consolidated financial statements for bank holding companies

Board of Governors of the Federal Reserve System

Instructions for Preparation of

Consolidated Financial Statements forBank Holding Companies

Reporting Form FR Y9C

Reissued March 2007

Contents forY-9C Instructions

Organization of the Instruction BookThe instruction book is divided into three sections:

(1) The General Instructions describing overall report-ing requirements.

(2) The Line Item Instructions for each schedule ofthe report for the consolidated bank holding com-pany.

(3) The Glossary presenting, in alphabetical order, defi-nitions and discussions of accounting treatmentsunder generally accepted accounting principles(GAAP) and other topics that require more extensivetreatment than is practical to include in the line iteminstructions or that are relevant to several line itemsor to the overall preparation of these reports.

In determining the required treatment of particular trans-actions or portfolio items or in determining the defini-

tions and scope of the various items, the General Instruc-tions, the line item instructions, and the Glossary (all ofwhich are extensively cross-referenced) must be usedjointly. A single section does not necessarily give thecomplete instructions for completing all the items of thereports. The instructions and definitions in section (2) arenot necessarily self-contained; reference to more detailedtreatments in the Glossary may be needed. However, theGlossary is not, and is not intended to be, a com-prehensive discussion of accounting principles orreporting.

Additional copies of this instruction book may be obtainedfrom the Federal Reserve Bank in the district where thereporting bank holding company submits its FR Y-9Creports, or may be found on the Federal Reserve Boardspublic website (www.federalreserve.gov).

FR Y-9C Contents-1Contents March 2007

GENERAL INSTRUCTIONS FOR PREPARATION OF FINANCIAL STATEMENTSFOR BANK HOLDING COMPANIES

Who Must Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GEN-1A. Reporting Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GEN-1B. Exemptions from Reporting the Bank Holding Company Statements . . . . . . . . . . . . . . . . . GEN-2C. Shifts in Reporting Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GEN-2

Where to Submit the Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GEN-2

When to Submit the Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GEN-2

How to Prepare the Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GEN-3A. Applicability of GAAP, Consolidation Rules and SEC Consistency . . . . . . . . . . . . . . . . . . GEN-3

Scope of the consolidated bank holding company to be reported in thesubmitted reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GEN-3

Rules of consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GEN-3Reporting by type of office (for bank holding companies with foreign offices) . . . . . . . . GEN-4Exclusions from coverage of the consolidated report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GEN-4

B. Report Form Captions, Non-applicable Items and Instructional Detail . . . . . . . . . . . . . . . . GEN-4C. Rounding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GEN-5D. Negative Entries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GEN-5E. Confidentiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GEN-6F. Verification and Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GEN-6G. Amended Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GEN-7

Contents

Contents-2 FR Y-9CContents June 2009

LINE ITEM INSTRUCTIONS FOR THE CONSOLIDATED FINANCIAL STATEMENTSFOR BANK HOLDING COMPANIESSchedule HIConsolidated Income Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . HI-1Schedule HI-AChanges in Equity Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . HI-A-1Schedule HI-BCharge-Offs and Recoveries on Loans and Leases and Changes

in Allowance for Loan and Lease Losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . HI-B-1

Notes to the Income StatementPredecessor Financial Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . .- ISnotes-P-1Notes to the Income StatementOther . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ISnotes-1

Schedule HCConsolidated Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . HC-1Schedule HC-BSecurities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . HC-B-1Schedule HC-CLoans and Lease Financing Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . HC-C-1Schedule HC-DTrading Assets and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . HC-D-1Schedule HC-EDeposit Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . HC-E-1Schedule HC-FOther Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . HC-F-1Schedule HC-GOther Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . HC-G-1Schedule HC-HInterest Sensitivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . HC-H-1Schedule HC-IInsurance-Related Underwriting Activities (Including Reinsurance) . . . . . . HC-I-1Schedule HC-KQuarterly Averages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . HC-K-1Schedule HC-LDerivatives and Off-Balance Sheet Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . HC-L-1Schedule HC-MMemoranda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . HC-M-1Schedule HC-NPast Due and Nonaccrual Loans, Leases, and Other Assets . . . . . . . . . . . . . . HC-N-1Schedule HC-PClosed-End 1-4 Family Residential Mortage Banking Activities. . . . . . . . . . HC-P-1Schedule HC-QFinancial Assets and Liabilities Measured at Fair Value . . . . . . . . . . . . . . . . . HC-Q-1Schedule HC-RRegulatory Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . HC-R-1Schedule HC-SServicing, Securitization, and Asset Sale Activities . . . . . . . . . . . . . . . . . . . . . HC-S-1

Notes to the Balance SheetPredecessor Financial Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .- BSnotes-P-1Notes to the Balance SheetOther. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BSnotes-1

Contents

FR Y-9C Contents-3Contents June 2007

GLOSSARY

Acceptances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL- 1Accounting Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL- 1Accounting Errors, Corrections of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL- 3Accounting Estimates, Changes in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL- 3Accounting Principles, Changes in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL- 3Accrued Interest Receivable Related to Credit Card Securitizations . . . . . . . . . . . . . . . . . . . . . . . GL- 3Acquisition, Development, or Construction (ADC) Arrangements . . . . . . . . . . . . . . . . . . . . . . . . . GL- 4Agreement Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL- 4Allowance for Loan and Lease Losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL- 4Applicable Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL- 6Associated Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL- 6ATS Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL- 6Bankers Acceptances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL- 6Bank-Owned Life Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL- 8Banks, U.S. and Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL- 9Bill-of-Lading Draft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-10Borrowings and Deposits in Foreign Offices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-10Brokered Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-11Brokered Retail Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-11Brokers Security Draft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-12Business Combinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-12Call Option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-14Capitalization of Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-14Carrybacks and Carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-14Certificate of Deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-14Changes in Accounting Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-14Changes in Accounting Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-14Commercial Banks in the U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-14Commercial Letter of Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-14Commercial Paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-14Commodity or Bill-of-Lading Draft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-15Common Stock of Unconsolidated Subsidiaries, Investments in . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-15Continuing Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-15Contractholder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-15Corporate Joint Venture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-15Corrections of Accounting Errors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-15

Contents

Contents-4 FR Y-9CContents September 2009

Coupon Stripping, Treasury Receipts, and STRIPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-15Custody Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-15Dealer Reserve Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-16Deferred Compensation Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-16Deferred Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-17Demand Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-17Depository Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-17Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-18Derivative Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-24Discounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-29Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-29Domestic Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-30Domicile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-30Due Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-30Edge and Agreement Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-30Equity-Indexed Certificates of Deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-31Equity Method of Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-32Extinguishments of Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-33Extraordinary Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-34Fails . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-34Fair Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-33Federal Funds Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-34Federally-Sponsored Lending Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-35Fees, Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-35Foreclosed Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-35Foreign Banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-37Foreign Central Banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-37Foreign Currency Transactions and Translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-37Foreign Debt Exchange Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-38Foreign Governments and Official Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-40Foreign Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-40Forward Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-40Functional Currency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-40Futures, Forward, and Standby Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-40Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-41Hypothecated Deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-41IBF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-41Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-41

