Initial stress test

DRAFT for December 31, 2017
(DRAFT as of September 29, 2017)
Federal Financial Institutions Examination Council

Instructions for Preparation of

Annual Dodd-Frank Act Company-Run Stress Test Report
for Depository Institutions and Holding Companies with
$10-$50 Billion in Total Consolidated Assets
Reporting Form FFIEC 016
Report as of the close of business December 31 of each calendar year with a submission deadline for the report
of the following July 31.

INSTRUCTIONS FOR PREPARATION OF

Annual Dodd-Frank Act Company-Run Stress Test
Report for Depository Institutions and Holding
Companies with $10-$50 Billion in Total Consolidated
Assets
FFIEC 016
Institutions with total consolidated assets greater
than $10 billion but less than $50 billion that are
subject to the agencies’ stress test rules (12 CFR
part 46 (OCC); 12 CFR part 252, subpart B
(Board); 12 CFR 325, subpart C (FDIC)) must file
the FFIEC 016.

GENERAL INSTRUCTIONS
The Annual Dodd-Frank Act Company-Run Stress
Test Report for Depository Institutions and
Holding Companies with $10-$50 Billion in Total
Consolidated Assets (FFIEC 016) collects detailed
data from State Member Banks, National Banks,
Federal Savings Associations, State Nonmember
Banks, State Savings Associations (collectively,
“depository
institutions”),
Bank
Holding
Companies’ (BHCs), and Savings and Loan
Holding Companies’ (SLHCs) 1 (collectively,
“reporting entities”) on 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 agencies will provide details about the
macroeconomic scenarios to the reporting entities.

The agencies’ Dodd-Frank Act (DFA) stress test
rules define total consolidated assets as the average
of the reporting entity’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 Number 7100-0128) or Consolidated
Reports of Condition and Income (FFIEC 031 or
FFIEC 041 Call Report: 2 OMB Numbers: Board,
7100-0036; OCC, 1557–0081; and FDIC, 3064–
0052). Per the stress test rules, if the reporting
entity has not filed a FR Y-9C or Call Report for
each of the four most recent consecutive quarters,
the average of the reporting entity’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

Compliance with the Company-Run Stress Test
Requirements

Reporting Criteria

A BHC or SLHC that is subject to minimum
regulatory capital requirements or a depository
institution that exceeds the asset threshold for the
first time on or before March 31 of a given year,
must comply with the company-run stress test

1

SLHCs substantially engaged in commercial or
insurance underwriting activities are exempt from the
requirements until such time that the Federal Reserve
Board (Board) establishes a final capital rule. If the
Board issued the rule or order on or before March of the
previous year, the stress test requirements would then
be effective on January 1 of a given year, unless the
time was accelerated or extended by the Board in
writing.

2

References hereafter to the Call Report in these
instructions mean the FFIEC 031 and FFIEC 041 Call
Reports, not the FFIEC 051 Call Report.

1

threshold at a later date.

requirements beginning on January 1 of the
following year, unless that time is extended by the
applicable primary federal regulatory agency in
writing. Similarly, a BHC or SLHC that is subject
to minimum regulatory capital requirements or a
depository institution that exceeds the asset
threshold for the first time after March 31 of a
given year must comply with the company-run
stress test requirements beginning on January 1 of
the second year following that given year, unless
that time is extended by the applicable primary
federal regulatory agency in writing.

Shifts in Reporting
If a reporting entity filing the FFIEC 016 reaches
total consolidated assets of $50 billion or more, as
defined by the stress test rules, the reporting entity
will need to refer to the reporting forms for BHCs,
SLHCs, and depository institutions with assets of
$50 billion or more issued by the applicable
primary federal regulatory agency.
Exemptions

For example, if an institution reported $9.5 billion
in total consolidated assets on its FR Y-9C or Call
Report as of June 30 and September 30, 2016 and
$11 billion as of December 31, 2016 and March
31, 2017, the average total assets over the fourquarter period is calculated as $10.25 billion and
the institution would meet the requirement to
conduct its first stress test for the 2018 stress test
cycle commencing on January 1, 2018 (using a
financial as of date of December 31, 2017, for
completing its FFIEC 016) and reporting in July
2018.

Reporting entities that do not meet the reporting
criteria listed above are exempt from reporting.
Foreign banking organizations are also exempt
from FFIEC 016 reporting.

Where to Submit the Report
All reporting entities should submit their
completed reports electronically using the Federal
Reserve System’s Reporting Central application.
Reporting Central is a central point of entry for
electronic reports submission and file uploads for
certain Federal Reserve, FFIEC, and Treasury
Department reports, and is a system many
reporting entities already use for other regulatory
reports. Per each agency’s stress test rules, each
primary federal regulator will have access to its
respective institutions’ submissions.

