Office of Thrift Supervision

Office of Thrift Supervision  

Financial Reporting Division

P.O. Box 619027

Dallas, TX 75261‐9027

Fax: 972.277.9596

http://www.ots.treas.gov

E‐mail General Questions:

tfr.instructions@ots.treas.gov

EFS Helpline:

efs‐info@ots.treas.gov

Tollfree: 1.866.314.1744

Monthly Cost of Funds (COF) Friday, July 30, 2010

Thrift Financial Reports (TFR) Friday, July 30, 2010

Consolidated Maturity Rate (CMR) Monday, August 16, 2010

Holding Company (HC) / HOLA 10(l)   Monday, August 16, 2010

Branch Office Survey (BOS) Monday, August 23, 2010

Report Filing Deadlines

The latest update of the OTS Electronic Filing System version 7.7 must be downloaded via

EFS‐Net and applied to your workstation prior to preparing and transmitting your June

2010 reports.  From the main EFS screen, click [Transmit] and select [Download Notices and

Software Updates]. Click [Next>>], [EFS‐Net] and the gray bar to [Log in to my Internet  

connection]. Under [Available Software Updates for Download], click the link for

EFS_770_Setup.exe.    Select to [Print Instructions] and follow them carefully to download

and apply the software update to your workstation. Contact the EFS Helpline if you need

additional assistance.

Electronic Filing System version 7.7  

Financial Reporting Bulletin 

June 2010 

Inside this issue:

Assessment Billing  

  Invoices 2

Financial Reports    

  Subscriber 4.5 & 5.0   2

Business Contact  

  Information 3

OTS Website &        

  Subscription Service 3

Import Line Item Values 4

2010 Branch Office  

  Survey 4

June 2010 Instruction

Updates (continued) 2

September 2010

Changes 5

The attached TFR instruction pages including the General Instructions and Glossary were

updated for clarification and codification purposes including:  

Schedule SO—Other Noninterest Income

Code 18 was added to the June TFR instructions for use with Other Noninterest Income line

items SO489, SO495, or SO497.   The code will be used to report the excess of fair value

over cost of net assets acquired in a purchase business combination (negative goodwill)

recognized in earnings at the date of combination. This data was previously reported in

SO811, Extraordinary Items, Net of Tax.

Schedule CCR—Consolidated Capital Requirement

The instructions for schedule CCR were updated to reflect the reporting of: capital enforce‐

ment related requirements, clarification for reporting notes and obligations of the FDIC

(including covered assets), prepaid assessments of the FDIC deposit premiums, and loss      

sharing agreements.

June 2010 Instruction Updates
Financial Reports Subscriber versions 4.5 and 5.0

Financial Reporting Bulletin

June 2010

“The assessment

billing invoices will be

available solely through the

Financial Reports

Subscriber (FRS). The

invoices will NOT be

mailed.“

The latest CD release of the EFS software dated March 22,

2010, contains the full application of Financial Reports        

Subscriber (FRS) versions 4.5 and 5.0. Both versions of the FRS

software enable thrifts to download their quarterly Uniform

Thrift Performance Report (UTPR), Interest Rate Risk (IRR)   

reports and their semi‐annual Assessment Billing Invoices.  

The programming technologies of earlier versions of FRS will

become obsolete on December 31, 2010. You can continue to

utilize the legacy FRS 4.5 through December 31st.  This should

allow sufficient time for you to transition to the new FRS 5.0.  

The release of Financial Reports Subscriber (FRS) 5.0 involves a

complete rewrite of FRS in Microsoft’s newer .NET language.

This technology includes a dedicated administrative account  

which is used strictly for administering and authorizing users'

accounts and privileges.  Anyone downloading the UTPR, IRR or

Assessment Billing Invoices must be registered on the new soft‐

ware with their Windows login ID.

For documentation on installing and setting up the login       

accounts for FRS 5.0, insert the EFS 7.6 CD, and from the main

screen of the installation wizard, click on [Ready to Install 5.0?]

then [Getting Started in Financial Reports Subscriber 5.0 (read

first)].    Print and carefully review the instructions and screen

shots. If necessary, you may need to involve your network   

administrators or in‐house/contract IT personnel for assistance.  

Page 2

Assessment Billing Invoices

Within the next three weeks, your July 2010 Office of Thrift Supervision (OTS) assessment     

invoice will be available through the Financial Reports Subscriber (FRS) software. The amount

due, as indicated on the invoice, will be collected on Friday, July 30, 2010. The July 2010 semi‐

annual assessment covers the period July 1 through December 31, 2010.

The semi‐annual savings association and holding company rates remain unchanged from those

published in Thrift Bulletins TB 48‐28 and TB 48‐27. Please refer to the related thrift bulletin

links if you have additional questions:

TB 48‐28  http://files.ots.treas.gov/84304.pdf

TB 48‐27  http://files.ots.treas.gov/84302.pdf

NOTE: The assessment billing invoices will be available solely through the Financial Reports

Subscriber (FRS). The invoices will NOT be mailed. The FRS is available to all thrifts and HOLA

10(l) holding companies. OTS‐regulated thrift holding companies will be able to obtain invoices

from its thrift financial reporter—the same individual currently using the FRS.   

If you need assistance with FRS, please contact the OTS EFS Helpline at toll free

1.866.314.1744 or email to efs‐info@ots.treas.gov.

If you have any other questions regarding the assessment process, please contact OTS         

Financial Operations: Savings Associations at (202) 906‐6780 or Holding Companies at (202)

906‐7205.   

The June 2010 TFR Instructions have been updated to include FASB’s Accounting Standards Codification (“Codification”) terminol‐

ogy. This follows the Codification updates to the March 2010 TFR Form.  FASB made the Codification updates effective on July 1,

2009. The Codification represents the single source of authoritative nongovernmental U.S. generally accepted accounting principals

(GAAP), except for rules and interpretive releases of the SEC which will remain as sources of authoritative GAAP.  The Codification

includes eight main topics and approximately 90 subtopics.  In general, the TFR Form and Instructions include Codification termi‐

nology without specifically citing the Codification reference.

FASB’s Accounting Standards Codification
Financial Reporting Bulletin

June 2010

Page 3

Visit the OTS website regularly and sign up for the OTS      

subscription service under [News & Events] to keep informed

on  topics of interest related to financial reporting such as:  

5 Supervision Issuances—OTS supervisory guidance for

examiners, institutions and thrift holding companies:

• CEO Memos/Letters—Supervisory memos from OTS

to the Chief Executive Officers of all OTS‐regulated

thrift institutions

• Directors Orders (DO)– A searchable list that in‐

cludes application approval orders and related  

documents

• Regulatory Bulletins (RB)‐OTS directives to its regu‐

latory workforce clarifying regulations, or specifying

guidelines and procedures

• Thrift Bulletins (TB)– Directives by the OTS to thrift

institutions providing clarifications of regulations or

laws, or specifying guidelines and procedures

• Transmittal Letters (TR)– Transmittals of Federal

Register Notices from other agencies that affect

thrifts

5 Legal—Laws & Regulations:

• Proposed & Final Rules– View rules open and closed

for comment for the past 12 months

• Legal Opinions from the OTS Office of Chief Counsel

5 Publications and Data—Annual report, audit reports,     

report filing forms, instructions and bulletins:   

• Thrift Financial Reports‐TFR instructions and Q&As,

news and filing information, report forms and       

bulletins, public availability, etc.

• Industry Performance–Quarterly information on the

performance of the U.S. thrift industry including earn‐

ings and profitability, return on assets, mortgage

originations, asset quality and capital  

• Statistical Releases– Cost of Funds, Interest Rate Risk,

TFR Aggregated Data, etc.

Review our privacy policy: The OTS does not collect or store

information about those who visit our website, unless you

identify yourself for response to an inquiry or request.   

OTS Website & Subscription Service

http://www.ots.treas.gov

All the contacts for your institution are collected from the EFS software. Please take a few minutes to verify your information:

Prior to transmitting your reports, review and update the list of contacts shown under [Institution Setup].  Verify the primary and

secondary Emergency Contacts and those designated to receive the FinCEN 314(a) requests. In order to facilitate the distribution of

business correspondence from the OTS to the appropriate personnel at your institution, please confirm the CEO, Thrift and Holding

Company Regulatory contacts and the listing of Report Preparers.

After you have transmitted your reports via EFS‐Net, click [Show] under the heading "My EFS Notification Recipients." Enter your  

e‐mail address and signup yourself and anyone else who wishes to receive e‐mail notifications of late‐breaking news and pertinent

information from the OTS Financial Reporting Division (FRD).  Users who do not register to receive e‐mail notifications should log

onto EFS‐Net regularly to check for software updates, notices and/or bulletins from FRD.  

Business Contact Information
Financial Reporting Bulletin

June 2010

Page 4

The Branch Office Survey (BOS) is an annual report of branch office deposits and escrow

data. All OTS‐regulated thrifts with one or more facilities that    accepted deposits as of   

June 30, 2010, are required to file the Branch Office Survey. Trust‐only institutions and

thrifts reporting zero (0) total deposits on TFR line SC710 are exempt from filing the BOS.  

The BOS filing deadline is Monday, August 23, 2010 for June 2010 data. You can prepare

and transmit your BOS report at any time after you have submitted your June 2010 Thrift

Financial  Report (TFR).  Electronic amendments to the 2010 BOS report are due to the OTS

no later than Wednesday, September 30, 2010. Copies of the BOS report form (OTS Form

248) and instructions for preparing the BOS using the OTS Electronic Filing System (EFS)

software are available at:

http://www.ots.treas.gov/?p=BranchOfficeSurvey

The Office of Thrift Supervision provides the BOS data directly to the FDIC for publication

on their website. OTS‐regulated institutions do not file the Summary of Deposits report

with the FDIC.

For assistance with downloading and preparing the Branch Office Survey, contact Cheyann

Houts at cheyann.houts@ots.treas.gov or (972) 277‐9617.

2010 Branch Office Survey

“All OTS‐regulated thrifts

with one or more facilities

that  accepted deposits as

of June 30, 2010, are

required to file the Branch

Office Survey.”

To correct the data, click on the yellow import field and deter‐

mine if the amount entered on the line item differs from the

calculated value displayed in RED at the top of the report

form. To import the value shown in red, press the [F7] key and

hit [Return].

• When amending your TFR, the same thing happens. If you

amend a field and/or total line item in Schedule SC that

populates an import field in another schedule, the change

made in SC will not carry forward to the related field.

Before you transmit your amendments, you should scroll

through the report and review the amounts reported on each

of the yellow import cells: VA105, VA108, SI600, SI662,

CCR265, CCR270, CCR285, CCR27, CCR80 and CCR840. Click on

an individual line item and if a calculated value appears in RED

at the top of the screen, press [F7] to import the data.   You

must then click the diskette icon to save your changes to the

database and rerun your edit checks.  

Import Line Item Values ‐ F7 key

Individual line items within the EFS software are color‐coded

as follows:

Data entry

Calculated totals that cannot be manually changed

Imported values that can be manually overwritten

Import fields shaded in yellow on Schedules VA, SI and CCR are

populated by data entered on other line items.    You can

manually change the data on these lines, however, once you

have, you must remember:

• Prior to transmitting your TFR, if you change a field and/or

total line item in Schedule SC  that populates a calculated

import field in another schedule (for example, line SC60

Total Assets), the change made in SC will not carry for‐

ward to the related import field (such as line CCR27).   

Yellow

Green

Gray
Financial Reporting Bulletin

June 2010

Page 5

Background

On June 22, 2010, the FDIC adopted a final rule extending the Transaction Account Guarantee (TAG) component of the Temporary

Liquidity Guarantee Program for six months, through December 31, 2010, with the possibility of extending the program for up to

an additional 12 months without further rulemaking. For institutions choosing to remain in the TAG Program, the final rule modi‐

fied the basis for calculating assessments to one that uses average daily balances in TAG‐eligible accounts beginning in the third

quarter of 2010.

Reporting Requirements

At present, institutions participating in the TAG Program report the amount and number of qualifying noninterest‐bearing transac‐

tion accounts of more than $250,000 as of the quarter‐end report date in Thrift Financial Report (TFR) Schedule DI, items DI570

and DI575.  Beginning with the September 30, 2010, TFR the total dollar amount of TAG‐eligible accounts and the total number of

accounts must be reported as average daily balances.

The amounts to be reported as daily averages are the total dollar amount of the noninterest‐bearing transaction accounts, as    

defined in 12 C.F.R. 370.2(h), of more than $250,000 for each calendar day during the quarter divided by the number of calendar

days in the quarter. For days that an office of the reporting institution is closed (e.g., Saturdays, Sundays, or holidays), the amounts

outstanding from the previous business day would be used. The total number of accounts to be reported should be calculated on

the same basis.

Documentation supporting the amounts used in the calculation of the average daily balance amounts must be retained and be

readily available upon request by the FDIC or the Office of Thrift Supervision.  In addition, all insured depository institutions that

do not opt out of the TAG Program must establish procedures to gather the necessary daily data beginning July 1, 2010.

Rounding

The Average Daily Number of Accounts must be reported to two decimal places.

Example 1 ‐ What accounts do I include?

In this example, an institution has only 10 accounts that are potentially TAG‐eligible [as defined in 12 C.F.R. 370.2(h)] on any day

during the quarter.  Due to fluctuating balances, accounts are above and below the $250,000 threshold throughout the quarter.  

The institution will determine for each day during the quarter the balances and number of accounts that are TAG‐eligible (that is,

over $250,000) and include only those accounts in their calculations:

Schedule DI Reporting Requirements for Institutions  

Participating in the FDIC Transaction Account Guarantee Program

Effective September 30, 2010

September 2010 Changes
Financial Reporting Bulletin

June 2010

Page 6

Qualifying Noninterest‐

Bearing Transaction

Accounts

July 1 July 2 July 3

(Saturday)

July 4

(Sunday)

July 5

(Holiday)

July 6

92 Day Totals

Account A 275,000 75,000 75,000 75,000 75,000 25,000

Account B 50,000 450,000 450,000 450,000 450,000 200,000

Account C 275,000 225,000 225,000 225,000 225,000 1,000,000

Account D 750,000 1,500,000 1,500,000 1,500,000 1,500,000 2,000,000

Account E 3,000,000 3,250,000 3,250,000 3,250,000 3,250,000 50,000

Account F 450,000 35,000 35,000 35,000 35,000 3,000,000

Account G 600,000 75,000 75,000 75,000 75,000 500,000

Account H 25,000 425,000 425,000 425,000 425,000 255,000

Account I 450,000 30,000 30,000 30,000 30,000 375,000

Account J 600,000 600,000 600,000 600,000 600,000 2,500,000

Total Amount of

TAG‐Eligible Accounts

(i.e., accounts with

balances over

$250,000)

6,400,000 6,225,000 6,225,000 6,225,000 6,225,000 9,630,000 644,000,000

Total Number of

TAG‐Eligible Accounts

(i.e., number of ac‐

counts with balances

over $250,000)

8 5 5 5 5 7 554 Continue through September 30 (day 92).

Highlighted accounts are TAG‐eligible (over $250,000) on that day.

Using the information in the table above, the average daily amount would be calculated as follows:

The sum of “Total Amount of TAG‐Eligible Accounts”

for each day in the quarter ($644,000,000) =

Average Daily Amount of TAG‐Eligible

Accounts to be Reported in the TFR

Number of days in the quarter (92) (7,000,000)

The average daily number of accounts would be calculated as follows:

The sum of “Total Amount of TAG‐Eligible Accounts”

for each day in the quarter (554) =

Average Daily Amount of TAG‐Eligible

Accounts to be Reported in the TFR

Number of days in the quarter (92) (6.02)

The institution’s resulting TAG assessment base would equal $5,495,000 (this amount is calculated by the FDIC and would not be

reported in the TFR):

$7,000,000 – ($250,000 x 6.02) = $5,495,000
Financial Reporting Bulletin

June 2010

Page 7

Example 2 – If I have accounts that are not open or TAG‐eligible for the entire quarter, how do I report?

For this example, assume that the institution has only a single qualifying account and that this is a 90 day quarter.

If the qualifying account had a balance of zero for 60 days and a balance of $1,200,000 for 30 days, the average daily amount to be

reported in the TFR would be $400,000:

($0 x 60 days) + ($1,200,000 x 30 days)   = $400,000

90 days    

The average daily number of accounts to be reported in the TFR would be 0.33:

(0 accounts x 60 days) + (1 account x 30 days) = 0.33 accounts

90 days    

The institution’s resulting TAG assessment base would equal $317,500 (this amount is calculated by the FDIC and would not be

reported in the TFR):

$400,000 – ($250,000 x 0.33) = $317,500

Example 3 – If I have TAG‐eligible accounts during the quarter, but the average daily amount is less than $250,000, how do I  

report?

If the average daily amount is less than $250,000, the amount should still be reported in the TFR and an assessment will apply

based on the fact that TAG‐eligible accounts were present during the quarter.

For this example, assume that the institution has only a single qualifying account and that this is a 90 day quarter.

If the qualifying account had a balance of $100,000 for 45 days and a balance of $400,000 for 45 days, the account would only be

included in the calculations for those 45 days on which the balance was over $250,000.  The account would not be included in the

calculations when the balance was $250,000 or less.  The average daily amount to be reported in this example would be $200,000:

($0 x 45 days) + ($400,000 x 45 days) = $200,000

90 days    

The average daily number of accounts to be reported would be 0.50:

(0 accounts x 45 days) + (1 account x 45 days) = 0.50 accounts

90 days    

The institution’s resulting TAG assessment base would equal $75,000 (this amount is calculated by the FDIC and would not be     

reported in the TFR):

$200,000 – ($250,000 x 0.50) = $75,000
Financial Reporting Bulletin

June 2010

Page 8

Example 4 ‐ How do I handle joint accounts or other accounts which have more than $250,000 of basic FDIC insurance coverage?

An institution may exclude noninterest‐bearing transaction accounts with a balance of more than $250,000 if the entire balance in

the account is  fully insured  under the FDIC’s  deposit insurance rules, such  as  joint account  relationship rules or “pass‐through”  

insurance coverage rules. In noninterest‐bearing transaction accounts with a balance of more than $250,000 where the entire   

balance is not fully insured,  an institution  may exclude any amounts  over $250,000  that are  otherwise insured under the FDIC’s

deposit insurance rules. These amounts may be excluded to the extent that they can be determined by the institution and fully

supported in the institution’s workpapers for this report.

Qualifying Noninterest‐Bearing

Transaction Accounts

Account

Balance

FDIC Insurance

Limit

TAG Program Reporting

Mr. John Smith 300,000 250,000 The entire account balance is included in TAG

Mr. and Mrs. John Smith 300,000 500,000

Because the account balance would be fully in‐

sured under deposit insurance rules, coverage

under the TAG Program is not needed.  The ac‐

count and the entire account balance may be ex‐

cluded from TAG Program reporting calculations.

Otherwise, the entire account balance is included

Mr. and Mrs. James Jones 1,000,000 500,000

The additional coverage afforded by the joint ac‐

countholder may be excluded from TAG Program

reporting calculations.  The institution may report

$750,000 for this account. Otherwise, the entire

account balance is included in the TAG Program

reporting calculations.
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 0$5&+ 2010 

 GENERAL INSTRUCTIONS 101 

GENERAL INSTRUCTIONS 

Throughout these instructions, you and your refers to the reporting savings association and its 

consolidated subsidiaries; we and our refers to the Office of Thrift Supervision. 

1. REQUESTS FOR INFORMATION OR ASSISTANCE 

Please direct all requests for assistance in Thrift Financial Report (TFR) preparation to your assigned 

financial reporting analyst in the Office of Thrift Supervision (OTS) Financial Reporting Division (FRD), 

Dallas, Texas. A list of Financial Reporting Division contacts is on the OTS web site and is included in 

most Financial Reporting Bulletins. If you do not know the name or phone number of your assigned FRD 

analyst, call 972-277-9618. If you have questions concerning the EFS (Electronic Filing System) software 

or transmission, call the EFS Helpline Message Center at 866-314-1744 or email 

efs-info@ots.treas.gov. 

OTS maintains a series of TFR questions and answers on its web site at www.ots.treas.gov. If you have 

a question for which you would like an e-mail response, please submit it to your financial reporting analyst 

or to tfr.instructions@ots.treas.gov.

The TFR Form, Instructions, and Financial Reporting Bulletins can be viewed and printed from the OTS 

web site at www.ots.treas.gov

 

2. SCHEDULES 

The TFR comprises the following schedules: 

NS Optional Narrative Statement: Statement by institution management concerning issues 

relevant to the TFR 

SC Consolidated Statement of Condition: Assets, liabilities, and equity capital 

SO Consolidated Statement of Operations: Income and expense 

VA Consolidated Valuation Allowances and Related Data: Reconciliation of valuation 

allowances, charge-offs and recoveries, and other data on troubled assets 

PD Consolidated Past Due and Nonaccrual: Information on delinquent and nonaccrual loans 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

LD Loan Data: Information on high loan-to-value loans secured by 1-4 family residential 

properties without PMI or government guarantee 

CC Consolidated Commitments and Contingencies: Information on commitments and 

contingencies 

CF Consolidated Cash Flow Information: Information on mortgage, deposit, and other activity 

affecting cash flow during the quarter 

DI Consolidated Deposit Information: Information on deposits and escrows 

SI Consolidated Supplemental Information: Information on QTL, loans to insiders, reconciliation 

of equity capital, transactions with affiliates, mutual fund and annuity sales, average balance 

sheet data, and other data 

SQ Consolidated Supplemental Questions: Questions concerning structural and other activity 

during the quarter 

SB Consolidated Small Business Loans: Data completed quarterly as of March 31, 2010 

pursuant to guidance from the Secretary of the Treasury notwithstanding Section 122 of the 

FDIC Improvement Act, Reference U.S. Department of the Treasury Press Release, tg-58, 

March 16, 2009, Unlocking Credit for Small Businesses Fact Sheet 

FS Fiduciary and Related Services: Data on trust assets and activities. Summary data is 

completed quarterly; more detailed information is reported annually at December 31st 

HC Thrift Holding Company: Summary of holding company financial data for both the parent only 

and consolidated 

CCR Consolidated Capital Requirement: Balances necessary to compute the OTS minimum 

capital requirement 

FV Consolidated Assets and Liabilities Measure at Fair Vale on a Recurring Basis 

RM Annual Supplemental Consolidated Data on Reverse Mortgages: Data completed only for the 

calendar quarter ending December 31 starting with December 31, 2010 

CMR Consolidated Maturity and Rate: Information on interest rate and repricing/maturity 

characteristics of selected balance-sheet and off-balance-sheet items 

3. FILING DEADLINES 

The filing deadline for all schedules except Schedules HC and CMR is no later than the 30th day following 

the end of the reporting period. The filing deadline for Schedules HC and CMR is no later than the 45th day 

following the end of the reporting period. 

