)

aggregate carrying value of the bank’s equity exposures is greater than 10 percent of
total capital. Report in column R the exposure amount of these equity exposures to
investment funds. Report in column S the risk-weighted asset amount of these equity
exposures to investment funds as measured under the full look-through approach, the
simple modified look-through approach, or the alternative modified look-through approach
described in §.53 of the regulatory capital rules. All three of these approaches require a
minimum risk weight of 20 percent. For further information, refer to the discussion of
“Treatment of Equity Exposures” in the General Instructions for Schedule RC-R, Part II.
For AFSavailable-for-sale debt securities and equity securities with readily determinable
fair values not held for trading that are directly and unconditionally guaranteed by foreign
central governments or are exposures to foreign banks that do not qualify as
securitization exposures and must be risk-weighted according to the Country Risk
Classification (CRC) methodology, assign these exposures to risk-weight categories
based on the CRC methodology described in the General Instructions for Schedule
RC-R, Part II, and the instructions for Schedule RC-R, Part, II, item 2.b, in the instructions
for the FFIEC 031 and FFIEC 041 Call Reports.

3
3.a

•

Federal funds sold and securities purchased under agreements to resell:
Federal funds sold (in domestic offices). Report in column A the amount of federal funds
sold reported in Schedule RC, item 3.a, excluding those federal funds sold that qualify as
securitization exposures as defined in §.2 of the regulatory capital rules. The amount of
those federal funds sold reported in Schedule RC, items 3.a, that qualify as securitization
exposures are to be reported in Schedule RC-R, Part II, item 9.d, column A.

•

In column C–0% risk weight, include the portion of Schedule RC, item 3.a, that is directly
and unconditionally guaranteed by U.S. Government agencies. Also include the portion
of any exposure reported in Schedule RC, item 3.a, that is secured by collateral or has a
guarantee that qualifies for the zero percent risk weight.

In column H – 50% risk weight, include any exposure reported in Schedule RC, item 3.a,
that is secured by collateral or has a guarantee that qualifies for the 50 percent risk
weight.

•

In column G–20% risk weight, include exposures to U.S. depository institution
counterparties. Also include the portion of any exposure reported in Schedule RC,
item 3.a, that is secured by collateral or has a guarantee that qualifies for the 20 percent
risk weight.

FFIEC 051

•

In column I–100% risk weight, include exposures to non-depository institution
counterparties that lack qualifying collateral (refer to the regulatory capital rules for
specific criteria). Also include the amount of federal funds sold reported in Schedule RC,
item 3.a, that are not included in columns C through H and J. Also include the portion of
any exposure reported in Schedule RC, item 3.a, that is secured by collateral or has a
guarantee that qualifies for the 100 percent risk weight.

•

For federal funds sold that that are directly and unconditionally guaranteed by foreign
central governments or exposures to foreign banks and must be risk weighted according
to the Country Risk Classification (CRC) methodology, assign these exposures to riskweight categories based on the CRC methodology described in the General Instructions
for Schedule RC-R, Part II, in the instructions for the FFIEC 031 and FFIEC 041
Call Reports.

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T
AF

Draft Revisions to the Call Report Instructions
for Burden-Reducing Revisions to the
FFIEC 051 Call Report
Proposed to Take Effect June 30, 2018

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T
AF

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FFIEC 051

GENERAL INSTRUCTIONS

GENERAL INSTRUCTIONS
Schedules RC and RC-A through RC-T constitute the FFIEC 051 version of the Consolidated Report of
Condition and its supporting schedules. Schedules RI and RI-A through RI-E constitute the Consolidated
Report of Income and its supporting schedules. Schedule SU – Supplemental Information collects
additional information in the FFIEC 051 on certain complex or specialized activities in which an institution
may engage. The Consolidated Reports of Condition and Income are commonly referred to as the
Call Report. For purposes of these General Instructions, the Financial Accounting Standards Board
(FASB) Accounting Standards Codification is referred to as the “ASC.”

WHO MUST REPORT ON WHAT FORMS

Unless the context indicates otherwise, the term “bank” in the Call Report instructions refers to both banks
and savings associations.

Every national bank, state member bank, insured state nonmember bank, and savings association is
required to file a consolidated Call Report normally as of the close of business on the last calendar day of
each calendar quarter, i.e., the report date. The specific reporting requirements depend upon the size of
the bank and whether it has any "foreign" offices. Banks must file the appropriate forms as described
below:
(1) BANKS WITH FOREIGN OFFICES: Banks of any size that have any "foreign" offices (as defined
below) must file quarterly the Consolidated Reports of Condition and Income for a Bank with
Domestic and Foreign Offices (FFIEC 031). For purposes of these reports, all of the following
constitute "foreign" offices:
(a) An International Banking Facility (IBF);
(b) A branch or consolidated subsidiary in a foreign country; and
(c) A majority-owned Edge or Agreement subsidiary.

In addition, for banks chartered and headquartered in the 50 states of the United States and the
District of Columbia, a branch or consolidated subsidiary in Puerto Rico or a U.S. territory or
possession is a “foreign” office. However, for purposes of these reports, a branch at a U.S. military
facility located in a foreign country is a "domestic" office.

(2) BANKS WITHOUT FOREIGN OFFICES: Banks that have domestic offices only must file quarterly
either:

(a) The Consolidated Reports of Condition and Income for a Bank with Domestic and Foreign Offices
(FFIEC 031) if the bank has total consolidated assets of $100 billion or more;
(b) The Consolidated Reports of Condition and Income for a Bank with Domestic Offices Only
(FFIEC 041) if the bank has total consolidated assets less than $100 billion; or
(bc) The Consolidated Reports of Condition and Income for a Bank with Domestic Offices Only and
Total Assets Less than $1 Billion (FFIEC 051),
as appropriate to the reporting institution. An institution eligible to file the FFIEC 051 report (as
discussed below) may choose instead to file the FFIEC 041 report.

For banks chartered and headquartered in Puerto Rico or a U.S. territory or possession, a branch or
consolidated subsidiary in one of the 50 states of the United States, the District of Columbia, Puerto Rico,
or a U.S. territory or possession is a "domestic" office.

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RI - INCOME STATEMENT

General Instructions (cont.)

or liability was first recognized on the balance sheet. Although the use of the contractual interest rate is an
acceptable method under GAAP, when a financial asset or liability has a significant premium or discount
upon initial recognition, the measurement of interest income or interest expense under the effective yield
method more accurately portrays the economic substance of the transaction. In addition, in some cases,
GAAP requires a particular method of interest income recognition when the fair value option is elected.
For example, when the fair value option has been applied to a beneficial interest in securitized financial
assets within the scope of ASC Subtopic 325-40, Investments-Other – Beneficial Interests in Securitized
Financial Assets (formerly Emerging Issues Task Force Issue No. 99-20, “Recognition of Interest Income
and Impairment on Purchased and Retained Beneficial Interests in Securitized Financial Assets”), interest
income should be measured in accordance with this Subtopic. Similarly, when the fair value option has
been applied to a purchased impaired loan or debt security accounted for under 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”),
interest income on the loan or debt security should be measured in accordance with this Subtopic when
accrual of income is appropriate. For further information, see the Glossary entry for “Purchased Impaired
Loans and Debt Securities.”

Revaluation adjustments, excluding amounts reported as interest income and interest expense, to the
carrying value of all assets and liabilities reported in Schedule RC at fair value under a fair value option
(excluding servicing assets and liabilities reported in Schedule RC, item 10.b, “IOther intangible assets,”
and Schedule RC, item 20, “Other liabilities,” respectively, and assets and liabilities reported in
Schedule RC, item 5, "Trading assets," and Schedule RC, item 15, "Trading liabilities," respectively)
resulting from the periodic marking of such assets and liabilities to fair value should be reported as “Other
noninterest income” in Schedule RI, item 5.l.

Item Instructions
Item No.

Interest income:

Caption and Instructions

1.a

Interest and fee income on loans. Report in the appropriate subitem all interest, fees, and
similar charges levied against or associated with all assets reportable as loans in
Schedule RC-C, Part I, items 1 through 9.

Deduct interest rebated to customers on loans paid before maturity from gross interest earned
on loans; do not report as an expense.
Include as interest and fee income on loans:
(1) Interest on all assets reportable as loans extended directly, purchased from others, sold
under agreements to repurchase, or pledged as collateral for any purpose.
(2) Loan origination fees, direct loan origination costs, and purchase premiums and discounts
on loans held for investment, all of which should be deferred and recognized over the life
of the related loan as an adjustment of yield in accordance with ASC Subtopic 310-20,
Receivables – Nonrefundable Fees and Other Costs (formerly FASB Statement No. 91,
“Accounting for Nonrefundable Fees and Costs Associated with Originating or Acquiring
Loans and Initial Direct Costs of Leases”) as described in the Glossary entry for "loan
fees." See exclusion (3) below.

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Item No.

Caption and Instructions

5.b
(cont.)

(12) For the accumulation or disbursement of funds deposited to Individual Retirement
Accounts (IRAs), Keogh Plan accounts, Health Savings Accounts, Medical Savings
Accounts, and Coverdell Education Savings Accounts when not handled by the
institution's trust department. Report such commissions and fees received for accounts
handled by the institution's trust department in Schedule RI, item 5.a, "Income from
fiduciary activities."
(13) For wire transfer services provided to the institution’s depositors.

5.c

Fees and commissions from securities brokerage, investment banking, advisory, and
underwriting activities. Report fees and commissions from securities brokerage activities,
from the sale and servicing of mutual funds, from the purchase and sale of securities and
money market instruments where the bank is acting as agent for other banks or customers,
and from the lending of securities owned by the bank or by bank customers (if these fees and
commissions are not included in Schedule RI, item 5.a, “Income from fiduciary activities,” or
as trading revenue in item 5.l, “Other noninterest income”). However, exclude fees and
commissions from the sale of annuities (fixed, variable, and other) to bank customers by the
bank or any securities brokerage subsidiary (report such income in Schedule RI, item
5.d.(32), “Fees and commissions from annuity salesIncome from other insurance activities”).

5.d.(1)

Not applicable.

Exclude penalties paid by depositors for the early withdrawal of time deposits (report as
"Other noninterest income" in Schedule RI, item 5.l, or deduct from the interest expense of
the related category of time deposits, as appropriate).

Also include the bank’s proportionate share of the income or loss before discontinued
operations from its investments in equity method investees that are principally engaged in
securities brokerage activities. Equity method investees include unconsolidated subsidiaries;
associated companies; and corporate joint ventures, unincorporated joint ventures, general
partnerships, and limited partnerships over which the bank exercises significant influence.
5.d.(2)

Investment banking, advisory, and underwriting fees and commissions. Also Rreport
fees and commissions from underwriting (or participating in the underwriting of) securities,
private placements of securities, investment advisory and management services, merger and
acquisition services, and other related consulting fees. Include fees and commissions from
the placement of commercial paper, both for transactions issued in the bank's name and
transactions in which the bank acts as an agent for a third party issuer.

Also include the bank’s proportionate share of the income or loss before discontinued
operations from its investments in equity method investees that are principally engaged in
securities brokerage, investment banking, advisory, or securities underwriting activities.
Equity method investees include unconsolidated subsidiaries; associated companies; and
corporate joint ventures, unincorporated joint ventures, general partnerships, and limited
partnerships over which the bank exercises significant influence.

5.d.(32)

Fees and commissions from annuity salesIncome from insurance activities. Report
fees and commissions from sales of annuities (fixed, variable, and other) by the bank and any
subsidiary of the bank and fees earned from customer referrals for annuities to insurance
companies and insurance agencies external to the consolidated bank. Also include
management fees earned from annuities.

However, exclude fees and commissions from sales of annuities by the bank's trust
department (or by a consolidated trust company subsidiary) that are executed in a fiduciary
capacity (report in Schedule RI, item 5.a, "Income from fiduciary activities").
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Caption and Instructions

5.d.(32)
(cont.)

Also include the bank’s proportionate share of the income or loss before discontinued
operations from its investments in equity method investees that are principally engaged in
annuity sales. Equity method investees include unconsolidated subsidiaries; associated
companies; and corporate joint ventures, unincorporated joint ventures, general partnerships,
and limited partnerships over which the bank exercises significant influence.

5.d.(4)

Underwriting income from insurance and reinsurance activities. Also Rreport the
amount of premiums earned by bank subsidiaries engaged in insurance underwriting or
reinsurance activities. Include earned premiums from (a) life and health insurance and (b)
property and casualty insurance, whether (direct) underwritten business or ceded or assumed
(reinsured) business. Insurance premiums should be reported net of any premiums
transferred to other insurance underwriters/reinsurers in conjunction with reinsurance
contracts.

Item No.

Report income from insurance product sales and referrals, including:

(1) Service charges, commissions, and fees earned from insurance sales, including credit,
life, health, property, casualty, and title insurance products.

(2) Fees earned from customer referrals for insurance products to insurance companies and
insurance agencies external to the consolidated bank.
Also include management fees earned from separate accounts and universal life products.
Also include the bank's proportionate share of the income or loss before discontinued
operations from its investments in equity method investees that are principally engaged in
annuity sales, insurance underwriting or reinsurance activities, or insurance product sales and
referrals. Equity method investees include unconsolidated subsidiaries; associated
companies; and corporate joint ventures, unincorporated joint ventures, general partnerships,
and limited partnerships over which the bank exercises significant influence.

Exclude income from sales and referrals involving insurance products and annuities (see the
instructions for Schedule RI, items 5.d.(5) and 5.d.(3), respectively, for information on
reporting such income).

5.d.(5)

Income from other insurance activities. Report income from insurance product sales and
referrals, including:

(1) Service charges, commissions, and fees earned from insurance sales, including credit,
life, health, property, casualty, and title insurance products.

Exclude income from annuity sales and referrals (see the instructions for Schedule RI,
item 5.d.(3), above, for information on reporting such income).
Also include the bank's proportionate share of the income or loss before discontinued
operations from its investments in equity method investees that are principally engaged in
insurance product sales and referrals. Equity method investees include unconsolidated
subsidiaries; associated companies; and corporate joint ventures, unincorporated joint
ventures, general partnerships, and limited partnerships over which the bank exercises
significant influence.

5.e
FFIEC 051

Not applicable.
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Item No.

RI - INCOME STATEMENT

Caption and Instructions
Net servicing fees. Report income from servicing real estate mortgages, credit cards, and
other financial assets held by others. Report any premiums received in lieu of regular
servicing fees on such loans only as earned over the life of the loans. For servicing assets
and liabilities measured under the amortization method, banks should report servicing income
net of the related servicing assets’ amortization expense, include impairments recognized on
servicing assets, and also include increases in servicing liabilities recognized when
subsequent events have increased the fair value of the liability above its carrying amount. For
servicing assets and liabilities remeasured at fair value under the fair value option, include
changes in the fair value of these servicing assets and liabilities. For further information on
servicing, see the Glossary entry for “servicing assets and liabilities.”

