Annual Financial Statements of U.S. Nonbank Subsidiaries Held by Foreign Banking Organizations

INSTRUCTIONS FOR PREPARATION OF

Financial Statements of U.S. Nonbank
Subsidiaries Held by Foreign Banking
Organizations
FR Y-7N and FR Y-7NS
For purposes of this report, saving and loan holding companies are subject to the same
reporting requirements as bank holding companies, unless otherwise noted in these
instructions. All references to "bank holding company(s)" are inclusive of "savings and loan
holding company(s)" unless otherwise noted.1

GENERAL INSTRUCTIONS
Who Must Report
The Financial Statements of U.S. Nonbank Subsidiaries
Held by Foreign Banking Organizations (FR Y-7N/
FR Y-7NS) must be filed either quarterly or annually by
the top-tier foreign banking organization (FBO) for each
U.S. nonbank subsidiary1 it owns or controls.
The FR Y-7N/FR Y-7NS must be submitted for each
legal entity subject to reporting requirements. Therefore,
consolidation of individual entities is not permitted.
For purposes of this report, nonbank subsidiaries include,
but are not limited to, commercial or consumer finance
companies, leasing companies, mortgage banking companies, venture capital corporations, small business investment companies, and data processing and information
services
companies
that doallnot have a primary U.S.
green
highlight
- renumber
regulatorfootnotes
other than the Federal Reserve System.
existing

Quarterly Filers—Detailed Report
(FR Y-7N)
Each top-tier FBO must file the FR Y-7N report on a
quarterly basis for each of its U.S. nonbank subsidiaries
Forone
SLHCs,
subsidiary
is
that meets any
of theafollowing
criteria:
defined in section 238.2 of
1) The totalFederal
assets of Reserve
the nonbank
subsidiary are equal to
Regulation
or greaterLL,
than
$1 billion;
or includes
which
generally
companies
more than
25
2) The nonbank
subsidiary’s
off-balance-sheet
activipercent
owned
or
controlled
2
ties are equal to or greater than $5 billion.
by another company.
1. A subsidiary, for purposes of this report, is defined by Section 225.2
of Federal Reserve Regulation Y, which generally includes companies
25 percent or more owned or controlled by another company.
2. 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 futures and forward contracts, option
FR Y-7N and FR Y-7NS
General Instructions December 2009

March 2013

Once a nonbank subsidiary satisfies the criteria to file the
FR Y-7N for any quarter during the calendar year, the
nonbank subsidiary must continue to file the quarterly
FR Y-7N for the remainder of the calendar year even if it
no longer satisfies the requirement for filing the quarterly
FR Y-7N.
Nonbank subsidiaries that do not meet the quarterly filing
thresholds may be requested to file quarterly if the
Federal Reserve Bank has determined that these nonbank
subsidiaries have significant risk exposures.

Annual Filers—Detailed Report
(FR Y-7N)
A nonbank 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 Y-7N report on an annual basis.

Annual Filers—Abbreviated Report
(FR Y-7NS)
A nonbank subsidiary that does not meet the criteria to
file the detailed report, but does meet the following
criterion, must file the Abbreviated Financial Statements
of U.S. Nonbank Subsidiaries Held by Foreign Banking
Organizations (FR Y-7NS) on an annual basis:
Insert new footnote 1: Savings and loan
• The nonbank
subsidiary
total any
assets
equal to or
holding
companies
do nothas
include
trust
greater
than
$50 million
(but less than $250 million).
(other
than
a pension,
profit-sharing,
stockholders' voting, or business trust) which
controls
savings association
Other aReporting
Criteria if such trust by
its terms must terminate within 25 years or
• Foreign
banking
organizations
(FBOs) must
not
later than
21 years
and 10 months
after submit a
separate
FR
Y-7N/FR
Y-7NS
for
each
of
its nonbank
the death of individuals living on the effective
subsidiaries
satisfying
the
above
criteria
whether
date of the trust, and (a) was in existence and
in control of a savings association on June 26,
contracts,
value of interesttrust.
rate swaps,
1967,
or,and
(b)theisnotional
a testamentary
Seeexchange swaps,
and
other
swaps.
Section 238.2 of the interim final rule of
Regulation LL, dated September 13, 2011, for
GEN-1
more information.

General Instructions

directly or indirectly owned (as defined per Regulation Y, section 225.2 (o)). Each FBO must submit a
report on a parent only (non-consolidated) basis for
each parent nonbank subsidiary meeting the critieria
and submit individual reports for each lower level
nonbank subsidiary required to file the report.

• Any subsidiary of a U.S. commercial bank, or federallyinsured company which is a subsidiary of a BHC;

• Consolidation of individual entities, including variable
interest entities (VIEs), is not permitted. Each FBO
should separately assess whether a VIE meets the
definition of subsidiary and determine if any such
entity meets the criteria for filing this report.

• Any subsidiary of a Small Business Investment Company (SBIC controlled investment);

• The FR Y-7N/FR Y-7NS report for a U.S. nonbank
subsidiary owned by more than one FBO should be
submitted in its entirety by the FBO with the majority
ownership. If a nonbank subsidiary is equally owned
by two or more FBOs, the FR Y-7N/FR Y-7NS report
should be submitted in its entirety by the largest FBO
based on total consolidated assets.

• Industrial banks, savings associations, thrifts, nondepository trust companies and other companies that are
federally insured;

• Any nonbank subsidiary that is functionally regulated
by regulatory agency, other than the Federal Reserve
System, such as the Securities Exchange Commission
(‘‘SEC’’), Commodity Futures Trade Commission
(‘‘CFTC’’), State Insurance Commissioners, or State
Securities Departments;
• Any subsidiary of a U.S. BHC that reports on the
Financial Statements of Nonbank Subsidiaries of Bank
Holding Companies (FR Y-11/FR Y-11S);

Exemptions from Reporting U.S. Nonbank
Subsidiary Financial Statements

• Any non-depository trust company that is a member of
the Federal Reserve System and required to file the
Consolidated Reports of Condition and Income;

The following U.S. nonbank subsidiaries are exempt
from submitting the financial statements of U.S. nonbank
subsidiaries held by FBOs:

• Any subsidiary that is required to file a Report of
Condition for Edge or Agreement Corporations (FR
2886b);

• Any company whose total assets are less than $50
million;

• Any subsidiary, joint venture, or portfolio investment
that is required to file the Reports of Condition for
Foreign Subsidiaries of U.S. Banking Organizations
(FR 2314/FR 2314S);

• Any company, the shares of which are held:
(a) as a result of debts previously contracted (i.e.,
acquired under section 4(c)(2) of the Bank Holding
Company (BHC) Act);
(b) in a fiduciary capacity under section 4(c)(4) of the
BHC Act; or
(c) solely as collateral securing an extension of credit;
• Any company that engages in business in the U.S.
pursuant to section 2(h)(2) of the BHC Act (however,
this exemption does not extend to section 4(c)(8)
subsidiaries of section 2(h)(2) companies);

• 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); and
• Any branch, agency, or representative office of a
foreign bank.
• Any subsidiary that is inactive as of the end of the
reporting period.

