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pdfINSTRUCTIONS FOR PREPARATION OF
Financial Statement of Foreign
Subsidiaries of U.S. Banking Organizations
FR 2314 and FR 2314S
GENERAL INSTRUCTIONS
Who Must Report
The Financial Statements of Foreign Subsidiaries of U.S.
Banking Organizations (FR 2314/FR 2314S) must be
filed by foreign subsidiaries of U.S. banking organizations. Regulation K defines foreign or foreign country as
one or more foreign nations, and includes the overseas
territories, dependencies, and insular possessions of those
nations and of the United States, and the Commonwealth
of Puerto Rico.
The FR 2314/FR 2314S must be submitted for each legal
entity subject to reporting requirements. Therefore, consolidation of individual entities is not permitted.1
Unless otherwise instructed, the FR 2314/FR 2314S is to
be submitted for any organization, also referred to as a
‘‘subsidiary,’’ described below except a corporation which
itself is organized under Section 25 or 25A of the Federal
Reserve Act.2 For purposes of this report, ‘‘subsidiaries’’
include, but are not limited to:
(1) Any organization which is a ‘‘subsidiary’’ as defined
by Section 211.2(w) of Regulation K of the Board of
Governors of the Federal Reserve System (see ‘‘Definitions’’);
(2) Any other subsidiary in which shares have been
acquired under Regulation K where the Board’s
consent to such acquisitions is conditioned on the
furnishing of reports, and all subsidiaries of such
organizations;
company under Section 4(c)(13) of the Bank Holding
Company Act of 1956, as amended, if such acquisition represents greater than 50 percent of this organization’s equity capital or if the Board’s consent to the
acquisition is conditioned on the furnishing of reports;
(4) Any subsidiary in which shares have been acquired,
directly or indirectly, by a financial holding company
under Section 4(k)(4) of the Bank Holding Company
Act, as amended by the Gramm−Leach−Bliley Act,
domiciled outside of the United States,3 (except
subsidiaries that are functionally regulated as discussed in the exemptions section below). Refer to the
FR Y-9C Glossary entry for ‘‘Addressee (Domicile)’’
for the definition of domicile.
(5) Any other foreign organization directly or indirectly
managed or controlled by, or operated on behalf of, a
bank that is a member of the Federal Reserve System, a bank holding company, or any organization
required to report under 1 through 4 above, through
management contracts, trust agreements, or similar
instruments; and
(6) Any domestic subsidiary of U.S. banking organizations (principally held by an Edge or agreement
corporation), that qualifies under Regulation K or
Section 4 (c) (13) of the Bank Holding Company
Act, as amended (i.e., subsidiaries authorized to
conduct overseas activities even if domiciled in the
U.S.).
(3) Any organization in which shares have been acquired, directly or indirectly, by a bank holding
1. For institutions that filed on a consolidated basis prior to December 31, 2002, consolidation of individual entities will be permitted only for
the December 31, 2002, and March 31, 2003, reporting dates.
2. Such Edge or agreement corporations report on the FR 2886b.
FR 2314 and 2314S
General Instructions March 2007
3. Any such organization domiciled in the United States should file
either the Financial Statements of U.S. Nonbank Subsidiaries of Bank
Holding Companies (FR Y-11) or the Abbreviated Financial Statements of
U.S. Nonbank Subsidiaries of Bank Holding Companies (FR Y-11S)
pursuant to the reporting threshold requirements for those reports.
GEN-1
General Instructions
Quarterly Filers—Detailed Report
(FR 2314)
beginning with the first quarterly report date following
the effective date of the business combination.
A bank holding company (BHC) must file the FR 2314
quarterly for its subsidiary if the subsidiary is owned or
controlled by a parent U.S. BHC that files the FR Y-9C4,
or a state member bank or an Edge or agreement corporation that has total consolidated assets equal to or greater
than $500 million, and the subsidiary meets any one of
the following criteria:
Once a nonbank subsidiary begins filing the FR 2314
quarterly, it should file a complete FR 2314 quarterly
going forward. If the subsidiary subsequently does not
meet the quarterly filing criteria for four consecutive
quarters, then the parent organization may revert to
annual filing.
(1) Total assets of the foreign subsidiary are equal to or
greater than $1 billion;
(2) The foreign subsidiary’s off-balance-sheet activities5
are equal to or greater than $5 billion;
(3) The foreign subsidiary’s equity capital is equal to or
greater than five percent of the top tier organization’s
consolidated equity capital; or
Foreign subsidiaries that do not meet the quarterly filing
thresholds may be requested to file quarterly if the
Federal Reserve Bank has determined that these subsidiaries have significant risk exposures.
Annual Filers—Detailed Report
(FR 2314)
(4) The foreign subsidiary’s operating revenue is equal
to or greater than five percent of the top tier organization’s consolidated operating revenue.
A foreign subsidiary that does not meet any of the criteria
to file quarterly, but has total assets greater than or equal
to $250 million (but less than $1 billion) must file the
entire FR 2314 report on an annual basis.
Operating revenue is defined as the sum of total interest
income and total noninterest income, before deduction of
expenses and extraordinary items.
Annual Filers—Abbreviated Report
(FR 2314S)
For foreign subsidiaries held by a U.S. banking organization in the United States that is, in turn, owned by a
foreign banking organization, the operating revenue and
equity capital of the U.S. banking organization are used
as the top tier organization’s values.
A foreign subsidiary that does not meet the criteria to
file the detailed report, but does meet the following
criteria, must file the Abbreviated Financial Statements
of Foreign Subsidiaries of U.S. Banking Organizations
(FR 2314S) on an annual basis:
If a foreign subsidiary meets the criteria above to file
quarterly as of June 30 of the preceding year, the parent
organization must file the FR 2314 quarterly for the
subsidiary beginning in March of the current year and
continue to file for the remainder of the year even if the
subsidiary no longer satisfies the requirement for filing
the FR 2314 quarterly. In addition, if the subsidiary meets
the quarterly criteria due to a business combination, then
the parent organization must report the FR 2314 quarterly
(1) The foreign subsidiary has total assets equal to or
greater than $50 million (but less than $250 million),
or
4. Parent U.S. BHC has total consolidated assets of $500 million or
more as of June 30 of the preceding year or files the FR Y-9C to meet
supervisory needs.
5. Off-balance sheet activities (defined as the sum of Schedule BS,
items 20 through 30) include commitments to purchase foreign currencies
and U.S. dollar exchange, all other future and forward contracts, option
contracts, and the notional value of interest rate swaps, exchange swaps,
and other swaps.
GEN-2
(2) The subsidiary’s total assets are greater than one
percent of the consolidated top tier organization’s
total assets.
Other Reporting Criteria
• Each U.S. banking organization must submit a separate
FR 2314/FR 2314S for each of its foreign subsidiaries
satisfying the above criteria whether directly or indirectly owned. The reporting U.S. banking organization
must submit a report on a parent only (nonconsolidated) basis for each parent subsidiary meeting
the criteria and submit individual reports for each
lower level subsidiary required to file the report.
FR 2314 and 2314S
General Instructions March 2007
General Instructions
• The FR 2314/FR 2314S report for a subsidiary owned
by more than one parent organization should be submitted in its entirety by the organization with the majority
ownership. If a subsidiary is equally owned by two or
more parent organizations, the FR 2314/FR 2314S
report should be submitted in its entirety by the largest
organization based on total consolidated assets.
• Any U.S. federally insured foreign company which is a
subsidiary of a bank holding company(i.e., banks in
Puerto Rico or in U.S. territories or possessions);
Exemptions from Reporting Foreign
Subsidiary Financial Statements
• Any subsidiary of a Small Business Investment Company (SBIC controlled investment);
The following subsidiaries are exempt from submitting
the financial statements for foreign subsidiaries of U.S.
banking organizations:
• Any nondepository trust company that is a member of
the Federal Reserve System and required to file the
Consolidated Reports of Condition and Income;
• Any subsidiary with less than $50 million in total
assets unless the total assets of the subsidiary are
greater than one percent of the consolidated top-tier
organization’s total assets.
• Any company the shares of which are held: (1) as a
result of debts previously contracted (acquired under
section 4(c)(2) of BHC act); (2) in a fiduciary capacity
under section 4c(4) of BHC Act; or (3) solely as
collateral securing an extension of credit;
• Any foreign subsidiary in which the primary U.S.
regulator is an organization other than the Federal
Reserve System, such as the Securities and Exchange
Commission (SEC), Commodities Futures Trading
Commission (CFTC), State Insurance Commissioners
and State Securities departments;
• Any subsidiary that is required to file a Report of
Condition for Edge or Agreement Corporations
(FR 2886b);
• Any subsidiary, joint venture, or portfolio investment
that is required to file the Financial Statements of
Nonbank Subsidiaries of U.S. Bank Holding Companies (FR Y-11/FR Y-11S);
• Any subsidiary that is required to file the Financial
Statements for a Bank Holding Company Subsidiary
Engaged in Bank-Ineligible Securities Underwriting
and Dealing (FR Y-20);
• Any subsidiary of a ‘‘qualified foreign banking organization’’ as defined by Section 211.23(a) of Regulation
K (12 CFR 211.23(a)) except for subsidiaries of a U.S.
bank holding company, U.S. bank, or Edge corporation,
which is the direct subsidiary of a qualified foreign
banking organization;
• Any subsidiary that is considered a merchant banking
investment, the shares of which are held pursuant to
section 4(k)4(H) of the Bank Holding Company (BHC)
Act;
FR 2314 and 2314S
General Instructions March 2007
• Any subsidiary of a U.S. federally insured foreign
company that is a subsidiary of a bank holding company, unless such subsidiary is held pursuant to Regulation K;
• Any subsidiary that is inactive as of the end of the
reporting period;
• Any subsidiary such as a namesaver or a newly organized subsidiary that has never conducted any business
activity. However, a subsidiary that is newly incorporated is required to report upon the commence-ment of
a business activity if it meets the reporting criteria;
• Any subsidiary that was divested or liquidated during
the year. Reports must only be filed for subsidiaries
that are part of the parent organization’s structure as of
the close of the business day on the report date for
which the report is being filed; and
• Any subsidiary which is a special purpose vehicle
(SPV) formed as a vehicle for specific leasing transactions (for example, when an SPV is engaged in a single
leasing transaction).
Foreign subsidiaries that are not required to file under the
above criteria may be required to file this report by the
Federal Reserve Bank of the district in which they are
regulated.
A graphic representation of the general criteria for the
FR 2314/FR 2314S appears at the end of these General
Instructions (page GEN-8).
Frequency of Reporting
A U.S. banking organization must submit the FR 2314
report for each foreign subsidiary that meets the criteria
GEN-3
General Instructions
to file quarterly as of the last calendar day of March,
June, September and December. A U.S. banking organization must submit the FR 2314 report for each foreign
subsidiary that meets the criteria to file annually as of
December 31. A U.S. banking organization must submit
the FR 2314S for each foreign subsidiary that meets the
criteria to file the abbreviated report annually as of
December 31.
Preparation of the Reports
Parent U.S. banking organizations are requested to prepare and file the Financial Statements for Foreign Subsidiaries of U.S. Banking Organizations (FR 2314/
FR 2314S) in accordance with Generally Accepted
Accounting Principles (GAAP), and these instructions.
However, respondents may submit reports based on the
foreign country’s accounting standards if submitting
reports on this basis would materially reduce reporting
burden. All reports shall be prepared in a consistent
manner.
U.S. banking organizations should refer to the instructions for the preparation of the Consolidated Financial
Statements for Bank Holding Companies (FR Y-9C)
or the Parent Company Only Financial Statements (FR Y9SP) for additional information on the items requested on
this report. Copies of the FR 2314, FR 2314S, FR Y-9C,
and FR Y-9SP may be found on the Federal Reserve
Board’s public website (www.federalreserve.gov/
boarddocs/reportforms).
The foreign subsidiaries’ financial records shall be maintained in such a manner and scope so as to ensure that the
reports can be prepared and filed in accordance with
these instructions and reflect a fair presentation of the
subsidiaries’ financial condition and results of operations. Questions and requests for interpretations of matters appearing in any part of these instructions should be
addressed to the Federal Reserve Bank in the district
where the reports are submitted.
Report all financial items in thousands of U.S. dollars.
Assets or liabilities payable in other currencies should be
converted into dollars at the exchange rates prevailing on
the report date, except where required otherwise by
Generally Accepted Accounting Principles (GAAP).
The preferred method for reporting purchases and sales
of assets is as of the trade date. However, settlement date
GEN-4
accounting is acceptable if the reported amounts are not
materially different.
Applicability of Generally Accepted
Accounting Principles to Foreign
Subsidiaries of U.S. Banking Organization
Reporting Requirements
It should be noted that the presentation by subsidiaries
of assets, liabilities, and stockholders’ equity and the
recognition of income and expenses is requested to be
reported in accordance with Generally Accepted Accounting Principles (GAAP). Subsidiaries are required to
report certain other accounts or types of transactions on
schedules to the balance sheet and income statement. In
addition, these instructions designate where a particular
asset or liability should be reported.
There may be areas in which a reporting subsidiary
wishes more technical detail on the application of
accounting standards and procedures to the requirements
of these instructions. Such information may often be
found in the appropriate entries in the Glossary section of
the FR Y-9C instructions or, in more detail, in the GAAP
standards. Selected sections of the GAAP standards are
referenced in the instructions where appropriate.
Cover Page
The cover page of the report must include the legal name
of the U.S. banking organization filing the FR 2314/
FR 2314S and the mailing address. The name and
telephone number of a contact at the banking organization to whom questions about the report(s) may be
directed must be indicated.