5.g

Not applicable. Net securitization income. Report net gains (losses) on assets sold in the
bank’s own securitization transactions, i.e., net of transaction costs. Include unrealized losses
(and recoveries of unrealized losses) on loans and leases held for sale in the bank’s own
securitization transactions. Report fee income from securitizations, securitization conduits,
and structured finance vehicles, including fees for providing administrative support, liquidity
support, interest rate risk management, credit enhancement support, and any additional
support functions as an administrative agent, liquidity agent, hedging agent, or credit
enhancement agent. Include all other fees (other than servicing fees and commercial paper
placement fees) earned from the bank's securitization and structured finance transactions.

5.f

Exclude income from servicing securitized assets (report in Schedule RI, item 5.f, above), fee
income from the placement of commercial paper (report in Schedule RI, item 5.d.(2), above),
and income from seller’s interests and residual interests retained by the bank (report in the
appropriate subitem of Schedule RI, item 1, “Interest income"). Also exclude net gains
(losses) on loans sold to – and unrealized losses (and recoveries of unrealized losses) on
loans and leases held for sale to – a government-sponsored agency or another institution that
in turn securitizes the loans (report in Schedule RI, item 5.i, “Net gains (losses) on sales of
loans and leases”).
Not applicable.

5.h

Net gains (losses) on sales of loans and leases. Report the amount of net gains (losses)
on sales and other disposals of loans and leases (reportable in Schedule RC-C), including in
the bank’s own securitization transactions, and unrealized losses (and subsequent recoveries
of such net unrealized losses) on loans and leases held for sale, including in the bank’s own
securitization transactions. Exclude net gains (losses) on loans and leases sold in the bank’s
own securitization transactions and unrealized losses (and recoveries of unrealized losses) on
loans and leases held for sale in the bank’s own securitization transactions (report these
gains (losses) in Schedule RI, item 5.g, “Net securitization income”).

5.i

5.j

FFIEC 051

Net gains (losses) on sales of other real estate owned. Report the amount of net gains
(losses) on sales and other disposals of other real estate owned (reportable in Schedule RC,
item 7), increases and decreases in the valuation allowance for foreclosed real estate, and
write-downs of other real estate owned subsequent to acquisition (or physical possession)
charged to expense. Do not include as a loss on other real estate owned any amount
charged to the allowance for loan and lease losses at the time of foreclosure (actual
or physical possession) for the difference between the carrying value of a loan and the
fair value less cost to sell of the foreclosed real estate.

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Item No.

RI - INCOME STATEMENT

Caption and Instructions
Net gains (losses) on sales of other assets. Report the amount of
net gains (losses) on sales and other disposals of assets not required to be reported
elsewhere in the income statement (Schedule RI). Include net gains (losses) on sales and
other disposals of premises and fixed assets; personal property acquired for debts previously
contracted (such as automobiles, boats, equipment, and appliances); and coins, art, and
other similar assets. Also include net gains (losses) on sales of, and other-than-temporary
impairment losses on, equity securities that do not have readily determinable fair values and
are not held for trading. Do not include net gains (losses) on sales and other disposals of
held-to-maturity securities, available-for-sale securities, loans and leases (either directly or
through securitization), trading assets, and other real estate owned (report these net gains
(losses) in the appropriate items of Schedule RI).

5.l

Other noninterest income. Report all operating income of the bank for the calendar year to
date not required to be reported elsewhere in Schedule RI.

5.k

Disclose in Schedule RI-E, items 1.a through 1.lj, each component of other noninterest
income, and the dollar amount of such component, that is greater than $100,000 and exceeds
37 percent of the other noninterest income reported in this item. If net losses have been
reported in this item for a component of “Other noninterest income,” use the absolute value of
such net losses to determine whether the amount of the net losses is greater than $100,000
and exceeds 37 percent of “Other noninterest income” and should be reported in
Schedule RI-E, item 1. (The absolute value refers to the magnitude of the dollar amount
without regard to whether the amount represents net gains or net losses.)
For each component of other noninterest income that exceeds the disclosure threshold in
the preceding paragraph and for which a preprinted caption has not been provided in
Schedule RI-E, items 1.a through 1.gi, describe the component with a clear but concise
caption in Schedule RI-E, items 1.hj through 1.lj. These descriptions should not exceed 50
characters in length (including spacing between words).

For disclosure purposes in Schedule RI-E, items 1.a through 1.ig, when components of “Other
noninterest income” reflect a single credit for separate “bundled services” provided through
third party vendors, disclose such amounts in the item with the preprinted caption that most
closely describes the predominant type of income earned, and this categorization should be
used consistently over time.
Include as other noninterest income:

(1) Service charges, commissions, and fees for such services as:
(a) The rental of safe deposit boxes. (Report the amount of such fees in Schedule RI-E,
item 1.e, if this amount is greater than $100,000 and exceeds 37 percent of the
amount reported in Schedule RI, item 5.l.)

(b) The safekeeping of securities for other depository institutions (if the income for such
safekeeping services is not included in Schedule RI, item 5.a, “Income from fiduciary
activities”).

(c) The sale of bank drafts, money orders, cashiers' checks, and travelers' checks.
(d) The collection of utility bills, checks, notes, bond coupons, and bills of exchange.

FFIEC 051

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Item No.
5.l
(cont.)

RI - INCOME STATEMENT

Caption and Instructions
(e) The redemption of U.S. savings bonds.
(f) The handling of food stamps.
(g) The execution of acceptances and the issuance of commercial letters of credit,
standby letters of credit, deferred payment letters of credit, and letters of credit issued
for cash or its equivalent. Exclude income on bankers acceptances and trade
acceptances (report such income in the appropriate subitem of Schedule RI, item 1.a,
"Interest and fee income on loans," or in Schedule RI, item 1.g, "Other interest
income," as appropriate).

(h) The notarizing of forms and documents.

(i) The negotiation or management of loans from other lenders for customers or
correspondents.

(j) The providing of consulting and advisory services to others. Exclude income from
investment advisory services, which is to be reported in Schedule RI, item 5.d.(12).

(k) The use of the bank's automated teller machines or remote service units by
depositors of other depository institutions. (Report the amount of such income and
fees in Schedule RI-E, item 1.c, if this amount is greater than $100,000 and exceeds
37 percent of the amount reported in Schedule RI, item 5.l.)

(l) Wire transfer services, except for wire transfers for which service charges or fees are
levied on deposit accounts of the institution’s depositors, for which the income is to be
reported in Schedule RI, item 5.b, “Service charges on deposit accounts.” (Report
the amount of income and fees from wire transfers in Schedule RI-E, item 1.gi, if this
amount is greater than $100,000 and exceeds 37 percent of the amount reported in
Schedule RI, item 5.l.)

(2) Income and fees from the sale and printing of checks. (Report the amount of such income
and fees in Schedule RI-E, item 1.a, if this amount is greater than $100,000 and exceeds
37 percent of the amount reported in Schedule RI, item 5.l.)

(3) Gross rentals and other income from all real estate reportable in Schedule RC, item 7,
"Other real estate owned." (Report the amount of such income in Schedule RI-E,
item 1.d, if this amount is greater than $100,000 and exceeds 37 percent of the amount
reported in Schedule RI, item 5.l.)
(4) Earnings on or other increases in the value of the cash surrender value of bank-owned
life insurance policies. (Report the amount of such earnings or other increases in
Schedule RI-E, item 1.b, if this amount is greater than $100,000 and exceeds 37 percent
of the amount reported in Schedule RI, item 5.l.)
(5) Annual or other periodic fees paid by holders of credit cards issued by the bank. Fees
that are periodically charged to cardholders shall be deferred and recognized on a
straight-line basis over the period the fee entitles the cardholder to use the card.

(6) Charges to merchants for the bank's handling of credit card or charge sales when the
bank does not carry the related loan accounts on its books. Banks may report this
income net of the expenses (except salaries) related to the handling of these credit card
or charge sales.
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Item No.

Caption and Instructions

5.l
(cont.)

(7) Interchange fees earned from bank card and credit card transactions. (Report the
amount of such fees in Schedule RI-E, item 1.gf, if this amount is greater than $100,000
and exceeds 37 percent of the amount reported in Schedule RI, item 5.l.)
(8) Gross income received for performing data processing services for others. Do not deduct
the expense of performing such services for others (report in the appropriate items of
noninterest expense).

(9) Loan commitment fees that are recognized during the commitment period (i.e., fees
retrospectively determined and fees for commitments where exercise is remote) or
included in income when the commitment expires and loan syndication fees that are not
required to be deferred. Refer to the Glossary entry for "loan fees" for further information.

(10) Trading revenue (which may be a net gain or loss) from cash instruments and derivative
contracts reportable in Schedule RC, item 5, "Trading assets," and Schedule RC,
item 15, "Trading liabilities," including gains (losses) from trading such instruments and
contracts, revaluation adjustments from the periodic marking to fair value of such
instruments and contracts, and incidental income and expense related to the purchase
and sale of such instruments and contracts.
(11) Net tellers' overages (shortages), net recoveries (losses) on forged checks, net
recoveries (losses) on payment of checks over stop payment orders, and similar
recurring operating gains (losses) of this type. Banks should consistently report these
gains (losses) either in this item or in Schedule RI, item 7.d.
(12) Net gains (losses) from the sale or other disposal of branches (i.e., where the reporting
bank sells a branch's assets to another depository institution, which assumes the
deposit liabilities of the branch). Banks should consistently report these net gains
(losses) either in this item or in Schedule RI, item 7.d.

(13) Net gains (losses) from all transactions involving foreign currency or foreign exchange
other than trading transactions. Banks should consistently report these net gains
(losses) either in this item or in Schedule RI, item 7.d.
(14) Rental fees applicable to operating leases for furniture and equipment rented to others.
(15) Interest received on tax refunds.

(16) Life insurance proceeds on policies for which the bank is the beneficiary.
(17) Credits resulting from litigation or other claims.

(18) Portions of penalties for early withdrawals of time deposits that exceed the interest
accrued or paid on the deposit to the date of withdrawal, if material. Penalties for
early withdrawals, or portions of such penalties, that represent the forfeiture of interest
accrued or paid to the date of withdrawal are a reduction of interest expense and should
be deducted from the gross interest expense of the appropriate category of
time deposits in Schedule RI, item 2.a, "Interest on deposits."

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Caption and Instructions

5.l
(cont.)

(19) Interest income from advances to, or obligations of, and the bank's proportionate
share of the income or loss before discontinued operations from its investments in:
• unconsolidated subsidiaries,
• associated companies,
• corporate joint ventures, unincorporated joint ventures, and general partnerships
over which the bank exercises significant influence, and
• noncontrolling investments in certain limited partnerships and limited liability
companies (described in the Glossary entry for “equity method of accounting”)
other than those that are principally engaged in (a) securities brokerage, investment
banking, advisory, brokerage, or securities underwriting activities or (b) ; insurance
and reinsurance underwriting activities; or insurance and annuity sales activities
(the income from which should be reported in Schedule RI, items 5.d.(1) and, 5.d.(2) ,
5.d.(3), 5.d.(4), and 5.d.(5), respectively). Exclude the bank's proportionate share of the
results of discontinued operations of these entities (report in Schedule RI, item 11,
"Discontinued operations, net of applicable income taxes").

Item No.

(20) Net gains (losses) on derivative instruments held for purposes other than trading that
are not designated as hedging instruments in hedging relationships that qualify for
hedge accounting in accordance with ASC Topic 815, Derivatives and Hedging
(formerly FASB Statement No. 133, “Accounting for Derivative Instruments and Hedging
Activities”). Institutions should consistently report these net gains (losses) either in this
item or in Schedule RI, item 7.d. For further information, see the Glossary entries for
“derivative contracts” and “trading account.”
(21) Gross income generated by securities contributed to charitable contribution Clifford
Trusts.
(22) Income from ground rents and air rights.

(23) Revaluation adjustments to the carrying value of all assets and liabilities reported in
Schedule RC at fair value under a fair value option (excluding servicing assets and
liabilities reported in Schedule RC, item 10.b, “Other iIntangible assets,” and
Schedule RC, item 20, “Other liabilities,” respectively, and assets and liabilities reported
in Schedule RC, item 5, "Trading assets," and Schedule RC, item 15, "Trading
liabilities," respectively) resulting from the periodic marking of such assets and liabilities
to fair value. Exclude interest income earned and interest expense incurred on financial
assets and liabilities reported at fair value under a fair value option, which should be
reported in the appropriate interest income or interest expense items on Schedule RI.
(Report the net change in the fair value of fair value option financial instruments in
Schedule RI-E, item 1.f, if this amount is greater than $100,000 and exceeds 3 percent
of the amount reported in Schedule RI, item 5.l.)
(24) Gains on bargain purchases recognized and measured in accordance with
ASC Topic 805, Business Combinations (formerly FASB Statement No. 141(R),
“Business Combinations”). (Report the amount of such gains in Schedule RI-E,
item 1.h, if this amount is greater than $100,000 and exceeds 3 percent of the amount
reported in Schedule RI, item 5.l.)
(25) Revenue from venture capital activities (which may be a net gain or loss), which
generally involves the providing of funds, whether in the form of loans or equity, and
technical and management assistance, when needed and requested, to start-up or
high-risk companies specializing in new technologies, ideas, products, or processes.
For further information, see the instructions for Schedule RI, item 5.e, in the instructions
for the FFIEC 031 and FFIEC 041 Call Reports.

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(26) Fee income (other than servicing fees and commercial paper placement fees) from the
bank's securitization and structured finance transactions. (Report income from
servicing securitized assets in Schedule RI, item 5.f, and fee income from the
placement of commercial paper in Schedule RI, item 5.d.(1)).

Exclude from Schedule RI, item 5.l, “Other noninterest income,” income from seller’s interests
and residual interests retained by the bank in the bank’s own securitization transactions
(report in the appropriate subitem of Schedule RI, item 1, “Interest income").

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Item No.

Caption and Instructions

7.b
(cont.)

Exclude from expenses of premises and fixed assets:
(1) Salaries and employee benefits (report such expenses for all officers and employees of
the bank and its consolidated subsidiaries in Schedule RI, item 7.a, "Salaries and
employee benefits").
(2) Interest on mortgages, liens, or other encumbrances on premises or equipment owned,
including the portion of capital lease payments representing interest expense (report in
Schedule RI, item 2.c, "Other interest expense").

(3) All expenses associated with other real estate owned (report in Schedule RI, item 7.d, "Other
noninterest expense").

7.c.(1)

(4) Gross rentals from other real estate owned and fees charged for the use of parking lots
properly reported as other real estate owned, as well as safe deposit box rentals and
rental fees applicable to operating leases for furniture and equipment rented to others
(report in Schedule RI, item 5.l).

Goodwill impairment losses. Report any impairment losses recognized during the period
on goodwill. Exclude goodwill impairment losses associated with discontinued operations
(report such losses on a net-of-tax basis in Schedule RI, item 11, "Discontinued operations,
net of applicable income taxes").

An institution that meets the definition of a private company in U.S. generally accepted
accounting principles and has elected the accounting alternative for the amortization of
goodwill in ASC Subtopic 350-20, Intangibles-Goodwill and Other – Goodwill (formerly FASB
Statement No. 142, “Goodwill and Other Intangible Assets”), as amended by Accounting
Standards Update No. 2014-02, “Accounting for Goodwill,” should report the amortization
expense of goodwill in this item. Exclude goodwill amortization expense associated with
discontinued operations (report such expense on a net-of-tax basis in Schedule RI, item 11,
“Discontinued operations, net of applicable income taxes”). A private company that elects the
accounting alternative for the subsequent measurement of goodwill should amortize each
amortizable unit of goodwill on a straight-line basis over ten years (or less than ten years if the
private company demonstrates that another useful life is more appropriate).