• Any company that engages in business in the U.S.
pursuant to section 8(c) of the International Banking
Act and performs commercial activities;

• Any subsidiary such as a namesaver or newly organized company that has never conducted any business
activity. However, a subsidiary that is newly incorporated is required to report upon the commencement of a
business activity once it meets the reporting criteria.

• Any subsidiary that is considered a merchant banking
investment, the shares of which are held pursuant to
section 4(k)4(H) of the BHC Act;

• Any subsidiary that was divested or liquidated during
the year. Reports must only be filed for nonbank
subsidiaries that are part of the FBO’s organizational

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FR Y-7N and FR Y-7NS
General Instructions March 2011

General Instructions

structure as of the close of the business day on the
report date for which the report is being filed.
• Any subsidiary that 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).
• Any subsidiary that issues trust preferred securities.
Please note that U.S. nonbank subsidiaries that are not
required to file under the above criteria may be required
to file the FR Y-7N/FR Y-7NS by the Federal Reserve
Bank that is responsible for the regulation of the top-tier
FBO.
A graphic representation of the general criteria for the
FR Y-7N/FR Y-7NS appears at the end of these General
Instructions (page GEN-6).

Frequency of Reporting
A FBO must submit the FR Y-7N report for each
nonbank subsidiary that meets the criteria to file quarterly
as of the last calendar day of March, June, September,
and December. A FBO must submit the FR Y-7N report
for each nonbank subsidiary that meets the criteria to file
annually as of December 31. A FBO must submit FR
Y-7N for each nonbank subsidiary that meets the criteria
to file the abbreviated report annually as of December 31.
The reporting should commence at the end of the quarter
in which the subsidiary meets the significance threshold.

Preparation of the Reports
FBOs are required to prepare the financial statements of
its U.S. nonbank subsidiaries (FR Y-7N/FR Y-7NS) in
accordance with generally accepted accounting principles (GAAP) and these instructions. All reports shall be
reported in a consistent manner.
The nonbank 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 that is responsible for the regulation of the top-tier FBO.
FR Y-7N and FR Y-7NS
General Instructions September 2011

FBOs 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 Y-9SP) for additional information on the items requested on this report. Copies of the
FR Y-7N, FR Y-7NS, FR Y-9C, and FR Y-9SP may
be found on the Federal Reserve Board’s public website
(www.federalreserve.gov/ boarddocs/reportforms.)

Applicability of Generally Accepted
Accounting Principles
It should be noted that the presentation by subsidiaries of
assets, liabilities, stockholders’ equity, and the recognition of income and expenses should be reported in
accordance with generally accepted accounting principles. 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.
All ownership interests in the subsidiary have an interest
in the aggregate amounts of a subsidiary’s reported
earnings, retained earnings, and net assets (whether held
by its parent organization or by other owners) and should
be reported as equity capital in the financial statements.
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 FASB
Accounting Standards Codification. For purposes of these
instructions, the FASB Accounting Standards Codification is referred to as ‘‘ASC.’’ Selected sections of the
ASC are referenced in the instructions where appropriate.
When the Federal Reserve’s interpretation of how GAAP
or 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 Y-7N/FR Y7NS reports in accordance with the Federal Reserve’s
interpretation and to amend previously submitted reports.

Cover Page
The FBO must submit a cover page for each financial
statement. If the FBO elects to file multiple financial
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General Instructions

statements under one signature, the FBO must submit
one signed cover page per type of report, the FR Y-7N
quarterly, the FR Y-7N annual or the FR Y-7NS. The
cover page of the report must include the legal name of
the FBO filing the FR Y-7N/FR Y-7NS and the mailing
address. The name, telephone number, and e-mail address
of a U.S. contact to whom questions about the report(s)
may be directed must be indicated.

Signatures
The FR Y-7N/FR Y-7NS must be signed as indicated on
the cover page by a duly authorized officer of the FBO.
The top-tier FBO may authorize an officer of the nonbank
subsidiary to sign the report. By signing the cover page of
this report, the authorized officer acknowledges that any
knowing and willful misrepresentation or omission of a
material fact on any reports included under this signature
constitutes fraud in the inducement and may subject the
officer to legal sanctions provided by 18 USC 1001 and
1007.

Number of Reports Attested to Under This
Signature
For all reports submitted under the officer’s signature, the
FBO must indicate on the cover page the total number of
reports for which the officer attested.

December Only Reporting
For the December FR Y-7N report, the FBO must
indicate on the cover page whether the submission is for
quarterly or annual filers.

Detailed Listing of Subsidiaries
The FBO must complete a separate page(s) containing
the detailed listing of subsidiaries for each cover page.
For submission of multiple financial statements under the
officer’s signature, the FBO must complete a separate
page(s) containing the detailed listing of subsidiaries for
each type of report. The FBO must provide on the page(s)
containing the detailed listing of subsidiaries the legal
name, address and subsidiary ID for all reports attested to
under the officer’s signature as indicated on the cover
page. When specifying the name(s) of the nonbank
subsidiaries, use the legal name of the subsidiaries as
they appear on the papers of incorporation or formation
documents. The legal name must be the same name that
GEN-4

is specified on the Report of Changes in Organizational
Structure (FR Y-10). The page(s) containing the detailed
listing of subsidiaries should be retained at the FBO for
their records and should not be submitted to the Reserve
Bank.

Submission of Reports
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 shall 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 nonbank subsidiary required to file the report. An ‘‘N/A’’ should be
entered if the nonbank subsidiary cannot be involved in a
transaction because of the nature of the organization. A
zero should be entered whenever a nonbank subsidiary
can participate in an activity, but may not, on the report
date, have any outstanding balances.

Where to Submit the Reports
For paper filers of report form. The original report and
the number of copies specified by the Reserve Bank
should be submitted to the Reserve Bank where the FBO
files its Annual Report of Foreign Banking Organizations
(FR Y-7).
All reports shall be made out clearly and legibly by
typewriter or in ink. Reports completed in pencil will not
be accepted. FBOs may submit computer printouts in a
format identical to that of the report form, including all
item and column captions and other identifying numbers.
FBOs must maintain in their files a copy of the manually
signed cover page of the Reserve Bank-supplied forms
received for the report date, attached to the page(s)
containing the detailed listing of subsidiaries, and a print
out of the data submitted.
Electronic submission of report form. Any FBO interested in submitting the FR Y-7N electronically should
contact the Federal Reserve Bank in the district where the
FBO files its Annual Report of Foreign Banking Organizations (FR Y-7). At this time, electronic filing of the FR
Y-7NS is not available. Federal Reserve Bank staff will
notify FBOs when the electronic reporting option for the
FR Y-7NS becomes available.
FBOs choosing to submit these reports electronically
must maintain in their files the original manually signed
FR Y-7N and FR Y-7NS
General Instructions September 2011

General Instructions

cover page of the Reserve Bank-supplied forms received
for the report date, attached to the page(s) containing the
detailed listing of subsidiaries, and a printout of the data
submitted.

