Reporting FR Y-9C (non AA HCs) with less than $5 billion in total assets

DRAFT
Board of Governors of the Federal Reserve System
HCB & HCC updates to incorporate ASU 2022-01 changes

Instructions for Preparation of

Consolidated Financial Statements for
Holding Companies
Reporting Form FR Y-9C
Effective March 2022

Schedule HC-B

Line Item 7

(2) Preferred stock of U.S.-chartered corporations and
business trusts that by its terms either must be
redeemed by the issuing corporation or trust or is
Unallocated
portfolio
fairof
value
hedge basis
adjustments.
redeemable
at thelayer
option
the holder,
including
trust
preferred securities subject to mandatory redemption.

Report the total amount of portfolio layer fair value hedge basis adjustments
(FVHBA) not (3)
allocated
to individual
debt securities
in column
C only. and
Detached
U.S. AFS
government
security
coupons

ex-coupon U.S. government securities held as the

As defined in Accounting Standards Update No. 2022-01, Derivatives and
result
either
theirPortfolio
purchase
orMethod”
the holding
comHedging (Topic 815),
“FairofValue
Hedging
Layer
(ASU 2022-01),
stripping
such
securities
and accounting
Treasury to a
the portfolio layer pany’s
method was
added toof
allow
entities
to apply hedge
single closed portfolio
of financial
or one
or more COUGARs,
beneficial interests
secured
receipts
such assets
as CATs,
TIGRs,
LIONs,
by a portfolio of financial
instruments
notGlossary
expected toentry
be affected
by
and ETRs.
(Referthat
toisthe
for ‘‘coupon
prepayments, defaults, or other factors affecting the timing and amount of cash flows
Treasury
receipts,
and
STRIPS’’
forqualifying
addifor the designatedstripping,
hedge period.
Under ASU
2022-01,
different
types of
tionaltogether
information.)
assets can be grouped
in a portfolio layer hedge.

Exclude
from other
domestic
securities
investments
Per the standard,
an institution
should
not adjustdebt
the recorded
investment
or the
in
collateralized
debt
for
which
the
underlying
collateral
discount rate of the individual assets or individual beneficial interest included
in the
single, closedisportfolio
a basis
thatsecurities
is maintained
on a closed
portfolio
a poolfor of
trustadjustment
preferred
issues
by U.S.
basis. As such, an institution that applies the portfolio layer method to a closed
business trusts (report as structured financial products in
portfolio of AFS debt securities should not allocate the portfolio layer FVHBAs to a
Schedule
HC-B,should
item 5(b)).
more granular
level. Institutions
report these unallocated amounts in this item
7, column C.
Line Item 6(b) Other foreign debt securities.

If the amount to be reported in this item represents a reduction in the amounts
Report in
the items
appropriate
theC,amortized
cost and
reported in Schedule
RC-B,
1 throughcolumns
6.b, column
report the amount
with a
minus (-) sign.
fair value of all other foreign debt securities not held for

trading issued by non-U.S.-chartered corporations, foreign governments, or special international organizations.
Other Foreign debt securities include:
(1) Bonds, notes, debentures, equipment trust certificates, and commercial paper issued by non-U.S.chartered corporations.
(2) Debt securities issued by foreign governmental units.
(3) Debt securities issued by international organizations
such as the International Bank for Reconstruction
and Development (World Bank), Inter-American
Development Bank, and Asian Development Bank.
(4) Preferred stock of non-U.S.-chartered corporations
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).
NOTE: Investments in equity securities, including investment in mutual funds, with readily determinable fair
values not held for trading that were previously reportable in Schedule HC-B, item 7, columns C and D, should
be reported in Schedule HC, item 2(c), ″Equity securities
with readily determinable fair values not held for
trading″.
FR Y-9C
Schedule HC-B

December 2020

Line Item 7 Not applicable.
Line Item 8 Total.
Report the sum of items 1 through 6b. For holding
companies that have not adopted FASB Accounting
Standards Update No. 2016-13 (ASU 2016-13), the total
of column A for this item must equal Schedule HC,
item 2(a), “Held-to-maturity securities.” The total for
column D must equal Schedule HC, item 2(b), “Availablefor-sale debt securities.”
For holding companies that have adopted ASU 2016-13,
which governs the accounting for credit losses, the total
of column A for this item must equal Schedule HC, item
2(a), “Held-to-maturity securities” plus Schedule HI-B,
Part II, item 7, column B, balance end of current period
for “Held-to-maturity debt securities,” and the total of
column D for this item must equal Schedule HC, item
2(b), “Available-for-sale debt securities.”
Line Item M1

Pledged securities.

Report the amortized cost of all held-to-maturity debt
securities included in Schedule HC-B, column A, above;
the fair value of all available-for-sale debt securities
included in Schedule HC-B, column D above; and the
fair value of all equity securities with readily determinable fair values not held for trading included in Schedule
HC, item 2c that are pledged to secure deposits, repurchase transactions, or other borrowings (regardless of the
balance of the deposits or other liabilities against which
the securities are pledged), as performance bonds under
futures or forward contracts, or for any other purpose.
Include as pledged securities:
(1) Held-to-maturity debt securities, available-for-sale
debt securities, and equity securities with readily
determinable fair values not held for trading that
have been ‘‘loaned’’ in securities borrowing/lending
transactions that do not qualify as sales under 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).
(2) Held-to-maturity debt securities, available-for-sale
debt securities, and equity securities with readily
determinable fair values not held for trading securities held by consolidated variable interest entities
(VIEs) that can be used only to settle obligations of
HC-B-9