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Insurance Commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-46Insurance Premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-46Insurance Underwriting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-46Intangible Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-46Interest-Bearing Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-46Interest Capitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-46Internal-Use Computer Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-46International Banking Facility (IBF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-47Investments in Common Stock of Unconsolidated Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-48Joint Venture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-48Lease Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-48Letter of Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-50Limited-Life Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-51Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-51Loan Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-52Loan Impairment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-53Loans Secured By Real Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-54Loss Contingencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-56Mandatory Convertible Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-56Market (Fair)Value of Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-56Mergers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-56Money Market Deposit Account (MMDA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-56Mortgages, Residential, Participations in Pools of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-56NOW Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-56Nonaccrual Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-56Noninterest-Bearing Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-59Nontransaction Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-59Notes and Debentures Subordinated to Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-59Offsetting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-59One-Day Transaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-60Option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-60Organization Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-60Other Real Estate Owned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-60Overdraft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-60Participations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-60Participations in Acceptances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-60Participations in Pools of Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-60Pass-through Reserve Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-60

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Perpetual Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-61Perpetual Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-61Policyholder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-61Pooling of Interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-61Pools of Residential Mortgages, Participations in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-61Pools of Securities, Participations in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-61Preauthorized Transfer Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-61Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-61Premiums and Discounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-61Purchase Acquisition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-62Purchased Impaired Loans and Debt Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-62Put Option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-63Real Estate, Loan Secured by . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-63Reciprocal Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-63Reinsurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-63Reinsurance Recoverables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-63Renegotiated Troubled Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-64Reorganizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-64Repurchase Agreements to Maturity and Long-Term Repurchase Agreements . . . . . . . . . . . . . GL-64Repurchase/Resale Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-64Reserve Balances, Pass-through . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-65Sales of Assets for Risk-Based Capital Purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-65Savings Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-69Securities Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-69Securities Borrowing/Lending Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-70Securities, Participations in Pools of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-71Separate Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-71Servicing Assets and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-71Settlement Date Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-73Shell Branches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-73Short Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-73Standby Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-73Standby Letter of Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-73Start-Up Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-73STRIPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-74Subordinated Notes and Debentures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-74Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-74Super NOW Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-75

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Suspense Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-75Syndications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-75Telephone Transfer Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-75Term Federal Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-75Time Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-75Trade Date and Settlement Date Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-75Trading Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-76Transaction Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-76Transfers of Financial Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-76Travelers Letter of Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-80Treasury Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-80Troubled Debt Restructuring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-80Trust Preferred Securities as Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-81Trust Preferred Securities Issued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-81U.S. Banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-82U.S. Territories and Possessions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-82Valuation Allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-82When-Issued Securities Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-82Yield Maintenance Dollar Repurchase Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GL-83FR Y-9C Checklist for Verifying Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CHK-1FR Y-9C Federal Reserve Edits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . EDIT-1

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Contents-8 FR Y-9CContents December 2009

INSTRUCTIONS FOR PREPARATION OF

Financial Statementsfor Bank Holding CompaniesFR Y9C

GENERAL INSTRUCTIONS

Who Must Report

A. Reporting CriteriaAll bank holding companies, regardless of size, arerequired to submit financial statements to the FederalReserve, unless specifically exempted (see description ofexemptions below).

The specific reporting requirements for each bank hold-ing company depend upon the size of the holding com-pany, or other specific factors as determined by theappropriate Federal Reserve Bank. Bank holding compa-nies must file the appropriate forms as described below:

(1) Bank Holding Companies with Total Consoli-dated Assets of $500 Million or More. Bank hold-ing companies with total consolidated assets of$500 million or more (the top tier of a multi-tieredholding company, when applicable) must file:

(a) the Consolidated Financial Statements for BankHolding Companies (FR Y-9C) quarterly, as ofthe last calendar day of March, June, September,and December.

(b) the Parent Company Only Financial Statementsfor Large Bank Holding Companies (FR Y-9LP)quarterly, as of the last calendar day of March,June, September, and December.

Each bank holding company that files the FR Y-9Cmust submit the FR Y-9LP for its parent company.

For tiered bank holding companies. When bankholding companies with total consolidated assets of$500 million, or more, own or control, or are ownedor controlled by, other bank holding companies (i.e.,are tiered bank holding companies), only the top-tierholding company must file the FR Y-9C for theconsolidated bank holding company organization

unless the top-tier holding company is exempt fromreporting the FR Y-9C. If a top-tier holding companyis exempt from reporting the FR Y-9C, then thelower-tier holding company (with total consoli-dated assets of $500 million or more) must file theFR Y-9C.

In addition, such tiered bank holding companies,regardless of the size of the subsidiary bank holdingcompanies, must also submit, or have the top-tierbank holding company subsidiary submit, a separateFR Y-9LP for each lower-tier bank holding companyof the top-tier bank holding company.

(2) Bank Holding Companies that are Employee StockOwnership Plans. Bank holding companies that areemployee stock ownership plans (ESOPs) as of thelast calendar day of the calendar year must file theFinancial Statements for Employee Stock OwnershipPlan Bank Holding Companies (FR Y-9ES) on anannual basis, as of December 31. No other FR Y-9series form is required. However, bank holdingcompanies that are subsidiaries of ESOP bank holdingcompanies (i.e., a tiered bank holding company) mustsubmit the appropriate FR Y-9 series in accordancewith bank holding company reporting requirements.

(3) Bank Holding Companies with Total Consoli-dated Assets of Less Than $500 Million. Bankholding companies with total consolidated assets ofless than $500 million must file the Parent CompanyOnly Financial Statements for Small Bank HoldingCompanies (FR Y-9SP) on a semiannual basis, as ofthe last calendar day of June and December.1

1. The Reserve Bank with whom the reporting bank holding companyfiles its reports may require that a bank holding company with totalconsolidated assets of less than $500 million submit the FR Y-9C and theFR Y-9LP reports to meet supervisory needs. Reserve Banks will considersuch criteria including, but not limited to, whether the holding company(1) is engaged in significant nonbanking activities either directly or through

FR Y9C GEN-1General Instructions June 2009

For tiered bank holding companies. When bankholding companies with total consolidated assets ofless than $500 million, own or control, or are ownedor controlled by, other bank holding companies (i.e.,are tiered bank holding companies), the top-tierholding company must file the FR Y-9SP for thetop-tier parent company of the bank holding com-pany. In addition, such tiered bank holding compa-nies must also submit, or have the bank holdingcompany subsidiary submit, a separate FR Y-9SP foreach lower-tier bank holding company.

When a bank holding company that has total consoli-dated assets of less than $500 million is a subsidiaryof a bank holding company that files the FR Y-9C,the bank holding company that has total consolidatedassets of less than $500 million would report on theFR Y-9LP rather than the FR Y-9SP.