For example, if an institution reported $9.5 billion
in total consolidated assets on its FR Y-9C or Call
Report as of September 30 and December 31,
2016, and $11 billion as of March 31 and June 30,
2017, 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 2019 stress test cycle
commencing on January 1, 2019 (using a financial
as of date of December 31, 2018, for completing
its FFIEC 016) and reporting in July 2019.

For general Reporting Central procedures and
information, reporting entities should contact the
appropriate agency and Federal Reserve Bank or
access
the
following
link:
www.frbservices.org/centralbank/reportingcentral/i
ndex.html.

Once a reporting entity meets the asset threshold,
the reporting entity will remain subject to the stress
test rule requirements unless and until the total
consolidated assets (not average assets) of the
reporting entity 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). A BHC, SLHC, or depository
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

For instructions on how to create and submit the
FFIEC 016 report, reporting entities should contact
the appropriate Federal Reserve Bank or access the
following link:
https://www.frbservices.org/files/reporting/pdf/fry
16_fdic_dfast_transfer_guide.pdf.
Reporting entities must submit the qualitative
supporting information for the FFIEC 016 report in
Adobe Acrobat PDF format. For requirements

2

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

regarding the submission of these items, see
Appendix A of these instructions.

When to Submit the Report
The FFIEC 016 report is required to be submitted
using financial information as of December 31.
The report submission due date is the close of
business July 31 of the following year unless that
time is extended by the primary federal regulator
in writing. Close of business is defined as 5:00
P.M., local time of the reporting entity. The term
“submission date” is defined as the date by which
the primary federal regulator must receive the
reporting entity’s FFIEC 016.

C. Appendix A - Qualitative Supporting
Information
In addition to the projections collected on the
FFIEC 016, reporting entities 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 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

How to Prepare the Reports

General Information

A. Applicability of U.S. GAAP

The annual company-run DFA stress tests will
cover a nine-quarter planning horizon beginning on
the first day of a stress test cycle (January 1) and
use financial information as of December 31 of a
reporting year (for a total of ten quarters of
information reported). Reporting entities will
report on the FFIEC 016 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 federal
regulatory agencies will provide details about the
macroeconomic scenarios to the reporting entities.

Reporting entities are required to prepare and file
the FFIEC 016 schedules in accordance with U.S.
generally accepted accounting principles (GAAP)
and these instructions. For the purposes of
FFIEC 016, a reporting entity should not reflect
the adoption of a new accounting standard in its
projections unless the reporting entity has already
adopted the accounting standard for financial
reporting purposes. The financial records of the
reporting entity should be maintained in such a
manner and scope to ensure the FFIEC 016 is
prepared in accordance with these instructions
and reflects a fair presentation of the reporting
entity’s financial condition and assessment of
performance under stressed scenarios.

The FFIEC 016 is organized into the following
sections:
A. Scenario Variables Schedule

A reporting entity must project the allowance for
loan and lease losses (ALLL) using methodologies
consistent with the Current Expected Credit
Losses model (CECL) in all FFIEC 016
submissions subsequent to the reporting entity’s
CECL effective date. Thus, a reporting entity with

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

3

a CECL effective date of the fiscal year beginning
after December 15, 2019 (effective date for
Securities and Exchange Commission filers) must
use methodologies to project the ALLL in all
quarters consistent with CECL beginning with the
2020 FFIEC 016 submission. A reporting entity
that voluntarily adopts CECL prior to its required
CECL effective date is encouraged, but not
required, to use methodologies to project the
ALLL consistent with CECL in the same
FFIEC 016 submission year as the early adoption.

D. Order of Precedence
If there is a conflict in guidance, reporting entities
should first use the information contained in these
instructions and then the latest instructions
available for the FR Y-9C or Call Report.
E. Technical Details
The following instructions apply generally to the
FFIEC 016, 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. If there are no data for certain fields,
then populate them with a zero, “0.”
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.

Unless the preceding criterion is met, a reporting
entity should not use methodologies to project the
ALLL consistent with CECL for any future
projected period in its FFIEC 016 submission,
including future projection periods that are
subsequent to the effective date for the reporting
entity. For example, a reporting entity with a
CECL effective date of the fiscal year beginning
after December 15, 2019, should not use
methodologies to project quarterly ALLL balances
consistent with CECL in its FFIEC 016
submission in 2018, even though the ending ninth
quarter of the FFIEC 016 submission in 2018
corresponds to March 31, 2020.
B. Rules of Consolidation
Reporting entities 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 reporting entity’s FR Y-9C or Call
Report for the actual quarterly data provided for
December 31 of the reporting year while all
remaining quarterly data over the nine-quarter
horizon are based on the reporting entity’s
quarterly projections.