The Filing Schedule for Regulatory Reports is included as an attachment to the quarterly Financial 

Reporting Bulletin that is e-mailed to institution report preparers. The Filing Schedule is also available on 

the OTS web site at www.ots.treas.gov. 

4. FILING THE TFR 

OTS provides all savings associations with EFS (Electronic Filing System) software for filing the TFR. 

The software facilitates the preparation, edit, and transmission of the TFR and other financial reports. 

Please direct your questions concerning EFS to the EFS Helpline Message Center at 866-314-1744 or by 

email to efs-info@ots.treas.gov.

102 GENERAL INSTRUCTIONS 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

 GENERAL INSTRUCTIONS 103 

All institutions regulated by OTS as of the last day of the quarter are required to file the TFR for the entire 

quarter. If the documentation submitted to OTS by an institution reflects that the effective date of a 

charter conversion to OTS-regulation from another banking agency is either during the quarter or prior 

to the close of business on the last day of the quarter, the institution is required to file a TFR for that 

quarter. An institution with a charter conversion from OTS to another banking regulator or merger with 

a non-OTS regulated institution, effective after close of business on the last day of the quarter, is required 

to file a TFR for the entire previous quarter. Institutions changing banking charters are never required to 

file a partial report to their former banking regulator; they must file a financial report only with the agency 

regulating them on the last day of the quarter, reporting activities for the entire quarter. Therefore, an 

institution that is required to file a TFR is not required to file a Call Report and vice versa. If a newly 

formed OTS-regulated institution opens for business at any time during the quarter, even if on the last day 

of the quarter, it is required to file a TFR for the period of operations during the quarter. 

5. RECORD RETENTION 

You should retain at least one copy of your completed TFR for reference; do not send paper copies to 

OTS. Section 7(b)(5) of the Federal Depository Institutions Act requires each insured depository 

institution to maintain records for verifying the correctness of the institution’s insurance assessment for 

five (5) years from the date of filing. 

6. AMENDING THE TFR 

To have amendments included in the first public release of the OTS data file, you must transmit your TFR 

amendments within 45 calendar days of the end of the quarter; that is, within 15 days after the TFR filing 

deadline. Amendments submitted after the 45-day period should have the approval of FRD in Dallas, 

before transmission. In no case can OTS process amendments beyond 135 days after the end of the 

quarter. With every amendment you file, you should send a user note explaining the reason for the 

amendment.

You may correct material errors in prior-period TFRs in one of the following ways depending on the time 

period being corrected: 

1. If you can file an amendment within 135 days of the end of the quarter being corrected, transmit 

the amendment correcting the TFR in which the error occurred after you discuss it with your FRD 

analyst in Dallas. 

2. If the correction is to an income statement in a quarter that can no longer be amended and is 

within the current calendar year, include the correction with the current TFR in the same data field 

that would have carried it in the original report. If the adjustment distorts yields or results in 

negative numbers in fields that do not permit negatives, you may include the amendment in Other 

Noninterest Income, SO488, or Other Noninterest Expense, SO580. 

3. If the correction is to an income statement for a quarter from a prior calendar year that can no 

longer be amended, make the adjustment directly to retained earnings on SI668, Prior Period 

Adjustments. 

You must file TFR amendments electronically, rather than by phone or fax in order to automatically 

update your EFS files on your computer. Please direct questions regarding the electronic filing of 

amended TFRs to the EFS Helpline Message Center at 866-314-1744 or email efs-info@ots.treas.gov.

The amendment filing deadlines above also apply to amending Schedule CMR. All amendments to 

Schedule CMR must be submitted within 135 days of the end of the quarter. 

7. REPORTING BASIS 

Prepare the TFR on a consolidated basis in accordance with generally accepted accounting principles 

(GAAP) unless specifically stated otherwise, and based on calendar year reporting. Unless otherwise 

specified, all data is reported as of the end of the calendar quarter or in the case of income, expense, and 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

other activity data, for the period of one calendar quarter. Note that Schedule FS requires reporting 

income and expense on a calendar year-to-date basis. 

Report subordinate organizations that are not GAAP-consolidated subsidiaries using the equity or cost 

methods of accounting. Subordinate organization is defined by OTS regulation. It includes any 

corporation, partnership, business trust, association, joint venture, pool, syndicate, or other similar 

business organization in which a savings association has a direct or indirect ownership interest. It 

excludes an ownership interest that qualifies as a pass-through investment pursuant to 12 CFR § 560.32 

and is so designated by the reporting savings association. GAAP-consolidated subsidiaries as defined in 

12 CFR § 559.2 mean entities in which a savings association has a direct or indirect ownership interest 

and whose assets are consolidated with those of the savings association for purposes of reporting under 

GAAP. 

You should apply GAAP unless we specifically state otherwise in these instructions. Accordingly, the 

instructions for each data field reflect, to the extent possible, GAAP applicable to savings associations. 

Note, however, that financial statements of savings associations prepared in accordance with GAAP have 

flexible presentation formats and may require significantly less detail on a less frequent basis than the 

TFR. The TFR collects additional detail to facilitate supervision by the OTS and to provide uniform 

information on industry activities. Certain GAAP reporting and presentation concepts may not be 

consistent with the conventions and frequency of the TFR. In these cases, the TFR instructions override 

GAAP presentation practices. 

The amounts reported on the TFR must be readily reconcilable to the savings association’s books and 

records. 

8. EXEMPTION FROM FILING SCHEDULE CMR 

Savings associations with less than $300 million in assets and with risk-based capital ratios in excess of 

12 percent for two consecutive quarters are exempt from filing Schedule CMR. All savings associations 

newly regulated by the OTS are exempt from filing Schedule CMR for the first two quarters that they are 

under OTS regulation. 

You lose your exemption from filing Schedule CMR if you do not meet the exemption criteria for two 

consecutive quarters. You must file Schedule CMR beginning the quarter after the second consecutive 

quarter in which you do not meet the criteria. For example, you fail the criteria in March and June, 

therefore, you must file Schedule CMR for the September quarter, and each quarter thereafter until your 

OTS Regional Director reinstates the exempt status. 

You may also lose your exempt status if your OTS Regional Director requires you to file Schedule CMR. 

You must continue to file Schedule CMR until your OTS Regional Director reinstates the exemption in 

writing. 

9. TFR PREPARATION 

a. Round all dollar amounts to the nearest thousand. If any balance sheet data field or other balance as 

of the end of the reporting period is less than $500, enter a 1 in the data field to indicate that the 

amount is not zero. This does not apply to the data fields representing income, expense, and other 

activity. Where necessary for balancing purposes, make adjustments to the appropriate other

category. 

b. Data fields that we indicate in the instructions and forms as being deducted should not be input as 

negative; these data fields will be subtracted by EFS. Indicate these data fields as negative only 

when the instructions say that the netting of certain amounts within these data fields might result in an 

amount that should be added rather than subtracted. We identify these data fields in italics on the 

form and mention them in the accompanying instructions. 

c. You should check all data before and after input. Crosscheck data fields that should agree with other 

data fields. All edit failures indicated in EFS should be thoroughly verified and corrected where 

104 GENERAL INSTRUCTIONS 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

 GENERAL INSTRUCTIONS 105 

necessary prior to submission. Explain edit exceptions with the user note function of the filing 

software. 

d. Persons knowledgeable of the overall financial condition and operations of the savings association 

should review the final TFR. The Officers’ and Directors’ Certification at the front of the paper copy of 

the TFR must be signed by an officer and three directors of the savings association for each TFR 

submitted, including amendments. You must retain this certification form and have it available for 

inspection by OTS. 

e. Input into EFS (use institution setup, report preparer info) the name and telephone number of the 

person we should contact if questions arise concerning the TFR. This person should be familiar with 

OTS’s reporting requirements. When someone other than the savings association’s personnel 

prepares the TFR, the contact should be someone who can either answer questions or can quickly 

obtain such answers from savings association personnel. The name and address of the TFR contact 

that you enter is used for the mailing list to distribute quarterly TFR mailings. 
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THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

SCHEDULE SC – CONSOLIDATED STATEMENT 

OF CONDITION 

Throughout these instructions, you and your refers to the reporting savings association and its 

consolidated subsidiaries; we and our refers to the Office of Thrift Supervision. 

Complete this Statement of Condition, Schedule SC, on a consolidated basis from the savings 

association downward. Do not consolidate your holding company in this statement of condition. You 

should apply generally accepted accounting principles (GAAP) unless we specifically state otherwise in 

these instructions. 

ASSETS 

In general, report all assets net of all appropriate carrying value adjustments. Such adjustments include 

specific valuation allowances (SVAs), charge-offs, unamortized yield adjustments, unearned income, 

loans-in-process (LIP), and the accumulated gain or loss (change in fair value) on the asset attributable to 

the designated risk being hedged on a qualifying fair-value hedge. 

For the following assets that may be included on various lines on this schedule, also report the balances 

on Schedule SI: 

SI375, Financial Assets Held for Trading Purposes 

SI376, Financial Assets Carried at Fair Value through Earnings 

SI385, Available-for-Sale Securities 

SI387, Assets Held for Sale 

SI390, Loans Serviced for Others 

SI394, Pledged Loans 

SI395, Pledged Trading Assets 

SI402, Residual Interests in the Form of Interest-Only Strips 

SI404, Other Residual Interests 

(Do not include Servicing Assets on these Schedule SI line items, as they are not considered financial 

assets). 

 SCHEDULE SC 201 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

CASH, DEPOSITS, AND INVESTMENT SECURITIES 

The securities reported on SC130, SC140, SC180, SC182, and SC185 fall into one of the following 

categories: 

1. Held-to-maturity securities: Applies to debt securities only if there is a positive intent and ability 

to hold these securities to maturity. You must report held-to-maturity securities at amortized cost. 

2. Trading securities: Applies to securities purchased and held for sale in the near term. You must 

report trading securities at fair value, with unrealized gains or losses reported in earnings on 

SO485. 

3. Available-for-sale securities: Applies to securities not classified as trading or as held-tomaturity. You must report available-for-sale securities at fair value. The unrealized gains and 

losses of available-for-sale securities are excluded from earnings and reported, net of taxes, as a 

separate component of equity capital on SC860. 

SC11: Total 

The EFS software will compute this line as the sum of SC110 through SC191. 

SC110: Cash and Non-interest-earning Deposits 

Report the total amount of cash, cash items, and non-interest-earning deposits. 

Include: 

1. Non-interest-earning deposits in a bank or savings association under the control of a supervisory 

authority. 

2. Cash items in the process of collection, such as redeemed U.S. Savings Bonds. 

3. Checks or drafts in the process of collection that are drawn on another depository institution, 

Federal Reserve Bank, Federal Home Loan Bank (FHLBank), or the U.S. government. 

Do not include: 

1. Checks drawn against zero-balance accounts or accounts not routinely maintained with sufficient 

balances to cover checks drawn in the normal course of business. Report on SC710, Deposits. 

2. Federal Reserve Bank deposits earning interest. Include these deposits on SC118. 

3. All other accounts with credit balances that do not have the right of offset. Report on SC760, 

Other Borrowings. 

SC112: Interest-Earning Deposits In FHLBs 

Report all interest-earning checking accounts and time deposits (CDs) held with FHLBanks. 

Do not include: 

Accounts with credit balances that do not have the right of offset. Report on SC760, Other 

Borrowings, except for credit balances in zero-balance accounts, which are reported on SC710, 

Deposits. 

SC118: Other Interest-Earning Deposits 

Report all interest-earning checking accounts and time certificates held with banks and other depository 

institutions. 

SCHEDULE SC 202 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

Include: 

Federal Reserve Bank deposits earning interest. 

Do not include: 

Accounts with credit balances that do not have the right of offset. Report on SC760, Other 

Borrowings, except for credit balances in zero-balance accounts, which are reported on SC710, 

Deposits. 

SC125: Federal Funds Sold and Securities Purchased Under 

Agreements to Resell 

Include: 

1. The balance of excess Federal Funds invested. 

2. Securities purchased under agreements to resell that do not meet the criteria for sale treatment, 

and are therefore accounted for as secured lending arrangements, including dollar-repurchase 

and fixed-coupon agreements. 

Do not include: 

1. Term Federal Funds 

Treat as a commercial loan, not as federal funds sold any lending of immediately available funds 

where the loan has an original maturity of more than one business day, other than securities 

purchased under agreements to resell. Such transactions are sometimes referred to as Term 

Fed Funds. 

SC130: U.S. Government, Agency, and Sponsored Enterprise 

Securities 

Report nonmortgage debt instruments issued by the U.S. government, its agencies, and sponsored 

enterprises. 

Include: 

1. Interest-only and principal-only strips. 

2. U.S. Treasury bills, certificates, notes, and bonds. 

3. Nonmortgage debt issued by FHLBanks, Federal National Mortgage Association (Fannie Mae), 

Federal Home Loan Mortgage Corporation (Freddie Mac), and Government National Mortgage 

Association (Ginnie Mae). 

4. Federal agency debt securities, such as those of: Small Business Administration (SBA) 

nonmortgage pools, Tennessee Valley Authority (TVA), Federal Farm Credit Bank, Federal Land 

Bank, Federal Intermediate Credit Bank, Student Loan Marketing Association (Sallie Mae), and 

the Export-Import Bank. 

5. Financing Corporation (FICO) bonds. 

6. U.S. government and agency securities pledged as collateral on margin accounts for futures and 

options. 

Do not include: 

1. Investments in mutual funds that invest in U.S. government, agency, and sponsored enterprise 

securities. Report on SC140, Equity Securities Carried at Fair Value. 

2. Stock of FHLBanks. Report on SC510, Federal Home Loan Bank Stock. 

3. Equity securities issued by sponsored enterprises of the U.S. government, such as Freddie Mac 

preferred stock. Report on SC140. 

4. Securities issued by state and local governments. Report on SC180. 

 SCHEDULE SC 203 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

5. Securities purchased under a repurchase or dollar-repurchase agreement. Report on SC125, 

Federal Funds Sold and Securities Purchased Under Agreements to Resell. 

6. Mortgage-backed instruments and derivatives issued or guaranteed by Fannie Mae, Freddie Mac, 

or Ginnie Mae. Report on SC210 or SC217. 

SC140: Equity Securities Carried at Fair Value 

Report all investments in equity securities that are classified as available-for-sale or trading, and that are 

carried at fair value. 

Include: 

1. Common and preferred stock that has a readily determinable market value, including Freddie 

Mac and Fannie Mae stock. 

2. Shares of all mutual funds, including those restricting their investments to debt instruments, such 

as U.S. government, agency, and sponsored enterprise securities. 

Do not include: 

1. FHLBank stock. Report on SC510, Federal Home Loan Bank Stock. 

2. Other equity investments not carried at fair value, including ownership interests in unconsolidated 

subordinate organizations and entities designated as pass-through investments, even though 

they are not subordinate organizations. Report on SC540, Other Equity Investments Not Carried 

at Fair Value. 

3. Your association’s own treasury stock. Report as a reduction of capital on SC891, Other 

Components of Equity Capital. 

SC180: State and Municipal Obligations 

Report debt securities issued by state and local governments. 

SC182: Securities Backed By Nonmortgage Loans 

Report the outstanding balance, as determined in accordance with GAAP, of all securities collateralized 

by nonmortgage loans such as credit card loans and auto loans. 

SC185: Other Investment Securities 

Report investment securities and other instruments not reported on SC110 through SC182 or SC510 or 

SC540. 

Include: 

1. Investments in commercial paper and corporate debt securities. 

2. Promissory notes. 

3. Mortgage-backed bonds and notes. 

SC191: Accrued Interest Receivable 

Report accrued interest and dividends receivable on deposits and investment securities reported on 

SC110 through SC185. 

MORTGAGE-BACKED SECURITIES: 

Mortgage-backed securities fall into one of the following three categories: 

SCHEDULE SC 204 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

 SCHEDULE SC 205 

1. Held-to-maturity securities: Applies to mortgage-backed securities only if there is a positive 

intent and ability to hold these securities to maturity. You report held-to-maturity mortgagebacked securities at amortized cost. 

2. Trading securities: Applies to mortgage-backed securities that you hold for sale in the near 

term. Report them at fair value, with unrealized gains or losses reported in earnings, on SO485. 

3. Available-for-sale securities: Applies to mortgage-backed securities not classified as trading or 

as held-to-maturity. Report available-for-sale securities at fair value. Report the accumulated 

unrealized gains and losses on such securities, net of taxes, as a separate component of equity 

capital on SC860. 

Adjust the balances in this section for: 

1. Discounts and premiums on the purchase of the securities. 

2. Specific valuation allowances. 

3. The accumulated fair value gain or loss on the security attributable to the designated risk being 

hedged on a qualifying fair-value hedge. 

Do not adjust the balances in this section for: General valuation allowances. Report on SC229. 

Do not include: 

Mortgage-backed securities purchased subject to repurchase agreements. Report on SC125, 

Federal Funds Sold and Securities Purchased Under Agreements to Resell. 

SC22: Total 

The EFS software will compute this line as the sum of SC210 through SC228. 

PASS-THROUGH: 

A security must meet all of the following criteria to be classified as a pass-through security: 

1. The security is collateralized by mortgage loans. 

2. The security provides each investor with a proportional ownership interest in the underlying 

collateral. 

3. Payments received by the issuer are passed through to the investor proportionate to ownership 

interest and with the same timing with which they are received. 

You should report a security that meets item 1 but not 2 or 3 on SC217, SC219, or SC222, unless it is a 

mortgage-backed bond, in which case you should report it on SC185, Other Investment Securities. You 

should report a security collateralized by loans that meets items 2 and 3 but does not meet item 1 on 

SC182, Securities Backed by Nonmortgage Loans. Report a debt security that does not meet any of the 

above or meets only item 2 or item 3, but not both, on SC185, Other Investment Securities, except for 

those government securities reported on SC130 and SC180. 

If the subordinate piece of a senior-subordinated security (1) exists solely for the purpose of credit 

enhancements and not for redirecting cash flows, (2) is no larger than necessary to provide the credit 

enhancement, and (3) meets the criteria of mortgage pass-through securities, above, then the senior 

piece is essentially a pass-through security, and you should report it in this section. 

Include pass-through securities collateralized by home equity mortgages. 

SC210: Insured or Guaranteed by an Agency or Sponsored Enterprise 

of the U.S. 

Report all mortgage pass-through securities insured or guaranteed by an agency or sponsored enterprise 

of the United States.
0$5&+7+RIFT FINANCIAL REPORT INSTRUCTION MANUAL

SCHEDULE SC 206 

Include: 

1. Freddie Mac participation certificates. 

2. Ginnie Mae and Fannie Mae pools. 

Do not include: 

1. Fannie Mae and Freddie Mac bonds. Report on SC130, U.S. Government, Agency, and 

Sponsored Enterprise Securities. 

2. Mortgage derivatives, including CMOs collateralized by Fannie Mae, Ginnie Mae, and Freddie 

Mac mortgage-backed securities. Report on SC217, SC219, or SC222. 

3. Mortgage pass-through securities not insured or guaranteed by an agency or instrument of the 

United States, even if they are issued by a government-sponsored enterprise. Report on SC215. 

SC215: Other 

Report mortgage pass-through securities that are not insured or guaranteed by an agency or sponsored 

enterprise of the United States. 

OTHER MORTGAGE-BACKED SECURITIES (EXCLUDING BONDS): 

SC217: Issued or Guaranteed By FNMA, FHLMC, or GNMA 

Report the outstanding balance, as determined in accordance with GAAP, of securitized mortgage 

derivatives that FannieMae, FreddieMac, or Ginnie Mae issues or guarantees. Include the following 

instruments FannieMae, FreddieMac, or Ginnie Mae issues or guarantees: REMICs, IO and PO strips, 

collateralized mortgage obligations (CMOs), securitized residual interests of such derivatives, and other 

subordinated tranches. 

SC219: Collateralized By Mortgage-Backed Securities Issued or 

Guaranteed By FNMA, FHLMC, or GNMA 

Report the outstanding balance, as determined in accordance with GAAP, of securitized mortgage 

derivatives that are collateralized by mortgage derivatives that FannieMae, FreddieMac, or Ginnie Mae 

issues or guarantees. Include the following instruments issued or guaranteed by FannieMae, 

FreddieMac, or Ginnie Mae: REMICs, IO and PO strips, collateralized mortgage obligations (CMOs), 

securitized residual interests of such derivatives, and other subordinated tranches. 

SC222: Other 

Report the outstanding balance, as determined in accordance with GAAP, of all other mortgage-backed 

securities not reported on SC210 through SC219. Include: REMICs, IO and PO strips, collateralized 

mortgage obligations (CMOs), securitized residual interests of such derivatives, and other subordinated 

tranches. 

SC228: Accrued Interest Receivable 

Report accrued interest receivable on mortgage backed securities reported on SC210 through SC222. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

MORTGAGE LOANS 

Mortgage loans are defined as all real estate loans subject to 12 CFR 560.100-101 (real estate lending 

standards) and OTS Thrift Bulletin 72a and include all loans predicated upon a security interest in real 

property. When a loan to finance a small business is primarily secured by a single-family residence, you 

may classify the loan as either a single-family mortgage loan or a commercial nonmortgage loan. 

