(MA)-Reports of Condition and Income (Interagency Call Report)

FFIEC 031 AND FFIEC 041
CALL REPORT
INSTRUCTION BOOK UPDATE
DECEMBER 2019

FILING INSTRUCTIONS
NOTE: This update for the instruction book for the FFIEC 031 and FFIEC 041 Call Reports is designed
for two-sided (duplex) printing. The pages listed in the column below headed “Remove Pages” are no
longer needed in the Instructions for Preparation of Consolidated Reports of Condition and Income
(FFIEC 031 and FFIEC 041) and should be removed and discarded. The pages listed in the column
headed “Insert Pages” are included in this instruction book update and should be filed promptly in
your instruction book for the FFIEC 031 and FFIEC 041 Call Reports.

Remove Pages

Insert Pages

Cover Page (9-19)
5 – 6 (12-18)
RC-M-13 – RC-M-14b (3-17, 6-18)
RC-R-1 – RC-R-2 (3-18)
RC-R-33 – RC-R-34b (3-19)

Cover Page (12-19)
5 – 6 (12-19)
RC-M-13 – RC-M-14b (12-19)
RC-R-1 – RC-R-2 (12-19)
RC-R-33 – RC-R-34b (12-19)

(12-19)

Instructions for Preparation of
Consolidated Reports of Condition and Income

FFIEC 031 and FFIEC 041

Updated December 2019

This page intentionally left blank.

FFIEC 031 and 041

GENERAL INSTRUCTIONS

(6) Banks at which (a) closed-end and open-end first lien and junior lien 1-4 family residential mortgage
loan originations and purchases for resale from all sources during a calendar quarter, or (b) closedend and open-end first lien and junior lien 1-4 family residential mortgage loan sales during a
calendar quarter, or (c) closed-end and open-end first lien and junior lien 1-4 family residential
mortgage loans held for sale at calendar quarter-end exceed $10 million for two consecutive quarters
must complete Schedule RC-P, 1-4 Family Residential Mortgage Banking Activities, beginning the
second quarter and continue to complete the schedule through the end of the calendar year.
(7) Banks that have elected to report financial instruments or servicing assets and liabilities at fair value
under a fair value option with changes in fair value recognized in earnings or are required to complete
Schedule RC-D, Trading Assets and Liabilities, must complete Schedule RC-Q, Assets and Liabilities
Measured at Fair Value on a Recurring Basis.
(8) Banks that are advanced approaches institutions, as defined in the agencies’ regulatory capital rules,
must complete certain additional items in Schedule RC-R, Regulatory Capital.
(9) Banks servicing more than $10 million in financial assets other than closed-end 1-4 family residential
mortgages must report the volume of such servicing in Schedule RC-S, Memorandum item 2.c.
(10) Banks with total fiduciary assets greater than $250 million (as of the preceding December 31) or
with gross fiduciary and related services income greater than 10 percent of revenue (net interest
income plus noninterest income) for the preceding calendar year must report information on their
fiduciary and related services income in Schedule RC-T. In addition, banks with total fiduciary assets
greater than $100 million (as of the preceding December 31) or that meet the fiduciary income test
for the preceding calendar year must report information on fiduciary settlements and losses in
Schedule RC-T.
(11) Banks with collective investment funds and common trust funds with a total market value of
$1 billion or more as of the preceding December 31 must report a breakdown of these funds by type
of fund in Schedule RC-T, Memorandum items 3.a through 3.g, quarterly or annually, as appropriate.
(12) Banks that are “large institutions” or “highly complex institutions,” as defined for deposit insurance
assessment purposes in the FDIC’s regulations, which generally are banks that report total assets of
$10 billion or more for four consecutive quarters, must report additional data in Schedule RC-O,
Memorandum items 6 through 18.
In addition, within the FFIEC 031 report form, banks with total foreign office assets of $10 billion or more
whose foreign office assets, revenues, or net income account for more than 10 percent of the bank’s
consolidated total assets, total revenues, or net income must complete Schedule RI-D, Income from
Foreign Offices.