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.

C. Projections

G. Negative Entries

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 first quarter
following the actual data, which would be the first
quarter of the following year, or March 31st.
Column headings refer to each corresponding
quarter.

Negative entries are generally not appropriate on
the FFIEC 016 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

4

submitted to the agencies.

recorded with a minus (-) sign rather than in
parentheses.

For further information regarding FFIEC 016
amended reports, please see the Amended Reports
section in the general instructions of the FR Y-9C
or Call Report.

H. Confidentiality
As the FFIEC 016 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 in
accordance with each agency’s disclosure
regulations.

If resubmissions are required, a reporting entity
should contact the appropriate primary federal
regulator.
J. Data Items Automatically Retrieved from
Other Reports
The actual 12/31 data that are required to be
submitted in each schedule on the FFIEC 016 may
also be collected in other reports submitted to the
agencies. If a reporting entity files the other
reports at the same level of consolidation as is
required for the FFIEC 016, the duplicate data
items do not need to be reported and may be left
blank on the FFIEC 016 report. A reporting
entity’s data will be collected from the FR Y-9C or
Call Report.

I. Amended Reports
When the applicable primary federal regulatory
agency’s interpretation of how U.S. GAAP or these
instructions should be applied to a specified event
or transaction (or series of related events or
transactions) differs from the reporting entity’s
interpretation, the agency may require the reporting
entity to reflect the event(s) or transaction(s) in its
FFIEC 016 in accordance with the agency’s
interpretation and to amend previously submitted
reports. The agency will consider the materiality
of such event(s) or transaction(s) in making a
determination about requiring the reporting entity
to apply the agency’s interpretation and to amend
previously submitted reports. Materiality is a
qualitative characteristic of accounting information
that is addressed in FASB Concepts Statement
No. 8, “Conceptual Framework for Financial
Reporting,” as follows: ‘‘Information is material if
omitting it or misstating it could influence
decisions that users make on the basis of the
financial information of a specific reporting entity.
In other words, materiality is an entity-specific
aspect of relevance based on the nature or
magnitude or both of the items to which the
information relates in the context of an individual
entity’s financial report.’’

However, the actual 12/31 data for certain line
items do not map to existing MDRM codes in the
FR Y-9C or Call Report. Reporting entities will
need to report the actual 12/31 data for the
following FFIEC 016 line items for each scenario:
• Income statement memoranda line items 2631, 32-37, and 38-43 for all reporting entities
• Balance sheet line items 32, 33, and 35 for
BHCs and SLHCs
K. Legal Entity Identifier (LEI)
The Legal Entity Identifier (LEI) is a 20-digit
alpha-numeric code that uniquely identifies entities
that engage in financial transactions. A reporting
entity must provide its LEI on the cover page of
the FFIEC 016 report only if the reporting entity
already has obtained an LEI. The LEI must be a
currently issued, maintained, and valid LEI, not an
LEI that has lapsed. A reporting entity that does
not have an LEI is not required to obtain one for
purposes of reporting it on the FFIEC 016 report.

The agencies may require the filing of an amended
FFIEC 016 if previously submitted reports contain
significant errors. In addition, a reporting entity
should file an amended report when internal or
external auditors make audit adjustments that result
in a restatement of financial statements previously

5

L. Questions
Questions and requests for interpretations of
matters appearing in any part of these instructions
should be addressed to the appropriate primary
federal regulatory agency.

6

SCENARIO VARIABLES
SCHEDULE

•

To conduct the stress test required, a reporting
entity 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
agencies expect respondents 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
reporting entity must complete the following
information for each scenario where the reporting
entity chose to use additional variables. The
following instructions provide guidance for
reporting entities that choose to use additional
scenario variables to report. The Scenario
Variables Schedule should be reported in a data
format (not pdf) and submitted through the
Reporting Central application.

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 Variables Definitions
This schedule should be used to list and define
the variables used by a reporting entity that
chooses to go beyond those variables defined in
the mandatory supervisory scenarios provided by
the agencies.
•

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

•

If additional variables are used beyond the
variables included in the regulatory 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”).

7

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.

•

Reporting entities should include all economic
and financial market variables that were
important in projecting results and are in
addition to those provided by the regulators,
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

3

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

estimates, then the assumed levels of these loss
estimates should be reported if used in the
projections.
•

•

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

Reporting entities 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.

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

Reporting entities 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.