The instructions for the FR Y-9LP, FR Y-9ES, and theFR Y-9SP are not included in this booklet but may beobtained from the Federal Reserve Bank in the districtwhere the bank holding company files its reports, or maybe found on the Federal Reserve Boards public website(www.federalreserve.gov/boarddocs/reportforms).

B. Exemptions from Reporting theBank Holding Company FinancialStatements

The following bank holding companies do not have tofile bank holding company financial statements:

(1) a bank holding company that has been granted anexemption under Section 4(d) of the Bank HoldingCompany Act; or

(2) a qualified foreign banking organization as definedby Section 211.23(a) of Regulation K (12 CFR211.23(a)) that controls a U.S. subsidiary bank.

Bank holding companies that are not required to fileunder the above criteria may be required to file this reportby the Federal Reserve Bank of the district in which theyare registered.

C. Shifts in Reporting StatusA top-tier bank holding company that reaches $500 mil-lion or more in total consolidated assets as of June 30 ofthe preceding year must begin reporting the FR Y-9C andthe FR Y-9LP in March of the current year, and anylower-tier bank holding companies must begin reportingthe FR Y-9LP in March of the current year. If a top-tierbank holding company reaches $500 million or more intotal consolidated assets due to a business combination, areorganization, or a branch acquisition that is not abusiness combination, then the bank holding companymust begin reporting the FR Y-9C and the FR Y-9LPwith the first quarterly report date following the effectivedate of the business combination, reorganization, orbranch acquisition, and any lower-tier bank holdingcompanies must begin reporting the FR Y-9LP with thefirst quarterly report date following the effective date. Ingeneral, once a bank holding company reaches or exceeds$500 million in total consolidated assets and begins filingthe FR Y-9C and FR Y-9LP, it should file a complete FRY-9C and FR Y-9LP going forward (and any lower-tierbank holding companies should file a complete FRY-9LP going forward). If a bank holding companys totalconsolidated assets should subsequently fall to less than$500 million for four consecutive quarters, then the bankholding company may revert to filing the FR Y-9SP (andany lower-tier bank holding companies may revert tofiling the FR Y-9SP).

Where to Submit the ReportsElectronic SubmissionAll bank holding companies must submit their completedreports electronically. Bank holding companies shouldcontact their district Reserve Bank or go to www.report-ingandreserves.org for procedures for electronic submis-sion.

When to Submit the ReportsThe Consolidated Financial Statements for Bank HoldingCompanies (FR Y-9C) are required to be submitted as ofMarch 31, June 30, September 30, and December 31. The

a nonbank subsidiary; (2) conducts significant off-balance-sheet activities,including securitizations or managing or administering assets for thirdparties, either directly or through a nonbank subsidiary; or (3) has amaterial amount of debt or equity securities (other than trust preferredsecurities) outstanding that are registered with the Securities and ExchangeCommission.

In addition, any bank holding company that is not subject to the FederalReserves Capital Adequacy Guidelines, but nonetheless elects to complywith the guidelines, are required to file a complete FR Y-9C and FR Y-9LPreport, and generally would not be permitted to revert back to filing the FRY-9SP report in any subsequent periods.

General Instructions

GEN-2 FR Y9CGeneral Instructions June 2007

submission date for bank holding companies is 40 calen-dar days after the March 31, June 30, and September 30 asof dates unless that day falls on a weekend or holiday(subject to timely filing provisions). The submission datefor bank holding companies is 45 calendar days after theDecember 31 as of date. For example, the June 30 reportmust be received by August 9, and the December 31 reportby February 14.

The term submission date is defined as the date bywhich the Federal Reserve must receive the bank holdingcompanys FR Y-9C.

If the submission deadline falls on a weekend or holiday,the report must be received on the first business day afterthe Saturday, Sunday, or holiday. Earlier submission aidsthe Federal Reserve in reviewing and processing thereports and is encouraged. No extensions of time forsubmitting reports are granted.

The reports are due by the end of the reporting day onthe submission date (5:00 P.M. at each district ReserveBank).

How to Prepare the ReportsA. Applicability of GAAP, Consolidation

Rules and SEC ConsistencyBank holding companies are required to prepare and filethe Consolidated Financial Statements for Bank Hold-ing Companies in accordance with generally acceptedaccounting principles (GAAP) and these instructions. Allreports shall be prepared in a consistent manner. Thebank holding companys financial records shall be main-tained in such a manner and scope so as to ensure that theConsolidated Financial Statements for Bank HoldingCompanies can be prepared and filed in accordance withthese instructions and reflect a fair presentation of thebank holding companys financial condition and resultsof operations.

Bank holding companies should retain workpapers andother records used in the preparation of these reports.

Scope of the consolidated bank holdingcompany to be reported in the submittedreportsFor purposes of this report, the bank holding companyshould consolidate its subsidiaries on the same basis as itdoes for its annual reports to the SEC or, for those bank

holding companies that do not file reports with the SEC,on the same basis as described in generally acceptedaccounting principles (GAAP). Generally, under the rulesfor consolidation established by the SEC and by GAAP,bank holding companies should consolidate any com-pany in which it owns more than 50 percent of theoutstanding voting stock.

Each bank holding company shall account for any invest-ments in unconsolidated subsidiaries, associated compa-nies, and those corporate joint ventures over which thebank holding company exercises significant influenceaccording to the equity method of accounting, as pre-scribed by GAAP. The equity method of accounting isdescribed in Schedule HC, item 8. (Refer to the Glossaryentry for subsidiaries for the definitions of the termssubsidiary, associated company, and corporate jointventure.)

Rules of consolidation

For purposes of these reports, all offices (i.e., branchesand subsidiaries) that are within the scope of the consoli-dated bank holding company as defined above are to bereported on a consolidated basis. Unless the report formcaptions or the line item instructions specifically stateotherwise, this consolidation shall be on a line-by-linebasis, according to the caption shown. As part of theconsolidation process, the results of all transactions andall intercompany balances (e.g., outstanding asset/debtrelationships) between offices, subsidiaries, and otherentities included in the scope of the consolidated bankholding company are to be eliminated in the consolida-tion and must be excluded from the Consolidated Finan-cial Statements for Bank Holding Companies. (For exam-ple, eliminate in the consolidation: (1) loans made by thebank holding company to a consolidated subsidiary andthe corresponding liability of the subsidiary to the bankholding company, (2) a consolidated subsidiarys depos-its in another consolidated bank holding company subsid-iary and the corresponding cash or interest-bearing assetbalance of the subsidiary, and (3) the intercompanyinterest income and expense related to such loans anddeposits of the bank holding company and its consoli-dated subsidiaries.)

Subsidiaries of Subsidiaries. For a subsidiary of a bankholding company that is in turn the parent of one or moresubsidiaries:



(1) Each subsidiary shall consolidate its majority-ownedsubsidiaries in accordance with the consolidationrequirements set forth above.

(2) Each subsidiary shall account for any investments inunconsolidated subsidiaries, corporate joint venturesover which the bank holding company exercisessignificant influence, and associated companiesaccording to the equity method of accounting.