Except when the private company accounting alternative described above has been elected,
goodwill should not be amortized. However, regardless of whether goodwill is amortized, it
must be tested for impairment as described in the Glossary entry for “goodwill.”

7.c.(2)

Amortization expense and impairment losses for other intangible assets. Report the
amortization expense of and any impairment losses on "Other intangible assets" (other than
goodwill and servicing assets) reportable in (as defined for Schedule RC-M, item 2.c 10.b).
Under ASC Topic 350, Intangibles-Goodwill and Other (formerly FASB Statement No. 142,
“Goodwill and Other Intangible Assets”), intangible assets that have indefinite useful lives
should not be amortized, but must be tested at least annually for impairment. Intangible
assets that have finite useful lives must be amortized over their useful lives and must be
reviewed for impairment in accordance with ASC Topic 360, Property, Plant, and Equipment
(formerly FASB Statement No. 144, “Accounting for the Impairment of Long-Lived Assets”).
Exclude the amortization expense of and any impairment losses on servicing assets, which
should be netted against the servicing income reported in Schedule RI, item 5.f, “Net servicing
fees,” above.

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Item No.
7.d

RI - INCOME STATEMENT

Caption and Instructions
Other noninterest expense. Report all operating expenses of the bank for the calendar
year-to-date not required to be reported elsewhere in Schedule RI.

Disclose in Schedule RI-E, items 2.a through 2.p, each component of other noninterest
expense, and the dollar amount of such component, that is greater than $100,000 and
exceeds 37 percent of the other noninterest expense reported in this item. If net gains have
been reported in this item for a component of “Other noninterest expense,” use the absolute
value of such net gains to determine whether the amount of the net gains is greater than
$100,000 and exceeds 37 percent of “Other noninterest expense” and should be reported in
Schedule RI-E, item 2. (The absolute value refers to the magnitude of the dollar amount
without regard to whether the amount represents net gains or net losses.)

For each component of other noninterest expense that exceeds the disclosure threshold in
the preceding paragraph and for which a preprinted caption has not been provided in
Schedule RI-E, items 2.a.through 2.m, describe the component with a clear but concise
caption in Schedule RI-E, items 2.n through 2.p. These descriptions should not exceed
50 characters in length (including spacing between words).

For disclosure purposes in Schedule RI-E, items 2.a through 2.m, when components of
“Other noninterest expense” reflect a single charge for separate “bundled services” provided
by third party vendors, disclose such amounts in the item with the preprinted caption that most
closely describes the predominant type of expense incurred, and this categorization should be
used consistently over time.
Include as other noninterest expense:

(1) Fees paid to directors and advisory directors for attendance at board of directors’ or
committee meetings (including travel and expense allowances). (Report the amount of
such fees in Schedule RI-E, item 2.c, if this amount is greater than $100,000 and exceeds
37 percent of the amount reported in Schedule RI, item 7.d.)
(2) Cost of data processing services performed for the bank by others. (Report the amount
of such expenses in Schedule RI-E, item 2.a, if this amount is greater than $100,000 and
exceeds 37 percent of the amount reported in Schedule RI, item 7.d.)

(3) Advertising, promotional, public relations, marketing, and business development
expenses. Such expenses include the cost of athletic activities in which officers and
employees participate when the purpose may be construed to be for marketing or public
relations, and employee benefits are only incidental to the activities. (Report the amount
of such expenses in Schedule RI-E, item 2.b, if this amount is greater than $100,000 and
exceeds 37 percent of the amount reported in Schedule RI, item 7.d.)

(4) Cost of gifts or premiums (whether in the form of merchandise, credit, or cash) given to
depositors at the time of the opening of a new account or an addition to, or renewal of, an
existing account, if not included in advertising and marketing expenses above.
(5) Retainer fees, legal fees, and other fees and expenses paid to attorneys who are not
bank officers or employees and to outside law firms. (Report the amount of such
expenses in Schedule RI-E, item 2.f, if this amount is greater than $100,000 and exceeds
37 percent of the amount reported in Schedule RI, item 7.d.)

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Item No.

Caption and Instructions

7.d
(cont.)

(6) Cost of printing, stationery, and office supplies. (Report the amount of such expenses in
Schedule RI-E, item 2.d, if this amount is greater than $100,000 and exceeds 37 percent
of the amount reported in Schedule RI, item 7.d.)
(7) Postage and mailing expenses. (Report the amount of such expenses in Schedule RI-E,
item 2.e, if this amount is greater than $100,000 and exceeds 37 percent of the amount
reported in Schedule RI, item 7.d.)

(8) Telecommunications expenses, including any expenses associated with telephone,
telegraph, cable, and internet services (including web page maintenance). (Report the
amount of such expenses in Schedule RI-E, item 2.k, if this amount is greater than
$100,000 and exceeds 37 percent of the amount reported in Schedule RI, item 7.d.)

(9) Federal deposit insurance assessments and Financing Corporation (FICO) assessments.
(Report the amount of such assessments in Schedule RI-E, item 2.g, if this amount is
greater than $100,000 and exceeds 37 percent of the amount reported in Schedule RI,
item 7.d.)
(10) Premiums on fidelity insurance (blanket bond, excess employee dishonesty bond),
directors' and officers' liability insurance, life insurance policies for which the bank is the
beneficiary, and other insurance policies for which the premiums are not included in
salaries and employee benefits, expenses of premises and fixed assets, and expenses
of other real estate owned. (Report the amount of such insurance expenses in
Schedule RI-E, item 2.m, if this amount is greater than $100,000 and exceeds 37
percent of the amount reported in Schedule RI, item 7.d.)
(11) Assessment expense, examination expense, and other fees levied by the Comptroller of
the Currency or a state chartering authority, net of any assessment credits during the
period.

(12) Legal fees and other direct costs incurred to effect foreclosures on real estate and
subsequent noninterest expenses related to holdings of real estate owned other than
bank premises (including depreciation charges, if appropriate). (Report the amount of
such expenses in Schedule RI-E, item 2.l, if this amount is greater than $100,000 and
exceeds 37 percent of the amount reported in Schedule RI, item 7.d.)

(13) Net losses (gains) from the sale or other disposal of branches (i.e., where the reporting
bank sells a branch's assets to another depository institution, which assumes the
deposit liabilities of the branch). Banks should consistently report these net losses
(gains) either in this item or in Schedule RI, item 5.l.
(14) Net losses (gains) from all transactions involving foreign currency or foreign exchange
other than trading transactions. Banks should consistently report these net losses
(gains) either in this item or in Schedule RI, item 5.l.
(15) Management fees assessed by the bank’s parent holding company, whether for specific
services rendered or of a general (prorated) nature.
(16) Sales taxes, taxes based on the number of shares of bank stock outstanding, taxes
based on the bank's total assets or total deposits, taxes based on the bank's gross
revenues or gross receipts, capital stock taxes, and other taxes not included in other
categories of expense. Exclude any state and local taxes based on a net amount of
revenues less expenses (report as applicable income taxes in Schedule RI, item 9).

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Item No.

Caption and Instructions

7.d
(cont.)

(17) Fees levied by deposit brokers that are, in substance, retainer fees or that otherwise do
not represent an adjustment to the interest rate paid on deposits the reporting bank
acquires through brokers. However, report as interest expense on the appropriate
category of deposits those finders' fees and brokers' fees that do represent an
adjustment to the interest rate paid on brokered deposits.
(18) Research and development costs and costs incurred in the internal development of
computer software.
(19) Charges resulting from litigation or other claims.

(20) Charitable contributions including donations by Clifford Trusts.

(21) Fees for accounting, auditing, and attestation services; retainer fees; and other fees and
expenses paid to accountants and auditors who are not bank officers or employees.
(Report the amount of such expenses in Schedule RI-E, item 2.h, if this amount is
greater than $100,000 and exceeds 37 percent of the amount reported in Schedule RI,
item 7.d.)
(22) Fees for consulting and advisory services, retainer fees, and other fees and expenses
paid to management consultants, investment advisors, and other professionals (other
than attorneys providing legal services and accountants providing accounting, auditing,
and attestation services) who are not bank officers or employees. (Report the amount
of such expenses in Schedule RI-E, item 2.i, if this amount is greater than $100,000 and
exceeds 37 percent of the amount reported in Schedule RI, item 7.d.)

(23) Net losses (gains) on derivative instruments held for purposes other than trading that
are not designated as hedging instruments in hedging relationships that qualify for
hedge accounting in accordance with ASC Topic 815, Derivatives and Hedging
(formerly FASB Statement No. 133, “Accounting for Derivative Instruments and Hedging
Activities”). Institutions should consistently report these net losses (gains) either in this
item or in Schedule RI, item 5.l. For further information, see the Glossary entries for
“derivative contracts” and “trading account.”

(24) Net tellers' shortages (overages), net losses (recoveries) on forged checks, net losses
(recoveries) on payment of checks over stop payment orders, and similar recurring
operating losses (gains) of this type. Banks should consistently report these losses
(gains) either in this item or in Schedule RI, item 5.l.

(25) Net losses resulting from fiduciary and related services. Net losses are gross losses
less recoveries (including those from insurance payments). Gross losses include
settlements, surcharges, and other losses arising from errors, misfeasance, or
malfeasance on fiduciary accounts and related services and should reflect losses
recognized on an accrual basis. Recoveries may be for current or prior years’ losses
from fiduciary and related services and should be reported when payment is actually
realized. If the institution enters into a “fee reduction” or “fee waiver” agreement with a
client as the method for reimbursing or compensating the client for a loss on the client’s
fiduciary or related services account, the full amount of this loss must be recognized on
an accrual basis and reported in this item as “Other noninterest expense.” An institution
should not report such a loss as a reduction of the gross income from fiduciary and
related services it reports in Schedule RI, item 5.a, “Income from fiduciary activities,”

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Item No.
7.d
(cont.)

RI - INCOME STATEMENT

Caption and Instructions
in the current or future periods when the “fee reduction” or “fee waiver” takes place.
(See the example after the instructions to Schedule RC-T, Memorandum item 4.e.)
For institutions required to complete Schedule RC-T, item 24, the amount of net losses
from fiduciary and related services also is reported in that item.
(26) Losses from robberies, defalcations, and other criminal acts not covered by the bank's
blanket bond.
(27) Travel and entertainment expenses, including costs incurred by bank officers and
employees for attending meetings and conventions.

(29) Civil money penalties and fines.

(28) Dues, fees, and other expenses associated with memberships in country clubs, social or
private clubs, civic organizations, and similar clubs and organizations.

(30) All service charges, commissions, and fees levied by others for the repossession of
assets and the collection of the bank's loans or other assets, including charged-off loans
or other charged-off assets.
(31) Expenses (except salaries) related to handling credit card or charge sales received from
merchants when the bank does not carry the related loan accounts on its books. Banks
are also permitted to net these expenses against their charges to merchants for the
bank's handling of these sales in Schedule RI, item 5.l.
(32) Expenses related to the testing and training of officers and employees.
(33) The cost of bank newspapers and magazines prepared for distribution to bank officers
and employees or to others.

(34) Depreciation expense of furniture and equipment rented to others under operating
leases.
(35) Cost of checks provided to depositors.

(36) Amortization expense of purchased computer software and of the costs of computer
software to be sold, leased, or otherwise marketed capitalized in accordance with the
provisions of ASC Subtopic 985-20, Software – Costs of Software to Be Sold, Leased or
Marketed (formerly FASB Statement No. 86, “Accounting for the Cost of Computer
Software to Be Sold, Leased, or Otherwise Marketed”).

(37) Provision for credit losses on off-balance sheet credit exposures.

(38) Net losses (gains) from the extinguishment of liabilities (debt), including losses resulting
from the payment of prepayment penalties on borrowings such as Federal Home Loan
Bank advances. However, if a bank's debt extinguishments normally result in net gains
over time, then the bank should consistently report its net gains (losses) in Schedule RI,
item 5.l, "Other noninterest income."
(39) Automated teller machine (ATM) and interchange expenses from bank card and credit
card transactions. (Report the amount of such expenses in Schedule RI-E, item 2.j, if
this amount is greater than $100,000 and exceeds 37 percent of the amount reported in
Schedule RI, item 7.d.)

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RI - INCOME STATEMENT

Memoranda
Item No.

Not applicable.Interest expense incurred to carry tax-exempt securities, loans, and
leases acquired after August 7, 1986, that is not deductible for federal income tax
purposes. Report the bank's best estimate of the amount of the year-to-date interest
expense included in Schedule RI, item 2.e, "Total interest expense," that is subject to a 100
percent loss of deductibility for federal income tax purposes because it is deemed to have
been incurred to carry tax-exempt securities, loans, and leases of states and political
subdivisions in the U.S. acquired after August 7, 1986. Tax-exempt securities, loans, and
leases are those securities, loans, and leases of states and political subdivisions in the U.S.
whose interest is excludable from gross income under the regular tax system for federal
income tax purposes, regardless of whether the income must be included in the bank's
alternative minimum taxable income.

Caption and Instructions

Exclude from this item interest expense incurred to carry (1) tax-exempt securities, loans, and
leases of states and political subdivisions in the U.S. acquired after December 31, 1982, but
before August 8, 1986, and (2) so-called "Qualified tax-exempt obligations" acquired after
August 7, 1986, 20 percent of which is not deductible for federal income tax purposes.
The general formula that may be used for computing the amount of interest expense that is
subject to a 100 percent loss of deductibility is as follows:
Tax-exempt securities, loans, and leases of
states and political subdivisions in the U.S.
acquired after August 7, 1986 (excluding
"Qualified tax-exempt obligations")
(Year-to-date average)
Total assets (Year-to-date average)

Year-to-date
total interest
expense (Schedule
RI, item 2.e)

For the March 31, June 30, and September 30 Call Reports, the amount reported in
Memorandum item 1 should not be an estimate of the amount of interest expense that will not
be deductible for the entire calendar year.
Not applicable.

Income on tax-exempt loans and leases to states and political subdivisions in the U.S.
Report the bank’s best estimate of the income earned on:

(1) Tax-exempt loans to states and political subdivisions in the U.S. reportable in
Schedule RC-C, Part I, item 8. This income will have been included in Schedule RI,
item 1.a.(5), Interest and fee income on “All other loans,” above.

(2) Tax-exempt leases to states and political subdivisions in the U.S. reportable in
Schedule RC-C, Part I, item 10. This income will have been included in Schedule RI,
item 1.b, “Income from lease financing receivables,” above.

Tax-exempt loans and leases are those loans and leases to states and political subdivisions
in the U.S. whose income is excludable from gross income for federal income tax purposes,
regardless of whether the income from the loan or lease must be included in the bank’s
alternative minimum taxable income and regardless of the federal income tax treatment of the
interest expense incurred to carry the loan or lease.