Legal Name of Foreign Subsidiaries
When specifying the name of the foreign subsidiary for
which the FR 2314/FR 2314S is being filed, use the legal
name of the subsidiary as it appears on the papers of
incorporation or formation documents. The legal name
must be the same name that is specified on the Report of
Changes in Organizational Structure (FR Y-10).
Signatures
The declaration on the front page of the reporting form
must be signed by an officer at the foreign subsidiary or
at the U.S. parent organization who is authorized to make
such declarations for that organization.
FR 2314 and 2314S
General Instructions March 2007
General Instructions
When the top tier bank holding company is domiciled
outside the United States, the holding company may
authorize an officer of the respondent nonbank subsidiary
to sign the report.
Submission of Reports
The reports are to be submitted for each report date on
the report forms provided by the Federal Reserve Bank.
No caption on the report form should be changed in any
way. No item is to be left blank. An entry must be made
for each item, i.e., an amount, a zero, or an ‘‘N/A.’’
All items will not be applicable to each foreign subsidiary required to file the report. An ‘‘N/A’’ should be
entered if the foreign subsidiary cannot be involved in a
transaction because of the nature of the organization. A
zero should be entered whenever a foreign subsidiary can
participate in an activity, but may not on the report date,
have any outstanding balances.
Where to Submit the Reports
The original reports and the number of copies specified
by the Reserve Bank should be submitted to the Federal
Reserve Bank of the District in which the reporter’s
parent U.S. bank or bank holding company is domiciled.
In cases where these institutions are not in the same
District, unless the respondent has specific instructions to
the contrary, the following rules shall apply:
1. Subsidiaries owned through a U.S. bank should send
reports to the Reserve Bank of that parent.
2. Subsidiaries owned directly by a U.S. bank holding
company (that is, not through a subsidiary U.S. bank)
should send reports to the Reserve Bank of the U.S.
Banking Organization.
Generally, the Federal Reserve District in which a parent
Edge or agreement corporation resides is not considered
in determining where to submit the report.
All reports shall be made out clearly and legibly by
typewriter or in ink. Reports completed in pencil will not
be accepted. Computer printouts are acceptable, provided
they are identical in format and detail to the reporting
form, including all item and column captions.
Electronic submission of report form. Any banking organization interested in submitting the FR 2314/FR 2314S
electronically should contact the Federal Reserve Bank in
FR 2314 and 2314S
General Instructions March 2007
the district where the parent U.S. Bank or bank holding
company is domiciled.
Banking organizations choosing to submit these reports
electronically must maintain in their files a manually
signed and attested printout of the data submitted. The
cover page of the Reserve Bank supplied report forms
received for that report date should be used to fulfill the
signature requirement and this page should be attached to
the printout placed in the banking organization’s files.
Submission Date
A U.S. banking organization must file this report for its
foreign subsidiaries no later than 60 calendar days after
the report date. The filing of a completed report will be
considered timely, regardless of when the reports are
received by the appropriate Federal Reserve Bank, if
these reports are mailed first class and postmarked no
later than the third calendar day preceding the submission
deadline. In the absence of a postmark, a company whose
completed FR 2314/FR 2314S is received late may be
called upon to provide proof of timely mailing.
A ‘‘Certificate of Mailing’’ (U.S. Postal Service form
3817) may be used to provide such proof. If an overnight
delivery service is used, entry of the completed original
reports into the delivery system on the day before the
submission deadline will constitute timely submission. In
addition, the hand delivery of the completed original
reports on or before the submission deadline to the
location to which the reports would otherwise be mailed
is an acceptable alternative to mailing such reports.
Companies that are unable to obtain the required officers’
signatures on their completed original reports in sufficient time to file these reports so that they are received by
the submission deadline may contact the Federal Reserve
Bank to which they mail their original reports to arrange
for the timely submission of their report data and the
subsequent filing of their signed reports.
If the submission deadline falls on a weekend or holiday,
the report must be received by 5:00 P.M. on the first
business day after the Saturday, Sunday, or holiday. Any
report received after 5:00 P.M. on the first business day
after the Saturday, Sunday, or holiday deadline will be
considered late unless it has been postmarked three
calendar days prior to the original Saturday, Sunday, or
holiday submission deadline (original deadline), or the
institution has a record of sending the report by overnight
service one day prior to the original deadline.
GEN-5
General Instructions
NOTE: A reporting U.S. banking organization must
submit all of its required nonbank subsidiary reports on
or before the submission deadline to be considered
timely.
Monitoring of Regulatory Reports
Federal Reserve Banks will monitor the filing of all
regulatory reports to ensure that they are filed in a timely
manner and are accurate and not misleading. Many
reporting errors can be screened through the use of
computer validity edit checks which are detailed in the
Checklist accompanying the reporting instructions.
Reporting deadlines are detailed in the Submission Date
section of these general instructions. Additional information on the monitoring procedures are available from the
Federal Reserve Banks.
Confidentiality
These reports are available to the public upon request on
an individual basis. However, a U.S. banking organization may request confidential treatment for one or more
of the subsidiaries for which it submits the financial
statements for foreign subsidiaries of U.S. banking organizations if it is of the opinion that disclosure of certain
commercial or financial information in the report would
likely result in substantial harm to its (or its subsidiaries’)
competitive position or that disclosure of the submitted
personal information would result in unwarranted invasion of personal privacy.
A request for confidential treatment must be submitted in
writing concurrently with the submission of the report.
The request must discuss in writing the justification for
which confidentiality is requested, demonstrating the
specific nature of the harm that would result from public
release of the information; merely stating that competitive harm would result or that information is personal is
not sufficient.
INFORMATION FOR WHICH CONFIDENTIAL
TREATMENT IS REQUESTED SHOULD BE
REPORTED SEPARATELY BOUND WITH A SEPARATE FR 2314/FR 2314S COVER SHEET LABELED
‘‘CONFIDENTIAL.’’ THIS INFORMATION SHOULD
BE SPECIFICALLY IDENTIFIED AS BEING
CONFIDENTIAL.
The Federal Reserve will determine whether information
submitted with a request for confidential treatment will
GEN-6
be so treated, and will advise the U.S. banking organization through the appropriate Reserve Bank of any decision to make available to the public any of the information.
The Federal Reserve System may subsequently release
information for which confidential treatment is requested
if the Board of Governors determines that the disclosure
of such information is in the public interest.
Amended Reports
The Federal Reserve may require the filing of amended
Financial Statements of Foreign Subsidiaries of U.S.
Banking Organizations if reports as previously submitted
contain significant errors. In addition, a U.S. banking
organization should file an amended report when internal
and external auditors make audit adjustments that result
in a restatement of financial statements affecting reports
previously submitted to the Federal Reserve.
When the Federal Reserve’s interpretation of how these
instructions should be applied to a specified event or
transaction (or series of related events or transactions)
differs from the reporting institution’s interpretation, the
Federal Reserve may require the reporter to reflect the
event(s) or transaction(s) in its FR 2314/FR 2314S
reports in accordance with the Federal Reserve’s interpretation and to amend previously submitted reports.
In the event that certain of the required data are not
available, respondents should contact the appropriate
Reserve Bank for information on submitting revised
reports.
Definitions
Respondents should refer to the Glossary of the Instructions for the Consolidated Financial Statements for Bank
Holding Companies (FR Y-9C) for information concerning general definitions.
For purposes of this report, related organizations include
(1) any organization that directly or indirectly controls
the reporting nonbank subsidiary, (2) any organization
that is controlled directly or indirectly by the reporting
nonbank subsidiary, or (3) any organization that is controlled directly or indrectly by any bank holding company that controls the reporting subsidiary (i.e., if more
than one bank holding company directly or indirectly
controls the reporting nonbank subsidiary, then all organizations directly or indrectly controlled by each bank
FR 2314 and 2314S
General Instructions March 2007
General Instructions
holding company is considered related regardless of
whom submits this report). In addition, for purposes of
this report related companies include all associated companies.
Nonrelated organizations include all organizations that
do not meet the definition of ‘‘related organizations.’’
Nonrelated organizations include all organizations outside of the bank holding company structure and refer to
third party entities.
In addition, for purposes of this report ‘‘subsidiary’’6
means any organization that has more than 50 percent of
its voting shares held directly or indirectly, or that
otherwise is controlled or capable of being controlled, by
the investor or an affiliate of the investor under any
authority. Among other circumstances, an investor is
considered to control an organization if:
(1) The investor or an affiliate is a general partner of the
organization; or
(2) The investor and its affiliates directly or indirectly
own or control more than 50 percent of the equity of
the organization.
6. As defined by Section 211.2(w) of Regulation K of the Board of
Governors of the Federal Reserve System.
FR 2314 and 2314S
General Instructions March 2007
All references in the line item instructions to the ‘‘reporting bank holding company’’ refer to the subsidiary’s
parent bank holding company.
Miscellaneous General Instructions
Rounding
All financial items must be reported in thousands of
dollars, with the figures rounded to the nearest thousand.
Items less than $500 should be reported as zero.
Negative Entries
Negative entries are generally not appropriate on the
FR 2314/FR 2314S reports and should not be reported.
Hence, assets with credit balances must be reported in
liability items and liabilities with debit balances must be
reported in asset items, as appropriate, and in accordance
with these instructions.
Additional Information
The Federal Reserve System reserves the right to require
additional information from foreign subsidiaries if the
FR 2314/FR 2314S report is not sufficient to appraise the
financial soundness of the subsidiary or to determine its
compliance with applicable laws and regulations.
GEN-7
General Instructions
General Criteria Chart for FR 2314/FR 2314S
See General Instructions for more detail.
Quarterly Filers
Detailed Report
(FR 2314)
Annual Filers
Detailed Report
(FR 2314)
Annual Filers
Abbreviated Report
(FR 2314S)
Exemptions
No report required
Parent BHC files the
FR Y-9C or state member
bank or Edge or agreement
corporation has total assets
equal to or greater than
$500 million, and any one
of the following:
(1) Subsidiary’s total assets
are greater than or
equal to $1 billion
(2) Subsidiary’s offbalance-sheet activities
are greater than or
equal to $5 billion
(3) Subsidiary’s equity
capital is greater than
or equal to 5% of top
tier consolidated equity
capital or
(4) Subsidiary’s operating
revenue is greater than
or equal to 5% of top
tier consolidated operating revenue
Subsidiary does not meet
any of the quarterly filing
criteria and its total assets
are greater than or equal to
$250 million but less than
$1 billion
Subsidiary does not meet
any of the FR 2314 filing
criteria and
(1) Subsidiary’s total assets
are greater than or
equal to $50 million
but less than $250 million or
(2) Subsidiary’s total assets
are greater than 1% of
top tier consolidated
total assets
Subsidiary does not meet
any of the FR2314S filing
criteria and
(1) Subsidiary’s total assets
are less than $50 million or
(2) Specific exemption (see
exemption list in General Instructions)
GEN-8
FR 2314 and 2314S
General Instructions March 2007
LINE ITEM INSTRUCTIONS FOR THE
Income Statement
Schedule IS
General Instructions
Report all income and expense of the subsidiary for the
calendar year-to-date. Include adjustments of accruals
and other accounting estimates made shortly after the end
of a reporting period that relate to the income and
expense of the reporting period. A subsidiary that began
operating during the reporting period should report all
income earned and expense incurred since it commenced
operations and all pre-opening income earned and expenses incurred from inception until that date.
Line Item 1
Interest income.
Report in the appropriate subitem all interest, fees and
similar income received by the subsidiary from nonrelated organizations (associated with assets reported in
Lines 1 through 7 on Schedule BS) in item 1(a) and on
balances due from related organizations in item 1(b).
Include income resulting from interest earned on loans
and leases (including related fees); income on balances
due from depository institutions; interest and dividends
on securities; interest from assets held in trading accounts;
interest on federal funds sold and securities purchased
under agreements to resell; and any other interest income
received by the subsidiary. When yield related fees are
collected in connection with a loan syndication or participation and passed through to another lender, report only
the subsidiary’s proportional share of such fees.
Deduct interest rebated to customers on loans paid before
maturity from gross interest earned on loans; do not
report as an expense. Exclude from this item:
(1) fees that are not yield related such as fees for
servicing real estate mortgage or other loans which
are not assets of the subsidiary (report in item 5(a)(6));
(2) net gains or losses from the sale of assets (report in
item 5 or 7, as appropriate);
FR 2314
Income Statement
March 2007
(3) charges to merchants for handling credit card or
charge sales when the subsidiary does not carry the
related loan accounts on their books (report in item 5
below); and
(4) reimbursements for out-of-pocket expenditures made
by the subsidiary for the account of its customers. If
the subsidiary’s expense accounts were charged with
the amount of such expenditures, the reimbursements
should be credited to the same expense accounts.
Line Item 1(a) Interest and fee income from
nonrelated organizations.
Report all interest, fees, and similar income from nonrelated organizations.
Line Item 1(b) Interest and fee income from
related organizations.
Report all interest, fees, and similar income from related
organizations. Also, a special purpose subsidiary should
report interest received from (or earned on) the loan
made to the parent bank holding company with the
proceeds from the issuance of trust preferred securities.
Exclude any noninterest income and income from undistributed earnings of related organizations (report in item
5(b)). Include dividends declared or paid by subsidiaries.
Line Item 1(c)
Total interest income.
Report the sum of items 1(a) and 1(b).
Line Item 2
Interest expense.
