Consolidated Reports of Condition and Income (Call Report)

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Draft as of February 15, 2019

1

Draft Revisions to the Call Report Instructions for Revisions to the
FFIEC 031 and FFIEC 041 Call Reports Proposed to Take Effect
March 31, 2019
Contents
Schedule
Schedule RI – Income Statement

Page
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Schedule RI-B – Charge-offs and Recoveries on Loans and Leases and Changes in
Allowance for Loan and Lease Losses

1

Schedule RI-E – Explanations



Schedule RC – Balance Sheet



Schedule RC-B – Securities



Schedule RC-C – Loans and Lease Financing Receivables



Schedule RC-F – Other Assets



Schedule RC-G – Other Liabilities



Schedule RC-K – Quarterly Averages



Schedule RC-N – Past Due and Nonaccrual Loans, Leases, and Other Assets



Schedule RC-R – Regulatory Capital



Schedule SU – Supplemental



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LINE ITEM INSTRUCTIONS FOR THE CONSOLIDATED REPORT OF
INCOME
The line item instructions should be read in conjunction with the Glossary and other sections of these
instructions. See the discussion of the Organization of the Instruction Books in the General
Instructions. For purposes of these Consolidated Report of Income instructions, the Financial Accounting
Standards Board (FASB) Accounting Standards Codification is referred to as the “ASC.”

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SCHEDULE RI – INCOME STATEMENT
General Instructions

Report in accordance with these instructions all income and expense of the bank for the calendar
year-to-date. Include adjustments of accruals and other accounting estimates made shortly after the end
of a reporting period which relate to the income and expense of the reporting period.

A bank that began operating during the year-to-date reporting period should report in the appropriate
items of Schedule RI all income earned and expenses incurred since commencing operations. The bank
should report pre-opening income earned and expenses incurred from inception until the date operations
commenced using one of the two methods described in the Glossary entry for "start-up activities."

Business Combinations, Pushdown Accounting Transactions, and Transactions between Entities under
Common Control – If the reporting institution entered into a business combination that became effective
during the year-to-date reporting period and has been accounted for under the acquisition method, report
the income and expense of the acquired institution or business only after its acquisition. If the reporting
institution was acquired in a transaction that became effective during the reporting period, retained its
separate corporate existence, and elected to apply pushdown accounting in its separate financial
statements (including its Consolidated Reports of Condition and Income), Schedule RI should only
include amounts from the date of the institution’s acquisition through the end of the year-to-date reporting
period. If the reporting institution was involved in a transaction between entities under common control
that became effective during the year-to-date reporting period and has been accounted for in a manner
similar to a pooling of interests, report the income and expense of the combined entities for the entire
calendar year-to-date as though they had combined at the beginning of the year. For further information
on business combinations, pushdown accounting, and transactions between entities under common
control, see the Glossary entry for "business combinations."

Assets and Liabilities Accounted for under the Fair Value Option – Under U.S. generally accepted
accounting principles (GAAP) (i.e., ASC Subtopic 825-10, Financial Instruments – Overall (formerly
FASB Statement No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities”), ASC
Subtopic 815-15, Derivatives and Hedging – Embedded Derivatives (formerly FASB Statement No. 155,
“Accounting for Certain Hybrid Financial Instruments”), and ASC Subtopic 860-50, Transfers and
Servicing – Servicing Assets and Liabilities (formerly FASB Statement No. 156, “Accounting for Servicing
of Financial Assets”)), the bank may elect to report certain assets and liabilities at fair value with changes
in fair value recognized in earnings. This election is generally referred to as the fair value option. If the
bank has elected to apply the fair value option to interest-bearing financial assets and liabilities, it should
report the interest income on these financial assets (except any that are in nonaccrual status) and the
interest expense on these financial liabilities for the year-to-date in the appropriate interest income and
interest expense items on Schedule RI, not as part of the reported change in fair value of these assets
and liabilities for the year-to-date. The bank should measure the interest income or interest expense on a
financial asset or liability to which the fair value option has been applied using either the contractual
interest rate on the asset or liability or the effective yield method based on the amount at which the asset

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General Instructions (cont.)

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or liability was first recognized on the balance sheet. Although the use of the contractual interest rate is
an acceptable method under GAAP, when a financial asset or liability has a significant premium or
discount upon initial recognition, the measurement of interest income or interest expense under the
effective yield method more accurately portrays the economic substance of the transaction. In addition, in
some cases, GAAP requires a particular method of interest income recognition when the fair value option
is elected. For example, when the fair value option has been applied to a beneficial interest in securitized
financial assets within the scope of ASC Subtopic 325-40, Investments-Other – Beneficial Interests in
Securitized Financial Assets (formerly Emerging Issues Task Force Issue No. 99-20, “Recognition of
Interest Income and Impairment on Purchased and Retained Beneficial Interests in Securitized Financial
Assets”), interest income should be measured in accordance with this Subtopic. Similarly, when the fair
value option has been applied to a purchased impaired loan or debt security accounted for under ASC
Subtopic 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality
(formerly AICPA Statement of Position 03-3, “Accounting for Certain Loans or Debt Securities Acquired in
a Transfer”), interest income on the loan or debt security should be measured in accordance with this
Subtopic when accrual of income is appropriate.
For Institutions that have adopted Accounting Standards Update No. 2016-13 (ASU 2016-13), which
governs the accounting for credit losses, when the fair value option has been applied to an acquired loan
or debt security under ASC 326-20, “Financial Instruments-Credit Losses – Measured at Amortized Cost”,
interest income on the loan or debt security should be measured in accordance with Subtopic 310-10,
“Receivables – Overall”, regardless of whether or not management has determined the asset to be
purchased credit deteriorated (PCD).
For further information, see the Glossary entriesy for “Purchased Impaired Loans and Debt Securities.”
and “Purchased Credit Deteriorated (PCD) Loans and Debt Securities.”

Revaluation adjustments, excluding amounts reported as interest income and interest expense, to the
carrying value of all assets and liabilities reported in Schedule RC at fair value under a fair value option
(excluding servicing assets and liabilities reported in Schedule RC, item 10, “Intangible assets,” and
Schedule RC, item 20, “Other liabilities,” respectively, and assets and liabilities reported in Schedule RC,
item 5, "Trading assets," and Schedule RC, item 15, "Trading liabilities," respectively) resulting from the
periodic marking of such assets and liabilities to fair value should be reported as “Other noninterest
income” in Schedule RI, item 5.l.

Item Instructions
Item No.

Caption and Instructions

1

Interest income:

1.a

Interest and fee income on loans. Report in the appropriate subitem all interest, fees, and
similar charges levied against or associated with all assets reportable as loans in
Schedule RC-C, Part I, items 1 through 9.
Deduct interest rebated to customers on loans paid before maturity from gross interest
earned on loans; do not report as an expense.

Include as interest and fee income on loans:

(1) Interest on all assets reportable as loans extended directly, purchased from others, sold
under agreements to repurchase, or pledged as collateral for any purpose.
(2) Loan origination fees, direct loan origination costs, and purchase premiums and
discounts on loans held for investment, all of which should be deferred and recognized
over the life of the related loan as an adjustment of yield in accordance with ASC

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Subtopic 310-20, Receivables – Nonrefundable Fees and Other Costs (formerly FASB
Statement No. 91, “Accounting for Nonrefundable Fees and Costs Associated with
Originating or Acquiring Loans and Initial Direct Costs of Leases”) as described in the
Glossary entry for "loan fees." See exclusion (3) below.
For institutions that have adopted ASU 2016-13, which governs the accounting for
credit losses, the purchase premiums and discounts on loans held for investment that
management has determined to be PCD and are measured at amortized cost, should
be adjusted to exclude the acquisition date allowance for credit loss from the amortized
cost basis of the loans.

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For further information, see the Glossary entry “Purchased Credit Deteriorated (PCD)
Loans and Debt Securities.”

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Item No.

Caption and Instructions

2.c
(cont.)

"Subordinated notes and debentures." Include interest expense incurred on other borrowed
money and subordinated notes and debentures reported at fair value under a fair value
option.
Include amortization of debt issuance costs associated with other borrowed money and
subordinated notes and debentures (unless these liabilities are reported at fair value under a
fair value option, in which case issuance costs should be expensed as incurred).

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Exclude dividends declared or paid on limited-life preferred stock (report dividends declared
in Schedule RI-A, item 8).

2.d

Not applicable.

2.e

Total interest expense. Report the sum of Schedule RI, items 2.a through 2.c.

3

Net interest income. Report the difference between Schedule RI, item 2.e, “Total interest
expense,” and Schedule RI, item 1.h, “Total interest income.” If the amount is negative,
report it with a minus (-) sign.

4

Provision for loan and lease losses. Institutions that have not adopted ASU 2016-13,
rReport the amount needed to make the allowance for loan and lease losses, as reported in
Schedule RC, item 4.c, adequate to absorb estimated credit losses, based upon
management's evaluation of the reporting institution’s loans and leases held for investment,
excluding such loans and leases reported at fair value under a fair value option. Loans and
leases held for investment are those that the reporting institution has the intent and ability to
hold for the foreseeable future or until maturity or payoff. Also include in this item any
provision for allocated transfer risk related to loans and leases. The amount reported in this
item must equal Schedule RI-B, Part II, item 5, column A, “Provision for loan and leasecredit
losses.” Report negative amounts with a minus (-) sign.

Institutions that have adopted ASU 2016-13, which governs the accounting for credit losses,
report the amount expensed as the provisions for credit losses, during the calendar year-todate. The provisions for credit losses represents the amount appropriate to absorb estimated
credit losses over the life of the financial assets reported at amortized cost within the scope of
the standard. Exclude the initial allowances established on the purchase of creditdeteriorated (PCD) financial assets, which are recorded at acquisition as an adjustment to the
amortized cost basis of the asset. The amount reported in this item must equal the sum of
Schedule RI-B, Part II, item 5, columns A through column C plus Schedule RI-B, Part II,
Memorandum item 5. Report negative amounts with a minus (-) sign.

Exclude any provision for credit losses on off-balance sheet credit exposures, which should
be reported in Schedule RI, item 7.d, “Other noninterest expense.”

The amount reported here may differ from the bad debt expense deduction taken for federal
income tax purposes.

Refer to the Glossary entries for "allowance for loan and lease losses," and “loan
impairment,” “allowance for credit losses” and “Purchased Credit Deteriorated (PCD) loans
and debt securities” for additional information.

5

Noninterest income:

5.a

Income from fiduciary activities. Report gross income from services rendered by the
institution’s trust department or any of its consolidated subsidiaries acting in any fiduciary
capacity. Include commissions and fees on sales of annuities by the institution's trust

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department (or by a consolidated trust company subsidiary) that are executed in a fiduciary
capacity. For institutions required to complete Schedule RC-T, items 14 through 22, this item
must equal the amount reported in Schedule RC-T, item 22.

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Exclude net fiduciary settlements, surcharges, and other losses. Such losses should be
reported on a net basis in Schedule RI, item 7.d, “Other noninterest expense, and, if
applicable, in Schedule RC-T, item 24 and Memorandum item 4. Net losses are gross losses
less recoveries (including those from insurance payments). If the institution’s trust
department or a consolidated subsidiary acting in any fiduciary capacity enters into a “fee
reduction” or “fee waiver” agreement with a client as the method for reimbursing or

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Item No.

RI - INCOME STATEMENT

Caption and Instructions
Total noninterest income. Report the sum of items 5.a through 5.l.

6.a

Realized gains (losses) on held-to-maturity securities. Report the net gain or loss
realized during the calendar year to date from the sale, exchange, redemption, or retirement
of all securities reportable in Schedule RC, item 2.a, "Held-to-maturity securities." The
realized gain or loss on a security is the difference between the sales price (excluding interest
at the coupon rate accrued since the last interest payment date, if any) and its amortized
cost. Also include in this item other-than-temporary impairment losses on individual
held-to-maturity securities that must be recognized in earnings. For further information on the
accounting for impairment of held-to-maturity securities, see the Glossary entry for “securities
activities.” If the amount to be reported in this item is a net loss, report it with a minus (-)
sign.

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5.m

Institutions that have adopted ASU 2016-13, which governs the accounting for
credit losses, should adjust the amortized cost for recoveries of any prior chargeoffs when calculating the realized gain or loss on a security, such that the recovery
of a previously charged off amount should be recorded before recognizing the gain.

Exclude from this item realized gains (losses) on available-for-sale securities (report in
Schedule RI, item 6.b, below) and on trading securities (report as trading revenue in
Schedule RI, item 5.l, “Other noninterest income”).

6.b

Realized gains (losses) on available-for-sale securities. Report the net gain or loss
realized during the calendar year to date from the sale, exchange, redemption, or retirement
of all securities reportable in Schedule RC, item 2.b, "Available-for-sale securities." The
realized gain or loss on a security is the difference between the sales price (excluding interest
at the coupon rate accrued since the last interest payment date, if any) and its amortized
cost. Institutions that have not adopted ASU 2016-13 aAlso include in this item other-thantemporary impairment losses on individual available-for-sale securities that must be
recognized in earnings. For further information on the accounting for impairment of availablefor-sale securities, see the Glossary entry for “securities activities.” If the amount to be
reported in this item is a net loss, report it with a minus (-) sign.
Institutions that have adopted ASU 2016-13 adjust the amortized cost for
recoveries of any prior charge-offs when calculating the realized gain or loss on a
security, such that recovery of a previously charged off amount should be recorded
before recognizing the gain. Include in this item any write-off recorded when the
institution intends to sell the debt security, or it is more likely than not the institution
will be required to sell the security before recovery of its amortized cost basis.

For institutions that have adopted FASB Accounting Standards Update No. 2016-01
(ASU 2016-01), which includes provisions governing the accounting for investments in equity
securities and eliminates the concept of available-for-sale equity securities (see the Note
preceding the instructions for Schedule RI, item 8.b), include realized gains (losses) only on
available-for-sale debt securities in item 6.b. Report realized and unrealized gains (losses)
during the year-to-date reporting period on equity securities with readily determinable fair
values not held for trading in Schedule RI, item 8.b.
Exclude from this item:

(1) (a) For institutions that have not adopted ASU 2016-01, the change in net unrealized
holding gains (losses) on available-for-sale debt and equity securities during the
calendar year to date (report in Schedule RI-A, item 10, “Other comprehensive
income”).
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(b) For institutions that have adopted ASU 2016-01, the change in net unrealized holding
gains (losses) on available-for-sale debt securities during the calendar year to date
(report in Schedule RI-A, item 10, “Other comprehensive income”).
(2) Realized gains (losses) on held-to-maturity securities (report in Schedule RI, item 6.a,
above) and on trading securities (report as trading revenue in Schedule RI, item 5.l,
“Other noninterest income”).

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(3) Institutions that have adopted ASU 2016-13 exclude the allowance recorded through the
allowance for credit losses on available-for-sale securities (report in Schedule RI, item 4,
“Provision for loan and lease losses” which includes the provisions for credit losses for all
financial assets that fall within the scope of the standard).

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Item No.

Caption and Instructions

7.d
(cont.)

Exclude from other noninterest expense:
(1) Material expenses incurred in the issuance of subordinated notes and debentures
(capitalize such expenses and amortize them over the life of the related notes and
debentures using the effective interest method and report the expense in Schedule RI,
item 2.c, "Other interest expense"). For further information, see the Glossary entry for
“Debt issuance costs.”

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(2) Expenses incurred in the sale of preferred and common stock (deduct such expenses
from the sale proceeds and credit the net amount to the appropriate stock account.
For perpetual preferred and common stock only, report the net sales proceeds in
Schedule RI-A, item 5, "Sale, conversion, acquisition, or retirement of capital stock, net").
(3) Depreciation and other expenses related to the use of bank-owned automobiles,
airplanes, and other vehicles for bank business (report in Schedule RI, item 7.b,
"Expenses of premises and fixed assets").

(4) Institutions that have not adopted ASU 2016-13 wWrite-downs of the cost basis of
individual held-to-maturity and available-for-sale securities for other-than-temporary
impairments (report in Schedule RI, item 6.a, "Realized gains (losses) on held-tomaturity securities," and item 6.b, "Realized gains (losses) on available-for-sale
securities," respectively).

(5) Institutions that have adopted ASU 2016-13, charge-offs of the cost basis of individual
held-to-maturity and available-for-sale securities (report credit losses in item 4, “Provision
for credit losses,” and report any write-off when the institution intends to sell the debt
security, or when it is more likely than not the institution will be required to sell the
security before recovery of its amortized cost basis in Schedule RI, item 6.a, "Realized
gains (losses) on held-to-maturity securities," and item 6.b, "Realized gains (losses) on
available-for-sale securities," respectively).

(56) Revaluation adjustments to the carrying value of all assets and liabilities reported in
Schedule RC at fair value under a fair value option. Banks should report these net
decreases (increases) in fair value on servicing assets and liabilities in Schedule RI,
item 5.f, and on financial assets and liabilities (including trading assets and liabilities) in
Schedule RI, item 5.l. Interest income earned and interest expense incurred on these
financial assets and liabilities should be excluded from the net decreases (increases) in
fair value and reported in the appropriate interest income or interest expense items on
Schedule RI.

7.e

Total noninterest expense. Report the sum of items 7.a through 7.d.

8.a
Income (loss) before unrealized holding gains (losses) on equity securities not
held for trading, applicable income taxes, and discontinued operations. Report the
institution’s pretax income from continuing operations before unrealized holding gains
(losses) on equity securities not held for trading. This amount is determined by taking item 3,
"Net interest income," minus item 4, "Provision for loan and lease losses," plus item 5.m,
"Total noninterest income," plus item 6.a, "Realized gains (losses) on held-to-maturity
securities," plus item 6.b, "Realized gains (losses) on available-for-sale securities," minus
item 7.e, "Total noninterest expense." If the result is negative, report it with a minus (-) sign.
Note: Institutions that have adopted ASU 2016-13 report the provisions for credit losses in
item 4, referenced in item 8.a.

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Memoranda
Item No.

Caption and Instructions

NOTE: Memorandum item 12 is to be completed by banks that are required to complete Schedule RC-C,
Part I, Memorandum items 8.b and 8.c, and is to be completed annually as of the December 31 report
date.
Noncash income from negative amortization on closed-end loans secured by
1-4 family residential properties. Report the amount of noncash income from negative
amortization on closed-end loans secured by 1-4 family residential properties (i.e., interest
income accrued and uncollected that has been added to principal) included in interest and
fee income on loans secured by real estate (Schedule RI, item 1.a.(1)).