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

B. All Scenarios
•

The Scenario Variables Schedule should be
submitted only when additional variables are
used beyond those provided by the
regulators.

•

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 12/31)
through the end of the planning horizon
(projected quarter one through projected
quarter nine). Reporting Central does not
allow variable values with decimal places on
the Scenario Variables Schedule. For variables
that are not reported in thousands (such as
ratios or rates) the respondent should provide
the unit of measure in the Variable Definition
field to indicate the metrics of a given
variable. For example, if Interest Rate is the
Variable Name, the corresponding Variable
Definition should identify the metrics in
which the data are reported (basis points, 100
as 1.0%; and 554 as 5.54%, etc.).

•

The Scenario Variables Schedule should be
submitted in data format (not pdf) through the
Reporting Central application.

8

RI-A, and RI-B on the Call Report. Net chargeoffs on this schedule is defined as gross chargeoffs less recoveries for the various line items. As
stated in the FR Y-9C and Call Report
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 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 reporting entities 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
Regulation K (Board); 12 CFR 28, Subpart C
(OCC); 12 CFR 347 (FDIC)), and in any
guidelines or instructions issued by the agencies,
columns A and B of part I of Schedules HI-B and
RI-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 Schedules HI-B and RI-B and the
glossary entries for “allowance for loan and lease
losses” and “domicile” in the FR Y-9C and Call
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 reporting entities to complete this
schedule as this summary data schedule will be
populated automatically from the Income
Statement and Balance Sheet schedules.

Income Statement
Schedule
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. Reporting entities 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 reporting
entity’s projections should map to the definitions
outlined by the corresponding MDRM code
within the FR Y-9C and Call Report. The
reporting entity should include i n c o me o r
losses tied to the relevant balances reported on
the Balance Sheet Schedule.

Line item 1 First lien mortgages (net chargeoffs):
Report all closed-end loans secured by first liens
on 1–4 family residential properties in domestic
offices, 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).
Line item 2 Closed-end junior liens (net chargeoffs):
Report all closed-end loans secured by junior
liens on 1–4 family residential properties in
domestic offices, 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

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

9

lien on the same 1–4 family residential property
and there are no intervening junior liens.

Line item 9 Non-farm, non-residential other
loans (net charge-offs):
Report all loans secured by other non-farm nonresidential properties in domestic offices, 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 3 Home equity lines of credit
(HELOCS) (net charge-offs):
Report all revolving, open-end loans in domestic
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,
item 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, items
4(a) and 4(b) and the Call Report, Schedule RIB, item 4 (FFIEC 041) and items 4.a and 4.b
(FFIEC 031).

Line item 11 Automobile loans (net chargeoffs):
Report all automobile loans, as defined in the
FR Y-9C, Schedule HI-B, item 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, item 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 in domestic offices, 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 that have not been reported
in the loan charge-off categories above (line
items 1-12) and all leases.

Line item 6 Other construction loans (net
charge-offs):
Report all other construction loans and all land
development and other land loans in domestic
offices, 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 14 Total loan and lease (net chargeoffs):
Report the sum of line items 1 through 13.

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 15 Net interest income:
Report net interest income, as defined in the
FR Y-9C report, Schedule HI, item 3 and the Call
Report, Schedule RI, item 3.
Line item 16 Non-interest income:
Report non-interest income, as defined in the
FR Y-9C report, Schedule HI, item 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 in domestic
offices, 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, item 7(e) and the
Call Report, Schedule RI, item 7.e.

10

Line item 18 Pre-provision net revenue:
Report the sum of line items 15 and 16 above,
less line item 17.

14 and the Call Report, Schedule RI, item 14.

Line item 19 Provision for loan and lease losses:
Report the provision for loan and lease losses, as
defined in the FR Y-9C report, Schedule HI, item
4 and the Call Report, Schedule RI, item 4.

Line item 25 Other-than-temporary
impairment losses on held-to-maturity and
available-for-sale debt securities recognized in
earnings:
Report other-than-temporary impairment losses
recognized in earnings, as defined in the
FR Y-9C report, Schedule HI, Memo item 17 and
the Call Report, Schedule RI, Memo item 14.

Memoranda items:

Line item 20 Realized gains (losses) on held-tomaturity (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,
non-interest expense, and all other gains (losses)
that exceed 15 percent of each line item,
respectively.

Line item 21 Realized gains (losses) on
available-for-sale (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 discontinued
operations, 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 item 22 or (ii) in taxes reported in line
item 23. The amounts reported in line item 22
comprise the remaining portion of net income
reported in line item 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 line items 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 Y-9C report, Schedule HI, item

11

•

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 12/31) and amounts
should be reported for projected quarters one
through nine if a category is greater than
15 percent as of the actual 12/31 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 12/31 period.