Submission Date
A FBO must file this report for its nonbank 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
Y-7N/FR Y-7NS 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.
NOTE: A FBO must submit all of its required nonbank
subsidiary reports on or before the submission deadline
to be considered timely.
FR Y-7N and FR Y-7NS
General Instructions March 2011

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 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 reporting FBO may
request confidential treatment for one or more of the
nonbank subsidiaries for which it submits the financial
statements of U.S. nonbank subsidiaries held by FBO 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 Y-7N/FR Y-7NS 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
be so treated, and will advise the FBO through the
appropriate Reserve Bank of any decision to make
available to the public any of the information.
Information for which confidential information is
requested may subsequently be released by the Federal
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General Instructions

Reserve System 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 U.S. Nonbank Subsidiaries Held
by Foreign Banking Organizations if reports as previously submitted contain significant errors. In addition, a
FBO should file an amended report when internal or
external auditors make audit adjustments that result in a
restatement of financial statements affecting reports previously submitted to the Federal Reserve.
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.

or indirectly controls the reporting nonbank subsidiary,
then all organizations directly or indirectly controlled by
each FBO is considered related regardless of whom
submits this report). In addition, for purposes of this
report related organizations 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 FBO structure and refer to third party entities.

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.

For amended reports, the FBO must submit a newly
signed cover page and separate financial statements for
each subsidiary that is amending its data. The page(s)
containing the detailed listing of subsidiaries must be
completed, attached to the cover page and a printout of
the data submitted and placed in the FBO’s files. The
page(s) containing the detailed listing of subsidiaries
should not be submitted to the Reserve Bank.

Negative Entries

Definitions

For items where negative entries are allowed, paper filers
should enclose negative amounts in parentheses or report
with a minus (-) sign. Electronic filers should report
negative amounts with a minus (-) sign.

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 indirectly by any FBO that controls the
reporting subsidiary (i.e., if more than one FBO directly

GEN-6

Negative entries are generally not appropriate on the
FR Y-7N/FR Y-7NS reports and should not be reported
unless the line item instructions allow it. Hence, assets
with credit balances should be reported in liability items
and liabilities with debit balances should 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 nonbank subsidiaries if the
FR Y-7N/FR Y-7NS report is not sufficient to appraise
the financial soundness of the nonbank subsidiary or to
determine its compliance with applicable laws and regulations.

FR Y-7N and FR Y-7NS
General Instructions March 2011

General Instructions

General Criteria Chart for FR Y-7N/FR Y-7NS
See General Instructions for more detail.
Quarterly Filers
Detailed Report
(FR Y-7N)

Annual Filers
Detailed Report
(FR Y-7N)

Annual Filers
Abbreviated Report
(FR Y-7NS)

Exemptions
No report required

1) Nonbank total assets are
greater than or equal to
$1 billion or
2) Nonbank’s off-balancesheet activities are
greater than or equal to
$5 billion

Nonbank 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

Nonbank does not meet any
of the FR Y-7N filing criteria and its total assets are
greater than or equal to
$50 million but less than
$250 million

Nonbank does not meet any
of the FR Y-7NS criteria
and
1) Nonbank total assets are
less than $50 million or
2) Specific exemption (see
exemption list in General Instructions)

FR Y-7N and FR Y-7NS
General Instructions March 2010

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LINE ITEM INSTRUCTIONS FOR

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 Y-7N
Income Statement

March 2008

(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. 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
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.
IS-1

Schedule IS

Line Item 2(a) Interest expense pertaining to
nonrelated organizations.
Report all interest expense pertaining to nonrelated 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(b) Interest expense pertaining to
related organizations.

Line Item 5(a)

Report all interest expense pertaining to related organizations.

Report all income earned from nonrelated organizations
in the appropriate item.

Line Item 2(c)

Line Item 5(a)(1)

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, paper filers should enclose it in
parentheses or report with a minus (-) sign. Electronic
filers should report negative amounts with a minus (-)
sign.
Line Item 4

Provision for loan and lease losses.

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:

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.’’

(1) Who maintain accounts with the subsidiary or who
fail to maintain specified minimum deposit balances;

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.

(4) For withdrawals from nontransaction deposit
accounts;

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.

(6) For deposits to or withdrawals from deposit accounts
through the use of automated teller machines or
remote service units;

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
organizations in item 5(a) and from related organizations
IS-2

(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;

(5) For accounts which have remained inactive for
extended periods of time or which have become
dormant;

(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;
(9) For certifying checks; and
Schedule IS

FR Y-7N
March 2010

Schedule IS

(10) For accumulation or disbursement of funds deposited to IRA or Keogh Plan accounts when not
handled by the trust department of the subsidiary. If
the account is handled by the subsidiary’s trust
department, 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 this amount 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.
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.
Exclude trading revenue from transactions with related
organizations. Report such revenue in item 5(b).
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’’).
FR Y-7N
Schedule IS

March 2010

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 investment banking, advisory, brokerage, or
securities underwriting activities.
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.
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.
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.
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.’’
IS-3

Schedule IS

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.
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 retained by the subsidiary (report in the
appropriate subitem of item 1, ‘‘Interest 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.
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 and report in item 5(a)(9).
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.
Line Item 5(a)(9)
annuity sales.

Fees and commissions from

Report fees and commissions from sales of annuities
(fixed, variable, and other) by the nonbank subsidiary and
fees earned from customer referrals for annuities to
insurance companies and insurance agencies external to
the nonbank subsidiary. Also include management fees
IS-4

earned from annuities. However, exclude fees and commissions from sales of annuities by the trust department
of the subsidiary or the subsidiary acting in any fiduciary
capacity reported in item 5(a)(1), ‘‘Income from fiduciary
activities.’’
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 annuity product underwriting or sales activities.
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.
Line Item 5(a)(10)

Other noninterest income.

Report all other noninterest income derived from nonrelated organizations that is not reported above. If this
amount 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.
Line Item 5(b)

From related organizations.

Report all noninterest income derived from related organizations. Include in this item trading revenue from
transactions with related organizations. Exclude the parent’s equity in undistributed income of subsidiaries from
this item and report in item 11.
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.
Line Item 5(c)

Total noninterest income.

