Reporting Investment Edge and agreement corporations (quarterly)

Board of Governors of the Federal Reserve System

Instructions for the Preparation of

Consolidated Report of Condition and Income for
Edge and Agreement Corporations
Reporting Form FR 2886b

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December 2024

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Effective March 2021

INSTRUCTIONS FOR PREPARATION OF

The Consolidated Reports
of Condition and Income
for Edge and Agreement Corporations
FR 2886b

as of the last calendar
day of March, June,
September, and
December,

A

General Instructions

Reporting Basis

As noted above, the report should cover the consolidated operations of the reporting corporation,
including:

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(1) the reporting corporation’s head office;

(2) any branch offices of the reporting corporation;

(3) any International Banking Facility (IBF) established by the reporting corporation at the head
office and at any branch offices;
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(4) all majority-owned foreign banks held directly by
the reporting corporation pursuant to Section 25(a) of the Federal Reserve Act;

(5) all majority-owned subsidiaries of the reporting
corporation that are significant, EXCEPT subsidiary Edge or agreement corporations;
(6) all nonsignificant majority-owned subsidiaries
that the bank has elected to consolidate on a consistent basis.
Where this report collects information on a branch
office separately, such information should include balances of an IBF of only that branch office. Assets and
liabilities may be reported on a net basis in this report
whenever the reporting organization has a “right of
setoff.” See the entry for Offsetting in the Definitions
section for further information. Also see the
FFIEC 031 General Instructions for further informaFR 2886b

Inactive corporations should report only if the corporation has engaged in some business activity at one
time. Corporations, such as a name saver organizations, that have never engaged in any business activity
should not report.

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The FR 2886b report must be filed by each Edge and
agreement corporation organized under Section 25 or
25(a) of the Federal Reserve Act. All information
should reflect the consolidation of all branches, and
underlying subsidiary companies.

tion on consolidation, accrual basis reporting, and
generally accepted accounting principles.

Submission Date and Reporting Frequency
An Edge or agreement corporation must file the
FR 2886b report quarterly if total consolidated assets
of the corporation exceed $50 million. An Edge or
agreement corporation with total consolidated assets
of $50 million or less must file the FR 2886b report
annually as of December 31.
If an Edge or agreement corporation meets the criteria
above to file quarterly as of June 30 of the preceding
year, the corporation must file the FR 2886b quarterly
beginning in March of the current year. In addition, if
the corporation meets the quarterly criteria due to a
business combination, then it must report the
FR 2886b quarterly beginning with the first quarterly
report date following the effective date of the business
combination. Once a corporation begins filing the
FR 2886b quarterly, it should file a complete
FR 2886b quarterly report going forward. If the Edge
or agreement corporation does not meet the quarterly
filing criteria for four consecutive quarters, then the
corporation may revert to annual filing. Edge and
agreement corporations that do not meet the quarterly
filing threshold may be requested to file quarterly if the
Federal Reserve Bank has determined that these corporations have significant risk exposures.
The term “submission date” is defined as the date by
which an Edge corporation’s completed original report
must be received by the district Federal Reserve Bank.
GEN-1
March 2009
December
2024

General Instructions
as on

An official copy (non-facsimile) of the FR 2886b consisting of the balance sheet, memorandum item, and all
schedules for domestic and foreign offices of banking
and nonbanking Edges should reach the Federal
Reserve Bank of the District in which the reporting
office is domiciled, no later than 30 calendar days after
the close of business of the last calendar day of the
quarter or year-end date for annual filers (subject to the
timely filing provisions set forth in the following
paragraph).

Edges and Agreement
Corporations must
Currency in Which Report is Prepared
maintain in their files a
All items in the report should be expressedphysical
in United
or electronic
States dollars. Assets or liabilities payable scanned
in foreigncopy of the
currencies should be converted into dollars
at the
manually signed page
exchange rate prevailing on the report date.
1 of the Reserve Banksupplied forms
received for the report
Clarity, Completeness and Amounts
date and a printout of
Reported
the data submitted for
a period of three years
Reports should be clearly and distinctly typewritten,
following
submission.
and care should be exercised that each copy
is clearly
legible and conforms with the printed lines on the
form. Computer printouts are also acceptable, provided that they are identical in format and detail to the
reporting form, including all items and column captions. All dollar amounts should be rounded to the nearest thousands with the total asset figure based on
unrounded numbers, then rounded. Item captions in
the submission
theIfreport
should in no way be amended, nor should
deadline items
falls on
additional
beaadded. An amount or the word
weekend
or holiday,
thefor every item on the report.
“none”
should
be entered
reportfor
must
received
Except
thebe
items
listed below, negative entries are
the first business
noton
appropriate
on theday
report form and shall not be
after theHence,
Saturday,
reported.
assets with credit balances must be
Sunday,
holiday.
reported
inor
liability
items and liabilities with debit balEarlier
submission
aidsin asset items, as appropriate,
ances
must
be reported
Reserve
in these instructions. Negative
andthe
inFederal
accordance
with
reviewing
amounts
thatand
areprocessing
permitted should be enclosed in
the reports.The items for which negative entries may
parentheses.
be made, if appropriate, are:

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The filing of an Edge corporation’s completed original
report will be considered timely, regardless of when the
reports are received by the district Reserve Bank, if
these reports are mailed first class and postmarked no
later than the third calendar day preceding the submission deadline. In the absence of a postmark, a corporation whose completed original report is received late
may be called upon to provide proof of timely mailing.
A “Certificate of Mailing” (U.S. Postal Service Form
3817) may be used to provide such proof. If an overnight delivery service is used, entry of the completed
original report into the delivery system on the day
before the submission deadline will constitute timely
submission. In addition, the hand delivery of the completed original reports, on or before the submission
deadline, to the location to which the report would
otherwise be mailed is an acceptable alternative to
mailing such reports. Corporations that are unable to
obtain the required directors’ signatures on their completed original reports in sufficient time to file these
reports so that they are received by the submission
deadline may contact the district Reserve Bank to
which they mail their original reports to arrange for the
timely submission of their report data and the subsequent filing of their signed reports.

page of this report, the authorized officer acknowledges that any knowing and willful misrepresentation
or omission of a material fact on this report constitutes
fraud in the inducement and may subject the officer to
legal sanctions provided by 18 USC 1001 and 1007.
Signatures need not be notarized. All copies shall bear
the same signatures ason the original, but these signatures may be facsimiles or photocopies.

15-day extension. A respondent may take an additional
15 calendar days to submit its completed report. Such
banks are urged to use the additional time only if absolutely necessary and to make every effort to report as
soon as possible, preferably within the 30-day submission period.

Signatures and Attestation
The original of the report shall be manually signed on
the cover sheet of the submitted report, in the manner
indicated on the cover sheet, by a duly authorized officer of the reporting institution. By signing the cover
GEN-2

March 2011

December 2024

(1) Schedule RC, Item 23, “Retained earnings,”
(2) Schedule RC, Item 24, “Accumulated other comprehensive income,”
(3) Schedule RC, Item 25, “Other equity capital
components,”
(4) Schedule RC, Item 26, “Total equity capital,” and
FR 2886b

General Instructions

(5) Schedule RC-R, Item 4, “Total qualifying capital
(i.e., Tier 1 and Tier 2 capital) allowable under the
risk-based capital guidelines.”
On Schedule RI, Income and Expenses, and on Schedule RI-A, Changes in Equity Capital, negative entries
may appear as appropriate. Income items with a debit
balance and expense items with a credit balance must
be reported in parentheses.

Additional Forms

Confidentiality

This report and accompanying instructions have been
designed to generally conform with the form and
instructions to the Consolidated Reports of Condition
and Income (FFIEC 031) that U.S. banks prepare
quarterly and submit to their U.S. regulatory agencies.
Unless expressly stated otherwise, the definitions and
procedures used to determine individual items in this
report should conform with those used to prepare the
FFIEC 031 report. In some instances, where an
FR 2886b item is identical to an item reported on the
FFIEC 031, only a reference to the corresponding
item(s) in the FFIEC 031 instructions is contained in
brackets. For purposes of these line item instructions,
the FASB Accounting Standards Codification is
referred to as “ASC.” Both the reporting office totals
and the IBF-only columns must be completed if the
office has IBF balances.

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Copies of the FR 2886b form can be obtained from the
Federal Reserve Bank in the Federal Reserve District in
which the reporting institution is located, or may be
found on the Federal Reserve Board’s public website
(www.federalreserve.gov).

items are found in those schedules. The content of
items on the balance sheet should be identical to the
content of the same items on the supporting schedules
even though submission of the schedules may not be
required. See the General Instructions to determine
whether the supporting schedules are required.

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The Federal Reserve System regards as confidential the
following portions of this report: for respondents
engaged in banking, Schedules RC-M (except item 3)
and RC-V; for respondents not engaged in banking,
Schedule RC-M (except item 3). If it should be determined subsequently that any confidential information
collected on this form must be released, respondents
will be notified.

Check Box. Institutions must select on page 1 of the
form whether any confidential treatment is requested
for any portion of the report. If the answer to the first
question is “Yes,” the Reporter must indicate whether a
letter justifying the request for confidential treatment is
included with the submission or has been provided
separately. If an institution does not fulfill both
requirements, or does not check the appropriate boxes,
confidential treatment will not be considered.
Note: Responses to the questions regarding confidential
treatment on page 1 of the form will be considered public
information.

