SMBs - Annual Company-Run Stress Test Report For SMBs, BHCs, and SLHCs with Total Consolidated Assets Greater Than $10 Billion and Less Than $50 Billion

Board of Governors of the Federal Reserve System

Instructions for Preparation of

Annual Company-Run Stress Test Report
For State Member Banks, Bank Holding Companies, and Savings
and Loan Holding Companies with Total Consolidated Assets
Greater Than $10 Billion and Less Than $50 Billion
Reporting Form FR Y-16
Effective for the Annual Report Submission Beginning on March 31, 2015

INSTRUCTIONS FOR PREPARATION OF

Annual Company-Run Stress Test Report
For State Member Banks, Bank Holding Companies, and
Savings and Loan Holding Companies with Total
Consolidated Assets Greater Than $10 Billion and Less
Than $50 Billion
FR Y-16
SMBs that meet a threshold of greater than $10
billion but less than $50 billion in total consolidated
assets, excluding SMB subsidiaries of covered
companies, as defined by the final stress test rule 12
CFR part 252, subpart H and pursuant to the FRB’s
reservation authority, must file the FR Y-16. 2

GENERAL INSTRUCTIONS
The Annual Dodd Frank Act (DFA) Company-Run
Stress Testing Report (FR Y-16 report) collects
detailed data on State Member Banks’ (SMBs),
Bank Holding Companies’ (BHCs) and Savings and
Loan Holding Companies’ (SLHCs) 1 quantitative
projections of income, losses, assets, liabilities, and
capital across a range of macroeconomic and
financial scenarios as well as the qualitative
supporting information on the methodologies and
processes used to develop those internal projections.
Further information regarding the requirements of
the qualitative supporting information is provided in
Appendix A. The Federal Reserve Board (FRB)
will provide details about the macroeconomic
scenarios to the SMBs, BHCs and SLHCs.

The Board’s final stress test rule defines total
consolidated assets as the average of the
institution’s total consolidated assets over the four
most recent consecutive quarters as reported on the
respondent’s Consolidated Financial Statements for
Holding Companies (FR Y-9C: OMB No. 71000128) or Consolidated Report of Condition and
Income (Call Report FFIEC 031 or FFIEC 041:
OMB No. 7100-0036). Per the final stress test rule,
if the institution has not filed a FR Y-9C or Call
Report for each of the four most recent consecutive
quarters, the average of the institution’s total
consolidated assets in the most recent quarter or
consecutive quarters as reported on the FR Y-9C or
Call Report should be used in the calculation.

Who Must Report
Reporting Criteria

For example, if an institution reported $9.5 billion
in total consolidated assets as reported on Schedule
HC of its FR Y-9C as of March 31 and June 30,
2013, and $11 billion as of September 30 and

BHCs or SLHCs that meet a threshold of greater
than $10 billion but less than $50 billion in total
consolidated assets and any affiliated or unaffiliated
1

SLHCs will be subject to the DFA annual company-run stress testing requirements in the calendar year following
the year in which they become subject to formal regulatory capital rules. All SLHCs except those substantially
engaged in insurance underwriting or commercial activities are subject to capital requirements beginning in 2015.
These “covered SLHCs” are required to report using the FR Y-16 beginning in March 2017 (stress test as-of date
September 30, 2016).
2

“Covered companies” are defined as BHCs with at least $50 billion in total consolidated assets and nonbank
systemically important financial institutions, subject to annual supervisory stress tests and semiannual company-run
stress tests.

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regulatory report will facilitate a uniform electronic
collection process for all companies. All companies
should submit their completed reports electronically
through Reporting Central, the Federal Reserve’s
electronic
reports
submission
application.
Reporting Central is a central point of entry for
Federal Reserve, FFIEC, and Treasury Department
for certain electronic reports submission and file
uploads, and is a system many institutions already
use for other regulatory reports. Per each agency’s
final stress test rules, each primary federal regulator
will have access to their respective institutions’
submissions.

December 31, 2013, the average total assets over the
four-quarter period is calculated as $10.25 billion
and the institution would meet the requirement to
conduct its first stress test for the 2015 stress test
cycle commencing on October 1, 2014.
Once an institution meets the asset threshold, the
company will remain subject to the final stress test
rule requirements unless and until the total
consolidated assets of the company are less than $10
billion for each of four consecutive quarters as
reported on the FR Y-9C or Call Report, as
applicable (measured on the as-of date of the fourth
consecutive FR Y-9C or Call Report).
An
institution that has reduced its total consolidated
assets below $10 billion for four consecutive
quarters will again become subject to the
requirements of this rule if it meets the asset
threshold at a later date.

Companies should contact the appropriate Federal
Reserve
Bank
or
go
to
www.frbservices.org/centralbank/reportingcentral/i
ndex.html for procedures for electronic submission.
Companies must submit the qualitative supporting
information in Adobe Acrobat PDF format. For
requirements regarding the submission of these
items, see Appendix A of these instructions.

Compliance after 12/31/12
An institution that meets the asset threshold after
December 31, 2012, must comply with the
requirements of this subpart beginning with the
stress test cycle that commences in the calendar year
after the year in which the company meets the asset
threshold, unless that time is extended by the Board
in writing.

When to Submit the Report
The FR Y-16 report is required to be submitted as
of September 30.
The submission date for
institutions is close of business March 31 of each
calendar year unless that time is extended by the
Board in writing. The term “submission date” is
defined as the date by which the Federal Reserve
must receive the institution’s FR Y-16.

Exemptions
SMBs, BHCs, and SLHCs that do not meet the
reporting criteria listed above are exempt from
reporting. The following institutions are also
exempt from FR Y-16 reporting:
1) Foreign banking organizations
2) U.S. domiciled BHC subsidiaries of foreign
banking organizations that have average total
consolidated assets of greater than $10 billion
that are currently relying on Supervision and
Regulation Letter 01-01 issued by the FRB
(effective May 19, 2010). These companies are
not required to comply with the final stress test
rule until October 1, 2015.

If the submission deadline falls on a weekend or
holiday, the report must be received on the first
business day after the weekend or holiday. Earlier
submission aids the Federal Reserve in reviewing
and processing reports and is encouraged.

Organization of the Report
General Information
The annual company-run DFA stress tests will
cover a nine-quarter planning horizon beginning on
the first day of a stress test cycle (on October 1) and
use position information as of September 30 of a
reporting year (for a total of ten quarters of
information reported). SMBs, BHCs, and SLHCs

Where to Submit the Report
The agencies’ close collaboration in developing a
streamlined and simplified DFA stress test

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maintained in such a manner and scope to ensure the
FR Y-16 is prepared in accordance with these
instructions and reflects a fair presentation of the
SMBs’, BHCs’, and SLHCs’ financial condition
and assessment of performance under stressed
scenarios.

will report on the FR Y-16 their quantitative
projections of losses, resources available to absorb
those losses, balance sheet positions, and capital
composition on a quarterly basis over the duration
of the scenarios and planning horizon. The FRB
will provide details about the macroeconomic
scenarios to the SMBs, BHCs, and SLHCs.

B. Rules of Consolidation
The FR Y-16 is organized into the following
sections:

Respondents should reference the FR Y-9C or Call
Report for general instructions on the rules of
consolidation. Unless otherwise noted, items map
directly to the respondent’s FR Y-9C or Call Report
for the actual quarterly data provided for September
30 of the reporting year while all remaining
quarterly data over the nine-quarter horizon are
based on the institution’s quarterly projections.

A. Scenario Variables Schedule
B. Results Schedule
a. Summary Schedule
b. Baseline Scenario
i.
Income Statement
ii.
Balance Sheet Statement

c. Adverse Scenario

C. Projections

i.
Income Statement
ii.
Balance Sheet Statement
d. Severely Adverse Scenario
i.
Income Statement
ii.
Balance Sheet Statement

The report includes one quarter of actual data
followed by nine quarters of projected data. The
“planning horizon” refers to the nine quarters of
projected data, starting with the fourth quarter of the
reporting year. Column headings refer to each
corresponding quarter.