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12

Negative amortization refers to a method in which a loan is structured so that the borrower’s
minimum monthly (or other periodic) payment is contractually permitted to be less than the
full amount of interest owed to the lender, with the unpaid interest added to the loan’s
principal balance. The contractual terms of the loan provide that if the borrower allows the
principal balance to rise to a pre-specified amount or maximum cap, the loan payments are
then recast to a fully amortizing schedule. Negative amortization features may be applied to
either adjustable rate mortgages or fixed rate mortgages, the latter commonly referred to as
graduated payment mortgages (GPMs).

13

Not applicable.

14

Other-than-temporary impairment losses on held-to-maturity and available-for-sale
debt securities recognized in earnings.

Memorandum item 14 is to be completed only by institutions that have not adopted ASU
2016-13, which governs the accounting for credit losses. Institutions that have adopted ASU
2016-13 leave this item blank.

Report the amount of other-than-temporary impairment losses on held-to-maturity and
available-for-sale debt securities that have been recognized in earnings during the calendar
year to date as discussed in the following paragraphs. This amount is included in the
realized gains (losses) on held-to-maturity and available-for-sale securities reported in
Schedule RI, items 6.a and 6.b, respectively.

When the fair value of an individual held-to-maturity or available-for-sale debt security is less
than its amortized cost basis, the security is impaired and the impairment is either temporary
or other-than-temporary. To determine whether the impairment is other-than-temporary, a
bank must apply the relevant guidance in ASC Topic 320, Investments-Debt Securities
(formerly FASB Statement No. 115, “Accounting for Certain Investments in Debt and Equity
Securities,” as amended by FASB Staff Position (FSP) FAS 115-1 and FAS 124-1, “The
Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments,”
and FSP FAS 115-2 and FAS 124-2, “Recognition and Presentation of Other-ThanTemporary Impairments”) and ASC Subtopic 325-40, Investments-Other – Beneficial
Interests in Securitized Financial Assets (formerly Emerging Issues Task Force (EITF) Issue
No. 99-20, “Recognition of Interest Income and Impairment on Purchased Beneficial Interests
and Beneficial Interests That Continue to Be Held by a Transferor in Securitized Financial
Assets,” as amended by FSP EITF 99-20-1, “Amendments to the Impairment Guidance of
EITF Issue No. 99-20”), as appropriate.

When an other-than-temporary impairment loss has occurred on an individual debt security,
the total amount of the loss is the entire difference between the amortized cost of the debt
security and its fair value on the measurement date of the other-than-temporary impairment.
For an other-than-temporary impairment loss on a debt security that the bank intends to sell
and on a debt security that it is more likely than not that the bank will be required to sell
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before recovery of its amortized cost basis less any current-period credit loss, the total
amount of the other-than-temporary impairment loss must be recognized in earnings and
must be reported in this item.

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RI-B - ALLOWANCE

SCHEDULE RI-B – CHARGE-OFFS AND RECOVERIES ON LOANS
AND LEASES AND CHANGES IN ALLOWANCES FOR LOAN AND
LEASECREDIT LOSSES
Part I. Charge-offs and Recoveries on Loans and Leases
General Instructions

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This part has two columns. In column A report loans and leases charged off against the allowance for
loan and lease losses during the current calendar year-to-date. Also include in column A write-downs to
fair value on loans (and leases) transferred to the held-for-sale account during the calendar year-to-date
that occurred when (1) the reporting bank 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. In column B report amounts
recovered through the allowance for loan and lease losses during the calendar year-to-date on loans and
leases previously charged off.

For those banks required to establish and maintain an allocated transfer risk reserve as specified
in Section 905(a) of the International Lending Supervision Act of 1983, include in column A loans and
leases charged off against the allocated transfer risk reserve during the current calendar year-to-date.
Include in column B amounts recovered through the allocated transfer risk reserve during the calendar
year-to-date on loans and leases previously charged off against this reserve.

These instructions should be read in conjunction with the Glossary entry for "allowance for loan and lease
losses” and “allowances for credit losses."

Business Combinations, Pushdown Accounting Transactions, and Transactions between Entities under
Common Control – If the reporting institution entered into a business combination that became effective
during the year-to-date reporting period and has been accounted for under the acquisition method,
include the charge-offs and recoveries of the acquired institution or other business only after its
acquisition. Similarly, if the reporting institution was acquired in a transaction that became effective
during the reporting period, retained its separate corporate existence, and elected to apply pushdown
accounting in its separate financial statements (including its Consolidated Reports of Condition and
Income), include only the charge-offs and recoveries from the date of the institution's acquisition through
the end of the year-to-date reporting period. If the reporting institution was involved in a transaction
between entities under common control that became effective during the year-to-date reporting period
and has been accounted for in a manner similar to a pooling of interests, report the charge-offs and
recoveries of the combined entities for the entire calendar year-to-date as though they had combined at
the beginning of the year. For further information on business combinations, pushdown accounting, and
transactions between entities under common control, see the Glossary entry for "business combinations."

Item Instructions
Item No.

Caption and Instructions

1

Loans secured by real estate. Report in the appropriate subitem and column loans secured
by real estate (as defined for Schedule RC-C, Part I, item 1) charged off and recovered.

1.a

Construction, land development, and other land loans. Report in the appropriate
subitem and column construction, land development, and other land loans (as defined for
Schedule RC-C, Part I, item 1.a) charged off and recovered.

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Part I. (cont.)
Item No.

Caption and Instructions

2 and 3

Not applicable.
Commercial and industrial loans. Report in columns A and B, as appropriate, commercial
and industrial loans (as defined for Schedule RC-C, Part I, item 4) charged-off and recovered.

5

Loans to individuals for household, family, and other personal expenditures. Report in
the appropriate subitem and column loans to individuals for household, family, and other
personal expenditures (as defined for Schedule RC-C, Part I, item 6) charged-off and
recovered.

D
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4

5.a

Credit cards. Report in columns A and B, as appropriate, all extensions of credit under
credit cards (as defined for Schedule RC-C, Part I, items 6.a) charged-off and recovered.

5.b

Automobile loans. Report in columns A and B, as appropriate, all loans arising from retail
sales of passenger cars and other vehicles such as minivans, vans, sport-utility vehicles,
pickup trucks, and similar light trucks for personal use (as defined for Schedule RC-C, Part I,
item 6.c) charged-off and recovered.

5.c

Other (includes revolving credit plans other than credit cards and other consumer
loans). Report in columns A and B, as appropriate, all other extensions of credit to
individuals for household, family, and other personal expenditures (as defined for
Schedule RC-C, Part I, items 6.b and 6.d) charged-off and recovered.

6

Not applicable.

7

All other loans. Report in columns A and B, as appropriate, loans to depository institutions
and acceptances of other banks, loans to finance agricultural production and other loans to
farmers, obligations (other than securities and leases) of states and political subdivisions in
the U.S., and loans to nondepository financial institutions and other loans (as defined for
Schedule RC-C, Part I, items 2, 3, 8, and 9) charged-off and recovered.

8

Lease financing receivables. Report in columns A and B, as appropriate, all lease
financing receivables (as defined for Schedule RC-C, Part I, item 10) charged-off and
recovered.

9

Total. Report in columns A and B the sum of item 1 through 8. The amount reported in
column A must equal Schedule RI-B, Part II, item 3, column A, “Charge-offs,” below. The
amount reported in column B must equal Schedule RI-B, Part II, item 2, column A,
“Recoveries,” below.

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Part II. Changes In Allowances for Loan and LeaseCredit Losses
General Instructions
This schedule has three columns for information on the allowances for credit losses, one for each of the
following asset types: 1) loans and leases held for investment (Column A), 2) held-to-maturity debt
securities (Column B), and 3) available-for-sale debt securities (Column C).

D
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Institutions that have not adopted ASU 2016-13, which governs the accounting for credit losses,
Rreport the reconcilement of the allowance for loan and lease losses on a calendar year-to-date basis in
column A. Leave columns B and C blank.
Institutions that have adopted ASU 2016-13 report changes in the allowances for credit losses for loans
and leases held for investment, held-to-maturity debt securities and available-for-sale debt securities in
the applicable columns.
.
For those banks required to establish and maintain an allocated transfer risk reserve as specified
in Section 905(a) of the International Lending Supervision Act of 1983, the reconcilement should include
the activity in the allocated transfer risk reserve in column A during the calendar year-to-date that relates
to loans and leases.
Exclude the balances of the allowance for credit losses on off-balance sheet credit exposures reported
in Schedule RC-G, item 3, and any capital reserves included in Schedule RC, item 26.a, "Retained
earnings," and the effects of any transactions therein.

Refer to the Glossary entry for "allowance for loan and lease losses" and “allowances for credit losses” for
further information.

Business Combinations, Pushdown Accounting Transactions, and Transactions between Entities under
Common Control – If the reporting institution entered into a business combination that became effective
during the year-to-date reporting period and has been accounted for under the acquisition method,
include the recoveries, charge-offs, and provisions of the acquired institution or other business only after
its acquisition. Under ASC Topic 805, Business Combinations (formerly FASB Statement No. 141(R),
“Business Combinations”), the acquired loans and leases must be measured at their acquisition-date fair
values. Therefore, for institutions that have not adopted ASU 2016-13, the reporting institution may not
carry over the allowance for loan and lease losses of the acquired institution or other business as of the
acquisition date.

A reporting institution that has adopted ASU 2016-13 may not carry over the allowances for credit losses
for acquired assets. To note, for acquired assets that management has determined to be purchased
credit deteriorated (PCD), institutions will estimate and record the allowances for credit losses as of the
acquisition date with an offsetting debit to the asset’s initial amortized cost basis. This allowance must be
reported as a positive (+) amount in Schedule RI-B, part II, item 6, "Adjustments" in the applicable
column.

Similarly, if the reporting institution was acquired in a transaction that became effective during the year-todate reporting period, retained its separate corporate existence, and elected to apply pushdown
accounting in its separate financial statements (including its Consolidated Reports of Condition and
Income), include only the recoveries, charge-offs, and provisions from the date of the institution's
acquisition through the end of the year-to-date reporting period. For institutions that have not adopted
ASU 2016-13, Wwhen applying pushdown accounting, the reporting institution’s loans and leases must
be restated to their acquisition-date fair values and the institution may not carry over its allowance for loan
and lease losses as of the acquisition date. As a consequence, the amount reported in Schedule RI-B,
Part II, item 1, column A, for the balance of the allowance for loan and lease losses most recently
reported for the end of the previous calendar year must be reported as a negative in Schedule RI-B, Part
II, item 6, "Adjustments."
A reporting institution that has adopted ASU 2016-13 also must restate the acquisition-date fair values
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and may not carry over the allowances for credit losses for acquired assets when applying pushdown
accounting. The amount reported in Schedule RI-B, part II, item 1, columns A through C, for the balances
of the allowances for credit losses on the acquired assets most recently reported for the end of the
previous calendar year must be reported as a negative in Schedule RI-B, part II, item 6, "Adjustments."
For those assets that management has determined to be PCD, institutions will then add back the
allowances for credit losses as of the acquisition date. This allowance must be reported as a positive
amount in Schedule RI-B, part II, item 6, "Adjustments" in the applicable column.

D
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If the reporting institution was involved in a transaction between entities under common control that
became effective during the year-to-date reporting period and has been accounted for in a manner similar
to a pooling of interests, report the recoveries, charge-offs, and provisions of the combined entities for the
entire calendar year-to-date as though they had combined at the beginning of the year. Reporting
institutions that have not adopted ASU 2016-13, Rreport the balance as of the end of the previous
calendar year of the allowance for loan and lease losses of the institution or other business that combined
with the reporting institution in the common control transaction in Schedule RI-B, Part II, item 6,
"Adjustments,." column A. Reporting institutions that have adopted ASU 2016-13 should report the
balance as of the end of the previous calendar year of the allowances for credit losses of the institution or
other business that combined with the reporting institution in the common control transaction in Schedule
RI-B, part II, item 6, "Adjustments" in the applicable column.

For further information on business combinations, pushdown accounting, and transactions between
entities under common control, see the Glossary entry for "business combinations." Refer to the Glossary
entry for “allowance for credit losses” for further information on accounting for PCD assets.

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Part II. (cont.)
Item Instructions
Item No.

Balance most recently reported in the December 31, 20xx, Reports of Condition and
Income. Institutions that have not adopted ASU 2016-13, report in column A Report the
balance of the bank's allowance for loan and lease losses as reported in the Reports of
Condition and Income for the previous calendar year-end after the effect of all corrections
and adjustments to the allowance for loan and lease losses that were made in any amended
report(s) for the previous calendar year-end.

D
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1

Caption and Instructions

Institutions that have adopted ASU 2016-13 should report in the appropriate columns the
balances of all allowances for credit losses as reported in the Consolidated Reports of
Condition and Income for the previous calendar year-end after the effect of all corrections
and adjustments to the allowances for credit losses that were made in any amended report(s)
for the previous calendar year-end. In the year of adoption, institutions should record a zero
balance for columns B and C.

2

Recoveries. Institutions that have not adopted ASU 2016-13, report in column A Report the
amount credited to the allowance for loan and lease losses for recoveries during the calendar
year-to-date on amounts previously charged against the allowance for loan and lease losses.
The amount reported in this item must equal Schedule RI-B, Part I, item 9, column B. .
Institutions that have adopted ASU 2016-13, report in the appropriate columns the amount
credited to the allowance for credit losses for recoveries during the calendar year-to-date on
amounts previously charged against the allowance for credit losses. The amount reported in
“Loans and Leases”, column A, of this item must equal Schedule RI-B, part I, item 9,
column B.

3

LESS: Charge-offs. Institutions that have not adopted ASU 2016-13, report in column A
Report the amount of all loans and leases charged against the allowance for loan and lease
losses during the calendar year-to-date. The amount reported in this item must equal
Schedule RI-B, Part I, item 9, column A, "Total" charge-offs, less Schedule RI-B, Part II, item
4, “LESS: Write-downs arising from transfers of loans to a held-for-sale account.”

Institutions that have adopted ASU 2016-13, report in the appropriate columns the amount by
asset type charged against the allowance for credit losses during the calendar year-to-date.
The amount reported in column A of this item must equal Schedule RI-B, part I, item 9,
column A, "Total" charge-offs, less Schedule RI-B, part II, item 4, column A, “LESS: Writedowns arising from transfers of financial assets”.

4

LESS: Write-downs arising from transfers of loans to a held-for-sale account.
financial assets. Institutions that have not adopted ASU 2016-13, report in column A Report
the amount of write-downs to fair value charged against the allowance for loan and lease
losses resulting from transfers of loans and leases to a held-for-sale account during the
calendar year-to-date that occurred when:
x the reporting bank decided to sell loans and leases that were not originated or otherwise
acquired with the intent to sell, and
x the fair value of those loans and leases had declined for any reason other than a change
in the general market level of interest or foreign exchange rates.
Institutions that have adopted ASU 2016-13 report in the appropriate columns the amount of
write-downs to fair value charged against the allowance for credit losses resulting from
transfers of loans and leases to a held-for-sale account (resulting from the events described,
above), or transfers of held-to-maturity debt securities and available-for-sale debt securities

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17

FFIEC 051

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between HTM and AFS and trading accounts during the calendar year-to-date.

5

Provision for loan and lease losses. Institutions that have not adopted ASU 2016-13,
report in column A Report the amount expensed as the provision for loan and losses during
the calendar year-to-date. The provision for loan and lease losses represents the amount
needed to make the allowance for loan and lease losses adequate to absorb estimated loan
and lease losses, based upon management's evaluation of the bank's current loan and lease
exposures. The amount reported in this item must equal Schedule RI, item 4. If the amount
reported in this item is negative, report it with a minus (-) sign.

D
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FT

Institutions that have adopted ASU 2016-13 report in the appropriate column the amount
expensed as the provision for credit losses during the calendar year-to-date. The provisions
for credit losses represents the amount appropriate to absorb estimated credit losses over
the life of the financial assets reported at amortized cost within the scope of the standard.
The sum of the amounts reported in item 5, columns A through C plus Schedule RI-B,
Memoranda item 5 must equal Schedule RI, item 4. If the amount reported in this item is
negative, report it with a minus (-) sign.

6

Adjustments. If the reporting institution was acquired in a transaction that became effective
during the year-to-date reporting period, retained its separate corporate existence, and
elected to apply pushdown accounting in its separate financial statements (including its
Consolidated Reports of Condition and Income), institutions that have not adopted ASU
2016-13, report in column A of report in this item as a negative the balance of the allowance
for loan and lease losses most recently reported for the end of the previous calendar year, as
reported in Schedule RI-B, Part II, item 1, column A, above.

Institutions that have adopted ASU 2016-13, report in the appropriate columns for this item as
a negative the balance of the allowances for credit losses on financial assets that are not
determined by management to be PCD most recently reported for the end of the previous
calendar year, as reported in Schedule RI-B, part II, item 1, above. For those assets
determined by management to be PCD, the allowances for credit losses as of the acquisition
date should then be reported as a positive number in the appropriate columns for this line
item.

If the reporting institution was involved in a transaction between entities under common
control that became effective during the year-to-date reporting period and has been
accounted for in a manner similar to a pooling of interests, institutions that have not adopted
ASU 2016-13 report in column A of in this item the balance as of the end of the previous
calendar year of the allowance for loan and lease losses of the institution or other business
that combined with the reporting institution in the common control transaction. Institutions that
have adopted ASU 2016-13 should report in the appropriate columns for this item the
balance as of the end of the previous calendar year of the allowances for credit losses of the
institution or other business that combined with the reporting institution in the common control
transaction.
In addition, institutions that have adopted ASU 2016-13 include in the appropriate columns of
this line item the following:
a) Additional allowances recorded by the institutions resulting from the adoption of
ASU 2016-13.
b) Subsequent to the adoption of ASU 2016-13, the amount of allowances for credit
losses for purchased credit-deteriorated assets recorded as of their acquisition
date.

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Part II. (cont.)
Item No.

Caption and Instructions

6
(cont.)

If the amount reported in this item is negative, report it with a minus (-) sign.
State the dollar amount of and describe each transaction included in this item in
Schedule RI-E, Explanations, item 6.
Balance end of current period. Report in columns A, B, and C the sum of items 1, 2, 5, and
6, less items 3 and 4. The amount reported in column A this item must equal the amount
reported in Schedule RC, item 4.c, “Allowance for loan and lease losses.”

D
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7

Memoranda
Item No.

