Recordkeeping FR 2314 (annual)

Board of Governors of the Federal Reserve System

Instructions for the Preparation of

Financial Statements of Foreign Subsidiaries of
U.S. Banking Organizations
Reporting Form FR 2314 and FR 2314S
Effective March 2024

Contents

General Instructions for Preparation of Financial Statements of Foreign Subsidiaries of
U.S. Banking Organizations

.............................................................................................................................. GEN-1
Quarterly Filers—Detailed Report (FR 2314) ...................................................................................... GEN-2
Annual Filers—Detailed Report (FR 2314) ......................................................................................... GEN-2
Annual Filers—Abbreviated Report (FR 2314S) .................................................................................. GEN-2
Other Reporting Criteria .................................................................................................................... GEN-3
Exemptions from Reporting Foreign Subsidiary Financial Statements ................................................... GEN-3
Frequency of Reporting ..................................................................................................................... GEN-4
Preparation of the Reports ................................................................................................................. GEN-4
Who Must Report

Applicability of Generally Accepted Accounting Principles to Foreign Subsidiaries of U.S. Banking
Organization Reporting Requirements

................................................................................................ GEN-4
Page 1 ............................................................................................................................................... GEN-5
Detailed Listing of Subsidiaries .......................................................................................................... GEN-5
Submission of Reports ....................................................................................................................... GEN-5
Monitoring of Regulatory Reports ..................................................................................................... GEN-6
Confidentiality .................................................................................................................................. GEN-7
Amended Reports .............................................................................................................................. GEN-7
Definitions ........................................................................................................................................ GEN-8
Miscellaneous General Instructions ..................................................................................................... GEN-8
Additional Information ...................................................................................................................... GEN-8
Instructions for Preparation of Financial Statements of Foreign Subsidiaries of U.S.
Banking Organizations

.............................................................................................................. IS-1
Schedule IS-A—Changes in Equity Capital .......................................................................................... IS-A-1
Schedule IS-B—Changes in Allowance for Credit Losses ....................................................................... IS-B-1
Schedule BS—Balance Sheet and Off-Balance-Sheet Items ....................................................................... BS-1
Schedule BS-A—Loans and Lease Financing Receivables .................................................................... BS-A-1
Schedule BS-M—Memoranda ........................................................................................................... BS-M-1
Notes to the Financial Statements—Notes to the Financial Statements ................................................ Notes-1
Schedule IS—Income Statement

FR 2314 and FR 2314S

CONTENTS-1
March 2024

INSTRUCTIONS FOR PREPARATION OF

Financial Statements of Foreign
Subsidiaries of U.S. Banking
Organizations
FR 2314 and FR 2314S

General Instructions
Who Must Report
The Financial Statements of Foreign Subsidiaries of
U.S. Banking Organizations (FR 2314/FR 2314S) must
be filed by foreign subsidiaries of U.S. banking organizations (USBOs). Regulation K defines foreign or foreign country as one or more foreign nations, and
includes the overseas territories, dependencies, and
insular possessions of those nations and of the United
States, and the Commonwealth of Puerto Rico.
The FR 2314/FR 2314S must be submitted for each
legal entity subject to reporting requirements. Therefore, consolidation of individual entities is not
permitted.
Unless otherwise instructed, the FR 2314/FR 2314S is
to be submitted for any organization, also referred to
as a “subsidiary,” described below except a corporation
which itself is organized under Section 25 or 25A of
the Federal Reserve Act.1 For purposes of this report,
“subsidiaries” include, but are not limited to:

(1) Any organization which is a “subsidiary” as
defined by Section 211.2(w) of Regulation K of
the Board of Governors of the Federal Reserve
System (see “Definitions”);
(2) Any other subsidiary in which shares have been
acquired under Regulation K where the Board’s
consent to such acquisitions is conditioned on
the furnishing of reports, and all subsidiaries of
such organizations;
(3) Any organization in which shares have been
acquired, directly or indirectly, by a bank holding company organization’s equity capital or if
1. Such Edge or agreement corporations report on the FR 2886b.

FR 2314 and FR 2314S

the Board’s consent to the acquisition is conditioned on the furnishing of reports;

(4) Any subsidiary in which shares have been
acquired, directly or indirectly, by a financial
holding company under Section 4(k)(4) of the
BHC Act, as amended by the Gramm−Leach−Bliley Act for bank holding companies or Section 10(c)(2)(H) of the HOLA for savings and
loan holding companies, domiciled outside of
the United States,2 (except subsidiaries that are
functionally regulated as discussed in the exemptions section below). Refer to the FR Y-9C
Glossary entry for “Addressee (Domicile)” for
the definition of domicile.
(5) Any other foreign organization directly or indirectly managed or controlled by, or operated on
behalf of, a bank that is a member of the Federal Reserve System, a holding company, or any
organization required to report under 1 through
4 above, through management contracts, trust
agreements, or similar instruments.
For purposes of this report, holding company is
collectively used for bank holding company, savings and loan holding company, securities holding company, and U.S. intermediate holding
companies.

(6) Any domestic subsidiary of USBOs (principally
held by an Edge or agreement corporation),
that qualifies under Regulation K or Section 4
(c) (13) of the BHC Act, as amended

2. Any such organization domiciled in the United States should file
either the Financial Statements of U.S. Nonbank Subsidiaries of Holding Companies (FR Y-11) or the Abbreviated Financial Statements of
U.S. Nonbank Subsidiaries of Holding Companies (FR Y-11S) pursuant to the reporting threshold requirements for those reports

GEN-1

September 2016

General Instructions

(i.e., subsidiaries authorized to conduct overseas
activities even if domiciled in the U.S.).

Quarterly Filers—Detailed Report
(FR 2314)
A USBO must file the FR 2314 quarterly for its subsidiary if the subsidiary is owned or controlled by a parent3
U.S. holding company that has total consolidated
assets of $500 million or more as of June 30 of the preceding year or files the FR Y-9C to meet supervisory
needs, or the subsidiary is owned or controlled by a
state member bank or an Edge or agreement corporation that has total consolidated assets equal to or
greater than $500 million, and the subsidiary meets any
one of the following criteria:

(1) Total assets of the foreign subsidiary are equal
to or greater than $1 billion;
(2) The foreign subsidiary’s off-balance-sheet activities4 are equal to or greater than $5 billion;
(3) The foreign subsidiary’s equity capital is equal
to or greater than 5 percent of the top-tier organization’s consolidated equity capital; or
(4) The foreign subsidiary’s operating revenue is
equal to or greater than 5 percent of the top-tier
organization’s consolidated operating revenue.
Operating revenue is defined as the sum of total interest income and total noninterest income, before deduction of expenses.
For foreign subsidiaries held by a USBO that is, in
turn, owned by a foreign banking organization (FBO),
the operating revenue and equity capital of the USBO
are used as the top-tier organization’s values.
If a foreign subsidiary meets the criteria above to file
quarterly as of June 30 of the preceding year, the par3. For report dates through December 31, 2021, quarterly filing not
required if nonbank subsidiary has total assets less than $1 billion using
the lesser of normal reporting applicability measurement date or
12/31/2019 as-of-date and does not meet any of other criteria to file
quarterly.
4. Off-balance-sheet activities (defined as the sum of Schedule BS,
items 20 through 30) include commitments to purchase foreign currencies and U.S. dollar exchange, all other future and forward contracts,
option contracts, and the notional value of interest rate swaps, exchange
swaps, and other swaps.

GEN-2

March 2021

ent organization must file the FR 2314 quarterly for
the subsidiary beginning in March of the current year.
In addition, if the subsidiary meets the quarterly criteria due to being newly formed or a business combination, then the parent organization must report the
FR 2314 quarterly beginning with the first quarterly
report date following the effective date of the inception
of the subsidiary or business combination, respectively.
Once a nonbank subsidiary begins filing the FR 2314
quarterly, it should file a complete FR 2314 quarterly
going forward. If the parent USBO is a holding company that has total consolidated assets of $500 million
or more as of June 30 of the preceding year or files the
FR Y-9C to meet supervisory needs or a state member
bank or an Edge or agreement corporation that has
total consolidated assets equal to or greater than
$500 million, and the subsidiary does not meet any one
of the other quarterly nonbank subsidiary filing criteria for four consecutive quarters, then the parent organization may revert to annual filing beginning with the
first upcoming December
report date.
Foreign subsidiaries that do not meet the quarterly
filing thresholds may be requested to file quarterly if
the Federal Reserve Bank has determined that these
subsidiaries have significant risk exposures.

Annual Filers—Detailed Report (FR 2314)
A foreign subsidiary that does not meet any of the criteria to file quarterly, but has total assets greater than
or equal to $500 million and less than $1 billion as of
the report date must file the entire FR 2314 report on
an annual basis.5

Annual Filers—Abbreviated Report
(FR 2314S)
A foreign subsidiary that does not meet the criteria to
file the detailed report, but has total assets greater than
or equal to $250 million and less than $500 million as
of the report date must file the Abbreviated Financial
5. For report dates through December 31, 2021, annual filing not
required if nonbank subsidiary total assets was not greater than
$500 million and less than $1 billion using the lesser of normal reporting applicability measurement date or 12/31/2019 as-of-date and does
not meet any of other criteria to file quarterly.

FR 2314 and FR 2314S

General Instructions

Statements of Foreign Subsidiaries of U.S. Banking
Organizations (FR 2314S) on an annual basis.6

Other Reporting Criteria
• Each USBO must submit a separate FR 2314/
FR 2314S for each of its foreign subsidiaries satisfying the above criteria whether directly or indirectly
owned. The reporting USBO must submit a report
on a parent only (non-consolidated) basis for each
parent subsidiary meeting the criteria and submit
individual reports for each lower level subsidiary
required to file the report.
• Consolidation of individual entities, including variable interest entities (VIEs), is not permitted. Each
USBO should separately assess whether a VIE meets
the definition of subsidiary and determine if any
such entity meets the criteria for filing this report.
• The FR 2314/FR 2314S report for a subsidiary
owned by more than one parent organization should
be submitted in its entirety by the organization with
the majority ownership. If a subsidiary is equally
owned by two or more parent organizations, the
FR 2314/FR 2314S report should be submitted in its
entirety by the largest organization based on total
consolidated assets.

Exemptions from Reporting Foreign
Subsidiary Financial Statements
The following subsidiaries are exempt from submitting
the financial statements for foreign subsidiaries of
USBOs:
• Any subsidiary with less than $250 million in total
assets unless the quarterly reporting criteria is met;
• Any foreign subsidiary that is functionally regulated
by a U.S. regulatory agency other than the Federal
Reserve System, such as the Securities and Exchange
Commission, Commodities Futures Trading Com6. For report dates through December 31, 2021, annual filing (abbreviated report) not required if nonbank subsidiary total assets was not
greater than $250 million and less than $500 million using the lesser of
normal reporting applicability measurement date or 12/31/2019 as-ofdate and does not meet any of other criteria to file quarterly.

FR 2314 and FR 2314S

mission, State Insurance Commissioners and State
Securities departments;
• Any subsidiary that is required to file a Report of
Condition for Edge or Agreement Corporations
(FR 2886b);
• Any subsidiary, joint venture, or portfolio investment that is required to file the Financial Statements
of U.S. Nonbank Subsidiaries of U.S. Holding Companies (FR Y-11/FR Y-11S);
• Any subsidiary that is required to file the Financial
Statements for a Bank Holding Company Subsidiary
Engaged in Bank-Ineligible Securities Underwriting
and Dealing (FR Y-20);
• Any subsidiary of a “qualified FBO” as defined by
Section 211.23(a) of Regulation K (12 CFR
211.23(a)) except for subsidiaries of a U.S. holding
company, U.S. bank, or Edge corporation, which is
the direct subsidiary of a qualified FBO;
• Any subsidiary that is considered a merchant banking investment, the shares of which are held pursuant
to section 4(k)4(H) of the BHC Act;
• Any U.S. federally insured foreign company which is
a subsidiary of a holding company (i.e., banks in
Puerto Rico or in U.S. territories or possessions);
• Any subsidiary of a U.S. federally insured foreign
company that is a subsidiary of a holding company,
unless such subsidiary is held pursuant to Regulation K;
• Any subsidiary of a Small Business Investment Company (SBIC controlled investment);
• Any nondepository trust company that is a member
of the Federal Reserve System and required to file
the Consolidated Reports of Condition and Income;
• Any company the shares of which are held: (1) as a
result of debts previously contracted (acquired under
section 4(c)(2) of the BHC Act); (2) in a fiduciary
capacity under section 4c(4) of the BHC Act; or
(3) solely as collateral securing an extension of credit;
• Any subsidiary that is inactive as of the end of the
reporting period;

GEN-3

September 2022

General Instructions

• Any subsidiary such as a namesaver or a newly organized subsidiary that has never conducted any business activity. However, a subsidiary that is newly
incorporated is required to report upon the commencement of a business activity if it meets the
reporting criteria;
• Any subsidiary that was divested or liquidated during the year. Reports must only be filed for subsidiaries that are part of the parent organization’s structure as of the close of the business day on the report
date for which the report is being filed; and
• Any subsidiary that is a special purpose vehicle
(SPV) formed as a vehicle for specific leasing transactions (for example, when an SPV is engaged in a
single leasing transaction).
• Any subsidiary that issues trust preferred securities.
Foreign subsidiaries that are not required to file under
the above criteria may be required to file this report by
the Federal Reserve Bank of the district in which they
are regulated.
A graphic representation of the general criteria for the
FR 2314/FR 2314S appears at the end of these General
Instructions (page GEN-9).

Frequency of Reporting
A USBO must submit the FR 2314 report for each foreign subsidiary that meets the criteria to file quarterly
as of the last calendar day of March, June, September
and December. A USBO must submit the FR 2314
report for each foreign subsidiary that meets the criteria to file annually as of December 31. A USBO must
submit the FR 2314S for each foreign subsidiary that
meets the criteria to file the abbreviated report annually as of December 31.

Preparation of the Reports
Parent USBOs are requested to prepare and file the
Financial Statements for Foreign Subsidiaries of U.S.
Banking Organizations (FR 2314/FR 2314S) in accordance with Generally Accepted Accounting Principles
(GAAP), and these instructions. However, respondents
may submit reports based on the foreign country’s
accounting standards if submitting reports on this
basis would materially reduce reporting burden. All
reports shall be prepared in a consistent manner.
GEN-4

September 2022

USBOs should refer to the instructions for the preparation of the Consolidated Financial Statements for
Holding Companies (FR Y-9C) or the Parent Company Only Financial Statements for Small Holding
Companies (FR Y-9SP) for additional information on
the items requested on this report. Copies of the
FR 2314, FR 2314S, FR Y-9C, and FR Y-9SP may be
found on the Federal Reserve Board’s public website
(www.federalreserve.gov/apps/ReportingForms).
The foreign subsidiaries’ financial records shall be
maintained in such a manner and scope so as to ensure
that the reports can be prepared and filed in accordance with these instructions and reflect a fair presentation of the subsidiaries’ financial condition and
results of operations. Questions and requests for interpretations of matters appearing in any part of these
instructions should be addressed to the Federal
Reserve Bank in the district where the reports are
submitted.
Report all financial items in thousands of U.S. dollars.
Assets or liabilities payable in other currencies should
be converted into dollars at the exchange rates prevailing on the report date, except where required otherwise
by Generally Accepted Accounting Principles
(GAAP).
The preferred method for reporting purchases and
sales of assets is as of the trade date. However, settlement date accounting is acceptable if the reported
amounts are not materially different.

Applicability of Generally Accepted
Accounting Principles to Foreign
Subsidiaries of U.S. Banking Organization
Reporting Requirements
It should be noted that the presentation by subsidiaries
of assets, liabilities, and stockholders’ equity and the
recognition of income and expenses is requested to be
reported in accordance with Generally Accepted
Accounting Principles (GAAP). Subsidiaries are
required to report certain other accounts or types of
transactions on schedules to the balance sheet and
income statement. In addition, these instructions designate where a particular asset or liability should be
reported.
FR 2314 and FR 2314S

General Instructions

All ownership interests in the subsidiary have an interest in the aggregate amounts of a subsidiary’s reported
earnings, retained earnings, and net assets (whether
held by its parent organization or by other owners) and
should be reported as equity capital in the financial
statements.
There may be areas in which a reporting subsidiary
wishes more technical detail on the application of
accounting standards and procedures to the requirements of these instructions. Such information may
often be found in the appropriate entries in the Glossary section of the FR Y-9C instructions or, in more
detail, in the FASB Accounting Standards Codification. For purposes of these instructions, the FASB
Accounting Standards Codification is referred to as
“ASC.” Selected sections of the ASC are referenced in
the instructions where appropriate.

