Financial Statements of Foreign Subsidiaries of U.S. Banking Organizations

DRAFT

10/19/2010

Schedule IS

scope of Emerging Issues Task Force Issue No. 99-20,
“Recognition of Interest Income and Impairment on
Purchased and Retained Beneficial Interests in Securitized Financial Assets,” interest income should be measured in accordance with 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 BS
at fair value under a fair value option (excluding servicing assets and liabilities reported in Schedule BS, item 7,
“All other assets,” and Schedule BS, item 14, “Other

liabilities,” respectively, and trading assets and trading
liabilities reported in Schedule BS, item 4, ‘‘Trading
assets,’’ and Schedule BS, item 11, ‘‘Trading liabilities,’’
respectively) resulting from the periodic marking of such
assets and liabilities to fair value should be reported as
“Other noninterest income” in Schedule IS, item
5(a)(10).
Line Item 2 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 subsidiary has elected to account for
under the fair value option that is included in Schedule IS, item 5(a)(10), ‘‘Other noninterest income.’’
If the amount reported in this item is negative, paper
filers should enclose it in parentheses or report with a
minus (-) sign. Electronic filers should report negative
amounts with a minus (-) sign.

items 5.a.(3), "Trading revenue," 5.a.(6), "Net
Servicing fees," 5.a.(10), "Other interest income,"
and 5.b., "From related organizations."

IS-8

Schedule IS

FR 2314
March 2010

10/19/2010

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.

(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);
(5) Loans to depository institutions (report in item 2);
(6) Loans to nonprofit organizations (report in item 5);
and
(7) Loans to nondepository financial institutions (report
in item 5).
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

Total loans and lease financing

Report the sum of items 1 through 5.

included in item 6 above

Exclude:
(1) Loans secured by real estate (report in item 1);

All other loans and lease financing

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.

loans restructured in troubled
debt restructurings
Line Item 7(a) Loans and leases past due 30
through 89 days.
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 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.
Schedule BS-A

FR 2314
March 2007

DRAFT

10/19/2010

Schedule BS-A
loans restructured in troubled
debt restructurings
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.

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
NOTE: Loans to individuals for household, family, and
structured so that the borrower’s minimum monthly (or
other personal expenditures and loans secured by 1–4
other periodic) payment is contractually permitted to be
family residential properties on which principal or interless than the full amount of interest owed to the lender,
with the unpaid interest added to the loan’s principal
est is due and unpaid for 90 days or more are not required
balance. The contractual terms of the loan provide that if
to be reported as nonaccrual loans. Nevertheless, such
the borrower allows the principal balance to rise to a
loans should be subject to other alternative methods of
pre-specified amount or maximum cap, the loan payevaluation to assure that the subsidiary’s net income is
ments are then recast to a fully amortizing schedule.
not materially overstated. To the extent that the subsidiNegative amortization features may be applied to either
ary has elected to carry any loans in nonaccrual status on
adjustable-rate mortgages or fixed-rate mortgages, the
its books, such loans must be reported as nonaccrual in
latter commonly referred to as graduated payment mortthis item.
gages (GPMs).
Loans restructured in troubled

debt restructurings
Line Item 7(d) Restructured loans and leases
included in items 7(a) through 7(c) above.

Loans restructured in troubled debt
Report loans and leases that, under their modified terms,
restructurings
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.

Include
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
Schedule BS-A

March 2007

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