Mortgage loans reported on SC230 through SC265 fall into four categories: 

1. Those held for investment: Report these at cost. 

2. Those originated for sale: Report these at the lower of cost or market value at the reporting 

date. 

3. Those previously held for investment and now held for sale: Report these at the lower of 

cost or market value at the reporting date. 

4. Those held in a trading portfolio: Report these at market value at each reporting date by 

directly adjusting the asset balance. Do not include adjustments to mark a trading portfolio to 

market in valuation allowances. 

Report all loans at recorded investment reduced by specific valuation allowances, but not reduced by the 

allowance for loan and lease losses. 

Recorded investment is the principal balance of a loan adjusted for: 

1. Direct write-downs. 

2. Deferred loan fees net of direct costs. 

3. Discounts and premiums on the purchase of mortgage loans and contracts. 

4. Application of lower-of-cost-or-market accounting treatment to mortgages held for sale but not in 

a trading account. 

5. Any undisbursed balances of loans closed, loans-in-process. Report the undisbursed amounts 

as commitments on CC105-115. 

6. The undisbursed portion of mortgage lines of credit on 1-4 dwelling units. Report these amounts 

as commitments on CC412. 

7. The undisbursed portion of mortgage lines of credit on multifamily residential property. Report 

these amounts as commitments on CC290. 

8. Unearned interest. 

9. Interest receivable that is capitalized to the loan balance. 

10. Deposits accumulated for the payment of loans, hypothecated deposits. 

11. Accumulated fair value gain or loss on mortgage loans attributable to the designated risk being 

hedged on a qualifying fair-value hedge. 

Report the related allowance for loan and lease losses on SC283. Report accrued interest and advances 

for taxes and insurance on SC272 and SC275, respectively. 

Do not divide a loan between categories. You should report loans secured by property with more than 

one use, such as residential and commercial, in the data field that describes the property type comprising 

the largest percentage of the value of the property securing the loan. 

Include: 

1. FHA/VA and conventional first mortgage loans. 

2. Junior mortgage liens, both open-end and closed-end. 

3. Your share of participating interests in loans. 

4. Loans to commercial entities collateralized by mortgages of third-party borrowers, such as 

warehouse loans, provided the underlying loans are secured by real estate. 

5. Disbursed portion of open-end home equity loans if you secure the loan by a lien on real estate. 

 SCHEDULE SC 207 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

SCHEDULE SC 208 

6. The unpaid balance of the gross loan in a wrap-around mortgage if you wrapped a loan held by a 

third party. Report the loan payable to the third party as a liability on SC760, Other Borrowings. 

7. Loans on units in cooperative buildings. 

Do not include: 

1. Mortgage-backed securities. Report on SC210 through SC222. 

2. The portion of participations sold qualifying as a sale under GAAP; you should no longer report 

the sold portion in your statement of condition. 

3. Mortgage-backed bonds. Report on SC185. 

4. Real estate loans where the characteristics dictate treatment as an investment in real estate in 

accordance with GAAP. Report on SC45, Real Estate Held for Investment. 

5. Foreclosed assets. Report on SC405 through SC428, Repossessed Real Estate. 

6. Loans secured by assets that you physically possess, although foreclosure has not yet occurred, 

in-substance foreclosures. Report on SC405 through SC428, Repossessed Real Estate. 

7. Loans purchased subject to agreements to resell, that is, you hold these loans as collateral 

received for loans made to others. Report on SC125, Federal Funds Sold and Securities 

Purchased Under Agreements to Resell. 

8. Loan commitments that you have not yet taken down, even if you have received fees. Prior to 

disbursement of the loan, report refundable fees on SC712, Escrows, and nonrefundable fees on 

SC796, Other Liabilities and Deferred Income, as Code 04. 

9. Loans on timeshare arrangements. Report on SC330, Other Consumer Loans. 

10. Unsecured home improvement loans. Report on SC316, Home Improvement Loans. 

SC26: TOTAL 

The EFS software will compute this line as the sum of SC230 through SC275, less SC283. 

Construction Loans on: 

SC230: 1-4 Dwelling Units 

Report the outstanding balance of all construction loans secured by 1-4 dwelling units. Adjust balances 

as described above in the general instructions to mortgage loans. 

Include: 

1. Construction loans to developers secured by tracts of land on which single-family houses, 

including townhouses, are being constructed. 

2. Construction loans secured by single-family dwelling units in detached or semidetached 

structures, including manufactured housing. 

3. Construction loans secured by duplex units and town houses, excluding garden apartment 

projects where the total number of units that will secure the permanent mortgage is greater than 

four. 

4. Combination land and construction loans on 1-4 dwelling units regardless of the current stage of 

construction or development; 

5. Combination construction-permanent loans on 1-4 dwelling units until construction is completed 

or principal amortization payments begin, whichever comes first. 

6. Bridge loans to developers on 1-4 dwelling units where the buyer will not assume the same loan, 

even if construction is completed or principal amortization payments have begun. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

Do not include: 

Loans for the development of building lots unless the same loan finances the erection of building 

improvements. Report on SC265. 

SC235: Multifamily (5 or More Dwelling Units) 

Report the outstanding balance of all construction loans secured by 5 or more dwelling units. Adjust 

balances as described above in the general instructions to mortgage loans. 

Include: 

1. Loans for the construction of apartment buildings including condominium and cooperative 

apartments. 

2. Loans for the construction of fraternity or sorority houses offering sleeping accommodations. 

3. Loans for the construction of living accommodations for students or staff of a college or hospital. 

4. Loans for the construction of retirement homes with sleeping and eating accommodations for 

permanent residents. Each bedroom equals one dwelling unit. 

5. Combination land-construction loans on 5 or more dwelling units regardless of the current stage 

of construction or development. 

6. Combination construction-permanent loans on 5 or more dwelling units until construction is 

completed or principal amortization payments begin, whichever comes first. 

7. Bridge loans to developers on 5 or more dwelling units where the buyer will not assume the same 

loan, even if construction is completed or principal amortization payments have begun. 

8. Loans for the construction of mobile home parks. 

SC240: Nonresidential Property 

Report the outstanding balance of all construction loans secured by nonresidential property. Adjust 

balances as described above in the general instructions to mortgage loans. 

Include: 

1. Loans for the construction of hospitals, nursing and convalescent homes, hotels, churches, 

stores, and other commercial properties. 

2. Combination land and construction loans on nonresidential property regardless of the current 

stage of construction or development. 

3. Combination construction and permanent loans on nonresidential property until construction is 

completed or principal amortization payments begin, whichever comes first. 

4. Bridge loans to developers on nonresidential property where the buyer will not assume the same 

loan, even if construction is completed or principal amortization payments have begun. 

Do not include: 

1. Loans to purchase land. Report on SC265. 

2. Loans to purchase land used for farming. Report on SC260. 

Permanent Mortgages on: 

1-4 Dwelling Units: 

Include: 

1. Mortgages secured by all 1-4 dwelling units where construction has been completed. 

2. Refinancing loans on 1-4 dwelling units where the original loan was a permanent mortgage. 

3. Junior liens on 1-4 dwelling units where the senior lien is a permanent mortgage. 

 SCHEDULE SC 209 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

SCHEDULE SC 210 

Do not include: 

1. Combination land-construction loans regardless of the current stage of construction or 

development. Report on SC230. 

2. Combination construction-permanent loans until construction is completed or principal 

amortization payments begin, whichever comes first. Report on SC230. 

3. Bridge loans to developers where the buyer will not assume the same loan. Report on SC230. 

4. Timeshare loans. Report on SC330, Other Consumer Loans. 

SC251: Revolving, Open-End Loans 

Report the outstanding balance of all revolving, open-end lines of credit secured by 1-4 dwelling units and 

extended under lines of credit, where you secured the loan with a lien on the real estate. You generally 

secure these loans, called “home equity lines of credit,” by a junior lien, and the funds may be accessible 

by check or credit card. However, where no senior lien exists, you may secure these lines by a first lien 

on the real estate. . 

SC254: Secured by First Liens 

Report the outstanding balance of all closed-end loans secured by first liens on 1-4 family residential 

properties. 

SC255: Secured by Junior Liens 

Report the outstanding balance of all closed-end loans secured by junior liens on 1-4 family residential 

properties. 

SC256: Multifamily (5 or More Dwelling Units) 

Report the outstanding balance of all loans secured by 5 or more dwelling-unit property. Adjust balances 

as described above in the general instructions to mortgage loans. 

Include: 

1. Mortgages on 5 or more dwelling units where construction has been completed. 

2. Mortgages on apartment buildings. 

3. Refinancing loans on 5 or more dwelling units where the original loan was a permanent 

mortgage. 

4. Junior liens on 5 or more dwelling units where the senior lien is a permanent mortgage. 

5. Permanent mortgages secured by fraternity or sorority houses offering sleeping accommodations. 

6. Permanent mortgages secured by living accommodations for students or staff of a college or 

hospital. 

7. Permanent mortgages secured by retirement homes with sleeping and eating accommodations 

for permanent residents, where the units are not condominiums or cooperatives. Each bedroom 

equals one dwelling unit. Report mortgages secured by retirement community condominiums or 

cooperatives on SC254 or SC255. 

8. Permanent mortgages secured by developed mobile home parks where the individual units are 

under the mortgage. 

Do not include: 

1. Mortgages on individual condominium units where the mortgage covers fewer than five units in 

the same project. Report on SC251 through SC255. 

2. Combination land and construction loans regardless of the current stage of construction or 

development. Report on SC235. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

 SCHEDULE SC 211 

3. Combination construction and permanent loans until construction is completed or principal 

amortization payments begin, whichever comes first. Report on SC235. 

4. Bridge loans to developers where the buyer will not assume the same loan. Report on SC235. 

SC260: Nonresidential Property, Except Land 

Report the outstanding balance of all loans secured by nonresidential property excluding land. Adjust 

balances as described above in the general instructions to mortgage loans. 

Include: 

1. Mortgages on nonresidential properties where construction has been completed. 

2. Mortgages on properties to be used extensively for farming, regardless of the presence or 

absence of a dwelling unit on the property. 

3. Refinancing loans where the original loan was a permanent mortgage on nonresidential property. 

4. Junior liens on property where the senior lien is a permanent mortgage on nonresidential 

property. 

5. Permanent loans on hospitals, nursing and convalescent homes, hotels, churches, stores, and 

other commercial properties. 

Do not include: 

1. Combination land and construction loans regardless of the current stage of construction or 

development. Report on SC240. 

2. Combination construction and permanent loans until construction is completed or principal 

amortization payments begin, whichever comes first. Report on SC240. 

3. Bridge loans to developers where the buyer will not assume the same loan. Report on SC240. 

SC265: Land 

Report the outstanding balance of all mortgage loans secured by land. Adjust balances as described 

above in the general instructions to mortgage loans. 

Include: 

1. Loans for the acquisition and development of land, that is, loans to finance the purchase of land 

and the accomplishment of all improvements to convert it to developed building lots. 

2. Loans for the acquisition of developed building lots. 

3. Loans secured by vacant land. 

4. Refinancing loans where the original loan was a permanent mortgage on land. 

5. Junior liens on land where the senior lien is a permanent mortgage. 

Do not include: 

1. Combination land-construction loans. Report on SC230 through SC240. 

2. Land used for farming. Report on SC260, Permanent Mortgages on Nonresidential Property, 

Except Land. 

SC272: Accrued Interest Receivable 

Report accrued interest receivable on mortgage loans reported on SC230 through SC265 if collection 

was probable at the time of accrual. You should place loans on which collection of interest is not 

probable in a nonaccrual status. 

Do not include: 

1. Interest receivable if collection was not probable at the time it was recorded.
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

2. Interest receivable on loans or participations serviced for others. Report on SC689, Other 

Assets. 

3. Interest receivable that is capitalized to the loan balance. Report with the loan balance on SC230 

through SC265. 

SC275: Advances for Taxes and Insurance 

Report amounts you paid by on behalf of borrowers for taxes and insurance on loans reported on SC230 

through SC265. This line primarily contains negative balances in tax and insurance escrows for loans 

you own. 

Do not include: 

1. Credit balances. Report on SC712, Escrows. 

2. Advances for taxes and insurance on loans and participations serviced for others. Report on 

SC689, Other Assets, as Code 09. 

SC283: Allowance for Loan and Lease Losses 

Report all allowances for loan and lease losses (ALLL) established to recognize credit losses on 

mortgage loans reported on SC230 through SC275. You must include all ALLL in the reconciliation of 

valuation allowances in Schedule VA. 

Do not include: 

1. Mark-to-market adjustments to mortgage loans held in a trading portfolio; these directly adjust the 

asset balance. 

2. Specific valuation allowances; these directly adjust the asset balance. 

NONMORTGAGE LOANS 

Adjust the balances in this section for: 

1. Specific valuation allowances. 

2. Deferred loan fees net of direct costs. 

3. Discounts and premiums on the purchase of nonmortgage loans and contracts. 

4. Application of lower-of-cost-or-market accounting treatment to loans held for sale but not in a 

trading account. 

5. Any undisbursed balance of closed-end loans, loans-in-process. Report the undisbursed amount 

of nonmortgage loans on CC125. 

6. The undisbursed portion of lines of credit. Report the undisbursed amount on CC420-425. 

7. Unearned interest, such as add-on interest of loans issued at a discount. 

8. Deposits accumulated for the payment of loans, hypothecated deposits. 

9. Accumulated gain or loss (change in fair value) on nonmortgage loans attributable to the 

designated risk being hedged on a qualifying fair-value hedge. 

Do not adjust the balances in this section for: Allowance for loan and lease losses. Report these on 

SC357. 

Include: 

1. Unsecured loans. 

2. Loans secured with tangible property other than real estate, except as noted below. 

SCHEDULE SC 212 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

Do not include: 

1. Investments in securities collateralized by nonmortgage loans. Report these securities on 

SC182, Securities backed by Nonmortgage Loans. Note: Although you report pass-through 

securities backed by nonmortgage loans with nonmortgage loans in Schedule CMR, in Schedule 

SC report securities backed by nonmortgage loans with Investment Securities. 

2. Loan commitments that you have not yet taken down, even if you have received fees. Prior to 

disbursement of the loan, report refundable fees on SC712, Escrows, and nonrefundable fees on 

SC796, Other Liabilities and Deferred Income, as Code 04. 

SC31: Total 

The EFS software will compute this line as the sum of SC300 through SC348 less SC357. 

Commercial Loans: 

SC32: Total 

The EFS software will compute this line as the sum of SC300, SC303, and SC306. 

SC300: Secured 

Report all loans to corporations, partnerships, and individuals for business purposes that are secured by 

tangible property or insured or guaranteed by a federal, state, or municipal government or agency thereof. 

Include: 

1. Secured loans for farming operations. 

2. Floor-planning, inventory and wholesale, loans to dealers for automobiles or mobile homes. 

3. Retail auto loans if the autos are for commercial use. 

4. Nonmortgage loans insured or guaranteed by state or municipal government authority or an 

agency of the federal government, including Farmers Home Administration, Agency for 

International Development, and the insured portion of nonmortgage Small Business 

Administration (SBA) loans. 

5. Secured nonmortgage loans to unconsolidated subordinate organizations. 

6. Outstanding balances of secured commercial lines of credit. 

7. Loans secured by residential property to finance small businesses if the loans are not reported as 

mortgages. 

Do not include: 

1. Commercial financing leases. Report on SC306. 

2. The uninsured portion of SBA loans. Report on SC303. 

SC303: Unsecured 

Report all unsecured loans to corporations, partnerships, and individuals for business purposes. 

Include: 

1. Unsecured construction loans to builders. 

2. Unsecured loans for the improvement of multifamily and other commercial property. 

3. The outstanding balance of unsecured commercial lines of credit, overdrafts on commercial 

demand deposits, and business credit cards. 

4. Unsecured loans for farming operations. 

 SCHEDULE SC 213 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

5. Term Federal Funds - Any lending of immediately available funds where the loan has an original 

maturity of more than one business day, other than securities purchased under agreements to 

resell, is to be treated as a loan. Such transactions are sometimes referred to as Term Fed 

Funds. 

6. All other unsecured loans made for commercial purposes. 

Do not include: 

1. Unsecured loans to unconsolidated subordinate organizations. Report on SC540, Equity 

Investments Not Carried at Fair Value: Other. 

2. Corporate debt securities even if included in calculating OTS commercial loan limitations. Report 

on SC185, Other Investment Securities. 

3. Non-interest-bearing overdrafts on commercial deposit accounts where the institution grants 

modest sized overdrafts for the convenience of the customer. Typically, such overdraft protection 

plans are offered to most customers on a fee for service basis rather than incurring interest 

charges. Report such overdrafts on SC 689, “Other Assets.” Report fee income on such 

overdrafts as SO 420, “Other Fees and Charges.” 

SC304: Credit Card Loans Outstanding – Business 

Report all unsecured credit card business loans included on SC303. 

SC306: Lease Receivables 

Report all direct financing leases and leveraged leases to corporations, partnerships, and individuals for 

business purposes. Include ground rents on commercial properties. 

Consumer Loans: 

Report loans issued at a discount net of the related unearned interest. 

SC35: Total 

The EFS software will compute this line as the sum of SC310 through SC330. 

SC310: Loans on Deposits 

Report share loans and other loans to individuals for household, family, and other personal expenditures 

fully secured by the pledge or assignment of the borrower’s deposits or other credits held by your 

institution. When a loan is secured by a lien on real estate or chattel and is also secured by a pledge on 

deposits, you should classify the entire loan based on what you consider the loan’s primary collateral. 

SC316: Home Improvement Loans (Not Secured by Real Estate) 

Report all unsecured home improvement loans, insured or uninsured, for the equipping, alteration, repair, 

or improvement of 1-4 dwelling units. 

Do not include: 

1. Unsecured loans for the improvement of multifamily housing, 5 or more dwelling units, or for 

nonresidential property. Report on SC303, Unsecured Commercial Loans. 

2. Home equity lines of credit. Report on SC251. 

SC320: Education Loans 

Report loans originated solely for funding educational expenses. 

SCHEDULE SC 214 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

 SCHEDULE SC 215 

SC323: Auto Loans 

Report all loans to consumers secured by automobiles, including pickup or panel trucks, vans, and sport 

utility vehicles that are primarily for personal use. 

Do not include: 

1. Loans on cars or trucks intended primarily for commercial, industrial, and professional purposes. 

Report on SC300, Secured Commercial Loans. 

2. Loans on motorcycles. Report on SC330, Other Consumer Loans, Including Lease Receivables. 

3. Loans on recreational vehicles such as boats and airplanes. Report on SC330, Other Consumer 

Loans, Including Lease Receivables. 

4. Floor-planning loans, both inventory and wholesale. Report on SC300, Secured Commercial 

Loans. 

SC326: Mobile Home Loans 

Report consumer loans secured by mobile homes. 

Do not include: 

Floor-planning loans, both inventory and wholesale. Report on SC300, Secured Commercial Loans. 

SC328: Credit Cards 

Report the disbursed portion of open-end consumer credit cards. 

Do not include: 

1. Credit extended under credit card plans to business enterprises; report as commercial loans on 

SC303. 

2. Credit extended to individuals through credit cards secured by real estate; report as mortgage loans. 

3. Credit extended to individuals under prearranged overdraft plans underwritten as loans; report on 

SC330. 

SC330: Other, Including Lease Receivables 

Report loans to individuals for household, family, and other personal expenditures not included 

elsewhere, and direct financing leases to consumers. 

Include: 

1. Loans on timeshare units. 

2. Loans on motorcycles. 

3. Loans on boats. 

4. Loans on airplanes. 

5. Loans on other recreational vehicles. 

6. Open-ended personal lines of credit extended to individuals including prearranged overdraft lines of 

credit underwritten as loans. 

7. Overdrafts of consumer accounts. 

8. Ground rents on properties used for one-to-four dwelling units.
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

SCHEDULE SC 216 

Do not include: 

1. Loans on units in cooperative buildings. Report on SC254 or SC255, Permanent Mortgages on 

1-4 Dwelling Units. 

2. Non-interest-bearing overdrafts on consumer deposit accounts where the institution grants 

modest sized overdrafts for the convenience of the customer. Typically, such overdraft protection 

plans are offered to most customers on a fee for service basis rather than incurring interest 

charges. Report such overdrafts on SC 689, “Other Assets.” Report fee income on such 

overdrafts as SO 420, “Other Fees and Charges.” 

SC348: Accrued Interest Receivable 

Report accrued interest receivable on nonmortgage loans reported on SC300 through SC330, if collection 

was probable at the time of accrual. You must place loans on which the collection of interest is not 

probable in a nonaccrual status. 

Do not include: 

1. Interest receivable if collection was not probable at the time the interest was recorded. 

2. Interest receivable on loans or participations serviced for others. Report on SC689, Other 

Assets. 

SC357: Allowance for Loan and Lease Losses 

Report all allowances for loan and lease losses (ALLL) established to recognize credit losses on 

nonmortgage loans reported on SC300 through SC348. You must include all ALLL in the reconciliation of 

valuation allowances in Schedule VA. 

REPOSSESSED ASSETS 

Throughout these instructions, we use foreclosure and repossession and other forms of those terms 

interchangeably. In addition, foreclosed assets and repossessed assets include in-substance 

foreclosures. 

Foreclosed assets are deemed held for sale and are initially recorded at the lower of: (1) recorded 

investment in the loan, carrying value before deduction for valuation allowances, or; (2) fair value, less 

cost to sell, of the foreclosed asset. 

At foreclosure, any excess of recorded investment over fair value less cost to sell is classified Loss and is 

charged off. This loss classification may not be represented by a valuation allowance. Accordingly, the 

lower of: (1) recorded investment in the loan, or (2) fair value less cost to sell of the foreclosed asset, 

becomes the new recorded investment in the foreclosed asset. Legal fees and direct costs of acquiring 

title to foreclosed assets are expensed as incurred, and thus are not part of the recorded investment. 