Shifts in Reporting Status
All shifts in reporting status within the FFIEC 031 and the FFIEC 041 report forms (except as noted
below) are to begin with the March Call Report. Such a shift will take place only if the reporting bank's
total assets (or, in one case, loans) as reflected in the Consolidated Report of Condition for June of the
previous calendar year equal or exceed the following criteria:
(1) On the FFIEC 041 report form, when total assets equal or exceed $100 million, a bank must begin to
complete Schedule RC-K, item 13, for the quarterly average of "Other borrowed money."
(2) On the FFIEC 041 report form, when loans to finance agricultural production and other loans to
farmers exceed 5 percent of total loans and leases held for investment and held for sale at a bank
with less than $300 million in total assets, the bank must begin to report the following information for
these agricultural loans: interest and fee income, quarterly average, past due and nonaccrual loans,
charge-offs and recoveries, and, if certain additional criteria are met, troubled debt restructurings.
FFIEC 031 and 041

5
(12-19)

GENERAL INSTRUCTIONS

FFIEC 031 and 041

GENERAL INSTRUCTIONS

(3) On the FFIEC 041 report form, when total assets equal or exceed $300 million, a bank must begin to
complete:







Certain Memorandum items providing the following information on loans to finance agricultural
production and other loans to farmers: interest and fee income, quarterly average, past due and
nonaccrual loans, charge-offs and recoveries, and, if certain additional criteria are met, troubled
debt restructurings;
Schedule RC-A, Cash and Balances Due From Depository Institutions;
1
Schedule RC-L, items 1.b.(1) and (2), on credit card lines by type of customer;
Schedule RC-N, Memorandum item 6, on past due derivative contracts; and
Schedule RI, Memorandum item 10, "Credit losses on derivatives."

(4) On both the FFIEC 031 and FFIEC 041 report forms, when total assets equal or exceed $1 billion,
a bank must begin to complete:








Schedule RI, Memorandum item 2, “Income from the sale and servicing of mutual funds and
annuities (in domestic offices)”;
Schedule RI, Memorandum item 15, “Components of service charges on deposit accounts (in
domestic offices)” (if the bank answered “Yes” to Schedule RC-E, Memorandum item 5, which
asks whether the bank offers one or more consumer deposit account products);
Schedule RI-C, Disaggregated Data on the Allowance for Loan and Lease Losses;
Schedule RC-E, Memorandum items 6 and 7, on the amount of deposits in transaction and
nontransaction savings consumer deposit account products (if the bank answered “Yes” to
Schedule RC-E, Memorandum item 5, which asks whether the bank offers one or more consumer
deposit account products);
Schedule RC-L, items 2.a and 3.a, on financial and performance standby letters of credit
conveyed to others; and
Schedule RC-O, Memorandum item 2, “Estimated amount of uninsured deposits (in domestic
offices of the bank and in insured branches in Puerto Rico and U.S. territories and possessions),
including related interest accrued and unpaid.”

(5) On both the FFIEC 031 and FFIEC 041 report forms, when total assets equal or exceed $10 billion, a
2
bank must begin to complete:





Schedule RI, Memorandum items 9.a and 9.b, on amounts of net gains (losses) on credit
derivatives;
Schedule RC-B, Memorandum item 5, which provides a breakdown of the bank’s holdings of
asset-backed securities, and Memorandum item 6, which provides a breakdown of the bank’s
holdings of structured financial products;
Schedule RC-L, item 16, which provides certain information about over-the-counter derivatives;
and
Schedule RC-S, item 6, Total amount of ownership (or seller’s) interest carried as securities or
loans,” item 10, “Reporting bank’s unused commitments to provide liquidity to other institutions’
securitization structures,” and Memorandum item 3, on credit enhancements and unused
commitments provided to “Asset-backed commercial paper conduits.”

(6) On the FFIEC 031 report form, when total assets equal or exceed $10 billion, a bank must begin to
complete Schedule RC-E, Part II, items 1 through 6, on the amount of deposits in foreign offices by
type of depositor.
1

In addition, a bank with less than $300 million in total assets must begin to complete these items when credit card
lines equal or exceed $300 million. These total asset and credit card line thresholds also apply to the FFIEC 031
report form.

2

A bank with $10 billion or more in total assets would not begin to complete Schedule RC-O, Memorandum items 6
through 18, as applicable, until it becomes a “large institution” or a “highly complex institution,” as defined for deposit
insurance assessment purposes in the FDIC’s regulations.

FFIEC 031 and 041

6
(12-19)

GENERAL INSTRUCTIONS

FFIEC 031 and 041

Item No.

RC-M - MEMORANDA

Caption and Instructions

5.c

Total. Report the sum of items 5.a.(1)(a) through (d) and items 5.b.(1)(a) through (d). This
sum must equal Schedule RC, item 16, “Other borrowed money.”