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RI-B - ALLOWANCE

Part II. (cont.)
Memoranda
Item No.

Caption and Instructions

1–3

Not applicable.
Amount of allowance for post-acquisition credit losses on purchased credit-impaired
loans accounted for in accordance with FASB ASC 310-30 (former AICPA Statement of
Position 03-3). Report in this item the amount of any valuation allowances established after
acquisition for decreases in cash flows expected to be collected on purchased credit-impaired
loans and pools of purchased credit-impaired loans reported as held for investment in
Schedule RC, item 4.b, and accounted for in accordance with 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”). These post-acquisition allowances should be included in the bank's allowance
for loan and lease losses as reported in Schedule RC, item 4.c, and Schedule RI-B, Part II,
item 7. Under ASC Subtopic 310-30, for a purchased credit-impaired loan accounted for
individually (and not accounted for as a debt security), if, upon evaluation subsequent to
acquisition, it is probable based on current information and events that an institution will be
unable to collect all cash flows expected at acquisition (plus additional cash flows expected to
be collected arising from changes in estimate after acquisition), the purchased credit-impaired
loan should be considered impaired for purposes of establishing an allowance pursuant to
ASC Subtopic 450-20, Contingencies – Loss Contingencies (formerly FASB Statement No. 5,
“Accounting for Contingencies”) or ASC Topic 310, Receivables (formerly FASB Statement
No. 114, “Accounting by Creditors for Impairment of a Loan”), as appropriate. For purchased
credit-impaired loans with common risk characteristics that are aggregated and accounted for
as a pool, this impairment analysis should be performed subsequent to acquisition at the pool
level as a whole and not at the individual loan level.

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RI-E - EXPLANATIONS

SCHEDULE RI-E – EXPLANATIONS
General Instructions
Items 1 and 2 of Schedule RI-E are to be completed annually on a calendar year-to-date basis in the
December report only. Items 3 through 6 of Schedule RI-E isare to be completed each quarter on a
calendar year-to-date basis.

Item Instructions

Caption and Instructions

Item No.

On those lines for which your bank must provide a description of the amount being reported, the
description should not exceed 50 characters (including punctuation and spacing between words). If
additional space is needed to complete a description or if your bank, at its option, chooses to briefly
describe other significant items affecting the Consolidated Report of Income, item 7 of this schedule may
be used. Any amounts reported in Schedule RI-E, item 2.g, “FDIC deposit insurance assessments,” for
report dates beginning June 30, 2009, will not be made available to the public on an individual institution
basis.

Other noninterest income. Disclose in items 1.a through 1.lj each component of
Schedule RI, item 5.l, “Other noninterest income,” and the dollar amount of such component,
that is greater than $100,000 and exceeds 37 percent of the “Other noninterest income.” If
net losses have been reported in Schedule RI, item 5.l, for a component of “Other noninterest
income,” use the absolute value of such net losses to determine whether the amount of the
net losses is greater than $100,000 and exceeds 37 percent of “Other noninterest income”
and should be reported in this item. (The absolute value refers to the magnitude of the dollar
amount without regard to whether the amount represents net gains or net losses.) If net
losses are reported in this item, report them with a minus (-) sign.

Preprinted captions have been provided for the following components of “Other noninterest
income”:
•
•
•
•
•
•

•
•
•

Item 1.a, “Income and fees from the printing and sale of checks,”
Item 1.b, “Earnings on/increase in value of cash surrender value of life insurance,”
Item 1.c, “Income and fees from automated teller machines (ATMs),”
Item 1.d, “Rent and other income from other real estate owned,”
Item 1.e, “Safe deposit box rent,”
Item 1.f, “Net change in the fair values of financial instruments accounted for under a fair
value option,”
Item 1.g, “Bank card and credit card interchange fees,”
Item 1.h., “Gains on bargain purchases,” and
Item 1.g,i, “Income and fees from wire transfers not reportable as service charges on
deposit accounts.”

General descriptions of the components of “Other noninterest income,” including those for
which preprinted captions have been provided in items 1.a through 1.ig, are included in the
instructions for Schedule RI, item 5.l. However, institutions need not adjust their internal
noninterest income definitions to match the agencies’ descriptions in the item 5.l instructions.
Rather, institutions may report the components of their “Other noninterest income” in
items 1.a through 1.lj using their internal definitions, provided the internal definitions are used
consistently over time.
For other components of “Other noninterest income” that exceed the disclosure threshold, list
and briefly describe these components in items 1.jh through 1.lj and, if necessary, in
Schedule RI-E, item 7, below.

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Item No.

Caption and Instructions

1
(cont.)

For components of “Other noninterest income” that reflect a single credit for separate
“bundled services” provided through third party vendors, disclose such amounts in the item
that most closely describes the predominant type of income earned, and this categorization
should be used consistently over time.
Other noninterest expense. Disclose in items 2.a through 2.p each component of
Schedule RI, item 7.d, “Other noninterest expense,” and the dollar amount of such
component, that is greater than $100,000 and exceeds 37 percent of the ”Other noninterest
expense.” If net gains have been reported in Schedule RI, item 7.d, for a component of
“Other noninterest expense,” use the absolute value of such net gains to determine whether
the amount of the net gains is greater than $100,000 and exceeds 37 percent of “Other
noninterest expense” and should be reported in this item. (The absolute value refers to the
magnitude of the dollar amount without regard to whether the amount represents net gains or
net losses.) If net gains are reported in this item, report them with a minus (-) sign.

Item 2.a, “Data processing expenses,”
Item 2.b, “Advertising and marketing expenses,”
Item 2.c, “Directors’ fees,”
Item 2.d, “Printing, stationery, and supplies,”
Item 2.e, “Postage,”
Item 2.f, “Legal fees and expenses,”
Item 2.g, “FDIC deposit insurance assessments,”
Item 2.h, “Accounting and auditing expenses,”
Item 2.i, “Consulting and advisory expenses,”
Item 2.j, “Automated teller machine (ATM) and interchange expenses,”
Item 2.k, “Telecommunications expenses,”
Item 2.l, “Other real estate owned expenses,” and
Item 2.m, “Insurance expenses (not included in employee expenses, premises and fixed
asset expenses, and other real estate owned expenses).”

•
•
•
•
•
•
•
•
•
•
•
•
•

Preprinted captions have been provided for the following components of “Other noninterest
expense”:

General descriptions of the components of “Other noninterest expense,” including those for
which preprinted captions have been provided in items 2.a through 2.m, are included in the
instructions for Schedule RI, item 7.d. However, institutions need not adjust their internal
noninterest expense definitions to match the agencies’ descriptions in the item 7.d
instructions. Rather, institutions may report the components of their “Other noninterest
expense” in items 2.a through 2.p using their internal definitions, provided the internal
definitions are used consistently over time.
For other components of “Other noninterest expense” that exceed the disclosure threshold,
list and briefly describe these components in items 2.n through 2.p and, if necessary, in
Schedule RI-E, item 7, below.
For components of “Other noninterest expense” that reflect a single charge for separate
“bundled services” provided by third party vendors, disclose such amounts in the item that
most closely describes the predominant type of expense incurred, and this categorization
should be used consistently over time.

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Item No.
6

RC - BALANCE SHEET

Include as premises and fixed assets:

Do not deduct mortgages or other liens on such property (report in Schedule RC, item 16,
"Other borrowed money").

(1) Premises that are actually owned and occupied (or to be occupied, if under construction)
by the bank, its branches, or its consolidated subsidiaries.

(2) Leasehold improvements, vaults, and fixed machinery and equipment.
(3) Remodeling costs to existing premises.

(4) Real estate acquired and intended to be used for future expansion.

Exclude from premises and fixed assets:
(1) Original paintings, antiques, and similar valuable objects (report in Schedule RC-F,
item 6, "All other assets”).
(2) Favorable leasehold rights (report in Schedule RC-M, item 10.b2.c, "All oOther identifiable
intangibles assets").
Property formerly but no longer used for banking may be reported either in this item as
"Premises and fixed assets" or in Schedule RC-M, item 3, as "Other real estate owned."

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Item No.

RC - BALANCE SHEET

Caption and Instructions
Other real estate owned. Report the total amount of other real estate owned from
Schedule RC-M, item 3.fg. For further information on other real estate owned, see the
instruction to Schedule RC-M, item 3, and the Glossary entry for "foreclosed assets."

Investments in unconsolidated subsidiaries and associated companies. Report the
amount of the bank's investments in subsidiaries that have not been consolidated; associated
companies; corporate joint ventures, unincorporated joint ventures, and general partnerships
over which the bank exercises significant influence; and noncontrolling investments in certain
limited partnerships and limited liability companies (described in the Glossary entry for “equity
method of accounting”), excluding those that represent direct and indirect investments in real
estate ventures (which are to be reported in Schedule RC, item 9). The entities in which these
investments have been made are collectively referred to as “investees.” Include loans and
advances to investees and holdings of their bonds, notes, and debentures.

Investments in investees shall be reported using the equity method of accounting. Under the
equity method, the carrying value of the bank's investment in an investee is originally recorded
at cost but is adjusted periodically to record as income the bank's proportionate share of the
investee's earnings or losses and decreased by the amount of any cash dividends or similar
distributions received from the investee. For purposes of these reports, the date through
which the carrying value of the bank's investment in an investee has been adjusted should, to
the extent practicable, match the report date of the Report of Condition, but in no case differ
by more than 93 days from the report date.
Unconsolidated subsidiaries include those majority-owned subsidiaries that do not meet the
significance standards for required consolidation that the bank chooses not to consolidate
under the optional consolidation provisions. Refer to the General Instructions section of this
book for a detailed discussion of consolidation. See also the Glossary entry for "subsidiaries."
Direct and indirect investments in real estate ventures. Report the amount of the bank’s
direct and indirect investments in real estate ventures. Exclude real estate acquired in any
manner for debts previously contracted, including, but not limited to, real estate acquired
through foreclosure or acquired by deed in lieu of foreclosure, and equity holdings that
indirectly represent such real estate (report in Schedule RC-M, item 3, “Other real estate
owned”).

NOTE: 12 USC 29 limits the authority of national banks to hold real estate. State member
banks are not authorized to invest in real estate except with the prior approval of the Board of
Governors of the Federal Reserve System under Federal Reserve Regulation H (12 CFR
Part 208). In certain states, nonmember banks may invest in real estate.
Include as direct and indirect investments in real estate ventures:
(1) Any real estate originally acquired, directly or indirectly, by the bank or a consolidated
subsidiary and held for development, resale, or other investment purposes.
(2) Real estate acquisition, development, or construction (ADC) arrangements which are
accounted for as direct investments in real estate or real estate joint ventures in
accordance with ASC Subtopic 310-10, Receivables – Overall (formerly AICPA Practice
Bulletin 1, Appendix, Exhibit I, “ADC Arrangements”).

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Caption and Instructions

9
(cont.)

Item No.

10.a

10.b

Other intangible assets. Report the total amount of intangible assets other than goodwill
from Schedule RC-M, item 2.d. For further information on intangible assets, see the
instruction to Schedule RC-M, item 2.

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General Instructions (cont.)
(2) Purchases and sales of participations in pools of securities – Similarly, these transactions are not to
be treated as purchases or sales of the securities in the pool but as lending or borrowing
(i.e., financing) transactions collateralized by the pooled securities if the participation agreements
meet the criteria for a borrowing set forth in ASC Topic 860. For further information, see the Glossary
entries for "transfers of financial assets" and "repurchase/resale agreements."
(3) Pledged securities – Pledged securities that have not been transferred to the secured party should
continue to be included in the pledging bank's holdings of securities that are reported in
Schedule RC-B. If the bank has transferred pledged securities to the secured party, the bank should
account for the pledged securities in accordance with ASC Topic 860.

(4) Securities borrowed and lent – Securities borrowed and lent shall be reported on the balance sheet of
either the borrowing or lending bank in accordance with ASC Topic 860. For further information, see
the Glossary entries for "transfers of financial assets" and "securities borrowing/lending transactions."
(5) Short sales of securities – Such transactions are to be reported as described in the Glossary entry for
"short position."

(6) Futures, forward, and option contracts – Such open contracts to buy or sell securities in the future are
to be reported as derivatives. Institutions must report whether they have any derivative contracts in
Schedule SU, item 1, and, if appropriate, information about their derivative contracts in the
corresponding subitems.
Item Instructions
Item No.
1

Caption and Instructions

U.S. Treasury securities. Report in the appropriate columns the amortized cost and fair
value of all U.S. Treasury securities not held infor trading accounts. Include all bills,
certificates of indebtedness, notes, and bonds, including those issued under the Separate
Trading of Registered Interest and Principal of Securities (STRIPS) program and those that
are "inflation-indexed."

Exclude all obligations of U.S. Government agencies. Also exclude detached Treasury
security coupons and ex-coupon Treasury securities held as the result of either their purchase
or the bank's stripping of such securities and Treasury receipts such as CATS, TIGRs,
COUGARs, LIONs, and ETRs (report in Schedule RC-B, item 6.a below). Refer to the
Glossary entry for "coupon stripping, Treasury receipts, and STRIPS" for additional
information.
U.S. Government agency obligations. Report in the appropriate columns of the appropriate
subitems the amortized cost and fair value of all U.S. Government agency obligations of U.S.
Government agencies and U.S. Government-sponsored agencies (excluding mortgagebacked securities) not held for trading.

. 2

Distinction between U.S. Government Agencies and U.S. Government-sponsored Agencies ‒
For purposes of these reports, a U.S. Government agency is defined as an instrumentality of
the U.S. Government whose debt obligations are fully and explicitly guaranteed as to the timely
payment of principal and interest by the full faith and credit of the U.S. Government. In
contrast, a U.S. Government-sponsored agency is defined as an agency originally established
or chartered by the U.S. Government to serve public purposes specified by the U.S. Congress
but whose debt obligations are not explicitly guaranteed by the full faith and credit of the U.S.
Government.
Exclude from U.S. Government agency obligations:
(1) Loans to the Export-Import Bank and to federally-sponsored lending agencies (report in
"Other loans," Schedule RC-C, Part I, item 9). Refer to the Glossary entry for "federallysponsored lending agency" for the definition of this term.

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Item No.

Caption and Instructions

2
(cont.)

(2) All holdings of U.S. Government-issued or -guaranteed mortgage pass-through securities
(report in Schedule RC-B, item 4.a, below).
(3) Collateralized mortgage obligations (CMOs), real estate mortgage investments conduits
(REMICs), CMO and REMIC residuals, and stripped mortgage-backed securities (such as
interest-only strips (IOs), principal-only strips (POs), and similar instruments) issued by
U.S. Government agencies and corporations (report in Schedule RC-B, item 4.b, below).

Issued by U.S. Government agencies. Report in the appropriate columns the amortized
cost and fair value of all obligations (excluding mortgage-backed securities) not held for
trading that have been issued by U.S. Government agencies. For purposes of these reports,
a U.S. Government agency is defined as an instrumentality of the U.S. Government whose
debt obligations are fully and explicitly guaranteed as to the timely payment of principal and
interest by the full faith and credit of the U.S. Government.