Report in the appropriate subitem the total amount of
interest expense of the subsidiary pertaining to nonrelated organizations in item 2(a) and pertaining to related
organizations in item 2(b). Include expenses on deposits,
on federal funds purchased and securities sold under
IS-1
Income Statement
agreements to repurchase, on short- and long-term borrowings, on subordinated notes and debentures, on mandatory securities, on mortgage indebtedness and obligations under capitalized leases, and all other interest
expense.
organizations in item 5(a) and from related organizations
in item 5(b). Also, a subsidiary may include as other
noninterest income in item 5(a)(7) or 5(b) below net
gains (losses) from the sale of loans and certain other
assets as long as the subsidiary reports such transactions
on a consistent basis.
Line Item 2(a) Interest expense pertaining to
nonrelated organizations.
Line Item 5(a)
Report all interest expense pertaining to nonrelated organizations.
Report all income earned from nonrelated organizations
in the appropriate item.
Line Item 2(b) Interest expense pertaining to
related organizations.
Line Item 5(a)(1)
Report all interest expense pertaining to related organizations. Exclude distrubutions from a special purpose subsidiary (trust) to trust preferred stockholders. Report such
distributions as dividends.
Line Item 2(c)
Total interest expense.
Report the sum of items 2(a) and 2(b).
Line Item 3
Net interest income.
Report the difference between item 1(c), ‘‘Total interest
income,’’ and item 2(c), ‘‘Total interest expense.’’ If this
amount is negative, enclose it in parentheses.
Line Item 4
Provision for loan and lease losses.
Report the amount needed to make the allowance for loan
and lease losses, as reported in Schedule BS, item 3(b),
adequate to absorb expected loan and lease losses, based
upon management’s evaluation of the subsidiary’s current loan and lease exposures. The amount reported must
equal Schedule IS-B, item 4, ‘‘Provision for loan and
lease losses.’’ Enclose negative amounts in parentheses.
Exclude provision for credit losses on off-balance-sheet
credit exposures and provision for allocated transfer risk,
both of which should be reported in item 7, ‘‘Noninterest
expense.’’ The amount reported here may differ from the
bad debt expense deduction taken for federal income tax
purposes.
Line Item 5
Noninterest income.
Report in the appropriate subitem all other income not
properly reported in item 1(c), ‘‘Total interest income’’
that is derived from activities in which the subsidiary is
engaged. Report noninterest income from nonrelated
IS-2
From nonrelated organizations.
Income from fiduciary activities.
Report gross income from services rendered by the trust
department of the subsidiary or the subsidiary acting in
any fiduciary capacity. Include commissions and fees on
the sale of annuities by these entities that are executed in
a fiduciary capacity. Report ‘‘N/A’’ if the subsidiary has
no trust departments or renders no services in any
fiduciary capacity.
Line Item 5(a)(2)
accounts.
Service charges on deposit
Report the amounts charged depositors:
(1) Who maintain accounts with the subsidiary or who
fail to maintain specified minimum deposit balances;
(2) Based on the number of checks drawn on and
deposits made in deposit accounts;
(3) For checks drawn on ‘‘no minimum-balance’’ deposit accounts;
(4) For withdrawals from nontransaction deposit
accounts;
(5) For accounts which have remained inactive for
extended periods of time or which have become
dormant;
(6) For deposits to or withdrawals from deposit accounts
through the use of automated teller machines or
remote service units;
(7) For the processing of checks drawn against insufficient funds. Exclude subsequent charges levied
against overdrawn accounts based on the length of
time the account has been overdrawn and report the
interest as interest and fee income in line 1 above;
(8) For issuing stop payment orders;
Income Statement
FR 2314
March 2007
Income Statement
(9) For certifying checks; and
(10) For accumulation or disbursement of funds deposited to IRAs or Keogh Plan accounts. If the subsidiary is a bank and the account is handled by the
bank’s trust department (FR 2314), include the
charges in line 5(a)(1) above.
Line Item 5(a)(3)
Trading revenue.
Report the net gain or loss from trading cash instruments
and derivative contracts (including commodity contracts)
that has been recognized during the calendar year-todate. If the amount reported is a net loss, enclose it in
parentheses.
Include as trading revenue:
(1) Revaluation adjustments to the carrying value of
assets and liabilities reportable in Schedule BS,
item 4, ‘‘Trading assets,’’ and Schedule BS, item 11,
‘‘Trading liabilities,’’ resulting from the periodic
marking to market of such instruments;
(2) Revaluation of adjustments from the periodic marking to market of interest rate, foreign exchange,
equity derivative, commodity and other contracts
held for trading; and
(3) Incidental income and expense related to the purchase and sale of cash instruments reportable in
Schedule BS, item 4, ‘‘Trading assets,’’ and Schedule
BS, item 11, ‘‘Trading liabilities,’’ and derivative
contracts held for trading.
Line Item 5(a)(4) Investment banking, advisory,
brokerage, and underwriting fees and commissions.
Report fees and commissions from investment advisory
and management services, merger and acquisition services, and other related consulting fees. Include fees and
commissions from securities brokerage activities, from
the sale and servicing of mutual funds, and from the
purchase and sale of securities and money market instruments where the subsidiary is acting as agent for other
subsidiaries or customers (if these fees and commissions
are not included in item 5(a)(1), ‘‘Income from fiduciary
activities,’’ or item 5(a)(3), ‘‘Trading revenue’’). Include
income from the sale of annuities and related commissions and fees.
Also include the subsidiary’s proportionate share of the
income or loss before extraordinary items and other
FR 2314
Income Statement
March 2007
adjustments from its investments in corporate joint ventures, unincorporated joint ventures, general partnerships, and limited partnerships over which the subsidiary exercises significant influence that are principally
engaged in investment banking, advisory, brokerage, or
securities underwriting activities.
Line Item 5(a)(5)
Venture capital revenue.
Report as venture capital revenue market value adjustments, interest, dividends, gains, and losses (including
impairment losses) on venture capital investments (loans
and securities). Include any fee income from venture
capital activities that is not reported in one of the
preceding income items. Also include the subsidiary’s
proportionate share of the income or loss before extraordinary items and other adjustments from its investments
in corporate joint ventures, unincorporated joint ventures,
general partnerships, and limited partnerships over which
the subsidiary exercises significant influence that are
principally engaged in venture capital activities.
In general, venture capital activities involve 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. The
primary objective of these investments is capital growth.
Line Item 5(a)(6)
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. Subsidiaries should report servicing income net of
the related servicing assets’ amortization expense. Include
impairments recognized on servicing assets. For further
information on servicing, see the FR Y-9C Glossary
entry for ‘‘servicing assets and liabilities.’’
Line Item 5(a)(7)
Net securitization income.
Report net gains (losses) on assets sold in securitization
transactions, i.e., net of transaction costs. Include fees
(other than servicing fees) earned from the subsidiary’s
securitization transactions and unrealized losses (and
recoveries of unrealized losses) on loans and leases held
for sale in securitization transactions. Exclude income
from servicing securitized assets (report in item 5(a)(6),
above) and from seller’s interests and residual interests
IS-3
Income Statement
retained by the subsidiary (report in the appropriate
subitem of item 1, ‘‘Interest income’’).
Line Item 5(a)(8)
Insurance commissions and fees.
Report income from insurance activities (includes premiums and supplemental contracts); service charges, commissions and fees from the sale of insurance; commissions on reinsurance; and other insurance related income.
Also include the subsidiary’s proportionate share of the
income or loss before extraordinary items and other
adjustments from its investments in corporate joint ventures, unincorporated joint ventures, general partnerships, and limited partnerships over which the subsidiary
exercises significant influence that are principally engaged in insurance underwriting, reinsurance, or insurance sales activities. Exclude commissions and fees on
the sale of annuities reported in item 5(a)(1).
Line Item 5(a)(9)
Other noninterest income.
Report all other noninterest income derived from nonrelated organizations that is not reported above.
Line Item 5(b)
From related organizations.
Exclude:
(1) the change in net unrealized holding gains (losses) on
available-for-sale securities during the calendar year
(report in Schedule IS-A, item 5),
(2) realized gains (losses) on trading securities (report in
Schedule IS, item 5(a)(3)), ‘‘Trading revenue,’’ and
(3) net gains (losses) from the sale of detached securities
coupons and the sale of ex-coupon securities, and
report in item 7, ‘‘Noninterest expense,’’ or item
5(a)(9), ‘‘Other noninterest income,’’ as appropriate.
Line Item 7
Noninterest expense.
Report in the appropriate subitem all other expense not
properly reported in item 2(c), ‘‘Total interest expense’’
that is incurred from activities in which the subsidiary
is engaged. Report noninterest expense pertaining to
nonrelated organizations in item 7(a) and pertaining to
the organization in item 7(b). Also, a subsidiary may
include as other noninterest expense in item 7(a) or 7(b)
below net losses (gains) from the sale of loans and certain
other assets as long as the subsidiary reports such transactions on a consistent basis.
Report all noninterest income derived from related organizations. Exclude the parent’s equity in undistributed
income of subsidiaries from this item and report in
item 11.
Line Item 7(a)
organizations.
Line Item 5(c)
Report the amount of noninterest expense of the subsidiary pertaining to activities with nonrelated organizations
(i.e., third party transactions). Enclose negative amounts
in parentheses.
Total noninterest income.
Report the sum of items 5(a)(1) through 5(a)(9) and 5(b).
Line Item 6 Realized gains (losses) on securities
not held in trading accounts.
Report the net gain or loss realized during the calendar
year-to-date from the sale, exchange, redemption, or
retirement of all securities not held in trading accounts.
The realized gain or loss on the security is the difference
between the sales price (excluding interest at the coupon
rate accrued since the last interest payment date, if any)
and the amortized cost. Also include in this item the
write-downs of the cost basis of individual securities for
other-than-temporary impairments. If the amount to be
reported in this item is a net loss, enclose it in parentheses. Do not adjust for applicable income taxes (income
taxes applicable to gains (losses) on securities are to be
included in the applicable income taxes reported in item
9 below).
IS-4
Pertaining to nonrelated
Report salaries and benefits of all officers and employees
of the subsidiary including guards and contracted guards,
temporary office help, dining room and cafeteria employees, and building department officers and employees
(including maintenance personnel). Include gross salaries, wages, and other compensation; contributions to
retirement plan, pension fund and profit-sharing plan;
employee stock ownership plan, employee stock purchase plan, and employee savings plan; social security
and other taxes paid by the subsidiary; health and life
insurance premiums; relocation and tuition programs;
and the cost of all other fringe benefits for officers and
employees.
Report all noninterest expenses related to the use of
premises, equipment, furniture, and fixtures, net of rental
income, that are reportable in Schedule BS, item 5,
Income Statement
FR 2314
March 2007
Income Statement
‘‘Premises and fixed assets.’’ If this net amount is a credit
balance, enclose it in parentheses.
Deduct rental income from gross premises and fixed asset
expense. Rental income includes all rentals charged for
the use of buildings not incident to their use by the
reporting subsidiary, including rentals by regular tenants
of the subsidiary, income received from short-term rentals of other facilities of the subsidiary, and income from
sub-leases. Also deduct income from assets that indirectly represent premises, equipment, furniture, or fixtures reportable in Schedule BS, item 5, ‘‘Premises and
fixed assets.’’ Include normal and recurring depreciation
and amortization charges against assets; all operating
lease payments made by the subsidiary on premises and
equipment; cost of ordinary repairs to premises (including leasehold improvements), equipment, furniture, and
fixtures; cost of service or maintenance contracts for
equipment, furniture, and fixtures; insurance expense
related to the use of premises, equipment, furniture, and
fixtures; all property tax and other tax expense related to
premises (including leasehold improvements), equipment, furniture, and fixtures; cost of heat, electricity,
water, and other utilities connected with the use of
premises and fixed assets; cost of janitorial supplies and
outside janitorial services; and services and fuel, maintenance, and other expenses related to the use of the
subsidiary-owned automobiles, airplanes, and other vehicles for the subsidiary’s business.
Include fees paid to directors and advisory directors for
attendance at board of directors or committee meetings;
premiums on fidelity insurance, directors’ and officers’
liability insurance, and life insurance policies for which
the subsidiary is the beneficiary; federal deposit insurance premium; Comptroller of the Currency assessment
expense; legal fees and other direct costs incurred in
connection with foreclosures; and advertising, promotional, public relations, and business development expenses; data processing cost; minority interest in the net
income or loss of the subsidiary; goodwill impairment
losses; amortization expenses of and impairment losses
for other intangible assets; and all other noninterest
expenses pertaining to nonrelated organizations.
Also report any provision for credit losses related to
off-balance-sheet credit exposures, based upon management’s evaluation of the subsidiary’s current off-balancesheet credit exposures.
FR 2314
Income Statement
March 2007
Line item 7(b)
Pertaining to related organizations.
Report all expenses involving related organizations that
cannot properly be reported in Schedule IS, item 2(b),
‘‘Interest expense pertaining to related organizations.’’
Report amounts that have net credit balances as noninterest income in item 5(b), ‘‘Noninterest income from
related organizations.’’
Line Item 7(c)
Total noninterest expense.
Report the sum of items 7(a) and 7(b).
Line Item 8 Income (loss) before extraordinary
items and other adjustments.
Report the sum of items 3, 5(c) and 6, minus items 4 and
7(c). If the result is negative, enclose the amount in
parentheses.
Line Item 9
(estimated).
Applicable income taxes (benefits)
Report the total estimated federal, state and local, and
foreign income tax expense applicable to item 8, ‘‘Income
(loss) before extraordinary items and other adjustments,’’
including the tax effects of gains (losses) on securities not
held in trading accounts (i.e., available-for-sale securities
and held-to-maturity securities). Include both the current
and deferred portions of these income taxes. If the result
is negative (i.e., the amount is a tax benefit rather than a
tax expense), enclose the amount in parentheses.