6

Does the reporting bank sell private label or third party mutual funds and annuities?
Indicate whether the reporting bank currently sells private label or third party mutual funds and
annuities. Place an “X” in the box marked “YES” if the bank, a bank subsidiary or other bank
affiliate, or an unaffiliated entity sells private label or third party mutual funds and annuities:
(1) on bank premises;
(2) from which the bank receives income at the time of the sale or over the duration of the
account (e.g., annual fees, Rule 12b-1 fees or "trailer fees," and redemption fees); or
(3) through the reporting bank's trust department in transactions that are not executed in a
fiduciary capacity (e.g., trustee, executor, administrator, and conservator).
Otherwise, place an “X” in the box marked “NO”.
Mutual fund is the common name for an open-end investment company whose shares are
sold to the investing public. An annuity is an investment product, typically underwritten by an
insurance company, that pays either a fixed or variable payment stream over a specified
period of time. Both proprietary and private label mutual funds and annuities are established
in order to be marketed primarily to a bank's or banking organization's customers. A
proprietary product is a product for which the reporting bank or a subsidiary or other affiliate
of the reporting bank acts as investment adviser and may perform additional support
services. In a private label product, an unaffiliated entity acts as the investment adviser. The
identity of the investment adviser is normally disclosed in the prospectus for a mutual fund or
annuity. Mutual funds and annuities that are not proprietary or private label products are
considered third party products. For example, third party mutual funds and annuities include
products that are widely marketed by numerous parties to the investing public and have
investment advisers that are not affiliated with the reporting bank.

7

Assets under the reporting bank’s management in proprietary mutual funds and
annuities. Report the amount of assets (stated in U.S. dollars) held by mutual funds and
annuities as of the report date for which the reporting bank or a subsidiary of the bank acts as
investment adviser.
A general description of a proprietary product is included in the instruction to Schedule RC-M,
item 6, above. Proprietary mutual funds and annuities are typically created by large banking
organizations and offered to customers of the banking organization's subsidiary banks.
Therefore, small, independent banks do not normally act as investment advisers for mutual
funds and annuities.
If neither the bank nor any subsidiary of the bank acts as investment adviser for a mutual fund
or annuity, the bank should report a zero in this item.

FFIEC 031 and 041

RC-M-13
(12-19)

RC-M - MEMORANDA

FFIEC 031 and 041

Item No.
8

RC-M - MEMORANDA

Caption and Instructions
Internet website addresses and physical office trade names. Because the Uniform
Resource Locators (URLs) of Internet websites and the physical office trade names reported
in items 8.a, 8.b, and 8.c are publicly available, each institution should ensure that it
accurately reports its URLs and physical office trade names, if any. This information will
assist the FDIC in responding to public inquiries as to whether a particular Internet website or
institution operating under a trade name that accepts or solicits deposits from the public is in
fact operated by an FDIC-insured depository institution. URLs of Internet websites and
physical office trade names should not exceed 75 characters in length.
Examples of URLs are www.bank.com, www.isp.com/bank/, and bank.isp.com. When
entering the URL of an Internet website in items 8.a and 8.b, the URL should not be prefaced
with http:// because this is already included on the form. Do not provide e-mail addresses in
the spaces for URLs of Internet websites.

8.a

Uniform Resource Locator (URL) of the reporting institution’s primary Internet website
(home page), if any. The URL of an institution’s primary Internet website is the URL of the
public-facing website that the institution’s customers or potential customers enter into Internet
browser software in order to find the first page of the institution’s principal website.
If the reporting institution has a primary Internet website or home page, report in this item the
URL of this website or home page (e.g., www.examplebank.com). If the reporting institution
does not have its own website or home page, but information on or functions of the institution
can be accessed through the URL of an affiliate’s website, the URL of that affiliate’s primary
website should be reported in this item.
An institution that maintains more than one website that prominently displays the institution’s
legal title should report the URL of the institution’s primary Internet website in this item and
determine whether it should report the URLs of these other websites in Schedule RC-M,
item 8.b, below.
If an institution has no website or home page of its own and the institution cannot be
accessed through the URL of an affiliate’s website, this item should be left blank. Do not
enter such phrases as "Not applicable," "N/A," "None," and "Null."