2.a

Include, among others, debt securities (but not mortgage-backed securities) of the following
U.S. Government agencies:
(1)
(2)
(3)
(4)
(5)

Export-Import Bank (Ex-Im Bank)
Federal Housing Administration (FHA)
Government National Mortgage Association (GNMA)
Maritime Administration
Small Business Administration (SBA)

Include such obligations as:

(1) Small Business Administration (SBA) "Guaranteed Loan Pool Certificates," which
represent an undivided interest in a pool of SBA-guaranteed portions of loans for which
the SBA has further guaranteed the timely payment of scheduled principal and interest
payments. (Exclude SBA “Guaranteed Interest Certificates,” which represent a beneficial
interest in the entire SBA-guaranteed portion of an individual loan. SBA “Guaranteed
Interest Certificates” should be reported as loans in Schedule RC-C, Part I, or, if held for
trading, in Schedule RC, item 5.)
(2) Participation certificates issued by the Export-Import Bank and the General Services
Administration.

2.b

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Issued by U.S. Government-sponsored agencies. Report in the appropriate columns the
amortized cost and fair value of all obligations (excluding mortgage-backed securities) not held
for trading that have been issued by U.S. Government-sponsored agencies. For purposes of
these reports, U.S. Government-sponsored agencies are defined as agencies originally
established or chartered by the U.S. Government to serve public purposes specified by the
U.S. Congress but whose debt obligations are not explicitly guaranteed by the full faith and
credit of the U.S. Government.

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Item No.

Caption and Instructions

2.b
(cont.)

Include, among others, debt securities and mortgage-backed bonds (i.e., bonds that are
collateralized by mortgages) of the following U.S. Ggovernment-sponsored agencies:
Federal Agricultural Mortgage Corporation (Farmer Mac)
Federal Farm Credit Banks
Federal Home Loan Banks (FHLBs)
Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac)
Federal Land Banks (FLBs)
Federal National Mortgage Association (FNMA or Fannie Mae)
Financing Corporation (FICO)
Resolution Funding Corporation (REFCORP)
Student Loan Marketing Association (SLMA or Sallie Mae)
Tennessee Valley Authority (TVA)
U.S. Postal Service

(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)

Exclude debt securities issued by SLM Corporation, the private-sector corporation that is the
successor to the Student Loan Marketing Association (report in Schedule RC-B, item 6.a,
“Other domestic debt securities,” below), and securitized student loans issued by
SLM Corporation (or its affiliates) (report in Schedule RC-B, item 5, “Asset-backed securities,”
below).
Exclude from U.S. Government agency obligations:

(1) Loans to the Export-Import Bank and to federally-sponsored lending agencies (report in
"Other loans," Schedule RC-C, Part I, item 9). Refer to the Glossary entry for "federallysponsored lending agency" for the definition of this term.
(2) All holdings of U.S. Government-issued or -guaranteed mortgage pass-through securities
(report in Schedule RC-B, item 4.a.(1), 4.a.(2), or 4.c.(1)(a), below, as appropriate).

(3) Collateralized mortgage obligations (CMOs), real estate mortgage investments conduits
(REMICs), CMO and REMIC residuals, and stripped mortgage-backed securities (such as
interest-only strips (IOs), principal-only strips (POs), and similar instruments) issued by
U.S. Government agencies and corporations (report in Schedule RC-B, item 4.b.(1) or
4.c.(2)(a), below, as appropriate).

(4) Participations in pools of Federal Housing Administration (FHA) Title I loans, which
generally consist of junior lien home improvement loans (report as loans in
Schedule RC-C, generally in item 1.c.(2)(b), Loans "secured by junior liens" on
1-to-4 family residential properties).
(5) Debt securities issued by SLM Corporation, the private-sector corporation that is the
successor to the Student Loan Marketing Association (report in Schedule RC-B, item 6.a,
“Other domestic debt securities,” below), and securitized student loans issued by
SLM Corporation (or its affiliates) (report in Schedule RC-B, item 5.a, “Asset-backed
securities,” below).

Securities issued by states and political subdivisions in the U.S. Report in the
appropriate columns the amortized cost and fair value of all securities issued by states and
political subdivisions in the United States not held for trading.
States and political subdivisions in the U.S., for purposes of this report, include:

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Item No.
4

RC-B - SECURITIES

Caption and Instructions
Mortgage-backed securities. Report in the appropriate columns of the appropriate subitems
the amortized cost and fair value of all residential and commercial mortgage-backed
securities, including mortgage pass-through securities, collateralized mortgage obligations
(CMOs), real estate mortgage investment conduits (REMICs), CMO and REMIC residuals,
stripped mortgage-backed securities (such as interest-only strips (IOs), principal-only strips
(POs), and similar instruments), and mortgage-backed commercial paper not held for trading.
Include mortgage-backed securities issued by non-U.S. issuers.
Exclude from mortgage-backed securities:

(1) Securities backed by loans extended under home equity lines, i.e., revolving open-end
lines of credit secured by 1-4 family residential properties (report as asset-backed
securities in Schedule RC-B, item 5.a).

(2) Bonds issued by the Federal National Mortgage Association (FNMA) and the
Federal Home Loan Mortgage Corporation (FHLMC) that are collateralized by mortgages,
i.e., mortgage-backed bonds, (report in Schedule RC-B, item 2.b, Obligations "Issued by
U.S. Government -sponsored agencies agency obligations") and mortgage-backed bonds
issued by non-U.S. Government issuers (report in Schedule RC-B, item 6, "Other debt
securities," below).
(3) Participation certificates issued by the Export-Import Bank and the General Services
Administration (report in Schedule RC-B, item 2.a, Obligations "Issued by U.S.
Government agencyies obligations").
(4) Participation certificates issued by a Federal Intermediate Credit Bank (report in
Schedule RC-F, item 4, "Equity investments withoutsecurities that do not have readily
determinable fair values").
Residential mortgage pass-through securities. Report in the appropriate columns of the
appropriate subitems the amortized cost and fair value of all holdings of residential mortgage
pass-through securities. In general, a residential mortgage pass-through security represents
an undivided interest in a pool of loans secured by 1-4 family residential properties that
provides the holder with a pro rata share of all principal and interest payments on the
residential mortgages in the pool, and includes certificates of participation in pools of
residential mortgages.

4.a

Include certificates of participation in pools of 1-4 family residential mortgages even though
the reporting bank was the original holder of the mortgages underlying the pool and holds the
instruments covering that pool, as may be the case with GNMA certificates issued by the bank
and swaps with FNMA and FHLMC. Also include U.S. Government-issued participation
certificates (PCs) that represent a pro rata share of all principal and interest payments on a
pool of resecuritized participation certificates that, in turn, are backed by 1-4 family residential
mortgages, e.g., FHLMC Giant PCs.
Exclude all holdings of commercial mortgage pass-through securities, including pass-through
securities backed by loans secured by multifamily (5 or more) residential properties (report in
Schedule RC-B, item 4.c.(1), below). Also exclude all collateralized mortgage obligations
(CMOs), real estate mortgage investment conduits (REMICs), CMO and REMIC residuals,
stripped mortgage-backed securities (such as interest-only strips (IOs), principal-only strips
(POs), and similar instruments), and mortgage-backed commercial paper (report in
Schedule RC-B, item 4.b or 4.c.(2), below, as appropriate).

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Caption and Instructions

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 RC-B, item 4.c.(1), above).

4.c.(2)(a)

Issued or guaranteed by U.S. Government agencies or sponsored agencies. 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 U.S. Government agencies or U.S. Government-sponsored agencies.

Item No.

4.c.(2)(b)

U.S. Government agencies include, but are not limited to, such agencies as the Government
National Mortgage Association (GNMA), the Federal Deposit Insurance Corporation (FDIC),
and the National Credit Union Administration (NCUA). U.S. Government-sponsored agencies
include, but are not limited to, such agencies as the Federal Home Loan Mortgage
Corporation (FHLMC) and the Federal National Mortgage Association (FNMA).
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.
Asset-backed securities and structured financial products:

5.a

Asset-backed securities. Report in the appropriate columns the amortized cost and
fair value of all asset-backed securities (other than mortgage-backed securities), including
asset-backed commercial paper, not held for trading. Include asset-backed securities issued
by non-U.S. issuers.

Structured financial products. Report in the appropriate columns of the appropriate
subitems the amortized cost and fair value of all structured financial products not held for
trading. according to whether the product is a Include cash, synthetic, orand hybrid
instruments, including those . Include structured financial products issued by non-U.S.
issuers. Structured financial products generally convert a pool of assets (such as whole
loans, securitized assets, and bonds) and other exposures (such as derivatives) into products
that are tradable capital market debt instruments. Some of the more complex financial
product structures mix asset classes in order to create investment products that diversify risk.

5.b

(1) A cash instrument means that the instrument represents a claim against a reference pool
of assets.
(2) A synthetic instrument means that the investors do not have a claim against a reference
pool of assets; rather, the originating bank merely transfers the inherent credit risk of the
reference pool of assets by such means as a credit default swap, a total return swap, or
another arrangement in which the counterparty agrees upon specific contractual
covenants to cover a predetermined amount of losses in the loan pool.

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(3) A hybrid instrument means that the instrument is a mix of both cash and synthetic
instruments.
One of the more common cash instrument structured financial products is referred to as a
collateralized debt obligation (CDO). For example, include in this item investments in CDOs
for which the underlying collateral is a pool of trust preferred securities issued by U.S.
business trusts organized by financial institutions or real estate investment trusts. However,
exclude from this item investments in trust preferred securities issued by a single
U.S. business trust (report in Schedule RC-B, item 6.a, “Other domestic debt securities”).

Examples of oOther products to be reported in this item include synthetic structured financial
products (such as synthetic CDOs) that use credit derivatives and a reference pool of assets,
hybrid structured products that mix cash and synthetic instruments, collateralized bond
obligations (CBOs), resecuritizations such as CDOs squared or cubed (which are CDOs
backed primarily by the tranches of other CDOs), and other similar structured financial
products. For each column, the sum of items 5.b.(1) through 5.b.(3) must equal the sum of
Memorandum items 6.a through 6.g in the reports for June and December.

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Item No.

Caption and Instructions

5.b
(cont.)

Exclude from structured financial products:
(1) Mortgage-backed pass-through securities (report in Schedule RC-B, item 4, above).
(2) Collateralized mortgage obligations (CMOs), real estate mortgage investment conduits
(REMICs), CMO and REMIC residuals, stripped mortgage-backed securities, and
mortgage-backed commercial paper (report in Schedule RC-B, item 4, above).
(3) Asset-backed commercial paper not held for trading (report in Schedule RC-B, item 5.a,
above).

(4) Asset-backed securities that are primarily secured by one type of asset (report in
Schedule RC-B, item 5.a, above).

(5) Securities backed by loans that are commonly regarded as asset-backed securities rather
than collateralized loan obligations in the marketplace (report in Schedule RC-B, item 5.a,
above).
Cash instruments. Report in the appropriate columns the amortized cost and fair value of
structured financial products (as defined in Schedule RC-B, item 5.b, above) that are cash
instruments. A cash instrument means that the instrument represents a claim against a
reference pool of assets. For example, include investments in collateralized debt obligations
for which the underlying collateral is a pool of trust preferred securities issued by U.S.
business trusts organized by financial institutions or real estate investment trusts. However,
exclude investments in trust preferred securities issued by a single U.S. business trust (report
in Schedule RC-B, item 6.a, “Other domestic debt securities”).

5.b.(2)

Synthetic instruments. Report in the appropriate columns the amortized cost and fair value
of structured financial products (as defined in Schedule RC-B, item 5.b, above) that are
synthetic instruments. A synthetic instrument means that the investors do not have a claim
against a reference pool of assets; rather, the originating bank merely transfers the inherent
credit risk of the reference pool of assets by such means as a credit default swap, a total
return swap, or another arrangement in which the counterparty agrees upon specific
contractual covenants to cover a predetermined amount of losses in the loan pool.

5.b.(1)

Hybrid instruments. Report in the appropriate columns the amortized cost and fair value of
structured financial products (as defined in Schedule RC-B, item 5.b, above) that are hybrid
instruments. A hybrid instrument means that the instrument is a mix of both cash and
synthetic instruments.

5.b.(3)

Other debt securities. Report in the appropriate columns of the appropriate subitems the
amortized cost and fair value of all debt securities not held for trading that cannot properly be
reported in Schedule RC-B, items 1 through 5, above.
Exclude from other debt securities:
(1) All holdings of certificates of participation in pools of residential mortgages, collateralized
mortgage obligations (CMOs), real estate mortgage investment conduits (REMICs),
CMO and REMIC residuals, and stripped mortgage-backed securities (such as
interest-only strips (IOs), principal-only strips (POs), and similar instruments) (report in
Schedule RC-B, item 4, above).

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Item No.

Caption and Instructions

6
(cont.)

(2) Holdings of bankers acceptances and certificates of deposit (CDs), even if the CDs are
negotiable or have CUSIP numbers. (Report holdings of bankers acceptances as loans
in Schedule RC, item 4.a, if held for sale; item 4.b, if held for investment; and item 5, if
held for trading. Report holdings of CDs in Schedule RC, item 1.b, if not held for trading;
and item 5, if held for trading.)

6.a

(3) All securities that meet the definition of an “equity security” in ASC Topic 320,
Investments-Debt and Equity Securities (formerly FASB Statement No. 115, “Accounting
for Certain Investments in Debt and Equity Securities”), for example, common and
perpetual preferred stock. (See also the instructions to Schedule RC-B, item 7, and
Schedule RC-F, item 4.)
Other domestic debt securities. Report in the appropriate columns the amortized cost and
fair value of all other domestic debt securities not held for trading.
Other domestic debt securities include:

(1) Bonds, notes, debentures, equipment trust certificates, and commercial paper (except
asset-backed commercial paper) issued by U.S.-chartered corporations and other
U.S. issuers and not reportable elsewhere in Schedule RC-B.

(2) Preferred stock of U.S.-chartered corporations and business trusts that by its terms either
must be redeemed by the issuing corporation or trust or is redeemable at the option of the
investor (i.e., redeemable or limited-life preferred stock), including trust preferred
securities issued by a single U.S. business trust that are subject to mandatory
redemption.

(3) Detached U.S. Government security coupons and ex-coupon U.S. Government securities
held as the result of either their purchase or the bank's stripping of such securities
and Treasury receipts such as CATS, TIGRs, COUGARs, LIONs, and ETRs. Refer to the
Glossary entry for "coupon stripping, Treasury receipts, and STRIPS" for additional
information.
Exclude from other domestic debt securities investments in collateralized debt obligations for
which the underlying collateral is a pool of trust preferred securities issued by U.S. business
trusts (report as structured financial products in Schedule RC-B, item 5.b)..(1), “Cash
instruments”).
Other foreign debt securities. Report in the appropriate columns the amortized cost and
fair value of all other foreign debt securities not held for trading.

6.b

Other foreign debt securities include:
(1) Bonds, notes, debentures, equipment trust certificates, and commercial paper (except
asset-backed commercial paper) issued by non-U.S.-chartered corporations.

(2) Debt securities issued by foreign governmental units.

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Memoranda
Item No.