Caption and Instructions

1-4

Not Applicable.

NOTE: Memorandum items 5 and 6 are to be completed only by institutions that have adopted ASU
2016-13.
5

Provisions for credit losses on other financial assets measured at amortized cost (not
included in RI-B Part II, item 5, columns A through C, above). Report in this line item
provisions related to allowances for credit losses on financial assets measured at amortized
cost, included in Schedule RI, item 4, other than loans, leases, held-to-maturity debt
securities and available-for-sale debt securities.

6

Allowances for credit losses on other financial assets measured at amortized cost (not
included in RI-B Part II, item 7, columns A through C, above). Report in this line item
total allowances related to credit losses on financial assets measured at amortized cost other
than loans, leases, held-to-maturity debt securities and available-for-sale debt securities that
are associated with the provisions reported in Memorandum item 5, above.

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FFIEC 051

Item No.
3

RI-E - EXPLANATIONS

Caption and Instructions
Discontinued operations and applicable income tax effect. List and briefly describe in
items 3.a and 3.b the gross dollar amount of the results of each of the discontinued
operations included in Schedule RI, item 11, "Discontinued operations, net of applicable
income taxes," and its related income tax effect, if any. If Schedule RI, item 11, includes the
results of more than two discontinued operations, report the additional items and their related
tax effects in Schedule RI-E, item 7, below.

D
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If the results of discontinued operations are a loss, report the dollar amount with a minus (-)
sign. If an applicable income tax effect is a tax benefit (rather than a tax expense), report the
dollar amount with a minus (-) sign.

4

Cumulative effect of changes in accounting principles and corrections of material
accounting errors.

4.a

Adoption of Current Expected Credit Loss Methodology – ASU 2016-13. Report in this
item the cumulative-effect adjustment for the changes in the allowances for credit losses, net
of any related deferred tax assets, recognized in retained earnings as of the beginning of the
first reporting period in which the institution adopts ASU 2016-13, which governs the
accounting for credit losses. Exclude the gross up amounts of purchased credit impaired
assets to purchased credit deteriorated assets, which is reported in item 6 of this schedule.
Institutions that have not adopted ASU 2016-13 leave this line item blank.

4.b and 4.c List and briefly describe in items 4.a b and 4.bc the dollar amount of the cumulative effect of
each change in accounting principle and correction of a material accounting error, net of
applicable income taxes, that is included in Schedule RI-A, item 2, other than the initial
cumulative-effect adjustment for the adoption of ASU 2016-13, which would be reported in
item 4.a. in this schedule. If Schedule RI-A, item 2, includes more than two accounting
principle changes other than the initial adoption of ASU 2016-13, and accounting error
corrections, report the cumulative effect of each additional accounting principle change and
error correction in Schedule RI-E, item 7, below.
If the cumulative effect of an accounting principle change or an accounting error correction
represents a reduction of the bank's equity capital, report the dollar amount with a minus (-)
sign.

5

Other transactions with stockholders (including a parent holding company). List and
briefly describe in items 5.a and 5.b the dollar amount of each type of other transaction with
the reporting institution's stockholders, including its parent holding company, if any, that is
included in Schedule RI-A, item 11. If Schedule RI-A, item 11, includes more than two types
of other transactions, report the additional types of other transactions in Schedule RI-E,
item 7, below.
If the effect of a type of other transaction with the reporting institution’s stockholders,
including a parent holding company, if any, is to reduce the institution’s equity capital, report
the dollar amount with a minus (-) sign.

6

Adjustments to allowance for loan and leasecredit losses.

The sum of items 6.a, 6.b, 6.c and 6.d must equal the sum of Schedule RI-B, item 6, columns
A through C.
Institutions that have not adopted ASU 2016-13 leave items 6.a and 6.b blank.

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FFIEC 051

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Initial allowances for credit losses recognized upon the acquisition of purchased
credit-deteriorated assets. For institutions that have adopted ASU 2016-13, report in this
item, as a positive (+) number, the initial allowance for credit losses recognized on purchased
credit-deteriorated assets. Item 6.a is applicable both in the period in which an institution
adopts ASU 2016-13 and in any subsequent periods in which an institution acquires
purchased credit-deteriorated assets. Report only the allowance as-of the acquisition date of
the PCD assets. Any subsequent changes to the allowances on purchased creditdeteriorated assets would be reported in Schedule RI-B, Part II in line item 5.

6.b.

Effect of adoption of current expected credit losses methodology on allowances for
credit losses on loans and leases held for investment and held-to-maturity debt
securities. Report in this item the change in the amount of allowances from initially applying
ASU 2016-13 to these two categories of assets as of the effective date of the accounting
standard in the period of adoption, including the initial allowance gross-up for any purchased
credit-deteriorated assets held as of the effective date. For further information, see the
Glossary entry “Purchased Credit Deteriorated (PCD) Loans and Debt Securities.”

D
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6.a.

6.c and 6.d Institutions that have not adopted ASU 2016-13 lList and briefly describe in items 6.ac and
6.bd the dollar amount of each type of adjustment to the allowance for loan and lease losses
that is included in Schedule RI-B, Part II, item 6. If Schedule RI-B, Part II, item 6, includes
more than two types of adjustments, report the additional adjustments in Schedule RI-E, item
7, below.
Institutions that have adopted ASU 2016-13 list and briefly describe in items 6.c and 6.d the
dollar amount of each type of adjustment to the allowance for credit losses that is included in
Schedule RI-B, part II, item 6 that are not reported in items 6.a or 6.b. If Schedule RI-B, part
II, item 6, includes more than two types of adjustments that are not reported in items 6.a or
6.b, report the additional adjustments in Schedule RI-E, item 7, below.

If the effect of an adjustment is to reduce the bank's allowance for loan and lease losses,
report the dollar amount with a minus (-) sign.

7

FFIEC 051

Other explanations. In the space provided on the report form, the bank may, at its option,
list and briefly describe any other significant items relating to the Consolidated Report of
Income. The bank's other explanations must not exceed 750 characters, including
punctuation and standard spacing between words and sentences.

RI-E-4
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FFIEC 051

RC - BALANCE SHEET

Item No.

Caption and Instructions

1.a
(cont.)

(2) Noninterest-bearing balances that reflect deposit credit received by the reporting bank
because of credit or debit card sales slips that had been forwarded for collection. (Until
credit has been received, report as noncash items in process of collection in
Schedule RC-F, item 6, "All other assets.”)
(3) Amounts that the reporting bank has actually passed through to a Federal Reserve Bank
on behalf of its respondent depository institutions (see the Glossary entry for
"pass-through reserve balances" for further discussion).

D
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A
FT

Exclude from noninterest-bearing balances due from depository institutions:

(1) Balances due from Federal Reserve Banks (report as interest-bearing balances due from
depository institutions in Schedule RC, item 1.b).
(2) Deposit accounts "due to" other depository institutions that are overdrawn (report in
Schedule RC-C, Part I, item 2, "Loans to depository institutions and acceptances of other
banks").

(3) All noninterest-bearing balances that the reporting bank's trust department maintains with
other depository institutions.

1.b

Interest-bearing balances. Report all interest-bearing balances due from depository
institutions whether in the form of demand, savings, or time balances, including certificates of
deposit (CDs), even if the CDs are negotiable or have CUSIP numbers, but excluding
certificates of deposit held for trading. Include balances due from Federal Reserve Banks
(including balances maintained to satisfy reserve balance requirements, excess balances,
and term deposits), commercial banks in the U.S., other depository institutions in the U.S.,
Federal Home Loan Banks, banks in foreign countries, and foreign central banks. Include the
fair value of interest-bearing balances due from depository institutions that are accounted for
at fair value under a fair value option.
Exclude from interest-bearing balances:

(1) Loans to depository institutions and acceptances of other banks (report in
Schedule RC-C, Part I, item 2).

(2) All interest-bearing balances that the reporting bank's trust department maintains with
other depository institutions.
(3) Certificates of deposit held for trading (report in Schedule RC, item 5).

(4) Investments in money market mutual funds, which, for purposes of these reports, are to
be reported as investments in equity securities.

2

Securities:

2.a

Held-to-maturity securities. Report the amount from Schedule RC-B, item 8, column A,
"Total amortized cost."

Institutions that have adopted ASU 2016-13, which governs the accounting for credit losses,
report the amortized cost net of any applicable allowance for credit losses. The amount
reported in Schedule RC, item 2.a, must equal the amount reported in Schedule RC-B, item
8, column A, "Total amortized cost" less the amount of the allowances for credit losses
reported in Schedule RI-B, Part II, item 7, column B, ”Balance end of current period.”

2.b
FFIEC 

Available-for-sale securities. Report the amount from Schedule RC-B, item 8, column D,
RC - 

RC-%$/$1&(6+((7

(3-19)
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RC - BALANCE SHEET

Item No.

Caption and Instructions

3.b
(cont.)

Report securities purchased under agreements to resell on a gross basis, i.e., do not net
them against securities sold under agreements to repurchase, except to the extent permitted
under ASC Subtopic 210-20, Balance Sheet – Offsetting (formerly FASB Interpretation
No. 41, “Offsetting of Amounts Related to Certain Repurchase and Reverse Repurchase
Agreements”). Include the fair value of securities purchased under agreements to resell that
are accounted for at fair value under a fair value option.

D
R
A
FT

Institutions that have adopted ASU 2016-13, which governs the accounting for credit losses,
report the amount in this line item net of any applicable allowance for credit losses. For
further information, see the Glossary entry for “Allowance for credit losses.”

Exclude from this item:

(1) Resale agreements involving assets other than securities (report in Schedule RC,
item 3.a, "Federal funds sold," or item 4.b, "Loans and leases held for investment,"
as appropriate, depending on the maturity and office location of the transaction).

(2) Due bills representing purchases of securities or other assets by the reporting bank that
have not yet been delivered and similar instruments, whether collateralized or
uncollateralized (report in Schedule RC, item 4.b). See the Glossary entry for "due bills."
(3) So-called yield maintenance dollar repurchase agreements (see the Glossary entry for
"repurchase/resale agreements").

For further information, see the Glossary entry for "repurchase/resale agreements."

4

Loans and lease financing receivables. Report in the appropriate subitem loans and
leases held for sale and loans and leases that the reporting bank has the intent and ability to
hold for the foreseeable future or until maturity or payoff, i.e., held for investment. The sum of
Schedule RC, items 4.a and 4.b, must equal Schedule RC-C, Part I, item 12.

4.a

Loans and leases held for sale. Report the amount of loans and leases held for sale.
Loans and leases held for sale should be reported at the lower of cost or fair value except for
those loans held for sale that the bank has elected to account for at fair value under a fair
value option, which should be reported in this item at fair value. For loan and leases held for
sale that are reported at the lower of cost or fair value, the amount by which cost exceeds fair
value, if any, shall be accounted for as a valuation allowance within this item. No allowance
for loan and lease losses should be included in Schedule RC, item 4.c, for loans and leases
held for sale. All loans and leases reported in this item must also be reported by loan
category in Schedule RC-C, Part I.
Institutions that have adopted ASU 2016-13, which governs the accounting for credit losses,
should not include any allowance for credit losses in Schedule RC, item 4.c, for loans and
leases held for sale.

4.b

Loans and leases held for investment. Report the amount of loans and leases that
the reporting bank has the intent and ability to hold for the foreseeable future or until maturity
or payoff, i.e., loans held for investment. Include loans held for investment that the bank has
elected to account for at fair value under a fair value option, which should be reported in this
item at fair value. All loans and leases reported in this item must also be reported by loan
category in Schedule RC-C, Part I.

4.c

Less: Allowance for loan and lease losses. Report the allowance for loan and lease

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losses as determined in accordance with the instructions in the Glossary entry for "allowance
for loan and lease losses." Institutions that have adopted ASU 2016-13, which governs the
accounting for credit losses, report the allowance for credit losses. For further information,
see the Glossary entry for “allowance for credit losses.” Also include in this item any allocated
transfer risk reserve related to loans and leases held for investment that the reporting bank is
required to establish and maintain 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, Part 347 of the FDIC’s Rules and Regulations, and Subpart C
of Part 28 of the Comptroller of the Currency’s Regulations), and in any guidelines, letters, or
instructions issued by the DJHQFLHV7KLVLWHPPXVWHTXDO5HSRUWRI,QFRPH6FKHGXOH5,%
3DUW,,LWHPFROXPQ$³%DODQFHHQGRIFXUUHQWSHULRG

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Item No.

Caption and Instructions

26.a
(cont.)

Exclude from retained earnings:
(1) Any portion of the proceeds received from the sale of common stock in excess of its par
or stated value (report in Schedule RC, item 25).
(2) Any portion of the proceeds received from the sale of preferred stock in excess of its par
or stated value (report in Schedule RC, item 19 or 23, as appropriate).

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(3) "Reserves" that reduce the related asset balances such as valuation allowances (e.g.,
the allowance for loan and lease losses, or for institutions that have adopted ASU 201613, the allowances for credit losses), reserves for depreciation, and reserves for bond
premiums.

26.b

Accumulated other comprehensive income. Report the accumulated balance of other
comprehensive income as of the report date in accordance with ASC Subtopic 220-10,
Comprehensive Income – Overall (formerly FASB Statement No. 130, “Reporting
Comprehensive Income”), net of applicable income taxes, if any. “Other comprehensive
income” refers to revenues, expenses, gains, and losses that under generally accepted
accounting principles are included in comprehensive income but excluded from net income.
Items of accumulated other comprehensive income include:

(1) Net unrealized holding gains (losses) on available-for-sale securities (including debt
securities transferred into the available-for-sale category from the held-to-maturity
category), i.e., the difference between the amortized cost and the fair value of the
reporting bank's available-for-sale securities (excluding any available-for-sale securities
previously written down as other-than-temporarily impaired, or for institutions that have
adopted ASU 2016-13 any allowance for credit losses). 1 For most institutions, all
"securities," as that term is defined in ASC Topic 320, Investments-Debt Securities
(formerly FASB Statement No. 115, “Accounting for Certain Investments in Debt and
Equity Securities”), that are designated as "available-for-sale" will be reported as
"Available-for-sale securities" in Schedule RC, item 2.b, and in Schedule RC-B, columns
C and D. However, an institution may have certain assets that fall within the definition of
"securities" in ASC Topic 320 (e.g., nonrated industrial development obligations) that it
has designated as "available-for-sale" and reports in a balance sheet category other than
"Securities" (e.g., "Loans and lease financing receivables") for purposes of the
Report of Condition. These "available-for-sale" assets must be carried on the Report of
Condition balance sheet at fair value rather than amortized cost and the difference
between these two amounts, net of tax effects, also must be included in this item.

1

For example, if the fair value of the reporting institution's available-for-sale securities exceeds the amortized cost of
its available-for-sale securities by $100,000 (and the institution has had no other transactions affecting the "net
unrealized holding gains (losses)" account), the amount to be included in Schedule RC, item 26.b, must be reduced
by the estimated amount of taxes using the institution's applicable tax rate (federal, state and local). (See the
Glossary entry for "income taxes" for a discussion of "applicable tax rate.") If the institution's applicable tax rate
(federal, state and local) is 40% and the tax basis of its available-for-sale securities approximates their amortized
cost, the institution would include "net unrealized holding gains" of $60,000 [$100,000 - (40% x $100,000)] in
Schedule RC, item 26.b. The institution would also have a deferred tax liability of $40,000 that would enter into the
determination of the amount of net deferred tax assets or liabilities to be reported in Schedule RC-F, item 2, or
Schedule RC-G, item 2.
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Item No.

Caption and Instructions

26.b
(cont.)

(2) The unamortized balance of the unrealized holding gain (loss) that existed at the date of
transfer of a debt security transferred into the held-to-maturity category from the
available-for-sale category. Consistent with ASC Topic 320, when a debt security is
transferred from the available-for-sale category into the held-to-maturity category, the
unrealized holding gain (loss) at the date of transfer continues to be reported in the
accumulated other comprehensive income account, but must be amortized over the
remaining life of the security as an adjustment of yield in a manner consistent with the
amortization of any premium or discount.

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(3) The unaccreted portion of other-than-temporary impairment losses on available-for-sale
and held-to-maturity debt securities that was not recognized in earnings in accordance
with ASC Topic 320, plus the accumulated amount of subsequent decreases (if not otherthan-temporary impairment losses) or increases in the fair value of available-for-sale debt
securities previously written down as other-than-temporarily impaired.
Institutions that have adopted ASU 2016-13, include the unaccreted portion of unrealized
losses on available-for-sale and held-to-maturity debt securities that was not recognized
in earnings in accordance with ASC Topic 320, plus the accumulated amount of
subsequent increases or decreases (not attributable to credit impairment) in the fair value
of available-for sale debt securities, or increases in the fair value after a write-down that
resulted from the intent to sell or a more likely-than-not requirement.

(4) Accumulated net gains (losses) on derivative instruments that are designated and qualify
as cash flow hedges,2 i.e., the effective portion3 of the accumulated change in fair value
(gain or loss) on derivative instruments designated and qualifying as cash flow hedges in
accordance with ASC Topic 815, Derivatives and Hedging (formerly FASB Statement
No. 133, “Accounting for Derivative Instruments and Hedging Activities,” as amended).

Under ASC Topic 815, an institution that elects to apply hedge accounting must exclude
from net income the effective portion of the change in fair value of a derivative designated
and qualifying as a cash flow hedge and record it on the balance sheet in the
accumulated other comprehensive income component of equity capital. The ineffective
portion of the change in fair value of the derivative designated and qualifying as a cash
flow hedge must be reported in earnings. The component of accumulated other
comprehensive income associated with a transaction hedged in a cash flow hedge
should be adjusted each reporting period to a balance that reflects the lesser (in absolute
amounts) of:
(a) The cumulative gain (loss) on the derivative from inception of the hedge, less
(i) amounts excluded consistent with the institution's defined risk management
strategy and (ii) the derivative's gains (losses) previously reclassified from
accumulated other comprehensive income into earnings to offset the hedged
transaction, or

2

Generally, the objective of a cash flow hedge is to link a derivative to an existing recognized asset or liability or a
forecasted transaction with exposure to variability in expected future cash flows, e.g., the future interest payments
(receipts) on a variable-rate liability (asset) or a forecasted purchase (sale). The changes in cash flows of the
derivative are expected to offset changes in cash flows of the hedged item or transaction. To achieve the matching of
cash flows, ASC Topic 815 requires that the effective portion of changes in the fair value of derivatives designated
and qualifying as cash flow hedges initially be reported in the accumulated other comprehensive income component
of equity capital and subsequently be reclassified into earnings in the same future period or periods that the hedged
transaction affects earnings.