•

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

•

List the quarterly values for
starting with the last realized
12/31) through the end of
horizon (projected quarter
projected quarter nine).

•

Enter all amounts as levels rather than as
changes or growth rates (for example, the

the segments
value (actual
the planning
one through

dollar value
activities).

domestic U.S. offices.

of income from fiduciary

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 noninterest income that exceed 15 percent of “total
non-interest income” line item 16 as of the actual
12/31 period.

Line item 1 First lien mortgages:
Report closed-end loans secured by first liens on
1-4 family residential properties in domestic
offices, as defined in the FR Y-9C, Schedule
HC-C, item 1(c)(2)(a) and the Call Report,
Schedule RC-C, item 1.c.(2)(a).
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 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).

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 noninterest expense that exceed 15 percent of “total
non-interest expense” line item 17 as of the
actual 12/31 period.

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 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).

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 12/31
period.

Line item 4 Commercial and industrial (C&I)
loans:
Report all commercial and industrial (C&I)
loans, as defined in the FR Y-9C, Schedule
HC-C, items 4(a) and 4(b) and the Call Report,
Schedule RC-C, item 4 (FFIEC 041) and items
4.a and 4.b (FFIEC 031).

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 reporting entity’s projections should map to
the definitions outlined by the corresponding
MDRM code within the FR Y-9C and Call
Report. The reporting entity should report
balances that are tied to the relevant income or
losses reported on the Income Statement
Schedule.

Line item 5 1-4 family construction loans:
Report loans secured by 1-4 family residential
construction loans in domestic offices, as defined
in the FR Y-9C, Schedule HC-C, item 1(a)(1)
and the Call Report, Schedule RC-C, item
1.a.(1).
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
in domestic offices, as defined in the FR Y-9C,
Schedule HC-C, items 1(a)(2) and the Call
Report, Schedule RC-C, items 1.a.(2).

Line items 1 through 15 Loans
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

Line item 7 Multifamily loans:

12

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)(a)(1)
through 6.a.(5) and the Call Report, Schedule
RC-M items 13.a.(1)(a)(1) through 13.a.(5).
These loans also should be reported by loan
category in items 1 through 13 above.

Report loans secured by multifamily (5 or more)
residential properties 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.
Line item 8 Non-farm, non-residential owneroccupied loans:
Report loans secured by owner-occupied nonfarm non-residential properties in domestic
offices, as defined in the FR Y-9C, Schedule
HC-C, item 1(e)(1) and the Call Report, Schedule
RC-C, item 1.e.(1).

Line item 15 Total loans and leases:
Report the sum of items 1 through 13 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.

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 in domestic offices, as
defined in the FR Y-9C, Schedule HC-C, item
1(e)(2) and the Call Report, Schedule RC-C, item
1.e.(2).

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 17 through 21 Securities: 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 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.

Line item 17 U.S. government obligations and
obligations of U.S. government sponsored
entities (GSEs):
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 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.
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
RC-C, items 6.b and 6.d.

Line item 18 Securities issued by states and
political subdivisions in the U.S.:
Report securities issued by the states and political
subdivisions in 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 13 All other loans and leases:
Report all other loans that have not already been
reported in the loan categories in line items 1
through 12 and all leases.

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 in the

Line item 14 Loans covered by FDIC losssharing agreements:

13

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.

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
2(b) and the Call Report, Schedule RC, item 2.b
and Schedule RC-B, item 8, column D.

Line item 21 Total HTM securities:
Report the sum of items 17 through 20 above. It is
also defined in the FR Y-9C, Schedule HC, item
2(a) and the Call Report, Schedule RC, item 2.a
and Schedule RC-B, item 8, column A.

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.

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
RC-B, column D.

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 22 U.S. government obligations and
obligations of GSEs:
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 29 Other real estate owned:
Report the net book value of all other real estate
owned, as defined in the FR Y-9C, Schedule HCM, item 13 and the Call Report, Schedule RC,
item 7.
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 23 Securities issued by states and
political subdivisions in the U.S.:
Report securities issued by the states and political
subdivisions in 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 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 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 in 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

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 and M.2.d.
BHCs and SLHCs should report on a consolidated
basis deposits in domestic offices less time

14

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.

deposits of more than $250,000 and fully insured
brokered deposits in line item 32.
Line item 33 Wholesale funding:
Report all wholesale funding that is captured in the
Call Report, Schedule RC, items 13.b, 14.a, and
14.b, Schedule RC-H, item 5, Schedule RC-E,
Part I, items M.1.c and M.2.d for FFIEC 031
filers; Schedule RC, items 14.a, 14.b, and 16,
Schedule RC-E, items M.1.c 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
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.