Caption and Instructions

2.d
(cont.)

will have been reported by next repricing date in Memorandum items 2.a.(1), 2.a.(2), 2.b.(1),
and 2.b.(2), above. However, these four Memorandum items may include floating rate debt
securities with a remaining maturity of more than one year, but on which the interest rate can
next change in one year or less; those debt securities should not be included in this
Memorandum item 2.d. The "Other mortgage-backed securities" included in this item will
have been reported by expected weighted average life in Memorandum items 2.c.(1) and
2.c.(2) above.

Amortized cost of held-to-maturity securities sold or transferred to available-for-sale or
trading securities during the calendar year-to-date. If the reporting bank has sold any
held-to-maturity debt securities or has transferred any held-to-maturity debt securities to the
available-for-sale or to trading securities during the calendar year-to-date, report the total
amortized cost of these held-to-maturity debt securities as of their date of sale or transfer.

NOTE: Memorandum Item 3 is to be completed semiannually in the June and December reports only.

Exclude the amortized cost of any held-to-maturity debt security that has been sold near
enough to (e.g., within three months of) its maturity date (or call date if exercise of the call is
probable) that interest rate risk is substantially eliminated as a pricing factor. Also exclude the
amortized cost of any held-to-maturity debt security that has been sold after the collection of a
substantial portion (i.e., at least 85 percent) of the principal outstanding at acquisition due to
prepayments on the debt security or, if the debt security is a fixed rate security, due to
scheduled payments payable in equal installments (both principal and interest) over its term.
Structured notes. Report in this item all structured notes included in the held-to-maturity and
available-for-sale accounts and reported in Schedule RC-B, items 2, 3, 5, and 6. In general,
structured notes are debt securities whose cash flow characteristics (coupon rate, redemption
amount, or stated maturity) depend upon one or more indices and/or that have embedded
forwards or options or are otherwise commonly known as "structured notes." Include as
structured notes any asset-backed securities (other than mortgage-backed securities) which
possess the aforementioned characteristics.

Structured notes include, but are not limited to, the following common structures:

(1) Floating rate debt securities whose payment of interest is based upon:
(a) a single index of a Constant Maturity Treasury (CMT) rate or a Cost of Funds Index
(COFI), or
(b) changes in the Consumer Price Index (CPI). However, exclude from structured
notes all U.S. Treasury Inflation-Protected Securities (TIPS).

(2) Step-up Bonds. Step-up securities initially pay the investor an above-market yield for a
short noncall period and then, if not called, "step up" to a higher coupon rate (which will be
below current market rates). The investor initially receives a higher yield because of
having implicitly sold one or more call options. A step-up bond may continue to contain
call options even after the bond has stepped up to the higher coupon rate. A multistep
bond has a series of fixed and successively higher coupons over its life. At each call
date, if the bond is not called, the coupon rate increases.

(3) Index Amortizing Notes (IANs). IANs repay principal according to a predetermined
amortization schedule that is linked to the level of a specific index (usually the London
Interbank Offered Rate - LIBOR - or a specified prepayment rate). As market interest
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RC-B - SECURITIES

Memoranda
Item No.

Caption and Instructions

4
(cont.)

(2) Callable federal agency securities that have continuous call features after an explicit call
date, except step-up bonds (which are structured notes).
The mere existence of simple caps and floors does not necessarily make a security a
structured note. Securities with adjusting caps or floors (i.e., caps or floors that change over
time), however, are structured notes. Therefore, the following types of securities should not
be reported as structured notes:

(2) Mortgage-backed securities.

(1) Variable rate securities, including Small Business Administration "Guaranteed Loan Pool
Certificates," unless they have features of securities which are commonly known as
structured notes (i.e., they are inverse, range, or de-leveraged floaters, index amortizing
notes, dual index or variable principal redemption or step-up bonds), or have adjusting
caps or floors.

4.a

Amortized cost (of structured notes). Report the amortized cost of all structured notes
included in the held-to-maturity and available-for-sale accounts. The amortized cost of these
securities will have been reported in columns A and C of the body of Schedule RC-B.

4.b

Fair value (of structured notes). Report the fair (market) value of structured notes reported
in Memorandum item 4.a above. The fair value of these securities will have been reported in
columns B and D of the body of Schedule RC-B. Do not combine or otherwise net the fair
value of any structured note with the fair or book value of any related asset, liability, or
derivative instrument.

Not applicable.

NOTE: Memorandum items 6.a through 6.g are to be completed semiannually in the June and December
reports only.
Structured financial products by underlying collateral or reference assets. Report in the
appropriate columns of the appropriate subitems the amortized cost and fair value of all
structured financial products (as defined in Schedule RC-B, item 5.b, above) not held for
trading by the predominant type of collateral or reference assets supporting the product. For
each column, the sum of Memorandum items 6.a through 6.g must equal the sum of
Schedule RC-B, items 5.b.(1) through 5.b.(3).

6.a

Trust preferred securities issued by financial institutions. Report in the appropriate
columns the amortized cost and fair value of structured financial products supported
predominantly by trust preferred securities issued by financial institutions.

6.b

Trust preferred securities issued by real estate investment trusts. Report in the
appropriate columns the amortized cost and fair value of structured financial products
supported predominantly by trust preferred securities issued by real estate investment trusts.

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Memoranda
Item No.
6.c

Caption and Instructions
Corporate and similar loans. Report in the appropriate columns the amortized cost and fair
value of structured financial products supported predominantly by corporate and similar loans.
Exclude securities backed by loans that are commonly regarded as asset-backed securities
rather than collateralized loan obligations in the marketplace (report in Schedule RC-B,
item 5.a).
1-4 family residential MBS issued or guaranteed by U.S. government-sponsored
enterprises (GSEs). Report in the appropriate columns the amortized cost and fair value of
structured financial products supported predominantly by 1-4 family residential mortgagebacked securities issued or guaranteed by U.S. government-sponsored enterprises.

6.e

1-4 family residential MBS not issued or guaranteed by GSEs. Report in the appropriate
columns the amortized cost and fair value of structured financial products supported
predominantly by 1-4 family residential mortgage-backed securities not issued or guaranteed
by U.S. government-sponsored enterprises.

6.f

Diversified (mixed) pools of structured financial products. Report in the appropriate
columns the amortized cost and fair value of structured financial products supported
predominantly by diversified (mixed) pools of structured financial products. Include such
products as CDOs squared and cubed (also known as “pools of pools”).

6.g

Other collateral or reference assets. Report in the appropriate columns the amortized cost
and fair value of structured financial products supported predominantly by other types of
collateral or reference assets not identified above.

6.d

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RC-C - LOANS AND LEASES

Part I. (cont.)
Memoranda
Item No.

Caption and Instructions

NOTE: Memorandum items 7.a. and 7.b. are to be completed semiannually in the June and December
reports only.
Purchased credit-impaired loans held for investment accounted for in accordance with
FASB ASC Subtopic 310-30. Report in the appropriate subitem the outstanding balance
and amount of "purchased credit-impaired loans" reported as held for investment in
Schedule RC-C, Part I, items 1 through 9, and accounted for in accordance with 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”). Purchased credit-impaired loans are loans that a bank
has purchased, including those acquired in a purchase business combination, where there is
evidence of deterioration of credit quality since the origination of the loan and it is probable, at
the purchase date, that the bank will be unable to collect all contractually required payments
receivable. Loans held for investment are those that the bank has the intent and ability to
hold for the foreseeable future or until maturity or payoff.

7.a

Outstanding balance. Report the outstanding balance of all purchased credit-impaired loans
reported as held for investment in Schedule RC-C, Part I, items 1 through 9. The outstanding
balance is the undiscounted sum of all amounts, including amounts deemed principal,
interest, fees, penalties, and other under the loan, owed to the bank at the report date,
whether or not currently due and whether or not any such amounts have been charged off by
the bank. However, the outstanding balance does not include amounts that would be accrued
under the contract as interest, fees, penalties, and other after the report date.

7.b

Amount included in Schedule RC-C, Part I, items 1 through 9. Report the amount of,
i.e., the recorded investment in, all purchased credit-impaired loans reported as held for
investment. The recorded investment in these loans will have been included in
Schedule RC-C, Part I, items 1 through 9.

NOTE: Memorandum item 8.a is to be completed semiannually in the June and December reports only.
Memorandum items 8.b and 8.c are to be completed annually in the December report only.
Closed-end loans with negative amortization features secured by 1-4 family residential
properties. Report in the appropriate subitem the amount of closed-end loans with negative
amortization features secured by 1-4 family residential properties and, if certain criteria are
met, the maximum remaining amount of negative amortization contractually permitted on
these loans and the total amount of negative amortization included in the amount of these
loans. Negative amortization refers to a method in which a loan is structured so that the
borrower’s minimum monthly (or other periodic) payment is contractually permitted to be less
than the full amount of interest owed to the lender, with the unpaid interest added to the loan’s
principal balance. The contractual terms of the loan provide that if the borrower allows the
principal balance to rise to a pre-specified amount or maximum cap, the loan payments are
then recast to a fully amortizing schedule. Negative amortization features may be applied to
either adjustable rate mortgages or fixed rate mortgages, the latter commonly referred to as
graduated payment mortgages (GPMs).

Exclude reverse 1-4 family residential mortgage loans as described in the instructions for
Schedule RC-C, Part I, item 1.c.

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Part I. (cont.)
Memoranda
Item No.

Caption and Instructions

NOTE: Memorandum item 8.a is to be completed by all banks semiannually in the June and December
reports only.
Total amount of closed-end loans with negative amortization features secured by
1-4 family residential properties (included in Schedule RC-C, Part I, items 1.c.(2)(a)
and (b)). Report the total amount of, i.e., the recorded investment in, closed-end loans
secured by 1-4 family residential properties whose terms allow for negative amortization.
The amounts included in this item will also have been reported in Schedule RC-C, Part I,
items 1.c.(2)(a) and (b).

8.a

NOTE: Memorandum items 8.b and 8.c are to be completed annually in the December report only by
banks that had closed-end loans with negative amortization features secured by 1-4 family residential
properties (as reported in Schedule RC-C, Part I, Memorandum item 8.a) as of the previous December 31
report date that exceeded the lesser of $100 million or 5 percent of total loans and leases held for
investment and held for sale (as reported in Schedule RC-C, Part I, item 12,) as of the previous
December 31 report date.
Total maximum remaining amount of negative amortization contractually permitted on
closed-end loans secured by 1-4 family residential properties. For all closed-end loans
secured by 1-4 family residential properties whose terms allow for negative amortization (that
were reported in Schedule RC-C, Part I, Memorandum item 8.a), report the total maximum
remaining amount of negative amortization permitted under the terms of the loan contract
(i.e., the maximum loan principal balance permitted under the negative amortization cap less
the principal balance of the loan as of the quarter-end report date).

8.c

Total amount of negative amortization on closed-end loans secured by 1-4 family
residential properties included in the amount reported in Memorandum item 8.a above.
For all closed-end loans secured by 1-4 family residential properties whose terms allow for
negative amortization, report the total amount of negative amortization included in the amount
(i.e., the total amount of interest added to the original loan principal balance that has not yet
been repaid) reported in Schedule RC-C, Part I, Memorandum item 8.a above. Once a loan
reaches its maximum principal balance, the amount of negative amortization included in the
amount should continue to be reported until the principal balance of the loan has been
reduced through cash payments below the original principal balance of the loan.

8.b

Loans secured by 1-4 family residential properties in process of foreclosure. Report the
total unpaid principal balance of loans secured by 1-4 family residential properties) included in
Schedule RC-C, Part I, item 1.c, for which formal foreclosure proceedings to seize the real
estate collateral have started and are ongoing as of quarter-end, regardless of the date the
foreclosure procedure was initiated. Loans should be classified as in process of foreclosure
according to local requirements. If a loan is already in process of foreclosure and the
mortgagor files a bankruptcy petition, the loan should continue to be reported as in process of
foreclosure until the bankruptcy is resolved. Exclude loans where the foreclosure process has
been completed and the bank reports the real estate collateral as “Other real estate owned” in
Schedule RC, item 7. This item should include both closed-end and open-end 1-4 family
residential mortgage loans that are in process of foreclosure.

10 and 11 Not applicable.

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Part I. (cont.)
Memoranda
Item No.

Caption and Instructions

NOTE: Memorandum item 12 is to be completed semiannually in the June and December reports only.
Loans (not subject to the requirements of FASB ASC 310-30) and leases held for
investment that were acquired in business combinations with acquisition dates in
the current calendar year. Report in the appropriate column the specified information on
loans and leases held for investment purposes that were acquired in a business combination,
as prescribed under ASC Topic 805, Business Combinations (formerly FASB Statement
No. 141(R), “Business Combinations”), with an acquisition date in the current calendar year.
1
The acquisition date is the date on which the bank obtains control of the acquiree. If the
reporting bank was acquired in a transaction during the calendar year pursuant to ASC
Topic 805 and push down accounting was applied, report the specified information on the
bank’s loans and leases reported as held for investment after the application of push down
accounting.

Acquired Lloans and leases acquired in the current calendar year should be reported in this
item each quarter after their acquisition date through the end of the calendar year of
acquisition in the reports for June 30 and December 31 of the current calendar year, as
appropriate, regardless of whether the bank still holds the loans and leases. For example,
loans and leases acquired in a business combination with an acquisition date in the first six
months ot the current calendar year should be reported in this item in the June 30 and
December 31 reports for the current calendar year; loans and leases acquired in the second
six months of the current calendar year should be reported in the December 31 report for the
current calendar year.

Exclude purchased credit-impaired loans held for investment that are accounted for in
accordance with 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”) (report information on such loans in
Schedule RC-C, Memorandum item 7). (For further information, see the Glossary entry for
“purchased credit-impaired loans and debt securities.”)
Column Instructions

Column A, Fair value of acquired loans and leases at acquisition date: Report in this
column the total fair value of acquired loans and leases held for investment at the acquisition
date (see the Glossary entry for "fair value").
Column B, Gross contractual amounts receivable at acquisition date: Report in this
column the gross contractual amounts receivable, i.e., the total undiscounted amount of all
uncollected contractual principal and contractual interest payments on the receivable, both
past due, if any, and scheduled to be paid in the future, on the acquired loans and leases held
for investment at the acquisition date.

Control has the meaning of “controlling financial interest” in ASC Subtopic 810-10, Consolidation – Overall
(formerly Accounting Research Bulletin No. 51, “Consolidated Financial Statements,” as amended).

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Item No.
6.d

RC-K – AVERAGES

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

6.d.(1)

Credit cards. Report the quarterly average for credit cards (as defined for Schedule RC-C,
Part I, item 6.a).

6.d.(2)

NOTE: Item 7 is to be completed by banks that have $100 million or more in total assets.
Not applicable.Trading assets. Report the quarterly average for trading assets (as defined
for Schedule RC, item 5). Trading assets include trading derivatives with positive fair values.

Lease financing receivables (net of unearned income). Report the quarterly average for
lease financing receivables, net of unearned income (as defined for Schedule RC-C, Part I,
item 10).