3

The effective portion of a cash flow hedge can be described as the change in fair value of the derivative that

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RC-B - SECURITIES

Item No.

Caption and Instructions

7
(cont.)

Exclude from investments in mutual funds and other equity securities with readily
determinable fair values:
(1) Federal Reserve Bank stock (report as an equity security without a readily determinable
fair value in Schedule RC-F, item 4).
(2) Federal Home Loan Bank stock (report as an equity security without a readily
determinable fair value in Schedule RC-F, item 4).

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(3) Common and preferred stocks that do not have readily determinable fair values, such as
stock of bankers' banks and Class B voting common stock of the Federal Agricultural
Mortgage Corporation (Farmer Mac) (report in Schedule RC-F, item 4).

(4) Preferred stock that by its terms either must be redeemed by the issuing enterprise or is
redeemable at the option of the investor (i.e., redeemable or limited-life preferred stock),
including trust preferred securities subject to mandatory redemption (report such
preferred stock as an other debt security in Schedule RC-B, item 6, above).

(5) "Restricted stock," i.e., equity securities for which sale is restricted by governmental or
contractual requirement (other than in connection with being pledged as collateral),
except if that requirement terminates within one year or if the holder has the power by
contract or otherwise to cause the requirement to be met within one year (if the restriction
does not terminate within one year, report "restricted stock" as an equity security that
does not have a readily determinable fair value in Schedule RC-F, item 4).

(6) Participation certificates issued by a Federal Intermediate Credit Bank, which represent
nonvoting stock in the bank (report as an equity security that does not have a readily
determinable fair value in Schedule RC-F, item 4).

(7) Minority interests held by the reporting bank in any companies not meeting the definition
of associated company (report as equity securities that do not have a readily
determinable fair value in Schedule RC-F, item 4), except minority holdings that indirectly
represent bank premises (report in Schedule RC, item 6) or other real estate owned
(report in Schedule RC, item 7), provided that the fair value of any capital stock
representing the minority interest is not readily determinable. (See the Glossary entry for
"subsidiaries" for the definition of associated company.)
(8) Equity holdings in those corporate joint ventures over which the reporting bank does not
exercise significant influence (report as equity securities that do not have a readily
determinable fair value in Schedule RC-F, item 4), except equity holdings that indirectly
represent bank premises (report in Schedule RC, item 6) or other real estate owned
(report in Schedule RC, item 7). (See the Glossary entry for "subsidiaries" for the
definition of corporate joint venture.)

(9) Holdings of capital stock of and investments in unconsolidated subsidiaries, associated
companies, and those corporate joint ventures over which the reporting bank exercises
significant influence (report in Schedule RC, item 8, "Investments in unconsolidated
subsidiaries and associated companies").

8

Total. Report the sum of items 1 through 7. The total of column A for this item must equal
Schedule RC, item 2.a, "Held-to-maturity securities." The total of column D for this item must
equal Schedule RC, item 2.b, "Available-for-sale securities."
For institutions that have adopted ASU 2016-13, which governs the accounting for credit
losses, the total of column A for this item must equal Schedule RC, item 2.a, "Held-tomaturity securities" plus Schedule RI-B, Part II, item 7, column B, “Balance end of current

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Caption and Instructions
period” and the total of column D for this item must equal Schedule RC, item 2.b, "Availablefor-sale securities."

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Item No.
8
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RC-C - LOANS AND LEASES

General Instructions for Part I (cont.)

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Report loans and leases held for investment in this schedule without any deduction for loss allowances
for loans and leases or for institutions that have adopted ASU 2016-13, which governs the accounting for
credit losses, allowances for credit losses on loans and leases or allocated transfer risk reserves related
to loans and leases, which are to be reported in Schedule RC, item 4.c, "Allowance for loan and lease
losses." Each item in this schedule should be reported net of (1) unearned income (to the extent
possible) and (2) deposits accumulated for the payment of personal loans (hypothecated deposits). Net
unamortized loan fees represent an adjustment of the loan yield, and shall be reported in this schedule in
the same manner as unearned income on loans, i.e., deducted from the related loan balances (to the
extent possible) or deducted from total loans in Schedule RC-C, Part I, item 11, "LESS: Any unearned
income on loans reflected in items 1-9 above." Net unamortized direct loan origination costs shall be
added to the related loan balances in each item in this schedule. (See the Glossary entry for "loan fees"
for further information.)
For institutions that have adopted ASU 2016-13, report unearned income on “purchased creditdeteriorated assets” in accordance with the instructions above.

For institutions that have not adopted ASU 2016-13,"pPurchased credit-impaired loans" are loans
accounted for in accordance with ASC Subtopic 310-30, Receivables – Loans and Debt Securities
Acquired with Deteriorated Credit Quality (formerly AICPA Statement of Position 03-3, "Accounting for
Certain Loans or Debt Securities Acquired in a Transfer"), that a bank has purchased, including those
acquired in a purchase business combination, where there is evidence of deterioration of credit quality
since the origination of the loan and it is probable, at the purchase date, that the bank will be unable to
collect all contractually required payments receivable. Neither the accretable yield nor the nonaccretable
difference associated with purchased credit-impaired loans should be reported as unearned income in
Schedule RC-C, Part I, item 11. In addition, the nonaccretable difference must not be recognized as an
adjustment of yield, loss accrual, or valuation allowance.

If, as a result of a change in circumstances, the bank regains control of a loan previously accounted
for appropriately as having been sold because one or more of the conditions for sale accounting in
ASC Topic 860 are no longer met, such a change should be accounted for in the same manner as a
purchase of the loan from the former transferee (purchaser) in exchange for liabilities assumed. The
rebooked loan must be reported as a loan asset in Schedule RC-C, Part I, either as a loan held for sale or
a loan held for investment, based on facts and circumstances, in accordance with generally accepted
accounting principles. This accounting and reporting treatment applies, for example, to U.S.
Government-guaranteed or -insured residential mortgage loans backing Government National Mortgage
Association (GNMA) mortgage-backed securities that a bank services after it has securitized the loans in
a transfer accounted for as a sale. If and when individual loans later meet delinquency criteria specified
by GNMA, the loans are eligible for repurchase, the bank is deemed to have regained effective control
over these loans, and the delinquent loans must be brought back onto the bank's books as loan assets.

All loans should be categorized in Schedule RC-C, Part I, according to security, borrower, or purpose.
All loans satisfying the criteria in the Glossary entry for “Loan secured by real estate” (except those to
states and political subdivisions in the U.S.) should be categorized as “Loans secured by real estate” in
Schedule RC-C, part I. Loans secured by other collateral, such as securities, inventory, or automobiles,
would require further examination of both purpose and borrower to properly categorize the loans in
Schedule RC-C, part I. For loan categories in Schedule RC-C, part I, that include certain loans to
individuals, the term “individual” may include a trust or other entity that acts on behalf of (or in place of) an
individual or a group of individuals for purposes of obtaining the loan. Loans covering two or more
categories are sometimes difficult to categorize. In such instances, categorize the entire loan according
to the major criterion.
Report in Schedule RC-C, Part I, all loans and leases on the books of the reporting bank even if on the
report date they are past due and collection is doubtful. Exclude any loans or leases the bank has sold or
charged off. Also exclude assets received in full or partial satisfaction of a loan or lease (unless the asset
received is itself reportable as a loan or lease) and any loans for which the bank has obtained physical
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Part I. (cont.)
Memoranda
Item No.

Caption and Instructions

NOTE: Memorandum items 7.a. and 7.b. are to be completed only by institutions that have not adopted
ASU 2016-13 and are to be reported semiannually in the June and December reports only. Institutions
that have adopted ASU 2016-13 should leave these two items blank.
Purchased credit-impaired loans held for investment accounted for in accordance with
FASB ASC Subtopic 310-30. Report in the appropriate subitem the outstanding balance
and amount of "purchased credit-impaired loans" reported as held for investment in
Schedule RC-C, Part I, items 1 through 9, and accounted for in accordance with ASC
Subtopic 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit
Quality (formerly AICPA Statement of Position 03-3, “Accounting for Certain Loans or Debt
Securities Acquired in a Transfer”). Purchased credit-impaired loans are loans that a bank
has purchased, including those acquired in a purchase business combination, where there is
evidence of deterioration of credit quality since the origination of the loan and it is probable, at
the purchase date, that the bank will be unable to collect all contractually required payments
receivable. Loans held for investment are those that the bank has the intent and ability to
hold for the foreseeable future or until maturity or payoff.

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7

7.a

Outstanding balance. Report the outstanding balance of all purchased credit-impaired
loans reported as held for investment in Schedule RC-C, Part I, items 1 through 9. The
outstanding balance is the undiscounted sum of all amounts, including amounts deemed
principal, interest, fees, penalties, and other under the loan, owed to the bank at the report
date, whether or not currently due and whether or not any such amounts have been charged
off by the bank. However, the outstanding balance does not include amounts that would be
accrued under the contract as interest, fees, penalties, and other after the report date.

7.b

Amount included in Schedule RC-C, Part I, items 1 through 9. Report the amount of,
i.e., the recorded investment in, all purchased credit-impaired loans reported as held for
investment. The recorded investment in these loans will have been included in
Schedule RC-C, Part I, items 1 through 9.

8

Closed-end loans with negative amortization features secured by 1-4 family residential
properties. Report in the appropriate subitem the amount of closed-end loans with negative
amortization features secured by 1-4 family residential properties and, if certain criteria are
met, the maximum remaining amount of negative amortization contractually permitted on
these loans and the total amount of negative amortization included in the amount of these
loans. Negative amortization refers to a method in which a loan is structured so that the
borrower’s minimum monthly (or other periodic) payment is contractually permitted to be less
than the full amount of interest owed to the lender, with the unpaid interest added to the
loan’s principal balance. The contractual terms of the loan provide that if the borrower allows
the principal balance to rise to a pre-specified amount or maximum cap, the loan payments
are then recast to a fully amortizing schedule. Negative amortization features may be applied
to either adjustable rate mortgages or fixed rate mortgages, the latter commonly referred to
as graduated payment mortgages (GPMs).
Exclude reverse 1-4 family residential mortgage loans as described in the instructions for
Schedule RC-C, Part I, item 1.c.

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Part I. (cont.)
Memoranda
Item No.

Caption and Instructions

NOTE: Memorandum item 12 is to be completed semiannually in the June and December reports only.
Loans (not subject to the requirements of FASB ASC 310-30 (former AICPA Statement
of Position 03-3)) and leases held for investment that were acquired in business
combinations with acquisition dates in the current calendar year. Report in the
appropriate column the specified information on loans and leases held for investment
purposes that were acquired in a business combination, as prescribed under ASC Topic 805,
Business Combinations (formerly FASB Statement No. 141(R), “Business Combinations”),
with an acquisition date in the current calendar year. The acquisition date is the date on
which the bank obtains control1 of the acquiree. If the reporting bank was acquired in a
transaction during the calendar year pursuant to ASC Topic 805 and push down accounting
was applied, report the specified information on the bank’s loans and leases reported as held
for investment after the application of push down accounting.

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12

Loans and leases acquired in the current calendar year should be reported in this item in the
reports for June 30 and December 31 of the current calendar year, as appropriate, regardless
of whether the bank still holds the loans and leases. For example, loans and leases acquired
in a business combination with an acquisition date in the first six months ot the current
calendar year should be reported in this item in both the June 30 and December 31 reports
for the current calendar year; loans and leases acquired in the second six months of the
current calendar year should be reported in the December 31 report for the current calendar
year.

Exclude purchased credit-impaired loans held for investment that are accounted for in
accordance with ASC Subtopic 310-30, Receivables – Loans and Debt Securities Acquired
with Deteriorated Credit Quality (formerly AICPA Statement of Position 03-3, “Accounting for
Certain Loans or Debt Securities Acquired in a Transfer”) (report information on such loans in
Schedule RC-C, Memorandum item 7). For further information, see the Glossary entry for
“purchased credit-impaired loans and debt securities.”)

For institutions that have adopted ASU 2016-13, which governs the accounting for credit
losses, exclude purchased credit-deteriorated loans held for investment. For further
information, see the Glossary entries for “Purchased Credit Deteriorated (PCD) Loans and
Debt Securities.”
(For further information, see the Glossary entry for “purchased credit-impaired loans and debt
securities.”)
Column Instructions

Column A, Fair value of acquired loans and leases at acquisition date: Report in this
column the total fair value of acquired loans and leases held for investment at the acquisition
date (see the Glossary entry for "fair value").
For institutions that have adopted ASU 2016-13, report the purchase price in column A.

Column B, Gross contractual amounts receivable at acquisition date: Report in this
column the gross contractual amounts receivable, i.e., the total undiscounted amount of all
uncollected contractual principal and contractual interest payments on the receivable, both
past due, if any, and scheduled to be paid in the future, on the acquired loans and leases
held for investment at the acquisition date.

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Item No.

Caption and Instructions


FRQW

For institutions that have adopted ASU 2016-13, report the expected cash flows of the
acquired loans and leases as of the acquisition date in column B.

Column C, Best estimate at acquisition date of contractual cash flows not expected to
be collected: Report in this column the bank’s best estimate at the acquisition date of the
portion of the gross contractual cash flows receivable on acquired loans and leases held for
investment that the bank does not expect to collect.

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For institutions that have adopted ASU 2016-13, report the allowance for credit losses an
institution would have recorded as of the acquisition date, column C.

1

Control has the meaning of “controlling financial interest” in ASC Subtopic 810-10, Consolidation – Overall
(formerly Accounting Research Bulletin No. 51, “Consolidated Financial Statements,” as amended).

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RC-F - OTHER ASSETS

SCHEDULE RC-F – OTHER ASSETS
Item Instructions
Item No.

Caption and Instructions

Institutions that have adopted ASU 2016-13, which governs the accounting for credit losses, report assets
on Schedule RC-F net of any applicable allowance for credit losses.

Accrued interest receivable. Report the amount of interest earned or accrued on earning
assets and applicable to current or prior periods that has not yet been collected.

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1

Exclude retained interests in accrued interest receivable related to securitized credit cards
(report in Schedule RC-F, item 6, "All other assets").

Institutions that have adopted ASU 2016-13, report amounts in this line item net of any
applicable allowances for credit losses. Exclude accrued interest receivable on interestbearing assets that is reported elsewhere on the balance sheet.

2

Net deferred tax assets. Report the net amount after offsetting deferred tax assets (net of
valuation allowance) and deferred tax liabilities measured at the report date for a particular tax
jurisdiction if the net result is a debit balance. If the result for a particular tax jurisdiction is a net
credit balance, report the amount in Schedule RC-G, item 2, "Net deferred tax liabilities." If the
result for each tax jurisdiction is a net credit balance, enter a zero in this item. (A bank may
report a net deferred tax debit, or asset, for one tax jurisdiction, such as for federal income tax
purposes, and also report at the same time a net deferred tax credit, or liability, for another tax
jurisdiction, such as for state or local income tax purposes.)
For further information on calculating deferred taxes for different tax jurisdictions, see the
Glossary entry for "income taxes."

3

Interest-only strips receivable (not in the form of a security). Report the fair value of
interest-only strips receivable (not in the form of a security) on mortgage loans and all other
financial assets.

As defined in ASC Topic 860, Transfers and Servicing (formerly FASB Statement No. 140,
“Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities,”
as amended), an interest-only strip receivable is the contractual right to receive some or all of
the interest due on a bond, mortgage loan, collateralized mortgage obligation, or other interestbearing financial asset. This includes, for example, contractual rights to future interest cash
flows that exceed contractually specified servicing fees on financial assets that have been sold.
Report in the appropriate subitem interest-only strips receivable not in the form of a security
that are measured at fair value like available-for-sale securities.1 Report unrealized gains
(losses) on these interest-only strips receivable in Schedule RC, item 26.b, "Accumulated other
comprehensive income."
Exclude from this item interest-only strips receivable in the form of a security, which should be
reported as available-for-sale securities in Schedule RC, item 2.b, or as trading assets in
Schedule RC, item 5, as appropriate. Also exclude interest-only strips not in the form of a
security that are held for trading, which should be reported in Schedule RC, item 5.

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Item No.
5.a

RC-F - OTHER ASSETS

Caption and Instructions
General account life insurance assets. Report the amount of the bank’s holdings of life
insurance assets associated with general account insurance policies. In a general account
life insurance policy, the general assets of the insurance company issuing the policy support
the policy’s cash surrender value.
Also include the portion of the carrying value of:

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(1) Separate account policies that represents general account claims on the insurance
company, such as realizable deferred acquisition costs and mortality reserves; and
(2) Hybrid account policies that represents general account claims on the insurance
company, such as any shortfall in the value of the separate account assets supporting
the cash surrender value of the policies.

5.b

Separate account life insurance assets. Report the amount of the bank’s holdings of life
insurance assets associated with separate account insurance policies. In a separate account
policy, the policy’s cash surrender value is supported by assets segregated from the general
assets of the insurance carrier. Under such an arrangement, the policyholder neither owns
the underlying separate account created by the insurance carrier on its behalf nor controls
investment decisions in the underlying account, but does assume all investment and price
risk.

Separate accounts are employed by life insurers to meet specific investment objectives of
policyholders. The accounts are often maintained as separate accounting and reporting
entities for pension plans as well as fixed benefit, variable annuity, and other products.
Investment income and investment gains and losses generally accrue directly to such
policyholders and are not accounted for on the general accounts of the insurer. On the books
of the insurer, the carrying values of separate account assets and liabilities usually
approximate each other with little associated capital. Because they are legally segregated,
the assets of each separate account are not subject to claims on the insurer that arise out of
any other business of the insurance company.

5.c

Hybrid account life insurance assets. Report the amount of the bank’s holdings of life
insurance assets associated with hybrid account insurance policies. A hybrid account
insurance policy combines features of both general and separate account insurance
products. Similar to a general account life insurance policy, a hybrid policy offers a
guaranteed minimum crediting rate, does not carry market value risk, and does not require
stable value protection. However, like a separate account life insurance policy, a hybrid
policy’s cash surrender value is supported by assets segregated from the general assets of
the insurance carrier. Because they are legally segregated, the assets of each separate
account are not subject to claims on the insurer that arise out of any other business of the
insurance company. Additionally, the bank holding the hybrid account life insurance policy is
able to select the investment strategy in which the insurance premiums are invested. Under
such an arrangement, the policyholder neither owns the underlying separate account created
by the insurance carrier on its behalf nor controls investment decisions in the underlying
account.