C. Appendix A - Qualitative Supporting
Information

D. Order of Precedence

In addition to the projections collected on the FR Y16, SMBs, BHCs and SLHCs are also required to
submit summary qualitative information supporting
their projections. The report of the results of the
stress test must include, under the baseline, adverse,
and severely adverse scenarios: a description of the
types of risks included in the stress test, a summary
description of the methodologies used in the stress
test, an explanation of the most significant causes
for the changes in regulatory capital ratios, and the
use of the stress test results. Please see Appendix A
for more details.

If there is a conflict in guidance, SMBs, BHCs and
SLHCs should first use the information contained in
these instructions and then the instructions available
in the latest FR Y-9C or Call Report.
E. Technical Details
The following instructions apply generally to the FR
Y-16, unless otherwise specified.
a. Report income and loss data on a quarterly
basis and not on a cumulative or year-to-date
basis.
b. Ensure that any internal consistency checks
are complete prior to submission.
c. A numerical value or zero should generally
be entered for all items, except in those cases
where other options such as “not available”
or “other” are specified. If information is not
available or not applicable and no such
options are offered, the field should be left
blank. Or if there are no data for certain
fields then populate them with a zero, “0”.

How to Prepare the Reports
A. Applicability of U.S. GAAP
SMBs, BHCs, and SLHCs are required to prepare
and file the FR Y-16 schedules in accordance with
U.S. generally accepted accounting principles
(GAAP) and these instructions. The financial
records of the SMBs, BHCs, and SLHCs should be

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will consider the materiality of such event(s) or
transaction(s) in making a determination about
requiring the institution to apply the Federal
Reserve’s interpretation and to amend previously
submitted reports. Materiality is a qualitative
characteristic of accounting information which is
defined in FASB Concepts No. 2 as ‘‘the magnitude
of an omission or misstatement of accounting
information that, in the light of surrounding
circumstances, make it probable that the judgment
of a reasonable person relying on the information
would have been changed or influenced by the
omission or misstatement.’’

d. MDRM codes and formulas are provided in
the ‘FFIEC 031 or 041 Call Report Item’
column and the ‘FR Y-9C Report Item’
column for most line items. Definitions in the
Call Report and FR Y-9C for those items
should be used.
F. Rounding
All dollar amounts must be reported in thousands,
with the figures rounded to the nearest thousand.
Rounding could result in details not adding to their
stated totals.
However, to ensure consistent
reporting, the rounded detail items should be
adjusted so that the totals and the sums of their
components are identical.

The Federal Reserve may require the filing of an
amended FR Y-16 if previously submitted reports
contain significant errors. In addition, an institution
should file an amended report when internal or
external auditors make audit adjustments that result
in a restatement of financial statements previously
submitted to the Federal Reserve.

G. Negative Entries
Negative entries are generally not appropriate on the
FR Y-16 balance sheet and should not be reported.
Hence, assets with credit balances must be reported
in liability items and liabilities with debit balances
must be reported in asset items, as appropriate, and
in accordance with these instructions. When
negative entries do occur in one or more of these
items, they should be recorded with a minus (-) sign
rather than in parentheses.

For further information regarding FR Y-16
amended reports, please see the Amended Reports
section in the general instructions of the FR Y-9C.
If resubmissions are required, institutions should
contact the appropriate Federal Reserve Bank.
J. Data Items Automatically Retrieved from
Other Reports

H. Confidentiality
As these data will be collected as part of the
supervisory process, they are subject to confidential
treatment under exemption 8 of the Freedom of
Information Act (5 U.S.C. 552(b)(8)). In addition,
the information contained in this report may be
exempt from disclosure under Exemption 4.5
U.S.C. 552(b)(4). Disclosure determinations would
be made on a case-by-case basis.
I. Amended Reports

The actual 9/30 data that is required to be submitted
in each schedule requested on the FR Y-16 may also
be collected in other reports submitted to the Federal
Reserve. If the institution files the other reports at
the same level of consolidation as is required for the
FR Y-16, the duplicate data items do not need to be
reported and may be left blank on the FR Y-16 form.
For SMBs, BHCs, and SLHCs, the data will be
collected from the FR Y-9C or Call Report.

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 institution to reflect the event(s) or
transaction(s) in its FR Y-16 in accordance with the
Federal Reserve’s interpretation and to amend
previously submitted reports. The Federal Reserve

However, the actual 9/30 data for certain line items
do not map to existing MDRM codes in the FR Y9C or Call Report. Institutions will need to report
the actual 9/30 data for the following line items for
each scenario:
• Income statement memoranda line items 26-31,
32-37, and 38-43 for all reporters
• Balance sheet line items 32 and 33 for BHCs
and SLHCs

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K. Questions
Questions and requests for interpretations of matters
appearing in any part of these instructions should be
addressed to the appropriate Federal Reserve Bank
(that is, the Federal Reserve Bank in the district
where the institution submits this report).

5

SCENARIO VARIABLES
SCHEDULE

•

To conduct the stress test required, a SMB, BHC,
or SLHC may choose to project additional
economic and financial variables beyond the
mandatory supervisory scenarios provided to
estimate losses or revenues for some or all of its
portfolios. The FRB expects a SMB, BHC, or
SLHC to ensure that the paths of any additional
variables (including their timing) are consistent
with the general economic environment assumed in
the supervisory scenarios. If additional variables
are used, the SMB, BHC, or SLHC must complete
the following information for each scenario where
the institution chose to use additional variables.
The following instructions provide guidance for
institutions that choose to use additional scenario
variables to report.

The following definitions and basis (i.e.
period-average or period-end) of the
financial market variables were included in
the 2013 mandatory supervisory scenarios
and are provided as an example for
institutions to describe any additional
scenario variables used in its stress test 3:
o U.S. 10-year Treasury yield: Quarterly
average of the yield on 10-year U.S.
Treasury bonds.
o U.S. mortgage rate: Quarterly average of
weekly series of Freddie Mac data.
o U.S. Dow Jones Total Stock Market
Index: End of quarter value, Dow Jones.
o U.S. Market Volatility Index (VIX):
Chicago Board Options Exchange
converted to quarterly by using the
maximum value in any quarter.

A. Scenario Variable Definitions
This schedule should be used to list and define the
variables used by a SMB, BHC, or SLHC that
chooses to go beyond those variables defined in
the mandatory supervisory scenarios provided by
the FRB.
•

The schedule provides space for the baseline
scenario, adverse scenario, and severely
adverse scenario. These sections must be
completed if an institution chooses to use
additional variables.

•

If additional variables are used beyond
the variables included in the FRB provided
scenarios, list those variable names in the
column titled "Variable Name."

•

Variable definitions should be provided in the
column titled "Variable Definition." Variable
definitions should include a description of the
variable (e.g., "real GDP") and the
denomination and/or frequency of the variable
(e.g., "billions of 2005 dollars" or "in percent,
average of monthly values").

3

The forecasts and historical data for all of
the additional scenario variables should be
constructed on the same basis. Thus, if a
variable is, over history, constructed as an
average, its forecast should be interpreted as
an average as well.

•

For convenience, the schedule provides space
for ten additional variables per scenario, but any
number of variables may be reported, depending
on the variables actually used in the scenario.
Extra lines may be created as needed. The same
variables do not necessarily have to be included
in each scenario.

•

SMBs, BHCs, and SLHCs should include all
economic and financial market variables that
were important in projecting results and are in
addition to those provided by the FRB, including
those that affect only a subset of portfolios or
positions. For example, if asset prices in a
specific sector had a meaningful impact, then the
assumed level of prices and projections should
be included; or, if bankruptcy filings affect credit
card loss estimates, then the assumed levels of
these loss estimates should be reported if used in
the projections.

See the following for more information on the 2013 supervisory scenarios:
http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20121115a1.pdf

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•

SMBs, BHCs, and SLHCs should also include
any variables capturing regional or local
economic or asset value conditions, such as
regional unemployment rates or regional
housing prices, if these were used in the
projections.