Balance Sheet Schedule: Capital Section
This section collects projections of components of
equity capital and regulatory capital, components
of assets and liabilities, and deferred tax asset
items. When applicable, the definitions of the
reporting entity’s projections should map to the
definitions outlined by the corresponding MDRM
code within the FR Y9-C and Call Report.

Line item 34 Trading liabilities:
Report all trading liabilities, as defined in the
FR Y-9C, Schedule HC, item 15 and the Call
Report, Schedule RC, item 15.
Line item 35 All other liabilities:
Report all other liabilities, as line item 36 minus
line 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 as part of the ALLL).

The projections should clearly show any
proposed capital actions or other scenariodependent actions that would affect the reporting
entity’s regulatory capital, including any
assumptions required under the agencies’ stress
test rule. A reporting entity is required to
calculate for each quarter end the potential
impact on its regulatory capital levels and ratios
incorporating the effects of any expected capital
actions over the planning horizon.

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.

A BHC or SLHC (but not a depository institution)
is required to make the following assumptions
regarding its capital actions over the planning
horizon under the DFA stress test:

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.

(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
(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) an
assumption of no redemption or repurchase of
any capital instrument that is eligible for

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

15

(e.g., unrealized holding gains and losses on AFS
securities) in common equity tier 1 capital
compared
to
Non-Advanced
Approaches
reporting entities that “opt-in” to this requirement.
The requirement to include most components of
AOCI in common equity tier 1 capital applies to
all Advanced Approaches reporting entities.

inclusion in the numerator of a regulatory capital
ratio; (ii) an assumption of no issuances of
common stock or preferred stock, except for
issuances related to expensed employee
compensation or in connection with a planned
merger or acquisition to the extent that the
merger or acquisition is reflected in the
company's pro forma balance sheet estimates;
and (iii) make reasonable assumptions regarding
payments of dividends consistent with internal
capital needs and projections.

Opt-out Reporting Entities: Report the net
unrealized gains (losses) on AFS securities, as
defined in the FR Y-9C, Schedule HC-R, Part I,
item 9(a) and the Call Report, Schedule RC-R,
Part I, 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-forsale securities, net of applicable taxes, that is
included in Schedule HC, item 26(b), and
Schedule RC, item 26.b, “Accumulated other
comprehensive income.”

A reporting entity 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.
MDRM codes in this section reference both
Advanced Approaches and Non-Advanced
Approaches MDRMs. As noted, a reporting
entity should provide projections consistent with
its quarterly Call Report or FR Y-9C filings. For
example, if a reporting entity is not subject to an
Advanced Approaches capital framework,
reporting in this section will reflect NonAdvanced Approaches MDRMs. It is expected
that this will be the case for the majority of
reporting entities filing the FFIEC 016
report. Use of Advanced Approaches MDRMs
may be utilized in the atypical instance that a
reporting entity is part of a larger company that is
subject to the Advanced Approaches capital
framework.

Opt-In Reporting Entities and Advanced
Approaches Reporting Entities: Non-Advanced
Approaches reporting entities that decide to “optin” and all Advanced Approaches reporting
entities must calculate the net unrealized holding
gains (losses) on AFS securities and report actual
data for Balance Sheet Schedule line item 40.
Line item 40 will not be derived for AOCI Opt-In
reporting entities and Advanced Approaches
reporting entities and must be input manually.
Line item 41 Deferred tax assets:
Report deferred tax assets, as defined in the
FR Y-9C, Schedule HC-R, Part I, item 8 and the
Call Report, Schedule RC-R, Part I, item 8. The
description of this line item in Part I 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 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, item 9(a) and the Call Report,
Schedule RC-R, Part I, item 9.a. Per the FR Y-9C
and Call Report instructions, this line item
represents the amount of net unrealized gains
(losses) on AFS securities, net of applicable taxes,
that is included in Schedule HC, item 26(b) and
Schedule RC, item 26.b, “Accumulated other
comprehensive income” (AOCI).

Line item 42 Common equity tier 1 capital
Report common equity tier 1 capital, as defined by
the regulatory capital framework and in the
FR Y-9C, Schedule HC-R, Part I, item 19 and the
Call Report, Schedule RC-R, Part I, item 19.
Line item 43 Tier 1 capital:
Report tier 1 capital, as defined in the FR Y-9C,
Schedule HC-R, Part I, item 26 and the Call
Report, Schedule RC-R, Part I, item 26.