Include as applicable income taxes all taxes based on a
net amount of taxable revenue less deductible expenses.
Exclude the estimated income taxes applicable to foreign
currency translation adjustments included in Schedule IS-A, item 5. Exclude from applicable income taxes
all taxes based on gross revenues or gross receipts.
Line Item 10 Extraordinary items, net of
applicable income taxes.
Report the total of extraordinary items and other adjustments, net of income taxes. Include the material effects of
any extraordinary items and the cumulative effect of all
changes in accounting principles except those required to
be reported as a change in equity capital in accordance
with GAAP.
IS-5
Income Statement
Include:
Line Item 12
(1) Realized tax benefits of operating loss carryforwards
(other than realized loss carryforward benefits of
purchased subsidiaries which should be treated as an
adjustment of purchase price);
Report the sum of items 8, 10, and 11 minus item 9. If
this amount is a net loss, enclose it in parentheses. This
item must equal Schedule IS-A, Changes in Equity
Capital, item 2, “Net income.”
(2) The results of discontinued operations as determined
in accordance with the provisions of FASB Statement
No. 144;
Memoranda
Net income (loss).
(3) Material aggregate gains on troubled debt restructuring of the subsidiary’s own debt as determined in
accordance with the provisions of FASB Statement
No. 15; and
Memorandum item 1 is to be completed by nonbank
subsidiaries that are required to complete Schedule
BS-A, Memoranda items 1(b) and 1(c).
(4) The material effects on any other events or transactions that are both unusual in nature and infrequent in
their occurrence. To be unusual in nature, the underlying event or transaction should be abnormal and
significantly different from the ordinary and typical
activities of the subsidiary. An event or transaction
not reasonably expected to recur in the foreseeable
future is considered to occur infrequently. Exclude
net gains or losses on the sale or other disposal of the
subsidiary’s premises and fixed assets, other real
estate owned, coins, art and other similar assets, as
well as any branch offices; report these gains or
losses in Schedule IS, Items 5(a)(9) or 7, respectively.
Line Item 1 Noncash income from negative
amortization on closed-end loans secured by 1–4
family residential properties.
If the amount is negative, enclose it in parentheses.
Line Item 11 Equity in undistributed income (loss)
of subsidiary(s).
Report the amount of the parent subsidiary’s proportionate interest in the subsidiary’s(s’) net income (loss) less
any dividends declared by the subsidiary(s) for the
calendar year-to-date. Report dividends in item 1(b).
IS-6
Report the amount of noncash income from negative
amortization on closed-end loans secured by 1–4 family
residential properties (i.e., interest income accrued and
uncollected that has been added to principal) included in
interest and fee income on loans from nonrelated organizations (Schedule IS, item 1(a)).
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).
Income Statement
FR 2314
March 2007
LINE ITEM INSTRUCTIONS FOR
Changes in Equity Capital
Schedule IS-A
General Instructions
Total equity capital includes perpetual preferred stock,
common stock, capital surplus, retained earnings, accumulated other comprehensive income and other equity
capital components such as treasury stock and unearned
Employee Stock Ownership Plan Shares. All amounts,
other than the amount reported in item 1, should represent net aggregate changes for the calendar year-to-date.
Enclose all net decreases and losses (net reductions of
equity capital) in parentheses.
ment of the subsidiary’s capital stock. Limited-life preferred stock is not included in equity capital.
Report the total amount of new capital stock issued, net
of any expenses associated with the issuance of the stock.
Report the changes in the subsidiary’s total equity capital
resulting from:
(1) Sale of the subsidiary’s perpetual preferred stock or
common stock;
(2) Exercise of stock options, including:
Line Item 1 Equity capital most recently reported
for the end of the previous calendar year (i.e., after
adjustments from amended Income Statements).
Report the subsidiary’s total equity capital balance most
recently reported for the previous calendar year-end after
the filing of any amended report(s). Include the cumulative effect, net of applicable income taxes, of those
changes in any accounting principles adopted during the
calendar year-to-date reporting period that were applied
retroactively and for which prior years’ financial statements were restated. Also, include the sum of all corrections, net of applicable income taxes, resulting from
material accounting errors that were made in prior years
and not corrected by the filing of an amended report for
the period in which the error was made.
Line Item 2
Net income (loss).
Report the net income (loss) for the calendar year-to-date
as reported on the Income Statement, item 12, ‘‘Net
income (loss).’’
(a) Any income tax benefits to the subsidiary resulting from the sale of the subsidiary’s own stock
acquired under a qualified stock option within
three years of its purchase by the employee who
had been granted the option; and
(b) Any tax benefits to the subsidiary resulting from
the exercise (or granting) of nonqualified stock
options (on the subsidiary’s stock) based on the
difference between the option price and the fair
market value of the stock at the date of exercise
(or grant);
(3) The conversion of convertible debt, limited-life preferred stock, or perpetual preferred stock into perpetual preferred or common stock;
(4) Redemption of perpetual preferred stock or common
stock;
(5) Retirement of perpetual preferred stock or common
stock including:
Line Item 3 Sale, conversion, acquisition, or
retirement of common stock and perpetual
preferred stock.
(a) The net decrease in equity capital which occurs
when cash is distributed in lieu of fractional
shares in a stock dividend; and
Report the changes in the subsidiary’s total equity capital
resulting from the sale, conversion, acquisition, or retire-
(b) The net increase in equity capital when a stockholder who receives a fractional share from a
FR 2314
Changes in Equity Capital
March 2007
IS-A-1
Schedule IS-A
stock dividend purchases the additional fraction
necessary to make a whole share; and
(6) Capital-related transactions involving the subsidiary’s Employee Stock Option Plan.
Line Item 4
LESS: Cash dividends declared.
Report all cash dividends declared during the calendar
year-to-date, including dividends on common and preferred stock. Include dividends not payable until after the
report date. Also, a special purpose subsidiary (trust)
should report dividends declared on the trust preferred
stock. Exclude dividends declared during the previous
calendar year but paid in the current period.
includes changes during the calendar year-to-date in: net
unrealized holding gains (losses) on available-for-sale
securities, accumulated net gains (losses) on cash flow
hedges, foreign currency translation adjustments, and
minimum pension liability adjustments. Refer to the
FR Y-9C instructions and FASB Statement No. 130 for
additional information on reporting this item.
Line Item 6
Other adjustments to equity capital.
Report all adjustments to equity capital that are not
properly reported in items 1 through 5 above. This item
should include:
(1) changes incident to business combinations;
Cash dividends are payments of cash to stockholders in
proportion to the number of shares they own. Cash
dividends on preferred and common stock are to be
reported on the date they are declared by the subsidiary’s
board of directors (the declaration date) by debiting
‘‘retained earnings’’ and crediting ‘‘dividends declared
not yet payable,’’ which is to be reported in other
liabilities. Upon payment of the dividend, ‘‘dividends
declared not yet payable’’ is debited for the amount of the
cash dividend with an offsetting credit, normally in an
equal amount, to ‘‘dividend checks outstanding.’’
(2) sales of treasury stock (the resale or the disposal on
the subsidiary’s own perpetual preferred stock or
common stock, i.e., treasury stock transactions);
A liability for dividends payable may not be accrued in
advance of the formal declaration of a dividend by the
boards of directors. However, the subsidiary may segregate a portion of retained earnings in the form of a capital
reserve in anticipation of the declaration of a dividend.
(5) contributions and distributions to and from partners
or limited liability company (LLC) shareholders
when the company is a partnership or a LLC.
Line Item 5
Other comprehensive income.
Report the amount of other comprehensive income for
the calendar year-to-date. Other comprehensive income
IS-A-2
(3) LESS: Purchases of treasury stock (the resale or
the disposal on the subsidiary’s own perpetual preferred stock or common stock, i.e., treasury stock
transactions);
(4) change in offsetting debit to the liability for Employee Stock Ownership Plan (ESOP) debt guaranteed by the subsidiary; and
Line Item 7
period.
Total equity capital at end of current
Report the sum of items 1, 2, 3, 5, and 6, minus item 4.
This item must equal Schedule BS, Balance Sheet item
18(g), ‘‘Total equity capital.’’
Changes in Equity Capital
FR 2314
March 2007
LINE ITEM INSTRUCTIONS FOR
Changes in Allowance
for Loan and Lease Losses
Schedule IS-B
General Instructions
Line Item 2
Report all changes in the allowance account on a year-todate basis. When the subsidiary maintains an allowance
for possible loan and lease losses, report all related
transactions and reconcile, beginning with the balance
reported at the end of the previous year, to the balance of
the allowance shown in Schedule BS, Balance Sheet,
Item 3(b), as of the end of the current period. The
provision for possible loan and lease losses should
correspond to the amount reported in Schedule IS, item 4,
‘‘Provision for loan or lease losses.’’ Exclude transactions pertaining to reserves carried in capital accounts,
such as reserves for contingencies that represent a segregation of undivided profits. Also exclude any allowance
for credit losses on off-balance-sheet exposures.
Include recoveries of amounts previously charged off
against the allowance for possible loan and lease losses.
Line Item 1 Balance most recently reported at end
of previous calendar year.
Include any increase or decrease resulting from foreign
currency translation of the allowance for possible loan
and lease losses into dollars.
Include the ending balance as most recently reported for
the prior year end in the allowance for possible loan and
lease losses account. The amount must reflect the effect
of all corrections and adjustments to the allowance for
loan and lease losses that were made in any amended
report(s) for the previous calendar year-end.
FR 2314
Changes in Allowance for Loan and Lease Losses
March 2007
Line Item 3
Recoveries.
Less: Charge-offs.
Enter the amount of gross charge-offs on loans and leases
during the period.
Line Item 4
Provision for loan and lease losses.
This item must equal Schedule IS, item 4, ‘‘Provision for
loan or lease losses.’’ If the amount is negative, enclose it
in parentheses.
Line Item 5
Line Item 6
Adjustments.
Balance at end of current period.
Enter the total of items 1, 2, 4, and 5, minus item 3. This
item must equal Schedule BS, item 3(b), ‘‘Allowance for
Loan and Lease Losses.’’
IS-B-1
LINE ITEM INSTRUCTIONS FOR
Balance Sheet and
Off-Balance-Sheet Items
Schedule BS
Assets
Items 1 through 8 exclude balances due from related
institutions (see definition in the General Instructions).
Report balances due from related institutions in item 9.
Line Item 1 Cash and balances due from
depository institutions.
(a) Checks or drafts in the process of collection that
are drawn on banking institutions, and payable
immediately upon presentation, including checks
or drafts already forwarded for collection and
checks on hand which will be presented for
payment or forwarded for collection on the following business day in the country where the
reporting office that is clearing or collecting the
check or draft is located;
Report the total of non-interest bearing and interestbearing balances due from depository institutions, currency and coin, cash items in process of collection and
unposted debits.
(b) Government checks that are drawn on the Treasurer of the United States or any other government agency that are payable immediately upon
presentation and that are in process of collection;
Depository institutions consist of commercial banks in
the United States, credit unions, mutual and stock savings
banks, savings or building and loan associations, cooperative banks, industrial banks that accept deposits, U.S.
branches and agencies of foreign banks, and banking
organizations in foreign countries.
(c) Checks or warrants that are drawn on a foreign
government that are payable immediately upon
presentation and that are in the process of collection; and
Balances due from depository institutions include:
(1) Noninterest-bearing funds on deposit at depository
institutions for which the reporting company has
already received credit; and
(2) Interest-bearing balances due from depository institutions, whether in the form of demand, savings or
time balances, including certificates of deposit, but
excluding certificates of deposits held for trading.
Exclude balances with closed or liquidating banks or
other depository institutions and all loans (report in
item 3 below). Also exclude balances due from subsidiary banks (and their branches) of the reporting bank
holding company (report in item 9 below).
(d) Amounts credited to deposit accounts in connection with automatic payment arrangements where
such credits are made one business day prior to
the payment date to ensure the availability of
funds on the payment date; and
(2) Unposted debits are cash items in the reporting
organization’s possession drawn on itself that are
chargeable, but have not yet been charged to the
general ledger deposit control account at the close of
business on the report date.
Exclude from this item the following:
Cash and due from balances include:
(1) Credit or debit card sales slips in process of collection (report as noncash items in item 7, ‘‘All other
assets’’). However, if the reporting organization has
been notified that they have been given credit, the
amount of such sales slips should be reported in this
item;
(1) Cash items in the process of collection that include
the following:
(2) Cash items not conforming to the definition of in
process of collection, whether or not cleared; and
FR 2314
Balance Sheet
March 2007
BS-1
Balance Sheet
(3) Commodity or bill-of-lading drafts (including arrival
drafts) not yet payable (because the merchandise
against which the draft was drawn has not yet
arrived), whether or not deposit credit has been
given. (If deposit credit has been given, report such
drafts as loans in the appropriate line item; if the
drafts were received on a collection basis, exclude
them entirely until the funds have actually been
collected.)
in the income statement as a part of earnings. Exclude all
trading securities from this item and report trading
securities in Schedule BS, item 4, ‘‘Trading assets.’’
Line Item 2(a)
Held-to-maturity securities.
Report the amortized cost of held-to-maturity securities.
Line Item 2(b)
Available-for-sale securities.
Report the fair value of available-for-sale securities.
Line Item 2
Securities.
Report the amount of U.S. Treasury securities, U.S.
government agency and corporation obligations, securities issued by states and political subdivisions in the U.S.,
and all other debt and equity securities with readily
determinable fair values. Also, include as debt securities
all holdings of commercial paper. Report held-to-maturity
securities in item 2(a) and available-for-sale securities in
item 2(b). Exclude equity securities that do not have
readily determinable fair values and report these equity
securities in item 7, ‘‘All other assets.’’