•

SMBs, BHCs, and SLHCs should include
historical data, as well as projections, for any
macroeconomic, regional, local, or financial
market variables that are not generally
available. Historical data for these variables
can be included in a separate document.

B. All Scenarios
•

Variable names and definitions should be
consistent throughout the worksheets in the
schedule.

•

List quarterly values for the variables starting
with the last realized value (actual 9/30)
through the end of the planning horizon
(projected quarter one through projected
quarter nine).

•

The Scenario Variables Schedule should be
submitted through the Reporting Central
application.

C. DFA Stress Test Baseline Scenario
Respondents should report the values of any
additional variables generated for the DFA stress
test baseline scenario.

D. DFA Stress Test Adverse Scenario
Respondents should report the values of any
additional variables generated for the DFA stress
test adverse scenario.

E. DFA Stress Test Severely Adverse
Scenario
Respondents should report the values of any
additional variables generated for the DFA stress
test severely adverse scenario.

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A, and RI-B on the Call Report. Net charge-offs
on this schedule is defined as gross charge-offs
less recoveries for the various line items. As
stated in the FR Y-9C instructions, institutions
should also include write-downs to fair values on
loans (and leases) transferred to the held-for-sale
account during the calendar year-to-date that
occurred when (1) the institution decided to sell
loans that were not originated or otherwise
acquired with the intent to sell and (2) the fair
value of those loans had declined for any reason
other than a change in the general market level of
interest or foreign exchange rates.

RESULTS SCHEDULES
The Results Schedules are composed of seven
supporting schedules: a Summary Schedule,
which summarizes key results from the Baseline,
Adverse, and Severely Adverse Scenarios; and
supporting schedules with Income Statement,
Balance Sheet, and Capital Statement details.
Each supporting schedule has three versions: one
each for the Baseline Scenario, the Adverse
Scenario, and the Severely Adverse Scenario.
Detailed instructions for the Income Statement
and Balance Sheet schedules follow in the sections
below.

For those institutions or consolidated subsidiaries
required to establish and maintain an allocated
transfer risk reserve, as specified in Section 905(a)
of the International Lending Supervision Act of
1983, in the agency regulations implementing the
Act (Subpart D of Federal Reserve Regulation K),
and in any guidelines or instructions issued by the
Federal Reserve, columns A and B of part I of
schedule HI-B include loans and leases charged
off against and amounts recovered, respectively,
through the allocated transfer risk reserve. These
instructions should be read in conjunction with the
instructions for schedule HI-B and the glossary
entries for “allowance for loan and lease losses”
and “domicile” in the FR Y-9C report instructions.

Summary Schedule
This schedule summarizes key results reported on
the Income Statement and Balance Sheet
schedules for the Baseline, Adverse, and Severely
Adverse Scenarios. No action is required by
institutions to complete this schedule as this
summary data schedule will be populated
automatically from the Income Statement and
Balance Sheet schedules.

Income Statement
Schedule

Line item 1 First lien mortgages (net chargeoffs):
Report all closed-end loans secured by first liens
on 1–4 family residential properties, as defined in
the FR Y-9C, Schedule HI-B, item 1(c)(2)(a) and
the Call Report, Schedule RI-B, item 1.c.(2)(a).

For the Income Statement schedule, MDRM
codes corresponding to the related FR Y-9C and
Call Report line items are provided for many of
the line items. Respondents should report income
and loss data on a quarterly basis and not on a
cumulative or year-to-date basis.
When
applicable, the definitions of the SMB’s, BHC’s,
and SLHC’s projections should map to the
definitions outlined by the corresponding MDRM
code within the FR Y-9C and Call Report. The
SMB, BHC, or SLHC should include i n c o me
o r losses tied to the relevant balances reported
on the Balance Sheet schedule.
General Instructions

Line item 2 Closed-end junior liens (net chargeoffs):
Report all closed-end loans secured by junior liens
on 1–4 family residential properties, as defined in
the FR Y-9C, Schedule HI-B, item 1(c)(2)(b) and
the Call Report, Schedule RI-B, item 1.c.(2)(b).
Include loans secured by junior liens in this item
even if the institution also holds a loan secured by
a first lien on the same 1–4 family residential
property and there are no intervening junior liens.

This schedule collects various income statement
items similar to items found on Schedules HI, HIA, and HI-B on the FR Y-9C or Schedules RI, RI-

Line item 3 Home equity lines of credit
(HELOCS) (net charge-offs):
Report all revolving, open-end loans in domestic

8

offices secured by 1–4 family residential
properties and extended under lines of credit, as
defined in the FR Y-9C, Schedule HI-B, item
1(c)(1) and in the Call Report, Schedule RI-B,
item 1.c.(1).

Line item 10 Credit cards (net charge-offs):
Report all extensions of credit under credit card
loans, as defined in the FR Y-9C, Schedule HI-B
lines 5(a) and the Call Report, Schedule RI-B,
item 5.a.

Line item 4 Commercial and industrial (C&I)
loans (net charge-offs):
Report all commercial and industrial loans, as
defined in the FR Y-9C, Schedule HI-B, item 4(a)
and the Call Report FFIEC 041, Schedule RI-B,
item 4 and FFIEC 031, Schedule RI-B, item 4.a,
commercial and industrial loans to U.S.
addressees, and all commercial and industrial
loans to non-U.S. addressees, as defined in the FR
Y-9C, Schedule HI-B, item 4(b) and the Call
Report FFIEC 031, Schedule RI-B, item 4.b.

Line item 11 Automobile loans (net chargeoffs):
Report all automobile loans, as defined in the FR
Y-9C, Schedule HI-B line 5(b) and the Call
Report, Schedule RI-B, item 5.b.
Line item 12 Other consumer loans (net chargeoffs):
Report all other consumer loans, as defined in the
FR Y-9C, Schedule HI-B line 5(c) and the Call
Report, Schedule RI-B, item 5.c.

Line item 5 1-4 family construction loans (net
charge-offs):
Report all 1-4 family residential construction
loans, as defined in the FR Y-9C, Schedule HI-B,
item 1(a)(1) and the Call Report, Schedule RI-B,
item 1.a.(1).

Line item 13 All other loans and leases (net
charge-offs):
Report all other loans and leases that have not
been reported in the loan charge-off categories
above (line items 1-12).
Line item 14 Total loan and lease (net chargeoffs):
Report the sum of line items 1 through 13.

Line item 6 Other construction loans (net
charge-offs):
Report all other construction loans and all land
development and other land loans, as defined in
the FR Y-9C, Schedule HI-B, item 1(a)(2) and the
Call Report, Schedule RI-B, item 1.a.(2).

Line item 15 Net interest income:
Report net interest income, as defined in the FR
Y-9C report, Schedule HI, line 3 and the Call
Report, Schedule RI, item 3.

Line item 7 Multifamily loans (net charge-offs):
Report all loans secured by multifamily (5 or
more) residential properties in domestic offices, as
defined in the FR Y-9C, Schedule HI-B, item 1(d)
and the Call Report, Schedule RI-B, item 1.d.

Line item 16 Non-interest income:
Report non-interest income, as defined in the FR
Y-9C report, Schedule HI, line 5(m) and the Call
Report, Schedule RI, item 5.m.

Line item 8 Non-farm, non-residential owner
occupied loans (net charge-offs):
Report all loans secured by owner-occupied nonfarm non-residential properties, as defined in the
FR Y-9C, Schedule HI-B, item 1(e)(1) and the
Call Report, Schedule RI-B, item 1.e.(1).

Line item 17 Non-interest expense:
Report non-interest expense, as defined in the FR
Y-9C report, Schedule HI, line 7(e) and the Call
Report, Schedule RI, item 7.e.
Line item 18 Pre-provision net revenue:
Report the sum of lines 15 and 16 above, less line
17.

Line item 9 Non-farm, non-residential other
loans (net charge-offs):
Report all loans secured by other non-farm nonresidential properties, as defined in the FR Y-9C,
Schedule HI-B, item 1(e)(2) and the Call Report,
Schedule RI-B, item 1.e.(2).