8.b

URLs of all other public-facing Internet websites that the reporting institution uses to
accept or solicit deposits from the public, if any. If the reporting institution:
(1) Uses one or more trade names (other than its legal title) to accept or solicit deposits
from the public, and directly or indirectly operates one or more public-facing Internet
websites – other than its primary Internet website (home page) reported in
Schedule RC-M, item 8.a, above – to present such trade names to the public, or
(2) Uses any other public-facing Internet websites prominently displaying the institution’s
legal title – other than its primary Internet website (home page) – to accept or solicit
deposits from the public,
the institution should report the URLs of each of its other public-facing websites that it uses to
1
accept or solicit deposits from the public in the text fields for items 8.b.(1) through 8.b.(10)
and, if necessary, in Schedule RI-E, item 7, “Other explanations.” If an institution has no
additional public-facing Internet websites to report, the text fields for these items should be
left blank. Do not enter such phrases as "Not applicable," "N/A," "None," and "Null."

1

Excluding deposits that would be carried on the books and records of an office of the institution located outside the
United States, Puerto Rico, and U.S. territories and possessions.

FFIEC 031 and 041

RC-M-14
(12-19)

RC-M - MEMORANDA

FFIEC 031 and 041

RC-M - MEMORANDA

Item No.

Caption and Instructions

8.b
(cont.)

When reporting the URLs for public-facing websites used to accept or solicit deposits, report
only the highest level URLs. For example, an institution with a legal title of XYZ Bank reports
in item 8.a that the URL of its primary Internet website is www.xyzbank.com. The institution
also solicits deposits using the website address www.safeandsoundbank.com and provides
more specific deposit information at “www.safeandsoundbank.com/checking” and
“www.safeandsoundbank.com/CDs.” Only the first of these three URLs
(i.e., “www.safeandsoundbank.com”) should be reported in this item.
When an institution uses multiple top level domains (e.g., .com, .net, and .biz), it should
separately report the URLs that are otherwise the same except for the top level domain
name. For example, if XYZ Bank also uses the website address “www.xyzbank.biz” in the
solicitation of deposits, it should report this URL in this item.
However, if an institution uses one or more URLs that automatically redirect the public to the
institution’s primary website or to another website used to accept or solicit deposits that is
being reported in this item, the institution should not report these additional URLs. For
example, if XYZ Bank uses the URLs “www.xyzbank.net” and “www.safeandsoundbank.net”
to automatically redirect the public to “www.xyzbank.com” (reported in item 8.a as its primary
website) and “www.safeandsoundbank.com” (reported in this item as the URL of another
website the institution uses), respectively, it should not report the two redirecting URLs in this
item.
Do not report the URLs of:
(1) Public-facing Internet websites operated by the reporting institution that do not accept or
solicit deposits from the public. For example, if XYZ Bank uses the website address
“www.xyzautoloans.com” but does not accept or solicit deposits through this site, its URL
should not be reported in this item;
(2) Internet websites of any non-bank affiliates or subsidiaries that do not accept or solicit
deposits from the public on behalf of the institution;
(3) Affiliated, separately chartered insured depository institutions;
(4) Foreign affiliates; and
(5) Third-party deposit listing services and deposit brokers.

8.c

Trade names other than the reporting institution’s legal title used to identify one or
more of the institution’s physical offices at which deposits are accepted or solicited
from the public, if any. An institution may use a trade name other than its legal title as
reflected in its charter to identify certain of its physical offices, for example, due to a merger
and an interest in maintaining the presence of the acquired institution’s well recognized name
in the community or communities it served.
If the reporting institution operates one or more physical offices to conduct banking activities
and uses one or more trade names other than its legal title to identify these physical offices
(for example, via signage displayed on the facilities), the institution should report each trade
name used by one or more of its physical offices at which it accepts or solicits deposits
1
from the public in the text fields for items 8.c.(1) through 8.c.(6) and, if necessary, in
Schedule RI-E, item 7, “Other explanations.” Do not report the trade names used by any
physical offices of the reporting institution at which the institution does not accept or solicit

1

Excluding deposits that would be carried on the books and records of an office of the institution located outside the
United States, Puerto Rico, and U.S. territories and possessions.

FFIEC 031 and 041

RC-M-14a
(12-19)

RC-M - MEMORANDA

FFIEC 031 and 041

RC-M - MEMORANDA

Item No.