Page 1
The USBO must submit a page 1 for each financial
statement. If the USBO elects to file multiple financial
statements under one signature, the USBO must submit one signed page 1 per type of report, the FR 2314
quarterly, the FR 2314 annual or the FR 2314S. Page 1
of the report must include the legal name of the USBO
filing the FR 2314/FR 2314S and the mailing address.
The name, telephone number, and e-mail address of a
contact at the USBO to whom questions about the
report(s) may be directed must be indicated.

Signatures
The FR 2314/FR 2314S must be signed as indicated on
page 1 by a duly authorized officer of the USBO.
When the top-tier USBO is domiciled outside the
United States, the USBO may authorize an officer of
the nonbank subsidiary to sign the report. By signing
page 1 of this report, the authorized officer acknowledges that any knowing and willful misrepresentation
or omission of a material fact on any reports included
under this signature constitutes fraud in the inducement and may subject the officer to legal sanctions provided by 18 USC 1001 and 1007.

Number of Reports Attested to Under This
Signature
For all reports submitted under the officer’s signature,
the USBO must indicate on page 1 the total number of
reports for which the officer attested.
FR 2314 and FR 2314S

December Only Reporting
For the December FR 2314 report, the USBO must
indicate on page 1 whether the submission is for quarterly or annual filers.

Detailed Listing of Subsidiaries
The USBO must complete a separate page(s) containing the detailed listing of subsidiaries for each page 1.
For submission of multiple financial statements under
the officer’s signature, the USBO must complete a
separate page(s) containing the detailed listing of subsidiaries for each type of report. The USBO must provide on the page(s) containing the detailed listing of
subsidiaries the legal name, address and subsidiary ID
for all reports attested to under the officer’s signature
as indicated on page 1. When specifying the name(s) of
the nonbank subsidiaries, use the legal name of the
subsidiaries as they appear on the papers of incorporation or formation documents. The legal name must be
the same name that is specified on the Report of
Changes in Organizational Structure (FR Y-10). The
page(s) containing the detailed listing of subsidiaries
should be retained at the USBO for their records and
should not be submitted to the Reserve Bank.

Submission of Reports
The reports are to be submitted for each report date on
the report forms provided by the Federal Reserve
Bank. No caption on the report form should be
changed in any way. No item is to be left blank. An
entry must be made for each item, i.e., an amount, a
zero, or an “N/A.”
All items will not be applicable to each foreign subsidiary required to file the report. An “N/A” should be
entered if the foreign subsidiary cannot be involved in
a transaction because of the nature of the organization. A zero should be entered whenever a foreign subsidiary can participate in an activity, but may not on
the report date, have any outstanding balances.

Where to Submit the Reports
For paper filers of report form: The original reports and
the number of copies specified by the Reserve Bank
should be submitted to the Federal Reserve Bank of
the District in which the reporter’s parent U.S. bank or
GEN-5

March 2015

General Instructions

holding company is domiciled. In cases where these
institutions are not in the same District, unless the
respondent has specific instructions to the contrary,
the following rules shall apply:

(1) Subsidiaries owned through a U.S. bank should
send reports to the Reserve Bank of that parent.
(2) Subsidiaries owned directly by a U.S. holding
company (that is, not through a subsidiary U.S.
bank) should send reports to the Reserve Bank
of the USBO.
Generally, the Federal Reserve District in which a parent Edge or agreement corporation resides is not considered in determining where to submit the report.
All reports shall be made out clearly and legibly by
typewriter or in ink. Reports completed in pencil will
not be accepted. Computer printouts are acceptable,
provided they are identical in format and detail to the
reporting form, including all item and column
captions.
USBOs must maintain in their files a copy of the
manually signed page 1 of the Reserve Bank-supplied
forms received for the report date, attached to the
page(s) containing the detailed listing of subsidiaries,
and a print out of the data submitted.
Electronic submission of report form. Any banking
organization interested in submitting the FR 2314/
FR 2314S electronically should contact the Federal
Reserve Bank in the district where the parent U.S.
Bank or holding company is domiciled.
USBOs choosing to submit these reports electronically
must maintain in their files the original manually
signed page 1 of the Reserve Bank-supplied forms
received for the report date, attached to the page(s)
containing the detailed listing of subsidiaries, and a
printout of the data submitted.

Submission Date
A USBO must file this report for its foreign subsidiaries no later than 60 calendar days after the report date.
The filing of a completed report will be considered
timely, regardless of when the reports are received by
the appropriate Federal 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 company whose comGEN-6

March 2015

pleted FR 2314/FR 2314S 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 reports 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 reports would
otherwise be mailed is an acceptable alternative to
mailing such reports. Companies that are unable to
obtain the required officers’ 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 Federal 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.
If the submission deadline falls on a weekend or holiday, the report must be received by 5:00 P.M. on the
first business day after the Saturday, Sunday, or holiday. Any report received after 5:00 P.M. on the first
business day after the Saturday, Sunday, or holiday
deadline will be considered late unless it has been postmarked three calendar days prior to the original Saturday, Sunday, or holiday submission deadline (original
deadline), or the institution has a record of sending the
report by overnight service one day prior to the original deadline.
NOTE: A reporting U.S. banking organization must
submit all of its required nonbank subsidiary reports
on or before the submission deadline to be considered
timely.

Monitoring of Regulatory Reports
Federal Reserve Banks will monitor the filing of all
regulatory reports to ensure that they are filed in a
timely manner and are accurate and not misleading.
Many reporting errors can be screened through the use
of computer validity edit checks which are detailed in
the Checklist accompanying the reporting instructions.
Reporting deadlines are detailed in the Submission
Date section of these general instructions. Additional
information on the monitoring procedures are available from the Federal Reserve Banks.
FR 2314 and FR 2314S

General Instructions

Confidentiality
These reports are available to the public upon request
on an individual basis. However, a USBO may request
confidential treatment for one or more of the subsidiaries for which it submits the financial statements for
foreign subsidiaries of USBOs if it is of the opinion
that disclosure of certain commercial or financial
information in the report would likely result in substantial harm to its (or its subsidiaries’) competitive
position or that disclosure of the submitted personal
information would result in unwarranted invasion of
personal privacy.
A request for confidential treatment must be submitted
in writing concurrently with the submission of the
report. The request must discuss in writing the justification for which confidentiality is requested, demonstrating the specific nature of the harm that would result
from public release of the information; merely stating
that competitive harm would result or that information
is personal is not sufficient.
INFORMATION FOR WHICH CONFIDENTIAL
TREATMENT IS REQUESTED SHOULD BE
REPORTED SEPARATELY BOUND WITH A
SEPARATE FR 2314/FR 2314S PAGE 1 LABELED
“CONFIDENTIAL.” THIS INFORMATION
SHOULD BE SPECIFICALLY IDENTIFIED AS
BEING CONFIDENTIAL.
The Federal Reserve will determine whether information submitted with a request for confidential treatment will be so treated, and will advise the U.S. banking organization through the appropriate Reserve
Bank of any decision to make available to the public
any of the information.
The Federal Reserve System may subsequently release
information for which confidential treatment is
requested if the Board of Governors determines that
the disclosure of such information is in the public
interest.
Check Box. USBOs 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
FR 2314 and FR 2314S

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. Information, for which confidential treatment is requested, may subsequently be
released by the Federal Reserve System in accordance
with the terms of 12 CFR 261.16, or otherwise provided by law. The Federal Reservemay subsequently
release information for which confidential treatment is
accorded if the Board of Governors determines that
the disclosure of such information is in the public
interest. If the Federal Reserve deems it necessary to
release confidential data, the reporting institution will
be notified before it is released.

Amended Reports
The Federal Reserve may require the filing of amended
Financial Statements of Foreign Subsidiaries of U.S.
Banking Organizations if reports as previously submitted contain significant errors. In addition, a USBO
should file an amended report when internal and external auditors make audit adjustments that result in a
restatement of financial statements affecting reports
previously submitted to the Federal Reserve.
When the Federal Reserve’s interpretation of how
these instructions should be applied to a specified
event or transaction (or series of related events or
transactions) differs from the reporting institution’s
interpretation, the Federal Reserve may require the
reporter to reflect the event(s) or transaction(s) in its
FR 2314/FR 2314S reports in accordance with the
Federal Reserve’s interpretation and to amend previously submitted reports.
In the event that certain of the required data are not
available, respondents should contact the appropriate
Reserve Bank for information on submitting revised
reports.
For amended reports, the USBO must submit a newly
signed page 1 and separate financial statements for
each subsidiary that is amending its data. The
page(s) containing the detailed listing of subsidiaries
must be completed, attached to page 1 and a printout
of the data submitted and placed in the USBO’s files.
The page(s) containing the detailed listing of subsidiaries should not be submitted to the Reserve Bank.
GEN-7

June 2021

General Instructions

Definitions

Miscellaneous General Instructions

Respondents should refer to the Glossary of the
Instructions for the Consolidated Financial Statements
for Holding Companies (FR Y-9C) for information
concerning general definitions.
For purposes of this report, related organizations
include (1) any organization that directly or indirectly
controls the reporting nonbank subsidiary, (2) any
organization that is controlled directly or indirectly by
the reporting nonbank subsidiary, or (3) any organization that is controlled directly or indirectly by any
USBO that controls the reporting subsidiary (i.e., if
more than one USBO directly or indirectly controls the
reporting nonbank subsidiary, then all organizations
directly or indirectly controlled by each USBO is considered related regardless of whom submits this
report). In addition, for purposes of this report related
companies include all associated companies.
Nonrelated organizations include all organizations
that do not meet the definition of “related organizations.” Nonrelated organizations include all organizations outside of the USBO structure and refer to third
party entities.
7

In addition, for purposes of this report “subsidiary”
means any organization that has more than 50 percent
of its voting shares held directly or indirectly, or that
otherwise is controlled or capable of being controlled,
by the investor or an affiliate of the investor under any
authority. Among other circumstances, an investor is
considered to control an organization if:

Rounding
All financial items must be reported in thousands of
dollars, with the figures rounded to the nearest thousand. Items less than $500 should be reported as zero.

Negative Entries
Negative entries are generally not appropriate on the
FR 2314/FR 2314S reports and should not be reported
unless the line item instructions allow it. Hence, assets
with credit balances should be reported in liability
items and liabilities with debit balances should be
reported in asset items, as appropriate, and in accordance with these instructions.
For items where negative entries are allowed, paper
filers should enclose negative amounts in parentheses
or report with a minus (-) sign. Electronic filers should
report negative amounts with a minus (-) sign.

Additional Information
The Federal Reserve System reserves the right to
require additional information from foreign subsidiaries if the FR 2314/FR 2314S report is not sufficient to
appraise the financial soundness of the subsidiary or to
determine its compliance with applicable laws and
regulations.

(1) The investor or an affiliate is a general partner
of the organization; or
(2) The investor and its affiliates directly or indirectly own or control more than 50 percent of
the equity of the organization.
All references in the line item instructions to the
“reporting banking organization” refer to the subsidiary’s parent banking organization.
For purposes of this report, all references to “bank(s)”
are inclusive of “savings association(s)” unless otherwise noted.

7. As defined by Section 211.2(w) of Regulation K of the Board of
Governors of the Federal Reserve System.

GEN-8

March 2018

FR 2314 and FR 2314S

General Instructions

General Criteria Chart for FR 2314/FR 2314S
See General Instructions for more detail.
Quarterly Filers
Detailed Report (FR 2314)

Annual Filers
Detailed Report (FR 2314)

Annual Filers
Abbreviated Report (FR 2314S)

Exemptions
No report required

Parent holding company has total
consolidated assets of $500 million
or more as of June 30 of the preceding year or files the FR Y-9C to
meet supervisory needs or parent
state member bank or Edge or
agreement corporation has total
assets equal to or greater than
$500 million, and any one of the
following:
(1) Subsidiary’s total assets are
greater than or equal to $1 billion
(2) Subsidiary’s offbalance-sheet
activities are greater than or
equal to $5 billion
(3) Subsidiary’s equity capital is
greater than or equal to 5% of
toptier consolidated equity
capital or
(4) Subsidiary’s operating revenue
is greater than or equal to 5% of
toptier consolidated operating
revenue

Subsidiary does not meet any of
the quarterly filing criteria and its
total assets are greater than or
equal to $500 million but less than
$1 billion

Subsidiary does not meet any of
the FR 2314 filing criteria and its
total assets are greater than or
equal to $250 million but less than
$500 million

Subsidiary does not meet any of the
FR2314S filing criteria and
(1) Subsidiary’s total assets are less
than $250 million or
(2) Specific exemption (see exemption list in General Instructions)

FR 2314 and FR 2314S

GEN-9

March 2018

LINE ITEM INSTRUCTIONS FOR THE

Income Statement
Schedule IS

General Instructions

another lender, report only the subsidiary’s proportional share of such fees.

Report all income and expense of the subsidiary for the
calendar year-to-date. Include adjustments of accruals
and other accounting estimates made shortly after the
end of a reporting period that relate to the income and
expense of the reporting period. A subsidiary that
began operating during the reporting period should
report all income earned and expense incurred since it
commenced operations and all pre-opening income
earned and expenses incurred from inception until
that date.

Include dividend income on equity securities with
readily determinable fair values not held for trading
that are reportable in Schedule BS, item 2(c).

When the fair value option has been applied to an
acquired loan or debt security under ASC 326-20,
“Financial Instruments-Credit Losses Measured at
Amortized Cost”, interest income on
the loan or debt security should be measured in accordance with Subtopic 310-10, “Receivables Overall”,
regardless of whether or not management has determined the asset to be purchased credit deteriorated (PCD). ”
Line Item 1 Interest income.
Report in the appropriate subitem all interest, fees and
similar income received by the subsidiary from nonrelated organizations (associated with assets reported in
Lines 1 through 7 on Schedule BS) in item 1(a) and on
balances due from related organizations in item 1(b).
Include income resulting from interest earned on loans
and leases (including related fees); income on balances
due from depository institutions; interest and dividends on securities; interest from assets held in trading
accounts; interest on federal funds sold and securities
purchased under agreements to resell; and any other
interest income received by the subsidiary. When yield
related fees are collected in connection with a loan syndication or participation and passed through to
FR 2314 and FR 2314S

The purchase premiums and discounts on loans held
for investment thatmanagement has determined to be
PCD and are measured at amortized cost, shouldbe
adjusted to exclude the acquisition date allowance for
credit loss from the amortizedcost basis of the loans.
Deduct interest related to customers on loans paid
before maturity from gross interest earned on loans; do
not report as an expense. Exclude from this item:

(1) fees that are not yield related such as fees for servicing real estate mortgage or other loans which
are not assets of the subsidiary (report in
item 5(a)(6));
(2) net gains or losses from the sale of assets (report
in item 5 or 7, as appropriate);
(3) charges to merchants for handling credit card or
charge sales when the subsidiary does not carry
the related loan accounts on their books (report
in item 5 below); and
(4) reimbursements for out-of-pocket expenditures
made by the subsidiary for the account of its
customers. If the subsidiary’s expense accounts
were charged with the amount of such expenditures, the reimbursements should be credited to
the same expense accounts.
Line Item 1(a) Interest and fee income from
nonrelated organizations.
Report all interest, fees, and similar income from nonrelated organizations.
IS-1

March 2024

Schedule IS

Line Item 1(b) Interest and fee income from related
organizations.
Report all interest, fees, and similar income from
related organizations. Exclude any noninterest income
and income from undistributed earnings of related
organizations (report in item 5(b)). Include dividends
declared or paid by subsidiaries.
Line Item 1(c) Total interest income.
Report the sum of items 1(a) and 1(b).

visions for credit losses represents the amount appropriate to absorb estimated credit losses over the life of
the financial assets reported at amortized cost within
the scope of the standard. Exclude the initial allowances established on the purchase of creditdeteriorated (PCD) financial assets, which are recorded
at acquisition as an adjustment to the amortized cost
basis of the asset. The amount reported in this item
must equal Schedule IS-B, item 4, columns A through
C plus Schedule IS-B, Memorandum item 1. Report
negative amounts with a minus (-) sign.

Line Item 2 Interest expense.
Report in the appropriate subitem the total amount of
interest expense of the subsidiary pertaining to nonrelated organizations in item 2(a) and pertaining to
related organizations in item 2(b). Include expenses on
deposits, on federal funds purchased and securities
sold under agreements to repurchase, on shortand
long-term borrowings, on subordinated notes and
debentures, on mandatory securities, on mortgage
indebtedness and obligations under capitalized leases,
and all other interest expense.