Total assets. Report the quarterly average for the bank's total assets, as defined for "Total
assets," on Schedule RC, item 12, except that this quarterly average should reflect all debt
securities (not held for trading) at amortized cost and available-for-sale equity securities with
readily determinable fair values at the lower of cost or fair value, and equity securities without
readily determinable fair values at historical cost. In addition, to the extent that net deferred
tax assets included in the bank's total assets, if any, include the deferred tax effects of any
unrealized holding gains and losses on available-for-sale debt securities, these deferred tax
effects may be excluded from the determination of the quarterly average for total assets. If
these deferred tax effects are excluded, this treatment must be followed consistently over
time.

This item is not the sum of items 1 through 8 above.

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RC-L – OFF-BALANCE SHEET ITEMS

Caption and Instructions

1.b
(cont.)

Banks that have either $300 million or more in total assets or $300 million or more in credit
card lines (as reported in Schedule RC, item 12, and Schedule RC-L, item 1.b, respectively,
as of June 30 of the previous calendar year) should also report a breakdown of their credit
card lines between unused consumer credit card lines (item 1.b.(1)) and other unused credit
card lines (item 1.b.(2)). The sum of Schedule RC-L, items 1.b.(1) and 1.b.(2), must equal
Schedule RC-L, item 1.b.

1.b.(1)

Unused consumer credit card lines. Report the unused portions of all commitments to
extend credit to individuals for household, family, and other personal expenditures through
credit cards that are included in Schedule RC-L, item 1.b, above.

1.b.(2)

Other unused credit card lines. Report the unused portions of all commitments to extend
credit to customers through credit cards for purposes other than household, family, and other
personal expenditures that are included in Schedule RC-L, item 1.b., above. Include, for
example, unused credit card lines under "corporate" or "business" credit card programs under
which credit cards are issued to one or more of a company's employees for business-related
uses.

1.c.(1)

Commitments to fund commercial real estate, construction, and land development
loans secured by real estate. Report in the appropriate subitem the unused portions of
commitments to extend credit for the specific purpose of financing commercial and multifamily
residential properties (e.g., business and industrial properties, hotels, motels, churches,
hospitals, and apartment buildings), provided that such commitments, when funded, would be
reportable as either loans secured by multifamily residential properties in Schedule RC-C,
Part I, item 1.d, or loans secured by nonfarm nonresidential properties in Schedule RC-C,
Part I, item 1.e.

Item No.

Also include the unused portions of commitments to extend credit for the specific purpose of
financing (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, provided that such commitments, when funded,
would be reportable as loans secured by real estate in Schedule RC-C, Part I, item 1.a,
"Construction, land development, and other land loans." 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 loan proceeds the bank is obligated to advance as
construction progress payments.

Do not include general lines of credit that a borrower, at its option, may draw down to finance
construction and land development (report in Schedule RC-L, item 1.c.(2) or item 1.e.(1),
below, as appropriate).

1.c.(1)(a)

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1-4 family residential construction loan commitments. Report the unused portions of
commitments to extend credit for the specific purpose of constructing 1-4 family residential
properties, provided that such commitments, when funded, would be reportable as loans
secured by real estate in Schedule RC-C, Part I, item 1.a.(1), “1-4 family residential
construction loans."

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Caption and Instructions

1.c.(1)(b)

Commercial real estate, other construction loan, and land development loan
commitments. Report the unused portions of all other commitments to fund commercial real
estate, construction, and land development loans secured by real estate (as defined for
Schedule RC-L, item 1.c.(1)) other than commitments to fund 1-4 family residential
construction (as defined for Schedule RC-L, item 1.c.(1)(a)).

1.c.(2)

Commitments to fund commercial real estate, construction, and land development
loans not secured by real estate. Report the unused portions of all commitments to extend
credit for the specific purpose of financing commercial and residential real estate activities,
e.g., acquiring, developing, and renovating commercial and residential real estate, provided
that such commitments, when funded, would be reportable as "Commercial and industrial
loans" in Schedule RC-C, Part I, item 4, or as "Other loans" in Schedule RC-C, Part I,
item 9.b. Include in this item loan proceeds the bank is obligated to advance as construction
progresses.

Item No.

Such commitments generally may include:

(1) commitments to extend credit for the express purpose of financing real estate ventures as
evidenced by loan documentation or other circumstances connected with the loan; or
(2) commitments made to organizations or individuals 80 percent of whose revenue or assets
are derived from or consist of real estate ventures or holdings.
Exclude from this item all commitments that, when funded, would be reportable as "Loans
secured by real estate" in Schedule RC-C, Part I, item 1. Also exclude commitments made to
commercial and industrial firms where the sole purpose for the financing is to construct a
factory or office building to house the company's operations or employees.
Not applicable.Securities underwriting. Report the unsold portion of the reporting bank's
own takedown in securities underwriting transactions. Include note issuance facilities (NIFs)
and revolving underwriting facilities (RUFs) in this item.

1.d

Other unused commitments. Report in the appropriate subitem the unused portion of all
commercial and industrial loan commitments, commitments for loans to financial institutions,
and all other commitments not reportable in Schedule RC-L, items 1.a through 1.c.(2)d.,
above. Include commitments to extend credit through overdraft facilities or commercial lines
of credit, retail check credit and related plans, and those overdraft protection programs in
which the bank advises account holders of the available amount of protection.

1.e

1.e.(1)

Commercial and industrial loans. Report the unused portions of commitments to extend
credit for commercial and industrial purposes, i.e., commitments that, when funded, would be
reportable as commercial and industrial loans in Schedule RC-C, Part I, item 4, “Commercial
and industrial loans." Exclude unused credit card lines to commercial and industrial
enterprises (report in Schedule RC-L, item 1.b, and, if applicable, item 1.b.(2), above).

1.e.(2)

Loans to financial institutions. Report the unused portions of commitments to extend
credit to financial institutions, i.e., commitments that, when funded, would be reportable either
as loans to depository institutions in Schedule RC-C, Part I, item 2, “Loans to depository
institutions and acceptances of other banks," or as loans to nondepository financial institutions
in Schedule RC-C, Part I, item 9.a, “Loans to nondepository financial institutions.”

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Item No.

Caption and Instructions

1.e.(3)

All other unused commitments. Report the unused portions of commitments not reportable
in Schedule RC-L, items 1.a through 1.e.(2), above.

Include commitments to extend credit secured by 1-4 family residential properties, except
(a) revolving, open-end lines of credit secured by 1-4 family residential properties (e.g., home
equity lines), which should be reported in Schedule RC-L, item 1.a, above, (b) commitments
for 1-4 family residential construction and land development loans (that are secured by such
properties), which should be reported in Schedule RC-L, item 1.c.(1), above, and
(c) commitments that meet the definition of a derivative and must be accounted for in
accordance with ASC Topic 815, Derivatives and Hedging (formerly FASB Statement
No. 133, “Accounting for Derivative Instruments and Hedging Activities,” as amended),
which should be reported in Schedule SU, item 1.
Also include note issuance facilities (NIFs), revolving underwriting facilities (RUFs), and the
unsold portion of the reporting bank’s own takedown in securities underwriting transactions.

General Instructions for Standby Letters of Credit – Originating banks must report in
items 2 and 3 the full amount outstanding and unused of financial and performance standby
letters of credit, respectively. Include those standby letters of credit that are collateralized by
cash on deposit, that have been acquired from others, and in which participations have been
conveyed to others where (a) the originating and issuing bank is obligated to pay the full
amount of any draft drawn under the terms of the standby letter of credit and (b) the
participating banks have an obligation to partially or wholly reimburse the originating bank,
either directly in cash or through a participation in a loan to the account party.

2 and 3

For syndicated standby letters of credit where each bank has a direct obligation to the
beneficiary, each bank must report only its share in the syndication. Similarly, if several banks
participate in the issuance of a standby letter of credit under a bona fide binding agreement
which provides that (a) regardless of any event, each participant shall be liable only up to a
certain percentage or to a certain amount and (b) the beneficiary is advised and has agreed that
each participating bank is only liable for a certain portion of the entire amount, each bank shall
report only its proportional share of the total standby letter of credit.
For a financial or performance standby letter of credit that is in turn backed by a financial
standby letter of credit issued by another bank, each bank must report the entire amount of the
standby letter of credit it has issued in either item 2 or item 3 below, as appropriate.

Financial standby letters of credit. Report the amount outstanding and unused as of the
report date of all financial standby letters of credit (and all legally binding commitments to issue
financial standby letters of credit) issued by any office of the bank. A financial standby letter of
credit irrevocably obligates the bank to pay a third-party beneficiary when a customer (account
party) fails to repay an outstanding loan or debt instrument. (See the Glossary entry for "letter
of credit" for further information.)

Exclude from financial standby letters of credit:
(1) Financial standby letters of credit where the beneficiary is a consolidated subsidiary of the
reporting bank.
(2) Performance standby letters of credit.
(3) Signature or endorsement guarantees of the type associated with the clearing of
negotiable instruments or securities in the normal course of business.

FFIEC 051

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RC-L – OFF-BALANCE SHEET ITEMS

Page 78

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RC-L – OFF-BALANCE SHEET ITEMS

Item No.

Caption and Instructions

9
(cont.)

(6) The gross amount (stated in U.S. dollars) of all spot foreign exchange contracts
committing the reporting bank to purchase foreign (non-U.S.) currencies and U.S. dollar
exchange that are outstanding as of the report date. A spot contract is an agreement
for the immediate delivery, usually within two business days or less (depending on market
convention), of a foreign currency at the prevailing cash market rate. For information
on the reporting of spot foreign exchange contracts, refer to the instructions for
Schedule RC-L, item 8, in the instructions for the FFIEC 031 and FFIEC 041 Call Reports.
All other off-balance sheet assets. Report to the extent feasible and practicable all
significant types of off-balance sheet assets not covered in other items of this schedule.
Exclude all items which are required to be reported as assets on the balance sheet of the
Consolidated Report of Condition (Schedule RC), contingent assets arising in connection with
litigation in which the reporting bank is involved, and assets held in or administered by the
reporting bank's trust department.

Report only the aggregate amount of those types of "other off-balance sheet assets" that
individually exceed 10 percent of the bank's total equity capital reported in Schedule RC,
item 27.a. If the bank has no types of "other off-balance sheet assets" that individually
exceed 10 percent of total equity capital for which the reporting is feasible and practicable,
report a zero.

NOTE: items 10.b through 10.e are to be reported semiannually in the June and December reports only.
.
Disclose in items 10.b through 10.e each type of "other off-balance sheet assets" reportable in
this item, and dollar amount of the off-balance sheet asset, that individually exceeds
25 percent of the bank's total equity capital reported in Schedule RC, item 27.a. For each
type of off-balance sheet asset that exceeds this disclosure threshold, describe the asset with
a clear and concise caption in items 10.b through 10.e. These descriptions should not exceed
50 characters in length (including space between words).

Include as "other off-balance sheet assets" such items as:

(1) Contracts for the sale of when-issued securities that are excluded from the requirements
of ASC Topic 815, Derivatives and Hedging (formerly FASB Statement No. 133,
“Accounting for Derivative Instruments and Hedging Activities,” as amended), (and
therefore not reported as forward contracts in Schedule RC-L, item 12.b, below), and
accounted for on a settlement-date basis.

(2) Internally developed intangible assets.

NOTE: Items 11.a and 11.b are to be reported semiannually in the June and December reports only.
11

Year-to-date merchant credit card sales volume. Merchant processing is the settlement of
credit card transactions for merchants. It is a separate and distinct business line from credit
card issuing. Merchant processing activity involves obtaining authorization for credit card
sales transactions, gathering sales information from the merchant, collecting funds from the
card-issuing bank or business, and crediting the merchants' accounts for their sales.
An acquiring bank is a bank that initiates and maintains contractual agreements with
merchants, agent banks, and third parties (e.g., independent sales organizations and member
service providers) for the purpose of accepting and processing credit card transactions. An
acquiring bank has liability for chargebacks for the merchants' sales activity.

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Page 79

FFIEC 051

Item No.
1.b

RC-M - MEMORANDA

Caption and Instructions
Number of executive officers, directors, and principal shareholders to whom the
amount of all extensions of credit by the reporting bank (including extensions of credit
to related interests) equals or exceeds the lesser of $500,000 or 5 percent of total
capital as defined for this purpose in agency regulations. Report the number of
executive officers, directors, and principal shareholders of the reporting bank to whom the
amount of all extensions of credit by the reporting bank outstanding as of the report date
equals or exceeds the lesser of $500,000 or five percent of total capital as defined for this
purpose in regulations issued by the bank's primary federal bank supervisory authority.

Intangible assets other than goodwill. Report in the appropriate subitem the carrying
amount of intangible assets other than goodwill. Intangible assets primarily result from
business combinations accounted for under the acquisition method in accordance with
ASC Topic 805, Business Combinations (formerly FASB Statement No. 141(R), “Business
Combinations”), from acquisitions of portions or segments of another institution's business
such as mortgage servicing portfolios and credit card portfolios, and from the sale or
securitization of financial assets with servicing retained.

For purposes of this item, the amount of all extensions of credit by the reporting bank to an
executive officer, director, or principal shareholder includes all extensions of credit by the
reporting bank to the related interests of the executive officer, director, or principal
shareholder. Furthermore, an extension of credit made by the reporting bank to more than
one of its executive officers, directors, principal shareholders, or related interests thereof
must be included in full in the amount of all extensions of credit for each such executive
officer, director, or principal shareholder.

An identifiable intangible asset with a finite life (other than a servicing asset) should be
amortized over its estimated useful life and should be reviewed at least quarterly to determine
whether events or changes in circumstances indicate that its carrying amount may not be
recoverable. If this review indicates that the carrying amount may not be recoverable, the
identifiable intangible asset should be tested for recoverability (impairment) in accordance
with ASC Topic 360, Property, Plant, and Equipment (formerly FASB Statement No. 144,
“Accounting for the Impairment or Disposal of Long-Lived Assets”). An impairment loss shall
be recognized if the carrying amount of the identifiable intangible asset is not recoverable and
this amount exceeds the asset’s fair value. The carrying amount is not recoverable if it
exceeds the sum of the undiscounted expected future cash flows from the identifiable
intangible asset. An impairment loss is recognized by writing the identifiable intangible asset
down to its fair value (which becomes the new accounting basis of the intangible asset), with a
corresponding charge to expense (which should be reported in Schedule RI, item 7.c.(2)).
Subsequent reversal of a previously recognized impairment loss is prohibited.

An identifiable intangible asset with an indefinite useful life should not be amortized, but
should be tested for impairment at least annually in accordance with ASC Topic 350,
Intangibles-Goodwill and Other (formerly FASB Statement No. 142, “Goodwill and Other
Intangible Assets”).

2.a

FFIEC 051

Mortgage servicing assets. Report the carrying amount of mortgage servicing assets,
i.e., contracts to service loans secured by real estate (as defined for Schedule RC-C, Part I,
item 1, in the Glossary entry for "Loans secured by real estate") under which the estimated
future revenues from contractually specified servicing fees, late charges, and other ancillary
revenues are expected to more than adequately compensate the servicer for performing the
servicing. A mortgage servicing contract is either (a) undertaken in conjunction with selling or
securitizing the mortgages being serviced or (b) purchased or assumed separately. For
mortgage servicing assets accounted for under the amortization method, the carrying amount
is the unamortized cost of acquiring the mortgage servicing contracts, net of any
RC-M-2
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RC-M - MEMORANDA

Item No.