After foreclosure, any excess of recorded investment over the current fair value less cost to sell is 

classified Loss and is charged off, or may be represented by a specific valuation allowance. Deduct 

valuation allowances from recorded investment to arrive at carrying value. You should report 

repossessed assets net of specific valuation allowances. 

For a foreclosed asset subject to a third-party liability – a lien senior to that settled by the foreclosure, you 

should report the third-party liability on SC760, Other Borrowings. Therefore, you do not offset the 

carrying value of such a foreclosed asset by the third-party liability. 

Include: 

1. Real estate and other assets for which you have acquired a marketable title by foreclosure or by 

a deed in lieu of foreclosure. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

 SCHEDULE SC 217 

2. Real estate and other assets acquired through in-substance foreclosure for which you have not 

yet acquired a marketable title. 

3. Real estate and other assets you acquired as part of a troubled debt restructuring. 

4. Capitalized costs for repossessed assets during construction not exceeding fair value less cost to 

sell. 

5. Property that a loan servicer has acquired through foreclosure on your behalf, including insubstance foreclosures, where there is no recourse to a third party. 

6. Real estate originally acquired for future use by you but no longer intended for that purpose. 

Do not include: 

1. Real estate held for investment or development. Report on SC45, Real Estate Held for 

Investment. 

2. Real estate intended for your future use. Report on SC55, Office Premises and Equipment. 

3. Foreclosed real estate from a loan treated as an investment in real estate in accordance with 

GAAP; continue to report these on SC45, Real Estate Held for Investment. 

4. Foreclosed real estate from loans to entities such as joint ventures in which you or your 

subsidiaries are investors. Report these on SC45, Real Estate Held for Investment. 

SC40: Total 

The EFS software will compute this line as the sum of SC405 through SC430 less SC441. 

Real Estate: 

SC405: Construction 

Report repossessed real estate that is under construction. Do not include land being developed into 

building lots prior to constructing improvements, which you report on SC428. 

SC415: 1-4 Dwelling Units 

Report repossessed property consisting of 1-4 dwelling units that is not under construction. 

SC425: Multifamily (5 or More Dwelling Units) 

Report repossessed property consisting of 5 or more dwelling units that is not under construction. 

SC426: Nonresidential, Except Land 

Report repossessed nonresidential property. Do not include land, which you report on SC428. 

SC428: Land 

Report repossessed land. 

Include: 

1. Vacant land. 

2. Developed building lots on which no building construction has begun. 

3. Land being subdivided and developed into lots.
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

SC429: U.S. Government-Guaranteed or -Insured Real Estate Owned 

Report repossessed property where the loans were wholly or partially guaranteed or insured by agencies 

of the U.S. government. 

SC430: Other Repossessed Assets 

Report all other repossessed property, excluding real estate. 

SC441: General Valuation Allowances 

Report all general valuation allowances established on repossessed assets. 

Do not include: 

1. Specific valuation allowances; these must directly reduce the asset balance. 

2. Write-downs to mark repossessed assets to fair value less cost to sell at foreclosure; these must 

directly reduce the asset balance. 

3. Valuation allowances established prior to transfer to REO. 

SC45: REAL ESTATE HELD FOR INVESTMENT 

Report the recorded investment of all real estate you acquired for development, investment, or resale, net 

of specific valuation allowances, general valuation allowances, and accumulated depreciation. 

Include: 

1. Real estate acquired and held for investment purposes. 

2. Real estate loans that are accounted for as investments in real estate in accordance with GAAP. 

3. Real estate that you formerly occupied, unless you are holding it for sale, in which case you 

report it on SC55. 

4. Real estate you acquired through foreclosure that no longer qualifies as repossessed real estate 

because of the length of time you have held it or the purpose for which you are holding it. 

5. Capitalized carrying costs of real estate under construction. 

Do not include: 

1. Office buildings and land that you own and use in your business operations. Report on SC55, 

Office Premises and Equipment. 

2. Real estate acquired as part of a troubled debt restructuring. Report on SC405 through SC428, 

Repossessed Assets: Real Estate. 

3. Real estate acquired indirectly through an entity designated as a pass-through investment as 

described in 12 CFR § 560.32. Report the pass-through investment on SC540, Equity 

Investments Not Carried at Fair Value: Other. 

4. The share of investments owned in real estate joint ventures qualifying as unconsolidated 

subordinate organizations. Report on SC540, Equity Investments Not Carried at Fair Value: 

Other. 

5. Real estate originally acquired for your future use but no longer intended for that purpose. Report 

as REO on SC405 through SC428. 

SCHEDULE SC 218 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

SC51: Equity Investments Not Carried at Fair Value 

The EFS software will compute this line as the sum of SC510 and SC540. 

SC510: Federal Home Loan Bank Stock 

Report the carrying value of Federal Home Loan Bank Stock. 

SC540: Other 

Report (1) investments in all unconsolidated subordinate organizations, and (2) pass-through 

investments, where such investments are accounted for at either cost or using the equity method. 

Include in the reported amount any advances (secured or unsecured) to the investee entity. 

SC55: OFFICE PREMISES AND EQUIPMENT 

Report the book value of all premises and equipment that are used in your business operations net of 

accumulated depreciation whether they were purchased directly or acquired by means of a capital lease. 

In a sale-leaseback where the resulting lease is a capital lease, report the capital lease net of the 

unamortized deferred gain or loss. 

Report depreciation expense for the quarter on SO530, Office Occupancy and Equipment Expense. 

Include: 

1. All land, buildings, and parking lots occupied by you, including those that you only partially 

occupy. 

2. Land or improved real estate intended for future use in your business operations. 

3. Real estate you formerly occupied, if the real estate is held for sale. 

4. Capital leases for your office premises and equipment. 

5. Carrying costs capitalized during the construction of your premises. 

6. The unamortized balance of all improvements to leased quarters and any capital improvements 

made to land leased for your use. 

7. Office furniture, fixtures, equipment, and vehicles you own. 

Do not include: 

1. Repossessed assets, unless you used them on other-than-a-temporary basis. Report on SC405 

through SC430. 

2. Real estate held for investment. Report on SC45. 

3. Real estate you originally acquired for future use but no longer intend to use for that purpose. 

Report as REO on SC405 through SC428. 

4. Real estate you formerly occupied and did not actively hold for sale. Report on SC45. 

5. Real estate you acquired as part of a troubled debt restructuring. Report on SC405 through 

SC428, Repossessed Real Estate. 

6. Technology-based intangible assets, such as computer software. Report on SC660. 

 SCHEDULE SC 219 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

OTHER ASSETS: 

SC59: Total 

The EFS software will compute this line as the sum of SC615 through SC689 less SC699. 

Bank-Owned Life Insurance: 

SC615: Key Person Life Insurance 

Include the value of bank-owned life insurance that you consider key-person insurance, where the 

intended purpose is to provide the institution protection against the potential for losses arising from the 

untimely death of a key employee or borrower. You generally surrender these policies when the key 

employee leaves your institution or when the borrower pays off his loan. Include amounts represented in 

the contractual terms of the policy (i.e. cash surrender value, claim stabilization reserves, and tax on 

deferred acquisition costs. 

SC625: Other 

Report the value of all bank-owned life insurance that you do not consider key-person insurance, and 

therefore that you do not include on SC615. Include amounts represented in the contractual terms of the 

policy (i.e. cash surrender value, claim stabilization reserves, and tax on deferred acquisition costs). 

Intangible Assets: 

Servicing Assets: 

Report the carrying amount of servicing assets on mortgage and nonmortgage loans. 

Servicing assets may be carried at either a.) the lower of cost or fair value, or b.) fair value. 

For servicing assets carried at the lower of cost or fair value, adjust the carrying amount for: 

1. Accumulated gain or loss (change in fair value) on the servicing asset attributable to the 

designated risk being hedged on a qualifying fair-value hedge. 

2. Any valuation allowances. 

Servicing assets are subject to certain regulatory capital limitations. Refer to the instructions for data field 

CCR133. 

Do not include amounts for any rights to future interest income from the serviced loans that exceed 

contractually specified servicing fees, defined below. Such rights are not servicing assets. Report such 

amounts on SC665, Interest-only Strip Receivables and Certain Other Instruments. 

Contractually specified servicing fees are all amounts that, per the contract, are due to you as the servicer 

in exchange for the servicing. In other words, you would no longer receive fees if the beneficial owners of 

the serviced assets were to exercise their actual or potential authority under the contract to shift the 

servicing to another servicer. 

SC642: Mortgage Loans 

Report servicing assets on mortgage loans only. 

SC644: Nonmortgage Loans 

Report servicing assets of loans other than mortgages, such as automobile and credit card loans. 

SCHEDULE SC 220 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

SC660: Goodwill and Other Intangible Assets 

Report the balance of goodwill and other intangible assets. 

Include: 

1. Goodwill. 

2. Core deposit premium. 

3. Intangible pension assets. 

4. Technology-based intangible assets, such as computer software. 

5. Other intangible assets (i.e., purchased credit card relationships (PCCRs)) excluding servicing 

assets reported on SC642 and SC644. 

Do not include: 

1. Servicing assets; report on SC642 and SC644. 

2. Interest-only strip receivables and certain other instruments; report on SC665. 

3. Organization costs, which should be expensed as incurred. 

SC665: Interest-only Strip Receivables and Certain Other Instruments 

Report the amortized cost of certain nonsecurity financial instruments (CNFIs) accounted for at fair value 

like investments in debt securities classified as available-for-sale or trading. CNFIs include interest-only 

strip receivables, loans receivable, other receivables, or retained interests in securitizations that can be 

contractually prepaid or otherwise settled in such a way that the holder would not recover substantially all 

of its recorded investment. Adjust the carrying amount for: (1) accumulated gain or loss (change in fair 

value) on CNFIs attributable to the designated risk being hedged on a qualifying fair-value hedge; and (2) 

any valuation allowances. 

Do not include interest-only strips in security form. Report on SC217 through SC222, Other MortgageBacked Securities, or SC185, Other Investment Securities, as appropriate. 

All CNFIs should be reported on either SI375 or SI385, depending on whether they are classified as held 

for trading or available-for-sale. 

SC689: Other Assets 

Report the total of assets not reported elsewhere on Schedule SC. You can find examples of the types of 

assets to be included in the memo items detailing other assets below. 

Do not include: 

1. Premiums on deposits and borrowed money that you purchased. Report premiums on deposits 

on SC715 and premiums on borrowed money with the related borrowing. 

2. Deferred credits, deferred income, that do not have a related asset. Report on SC796, Other 

Liabilities and Deferred Income. 

3. Accounts with a material credit balance that are not contra-assets. Report on SC796, Other 

Liabilities and Deferred Income. 

4. Identified core deposit intangibles. Report on SC660, Goodwill and Other Intangible Assets. 

Memo: Detail of Other Assets 

Report the three largest items constituting the amount reported in SC689. You should select codes best 

describing these items from the list below and report them on SC691, 693, and 697; report the 

corresponding amounts on SC692, 694, and 698. You must complete this detail if you report an amount 

on SC689. You should combine similar accounts, for example, all prepaid expenses should be combined 

and reported as 07. However, you should not combine unlike accounts in reporting code 99. You may 

have more than one code 99 if you cannot find codes describing the items you report. 

 SCHEDULE SC 221 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

SC691, 693 and 697: Codes 

01 No longer used 

02 Accrued Federal Home Loan Bank dividends. 

03 Federal, state, or other taxes receivable, whether as the result of prepayment or net operating 

loss carrybacks. 

04 Net deferred tax assets (net of deferred tax liabilities). 

06 Prepaid deposit insurance premiums. 

07 Prepaid expenses. 

08 Deposits for utilities and other services. 

09 Advances for loans serviced for others, including advances for taxes and insurance and 

advances to investors. 

10 Property leased to others under an operating lease as provided in 12 CFR § 560.41, net of 

accumulated depreciation. 

11 Deferred issuance costs related to subordinated debentures, mandatory convertible securities, 

and redeemable preferred stock. 

12 Amounts receivable under interest rate swap agreements. 

13 Non-interest-bearing accounts receivable from a holding company or affiliate. 

14 Other miscellaneous, non-interest-bearing, short-term accounts receivable. 

15 No longer used 

16 No longer used 

17 No longer used 

18 No longer used 

19 Receivables from a broker for unsettled transactions. 

Include all receivables from a broker or other party for unsettled transactions between trade 

and settlement dates. 

20 Fair value of all derivative instruments reportable as assets 

21 No longer used 

22 Unapplied loan disbursements. 

 Include only those loan disbursements that you cannot categorize. 

23 No longer used 

24 No longer used 

25 No longer used 

26 Non-interest-bearing overdrafts of consumer and commercial deposit accounts where the 

institution does not perform a credit analysis but offers overdraft protection to most customers 

for their convenience. 

99 Other. Use this code only for those items not identified above. 

SC692, 694, and 698: Amounts 

Report the dollar amounts corresponding to the codes reported on SC691, 693, and 697. 

SCHEDULE SC 222 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

SC699: General Valuation Allowances 

Report all general valuation allowances established to recognize credit losses on receivables included in 

Other Assets. 

You must include all valuation allowances in the reconciliation of valuation allowances in Schedule VA. 

SC60: TOTAL ASSETS 

The EFS software will compute this line as the sum of SC11, SC22, SC26, SC31, SC40, SC45, SC51, 

SC55, and SC 59. This amount must equal SC90, Total Liabilities and Equity Capital. 

LIABILITIES 

For the following liabilities that may be included on various lines on this schedule, also report the balance 

on Schedule SI if the liability is recorded under a fair value option on: 

SI377, Financial Liabilities Carried at Fair Value through Earnings 

DEPOSITS AND ESCROWS: 

SC71: Total Deposits and Escrows 

The EFS software will compute this line as the sum of Deposits (SC710), Escrows (SC712), and 

Unamortized Yield Adjustments on Deposits and Escrows (SC715). 

SC710: Deposits 

Report all deposits at their face value except zero-coupon deposits, which you report at face value net of 

the unamortized discount. 

Include: 

1. All deposits whether interest-bearing or not. 

2. Deposits exceeding DIF insurance limits, including those collateralized by your assets, such as 

deposits of public funds. 

3. Unposted credits, such as: 

a. Deposit transactions that you include in a general ledger account and have not yet posted to 

a deposit account. 

b. Deposits you received in one branch for deposit into another branch, typically another branch 

in another state or outside of continental USA. 

You should report unposted credits net of unposted debits. We define unposted debits as 

cash items in your possession that are drawn on you and immediately chargeable, but not yet 

charged, against your deposits at the close of business on the reporting date. 

Exclude the following from unposted credits: 

a. Cash items drawn on other financial institutions. 

b. Overdrafts and nonsufficient fund (NSF) items. 

c. Cash items returned unpaid to the last endorser for any reason. 

d. Drafts and warrants that are payable at or payable through you for which there is no written 

authorization from the depositor and no state statute allowing you at your discretion to 

charge the items against the deposit accounts of the drawees. 

 SCHEDULE SC 223 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

SCHEDULE SC 224 

Report the above excluded unposted debit amounts in assets on SC110. Note: If the total of 

unposted credits is negative, that is, a debit, you can deduct it from SC710. 

4. Outstanding cashier’s checks, money orders, or other official checks drawn on an internal 

account issued in the usual course of business for any purpose, including, without being limited 

to, those that you issued in payment for your debts or expenses, or payable to a third party 

named by a customer making the withdrawal. 

5. Accounts pledged by your directors and organizers as protection against operating deficits and 

other nonwithdrawable accounts, whether or not they are used in determining compliance with 

minimum capital requirements. 

6. U.S. Treasury tax and loan accounts that represent funds received as of the close of business of 

the reporting date. Do not include funds credited prior to the reporting date that are automatically 

converted into open-ended interest-bearing notes. Report such balances on SC796, Other 

Liabilities and Deferred Income. 

7. Unapplied loan balances, such as receipts from borrowers that have not yet been classified as 

principal, or interest, unless you credit the applicable customer accounts as of the date you 

initially received the funds. 

8. Credit balances in credit card accounts, credit card customer overpayments. 

9. Funds you received or held in connection with drafts or checks that you have drawn on another 

depository institution, a Federal Home Loan Bank, or a Federal Reserve Bank. The funds 

reported here are only those drawn either on a zero-balance account or on an account that is not 

routinely maintained with sufficient balances to cover checks drawn in the normal course of 

business, including accounts where you remit funds only when the checks or drafts are 

presented. For example, funds received from a customer for a cashier’s check that is drawn on a 

zero-balance account in another financial institution. 

10. Dealer reserve accounts, when considered a liability under GAAP. Dealer reserve accounts are 

refundable amounts held as collateral in the purchase of installment notes from a dealer. For 

example, a savings association purchases $100,000 in installment notes from a dealer for the full 

face amount, for which it pays $90,000 to the dealer and holds the remaining $10,000 as 

collateral. The $10,000 held is a dealer reserve account, which you should report as a deposit. If 

you hold dealer reserves that under GAAP are reported as contra-assets, then you should report 

the assets net of these dealer reserves in Schedule SC. 

11. Outstanding travelers’ letters of credit and other letters of credit you issued for cash or its 

equivalent (prepaid letters of credit), less outstanding drafts accepted against the letters of credit. 

12. Funds you hold as security for an obligation due to the bank or others, except hypothecated 

deposits, and funds deposited by a debtor to meet maturing obligations, such as amounts 

pledged against sinking fund mortgages and as collateral for loans. 

Certain items should be added back to the appropriate deposit control totals and reported on SC689, 

Other Assets, as Code 99. Such items are: the gross amount of debit items (rejects) that you cannot 

post to the individual deposit accounts without creating overdrafts or that you cannot post for some other 

reason, such as stop payment, missing endorsement, post or stale date, or account closed, but which 

have been charged to the control accounts of the various deposit categories on the general ledger. 

You should report assets and liabilities in Schedule SC in accordance with GAAP. Certain items defined 

in the Federal Deposit Insurance Act as includable in the deposit premium assessment base may, under 

GAAP, be considered contra-assets rather than liabilities. Report assets in Schedule SC net of such 

items, but you must also report these items on Schedule DI, as appropriate, so that they will be included 

in the deposit premium assessment base. 

You should report reciprocal balances with commercial banks and other savings associations on a net 

basis where the right of set-off exists. Reciprocal demand balances arise when two depository 

institutions maintain deposit accounts with each other. In certain cases you will need to report reciprocal 

demand balances on DI520, Total Allowable Exclusions (Including Foreign Deposits).
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

Do not include: 

1. Escrow accounts. Report on SC712, Escrows. 

2. Custodial accounts established pursuant to loan servicing agreements. Report on SC712, 

Escrows. 

3. Deposit accounts that you set up in your own name for which there is a corresponding cash 

account in assets. Eliminate the cash account from assets and the same amount from deposits. 

See item 4 under Include above concerning outstanding checks. 

4. Outstanding checks drawn on, or payable at or through, a non-zero-balance account at a Federal 

Reserve Bank or a Federal Home Loan Bank. Deduct these amounts from cash-in-bank, 

typically, from amounts on SC110 or SC112, as appropriate, and also report them on DI510 for 

inclusion in the deposit base for FDIC insurance assessment purposes. See item 9 under 

Include above concerning outstanding checks drawn on zero-balance accounts. 

5. Outstanding checks written against accounts in other depository institutions, as defined by the 

Federal Deposit Insurance Act. Deduct these from the related deposit reported on SC110 or 

SC118. 

6. Discounts and premiums that result from marking assets and liabilities to fair value because of an 

acquisition, merger, or change in control. Report on SC715, Unamortized Yield Adjustments on 

Deposits and Escrows. 

7. Deductions for commissions and other capitalized items. Report on SC715, Unamortized Yield 

Adjustments on Deposits and Escrows. 

8. Deductions for customers’ overdrafts in NOW and demand accounts unless the right of set-off 

under a valid cash management arrangement exists for accounts of the same legal entity. Report 

as loans on SC303, Unsecured Commercial Loans, SC330 Other Consumer Loans or SC689 

Other Assets, code 26. 

9. U.S. Treasury tax and loan account balances credited prior to the reporting date that are 

automatically converted into open-ended interest-bearing notes. Report such balances in 

liabilities on SC796, Other Liabilities and Deferred Income. 

10. Hypothecated deposits, deposits accumulated for the payment of loans. Deduct these from the 

related loan. 

11. Accumulated gain or loss, change in fair value, on deposits attributable to the designated risk 

being hedged on a qualifying fair-value hedge. Report on SC715, Unamortized Yield Adjustments 

on Deposits and Escrows. 

SC712: Escrows 

Report all escrow funds held by your savings association and your consolidated subsidiaries on behalf of 

others. Include only those accounts where the institution or its consolidated subsidiary is a party to the 

escrow agreement. 

Include: 

1. Tax and insurance escrows for mortgage loans. 

2. Escrow accounts you have established pursuant to loan servicing agreements, including both tax 

and insurance and principal and interest escrows. 

3. Custodial accounts you have established pursuant to loan servicing agreements. 

4. Credit balances of uninvested trust funds that you hold. Do not offset balances of different 

accounts. Report only accounts with credit balances; accounts with debit balances should be 

reported as loans. However, we permit netting for overdrafts in principal or income cash in 

individual trust accounts maintained in the same right and capacity. 

5. Amounts that you hold in conjunction with the sale of travelers’ checks, money orders, and similar 

instruments. 

 SCHEDULE SC 225 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

6. Amounts you hold and have not yet remitted in conjunction with the sale or issuance of 

government bonds, mutual funds, or other securities. 

7. Refundable loan commitment fees you have received prior to loan disbursement. 

8. Refundable amounts you received from stock subscribers for unissued stock. 

9. Amounts that you have withheld from employee compensation for payment to a third party such 

as withholding taxes, health and life insurance premiums, and pension funds. 

10. Interest you have withheld from deposits for remittance to taxing authorities. . 

11. Interest you have accrued on escrows included above. 

Do not include: 

1. Advances for borrowers’ taxes and insurance, T&I escrow accounts with debit balances. If you or 

your consolidated subsidiaries own the related loan, report the advances on SC275, Advances for 

Taxes and Insurance. If you service the related loan for others, report them on SC689, Other 

Assets, as Code 09. 