Financial Accounting Standards Board Statement No. 115,
‘‘Accounting for Certain Investments in Debt and Equity
Securities (FASB 115),’’ requires depository institutions
to divide their securities holdings among three categories: held-to-maturity, available-for-sale, and trading
securities. This accounting standard provides a different
accounting treatment for each category. Under FASB
115, only those debt securities for which an institution
has the positive intent and ability to hold to maturity may
be included in the held-to-maturity account, and the
institution would continue to account for these debt
securities at amortized cost.
Securities in the available-for-sale category under
FASB 115 are those securities for which an institution
does not have the positive intent and ability to hold to
maturity, yet does not intend to trade as part of its trading
account. Report available-for-sale securities at fair value,
and report unrealized holding gains (losses) on these
securities, net of the applicable tax effect, as a separate
component of equity capital in Schedule BS, item 18(d),
‘‘Accumulated other comprehensive income.’’
Trading securities are debt and equity securities that an
institution buys and holds principally for the purpose of
selling in the near term. Report trading securities at fair
value (generally, market value), and report unrealized
changes in value (appreciation and depreciation) directly
BS-2
Line Item 3 Loans and lease financing receivables
(including federal funds sold).
Line Item 3(a)
income.
Loans and leases, net of unearned
Report the aggregate book value of all loans and leases of
the subsidiary, net of unearned income, before the deduction of the ‘‘Allowance for loan and lease losses,’’ (report
in item 3(b)). This item must equal Schedule BS-A, item 6. See Schedule BS-A, ‘‘General Instructions,’’ for further detail.
Line Item 3(b)
losses.
Less: Allowance for loan and lease
Report the allowance for loan and lease losses as determined in accordance with generally accepted accounting
principles (GAAP) for the subsidiary. Exclude any allowance for loan and lease losses on loans and leases with
related institutions.
Line Item 3(c) Loan and lease financing
receivables, net of unearned income and allowance
for loan and lease losses.
Report the amount derived by subtracting item 3(b) from
item 3(a).
Line Item 4
Trading assets.
Subsidiaries that (a) regularly underwrite or deal in
securities, interest rate contracts, foreign exchange rate
contracts, other commodity and equity derivative contract, other financial instruments, and other assets for
resale, (b) acquire or take 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, or (c) acquire or take positions in such items as an accommodation to customers or
for other trading purposes shall report in this item the
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value of such assets or positions on the report date.
Assets and other financial instruments held for trading
shall be valued at fair value.
Assets held in trading accounts include, but are not
limited to:
(1) U.S. Treasury securities;
(2) U.S. government
obligations;
agency
and
corporation
(3) Securities issued by states and political subdivisions in the U.S.;
(7) Automobiles, airplanes, and other vehicles owned by
the subsidiary and used in the conduct of its business;
(8) The amount of capital lease property (with the subsidiary as lessee), premises, furniture, fixtures, and
equipment; and
(9) Stocks and bonds issued by nonmajority-owned corporations whose principal activity is the ownership of
land, buildings, equipment, furniture, or fixtures
occupied or used (or to be occupied or used) by the
subsidiary.
(4) Securities of all foreign governments and official
institutions;
Property formerly but no longer used for subsidiary
activities may be reported in this item as ‘‘Premises and
fixed assets’’ or in item 6, ‘‘Other real estate owned.’’
(5) Equity securities;
Exclude from premises and fixed assets:
(6) Other bonds, notes, and debentures;
(1) Original paintings, antiques, and similar valuable
objects (report in item 7, ‘‘All other assets’’);
(7) Certificates of deposit;
(8) Commercial paper;
(9) Bankers acceptances; and
(10) Revaluation gains from derivative contracts.
Line Item 5 Premises and fixed assets (including
capitalized leases).
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 generally accepted accounting principles
may be used.
Include as premises and fixed assets:
(1) Premises that are actually owned and occupied (or to
be occupied, if under construction) by the subsidiary;
(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 subsidiary;
(6) Furniture, fixtures, and movable equipment of the
subsidiary;
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March 2007
(2) Favorable leasehold rights (report in Schedule BS-M, item 5(e), ‘‘All other identifiable intangible assets’’); and
(3) Loans and advances, whether secured or unsecured,
to individuals, partnerships, and nonmajority-owned
corporations for the purpose of purchasing or holding
land, buildings, or fixtures occupied or used (or to be
occupied or used) by the subsidiary (report in item
3(a) ‘‘Loans and lease financing receivables, net of
unearned income’’).
Line item 6
Other real estate owned.
Report the book value (not to exceed the fair value), less
accumulated depreciation, if any, of all real estate other
than premises actually owned by the subsidiary.
Exclude any property necessary for the conduct of banking business (report in item 5 above, ‘‘Premises and fixed
assets’’). Property formerly but no longer used for subsidiary activities may be reported in this item or in item 5
above.
Include as other real estate owned:
(1) Real estate acquired in any manner for debts previously contracted (including, but not limited to, real
estate acquired through foreclosure and real estate
acquired by deed in lieu of foreclosure), even if the
subsidiary has not yet received title to the property;
BS-3
Balance Sheet
(2) Real estate collateral underlying a loan when the
subsidiary has obtained physical possession of the collateral, regardless of whether formal foreclosure proceedings have been instituted against the borrower;
(3) Foreclosed real estate sold under contract and accounted for under the deposit method of accounting
in accordance with FASB Statement No. 66,
‘‘Accounting for Sales of Real Estate;’’
(4) Any real estate acquired, directly or indirectly, by
the subsidiary and held for development or other
investment purposes;
(5) Real estate acquisition, development, or construction
(ADC) arrangements that are accounted for as investments in real estate in accordance with guidance
prepared by the American Institute of Certified Public Accountants (AICPA) in Notices to Practitioners
issued in November 1983, November 1984, and
February 1986;
(6) Real estate acquired and held for investment by the
subsidiary that has been sold under contract and
accounted for under the deposit method in accordance with FASB Statement No. 66, ‘‘Accounting for
Sales of Real Estate;
the positive fair value of all derivatives held for purposes
other than trading.
Report net deferred tax assets in this item and net
deferred tax liabilities in item 14, ‘‘Other liabilities.’’
Exclude all balances due from related institutions and
investments in all subsidiaries and associated companies.
Report such transactions in item 9.
Line item 8
Claims on nonrelated organizations.
Enter the sum of items 1, 2, and 3(c) through 7.
Line item 9
gross.
Balances due from related institutions,
Report all balances due from the top tier bank holding
company or banking organization, all balances due from
subsidiary banks (or their branches) or subsidiary bank
holding companies of the top tier bank holding company,
and all balances due from other subsidiaries of these
organizations (including subsidiaries of the parent organization and the reporting nonbank subsidiary), on a
gross basis. Include the amount of the subsidiary’s
investment in all (whether consolidated or unconsolidated) subsidiaries and associated companies, less any
dividends paid or declared.
(7) Any other loans secured by real estate and advanced
for real estate acquisition, development, or investment purposes if the reporting subsidiary in substance has virtually the same risks and potential
rewards as an investor in the borrower’s real estate
venture;
Also, a special purpose subsidiary should report the loan
made to the parent bank holding company with the
proceeds from the issuance of trust preferred securities.
Exclude all balances due to related institutions and
include in item 16.
(8) Investments in corporate joint ventures, unincorporated joint ventures, and general or limited partnerships that are primarily engaged in the holding of real
estate for development, resale, or other investment
purposes and over which the subsidiary does not
exercise significant influence; and
Line item 10
(9) Property originally acquired for future expansion but
no longer intended to be used for that purpose.
Report the sum of items 8 and 9.
Liabilities and Equity Capital
Items 11 through 15 exclude balances due to related
institutions. Report balances due to related institutions in
item 16.
Line item 11
Line item 7
All other assets.
Report all other assets held by the respondent subsidiary
that cannot be properly included in any of the preceding
items. Include investments in nonrelated companies,
customers’ liability on acceptances outstanding, goodwill, and intangible assets. Also report income earned but
not collected, prepaid expenses, accounts receivable, and
BS-4
Total assets.
Trading liabilities.
Report the amount of liabilities from the reporting subsidiary’s trading activities. Include liabilities resulting
from the sales of assets that the reporting subsidiary does
not own (short position) and revaluation losses from
‘‘marking to market’’ (or the ‘‘lower of cost or market’’)
of interest rate, foreign exchange rate, and other commodity and equity contracts into which the reporting
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subsidiary has entered for trading, dealer, customer
accommodation, and similar purposes.
the report date until final contractual maturity of a
borrowing without regard to the borrowing’s repayment
schedule, if any.
Line item 12 Other borrowed money with a
remaining maturity of one year or less (including
commercial paper issued and federal funds
purchased).
Borrowings may take the form of:
Report the total amount of money borrowed by the
subsidiary with a remaining maturity of one year or less.
Include outstanding commercial paper issued and federal
funds purchased. For purposes of this item, remaining
maturity is the amount of time remaining from the report
date until final contractual maturity of a borrowing
without regard to the borrowing’s repayment schedule, if
any.
Borrowings may take the form of:
(1) Demand notes issued to the U.S. Treasury;
(2) Promissory notes;
(3) Notes and bills rediscounted (including commodity
drafts rediscounted);
(4) Loans sold under repurchase agreements and sales of
participations in pools of loans that mature in more
than one business day;
(5) Due bills issued representing the subsidiary’s receipt
of payment and similar instruments, whether collateralized or uncollateralized;
(6) Overnight and ‘‘Term federal funds’’ purchased;
(7) Securities sold under agreements to repurchase; and
(1) Promissory notes;
(2) Perpetual debt securities that are unsecured and not
subordinated;
(3) Notes and bills rediscounted (including commodity
drafts rediscounted);
(4) Loans sold under repurchase agreements and sales
of participations in pools of loans that mature in
more than one business day;
(5) Due bills issued representing the subsidiary’s receipt of payment and similar instruments, whether
collateralized or uncollateralized;
(6) ‘‘Term federal funds’’ purchased;
(7) Securities sold under agreements to repurchase;
(8) Notes and debentures issued by the respondent
subsidiary; and
(9) Mortgage indebtedness and obligations under capitalized leases with a remaining maturity of more
than one year; and
(10) Limited-life preferred stock. Limited life preferred
stock is preferred stock that has a stated maturity
date or that can be redeemed at the option of the
holder. It excludes those issues of preferred stock
that automatically convert into perpetual preferred
stock at a stated date.
(8) Mortgage indebtedness and obligations under capitalized leases with a remaining maturity of one year or
less.
Exclude all borrowings with related institutions. Report
such borrowings in item 16.
Exclude all borrowings with related institutions. Report
such borrowings in item 16.
Line Item 14
Line item 13 Other borrowed money with a
remaining maturity of more than one year
(including subordinated debt and limited-life
preferred stock and related surplus).
Report the total amount of all borrowings of the subsidiary with a remaining maturity of more than one year,
including subordinated debt and limited-life preferred
stock including related surplus. For purposes of this item,
remaining maturity is the amount of time remaining from
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March 2007
Other liabilities.
Report the total amount of all other liabilities that cannot
be properly reported in items 11 through 13. Include
liabilities such as deposits held by the subsidiary, liability on acceptances outstanding, expenses accrued
and unpaid, deferred income taxes (if credit balance),
minority interest in the subsidiary, dividends declared but
not yet payable, accounts payable (other than expenses
accrued and unpaid), liability on deferred payment letters
of credit, deferred gains from sale-leaseback transactions,
and unamortized loan fees (other than those that represent an adjustment of the interest yield, if material).
BS-5
Balance Sheet
Also, report all derivatives with negative fair value held
for purposes other than trading in this item. Exclude all
liabilities with related institutions. Report such liabilities
in item 16.
Line Item 15 Liabilities to nonrelated
organizations.
Enter the sum of items 11 through 14.
Line Item 16
gross.
Balances due to related institutions,
Report all balances due to the top tier bank holding
company or banking organization, all balances due to
subsidiary banks (or their branches) or subsidiary bank
holding companies of the top tier bank holding company,
and all balances due to other subsidiaries of these organizations (including subsidiaries of the parent organization), on a gross basis.
Exclude all balances due from related institutions and
include in item 9.
Line Item 17
Total liabilities.
Report the sum of items 15 and 16.
Line Item 18
Equity capital.
Equity capital represents the sum of capital stock, surplus, undivided profits, and various reserve accounts.
Line Item 18(a)
Stock.
Report the amount of perpetual preferred stock issued,
including any amounts received in excess of its par or
stated value, and the aggregate par or stated value of
common stock issued. Also, a special purpose subsidiary
(trust) should report in this item trust preferred securities
such as MIPS and TOPRS.
Line Item 18(b) Surplus (exclude all surplus
related to preferred stock).
Report the net amount formally transferred to the surplus
account, including capital contributions, and any amount
received for common stock in excess of its par or stated
value on or before the report date. Exclude any portion
of the proceeds received from the sale of limited-life
preferred stock in excess of its par or stated value (report
in item 16) or any portion of the proceeds received from
the sale of perpetual preferred stock in excess of its par or
stated value (report in item 18(a)).
BS-6
Line Item 18(c)
Retained earnings.
Report the amount of retained earnings (including capital
reserves) as of the report date. The amount of the retained
earnings should reflect the transfer of net income, declaration of dividends, transfers to surplus, and any other
appropriate entries. Adjustments of accruals and other
accounting estimates made shortly after the report date
that relate to the income and expenses of the year-to-date
period ended as of the report date must be reported in the
appropriate items of the Income Statement for that
year-to-date period.