Noncontrolling (minority) interests. A noncontrollinginterest, sometimes called a minority interest, is theportion of equity in a bank holding companys subsidiarynot attributable, directly or indirectly, to the parent bankholding company. Report noncontrolling interests in thereporting bank holding companys consolidated subsidi-aries in Schedule HC, item 27(b), Noncontrolling(minority) interests in consolidated subsidiaries. Reportthe portion of consolidated net income reported in Sched-ule HI, item 12, that is attributable to noncontrollinginterests in consolidated subsidiaries of the bank holdingcompany in Schedule HI, item 13.

Reporting by type of office(for bank holding companieswith foreign offices)Some information in the Consolidated Financial State-ments for Bank Holding Companies are to be reported bytype of office (e.g., for domestic offices or for foreignoffices) as well as for the consolidated bank holdingcompany. Where information is called for by type ofoffice, the information reported shall be the office compo-nent of the consolidated item unless otherwise specifiedin the line item instructions. That is, as a general rule, theoffice information shall be reported at the same level ofconsolidation as the fully consolidated statement, shallreflect only transactions with parties outside the scopeof the consolidated bank holding company, and shallexclude all transactions between offices of the consoli-dated bank holding company as defined above. See theGlossary entries for domestic office and foreignoffice for the definitions of these terms.

Exclusions from coverage of theconsolidated reportSubsidiaries where control does not rest with the par-ent. If control of a majority-owned subsidiary by thebank holding company does not rest with the bank

holding company because of legal or other reasons (e.g.,the subsidiary is in bankruptcy), the subsidiary is notrequired to be consolidated for purposes of the report.Thus, the bank holding companys investments in suchsubsidiaries are not eliminated in consolidation but willbe reflected in the reports in the balance sheet item forInvestments in unconsolidated subsidiaries and associ-ated companies (Schedule HC, item 8) and other trans-actions of the bank holding company with such subsidi-aries will be reflected in the appropriate items of thereports in the same manner as transactions with unrelatedoutside parties. Additional guidance on this topic isprovided in accounting standards, including FinancialAccounting Standards Board Statement No. 94 and SECStaff Accounting Bulletin No. 92.

Custody accounts. All custody and safekeeping activities(i.e., the holding of securities, jewelry, coin collections,and other valuables in custody or in safekeeping forcustomers) should not to be reflected on any basis in thebalance sheet of the Consolidated Financial Statementsfor Bank Holding Companies unless cash funds held bythe bank in safekeeping for customers are commingledwith the general assets of the reporting bank holdingcompany. In such cases, the commingled funds would bereported in the Consolidated Financial Statements forBank Holding Companies as deposit liabilities of thebank holding company.

For bank holding companies that file financial statementswith the Securities and Exchange Commission (SEC),major classifications including total assets, total liabili-ties, total equity capital and net income should generallybe the same between the FR Y-9C report filed with theFederal Reserve and the financial statements filed withthe SEC.

B. Report Form Captions, Non-applicableItems and Instructional Detail

No caption on the report forms shall be changed in anyway. An amount or a zero should be entered for all itemsexcept in those cases where (1) the reporting bank hold-ing company does not have any foreign offices; (2) thereporting company does not have any depository institu-tions that are subsidiaries other than commercial banks;or (3) the reporting bank holding company has no con-solidated subsidiaries that render services in any fidu-ciary capacity and its subsidiary banks have no trustdepartments. If the reporting bank holding company has


GEN-4 FR Y9CGeneral Instructions June 2009

only domestic offices, Schedule HC, items 13(b)(1) and13(b)(2), and Schedule HI, items 1(a)(2) and 2(a)(2)should be left blank. If the reporting company does nothave any depository institutions that are subsidiariesother than commercial banks, then Schedule HC-E, items2(a) through 2(e) should be left blank. If the reportingcompany does not have any trust activities, thenSchedule HI, item 5(a) should be left blank. Bank hold-ing company should leave blank memorandum items9(a) through 9(d) of Schedule HI if the reporting bankholding company does not have average trading assets of$2 million or more (reported on Schedule HC-K, item4(a)) as of the March 31st report date of the currentcalendar year.

In addition, bank holding companies who are notrequired to report Schedule HC-D or Schedule HC-Qmay leave these schedules blank.

There may be areas in which a bank holding companywishes more technical detail on the application ofaccounting standards and procedures to the requirementsof these instructions. Such information may often befound in the appropriate entries in the Glossary section ofthese instructions or, in more detail, in the GAAP stan-dards. Selected sections of the GAAP standards arereferenced in the instructions where appropriate. Theaccounting entries in the Glossary are intended to serveas an aid in specific reporting situations rather than acomprehensive statement on accounting for bank holdingcompanies.

Questions and requests for interpretations of mattersappearing in any part of these instructions should beaddressed to the appropriate Federal Reserve Bank (thatis, the Federal Reserve Bank in the district where thebank holding company submits this report).

C. RoundingFor bank holding companies with total assets of less than$10 billion, all dollar amounts must be reported inthousands, with the figures rounded to the nearest thou-sand. Items less than $500 will be reported as zero. Forbank holding companies with total assets of $10 billionor more, all dollar amounts may be reported in thousands,but each bank holding company, at its option, may roundthe figures reported to the nearest million, with zerosreported in the thousands column. For bank holdingcompanies exercising this option, amounts less than$500,000 will be reported as zero.

Rounding could result in details not adding to their statedtotals. However, to ensure consistent reporting, therounded detail items should be adjusted so that the totalsand the sums of their components are identical.

On the Consolidated Financial Statements for BankHolding Companies, Total assets (Schedule HC,item 12) and Total liabilities and equity capital (Sched-ule HC, item 29), which must be equal, must be derivedfrom unrounded numbers and then rounded to ensure thatthese two items are equal as reported.

D. Negative EntriesExcept for the items listed below, negative entries aregenerally not appropriate on the FR Y-9C and should notbe reported. Hence, assets with credit balances must bereported in liability items and liabilities with debit bal-ances must be reported in asset items, as appropriate, andin accordance with these instructions. Items for whichnegative entries may be made, include:

(1) Schedule HI, memorandum item 6, Other non-interest income (itemize and describe the threelargest amounts that exceed 1 percent of the sum ofSchedule HI, item 1(h) and 5(m)).

(2) Schedule HI, memorandum item 7 Other non-interest expense (itemize and describe the threelargest amounts that exceed 1 percent of ScheduleHI, items 1(h) and 5(m)).

(3) Schedule HI, item 5(e), Venture capital revenue.

(4) Schedule HI, item 5(f), Net servicing fees.

(5) Schedule HI, item 5(g), Net securitizationincome.

(6) Schedule HI-A, item 12, Other comprehensiveincome.

(7) Schedule HC, item 8, Investments in unconsoli-dated subsidiaries and associated companies.

(8) Schedule HC, item 26(a), Retained earnings.