The reporting of net unrealized gains (losses) on
AFS securities will differ for Non-Advanced
Approaches reporting entities that “opt-out” of the
requirement to include most components of AOCI

16

Line item 52 Tier 1 leverage ratio:
Report the tier 1 leverage ratio, as defined in the
FR Y-9C, Schedule HC-R, Part I, item 44 and the
Call Report, Schedule RC-R, Part I, item 44.

Line item 44 Allowance includible in tier 2
capital:
Report the allowance for loan and lease losses
includible in tier 2 capital, as defined in the
FR Y-9C, Schedule HC-R, Part I, item 30(a) and
the Call Report, Schedule RC-R, Part I, item 30.a.

Line item 53 Total risk-based capital ratio:
Report the total risk-based capital ratio, as defined
in the FR Y-9C, Schedule HC-R, Part I, item 43
and the Call Report, Schedule RC-R, Part I, item
43.

Line item 45 Tier 2 capital:
Report tier 2 capital, as defined in the FR Y-9C,
Schedule HC-R, Part I, item 34(a) and the Call
Report, Schedule RC-R, Part I, item 34.a.

Line item 54 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, items 5(a), 5(b), 6(a),
and 6(b) and the Call Report, Schedule RI-A,
items 5 and 6.

Line item 46 Total capital:
Report total capital, as defined in the FR Y-9C,
Schedule HC-R, Part I, item 35(a) and the Call
Report, Schedule RC-R, Part I, item 35.a. The
description of this line item in Part I of the
Schedules HC-R and RC-R is “Total capital.”
Line item 47 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.

A BHC or SLHC (but not a depository institution)
should assume it will not issue any new common
stock or preferred stock in the second through
ninth quarters of the planning horizon, except for
issuances related to expensed employee
compensation or in connection with a planned
merger or acquisition to the extent that the merger
or acquisition is reflected in the company's pro
forma balance sheet estimates. This line item
should be reported on a quarterly basis.

Line item 48 Risk-weighted assets:
Report risk-weighted assets, as defined in the
FR Y-9C, Schedule HC-R, Part II, item 31 and
Part I, item 40(a) and the Call Report, Schedule
RC-R, Part II, item 31 and Part I, item 40.a.

Line item 55 Cash dividends declared on
preferred stock:
Report cash dividends declared on preferred stock,
as defined in the FR Y-9C, Schedule HI-A, item
10 and the Call Report, Schedule RI-A, item 8.
For BHCs and SLHCs (but not depository
institutions), this line item should equal the actual
dividends declared for the first quarter of the
planning horizon and the stated dividend to be
declared for the second through ninth quarters of
the planning horizon. This line item should be
reported on a quarterly basis.

Line item 49 Total assets for leverage purposes:
Report total assets for leverage purposes, as
defined in the FR Y-9C, Schedule HC-R, Part I,
item 39 and the Call Report, Schedule RC-R,
Part I, item 39.
Line item 50 Common equity tier 1 risk-based
capital ratio
Report the common equity tier 1 risk-based capital
ratio, as defined in the FR Y-9C, Schedule HC-R,
Part I, item 41 and the Call Report, Schedule
RC-R, Part I, item 41.

Line item 56 Cash dividends declared on
common stock:
Report cash dividends declared on common stock,
as defined in the FR Y-9C, Schedule HI-A, item
11 and the Call Report, Schedule RI-A, item 9.
For BHCs and SLHCs (but not depository
institutions), this line item should equal the actual

Line item 51 Tier 1 risk-based capital ratio:
Report the tier 1 risk-based capital ratio, as
defined in the FR Y-9C, Schedule HC-R, Part I,
item 42 and the Call Report, Schedule RC-R,
Part I, item 42.

17

dividends declared for the first quarter of the
planning horizon and should include reasonable
assumptions regarding declarations of dividends
consistent with internal capital needs and
projections for the second through ninth quarters
of the planning horizon. This line item should be
reported on a quarterly basis.

18

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 reporting entity
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 reporting entity and
allow for the appropriate level of challenge of
assumptions and outcomes.

APPENDIX A
QUALITATIVE
SUPPORTING
INFORMATION
Each reporting entity 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 the reporting
entity’s general approach and assumptions, but
remain summary in nature. Reporting entities
should provide appropriate references to internal
documents that provide more detail and support
for the items to be discussed in the submission,
such as detail that supports model documentation
that examination staff may review during an on or
off-site follow-up. All reporting entities must
submit the qualitative supporting information in
Adobe Acrobat PDF format.