Caption and Instructions

8.c
(cont.)

deposits from the public. In addition, do not report the physical office trade names of any
non-bank affiliates or subsidiaries that do not accept or solicit deposits from the public on
behalf of the institution. Do not report the physical office trade names of affiliated, separately
chartered insured depository institutions. If an institution does not use any trade names other
than its legal title, the text fields for items 8.c.(1) through 8.c.(6) should be left blank. Do not
enter such phrases as "Not applicable," "N/A," "None," and "Null."
For example, an institution with a legal title of XYZ Bank operates one or more branch offices
under the trade name of “Community Bank of ABC” (as identified by the signage displayed on
each facility) where it accepts and solicits deposits from the public. XYZ Bank should report
this trade name (and any other trade names it uses at other physical office locations where it
accepts or solicits deposits) in this item 8.c. XYZ Bank also has a loan production office that
operates under the trade name of “XYZ Consumer Loans” and a mortgage lending subsidiary
that operates physical offices using the trade name of “XYZ Mortgage Company”; deposits
are not accepted nor solicited on behalf of XYZ Bank at these physical offices. Thus, neither
of these two trade names should be reported in this item 8.c.

NOTE: Schedule RC-M, item 9, is to be completed annually in the December report only.
9

Do any of the bank’s Internet websites have transactional capability, i.e., allow the
bank’s customers to execute transactions on their accounts through the website?
Indicate whether any of the reporting bank’s Internet websites have transactional capability.
Place an “X” in the box marked “Yes” if the bank or a bank affiliate has any Internet websites
that allow the bank’s customers to execute transactions on their accounts through the website.
Otherwise, place an “X” in the box marked “No.”
The Internet web address of the website (or sites) with transactional capability does not have
to be the address of the bank’s primary Internet website that is reported in Schedule RC-M,
item 8, above.

10

Secured liabilities. Report in the appropriate subitem the carrying amount of federal funds
purchased (in domestic offices) and “Other borrowings” that are secured, i.e., the carrying
amount of these types of liabilities for which the bank (or a consolidated subsidiary) has
pledged securities, loans, or other assets as collateral.

10.a

Amount of “Federal funds purchased (in domestic offices)” that are secured.
Report the carrying amount of federal funds purchased (in domestic offices) (as defined for
Schedule RC, item 14.a) that are secured.

10.b

Amount of “Other borrowings” that are secured. Report the carrying amount of “Other
borrowings” (as defined for Schedule RC-M, item 5.b) that are secured. Secured “Other
borrowings” include, but are not limited to, transfers of financial assets accounted for as
financing transactions because they do not satisfy the criteria for sale accounting under
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),
mortgages payable on bank premises and other real estate owned, and obligations under
capitalized leases.

FFIEC 031 and 041

RC-M-14b
(12-19)

RC-M - MEMORANDA

FFIEC 031 and 041

RC-R – REGULATORY CAPITAL

SCHEDULE RC-R – REGULATORY CAPITAL
General Instructions for Schedule RC-R
The instructions for Schedule RC-R should be read in conjunction with the regulatory capital rules issued
by the primary federal supervisory authority of the reporting bank or saving association (collectively,
banks): for national banks and federal savings associations, 12 CFR Part 3; for state member banks,
12 CFR Part 217; and for state nonmember banks and state savings associations, 12 CFR Part 324.

Part I. Regulatory Capital Components and Ratios

Contents – Part I. Regulatory Capital Components and Ratios

General Instructions for Schedule RC-R, Part I

RC-R-2

Item Instructions for Schedule RC-R, Part I

RC-R-3

Common Equity Tier 1 Capital

RC-R-3

Common Equity Tier 1 Capital: Adjustments and Deductions

RC-R-6a

Additional Tier 1 Capital

RC-R-20

Tier 1 Capital

RC-R-25

Tier 2 Capital

RC-R-25

Total Capital

RC-R-30

Total Assets for the Leverage Ratio

RC-R-30

Total Risk-Weighted Assets

RC-R-32

Risk-Based Capital Ratios

RC-R-32

Leverage Capital Ratios

RC-R-33

Capital Buffer

RC-R-34

FFIEC 031 and 041

RC-R-1
(12-19)

