Form FR 2886b FR 2886b Consolidated Report of Condition and Income for Edge Agr

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10/19/2010

FR 2886b
Page 1

Name of Reporting Organization

All Report of Income schedules are to be reported on a calendar year-to-date basis in thousands of dollars.

Schedule RI—Income Statement
This schedule must be completed by all Edge corporations and all agreement corporations.
Dollar Amount in Thousands

1. Interest income:
a. Interest and fee income from nonrelated organizations:
(1) Interest and fees on loans and lease financing receivables.................................................
(2) Interest on balances due from depository institutions ..........................................................
(3) Interest income from federal funds sold and securities purchased under
agreements to resell.............................................................................................................
(4) Interest on bonds, notes, and debentures, and dividends on stock .....................................
(5) Interest income and dividends from assets held in trading accounts ..................................
b. Interest income from claims on related organizations ................................................................
c. Total interest income (sum of items 1.a.(1) through 1.b) ............................................................
2. Interest expense:
a. Interest expense pertaining to nonrelated organizations ............................................................
b. Interest expense pertaining to related organizations .................................................................
c. Total interest expense (sum of items 2.a and 2.b) ......................................................................
3. Net interest income (item 1.c less item 2.c) ....................................................................................
4. Provisions:
a. Provision for loan and lease losses (must equal Schedule RI-B, item 3, column A) ..................
b. Provision for allocated transfer risk (must equal Schedule RI-B, item 3, column B) ..................
5. Noninterest income:
a. From nonrelated organizations:
(1) Equity in undistributed earnings of nonrelated organizations...............................................
(2) Net gain (loss) on foreign exchange transactions ................................................................
(3) Income from fiduciary activities ............................................................................................
(4) Gains (losses) and fees from trading assets and liabilities .................................................
(5) Other commissions, fees, etc. .............................................................................................
(6) Other ...................................................................................................................................
b. From related organizations .........................................................................................................
c. Total noninterest income (sum of items 5.a.(1) through 5.b) ......................................................
6. Realized gains (losses) on securities not held in trading accounts .................................................
7. Noninterest expense:
a. Pertaining to nonrelated organizations:
(1) Salaries and employee benefits ...........................................................................................
(2) Expenses of premises and fixed assets (net of rental income) ...........................................
(3) Other noninterest expense ...................................................................................................
b. Pertaining to related organizations .............................................................................................
c. Total noninterest expense (sum of items 7.a.(1) through 7.b) ....................................................
8. Income (loss) before income taxes and extraordinary items (item 3 plus or minus
items 4.a and 4.b, 5.c, 6, and 7.c) ...................................................................................................
9. Applicable income taxes (on item 8) ...............................................................................................
10. Income (loss) before extraordinary items .......................................................................................
11. Extraordinary items, net of tax effect ...............................................................................................
12. Net income (loss) (item 10 plus 11) (must equal Schedule RI-A, item 2) ........................................

RIAD

Bil

Mil

Thou

4094
4115

1.a.(1)
1.a.(2)

4020
A315
8622
4028
4107

1.a.(3)
1.a.(4)
1.a.(5)
1.b.
1.c.

5466
4126
4073
4074

2.a.
2.b.
2.c.
3.

4230
4243

4.a.
4.b.

4199
4075
4070
4077
4090
4101
4619
4079
4091

5.a.(1)
5.a.(2)
5.a.(3)
5.a.(4)
5.a.(5)
5.a.(6)
5.b.
5.c.
6.

4135
4217
4092
4127
4093

7.a.(1)
7.a.(2)
7.a.(3)
7.b.
7.c.

4301
4302
4300
4320
4340

8.
9.
10.
11.
12.

MEMORANDUM
Memorandum item 1 is to be completed by corporations that have elected to account for
financial instruments or servicing assets and liabilities at fair value under a fair value option.
1. Net change in fair values of financial instruments accounted for under a fair value option
(included in item 5.a.(6) above) ....................................................................................................... F229

items

M.1.

and 5.b.
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FR 2886b
Page 9

Name of Reporting Organization

Schedule RC-M—Claims on and Liabilities to Related Organizations
This schedule must be completed by all Edge corporations and all agreement corporations.
Dollar Amount in Thousands
A. Gross due from
B. Gross due to
Dollar Amount in Thousands RCFD

1. Related organizations domiciled in the United States (including related
IBFs):
a. U.S. offices of parent bank and other related U.S. banks ...................
b. U.S. offices of other related organizations...........................................
2. Related organizations domiciled outside the United States:
a. Non-U.S. offices of parent bank and other related U.S. banks............
b. Non-U.S. offices of other related organizations ...................................
3. TOTAL (sum of items 1.a through 2.b) .....................................................
4. Total loans participated to related organizations (and not included
in item 3 above) ........................................................................................