NOTE: Items 6.a through 6.j are to be completed semiannually in the June and December reports only.
6

FFIEC 051

All other assets. Report the amount of all other assets (other than those reported in
Schedule RC-F, items 1, 2, 3, 4, and 5, above) that cannot properly be reported in
Schedule RC, items 1 through 10.

RC-F-5

RC-F - OTHER ASSETS

(6-18)
(3-19)
34

FFIEC 051

Item No.

Caption and Instructions
Institutions that have adopted ASU 2016-13 report financial assets included within this line
item net of any applicable allowances for credit losses.

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FRQW

RC-F - OTHER ASSETS

FFIEC 051

RC-F-6

RC-F - OTHER ASSETS

(6-18)
(3-19)
35

FFIEC 051

RC-G - OTHER LIABILITIES

SCHEDULE RC-G – OTHER LIABILITIES
Item Instructions
Item No.

Interest accrued and unpaid on deposits. Report the amount of interest on deposits
accrued through charges to expense during the current or prior periods, but not yet paid or
credited to a deposit account. For savings banks, include in this item "dividends" accrued
and unpaid on deposits.

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1.a

Caption and Instructions

1.b

Other expenses accrued and unpaid. Report the amount of income taxes, interest on
nondeposit liabilities, and other expenses accrued through charges to expense during the
current or prior periods, but not yet paid. Exclude interest accrued and unpaid on deposits
(report such accrued interest in Schedule RC-G, item 1.a above).

2

Net deferred tax liabilities. Report the net amount after offsetting deferred tax assets (net of
valuation allowance) and deferred tax liabilities measured at the report date for a particular tax
jurisdiction if the net result is a credit balance. If the result for a particular tax jurisdiction is a
net debit balance, report the amount in Schedule RC-F, item 2, "Net deferred tax assets." If
the result for each tax jurisdiction is a net debit balance, enter a zero in this item. (A bank
may report a net deferred tax debit, or asset, for one tax jurisdiction, such as for federal
income tax purposes, and also report at the same time a net deferred tax credit, or liability, for
another tax jurisdiction, such as for state or local income tax purposes.)
For further information on calculating deferred taxes for different tax jurisdictions, see the
Glossary entry for "income taxes."

3

Allowance for credit losses on off-balance sheet credit exposures. Report the amount of
any allowance for credit losses on off-balance sheet exposures established in accordance
with generally accepted accounting principles.
Institutions that have adopted ASU 2016-13 exclude credit losses on off-balance sheet credit
exposures that are unconditionally cancellable.

NOTE: Items 4.a through 4.g are to be completed semiannually in the June and December reports only.
4

All other liabilities. Report the amount of all other liabilities (other than those reported in
Schedule RC-G, items 1, 2, and 3, above) that cannot properly be reported in Schedule RC,
items 13 through 19.

Disclose in items 4.a through 4.g each component of all other liabilities, and the dollar amount
of such component, that is greater than $100,000 and exceeds 25 percent of the amount
reported for this item.
For each component of all other liabilities that exceeds this disclosure threshold for which a
preprinted caption has not been provided in Schedule RC-G, items 4.a through 4.d, describe
the component with a clear but concise caption in Schedule RC-G, items 4.e through 4.g.
These descriptions should not exceed 50 characters in length (including spacing between
words).
Include as all other liabilities:

FFIEC 051

RC-G-1
(3-17)
(3-19)

RC-G - OTHER LIABILITIES

36

FFIEC 051

RC-K – AVERAGES

SCHEDULE RC-K – QUARTERLY AVERAGES
General Instructions

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Report for the items on this schedule the average of the balances as of the close of business for each day
for the calendar quarter or an average of the balances as of the close of business on each Wednesday
during the calendar quarter. For days that an office of the bank (or any of its consolidated subsidiaries or
branches) is closed (e.g., Saturdays, Sundays, or holidays), use the amount outstanding from the
previous business day. An office is considered closed if there are no transactions posted to the general
ledger as of that date.
If the reporting institution was the acquirer in a business combination accounted for under the acquisition
method for which the acquisition date was during the calendar quarter, the quarterly averages for the
reporting institution should include in the numerator:
x

x

Dollar amounts for the reporting institution for each day (or each Wednesday) from the beginning of
the quarter until the acquisition date and
Dollar amounts for the reporting institution and the acquired institution or business for each day (or
each Wednesday) from the acquisition date through the end of the quarter

and should include in the denominator the number of days (or Wednesdays) in the entire quarter.

If the reporting institution was acquired in a transaction that became effective during the calendar quarter,
retained its separate corporate existence, and elected to apply pushdown accounting in its separate
financial statements (including the Consolidated Reports of Condition and Income), the quarterly
averages for the reporting institution should include only the dollar amounts for each day (or each
Wednesday) from the acquisition date to the end of the quarter in the numerator and the number of days
(or Wednesdays) from the acquisition date through the end of the quarter in the denominator.

If the reporting institution was involved in a transaction between entities under common control that
became effective during the calendar quarter and has been accounted for in a manner similar to a pooling
of interests, the quarterly averages for the reporting institution should include dollar amounts for both the
reporting institution and the institution or business that was combined in the transaction for each day (or
each Wednesday) from the beginning to the end of the quarter in the numerator and the number of days
(or Wednesdays) in the entire quarter in the denominator.
For further information on business combinations, pushdown accounting, and transactions between
entities under common control, see the Glossary entry for "business combinations."

If the bank began operating during the calendar quarter, the quarterly averages for the bank should
include only the dollar amounts for the days (or Wednesdays) since the bank began operating in the
numerator and the number of days (or Wednesdays) since the bank began operating in the denominator.
For all banks, the loan categories specified in item 6 of this schedule correspond to the loan category
definitions for Schedule RC-C, Part I, Loans and Leases.
Institutions that have adopted ASU 2016-13, which governs the accounting for credit losses, exclude
allowances for credit losses from the related amortized cost amounts when calculating the quarterly
averages for all debt securities.

FFIEC 051

RC-K-1
(6-18)
(3-19)

RC-K – AVERAGES

37

FFIEC 051

RC-N - PAST DUE

SCHEDULE RC-N – PAST DUE AND NONACCRUAL LOANS, LEASES,
AND OTHER ASSETS
General Instructions

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Report on a fully consolidated basis all loans, leases, debt securities, and other assets that are past due
or are in nonaccrual status, regardless of whether such credits are secured or unsecured and regardless
of whether such credits are guaranteed or insured by the U.S. Government or by others. For assets that
are past due or in nonaccrual status, report the balance sheet amount of the asset in Schedule RC-N,
i.e., the amount at which the asset is reported in the applicable asset category on Schedule RC, Balance
Sheet (e.g., in item 4.b, “Loans and leases held for investment”), not simply the asset’s delinquent
payments.

Institutions that have adopted ASU 2016-13, ASC Subtopic 326, “Financial Instruments – Credit Losses”
that supersedes ASC Subtopic 310-30, “Accounting for Purchased Loans with Deteriorated Credit
Quality”, for assets that are past due or in nonaccrual status, report the balance sheet amount of the
asset without any deductions for any applicable allowance for credit losses in Schedule RC-N, not simply
the asset’s delinquent payments. For example, the amount of a loan that is reported in Schedule RC-N
should equal the amount that is reported on Schedule RC, Balance Sheet, item 4.b, “Loans and leases
held for investment,” and the amount of a held-to-maturity security that is reported in item 10, “Debt
securities and other assets (exclude other real estate owned and other repossessed assets)” on
Schedule RC-N should equal the asset amount reported on Schedule RC, Balance Sheet, item 2.a,
“Held-to-maturity securities” plus Schedule RI-B, Part II, item 7, column B, “Balance end of current
period”.
Loan amounts should be reported net of unearned income to the extent that they are reported net of
unearned income in Schedule RC-C. All lease, debt security, and other asset amounts must be reported
net of unearned income.

For purposes of these reports, “GNMA loans” are residential mortgage loans insured or guaranteed by
the Federal Housing Administration (FHA), the Department of Agriculture Rural Development (RD)
program (formerly the Farmers Home Administration (FmHA)), or the Department of Veterans Affairs (VA)
or guaranteed by the Secretary of Housing and Urban Development and administered by the Office of
Public and Indian Housing (PIH) that back Government National Mortgage Association (GNMA)
securities. When an institution services GNMA loans after it has securitized the loans in a transfer
accounted for as a sale, ASC Topic 860, Transfers and Servicing (formerly FASB Statement No. 140,
“Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities,” as
amended) requires the institution to bring individual delinquent GNMA loans that it previously accounted
for as sold back onto its books as loan assets when, under the GNMA Mortgage-Backed Securities
Guide, the loan meets GNMA's specified delinquency criteria and is eligible for repurchase. This
rebooking of GNMA loans is required regardless of whether the institution, as seller-servicer, intends to
exercise the repurchase (buy-back) option. A seller-servicer must report all delinquent rebooked GNMA
loans that have been repurchased or are eligible for repurchase as past due in Schedule RC-N in
accordance with their contractual repayment terms. In addition, if an institution services GNMA loans, but
was not the transferor of the loans that were securitized, and purchases individual delinquent loans out of
the GNMA securitization, the institution must report the purchased loans as past due in Schedule RC-N in
accordance with their contractual repayment terms even though the institution was not required to record
the delinquent GNMA loans as assets prior to purchasing the loans. Such delinquent GNMA loans
should be reported in items 1.c, 11, and 11.b of Schedule RC-N.

Definitions

Past Due – The past due status of a loan or other asset should be determined in accordance with its
contractual repayment terms. For purposes of this schedule, grace periods allowed by the bank after a
loan or other asset technically has become past due but before the imposition of late charges are not to
be taken into account in determining past due status. Furthermore, loans, leases, debt securities, and
FFIEC 051

RC-N-1
(3-17)
(3-19)

RC-N - PAST DUE
38

FFIEC 051

RC-N - PAST DUE

Definitions (cont.)
(2) Open-end credit such as credit cards, check credit, and other revolving credit plans are to be reported
as past due when the customer has not made the minimum payment for two or more billing cycles.
(3) Single payment and demand notes, debt securities, and other assets providing for the payment of
interest at stated intervals are to be reported as past due after one interest payment is due and
unpaid for 30 days or more.

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(4) Single payment notes, debt securities, and other assets providing for the payment of interest at
maturity are to be reported as past due after maturity if interest or principal remains unpaid for
30 days or more.

(5) Unplanned overdrafts are to be reported as past due if the account remains continuously overdrawn
for 30 days or more.

For purposes of this schedule, banks should use one of two methods to recognize partial payments on
“retail credit,” i.e., open-end and closed-end credit extended to individuals for household, family, and
other personal expenditures, including consumer loans and credit cards, and loans to individuals secured
by their personal residence, including home equity and home improvement loans. A payment equivalent
to 90 percent or more of the contractual payment may be considered a full payment in computing
delinquency. Alternatively, a bank may aggregate payments and give credit for any partial payment
received. For example, if a regular monthly installment is $300 and the borrower makes payments of only
$150 per month for a six-month period, the loan would be $900 ($150 shortage times six payments), or
three monthly payments past due. A bank may use either or both methods for its retail credit, but may not
use both methods simultaneously with a single loan.

When accrual of income on a purchased credit-impaired loan accounted for individually or a purchased
credit-impaired debt security is appropriate, the delinquency status of the individual asset should be
determined in accordance with its contractual repayment terms for purposes of reporting the amount of
the loan or debt security as past due in the appropriate items of Schedule RC-N, column A or B. When
accrual of income on a pool of purchased credit-impaired loans with common risk characteristics is
appropriate, delinquency status should be determined individually for each loan in the pool in accordance
with the individual loan’s contractual repayment terms for purposes of reporting the amount of individual
loans within the pool as past due in the appropriate items of Schedule RC-N, column A or B. For further
information, see the Glossary entry for “purchased credit-impaired loans and debt securities.”
For institutions that have adopted ASU 2016-13, the outstanding purchased credit-impaired loans and
debt securities as of the adoption date of the standard should prospectively be accounted for as
purchased credit-deteriorated financial assets. As of the adoption date of the standard, the remaining
noncredit discount, after the adjustment for the allowance for credit losses, shall be accreted to interest
income at the new effective interest rate, if it is not required to be placed on nonaccrual. Nonaccrual
determination and treatment for purchased credit-deteriorated loans, debt securities, and other financial
assets that fall within the scope of ASU 2016-13 should be considered in the same manner as other
financial assets in an institution’s portfolio. For further information, see Glossary entry for “purchased
credit-deteriorated financial assets.”

Nonaccrual – For purposes of this schedule, an asset is to be reported as being in nonaccrual status if:
(1) It is maintained on a cash basis because of deterioration in the financial condition of the borrower,

(2) Payment in full of principal or interest is not expected, or

(3) Principal or interest has been in default for a period of 90 days or more unless the asset is both well
secured and in the process of collection.
An asset is "well secured" if it is secured (1) by collateral in the form of liens on or pledges of real or
FFIEC 051

RC-N-3
(3-19)
(3-17)

RC-N - PAST DUE
39

FFIEC 051

RC-N - PAST DUE

Definitions (cont.)
Restructured in Troubled Debt Restructurings – A troubled debt restructuring is a restructuring of a loan in
which a bank, for economic or legal reasons related to a borrower's financial difficulties, grants a
concession to the borrower that it would not otherwise consider. For purposes of this schedule, the
concession consists of a modification of terms, such as a reduction of the loan’s stated interest rate,
principal, or accrued interest or an extension of the loan’s maturity date at a stated interest rate lower
than the current market rate for new debt with similar risk, regardless of whether the loan is secured or
unsecured and regardless of whether the loan is guaranteed by the government or by others.

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Once an obligation has been restructured in a troubled debt restructuring, it continues to be considered a
troubled debt restructuring until paid in full or otherwise settled, sold, or charged off (or meets the
conditions discussed under “Accounting for a Subsequent Restructuring of a Troubled Debt
Restructuring” in the Glossary entry for “troubled debt restructurings). However, if a restructured
obligation is in compliance with its modified terms and the restructuring agreement specifies an interest
rate that at the time of the restructuring is greater than or equal to the rate that the bank was willing to
accept for a new extension of credit with comparable risk, the loan need not continue to be reported as a
troubled debt restructuring in calendar years after the year in which the restructuring took place. A loan
extended or renewed at a stated interest rate equal to the current interest rate for new debt with similar
risk is not considered a troubled debt restructuring. Also, a loan to a third party purchaser of "other real
estate owned" by the reporting bank for the purpose of facilitating the disposal of such real estate is not
considered a troubled debt restructuring.
For further information, see the Glossary entry for "troubled debt restructurings."

Column Instructions

Institutions that have adopted ASU 2016-13, report in columns A and B of Schedule RC-N asset amounts
without any deduction for allowances for credit losses.

The columns of Schedule RC-N are mutually exclusive. Any given loan, lease, debt security, or other
asset should be reported in only one of columns A, B, and C. Information reported for any given
derivative contract should be reported in only column A or column B.

Report in columns A and B of Schedule RC-N the balance sheet amounts of (not just the delinquent
payments on) loans, leases, debt securities, and other assets that are past due and upon which the bank
continues to accrue interest, as follows:

(1) In column A, report closed-end monthly installment loans, amortizing loans secured by real estate,
lease financing receivables, and open-end credit in arrears two or three monthly payments; other
multipayment obligations with payments scheduled other than monthly when one scheduled payment
is due and unpaid for 30 through 89 days; single payment and demand notes, debt securities, and
other assets providing for payment of interest at stated intervals after one interest payment is due and
unpaid for 30 through 89 days; single payment notes, debt securities, and other assets providing for
payment of interest at maturity, on which interest or principal remains unpaid for 30 through 89 days
after maturity; unplanned overdrafts, whether or not the bank is accruing interest on them, if the
account remains continuously overdrawn for 30 through 89 days.
(2) In column B, report the loans, lease financing receivables, debt securities, and other assets as
specified above on which payment is due and unpaid for 90 days or more.

Include in columns A and B, as appropriate, all loans, leases, debt securities, and other assets which,
subsequent to their restructuring by means of a modification of terms, have become 30 days or more past
due and upon which the bank continues to accrue interest. Exclude from columns A and B all loans,
leases, debt securities, and other assets that are in nonaccrual status.

FFIEC 051

RC-N-4
(3-17)
(3-19)

RC-N - PAST DUE
40

FFIEC 051

RC-N - PAST DUE

Memoranda
Item No.

Caption and Instructions

7
(cont.)

reduced, for example, by any charge-offs or sales of such nonaccrual assets. If a given asset
status more than once during the six month period ending on the current semiannual report
date, report the amount of the asset only once.
Nonaccrual assets sold during the previous six months. Report the total of the
outstanding balances of all loans, leases, debt securities, and other assets held in nonaccrual
status (i.e., reportable in Schedule RC-N, column C, items 1 through 8 and 10) that were sold
during the six months ending on the semiannual (i.e., June 30 or December 31) report date
for this item. The amount to be included in this item is the outstanding balance (net of
unearned income) of each nonaccrual asset at the time of its sale. Do not report the sales
price of the nonaccrual assets and do not include any gains or losses from the sale. For
purposes of this item, only include those transfers of nonaccrual assets that meet the criteria
for a sale as set forth in ASC Topic 860, Transfers and Servicing (formerly FASB Statement
No. 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities,” as amended). For further information, see the Glossary entry for “transfers of
financial assets.”

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8

9

Purchased credit-impaired loans accounted for in accordance with FASB ASC 310-30
(former AICPA Statement of Position 03-3).

Memorandum items 9.a and 9.b is to be completed only by institutions that have not yet
adopted ASU 2016-13. Institutions that have adopted ASU 2016-13 should leave these items
blank.