Caption and Instructions

2.a
(cont.)

related valuation allowances. For mortgage servicing assets accounted for under the fair
value method, the carrying amount is the fair value of the mortgage servicing contracts.
Exclude servicing assets resulting from contracts to service financial assets other than loans
secured by real estate (report nonmortgage servicing assets in Schedule RC-M, item 2.cb).
For further information, see the Glossary entry for "servicing assets and liabilities."

2.a.(1)

Estimated fair value of mortgage servicing assets. Report the estimated fair value of the
capitalized mortgage servicing assets reported in Schedule RC-M, item 2.a.

Purchased credit card relationships and nonmortgage servicing assetsGoodwill.
Report the carrying amount of goodwill as adjusted for any impairment losses and, if the
private company goodwill accounting alternative has been elected, the amortization of
goodwill. Except when this accounting alternative has been elected, goodwill should not be
amortized. However, regardless of whether goodwill is amortized, it must be tested for
impairment as described in the Glossary entry for “goodwill.” See "acquisition method" in the
Glossary entry for "business combinations" for guidance on the recognition and initial
measurement of goodwill acquired in a business combination. Report the carrying amount of
purchased credit card relationships plus the carrying amount of nonmortgage servicing
assets.

2.b

According to ASC Topic 820, Fair Value Measurement (formerly FASB Statement No. 157,
“Fair Value Measurements”), fair value is defined as the price that would be received to sell
an asset in an orderly transaction between market participants in the asset’s principal (or most
advantageous) market at the measurement date. For purposes of this item, the reporting
bank should determine the fair value of mortgage servicing assets in the same manner that it
determines the fair value of these assets for other financial reporting purposes, consistent
with the guidance in ASC Topic 820.

Purchased credit card relationships represent the right to conduct ongoing credit card
business dealings with the cardholders. In general, purchased credit card relationships are
an amount paid in excess of the value of the purchased credit card receivables. Such
relationships arise when the reporting bank purchases existing credit card receivables and
also has the right to provide credit card services to those customers. Purchased credit card
relationships may also be acquired when the reporting bank purchases an entire depository
institution.

Purchased credit card relationships shall be carried at amortized cost. Management of the
institution shall review the carrying amount at least quarterly, adequately document this
review, and adjust the carrying amount as necessary. This review should determine whether
unanticipated acceleration or deceleration of cardholder payments, account attrition, changes
in fees or finance charges, or other events or changes in circumstances indicate that the
carrying amount of the purchased credit card relationships may not be recoverable. If this
review indicates that the carrying amount may not be recoverable, the intangible asset should
be tested for recoverability, and any impairment loss should be recognized, as described in
the instruction for Schedule RC-M, item 2.
Nonmortgage servicing assets are contracts to service financial assets, other than loans
secured by real estate (as defined for Schedule RC-C, Part I, item 1) under which the
estimated future revenues from contractually specified servicing fees, late charges, and other
ancillary revenues are expected to more than adequately compensate the servicer for
performing the servicing. A nonmortgage servicing contract is either (a) undertaken in
conjunction with selling or securitizing the nonmortgage financial assets being serviced or
(b) purchased or assumed separately. For nonmortgage servicing assets accounted for
under the amortization method, the carrying amount is the unamortized cost of acquiring the
nonmortgage servicing contracts, net of any related valuation allowances. For nonmortgage
servicing assets accounted for under the fair value method, the carrying amount is the fair
value of the nonmortgage servicing contracts. For further information, see the Glossary entry
for "servicing assets and liabilities."

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Item No.
2.c

RC-M - MEMORANDA

Caption and Instructions
All other identifiable intangibles. Report the carrying amount of all other specifically
identifiable intangible assets such as core deposit intangibles, and favorable leasehold rights,
purchased credit card relationships, and nonmortgage servicing assets. Exclude goodwill,
which should be reported in Schedule RC, item 10.a.

Nonmortgage servicing assets are contracts to service financial assets, other than loans
secured by real estate (as defined for Schedule RC-C, Part I, item 1) under which the
estimated future revenues from contractually specified servicing fees, late charges, and other
ancillary revenues are expected to more than adequately compensate the servicer for
performing the servicing. A nonmortgage servicing contract is either (a) undertaken in
conjunction with selling or securitizing the nonmortgage financial assets being serviced or
(b) purchased or assumed separately. For nonmortgage servicing assets accounted for
under the amortization method, the carrying amount is the unamortized cost of acquiring the
nonmortgage servicing contracts, net of any related valuation allowances. For nonmortgage
servicing assets accounted for under the fair value method, the carrying amount is the fair
value of the nonmortgage servicing contracts. For further information, see the Glossary entry
for "servicing assets and liabilities."
Total. Report the sum of items 2.a, 2.b, and 2.c. This amount must equal Schedule RC,
item 10.b, "Other iIntangible assets."

Other real estate owned. Report in the appropriate subitem the net book value of all real
estate other than (1) bank premises owned or controlled by the bank and its consolidated
subsidiaries (which should be reported in Schedule RC, item 6) and (2) direct and indirect
investments in real estate ventures (which should be reported in Schedule RC, item 9).

2.d

Also exclude real estate property collateralizing a fully or partially government-guaranteed
mortgage loan for which the institution has received physical possession and the conditions
specified 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"), were met upon foreclosure. In such a situation, rather than recognizing
other real estate owned upon foreclosure, the institution must recognize a separate “other
receivable,” which should be measured based on the amount of the loan balance (principal
and interest) expected to be recovered from the guarantor. Report such a receivable in
Schedule RC-F, item 6, “All other assets.” For further information, see the Glossary entry for
“Foreclosed assets.”

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RC-M - MEMORANDA

Page 82

FFIEC 051

Item No.
3.b

RC-M - MEMORANDA

Caption and Instructions
Farmland. Report the net book value of all other real estate owned in the form of, or for
which the underlying real estate consists of, farmland.
For further information on the meaning of the term "farmland," see the instruction to
Schedule RC-C, Part I, item 1.b. However, the amount to be reported in this item should
include all other real estate owned in the form of, or for which the underlying real estate
consists of, farmland, not just real estate acquired through foreclosure on loans that were
originally reported as "loans secured by farmland" in Schedule RC-C, Part I, item 1.b.

3.c

1-4 family residential properties. Report the net book value of all other real estate owned in
the form of, or for which the underlying real estate consists of, 1-to-4 family residential
properties.

IEnxclude in this item 1-to-4 family residential properties resulting from foreclosures on real
estate collateralizing government-guaranteed 1-to-4 family residential mortgage loans,
delinquent “GNMA loans” (report in Schedule RC-M, item 3.f, or, if the conditions specified in
ASC Subtopic 310-40 requiring recognition of a separate “other receivable” were not met
upon foreclosure., (If the specified conditions were met upon foreclosure, report the separate
“other receivable” in Schedule RC-F, item 6, “All other assets.”). For further information, see
the Glossary entry for “foreclosed assets.”
For further information on the meaning of the term "1-4 family residential properties," see the
instruction to Schedule RC-C, Part I, item 1.c. However, the amount to be reported in this
item should include all other real estate owned in the form of, or for which the underlying real
estate consists of, 1-to-4 family residential properties, not just real estate acquired through
foreclosure on loans that were originally reported as "loans secured by 1-4 family residential
properties" in Schedule RC-C, Part I, item 1.c.
3.d

Multifamily (5 or more) residential properties. Report the net book value of all other real
estate owned in the form of, or for which the underlying real estate consists of, multifamily
residential properties.

For further information on the meaning of the term "multifamily residential properties," see
Schedule RC-C, Part I, item 1.d. However, the amount to be reported in this item should
include all other real estate owned in the form of, or for which the underlying real estate
consists of, multifamily residential properties, not just real estate acquired through foreclosure
on loans that were originally reported as "loans secured by multifamily residential properties"
in Schedule RC-C, Part I, item 1.d.
Nonfarm nonresidential properties. Report the net book value of all other real estate
owned in the form of, or for which the underlying real estate consists of, nonfarm
nonresidential properties.

3.e

For further information on the meaning of the term "nonfarm nonresidential properties," see
the instruction to Schedule RC-C, Part I, item 1.e. However, the amount to be reported in this
item should include all other real estate owned in the form of, or for which the underlying real
estate consists of, nonfarm nonresidential properties, not just real estate acquired through
foreclosure on loans that were originally reported as "loans secured by nonfarm
nonresidential properties" in Schedule RC-C, Part I, item 1.e.

3.f

Foreclosed properties from “GNMA loans.” Report the net book value of all other real
estate owned resulting from foreclosures on real estate collateralizing delinquent “GNMA
loans” if the mortgage loans did not meet the conditions specified in ASC Subtopic 310-40
requiring recognition of a separate “other receivable.”

3.gf

Total. Report the sum of items 3.a through 3.fe. This amount must equal Schedule RC,
item 7, "Other real estate owned."

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RC-N - PAST DUE

Memoranda
Item No.

Caption and Instructions
Total loans restructured in troubled debt restructurings included in Schedule RC-N,
items 1 through 7, above. For columns A through C, report the sum of Memorandum
items 1.a.(1) through 1.f. Exclude amounts reported in Memorandum items 1.f.(1) through
1.f.(5) when calculating the total in this Memorandum item 1.g.

Loans to finance commercial real estate, construction, and land development activities
included in Schedule RC-N, items 4 and 7, above. Report in the appropriate column the
amount of loans to finance commercial real estate, construction, and land development
activities not secured by real estate included in Schedule RC-C, part I, Memorandum item 3,
that are past due 30 days or more or are in nonaccrual status as of the report date. Such
loans will have been included in items 4 and 7 of Schedule RC-N above. Exclude from this
item all loans secured by real estate included in item 1 of Schedule RC-N above.

Not applicable.

1.g

NOTE: Memorandum item 4 is to be completed by:
• banks with $300 million or more in total assets, and
• banks with less than $300 million in total assets that have loans to finance agricultural
production and other loans to farmers, as defined for Schedule RC-C, Part I, item 3,
exceeding five percent of total loans and leases held for investment and held for sale
(Schedule RC-C, Part I, item 12).

Loans to finance agricultural production and other loans to farmers. Report in the
appropriate column the amount of all loans to finance agricultural production and other loans
to farmers included in Schedule RC-C, Part I, item 3, that are past due 30 days or more or
are in nonaccrual status as of the report date. Such loans will have been included in
Schedule RC-N, item 7, above.

NOTE: Memorandum item 5 is to be completed semiannually in the June and December reports only.
Loans and leases held for sale. Report in the appropriate column the carrying amount of all
loans and leases classified as held for sale included in Schedule RC, item 4.a, whether
measured at the lower of cost or fair value or at fair value under a fair value option, that are
past due 30 days or more or are in nonaccrual status as of the report date. Such loans and
leases will have been included in one or more of the loan and lease categories in items 1
through 8 of Schedule RC-N above and would, therefore, exclude any loans classified as
trading assets and included in Schedule RC, item 5.

Not applicable.

NOTE: Memorandum items 7, 8, 9.a, and 9.b are to be reported semiannually in the June and December
reports only.
7

FFIEC 051

Additions to nonaccrual assets during the previous six monthsquarter. Report the
aggregate amount of all loans, leases, debt securities, and other assets (net of unearned
income) that have been placed in nonaccrual status during the calendar quartersix months
ending on the semiannual (i.e., June 30 or December 31) report date for this item. Include
those assets placed in nonaccrual status during the quarterthis six month period that are
included as of the quarter-endcurrent report date in Schedule RC-N, column C, items 1
through 8 and 10. Also include those assets placed in nonaccrual status during the this six
month periodquarter that, before the current quarter-endsemiannual report date for this item,
have been sold, paid off, charged-off, settled through foreclosure or concession of collateral
(or any other disposition of the nonaccrual asset) or have been returned to accrual status. In
other words, the aggregate amount of assets placed in nonaccrual status since the prior
semiannual report date quarter-end that should be reported in this item should not be
reduced, for example, by

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Memoranda
Item No.

Caption and Instructions

7
(cont.)

any charge-offs or sales of such nonaccrual assets. If a given asset is placed in nonaccrual
status more than once during the six month period ending on the current semiannual report
datequarter, report the amount of the asset only once.
Nonaccrual assets sold during the previous six monthsquarter. Report the total of the
outstanding balances of all loans, leases, debt securities, and other assets held in nonaccrual
status (i.e., reportable in Schedule RC-N, column C, items 1 through 8 and 10) that were sold
during the six months calendar quarter ending on the semiannual (i.e., June 30 or December
31) report date for this item. The amount to be included in this item is the outstanding balance
(net of unearned income) of each nonaccrual asset at the time of its sale. Do not report the
sales price of the nonaccrual assets and do not include any gains or losses from the sale. For
purposes of this item, only include those transfers of nonaccrual assets that meet the criteria
for a sale as set forth 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). For further information, see the
Glossary entry for “transfers of financial assets.”

Purchased credit-impaired loans accounted for in accordance with FASB ASC 310-30
(former AICPA Statement of Position 03-3). Report in the appropriate subitem and column
the outstanding balance and amount of "purchased credit-impaired loans" reported as held for
investment in Schedule RC-C, Part I, Memorandum items 7.a and 7.b, respectively, that are
past due 30 days or more or are in nonaccrual status as of the report date. The amount of
such loans will have been included by loan category in items 1 through 7 of Schedule RC-N,
above. Purchased credit-impaired loans are accounted for in accordance with 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”). Purchased credit-impaired loans are loans that an
institution has purchased, including those acquired in a purchase business combination,
where there is evidence of deterioration of credit quality since the origination of the loan and it
is probable, at the purchase date, that the institution will be unable to collect all contractually
required payments receivable. Loans held for investment are those that the institution has the
intent and ability to hold for the foreseeable future or until maturity or payoff.

For guidance on determining the delinquency and nonaccrual status of purchased
credit-impaired loans accounted for individually and purchased credit-impaired loans with
common risk characteristics that are aggregated and accounted for as a pool, refer to the
“Definitions” section of the Schedule RC-N instructions and the Glossary entry for “purchased
credit-impaired loans and debt securities.”
Outstanding balance. Report in the appropriate column the outstanding balance of all
purchased credit-impaired loans reported as held for investment in Schedule RC-C, Part I,
Memorandum item 7.a, that are past due 30 days or more or are in nonaccrual status as of
the report date. The outstanding balance is the undiscounted sum of all amounts, including
amounts deemed principal, interest, fees, penalties, and other under the loan, owed to the
institution at the report date, whether or not currently due and whether or not any such
amounts have been charged off by the institution. However, the outstanding balance does not
include amounts that would be accrued under the contract as interest, fees, penalties, and
other after the report date.

9.b

Amount included in Schedule RC-N, items 1 through 7, above. Report in the appropriate
column the amount of all purchased credit-impaired loans reported as held for investment in
Schedule RC-C, Part I, Memorandum item 7.b, that are past due 30 days or more or are in
nonaccrual status as of the report date.

9.a

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File Modified	2018-01-05
File Created	2018-01-02