(9) Schedule HC, item 26(b), Accumulated othercomprehensive income.

(10) Schedule HC, item 26(c), Other equity capitalcomponents.

(11) Schedule HC, item 27(a), Total bank holdingcompany equity capital.



(12) Schedule HC, item 28, Total equity capital.

(13) Schedule HC-C, items 10, 10(a), and 10(b), onLease financing receivables (net of unearnedincome).

(14) Schedule HC-P, items 5(a) and 5(b), on Noninter-est income for the quarter from the sale, securitiza-tion, and servicing of 14 family residential mort-gage loans .

(15) Schedule HC-Q, memorandum item 2(a), Loancommitments (not accounted for as derivatives).

(16) Schedule HC-R, item 1, Total bank holding com-pany equity capital.

(17) Schedule HC-R, item 2, Net unrealized gains(losses) on available-for-sale securities.

(18) Schedule HC-R, item 4, Accumulated net gains(losses) on cash flow hedges.

(19) Schedule HC-R, item 7(b), LESS: Cummulativechange in fair value of all financial liabilitiesaccounted for under a fair value option that isincluded in retained earnings and is attributable tochanges in the bank holding companys own cred-itworthiness.

(20) Schedule HC-R, item 8, Subtotal.

(21) Schedule HC-R, item 10, Other additions to(deductions from) Tier 1 capital.

(22) Schedule HC-R, item 11, Tier 1 capital.

(23) Schedule HC-R, item 21, Total risk-based capital.

(24) Schedule HC-R, Column B, Items Not Subjectto Risk-Weighting, for asset categories in items 34through 43.

When negative entries do occur in one or more of theseitems, they shall be recorded with a minus (2) sign ratherthan in parenthesis.

On the Consolidated Report of Income (Schedule HI),negative entries may appear as appropriate. Income itemswith a debit balance and expense items with a creditbalance must be reported with a minus (2) sign.

E. ConfidentialityThe completed version of this report generally is avail-able to the public upon request on an individual basis

with the exception of any amounts reported in ScheduleHI, memoranda item 7(g), FDIC deposit insuranceassessments, for report dates beginning June 30, 2009.However, a reporting bank holding company may requestconfidential treatment for the Consolidated FinancialStatements for Bank Holding Companies (FR Y-9C) ifthe bank holding company is of the opinion that disclo-sure of specific commercial or financial information inthe report would likely result in substantial harm to itscompetitive position, or that disclosure of the submittedinformation would result in unwarranted invasion ofpersonal privacy.

A request for confidential treatment must be submitted inwriting prior to the electronic submission of the report.The request must discuss in writing the justification forwhich confidentiality is requested and must demonstratethe specific nature of the harm that would result frompublic release of the information. Merely stating thatcompetitive harm would result or that information ispersonal is not sufficient.

Information for which confidential treatment is requestedmay subsequently be released by the Federal ReserveSystem if the Board of Governors determines that thedisclosure of such information is in the public interest.

F. Verification and SignaturesVerification. All addition and subtraction should bedouble-checked before reports are submitted. Totals andsubtotals in supporting materials should be cross-checkedto corresponding items elsewhere in the reports. Before areport is submitted, all amounts should be compared withthe corresponding amounts in the previous report. If thereare any unusual changes from the previous report, a briefexplanation of the changes should be provided to theappropriate Reserve Bank.

Signatures.

The Consolidated Financial Statements for Bank Hold-ing Companies must be signed by the Chief FinancialOfficer of the bank holding company (or by the indi-vidual performing this equivalent function). By signingthe cover page of this report, the authorized officeracknowledges that any knowing and willful misrepresen-tation or omission of a material fact on this reportconstitutes fraud in the inducement and may subject theofficer to legal sanctions provided by 18 USC 1001 and1007.


GEN-6 FR Y9CGeneral Instructions March 2010

Bank holding companies must maintain in their files amanually signed and attested printout of the data submit-ted. The cover page of the Reserve Bank-supplied,holding companys software, or from the FederalReserves website report form should be used to fulfillthe signature and attestation requirement and this pageshould be attached to the printout placed in the bankholding companys files.

G. Amended ReportsWhen the Federal Reserves interpretation of how GAAPor these instructions should be applied to a specifiedevent or transaction (or series of related events or trans-actions) differs from the reporting bank holding compa-nys interpretation, the Federal Reserve may require thebank holding company to reflect the event(s) or trans-action(s) in its FR Y-9C in accordance with the FederalReserves interpretation and to amend previously submit-ted reports. The Federal Reserve will consider the mate-riality of such event(s) or transaction(s) in making adetermination about requiring the bank holding companyto apply the Federal Reserves interpretation and to amendpreviously submitted reports. Materiality is a qualitativecharacteristic of accounting information which is definedin FASB Concepts No. 2 as the magnitude of an

omission or misstatement of accounting information that,in the light of surrounding circumstances, make it prob-able that the judgment of a reasonable person relying onthe information would have been changed or influencedby the omission or misstatement.

The Federal Reserve may require the filing of amendedConsolidated Financial Statements for Bank HoldingCompanies if reports as previously submitted containsignificant errors. In addition, a bank holding companyshould file an amended report when internal or externalauditors make audit adjustments that result in a restate-ment of financial statements previously submitted to theFederal Reserve.

The Federal Reserve also requests that bank holdingcompanies that have restated their prior period financialstatements as a result of an acquisition submit revisedreports for the prior year-ends. While information tocomplete all schedules to the FR Y-9C may not beavailable, bank holding companies are requested to pro-vide the Consolidated Balance Sheet (Schedule HC) andthe Consolidated Report of Income (Schedule HI) for theprior year-ends. In the event that certain of the requireddata are not available, bank holding companies shouldcontact the appropriate Reserve Bank for information onsubmitting revised reports.


FR Y9C GEN-7General Instructions March 2010

LINE ITEM INSTRUCTIONS FOR

Consolidated Report of IncomeSchedule HI

The line item instructions should be read in conjunction with the Glossary andother sections of these instructions. See the discussion of the Organization of theInstruction Books in the General Instructions.

General InstructionsReport in accordance with these instructions all incomeand expense of the consolidated bank holding companyfor the calendar year-to-date. Include adjustments ofaccruals and other accounting estimates made shortlyafter the end of a reporting period which relate to theincome and expense of the reporting period.

Bank holding companies that began operating during thereporting period should report in the appropriate items ofSchedule HI all income earned and expense incurredsince commencing operations. The bank holding com-pany should report pre-opening income earned andexpenses incurred from inception until the date opera-tions commenced using one of the two methods describedin the Glossary entry for start-up activities.

Business Combinations and Reorganizations If thebank holding company entered into a business combina-tion that became effective during the reporting period andwhich has been accounted for under the acquisitionmethod, report the income and expense of the acquiredbusiness only after its acquisition. If the bank holdingcompany entered into a reorganization that became effec-tive during the year-to-date reporting period and has beenaccounted for at historical cost in a manner similar to apooling of interests, report the income and expense of thecombined entities for the entire calendar year-to-date asthough they had combined at the beginning of the year.For further information on business combinations andreorganizations, see the Glossary entry for businesscombinations.