Exclude provision for credit losses on off-balance-sheet
credit exposures and provision for allocated transfer
risk, both of which should be reported in item 7,
‘‘Noninterest expense.’’ The amount reported here
may differ from the bad debt expense deduction taken
for federal income tax purposes.

Line Item 2(a) Interest expense pertaining to
nonrelated organizations.
Report all interest expense pertaining to nonrelated
organizations.

Line Item 5 Noninterest income.
Report in the appropriate subitem all other income not
properly reported in item 1(c), ‘‘Total interest income’’
that is derived from activities in which the subsidiary is
engaged. Report noninterest income from nonrelated
organizations in item 5(a) and from related organizations in item 5(b). Also, a subsidiary may include as
other noninterest income in item 5(a)(7) or 5(b) below
net gains (losses) from the sale of loans and certain
other assets as long as the subsidiary reports such
transactions on a consistent basis.

Line Item 2(b) Interest expense pertaining to related
organizations.
Report all interest expense pertaining to related
organizations.
Line Item 2(c) Total interest expense.
Report the sum of items 2(a) and 2(b).
Line Item 3 Net interest income.
Report the difference between item 1(c), ‘‘Total
interest income,’’ and item 2(c), ‘‘Total interest
expense.’’ If this amount is negative, paper filers
should enclose it in parentheses or report with a minus
(-) sign. Electronic filers should report negative
amounts with a
minus (-) sign.
Line Item 4 Provision for credit losses.
Report the amount expensed as the provisions for
credit losses, during the calendar year-to-date. The proIS-2

March 2024

If the amount reported in this item is negative, paper
filers should enclose it in parentheses or report with a
minus (-) sign. Electronic filers should report negative
amounts with a minus (-) sign.

Line Item 5(a) From nonrelated organizations.
Report all income earned from nonrelated organizations in the appropriate item.
Line Item 5(a)(1) Income from fiduciary activities.
Report gross income from services rendered by the
trust department of the subsidiary or the subsidiary
acting in any fiduciary capacity. Include commissions
and fees on the sale of annuities by these entities that
are executed in a fiduciary capacity. Report ‘‘N/A’’ if
the subsidiary has no trust departments or renders no
services in any fiduciary capacity.
FR 2314 and FR 2314S

Schedule IS

Line Item 5(a)(2) Service charges on deposit accounts.
Report the amounts charged depositors:

(1) Who maintain accounts with the subsidiary or
who fail to maintain specified minimum deposit
balances;
(2) Based on the number of checks drawn on and
deposits made in deposit accounts;
(3) For checks drawn on ‘‘no minimum-balance’’
deposit accounts;
(4) For withdrawals from nontransaction deposit
accounts;
(5) For accounts which have remained inactive for
extended periods of time or which have become
dormant;
(6) For deposits to or withdrawals from deposit
accounts through the use of automated teller
machines or remote service units;
(7) For the processing of checks drawn against
insufficient funds. Exclude subsequent charges
levied against overdrawn accounts based on the
length of time the account has been overdrawn
and report the interest as interest and fee income
in line 1 above;
(8) For issuing stop payment orders;
(9) For certifying checks; and
(10) For accumulation or disbursement of funds
deposited to IRA or Keogh Plan accounts when
not handled by the trust department of the subsidiary. If the account is handled by the subsidiary’s trust department, include the charges in
line 5(a)(1) above.
Line Item 5(a)(3) Trading revenue.
Report the net gain or loss from trading cash instruments and derivative contracts (including commodity
contracts) that has been recognized during the calendar year-todate. If this amount is negative, paper filers
should enclose it in parentheses or report with a minus
(-) sign. Electronic filers should report negative
amounts with a minus (-) sign.

FR 2314 and FR 2314S

Include as trading revenue:

(1) Revaluation adjustments to the carrying value of
assets and liabilities reportable in Schedule BS,
item 4, ‘‘Trading assets,’’ and Schedule BS,
item 11, ‘‘Trading liabilities,’’ resulting from the
periodic marking to market of such
instruments;
(2) Revaluation of adjustments from the periodic
marking to market of interest rate, foreign
exchange, equity derivative, commodity and
other contracts held for trading; and
(3) Realized gains and losses and other income and
expenses resulting from the sale and purchase of
all assets and liabilities held in the trading
account.
Exclude trading revenue from transactions with related
organizations. Report such revenue in item 5(b).
Line Item 5(a)(4) Investment banking, advisory,
brokerage, and underwriting fees and commissions.
Report fees and commissions from investment advisory and management services, merger and acquisition
services, and other related consulting fees. Include fees
and commissions from securities brokerage activities,
from the sale and servicing of mutual funds, and from
the purchase and sale of securities and money market
instruments where the subsidiary is acting as agent for
other subsidiaries or customers (if these fees and commissions are not included in item 5(a)(1), ‘‘Income
from fiduciary activities,’’ or item 5(a)(3), ‘‘Trading
revenue’’).
Also include the subsidiary’s proportionate share of
the income or loss before discontinued operations and
other adjustments from its investments in corporate
joint ventures, unincorporated joint ventures, general
partnerships, and limited partnerships over which the
subsidiary exercises significant influence that are principally engaged in investment banking, advisory, brokerage, or securities underwriting activities.
If the amount reported in this item is negative, paper
filers should enclose it in parentheses or report with a
minus (-) sign. Electronic filers should report negative
amounts with a minus (-) sign.
IS-3

March 2010

Schedule IS

Line Item 5(a)(5) Venture capital revenue.
Report as venture capital revenue market value adjustments, interest, dividends, gains, and losses (including
impairment losses) on venture capital investments
(loans and securities). Include any fee income from
venture capital activities that is not reported in one of
the preceding income items. Also include the subsidiary’s proportionate share of the income or loss before
discontinued operations and other adjustments from
its investments in corporate joint ventures, unincorporated joint ventures, general partnerships, and limited
partnerships over which the subsidiary exercises significant influence that are principally engaged in venture capital activities.
In general, venture capital activities involve the providing of funds, whether in the form of loans or equity,
and technical and management assistance, when
needed and requested, to start-up or high-risk companies specializing in new technologies, ideas, products,
or processes. The primary objective of these investments is capital growth.
If the amount reported in this item is negative, paper
filers should enclose it in parentheses or report with a
minus (-) sign. Electronic filers should report negative
amounts with a minus (-) sign.
Line Item 5(a)(6) Net servicing fees.
Report income from servicing real estate mortgages,
credit cards, and other financial assets held by others.
Report any premiums received in lieu of regular servicing fees on such loans only as earned over the life of the
loans. Subsidiaries should report servicing income net
of the related servicing assets’ amortization expense.
Include impairments recognized on servicing assets.
For further information on servicing, see the FR Y-9C
Glossary entry for ‘‘servicing assets and liabilities.’’
If the amount reported in this item is negative, paper
filers should enclose it in parentheses or report with a
minus (-) sign. Electronic filers should report negative
amounts with a minus (-) sign.
Line Item 5(a)(7) Net securitization income.
Report net gains (losses) on assets sold in securitization
transactions, i.e., net of transaction costs. Include fees
(other than servicing fees) earned from the subsidiary’s
securitization transactions and unrealized losses (and
recoveries of unrealized losses) on loans and leases
IS-4

March 2018

held for sale in securitization transactions. Exclude
income from servicing securitized assets (report in
item 5(a)(6), above) and from seller’s interests and
residual interests retained by the subsidiary (report in
the appropriate subitem of item 1, ‘‘Interest income’’).
If the amount reported in this item is negative, paper
filers should enclose it in parentheses or report with a
minus (-) sign. Electronic filers should report negative
amounts with a minus (-) sign.
Line Item 5(a)(8) Insurance commissions and fees.
Report income from insurance activities (includes premiums and supplemental contracts); service charges,
commissions and fees from the sale of insurance; commissions on reinsurance; and other insurance related
income. Also include the subsidiary’s proportionate
share of the income or loss before discontinued operations and other adjustments from its investments in
corporate joint ventures, unincorporated joint ventures, general partnerships, and limited partnerships
over which the subsidiary exercises significant influence that are principally engaged in insurance underwriting, reinsurance, or insurance sales activities.
Exclude commissions and fees on the sale of annuities
and report in item 5(a)(9).
If the amount reported in this item is negative, paper
filers should enclose it in parentheses or report with a
minus (-) sign. Electronic filers should report negative
amounts with a minus (-) sign.
Line Item 5(a)(9) Fees and commissions from
annuity sales.
Report fees and commissions from sales of annuities
(fixed, variable, and other) by the nonbank subsidiary
and fees earned from customer referrals for annuities
to insurance companies and insurance agencies external to the nonbank subsidiary. Also include management fees earned from annuities. However, exclude fees
and commissions from sales of annuities by the trust
department of the subsidiary or the subsidiary acting
in any fiduciary capacity reported in item 5(a)(1),
“Income from fiduciary activities.”
Also include the subsidiary’s proportionate share of
the income or loss before discontinued operations and
other adjustments from its investments in corporate
joint ventures, unincorporated joint ventures, general
partnerships, and limited partnerships over which the
FR 2314 and FR 2314S

Schedule IS

subsidiary exercises significant influence that are principally engaged in annuity product underwriting or
sales activities.
If the amount reported in this item is negative, paper
filers should enclose it in parentheses or report with a
minus (-) sign. Electronic filers should report negative
amounts with a minus (-) sign.
Line Item 5(a)(10) Other noninterest income.
Report all other noninterest income derived from
nonrelated organizations that is not reported above. If
this amount is negative, paper filers should enclose it in
parentheses or report with a minus (-) sign. Electronic
filers should report negative amounts with a
minus (-) sign.
Line Item 5(b) From related organizations.
Report all noninterest income derived from related
organizations. Include in this item trading revenue
from transactions with related organizations. Exclude
the parent’s equity in undistributed income of subsidiaries from this item and report in item 11.
If the amount reported in this item is negative, paper
filers should enclose it in parentheses or report with a
minus (-) sign. Electronic filers should report negative
amounts with a minus (-) sign.
Line Item 5(c) Total noninterest income.
Report the sum of items 5(a)(1) through 5(a)(10) and
5(b). If this amount is negative, paper filers should
enclose it in parentheses or report with a minus (-) sign.
Electronic filers should report negative amounts with a
minus (-) sign.
Line Item 6 Realized gains (losses) on securities not
held in trading accounts.
Report the net gain or loss realized during the calendar
year-to-date from the sale, exchange, redemption, or
retirement of all securities not held in trading accounts.
The realized gain or loss on the security is the difference between the sales price (excluding interest at the
coupon rate accrued since the last interest payment
date, if any) and the amortized cost. Also include in
this item the write-downs of the cost basis of individual securities for other-than-temporary impairments. If this amount is negative, paper filers should
enclose it in parentheses or report with a minus (-) sign.
FR 2314 and FR 2314S

Electronic filers should report negative amounts with a
minus (-) sign. Do not adjust for applicable income
taxes (income taxes applicable to gains (losses) on securities are to be included in the applicable income taxes
reported in item 9 below).
Include realized gains (losses) only on available-for-sale
debt securities in item 6. Report realized and unrealized
gains (losses) during the year-to-date reporting period
on equity securities with readily determinable fair values not held for trading in Schedule IS, item 8.b.
Entities should adjust the amortized cost for recoveries
of any prior charge-offs when calculating the realized
gain or loss on a security, such that the recovery of a
previously charged off amount should be recorded
before recognizing the gain. Include in this item any
write-off recorded when the institution intends to sell
the debt security, or it is more likely than not the institution will be required to sell the security before recovery of its amortized cost basis.
Exclude:

(1) the change in net unrealized holding gains
(losses) on available-for-sale debt during the calendar year (report in Schedule IS-A, item 5),
(2) realized gains (losses) on trading securities
(report in Schedule IS, item 5(a)(3)), ‘‘Trading
revenue,’’
(3) net gains (losses) from the sale of detached securities coupons and the sale of ex-coupon securities, and report in item 7, ‘‘Noninterest
expense,’’ or item 5(a)(10), ‘‘Other noninterest
income,’’ as appropriate,
(4) The change in net unrealized holding gains
(losses) on available-for-sale debt securities during the calendar year to date (report in Schedule IS-A, item 5, “Other comprehensive
income”).
(5) Exclude the allowance recorded through the
allowance for credit losses on available-for-sale
securities (report in Schedule IS, item 4, “Provision for credit losses” which includes the provisions for credit losses for all financial assets that
fall within the scope of the standard).
IS-5

March 2024

Schedule IS

Line Item 7 Noninterest expense.
Report in the appropriate subitem all other expense not
properly reported in item 2(c), ‘‘Total interest expense’’
that is incurred from activities in which the subsidiary
is engaged. Report noninterest expense pertaining to
nonrelated organizations in item 7(a) and pertaining to
the organization in item 7(b). Also, a subsidiary may
include as other noninterest expense in item 7(a) or
7(b) below net losses (gains) from the sale of loans and
certain other assets as long as the subsidiary reports
such transactions on a consistent basis.
Entities should exclude charge-offs of the cost basis of
individual held-tomaturity and available-for-sale securities (report credit losses in item 4, “Provision for
credit losses,” and report any write-off when the subsidiary intends to sell the debt security, or when it is
more likely than not the subsidiary will be required to
sell the security before recovery of its amortized cost
basis in Schedule IS, item 6.a, ″Realized gains (losses)
on securities not held in trading accounts.″
Line Item 7(a) Pertaining to nonrelated organizations.
Report the amount of noninterest expense of the subsidiary pertaining to activities with nonrelated organizations (i.e., third-party transactions). If this amount is
negative, paper filers should enclose it in parentheses
or report with a minus (-) sign. Electronic filers should
report negative amounts with a minus (-) sign.
Report salaries and benefits of all officers and employees of the subsidiary including guards and contracted
guards, temporary office help, dining room and cafeteria employees, and building department officers and
employees (including maintenance personnel). Include
gross salaries, wages, and other compensation; contributions to retirement plan, pension fund and profitsharing plan; employee stock ownership plan,
employee stock purchase plan, and employee savings
plan; social security and other taxes paid by the subsidiary; health and life insurance premiums; relocation
and tuition programs; and the cost of all other fringe
benefits for officers and employees.
Report all noninterest expenses related to the use of
premises, equipment, furniture, and fixtures, net of
rental income, that are reportable in Schedule BS,

IS-6

March 2024

item 5, ‘‘Premises and fixed assets.’’ If this net amount
is a credit balance, enclose it in parentheses.
Deduct rental income from gross premises and fixed
asset expense. Rental income includes all rentals
charged for the use of buildings not incident to their
use by the reporting subsidiary, including rentals by
regular tenants of the subsidiary, income received from
short-term rentals of other facilities of the subsidiary,
and income from sub-leases. Also deduct income from
assets that indirectly represent premises, equipment,
furniture, or fixtures reportable in Schedule BS, item 5,
‘‘Premises and fixed assets.’’ Include normal and recurring depreciation and amortization charges against
assets; all operating lease payments made by the subsidiary on premises and equipment; cost of ordinary
repairs to premises (including leasehold improvements), equipment, furniture, and fixtures; cost of service or maintenance contracts for equipment, furniture, and fixtures; insurance expense related to the use
of premises, equipment, furniture, and fixtures; all
property tax and other tax expense related to premises
(including leasehold improvements), equipment, furniture, and fixtures; cost of heat, electricity, water, and
other utilities connected with the use of premises and
fixed assets; cost of janitorial supplies and outside janitorial services; and services and fuel, maintenance, and
other expenses related to the use of the subsidiaryowned automobiles, airplanes, and other vehicles for
the subsidiary’s business.
Include fees paid to directors and advisory directors
for attendance at board of directors or committee
meetings; premiums on fidelity insurance, directors’
and officers’ liability insurance, and life insurance policies for which the subsidiary is the beneficiary; federal
deposit insurance premium; Comptroller of the Currency assessment expense; legal fees and other direct
costs incurred in connection with foreclosures; and
advertising, promotional, public relations, and business development expenses; data processing cost;
goodwill impairment losses; amortization expenses of
and impairment losses for other intangible assets; and
all other noninterest expenses pertaining to nonrelated
organizations.
Also report any provision for credit losses related to
off-balance-sheet credit exposures, based upon man-