Capital reserves are segregations of retained earnings
and are not to be reported as liability accounts or as
reductions of asset balances. Capital reserves may be
established for such purposes as follows:
(1) Reserve for undeclared stock dividends, which
includes amounts set aside to provide for stock
dividends (not cash dividends) not yet declared;
(2) Reserve for undeclared cash dividends, which
includes amounts set aside for cash dividends on
common and preferred stock not yet declared (report
cash dividends declared but not yet payable in item
14);
(3) Retirement account (for limited-life preferred stock
or notes and debentures subordinated to deposits),
which includes amounts allocated under the plan for
retirement of limited-life preferred stock or notes and
debentures subordinated to deposits contained in the
subsidiary’s articles of association or in the agreement under which such stock or notes and debentures
were issued; and
(4) Reserve for contingencies, which includes amounts
set aside for possible unforeseen or indeterminate
liabilities not otherwise reflected on the subsidiary’s
books and not covered by insurance.
Exclude from retained earnings:
(1) The amount of the cumulative foreign currency translation adjustment (report in item 18(d));
(2) Any portion of the proceeds received from the sale
of perpetual preferred stock and common stock in
excess of its par or stated value except where required
by state law or regulation (report surplus related to
perpetual preferred stock in item 18(a) and surplus
related to common stock in item 18(b));
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FR 2314
March 2007
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(3) Any portion of the proceeds received from the sale of
limited-life preferred stock in excess of its par or
stated value (report in item 13); and
(4) ‘‘Reserves’’ that reduce the related asset balances
such as valuation allowances (e.g., allowance for
loan and lease losses), reserves for depreciation, and
reserves for bond premiums.
Line Item 18(d)
income.
Accumulated other comprehensive
Report the amount of other comprehensive income in
conformity with the requirements of FASB Statement
No. 130, Reporting Comprehensive Income. Accumulated other comprehensive income includes net unrealized holding gains (losses) on available-for-sale securities, accumulated net gains (losses) on cash flow hedges,
foreign currency translation adjustments, and minimum
pension liability adjustments. Net unrealized holding
gains (losses) on available-for-sale securities is the difference between the amortized cost and fair value of the
subsidiary’s available-for-sale securities, net of tax effects,
as of the report date.
For most subsidiaries, all ‘‘securities,’’ as the term is
defined in FASB Statement No. 115, that are designated
as ‘‘available-for-sale’’ will be reported as ‘‘available-forsale securities’’ in item 2(b), above. However, a subsidiary may have certain assets that fall within the definition
of ‘‘securities’’ in FASB Statement No. 115 (e.g., commercial paper or nonrated industrial development obligations) that the subsidiary has designated as ‘‘availablefor-sale’’ which are reported for purposes of this report in
a balance sheet category other than ‘‘securities’’ (e.g.,
‘‘loans and lease financing receivables’’). These
‘‘available-for-sale’’ assets must be carried on the balance sheet at fair value rather than amortized cost and the
difference between these two amounts, net of tax effects,
must be included in this item.
Also include the unamortized amount of the unrealized
holding gain or loss at the date of transfer of any debt
security transferred into the held-to-maturity category
from the available-for-sale category. When a debt security is transferred from available-for-sale to held-tomaturity, report the unrealized holding gain or loss at
the date of transfer in this equity capital account and
amortize it over the remaining life of the security as an
adjustment of yield in a manner consistent with the
amortization of any premium or discount. Accumulated
FR 2314
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March 2007
net gains (losses) on cash flow hedges is the effective
portion of the accumulated change in fair value (gain or
loss) on derivatives designated and qualifying as cash
flow hedges in accordance with FASB Statement No. 133,
‘‘Accounting for Derivative Instruments and Hedging
Activities.’’
Under Statement No. 133, a subsidiary that elects to
apply hedge accounting must exclude from net income
the effective portion of the change in fair value of a
derivative designated as a cash flow hedge and record it
on the balance sheet in a separate component of equity
capital (referred to as ‘‘accumulated other comprehensive
income’’ in the accounting standard). Report the ineffective portion of the cash flow hedge in earnings. Adjust
the equity capital component (i.e., the accumulated other
comprehensive income) associated with a hedged transaction each reporting period to a balance that reflects the
lesser (in absolute amounts) of:
(1) The cumulative gain or loss on the derivative from
inception of the hedge, less (a) amounts excluded
consistent with the subsidiary’s defined risk management strategy and (b) the derivative’s gains or losses
previously reclassified from accumulated other comprehensive income into earnings to offset the hedged
transaction, or
(2) The portion of the cumulative gain or loss on the
derivative necessary to offset the cumulative change
in expected future cash flows on the hedged transaction from inception of the hedge less the derivative’s
gains or losses previously reclassified from accumulated other comprehensive income into earnings.
Accordingly, the amount reported in this item should
reflect the sum of the adjusted balance (as described
above) of the cumulative gain or loss for each derivative
designated and qualifying as a cash flow hedge. These
amounts will be reclassified into earnings in the same
period or periods during which the hedged transaction
affects earnings (for example, when a hedged variable
rate interest receipt on a loan is accrued or when a
forecasted sale occurs).
Report the sum of the subsidiary’s foreign currency
translation adjustments accumulated in accordance with
FASB Statement No. 52. Report any minimum pension
liability adjustment recognized in accordance with FASB
Statement No. 87, Employers’ Accounting for Pensions.
Under Statement No. 87, an employer must report in a
BS-7
Balance Sheet
separate component of equity capital, net of any applicable tax benefits, the excess of additional pension liability
over unrecognized prior service cost.
Line Item 18(e) General and limited partnership
shares and interests.
Include revolving underwriting facilities (RUFs), note
issuance facilities (NIFs), and other similar arrangements. These are facilities under which a borrower can
issue on a revolving basis short-term paper in its own
name, but for which the underwriting banks have a
legally binding commitment either to purchase any notes
the borrower is unable to sell by the roll-over date or to
advance funds to the borrower.
Report the amount of general or limited partnership
shares or interests issued if the subsidiary is not in
corporate form.
Line Item 21 Unused commitments on loans and
all other unused commitments.
Refer to the FR Y-9C instructions and FASB Statement
No. 130 for additional information on reporting this item.
Line Item 18(f)
Other equity capital components.
Report all other equity capital components including the
total carrying value (at cost) of treasury stock and
unearned Employee Stock Ownership Plan (ESOP) shares
as of the report date. Refer to the FR Y-9C instructions
for additional information on reporting this item.
Line Item 18(g)
Total equity capital.
Report the sum of items 18(a) through 18(f). This item
must equal Schedule IS-A, Changes in Equity Capital,
item 7, ‘‘Total equity capital at end of current period.’’
Line Item 19
Total liabilities and equity capital.
Report the sum of items 17 and 18(g). This item must
equal item 10, ‘‘Total assets.’’
Derivatives and Off-Balance-Sheet Items
Report the following selected commitments, contingencies, and other off-balance-sheet items and derivative
contracts. Include transactions with related organizations. Exclude contingencies arising in connection with
litigation.
Line Item 20 Unused commitments on securities
underwriting.
Report the unsold portion of the subsidiary’s own takedown in securities underwriting transactions. Report the
unused portion of commitments for which the subsidiary
has charged a commitment fee or other consideration, or
otherwise has a legally binding commitment. Report such
commitments regardless of whether they contain ‘‘material adverse change’’ clauses or other provisions that are
intended to relieve the issuer of its funding obligations
under certain conditions and regardless of whether they
are unconditionally cancelable at any time.
BS-8
Report the unused portions of commitments that obligate
the reporting subsidiary to extend credit in the form of
loans or participations in loans, lease financing receivables, or similar transactions. Report the unused portion
of commitments for which the subsidiary has charged a
commitment fee or other consideration, or otherwise has
a legally binding commitment. Report such commitments
regardless of whether they contain ‘‘material adverse
change’’ clauses or other provisions that are intended to
relieve the issuer of its funding obligations under certain
conditions and regardless of whether they are unconditionally cancelable at any time. In the case of commitments for syndicated loans, report only the subsidiary’s
proportional share of the commitments. Report unused
commitments gross, that is, including any commitments
acquired from others and any portions of commitments
conveyed to others.
Include loan proceeds that the subsidiary is obligated to
advance, such as loan draws, construction progress payments, seasonal or living advances to farmers under
prearranged lines of credit, rotating or revolving credit
arrangements, including retail credit card, check credit,and related plans, or similar transactions. Include forward agreements and commitments to issue a commitment at some point in the future.
Report the unused portion of commitments to extend
credit for the following loans:
(1) Revolving, open-end loans secured by 1−4 family
residential properties, e.g., home equity lines;
(2) Commercial real estate, construction, and land development;
(3) Commitments to fund loans secured by real estate;
(4) Commitments to fund loans not secured by real
estate;
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FR 2314
March 2007
Balance Sheet
(5) Credit card lines;
(6) Overdraft facilities;
(7) Commercial lines of credit; and
(8) Retail check credit and related plans.
Line Item 22 Standby letters of credit and foreign
office guarantees.
Report the amount outstanding and unused as of the
report date of all standby letters of credit (and all legally
binding commitments to issue standby letters of credit)
issued by the subsidiary. The originating subsidiary must
report the full outstanding and unused amount of standby
letters of credit in which participations have been conveyed to others where (a) the originating and issuing
subsidiary is obligated to pay the full amount of any draft
drawn under the terms of the standby letter of credit and
(b) the participating companies have an obligation to
partially or wholly reimburse the originating subsidiary,
either directly in cash or through a participation in a loan
to the account party. The originating subsidiary also must
report the amount of standby letters of credit conveyed to
others through participations. The subsidiary participating in such arrangements must report the full amount of
their contingent liabilities to participate in such standby
letters of credit without deducting any amounts that they
may have reparticipated to others. Participating subsidiaries also must report the amount of interest in
transactions that they have reparticipated to others, if any.
Also include those standby letters of credit that are
collateralized by cash on deposit.
Line Item 23
credit.
Commercial and similar letters of
and spot contracts to purchase foreign (non-U.S.) currencies and U.S. dollar exchange that are outstanding as of
the report date. A purchase of U.S. dollar exchange is
equivalent to a sale of foreign currency. Report only one
side of a foreign currency transaction. In those transactions where foreign (non-U.S.) currencies are bought or
sold against U.S. dollars, report only that side of the
transaction that involves the foreign (non-U.S.) currency.
A currency futures contract is a standardized agreement
for delayed delivery of a foreign (non-U.S.) currency in
which the buyer agrees to purchase and the seller agrees
to deliver, at a specified future date, a specified amount at
a specified exchange rate. Future contracts are traded on
organized exchanges that act as the counterparty to each
contract.
A forward foreign exchange contract is an agreement for
delayed delivery of a foreign (non-U.S.) currency in
which the buyer agrees to purchase and the seller agrees
to deliver, at a specified future date, a specified amount at
a specified exchange rate. These contracts are not standardized and are traded in an over-the-counter market. A
spot contract is an agreement for the immediate delivery,
usually within two days, of a foreign currency at the
prevailing spot rate. Contracts are outstanding (i.e., open)
until they have been canceled by acquisition or delivery
of the underlying currencies or, for futures contracts, by
offset. (‘‘Offset’’ is the purchase and sale of an equal
number of contracts on the same underlying currencies
for the same delivery month, executed through the same
clearing member on the same exchange.)
Line Item 25 All other futures and forward
contracts (excluding contracts involving foreign
exchange).
Line Item 24 Commitments to purchase foreign
currencies and U.S. dollar exchange (spot, forward,
and futures).
Report the gross aggregate par value or notional amount
of all other futures and forward contracts not included
in item 24. Include futures and forward interest rate
contracts (e.g., U.S. Treasury securities futures, forward
rate agreements, and forward agreements on U.S. government securities) and futures and forward contracts on
other commodities (e.g., stock index and commodity
contracts). Report the aggregate par value of all futures
and forward contracts that are related to an interestbearing financial instrument or whose cash flows are
determined by referencing interest rates or another interest rate contract.
Report the gross aggregate par value or notional amount
(stated in U.S. dollars) of all futures contracts, forward
Report futures and forward contracts that commit the
subsidiary to purchase or sell agricultural products (e.g.,
Report the amount outstanding and unused as of the
report date of issued or confirmed commercial letters of
credit, travelers’ letters of credit not issued for money or
its equivalent, and all similar letters of credit, but excluding standby letters of credit (which are to be reported in
item 22 above). Report legally binding commitments to
issue commercial letters of credit.
FR 2314
Balance Sheet
March 2007
BS-9
Balance Sheet
wheat or coffee), precious metals (e.g., gold or platinum),
non-ferrous metals (e.g., copper or zinc) or any other
commodity.
Futures and forward contracts are agreements for delayed
delivery of financial instruments or other commodities in
which the buyer agrees to purchase and the seller agrees
to deliver, at a specified future date, a specified instrument or commodity at a specified price. Futures contracts
are standardized, transferable agreements traded on organized exchanges that act as the counterparty to each
contract. Forward contracts are not standardized and are
not traded on organized exchanges. The contract amount
to be reported for futures and forward contracts on
commodities is the quantity, (i.e., number of units) of the
commodity or product contracted for purchase or sale
multiplied by the contract price of a unit.
Line Item 26
Option contracts.
Report the amount of written option contracts in
item 26(a), and the amount of purchased option contracts
in item 26(b). In reporting items 26(a) and 26(b), do not
net the following:
(1) Obligations of the subsidiary to buy against the
subsidiary’s obligations to sell, or
Line Item 26(b)
Purchased option contracts.