Assets and liabilities accounted under the fair valueoption Under U.S. generally accepted accountingprinciples (GAAP) (i.e., FASB Statement No. 159, TheFair Value Option for Financial Assets and FinancialLiabilities (FAS 159); FASB Statement No. 155,Accounting for Certain Hybrid Financial Instruments(FAS 155); and FASB Statement No. 156, Accounting

for Servicing of Financial Assets (FAS 156)), the bankholding company may elect to report certain assets andliabilities at fair value with changes in fair value recog-nized in earnings. This election is generally referred to asthe fair value option. If the bank holding company haselected to apply the fair value option to interest-bearingfinancial assets and liabilities, it should report the interestincome on these financial assets (except any that are innonaccrual status) and the interest expense on thesefinancial liabilities for the year-to-date in the appropriateinterest income and interest expense items on ScheduleHI, not as part of the reported change in fair value ofthese assets and liabilities for the year-to-date. The bankholding company should measure the interest income orinterest expense on a financial asset or liability to whichthe fair value option has been applied using either thecontractual interest rate on the asset or liability or theeffective yield method based on the amount at which theasset or liability was first recognized on the balancesheet. Although the use of the contractual interest rate isan acceptable method under GAAP, when a financialasset or liability has a significant premium or discountupon initial recognition, the measurement of interestincome or interest expense under the effective yieldmethod more accurately portrays the economic substanceof the transaction. In addition, in some cases, GAAPrequires a particular method of interest income recogni-tion when the fair value option is elected. For example,when the fair value option has been applied to a benefi-cial interest in securitized financial assets within thescope of Emerging Issues Task Force Issue No. 99-20,Recognition of Interest Income and Impairment onPurchased and Retained Beneficial Interests in Securi-tized Financial Assets, interest income should be mea-sured in accordance with the consensus in this Issue.Similarly, when the fair value option has been applied toa purchased impaired loan or debt security accounted forunder AICPA Statement of Position 03-3, Accountingfor Certain Loans or Debt Securities Acquired in a

FR Y-9C HI-1Schedule HI September 2009

Transfer, interest income on the loan or debt securityshould be measured in accordance with this Statement ofPosition when accrual of income is appropriate. Forfurther information, see the Glossary entry for Pur-chased Impaired Loans and Debt Securities.

Revaluation adjustments, excluding amounts reported asinterest income and interest expense, to the carryingvalue of all assets and liabilities reported in Schedule HCat fair value under a fair value option (excluding servic-ing assets and liabilities reported in Schedule HC, item10(b), Other intangible assets, and Schedule HC, item20, Other liabilities, respectively, and assets and liabili-ties reported in Schedule HC, item 5, Trading assets,and Schedule HC, item 15, Trading liabilities, respec-tively) resulting from the periodic marking of such assetsand liabilities to fair value should be reported as Othernoninterest income in Schedule HI, item 5(l).

Line Item 1 Interest income.

Line Item 1(a) Interest and fee income on loans.

Report in the appropriate subitem all interest, fees, andsimilar charges levied against or associated with allassets reportable as loans in Schedule HC-C, items 1through 9.

Deduct interest rebated to customers on loans paid beforematurity from gross interest earned on loans; do notreport as an expense.

Include as interest and fee income on loans:

(1) Interest on all assets reportable as loans extendeddirectly, purchased from others, sold under agree-ments to repurchase, or pledged as collateral for anypurpose.

(2) Loan origination fees, direct loan origination costs,and purchase premiums and discounts on loans heldfor investment, all of which should be deferred andrecognized over the life of the related loan as anadjustment of yield under FASB Statement No. 91 asdescribed in the Glossary entry for loan fees. Seeexclusion (3) below.

(3) Loan commitment fees (net of direct loan originationcosts) that must be deferred over the commitmentperiod and recognized over the life of the related loanas an adjustment of yield under FASB Statement No.91 as described in the Glossary entry for loan fees.

(4) Investigation and service charges, fees representing areimbursement of loan processing costs, renewal andpast-due charges, prepayment penalties, and feescharged for the execution of mortgages or agree-ments securing the bank holding companys loans.

(5) Charges levied against overdrawn accounts based onthe length of time the account has been overdrawn,the magnitude of the overdrawn balance, or whichare otherwise equivalent to interest. See exclusion (6)below.

(6) The contractual amount of interest income earned onloans that are reported at fair value under a fair valueoption.

Exclude from interest and fee income on loans:

(1) Fees for servicing real estate mortgages or otherloans that are not assets of the bank holding company(report in Schedule HI, item 5(f), Net servicingfees).

(2) Charges to merchants for the bank holding compa-nys handling of credit card or charge sales when thebank holding company does not carry the related loanaccounts on its books (report as Other noninterestincome in Schedule HI, item 5(l)). Bank holdingcompanies may report this income net of the expenses(except salaries) related to the handling of thesecredit card or charge sales.

(3) Loan origination fees, direct loan origination costs,and purchase premiums and discounts on loans heldfor sale, all of which should be deferred until the loanis sold (rather than amortized). The net fees or costsand purchase premium or discount are part of therecorded investment in the loan. When the loan issold, the difference between the sales price and therecorded investment in the loan is the gain or loss onthe sale of the loan. See exclusion (4) below.

(4) Net gains (losses) from the sale of all assets report-able as loans (report in Schedule HI, item 5(i), Netgains (losses) on sales of loans and leases). Refer tothe Glossary entry for transfers of financial assets.

(5) Reimbursements for out-of-pocket expenditures (e.g.,for the purchase of fire insurance on real estatesecuring a loan) made by the bank holding companyfor the account of its customers. If the bank holdingcompanys expense accounts were charged with the

Schedule HI

HI-2 FR Y-9CSchedule HI September 2009

amount of such expenditures, the reimbursementsshould be credited to the same expense accounts.

(6) Transaction or per item charges levied against depositaccounts for the processing of checks drawn againstinsufficient funds that the bank holding companyassesses regardless of whether it decides to pay,return, or hold the check, so-called NSF checkcharges (report as Service charges on depositaccounts (in domestic offices), in Schedule HI, item5(b), or, if levied against deposit accounts in foreignoffices, as Other noninterest income in ScheduleHI, item 5(l)). See inclusion (5) above.

(7) Interchange fees earned from credit card transactions(report as Other noninterest income in ScheduleHI, item 5(l)).

Line Item 1(a)(1) Interest and fee income on loansin domestic offices.

Report all interest, fees, and similar charges leviedagainst or associated with all loans in domestic officesreportable in Schedule HC-C, items 1 through 9, col-umn B for bank holding companies with foreign officesand reportable in Schedule HC-C, items 1 through 9, forbank holding companies with domestic offices only.