Detailed Instructions
Some items on the balance sheet are also reported on
supporting schedules. Detailed instructions for those

Banking vs. Nonbanking Designation
All respondents must designate whether their corporation is a banking or nonbanking type in the box on the
front page of the report form. A corporation is considered to be “engaged in banking” if it is ordinarily
engaged in the business of accepting deposits in the
U.S. from nonrelated organizations, whether directly
or through its branch offices.
Reporting Requirements by Type
Banking

Nonbanking

Schedules RI, RI-A, RI-B
Schedule RC: Balance Sheet
Memorandum to Balance Sheet
Schedules RC-A, through RC-V

Schedules RI, RI-A, RI-B
Schedule RC: Balance Sheet
Memorandum to Balance Sheet
Schedules RC-L, RC-M, RC-N

RC-D

FR 2886b

GEN-3
December 2024
March 2021

Schedule RI
and 3

A through C, plus Schedule RI-B, Memorandum
item 1. Enclose negative amounts in parentheses.

Line Item 5 Noninterest income:

Line Item 5(a) Noninterest income from nonrelated
organizations:

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Line Item 5(a)(1) Equity in undistributed earnings of
nonrelated organizations.
Report all income from holdings of corporate stock of
the type reported in Schedule RC-B, Item 3, “Equity
interest in nonrelated organizations.”

Line Item 5(a)(2) Net gain (loss) on foreign exchange
transactions.
Report the net gain or loss from all foreign exchange
transactions, including the maturing or covering of
outstanding forward contracts within the reporting
period, regardless of whether these transactions are
conducted in the trading department or in another
department of the corporation. Also include any net
gain or loss resulting from translating foreign currency
denominated investments that arise from the application of ASC Topic 830, Foreign Currency Matters (formerly FASB Statement No. 52, Foreign Currency
Translation). Include incidental fee income from such
transactions. Exclude gains and losses on swap transactions (report as adjustments to the income or
expense of the related asset or liability) and any gains
or losses that must be excluded in accordance with
ASC Topic 830. If this net amount is a debit balance,
enclose it in parentheses.
FR 2886b

Line Item 5(a)(4) Gains (losses) and fees from trading
assets and liabilities.
Report the net gain or loss from the sale of assets
reportable in Schedule RC, Item 5, “Trading Assets,”
and from liabilities reportable in Schedule RC, Item 14,
“Trading Liabilities.” Include:
(1) revaluation adjustments to the carrying value of
assets reportable in Schedule RC, Item 5, “Trading Assets, and Schedule RC, Item 14, “Trading
Liabilities,” resulting from the periodic marking
to market of such assets and liabilities

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Line Item 4(b) Provision for allocated transfer risk.
If the reporting corporation (banking only) has any
credit exposure classified as Value Impaired which
requires it to establish and maintain an allocated transfer risk reserve as specified in Section 905(a) of the
International Lending Supervision Act of 1983, in
Subpart D of Federal Reserve Regulation K, and in
any guidelines, letters, or instructions issued by the
Federal Reserve, report in this item the amount of the
provision for allocated transfer risk. If the reporter has
no Value Impaired exposure which requires it to establish and maintain an allocated transfer risk reserve,
report a zero or the word “none.” Also report this on
Schedule RI-B, Item 3, Column D.

Line Item 5(a)(3) Income from fiduciary activities.
Include gross income from services rendered by this
reporting organization in any fiduciary capacity.

(2) revaluation adjustments from the periodic marking to market of interest rate, foreign exchange,
equity derivative, and commodity and other contracts held for trading purposes
(3) incidental income and expenses related to the purchase and sale of assets reportable in Schedule RC, Item 5, and Schedule RC, Item 14.

Line Item 5(a)(5) Other commissions, fees, etc.
Enter the total of all commissions and fees received
from clients of the reporting corporation for services
routinely or ordinarily performed under the laws of or
accepted practices in the country in which the reporter
is domiciled. Such services would include the collection
of checks, notes, and bills of exchange; the receipt of
collections for public utilities and other firms; the sale
of bank drafts; the acceptance of bills of exchange; the
purchase and sale of securities, acceptances, and other
negotiable paper and the negotiation of loans for the
account of customers; the lending of securities owned
by the reporting corporation; the servicing of evidences of debt owned by others; the provision of data
processing services; and the issuance and handling of
letters of credit. Do not include reimbursed expenditures made by the reporting corporation on behalf of
clients or rentals received from land or premises leased
or subleased to others by the reporter. Such rentals
should be included in Item 5(a)(6) or netted against the
amount shown in Item 7(a)(2).
Do not include reimbursement for out-of-pocket
expenditures made by this reporting corporation for
RI-3

March 2019

December 2024

Schedule RI-B

Line Item 2 Recoveries.
Include recoveries of amounts previously charged off
against the four allowance accounts.

Line Item 6 Balance at end of current period.
Report the sum of items 1, 2, 3, and 4, minus item 5.
The amount reported in column A must equal the
4
amount reported in Schedule RC,through
item 4(b).

Line Item 3 Provisions.
This item corresponds with provisions, Items 4(a) and
4(b) of Schedule RI. If any amount is negative, enclose
it in parentheses.

Memoranda

Line Item M1 Provisions for credit losses on other
financial assets measured at amortized cost (not
included in item 3 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(a), other
than loans, leases, held-to-maturity debt securities, and
available-for-sale debt securities.