Report the sum of items 5(a)(1) through 5(a)(10) and
5(b). If this amount 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.
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
Schedule IS

FR Y-7N
March 2010

Schedule IS

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 this amount 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. 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).

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.

Exclude:

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,
‘‘Premises and fixed assets.’’ If this net amount is a credit
balance, enclose it in parentheses.

(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)(10), ‘‘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.
Line Item 7(a)
organizations.

Pertaining to nonrelated

Report the amount of noninterest expense of the subsidiary pertaining to activities with nonrelated organizations
(i.e., third-party transactions). 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.
FR Y-7N
Schedule IS

March 2010

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’
IS-5

Schedule IS

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; 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.
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.’’ If
this amount 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.
Line Item 7(c)

Total noninterest expense.

Report the sum of items 7(a) and 7(b). If this amount 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.
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 this amount 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.
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 this
IS-6

amount is negative (i.e., the amount is a tax benefit rather
than a tax expense), paper filers should enclose the
amount in parentheses or report with a minus (-) sign.
Electronic filers should report negative amounts with a
minus (-) sign.
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.
Include:
(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);
(2) The results of discontinued operations as determined
in accordance with the provisions of ASC Topic 360,
Property, Plant, and Equipment (formerly FASB
Statement No. 144, Accounting for the Impairment or
Disposal of Long-Lived Assets);
(3) Material aggregate gains on troubled debt restructuring of the subsidiary’s own debt as determined in
accordance with the provisions of ASC Subtopic
470-60 Debt – Troubled Debt Restructurings by
Debtors (formerly FASB Statement No. 15, Accounting by Debtors and Creditors for Troubled Debt
Restructurings); and
(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
Schedule IS

FR Y-7N
September 2011

Schedule IS

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)(10) or 7, respectively.
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.
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).
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.
Line Item 12

Net income (loss).

Report the sum of items 8, 10, and 11 minus item 9. If
this amount 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. This item must equal Schedule IS-A, Changes in
Equity Capital, item 2, ‘‘Net income.’’

Memorandum
Memorandum item 1 is to be completed by nonbank
subsidiaries that have elected to account for financial
instruments or servicing assets and liabilities at fair
value under a fair value option.
Memorandum item 1 is to be completed by subsidiaries
that have adopted ASC Topic 820, Fair Value Measurements and Disclosures (formerly FASB Statement No.
157, Fair Value Measurements), and have elected to
report certain assets and liabilities at fair value with
changes in fair value recognized in earnings in accordance with U.S. generally accepted accounting principles
(GAAP) (i.e., ASC Subtopic 825-10, Financial Instruments – Overall (formerly FASB Statement No. 159, The
Fair Value Option for Financial Assets and Financial
Liabilities); ASC Subtopic 815-15, Derivatives and Hedging – Embedded Derivatives (formerly FASB Statement
FR Y-7N
Schedule IS

September 2011

No. 155, Accounting for Certain Hybrid Financial Instruments); and ASC Subtopic 860-50, Transfers and Servicing – Servicing Assets and Liabilities (formerly FASB
Statement No. 156, Accounting for Servicing of Financial Assets)). This election is generally referred to as the
fair value option.
If the subsidiary 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 IS, not as part of the reported change
in fair value of these assets and liabilities for the year-todate. The subsidiary 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 ASC Subtopic 325-40, Investments-Other –
Beneficial Interests in Securitized Financial Assets (formerly Emerging Issues Task Force Issue No. 99-20,
Recognition of Interest Income and Impairment on Purchased and Retained Beneficial Interests in Securitized
Financial Assets), interest income should be measured in
accordance with the consensus in this Subtopic. Similarly, when the fair value option has been applied to a
purchased impaired loan or debt security accounted for
under ASC Subtopic 310-30, Receivables – Loans and
Debt Securities Acquired with Deteriorated Credit Quality (formerly AICPA Statement of Position 03-3, Accounting for Certain Loans or Debt Securities Acquired in a
Transfer), interest income on the loan or debt security
should be measured in accordance with this Subtopic
when accrual of income is appropriate.
Revaluation adjustments, excluding amounts reported as
interest income and interest expense, to the carrying
IS-7

Schedule IS

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).
assets and liabilities to fair value should be reported as
‘‘Other noninterest income’’ in Schedule IS, item 5(a)(10).

under the fair value option that is included in Schedule IS, items 5.a.(3), ‘‘Trading revenue,’’ 5.a.(6), ‘‘Net
servicing fees,’’ 5.a.(10), ‘‘Other noninterest income,’’
and 5(b), ‘‘From related organizations.’’
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.

Line Item 1 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

IS-8

Schedule IS

FR Y-7N
September 2011

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.
Paper filers should enclose all net decreases and losses
(net reductions of equity capital) in parentheses or report
with a minus (-) sign. Electronic filers should report all
net decreases and losses (net reductions of equity capital)
with a minus (-) sign.

Line Item 3 Sale, conversion, acquisition, or
retirement of common stock and perpetual
preferred stock.
Report the changes in the subsidiary’s total equity capital
resulting from the sale, conversion, acquisition, or retirement 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).’’
FR Y-7N
Changes in Equity Capital

March 2010

(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:
IS-A-1

Schedule IS-A

(a) The net decrease in equity capital which occurs
when cash is distributed in lieu of fractional
shares in a stock dividend;
(b) The net increase in equity capital when a stockholder who receives a fractional share from 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. Exclude dividends declared during the previous calendar year but paid in the current period.

Line Item 5 Other comprehensive income.
Report the amount of other comprehensive income for
the calendar year-to-date. Other comprehensive income
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 ASC Subtopic 220-10, Comprehensive Income – Overall (formerly FASB Statement
No. 130, Reporting Comprehensive Income) 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.

Line Item 7
period.

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); and
(4) change in offsetting debit to the liability for Employee
Stock Ownership Plan (ESOP) debt guaranteed by
the subsidiary.
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.’’

Schedule IS-A

FR Y-7N
September 2011

LINE ITEM INSTRUCTIONS FOR

Changes in Allowance
for Loan and Lease Losses
Schedule IS-B

General Instructions

Line Item 3

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.

Enter the amount of gross charge-offs on loans and leases
during the calendar year-to-date.

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. If this amount 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.

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.
Line Item 2

Recoveries.

Include recoveries of amounts previously charged off
against the allowance for possible loan and lease losses.

FR Y-7N
Changes in Allowance for Loan and Lease Losses

March 2010

Line Item 4

Less: Charge-offs.

Provision for loan and lease losses.

This item must equal Schedule IS, item 4, ‘‘Provision for
loan or lease losses.’’ If this amount 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.
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 Y-7N
Balance Sheet

March 2007

BS-1

Schedule BS

(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.)

changes in value (appreciation and depreciation) directly
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

Report the fair value of available-for-sale securities.