2. Advances to investors for loans you serviced for others prior to receipt from the borrower. Report 

as assets on SC689, Other Assets, Code 09. 

3. Custodial accounts held by a depositor for another for example, a custodial account held for a 

minor where the parent or some other depositor is the custodian. Report as deposits on SC710. 

4. IRA and Keogh accounts. Report as deposits on SC710. 

5. Escrows where the funds are deposited in other depository institutions. Report as liabilities on 

SC796, Other Liabilities, Code 99. 

6. Accumulated gain or loss on escrows attributable to the designated risk being hedged on a 

qualifying fair-value hedge. Report on SC715, Unamortized Yield Adjustments on Deposits and 

Escrows. 

7. Escrows where your holding company or unconsolidated affiliate is a party to the escrow 

agreement and where you are not a party to the escrow agreement. Report on SC710, Deposits. 

SC715: Unamortized Yield Adjustments on Deposits and Escrows 

Report the unamortized balance of discounts and premiums on deposits. Report the face amounts of the 

related deposits on SC710 and SC712. These yield adjustments are amortized to interest expense on 

SO215, Interest Expense on Deposits. This data field may be negative, representing a debit. . 

Include: 

1. Discounts and premiums resulting from initially recording purchased deposits and escrows at fair 

value. 

2. Discounts and premiums related to accounting for a derivative instrument embedded in deposits 

and escrows as either a separate asset or liability. 

3. The accumulated gain or loss (the change in fair value) on deposits and escrows attributable to 

the designated risk being hedged on a qualifying fair value hedge. 

4. Unamortized brokers fees. 

Do not include: 

1. Yield adjustments related to advances and borrowings; these directly reduce the related 

borrowing. 

2. Core deposit intangibles resulting from an acquisition, merger, or change in control. Report on 

SC660, Goodwill and Other Intangible Assets. 

SCHEDULE SC 226 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

BORROWINGS 

Adjust the balance due for (1) discounts and premiums; and (2) the accumulated gain or loss on 

borrowings attributable to the designated risk being hedged on a qualifying fair-value hedge. Amortize the 

discounts and premiums to interest expense. Report issuance costs related to borrowings in SC689, 

Other Assets. 

SC72: Total 

The EFS software will compute this line as the sum of SC720 through SC760. 

SC720: Advances from FHLBank 

Report all FHLBank borrowings. 

Include: 

1. All FHLBank advances. 

2. Deferred commitment fees you paid on FHLBank advances; these reduce the outstanding 

balance. 

3. Prepayment penalties you paid on FHLBank advances that qualify for deferral under GAAP; 

these reduce the outstanding balance. Generally FHLBank prepayment penalties should be 

expensed on SO580, Other Noninterest Expense. However, in limited circumstances, 

prepayment penalties may be deferred and amortized as a yield adjustment on SO230, Interest 

Expense: Advances from FHLBank. 

Do not include: 

1. Amounts due a FHLBank in the form of securities sold under agreements to repurchase. Report 

on SC730. 

2. Accrued interest. Report on SC766, Other Accrued Interest Payable. 

SC730: Federal Funds Purchased and Securities Sold Under 

Agreements to Repurchase 

Include: 

1. Funds you received from securities sold under agreements to repurchase that do not meet the 

criteria for sale treatment, and are therefore accounted for as secured borrowings, including retail 

repurchase, dollar-reverse-repurchase, and dollar-roll agreements. 

2. Amounts due a FHLBank in the form of securities sold under agreements to repurchase. 

3. Federal Funds purchased. 

Include in the gain or loss on the sale funds received from transactions accounted for as a sale, such as, 

yield maintenance, dollar-reverse-repurchase agreements, and certain dollar-roll transactions. Note that 

the repurchase transaction and subsequent investment of these borrowed funds are independent 

transactions. Therefore, you should not offset any income generated by this subsequent investment by 

the interest expense incurred in the reverse repurchase transaction. Report interest income on SO115, 

Interest Income on Deposits and Investment Securities, and interest expense on SO260, Interest 

Expense: Other Borrowed Money. 

SC736: Subordinated Debentures (Including Mandatory Convertible 

Securities and Limited-Life Preferred Stock) 

Report subordinated debentures and mandatorily convertible securities that you or your consolidated 

subsidiaries issued, net of premiums and discounts. For thrifts that have elected to be taxed under 

 SCHEDULE SC 227 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

Subchapter S or are organized in mutual form, include the full amount of all subordinated debt securities 

issued to the Treasury Department under the CPP. Include REIT preferred stock issued by a consolidated 

subsidiary to a third party that you report as a liability. Report related issuance costs on SC689, Other 

Assets. 

SC740: MORTGAGE-COLLATERALIZED SECURITIES ISSUED 

Report all mortgage-collateralized securities issued by you and your consolidated subsidiaries adjusted 

for issuance costs, discounts, and premiums. 

SC760: Other Borrowings 

Report all other borrowings not included on SC720 through SC745. 

Include: 

1. Redeemable preferred stock issued by consolidated subsidiaries to third parties. 

2. Mortgages and other encumbrances on your office premises or real estate owned for which you 

are liable. 

3. Obligations of an employee stock ownership plan (ESOP) to a lender other than yourself, when 

such reporting is required under GAAP. 

4. The underlying mortgage in a wrap-around loan unless the holder of the underlying mortgage has 

accepted a subordinated position, in which case you deduct the underlying loan against the 

related loan. 

5. Senior liens on foreclosed real estate. 

6. Overdrafts in your transaction accounts in other depository institutions, where there is no right of 

set-off against other accounts in the same financial institution. If the overdraft is in a zero-balance 

account or an account that is not routinely maintained with sufficient balances to cover checks 

drawn in the normal course of business, you should include in deposits the funds received or held 

in connection with checks drawn on the other depository institutions. 

7. Commercial paper that you have issued. 

8. Liabilities for capital leases related to assets that you’ve reported on SC55. 

9. Eurodollar issues. 

10. The liability from a sale of loans with recourse accounted for as a financing. 

11. The related liability for delinquent mortgage loans previously securitized with Ginnie Mae, where 

you have an unconditional repurchase option. The recording of such mortgage loans and the 

related liability is required under GAAP. 

12. Clearing items. 

13. Purchase acquisition debt. 

14. Borrowings from the Federal Reserve Bank. 

Do not include: 

1. Accrued interest due and payable. Report on SC766, Other Accrued Interest Payable. 

2. Redeemable preferred stock you have issued. Report on SC800, Noncontrolling Interest. 

You must charge the interest and dividends on all borrowings and yield adjustments reported on this line 

to expense on SO260, Other Borrowed Money. You must not net the interest expense against the 

interest income on the related asset.

SCHEDULE SC 228 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

OTHER LIABILITIES 

SC75: Total 

The EFS software will compute this line as the sum of SC763 through SC796. 

SC763: Accrued Interest Payable - Deposits 

Report accrued interest that has not been credited to deposit or escrow accounts. 

Do not include: 

Interest withheld from deposits for remittance to taxing authorities. Report on SC712, Escrows. 

SC766: Accrued Interest Payable - Other 

Include: 

Accrued interest and dividends due on borrowings that you have reported on SC720 through SC760. 

SC776: Accrued Taxes 

Include: 

1. Current portion of federal, state, and local income taxes. 

2. Real estate taxes. 

3. Employer’s share of payroll taxes. 

4. Other miscellaneous taxes. 

Do not include: 

1. Taxes withheld from employees’ salaries. Report on SC712, Escrows. 

2. Tax accrual accounts with debit balances. Report as accounts receivable on SC689, Other 

Assets, as Code 03. 

3. Interest withheld from deposits for remittance to taxing authorities. Report on SC712, Escrows. 

SC780: Accounts Payable 

Report the amount accrued for services, supplies, materials, and other expenses. 

Reclassify accounts payable with material debit balances to accounts receivable. Report on SC689, 

Other Assets, as Code 14. 

SC790: Deferred Income Taxes 

Report net deferred income taxes with a credit balance. Report deferred income taxes from the same 

jurisdiction net. Report net debit balances as deferred tax assets on SC689, Other Assets, Code 04. 

SC796: Other Liabilities and Deferred Income 

Report the total of liabilities not reported elsewhere on Schedule SC. You can find a list of the types of 

liabilities to be included in the memo items detailing other liabilities below. 

Memo: Detail of Other Liabilities 

Report the three largest items constituting the amount reported on SC796. You should select codes best 

describing these items from the list below and report them on SC791, 794, and 797; report the 

corresponding amounts on SC792, 795, and 798. You must complete this detail if you report an amount 

 SCHEDULE SC 229 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

on SC796. You should combine similar accounts, for example, all nonrefundable loan fees received prior 

to loan disbursement should be combined and reported as 04. However, you should not combine unlike

accounts in reporting code 99. You may have more than one code 99 if you cannot find codes describing 

the items you report. 

SC791, 794 and 797: Codes 

01 Dividends payable on stock. 

02 No longer used 

03 No longer used 

04 Nonrefundable loan fees received prior to loan disbursement. 

05 Deferred gains from sale/leaseback where the resulting lease is an operating lease. 

06 Balances in U.S. Treasury tax and loan accounts administered under the note option that 

provide for the conversion of the previous day’s balance to an interest-bearing demand note. 

07 Deferred gains from the sale of real estate recorded under the percentage-of-completion or 

deposit methods. 

08 Negative investments in entities accounted for under the equity method. 

09 Fees received for standby contracts and other option arrangements where the savings 

association is obligated to purchase or sell securities at the option of the other party. 

10 Amounts due brokers for unsettled transactions. 

11 The liability recorded for pensions and other postretirement benefits. 

12 No longer used. 

13 Amounts payable under interest-rate-swap agreements. 

14 Unapplied loan payments received for which the customer’s account will be credited as of the 

date of receipt. 

15 Liability when the benefits of a loan servicing contract are not expected to adequately 

compensate the servicer. 

16 Recourse loan liability. 

 Do not include liabilities for credit losses on off-balance-sheet credit exposures; include these 

under code 21. 

17 Non-interest-bearing payables due to holding companies and affiliates. 

18 Litigation reserves. 

19 Nonrefundable stock subscriptions. Note that refundable stock subscriptions are reported as 

escrows on SC712. 

20 Fair value of all derivative instruments reportable as liabilities. 

21 Liabilities for credit losses on off-balance-sheet credit exposures. 

 Include liabilities established for credit losses on commitments, standby letters of credit, and 

guarantees. Do not include liabilities for sale of loans with recourse; include these under code 

16. 

22 Deposit insurance assessments payable. 

99 Other. Use this code only for those items not identified above.

Do not include: 

1. Escrows. Report on SC712, Escrows. 

2. Deferred credits classified as contra-assets, such as loans in process and deferred loan fees. 

Deduct these from the related asset. 

3. Yield adjustments on deposits. Report on SC715, Unamortized Yield Adjustments on Deposits 

and Escrows. 

4. Yield adjustments, commitment fees, and issue costs on FHLBank advances and other 

borrowings. Report as part of the borrowings’ balance. 

SCHEDULE SC 230 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

 SCHEDULE SC 231 

5. Accrued interest on escrow accounts. Report on SC712, Escrows, or SC763, Accrued Interest 

Payable - Deposits. 

6. U.S. Treasury tax and loan accounts administered under the remittance option requiring the 

remittance of the previous day’s balance to a federal reserve bank. Report on SC710, Deposits. 

7. Unapplied loan payments received for which the customer’s account will be credited as of the 

date of transfer rather than the date of receipt from the customer. Report on SC710, Deposits. 

SC792, 795, and 798: Amount 

Report the dollar amounts corresponding to the codes reported on SC791, 794, and 797. 

SC70: TOTAL LIABILITIES 

The EFS software will compute this line as the sum of SC71, SC72, and SC75. 

EQUITY CAPITAL 

PERPETUAL PREFERRED STOCK 

Include: 

1. Preferred stock you issued that is nonredeemable by the purchaser and that qualifies as equity 

capital under GAAP. 

2. Preferred stock convertible into common stock. 

Report preferred stock net of issuance costs, premiums, and discounts. If you issued preferred stock 

above par value, include the amount paid in excess of par with the par value. 

Dividends on perpetual preferred stock reduce retained earnings when declared. Report them on SI620, 

Dividends Declared on Preferred Stock. 

Do not include: 

1. Redeemable preferred stock you issued. Report on SC800, Noncontrolling Interest. 

2. Redeemable preferred stock issued by a consolidated subsidiary. Report on SC760, Other 

Borrowings. 

3. Permanent preferred stock issued by a consolidated subsidiary. Report on SC800, 

Noncontrolling Interest. 

SC812: Cumulative 

Report permanent preferred stock where the stockholders are entitled to receive unpaid dividends before 

the payment of dividends on other classes of stock. Include U.S. Treasury Department Capital Purchase 

Program preferred stock and warrants. 

SC814: Noncumulative 

Report permanent preferred stock whose dividends do not accumulate if unpaid. 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

SCHEDULE SC 232 

COMMON STOCK 

SC820: Par Value 

Report the par value of all outstanding common stock – permanent, reserve, or guaranty stock – that you 

have issued. 

If the par value of common stock issued is less than $500, report “1” in this data field to indicate that it is 

not zero, and, if necessary, reduce the amount that you report on SC830 by one. 

You must reduce retained earnings at the time that you declare dividends on common stock. Report the 

reduction of retained earnings on SI630, Dividends Declared on Common Stock. 

Do not include deductions for: 

1. Stock you reacquired – treasury stock. Report as a negative on SC891, Other Components of 

Equity Capital. 

2. Unallocated ESOP shares. Report as a negative on SC891, Other Components of Equity Capital. 

SC830: Paid in Excess of Par 

Include: 

1. Amounts paid in excess of par value from the issuance of common stock for cash or nonmonetary 

assets. Deduct the costs of issuing common stock. 

2. Permanent capital contributions by the stockholders not related to the purchase of stock. 

Do not include: 

Paid-in capital from the issuance of preferred stock. Report on SC812 or SC814, Perpetual Preferred 

Stock. 

ACCUMULATED OTHER COMPREHENSIVE INCOME 

SC86: Total 

The EFS software will compute this line as the sum of Unrealized Gains (Losses) on Available-for-Sale 

Securities (SC860), Gains (Losses) on Cash Flow Hedges (SC865), and Other Accumulated Other 

Comprehensive Income (SC870). 

SC860: Unrealized Gains (Losses) on Certain Securities 

Report unrealized gains (losses), net of taxes, for you and your subordinate organizations on securities 

and on certain nonsecurity financial instruments (CNFIs) classified as available for sale (AFS). 

Gains and losses reported here are not reported in the statement of operations until either the asset is 

sold, an other-than-temporary impairment loss is recognized, or this amount is amortized in accordance 

with the following paragraph. 

Include the unamortized amount of the unrealized gain or loss at the date of transfer of debt securities 

transferred from AFS to held-to-maturity (HTM). Continue to report this gain or loss on this line until it is 

completely amortized over the remaining life of the security as an adjustment of yield in the same manner 

as a discount or premium. 

In addition, report on this line the amount of the other-than-temporary impairment (OTTI) on AFS and 

HTM debt securities that is related to all factors other than credit, where that amount is appropriately 

recognized in other comprehensive income. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

Do not report unrealized gains (losses) on securities and CNFIs as valuation allowances. 

Report this data field as negative when your unrealized losses exceed unrealized gains. 

Do not include declines in fair value that you judge to be other-than-temporary. Report such losses in 

earnings on SO441, Other-Than-Temporary Impairment Charges on Debt and Equity Securities. 

SC865: Accumulated Gains (Losses) on Cash Flow Hedges 

Report the accumulated fair value gain or loss, net of taxes, on cash flow hedges. 

SC870: Other 

Report any accumulated other comprehensive income not included on SC860 or SC865. 

Include: 

1. Any minimum pension liability adjustment. 

2. Any cumulative foreign currency translation adjustments and qualifying foreign currency 

transaction gains and losses, net of applicable income taxes. 

3. Any other items of accumulated other comprehensive income. 

SC880: RETAINED EARNINGS 

Retained earnings are your accumulated net income since inception less distributions to shareholders 

and amounts transferred to other equity capital accounts. 

Include: 

1. Undistributed income – net income from interim periods of operation prior to closing your books; 

2. Retained earnings from prior operating periods. 

3. Restrictions or appropriations of retained earnings as designated by your board of directors. 

4. If you are in receivership, a deduction for the amount by which liabilities exceed identified assets, 

because you may not report goodwill upon conversion to receivership. 

SC891: OTHER COMPONENTS OF EQUITY CAPITAL 

Report amounts reported under GAAP as separate components of equity capital. In most cases the 

amounts in this data field will be negative, as these items typically reduce equity capital. 

Include: 

1. Treasury stock. 

2. Unearned employee stock ownership plan (ESOP) shares, when such reporting is required under 

GAAP. 

SC80: TOTAL SAVINGS ASSOCIATION EQUITY CAPITAL 

The EFS software will compute this line as the sum of SC812, SC814, SC820, SC830, SC86, SC880, 

plus SC891. 

 SCHEDULE SC 233 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

SCHEDULE SC 234 

SC800: NONCONTROLLING INTERESTS IN CONSOLIDATED 

SUBSIDIARIES 

Include: 

Common and perpetual preferred stock issued by consolidated subsidiaries to third parties 

constituting a noncontrolling interest. 

Report any net income or loss attributable to noncontrolling interest in a consolidated subsidiary on 

SO880, Net Income (Loss) Attributable to Noncontrolling Interests. 

SC84: TOTAL EQUITY CAPITAL 

The EFS software will compute this line as the sum of SC80 plus SC800. 

SC90: TOTAL LIABILITIES AND EQUITY CAPITAL 

The EFS software will compute this line as the sum of SC70 and SC84. This line must equal SC60, Total 

Assets. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

SCHEDULE SO — CONSOLIDATED STATEMENT 

OF OPERATIONS 

Throughout these instructions, you and your refers to the reporting savings association and its 

consolidated subsidiaries; we and our refers to the Office of Thrift Supervision. 

Complete this Statement of Operations, Schedule SO, on a consolidated basis from the savings 

association downward. Do not consolidate your holding company. You should apply generally accepted 

accounting principles (GAAP) unless we specifically state otherwise in these instructions. Report net 

income or loss attributable to noncontrolling shareholders on SO880, Net Income (Loss) Attributable to 

Noncontrolling Interests. 

Report income and expense for the quarter ending on the report date, regardless of your fiscal year end. 

Do not report data in Schedule SO on a year-to-date basis. Note that GAAP requires the accrual basis of 

accounting. 

When you correct errors made in prior periods within the current calendar year, you should report them in 

the same data field in which you would have reported them on the original report. However, you should 

not report them in the same data field if the adjustment distorts yields for the quarter or results in negative 

numbers in fields that do not permit negatives. Where the latter would occur, you may include the 

adjustments in Other Noninterest Income, SO488, or Other Noninterest Expense, SO580. Generally, you 

may file amendments only within 45 days of the report date. For further information on correcting prior 

period errors, see Item 5 in the General Instructions. 

INTEREST INCOME 

The balance of financial assets carried at fair value where the changes in fair value are reflected in 

current earnings is reported on SI376. For such assets, report the interest income earned on the 

appropriate lines described in this section, unless it is not appropriate under GAAP to recognize income 

(for example, where a loan is on nonaccrual status because of collectibility concerns). Report the 

changes in fair value of such assets in noninterest income on SO485. 

SO11: TOTAL 

The EFS software will compute this line as the sum of SO115 through SO172. 

 SCHEDULE SO 301 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

302 SCHEDULE SO 

SO115: DEPOSITS AND INVESTMENT SECURITIES 

Report income on all deposits and investments included in SC112 through SC185. 

Include: 

1. The gross income earned on all deposits and investment securities including those you use as 

collateral under agreements to resell. 

2. The net amount of yield adjustments made to interest and dividend income on deposits and 

investment securities. 

Do not include: 

Interest on assets reported on SC689, Other Assets. Report this interest on SO488, Other 

Noninterest Income. 

SO125: MORTGAGE-BACKED SECURITIES 

Report income on mortgage-backed securities reported on SC210 through SC228, including amortization 

of premiums and discounts. 

SO141: MORTGAGE LOANS 

Report income on mortgage loans, including amortization of yield adjustments, reported on SC230 

through SC265. Do not include prepayment fees, late fees, and assumption fees on mortgage loans. 

If you have bought or sold a participating interest in mortgage loans, report only the interest applicable to 

the portion of the loans you own. If you have purchased mortgage loans or participating interests in 

mortgage loans on a net-yield basis, report the net interest earned. 

If you assume a liability to a third party in connection with a wrap-around mortgage loan where you report 

the assumed liability on SC760, Other Borrowings, report the gross interest income and charge the 

interest incurred on the assumed liability to expense on SO260, Interest Expense on Other Borrowed 

Money. 

SO142: PREPAYMENT FEES, LATE FEES, AND ASSUMPTION FEES 

FOR MORTGAGE LOANS 

Report the total prepayment fees, late fees, and assumption fees received for mortgage loans. 

NONMORTGAGE LOANS: 

Report the contractual interest earned and the net yield adjustments on nonmortgage loans. 

SO160: Commercial Loans and Leases 

Report the net interest earned, including any yield adjustments, on commercial nonmortgage loans that 

you reported on SC300 through SC306, Secured and Unsecured Commercial Loans and Financing 

Leases. Do not include prepayment fees, late fees, and assumption fees on commercial loans and 

leases.
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

SO162: Prepayment Fees, Late Fees, and Assumption Fees for 

Commercial Loans 

Report the total prepayment fees, late fees, and assumption fees received for commercial loans. 

SO171: Consumer Loans and Leases 

Report income including any yield adjustments on consumer loans reported on SC35. Include with yield 

adjustments the amortization of credit card fees. Do not include prepayment fees, late fees, and 

assumption fees on consumer loans and leases. 

SO172: Prepayment Fees, Late Fees, and Assumption Fees for 

Consumer Loans 

Report the total prepayment fees, late fees, and assumption fees received for consumer loans. 