Line item 19 Provision for loan and lease losses:
Report the provision for loan and leases, as
defined in the FR Y-9C report, Schedule HI, item

9

Memo item 17(a) and the Call Report, Schedule
RI, Memo item 14.a.

4 and the Call Report, Schedule RI, item 4.
Line item 20 Realized gains (losses) on HTM
securities:
Report the realized gain (losses) on held-tomaturity securities, as defined in the FR Y-9C
report, Schedule HI, item 6(a) and the Call Report,
Schedule RI, item 6.a.

Line items 26 through 43
These line items should be used to list the projected
segment amounts of non-interest income, noninterest expense, and all other gains (losses) that
exceed 15% of each line item, respectively.

Line item 21 Realized gains (losses) on AFS
securities:
Report the realized gain (losses) on available-forsale securities, as defined in the FR Y-9C report,
Schedule HI, item 6(b) and the Call Report,
Schedule RI, item 6.b.
Line item 22 All other gains (losses):
Report all other gains (losses) from extraordinary
items, other adjustments, less the net income
(loss) attributable to noncontrolling (minority)
interests [if net income of noncontrolling interest
is positive subtract out and if there is a net loss,
add back], and any other items that are not either
(i) reported above line 22 or (ii) in taxes reported
in item 23. The amounts reported in line 22
comprise the remaining portion of net income
reported in line 24. The corresponding FR Y-9C
line items are defined in Schedule HI, items 11
and 13 and the corresponding Call Report line
items are defined in Schedule RI, items 11 and 13.
Line item 23 Taxes:
Report the applicable income taxes, as defined in
the FR Y-9C report, Schedule HI, item 9 and the
Call Report, Schedule RI, item 9.
Line item 24 Net income:
Report the total of lines 18, 19, 20, 21, 22, and 23
using the following logic (item 18 – item 19 + item
20 + item 21 + item 22 – item 23). If this amount
is a net loss, report with a minus (-) sign. Report
the applicable net income, as defined in the FR Y9C report, Schedule HI, item 14 and the Call
Report, Schedule RI, item 14.

•

The measurement to determine if segments of
non-interest income, non-interest expense, and
all other gains (losses) are greater than 15
percent should be performed for the initial
period (actual as of 9/30) and amounts should
be reported for projected quarters one through
nine if a category is greater than 15 percent as
of the actual 9/30 period (even if the value of
the category item decreases to less than 15
percent in the projected periods).

•

These line items must be completed for each
scenario if a segment of non-interest income,
non-interest expense, and all other gains
(losses) are greater than 15 percent as of the
actual 9/30 period.

•

Segment names and definitions should be
consistent throughout the Income Statement
schedule.

•

List the quarterly values for the segments
starting with the last realized value (actual
9/30) through the end of the planning horizon
(projected quarter one through projected
quarter nine).

•

Enter all amounts as levels rather than as
changes or growth rates (for example, the
dollar value of income from fiduciary
activities).

Line items 26-31 Itemize and describe amounts
greater than 15 percent of non-interest income
(Line item 16):
List and describe specific segments of non-interest
income that exceed 15 percent of “total noninterest income” line item 16 as of the actual 9/30
period.

Memoranda items:
Line item 25 Other than temporary impairment
(OTTI) losses:
Report other than temporary impairment losses, as
defined in the FR Y-9C report, Schedule HI,

10

Line items 32-37 Itemize and describe amounts
greater than 15 percent of non-interest expense
(Line item 17):
List and describe specific segments of non-interest
expense that exceed 15 percent of “total noninterest expense” line item 17 as of the actual 9/30
period.

Line item 1 First lien mortgages:
Report closed-end loans secured by first liens on
1-4 family residential properties held in domestic
offices, as defined in the FR Y-9C, Schedule HCC, item 1(c)(2)(a) and the Call Report, Schedule
RC-C, item 1.c.(2)(a), less relevant loans covered
by loss-sharing agreement with the FDIC (FR Y9C Schedule HC-M, item 6(a)(1)(c)(2)(a) and Call
Report Schedule RC-M, item 13.a.(1)(c)(2)(a)).

Line items 38-43 Itemize and describe amounts
greater than 15 percent of all other gains
(losses) (Line item 22):
List and describe specific segments of all other
gains (losses) that exceed 15 percent of “all other
gains/losses” line item 22 as of the actual 9/30
period.

Line item 2 Closed-end junior liens:
Report closed-end loans secured by junior (i.e.,
other than first) liens on 1-4 family residential
properties held in domestic offices, as defined in
the FR Y-9C, Schedule HC-C, item 1(c)(2)(b) and
the Call Report, Schedule RC-C, item 1.c.(2)(b),
less relevant loans covered by loss-sharing
agreement with the FDIC (FR Y-9C Schedule
HC-M, item 6(a)(1)(c)(2)(b) and Call Report
Schedule RC-M, item 13.a.(1)(c)(2)(b)).

Balance Sheet
Schedule
For the Balance Sheet schedule, MDRM codes
corresponding to the related FR Y-9C and Call
Report line items are provided for many of the line
items. When applicable, the definitions of the
SMB’s, BHC’s, and SLHC’s projections should
map to the definitions outlined by the
corresponding MDRM code within the FR Y-9C
and Call Report. The SMB, BHC, or SLHC
should report balances that are tied to the relevant
income or losses reported on the Income
Statement schedule.

Line item 3 Home equity lines of credit
(HELOCS):
Report the amount outstanding under revolving,
open-end lines of credit secured by 1-4 family
residential properties held in domestic offices, as
defined in the FR Y-9C, Schedule HC-C, item
1(c)(1) and the Call Report, Schedule RC-C, item
1.c.(1), less relevant loans covered by loss-sharing
agreement with the FDIC (FR Y-9C Schedule
HC-M, item 6(a)(1)(c)(1) and Call Report
Schedule RC-M, item 13.a.(1)(c)(1)).

Line items 1 through 15 Loans

Line item 4 Commercial and industrial (C&I)
loans:
Report all commercial and industrial (C&I) loans,
as defined in the FRY-9C, Schedule HC-C, items
4(a) and 4(b) and the Call Report, Schedule RCC, item 4 (FFIEC 041) and items 4.a and 4.b
(FFIEC 031), less relevant loans covered by losssharing agreement with the FDIC (FR Y-9C
Schedule HC-M, item 6(a)(3) and Call Report
Schedule RC-M, item 13.a.(3)).

For each scenario used, input the loan balance
projections in the various line items in this
schedule, net of any unearned income. Domestic
refers to portfolios in the domestic U.S. offices (as
defined in the FR Y-9C and Call Report), and
International refers to portfolios outside of the
domestic U.S. offices.
Unlike the loan balances reported in the Call
Report Schedule RC-C and FR Y-9C Schedule
HC-C, for this schedule separately report the loans
covered by loss sharing agreements with the FDIC
(line 14). 4

Line item 5 1-4 family construction loans:
Report loans secured by 1-4 family residential
construction loans held in domestic offices, as
defined in the FR Y-9C, Schedule HC-C, item

4

For more information, refer to Schedule RC-M Item No. 13 in the Call Report instructions (Assets covered by losssharing agreements with the FDIC).

11

1(a)(1) and the Call Report, Schedule RC-C, item
1.a.(1), less relevant loans covered by loss-sharing
agreement with the FDIC (FR Y-9C Schedule
HC-M, item 6(a)(1)(a)(1) and Call Report
Schedule RC-M, item 13.a.(1)(a)(1)).

Line item 10 Credit cards:
Report all extensions of credit to individuals for
household, family, and other personal
expenditures arising from credit cards, held in
domestic offices, as defined in the FR Y-9C,
Schedule HC-C, item 6(a) and the Call Report,
Schedule RC-C, item 6.a,, less relevant loans
covered by loss-sharing agreement with the FDIC
(FR Y-9C Schedule HC-M, item 6(a)(4)(a) and
Call Report Schedule RC-M, item 13.a.(4)(a)).