RC-R – REGULATORY CAPITAL

FFIEC 031 and 041

RC-R – REGULATORY CAPITAL

Schedule RC-R, Part I. Regulatory Capital Components and Ratios
General Instructions for Schedule RC-R, Part I.
Unless otherwise indicated, references to Schedule RC-R item numbers in the instructions for
Schedule RC-R, Part I, are to items in Part I, not to items in Part II of Schedule RC-R.
Transition Provisions: Transition provisions apply to the minimum regulatory capital ratios, the capital
conservation buffer, the regulatory capital adjustments and deductions, and non-qualifying capital
instruments. For example, transition provisions for the regulatory capital adjustments and deductions
specify that certain items that were deducted from tier 1 capital previously will be deducted from common
equity tier 1 capital under the regulatory capital rules, with the amount of the deduction changing each
calendar year until the transition period ends. For some regulatory capital deductions and adjustments,
the non-deducted portion of the item is either risk-weighted for the remainder of the transition period or
deducted from additional tier 1 capital, as described in the instructions for the applicable items below.
NOTE: For institutions that are not advanced approaches institutions (as described in footnote 1), the
transition provisions applicable during 2017 under the banking agencies’ regulatory capital rules have
been extended indefinitely for certain regulatory capital deductions and risk weights as well as certain
minority interest requirements. The Schedule RC-R instructions reflect the extension of the regulatory
capital treatment of these capital deductions, risk weights, and minority interest requirements applicable
to non-advanced approaches institutions during 2017.
1

Advanced approaches institutions: Advanced approaches institutions may use the amounts reported
in Schedule RC-R, Part I, to complete the FFIEC 101, Schedule A, as applicable. As described in the
General Instructions for the FFIEC 101, an institution must begin reporting on the FFIEC 101,
Schedule A, except for a few specific line items, at the end of the quarter after the quarter in which the
institution triggers one of the threshold criteria for applying the advanced approaches rule or elects to use
2
the advanced approaches rule (an opt-in institution), and it must begin reporting data on the remaining
schedules of the FFIEC 101 at the end of the first quarter in which it has begun its parallel run period.
Advanced approaches institutions must continue to file Schedule RC-R, Regulatory Capital, as well as the
FFIEC 101.
An institution that is subject to the advanced approaches rule remains subject to the rule unless its
primary federal supervisor determines in writing that application of the rule is not appropriate in light of the
institution’s asset size, level of complexity, risk profile, or scope of operations.

1

An advanced approaches institution as defined in the federal supervisor’s regulatory capital rules (i) has
consolidated total assets (excluding assets held by an insurance underwriting subsidiary) on its most recent year-end
regulatory report equal to $250 billion or more; (ii) has consolidated total on-balance sheet foreign exposure on its
most recent year-end regulatory report equal to $10 billion or more (excluding exposures held by an insurance
underwriting subsidiary), as calculated in accordance with FFIEC 009; (iii) is a subsidiary of a depository institution
that uses the advanced approaches pursuant to subpart E of 12 CFR part 3 (OCC), 12 CFR part 217 (Board), or
12 CFR part 324 (FDIC) to calculate its total risk-weighted assets; (iv) is a subsidiary of a bank holding company or
savings and loan holding company that uses the advanced approaches pursuant to 12 CFR part 217 to calculate its
total risk-weighted assets; or (v) elects to use the advanced approaches to calculate its total risk-weighted assets.
As described in section 121 of the regulatory capital rules, an institution must adopt a written implementation plan no
later than 6 months after the institution meets the criteria above and work with its primary federal supervisor on
implementing the parallel run process.
2

An institution is deemed to have elected to use the advanced approaches rule on the date that its primary federal
supervisor receives from the institution a board-approved implementation plan pursuant to section 121(b)(2) of the
regulatory capital rules. After that date, in addition to being required to report on the FFIEC 101, Schedule A, the
institution may no longer apply the AOCI opt-out election in section 22(b)(2) of the regulatory capital rules and it
becomes subject to the supplementary leverage ratio in section 10(c)(4) of the rules and its associated transition
provisions.
FFIEC 031 and 041

RC-R-2
(12-19)

RC-R – REGULATORY CAPITAL

FFIEC 031 and 041

RC-R – REGULATORY CAPITAL

Part I. (cont.)
Item No.

Caption and Instructions

Leverage Capital Ratios
44

Tier 1 leverage ratio. Report the institution’s tier 1 leverage ratio as a percentage, rounded
to four decimal places. Divide Schedule RC-R, Part I, item 26 by item 39.

45

Advanced approaches institutions only: Supplementary leverage ratio information.
Report in the appropriate subitem the institution’s total leverage exposure and the
supplementary leverage ratio. Advanced approaches institutions must complete items 45.a
and 45.b even if they are in the parallel run process.