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.’’
ASC Topic 320, Investments-Debt and Equity Securities
(formerly FASB Statement No. 115, Accounting for
Certain Investments in Debt and Equity Securities),
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 ASC Topic 320, 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
ASC Topic 320 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
BS-2

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.

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
Schedule BS

FR Y-7N
September 2011

Schedule BS

for other trading purposes shall report in this item the
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.;
(4) Securities of all foreign governments and official
institutions;

(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;
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;
FR Y-7N
Schedule BS

September 2011

(2) Favorable leasehold rights (report in Schedule BS-M,
item 3(e), ‘‘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

Schedule BS

(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 ASC Subtopic 360-20, Property, Plant, and Equipment – Real Estate Sales (formerly 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 direct
investments in real estate or real estate joint ventures
in accordance with ASC Subtopic 310-10, Receivables – Overall (formerly AICPA Practice Bulletin 1,
Appendix, Exhibit 1, ADC Arrangements);
(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 ASC Subtopic 360-20;
(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;
(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

collected, prepaid expenses, accounts receivable, and 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 Balances due from related
institutions, gross.
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, associated companies, corporate joint
ventures, unincorporated joint ventures, and general partnerships over which the respondent exercises significant
influence; and noncontrolling investments in certain
limited partnerships and limited liability companies (as
described in the FR Y-9C Glossary entry for ‘‘equity
method of accounting’’), less any dividends paid or
declared.
Exclude all balances due to related institutions and
include in item 16.
Line Item 10

Total assets.

Report the sum of items 8 and 9.

(9) Property originally acquired for future expansion but
no longer intended to be used for that purpose.

Liabilities and Equity Capital

Line Item 7

Items 11 through 15 exclude balances due to related
institutions. Report balances due to related institutions in
item 16.

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
BS-4

Line Item 11

Trading liabilities.

Report the amount of liabilities from the reporting subsidiary’s trading activities. Include liabilities resulting
Schedule BS

FR Y-7N
September 2011

Schedule BS

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
subsidiary has entered for trading, dealer, customer
accommodation, and similar purposes.
Line item 12 Other borrowed money with a
remaining maturity of one year or less (including
commercial paper issued and federal funds
purchased).
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:

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
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) 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;

(1) Demand notes issued to the U.S. Treasury;

(6) ‘‘Term federal funds’’ purchased;

(2) Promissory notes;

(7) Securities sold under agreements to repurchase;

(3) Notes and bills rediscounted (including commodity
drafts rediscounted);

(8) Notes and debentures issued by the respondent
subsidiary;

(4) Loans sold under repurchase agreements and sales of
participations in pools of loans that mature in more
than one business day;

(9) Mortgage indebtedness and obligations under capitalized leases with a remaining maturity of more
than one year; and

(5) Due bills issued representing the subsidiary’s receipt
of payment and similar instruments, whether collateralized or uncollateralized;

(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.

(6) Overnight and ‘‘Term federal funds’’ purchased;
(7) Securities sold under agreements to repurchase; and
(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.
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,
FR Y-7N
Schedule BS

June 2010

Exclude all borrowings with related institutions. Report
such borrowings in item 16.
Line Item 14

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), dividends
declared but not yet payable, accounts payable (other
than expenses accrued and unpaid), liability on deferred
BS-5

Schedule BS

payment letters of credit, deferred gains from saleleaseback transactions, and unamortized loan fees (other
than those that represent an adjustment of the interest
yield, if material).
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.
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
BS-6

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)).
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
Schedule BS

FR Y-7N
June 2010

Schedule BS

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));
(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.
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.
Line Item 18(d)
income.

Accumulated other comprehensive

Report the amount of other comprehensive income in
conformity with the requirements of ASC Subtopic 22010, Comprehensive Income – Overall (formerly 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 ASC Topic 320, Investments-Debt and Equity
Securities (formerly FASB Statement No. 115, Accounting for Certain Investments in Debt and Equity Securities), that are designated as ‘‘available-for-sale’’ will be
reported as ‘‘available-for-sale securities’’ in item 2(b),
above. However, a subsidiary may have certain assets
that fall within the definition of ‘‘securities’’ in ASC
Topic 320 (e.g., commercial paper or nonrated industrial
development obligations) that the subsidiary has designated as ‘‘available-for-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.
FR Y-7N
Schedule BS

September 2011

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
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 ASC Topic 815, Derivatives and Hedging (formerly FASB Statement No. 133,
Accounting for Derivative Instruments and Hedging
Activities, as amended).
Under ASC Topic 815, 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
BS-7

Schedule BS

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).

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.

Report the sum of the subsidiary’s foreign currency
translation adjustments accumulated in accordance with
ASC Topic 830, Foreign Currency Matters (formerly
FASB Statement No. 52, Foreign Currency Translation).
Report any minimum pension liability adjustment recognized in accordance with ASC Topic 715, CompensationRetirement Benefits (formerly FASB Statement No. 87,
Employers’ Accounting for Pensions). Under ASC Topic
715, an employer must report in a separate component of
equity capital, net of any applicable tax benefits, the
excess of additional pension liability over unrecognized
prior service cost.

Line Item 19

Refer to the FR Y-9C instructions and ASC Subtopic
220-10 for additional information on reporting this item.
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.
Line Item 18(e) General and limited partnership
shares and interests.
Report the amount of general or limited partnership
shares or interests issued if the subsidiary is not in
corporate form. If this amount 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.
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.
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.
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.’’
BS-8

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.
Report in items 20 and 21 the unused portions of
commitments. Unused commitments are to be reported
gross, i.e., include in the appropriate item the unused
amount of commitments acquired from and conveyed or
participated to others. However, exclude commitments
conveyed or participated to others that the subsidiary is
not legally obligated to fund even if the party to whom
the commitment has been conveyed or participated fails
to perform in accordance with the terms of the commitment.
For purposes of items 20 and 21, commitments include:
(1) Commitments to make or purchase extensions of
credit in the form of loans or participations in loans,
lease financing receivables, or similar transactions.
(2) Commitments for which the subsidiary has charged a
commitment fee or other consideration.
(3) Commitments that are legally binding.
(4) Loan proceeds that the subsidiary is obligated to
advance, such as:
(a) Loan draws;
(b) Construction progress payments; and
(c) Seasonal or living advances to farmers under
prearranged lines of credit.
(5) Rotating, revolving, and open-end credit arrangements, including, but not limited to, retail credit card
lines and home equity lines of credit.
(6) Commitments to issue a commitment at some point
in the future, where the subsidiary has extended
Schedule BS