FR 2314 and FR 2314S

Schedule IS

agement’s evaluation of the subsidiary’s current offbalancesheet credit exposures.
Line item 7(b) Pertaining to related organizations.
Report all expenses involving related organizations
that cannot properly be reported in Schedule IS,
item 2(b), ‘‘Interest expense pertaining to related organizations.’’ If this amount is negative, paper filers
should enclose it in parentheses or report with a minus
(-) sign. Electronic filers should report negative
amounts with a minus (-) sign.
Line Item 7(c) Total noninterest expense.
Report the sum of items 7(a) and 7(b). If this amount
is negative, paper filers should enclose it in parentheses
or report with a minus (-) sign. Electronic filers should
report negative amounts with a minus (-) sign.
Line Item 8(a) Income (loss) before change in net
unrealized holding gains (losses) on equity securities not
held for trading, applicable income taxes, and
discontinued operations
Report the sum of items 3, 5(c) and 6, minus items 4
and 7(c). If this amount is negative, paper filers should
enclose it in parentheses or report with a minus (-) sign.
Electronic filers should report negative amounts with a
minus (-) sign.
Note: Entities should report the provisions for credit
losses in item 4.
NOTE: All institutions must complete item 8(b) (i.e.
not leave item 8(b) blank), because all entities are
required to have adopted FASB Accounting Standards
Update No 2016-01 (ASU 2016-01). ASU 2016-01
includes provisions governing the accounting for
investments in equity securities and eliminates the concept of available-for-sale equity securities. ASU
2016-01 requires holdings of equity securities (except
those accounted for under the equity method or that
result in consolidation), including other ownership
interests (such as interests in partnerships, unincorporated joint ventures, and limited liability companies),
to be measured at fair value with changes in the fair
value recognized through net income. However, an
institution may choose to measure equity securities
and other equity investments that do not have readily
determinable fair values at cost minus impairment, if
any, plus or minus changes resulting from observable
FR 2314 and FR 2314S

price changes in orderly transactions for the identical
or a similar investment of the same issuer. See the
FR Y-9C Glossary entry for ″Securities Activities″ for
further information on accounting for investments in
equity securities.
Line Item 8(b) Change in net unrealized holding gains
(losses) on equity securities not held for trading.
Report change in net unrealized holding gains (losses)
during the year-to-date reporting period on equity
securities with readily determinable fair values not held
for trading. Include unrealized holding gains (losses)
during the year-to-date reporting period on equity
securities and other equity investments without readily
determinable
fair values not held for trading that are measured at fair
value through earnings. Also include impairment, if
any, plus or minus changes resulting from observable
price changes during the year-to-date reporting period
on equity securities and other equity investments without readily determinable fair values not held for trading for which this measurement election is made).
If an institution sells an equity security or other equity
investment, but had not yet recorded the change in
value to the point of sale since the last value change
was recorded, include the change in value of the equity
security or other equity investment to the point of sale
in this item.
Line Item 8(c) Income (loss) before applicable income
taxes and discontinued operations.
Report the institution’s pretax income from continuing
operations as the sum of Schedule RI, item 8(a),
″Income (loss) before unrealized holding gains (losses)
on equity securities not held for trading, applicable
income taxes, and discontinued operations,″ and
Schedule RI, item 8(b), ″Unrealized holding gains
(losses) on equity securities not held for trading.″ If the
amount is negative, report it with a minus (-) sign.
Line Item 9 Applicable income taxes (benefits)
(estimated).
Report the total estimated federal, state and local, and
foreign income tax expense applicable to item 8(c),
‘‘Income (loss) before applicable income taxes and
discontinued operations,’’ including the tax effects of
gains (losses) on securities not held in trading accounts
IS-7

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Schedule IS

(i.e., available-for-sale securities and held-to-maturity
securities). Include both the current and deferred portions of these income taxes. If this amount is negative
(i.e., the amount is a tax benefit rather than a tax
expense), paper filers should enclose the amount in
parentheses or report with a minus (-) sign. Electronic
filers should report negative amounts with a minus
(-) sign.
Include as applicable income taxes all taxes based on a
net amount of taxable revenue less deductible
expenses. Exclude the estimated income taxes applicable to foreign currency translation adjustments
included in Schedule IS-A, item 5. Exclude from applicable income taxes all taxes based on gross revenues or
gross receipts.
Also include the tax benefit of an operating loss carryforward or carryback for which the source of the
income or loss in the current year is reported in IS
item 8 “Income(loss) before applicable income taxes
and discontinued operations.”
Line Item 10 Discontinued operations, net of
applicable income taxes.
Report the results of discontinued operations, if any,
net of applicable income taxes, as determined in accordance with the provisions of ASC Subtopic 205-20,
Presentation of Financial Statements – Discontinued
Operations (formerly FASB Statement No. 144,
“Accounting for the Impairment of LongLived
Assets”). If the amount reported in this item is a net
loss, report it with a minus (-) sign.
Line Item 11 Equity in undistributed income (loss) of
subsidiary(s).
Report the amount of the parent subsidiary’s proportionate interest in the subsidiary’s(s’) net income (loss)
less any dividends declared by the subsidiary(s) for the
calendar year-to-date. Report dividends in item 1(b).
If the amount reported in this item is negative, paper
filers should enclose it in parentheses or report with a
minus (-) sign. Electronic filers should report negative
amounts with a minus (-) sign.
Line Item 12 Net income (loss).
Report the sum of items 8, 10, and 11 minus item 9. If
this amount is negative, paper filers should enclose it in
parentheses or report with a minus (-) sign. Electronic
IS-8

March 2019

filers should report negative amounts with a minus (-)
sign. This item must equal Schedule IS-A, Changes in
Equity Capital, item 2, “Net income.”

Memoranda
Memorandum item 1 is to be completed by nonbank subsidiaries that are required to complete Schedule BS-A,
Memoranda items 1(b) and 1(c).
Line Item 1 Noncash income from negative
amortization on closed-end loans secured by 1–4 family
residential properties.
Report the amount of noncash income from negative
amortization on closed-end loans secured by 1–4 family residential properties (i.e., interest income accrued
and uncollected that has been added to principal)
included in interest and fee income on loans from nonrelated organizations (Schedule IS, item 1(a)).
Negative amortization refers to a method in which a
loan is structured so that the borrower’s minimum
monthly (or other periodic) payment is contractually
permitted to be less than the full amount of interest
owed to the lender, with the unpaid interest added to
the loan’s principal balance. The contractual terms of
the loan provide that if the borrower allows the principal balance to rise to a pre-specified amount or maximum cap, the loan payments are then recast to a fully
amortizing schedule. Negative amortization features
may be applied to either adjustable rate mortgages or
fixed rate mortgages, the latter commonly referred to
as graduated payment mortgages (GPMs).
Memorandum item 2 is to be completed by subsidiaries
that have elected to account for financial instruments or
servicing assets and liabilities at fair value under a fair
value option.
Memorandum item 2 is to be completed by subsidiaries that have adopted ASC Topic 820, Fair Value Measurements and Disclosures (formerly FASB Statement
No. 157, Fair Value Measurements), and have elected to
report certain assets and liabilities at fair value with
changes in fair value recognized in earnings in accordance with U.S. generally accepted accounting principles (GAAP) (i.e., ASC Subtopic 825-10, Financial
Instruments – Overall (formerly FASB Statement
No. 159, The Fair Value Option for Financial Assets and
Financial Liabilities); ASC Subtopic 815-15, DerivaFR 2314 and FR 2314S

Schedule IS

tives and Hedging – Embedded Derivatives (formerly
FASB Statement No. 155, Accounting for Certain
Hybrid Financial Instruments); and ASC Subtopic 86050, Transfers and Servicing – Servicing Assets and
Liabilities (formerly FASB Statement No. 156,
Accounting for Servicing of Financial Assets)). This
election is generally referred to as the fair value option.
If the subsidiary has elected to apply the fair value
option to interest-bearing financial assets and liabilities, it should report the interest income on these financial assets (except any that are in nonaccrual status)
and the interest expense on these financial liabilities for
the year-to-date in the appropriate interest income and
interest expense items on Schedule IS, not as part of
the reported change in fair value of these assets and
liabilities for the year-todate. The subsidiary should
measure the interest income or interest expense on a
financial asset or liability to which the fair value option
has been applied using either the contractual interest
rate on the asset or liability or the effective yield
method based on the amount at which the asset or
liability was first recognized on the balance sheet.
Although the use of the contractual interest rate is an
acceptable method under GAAP, when a financial
asset or liability has a significant premium or discount
upon initial recognition, the measurement of interest
income or interest expense under the effective yield
method more accurately portrays the economic substance of the transaction. In addition, in some cases,
GAAP requires a particular method of interest income
recognition when the fair value option is elected. For
example, when the fair value option has been applied
to a beneficial interest in securitized financial assets
within the scope of ASC Subtopic 325-40,
Investments-Other – Beneficial Interests in Securitized
Financial Assets (formerly Emerging Issues Task Force
Issue No. 99-20, Recognition of Interest Income and
Impairment on Purchased and Retained Beneficial Interests in Securitized Financial Assets), interest income

FR 2314 and FR 2314S

should be measured in accordance with the consensus
in this Subtopic. Similarly, when the fair value option
has been applied to a purchased impaired loan or debt
security accounted for under ASC Subtopic 310-30,
Receivables – Loans and Debt Securities Acquired
with Deteriorated Credit Quality (formerly AICPA
Statement of Position 03-3, Accounting for Certain
Loans or Debt Securities Acquired in a Transfer), interest income on the loan or debt security should be measured in accordance with this Statement of Position
when accrual of income is appropriate.
Revaluation adjustments, excluding amounts reported
as interest income and interest expense, to the carrying
value of all assets and liabilities reported in Schedule BS at fair value under a fair value option (excluding
servicing assets and liabilities reported in Schedule BS,
item 7, “All other assets,” and Schedule BS, item 14,
“Other liabilities,” respectively, and trading assets and
trading liabilities reported in Schedule BS, item 4,
“Trading assets,” and Schedule BS, item 11, “Trading
liabilities,” respectively) resulting from the periodic
marking of such assets and liabilities to fair value
should be reported as “Other noninterest income” in
Schedule IS, item 5(a)(10).
Line Item 2 Net change in fair values of financial
instruments accounted for under a fair value option.
Report the net change in fair values of all financial
instruments that the subsidiary has elected to account
for under the fair value option that is included in
Schedule IS, items 5.a(3), “Trading revenue,” 5.a(6),
“Net servicing fees,” 5.a.(10), “Other interest income,”
and 5.b., “From related organizations.”
If the amount reported in this item is negative, paper
filers should enclose it in parentheses or report with a
minus (-) sign. Electronic filers should report negative
amounts with a minus (-) sign.

IS-9

September 2011

LINE ITEM INSTRUCTIONS FOR

Changes in Equity Capital
Schedule IS-A

General Instructions
Total equity capital includes perpetual preferred stock,
common stock, capital surplus, retained earnings,
accumulated other comprehensive income and other
equity capital components such as treasury stock and
unearned Employee Stock Ownership Plan Shares. All
amounts, other than the amount reported in item 1,
should represent net aggregate changes for the calendar year-to-date.
Paper filers should enclose all net decreases and losses
(net reductions of equity capital) in parentheses or
report with a minus (-) sign. Electronic filers should
report all net decreases and losses (net reductions of
equity capital) with a minus (-) sign.
Line Item 1 Equity capital most recently reported for
the end of the previous calendar year (i.e., after
adjustments from amended Income Statements).
Report the subsidiary’s total equity capital balance
most recently reported for the previous calendar yearend after the filing of any amended report(s). Include
the cumulative effect, net of applicable income taxes, of
those changes in any accounting principles adopted
during the calendar year-to-date reporting period that
were applied retroactively and for which prior years’
financial statements were restated. Also, include the
sum of all corrections, net of applicable income taxes,
resulting from material accounting errors that were
made in prior years and not corrected by the filing of
an amended report for the period in which the error
was made.
Line Item 2 Net income (loss).
Report the net income (loss) for the calendar year-todate as reported on the Income Statement, item 12,
“Net income (loss).”
FR 2314 and FR 2314S

Line Item 3 Sale, conversion, acquisition, or retirement
of common stock and perpetual preferred stock.
Report the changes in the subsidiary’s total equity
capital resulting from the sale, conversion, acquisition,
or retirement of the subsidiary’s capital stock.
Limited-life preferred stock is not included in equity
capital.
Report the total amount of new capital stock issued,
net of any expenses associated with the issuance of the
stock.
Report the changes in the subsidiary’s total equity
capital resulting from:
(1) Sale of the subsidiary’s perpetual preferred stock
or common stock;
(2) Exercise of stock options, including:
(a) Any income tax benefits to the subsidiary
resulting from the sale of the subsidiary’s
own stock acquired under a qualified stock
option within three years of its purchase by
the employee who had been granted the
option; and
(b) Any tax benefits to the subsidiary resulting
from the exercise (or granting) of nonqualified stock options (on the subsidiary’s stock)
based on the difference between the option
price and the fair market value of the stock
at the date of exercise (or grant);
(3) The conversion of convertible debt, limited-life
preferred stock, or perpetual preferred stock into
perpetual preferred or common stock;
(4) Redemption of perpetual preferred stock or common stock;
(5) Retirement of perpetual preferred stock or common stock including:
IS-A-1

March 2010

Schedule IS-A

(a) The net decrease in equity capital which
occurs when cash is distributed in lieu of
fractional shares in a stock dividend; and
(b) The net increase in equity capital when a
stockholder who receives a fractional share
from a stock dividend purchases the additional fraction necessary to make a whole
share; and
(6) Capital-related transactions involving the subsidiary’s Employee Stock Option Plan.
Line Item 4 LESS: Cash dividends declared.
Report all cash dividends declared during the calendar
year-to-date, including dividends on common and preferred stock. Include dividends not payable until after
the report date. Exclude dividends declared during the
previous calendar year but paid in the current period.
Cash dividends are payments of cash to stockholders
in proportion to the number of shares they own. Cash
dividends on preferred and common stock are to be
reported on the date they are declared by the subsidiary’s board of directors (the declaration date) by debiting “retained earnings” and crediting “dividends
declared not yet payable,” which is to be reported in
other liabilities. Upon payment of the dividend, “dividends declared not yet payable” is debited for the
amount of the cash dividend with an offsetting credit,
normally in an equal amount, to “dividend checks
outstanding.”
A liability for dividends payable may not be accrued in
advance of the formal declaration of a dividend by the
boards of directors. However, the subsidiary may segregate a portion of retained earnings in the form of a
capital reserve in anticipation of the declaration of a
dividend.
Line Item 5 Other comprehensive income.
Report the amount of other comprehensive income for
the calendar year-to-date. Other comprehensive

IS-A-2

December 2013

income includes changes during the calendar year-todate in: net unrealized holding gains (losses) on
available-for-sale securities, accumulated net gains
(losses) on cash flow hedges, foreign currency translation adjustments, and minimum pension liability
adjustments. Refer to the FR Y-9C instructions and
ASC Subtopic 220-10, Comprehensive Income – Overall (formerly FASB Statement No. 130, Reporting Comprehensive Income) for additional information on
reporting this item.
Line Item 6 Other adjustments to equity capital.
Report all adjustments to equity capital that are not
properly reported in items 1 through 5 above. This item
should include:

(1) changes incident to business combinations;
(2) sales of treasury stock (the resale or the disposal
on the subsidiary’s own perpetual preferred
stock or common stock, i.e., treasury stock
transactions);
(3) LESS: Purchases of treasury stock (the resale or
the disposal on the subsidiary’s own perpetual
preferred stock or common stock, i.e., treasury
stock transactions);
(4) change in offsetting debit to the liability for
Employee Stock Ownership Plan (ESOP) debt
guaranteed by the subsidiary;
(5) contributions and distributions to and from
partners or limited liability company (LLC)
shareholders when the company is a partnership
or an LLC; and
(6) capital contributions not in the form of stock.
Line Item 7 Total equity capital at end of current
period.
Report the sum of items 1, 2, 3, 5, and 6, minus item 4.
This item must equal Schedule BS, Balance Sheet
item 18(g), “Total equity capital.”