Bil

Mil

Thou RCFD

Bil

Mil

Thou

A563
3042

A583
3041

1.a.
1.b.

A576
3048
3002

A588
3047
3001

2.a.
2.b.
3.

3050

4.

MEMORANDUM
1. Amount of equity investments in related organizations (included in item 3,
column A above) ......................................................................................... 3052

M.1.

Schedule RC-N—Past Due and Nonaccrual Loans, Leases, and Other Assets
This schedule must be completed by all Edge corporations and all agreement corporations.
Dollar Amount in Thousands RCFD

1.
2.
3.
4.

Past due 30–89 days and still accruing ...........................................................................................
Past due 90 days or more and still accruing ...................................................................................
Nonaccrual ......................................................................................................................................
Total (sum of items 1 through 3) ......................................................................................................

Bil

Mil

Thou

1406
1407
1403
1477

1.
2.
3.
4.

MEMORANDUM
1. Restructured loans and leases included in item 4 above ................................................................ 6916

Schedule RC-R—Regulatory Capital

M.1.

Loans restructured in troubled
debt restructurings

This schedule must be completed only by banking Edge corporations and banking agreement corporations.
Dollar Amount in Thousands RCFD

1. Tier 1 capital allowable under the risk-based capital guidelines .....................................................
2. Tier 2 capital allowable under the risk-based capital guidelines .....................................................
3. Subordinated debt allowable as Tier 2 (i.e., weighted average maturity of at least 5 years
included in item 2 above) ................................................................................................................
4. Total qualifying capital (i.e., Tier 1 and Tier 2 capital) allowable under the risk-based capital
guidelines (sum of 1. and 2. above) ................................................................................................
5. Total risk-weighted assets and credit equivalent amounts of off-balance sheet items ....................
6. Credit equivalent amounts of off-balance sheet items included in item 5 above.............................

Bil

Mil

Thou

8274
8275

1.
2.

3785

3.

3792
8276
8277

4.
5.
6.

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Income Statement

If the Edge or agreement corporation has elected to
apply the fair value option to interest-bearing financial
assets and liabilities, it should report the interest income
on these financial assets (except any that are in nonaccrual status) and the interest expense on these financial
liabilities for the year-to-date in the appropriate interest
income and interest expense items on Schedule RI, not as
part of the reported change in fair value of these assets
and liabilities for the year-to-date. The Edge or agreement corporation should measure the interest income or
interest expense on a financial asset or liability to which
the fair value option has been applied using either the
contractual interest rate on the asset or liability or the
effective yield method based on the amount at which the
asset or liability was first recognized on the balance
sheet. Although the use of the contractual interest rate is
an acceptable method under GAAP, when a financial
asset or liability has a significant premium or discount
upon initial recognition, the measurement of interest
income or interest expense under the effective yield
method more accurately portrays the economic substance of the transaction. In addition, in some cases,
GAAP requires a particular method of interest income
recognition when the fair value option is elected. For
example, when the fair value option has been applied to a
beneficial interest in securitized financial assets within
the scope of Emerging Issues Task Force Issue No. 99-20,
“Recognition of Interest Income and Impairment on
Purchased and Retained Beneficial Interests in Securi-

tized Financial Assets,” interest income should be measured in accordance with the consensus in this Issue.
Similarly, when the fair value option has been applied to
a purchased impaired loan or debt security accounted for
under AICPA Statement of Position 03-3, “Accounting
for Certain Loans or Debt Securities Acquired in a
Transfer,” interest income on the loan or debt security
should be measured in accordance with this Statement of
Position when accrual of income is appropriate.
Revaluation adjustments, excluding amounts reported as
interest income and interest expense, to the carrying
value of all assets and liabilities reported in Schedule RC
at fair value under a fair value option (excluding servicing assets and liabilities reported in Schedule RC, item 8,
“Other assets,” and Schedule RC, item 18, “Other
liabilities,” respectively, and trading assets and trading
liabilities reported in Schedule RC, item 5, ‘‘Trading
assets,’’ and Schedule RC, item 14, ‘‘Trading liabilities,’’
respectively) resulting from the periodic marking of such
assets and liabilities to fair value should be reported as
“Noninterest income: Other” in Schedule RI, item 5(a)(6).
Line item M1 Net change in fair values of financial
instruments accounted for under a fair value option.
Report the net change in fair values of all financial
instruments that the Edge or agreement corporation has
elected to account for under the fair value option that is
included in item 5(a)(6), ‘‘Noninterest income: Other.”

items
and 5(b), "From related organizations."