FR Y-7N
September 2011

Schedule BS

terms, the borrower has accepted the offered terms,
and the extension and acceptance of the terms are in
writing or, if not in writing, are legally binding on the
subsidiary and the borrower, even though the related
loan agreement has not yet been signed.
(7) Overdraft protection on depositors’ accounts offered
under a program where the subsidiary advises account
holders of the available amount of overdraft protection, for example, when accounts are opened or on
depositors’ account statements or ATM receipts.
(8) The subsidiary’s own takedown in securities underwriting transactions.
(9) Revolving underwriting facilities (RUFs), note issuance facilities (NIFs), and other similar arrangements, which are facilities under which a borrower
can issue on a revolving basis short-term paper in its
own name, but for which the underwriting subsidiary
has a legally binding commitment either to purchase
any notes the borrower is unable to sell by the
rollover date or to advance funds to the borrower.
Exclude forward contracts and other commitments that
meet the definition of a derivative and must be accounted
for in accordance with ASC Topic 815 , Derivatives and
Hedging – Overall (formerly FASB Statement No. 133,
Accounting for Derivative Instruments and Hedging
Activities, as amended), which should be reported in
items 25 through 29, as appropriate. Include the amount
(not the fair value) of the unused portions of loan
commitments that do not meet the definition of a derivative that the subsidiary has elected to report at fair value
under a fair value option. Also include forward contracts
that do not meet the definition of a derivative.
Report the unused portions of commitments in the appropriate item 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 commitment.
For purposes of reporting the unused portions of revolving asset-based lending commitments, the commitment is
defined as the amount a subsidiary is obligated to fund –
as of the report date – based on the contractually agreed
upon terms. In the case of revolving asset-based lending,
FR Y-7N
Schedule BS

September 2011

the unused portions of such commitments should be
measured as the difference between (a) the lesser of the
contractual borrowing base (i.e., eligible collateral times
the advance rate) or the note commitment limit, and (b)
the sum of outstanding loans and letters of credit under
the commitment. The note commitment limit is the
overall maximum loan amount beyond which the subsidiary will not advance funds regardless of the amount of
collateral posted. This definition of ‘‘commitment’’ is
applicable only to revolving asset-based lending, which
is a specialized form of secured lending in which a
borrower uses current assets (e.g., accounts receivable
and inventory) as collateral for a loan. The loan is
structured so that the amount of credit is limited by the
value of the collateral.
Line Item 20 Unused commitments on securities
underwriting.
Report the unsold portion of the subsidiary’s own takedown in securities underwriting transactions. Include
revolving underwriting facilities (RUFs), note issuance
facilities (NIFs), and other similar arrangements.
Line Item 21 Unused commitments on loans and
all other unused commitments.
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;
(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)
BS-9

Schedule BS

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

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.
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
(stated in U.S. dollars) of all futures contracts, forward
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
BS-10

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).
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 futures and forward contracts that commit the
subsidiary to purchase or sell agricultural products (e.g.,
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
Schedule BS

FR Y-7N
September 2011

Schedule BS

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
(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.
Line Item 26(b)

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.
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.

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.
FR Y-7N
Schedule BS

Line Item 27

September 2011

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);
BS-11

Schedule BS

(3) Commitments to purchase and to sell securities that
have not been issued (when-issued securities) and are
excluded from the requirements of ASC Topic 815,
Derivatives and Hedging (formerly FASB Statement
No. 133, Accounting for Derivative Instruments and
Hedging Activities, as amended) and are not reported
in item 25;
(4) Credit derivatives, including contracts where the
subsidiary is the beneficiary;
(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;
(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-12

Memoranda
Memoranda items 1(a) and 1(b) are to be completed by
nonbank subsidiaries that have elected to account for
financial instruments or servicing assets and liabilities
at fair value under a fair value option.
Memoranda items 1(a) and 1(b) are to be completed by
subsidiaries that have adopted ASC Topic 820, Fair
Value Measurements and Disclosures (formerly FASB
Statement No. 157, Fair Value Measurements), and have
elected to report certain assets and liabilities at fair value
with changes in fair value recognized in earnings in
accordance with U.S. generally accepted accounting principles (GAAP) (i.e., ASC Subtopic 825-10, Financial
Instruments – Overall (formerly FASB Statement No.
159, The Fair Value Option for Financial Assets and
Financial Liabilities); ASC Subtopic 815-15, Derivatives
and Hedging – Embedded Derivatives (formerly FASB
Statement No. 155, Accounting for Certain Hybrid
Financial Instruments); and ASC Subtopic 860-50, Transfers and Servicing – Servicing Assets and Liabilities
(formerly FASB Statement No. 156, Accounting for
Servicing of Financial Assets)). This election is generally
referred to as the fair value option.
Line Item 1 Financial assets and liabilities
measured at fair value under a fair value option.
Line Item 1(a)

Total assets.

Report the total fair value of all assets that the subsidiary
has elected to account for under the fair value option that
is included in Schedule BS, Balance Sheet.
Line Item 1(b)

Total liabilities.

Report the total fair value of all liabilities that the
subsidiary has elected to account for under the fair value
option that is included in Schedule BS, Balance Sheet.

Schedule BS

FR Y-7N
September 2011

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 Y-7N
Loans and Lease Financing Receivables

March 2009

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. For
additional information, refer to the FR Y-9C glossary
entry for “loans secured by 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 the
BS-A-1

Schedule BS-A

subsidiary’s bank
organization).

holding

company

or

parent

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.
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.
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);
(5) Loans to depository institutions (report in item 2);

Line Item 5
receivables.

All other loans and lease financing

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 6
receivables.

Total loans and lease financing

Report the sum of items 1 through 5.
Line Item 7
leases.

Past due and nonaccrual loans and

Report the subsidiary loans and lease financing receivables included in item 6 above 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 loans restructured in
troubled debt restructurings 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.

(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 loans
restructured in troubled debt restructurings 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 loans
restructured in troubled debt restructurings past due 90
days or more and still accruing.
Schedule BS-A

FR Y-7N
March 2011

Schedule BS-A

Line Item 7(c) Nonaccrual loans and leases.
Report loans and lease financing receivables accounted
for on a nonaccrual status. Include loans restructured in
troubled debt restructurings 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 well-secured 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.

FR Y-7N
Schedule BS-A

March 2011

Line Item 7(d) Loans restructured in troubled
debt restructurings included in items 7(a) through
7(c) above.
Report loans restructured in troubled debt restructurings
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. Such loans will have been included in
items 7(a), 7(b), or 7(c) above. Loans restructured in
troubled debt restructurings include those loans 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. For further information, see the
FR Y-9C Glossary entry for ‘‘troubled debt restructurings.’’
Include all loans to individuals for household, family, and
other personal expenditures, and all loans secured by 1−4
family residential properties.