Line item 6 Other construction loans:
Report construction loans for purposes other than
constructing 1-4 family residential properties,
land development loans, and all other land loans
held in domestic offices, as defined in the FR Y9C, Schedule HC-C, items 1(a)(2) and the Call
Report, Schedule RC-C, items 1.a.(2), less
relevant loans covered by loss-sharing agreement
with the FDIC (FR Y-9C Schedule HC-M, item
6(a)(1)(a)(2) and Call Report Schedule RC-M,
item 13.a.(1)(a)(2)).

Line item 11 Automobile loans:
Report all auto loans held in domestic offices, as
defined in the FR Y-9C, Schedule HC-C, item 6(c)
and the Call Report, Schedule RC-C, item 6.c, less
relevant loans covered by loss-sharing agreement
with the FDIC (FR Y-9C Schedule HC-M, item
6(a)(4)(b) and Call Report Schedule RC-M, item
13.a.(4)(b)).

Line item 7 Multifamily loans:
Report loans secured by multifamily (5 or more)
residential properties held in domestic offices, as
defined in the FR Y-9C, Schedule HC-C, item
1(d) and the Call Report, Schedule RC-C, item
1.d, less relevant loans covered by loss-sharing
agreement with the FDIC (FR Y-9C Schedule
HC-M, item 6(a)(1)(d) and Call Report Schedule
RC-M, item 13.a.(1)(d)).

Line item 12 Other consumer loans:
Report all other consumer loans held in domestic
offices not reported in line items 10 or 11, as
defined in the FR Y-9C, Schedule HC-C, items
6(b) and 6(d) and the Call Report, Schedule RCC, items 6.b and 6.d, less relevant loans covered
by loss-sharing agreement with the FDIC (FR Y9C Schedule HC-M, item 6(a)(4)(c) and Call
Report Schedule RC-M, item 13.a.(4)(c)).

Line item 8 Non-farm, non-residential owneroccupied loans:
Report loans secured by owner-occupied nonfarm non-residential properties held in domestic
offices, as defined in the FR Y-9C, Schedule HCC, item 1(e)(1) and the Call Report, Schedule RCC, item 1.e.(1), less relevant loans covered by
loss-sharing agreement with the FDIC (FR Y-9C
Schedule HC-M, item 6(a)(1)(e)(1) and Call
Report Schedule RC-M, item 13.a.(1)(e)(1)).

Line item 13 All other loans and leases:
Report all other loans and leases that have not
already been reported in the loan categories in line
items 1 through 12, excluding loans covered by
FDIC loss-sharing agreements (reported in line
14).
Line item 14 Loans covered by FDIC losssharing agreements:
Report all loans covered by loss-sharing
agreements with the FDIC, as defined in the FR
Y-9C, Schedule HC-M items 6(a)(1) through
6(a)(5) and the Call Report, Schedule RC-M items
13.a.(1)(a)(1) through 13.a.(5).

Line item 9 Non-farm, non-residential other
loans:
Report non-farm non-residential real estate loans
that are not secured by owner-occupied non-farm
non-residential properties, held in domestic
offices, as defined in the FR Y-9C, Schedule HCC, item 1(e)(2) and the Call Report, Schedule RCC, item 1.e.(2), less relevant loans covered by
loss-sharing agreement with the FDIC (Fr Y-9C
Schedule HC-M, item 6(a)(1)(e)(2) and Call
Report Schedule RC-M, item 13.a.(1)(e)(2)).

Line item 15 Total loans and leases:
Report the sum of items 1 through 14 above. It is
also defined in the FR Y-9C, Schedule HC-C, item
12 and the Call Report, Schedule RC-C, Part I, item
12.

12

Report the sum of items 17 through 20 above. It is
also defined in the FR Y-9C, Schedule HC, item 2a
and the Call Report, Schedule RC, item 2a.

Line item 16 Allowance for loan and lease
losses:
Report the allowance for loan and lease losses, as
defined in the FR Y-9C, Schedule HC item 4(c) and
the Call Report, Schedule RC, item 4.c.

Line items 22 through 26 Securities: Availablefor-sale (AFS):
For line items 22 through 26, report the fair value
of available-for-sale securities, which corresponds
to securities reported in the FR Y-9C, Schedule
HC-B column D and the Call Report, Schedule RCB, column D.

Line items 17 through 21 Securities: Held-tomaturity (HTM):
For line items 17 through 21, report the amortized
cost of securities held-to-maturity, which
corresponds to securities reported in the FR Y-9C,
Schedule HC-B column A and the Call Report,
Schedule RC-B, column A.

Line item 22 U.S. government obligations and
obligations of GSE:
Report securities issued by the U.S. Government
and by U.S. government agencies, as defined in the
FR Y-9C, Schedule HC-B items 1, 2, 4.a.(1),
4.a.(2), 4.b.(1), 4.b.(2), 4.c.(1)(a), and 4.c.(2)(a) and
the Call Report, Schedule RC-B, items 1, 2.a, 2.b,
4.a.(1), 4.a.(2), 4.b.(1), 4.b.(2), 4.c.(1)(a), and
4.c.(2)(a).

Line item 17 U.S. government obligations and
obligations of GSE:
Report securities issued by the U.S. Government
and by U.S. government agencies, as defined in the
FR Y-9C, Schedule HC-B items 1, 2, 4.a.(1),
4.a.(2), 4.b.(1), 4.b.(2), 4.c.(1)(a), and 4.c.(2)(a) and
the Call Report, Schedule RC-B, items 1, 2.a, 2.b,
4.a.(1), 4.a.(2), 4.b.(1), 4.b.(2), 4.c.(1)(a), and
4.c.(2)(a).

Line item 23 Securities issued by states and
political subdivisions of the U.S.:
Report securities issued by the states and political
subdivisions of the U.S., as defined in the FR Y-9C,
Schedule HC-B item 3 and the Call Report,
Schedule RC-B, item 3.

Line item 18 Securities issued by states and
political subdivisions of the U.S.:
Report securities issued by the states and political
subdivisions of the U.S., as defined in the FR Y-9C,
Schedule HC-B item 3 and the Call Report,
Schedule RC-B, item 3.

Line item 24 Non-agency MBS and ABS
securities:
Report all mortgage-backed and asset-backed
securities not guaranteed by the U.S. government or
issued by a state or political subdivision of the U.S.,
as defined in the FR Y-9C, Schedule HC-B items
4.a.(3), 4.b.(3), 4.c.(1)(b), 4.c.(2)(b), and 5.a and the
Call Report, Schedule RC-B items 4.a.(3), 4.b.(3),
4.c.(1)(b), 4.c.(2)(b), and 5.a.

Line item 19 Non-agency MBS and ABS
securities:
Report all mortgage-backed and asset-backed
securities not guaranteed by the U.S. government or
issued by a state or political subdivision of the U.S.,
as defined in the FR Y-9C, Schedule HC-B items
4.a.(3), 4.b.(3), 4.c.(1)(b), 4.c.(2)(b), and 5.a and the
Call Report, Schedule RC-B items 4.a.(3), 4.b.(3),
4.c.(1)(b), 4.c.(2)(b), and 5.a.

Line item 25 All other AFS securities:
Report all other securities that have not already
been reported in the securities categories in line
items 22 through 24, as defined in the FR Y-9C,
Schedule HC-B items 5.b, 6, and 7 and the Call
Report, Schedule RC-B items 5.b, 6, and 7.

Line item 20 All other HTM securities:
Report all other securities that have not already
been reported in the securities categories in line
items 17 through 19, as defined in the FR Y-9C,
Schedule HC-B items 5.b and 6 and the Call Report,
Schedule RC-B items 5.b.(1), 5.b.(2), 5.b.(3), 6.a,
and 6.b.

Line item 26 Total AFS securities:
Report the sum of items 22 through 25 above. It is
also defined in the FR Y-9C, Schedule HC, item 2b
and the Call Report, Schedule RC, item 2b.