Report in the appropriate subitem and column the outstanding balance and amount of
"purchased credit-impaired loans" reported as held for investment in Schedule RC-C, Part I,
Memorandum items 7.a and 7.b, respectively, that are past due 30 days or more or are in
nonaccrual status as of the report date. The amount of such loans will have been included by
loan category in items 1 through 7 of Schedule RC-N, above. Purchased credit-impaired
loans are accounted for in accordance with ASC Subtopic 310-30, Receivables – Loans and
Debt Securities Acquired with Deteriorated Credit Quality (formerly AICPA Statement of
Position 03-3, “Accounting for Certain Loans or Debt Securities Acquired in a Transfer”).
Purchased credit-impaired loans are loans that an institution has purchased, including those
acquired in a purchase business combination, where there is evidence of deterioration of
credit quality since the origination of the loan and it is probable, at the purchase date, that the
institution will be unable to collect all contractually required payments receivable. Loans held
for investment are those that the institution has the intent and ability to hold for the
foreseeable future or until maturity or payoff.
For guidance on determining the delinquency and nonaccrual status of purchased
credit-impaired loans accounted for individually and purchased credit-impaired loans with
common risk characteristics that are aggregated and accounted for as a pool, refer to the
“Definitions” section of the Schedule RC-N instructions and the Glossary entry for “purchased
credit-impaired loans and debt securities.”

9.a

FFIEC 051

Outstanding balance. Report in the appropriate column the outstanding balance of all
purchased credit-impaired loans reported as held for investment in Schedule RC-C, Part I,
Memorandum item 7.a, that are past due 30 days or more or are in nonaccrual status as of
the report date. The outstanding balance is the undiscounted sum of all amounts, including
amounts deemed principal, interest, fees, penalties, and other under the loan, owed to the
institution at the report date, whether or not currently due and whether or not any such
amounts have been charged off by the institution. However, the outstanding balance does not
include amounts that would be accrued under the contract as interest, fees, penalties, and
other after the report date.
RC-N-12
(6-18)
(3-19)

RC-N - PAST DUE
41

FFIEC 051

RC-R – REGULATORY CAPITAL

Item Instructions for Schedule RC-R, Part I.
Item No.

Caption and Instructions

Common Equity Tier 1 Capital
1

Common stock plus related surplus, net of treasury stock and unearned employee
stock ownership plan (ESOP) shares. Report the sum of Schedule RC, items 24, 25,
and 26.c, as follows:
(1) Common stock: Report the amount of common stock reported in Schedule RC, item 24,
provided it meets the criteria for common equity tier 1 capital based on the regulatory
capital rules of the institution’s primary federal supervisor. Include capital instruments
issued by mutual banking organizations that meet the criteria for common equity tier 1
capital.
(2) Related surplus: Adjust the amount reported in Schedule RC, item 25 as follows: include
the net amount formally transferred to the surplus account, including capital contributions,
and any amount received for common stock in excess of its par or stated value on or
before the report date; exclude adjustments arising from treasury stock transactions.
(3) Treasury stock, unearned ESOP shares, and any other contra-equity components:
Report the amount of contra-equity components reported in Schedule RC, item 26.c.
Because contra-equity components reduce equity capital, the amount reported in
Schedule RC, item 26.c, is a negative amount.

2

Retained earnings. Report the amount of the institution’s retained earnings as reported in
Schedule RC, item 26.a.
An institution that has elected to apply the CECL transition provision (electing institution) also
includes its applicable CECL transitional amount, in accordance with section 301 of the
regulatory capital rules. Specifically, an electing institution includes seventy-five percent of its
CECL transitional amount during the first year of the transition period, fifty percent of its
CECL transitional amount during the second year of the transition period, and twenty-five
percent of its CECL transitional amount during the third year of the transition period.
An electing advanced approaches institution (1) that has completed the parallel run process
and has received notification from its primary Federal regulator pursuant to section 121(d)
under subpart E of the regulatory capital rules, (2) whose amount of expected credit loss
exceeded its eligible credit reserves immediately prior to the adoption of CECL, and (3) would
have an increase in CET1 capital as of the beginning of the fiscal year in which it adopts
CECL after including the first year portion of the CECL transitional amount must decrease its
CECL transitional amount by its DTA transitional amount.

Example and a worksheet calculation
Assumptions:
 For example, consider an institution that elects to apply the CECL transition and that has
a CECL effective date of January 1, 2020 and a 21 percent tax rate.
 On the closing balance sheet date immediately prior to adopting CECL (i.e., December
31, 2019), the electing institution has $10 million in retained earnings and $1 million of
ALLL. On the opening balance sheet date immediately after adopting CECL (i.e.,
January 1, 2020), the electing institution has $1.2 million of ACL (which also equals
$1.2 million of the adjusted allowance for credit losses (AACL), as defined in the
regulatory capital rules).
 The electing institution recognizes the adoption of CECL by recording an increase to ACL
(credit) of $200,000, with an offsetting increase in temporary difference DTAs of $42,000
(debit) and a reduction in beginning retained earnings of $158,000 (debit).
FFIEC 051

RC-R-3

RC-R – REGULATORY CAPITAL

(3-18)
(3-19)
(3-19)

42

FFIEC 051

RC-R – REGULATORY CAPITAL

 For each of the quarterly reporting periods in year 1 of the transition period (i.e., 2020),
the electing institution increases both retained earnings and average total consolidated
assets by $118,500 ($158,000 x 75 percent), decreases temporary difference DTAs by
$31,500 ($42,000 x 75 percent), and decreases AACL by $150,000 ($200,000 x 75
percent) for purposes of calculating its regulatory capital ratios. The remainder of the
CECL transition provision of the electing institution is transitioned into regulatory capital
according to the schedule provided in Table [x].
Table X

In thousands
1. Increase retained
earnings and average total
consolidated assets by the
CECL transitional amount
2. Decrease temporary
difference DTAs by the
DTA transitional amount
3. Decrease AACL by
the AACL transitional

2.a

Transitional
Amounts
Column A
$158

Transitional Amounts Applicable during Each Year
of the Transition Period
Year 1 at 75%
Year 2 at 50%
Year 3 at 25%
Column B
Column C
Column D
$118.50
$79
$39.50

$42

$31.50

$21

$10.50

$200

$150

$100

$50

Institutions applying the CECL transition provision. An institution may make a one-time
election to use the CECL transition provision, as described in section 301 of the regulatory
capital rules. Such an institution is required to begin applying the CECL transition provision
as of the institution’s CECL adoption date. An institution must indicate its election to use the
CECL transition provision beginning in the quarter that it first reports its credit loss allowances
as measured under CECL. An institution that does not elect to use the CECL transition
provision in the quarter that it first reports its credit loss allowances as measured under CECL
would not be permitted to make an election in subsequent reporting periods. For example,
an institution that adopts CECL as of January 1, 2020, and does not elect to use the CECL
transition provision in its regulatory report as of March 31, 2020, would not be permitted to
use the CECL transition provision in any subsequent reporting period.
An institution that has adopted CECL and has elected to apply the CECL transition provision
must enter “1” for “Yes” in item 2.a for each quarter in which the institution uses the transition
provisions. An institution that has adopted CECL and has elected not to use the CECL
transition provision must enter a “0” for “No” in item 2.a. An institution that has not adopted
CECL must not complete item 2.a.
Each institution would complete item 2.a beginning in the Call Report for its first reporting
period under CECL and in each subsequent Call Report thereafter until item 2.a is removed
from the report. Effective March 31, 2025, the agencies intend to propose to remove item
2.a from Schedule RC-R, Part I, because the optional three-year phase-in period will have
ended for all electing institutions by the end of the prior calendar year. If an individual
electing institution’s three-year phase-in period ends before item 2.a is removed (e.g., its
phase-in period ends December 31, 2022), the institution would report “0” in item 2.a that
its CECL transition election is no longer in effect.

3

FFIEC 051

Accumulated other comprehensive income (AOCI). For institutions that have made the
AOCI opt-out election in item 3.a below, report the amount of AOCI as reported under U.S.
generally accepted accounting principles (GAAP) that is included in Schedule RC, item 26.b.
For institutions that have not made the AOCI opt-out election in item 3.a below, report the
amount of AOCI as reported under U.S. GAAP included in Schedule RC, item 26.b, subject to
the transition provisions described in section (ii) of the instructions for item 3.a below.
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AOCI opt-out election.
An institution that is not an advanced approaches institution as defined in the regulatory
capital rules may make a one-time election to become subject to the AOCI-related
adjustments in Schedule RC-R, Part I, items 9.a through 9.e. That is, such an institution may
opt out of the requirement to include most components of AOCI in common equity tier 1
capital (with the exception of accumulated net gains and losses on cash flow hedges related
to items that are not recognized at fair value on the balance sheet). An institution that makes
an AOCI opt-out election must enter “1” for “Yes” in item 3.a. There are no transition
provisions applicable to reporting Schedule RC-R, item 3, if an institution makes an AOCI
opt-out election.
Each institution (except an advanced approaches institution) in existence as of March 31,
2015, made its AOCI opt-out election on the institution’s March 31, 2015, Call Report. For an
institution that comes into existence after March 31, 2015, the institution must make its AOCI
opt-out election on the institution’s first Call Report. After an institution initially makes its
AOCI opt-out election, the institution must report its election in each quarterly Call Report
thereafter. Each of the institution’s depository institution subsidiaries, if any, must elect the
same option as the institution. With prior notice to its primary federal supervisor, an
institution resulting from a merger, acquisition, or purchase transaction may make a new
AOCI opt-out election, as described in section 22(b)(2) of the regulatory capital rules.

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Part I. (cont.)
Item No.
14

Caption and Instructions
LESS: MSAs, net of associated DTLs, that exceed the 10 percent common equity tier 1
capital deduction threshold. Report the amount of MSAs included in Schedule RC-M,
item 2.a, net of associated DTLs, that exceed the 10 percent common equity tier 1 capital
deduction threshold as follows:
(1) Take the amount of MSAs as reported in Schedule RC-M, item 2.a, net of associated
DTLs.
(2) If the amount in (1) is greater than 10 percent of Schedule RC-R, Part I, item 12, report
the difference in this item 14.
(3) If the amount in (1) is less than 10 percent of Schedule RC-R, Part I, item 12, enter zero
in this item 14.
Transition provisions: Follow the transition provisions in the instructions for
Schedule RC-R, Part I, item 13 (that is, apply 80 percent of the deduction and a 100 percent
risk weight to the portion of items not deducted).

15

LESS: DTAs arising from temporary differences that could not be realized through
net operating loss carrybacks, net of related valuation allowances and net of DTLs,
that exceed the 10 percent common equity tier 1 capital deduction threshold.
(1) Determine the amount of DTAs arising from temporary differences that could not be
realized through net operating loss carrybacks net of any related valuation allowances
and net of associated DTLs (for example, DTAs resulting from the institution’s ALLL or
ACL, as applicable).
(2) If the amount in (1) is greater than 10 percent of Schedule RC-R, Part I, item 12, report
the difference in this item 15.
(3) If the amount in (1) is less than 10 percent of Schedule RC-R, Part I, item 12, enter zero
in this item 15.
DTAs arising from temporary differences that could be realized through net operating loss
carrybacks are not subject to deduction, and instead must be assigned to a 100 percent riskweight category. For an institution that is a member of a consolidated group for tax purposes,
the amount of DTAs that could be realized through net operating loss carrybacks may not
exceed the amount that the institution could reasonably expect to have refunded by its parent
holding company.
Transition provisions: Follow the transition provisions in the instructions for
Schedule RC-R, Part I, item 13 (that is, apply 80 percent of the deduction and a 100 percent
risk weight to the portion of items not deducted).

16

LESS: Amount of significant investments in the capital of unconsolidated financial
institutions in the form of common stock, net of associated DTLs; MSAs, net of
associated DTLs; and DTAs arising from temporary differences that could not be
realized through net operating loss carrybacks, net of related valuation allowances and
net of DTLs; that exceeds the 15 percent common equity tier 1 capital deduction
threshold.
The aggregate amount of the threshold items (that is, significant investments in the capital of
unconsolidated financial institutions in the form of common stock, net of associated DTLs;
MSAs, net of associated DTLs; and DTAs arising from temporary differences that could not
be realized through net operating loss carrybacks, net of related valuation allowances and net
of DTLs) may not exceed 15 percent of the institution’s common equity tier 1 capital, net of
applicable adjustments and deductions (the 15 percent common equity tier 1 capital
deduction threshold).

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Part I. (cont.)
Item No.

Caption and Instructions

29
(cont.)

Transition provisions: For surplus minority interest and non-qualifying minority interest that can
be included in tier 2 capital during the transition period, follow the transition provisions in the
instructions for Schedule RC-R, Part I, item 4, after taking into consideration (that is, excluding)
any amount of surplus tier 1 minority interest (from step 7 of the worksheet in item 22). In the
example (and assuming no outstanding amounts of non-qualifying minority interest), the institution
has $1.53 of surplus total capital minority interest available to be included during the transition
period in tier 2 capital ($10.39 (from step 7 of the worksheet in item 29) of surplus total capital
minority interest minus $8.86 (from step 7 of the worksheet in item 22) of tier 1 minority interest).
In 2017, the institution would include an additional $0.31 in item 29 (20% of $1.53). Starting in
2018 the institution would include the same amount of surplus minority interest in its regulatory
capital as it included in 2017 (20% of $1.53 or
$0.31). NOTE: If the amount of surplus total capital minority interest (from step 7 of the worksheet
in item 29) is less than the amount of surplus tier 1 minority interest (from step 7 of the worksheet
in item 22), the amount of surplus total capital minority interest available to be included during the
transition period in tier 2 capital is zero.

30

Allowance for loan and lease losses includable in tier 2 capital. Report the portion of the
institution’s allowance for loan and lease losses (ALLL) or adjusted allowances for credit losses
(AACL), as applicable, for regulatory capital purposes that is includable in tier 2 capital. None of
the institution’s allocated transfer risk reserve, if any, is includable in tier 2 capital.
An institution’s ALLL for regulatory capital purposes equals Schedule RC, item 4.c,
“Allowance for loan and lease losses”; less any allocated transfer risk reserve included in
Schedule RC, item 4.c; plus Schedule RC-G, item 3, “Allowance for credit losses on off- balance
sheet credit exposures.”
An institution’s AACL for regulatory capital purposes equals Schedule RI-B, Part II, item 7, sum of
columns A and B, “Balance end of current period” for loans and leases held for investment and
held-to-maturity debt securities, respectively; plus Schedule RI-B, Part II, Memorandum item 6,
“Allowance for credit losses on other financial assets measured at amortized cost (not included in
item 7, above)”; less Schedule RC-R, Part II, sum of Memorandum items 4.a, 4.b, and 4.c,
“Amount of allowances for credit losses on purchased credit-deteriorated assets” for loans and
leases held for investment, held-to-maturity debt securities, and other financial assets measured
at amortized cost, respectively; less any allocated transfer risk reserve included in Schedule RI-B,
Part II, item 7, columns A and B, and Memorandum item 6; plus Schedule RC-G, item 3,
“Allowance for credit losses on off-balance sheet credit exposures.”’
An institution that has elected to apply the CECL transition provision (electing institution)
decreases its applicable AACL transitional amount, in accordance with section 301 of the
regulatory capital rules. Specifically, an electing institution reduces AACL includable in tier 2
capital by seventy-five percent of its AACL transitional amount during the first year of the transition
period, fifty percent of its AACL transitional amount during the second year of the transition period,
and twenty-five percent of its AACL transitional amount during the third year of the transition
period (see Table X of Schedule R, item 2).
The amount to be reported in this item is the lesser of (1) the institution’s ALLL, or AACL, as
applicable, for regulatory capital purposes, as defined above, or (2) 1.25 percent of the institution’s
risk-weighted assets base for the ALLL or AACL calculation as reported in Schedule RC-R, Part II,
item 26. In calculating the risk-weighted assets base for this purpose, an institution would not
include items that are deducted from capital under
section 22(a). However, an institution would include risk-weighted asset amounts of items
deducted from capital under sections 22(c) through (f) of the regulatory capital rule, in accordance
with the applicable transition provisions. While amounts deducted from capital under sections
22(c) through (f) are included in the risk-weighted assets base for the ALLL or

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AACL calculation, as applicable, such amounts are excluded from standardized total
risk- weighted assets used in the denominator of the risk-based capital ratios.
The amount, if any, by which an institution’s ALLL or AACL, as applicable, for regulatory
capital purposes exceeds 1.25 percent of the institution’s risk-weighted assets base for the
ALLL or AACL calculation (as reported in Schedule RC-R, Part II, item 26), as applicable,
should be reported in Schedule RC-R, Part II, item 29, “LESS: Excess allowance for loan and
lease losses.” The sum of the amounts of ALLL reported in Schedule RC-R, Part I, item 30,
plus Schedule RC-R, Part II, item 29, must equal Schedule RC, item 4.c, less any allocated
transfer risk reserve included in Schedule RC, item 4.c, plus Schedule RC-G, item 3.

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Part I. (cont.)
Item No.

Caption and Instructions

Total Assets for the Leverage Ratio
36

Average total consolidated assets. All banks and savings associations must report the
amount of average total consolidated assets as reported in Schedule RC-K, item 9.
An institution that has elected to apply the CECL transition provision (electing institution)
increases its average total consolidated assets by its applicable CECL transitional amount, in
accordance with section 301(b)(4)(iv) of the regulatory capital rules. For example, an
electing institution increases its average total consolidated assets as reported on the Call
Report for purposes of the leverage ratio by seventy-five percent of its CECL transitional
amount during the first year of the transition period, fifty percent of its CECL transitional
amount during the second year of the transition period, and twenty-five percent of its CECL
transitional amount during the third year of the transition period.

37

LESS: Deductions from common equity tier 1 capital and additional tier 1 capital.
Report the sum of the amounts deducted from common equity tier 1 capital and additional
tier 1 capital in Schedule RC-R, Part I, items 6, 7, 8, 10.b, 11, 13 through 17, and item 24,
except any adjustments to additional tier 1 capital related to changes in the fair value of
liabilities that are reported in item 24 during the transition period. Also exclude the amount
reported in item 17 that is due to insufficient amounts of additional tier 1 capital, and which is
included in the amount reported in item 24. (This is to avoid double counting.)