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Line Item 4 Adjustments, net.
Report the net cumulative effect of all corrections and
adjustments made in any amended report(s) to the
amount originally reported as the ending balance of
the allowances in this report for the previous year-end
period. Such adjustments would include changes to the
reserves caused by mergers or acquisitions and any
transfers between the four reserves authorized by Subpart D of Federal Reserve Regulation K and any
related guidelines, letters, instructions issued by the
Federal Reserve, or any additional allowances required
upon or subsequent to the adoption of ASU 2016-13.

Memoranda items 1 and 2 are only to be
completed by institutions that have adopted
ASU 2016-13.

Line Item 5 Less: charge-offs.
Enter in the appropriate column the amount of gross
charge-offs on financial assets and for transfer risk
purposes during the period.

RI-B-2

March 2019

December 2024

Line Item M2 Allowances for credit losses on other
financial assets measured at amortized cost (not
included in item 6 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 1, above.
See Insert A

FR 2886b

Insert A
Line Item M3 Provisions for credit losses on
off-balance-sheet credit exposures.
Report in this item the year-to-date amount of provisions
for credit losses (or reversals of provisions) on offbalance-sheet credit exposures included in the amount
reported in Schedule RI, item 4(a). Provisions for credit
losses (or reversals of provisions) on off-balance-sheet
credit exposures represent the amounts necessary to
adjust the related allowance for credit losses at the
quarter-end report date for management’s current estimate
of expected credit losses on these exposures.

Line Item M4 Estimated amount of expected
recoveries of amounts previously written off1
included within the allowance for credit losses on
loans and leases held for investment (included in
item 6, column A, “Balance at end of current
period”).
Report in this item the estimated amount of expected
recoveries of amounts previously written off
included within the allowance for credit losses on
loans and leases held for investment. This item
applies to loans and leases held for investment,
including purchased credit deteriorated loans held for
investment, and does not apply to held-to-maturity
debt securities or available-for-sale debt
securities.

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Expected recoveries of amounts previously written
off shall be included in the allowance for credit losses
and shall not exceed the aggregate of amounts
previously written off and expected to be written off
by an institution. However, exclude from this item
the estimated amount of expected recoveries of
amounts expected to be written off included in the
allowance for credit losses.

1

In accordance with ASU 2016-13, estimated expected
recoveries are a component of management’s
estimation of the net amount expected to be collected
for a financial asset or a pool of financial assets if an
institution can support an estimate of expected
recoveries for a pool of unsecured loans, each of
which was deemed uncollectible and fully written off
on an individual asset basis, the institution reduces
the allowance for credit losses by the institution’s
estimate of recoveries expected on a pool basis.

The term "written off" as used in ASU 2016-13 and in the instructions for this item is used interchangeably with the
term "charged off," which is used elsewhere in the FR Y-9C instructions.

Schedule RC

more than one business day (other than securities
sold under repurchase agreements to maturity); and
(3) All liabilities representing sales of participation in
pools of securities that mature in more than one
business day.
Exclude the following:

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(1) Due bills issued and similar instruments, whether
collateralized or uncollateralized (to be treated as
a borrowing and reported in Item 15, “Other borrowed money;”)

Line Item 15 Other borrowed money (including
mortgage indebtedness and obligation under capital
leases).
Report the total amount borrowed by the reporting
corporation on its promissory notes, on notes and bills
rediscounted, on loans or other assets sold with
recourse or with the reporting corporation’s endorsement or guarantee, on due bills issued, on assets sold
that the corporation did not own, or on any other obligation for the purpose of borrowing money. Also
include any mortgages, liens, or capitalized lease property. Include securities sold under repurchase agreements by foreign branches of the corporation, unless
legally defined as deposits in the country where the
liability is booked.

(2) Purchase of so-called “term federal funds” (i.e.,
purchases of immediately available funds with a
maturity of more than one business day) other
than security repurchase agreements specified
above (to be reported in Item 15, “Other borrowed money;”)

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(3) Securities sold under agreements to repurchase by
foreign branches of the reporting corporation
and “Federal funds purchased” from banks in the
U.S. by foreign branches of the corporation (to be
reported in Item 15, “Other borrowed
money;”) and
(4) So-called yield maintenance dollar repurchase
agreement.

See entry for Federal Funds Transactions in the
Definitions section for definitions of various terms that
are used in the above instructions for Liability Item 13.
Line Item 14 Trading liabilities.
Report the amount of liabilities from the reporting
organization’s trading activities. Include liabilities
resulting from sales of assets that the reporting bank
does not own (see FFIEC 031 Glossary entry for
“short position”) and revaluation losses from the
“marking to market” (or the “lower of cost or market”) of interest rate, foreign exchange rate, and other
off-balance sheet commodity and equity contracts into
which the reporting bank has entered for trading,
dealer, customer accommodation, and similar purposes. Refer to the FFIEC 031 instructions for further
information.
FR 2886b