Line item 21 Total HTM securities:

13

Line item 27 Trading assets:
Report trading assets, as defined in the FR Y-9C,
Schedule HC, item 5 and the Call Report, Schedule
RC, item 5.

obligations under capitalized leases), fully insured
brokered deposits, total time deposits of more than
$250,000, and deposits in foreign offices in line
item 33.

Line item 28 Total intangible assets:
Report all goodwill and intangible assets, as defined
in the FR Y-9C, Schedule HC item 10 and the Call
Report, Schedule RC, item 10.a and 10.b.

Line item 34 Trading liabilities:
Report all trading liabilities, as defined in the FR Y9C, Schedule HC, item 15 and the Call Report,
Schedule RC, item 15.

Line item 29 Other real estate owned:
Report the net book value of all other real estate
owned (OREO), as defined in the FR Y-9C,
Schedule HC-M item 13 and the Call Report,
Schedule RC, item 7.

Line item 35 All other liabilities:
Report all other liabilities, as item 36 minus items
32, 33, and 34. Institutions should take into account
projected losses of unfunded loan commitments as
they develop projections for this line item. An
allowance for off-balance sheet credit exposures
should be recognized in this line item (and not part
of the ALLL).

Line item 30 All other assets:
Report all other assets that have not been reported
in line items 1 through 29 that comprise total
consolidated assets.

Line item 36 Total liabilities:
Report total liabilities, as defined in the FR Y-9C,
Schedule HC, item 21 and the Call Report,
Schedule RC, item 21.

Line item 31 Total assets:
Report the sum of line items 15, 21, and 26 through
30 above, less line item 16 above. It is also defined
in the FR Y-9C, Schedule HC, item 12 and the Call
Report, Schedule RC, item 12.

Line item 37 Perpetual preferred stock and
related surplus:
Report perpetual preferred stock and related
surplus, as defined in the FR Y-9C, Schedule HC,
item 23 and the Call Report, Schedule RC, item 23.

Line item 32 Retail funding:
Report all retail funding deposits that are captured
in the Call Report Schedule RC, item 13.a less
Schedule RC-E, Part I, items M.1.c.(1), M.1.c.(2)
and M.2.d..

Line item 38 Equity capital:
Report common stock (par value), as defined in the
FR Y-9C, Schedule HC, item 24 and the Call
Report, Schedule RC, item 24; surplus, as defined
in the FR Y-9C, Schedule HC, item 25 and the Call
Report, Schedule RC, item 25; retained earnings, as
defined in the FR Y-9C, Schedule HC, item 26.a
and the Call Report, Schedule RC, item 26.a; and
other equity capital components, as defined in the
FR Y-9C, Schedule HC, item 26.b, 26.c, and 27.b
and the Call Report, Schedule RC, item 26.b, 26.c,
and 27.b.

BHCs and SLHCs should report on a consolidated
basis deposits in domestic offices less time deposits
of more than $250,000 and fully insured brokered
deposits in line item 32.
Line item 33 Wholesale funding:
Report all wholesale funding deposits that are
captured in the Call Report, Schedule RC, items
13.b, 14.a, 14.b, Schedule RC-H, item 5, Schedule
RC-E, items M.1.c.(1), M.1.c.(2) and M.2.d for
FFIEC 031 filers; Schedule RC, 14.a, 14.b, 16,
Schedule RC-E, items M.1.c.(1), M.1.c.(2) and
M.2.d for FFIEC 041 filers.

Line item 39 Total equity capital:
Report the sum of line items 37 and 38. It is also
defined in the FR Y-9C, Schedule HC, item 28 and
the Call Report, Schedule RC, item 28.

BHCs and SLHCs should report on a consolidated
basis federal funds purchased and securities sold
under agreements to repurchase, other borrowed
money (includes mortgage indebtedness and

Balance Sheet Schedule: Capital Section
This section collects projections of components of

14

equity capital and regulatory capital, components
of assets and liabilities, and deferred tax asset
items. When applicable, the definitions of the
SMB’s, BHC’s, and SLHC’s projections should
map to the definitions outlined by the
corresponding MDRM code within the FR Y9-C
and Call Report.

leverage capital requirements for banking
organizations subject to the Basel III regulatory
capital reforms and certain changes required by the
Dodd-Frank Wall Street Reform and Consumer
Protection Act (revised capital framework) 5 –
subject to transition provisions defined in the rule
– into their DFA company-run stress test
projections for the stress testing cycle that begins
October 1, 2014. As BHCs and SMBs will begin
to comply with the revised capital rules during the
2015 stress testing cycle, these companies are
expected to reflect the transition to these revised
capital rules in the appropriate quarter of their DFA
stress test planning horizon.
For example,
regulatory capital items should reflect the revised
capital framework beginning in projected quarter
two (1st quarter 2015) through projected quarter
nine (4th quarter 2016) for each supervisory
scenario for the stress test results to be submitted
in March 2015.

The projections should clearly show any proposed
capital actions or other scenario-dependent actions
that would affect the SMB’s, BHC’s, and SLHC’s
regulatory capital, including any assumptions
required under the FRB’s final stress test rule. A
BHC or SLHC is required to make the following
assumptions regarding its capital actions over the
planning horizon under the DFA stress test:
(1) For the first quarter of the planning horizon, the
BHC or SLHC must take into account its actual
capital actions as of the end of that quarter; and

The FR Y-9C Regulatory Capital Schedule HC-R
and the Call Report Regulatory Capital Schedule
RC-R have been revised to reflect the revised
capital framework. References to Part I.B of these
schedules reflect the revised capital framework and
these references should be used for regulatory
capital-related items starting in projected quarter
two (1st quarter 2015) through projected quarter
nine (4th quarter 2016) for each supervisory
scenario for the stress test results to be submitted
in March 2015 and for every projected quarter for
each subsequent annual stress test report
submission.

(2) For each of the second through ninth quarters
of the planning horizon, a BHC or SLHC must
include in the projections of capital - (i) common
stock dividends equal to the quarterly average
dollar amount of common stock dividends that the
company paid in the previous year (that is, the first
quarter of the planning horizon and the preceding
three calendar quarters); (ii) payments on any other
instrument that is eligible for inclusion in the
numerator of a regulatory capital ratio equal to the
stated dividend, interest, or principal due on such
instrument during the quarter; and (iii) an
assumption of no redemption or repurchase of any
capital instrument that is eligible for inclusion in
the numerator of a regulatory capital ratio.

Line item 40 Unrealized gains (losses) on AFS
securities:
Report unrealized gains (losses) on AFS securities,
as defined in the FR Y-9C, Schedule HC-R, Part
I.A, item 2 and Part I.B, item 9.A and the Call
Report, Schedule RC-R, Part I.A, item 2 and Part
I.B, item 9.A. Per the FR Y-9C and Call Report
instructions, this line item represents the amount of
net unrealized gains (losses) on available-for-sale

A BHC, SMB, or SLHC should measure its
regulatory capital levels and regulatory capital
ratios for each quarter in accordance with the rules
that would be in effect during that quarter.
Companies are expected to transition in the
appropriate quarter to the revised risk-based and
5

See Regulatory Capital Rules: Regulatory Capital, Implementation of Basel III, Capital Adequacy, Transition
Provisions, Prompt Corrective Action, Standardized Approach for Risk-weighted Assets, Market Discipline and
Disclosure Requirements, Advanced Approaches Risk-Based Capital Rule, and Market Risk Capital Rule (July 2,
2013), available at: http://www.federalreserve.gov/newsevents/press/bcreg/20130702a.htm

15

securities, net of applicable taxes, that is included
in Schedule HC, item 26.b. and Schedule RC, item
26.b, “Accumulated other comprehensive
income”.

Report tier 2 capital, as defined in the FR Y-9C,
Schedule HC-R, Part I.A, item 17 and Part I.B, item
34.a and the Call Report, Schedule RC-R, Part I.A,
item 17 and Part I.B, item 34.a.