FR 2314 and FR 2314S

LINE ITEM INSTRUCTIONS FOR

Changes in Allowance for Credit
Losses
Schedule IS-B

General Instructions
This schedule has three columns for information on the
allowances for credit losses, one for each of the following asset types: 1) loans and leases held for investment
(Column A), 2) held-to-maturity debt securities (Column B), and 3) available-for-sale debt securities (Column C). Report changes in the allowances for credit
losses for loans and leases held for investment, held-tomaturity debt securities and available-for-sale debt
securities in the applicable columns.
Report all changes in the allowance account on a yearto- date basis. When the subsidiary maintains an allowance for possible credit losses on loans and leases,
report all related transactions and reconcile, beginning
with the balance reported at the end of the previous
year, to the balance of the allowance shown in Schedule BS, Balance Sheet, Item 3(b), as of the end of the
current period. The provision for possible credit losses
on loans and leases should correspond to the amount
reported in Schedule IS, item 4, ‘‘Provision for credit
losses.’’ Exclude transactions pertaining to reserves
carried in capital accounts, such as reserves for contingencies that represent a segregation of undivided profits. Also exclude any allowance for credit losses on offbalance-sheet exposures.
Line Item 1 Balance most recently reported at end of
previous calendar year.
The amount must reflect the effect of all corrections
and adjustments to the allowance for credit losses that
were made in any amended report(s) for the previous
calendar year-end.
Line Item 2 Recoveries.
Report the amount credited to the allowance for credit
losses for recoveries during the calendar year-to- date
FR 2314

on amounts previously charged against the allowance
for credit losses.
Line Item 3 Less: Charge-offs.
Report the amount charged against the allowance for
credit losses during the calendar year-to-date.
Line Item 4 Provision for credit losses.
Entities should report in the appropriate column the
amount expensed as the provision for credit losses during the calendar year-to- date. The provisions for credit
losses represents the amount appropriate to absorb
estimated credit losses over the life of the financial
assets reported at amortized cost within the scope of
the standard. The amount reported in this item must
equal Schedule IS, item 4. If the amount reported in
this item is negative, report it with a minus (-) sign.
Line Item 5 Adjustments.
Include any increase or decrease resulting from foreign
currency translation of the allowance for possible
credit losses on loans and leases into dollars.
If this amount is negative, paper filers should enclose it
in parentheses or report with a minus (-) sign. Electronic filers should report negative amounts with a
minus (-) sign.
Report in the appropriate columns for this item as a
negative the balance of the allowances for credit losses
on financial assets that are not determined by management to be PCD most recently reported for the end of
the previous calendar year. For those assets determined
by management to be PCD, the allowances for credit
losses as of the acquisition date should then be
reported as a positive number in the appropriate columns for this line item.
IS-B-1

March 2024

Schedule IS-B

Line Item 6 Balance at end of current period.
Enter the total of items 1, 2, 4, and 5, minus item 3.
This item must equal Schedule BS, item 3(b), “Allowance for Credit Losses on Loans and Leases.”
Memoranda
Line Item M1 Provisions for credit losses on other
financial assets measured at amortized cost (not
included in item 4).
Report in this line item provisions related to allowances
for credit losses on financial assets measured at amortized cost, included in Schedule IS, item 4, other than
loans, leases, held-to-maturity debt securities and
available-for-sale debt securities. Provisions for credit
losses (or reversals of provisions) on these other financial assets measured at amortized cost represent the
amounts necessary to adjust the related allowances for

IS-B-2

March 2024

credit losses at the quarter-end report date for management’s current estimate of expected credit losses on
these assets.
Exclude provisions for credit losses on off-balance
sheet credit exposures, which are reported in Schedule IS item 7, “noninterest expense.”
Line Item M2 Allowances for credit losses on other
assets measured at amortized cost (not included in
memorandum item 1 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.

FR 2314

LINE ITEM INSTRUCTIONS FOR

Balance Sheet and Off-Balance-Sheet
Items
Schedule BS

Assets
Items 1 through 8 exclude balances due from related
institutions (see definition in the General Instructions).
Report balances due from related institutions in item 9.
Line Item 1 Cash and balances due from depository
institutions.
Report the total of non-interest bearing and interestbearing balances due from depository institutions, currency and coin, cash items in process of collection and
unposted debits.
Depository institutions consist of commercial banks in
the United States, credit unions, mutual and stock savings banks, savings or building and loan associations,
cooperative banks, industrial banks that accept deposits, U.S. branches and agencies of foreign banks, and
banking organizations in foreign countries.
Balances due from depository institutions include:

(1) Noninterest-bearing funds on deposit at depository institutions for which the reporting company has already received credit; and
(2) Interest-bearing balances due from depository
institutions, whether in the form of demand,
savings or time balances, including certificates of
deposit, but excluding certificates of deposits
held for trading.
Exclude balances with closed or liquidating banks or
other depository institutions and all loans (report in
item 3 below). Also exclude balances due from subsidiary banks (and their branches) of the reporting holding company (report in item 9 below).
Cash and due from balances include:
(1) Cash items in the process of collection that
include the following:
FR 2314

(a) Checks or drafts in the process of collection
that are drawn on banking institutions, and
payable immediately upon presentation,
including checks or drafts already forwarded
for collection and checks on hand which will
be presented for payment or forwarded for
collection on the following business day in
the country where the reporting office that is
clearing or collecting the check or draft is
located;
(b) Government checks that are drawn on the
Treasurer of the United States or any other
government agency that are payable immediately upon presentation and that are in process of collection;
(c) Checks or warrants that are drawn on a foreign government that are payable immediately upon presentation and that are in the
process of collection; and
(d) Amounts credited to deposit accounts in
connection with automatic payment
arrangements where such credits are made
one business day prior to the payment date
to ensure the availability of funds on the
payment date; and
(2) Unposted debits are cash items in the reporting
organization’s possession drawn on itself that are
chargeable, but have not yet been charged to the
general ledger deposit control account at the close
of business on the report date.
Exclude from this item the following:

(1) Credit or debit card sales slips in process of collection (report as noncash items in item 7, ‘‘All
other assets’’). However, if the reporting organization has been notified that they have been
BS-1

March 2013

Schedule BS

given credit, the amount of such sales slips
should be reported in this item;

(2) Cash items not conforming to the definition of
in process of collection, whether or not
cleared; and
(3) Commodity or bill-of-lading drafts (including
arrival drafts) not yet payable (because the merchandise against which the draft was drawn has
not yet arrived), whether or not deposit credit
has been given. (If deposit credit has been given,
report such drafts as loans in the appropriate
line item; if the drafts were received on a collection basis, exclude them entirely until the funds
have actually been collected.)
Line Item 2 Securities.
Report the amount of U.S. Treasury securities, U.S.
government agency and corporation obligations, securities issued by states and political subdivisions in the
U.S., and all other debt and equity securities with readily determinable fair values. Also, include as debt securities all holdings of commercial paper. Report held-tomaturity securities in item 2(a) and available-for-sale
debt securities in item 2(b), and equity securities in
2(c). Exclude equity securities that do not have readily
determinable fair values and report these equity securities in item 7, ‘‘All other assets.’’
ASC Topic 320, Investments-Debt Securities requires
depository institutions to divide their debt securities
holdings among three categories: held-to-maturity,
available-for-sale, and trading securities. This accounting standard provides a different accounting treatment
for each category. Under ASC Topic 320, only those
debt securities for which an institution has the positive
intent and ability to hold to maturity may be included
in the held-to-maturity account, and the institution
would continue to account for these debt securities at
amortized cost.
Securities in the available-for-sale category under ASC
Topic 320 are those securities for which an institution
does not have the positive intent and ability to hold to
maturity, yet does not intend to trade as part of its
trading account. Report available-for-sale securities at
fair value, and report unrealized holding gains (losses)
on these securities, net of the applicable tax effect, as a
separate component of equity capital in Schedule BS,
BS-2

March 2024

item 18(d), “Accumulated other comprehensive
income.”
Trading securities are debt and equity securities that an
institution buys and holds principally for the purpose
of selling in the near term. Report trading securities at
fair value (generally, market value), and report unrealized changes in value (appreciation and depreciation)
directly in the income statement as a part of earnings.
Exclude all trading securities from this item and report
trading securities in Schedule BS, item 4, “Trading
assets.”
Line Item 2(a) Held-to-maturity securities.
Report the amortized cost of held-to-maturity securities net of any applicable allowance for credit losses.
Line Item 2(b) Available-for-sale debt securities.
Report the fair value of available-for-sale debt
securities.
Line Item 2(c) Fair value of equity securities with
readily determinable fair values not held for trading.
Report the fair value of all investments in mutual funds
and other equity securities (as defined in ASC Topic
321, Investments-Equity Securities) with readily determinable fair values that are not held for trading. Such
securities include, but are not limited to, money market
mutual funds, mutual funds that invest solely in U.S.
Government securities, common stock, and perpetual
preferred stock. Perpetual preferred stock does not
have a stated maturity date and cannot be redeemed at
the option of the investor, although it may be redeemable at the option of the issuer.
According to ASC Topic 321, the fair value of an
equity security is readily determinable if sales prices or
bid-and-asked quotations are currently available on a
securities exchange registered with the U.S. Securities
and Exchange Commission (SEC) or in the over-thecounter market, provided that those prices or quotations for the over-the-counter market are publicly
reported by the National Association of Securities
Dealers Automated Quotations systems or by OTC
Markets Group Inc. (“Restricted stock” meets that
definition if the restriction terminates within one year.)
The fair value of an equity security traded only in a
foreign market is readily determinable if that foreign
market is of a breadth and scope comparable to one of
FR 2314

Schedule BS

the U.S. markets referred to above. The fair value of an
investment in a mutual fund (or in a structure similar
to a mutual fund, i.e., a limited partnership or a venture capital entity) is readily determinable if the fair
value per share (unit) is determined and published and
is the basis for current transactions.
Investments in mutual funds and other equity securities with readily determinable fair values may have
been purchased by the reporting institution or
acquired for debts previously contracted.
Include in this item common stock and perpetual preferred stock of the Federal National Mortgage Association (Fannie Mae), common stock and perpetual
preferred stock of the Federal Home Loan Mortgage
Corporation (Freddie Mac), Class A voting and Class
C non-voting common stock of the Federal Agricultural Mortgage Corporation (Farmer Mac), and common and preferred stock of SLM Corporation (the
private-sector successor to the Student Loan Marketing Association).
Exclude from equity securities with readily determinable fair values not held for trading:

(1) Paid-in stock of a Federal Reserve Bank.
(2) Stock of a Federal Home Loan Bank.
(3) Common and preferred stocks that do not have
readily determinable fair values, such as stock of
bankers’ banks and Class B voting common
stock of the Federal Agricultural Mortgage Corporation (Farmer Mac).
(4) Preferred stock that by its terms either must be
redeemed by the issuing enterprise or is redeemable at the option of the investor (i.e., redeemable or limited-life preferred stock), including
trust preferred securities subject to mandatory
redemption.
(5) ″Restricted stock,″ i.e., equity securities for
which sale is restricted by governmental or contractual requirement (other than in connection
with being pledged as collateral), except if that
requirement terminates within one year or if the
holder has the power by contract or otherwise to
cause the requirement to be met within one year.
FR 2314

(6) Participation certificates issued by a Federal
Intermediate Credit Bank, which represent nonvoting stock in the bank.
(7) Minority interests held by the reporting institution in any companies not meeting the definition
of associated company, except minority holdings that indirectly represent bank premises , or
other real estate owned.
(8) Equity holdings in those corporate joint ventures over which the reporting institution does
not exercise significant influence, except equity
holdings that indirectly represent bank premises.
(9) Holdings of capital stock of and investments in
unconsolidated subsidiaries, associated companies, and those corporate joint ventures over
which the reporting bank exercises significant
influence.
See the FR Y-9C Glossary entry for “Securities Activities” for further information on accounting for investments in equity securities.
Line Item 3 Loans and lease financing receivables
(including federal funds sold).
Line Item 3(a) Loans and leases, held for investment
and held for sale.
Report the aggregate book value of all loans and leases
of the subsidiary, net of unearned income, before the
deduction of the “Allowance for Credit Losses on
Loans and Leases,” (report in item 3(b)). This item
must equal Schedule BS-A, item 6. See Schedule BS-A,
‘‘General Instructions,’’ for further detail.
Line Item 3(b) Less: Allowance for credit losses on
loans and leases.
Report the allowance for credit losses on loans and
leases as determined in accordance with ASU 2016-13.
For further information, see the FR Y9C Glossary
entry for “allowance for credit losses.”
Line Item 3(c) Loan and lease financing receivables,
held for investment and held for sale, net of the
allowance.
Report the amount derived by subtracting
item 3(b) from item 3(a).
BS-3

March 2024

Schedule BS

Line Item 4 Trading assets.
Subsidiaries that (a) regularly underwrite or deal in
securities, interest rate contracts, foreign exchange rate

(1) Premises that are actually owned and occupied
(or to be occupied, if under construction) by the
subsidiary;

contracts, other commodity and equity derivative contract, other financial instruments, and other assets for
resale, (b) acquire or take positions in such items principally for the purpose of selling in the near term or
otherwise with the intent to resell in order to profit
from short-term price movements, or (c) acquire or
take positions in such items as an accommodation to
customers or for other trading purposes shall report in
this item the value of such assets or positions on the
report date. Assets and other financial instruments
held for trading shall be valued at fair value.

(2) Leasehold improvements, vaults, and fixed
machinery and equipment;

Assets held in trading accounts include, but are not
limited to:

(1) U.S. Treasury securities;
(2) U.S. government agency and corporation
obligations;
(3) Securities issued by states and political subdivisions in the U.S.;
(4) Securities of all foreign governments and official
institutions;
(5) Equity securities;
(6) Other bonds, notes, and debentures;
(7) Certificates of deposit;
(8) Commercial paper;
(9) Bankers acceptances; and
(10) Revaluation gains from derivative contracts.
Line Item 5 Premises and fixed assets (including
capitalized leases).
Report the book value, less accumulated depreciation
or amortization, of all premises, equipment, furniture,
and fixtures purchased directly or acquired by means
of a capital lease. Any method of depreciation or
amortization conforming to generally accepted
accounting principles may be used.
Include as premises and fixed assets:
BS-4

March 2019

(3) Remodeling costs to existing premises;
(4) Real estate acquired and intended to be used for
future expansion;
(5) Parking lots that are used by customers or
employees of the subsidiary;
(6) Furniture, fixtures, and movable equipment of
the subsidiary;
(7) Automobiles, airplanes, and other vehicles
owned by the subsidiary and used in the conduct
of its business;
(8) The amount of capital lease property (with the
subsidiary as lessee), premises, furniture, fixtures, and equipment; and
(9) Stocks and bonds issued by nonmajority-owned
corporations whose principal activity is the ownership of land, buildings, equipment, furniture,
or fixtures occupied or used (or to be occupied
or used) by the subsidiary.
Property formerly but no longer used for subsidiary
activities may be reported in this item as ‘‘Premises and
fixed assets’’ or in item 6, ‘‘Other real estate owned.’’
Exclude from premises and fixed assets:

(1) Original paintings, antiques, and similar valuable objects (report in item 7, ‘‘All other
assets’’);
(2) Favorable leasehold rights (report in Schedule BS-M, item 5(e), ‘‘All other identifiable
intangible assets’’); and
(3) Loans and advances, whether secured or unsecured, to individuals, partnerships, and
nonmajority-owned corporations for the purpose of purchasing or holding land, buildings,
or fixtures occupied or used (or to be occupied
or used) by the subsidiary (report in
item 3(a) “Loans and lease financing receivables,
held for investment and held for sale.”).
FR 2314

Schedule BS

Line Item 6 Other real estate owned.
Report the book value (not to exceed the fair value),
less accumulated depreciation, if any, of all real estate
other than premises actually owned by the subsidiary.
Exclude any property necessary for the conduct of
banking business (report in item 5 above, ‘‘Premises
and fixed assets’’). Property formerly but no longer
used for subsidiary activities may be reported in this
item or in item 5 above.
Include as other real estate owned:

(1) Real estate acquired in any manner for debts
previously contracted (including, but not limited
to, real estate acquired through foreclosure and
real estate acquired by deed in lieu of foreclosure), even if the subsidiary has not yet received
title to the property;
(2) Real estate collateral underlying a loan when the
subsidiary has obtained physical possession of
the collateral, regardless of whether formal foreclosure proceedings have been instituted against
the borrower;
(3) Foreclosed real estate sold under contract and
accounted for under the deposit method of
accounting in accordance with ASC Subtopic
360-20, Property, Plant, and Equipment – Real
Estate Sales (formerly FASB Statement No. 66,
Accounting for Sales of Real Estate);
(4) Any real estate acquired, directly or indirectly,
by the subsidiary and held for development or
other investment purposes;
(5) Real estate acquisition, development, or construction (ADC) arrangements that are
accounted for as direct investments in real estate
or real estate joint ventures in accordance with
ASC Subtopic 310-10, Receivables – Overall
(formerly AICPA Practice Bulletin 1, Appendix,
Exhibit I, ADC Arrangements);
(6) Real estate acquired and held for investment by
the subsidiary that has been sold under contract
and accounted for under the deposit method in
accordance with ASC Subtopic 360-20;
(7) Any other loans secured by real estate and
advanced for real estate acquisition, development, or investment purposes if the reporting
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subsidiary in substance has virtually the same
risks and potential rewards as an investor in the
borrower’s real estate venture;