Schedule HC-C

adopted ASC Topic 842, including the lease receivable, unamortized initial direct costs (if applicable),
and the unguaranteed residual asset, net of any
deferred selling profit on a direct financing lease; and
(3) Leveraged leases accounted for under ASC Topic 840
(including leveraged leases that were grandfathered
upon the adoption of ASC Topic 842 and remain
grandfathered).
Holding companies should report the total amount of
these leases in domestic offices in column B and a
breakdown of these leases for the fully consolidated
holding company between leases to individuals for
household, family, and other personal expenditures and
all other leases in column A. For further discussion of
leases where the holding company is the lessor, refer to
To the extent
the preferred
is to report the specific loan
thepossible,
Glossary
entry fortreatment
“lease accounting.”

categories net of both unearned income and net unamortized loan fees. A
reporting bank
shouldall
enter
(on the
column B; subdivisions
on the FFIEC in
Include
leases
toFFIEC
states041,
andin political
031, in columns A and B, as appropriate) unearned income and net
the U.S. in this item.
unamortized loan fees only to the extent that these amounts are included in
(i.e., not Note: Items 10(a) and 10(b) are to be completed by
deducted from) the various loan items of this schedule (Schedule RC-C, part
holding
I, items 1 through
9). companies with $5 billion or more in total

consolidated assets. Item 10(c) is to be reported by

As defined in
Accounting
Standards Update
No. 2022-01,
andtotal
holding
companies
with less
than $5Derivatives
billion in
Hedging (Topic
815), “Portfolio Layer Method” (ASU 2022-01), the portfolio
assets.
layer method was added to allow entities to apply hedge accounting to a
closed portfolio of financial assets or one or more beneficial interests secured
Line
Item instruments
10(a) Leases
by a portfolio
of financial
that is to
not individuals
expected to befor
affected by
prepayments,
defaults, or family,
other factors
timing and
amount of
household,
andaffecting
other the
personal
expenditures.
cash flows for the designated hedge period. Under ASU 2022-01, different
types of qualifying
can be grouped
together
in a portfolio
hedge. to
Reportassets
in column
A the net
investments
in layer
all leases

individuals for household, family, and other personal

Per the standard, an institution should not adjust the recorded investment or
expenditures (i.e., consumer leases). Include direct financthe discount rate of the Individual assets or individual beneficial interest
ing
leasesportfolio
accounted
for under
ASC
Topic
840, Leases,
included in the closed
for a basis
adjustment
that
is maintained
on
the closed portfolio
basis. As such,
an has
institution
that applies
the portfolio
by an institution
that
not adopted
ASC
Topic 842,
method to aLeases;
closed portfolio
loans should
allocate theleases
portfolio
layer fair
direct offinancing
andnotsales-type
accounted
value hedge basis adjustments (FVHBAs) to a more granular level and should
for under ASC Topic 842 by an institution that has
include these unallocated amounts in this item 11.

adopted this topic; and leveraged leases accounted for

If an institution
reports
each
loan item
this schedule
net ofthat
bothwere
unearned
under
ASC
Topic
840 in(including
those
grandincome andfathered
net unamortized
loanadoption
fees and has
no unallocated
portfolio
layer
upon the
of ASC
Topic 842
and remain
FVHBAs applicable to loans, enter a zero in this item. If the amount to be
grandfathered). For further information on extending
reported in this item represents an addition to the amounts reported in
creditPart
to I,individuals
for10,
consumer
purposes,
refer
to the
Schedule RC-C,
items 1 through
because of
unallocated
portfolio
layer FVHBAs,
report the amount
with a minus
(-) sign.
instructions
for Schedule
HC-C,
part I, items 6.c, “Auto-

mobile loans,” and 6.d, “Other consumer loans.”

institution that has not adopted ASC Topic 842, Leases;
direct financing and sales-type leases accounted for under
ASC Topic 842 by an institution that has adopted this
topic; and leveraged leases accounted for under ASC
Topic 840 (including those that were grandfathered upon
the adoption of ASC Topic 842 and remain grandfathered).
Line Item 10(c) Lease finance receivable.
Holding companies with less than $5 billion should
report in column A, all outstanding balances relating to
lease finance receivables acquired by the fully consolidated holding company. Include direct financing leases
accounted for under ASC Topic 840, Leases, by an
institution that has not adopted ASC Topic 842, Leases;
direct financing and sales-type leases accounted for under
ASC Topic 842 by an institution that has adopted this
topic; and leveraged leases accounted for under ASC
Topic 840 (including those that were grandfathered upon
the adoption of ASC Topic 842 and remain grandfathered).
Line Item 11 LESS: Any unearned income on
loans reflected in items 1–9 above.
To the extent possible, the preferred treatment is to report
the specific loan categories net of both unearned income
and net unamortized loan fees. A reporting holding
company should enter in columns A and B of this item, as
appropriate, unearned income and net unamortized loan
fees only to the extend that these amounts are included in
(i.e., not deducted from) the various loan items (items 1
through 9) of this schedule. If a holding company reports
each loan item of this schedule net of both unearned
income and net unamortized loan fees, enter a zero in this
item.
Do not include net unamortized direct loan origination
costs in this item; such costs must be added to the related
loan balances reported in Schedule HC-C, items 1
through 9. In addition, do not include unearned income
on lease financing receivables in this item. Leases should
be reported net of unearned income in Schedule HC-C,
item 10.

Line Item 10(b) All other leases.
Report in column A the net investments in all leases to
lessees other than for household, family, and other personal expenditure purposes. Include direct financing
leases accounted for under ASC Topic 840, Leases, by an
FR Y-9C
Schedule HC-C

September 2020

Line Item 12 Total loans and leases, held for
investment and held for sale.
Report in columns A and B, as appropriate, the sum of
items 1 through 10 less the amount reported in item 11.
HC-C-19