Line item 41 Deferred tax asset:
Report deferred tax asset, as defined in the FR Y9C, Schedule HC-R, Part I.A, item 9.b and Part I.B,
item 8 and the Call Report, Schedule RC-R, Part
I.A, item 9.b and Part I.B, item 8. The description
of this item in Part I.A of Schedules HC-R and RCR is “Disallowed deferred tax assets” and the
description of this line item in Part I.B of the
Schedules HC-R and RC-R is “Deferred tax assets
(DTAs) that arise from net operating loss and tax
credit carryforwards, net of any related valuation
allowances and net of DTLs”.

Line item 47 Total capital:
Report total capital, as defined in the FR Y-9C,
Schedule HC-R, Part I.A, item 21 and Part I.B, item
35.a and the Call Report, Schedule RC-R, Part I.A,
item 21 and Part I.B, item 35.a. The description of
this item in Part I.A of Schedules HC-R and RC-R
is “Total Risk-Based Capital” and the description of
this line item in Part I.B of the Schedules HC-R and
RC-R is “Total Capital”.
Line item 48 Total holding company or bank
equity capital:
Report total holding company equity capital, as
defined in the FR Y-9C, Schedule HC, item 27.a
and total bank equity capital as defined in the Call
Report, Schedule RC, item 27.a.

Line item 42 Common equity tier 1 capital
Report common equity tier 1 capital, as defined by
the revised capital framework and in the FR Y-9C,
Schedule HC-R, Part I.B, item 19 and the Call
Report, Schedule RC-R, Part I.B, item 19. For the
report submitted in March 2015, only report this
line item for projected quarter two through
projected quarter nine.

Line item 49 Risk-weighted assets:
Report risk-weighted assets, as defined in the FR Y9C, Schedule HC-R, Part II, item 62 and Part I.B,
item 40.a and the Call Report, Schedule RC-R, Part
II, item 62 and Part I.B, item 40.a.

Line item 43 Tier 1 capital:
Report tier-1 capital, as defined in the FR Y-9C,
Schedule HC-R, Part I.A, item 11 and Part I.B, item
26 and the Call Report, Schedule RC-R, Part I.A,
item 11 and Part I.B, item 26.

Part II, Risk-Weighted Assets, of Schedule HC-R
and Schedule RC-R is to be replaced with a revised
version of Part II that would incorporate the
provisions of the banking agencies’ revised
regulatory capital rules. This revised version of
Part II is to be completed by all institutions
beginning with the March 31, 2015 report
submission and institutions should calculate and
report risk-weighted assets based on the revised
version of Part II for the FR Y-16 beginning in
projected quarter two (1st quarter 2015) through
projected quarter nine (4th quarter 2016) for each
supervisory scenario for the stress test results to be
submitted in March 2015 and for every projected
quarter for each subsequent annual stress test report
submission.

Line item 44 Qualifying subordinated debt and
redeemable preferred stock:
Report qualifying subordinated debt and
redeemable preferred stock, as defined in the FR Y9C, Schedule HC-R, Part I.A, item 12 and the Call
Report, Schedule RC-R, Part I.A, item 12. For the
report submitted in March 2015, only report this
line item for projected quarter one.
Line item 45 Allowance includible in tier 2
capital:
Report allowance includible in tier 2 capital, as
defined in the FR Y-9C, Schedule HC-R, Part I.A,
item 14 and Part I.B, item 30.a and the Call Report,
Schedule RC-R, Part I.A, item 14 and Part I.B, item
30.a.

Line item 50 Total assets for leverage purposes:
Report total assets for leverage purposes, as defined
in the FR Y-9C, Schedule HC-R, Part I.A, item 27
and Part I.B, item 39 and the Call Report, Schedule
RC-R, Part I.A, item 27 and Part I.B, item 39.

Line item 46 Tier 2 capital:

16

and SLHCs, this line item should equal the actual
dividends paid for the first quarter of the planning
horizon and the stated dividend payment for the
second through ninth quarters of the planning
horizon. This line item should be reported on a
quarterly basis.

Line item 51 Common equity tier 1 risk-based
capital ratio
The common equity tier 1 risk-based capital ratio,
as defined by the revised capital framework and in
the FR Y-9C, Schedule HC-R, Part I.B, item 41 and
the Call Report, Schedule RC-R, Part I.B, item 41,
will be calculated as item 42 divided by item 49.
For the report submitted in March 2015, this line
item will be calculated for projected quarter two
through projected quarter nine.

Line item 57 Cash dividends declared on
common stock:
Report cash dividends declared on common stock,
as defined in the FR Y-9C, Schedule HI-A 11 and
the Call Report, Schedule RI-A, item 9. For BHCs
and SLHCs, this line item should equal the actual
dividends paid for the first quarter of the planning
horizon and the quarterly average dollar amount of
common stock dividends paid in the previous year
(the first quarter of the planning horizon and the
preceding three calendar quarters) for the second
through ninth quarters of the planning horizon.
This line item should be reported on a quarterly
basis.

Line item 52 Tier 1 risk-based capital ratio:
The tier 1 risk-based capital ratio will be calculated
as item 43 divided by item 49.
Line item 53 Tier 1 leverage ratio:
The tier 1 leverage ratio will be calculated as item
43 divided by item 50.
Line item 54 Total risk-based capital ratio:
The total risk-based capital ratio will be calculated
as item 47 divided by item 49.
Line item 55 Sale, conversion, acquisition, or
retirement of capital stock:
Report sale, conversion, acquisition, or retirement
of capital stock, as the sum of and defined in the FR
Y-9C, Schedule HI-A 5.a, 5.b, 6.a, and 6.b and the
Call Report, Schedule RI-A, items 5 and 6. BHCs
and SLHCs are required to use a set of capital action
assumptions based on historical distributions,
contracted payments, and a general assumption of
no redemptions, repurchases, or issuances of capital
instruments. A BHC or SLHC should also assume
it will not issue any new common stock, preferred
stock, or other instrument that would count in
regulatory capital in the second through ninth
quarters of the planning horizon, except for any
common issuances related to expensed employee
compensation. 6 This line item should be reported
on a quarterly basis.
Line item 56 Cash dividends declared on
preferred stock:
Report cash dividends declared on preferred stock,
as defined in the FR Y-9C, Schedule HI-A 10 and
the Call Report, Schedule RI-A, item 8. For BHCs
6

See Supervisory Guidance on Implementing Dodd-Frank Act Company-Run Stress Tests for Banking
Organizations with Total Consolidated Assets of more than $10 Billion but less than $50 Billion, available at:
http://www.gpo.gov/fdsys/pkg/FR-2014-03-13/pdf/2014-05518.pdf

17

APPENDIX A
QUALITATIVE
SUPPORTING
INFORMATION

Executive summary, general risk overview,
including a description of the risks used in the stress
test; summary reports describing the stress testing
process, senior management and board roles;
internal governance and model risk management
practices; and any other items related to the overall
process. Each institution should describe how
senior management provided the board of directors
with sufficient information to facilitate the board’s
full understanding of the stress testing used by the
bank and allow for the appropriate level of
challenge of assumptions and outcomes.

Each SMB, BHC, and SLHC is required under the
final stress test rule to submit a summary of the
qualitative information supporting its projections.
Supporting information should include sufficient
information to inform a third party of an
institution’s general approach and assumptions, but
remain summary in nature. Companies should
provide appropriate references to internal
documents that provide more detail on all the items
to be discussed in the submission.

In addition, the following subsections (1.A through
1.D) should be included as part of the summary and
governance section:

All companies must submit the qualitative
supporting information in Adobe Acrobat PDF
format. The qualitative supporting information
summary file should be titled as
“ReportID_RSSD_SUMMARY_MMDDYY”.
•

The “ReportID” in the file name should be as
follows for the following respondents:
o “FRY16” for BHCs, SLHCs, and SMBs
o “OCCDFAST1050” for national banks
and savings banks
o “FDICDFAST1050” for nonmember
banks and state savings banks

•

The “RSSD” in the file name is the institution
specific identifier for a respondent.

•

The “MMDDYY” should be the as-of date of
the stress test cycle (for example, 093013 for
the 2013 stress test cycle).