BS-A-3

LINE ITEM INSTRUCTIONS FOR

Memoranda
Schedule BS-M

Memoranda Items
Items 1 through 3 exclude balances due from related
institutions. Report balances due from related institutions
in item 4. Items 5 and 6 exclude balances due to related
institutions. Report balances due to related institutions in
item 7.
Line item 1

Loans to non-U.S. addressees.

Report all loans included in Schedule BS, item 3(a),
‘‘Loans and lease financing receivables, net of unearned
income,’’ to non-U.S. addressees. Non-U.S. addresses
(domicile) include residents of any foreign country. U.S.
addressees (domicile) include residents of the 50 states of
the United States, the District of Columbia, Puerto Rico,
and U.S. territories and possessions.
Domicile is determined by the principal residential
address of an individual or the principal business address
of a corporation, partnership, or sole proprietorship. If
other addresses are used for correspondence or other
purposes, only the principal address, insofar as it is
known to the reporting institution, should be used in
determining whether a customer is regarded as a U.S. or
non-U.S. addressee.

from related institutions, gross” or Schedule BS, Item 16,
“Balances due to related institutions, gross.” Refer to the
FR Y-9C instructions and glossary for further information.
Line Item 2(a)
its agencies.

Report the fair value of securities issued by the U.S.
government and all other U.S. government agencies and
official institutions thereof.
Line Item 2(b) Securities of all foreign
governments and official institutions.
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 subsidiary 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.
Line Item 2(c)

Line Item 2 Assets held in trading accounts
(excluding trading account balances with related
organizations).
Subsidiaries 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
2(a) through 2(g) the value of such assets. Consistently
value assets held in trading accounts at 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 institutions, and report in Schedule BS, Item 9, “Balances due
FR Y-7N
Memoranda

March 2009

Securities of U.S. government and

Equity securities.

Report the fair value of all equity securities held in the
subsidiary’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”).
Line Item 2(d)
debentures.

Corporate bonds, notes, and

Report the total value of debt securities issued by corporations.
BS-M-1

Schedule BS-M

Line Item 2(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 ASC Subtopic 210-20, Balance Sheet – Offsetting (formerly FASB Interpretation No. 39, Offsetting of
Amounts Related to Certain Contracts). Refer to the FR
Y-9C instructions for further information.
Line item 2(f)

Loans.

Report the fair value of all loans held for trading reported
in Schedule BS, item 4.
Line item 2(f)(1)

Loans that are past due 90 days.

Line Item 3(b)

Prepaid expenses.

Report the amount of all expenses prepaid and applicable
as a charge against operations in future periods.
Line Item 3(c)

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 6(b), ‘‘Net deferred tax liability.’’
Line Item 3(d)

Accounts receivable.

Report in the appropriate subitem the total fair value and
unpaid principal balance of all loans held for trading
included in item 2(f) that are past due 90 days or more as
of the report date.

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 2(f)(1)(a)

Line Item 3(e)

Fair value.

Report the total fair value of all loans held for trading
included in item 2(f) that are past due 90 days or more as
of the report date.
Line item 2(f)(1)(b)

Unpaid principal balance.

Report the total unpaid principal balance of all loans held
for trading included in item 2(f) that are past due 90 days
or more as of the report date.
Line Item 2(g)
paper).

Other (including commercial

Report the total value of all assets held in trading
accounts that cannot be properly reported in items 2(a)
through 2(f). Include certificates of deposit, bankers’
acceptances, and commercial paper.
Line Item 3

Other Assets.

Line Item 3(a)

Accrued interest receivable.

Report the amount of interest, commissions, and other
income earned or accrued on earning assets and applicable to current or prior periods that has not yet been
collected.
BS-M-2

Intangible assets.

Report the cost of intangible assets. Such intangibles may
arise from:
(1) Business combinations accounted for under the purchase method in accordance with ASC Topic 805,
Business Combinations (formerly FASB Statement
No. 141(R), Business Combinations), and
(2) Acquisitions of portions or segments of another
institution’s business, such as branch offices, mortgage servicing portfolios, and credit card portfolios.
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 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.
Schedule BS-M

FR Y-7N
September 2011

Schedule BS-M

Line Item 4 Balances due from related
institutions, gross.

prior periods, but not yet paid or credited to a deposit
account.

See definition of related institutions in the General
Instructions for more information.

Line Item 6(b)

Line Item 4(a) Balances due from related
institutions located in the United States, gross.
Report all balances due from related institutions domiciled in the fifty states of the United States, the District of
Columbia, Puerto Rico, and U.S. territories and possessions, on a gross basis (included in Schedule BS, item 9,
‘‘Balances due from related institutions, gross’’).
Line Item 4(b) Balances due from related
institutions located outside the United States, gross.

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 3(c).
Line Item 6(c)

Accounts payable.

Report the amount due from the reporting subsidiary for
the purchase of goods and services.

Report all balances due from related institutions domiciled outside of the fifty states of the United States, the
District of Columbia, Puerto Rico, and U.S. territories
and possessions, on a gross basis (included in Schedule BS, item 9, ‘‘Balances due from related institutions,
gross’’).

Line Item 7
gross.

Line Item 5

Report all balances due to related institutions domiciled
in the fifty states of the United States, the District of
Columbia, Puerto Rico, and U.S. territories and possessions, on a gross basis (included in Schedule BS, item 16,
‘‘Balances due to related institutions, gross’’).

Commercial paper issued.

Report the total amount outstanding of commercial paper
issued by the reporting subsidiary included in Schedule
BS, item 12. Exclude commercial paper held by related
institutions.
Line Item 6

Other liabilities.

Line Item 6(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

FR Y-7N
Schedule BS-M

March 2009

Balances due to related institutions,

See definition of related institutions in the General
Instructions for more information.
Line Item 7(a) Balances due to related institutions
located in the United States, gross.

Line Item 7(b) Balances due to related institutions
located outside the United States, gross.
Report all balances due to related institutions domiciled
outside of the fifty states of the United States, the District
of Columbia, Puerto Rico, and U.S. territories and possessions, on a gross basis (included in Schedule BS, item 16).

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 Y-7N
Notes to the Financial Statements

March 2008

Notes-1

Validity (V) Edits for the FR Y-7N
(Effective as of March 31, 2011)
Series

Each edit in the checklist must balance, rounding errors are not allowed
Edit
Target Item
MDRM
Edit Test
Number
Number
0100
FC
FNBK6909 For December, the filing code must equal "1" for an
annual reporter or "2" for a quarterly reporter.