Line Item 16 Not applicable.
Line Item 17 Subordinated notes and debentures.
Report the amount of outstanding subordinated notes
and debentures (including mandatory convertible
debt).
Line Item 18 Other liabilities.
Enter the total of any liability to nonrelated organizations that cannot be properly reported in Items 12
through 17 above. Included here are such items as the
negative fair value of derivative contracts held for purposes other than trading, amount of accrued and
unpaid expenses, net deferred income taxes, dividends
declared but not yet payable, liability for deferred payment letters of credit, deferred gains on financial contracts, unamortized loan fees (except those that are
yield-related), and others not properly reported above.
Report the amount of unmatured drafts and bills of
exchange accepted by the corporation or by other institutions for its account that are outstanding. Acceptances acquired by the reporter through purchase or
discount and held as of the report date should be
excluded and reported as loans in Assets, Item 4,
“Loans and lease financing receivables, net;” and
included in Schedule RC-C. Liabilities for letters of
credit issued for money or its equivalent should be
reported as deposits. Participation of acceptances does
not reduce the accepting Edge’s obligation to honor
the full amount of the acceptance. (See the Definitions
section for a detailed discussion of the treatment of
acceptances.) Institutions that have adopted ASU
RC-7
March 2019
December
2024

Schedule RC
-

2016-13 should exclude allowances for credit losses on
off-balance sheet exposures that are unconditionally
cancellable.
Line Item 19 Liabilities to nonrelated organizations.
This item is the sum of liability Items 12 through 18
above.

Equity Capital

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Equity capital represents the sum of capital stock, surplus, undivided profits, and various reserve accounts.
Corporations with branches should report all equity
capital items, including any undivided profits or translations adjustments of branches, in the report filed by
the head office. Any claims of the head office on its
branches, including any unremitted earnings of the
branches, should be included in Schedule RC-M.
Line Item 21 Stock.
Report the total par value of the capital stock, both
common and preferred, or its equivalent, issued by the
corporation and outstanding.
Line Item 22 Surplus.
Enter the net amount formally transferred to or paid
into the surplus account or its equivalent plus any
amount received for preferred or common stock in
excess of its par value on or before the date of the
report.

Line Item 23 Retained earnings.
Report the total amount of the corporation’s retained
earnings (undivided profits) after transfers of net
income, dividend distributions, transfers to surplus,
and any other appropriate reductions. Also include any
reserves for contingencies and other capital reserves,
such as reserves for undeclared dividends or dividends
payable in capital stock, reserves for retirement of preferred capital notes or dividend profits, and any reserve
RC-8
December 2020
December
2024

Line Item 24 Accumulated other comprehensive
income.
Report the accumulated balance of other comprehensive income in accordance with ASC Subtopic 220-10,
Comprehensive Income—Overall (formerly FASB
Statement No. 130, Reporting Comprehensive Income).
“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. Include
in this item net unrealized holding gains (losses) on
available-for-sale debt securities, accumulated net gains
(losses) on cash flow hedges, cumulative foreign currency translation adjustments, minimum pension
liability adjustment (see FFIEC 031 Schedule RC,
Item 26(b)).

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Line Item 20 Gross liabilities to related organizations.
Report the amounts of all liabilities to related organizations, (Schedule RC-M, Item 3, Column B). See the
definition of related organizations in the Definitions
section. Do not net liabilities to related organizations
against claims on related organizations. For column B,
IBF only, include gross liabilities on the establishing
Edge corporation.

for contingencies. This last item represents amounts set
aside for possible unforeseen or indeterminate liabilities not otherwise reflected on the corporation’s books
and not covered by insurance—including, for example,
amounts reserved for possible losses resulting from
lawsuits, possible default on obligations on which the
reporting organization is contingently liable, or other
potential claims against the corporation. A reserve for
contingencies should not include any element of
known loss or losses, the amount of which can be estimated with reasonable accuracy.

Line Item 25 Other equity capital components.
Report the carrying value of any treasury stock and of
any unearned Employee Stock Ownership Plan
(ESOP) shares, which under generally accepted
accounting principles are reported in a contra-equity
account on the balance sheet. For further information,
see the FFIEC 031 Glossary entry for “treasury stock,”
and ASC Subtopic 718-40, Compensation-Stock
Compensation—Employee Stock Ownership Plans
(formerly AICPA Statement of Position 93-6, Employers’ Accounting for Employee Stock Ownership Plans).
Line Item 26 Total equity capital.
Enter the sum of Items 21 through 25.
Line Item 27 Total liabilities and equity capital.
Enter the sum of Items 19, 20, and 26.
FR 2886b

LINE ITEM INSTRUCTIONS FOR

Derivatives and Off-Balance-Sheet
Items
Schedule RC-L

General Instructions

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This schedule must be completed by all Edge corporations and all agreement corporations.
References to the corresponding items in the
FFIEC 031 instructions are contained in brackets.