DIVIDEND INCOME ON EQUITY INVESTMENTS NOT 

CARRIED AT FAIR VALUE 

SO18: TOTAL 

The EFS software will compute this line as the sum of SO181 and SO185. 

SO181: FEDERAL HOME LOAN BANK STOCK 

Report cash and stock dividends on FHLBank stock reported on SC510. 

SO185: OTHER 

Report dividend and interest income on investments reported on SC540 accounted for using the cost 

method, including interest income on advances (secured and unsecured) that are included in SC540. Do 

not include net income or loss recorded under the equity method; include this on SO488, Other 

Noninterest Income, using Code 06. 

INTEREST EXPENSE 

The balance of financial liabilities carried at fair value where the changes in fair value are reflected in 

current earnings is reported on SI377. For such liabilities, report the interest expense incurred on the 

appropriate lines described in this section. Report the changes in fair value of such liabilities in 

noninterest income on SO485. 

SO21: TOTAL 

The EFS software will automatically compute this line as the sum of SO215 through SO260, less SO271. 

 SCHEDULE SO 303 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

SO215: DEPOSITS 

Report the sum of the following: 

1. All interest expense on deposits that you reported on SC710, Deposits. 

2. The amortization of yield adjustments to deposits that you reported on SC715, Unamortized Yield 

Adjustments, less the amount for penalties charged to depositors for early withdrawals. 

Do not include: 

Interest on escrow accounts that you reported on SC712, Escrows. Report the interest on escrow 

accounts on SO225. 

SO225: ESCROWS 

Report interest expense on escrows reported on SC712, Escrows. 

SO230: ADVANCES FROM FHLBANK 

Report interest expense and the amortization of any related yield adjustments on FHLBank advances that 

you reported on SC720, Advances from FHLBank. 

Generally FHLBank prepayment penalties should be expensed on SO580, Other Noninterest Expense. 

However, in limited circumstances, prepayment penalties may be deferred and amortized as a yield 

adjustment increasing interest expense. 

SO240: SUBORDINATED DEBENTURES (INCLUDING MANDATORY 

CONVERTIBLE SECURITIES) 

Report interest, dividends, and the amortization of yield adjustments on all subordinated debentures, 

mandatory convertible securities, and REIT preferred stock that you or your consolidated subsidiaries 

issued and that you reported on SC736, Subordinated Debentures (Including Mandatory Convertible 

Securities and Limited Life Preferred Stock). 

SO250: MORTGAGE COLLATERALIZED SECURITIES ISSUED 

Report interest expense and amortization of yield adjustments on all mortgage collateralized securities 

that you issued and that you reported on SC740 and SC745, Mortgage Collateralized Securities Issued. 

SO260: OTHER BORROWED MONEY 

Report interest expense and amortization of yield adjustments on borrowings not included above. 

Include interest on: 

1. SC730, Federal Funds Purchased and Securities Sold Under Agreements to Repurchase. 

2. SC760, Other Borrowings. 

Report the gross amount of interest that you pay on securities sold under agreements to repurchase and 

loans sold with recourse accounted for as financings. Do not reduce the amount of interest that you paid 

for such securities or loans by the amount of interest income you received on the securities and loans 

sold under such agreements. 

304 SCHEDULE SO 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

 SCHEDULE SO 305 

SO271: CAPITALIZED INTEREST 

Interest charges incurred on borrowings are added to the cost of certain assets that are constructed or 

otherwise produced, or while the activities necessary to commence planned principal operations of the 

assets are in progress. Report all such capitalized interest costs. Do not use an interest rate that 

exceeds the weighted average rate for total interest-bearing deposits and other liabilities. Capitalized 

interest will be deducted from interest expense. Therefore, report this as a positive number even though 

it will always be a credit balance. 

SO312: NET INTEREST INCOME (EXPENSE) BEFORE 

PROVISION FOR LOSSES ON INTEREST-BEARING 

ASSETS 

The EFS software will automatically compute this line as SO11 plus SO18 less SO21. 

SO321: NET PROVISION FOR LOSSES ON INTERESTBEARING ASSETS 

Report the provision for losses on all earning assets, including loans, as well as debt and equity securities 

Report credit balances as negative. 

For a discussion on how to calculate provision for losses, refer to the general instructions for Schedule 

VA. 

Do not report adjustments to valuation allowances as prior period expenses. Report adjustments to 

valuation allowances as an expense in the period in which you determined the amount of the loss even if 

the loss actually occurred in a prior period. 

Include: 

1. Losses you recognized in marking loans to fair value at the time of foreclosure or in-substance 

foreclosure. 

Do not include: 

1. Adjustments to available-for-sale securities for unrealized gains or losses. Report the adjustments 

on SC860, Unrealized Gains (Losses) on Available-for-Sale Securities. 

2. Adjustments to trading assets. Report on SO485, Net Income (Loss) from Trading Assets 

(Realized and Unrealized). 

3. Recoveries of valuation allowances at the time of sale. Include these in the gain or loss on the 

sale. 

4. Provisions for losses on noninterest-bearing assets. Report the provision for losses on SO570, 

Net Provision for Losses on Non-interest-bearing Assets. 

5. Adjustments to or recording of a liability for off-balance-sheet commitments or contingencies; 

include these in SO580, Other Noninterest Expense.
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL

306 SCHEDULE SO 

SO332: NET INTEREST INCOME (EXPENSE) AFTER 

PROVISION FOR LOSSES ON INTEREST-BEARING 

ASSETS 

The EFS software will automatically compute this line as SO312 less SO321. 

NONINTEREST INCOME 

Do not include material adjustments to income from prior calendar years; refer to page 3 of the General 

Instructions for procedures to correct prior periods. 

SO42: TOTAL 

The EFS software will compute this line as the sum of SO410 through SO488. 

SO410: MORTGAGE LOAN SERVICING FEES 

Include: 

1. Fees earned from servicing mortgage loans for others. 

2. Impairment losses on servicing assets reported on SC642. 

Do not include: 

1. Servicing fees for nonmortgage loans. Report the servicing fees on nonmortgage loans on 

SO420, Other Fees and Charges. 

2. Amortization of loan servicing assets or liabilities and valuation adjustments for classes of loan 

servicing accounted for using the amortization method. 

3. Fair value adjustments for classes of servicing carried at fair value. 

Report the difference between the net interest retained from mortgage loan servicing and the amortization 

or other write-down of mortgage servicing assets. Do not deduct servicing expenses. 

SO411: AMORTIZATION OF AND FAIR VALUE ADJUSTMENTS TO 

LOAN SERVICING ASSETS AND LOAN SERVICING 

LIABILITIES 

Report the total servicing amortization and valuation adjustments. 

Include: 

1. Amortization of loan servicing assets or liabilities and valuation adjustments for classes of loan 

servicing accounted for using the amortization method 

2. Fair value adjustments for classes of servicing carried at fair value.
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010

SO420: OTHER FEES AND CHARGES 

Report all fees and charges not reported on SO410. 

Include: 

1. Loan servicing fee income on nonmortgage loans, including credit card servicing income. 

2. Trust fee income. 

3. Amortization of commitment fees when it is unlikely that the borrower will exercise the 

commitment. 

4. Brokerage fee income. 

5. Annuity fee income. 

6. Insurance premiums, fees, and commissions. 

7. Transaction account fees, including overdraft and non-sufficient funds (NSF) fees. 

8. Credit enhancement fees. 

9. All other fees not reported on SO410. 

Do not include: 

Amortization of loan fees. Report amortization of loan fees as a yield adjustment to interest income. 

NET INCOME (LOSS) FROM: 

Report net income or loss on the categories below. Enter a loss as negative. 

SO430: SALE OF AVAILABLE-FOR-SALE SECURITIES 

Report the realized gain or loss from the sale of available-for-sale securities. When you sell securities 

classified as available-for-sale, reverse the amount of the unrealized gain or loss previously recorded on 

SC860, Unrealized Gains (Losses) on Available-for-Sale Securities, and report the entire difference 

between amortized cost and net sales proceeds in earnings. 

SO431: SALE OF LOANS AND LEASES HELD FOR SALE

Report the realized gain or loss from the sale of loans and leases held for sale. In computing the gain or 

loss, the cost of the loans and leases sold reflect the associated valuation allowances. 

Do not include “lower of cost or fair value” adjustments on such assets. Rather, report such amounts on 

SO465. 

SO432: SALE OF OTHER ASSETS HELD FOR SALE 

Report the gain or loss from the sale of other assets held for sale. 

Do not include “lower of cost or fair value” adjustments on such assets. Rather, report such amounts on 

SO465. 

 SCHEDULE SO 307 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL

SO441: OTHER-THAN-TEMPORARY IMPAIRMENT CHARGES ON 

DEBT AND EQUITY SECURITIES 

Report other-than-temporary impairment (OTTI) charges on debt and equity securities. Such charges 

reflect losses resulting from the recognition of credit losses and/or losses related to all factors other than 

credit. These OTTI losses are not necessarily related to any sale of the securities. 

Do not report losses from the sale of securities on this line. Rather report those losses on SO430, 

SO467, SO475, or SO477, as appropriate. 

SO461: Operations and Sale of Repossessed Assets 

Include: 

1. Net income or loss from repossessed assets reported on SC40, Repossessed Assets. Report 

direct expenses on repossessed assets, even if there is no income. 

2. Gains and losses from the sale of repossessed assets reported on SC40, Repossessed Assets. 

Do not include: 

1. Adjustments to valuation allowances established on REO. Report these adjustments on SO570, 

Net Provision for Losses on Noninterest-Bearing Assets. 

2. Write-downs taken when marking foreclosed assets to fair value at time of foreclosure. Report 

these write-downs on SO321, Net Provision for Losses on Interest-bearing Assets. 

SO465: LOCOM Adjustments Made to Assets Held for Sale 

Report adjustments to assets held for sale to value them at the lower-of-cost-or-market. The amounts 

reported here should directly adjust the asset and should not be established as a valuation allowance. 

Do not include: 

1. Any unrealized gains or losses on available-for-sale securities. Report these unrealized gains or 

losses only as a separate component of equity capital on SC860. 

2. Profit or loss on the sale of assets held for sale. Report the profit or loss on SO430. 

3. Operating income and expense from mortgage banking activities. Report in the appropriate 

income or expense category. 

SO467: Sale of Securities Held-to-Maturity 

Include: 

1. Gains and losses from the sale or other disposition of mortgage-backed securities that you 

reported on SC210 through SC228, Mortgage-Backed Securities, and that were held-to-maturity. 

2. Gains and losses from the sale or other disposition of securities that you reported on SC130 

through SC185, Cash, Deposits and Investment Securities, and that were held-to-maturity. 

Do not include: 

1. Gains and losses from the sale of securities held in a trading portfolio. Report these gains or 

losses on SO485. 

2. Gains and losses from the sale of available-for-sale securities. Report these gains and losses on 

SO430.

308 SCHEDULE SO 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010

SO475: Sale of Loans Held for Investment 

Report gains and losses from the sale or other disposition of mortgage and nonmortgage loans that you 

reported on SC230 through SC265 and SC300 through SC330. 

Do not include: 

1. Gains and losses from the sale of loans and securities in a trading portfolio. Report these gains 

and losses on SO485; 

2. Gains and losses from the sale of loans held for sale. Report these gains and losses on SO431. 

3. Recoveries of losses previously written off. Report on VA140, Recoveries. 

SO477: Sale of Other Assets Held for Investment 

Report gains and losses from the sale or other disposition of any assets that you did not report on SO430 

through SO475 or SO485. 

Include: 

1. Gains and losses from the sale of real estate held for investment reported on SC45, Real Estate 

Held for Investment, that you may account for as current income. 

2. Gains and losses from the sale of a branch operation or a portion thereof, such as deposits. 

3. Gains and losses from the sale of loan servicing rights when sold separately from the loan. 

4. Gains and losses from the sale of subsidiaries. 

SO485: Gains and Losses on Financial Assets and Liabilities Carried 

at Fair Value 

The balances of financial assets and liabilities carried at fair value where the change in fair value is 

reflected in current earnings are reported on SI376 and SI377. For such instruments, report interest 

income earned and interest expense incurred on the appropriate lines under Interest Income and Interest 

Expense, and report the changes in fair value in noninterest income on this line. 

Derivatives are financial assets and liabilities, and therefore the balances of derivatives are included on 

SI376 and SI377. In general for derivatives, include the changes in fair value in noninterest income on 

this line. However, for derivatives subject to fair value or cash flow hedge accounting, it may be 

appropriate under GAAP to include the changes in fair value that are reflected in current earnings in other 

lines on Schedule SO, including interest income or interest expense. 

The balance of available-for-sale securities (carried at fair value) is reported on SI385. For such 

instruments, the changes in fair value are not reflected in current earnings, but rather in other 

comprehensive income net of any deferred tax impact. Accordingly, do not include the changes in fair 

value on available-for-sale securities on this line. Rather, report such changes in other comprehensive 

income on SI662. 

Under a “fair value option”, servicing assets may be carried at fair value with the changes in fair value 

reflected in current earnings. However, servicing assets are not financial assets, and therefore the 

balance is not included on SI376. Accordingly, do not include the changes in fair value on servicing 

assets on this line. Rather, report such changes in noninterest income on SO411. 

Include: 

1. Realized and unrealized gains and losses on financial assets and liabilities carried at fair value 

where the balances are reported on SI376 and SI377. 

 SCHEDULE SO 309 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL

310 SCHEDULE SO 

2. Realized and unrealized gains and losses on financial assets held for trading purposes where the 

balance is reported on SI375 (and where the balance is also included on SI376). 

SO488: Other Noninterest Income 

Report the total of all noninterest income that you did not include on SO410 through SO485. You can find 

a list of the types of income to include under Memo: Detail of Other Noninterest Income below. 

Do not include: 

1. Loan servicing fees. Report these fees on SO410 or SO420, as appropriate; 

2. Trust fee income. Report this income on SO420. 

3. Other fees. Report these fees on SO420. 

Memo: Detail of Other Noninterest Income 

SO489, 495, 497 and SO492, 496, and 498: 

Report the three largest items comprising the amount reported on SO488, excluding dividends on 

FHLBank stock. Codes best describing these items should be selected from the list below and reported 

on SO489, 495, and 497. You must complete this detail if you reported an amount on SO488. 

Because SO488 may consist of both positive and negative amounts – for example, net income or loss 

from leasing operations, you should report the three amounts that have the greatest impact on the total, 

regardless of their sign. Therefore, when selecting the three largest amounts comprising the amount 

reported on SO488, disregard the sign of the number. However, although you should disregard the sign 

when you select the three largest numbers; you should use the correct sign when you report the amount. 

Combine similar accounts with the same code; that is, do not report a code more than once. However, 

you should not combine unlike accounts in reporting code 99. You may have more than one code 99 if 

you cannot find codes describing the items you report. 

SO489, 495, and 497: Codes 

01 No longer used 

02 Interest income from income tax refunds. 

03 No longer used 

04 Net income or loss from leasing or subleasing space in the association’s office quarters, future 

office quarters, and parking lots. 

05 Net income or loss from real estate held for investment. 

06 Net income or loss from investments in unconsolidated subordinate organizations and passthrough investments, accounted for using the equity method, after the elimination of 

intercompany profits. 

07 Net income or loss from leased property. 

08 No longer used. 

09 Net income from data processing equipment leased or services provided to others. 

10 No longer used. 

11 Adjustments to prior periods. 

12 Income received on real estate acquired through foreclosure or deed in lieu of foreclosure on 

VA or FHA loans pending conveyance to the insuring agency. 

13 No longer used 

14 Income from interest-only strip receivables and certain other instruments reported on SC665. 

15 Income from corporate-owned life insurance 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010

Report adjustments to cash surrender value of corporate-owned life insurance that you 

reported on SC615 and SC625. 

18 The excess of fair value over cost of net assets acquired in a purchase business combination 

(negative goodwill) recognized in earnings at the date of combination. 

99 Other. (Use this code only for an item not identified above.) 

SO492, 496, and 498: Amounts 

Report the dollar amounts (using the correct positive or negative sign) corresponding to the codes 

reported on SO489, 495, and 497. 

NONINTEREST EXPENSE 

Do not include material adjustments to expenses from prior calendar years; refer to page 3 of the 

General Instructions for procedures to correct prior periods. 

SO51: TOTAL 

The EFS software will compute this line as the sum of SO510 through SO580. 

SO510: ALL PERSONNEL COMPENSATION AND EXPENSE 

Report gross salaries, wages, bonuses, and other compensation and expenses of officers, directors and 

employees, whether employed full- or part-time. 

Include: 

1. The cost of temporary help and employment contractors. 

2. Fringe benefits such as the employer’s share of payroll taxes, insurance premiums, lunchroom 

expenses, tuition fees, uniforms, parking, and other such benefits. 

3. Bonuses and awards. 

4. Employer contributions to pension and retirement funds and ESOP plans. 

5. Pensions paid directly by you. 

6. Lump-sum pension contributions. 

7. Payments related to past services, such as severance pay. 

8. Directors’ fees. 

9. Travel and other expenses for directors, officers, and employees. 

10. The fair value of employee stock options granted. 

Do not include: 

Allowances for privately owned automobiles used in connection with your business, or any depreciation 

and other noninterest expense incurred on leased automobiles. Report these figures on SO530. 

SO520: LEGAL EXPENSE 

Report all legal fees and retainers, including accruals and amortization. 

Do not include material legal settlements; most settlement payments should be reported on SO580.

 SCHEDULE SO 311 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL

312 SCHEDULE SO 

SO530: OFFICE OCCUPANCY AND EQUIPMENT EXPENSE 

Include: 

1. Depreciation and other expenses of association-owned space, capital leases, furniture and 

fixtures, automobiles and equipment reported on SC55, Office Premises and Equipment. 

2. Amortization of leasehold improvements. 

3. Rent, net of the amortization of deferred gain on a sale/leaseback. 

4. Uncapitalized equipment purchases. 

5. Taxes, assessments, and insurance premiums on office premises, equipment, and land for future 

use. 

6. Rental costs, maintenance contracts, and expenses on office furniture, machines, and data 

processing equipment. 

7. Accounting servicing fees paid to a data center. 

If a portion of office premises and equipment is leased to others, allocate related expenses to SO488, 

Other Noninterest Income. When actual data are not available, a reasonable, consistent, and 

documented estimate is acceptable. 

SO540: MARKETING AND OTHER PROFESSIONAL SERVICES 

Include: 

1. Advertising, production, agency fees, and direct mail. 

2. Market research, including consultants. 

3. Public relations, including consultants, seminars, or customer magazines. 

4. Sales training by consultants. 

5. Public accountants’ fees. 

6. Management services. 

7. Consulting fees for economic surveys. 

8. Other special advisory services. 

Do not include: 

1. Legal fees; report on SO520. 

2. Data processing fees; report on SO530. 

3. Supervisory examination fees; report on SO580. 

4. Deposit promotions, giveaways, premiums, and commissions that are capitalized. Report 

amortization on SO215, Interest Expense on Deposits. 

SO550: LOAN SERVICING FEES 

Report fees paid to others to service mortgage and nonmortgage loans. 

Include: 

1. Fees for servicing loans owned by you. 

2. Fees for servicing loans owned by others where you own the servicing rights. 

Do not include: 

1. Amortization of loan servicing assets. Report the amortization on SO411.
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010

2. Servicing fees for loans acquired on a net yield basis. Deduct the servicing fees from related 

interest income. 

SO560: GOODWILL AND OTHER INTANGIBLES EXPENSE 

Report write-downs and expense related to the assets reported on SC660, Goodwill and Other Intangible 

Assets. 

Include amortization of: 

1. Core deposit premium, an identifiable intangible asset. 

2. Intangible pension assets recorded. 

3. Technology-based intangible assets, such as computer software. 

4. Other intangible assets, excluding servicing assets. 

Also, include impairment write-downs on goodwill and other intangible assets. 

Do not include amortization of Servicing assets; report this on SO410. 

SO570: NET PROVISION FOR LOSSES ON NON-INTEREST-BEARING 

ASSETS 

Report the provision for losses on all non-interest-bearing assets. Report credit balances as negative. 

Refer to the general instructions for Schedule VA for a discussion of how to properly calculate provision 

for losses. Report adjustments to valuation allowances as an expense in the period in which you 

determine the amount of the loss even if that loss actually occurred in a prior period. 

Include adjustments to valuation allowances on: 

1. Real estate owned. 

2. Other assets. 

Do not include: 

1. Recoveries of valuation allowances at the time of sale. Include these recoveries in the gain or 

loss on the sale. 

2. Provisions for losses on interest-bearing assets. Report the losses on SO321, Net Provision for 

Losses on Interest-bearing Assets. 

3. Direct charge-offs of servicing assets. Report the direct charge-offs on SO410, Mortgage Loan 

Servicing Fees. 

4. Losses recognized in marking foreclosed assets to fair value at the time of foreclosure or insubstance foreclosure. Report these as losses on loans on SO321, Net Provision for Losses on 

Interest-bearing Assets. 

 SCHEDULE SO 313 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL

314 SCHEDULE SO 

SO580: OTHER NONINTEREST EXPENSE 

Report the total of all noninterest expense not included on SO510 through SO570. A list of the types of 

expense you should include appears below in the memo items detailing other noninterest expense. 

Memo: Detail of Other Noninterest Expense 

Report the three largest items comprising the amount you reported on SO580. Select codes best 

describing these items from the list below and report the codes on SO581, 583, and 585. Report the 

corresponding amounts on SO582, 584, and 586. You must complete this detail if an amount is reported 

on SO580. 

If SO580 consists of both positive and negative amounts, you should report the three amounts that have 

the greatest impact on the total, regardless of their sign. Therefore, when selecting the three largest 

amounts comprising the amount reported on SO580, disregard the sign of the number. However, 

although you should disregard the sign when you select the three largest numbers; you should use the 

correct sign when you report the amount. 

Combine similar accounts with the same code; that is, do not report a code more than once. However, 

you should not combine unlike accounts in reporting code 99. You may have more than one code 99 if 

you cannot find codes describing the items you report. 