(8) Investments in corporate joint ventures, unincorporated joint ventures, and general or limited
partnerships that are primarily engaged in the
holding of real estate for development, resale, or
other investment purposes and over which the
subsidiary does not exercise significant influence. Report such investments at (i) fair value or
(ii) if chosen by the reporting institution for an
equity investment that does not have a readily
determinable fair value, at cost minus impairment, if any, plus or minus changes resulting
from observable price changes in orderly transactions for the identical or a similar investment
of the same issuer; and
(9) Property originally acquired for future expansion but no longer intended to be used for that
purpose.
Line Item 7 All other assets.
Report all other assets held by the respondent subsidiary that cannot be properly included in any of the preceding items. Include investments in nonrelated companies, customers’ liability on acceptances
outstanding, goodwill, and intangible assets. Also
report income earned but not collected, prepaid
expenses, accounts receivable, and the positive fair
value of all derivatives held for purposes other than
trading.
Report net deferred tax assets in this item and net
deferred tax liabilities in item 14, ‘‘Other liabilities.’’
Exclude all balances due from related institutions and
investments in all subsidiaries and associated companies. Report such transactions in item 9.
Line Item 8 Claims on nonrelated organizations.
Enter the sum of items 1, 2, and 3(c) through 7.
Line Item 9 Balances due from related institutions,
gross.
Report all balances due from the top-tier holding company or banking organization, all balances due from
subsidiary banks (or their branches) or subsidiary
holding companies of the top-tier holding company,
and all balances due from other subsidiaries of these
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Schedule BS

organizations (including subsidiaries of the parent
organization and the reporting nonbank subsidiary),
on a gross basis. Include the amount of the subsidiary’s investment in all (whether consolidated or
unconsolidated) subsidiaries, associated companies,
corporate joint ventures, unincorporated joint ventures, and general partnerships over which the respondent exercises significant influence; and noncontrolling
investments in certain limited partnerships and limited
liability companies (as described in the FR Y-9C Glossary entry for ‘‘equity method of accounting’’), less
any dividends paid or declared.
Exclude all balances due to related institutions and
include in item 16.
Line Item 10 Total assets.
Report the sum of items 8 and 9.
Line Item 11 Trading liabilities.
Report the amount of liabilities from the reporting
subsidiary’s trading activities. Include liabilities resulting from the sales of assets that the reporting subsidiary does not own (short position) and revaluation
losses from ‘‘marking to market’’ (or the ‘‘lower of cost
or market’’) of interest rate, foreign exchange rate, and
other commodity and equity contracts into which the
reporting subsidiary has entered for trading, dealer,
customer accommodation, and similar purposes.
Line Item 12 Other borrowed money with a remaining
maturity of one year or less (including commercial
paper issued and federal funds purchased).
Report the total amount of money borrowed by the
subsidiary with a remaining maturity of one year or
less. Include outstanding commercial paper issued and
federal funds purchased. For purposes of this item,
remaining maturity is the amount of time remaining
from the report date until final contractual maturity of
a borrowing without regard to the borrowing’s repayment schedule, if any.
Borrowings may take the form of:

(1) Demand notes issued to the U.S. Treasury;
(2) Promissory notes;
(3) Notes and bills rediscounted (including commodity drafts rediscounted);
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June 2018

(4) Loans sold under repurchase agreements and
sales of participations in pools of loans that
mature in more than one business day;
(5) Due bills issued representing the subsidiary’s
receipt of payment and similar instruments,
whether collateralized or uncollateralized;
(6) Overnight and ‘‘Term federal funds’’ purchased;
(7) Securities sold under agreements to repurchase; and
(8) Mortgage indebtedness and obligations under
capitalized leases with a remaining maturity of
one year or less.
Exclude all borrowings with related institutions. Report
such borrowings in item 16.
Line Item 13 Other borrowed money with a remaining
maturity of more than one year (including subordinated
debt and limited-life preferred stock and related
surplus).
Report the total amount of all borrowings of the subsidiary with a remaining maturity of more than one
year, including subordinated debt, limited-life preferred stock, and related surplus. For purposes of this
item, remaining maturity is the amount of time
remaining from the report date until final contractual
maturity of a borrowing without regard to the borrowing’s repayment schedule, if any.
Borrowings may take the form of:

(1) Promissory notes;
(2) Perpetual debt securities that are unsecured and
not subordinated;
(3) Notes and bills rediscounted (including commodity drafts rediscounted);
(4) Loans sold under repurchase agreements and
sales of participations in pools of loans that
mature in more than one business day;
(5) Due bills issued representing the subsidiary’s
receipt of payment and similar instruments,
whether collateralized or uncollateralized;
(6) ‘‘Term federal funds’’ purchased;
(7) Securities sold under agreements to repurchase;
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Schedule BS

(8) Notes and debentures issued by the respondent
subsidiary; and
(9) Mortgage indebtedness and obligations under
capitalized leases with a remaining maturity of
more than one year; and
(10) Limited-life preferred stock. Limited life preferred stock is preferred stock that has a stated
maturity date or that can be redeemed at the
option of the holder. It excludes those issues of
preferred stock that automatically convert into
perpetual preferred stock at a stated date.
Exclude all borrowings with related institutions. Report
such borrowings in item 16.
Line Item 15 Liabilities to nonrelated organizations.
Enter the sum of items 11 through 14.
Line Item 16 Balances due to related institutions,
gross.
Report all balances due to the top-tier holding company or banking organization, all balances due to subsidiary banks (or their branches) or subsidiary holding
companies of the top-tier holding company, and all
balances due to other subsidiaries of these organizations (including subsidiaries of the parent organization), on a gross basis.
Exclude all balances due from related institutions and
include in item 9.
Line Item 17 Total liabilities.
Report the sum of items 15 and 16.
Line Item 18 Equity capital.
Equity capital represents the sum of capital stock, surplus, undivided profits, and various reserve accounts.
Line Item 18(a) Stock.
If the subsidiary is in corporate form, report the
amount of perpetual preferred stock issued, including
any amounts received in excess of its par or stated
value, and the aggregate par or stated value of common
stock issued.
If the subsidiary is not in corporate form, report the
amount of general or limited partnership shares or
interests issued in item 18(e).
FR 2314

Line Item 18(b) Surplus (exclude all surplus related to
preferred stock).
If the subsidiary is in corporate form, report the net
amount formally transferred to the surplus account,
including capital contributions, and any amount
received for common stock in excess of its par or stated
value on or before the report date. Exclude any portion
of the proceeds received from the sale of limited-life
preferred stock in excess of its par or stated value
(report in item 13) or any portion of the proceeds
received from the sale of perpetual preferred stock in
excess of its par or stated value (report in item 18(a)).
If the subsidiary is not in corporate form, report the
amount of general or limited partnership shares or
interests issued in item 18(e).
Line Item 18(c) Retained earnings.
Report the amount of retained earnings (including
capital reserves) as of the report date. The amount of
the retained earnings should reflect the transfer of net
income, declaration of dividends, transfers to surplus,
and any other appropriate entries. Adjustments of
accruals and other accounting estimates made shortly
after the report date that relate to the income and
expenses of the year-to-date period ended as of the
report date must be reported in the appropriate items
of the Income Statement for that year-to-date period.
Capital reserves are segregations of retained earnings
and are not to be reported as liability accounts or as
reductions of asset balances. Capital reserves may be
established for such purposes as follows:

(1) Reserve for undeclared stock dividends, which
includes amounts set aside to provide for stock
dividends (not cash dividends) not yet declared;
(2) Reserve for undeclared cash dividends, which
includes amounts set aside for cash dividends on
common and preferred stock not yet declared
(report cash dividends declared but not yet payable in item 14);
(3) Retirement account (for limited-life preferred
stock or notes and debentures subordinated to
deposits), which includes amounts allocated
under the plan for retirement of limited-life preferred stock or notes and debentures subordinated to deposits contained in the subsidiary’s
articles of association or in the agreement under
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Schedule BS

which such stock or notes and debentures were
issued; and

(4) Reserve for contingencies, which includes
amounts set aside for possible unforeseen or
indeterminate liabilities not otherwise reflected
on the subsidiary’s books and not covered by
insurance.
Exclude from retained earnings:

(1) The amount of the cumulative foreign currency
translation adjustment (report in item 18(d));
(2) Any portion of the proceeds received from the
sale of perpetual preferred stock and common
stock in excess of its par or stated value except
where required by state law or regulation (report
surplus related to perpetual preferred stock in
item 18(a) and surplus related to common stock
in item 18(b));
(3) Any portion of the proceeds received from the
sale of limited-life preferred stock in excess of its
par or stated value (report in item 13); and
(4) ‘‘Reserves’’ that reduce the related asset balances
such as valuation allowances (e.g., the allowances for credit losses), reserves for depreciation,
and reserves for bond premiums.
If the amount reported in this item is negative, paper
filers should enclose it in parentheses or report with a
minus (-) sign. Electronic filers should report negative
amounts with a minus (-) sign.
Line Item 18(d) Accumulated other comprehensive
income.
Report the amount of other comprehensive income in
conformity with the requirements of ASC Subtopic
220-10, Comprehensive Income – Overall (formerly
FASB Statement No. 130, Reporting Comprehensive
Income). Accumulated other comprehensive income
includes net unrealized holding gains (losses) on
available-for-sale securities, accumulated net gains
(losses) on cash flow hedges, foreign currency translation adjustments, and minimum pension liability
adjustments. Net unrealized holding gains (losses) on
available-for-sale securities is the difference between
the amortized cost and fair value of the subsidiary’s
available-for-sale securities, net of tax effects, as of the
report date.
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March 2024

For most subsidiaries, all ‘‘securities,’’ as the term is
defined in ASC Topic 320, Investments-Debt and
Equity Securities (formerly FASB Statement No. 115,
Accounting for Certain Investments in Debt and Equity
Securities), that are designated as ‘‘available-for-sale’’
will be reported as ‘‘available-for-sale securities’’ in
item 2(b), above. However, a subsidiary may have certain assets that fall within the definition of ‘‘securities’’
in ASC Topic 320 (e.g., commercial paper or nonrated
industrial development obligations) that the subsidiary
has designated as ‘‘available-for-sale’’ which are
reported for purposes of this report in a balance sheet
category other than ‘‘securities’’ (e.g., ‘‘loans and lease
financing receivables’’). These ‘‘available-for-sale’’
assets must be carried on the balance sheet at fair value
rather than amortized cost and the difference between
these two amounts, net of tax effects, must be included
in this item.
Also include the unamortized amount of the unrealized holding gain or loss at the date of transfer of any
debt security transferred into the held-to-maturity category from the available-for-sale category. When a debt
security is transferred from available-for-sale to heldto-maturity, report the unrealized holding gain or loss
at the date of transfer in this equity capital account and
amortize it over the remaining life of the security as an
adjustment of yield in a manner consistent with the
amortization of any premium or discount. Accumulated net gains (losses) on cash flow hedges is the effective portion of the accumulated change in fair value
(gain or loss) on derivatives designated and qualifying
as cash flow hedges in accordance with ASC Topic 815,
Derivatives and Hedging (formerly FASB Statement
No. 133, Accounting for Derivative Instruments and
Hedging Activities, as amended).
Under ASC Topic 815, a subsidiary that elects to apply
hedge accounting must exclude from net income the
effective portion of the change in fair value of a derivative designated as a cash flow hedge and record it on
the balance sheet in a separate component of equity
capital (referred to as ‘‘accumulated other comprehensive income’’ in the accounting standard). Report the
ineffective portion of the cash flow hedge in earnings.
Adjust the equity capital component (i.e., the accumulated other comprehensive income) associated with a
hedged transaction each reporting period to a balance
that reflects the lesser (in absolute amounts) of:
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Schedule BS

(1) The cumulative gain or loss on the derivative
from inception of the hedge, less (a) amounts
excluded consistent with the subsidiary’s
defined risk management strategy and (b) the
derivative’s gains or losses previously reclassified from accumulated other comprehensive
income into earnings to offset the hedged transaction, or
(2) The portion of the cumulative gain or loss on
the derivative necessary to offset the cumulative
change in expected future cash flows on the
hedged transaction from inception of the hedge
less the derivative’s gains or losses previously
reclassified from accumulated other comprehensive income into earnings.
Accordingly, the amount reported in this item should
reflect the sum of the adjusted balance (as described
above) of the cumulative gain or loss for each derivative designated and qualifying as a cash flow hedge.
These amounts will be reclassified into earnings in the
same period or periods during which the hedged transaction affects earnings (for example, when a hedged
variable rate interest receipt on a loan is accrued or
when a forecasted sale occurs).
Report the sum of the subsidiary’s foreign currency
translation adjustments accumulated in accordance
with ASC Topic 830, Foreign Currency Matters (formerly FASB Statement No. 52, Foreign Currency
Translation). Report any minimum pension liability
adjustment recognized in accordance with ASC Topic
715, Compensation-Retirement Benefits (formerly
FASB Statement No. 87, Employers’ Accounting for
Pensions). Under ASC Topic 715, an employer must
report in a separate component of equity capital, net of
any applicable tax benefits, the excess of additional
pension liability over unrecognized prior service cost.
Refer to the FR Y-9C instructions and ASC Subtopic
220-10 for additional information on reporting this
item.
If the amount reported in this item is negative, paper
filers should enclose it in parentheses or report with a
minus (-) sign. Electronic filers should report negative
amounts with a minus (-) sign.
FR 2314

Line Item 18(e) General and limited partnership shares
and interests.
Report the amount of general or limited partnership
shares or interests issued if the subsidiary is not in corporate form.
If this amount is negative, paper filers should enclose it
in parentheses or report with a minus (-) sign. Electronic filers should report negative amounts with a
minus (-) sign.
Line Item 18(f) Other equity capital components.
Report all other equity capital components including
the total carrying value (at cost) of treasury stock,
unearned Employee Stock Ownership Plan (ESOP)
shares, and capital contributions not in the form of
stock as of the report date. Refer to the FR Y-9C
instructions for additional information on reporting
this item.
If the amount reported in this item is negative, paper
filers should enclose it in parentheses or report with a
minus (-) sign. Electronic filers should report negative
amounts with a minus (-) sign.
Line Item 18(g) Total equity capital.
Report the sum of items 18(a) through 18(f). This item
must equal Schedule IS-A, Changes in Equity Capital,
item 7, ‘‘Total equity capital at end of current period.’’
If the amount reported in this item is negative, paper
filers should enclose it in parentheses or report with a
minus (-) sign. Electronic filers should report negative
amounts with a minus (-) sign.
Line Item 19 Total liabilities and equity capital.
Report the sum of items 17 and 18(g). This item must
equal item 10, ‘‘Total assets.’’