45.a

Total leverage exposure. Report the institution’s total leverage exposure as measured in
accordance with section 10(c)(4) of the regulatory capital rules.
An institution that has adopted FASB Accounting Standards Update No. 2016-13, which
governs the accounting for credit losses and introduces the current expected credit losses
methodology (CECL), and has elected to apply the CECL transition provision (electing
institution) should increase its total leverage exposure by its applicable CECL transitional
amount, in accordance with section 301(c)(2)(i) of the regulatory capital rules. For example,
an electing institution should increase its total leverage exposure for purposes of the
supplementary leverage ratio by 75 percent of its CECL transitional amount during the first
year of the transition period, 50 percent of its CECL transitional amount during the second
year of the transition period, and 25 percent of its CECL transitional amount during the third
year of the transition period.

45.b

Supplementary leverage ratio. Report the institution’s supplementary leverage ratio as a
percentage, rounded to four decimal places. Divide Schedule RC-R, Part I, item 26, “Tier 1
capital,” by Schedule RC-R, Part I, item 45.a, “Total leverage exposure.”

FFIEC 031 and 041

RC-R-33
(12-19)

RC-R – REGULATORY CAPITAL

FFIEC 031 and 041

RC-R – REGULATORY CAPITAL

Part I. (cont.)
Item No.

Caption and Instructions

Capital Buffer
46

Institution-specific capital buffer necessary to avoid limitations on distributions and
discretionary bonus payments:

46.a

Capital conservation buffer. Report the institution’s capital conservation buffer as a
percentage, rounded to four decimal places. Except as described below, the capital
conservation buffer is equal to the lowest of ratios (1), (2), and (3) below.
For example, the capital conservation buffer to be reported in this item 46.a for the
December 31, 2019, report date would be based on the capital ratios reported in
Schedule RC-R, Part I, of the Call Report for December 31, 2019.
For all institutions, except advanced approaches institutions that exit parallel run:
(1) Schedule RC-R, Part I, item 41, column A, less 4.5000 percent, which is the minimum
common equity tier 1 capital ratio requirement under section 10 of the regulatory capital
rules;
(2) Schedule RC-R, Part I, item 42, column A, less 6.0000 percent, which is the minimum
tier 1 capital ratio requirement under section 10 of the regulatory capital rules; and
(3) Schedule RC-R, Part I, item 43, column A, less 8.0000 percent, which is the minimum
total capital ratio requirement under section 10 of the regulatory capital rules.
However, if any of the three ratios calculated above is less than zero (i.e., is negative), the
institution’s capital conservation buffer is zero.
For advanced approaches institutions that exit parallel run only:
(1) The lower of Schedule RC-R, Part I, item 41, column A and column B, less
4.5000 percent, which is the minimum common equity tier 1 capital ratio requirement
under section 10 of the regulatory capital rules;
(2) The lower of Schedule RC-R, Part I, item 42, column A and column B, less
6.0000 percent, which is the minimum tier 1 capital ratio requirement under section 10
of the regulatory capital rules; and
(3) The lower of Schedule RC-R, Part I, item 43, column A and column B, less
8.0000 percent, which is the minimum total capital ratio requirement under section 10
of the regulatory capital rules.
However, if any of the three ratios calculated above is less than zero (i.e., is negative), the
institution’s capital conservation buffer is zero.

46.b

Advanced approaches institutions that exit parallel run only: Total applicable capital
buffer. Report the total applicable capital buffer, as reported in FFIEC 101, Schedule A,
item 64.

FFIEC 031 and 041

RC-R-34
(12-19)

RC-R – REGULATORY CAPITAL

FFIEC 031 and 041

RC-R – REGULATORY CAPITAL

Part I. (cont.)
Item No.