SO581, 583, and 585: Codes 

01 Deposit Insurance premiums. 

02 OTS assessments. 

03 Interest expense on income taxes. 

04 Interest expense on Treasury tax and loan accounts administered under the note option. 

05 Forfeited commitment fees on FHLBank advances not taken down by the association. 

06 Supervisory examination fees. 

07 Office supplies, printing, and postage. 

08 Telephone, including data lines. 

09 Loan origination expense 

Include appraisal reports, credit reports, and other similar expenses; also include, as a negative 

amount, reversals of origination costs when such costs are capitalized. 

10 ATM expense. 

11 Adjustments to prior periods (and other immaterial audit adjustments). 

12 Acquisition and organization costs, including mergers and branch office acquisitions. 

13 Miscellaneous taxes other than income taxes and real estate taxes. 

14 Losses from fraud. 

15 Foreclosure expenses. 

16 Web site expenses. 

17 Charitable Contributions. 

99 Other. (Use this code only for an item not identified above.) 

SO582, 584, and 586: Amounts 

Report the dollar amounts corresponding to the codes reported on SO581, 583 and 585.
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010

 SCHEDULE SO 315 

SO60: INCOME (LOSS) BEFORE INCOME TAXES 

The EFS software will compute this line as the sum of SO332 plus SO42 less SO51. 

INCOME TAXES 

SO71: TOTAL 

The EFS software will compute this line as the sum of SO710 and SO720. 

SO710: FEDERAL 

Report federal income tax expense. Report a net credit as negative. 

Include: 

1. Deficiency payments, penalties. 

2. Immaterial adjustments to correct prior period accruals for which the amendment cycle is no 

longer open. 

3. Amortization of prepaid or deferred federal income taxes. 

4. Reductions for refunds from prior periods not previously reported. 

5. Reductions for NOL carrybacks. 

Do not include: 

Interest income and expense on tax accounts. Report these on SO488, Other Noninterest Income, or 

SO580, Other Noninterest Expense. 

SO720: STATE, LOCAL, AND OTHER 

Report state, local, and other income tax expenses. Report a net credit as negative. 

Include: 

1. Deficiency payments, penalties. 

2. Immaterial adjustments to correct prior period accruals for which the amendment cycle is no 

longer open. 

3. Amortization of prepaid or deferred state, local and other income taxes. 

4. Reductions for refunds from prior periods not previously reported. 

5. Reductions for NOL carrybacks. 

6. Gross receipts taxes. 

Do not include: 

1. Interest income and expense on tax accounts. Report these on SO488, Other Noninterest 

Income, or SO580, Other Noninterest Expense. 

2. Any local taxes other than those based on income. Report real estate taxes on SO530, Office 

Occupancy and Equipment Expense; report franchise and other local taxes on SO580, Other 

Noninterest Expense.
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL

SO81: INCOME (LOSS) BEFORE EXTRAORDINARY ITEMS 

The EFS software will compute this line as the sum of SO60 less SO71. 

SO811: EXTRAORDINARY ITEMS 

Extraordinary items are material events and transactions that are unusual and infrequent. Both of these 

conditions must exist for an event or transaction to be an extraordinary item. 

 Unusual – To be unusual, an event or transaction must be highly abnormal or clearly unrelated to the 

ordinary and typical activities of the association. An event or transaction beyond the control of 

management is not automatically considered unusual. 

 Infrequent – To be infrequent, an event or transaction should not reasonably be expected to recur in 

the foreseeable future. Although the past occurrence of an event or transaction provides a basis for 

estimating the likelihood of its future occurrence, the absence of a past occurrence does not 

automatically imply that an event or transaction is infrequent. 

Rarely do events or transactions qualify for treatment as extraordinary items. Among those that qualify 

are: 

 Losses that result directly from a major disaster such as an earthquake (except in areas where 

earthquakes are expected to recur in the foreseeable future); 

 Gains or losses from a government expropriation; 

 Gains or losses from discontinued operations; or 

 Losses from a prohibition under a newly enacted law or regulation. 

Do not include: 

1. Adjustments to valuation allowances. Report these on SO32, Net Provision for Losses on 

Interest-Bearing Assets, or SO570, Net Provision for Losses on Noninterest-Bearing Assets, even 

if the actual loss occurred in a prior period. 

2. Audit adjustments for corrections of accruals. For information on correcting prior period errors, 

see Item 5 in the General Instructions. 

3. Adjustments for periods where the cycle is open for amendments to the TFR. Refer to the 

general instructions for the submission of amended reports. 

4. Adjustments related to prior interim periods of your current fiscal year. Report these adjustments 

currently in the appropriate current income or expense data field. 

5. Net income or loss allocable to noncontrolling shareholders. Report in SO488, Other Noninterest 

Income. 

6. Gains and losses on extinguishments of debt that do not meet the criteria for classification as an 

extraordinary item. Generally prepayment penalties should be expensed on SO580, Other 

Noninterest Expense. 

316 SCHEDULE SO 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010

 SCHEDULE SO 317 

SO88: NET INCOME (LOSS) ATTRIBUTABLE TO SAVINGS 

ASSOCIATION AND NONCONTROLLING INTERESTS 

The EFS software will compute this line as the sum of SO81 plus SO811. 

SO880: NET INCOME (LOSS) ATTRIBUTABLE TO 

NONCONTROLLING INTERESTS 

Report the net income or loss attributable to noncontrolling interests in consolidated subsidiaries. This 

amount will be subtracted in computing SO91, Net Income (Loss) Attributable to Savings Association. 

Accordingly, enter net income as a positive amount and a net loss as a negative amount. 

SO91: NET INCOME (LOSS) ATTRIBUTABLE TO SAVINGS 

ASSOCIATION 

The EFS software will compute this line as the sum of SO88 less SO880.
THIS PAGE INTENTIONALLY LEFT BLANK 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010

Real Estate: 

VA606: Construction 

Report the amount of provision for loss established for specific valuation allowances and the transfers 

between general valuation allowances on SC405, Repossessed Assets: Real Estate: Construction. 

VA614: 1-4 Dwelling Units 

Report the amount of provision for loss established for specific valuation allowances and the transfers 

between general valuation allowances on SC415, Repossessed Assets: Real Estate: 1-4 Dwelling Units. 

VA617: Multifamily (5 or More) Dwelling Units 

Report the amount of provision for loss established for specific valuation allowances and the transfers 

between general valuation allowances on SC425, Repossessed Assets: Real Estate: 5 or More Dwelling 

Units. 

VA626: Nonresidential (Except Land) 

Report the amount of provision for loss established for specific valuation allowances and the transfers 

between general valuation allowances on SC426, Repossessed Assets: Real Estate: Nonresidential 

(Except Land). 

VA629: Land 

Report the amount of provision for loss established for specific valuation allowances and the transfers 

between general valuation allowances on SC428, Repossessed Assets: Real Estate: Land. 

VA632: Other Repossessed Assets 

Report the amount of provision for loss established for specific valuation allowances and the transfers 

between general valuation allowances on SC430, Other Repossessed Assets. 

VA72: Real Estate Held for Investment 

Report the amount of provision for loss established for specific valuation allowances and the transfers 

between general valuation allowances on SC45, Real Estate Held for Investment. 

VA822: Equity Investments Not Carried at Fair Value 

Report the amount of provision for loss established for specific valuation allowances and the transfers 

between general valuation allowances the assets reported on SC51, Equity Investments Not Carried at 

Fair Value. 

VA932: Other Assets 

Report the amount of provision for loss established for specific valuation allowances and the transfers 

between general valuation allowances on SC689, Other Assets. 

ADJUSTED NET CHARGE-OFFS 

The EFS software automatically generates this column. 

 SCHEDULE VA 413 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

414 SCHEDULE VA 

This column totals: 

 Charge-offs 

 Less Recoveries 

 Plus specific valuation allowance provisions and transfers from general allowances 

Therefore, this total represents adjusted net charge-offs. 

OTHER ITEMS 

TROUBLED DEBT RESTRUCTURED: 

A troubled debt restructuring (TDR) occurs when you, as a creditor, for economic or legal reasons 

related to the debtor’s financial difficulties, grant a concession to the debtor that you would not otherwise 

consider. That concession either stems from an agreement between you and the debtor or is imposed by 

law or a court. Whatever the form of concession you grant to the debtor, your objective is to make the 

best of a difficult situation. Additionally, you expect to obtain more cash or other value from the debtor by 

granting the concession than by not granting it. 

You may accept any of the following when you restructure a troubled debt: 

1. A note, secured or unsecured, from a third party as payment of your receivable from the 

borrower. 

2. The underlying collateral as payment of the loan, either through foreclosure, other title transfer, or 

in-substance foreclosure. 

3. Other assets in payment of a loan. 

4. An equity interest in either the borrower or its assets in lieu of its receivable. 

5. A modification of the debt terms, including, but not limited to the following: 

a. Reduction in stated interest rate. 

b. Extension of maturity. 

c. Reduction in the face amount of the debt. 

d. Reduction in the accrued interest. 

Include: 

1. Restructured real estate loans that are equity investments under GAAP and that you reported on 

SC45, Real Estate Held for Investment. 

2. Restructured loans that you reported on SC230 through SC265 (Mortgage Loans) and SC300 

through SC330 (Nonmortgage Loans). 

3. Foreclosed assets that you reported on SC405 through SC430 (Repossessed Assets). 

4. Troubled debt restructurings even if you recorded no losses this quarter, but had previous 

charge-offs. 

5. Purchased loans whose terms have been modified. 

VA940: Amount this Quarter 

Report the amount of new TDR this quarter. Report the recorded investment less specific valuation 

allowances in the restructured asset after restructuring. The recorded investment is the outstanding 

principal balance, adjusted for charge-offs and unamortized yield adjustments. The restructured asset 

would comprise, for instance, a modified loan or foreclosed asset (if loss was incurred). Report all new 

TDR even if you subsequently sold or otherwise disposed of the asset during the quarter.
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010

VA970: Doubtful 

Report all assets, portions of assets, and off-balance-sheet items classified doubtful as of the end of the 

quarter pursuant to the Examination Handbook Section 260 and 12 CFR § 560.160. 

VA975: Loss 

Report all assets, portions of assets, and off-balance-sheet items classified loss as of the end of the 

quarter pursuant to Examination Handbook Section 260 and 12 CFR. § 560.160. 

You should deduct any related specific valuation allowances, accumulated charge-offs, and recorded 

liabilities prior to reporting the amount of assets classified loss. Accordingly, you should generally report 

zero in this data field. 

OTHER 

VA979: Credit Card Charge-Offs Related to Accrued Interest 

Report the amount of loss that you charged off on credit cards (SC328) due to accrued interest. 

PURCHASED IMPAIRED LOANS HELD FOR INVESTMENT 

Report purchased impaired loans as defined by FASB ASC 310-30 (Receivables; Loans and Debt 

Securities Acquired Deteriorated Credit Quality) that your savings association has purchased, including 

those acquired in a purchase business combination, when there is evidence of deterioration of credit 

quality since the origination of the loan and it is possible, at the purchase date, that the savings 

association will be unable to collect all contractually required payments receivable. Any nonaccrual 

status and any nonaccrual purchased impaired loans should be reported accordingly in Schedule PD. 

For those purchased impaired loans that are not on nonaccrual status, you should determine the loans’ 

delinquency status in accordance with the contractual repayment terms of the loans without regard to the 

purchase price of (initial investment in) these loans or the amount and timing of the cash flows expected 

at acquisition. 

VA980: Outstanding Balance (Contractual) 

Report the outstanding balance of purchased impaired loans. The outstanding balance is the 

undiscounted sum of all amounts, including amounts deemed principal, interest, fees, penalties, and other 

under the loan, owed to the savings association at the report date, whether or not currently due and 

whether or not any such amounts have been charged off by the savings association. However, the 

outstanding balance does not include amounts that would be accrued under the contract as interest, fees, 

penalties, and other after the report date. 

VA981: Recorded Investment (Carrying Amount Before Deducting Any 

Loan Loss Allowances) 

Report the recorded investment (carrying amount before deducting any loan loss allowances) as of the 

report date of the purchased impaired loans held for investment. Loans held for investment are those 

loans that the savings association has the intent and ability to hold for the foreseeable future or until 

maturity or payoff. Thus, the outstanding balance and recorded investment of any purchased impaired 

loans that are held for sale would not be reported in these memorandum items. 

 SCHEDULE VA 417 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

418 SCHEDULE VA 

VA985: Allowance Amount Included In Allowance for Loan and Lease 

Losses (SC283, SC357) 

Report the amount of post-acquisition loan loss allowances for purchased impaired loans held for 

investment that is included in the total amount of the allowance for loan and lease losses as of the report 

date. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

SCHEDULE PD – CONSOLIDATED PAST DUE 

AND NONACCRUAL 

Throughout these instructions, you and your refers to the reporting savings association and its 

consolidated subsidiaries; we and our refers to the Office of Thrift Supervision. 

Report all loans and leases that you own that are contractually past due or are in nonaccrual status, 

regardless of whether such loans are held for sale or are secured, unsecured, or guaranteed by the 

Government or by others. Report the entire loan, not simply the amount of the delinquent payment. You 

should report the balance of the recorded investment after deducting specific valuation allowances. 

Recorded investment is the principal balance, adjusted for charge-offs and unamortized yield 

adjustments. 

PAST DUE 

1. Do not take grace periods into account when determining past due status. 

2. Report loans and lease financing receivables as past due when either interest or principal is unpaid 

in the following circumstances: 

a) Amortizing closed-end mortgage loans, closed-end nonmortgage installment loans, and any 

other loans and lease financing receivables with: 

i) Payments scheduled monthly – when the borrower’s interest and/or principal amount is 

past due thirty or more days (or one calendar month). For example, a loan payment is due 

March 15th. At March 31, the loan is not a full month past due, so it would not be reported in 

Schedule PD until after April 15th. On April 30 it would be 30 – 89 days past due. 

ii) Payments scheduled other than monthly – when one scheduled payment of interest 

and/or principal is due and unpaid for 30 calendar days or more. 

b) Open-end loans such as home equity loans, charge-card plans, check credit, and other revolving 

credit plans when the customer has not made the minimum payment for two or more billing 

cycles. 

c) Single payment and demand notes providing for the payment of interest at stated intervals 

(such as certain construction loans) after one interest payment is due and unpaid for 30 days or 

more. 

d) Single payment notes providing for the payment of interest at maturity if interest or principal 

remains unpaid for 30 days or more after maturity. 

e) Unplanned overdrafts if the account remains continuously overdrawn for 30 days or more. 

 SCHEDULE PD 501 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

 

3. For purposes of reporting on Schedule PD, lines PD115 through PD380, determine the delinquency 

status of purchased loans (including purchased impaired loans) and other purchased financial assets 

in accordance with the contractual repayment terms. Report a delinquent loan at its recorded 

investment after deducting specific valuation allowances, not at its contractual balance due. 

You have the option to use actual days as stated in the schedule headings in lieu of months when you 

calculate the past due period. 

Example using months (instead of actual days): 

In this example, the payment is due on the first of the month and the first payment missed is the one due 

March first. 

Actual Days Complete Months Past-Due 

Payment Payments Overdue At Overdue At Category At 

Due Date Missed Month-End Month-End Month-End 

March 1 (one) 30 0 Under 30 Days 

April 1 (two) 60 1 30 - 89 Days 

May 1 (three) 91 2 30 - 89 Days 

June 1 (four) 121 3 90 Days or More 

In the March TFR, you would not report this loan in Schedule PD. In the June TFR, you would report this 

loan in either the 90 Days or More or Nonaccrual category. 

Example using actual days: 

In this example, the payment is due on the first of the month and the first payment missed is the one due 

first. 

Actual Days Past-Due 

Payment Payments Overdue At Category At 

Due Date Missed Month-End Month-End 

March 1 (one) 30 30 - 89 Days 

April 1 (two) 60 30 - 89 Days 

May 1 (three) 91 90 Days or More 

June 1 (four) 121 90 Days or More 

In the March TFR, you would report this loan the 30 - 89 Days category. In the June TFR, you would 

report this loan in either the 90 Days or More or Nonaccrual category. 

Partial Payments for Amortizing Closed-end Loans: 

When borrowers make partial payments, they get credit for the amount of payment they make, so the 

loan will generally not be reported as past due until two or more months of partial payments have been 

made. 

For example: 

If the payment due were $100 and the borrower, due to a temporary condition, only paid $25 a month, the 

loan would be $75 past due at the end of the first month, $150 past due the second month, and $225 past 

due the third month. 

If the loan were due on January 1, the loan would be $75 past due on February 1 (and February 28), 

$150 past due on March 1 (and March 31), and $225 on April 1 (and April 30). On the March 31 TFR, the 

loan would be more than 30 days delinquent and would be reported as 30-89 days past due on Schedule 

PD. 

Likewise, if the borrower paid $50 a month, the loan would be $50 past due on February 1 (and February 

28), $100 past due on March 1 (and March 31), and $150 on April 1 (and April 30). Again, on the March 

31 TFR, the loan would be 30 days delinquent and reported as 30-89 days past due. 

502 SCHEDULE PD 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

However, if the borrower paid $51 a month, the loan would be $49 past due on February 1 (and February 

28), $98 past due on March 1 (and March 31), and $147 on April 1 (and April 30). Therefore, on the 

March 31 TFR, the loan would be less than 30 days delinquent and would not be reported as past due. 

Restructured loans: 

You need not maintain a loan in nonaccrual status where you have formally restructured the loan so that 

you are reasonably assured of repayment and of performance according to the modified terms, provided 

the restructured loan is well secured and collection under the revised terms is probable. To determine 

probability of collection, consider the borrower’s sustained historical repayment performance for a 

reasonable period, which may take into account performance prior to restructuring. A sustained period of 

repayment performance generally would equal a minimum of six months and would involve payments of 

cash or cash equivalents. 

Do not include: 

1. Loans on which interest is being accrued for record-keeping purposes but not for reporting 

purposes. 

2. Accrued interest and advance payments of borrowers’ taxes and insurance unless they have 

been capitalized to the loan balance. 

3. Deductions for allowances for loan and lease losses (ALLL) or the assumed liability of wraparound loans applicable to such loans. 

NONACCRUAL 

Report loans on which you no longer accrue interest. 

Interest does not accrue on: 

1. An asset that you maintain on a cash basis due to the borrower’s deteriorating financial position. 

2. An asset for which you do not expect to receive full payment of interest or principal. 

3. An asset with principal or interest in default unless the value of the property securing the loan 

exceeds the receivable balance, including principal, interest, and escrows, and collection is 

probable. 

MORTGAGE LOANS: 

PD115, 215, AND 315:CONSTRUCTION 

Report loans included on SC230 through SC240, Construction Loans. 

Permanent, Secured by: 

1-4 Dwelling Units: 

PD121, PD221, and PD321: Revolving, Open-End Loans 

Report past due and nonaccrual revolving, open-end mortgages on 1-4 dwelling units reported on SC251. 

All Other: 

PD123, PD223, and PD323: Secured by First Liens 

Report past due and nonaccrual mortgages with a first lien on 1-4 dwelling units reported on SC254. 

 SCHEDULE PD 503 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

 

PD124, PD224, and PD324: Secured by Junior Liens 

Report past due and nonaccrual mortgages with a junior lien on 1-4 dwelling units reported on SC255. 

PD125, 225, and 325: Multifamily (5 or More) Dwelling Units 

Report loans included on SC256, Permanent Mortgages on: Multifamily (5 or More) Dwelling Units. 

PD135, 235, and 335: Nonresidential Property (Except Land) 

Report loans included on SC260, Permanent Mortgages on: Nonresidential Property (Except Land). 

PD138, 238, and 338: Land 

Report loans included on SC265, Permanent Mortgages on: Land. 

NONMORTGAGE LOANS AND LEASES: 

PD140, 240, AND 340: COMMERCIAL 

Report loans and leases included on SC300 through SC306, Nonmortgage Loans: Commercial Loans. 

CONSUMER LOANS: 

PD161, 261, and 361: Loans on Deposits 

Report loans included on SC310, Consumer Loans: Loans on Deposits. 

PD163, 263, and 363: Home Improvement Loans 

Report loans included on SC316, Consumer Loans: Home Improvement Loans. 

PD165, 265, and 365: Education Loans 

Report loans included on SC320, Consumer Loans: Education Loans. 

PD167, 267, and 367: Auto Loans 

Report loans included on SC323, Consumer Loans: Auto Loans. 

PD169, 269, and 369: Mobile Home Loans 

Report loans included on SC326, Consumer Loans: Mobile Home Loans. 

PD171, 271, and 371: Credit Cards 

Report past due and nonaccrual consumer credit cards reported on SC328 

PD180, 280, and 380: Other 

Report past due and nonaccrual consumer loans reported on SC330. 

504 SCHEDULE PD 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

 SCHEDULE PD 505 

PD10, 20, AND 30: TOTAL 

The EFS software automatically computes these totals as the sum of PD115 through PD180 on PD10, 

the sum of PD215 through PD280 on PD20, and the sum of PD315 through PD380 on PD30. 

MEMORANDA: 

PD190, 290, AND 390: TROUBLED DEBT RESTRUCTURED 

INCLUDED ABOVE 

Report troubled debt restructurings that you included above in Schedule PD. Refer to the instructions for 

VA942 for a discussion of troubled debt restructured. These lines plus the amount reported on VA942 will 

equal the total troubled debt restructured included in your balance sheet as of the quarter end. 

PD192, 292, AND 392: LOANS AND LEASES REPORTED IN 

PD115 – PD380 THAT ARE HELD FOR 

SALE 

Report loans and leases held for sale that are included above in Schedule PD. 

PD195, 295, AND 395: LOANS AND LEASES REPORTED IN 

PD115 – PD380 THAT ARE WHOLLY OR 

PARTIALLY GUARANTEED BY THE U.S. 