A. Description of the Types of Risks Included
in the Stress Test
For each part of the Results schedule and the
Scenario Variables schedule, each institution should
submit supporting qualitative information that
clearly describes the types of risks and exposures
captured in the stress test scenarios for all lines of
business and activities. This includes information
about risks that may threaten or adversely affect the
institution’s capital position through increased
losses, reduced revenues, and changes in the balance
sheet or risk-weighted assets. The information
should discuss the extent to which risks are wholly
or only partially covered by the stress tests (for
example, if not all aspects of interest rate risk are
captured by the tests with the given scenarios
provided).
B. Summary Description of the Methodologies
used in the Stress Test

The purpose of the summary document is to provide
an overview of the stress testing process as required
in the Agencies' final stress test rules and as is
repeated in Appendix A. Significant detailed
information should not be included in the summary
document. Detailed documents will be requested
and reviewed as part of the supervisory process.
Sections that should be addressed in the summary
document are listed below, as well as a description
of items that should be included.

For each part of the Results schedule and the
Scenario Variables schedule, the SMB, BHC, or
SLHC should submit supporting information that
clearly describes the methodology used to produce
the projections. Each SMB, BHC, or SLHC should
include a summary description of how it translated
the macroeconomic and financial variables from the
supervisory scenarios into its projections and
technical details of any underlying statistical
methods used. Information should be provided for

1. Summary and Governance

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all elements of the stress tests, including loss
estimation, revenue estimation, projections of the
balance sheet and risk-weighted assets, and capital
levels and ratios. Where judgment is an essential
part of the projection, each institution should
describe the rationale and magnitude, as well as the
process involved to ensure consistency of
projections with scenario conditions. Furthermore,
the institutions should include thorough discussion
of any material deviations from these instructions
and how they decided upon the materiality of such
deviations.
Discussion of methodologies should be consistent
with expectations in existing supervisory guidance
on stress testing issued by the agencies. In
particular, the institution should provide a summary
of the design, theory, and logic underlying the
methodologies used.
If third-party models are used, an institution should
provide summary information about those models,
including model design, key assumptions, known
limitations, and implementation and execution.
Each SMB, BHC, or SLHC should provide credible
support for all key assumptions used to derive loss
and revenue estimates, including assumptions
related to the components of loss, severity of loss,
drivers of revenue, and any known weaknesses in
the translation of assumptions into loss and revenue
estimates. Each institution should demonstrate that
these assumptions are clearly conditioned on the
stated macroeconomic and financial scenarios and
are consistent with stated business strategies
including but not limited to mergers, acquisitions, or
divestitures of business lines or entities and changes
in strategic direction. If the institution’s models rely
upon historical relationships, describe the historical
data used and clearly describe why these
relationships are expected to be maintained in each
scenario. The impact of assumptions concerning
new growth or changes to credit policy on forecasted
loss estimates relative to historical performance
should be clearly explained.
Institutions should provide summary information on
the specific assumptions used to calculate regulatory
capital, including a discussion of any proposed
capital distributions. When appropriate, clearly

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state assumptions related to the corporate tax rate
and the projection of the deferred tax assets. In
situations where the SMB, BHC, or SLHC choose
not to project components of the balance sheet, those
components should be held constant at the last
current level and the SMB, BHC, or SLHC should
explain why the held constant assumption is
appropriate in the given scenario.
Each SMB, BHC, and SLHC should submit any
other summary information and documentation
necessary to support or explain its capital
calculations. For example, an institution could
show the calculations related to the projections of
the deferred tax asset for regulatory capital
purposes.
While judgment is an essential part of risk
measurement and risk management, including loss
forecasting, institutions should not be over-reliant
on judgment to prepare their loss estimations
without providing documentation or evidence of
transparency and discipline around the process.
Each SMB, BHC, and SLHC should provide support
for any judgment applied or qualitative adjustments
made and explain how they are appropriate and in
line with scenario conditions.
C. Explanation of the Most Significant Causes
for the Changes in Regulatory Capital Ratios
For each part of the Results schedule and the
Scenario Variables schedule, each SMB, BHC, and
SLHC should provide a clear explanation of the
changes in regulatory capital ratios from the stress
test scenarios over the planning horizon. For
instance, an institution may indicate that a major
component of the reduction in regulatory capital
ratios resulted from deterioration in the quality of its
retail credit exposures over the planning horizon.
The explanation should take into account the risks
identified and describe the changes in capital by
material income statement and balance sheet
statement line items affected by the stress test
scenario.
D. Use of Stress Test Results
Companies should provide summary information as
to how they use these stress test results in the normal

course of business, including in the capital planning,
assessment of capital adequacy, and risk
management practices of the company. This
summary should describe the manner in which the
stress test is used for key decisions about capital
adequacy, including capital actions and capital
contingency plans. The company should indicate
the extent to which this stress test is used in
conjunction with other capital assessment tools,
especially if the stress test may not necessarily
capture a company’s full range of risks, exposures,
activities, and vulnerabilities that have the potential
to affect capital adequacy. In addition, a company
should include summary information as to how poststress capital results remain aligned with its internal
capital goals. The company should mention any
cases in which post-stress capital results are not
aligned with a company’s internal capital goals, and
describe options that senior management and the
board would consider to bring them into alignment.

schedule line items 40 to 54.
4. Loans
Summary of the methodology, model, and
validation activities related to each loan portfolio
reported in total loans and leases, including the
associated ALLL. This information should support
Balance Sheet schedule line items 1 to 16 and
Income Statement schedule line items 1 to 14.
5. Securities
Summary of methodology, model, and validation
activities related to the projections of HTM and
AFS security balances, unrealized losses, and
OTTI. This information should support Balance
Sheet schedule line items 17 to 26 and Income
Statement schedule line items 20 to 22 and 25.
6. Pre-provision Net Revenue

2. Scenarios
Summary of methodology, model, and validation
activities related to the estimates of net interest
income, margins, fees, funding costs and related
items. This information should support Income
Statement schedule line items 15 to 18.

Summary of the methodology, models, and
validation activities related to the process used to
translate macro variables, including the use of
additional scenario variables, if applicable. If
additional scenario variables are used beyond the
supervisory scenario variables provided by the
Agencies, each respondent should complete the
scenario variables schedule as previously indicated
in the reporting instructions.

7. Balance Sheet

In addition, each institution should include summary
information supporting any additional scenario
variables used to conduct the DFA stress tests. The
information should detail the rationale behind
including additional scenario variables and the
process for projecting additional variables,
including the linkage with the macroeconomic and
financial scenarios provided by the FRB.
3. Capital
Summary of the methodology, models, and
validation activities related to regulatory capital,
explanations of proposed capital actions, options to
maintain internally established capital goals on a
post-stress basis, and an explanation of causes for
changes in regulatory capital ratios.
This
information should support the Balance Sheet

Summary methodology, model, and validation
activities related to the balance sheet estimation,
such as loan balances. This information should
support Balance Sheet schedule line items 1 to 39.
The summary qualitative supporting information
should not include embedded files and should be
submitted in Adobe Acrobat PDF format. The file
size limit is 50 MB. If the file needs to be split up
into smaller files, the combined file size limit is 200
MB. When submitting multiple files in order to
meet the file size limit, the file name should indicate
the content of files submitted using the seven
qualitative supporting information summary
categories discussed above (for example,
Example 1:
“ReportID_RSSD_SUMMARY_SUMMARY_
AND_GOVERNANCE_TO_CAPITAL_MMD
DYY” and
“ReportID_RSSD_SUMMARY_LOANS_TO_

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BALANCE SHEET_MMDDYY”;
Example 2:
ReportID_RSSD_SUMMARY_SUMMARY_
AND_GOVERNANCE_TO_CAPITAL_MMD
DYY” and
“ReportID_RSSD_SUMMARY_LOANS_MM
DDYY” and
ReportID_RSSD_SUMMARY_SECURITIES_
MMDDYY” and
“ReportID_RSSD_SUMMARY_PREPROVISION_NET_REVENUE_AND_BALAN
CE SHEET_MMDDYY”, etc.).

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