Line Item Instructions

Line Item 8 Commitments to purchase foreign
currencies and U.S. dollar exchange (spot, forward and
futures).
Report the gross amount (stated in U.S. dollars) of all
spot, forward and futures contracts that are outstanding as of the report date committing the reporting
bank to purchase foreign (non-U.S.) currencies and
U.S. dollar exchanges. For purposes of completing this
item, U.S. dollar exchange refers to the amount of U.S.
dollars purchased in connection with the sale of
another currency. Effectively, then, report in this item
the U.S. dollar equivalent of all currencies (whether
U.S. or non-U.S. and whether local or nonlocal) that
were purchased in exchange for another currency.

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Line Item 1 Unused commitments on loans and all
other lines of credit.
Include the amount outstanding of securitized extensions of credit to individuals for household, family, and
other personal expenditures arising from bank credit
cards and related plans.
Line Item 2 Unused commitments on securities
underwriting.
[Schedule RC-L, item 1.d.]

Line Item 3 Financial standby letters of credit and
foreign office guarantees.
[Schedule RC-L, item 2]

Line Item 9 All other futures and forward contracts
(excluding contracts involving foreign exchange).
[Schedule RC-L, items 12.a and 12.b, columns A, C,
and D]
Line Item 10 Option contracts:
Line Item 10(a) Written option contracts:

Line Item 4 Performance standby letters of credit and
foreign office guarantees.
[Schedule RC-L, item 3]

Line Item 10(a)(1) Interest rate contracts.
[Schedule RC-L, items 12.c.(1) and 12.d.(1), column A]

Line Item 5 Commercial and similar letters of credit.
[Schedule RC-L, item 4]

Line Item 10(a)(2) Foreign exchange contracts.
[Schedule RC-L, items 12.c.(1) and 12.d.(1), column B]

Line Item 6 Not applicable.

-

Line Item 7 All other off-balance sheet liabilities.
Enter the total of all items for which the reporting corporation is contingently liable and which cannot be
properly reported in other items of this schedule.
FR2886b

Line Item 10(a)(3) Equity derivative contracts.
[Schedule RC-L, items 12.c.(1) and 12.d.(1), column C]
Line Item 10(a)(4) Commodity and other contracts.
[Schedule RC-L, items 12.c.(1) and 12.d.(1), column D]
RC-L-1
December 2024
March 2009

LINE ITEM INSTRUCTIONS FOR

Past Due and Nonaccurual Loans,
Leases and Other Assets
Schedule RC-N
(4) Unplanned overdrafts are to be reported as past due if
the account remains continuously overdrawn for 30 days or
more.
Examples of assets reportable as past due include, but are
not limited to, the following:

General Instructions

monthly payments. (Thirty days may be used as a
proxy for a month.) Other multipayment obligations with payments scheduled other than
monthly are to be reported as past due when one
scheduled payment is due and unpaid for 30 days
or more.

AF
T

This schedule must be completed by all Edge corporations and all agreement corporations.

D
R

The reporting corporation should report all loans,
lease financing receivables and any other assets booked
at the head office and any consolidated offices that are
past due or are in nonaccrual status, regardless of
whether such credits are secured or unsecured and
regardless of whether they are guaranteed by others.
Loan amounts should be reported held for investment
to the extent that the same categories of loans are
reported held for investment in Schedule RC-C. Report
the full outstanding balances of loans or other assets
that are past due or in nonaccrual status, not simply the
delinquent payments. Include such assets as debt securities and interest-bearing balances due from depository institutions. Exclude other real estate owned and
other repossessed assets, such as automobiles, boats,
equipment, appliances, and similar personal property.
Institutions that have adopted ASU 2016-13, which
governs the accounting for credit losses, should report
financial assets without any deduction for allowance
for credit losses.

Past Due
For the purposes of this report, grace periods allowed
by the corporation after a loan technically has become
past due but before the imposition of late charges are
not to be considered in determining past due status.
Furthermore, loans, lease financing receivables and
(3) A loan orother
otherassets
assetare
on to
which
interest as
and/or
principal
be reported
past due
when either
remains unpaid
for
30
days
or
more
and
which
the
institution is
interest or principal is unpaid in the following
in the process
of renewing, extending, or modifying in a manner
circumstances:
that would change required payment dates, should be reported
monthly installment
loans
and
lease
as past due if(1)theClosed-end
renewal, extension,
or modification
has
not
financing
receivables
been executed and
become
effective. are to be reported as past
due when the borrower is in arrears two or more
FR 2886b

(2) Open-end credit such as 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) Amortizing real estate loans are to be reported as
past due when the borrower is in arrears two or
more monthly payments. (Reporters may use
30 days as a proxy for a month if they prefer.)
Such obligations with payments scheduled other
than monthly are to be reported as past due when
one scheduled payment is due and unpaid for
30 days or more.

1. (4) Single payment and demand notes 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. principal and/or
2.

(5) Single payment notes 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.
(6) Unplanned overdrafts are to be reported as past
due if the account remains continuously overdrawn for 30 days or more.
For purposes of this report, a full payment in computing past due status for consumer installment loans
(both closed-end and open-end) is defined to include a
partial payment equivalent to 90 percent or more of the
contractual payment.
RC-N-1

March 2019

December 2024

Schedule RC-N

Note: The time period used for reporting past due status as indicated above may not in all instances conform
to those used by federal bank regulators in bank
examinations.