FR 2886b
Income Statement

March 2009

RI-7

DRAFT

10/19/2010

Schedule RC-N

being in nonaccrual status if: (1) they are maintained on a
cash basis because of deterioration in the financial position of the borrower, (2) payment in full of interest or
principal is not expected, or (3) principal or interest has
been in default for a period of 90 days or more unless the
obligation is both well-secured and in the process of
collection. A nonaccrual asset may be restored to an
accrual status when none of its principal or interest is due
and unpaid or when it otherwise becomes well-secured
and is in the process of collection.
For purposes of applying the third test for the nonaccrual
of interest listed above, the date on which an asset
reaches nonaccrual status is determined by its contractual
terms. If the principal or interest on an asset becomes due
and unpaid for 90 days or more on a date that falls
between report dates, the asset should be placed in
nonaccrual status as of the date it becomes 90 days past
due and should remain in nonaccrual status until it meets
the criteria for restoration to accrual status described
above.
Loans restructured in
A debt is ‘‘well-secured’’
if it is secured (1) by collateral
troubled debt
in the formrestructurings
of liens on, or pledges of, real or personal
property, including securities, that have a realizable value
sufficient to discharge the debt in full, or (2) by the
guarantee of a financially responsible party. A debt is
‘‘in the process of collection’’ if collection of the debt
is proceeding in due course either through legal action,
including judgment enforcement procedures, or, in
appropriate circumstances, through collection efforts that
do not involve legal actions, provided they are reasonably expected to result in repayment of the debt or in its
restoration to a current status.
Restructured For the purposes of this report, restructured
loans and leases are those loans and leases whose terms
have been modified, because of a deterioration in the
financial position of the borrower, to provide for a
reduction of either the interest or principal. Once an
obligation has been restructured because of such credit
problems, it continues to be considered restructured until
paid in full or until such time as the terms are substantially equivalent to terms on which loans with comparable risks are being made. A loan extended or renewed
at a stated interest rate equal to the current interest rate
for new debt with a similar risk is not considered a
restructured loan. Also, a loan to a purchaser of ‘‘other
real estate owned’’ by the reporting corporation for the

purpose of facilitating the disposal of such real estate is
not considered a restructured loan.

Item Instructions
Report in Items 1 and 2 the full outstanding balances (not
just delinquent payments) of loans, lease financing
receivables and any other assets that are past due and
upon which the corporation continues to accrue interest,
as follows:
Line Item 1
accruing.

Past due 30–89 days and still

Report any loans, lease financing receivables and any
other assets that are past due 30–89 days (as defined
above) and still accruing.
Line Item 2
accruing.

Past due 90 days or more and still

Report the loans, lease financing receivables and any
other assets as specified above on which payment is due
and unpaid for 90 days or more.
Exclude from Items 1 and 2 all loans, lease financing
receivables and any other assets that are on a nonaccrual
status.
Line Item 3

Nonaccrual.

Report the outstanding balances of loans, leases and
other assets that are in nonaccrual status. However,
restructured loans and leases with a zero percent effective
interest rate are not to be reported on this line as
nonaccrual loans, leases and other assets.
Item 4

Total.

loans restructured in troubled

Enter the total of Items
through 3.
debt1 restructurings
Memorandum Item 1 Restructured loans and
leases included in Item 4 above.
Include
Report the outstanding balances of restructured loans and
leases (as defined above) that under their modified terms
are past due 30 days or more or are in nonaccrual status
as of the report date. Such loans and leases will have been
included in one or more lines of this schedule. Exclude
from this item all restructured loans to individuals for
household, family and other personal expenditures.

and all loans secured by 1-4 family
residential properties.
RC-N-2

Schedule RC-N

FR 2886b
March 2008