38

LESS: Other deductions from (additions to) assets for leverage ratio purposes. Based
on the regulatory capital rules of the bank’s primary federal supervisor, report the amount of
any deductions from (additions to) total assets for leverage capital purposes that are not
included in Schedule RC-R, Part I, item 37, as well as the items below, if applicable. If the
amount is a net deduction, report it as a positive value in this item. If the amount is a net
addition, report it as a negative value in this item.
Institutions that make the AOCI opt-out election in Schedule RC-R, Part I, item 3.a –
Defined benefit postretirement plans:
If the reporting institution sponsors a single-employer defined benefit postretirement plan,
such as a pension plan or health care plan, accounted for in accordance with
ASC Subtopic 715-20, Compensation-Retirement Benefits – Defined Benefit Plans-General
(formerly FASB Statement No. 158, “Employers’ Accounting for Defined Benefit Pension and
Other Postretirement Plans”), the institution should adjust total assets for leverage ratio
purposes for any amounts included in Schedule RC, item 26.b, “Accumulated other
comprehensive income” (AOCI), affecting assets as a result of the initial and subsequent
application of the funded status and measurement date provisions of ASC Subtopic 715-20.
The adjustment also should take into account subsequent amortization of these amounts
from AOCI into earnings. The intent of the adjustment reported in this item (together with the
amount reported in Schedule RC-R, Part I, item 9.d) is to reverse the effects on AOCI of
applying ASC Subtopic 715-20 for regulatory capital purposes. Specifically, assets
recognized or derecognized as an adjustment to AOCI as part of the incremental effect of
applying ASC Subtopic 715-20 should be reported as an adjustment to total assets for
leverage ratio purposes. For example, the derecognition of an asset recorded as an offset to
AOCI as part of the initial incremental effect of applying ASC Subtopic 715-20 should be
added back to total assets for leverage ratio purposes by reporting the amount as a negative
number in this item. As another example, the portion of a benefit plan surplus asset that is
included in Schedule RC, item 26.b, as an increase to AOCI and in total assets should be
deducted from total assets for leverage ratio purposes by reporting the amount as a positive
number in this item.

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Part II. (cont.)
Item No.

Caption and Instructions

2.a
(cont.)

Statement No. 115, “Accounting for Certain Investments in Debt and Equity Securities”).
Thus, for an HTM security with such an unrealized gain (loss), report in column B any
difference between the carrying value of the security reported in column A of this item and its
exposure amount reported under the appropriate risk weighting column C through J.

FFIEC 051

•

In column B, include the amount of:
o Non-significant investments in tier 2 capital of unconsolidated financial institutions
that are reported in Schedule RC, item 2.a, and have been deducted from capital in
Schedule RC-R, Part I, item 33.
o Significant investments in the capital of unconsolidated financial institutions in the
form of tier 2 capital that are reported in Schedule RC, item 2.a, and have been
deducted from capital in Schedule RC-R, Part I, item 33.
o An institution that has adopted CECL includes the relevant portion (reflected as a
negative number) of Schedule RI-B, Part II, item 7, Column B, “Balance end of
current period: Held-to-maturity debt securities”, less Schedule RC-R, part II,
Memorandum item 4.b, “Amount of allowances for credit losses on purchased
credit-deteriorated assets: Held-to- maturity securities.” For example, if a firm
reports $100 in Schedule RI-B, Part II, item 7, Column B, and $10 in Schedule RCR, part II, Memorandum item 4b, the firm would report ($90) in this column B.

•

In column C–0% risk weight. The zero percent risk weight applies to exposures to the
U.S. government, a U.S. government agency, or a Federal Reserve Bank, and those
exposures otherwise unconditionally guaranteed by the U.S. government. Include
exposures to or unconditionally guaranteed by the FDIC or the NCUA. Certain foreign
government exposures and certain entities listed in §.32 of the regulatory capital rules
may also qualify for the zero percent risk weight. Include the exposure amounts of
securities reported in Schedule RC-B, column A, that do not qualify as securitization
exposures that qualify for the zero percent risk weight. Such securities may include
portions of, but may not be limited to:
o Item 1, "U.S. Treasury securities,"
o Item 2, those obligations issued by U.S. Government agencies,
o Item 4.a.(1), those residential mortgage pass-through securities guaranteed by
GNMA,
o Item 4.b.(1), those other residential mortgage-backed securities issued or guaranteed
by U.S. Government agencies, such as GNMA exposures,
o Item 4.c.(1)(a), those commercial mortgage-backed securities (MBS) “Issued or
guaranteed by FNMA, FHLMC, or GNMA” that represent GNMA securities, and
o Item 4.c.(2)(a), those commercial MBS “Issued or guaranteed by U.S. Government
agencies or sponsored agencies” that represent GNMA securities.
o The portion of any exposure reported in Schedule RC, item 2.a, that is secured by
collateral or has a guarantee that qualifies for the zero percent risk weight.

•

In column G–20% risk weight. The 20 percent risk weight applies to general obligations
of U.S. states, municipalities, and U.S. public sector entities. It also applies to exposures
to U.S. depository institutions and credit unions, exposures conditionally guaranteed by
the U.S. government, as well as exposures to U.S. government-sponsored enterprises.
Certain foreign government and foreign bank exposures may qualify as indicated in §.32
of the regulatory capital rules. Include the exposure amounts of securities reported in
Schedule RC-B, column A, that do not qualify as securitization exposures that qualify for
the 20 percent risk weight. Such securities may include portions of, but may not be
limited to:
o Item 2, those obligations issued by U.S. Government-sponsored agencies,
Item 3, "Securities issued by states and political subdivisions in the U.S." that
represent general obligation securities,
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Part II. (cont.)
Item No.
3.b

Caption and Instructions
Securities purchased under agreements to resell. Report in columns A and B the
amount of securities purchased under agreements to resell (securities resale agreements,
i.e., reverse repos) reported in Schedule RC, item 3.b, excluding those securities resale
agreements that qualify as securitization exposures as defined in §.2 of the regulatory capital
rules. The amount of those securities resale agreements reported in Schedule RC, item 3.b,
that qualify as securitization exposures are to be reported in Schedule RC-R, Part II, item 9.d,
column A.
An institution that has adopted CECL includes in column B the relevant portion (reflected as
a negative number) related to all other assets of Schedule RI-B, Part II, Memorandum item 6,
“Allowance for credit losses on other financial assets measured at amortized cost,” less
Schedule RC-R, part II, Memorandum item 4.c, “Amount of allowances for credit losses on
purchased credit-deteriorated assets: Other financial assets measured at amortized cost.” For
example, if a firm reports $100 in Schedule RI-B, Part II, Memorandum item 6, and $10 in
Schedule RC-R, part II, Memorandum item 4.c, the firm would report ($90) in this column B.
•

4

Note: For purposes of risk weighting, please distribute on-balance sheet securities
purchased under agreements to resell reported in Schedule RC, item 3.b, within the riskweight categories in Schedule RC-R, Part II, item 16, “Repo-style transactions.” Banks
should report their securities purchased under agreements to resell in item 16 in order for
institutions to calculate their exposure, and thus risk-weighted assets, based on master
netting set agreements covering repo-style transactions.

Loans and leases held for sale. Report in column A of the appropriate subitem the carrying
value of loans and leases held for sale (HFS) reported in Schedule RC, item 4.a, excluding
those HFS loans and leases that qualify as securitization exposures as defined in §.2 of the
regulatory capital rules.
The carrying value of those HFS loans and leases reported in Schedule RC, item 4.a, that
qualify as securitization exposures must be reported in Schedule RC-R, Part II, item 9.d,
column A.
The sum of the amounts reported in column A for items 4.a through 4.d of Schedule RC-R,
Part II, plus the carrying value of HFS loans and leases that qualify as securitization
exposures and are reported in column A of item 9.d of Schedule RC-R, Part II, must equal
Schedule RC, item 4.a.

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Part II. (cont.)
Item No.

Caption and Instructions

5.a
(cont.)

Exclude from this item:
• Loans HFI secured by multifamily residential properties included in Schedule RC-C,
Part I, item 1.d, that do not meet the definition of a residential mortgage exposure or a
statutory multifamily mortgage and are not securitization exposures, and
 1-4 family residential construction loans HFI reported in Schedule RC-C, Part I,
item 1.a.(1), that are not securitization exposures,
These loans should be reported in Schedule RC-R, Part II, item 5.c, if they are past due
90 days or more or on nonaccrual. Otherwise, these HFI loans should be reported in
Schedule RC-R, Part II, item 5.d.
•

In column B, an institution that has adopted CECL includes as a positive number the
portion of Schedule RC-R, part II, Memorandum item 4.a, “Amount of allowances for
credit losses on purchased credit-deteriorated assets: Loans and leases held for
investment” that are applicable to residential mortgage exposures.

•

In column C–0% risk weight, include the portion of any HFI exposure that meets the
definition of residential mortgage exposure or statutory multifamily mortgage reported in
Schedule RC, item 4.b, that is secured by collateral or has a guarantee that qualifies for
the zero percent risk weight. This would include loans and leases HFI collateralized by
deposits at the reporting institution.

•

In column G–20% risk weight, include the carrying value of the guaranteed portion of
FHA and VA mortgage loans HFI included in Schedule RC-C, Part I, item 1.c.(2)(a). Also
include the portion of any loan HFI which meets the definition of residential mortgage
exposure or statutory multifamily mortgage reported in Schedule RC, item 4.b, that is
secured by collateral or has a guarantee that qualifies for the 20 percent risk weight. This
would include the portion of loans HFI covered by an FDIC loss-sharing agreement.

•

In column H–50% risk weight, include the carrying value of loans HFI secured by 1-4
family residential properties included in Schedule RC-C, Part I, item 1.c.(1) (only include
qualifying first mortgage loans); qualifying loans from Schedule RC-C, Part I, items
1.c.(2)(a) and 1.d; and those loans that meet the definition of a residential mortgage
exposure and qualify for 50 percent risk weight under §.32(g) of the regulatory capital
rules. For 1-4 family residential mortgages, the loans must be prudently underwritten, be
fully secured by first liens on 1-4 family or multifamily residential properties, not 90 days
or more past due or in nonaccrual status, and have not been restructured or modified
(unless modified or restructured solely pursuant to the U.S. Treasury’s Home Affordable
Mortgage Program (HAMP)). Also include loans HFI that meet the definition of statutory
multifamily mortgage in §.2 of the regulatory capital rules. Also include the portion of any
loan HFI which meets the definition of residential mortgage exposure reported in
Schedule RC, item 4.b, that is secured by collateral or has a guarantee that qualifies for
the 50 percent risk weight.
Notes:
1. Refer to the definition of “residential mortgage exposure” in §.2 of the regulatory capital
rules, and refer to the requirements for risk weighting residential mortgage loans in §.32
of the regulatory capital rules.
2. A residential mortgage loan may receive a 50 percent risk weight if it meets the
qualifying criteria in §.32(g) of the regulatory capital rules:
o A property is owner-occupied or rented;
o The loan is prudently underwritten including the loan amount as a percentage of the
appraised value of the real estate collateral.
o The loan is not 90 days or more past due or on nonaccrual;

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Part II. (cont.)
Item No.

Caption and Instructions

5.a
(cont.)

o

If the bank holds the first lien and junior lien(s) on a residential mortgage exposure,
and no other party holds an intervening lien, the bank must combine the exposures
and treat them as a single first-lien residential mortgage exposure.
3. A first lien home equity line (HELOC) may qualify for 50 percent risk weight if it meets
the qualifying criteria in §.32(g) listed above.
4. A residential mortgage loan of $1 million or less on a property of more than 4 units
may qualify for 50 percent risk weight if it meets the qualifying criteria in §.32(g) listed
above.

•

In column I–100% risk weight, include the carrying value of loans HFI related to
residential mortgages exposures reported in Schedule RC, item 4.b, that are not included
in columns C, G, H, or R. Include loans HFI that are junior lien residential mortgage
exposures if the bank does not hold the first lien on the property, except the portion of
any junior lien residential mortgage exposure that is secured by collateral or has a
guarantee that qualifies for the zero percent, 20 percent, or 50 percent risk weight. Also
include loans HFI that are residential mortgage exposures that have been restructured or
modified, except
o Those loans restructured or modified solely pursuant to the U.S. Treasury’s HAMP,
and
o The portion of any restructured or modified residential mortgage exposure that is
secured by collateral or has a guarantee that qualifies for the zero percent,
20 percent, or 50 percent risk weight.

•

In columns R and S–Application of Other Risk-Weighting Approaches, include the portion
of any loan HFI reported in Schedule RC, item 4.b, that meets the definition of residential
mortgage exposure or statutory multifamily mortgage and is secured by qualifying
financial collateral that meets the definition of a securitization exposure in §.2 of the
regulatory capital rules or is a mutual fund only if the bank chooses to recognize the riskmitigating effects of the securitization exposure or mutual fund collateral under the Simple
Approach outlined in §.37 of the regulatory capital rules. Under the Simple Approach, the
risk weight assigned to the collateralized portion of the exposure may not be less than 20
percent. For information on the reporting of such HFI exposures in columns R and S,
refer to the instructions for Schedule RC-R, Part, II, item 5.a, in the instructions for the
FFIEC 031 and FFIEC 041 Call Reports.

5.b

13 See

High volatility commercial real estate exposures. Report in column A the portion of the
carrying value of loans HFI reported in Schedule RC, item 4.b, that are high volatility
commercial real estate (HVCRE) exposures,13 including HVCRE exposures that are 90 days
or more past due or in nonaccrual status.

•

In column B, an institution that has adopted CECL includes as a positive number the
portion of Schedule RC-R, part II, Memorandum item 4.a, “Amount of allowances for
credit losses on purchased credit deteriorated assets: Loans and leases held for
investment” that are applicable to high-volatility commercial real estate exposures

o

In column C–0% risk weight, include the portion of any HVCRE exposure included in
loans and leases HFI, that is secured by collateral or has a guarantee that qualifies for
the zero percent risk weight. This would include the portion of HVCRE loans HFI
collateralized by deposits at the reporting institution.

•

In column G–20% risk weight, include the portion of any HVCRE exposure included in
loans and leases HFI which is secured by collateral or has a guarantee that qualifies for

the instructions for Schedule RC-R, Part II, item 4.b, above for the definition of HVCRE exposure.

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Part II. (cont.)
Item No.

Caption and Instructions

5.b
(cont.)

•

In column I–100% risk weight, include the portion of any HVCRE exposure included in
loans and leases HFI which is secured by collateral or has a guarantee that qualifies for
the 100 percent risk weight.

•

In column J–150% risk weight, include the carrying value of HVCRE exposures, as
defined in §.2 of the regulatory capital rules, included in Schedule RC, item 4.b, excluding
those portions of the carrying value that are covered by qualifying collateral or eligible
guarantees as described in §.37 and §.36, respectively, of the regulatory capital rules.

•

In columns R and S–Application of Other Risk-Weighting Approaches, include the portion
of any HVCRE exposure included in loans and leases HFI reported in Schedule RC,
item 4.b, that is secured by qualifying financial collateral that meets the definition of a
securitization exposure in §.2 of the regulatory capital rules or is a mutual fund only if the
bank chooses to recognize the risk-mitigating effects of the securitization exposure or
mutual fund collateral under the Simple Approach outlined in §.37 of the regulatory
capital rules. Under the Simple Approach, the risk weight assigned to the collateralized
portion of the exposure may not be less than 20 percent. For information on the reporting
of such HFI exposures in columns R and S, refer to the instructions for Schedule RC-R,
Part, II, item 5.b, in the instructions for the FFIEC 031 and FFIEC 041 Call Reports.

A

FT

•

Exposures past due 90 days or more or on nonaccrual. Report in column A the carrying
value of loans and leases HFI reported in Schedule RC, item 4.b, that are 90 days or more
past due or in nonaccrual status according to the requirements set forth in §.32(k) of the
regulatory capital rules. Do not include sovereign exposures or residential mortgage
exposures, as described in §.32(a) and §.32(g), respectively, that are 90 days or more past
due or in nonaccrual status (report such past due and nonaccrual exposures in
Schedule RC-R, Part II, items 5.d and 5.a, respectively). Also do not include high volatility
commercial real estate exposures that are 90 days or more past due or in nonaccrual status
(report such exposures in Schedule RC-R, Part II, item 5.b).

R

5.c

In column H–50% risk weight, include the portion of any HVCRE exposure included in
loans and leases HFI which is secured by collateral or has a guarantee that qualifies for
the 50 percent risk weight

In column B, an institution that has adopted CECL includes as a positive number the
portion of Schedule RC-R, part II, Memorandum item 4.a, “Amount of allowances for
credit losses on purchased credit-deteriorated assets: Loans and leases held for
investment” that are applicable to exposures past due 90 days or more or on nonaccrual.

•

In column C–0% risk weight, include the portion of loans and leases HFI included in
Schedule RC, item 4.b, that are 90 days or more past due or in nonaccrual status (except
as noted above), that is secured by collateral or has a guarantee that qualifies for the
zero percent risk weight. This would include the portion of loans and leases HFI
collateralized by deposits at the reporting institution.

D

•

FFIEC 051

•

In column G–20% risk weight, include the portion of loans and leases HFI included in
Schedule RC, item 4.b, that are 90 days or more past due or in nonaccrual status (except
as noted above), that is secured by collateral or has a guarantee that qualifies for the
20 percent risk weight. This would include the portion of loans and leases HFI covered
by an FDIC loss-sharing agreement.

•

In column H–50% risk weight, include the portion of loans and leases HFI included in
Schedule RC, item 4.b, that are 90 days or more past due or in nonaccrual status (except

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RC-R – REGULATORY CAPITAL

Part II. (cont.)
Caption and Instructions

5.d
(cont.)

In columns R and S–Application of Other Risk-Weighting Approaches, include the portion
of any loans and leases HFI, including eligible margin loans, reported in Schedule RC,
item 4.b, that is secured by qualifying financial collateral that meets the definition of a
securitization exposure in §.2 of the regulatory capital rules or is a mutual fund only if the
bank chooses to recognize the risk-mitigating effects of the securitization exposure or
mutual fund collateral under the Simple Approach, or the collateral margin approach for
eligible margin loans, outlined in §.37 of the regulatory capital rules. Under the Simple
Approach, the risk weight assigned to the collateralized portion of the exposure may not
be less than 20 percent. For information on the reporting of such HFI exposures in
columns R and S, refer to the instructions for Schedule RC-R, Part, II, item 5.d, in the
instructions for the FFIEC 031 and FFIEC 041 Call Reports.

•

For all other loans and leases HFI that must be risk weighted according to the Country
Risk Classification (CRC) methodology, assign these exposures to risk-weight categories
based on the CRC methodology described in the General Instructions for
Schedule RC-R, Part II, in the instructions for the FFIEC 031 and FFIEC 041
Call Reports.

A

•

LESS: Allowance for loan and lease losses. Report in columns A and B the balance of
the allowance for loan and lease losses ALLL or AACL, as applicable, reported in
Schedule RC, item 4.c.