Nonaccrual

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. 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 corporation
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 corporation
for the purpose of facilitating the disposal of such real
estate is not considered a troubled debt restructuring.

AF
T

For the purposes of this report, loans, lease financing
receivables and any other assets are to be reported as
being in nonaccrual status if: (1) they are maintained
on a cash basis because of deterioration in the financial
position of the borrower, (2) payment in full of interest
or principal is not expected, or (3) principal or interest
has been in default for a period of 90 days or more
unless the obligation is both well-secured and in the
process of collection. A nonaccrual asset may be
restored to an accrual status when none of its principal
or interest is due and unpaid or when it otherwise
becomes well-secured and is in the process of
collection.

purposes of this report, 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.

D
R

For purposes of applying the third test for the nonaccrual of interest listed above, the date on which an asset
reaches nonaccrual status is determined by its contractual terms. If the principal or interest on an asset
becomes due and unpaid for 90 days or more on a date
that falls between report dates, the asset should be
placed in nonaccrual status as of the date it becomes
90 days past due and should remain in nonaccrual status until it meets the criteria for restoration to accrual
status described above.

Item Instructions

A debt is ‘‘well-secured’’ if it is secured (1) by collateral
in the form of liens on, or pledges of, real or personal
property, including securities, that have a realizable
value sufficient to discharge the debt in full, or (2) by
the guarantee of a financially responsible party. A debt
is ‘‘in the process of collection’’ if collection of the debt
is proceeding in due course either through legal action,
See Insert including
A
judgment enforcement procedures, or, in
appropriate circumstances, through collection efforts
that do not involve legal actions, provided they are reasonably expected to result in repayment of the debt or
in its restoration to a current status.

Report in Items 1 and 2 the full outstanding balances
(not just delinquent payments) of loans, lease financing
receivables and any other assets that are past due and
upon which the corporation continues to accrue interest, as follows:

For purposes of this report, a troubled debt restructuring is a restructuring of a loan in which the corporation, 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

Line Item 2 Past due 90 days or more and still
accruing.
Report the loans, lease financing receivables and any
other assets as specified above on which payment is due
and unpaid for 90 days or more.

RC-N-2

March 2011

December 2024

Line Item 1 Past due 30–89 days and still accruing.
Report any loans, lease financing receivables and any
other assets that are past due 30–89 days (as defined
above) and still accruing.

FR 2886b

Insert A

Loan Modifications to Borrowers Experiencing Financial Difficulty – For the purposes of this report, Edges should disclose
modifications to borrowers experiencing financial difficulty if such modifications include principal forgiveness, an interest
rate reduction, an other-than-insignificant payment delay, or a term extension (or a combination thereof).

D
R

AF
T

Modified loans reported in this schedule should meet the definition of loan modifications to borrowers experiencing financial
difficulty, as described in ASU 2022-02, which includes only those modifications which occurred in the previous 12 months.
The amounts reported should include modifications that were accounted for as new loans in addition to modifications that
were accounted for as a continuation of existing loans. For further information, see the FR Y-9C Glossary entry for "Loan
Modification to Borrowers Experiencing Financial Difficulty."

Schedule RC-N
modifications to borrowers
experiencing financial difficulty

Exclude from Items 1 and 2 all loans, lease financing
receivables and any other assets that are on a nonaccrual status.
Line Item 3 Nonaccrual.
Report the outstanding balances of loans, leases and
other assets that are in nonaccrual status. However,
restructured loans with a zero percent effective interest
rate are not to be reported on this line as nonaccrual
loans, leases and other assets.

D
R

AF
T

Line Item 4 Total.
Enter the total of Items 1 through 3.

Memorandum Item 1 Loans restructured in troubled
debt restructurings included in Item 4 above.
Report the outstanding balances of loans restructured
in troubled debt restructurings (as defined above) that
under their modified terms are past due 30 days or
more or are in nonaccrual status as of the report date.
Such loans will have been included in one or more lines
of this schedule. Include all loans to individuals for
household, family, and other personal expenditures
and all loans secured by 1–4 family residential
properties.

FR 2886b

RC-N-3

March 2011

December 2024

LINE ITEM INSTRUCTIONS FOR

Risk-Based Capital
Schedule RC-R

General Instructions

AF
T

This schedule must be completed only by banking
Edge corporations and banking agreement corporations.

(4) less goodwill and other disallowed intangible
assets (except mortgage servicing assets), less
deferred tax assets that arise from net operating
loss and tax credit carryforwards net of any
related valuation allowances, and less any accumulated other comprehensive income as reported
under GAAP.