Line Item 1(a)(1)(a) Interest and fee income onloans secured by 1-4 family residential properties.

Report all interest, fees, and similar charges leviedagainst or associated with all loans secured by 1-4 familyresidential properties (in domestic offices) reportable inSchedule HC-C, item 1(c), column B.

Line Item 1(a)(1)(b) Interest and fee income on allother loans secured by real estate.

Report all interest, fees, and similar charges leviedagainst or associated with all loans secured by real estate(in domestic offices) reportable in Schedule HC-C, items1(a), 1(b), 1(d), and 1(e), column B. Include interest andfee income on loans secured by 1-4 family residentialconstruction loans, but exclude such income on all otherloans secured by 1-4 family residential properties.

Line Item 1(a)(1)(c) Interest and fee income on allother loans.

Report all interest, fees, and similar charges leviedagainst or associated with all other loans (in domesticoffices) (other than loans secured by real estate in domes-

tic offices) reportable in Schedule HC-C, items 2 through9, column B.

Line Item 1(a)(2) Interest and fee income on loansin foreign offices, Edge and Agreement subsidiaries,and IBFs.

Report all interest, fees, and similar charges leviedagainst or associated with all loans in foreign offices,Edge and Agreement subsidiaries, and IBFs reportable inSchedule HC-C, column A, items 1 through 9.

Line Item 1(b) Income from lease financingreceivables.

Report income from direct financing and leveraged leasesreportable in Schedule HC-C, item 10, Lease financingreceivables (net of unearned income). (See Glossaryentry for lease accounting.)

Exclude:

(1) Any investment tax credit associated with leasedproperty (include in Schedule HI, item 9, Applica-ble income taxes.)

(2) Provision for possible losses on leases (report inSchedule HI, item 4, Provision for loan and leaselosses).

(3) Rental fees applicable to operating leases for furni-ture and equipment rented to others (report in Sched-ule HI, item 5(l), Other noninterest income).

Line Item 1(c) Interest income on balances duefrom depository institutions.

Report all income on assets reportable in Schedule HC,item 1(b), Interest-bearing balances due from deposi-tory Institutions, including interest-bearing requiredreserve and excess balances due from Federal ReserveBanks. Include interest income earned on interest-bearingbalances due from depository institutions that are reportedat fair value under a fair value option. However, excludeany credit associated with clearing balances due fromFederal Reserve Banks.

Line Item 1(d) Interest and dividend income onsecurities.

Report in the appropriate subitem all income on assetsthat are reportable in Schedule HC-B, Securities. Includeaccretion of discount on securities for the current period.Deduct current amortization of premium on securi-

Schedule HI


ties. (Refer to the Glossary entry for premiums anddiscounts.)

Include interest and dividends on securities held in theconsolidated bank holding companys portfolio, loaned,sold subject to repurchase, or pledged as collateral forany purpose.

Include interest received at the sale of securities to theextent that such interest had not already been accrued onthe consolidated bank holding companys books.

Do not deduct accrued interest included in the purchaseprice of securities from income on securities and do notcharge to expense. Record such interest in a separateasset account (to be reported in Schedule HC, item 11,Other assets) to be offset upon collection of the nextinterest payment.

Report income from detached U.S. Government securitycoupons and ex-coupon U.S. Government securities notheld for trading in item 1(d)(3) as interest and dividendincome on All other securities. Refer to the Glossaryentry for coupon stripping, Treasury receipts, andSTRIPS.

Exclude from interest and dividend income on securites:

(1) Realized gains (losses) on held-to-maturity securitiesand on available-for-sale securities (report in Sched-ule HI, items 6(a) and 6(b), respectively).

(2) Net unrealized holding gains (losses) on available-for-sale securities (include the amount of such netunrealized holding gains (losses) in Schedule HC,item 26(b), Accumulated other comprehensiveincome, and the calendar year-to-date change insuch net unrealized holding gains (losses) in Sched-ule HI-A, item 10, Other comprehensive income).

(3) Income from advances to, or obligations of, majority-owned subsidiaries not consolidated, associated com-panies, and those corporate joint ventures over whichthe consolidated bank holding company exercisessignificant influence (report as Noninterest incomein the appropriate subitem of Schedule HI, item 5).

Line Item 1(d)(1) U.S. Treasury securities and U.S.government agency obligations (excludingmortgage-backed securities).

Report income from all securities reportable in Sched-ule HC-B, item 1, U.S. Treasury securities, and item 2,

U.S. government agency obligations. Include accretionof discount on U.S. Treasury bills.

Line Item 1(d)(2) Mortgage-backed securities.

Report all income from securities reportable in Sched-ule HC-B, item 4, Mortgage-backed securities.

Line Item 1(d)(3) All other securities.

Report in the appropriate subitem income from all otherdebt securities and from all equity securities of com-panies domiciled in the U.S. that are reportable inSchedule HC-B, item 3, Securities issued by states andpolitical subdivisions in the U.S., item 5, Asset-backedsecurities (ABS), item 6, Other debt securities, anditem 7, Investments in mutual funds and other equitysecurities with readily determinable fair values.

Exclude from interest and dividend income on all othersecurities:

(1) Income from equity securities that do not havereadily determinable fair values (report as Otherinterest income in Schedule HI, item 1(g)).

(2) The consolidated bank holding companys propor-tionate share of the net income or loss from itscommon stock investments in domestic unconsoli-dated subsidiaries, associated companies, and thosecorporate joint ventures over which the consoli-dated bank holding company exercises significantinfluence (report income or loss before extraor-dinary items and other adjustments in the appropriatesubitem of item 5 and report extraordinary items, netof applicable taxes and minority interest, in Sched-ule HI, item 12).

Line Item 1(e) Interest income from tradingassets.

Report the interest income earned on assets reportable inSchedule HC, item 5, Trading assets.

Include accretion of discount on assets held in tradingaccounts that have been issued on a discount basis, suchas U.S. Treasury bills and commercial paper.

Exclude gains (losses) and fees from trading assets,which should be reported in Schedule HI, item 5(c),Trading revenue. Also exclude revaluation adjust-ments from the periodic marking to market of derivativecontracts held for trading purposes, which should bereported as trading revenue in Schedule HI, item 5(c).

Schedule HI


The effect of the periodic net settlements on thesederivative contracts should be included as part of therevaluation adjustments from the periodic marking tomarket of the contracts.

Line Item 1(f) Interest income on federal fundssold and securities purchased under agreements toresell.

Report the gross revenue from assets reportable in Sched-ule HC, item 3, Federal funds sold and securitiespurchased under agreements to resell. Include the con-tractual amount of interest income earned on federalfunds sold and securities purchased under agreements toresell that are reported at fair value under a fair valueoption.

Line Item 1(g) Other interest income.

Report all interest income not properly reported initems 1(a) through 1(f) above. Other interest incomeincludes, but is not limited to:

(1) Interest income on real estate sales contracts report-able in Schedule HC, item 7, Other real estateowned.