Report the amount of all financial instruments (aggregate
par value), foreign currencies, and other commodities
that the reporting subsidiary has purchased, for compensation (such as a fee or premium), the right to either
purchase or sell under option contracts that are outstanding as of the report date. In the case of option contracts
giving the reporting subsidiary the right to either purchase or sell a futures contract, report the amount of the
financial instrument, foreign currency, or other commodity underlying the futures contract.
Line Item 27
Notional value of interest rate swaps.
Report the notional value of all outstanding interest rate
and basis swaps. In those cases where the subsidiary
is acting as an intermediary, report both sides of the
transaction. Include cross-currency interest rate swaps
that do not involve the exchange of principal amounts
between the counterparties. An interest rate swap is a
transaction in which two parties agree to exchange the
interest payment streams on a specified principal amount
of assets or liabilities for a certain number of years. The
notional value of an interest rate swap is the underlying
principal amount upon which the exchange of interest
income or expense is based.
(2) Written options against purchased options.
An option contract conveys either the right or the obligation, depending upon whether the reporting subsidiary is
the purchaser or the writer, respectively, to (1) buy or sell
a financial instrument or an interest rate futures contract
on a financial instrument at a specified price by a
specified future date, (2) exchange two different currencies at a specified exchange rate, or (3) buy or sell stock
options, stock index options, or other commodities.
Options can be traded on organized exchanges. In addition, options can be written to meet the specialized needs
of the counterparties to the transaction. These customized
option contracts are known as over the counter (OTC)
options and are not generally traded.
Line Item 26(a)
Written option contracts.
Report the amount of all financial instruments (aggregate
par value), foreign currencies, and other commodities
that the reporting subsidiary has obligated itself, for
compensation (such as a fee or premium), to either
purchase or sell under option contracts that are outstanding as of the report date.
BS-10
Line Item 28
Notional value of exchange swaps.
Report the notional principal value (stated in U.S. dollars)
of all outstanding cross-currency interest rate swaps. In
those cases where the subsidiary is acting as an intermediary, report both sides of the transaction. A crosscurrency interest rate swap is a transaction in which two
parties agree to exchange principal amounts of different
currencies, usually at the prevailing spot rate, at the
inception of the agreement, which lasts for a certain
number of years. Over the life of the swap, the counterparties exchange payments in the different currencies
based on fixed rates of interest. When the agreement
matures, the principal amounts will be re-exchanged at
the same spot rate. The notional value of a cross-currency
interest rate swap is the underlying principal amount
upon which the exchange is based.
Line Item 29
Notional value of other swaps.
Report the notional principal value of all other swap
agreements that are not reportable as either interest or
foreign exchange rate contracts in items 27 or 28.
Balance Sheet
FR 2314
March 2007
Balance Sheet
Line Item 30
All other off-balance-sheet liabilities.
With the exceptions listed below, report all types of
off-balance-sheet items not covered in other items of this
schedule. Other off-balance-sheet liabilities include, but
are not limited to:
(1) Securities borrowed against collateral (other than
cash) or on an uncollateralized basis;
(2) Securities lent against collateral or on an uncollateralized basis (other than cash);
(3) Commitments to purchase and to sell securities that
have not been issued (when-issued securities) and are
excluded from the requirements of FASB Statement
No. 133 and are not reported in item 25;
(4) Credit derivatives;
(5) Participations in acceptances conveyed to others
by the reporting subsidiary or acquired by the
subsidiary;
(6) Financial guarantee insurance that insures the timely
payment of principal and interest on bond issues;
FR 2314
Balance Sheet
March 2007
(7) Letters of indemnity other than those issued in
connection with the replacement of lost or stolen
official checks; and
(8) Shipside or dockside guarantees or similar guarantees relating to missing bills of lading or title documents and other document guarantees that facilitate
the replacement of lost or destroyed documents and
negotiable instruments.
Exclude from other off-balance-sheet items:
(1) All items that are required to be reported on the
balance sheet, such as repurchase and resale
agreements;
(2) Commitments to purchase property being acquired
for lease to others (reported in item 23);
(3) Contingent liabilities arising in connection with litigation in which the subsidiary is involved; and
(4) Signature or endorsement guarantees of the type
associated with the regular clearing of negotiable
instruments or securities in the normal course of
business.
BS-11
LINE ITEM INSTRUCTIONS FOR
Loans and Lease
Financing Receivables
Schedule BS-A
General Instructions
Loans and lease financing receivables are extensions of
credit resulting from either direct negotiation between the
subsidiary and their customers or the purchase of such
assets from others. Loans may take the form of promissory notes, acknowledgments of advance, due bills,
invoices, overdrafts, acceptances held, factoring account
receivables, and similar written or oral obligations.
Include the dollar amount outstanding of all federal funds
sold (including ‘‘term federal funds’’) and securities
purchased under agreement to resell. Also include resale
agreements involving assets other than securities.
Exclude:
(1) All loans and leases with related institutions (including federal funds sold and securities purchased under
agreements to resell), which are to be reported in
Schedule BS, item 9;
(2) Any loans or leases that the subsidiaries have sold or
charged off;
(3) The fair value of any assets received in full or partial
satisfaction of a loan or lease (unless the asset
received is itself reportable as a loan or lease) and
any loans for which the subsidiary has obtained
physical possession of the underlying collateral regardless of whether formal foreclosure or repossession proceedings have been instituted against the
borrower;
(4) Holdings of commercial paper (report in Schedule
BS, item 2, ‘‘Securities’’);
(5) Contracts of sale or other loans indirectly representing other real estate (report in Schedule BS, item 6,
‘‘Other real estate owned’’); and
(6) Loans and leases held for trading purposes (report in
Schedule BS, item 4, ‘‘Trading assets’’).
FR 2314
Loans and Lease Financing Receivables
March 2007
Exclude all transactions with related institutions. Include
in items 1 through 7 all loans and leases on the books of
the subsidiary even if on the report date they are past due
and collection is doubtful. Also report all loans and leases
held for sale as part of the subsidiary’s mortgage banking
activities or activities of a similar nature involving other
types of loans. Loans held for sale shall be reported at the
lower of cost or market value. Exclude any loans or
leases the subsidiary has charged off (report in Schedule
IS-B, item 3, ‘‘less: charge-offs.’’ Report the aggregate
book value of all loans and leases before deduction of the
allowance for loan and lease losses. Report each item in
this schedule net of (1) unearned income (to the extent
possible), (2) any applicable allocated transfer risk
reserve, and (3) deposits accumulated for the payment of
personal loans (hypothecated deposits).
Line Item 1
Loans secured by real estate.
Report all loans (other than those to states and political
subdivisions in the U.S.), regardless of purpose and
regardless of whether originated by the subsidiary or
purchased from others, that are secured by real estate as
evidenced by mortgages, deeds of trust, land contracts, or
other instruments, whether first or junior liens (e.g.,
equity loans or second mortgages) on real estate.
Line Item 2
Loans to depository institutions.
Report all loans (other than those secured by real estate),
including overdrafts, to banks, other depository institutions, and other associations, companies, and financial
intermediaries whose primary business is to accept
deposits and to extend credit for business or for personal
expenditure purposes. This includes commercial banks
in the U.S., foreign branches of U.S. banks and banks in
foreign countries. Report the subsidiary’s holdings of
all bankers acceptances accepted by unrelated banks
(i.e., banks that are not direct or indirect subsidiaries of
BS-A-1
Schedule BS-A
the subsidiary’s bank holding company or parent
organization).
Line Item 5
receivables.
Exclude acceptances accepted by related banks (i.e.,
banks that are direct or indirect subsidiaries of the
subsidiary’s bank holding company or parent organization). Also exclude loans to foreign governments and
foreign official institutions.
Report all other loans held by the subsidiary that are not
properly included in items 1 through 4 above and all
lease financing receivables. Report all outstanding receivable balances relating to direct financing and leveraged
leases on property acquired by the subsidiary for leasing
purposes. These balances should include the estimated
residual value of leased property and must be net of
unearned income. Include all lease financing receivables
of states and political subdivisions in the U.S. Also
include all loans to foreign governments and official
institutions.
Line Item 3
Commercial and industrial loans.
Report all loans (regardless of domicile) for commercial
and industrial purposes to sole proprietorships, partnerships, corporations, and other business enterprises,
whether secured (other than by real estate) or unsecured,
single-payment or installment. These loans may take the
form of direct or purchased loans. Include commercial
and industrial loans guaranteed by foreign governmental
institutions.
Line Item 6
receivables.
All other loans and lease financing
Total loans and lease financing
Report the sum of items 1 through 5.
Exclude:
(1) Loans secured by real estate (report in item 1);
(2) Loans for the purpose of financing agricultural production, whether made to farmers or to nonagricultural businesses (report in item 5);
(3) Loans to finance companies and insurance companies
(report in item 5);
(4) Loans to broker and dealers in securities, investment
companies, and mutual funds (report in item 5);
Line Item 7
leases.
Past due and nonaccrual loans and
Report the subsidiary loans and lease financing receivables that are past due 30 through 89 days and still
accruing in item 7(a), past due 90 days or more and still
accruing in item 7(b), in nonaccrual status in item 7(c),
and restructured loans and leases included in past due and
nonaccrual loans in item 7(d). Report the full outstanding
balances of the past due loans and lease financing
receivables, not simply the delinquent payments.
(5) Loans to depository institutions (report in item 2);
(6) Loans to nonprofit organizations (report in item 5);
and
Line Item 7(a) Loans and leases past due 30
through 89 days.
(7) Loans to nondepository financial institutions (report
in item 5).
Report loans and lease financing receivables that are
contractually past due 30 through 89 days as to principal
or interest payments, and still accruing. Include restructured loans and leases past due 30 through 89 days and
still accruing.
Line Item 4 Loans to individuals for personal,
household, and other personal expenditures.
Report credit card and related plans and other loans to
individuals for household, family, and other personal
expenditures. Include all loans to individuals for household, family, and other personal expenditures that are not
secured by real estate, whether direct loans or purchased
paper. Exclude loans secured by real estate (report in item
1) and loans to individuals for the purpose of purchasing
or carrying securities (report in item 5).
BS-A-2
Line Item 7(b)
or more.
Loans and leases past due 90 days
Report loans and lease financing receivables that are
contractually past due 90 days or more as to principal or
interest payments, and still accruing. Include restructured
loans and leases past due 90 days or more and still
accruing.
Loans and Lease Financing Receivables
FR 2314
March 2007
Schedule BS-A
Line Item 7(c)
Nonaccrual loans and leases.
Report loans and lease financing receivables accounted
for on a nonaccrual status. Include restructured loans and
leases that are in nonaccrual status. For purposes of this
report, report loans and leases as being in nonaccrual
status if: (a) they are maintained on a cash basis because
of deterioration in the financial position of the borrower,
(b) payment in full of interest or principal is not expected,
or (c) principal or interest has been in default for a period
of 90 days or more unless the obligation is both wellsecured and in the process of collection.
NOTE: Loans to individuals for household, family, and
other personal expenditures and loans secured by 1–4
family residential properties on which principal or interest is due and unpaid for 90 days or more are not required
to be reported as nonaccrual loans. Nevertheless, such
loans should be subject to other alternative methods of
evaluation to assure that the subsidiary’s net income is
not materially overstated. To the extent that the subsidiary has elected to carry any loans in nonaccrual status on
its books, such loans must be reported as nonaccrual in
this item.
Line Item 7(d) Restructured loans and leases
included in items 7(a) through 7(c) above.
Report loans and leases that, under their modified terms,
are past due 30 days or more and still accruing or are in
nonaccrual status as of the report date. Report such loans
and leases in items 7(a), 7(b), or 7(c), (and exclude from
item 6). Restructured debt includes those loans and lease
financing receivables that have been restructured or
renegotiated to provide a reduction of either interest or
principal because of a deterioration in the financial
position of the borrower. A loan extended or renewed at a
stated interest rate equal to the current interest rate for
new debt with similar risk is not considered restructured
debt.
Exclude all loans to individuals for household, family,
and other personal expenditures, and all loans secured by
1−4 family residential properties. (However, restructured
loans of these two types that subsequently become past
due 90 days or more or are placed in nonaccrual status
should be reported accordingly.)
FR 2314
Loans and Lease Financing Receivables
March 2007
Memoranda
Line Item 1. Closed-end loans with negative
amortization features secured by 1–4 family
residential properties.
Report in the appropriate subitem the carrying 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 carrying 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).
Line Item 1(a) Total carrying amount of
closed-end loans with negative amortization features
secured by 1–4 family residential properties
(included in Schedule BS-A, item 1).
This item is to be completed by all nonbank subsidiaries.
Report the total carrying amount (before any loan loss
allowances) of, i.e., the recorded investment in, closedend loans secured by 1–4 family residential properties
whose terms allow for negative amortization. The carrying amounts included in this item will also have been
reported in Schedule BS-A, item 1.
Memoranda items 1(b) and 1(c) are to be completed by
nonbank subsidiaries that had closed-end loans with
negative amortization features secured by 1–4 family
residential properties (included in Schedule BS-A, item
1) as of the previous December 31 report date, with a
carrying amount (before any loan loss allowances) that
exceeds 5 percent of total loans and leases, net of
unearned income (as reported in Schedule BS-A, item 6)
as of the previous December 31 report date.
BS-A-3
Schedule BS-A
Line Item 1(b) 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 BS-A, item 1), 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).
BS-A-4
Line Item 1(c) Total amount of negative
amortization on closed-end loans secured by 1–4
family residential properties included in the
carrying amount reported in Memorandum item
1(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 carrying amount (i.e., the total amount of interest
added to the original loan principal balance that has not
yet been repaid) reported in Schedule BS-A, Memorandum item 1(a) above. Once a loan reaches its maximum
principal balance, the amount of negative amortization
included in the carrying 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.