R

6

(excluding loans that are assigned a higher than 100 percent risk weight, such as
HVCRE loans and past due loans). This item would include 1-4 family construction loans
and leases HFI reported in Schedule RC-C, Part I, item 1.a.(1) and the portion of loans
HFI secured by multifamily residential property reported in Schedule RC-C, Part I,
item 1.d, with an original amount of more than $1 million. Also include the carrying value
of loans HFI that meet the definition of presold construction loan in §.2 of the regulatory
capital rules that qualify for the 100 percent risk weight. Also include the portion of any
loans and leases HFI not reported in Schedule RC-R, Part II, items 5.a through 5.c
above, that is secured by collateral or has a guarantee that qualifies for the 100 percent
risk weight.

FT

Item No.

7

Trading assets. Report in column A the fair value of trading assets reported in
Schedule RC, item 5, excluding those trading assets that are securitization exposures, as
defined in §.2 of the regulatory capital rules.

D

The fair value of those trading assets reported in Schedule RC, item 5, that qualify as
securitization exposures must be reported in Schedule RC-R, Part II, item 9.c, column A.
The sum of Schedule RC-R, Part II, items 7 and 9.c, column A, must equal Schedule RC,
item 5.

If the bank is subject to the market risk capital rule, include in column B the fair value of all
trading assets that are covered positions as defined in Schedule RC-R, Part II, item 27
(except those trading assets that are both securitization exposures and covered positions,
which are excluded from column A of this item 7 and are to be reported instead in
Schedule RC-R, Part II, item 9.c, column A). The bank will report its standardized market
risk-weighted assets in Schedule RC-R, Part II, item 27. For further information on the
market risk capital rule and the meaning of the term “covered position,” refer to the discussion
of “Banks That Are Subject to the Market Risk Capital Rule” in the General Instructions for
Schedule RC-R, Part II, in the instructions for the FFIEC 031 and FFIEC 041 Call Reports.

FFIEC 051

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RC-R – REGULATORY CAPITAL

Part II. (cont.)
Caption and Instructions

8
{cont.)

o
o
o

o

Unsettled transactions (failed trades) that are reported as “Other assets” in
Schedule RC, item 11. For purposes of risk weighting, unsettled
transactions are to be reported in Schedule RC-R, Part II, item 22.
An institution that has adopted CECL includes the relevant portion (reflected as a
negative number) related to all other assets of Schedule RI-B, Part II, Memorandum
item 6, “Allowance for credit losses on other financial assets measured at amortized
cost,” less Schedule RC-R, part II, Memorandum item 4.c, “Amount of allowances
for credit losses on purchased credit deteriorated assets: Other financial assets
measured at amortized cost.” For example, if a firm reports $100 in Schedule RI-B,
Part II, Memorandum item 6, and $10 in Schedule RC-R, part II, Memorandum item
4.c, the firm would report ($90) in this column B.
An institution that has elected to apply the CECL transition provision (electing
institution) subtracts its applicable DTA transitional amount from temporary difference
DTAs, in accordance with section 301 of the regulatory capital rules. Specifically, an
electing institution reduces its temporary difference DTAs by seventy-five percent of
its DTA transitional amount during the first year of the transition period, fifty percent
of its DTA transitional amount during the second year of the transition period, and
twenty-five percent of its DTA transitional amount during the third year of the
transition period.

FT

Item No.

Report as a negative number in column B the amount of default fund contributions in the
form of commitments made by a clearing member to a central counterparty’s mutualized
loss-sharing arrangement.

In column C–0% risk weight, include:
o The carrying value of Federal Reserve Bank stock included in Schedule RC-F,
item 4;
o Accrued interest receivable on assets included in the zero percent risk weight
category (column C of Schedule RC-R, Part II, items 1 through 7);
o The carrying value of gold bullion not held for trading that is held in the bank's own
vault or in another bank's vault on an allocated basis, and exposures that arise from
the settlement of cash transactions (such as equities, fixed income, spot foreign
exchange, and spot commodities) with a central counterparty where there is no
assumption of ongoing credit risk by the central counterparty after settlement of the
trade and associated default fund contributions; and
o The portion of assets reported in Schedule RC, items 6 through 11, that is secured by
collateral or has a guarantee that qualifies for the zero percent risk weight. This
would include the portion of these assets collateralized by deposits in the reporting
institution.

R

A

•

In column G–20% risk weight, include:
o The carrying value of Federal Home Loan Bank stock included in Schedule RC-F,
item 4;
o Accrued interest receivable on assets included in the 20 percent risk weight category
(column G of Schedule RC-R, Part II, items 1 through 7);
o The portion of customers' acceptance liability reported in Schedule RC, item 11, that
has been participated to other depository institutions; and
o The portion of assets reported in Schedule RC, items 6 through 11, that is secured by
collateral or has a guarantee that qualifies for the 20 percent risk weight. This would
include the portion of these assets covered by FDIC loss-sharing agreements.

D

•

•

FFIEC 051

In column H–50% risk weight, include accrued interest receivable on assets included
in the 50 percent risk weight category (column H of Schedule RC-R, Part II, items 1
through 7). Also include the portion of assets reported in Schedule RC, items 6 through
11, that is secured by collateral or has a guarantee that qualifies for the 50 percent risk
weight.

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Part II. (cont.)
Item No.
9.a

Caption and Instructions
Held-to-maturity securities. Report in column A the amount of held-to-maturity (HTM)
securities reported in Schedule RC, item 2.a, that qualify as securitization exposures as
defined in §.2 of the regulatory capital rules. Refer to the instructions for Schedule RC-R,
Part II, item 2.a, for a summary of the reporting locations of HTM securitization exposures.

FT

Exposure amount to be used for purposes of risk weighting – bank has not made the
Accumulated Other Comprehensive Income (AOCI) opt-out election in Schedule RC-R,
Part I, item 3.a:
For a security classified as HTM where the bank has not made the AOCI opt-out election
(i.e., most AOCI is included in regulatory capital), the exposure amount to be risk weighted by
the bank is the carrying value of the security, which is the value of the asset reported on the
balance sheet of the bank determined in accordance with GAAP and in column A.
Exposure amount to be used for purposes of risk weighting – bank has made the AOCI
opt-out election in Schedule RC-R, Part I, item 3.a:
For a security classified as HTM where the bank has made the AOCI opt-out election (i.e.,
most AOCI is not included in regulatory capital), the exposure amount to be risk weighted by
the bank is the carrying value of the security reported on the balance sheet of the bank and in
column A, less any unrealized gain on the exposure or plus any unrealized loss on the
exposure included in AOCI.

A

If an HTM securitization exposure will be risk weighted using either the Simplified Supervisory
Formula Approach (SSFA) or the Gross-Up Approach, include as part of the exposure
amount to be risk weighted in this item any accrued interest receivable on the HTM security
that is reported in Schedule RC, item 11, “Other assets,” and included in Schedule RC-R,
Part II, item 9.d, columns A and B. Do not report this accrued interest receivable in column A
or B of this item.
In column B:
o If an HTM securitization exposure will be risk weighted using the 1,250 percent risk
weight approach, report any difference between the carrying value of the HTM
securitization exposure reported in column A of this item and the exposure amount of
the HTM securitization exposure that is to be risk weighted.
o If an HTM securitization exposure will be risk weighted using either the SSFA or the
Gross-Up Approach, report the carrying value of the HTM securitization exposure
reported in column A of this item.
o An institution that has adopted CECL includes the relevant portion (reflected as a
negative number) related to securitization exposures of Schedule RI-B, Part II, item
7, Column B, “Changes in Allowances for HTM Securities,” less Schedule RC-R, part
II, Memorandum item 4.b. “Amount of allowances for credit losses on purchased
credit deteriorated assets: Held-to-maturity securities.” For example, if a firm reports
$100 in RI-B, Part II, item 7, Column B, and $10 in Schedule RC-R, part II,
Memorandum item 4b, the firm would report ($90) in this column B.

D

R

•

FFIEC 051

•

In column Q, report the exposure amount of those HTM securitization exposures that are
assigned a 1,250 percent risk weight (i.e., those HTM securitization exposures for which
the risk-weighted asset amount is not calculated using the SSFA or the Gross-Up
Approach).

•

In column T, report the risk-weighted asset amount (not the exposure amount) of those
HTM securitization exposures for which the risk-weighted asset amount is calculated
using the SSFA, as described above in the General Instructions for Schedule RC-R,
Part II, and in §.41 to §.45 of the regulatory capital rules.

•

In column U, report the risk-weighted asset amount (not the exposure amount) of HTM
securitization exposures for which the risk-weighted asset amount is calculated using the
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Part II. (cont.)
Item No.

Caption and Instructions

Totals
Total assets, derivatives, off-balance sheet items, and other items subject to risk
weighting by risk weight category. For each of columns C through P, report the sum of
items 11 through 22. For column Q, report the sum of items 10 through 22.

24

Risk weight factor.

25

Risk-weighted assets by risk weight category. For each of columns C through Q, multiply
the amount in item 23 by the risk weight factor specified for that column in item 24.

26

Risk-weighted assets base for purposes of calculating the allowance for loan and
lease losses or adjusted allowances for credit losses, as applicable, 1.25 percent
threshold. Report the sum of:
• Schedule RC-R, Part II:
o Items 2.b through 20, column S,
o Items 9.a, 9.b, 9.c, 9.d, and 10, columns T and U, and
o Item 25, columns C through Q
• Schedule RC-R, Part I:
o The portion of item 10.b composed of “Investments in the institution’s own shares
to the extent not excluded as part of treasury stock,”
o The portion of item 10.b composed of “Reciprocal cross-holdings in the capital of
financial institutions in the form of common stock,”
o Items 11 and 13 through 16,
o Item 24, excluding the portion of item 24 composed of tier 2 capital deductions
reported in Part I, item 33, for which the institution does not have a sufficient
amount of tier 2 capital before deductions reported in Part I, item 32, to absorb
these deductions, and
o Item 33.

A

FT

23

NOTE: Item 27 is applicable only to banks that are subject to the market risk capital rule.
Standardized market risk-weighted assets. Report the amount of the bank's standardized
market risk-weighted assets. This item is applicable only to those banks covered by
Subpart F of the regulatory capital rules (i.e., the market risk capital rule), as provided in
§.201 of the regulatory capital rules and in the discussion of “Banks That Are Subject to the
Market Risk Capital Rule” in the General Instructions for Schedule RC-R, Part II.

R

27

D

A bank’s measure for market risk for its covered positions is the sum of its value-at-risk
(VaR)-based, stressed VaR-based, incremental risk, and comprehensive risk capital
requirements plus its specific risk add-ons and any capital requirement for de minimis
exposures. A bank's standardized market risk-weighted assets equal its measure for market
risk multiplied by 12.5 (the reciprocal of the minimum 8.0 percent capital ratio).
For further information on the meaning of the term “covered position,” refer to the discussion
of “Banks That Are Subject to the Market Risk Capital Rule” in the General Instructions for
Schedule RC-R, Part II.

28

FFIEC 051

Risk-weighted assets before deductions for excess allowance for loan and lease
losses or adjusted allowances for credit losses, as applicable, and allocated transfer
risk reserve. Report the sum of items 2.b through 20, column S; items 9.a, 9.b, 9.c, 9.d,
and 10, columns T and U; item 25, columns C through Q; and, if applicable, item 27. (Item
27 is applicable only to banks that are subject to the market risk capital rule.)

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Part II. (cont.)
Item No.
29

Caption and Instructions
LESS: Excess allowance for loan and lease losses. Report the amount, if any, by which
the bank's allowance for loan and lease losses ALLL or AACL, as applicable, for regulatory
capital purposes exceeds 1.25 percent of the bank's risk-weighted assets base reported in
Schedule RC-R, Part II, item 26.

FT

A bank’s ALLL or AACL, as applicable,allowance for loan and lease losses for regulatory
capital purposes equals Schedule RC, item 4.c, "Allowance for loan and lease losses," less
any allocated transfer risk reserve included in Schedule RC, item 4.c, plus Schedule RC-G,
item 3, "Allowance for credit losses on off-balance sheet credit exposures." If a bank’s ALLL
or AACL, as applicable,allowance for loan and lease losses for regulatory capital purposes,
as defined in the preceding sentence, exceeds 1.25 percent of Schedule RC-R, Part II, item
26, the amount to be reported in this item equals the bank’s ALLL or AACL, as applicable,
allowance for loan and lease losses for regulatory capital purposes less Schedule RC-R, Part
I, item 30, "Allowance for loan and lease losses includable in tier 2 capital."
The sum of the amounts reported in Schedule RC-R, Part I, item 30, plus Schedule RC-R,
Part II, item 29, must equal Schedule RC, item 4.c, less any allocated transfer risk reserve
included in Schedule RC, item 4.c, plus Schedule RC-G, item 3.

Total risk-weighted assets. Report the amount derived by subtracting items 29 and 30 from
item 28.

D

R

31

LESS: Allocated transfer risk reserve. Report the entire amount of any allocated transfer
risk reserve (ATRR) the reporting bank is required to establish and maintain 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, Part 347 of
the FDIC's Rules and Regulations, and 12 CFR Part 28, Subpart C (OCC)), and in any
guidelines, letters, or instructions issued by the agencies. The entire amount of the ATRR
equals the ATRR related to loans and leases held for investment (which is included in
Schedule RC, item 4,c, “Allowance for loan and lease losses”) plus the ATRR for assets other
than loans and leases held for investment.

A

30

FFIEC 051

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Part II. (cont.)
Memoranda
Item No.

Caption and Instructions

2.f and
3.f

Precious metals (except gold). Report the remaining maturities of other precious
metals contracts that are subject to the regulatory capital rules. Report all silver, platinum,
and palladium contracts.

2.g and

Other. Report the remaining maturities of other derivative contracts that are subject to the

4a

Amounts of allowances for credit losses on purchased credit-deteriorated assets.
Only institutions that have adopted CECL are required to report allowances for credit losses
on purchased credit-deteriorated (PCD) assets. ASU No. 2016-13 also introduces PCD
assets as a replacement for Purchased credit impaired (PCI) assets. The PCD asset
definition covers a broader range of assets than the PCI asset definition. CECL requires
banking organizations to estimate and record credit loss allowances for a PCD asset at the
time of purchase. The credit loss allowance is then added to the purchase price to
determine the amortized cost basis of the asset for financial reporting purposes. Postacquisition increases in credit loss allowances on PCD assets will be established through a
charge to earnings. This is different from the current treatment of PCI assets, for which
banking organizations are not permitted to estimate and recognize credit loss allowances at
the time of purchase. Rather, in general, credit loss allowances for PCI assets are estimated
subsequent to the purchase only if there is deterioration in the expected cash flows from the
assets.
Amounts of allowances for credit losses on purchased credit-deteriorated assets:
Loans and leases held for investment. Report all allowances for credit losses on PCD
loans and leases.

Amounts of allowances for credit losses on purchased credit-deteriorated assets:
Held-to-maturity debt securities. Report all allowances for credit losses on PCD HTM
debt securities.

R

4b

FT

4

regulatory capital rules. For contracts with multiple exchanges of principal, notional amount
is determined by multiplying the contractual amount by the number of remaining payments
(i.e., exchanges of principal) in the derivative contract.

A

3.g

Amounts of allowances for credit losses on purchased credit-deteriorated assets:
Other financial assets measured at amortized cost. Report all allowances for credit
losses on all other PCD assets, excluding PCD loans, leases, HTM debt securities, and AFS
debt securities.

D

4c

FFIEC 051

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FFIEC 051

SU – SUPPLEMENTAL

Caption and Instructions

8
(cont.)

(b) Credit card receivables sold and securitized by the reporting institution with servicing
retained or with recourse or other seller-provided credit enhancements included in
Schedule SU, item 4.a; and
(c) The reporting institution’s seller’s interests in credit card receivables included as
assets in Schedule RC if not reported in Schedule RC-C, Part I, item 6.a.
(Include comparable data on credit card receivables for any affiliated depository
institutions.)
OR
(2) The institution is a credit card specialty institution as defined for purposes of the Uniform
Bank Performance Report (UBPR). According to the UBPR Users Guide, credit card
specialty institutions are currently defined as those institutions that exceed 50 percent for
the following two criteria:
(a) Credit Cards plus Securitized and Sold Credit Cards divided by Total Loans plus
Securitized and Sold Credit Cards.
(b) Total Loans plus Securitized and Sold Credit Cards divided by Total Assets plus
Securitized and Sold Credit Cards.

D
R
A
FT

Item No.

8.a

Outstanding credit card fees and finance charges included in credit cards to
individuals for household, family, and other personal expenditures (retail credit cards).
Report the amount of fees and finance charges included in the amount of credit card
receivables reported in Schedule RC-C, Part I, item 6.a.

8.b

Separate valuation allowance for uncollectible retail credit card fees and finance
charges. Report the amount of any valuation allowance or contra-asset account that the
institution maintains separate from the allowance for loan and lease losses to account for
uncollectible fees and finance charges on credit cards (as defined for Schedule RC-C, Part I,
item 6.a). This item is only applicable to those institutions that maintain an allowance or
contra-asset account separate from the allowance for loan and lease losses. Do not include
in this item the amount of any valuation allowance established for impairment in retained
interests in accrued interest receivable related to securitized credit cards.

8.c

Amount of allowance for loan and lease losses attributable to retail credit card fees
and finance charges. Report in this item the amount of the allowance for loan and lease
losses that is attributable to outstanding fees and finance charges on credit cards (as defined
for Schedule RC-C, Part I, item 6.a). This amount is a component of the amount reported in
Schedule RC, item 4.c, and Schedule RI-B, Part II, item 7. Do not include in this item the
amount of any valuation allowance established for impairment in retained interests in accrued
interest receivable related to securitized credit cards.

8.d

Uncollectible retail credit card fees and finance charges reversed against year-to-date
income. Report the amount of fees and finance charges on credit cards (as defined for
Schedule RC-C, Part I, item 6.a) that the institution reversed against either interest and fee
income or a separate contra-asset account during the calendar year-to-date. Report the
amount of fees and finance charges that have been reversed on a gross basis, i.e., do not
reduce the amount of reversed fees and finance charges by recoveries of these reversed
fees and finance charges. Institutions that have not adopted ASU 2016-13 Eexclude from
this item credit card fees and finance charges reported as charge-offs against the allowance
for loan and lease losses in Schedule RI-B, Part I, item 5.a, column A.

For institutions that have adopted ASU 2016-13, exclude from this item credit card fees and
finance charges reported as charge-offs against the allowance for credit losses on loans and
leases in Schedule RI-B, part I, item 5.a, column A.

FFIEC 051

SU-14

SU – SUPPLEMENTAL

(6-18)
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60