(2) Interest income from advances to, or obligations of,majority-owned subsidiaries not consolidated on thisreport, associated companies, and those corporatejoint ventures over which the consolidated bankholding company exercises significant influence.

Exclude the consolidated bank holding companysproportionate share of the income or loss beforeextraordinary items and other adjustments from itscommon stock investments in unconsolidated sub-sidiaries, associated companies, and those corporatejoint ventures over which the bank holding companyexercises significant influence (report in item 5(l),Other noninterest income) and the consolidatedbank holding companys proportionate share of mate-rial extraordinary items and other adjustments ofthese entities (report in item 12, Extraordinaryitems net of applicable taxes and minority interest).

(3) Interest received on other assets not specified above.

Line Item 1(h) Total interest income.

Report the sum of items 1(a) through 1(g).

Line Item 2 Interest expense.

Line Item 2(a) Interest on deposits.

Report in the appropriate subitem all interest expense,including amortization of the cost of merchandise orproperty offered in lieu of interest payments, on depositsreportable in Schedule HC, item 13(a)(2), Interest-bearing deposits in domestic offices, and Schedule HC,item 13(b)(2), Interest-bearing deposits in foreign offices,Edge and Agreement subsidiaries, and IBFs.Exclude the cost of gifts or premiums (whether in theform of merchandise, credit, or cash) given to depositorsat the time of the opening of a new account or an additionto, or renewal of, an existing account (report in ScheduleHI, item 7(d), Other noninterest expense).Include as interest expense on the appropriate category ofdeposits finders fees and brokers fees that represent anadjustment to the interest rate paid on deposits thereporting bank holding company acquires through bro-kers. If material, such fees should be capitalized andamortized over the term of the related deposits. However,exclude fees levied by brokers that are, in substance,retainer fees or that otherwise do not represent an adjust-ment to the interest rate paid on brokered deposits (reportin Schedule HI, item 7(d), Other noninterest expense).Also include as interest expense the contractual amountof interest expense incurred on deposits that are reportedat fair value under a fair value option. Deposits withdemand features (e.g., demand and savings deposits indomestic offices) are generally not eligible for the fairvalue option.

Deduct from the gross interest expense of the appropriatecategory of time deposits penalties for early withdrawals,or portions of such penalties, that represent the forfeitureof interest accrued or paid to the date of withdrawal. Ifmaterial, portions of penalties for early withdrawals thatexceed the interest accrued or paid to the date of with-drawal should not be treated as a reduction of interestexpense but should be included in Other noninterestincome in Schedule HI, item 5(l).

Line Item 2(a)(1) Interest on deposits in domesticoffices.

Line Item 2(a)(1)(a) Interest on time deposits of$100,000 or more.

Report interest expense on all time deposits reportablein Schedule HC-E, items 1(e) and 2(e), Time deposits

Schedule HI


of $100,000 or more in domestic offices of commer-cial banks and in domestic offices of other depositoryinstitutions.

Line Item 2(a)(1)(b) Interest on time deposits ofless than $100,000.

Report in this item all interest expense reportable inSchedule HC-E, items 1(d) and 2(d), Time deposits ofless than $100,000 in domestic offices of subsidiarycommercial banks and in domestic offices of other sub-sidiary depository institutions.

Line Item 2(a)(1)(c) Interest on other deposits.

Report interest expense on all deposits reportable inSchedule HC, item 13(a)(2), Interest-bearing depositsin domestic offices, excluding interest on time depositsin domestic offices of subsidiary commercial banks andin domestic offices of other subsidiary depository insti-tutions, which are reportable in items 2(a)(1)(a) or2(a)(1)(b) above.

Line Item 2(a)(2) Interest on deposits in foreignoffices, Edge and Agreement subsidiaries, and IBFs.

Report interest expense on all deposits in foreign officesreportable in Schedule HC, item 13(b)(2), Interest-bearing deposits in foreign offices, Edge and Agreementsubsidiaries, and IBFs.

Line Item 2(b) Expense of federal fundspurchased and securities sold under agreements torepurchase.

Report the gross expense of all liabilities reportable inSchedule HC, item 14, Federal funds purchased andsecurities sold under agreements to repurchase. Includethe contractual amount of interest expense incurred onfederal funds purchased and securities sold under agree-ments to repurchase that are reported at fair value under afair value option.

Report the income of federal funds sold and securitiespurchased under agreements to resell in Schedule HI,item 1(f); do not deduct from the gross expense reportedin this item. However, if amounts recognized as payablesunder repurchase agreements have been offset againstamounts recognized as receivables under reverse repur-chase agreements and reported as a net amount inSchedule HC, Balance Sheet, in accordance with FASBInterpretation No. 41, the income and expense from these

agreements may be reported on a net basis in ScheduleHI, Income Statement.

Line Item 2(c) Interest on trading liabilities andother borrowed money.

Report the interest expense on all liabilities reportable inSchedule HC, item 15, Trading liabilities, and item 16,Other borrowed money. Include the contractual amountof interest expense incurred on other borrowed moneyreported at fair value under a fair value option.

Line Item 2(d) Interest on subordinated notes anddebentures.

Report the interest expense on all liabilities reportable inSchedule HC, item 19(a), Subordinated notes and deben-tures. Include the contractual amount of interest expenseincurred on subordinated notes and debentures reportedat fair value under a fair value option.

Include the interest expense of mandatory convertiblesecurities associated with gross equity contract notes andgross equity commitment notes.

Include amortization of expenses incurred in the issuanceof subordinated notes and debentures. Capitalize suchexpenses, if material, and amortize them over the life ofthe related notes and debentures (unless the notes anddebentures are reported at fair value under a fair valueoption, in which case issuance costs should be expensedas incurred).

Exclude from this item interest on any reportable notespayable to unconsolidated special purpose entities thatissue trust preferred securities (included in Schedule HC,item 19(b), Subordinated notes payable to unconsoli-dated trusts issuing trust preferred securities, and trustpreferred securities issued by consolidated special pur-pose entities). Report this interest expense in ScheduleHI, item 2(e), Other interest expense.

Exclude from this item the amortization of expensesincurred in the issuance of these notes payable. Capital-ize such expenses, if material, and amortize them overthe life of the related notes payable. Report these amor-tized issuance costs in Schedule HI, item 2(e).

Exclude dividends declared or paid on limited-life pre-ferred stock (report dividends declared in Schedule HI-A,item 10).

Schedule HI


Line Item 2(e) Other interest expense.

Report in this item the interest expense on all otherliabilities not reported in Schedule HI, items 2(a) through2(d) above.

Line Item 2(f) Total interest expense.

Report the sum of Schedule HI, items 2(a) through 2(e).

Line Item 3 Net interest income.

Report the difference between item 1(h), Total interestincome and item 2(f), Total interest expense.

consolidated financial statements for bank holding companies

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