Caption and Instructions

NOTE: Institutions must complete Schedule RC-R, Part I, items 47 and 48, if the amount reported
in Schedule RC-R, Part I, item 46.a, is less than or equal to the required minimum capital
conservation buffer of 2.5000 percent (plus any other applicable capital buffers if the institution is
an advanced approaches institution).
47

Eligible retained income. Report the amount of eligible retained income as the net income
attributable to the institution for the four calendar quarters preceding the current calendar
quarter, net of any distributions and associated tax effects not already reflected in net
income. (See the instructions for Schedule RC-R, Part I, item 48, for the definition of
“distributions” from section 2 of the regulatory capital rules.)
For example, the amount of eligible retained income to be reported in this item 47 for the
December 31, 2019, report date would be based on the net income attributable to the
institution for the four calendar quarters ending on December 31, 2019. This net income
amount would equal the net income attributable to the institution most recently reported in
Schedule RI, item 14, for December 31, 2019 (i.e., after adjustments for amended
Consolidated Reports of Income).
This net income amount would next be reduced by any distributions and associated tax
effects not already reflected in net income; the resulting amount would be the eligible retained
income to be reported in this item 47. Thus, if the institution had declared dividends on its
common stock during each calendar quarter in 2019 and had no other distributions during
2019, the institution would reduce its net income amount by the total amount of the dividends
declared in 2019 and report the resulting amount as its eligible net income in this item 47.
As an additional example, the amount of eligible retained income to be reported in this
item 47 for the March 31, 2020, report date would be based on the net income attributable to
the institution for the four calendar quarters ending on March 31, 2020. This net income
amount would be calculated by:
(1) Subtracting the net income attributable to the institution most recently reported in
Schedule RI, item 14, for March 31, 2019 (i.e., after adjustments for amended
Consolidated Reports of Income), from the net income attributable to the institution most
recently reported in Schedule RI, item 14, for December 31, 2019 (i.e., after adjustments
for amended Consolidated Reports of Income), and
(2) Adding the result from (1) above to the net income attributable to the institution most
recently reported in Schedule RI, item 14, for March 31, 2020 (i.e., after adjustments for
amended Consolidated Reports of Income).
This net income amount would next be reduced by any distributions and associated tax
effects not already reflected in net income (e.g., dividends declared on the institution’s
common stock between April 1, 2019, and March 31, 2020); the resulting amount would be
the eligible retained income to be reported in this item 47.

48

Distributions and discretionary bonus payments during the quarter. Report the amount
of distributions and discretionary bonus payments during the calendar quarter ending on the
report date.

FFIEC 031 and 041

RC-R-34a
(12-19)

RC-R – REGULATORY CAPITAL

FFIEC 031 and 041

RC-R – REGULATORY CAPITAL

Part I. (cont.)
Item No.

Caption and Instructions

48
(cont.)

As defined in section 2 of the regulatory capital rules, “distribution” means:
(1) A reduction of tier 1 capital through the repurchase of a tier 1 capital instrument or by
other means, except when an institution, within the same quarter when the repurchase is
announced, fully replaces a tier 1 capital instrument it has repurchased by issuing
another capital instrument that meets the eligibility criteria for:
(i) A common equity tier 1 capital instrument if the instrument being repurchased was
part of the institution's common equity tier 1 capital, or
(ii) A common equity tier 1 or additional tier 1 capital instrument if the instrument being
repurchased was part of the institution's tier 1 capital;
(2) A reduction of tier 2 capital through the repurchase, or redemption prior to maturity, of a
tier 2 capital instrument or by other means, except when an institution, within the same
quarter when the repurchase or redemption is announced, fully replaces a tier 2 capital
instrument it has repurchased by issuing another capital instrument that meets the
eligibility criteria for a tier 1 or tier 2 capital instrument;
(3) A dividend declaration or payment on any tier 1 capital instrument;
(4) A dividend declaration or interest payment on any tier 2 capital instrument if the institution
has full discretion to permanently or temporarily suspend such payments without
triggering an event of default; or
(5) Any similar transaction that the institution’s primary federal regulator determines to be in
substance a distribution of capital.
As defined in section 2 of the regulatory capital rules, “discretionary bonus payment” means a
payment made to an executive officer of an institution, where:
(1) The institution retains discretion as to whether to make, and the amount of, the payment
until the payment is awarded to the executive officer;
(2) The amount paid is determined by the institution without prior promise to, or agreement
with, the executive officer; and
(3) The executive officer has no contractual right, whether express or implied, to the bonus
payment.
As defined in section 2 of the regulatory capital rules, “executive officer” means a person who
holds the title or, without regard to title, salary, or compensation, performs the function of one
or more of the following positions: president, chief executive officer, executive chairman,
chief operating officer, chief financial officer, chief investment officer, chief legal officer, chief
lending officer, chief risk officer, or head of a major business line, and other staff that the
board of directors of the institution deems to have equivalent responsibility.

FFIEC 031 and 041

RC-R-34b
(12-19)

RC-R – REGULATORY CAPITAL