Effective End Edit
Date
Change
99991231
Added

Schedule

Edit Type

FRY7N

Effective
Start Date
20090331

Cover Page

Validity

FRY7N

20110331

99991231

Added

Cover Page

Validity

0110

FC

FNBK6909

FRY7N

20091231

99991231

Added

Cover Page

Validity

0120

NUMRPTS

FNBKJ444

Alg Edit Test
if mm-q1 eq 12 then fnbk6909 eq 1 or fnbk6909 eq 2

FRY7N

20080331

99991231

No Change IS

Validity

0150

IS-1c

FNBK4107

If quarter equals March, June, or September, then the
filing code must equal null.
Number of reports attested to under this signature
must be greater than or equal to 1.
Sum of IS-1a and IS-1b must equal IS-1c.

if (mm-q1 eq 03 or mm-q1 eq 06 or mm-q1 eq 09)
then fnbk6909 eq null
fnbkj444 ge 1

FRY7N

20080331

99991231

No Change IS

Validity

0160

IS-2c

FNBK4073

Sum of IS-2a and IS-2b must equal IS-2c.

(fnbka030 + fnbka031) eq fnbk4073

FRY7N

20080331

99991231

No Change IS

Validity

0170

IS-3

FNBK4074

IS-1c minus IS-2c must equal IS-3.

(fnbk4107 - fnbk4073) eq fnbk4074

FRY7N

20080331

99991231

No Change IS

Validity

0175

IS-4

FNBK4230

IS-B4 must equal IS-4.

fnbt4230 eq fnbk4230

FRY7N

20080331

99991231

No Change IS

Validity

0180

IS-5c

FNBK4079

Sum of IS-5a1 through IS-5b must equal IS-5c.

FRY7N

20080331

99991231

No Change IS

Validity

0190

IS-7c

FNBK4093

Sum of IS-7a and IS-7b must equal IS-7c.

(fnbk4070 + fnbk4080 + fnbka220 + fnbkb490 +
fnbkb491 + fnbkb492 + fnbkb493 + fnbkb494 +
fnbkc887 + fnbkb497 + fnbk4619) eq fnbk4079
(fnbka034 + fnbkc376) eq fnbk4093

FRY7N

20080331

99991231

Revised

IS

Validity

0200

IS-8

FNBK3631

FRY7N

20080331

99991231

No Change IS

Validity

0210

IS-12

FNBK4340

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 IS12.
IS-A2 must equal IS-12.

(fnbk4074 + fnbk4079 + fnbk4091 - fnbk4230 fnbk4093) eq fnbk3631
(fnbk3631 + fnbk4320 + fnbk3147 - fnbk4302) eq
fnbk4340
fnbt4340 eq fnbk4340
(fnbk3217 + fnbt4340 + fnbka035 + fnbkb511 +
fnbk3581 - fnbk4598) eq fnbt3210
(fnbk3124 + fnbk4605 + fnbt4230 + fnbk4815 fnbkc079) eq fnbt3123
fnbt2122 eq fnbk2122
fnbt3123 eq fnbk3123

(fnbka028 + fnbka029) eq fnbk4107

FRY7N

20080331

99991231

No Change IS

Validity

0230

IS-12

FNBK4340

FRY7N

20101231

99991231

Revised

IS-A

Validity

0240

IS-A6

FNBK3581

FRY7N

20101231

99991231

Revised

IS-B

Validity

0260

IS-B5

FNBK4815

FRY7N

20080630

99991231

Revised

BS

Validity

0270

BS-3a

FNBK2122

Sum of IS-A1, IS-A2, IS-A3, IS-A5 and IS-A6 minus ISA4 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.

FRY7N

20080331

99991231

No Change BS

Validity

0280

BS-3b

FNBK3123

IS-B6 must equal BS-3b.

FRY7N

20080331

99991231

No Change BS

Validity

0290

BS-3c

FNBK2125

BS-3a minus BS-3b must equal BS-3c.

(fnbk2122 - fnbk3123) eq fnbk2125

FRY7N

20080331

99991231

No Change BS

Validity

0300

BS-8

FNBKC377

Sum of BS-1 through BS-2b and BS-3c through BS-7
must equal BS-8.

FRY7N

20080331

99991231

No Change BS

Validity

0310

BS-10

FNBK2170

Sum of BS-8 and BS-9 must equal BS-10.

(fnbk0010 + fnbk1754 + fnbk1773 + fnbk2125 +
fnbk3545 + fnbk2145 + fnbk2150 + fnbk1724) eq
fnbkc377
(fnbkc377 + fnbkc378) eq fnbk2170

FRY7N

20080331

99991231

No Change BS

Validity

0320

BS-15

FNBKA012

Sum of BS-11 through BS-14 must equal BS-15.

FRY7N

20080331

99991231

No Change BS

Validity

0330

BS-17

FNBK2948

Sum of BS-15 and BS-16 must equal BS-17.

FRY7N

20080331

99991231

No Change BS

Validity

0340

BS-18g

FNBK3210

Sum of BS-18a through BS-18f must equal BS-18g.

(fnbk3548 + fnbkc379 + fnbk1729 + fnbk2750) eq
fnbka012
(fnbka012 + fnbkc380) eq fnbk2948
(fnbk3230 + fnbk3240 + fnbk3247 + fnbkb530 +
fnbkf033 + fnbka130) eq fnbk3210
fnbt3210 eq fnbk3210

FRY7N

20080331

99991231

No Change BS

Validity

0350

BS-18g

FNBK3210

IS-A7 must equal BS-18g.

FRY7N

20080331

99991231

No Change BS

Validity

0360

BS-19

FNBK3300

Sum of BS-17 and BS-18g must equal BS-19.

(fnbk2948 + fnbk3210) eq fnbk3300

FRY7N

20080331

99991231

No Change BS

Validity

0370

BS-19

FNBK3300

BS-19 must equal BS-10.

fnbk3300 eq fnbk2170

FRY7N

20101231

99991231

Revised

Validity

0390

BS-A5

FNBKA017

Sum of BS-A1 through BS-A5 must equal BS-A6.

(fnbk1410 + fnbk3622 + fnbk3623 + fnbk1975 +
fnbka017) eq fnbt2122

BS-A

MARCH 2011
FR Y-7N: CHK-1 of 1

Validity (V) Edits for the FR Y-7NS
(Effective as of December 31, 2011)
Series

Effective
Start Date
FRY7NS 20080331
FRY7NS 20091231

Effective End Edit Change Schedule
Date
99991231
No Change FS
99991231
Added
Cover Page

DECEMBER 2011

Edit Type
Validity
Validity

Edit
Target Item
Number
0100
FS-5
0120
NUMRPTS

MDRM
Number
FNBKF822
FNBKJ444

Edit Test

Alg Edit Test

FS-5 must equal "1" (yes) or "0" (no).
Number of reports attested to under this signature
must be greater than or equal to 1.

fnbkf822 eq 1 or fnbkf822 eq 0
fnbkj444 ge 1

FR Y-7NS: CHK-1 of 1