D
R

Effective January 1, 1993, banking Edge corporations
became subject to risk-based capital requirements
under Section 211.12(c) of Regulation K. Banking
Edge corporations must maintain a minimum total
capital ratio to total risk-weighted assets of at least
10 percent, of which at least 50 percent must consist of
Tier 1 capital. Banking Edge corporations must generally comply with Regulation Q’s eligibility criteria for
regulatory capital instruments. Please refer to the
instructions on Schedule RC-R of the
FFIEC 031 report for definitions of terms used in this
schedule and for applicable transition provisions.

Line Item Instructions

Line Item 1 Tier 1 Capital allowable under
Regulation Q.
Report the amount of Tier 1 capital, less deductions, as
indicated below.
Tier 1 capital consists of:
(1) common stockholders' equity capital and any
related surplus;
(2) retained earnings; and
(3) additional tier 1 capital instruments and any
related surplus; and

FR 2886b

Line Item 2 Tier 2 Capital allowable under
Regulation Q.
Report the amount of Tier 2 capital as described
below.
Tier 2 capital consists of:

(1) Tier 2 capital instruments and any related surplus; and
(2) allowance for loan and lease losses or allowance
for credit losses (up to a limit of 1.25% of total
risk-weighted assets)

Line Item 3 Total capital (i.e., Tier 1 and Tier 2
capital) allowable under Regulation Q.
Report the sum of items 1 and 2 above.
Line Item 4 Total risk-weighted assets.
The total risk-weighted asset amount represents the
aggregate of the corporation's assets and credit equivalent amounts of off-balance sheet items assigned to the
respective risk categories set forth in Regulation Q.

RC-R-1
March 2019
December
2024

Definitions

from sources outside the corporation. Only if the customer’s domicile is not readily ascertainable from the
reporter’s own files, or from other sources, may the
account address be used for determining whether a
customer is “U.S.” or “foreign.”

Annuity

Commercial Banks in the U.S.

For purposes of this report, a commercial bank is any
legal entity chartered as a commercial bank and/or
trust company by the U.S. or a unit of government of
the U.S., or a private or industrial bank engaged in
banking, and located in the U.S. (exclude any foreign
branches thereof). For this report, include (unless
specified separately) (1) U.S. agencies and branches of
foreign banks; (2) Edge and agreement corporations
that are organized under provisions of Section 25 or
25(a) of the Federal Reserve Act; and (3) investment
companies engaged in banking and chartered under
Article XII by the State of New York that are majorityowned by one or more foreign banks or by foreign official institutions.

D
R

A

Excess Balance Account

An excess balance account (EBA) is a limited-purpose
account at a Federal Reserve Bank established for
maintaining the excess balances of one or more depository institutions (participants) that are eligible to earn
interest on balances held at the Federal Reserve Banks.
An EBA is managed by another depository institution
that has its own account at a Federal Reserve Bank
(such as a participant’s pass-through correspondent)
and acts as an agent on behalf of the participants. Balances in an EBA represent a liability of a Federal
Reserve Bank directly to the EBA participants and not
to the agent. The Federal Reserve Banks pay interest
on the average balance in the EBA over a 7-day maintenance period and the agent disburses that interest to
each participant in accordance with the instructions of
FR 2886b

The reporting of an EBA by participants and agents
differs from the required reporting of a pass-through
reserve relationship, which is described in the
Definitions section for “pass-through reserve
balances.”
A participant’s balance in an EBA is to be treated as a
claim on a Federal Reserve Bank (not as a claim on the
agent) and, as such, should be reported on the balance
sheet in Schedule RC, item 1(b), “Interest-bearing balances” due from depository institutions. For riskbased capital purposes, the participant’s balance in an
EBA is accorded a zero percent risk weight. A participant should not include its balance in an EBA in
Schedule RC, item 3, “Federal funds sold.”

AF
T

An investment product, typically underwritten by an
insurance company, that pays either a fixed or variable
payment stream over a specified period of time. Both
proprietary and private label mutual funds and annuities are established in order to be marketed primarily to
a corporation’s customers.

the participant. Only a participant’s excess balances
may be placed in an EBA; the account balance cannot
be used to satisfy the participant’s reserve balance
requirements or contractual clearing agreements.

The balances in an EBA should not be reflected as an
asset or a liability on the balance sheet of the depository institution that acts as the agent for the EBA.
Thus, the agent should not include the balances in the
EBA in Schedule RC, item 1(b), “Interest-bearing balances” due from depository institutions; Schedule RC,
item 12(b), “Total Interest-bearing deposits”; or
Schedule RC-A, item 4, “Balances due from Federal
Reserve Banks.”

Federal Funds Transactions
Provided below are definitions of various terms that
are used in the instructions for Schedule RC, Item 3
and Item 13.

Immediately Available Funds
Funds that the purchasing corporation can either use
or dispose of on the same business day that the transaction giving rise to the receipt of the funds is executed
(or, in the case of lending resulting from previous commitments to lend, when the transaction giving rise to
the disposal of funds is effective).

One-day Transactions
Transactions made on one business day to mature on
the next business day, including those made on Friday
DEF-3
September 2011
December
2024