In addition, the following subsections (1.A
through 1.D) should be included as part of the
summary and governance section:
A. Description of the Types of Risks Included
in the Stress Test
For each part of the Results Schedules and the
Scenario Variables Schedule, each reporting entity
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 reporting entity’s capital
position through increased losses, reduced
revenues, and changes in the balance sheet or riskweighted 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).

The qualitative supporting information summary
file should be titled as
“FFIEC016_RSSD_SUMMARY_MMDDYY”.
•

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

•

The “MMDDYY” should be the as-of date of
the stress test cycle (for example, 123117 for
the 2018 stress test cycle).

The purpose of the summary document is to
provide an overview of the stress testing process
as required in the agencies' stress test rules and as
is repeated in Appendix A. Significant detailed
information, such as program language coding that
accompanies model estimations (for example, SAS
coding) 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.

B. Summary Description of the Methodologies
used in the Stress Test
For each part of the Results Schedules and the
Scenario Variables Schedule, the reporting entity
should submit supporting information that clearly
describes the methodology used to produce the
projections. Each reporting entity 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
all elements of the stress tests, including loss
estimation, revenue estimation, projections of the

1. Summary and Governance
Executive summary, general risk overview,
including a description of the risks used in the

19

balance sheet and risk-weighted assets, and capital
levels and ratios. Where judgment is an essential
part of the projection, each reporting entity should
describe the rationale and magnitude, as well as the
process involved to ensure consistency of
projections with scenario conditions. Furthermore,
each reporting entity should include a thorough
discussion of any material deviations from these
instructions and how it 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 reporting entity should provide a
summary of the design, theory, and logic
underlying the methodologies used.
If third-party models are used, the reporting entity
should provide summary information about those
models, including model design, key assumptions,
known limitations, and implementation and
execution.
Each reporting entity 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 reporting entity 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 reporting entity’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.
Each reporting entity should provide summary
information on the specific assumptions used to
calculate regulatory capital, including a discussion
of any proposed capital distributions. When

20

appropriate, clearly state assumptions related to the
corporate tax rate and the projection of the deferred
tax assets. In situations where the reporting entity
chooses not to project components of the balance
sheet, those components should be held constant at
the last current level and the reporting entity should
explain why the held constant assumption is
appropriate in the given scenario.
Each reporting entity should submit any other
summary
information
and
documentation
necessary to support or explain its capital
calculations. For example, a reporting entity could
show the calculations related to the projections of
the deferred tax assets for regulatory capital
purposes.
While judgment is an essential part of risk
measurement and risk management, including loss
forecasting, a reporting entity should not be overreliant on judgment to prepare its loss estimations
without providing documentation or evidence of
transparency and discipline around the process.
Each reporting entity 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 Schedules and the
Scenario Variables Schedule, each reporting entity
should provide a clear explanation of the changes
in regulatory capital ratios from the stress test
scenarios over the planning horizon. For instance,
a reporting entity 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 Schedule line items affected by the stress test
scenario.
D. Use of Stress Test Results
Each reporting entity should provide summary
information as to how it uses these stress test

a post-stress basis, and an explanation of causes
for changes in regulatory capital ratios. This
information should support the Balance Sheet
Schedule line items 40 to 53.

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
reporting entity 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 reporting entity’s full
range of risks, exposures, activities, and
vulnerabilities that have the potential to affect
capital adequacy. In addition, a reporting entity
should include summary information as to how
post-stress capital results remain aligned with its
internal capital goals. The reporting entity should
mention any cases in which post-stress capital
results are not aligned with a reporting entity’s
internal capital goals, and describe options that
senior management and the board would consider
to bring them into alignment.

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.

2. Scenarios

6. Pre-provision Net Revenue

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 reporting entity should complete
the Scenario Variables Schedule as previously
indicated in the reporting instructions.

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.

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

7. Balance Sheet

In addition, each reporting entity 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 regulatory
agencies.
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

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.
Example 1:
“FFIEC016_RSSD_SUMMARY_SUMMARY_

21

AND_GOVERNANCE_TO_CAPITAL_MMD
DYY” and
“FFIEC016_RSSD_SUMMARY_LOANS_TO_
BALANCE SHEET_MMDDYY”;
Example 2:
“FFIEC016_RSSD_SUMMARY_SUMMARY_
AND_GOVERNANCE_TO_CAPITAL_MMD
DYY” and
“FFIEC016_RSSD_SUMMARY_LOANS_MM
DDYY” and
“FFIEC016_RSSD_SUMMARY_SECURITIES
_MMDDYY” and
“FFIEC016_RSSD_SUMMARY_PREPROVISION_NET_REVENUE_AND_BALAN
CE SHEET_MMDDYY”.

22