Derivatives and Off-Balance-Sheet Items
Report the following selected commitments, contingencies, and other off-balance-sheet items and derivative contracts. Include transactions with related organizations. Exclude contingencies arising in connection
with litigation.
Report in items 20 and 21 the unused portions of commitments. Unused commitments are to be reported
gross, i.e., include in the appropriate item the unused
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Schedule BS

amount of commitments acquired from and conveyed
or participated to others. However, exclude commitments conveyed or participated to others that the subsidiary is not legally obligated to fund even if the party
to whom the commitment has been conveyed or participated fails to perform in accordance with the terms
of the commitment.
For purposes of items 20 and 21, commitments
include:
(1) Commitments to make or purchase extensions of
credit in the form of loans or participations in
loans, lease financing receivables, or similar
transactions.
(2) Commitments for which the subsidiary has
charged a commitment fee or other
consideration.
(3) Commitments that are legally binding.
(4) Loan proceeds that the subsidiary is obligated to
advance, such as:
(a) Loan draws;
(b) Construction progress payments; and
(c) Seasonal or living advances to farmers
under prearranged lines of credit.
(5) Rotating, revolving, and open-end credit arrangements, including, but not limited to, retail credit
card lines and home equity lines of credit.
(6) Commitments to issue a commitment at some
point in the future, where the subsidiary has
extended terms, the borrower has accepted the
offered terms, and the extension and acceptance
of the terms are in writing or, if not in writing,
are legally binding on the subsidiary and the borrower, even though the related loan agreement has
not yet been signed.
(7) Overdraft protection on depositors’ accounts
offered under a program where the subsidiary
advises account holders of the available amount
of overdraft protection, for example, when
accounts are opened or on depositors’ account
statements or ATM receipts.
(8) The subsidiary’s own takedown in securities
underwriting transactions.
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March 2013

(9) Revolving underwriting facilities (RUFs), note
issuance facilities (NIFs), and other similar
arrangements, which are facilities under which a
borrower can issue on a revolving basis shortterm paper in its own name, but for which the
underwriting subsidiary has a legally binding
commitment either to purchase any notes the borrower is unable to sell by the rollover date or to
advance funds to the borrower.
Exclude forward contracts and other commitments
that meet the definition of a derivative and must be
accounted for in accordance with ASC Topic 815,
Derivatives and Hedging – Overall (formerly FASB
Statement No. 133, Accounting for Derivative Instruments and Hedging Activities, as amended), which
should be reported in items 25 through 29, as appropriate. Include the amount (not the fair value) of the
unused portions of loan commitments that do not
meet the definition of a derivative that the subsidiary
has elected to report at fair value under a fair value
option. Also include forward contracts that do not
meet the definition of a derivative.
Report the unused portions of commitments in the
appropriate item regardless of whether they contain
‘‘material adverse change’’ clauses or other provisions
that are intended to relieve the issuer of its funding
obligations under certain conditions and regardless of
whether they are unconditionally cancelable at any
time.
In the case of commitments for syndicated loans,
report only the subsidiary’s proportional share of the
commitment.
For purposes of reporting the unused portions of
revolving asset-based lending commitments, the commitment is defined as the amount a subsidiary is obligated to fund – as of the report date – based on the
contractually agreed upon terms. In the case of revolving asset-based lending, the unused portions of such
commitments should be measured as the difference
between (a) the lesser of the contractual borrowing
base (i.e., eligible collateral times the advance rate) or
the note commitment limit, and (b) the sum of outstanding loans and letters of credit under the commitment. The note commitment limit is the overall maximum loan amount beyond which the subsidiary will
not advance funds regardless of the amount of collateral posted. This definition of ‘‘commitment’’ is appliFR 2314

Schedule BS

cable only to revolving asset-based lending, which is a
specialized form of secured lending in which a borrower uses current assets (e.g., accounts receivable and
inventory) as collateral for a loan. The loan is structured so that the amount of credit is limited by the
value of the collateral.
Line Item 20 Unused commitments on securities
underwriting.
Report the unsold portion of the subsidiary’s own
takedown in securities underwriting transactions.
Include revolving underwriting facilities (RUFs), note
issuance facilities (NIFs), and other similar
arrangements.
Line Item 21 Unused commitments on loans and all
other unused commitments.
Report the unused portion of commitments to extend
credit for the following loans:

(1) Revolving, open-end loans secured by 1−4 family residential properties, e.g., home equity lines;
(2) Commercial real estate, construction, and land
development;
(3) Commitments to fund loans secured by real
estate;
(4) Commitments to fund loans not secured by real
estate;
(5) Credit card lines;
(6) Overdraft facilities;
(7) Commercial lines of credit; and
(8) Retail check credit and related plans.
Line Item 22 Standby letters of credit and foreign
office guarantees.
Report the amount outstanding and unused as of the
report date of all standby letters of credit (and all
legally binding commitments to issue standby letters of
credit) issued by the subsidiary. The originating subsidiary must report the full outstanding and unused
amount of standby letters of credit in which participations have been conveyed to others where (a) the originating and issuing subsidiary is obligated to pay the
full amount of any draft drawn under the terms of the
standby letter of credit and
FR 2314

(b) the participating companies have an obligation to
partially or wholly reimburse the originating subsidiary, either directly in cash or through a participation
in a loan to the account party. The originating subsidiary also must report the amount of standby letters of
credit conveyed to others through participations. The
subsidiary participating in such arrangements must
report the full amount of their contingent liabilities to
participate in such standby letters of credit without
deducting any amounts that they may have reparticipated to others. Participating subsidiaries also must
report the amount of interest in transactions that they
have reparticipated to others, if any. Also include those
standby letters of credit that are collateralized by cash
on deposit.
Line Item 23 Commercial and similar letters of credit.
Report the amount outstanding and unused as of the
report date of issued or confirmed commercial letters
of credit, travelers’ letters of credit not issued for
money or its equivalent, and all similar letters of credit,
but excluding standby letters of credit (which are to be
reported in item 22 above). Report legally binding
commitments to issue commercial letters of credit.
Line Item 24 Commitments to purchase foreign
currencies and U.S. dollar exchange (spot, forward, and
futures).
Report the gross aggregate par value or notional
amount (stated in U.S. dollars) of all futures contracts,
forward and spot contracts to purchase foreign (nonU.S.) currencies and U.S. dollar exchange that are outstanding as of the report date. A purchase of U.S. dollar exchange is equivalent to a sale of foreign currency.
Report only one side of a foreign currency transaction.
In those transactions where foreign (non-U.S.) currencies are bought or sold against U.S. dollars, report only
that side of the transaction that involves the foreign
(non-U.S.) currency. A currency futures contract is a
standardized agreement for delayed delivery of a foreign (non-U.S.) currency in which the buyer agrees to
purchase and the seller agrees to deliver, at a specified
future date, a specified amount at a specified exchange
rate. Future contracts are traded on organized
exchanges that act as the counterparty to each
contract.
A forward foreign exchange contract is an agreement
for delayed delivery of a foreign (non-U.S.) currency in
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which the buyer agrees to purchase and the seller
agrees to deliver, at a specified future date, a specified
amount at a specified exchange rate. These contracts
are not standardized and are traded in an over-thecounter market. A spot contract is an agreement for
the immediate delivery, usually within two days, of a
foreign currency at the prevailing spot rate. Contracts
are outstanding (i.e., open) until they have been canceled by acquisition or delivery of the underlying currencies or, for futures contracts, by offset. (‘‘Offset’’ is
the purchase and sale of an equal number of contracts
on the same underlying currencies for the same delivery
month, executed through the same clearing member on
the same exchange.)
Line Item 25 All other futures and forward contracts
(excluding contracts involving foreign exchange).
Report the gross aggregate par value or notional
amount of all other futures and forward contracts not
included in item 24. Include futures and forward interest rate contracts (e.g., U.S. Treasury securities futures,
forward rate agreements, and forward agreements on
U.S. government securities) and futures and forward
contracts on other commodities (e.g., stock index and
commodity contracts). Report the aggregate par value
of all futures and forward contracts that are related to
an interest-bearing financial instrument or whose cash
flows are determined by referencing interest rates or
another interest rate contract.
Report futures and forward contracts that commit the
subsidiary to purchase or sell agricultural products
(e.g., wheat or coffee), precious metals (e.g., gold or
platinum), non-ferrous metals (e.g., copper or zinc) or
any other commodity.
Futures and forward contracts are agreements for
delayed delivery of financial instruments or other commodities in which the buyer agrees to purchase and the
seller agrees to deliver, at a specified future date, a
specified instrument or commodity at a specified price.
Futures contracts are standardized, transferable agreements traded on organized exchanges that act as the
counterparty to each contract. Forward contracts are
not standardized and are not traded on organized
exchanges. The contract amount to be reported for
futures and forward contracts on commodities is the
quantity, (i.e., number of units) of the commodity or
product contracted for purchase or sale multiplied by
the contract price of a unit.
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Line Item 26 Option contracts.
Report the amount of written option contracts in
item 26(a), and the amount of purchased option contracts in item 26(b). In reporting items 26(a) and 26(b),
do not net the following:

(1) Obligations of the subsidiary to buy against the
subsidiary’s obligations to sell, or
(2) Written options against purchased options.
An option contract conveys either the right or the obligation, depending upon whether the reporting subsidiary is the purchaser or the writer, respectively, to
(1) buy or sell a financial instrument or an interest rate
futures contract on a financial instrument at a specified
price by a specified future date, (2) exchange two different currencies at a specified exchange rate, or (3) buy or
sell stock options, stock index options, or other commodities. Options can be traded on organized
exchanges. In addition, options can be written to meet
the specialized needs of the counterparties to the transaction. These customized option contracts are known
as over the counter (OTC) options and are not generally traded.
Line Item 26(a) Written option contracts.
Report the amount of all financial instruments (aggregate par value), foreign currencies, and other commodities that the reporting subsidiary has obligated
itself, for compensation (such as a fee or premium), to
either purchase or sell under option contracts that are
outstanding as of the report date.
Line Item 26(b) Purchased option contracts.
Report the amount of all financial instruments (aggregate par value), foreign currencies, and other commodities that the reporting subsidiary has purchased,
for compensation (such as a fee or premium), the right
to either purchase or sell under option contracts that
are outstanding as of the report date. In the case of
option contracts giving the reporting subsidiary the
right to either purchase or sell a futures contract,
report the amount of the financial instrument, foreign
currency, or other commodity underlying the futures
contract.
Line Item 27 Notional value of interest rate swaps.
Report the notional value of all outstanding interest
rate and basis swaps. In those cases where the subsidFR 2314

Schedule BS

iary is acting as an intermediary, report both sides of
the transaction. Include cross-currency interest rate
swaps that do not involve the exchange of principal
amounts between the counterparties. An interest rate
swap is a transaction in which two parties agree to
exchange the interest payment streams on a specified
principal amount of assets or liabilities for a certain
number of years. The notional value of an interest rate
swap is the underlying principal amount upon which
the exchange of interest income or expense is based.
Line Item 28 Notional value of exchange swaps.
Report the notional principal value (stated in U.S. dollars) of all outstanding cross-currency interest rate
swaps. In those cases where the subsidiary is acting as
an intermediary, report both sides of the transaction.
A crosscurrency interest rate swap is a transaction in
which two parties agree to exchange principal amounts
of different currencies, usually at the prevailing spot
rate, at the inception of the agreement, which lasts for a
certain number of years. Over the life of the swap, the
counterparties exchange payments in the different currencies based on fixed rates of interest. When the
agreement matures, the principal amounts will be
re-exchanged at the same spot rate. The notional value
of a cross-currency interest rate swap is the underlying
principal amount upon which the exchange is based.
Line Item 29 Notional value of other swaps.
Report the notional principal value of all other swap
agreements that are not reportable as either interest or
foreign exchange rate contracts in items 27 or 28.
Line Item 30 All other off-balance-sheet liabilities.
With the exceptions listed below, report all types of
off-balance-sheet items not covered in other items of
this schedule. Other off-balance-sheet liabilities
include, but are not limited to:

(1) Securities borrowed against collateral (other
than cash) or on an uncollateralized basis;
(2) Securities lent against collateral or on an uncollateralized basis (other than cash);
(3) Commitments to purchase and to sell securities
that have not been issued (when-issued securities) and are excluded from the requirements of
ASC Topic 815, Derivatives and Hedging (formerly FASB Statement No. 133, Accounting for
FR 2314

Derivative Instruments and HedgingActivities, as
amended) and are not reported in item 25;

(4) Credit derivatives, including contracts where the
subsidiary is the beneficiary;
(5) Participations in acceptances conveyed to others
by the reporting subsidiary or acquired by the
subsidiary;
(6) Financial guarantee insurance that insures the
timely payment of principal and interest on
bond issues;
(7) Letters of indemnity other than those issued in
connection with the replacement of lost or stolen official checks; and
(8) Shipside or dockside guarantees or similar guarantees relating to missing bills of lading or title
documents and other document guarantees that
facilitate the replacement of lost or destroyed
documents and negotiable instruments.
Exclude from other off-balance-sheet items:

(1) All items that are required to be reported on the
balance sheet, such as repurchase and resale
agreements;
(2) Commitments to purchase property being
acquired for lease to others (reported in
item 23);
(3) Contingent liabilities arising in connection with
litigation in which the subsidiary is
involved; and
(4) Signature or endorsement guarantees of the
type associated with the regular clearing of
negotiable instruments or securities in the normal course of business.

Memoranda
Memoranda items 1(a) and 1(b) are to be completed by
subsidiaries that have elected to account for financial
instruments or servicing assets and liabilities at fair
value under a fair value option.
Memoranda items 1(a) and 1(b) are to be completed by
subsidiaries that have adopted ASC Topic 820, Fair
Value Measurements and Disclosures (formerly FASB
Statement No. 157, Fair Value Measurements), and
BS-13

March 2013

Schedule BS

have elected to report certain assets and liabilities at
fair value with changes in fair value recognized in earnings in accordance with U.S. generally accepted
accounting principles (GAAP) (i.e., ASC Subtopic
825-10, Financial Instruments – Overall (formerly
FASB Statement No. 159, The Fair Value Option for
Financial Assets and Financial Liabilities); ASC Subtopic 815-15, Derivatives and Hedging – Embedded
Derivatives (formerly FASB Statement No. 155,
Accounting for Certain Hybrid Financial Instruments);
and ASC Subtopic 860-50, Transfers and Servicing –
Servicing Assets and Liabilities (formerly FASB Statement No. 156, Accounting for Servicing of Financial
Assets)). This election is generally referred to as the fair
value option.

Line Item 1(b) Total liabilities.
Report the total fair value of all liabilities that the subsidiary has elected to account for under the fair value
option that is included in Schedule BS, Balance Sheet.

Line Item 1 Financial assets and liabilities measured at
fair value under a fair value option
Line Item 1(a) Total assets.
Report the total fair value of all assets that the subsidiary has elected to account for under the fair value
option that is included in Schedule BS, Balance Sheet.

BS-14

March 2011

FR 2314

LINE ITEM INSTRUCTIONS FOR

Loans and Lease
Financing Receivables
Schedule BS-A

General Instructions
Loans and lease financing receivables are extensions of
credit resulting from either direct negotiation between
the subsidiary and their customers or the purchase of
such assets from others. Loans may take the form of
promissory notes, acknowledgments of advance, due
bills, invoices, overdrafts, acceptances held, factoring
account receivables, and similar written or oral
obligations.
Include the dollar amount outstanding of all federal
funds sold (including ‘‘term federal funds’’) and securities purchased under agreement to resell. Also include
resale agreements involving assets other than securities.
Exclude:

(1) All loans and leases with related institutions
(including federal funds sold and securities purchased under agreements to resell), which are to
be reported in Schedule BS, item 9;
(2) Any loans or leases that the subsidiaries have
sold or charged off;
(3) The fair value of any assets received in full or
partial satisfaction of a loan or lease (unless the
asset received is itself reportable as a loan or
lease) and any loans for which the subsidiary has
obtained physical possession of the underlying
collateral regardless of whether formal foreclosure or repossession proceedings have been instituted against the borrower;
(4) Holdings of commercial paper (report in Schedule BS, item 2, ‘‘Securities’’);
(5) Contracts of sale or other loans indirectly representing other real estate (report in Schedule BS,
item 6, ‘‘Other real estate owned’’); and
FR 2314

(6) Loans and leases held for trading purposes
(report in Schedule BS, item 4, ‘‘Trading
assets’’).
Exclude all transactions with related institutions.
Include in items 1 through 7 all loans and leases on the
books of the subsidiary even if on the report date they
are past due and collection is doubtful. Also report all
loans and leases held for sale as part of the subsidiary’s
mortgage banking activities or activities of a similar
nature involving other types of loans. Loans held for
sale shall be reported at the lower of cost or market
value. Exclude any loans or leases the subsidiary has
charged off (report in Schedule IS-B, item 3, “less:
charge-offs.” Report the aggregate book value of all
loans and leases before deduction of the allowance for
credit losses on loans and leases. Report each item in
this schedule net of (1) unearned income (to the extent
possible), (2) any applicable allocated transfer risk
reserve, and (3) deposits accumulated for the payment
of personal loans (hypothecated deposits).
Line Item 1 Loans secured by real estate.
Report all loans (other than those to states and political subdivisions in the U.S.), regardless of purpose and
regardless of whether originated by the subsidiary or
purchased from others, that are secured by real estate
as evidenced by mortgages, deeds of trust, land contracts, or other instruments, whether first or junior
liens (e.g., equity loans or second mortgages) on real
estate. For additional information, refer to the
FR Y-9C glossary entry for “loans secured by real
estate.”
Line Item 2 Loans to depository institutions.
Report all loans (other than those secured by real
estate), including overdrafts, to banks, other depository institutions, and other associations, companies,
and financial intermediaries whose primary business is
BS-A-1

March 2024

Schedule BS-A

to accept deposits and to extend credit for business or
for personal expenditure purposes. This includes commercial banks in the U.S., foreign branches of U.S.
banks and banks in foreign countries. Report the subsidiary’s holdings of all bankers acceptances accepted
by unrelated banks (i.e., banks that are not direct or
indirect subsidiaries of the subsidiary’s holding company or parent organization).
Exclude acceptances accepted by related banks (i.e.,
banks that are direct or indirect subsidiaries of the subsidiary’s holding company or parent organization).
Also exclude loans to foreign governments and foreign
official institutions.
Line Item 3 Commercial and industrial loans.
Report all loans (regardless of domicile) for commercial and industrial purposes to sole proprietorships,
partnerships, corporations, and other business enterprises, whether secured (other than by real estate) or
unsecured, single-payment or installment. These loans
may take the form of direct or purchased loans.
Include commercial and industrial loans guaranteed by
foreign governmental institutions.
Exclude:

(1) Loans secured by real estate (report in item 1);
(2) Loans for the purpose of financing agricultural
production, whether made to farmers or to
nonagricultural businesses (report in item 5);
(3) Loans to finance companies and insurance companies (report in item 5);
(4) Loans to broker and dealers in securities, investment companies, and mutual funds (report in
item 5);
(5) Loans to depository institutions (report in
item 2);
(6) Loans to nonprofit organizations (report in
item 5); and
(7) Loans to nondepository financial institutions
(report in item 5).
Line Item 4 Loans to individuals for personal,
household, and other personal expenditures.
Report credit card and related plans and other loans to
individuals for household, family, and other personal
BS-A-2

December 2013

expenditures. Include all loans to individuals for household, family, and other personal expenditures that are
not secured by real estate, whether direct loans or purchased paper. Exclude loans secured by real estate
(report in item 1) and loans to individuals for the purpose of purchasing or carrying securities (report in
item 5).
Line Item 5 All other loans and lease financing
receivables.
Report all other loans held by the subsidiary that are
not properly included in items 1 through 4 above and
all lease financing receivables. Report all outstanding
receivable balances relating to direct financing and leveraged leases on property acquired by the subsidiary
for leasing purposes. These balances should include the
estimated residual value of leased property and must
be net of unearned income. Include all lease financing
receivables of states and political subdivisions in the
U.S. Also include all loans to foreign governments and
official institutions.
Line Item 6 Total loans and lease financing
receivables.
Report the sum of items 1 through 5.
Line Item 7 Past due and nonaccrual loans and leases.
Report the subsidiary loans and lease financing receivables included in item 6 above that are past due 30
through 89 days and still accruing in item 7(a), past due
90 days or more and still accruing in item 7(b), in nonaccrual status in item 7(c), and loans restructured in
troubled debt restructurings included in past due and
nonaccrual loans in item 7(d). Report the full outstanding balances of the past due loans and lease
financing receivables, not simply the delinquent
payments.
Line Item 7(a) Loans and leases past due 30 through
89 days.
Report loans and lease financing receivables that are
contractually past due 30 through 89 days as to principal or interest payments, and still accruing. Include
loans restructured in troubled debt restructurings past
due 30 through 89 days and still accruing.
Line Item 7(b) Loans and leases past due 90 days or
more.
contractually past due 90 days or more as to principal
or interest payments, and still accruing. Include loans
FR 2314

Schedule BS-A

restructured in troubled debt restructurings past due
90 days or more and still accruing.
Line Item 7(c) Nonaccrual loans and leases.
Report loans and lease financing receivables accounted
for on a nonaccrual status. Include loans restructured
in troubled debt restructurings that are in nonaccrual
status. For purposes of this report, report loans and
leases as being in nonaccrual status if: (a) they are
maintained on a cash basis because of deterioration in
the financial position of the borrower, (b) payment in
full of interest or principal is not expected, or (c) principal or interest has been in default for a period of
90 days or more unless the obligation is both wellsecured and in the process of collection.
NOTE: Loans to individuals for household, family,
and other personal expenditures and loans secured by
1–4 family residential properties on which principal or
interest is due and unpaid for 90 days or more are not
required to be reported as nonaccrual loans. Nevertheless, such loans should be subject to other alternative
methods of evaluation to assure that the subsidiary’s
net income is not materially overstated. To the extent
that the subsidiary has elected to carry any loans in
nonaccrual status on its books, such loans must be
reported as nonaccrual in this item.
Line Item 7(d) Loans restructured in troubled debt
restructurings included in items 7(a) through 7(c) above.
Report loans restructured in troubled debt restructurings that, under their modified terms, are past due
30 days or more and still accruing or are in nonaccrual
status as of the report date. Such loans will have been
included in items 7(a), 7(b), or 7(c) above. Loans
restructured in troubled debt restructurings include
those loans that have been restructured or renegotiated
to provide a reduction of either interest or principal
because of a deterioration in the financial position of
the borrower. 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 restructured
debt. For further information, see the FR Y-9C Glossary entry for ‘‘troubled debt restructurings.’’
Include all loans to individuals for household, family,
and other personal expenditures, and all loans secured
by 1−4 family residential properties.
FR 2314

Memoranda
Line Item 1. Closed-end loans with negative
amortization features secured by 1–4 family residential
properties.
Report in the appropriate subitem the carrying amount
of closed-end loans with negative amortization features secured by 1–4 family residential properties and,
if certain criteria are met, the maximum remaining
amount of negative amortization contractually permitted on these loans and the total amount of negative
amortization included in the carrying amount of these
loans. Negative amortization refers to a method in
which a loan is structured so that the borrower’s minimum monthly (or other periodic) payment is contractually permitted to be less than the full amount of
interest owed to the lender, with the unpaid interest
added to the loan’s principal balance. The contractual
terms of the loan provide that if the borrower allows
the principal balance to rise to a pre-specified amount
or maximum cap, the loan payments are then recast to
a fully amortizing schedule. Negative amortization
features may be applied to either adjustable-rate mortgages or fixed-rate mortgages, the latter commonly
referred to as graduated payment mortgages (GPMs).
Line Item 1(a) Total carrying amount of closed-end
loans with negative amortization features secured by
1–4 family residential properties (included in
Schedule BS-A, item 1
This item is to be completed by all nonbank subsidiaries.
Report the total carrying amount (before any loan loss
allowances) of, i.e., the recorded investment in, closedend loans secured by 1–4 family residential properties
whose terms allow for negative amortization. The carrying amounts included in this item will also have been
reported in Schedule BS-A, item 1.
Memoranda items 1(b) and 1(c) are to be completed by
nonbank subsidiaries that had closed-end loans with
negative amortization features secured by 1–4 family
residential properties (included in Schedule BS-A,
item 1) as of the previous December 31 report date, with
a carrying amount (before any loan loss allowances)
that exceeds 5 percent of total loans and leases, net of
unearned income (as reported inScheduleBS-A,item6)
as of the previous December 31 report date.
BS-A-3

March 2011

Schedule BS-A

Line Item 1(b) Total maximum remaining amount of
negative amortization contractually permitted on
closed-end loans secured by 1–4 family residential
properties.
For all closed-end loans secured by 1–4 family residential properties whose terms allow for negative amortization (that were reported in Schedule BS-A, item 1),
report the total maximum remaining amount of negative amortization permitted under the terms of the
loan contract (i.e., the maximum loan principal balance permitted under the negative amortization cap
less the principal balance of the loan as of the quarterend report date).

zation, report the total amount of negative amortization included in the carrying amount (i.e., the total
amount of interest added to the original loan principal
balance that has not yet been repaid) reported in
Schedule BS-A, Memorandum item 1(a) above. Once a
loan reaches its maximum principal balance, the
amount of negative amortization included in the carrying amount should continue to be reported until the
principal balance of the loan has been reduced through
cash payments below the original principal balance of
the loan.

Line Item 1(c) Total amount of negative amortization
on closed-end loans secured by 1–4 family residential
properties included in the carrying amount reported in
Memorandum item 1(a) above.
For all closed-end loans secured by 1-4 family residential properties whose terms allow for negative amorti-

BS-A-4

March 2007

FR 2314

LINE ITEM INSTRUCTIONS FOR

Memoranda
Schedule BS-M

Exclude all balances with related institutions from this
schedule.
Line Item 1 Balances due from depository institutions,
gross
Line Item 1(a) Balances due from depository
institutions in the U.S. (including their IBFs).
Report demand, savings, and time balances on deposit
with offices of commercial banks, industrial banks,
stock savings banks, private banks, Edge and agreement corpo- rations, mutual savings banks, savings and
loan associations, and any other depository institutions domiciled in the fifty states of the United States,
the District of Columbia, Puerto Rico, and U.S. territories and possessions. Include deposits with U.S.chartered bank subsidiaries and U.S. branches and
agencies of foreign banks and foreign official banking
institutions in the United States. Report all such balances gross of any reciprocal balances.
Line Item 1(b) Balances due from banks in foreign
countries.
Line Item 1(b)(1) Foreign branches of U.S. banks.
Report all balances on deposit with non-U.S. branches
of U.S. banks; exclude balances with non-U.S. subsidiaries of U.S. banks and report in Item 1(b)(2). Also
exclude balances with branches of non-U.S. banks that
are domiciled in the United States and report in
Item 1(a). Report all such balances gross of any reciprocal balances.
Line Item 1(b)(2) Other banks in foreign countries.
Report all balances on deposit with non-U.S. commercial banks, savings banks, discount houses, and similar nonFR 2314

U.S. domiciled institutions that accept deposits.
Include balances with non-U.S. subsidiaries of U.S.
banks. Report balances with non-U.S. branches of U.S.
banks in item 1(b)(1). Report all such balances gross of
any reciprocal balances.
Line Item 2 Balances due from foreign central banks.
Report all balances with foreign central banks. Refer to
the FR Y-9C glossary for the definition of ‘‘foreign
central bank.’’
Line Item 3 Equity interest in nonrelated
organizations.
Include the total value of all equity investments other
than those in related organizations.
Report equity investments that represent 20 percent to
50 percent of the voting shares of an organization
using the equity method of accounting.
Line Item 4 Assets held in trading accounts (excluding
trading account balances with related organizations).
Organizations that regularly underwrite or deal in securities and other assets for resale or that acquire securities and other assets with the intent to resell in order to
profit from short-term price movements shall report in
items 4(a) through 4(g) the value of such assets. Consistently value assets held in trading accounts at fair
value. Exclude the carrying value of any available-forsale securities or of any loans or leases that are held for
sale. Exclude all trading account balances with related
organizations, and report in Schedule BS, Item 9, ‘‘Balances due from related organizations, gross’’ or Schedule BS, Item 16, ‘‘Balances due to related organizations, gross.’’ Refer to the FR Y-9C instructions and
glossary for further information.
BS-M-1

March 2009

Schedule BS-M

Line Item 4(a) Securities of U.S. government and its
agencies.
Report the fair value of securities issued by the U.S.
government and all other U.S. government agencies
and official institutions thereof.
Line Item 4(b) Securities of all foreign governments
and official institutions.
Report the fair value of all debt securities issued by
foreign governments (central, state, provincial and
local), including their ministries, departments and
agencies. Refer to the FR Y-9C glossary for the definition of ‘‘foreign government.’’ Exclude bankers’ acceptances accepted by the reporting organization and held
in its trading account when the account party is a foreign government or official institution. Also exclude
securities issued by nonbank corporations and enterprises which are foreign-government-owned.
Line Item 4(c) Equity securities.
Report the fair value of all equity securities held in the
organization’s trading account. Exclude:

(1) Equity securities that have been purchased for
investment or acquired for debts previously
contracted.
(2) Equity securities that do not have readily determinable fair values (report such securities at historical cost in Schedule BS, item 7, ‘‘All other
assets’’).
Line Item 4(d) Corporate bonds, notes, and debentures.
Report the total value of debt securities issued by
corporations.
Line Item 4(e) Revaluation gains on interest rate,
foreign exchange rate, and other commodity and equity
contracts.
Report the amount of revaluation gains (that is, assets)
from the ‘‘marking to market’’ of interest rate, foreign
exchange rate, and other off-balance-sheet commodity
and equity contracts held for trading purposes (in compliance with ASC Subtopic 210-20, Balance Sheet –
Offsetting (formerly FASB Interpretation No. 39, Offsetting of Amounts Related to Certain Contracts). Refer
to the FR Y-9C instructions for further information.
BS-M-2

September 2011

Line Item 4(f) Loans.
Report the fair value of all loans held for trading
reported in Schedule BS, item 4.
Line Item 4(f)(1) Loans that are past due 90 days or
more.
Report in the appropriate subitem the total fair value
and unpaid principal balance of all loans held for trading included in item 4(f) that are past due 90 days or
more as of the report date.
Line Item 4(f)(1)(a) Fair value.
Report the total fair value of all loans held for trading
included in item 4(f) that are past due 90 days or more
as of the report date.
Line Item 4(f)(1)(b) Unpaid principal balance.
Report the total unpaid principal balance of all loans
held for trading included in item 4(f) that are past due
90 days or more as of the report date.
Line Item 4(g) Other (including commercial paper).
Report the total value of all assets held in trading
accounts that cannot be properly reported in items
4(a) through 4(f). Include certificates of deposit, bankers acceptances, and commercial paper.
Line Item 5 Other assets.
Line Item 5(a) Accrued interest receivable.
Report the amount of interest, commissions, and other
income earned or accrued on loans, securities, and
other earning assets and applicable to current or prior
periods that has not yet been collected.
Line Item 5(b) Prepaid expenses.
Report the amount of all expenses prepaid and applicable as a charge against operations in future periods.
Line Item 5(c) Net deferred tax assets.
Report the cumulative tax effect of all deductible
tempo- rary differences, operating loss carryforwards,
and tax credit carryforwards in accordance with
GAAP. Report the net amount after offsetting deferred
tax assets (net of valuation allowance) and net deferred
tax liabilities measured at the report date for a particular tax jurisdiction if the net result is a debit balance. If
the result for a particular tax jurisdiction is a net credit
FR 2314

Schedule BS-M

balance, report the amount in item 8(b), ‘‘Net deferred
tax liabilities.’’
Line Item 5(d) Accounts receivable.
Report the amount owed to the subsidiary in the form
of regular accounts or written promissory notes to be
collected in the future arising from the sale of goods
and services. Exclude notes with a maturity of more
than one year.
Line Item 5(e) Intangible Assets.

(1) Business combinations accounted for under the
pur- chase method in accordance with ASC
Topic 805, Business Combinations (formerly
FASB Statement No. 141(R), Business Combinations), and
(2) Acquisitions of portions or segments of another
institution’s business, such as branch offices,
mortgage servicing portfolios, and credit card
portfolios
Report the carrying value of mortgage servicing assets,
i.e., the unamortized cost of acquiring contracts to
service loans secured by real estate that have been securitized or are owned by another party, net of any
related valuation allowances. Also report in this item
the unamortized amount of other specifically identifiable intangible assets such as purchased credit card
relationships (PCCRs), core deposit intangibles, favorable leasehold rights, and goodwill. Goodwill represents the excess of the cost of a company over the sum
of the fair values of the tangible assets and identifiable
intangible assets acquired less the fair value of liabilities assumed in a business combination accounted for
as a purchase. Also, include servicing assets other than
mortgage servicing assets.
Line Item 6 Deposits.
Report the total amount of deposits held by the subsidiary. Include both noninterest-bearing and
interest-bearing

FR 2314

deposits. Such deposits may take the form of passbook
accounts, certificates of deposit, NOW accounts,
money market deposit accounts, time deposits, open
accounts, or similar deposits. Include all deposits
regardless of customer or form.
Exclude all deposits due to related institutions. Report
such deposits in Schedule BS, item 16.
Line Item 7 Balances due to U.S. and foreign banks.
Report all deposit balances of all banks headquartered
and chartered in the United States and foreign countries. Include both U.S. and non-U.S. branches of U.S.
commercial banks (including IBFs established by U.S.
commercial banks). Also include both U.S. and nonU.S. branches of foreign banks.
Line Item 8 Other liabilities.
Line Item 8(a) Expenses accrued and unpaid.
Report the amount of interest on deposits, interest on
nondeposit liabilities, income taxes, and other expenses
accrued through charges to expense during the current
or prior periods, but not yet paid or credited to a
deposit account.
Line Item 8(b) Net deferred tax liabilities.
Report the cumulative tax effect of all taxable temporary differences, in accordance with GAAP. Report the
net amount after offsetting deferred tax assets and net
deferred tax liabilities measured at the report date for a
particular tax jurisdiction if the net result is a credit
balance. If the result for a particular tax jurisdiction is
a net debit balance, report the amount in item 5(c).
Line Item 8(c) Accounts payable.
Report the amount due from the reporting subsidiary
for the purchase of goods and services.

BS-M-3

September 2011

Notes to the Financial Statements

This section has been provided to allow banking organizations the opportunity to provide additional explanations
of the content of specific items in the subsidiary’s financial statements. The reporting banking organization should
include any transactions reported on the subsidiary’s financial statements that it wishes to explain that are material
in amount and cannot be disclosed separately in the existing line items.
Report in the space provided the financial statement and line item for which the banking organization is specifying
additional information, a description of the transaction and, in the column provided, the dollar amount associated
with the transaction being disclosed.

FR 2314 and FR 2314S

NOTES-1

March 2007