Loans and Lease Financing Receivables
FR 2314
March 2007
LINE ITEM INSTRUCTIONS FOR
Memoranda
Schedule BS-M
Exclude all balances with related institutions from
this schedule.
Line Item 1 Balances due from depository
institutions, gross.
Line Item 1(a) Balances due from depository
institutions in the U.S. (including their IBFs).
Report demand, savings, and time balances on deposit
with offices of commercial banks, industrial banks, stock
savings banks, private banks, Edge and agreement corporations, mutual savings banks, savings and loan associations, and any other depository institutions domiciled in
the fifty states of the United States, the District of
Columbia, Puerto Rico, and U.S. territories and possessions. Include deposits with U.S.-chartered bank subsidiaries and U.S. branches and agencies of foreign banks
and foreign official banking institutions in the United
States. Report all such balances gross of any reciprocal
balances.
Line Item 1(b)
countries.
Balances due from banks in foreign
Line Item 1(b)(1)
Foreign branches of U.S. banks.
Report all balances on deposit with non-U.S. branches of
U.S. banks; exclude balances with non-U.S. subsidiaries
of U.S. banks and report in Item 1(b)(2). Also exclude
balances with branches of non-U.S. banks that are domiciled in the United States and report in Item 1(a). Report
all such balances gross of any reciprocal balances.
Line Item 1(b)(2)
countries.
Other banks in foreign
Report all balances on deposit with non-U.S. commercial
banks, savings banks, discount houses, and similar nonU.S. domiciled institutions that accept deposits. Include
balances with non-U.S. subsidiaries of U.S. banks. Report
balances with non-U.S. branches of U.S. banks in item
FR 2314
Memoranda
March 2007
1(b)(1). Report all such balances gross of any reciprocal
balances.
Line Item 2
banks.
Balances due from foreign central
Report all balances with foreign central banks. Refer to
the FR Y-9C glossary for the definition of ‘‘foreign
central bank.’’
Line Item 3 Equity interest in nonrelated
organizations.
Include the total value of all equity investments other
than those in related organizations.
Report equity investments that represent 20 percent to
50 percent of the voting shares of an organization using
the equity method of accounting.
Line Item 4 Assets held in trading accounts
(excluding trading account balances with related
organizations).
Organizations that regularly underwrite or deal in securities and other assets for resale or that acquire securities
and other assets with the intent to resell in order to profit
from short-term price movements shall report in items
4(a) through 4(f) the value of such assets. Consistently
value assets held in trading accounts at fair value (or, if
appropriate, the lower of cost or fair value). Exclude the
carrying value of any available-for-sale securities or of
any loans or leases that are held for sale. Exclude all
trading account balances with related organizations, and
report in Schedule BS, Item 9, ‘‘Balances due from
related organizations, gross’’ or Schedule BS, Item 16,
‘‘Balances due to related organizations, gross.’’ Refer to
the FR Y-9C instructions and glossary for further information.
BS-M-1
Memoranda
Line Item 4(a)
its agencies.
Securities of U.S. government and
Line Item 4(f)
paper).
Other (including commercial
Report the fair value of securities issued by the U.S.
government and all other U.S. government agencies and
official institutions thereof.
Report the total value of all assets held in trading
accounts that cannot be properly reported in items 4(a)
through 4(e). Include certificates of deposit, bankers
acceptances, and commercial paper.
Line Item 4(b) Securities of all foreign
governments and official institutions.
Line Item 5
Report the fair value of all debt securities issued by
foreign governments (central, state, provincial and local),
including their ministries, departments and agencies.
Refer to the FR Y-9C glossary for the definition of
‘‘foreign government.’’ Exclude bankers’ acceptances
accepted by the reporting organization and held in its
trading account when the account party is a foreign
government or official institution. Also exclude securities
issued by nonbank corporations and enterprises which
are foreign-government-owned.
Other assets.
Line Item 5(a)
Report the amount of interest, commissions, and other
income earned or accrued on loans, securities, and other
earning assets and applicable to current or prior periods
that has not yet been collected.
Line Item 5(b)
Equity securities.
Report the fair value of all equity securities held in the
organization’s trading account. Exclude:
(1) Equity securities that have been purchased for investment or acquired for debts previously contracted.
(2) Equity securities that do not have readily determinable fair values (report such securities at historical
cost in Schedule BS, item 7, ‘‘All other assets’’).
Corporate bonds, notes, and
Report the total value of debt securities issued by corporations.
Line Item 4(e) Revaluation gains on interest rate,
foreign exchange rate, and other commodity and
equity contracts.
Report the amount of revaluation gains (that is, assets)
from the ‘‘marking to market’’ of interest rate, foreign
exchange rate, and other off-balance-sheet commodity
and equity contracts held for trading purposes (in compliance with Financial Accounting Standards Board Interpretation No. 39). Refer to the FR Y-9C instructions for
further information.
BS-M-2
Net deferred tax assets.
Report the cumulative tax effect of all deductible temporary differences, operating loss carryforwards, and tax
credit carryforwards in accordance with GAAP. Report
the net amount after offsetting deferred tax assets (net of
valuation allowance) and net deferred tax liabilities measured at the report date for a particular tax jurisdiction if
the net result is a debit balance. If the result for a
particular tax jurisdiction is a net credit balance, report
the amount in item 8(b), ‘‘Net deferred tax liabilities.’’
Line Item 5(d)
Line Item 4(d)
debentures.
Prepaid expenses.
Report the amount of all expenses prepaid and applicable
as a charge against operations in future periods.
Line Item 5(c)
Line Item 4(c)
Accrued interest receivable.
Accounts receivable.
Report the amount owed to the subsidiary in the form of
regular accounts or written promissory notes to be collected in the future arising from the sale of goods and
services. Exclude notes with a maturity of more than one
year.
Line Item 5(e)
Intangible Assets.
Report the cost of intangible assets. Such intangibles may
arise from the following:
(1) Business combinations accounted for under the purchase method in accordance with FASB Statement
No. 141, and
(2) Acquisitions of portions or segments of another
institution’s business, such as branch offices, mortgage servicing portfolios, and credit card portfolios
Memoranda
FR 2314
March 2007
Memoranda
Report the carrying value of mortgage servicing assets,
i.e., the unamortized cost of acquiring contracts to service loans secured by real estate that have been securitized or are owned by another party, net of any related
valuation allowances. Also report in this item the unamortized amount of other specifically identifiable intangible assets such as purchased credit card relationships
(PCCRs), core deposit intangibles, favorable leasehold
rights, and goodwill. Goodwill represents the excess of
the cost of a company over the sum of the fair values of
the tangible assets and identifiable intangible assets
acquired less the fair value of liabilities assumed in a
business combination accounted for as a purchase. Also,
include servicing assets other than mortgage servicing
assets.
Line Item 7 Balances due to U.S. and foreign
banks.
Report all deposit balances of all banks headquartered
and chartered in the United States and foreign countries.
Include both U.S. and non-U.S. branches of U.S. commercial banks (including IBFs established by U.S. commercial banks). Also include both U.S. and non-U.S. branches
of foreign banks.
Line Item 6
Line Item 8(b)
Deposits.
Report the total amount of deposits held by the subsidiary. Include both noninterest-bearing and interest-bearing
deposits. Such deposits may take the form of passbook
accounts, certificates of deposit, NOW accounts, money
market deposit accounts, time deposits, open accounts, or
similar deposits. Include all deposits regardless of customer or form.
Exclude all deposits due to related institutions. Report
such deposits in Schedule BS, item 16.
FR 2314
Memoranda
March 2007
Line Item 8
Other liabilities.
Line Item 8(a) Expenses accrued and unpaid.
Report the amount of interest on deposits, interest on
nondeposit liabilities, income taxes, and other expenses
accrued through charges to expense during the current or
prior periods, but not yet paid or credited to a deposit
account.
Net deferred tax liabilities.
Report the cumulative tax effect of all taxable temporary
differences, in accordance with GAAP. Report the net
amount after offsetting deferred tax assets and net
deferred tax liabilities measured at the report date for a
particular tax jurisdiction if the net result is a credit
balance. If the result for a particular tax jurisdiction is a
net debit balance, report the amount in item 5(c).
Line Item 8(c) Accounts payable.
Report the amount due from the reporting subsidiary for
the purchase of goods and services.
BS-M-3
Notes to the
Financial Statements
This section has been provided to allow banking organizations the opportunity
to provide additional explanations of the content of specific items in the
subsidiary’s financial statements. The reporting banking organization should
include any transactions reported on the subsidiary’s financial statements that it
wishes to explain that are material in amount and cannot be disclosed
separately in the existing line items.
Report in the space provided the financial statement and line item for which the
banking organization is specifying additional information, a description of the
transaction and, in the column provided, the dollar amount associated with the
transaction being disclosed.
FR 2314
Notes to the Financial Statements
March 2007
BS Notes-1
Validity (V) Edits for the FR 2314
(Effective March 31, 2007)
Edit Edit Type
Check
Target Item
Each edit in the checklist must balance, rounding errors are not allowed
Sub MDRM Schedule
Edit Test
Series
Alg Edit Test
150
160
170
175
180
Validity
Validity
Validity
Validity
Validity
IS-1c
IS-2c
IS-3
IS-4
IS-5c
SUBS
SUBS
SUBS
SUBS
SUBS
4107
4073
4074
4230
4079
IS
IS
IS
IS
IS
Sum of IS-1a and IS-1b must equal IS-1c.
Sum of IS-2a and IS-2b must equal IS-2c.
IS-1c minus IS-2c must equal IS-3.
IS-B4 must equal IS-4
Sum of IS-5a1 through IS-5b must equal IS-5c.
(subia028 + subia029) eq subi4107
(subia030 + subia031) eq subi4073
(subi4107 - subi4073) eq subi4074
subt4230 eq subi4230
(subi4070 + subi4080 + subia220 + subib490 + subib491 +
subib492 + subib493 + subib494 + subib497 + subi4619) eq
subi4079
190
200
Validity
Validity
IS-7c
IS-8
SUBS
SUBS
4093
3631
IS
IS
210
Validity
IS-12
SUBS
4340
IS
Sum of IS-7a and IS-7b must equal IS-7c.
Sum of IS-3, IS-5c, and IS-6 minus IS-4 and IS-7c must
equal IS-8.
Sum of IS-8, IS-10, and IS-11 minus IS-9 must equal IS-12.
(subia034 + subic376) eq subi4093
(subi4074 + subi4079 + subi4280 - subi4230 - subi4093) eq
subi3631
(subi3631 + subi4320 + subi3147 - subi4302) eq subi4340
230
240
Validity
Validity
IS-12
IS-A6
SUBS
SUBS
4340
3581
IS
IS-A
260
Validity
IS-B5
SUBS
4815
IS-B
270
280
290
300
Validity
Validity
Validity
Validity
BS-3a
BS-3b
BS-3c
BS-8
SUBS
SUBS
SUBS
SUBS
2122
3123
2125
C377
BS
BS
BS
BS
IS-A2 must equal IS-12.
Sum of IS-A1, IS-A2, IS-A3, IS-A5 and IS-A6 minus IS-A4
must equal IS-A7.
Sum of IS-B1, IS-B2, IS-B4 and IS-B5 minus IS-B3 must
equal IS-B6.
BS-A6 must equal BS-3a.
IS-B6 must equal BS-3b.
Sum of BS-3a minus BS-3b must equal BS-3c.
Sum of BS-1 through BS-2b and BS-3c through BS-7 must
equal BS-8.
subt4340 eq subi4340
(subi3217 + subt4340 + subia035 + subib511 + subi3581 subi4598) eq subt3210
(subi3124 + subi4605 + subt4230 + subi4815 - subic079) eq
subt3123
subt2122 eq subc2122
subt3123 eq subc3123
(subc2122 - subc3123) eq subc2125
(subc0010 + subc1754 + subc1773 + subc2125 + subc3545
+ subc2145 + subc2150 + subc1724) eq subcc377
310
320
Validity
Validity
BS-10
BS-15
SUBS
SUBS
2170
A012
BS
BS
Sum of BS-8 and BS-9 must equal BS-10.
Sum of BS-11 through BS-14 must equal BS-15.
330
340
Validity
Validity
BS-17
BS-18g
SUBS
SUBS
2948
3210
BS
BS
Sum of BS-15 and BS-16 must equal BS-17.
Sum of BS-18a through BS -18f should equal BS-18g
350
360
370
390
Validity
Validity
Validity
Validity
BS-18g
BS-19
BS-19
BS-A5
SUBS
SUBS
SUBS
SUBS
3210
3300
3300
A017
BS
BS
BS
IS-A
IS-A7 must equal BS-18g
Sum BS-17 and BS-18g must equal BS-19.
BS-19 must equal BS-10.
Sum of BS-A1 through BS-A5 must equal BS-A6.
(subcc377 + subcc378) eq subc2170
(subc3548 + subcc379 + subc1729 + subc2750) eq
subca012
(subca012 + subcc380) eq subc2948
(subc3230 + subc3240 +subc3247 + subcb530 + subcf033
+ subca130) eq subc3210
subt3210 eq subc3210
(subc2948 + subc3210) eq subc3300
subc3300 eq subc2170
(subc1410 + subc3622 + subc3623 + subc1975 +
subca017) eq subt2122
MARCH 2007
FR 2314: CHK-1
| File Type | application/pdf |
| File Modified | 2007-03-21 |
| File Created | 2007-03-20 |