GOVERNMENT, AGENCY, OR 

SPONSORED ENTITY 

Report the recorded investment included above in Schedule PD of past due or nonaccrual loans that are 

wholly or partially recoverable from the U.S. Government, its agencies, and its government sponsored 

entities. Include loans and leases that are both (a) covered by FDIC loss sharing agreements, and (b) 

reported as delinquent loans on schedule PD, lines PD115 through PD 380. 

PD196, 296, AND 396: GUARANTEED PORTION OF OTHER 

LOANS AND LEASES INCLUDED IN 

PD195-PD395 (EXCLUDE REBOOKED 

“GNMA LOANS”) 

Report the guaranteed portion of loans (excluding rebooked “GNMA loans”) reported in PD195 through 

PD395 above. 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

PD197, 297, AND 397 REBOOKED “GNMA LOANS” 

REPURCHASED OR ELIGIBLE FOR 

REPURCHASE INCLUDED IN 

PD195 – PD395 

Report the amount of “GNMA loans” repurchased or eligible for repurchase that are reported in PD195 

through PD395 above. 

LOANS IN PROCESS OF FORECLOSURE: 

Report the amount of loans currently in process of foreclosure. Loans in process of foreclosure include 

loans that have been issued a notice of default, or lis pendens, or notice of trustee sale, or notice of 

foreclosure sale. Do not include loans where the foreclosure process has been completed (properties 

that have been repurchased by your institution and taken into real estate owned). 

PD415: Construction Loans 

Report the amount of loans included in SC230, SC235, and SC240 that are currently in process of 

foreclosure. 

PD421: 1-4 Dwelling Units Secured by Revolving Open-End Loans 

Report the amount of loans included in SC251 that are currently in process of foreclosure. 

PD 423: 1-4 Dwelling Units Secured by First Liens 

Report the amount of loans included in SC254 that are currently in process of foreclosure. 

PD 424: 1-4 Dwelling Units Secured by Junior Liens 

Report the amount of loans included in SC255 that are currently in process of foreclosure. 

PD425: Multifamily (5 or More) Dwelling Units 

Report the amount of loans included in SC256 that are currently in process of foreclosure. 

PD 435: Nonresidential Property (Except Land) 

Report the amount of loans included in SC260 that are currently in process of foreclosure. 

PD 438: Land Loans 

Report the amount of loans included in SC265 that are currently in process of foreclosure. 

PD40: TOTAL 

The EFS software automatically computes this total as the sum of PD415 through PD438. 

506 SCHEDULE PD 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

CC330: TO SELL LOANS 

Report outstanding commitments to sell whole mortgage and nonmortgage loans and participating 

interests. 

TO PURCHASE OR SELL MORTGAGE-BACKED SECURITIES AND 

INVESTMENT SECURITIES 

Report all commitments to purchase mortgage-backed securities and investment securities whether or not 

they are accounted for as derivatives (e.g., when-issued, regular-way trades, or normal purchases and 

sales) on the appropriate line: CC335, CC355, CC365, or CC375. Report commitments to purchase and 

sell when-issued securities that are accounted for as derivatives on a gross basis (except you may net 

purchases and sales of the identical security with the same party). For example, report a GSE To-BeAnnounced (TBA) mortgage-backed security where there is expectation of physical delivery upon 

issuance of the security (regular-way trade) on CC335. Similarly, report a GSE TBA where there is no 

expectation of delivery, and therefore, accounted for as a forward contract, also on CC335. 

CC335: TO PURCHASE MORTGAGE-BACKED SECURITIES 

Report outstanding commitments to purchase mortgage-backed securities of the types included on 

SC210 through SC222. 

CC355: TO SELL MORTGAGE-BACKED SECURITIES 

Report outstanding commitments to sell mortgage-backed securities of the types included on SC210 

through SC222. 

CC365: TO PURCHASE INVESTMENT SECURITIES 

Report outstanding commitments to purchase investment securities of the types reported on SC130 

through SC185. 

CC375: TO SELL INVESTMENT SECURITIES 

Report outstanding commitments to sell investment securities of the types reported on SC130 through 

SC185. 

LINES AND LETTERS OF CREDIT: 

UNUSED LINES OF CREDIT: 

Report all unused lines of credit that you issue in connection with credit cards or open-end loans. 

Unused lines of credit are defined as the difference between the amount authorized by contract and the 

actual amount outstanding at quarter-end. 

Do not include loans-in-process on constructions loans; report construction LIP on CC105. 

 SCHEDULE CC 703 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

CC412: Revolving Open-End Loans On 1-4 Dwelling Units 

Report unused lines of credit on mortgage loans on 1-4 dwelling units for revolving, open-end loans 

(home equity lines of credit) reported on SC251. 

CC420: Commercial Lines 

Report unused lines of credit on nonmortgage commercial loans reported on SC300, SC303, and SC306. 

Open-End Lines: 

CC423: Credit Cards-Consumer

Report unused lines of credit on consumer credit cards reported on SC328. 

CC424: Credit Cards-Other 

Report unused lines of credit on business credit cards reported on SC304. 

CC425: Other 

Report unused lines of credit on consumer loans reported on SC330, including credit extended to 

individuals under prearranged overdraft plans. 

LETTERS OF CREDIT 

Report the undrawn portion of outstanding letters of credit at the end of the quarter. Do not report any 

other type of commitment. Report most other types of commitments on CC280 through CC375. 

There are two classifications of letters of credit: 

1. A commercial letter of credit is one where the issuer expects to pay drafts or other demands for 

payment. 

2. A standby letter of credit is one where the issuer stands ready to pay in the unexpected event 

that the customer defaults or fails to perform on the underlying contract with the third party. 

Do not include unused lines of credit. 

CC430: Commercial 

Report the undrawn portion of commercial letters of credit. 

CC435: Standby, Not Included on CC465 or CC468 

Report the undrawn portion of all standby letters of credit not included on CC465 or CC468. Include both 

collateralized and uncollateralized standby letters of credit. 

RECOURSE OBLIGATIONS AND DIRECT CREDIT 

SUBSTITUTES 

If you have recourse obligations, residual interests, credit-enhancing interest-only strips, subordinated 

securities, or direct credit substitutes, you should use the lines below to report these interests and the 

amount of assets that they enhance. 

704 SCHEDULE CC 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

You may find it helpful to review the definitions in 12 CFR 567.1. While that section does not include a 

specific definition for subordinated securities, in context you should consider subordinated securities as a 

type of direct credit substitute. 

You also use these lines to report exposures associated with certain nonsecurity financial instruments 

reported on SC665, Interest-Only Strip Receivables and Certain Other Instruments. 

CC455: TOTAL PRINCIPAL AMOUNT OF ALL ASSETS COVERED BY 

RECOURSE OBLIGATIONS OR DIRECT CREDIT 

SUBSTITUTES 

Report the outstanding principal balance of assets you enhance, fully or partially, by recourse obligations, 

credit-enhancing interest-only strips, residual interests, subordinated securities, or direct credit 

substitutes. 

Include: 

1. The full amount of assets enhanced by your recourse obligations, requiring you to absorb credit 

losses on assets held by a third party. 

Example: If you sell $1000 in loans, and agree to absorb the first 10% of losses, you report 

$1000 on this line, and $100 on line CC468. 

2. The full amount of assets enhanced by your residual interests. 

Example: If you create and securitize a $1000 pool of loans and you sell $900 and retain a “first 

loss” residual interest of $100, you report $1,000 on this line and $100 on line CC468. 

3. The full amount of assets enhanced by your subordinated securities: 

Example: If you buy a subordinated security in a senior/subordinated structure, the total structure 

is $1,000, and your subordinated security is $200, you report $1,000 on this line and $200 on line 

CC465. 

4. The full amount of assets enhanced by your letters of credit, or other direct credit substitutes, 

both collateralized and uncollateralized, to cover credit obligations of another party. 

Example: If you provide a simple line of credit of $100 to another party, you report $100 on this 

line, and $100 on line CC465. 

Example: If you provide a line of credit of $100 to another party that is available to enhance the 

other party’s “first loss” or otherwise subordinate obligation on a $1,000 loan pool, you report 

$1000 on this line and $100 on line CC465. 

5. Assets covered by recourse obligations even if the obligation is limited to 120 days or less. 

Do not Include: 

Positions subordinate to your own. 

Example: If you have retained a $100 mezzanine “second loss” security in a $1000 pool of assets 

that you have securitized or purchased and you have sold the $100 first loss security (subordinate to 

your security) and the $800 security (senior to your security), you report $900 on this line and $100 

on line CC468. 

CC465: AMOUNT OF DIRECT CREDIT SUBSTITUTES ON ASSETS IN 

CC455 

Include the amount of direct credit substitutes, including purchased credit-enhancing interest-only strips, 

purchased subordinated securities, and other similar exposures that you have purchased from another 

party. 

 SCHEDULE CC 705 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

706 SCHEDULE CC 

Report the face amount of the exposure, residual, or security that you have purchased from another 

party, or the face amount of a letter of credit that you supply to another party. Refer to the examples in 

item 4, CC455 above. 

CC468: AMOUNT OF RECOURSE OBLIGATIONS ON ASSETS IN 

CC455 

Include the amount of recourse obligations, as well as residuals, credit-enhancing interest-only strips, and 

subordinated securities which arise from your own securitization activities. 

Report the face amount of the exposure, residual, or security that arises from your own securitization 

activities. Include letters of credit issued on behalf of affiliates or on behalf of any securitization trust that 

you have created. Refer to the examples under CC455 above. 

AMOUNT OF RECOURSE OBLIGATIONS ON LOANS IN CC468 

WHERE RECOURSE IS LIMITED TO: 

CC469: 120 DAYS OR LESS 

Report the face amount of the exposure on loans included in CC468 where the recourse obligations 

expire within 120 days or less. 

CC471: GREATER THAN 120 DAYS 

Report the face amount of the exposure on loans included in CC468 where the recourse obligations 

expire beyond 120 days. 

CC480: OTHER CONTINGENT LIABILITIES 

Report all contingent liabilities that you do not report elsewhere in this schedule or in Schedule SC. 

CC490: CONTINGENT ASSETS 

Report all contingent assets not reported elsewhere in this schedule or Schedule SC. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

SCHEDULE CF — CONSOLIDATED CASH FLOW 

INFORMATION 

Throughout these instructions, you and your refers to the reporting savings association and its 

consolidated subsidiaries; we and our refers to the Office of Thrift Supervision. 

GENERAL INSTRUCTIONS 

You should report on this schedule only the activity of you and your consolidated subsidiaries. Do not 

include activity of your holding company, affiliates, or unconsolidated subsidiaries. Do not report as new 

activity the following: bulk sales and purchases of loans and deposits, branch purchases and 

sales, and assets and deposits acquired through a merger. In the case of a merger of depository 

institutions, you should report activity for all institutions involved in the merger for the entire quarter. If 

you have been acquired by a holding company where you used pushdown accounting, you should 

report your activity for the entire quarter regardless of the date of acquisition. 

MORTGAGE-BACKED SECURITIES 

Report purchases and sales of securities included on SC210 through SC222, including those that you 

purchased and sold during the same quarter. 

PASS-THROUGH: 

CF143: Purchases 

Report the purchase price of mortgage-backed securities reported on SC210 and SC215 that you 

purchased during the quarter. 

CF145: Sales 

Report the carrying value of mortgage pool securities reported on SC210 and SC215 that you sold during 

the quarter. 

CF148: Other Balance Changes 

Report other balance changes of mortgage pool securities reported on SC210 and SC215. Include cash 

repayments of principal and amortization of discounts and premiums. Report as negative amounts 

decreases in the security balance, and as positive amounts, increases in the security balance. 

 SCHEDULE CF 801 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

802 SCHEDULE CF 

OTHER MORTGAGE-BACKED SECURITIES: 

CF153: Purchases 

Report the purchase price of mortgage-backed securities reported on SC217 through SC222 that you 

purchased during the quarter. 

CF155: Sales 

Report the carrying value of mortgage-backed securities reported on SC217 through SC222 that you sold 

during the quarter. 

CF158: Other Balance Changes 

Report other balance changes of mortgage-backed securities reported on SC217 through SC222. 

Include cash repayments of principal and amortization of discounts and premiums. Report as negative 

amounts decreases in the security balance, and as positive amounts, increases in the security balance. 

MORTGAGE LOANS 

MORTGAGE LOANS DISBURSED: 

Report the amount disbursed for mortgage loans during the quarter. Note that you report all amounts net 

of loans-in-process, LIP. Report additional disbursements in the quarter in which you make them. 

Include: 

1. All loans closed in your name. Report all loans closed, even if a third party funds the loans or you 

immediately transfer the loans to a third party. Include loans whether or not you, an affiliate, or 

another entity performs the actual closing. Do not report subsequent transfers to you from the 

closing entity as purchases. This is because you already reported the loans as your originations. 

2. Increases in loan balances of existing loans such as the following: 

a. Disbursement of LIP. 

b. Disbursement of a previously closed but undisbursed mortgage. 

c. Negative amortizations. 

d. Additional disbursements of home equity loans. 

e. The amount disbursed for refinanced loans. 

3. Combination construction-permanent loans both when the construction loan closes and when the 

loan converts to permanent financing, even if you disburse no new funds. 

4. All loans meeting the above definitions, even if you immediately securitize or sell the loans. Also 

report these loans on CF310 through CF330. 

Do not include: 

1. Loans closed in the name of an affiliated unconsolidated entity. If you subsequently acquire 

mortgages closed in the name of an affiliated unconsolidated entity, you should report the 

acquisition as a purchase on CF280 through CF300.
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

SCHEDULE DI — CONSOLIDATED DEPOSIT 

INFORMATION 

Throughout these instructions, you and your refers to the savings association and its consolidated 

subsidiaries; we and our refers to the Office of Thrift Supervision. 

DEPOSIT DATA: 

TOTAL BROKER-ORIGINATED DEPOSITS: 

DI100: Fully Insured: With Balances Less than $100,000 

Report brokered deposits included on SC710, Deposits, and SC712, Escrows, and received from brokers, 

dealers, or agents, for the account of others where the individual account balances are less than 

$100,000. Include reciprocal brokered deposits reported in DI230 below. 

DI102: Fully Insured: With Balances of $100,000 through $250,000 

Report brokered deposits included on SC710, Deposits, and SC712, Escrows, and received from brokers, 

dealers, or agents, for the account of others where the individual account balances are $100,000 through 

$250,000. Include reciprocal brokered deposits reported in DI230 below. 

DI110: Other 

Report brokered deposits included on SC710, Deposits, and SC712, Escrows, received from brokers, 

dealers, or agents, for the account of others where the individual account exceeds the account insurance 

limit. Report the full amount of the deposit, both insured and uninsured portions. Include reciprocal 

brokered deposits reported in DI230 below. 

DI114: INTEREST EXPENSE FOR FULLY INSURED BROKERED 

DEPOSITS 

Report interest expense for fully insured brokered deposits.

 SCHEDULE DI 901 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

DI116: INTEREST EXPENSE FOR OTHER BROKERED DEPOSITS 

Report interest expense for other brokered deposits. 

DEPOSITS (EXCLUDING RETIREMENT ACCOUNTS) WITH BALANCES: 

Based on the FDIC definition of deposits in Section 3(l), each institution must complete lines DI120 

through DI185, DI210, DI510, DI520, and DI530 on an unconsolidated single FDIC certificate number 

basis. Each separately chartered depository institution that is insured by the FDIC has a unique FDIC 

certificate number. When an insured institution owns another depository institution as a subsidiary, each 

institution should report only its own deposit liabilities in this section (i.e., the parent institution should not 

combine the subsidiary institution’s deposit liabilities with its own in this section). Each of the above 

referenced lines should also include accrued interest that is reported on SC763 and exclude unposted 

debits and unposted credits.

The sum of DI120, DI130, DI170, and DI175 must equal the institution’s assessable deposits, i.e. line 

DI510, less DI520. 

DI120: $250,000 or Less 

Report deposits (excluding retirement accounts) included on SC710, Deposits, and SC712, Escrows, and 

SC763, Accrued Interest Payable-Deposits, with current balances of $250,000 or less. Include brokeroriginated deposits (excluding retirement accounts) where the current balances of the investors’ 

participating shares are $250,000 or less. 

DI130: Greater than $250,000 

Report deposits (excluding retirement accounts) included on SC710, Deposits, and SC712, Escrows, and 

SC763, Accrued Interest Payable-Deposits, with current balances greater than $250,000. Include brokeroriginated deposits (excluding retirement accounts) where the current balances of the investors’ 

participating shares exceed $250,000. 

NUMBER OF DEPOSIT ACCOUNTS (EXCLUDING RETIREMENT 

ACCOUNTS) WITH BALANCES: 

DI150: $250,000 or Less 

Report the actual number of accounts (excluding retirement accounts) that have outstanding balances 

including accrued interest of $250,000 or less. Do not report the outstanding balances. Report each 

investor participation in a broker-originated deposit (excluding retirement accounts) as a separate 

account. Report the actual number; do not round to thousands. 

The sum of DI150, DI160, DI180, and DI185 must equal the total number of deposit accounts that you 

hold and that you report on SC710, Deposits, and SC712, Escrows. 

DI160: Greater than $250,000 

Report the actual number of accounts (excluding retirement accounts) that have outstanding balances 

including accrued interest greater than $250,000. Do not report the outstanding balances. Report each 

investor participation in a broker-originated deposit as a separate account. Report the actual number; do 

not round to thousands. 

The sum of DI150, DI160, DI180, and DI185 must equal the total number of deposit accounts that you 

hold and that you report on SC710, Deposits, and SC712, Escrows.

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THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

RETIREMENT DEPOSITS WITH BALANCES: 

DI170: $250,000 or Less 

Report retirement deposits included on SC710, Deposits, and SC712, Escrows, and SC763, Accrued 

Interest Payable-Deposits, with current balances of $250,000 or less. Include broker-originated deposits 

where the current balances of the investors’ participating shares are $250,000 or less. 

DI175: Greater than $250,000 

Report retirement deposits included on SC710, Deposits, and SC712, Escrows, and SC763, Accrued 

Interest Payable-Deposits, with current balances greater than $250,000. Include broker-originated 

deposits where the current balances of the investors’ participating shares exceed $250,000. 

NUMBER OF RETIREMENT DEPOSIT ACCOUNTS WITH BALANCES: 

DI180: $250,000 or Less 

Report the actual number of retirement accounts that have outstanding balances including accrued 

interest of $250,000 or less. Do not report the outstanding balances. Report each investor participation 

in a broker-originated retirement deposit as a separate account. Report the actual number; do not round 

to thousands. 

The sum of DI150, DI160, DI180, and DI185 must equal the total number of deposit accounts that you 

hold and that you report on SC710, Deposits, and SC712, Escrows. 

DI185: Greater than $250,000 

Report the actual number of retirement accounts that have outstanding balances including accrued 

interest greater than $250,000. Do not report the outstanding balances. Report each investor 

participation in a broker-originated retirement deposit as a separate account. Report the actual number; 

do not round to thousands. 

The sum of DI150, DI160, DI180, and DI185 must equal the total number of deposit accounts that you 

hold and that you report on SC710, Deposits, and SC712, Escrows. 

DI200: IRA/KEOGH ACCOUNTS 

Report IRA and Keogh accounts included in SC710, Deposits, and SC712, Escrows. 

Include other retirement accounts such as SEP accounts. 

Do not include: 

1. 401(k) accounts. 

2. Accounts that, under applicable tax laws, are predominantly for uses other than retirement. 

DI210: UNINSURED DEPOSITS 

Institutions with less than $1 billion in total assets are not required to complete this item. Institutions with 

$1 billion or more in total assets are required to report these data on a unconsolidated single FDIC 

certificate number basis. To determine whether to complete this item, use your institution's total assets 

from line SC60 as of the June 30 TFR prior to or current with the current reporting cycle. Once an 

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904 SCHEDULE DI 

institution passes the $1 billion total assets threshold, it must continue to report its estimated uninsured 

deposits regardless of subsequent changes in its total assets. Report the uninsured portion of all 

deposits and escrows in excess of insured limits pursuant to Section 141 of the FDIC Improvement Act, 

FDICIA. 

You may not be able to precisely determine the amount of uninsured deposits due to the lack of 

information about interests by other parties in certain deposit accounts. However, you should diligently 

seek the best estimate of your uninsured deposits. You should derive the estimate from your existing 

information systems or personal knowledge of your depositor base. 

The estimated amount of uninsured deposits reported in this item should be based on the institution’s 

deposits included in Schedule DI, line DI510, “Total deposit liabilities before exclusions (gross) as defined 

in Section 3(1) of the Federal Deposit Insurance Act and FDIC regulations,” less line DI520, “Total 

allowable exclusions (including foreign deposits)”. In addition to the uninsured portion of deposits in 

“domestic offices” reported in Schedule SC, line SC71, the estimate of uninsured deposits should take 

into account all other items included in Schedule DI, line DI510 less line DI520, including, but not limited 

to: 

 Interest accrued and unpaid on deposits in domestic offices; 

 Deposits in insured branches in Puerto Rico and U.S. territories and possessions (including 

interest accrued and unpaid on these deposits); 

 Deposits on consolidated subsidiaries in domestic offices and in insured branches in Puerto Rico 

and U.S. territories and possessions (including interest accrued and unpaid on these deposits); 

and 

 Deposit liabilities that have been reduced by assets netted against these liabilities in accordance 

with generally accepted accounting principles. 

DI220: PREFERRED DEPOSITS 

Report all deposits and escrows from states and political subdivisions in the U.S. included in SC710, 

Deposits, secured or collateralized as required under state law, pursuant to Section 141 of FDICIA. 

Do not include: 

1. Deposits of the U.S. Government secured or collateralized as required under federal law. 

2. Deposits of trust funds secured or collateralized as required under state law unless the 

beneficiary is a state or political subdivision in the U.S. 

State law may require you to pledge securities or other readily marketable assets to cover the uninsured 

portion of the deposits of a state or political subdivision. If you pledge securities with a value that 

exceeds the amount of the uninsured portion of the state or political subdivision’s deposits, report only the 

uninsured amount and none of the insured portion of the deposits as a preferred deposit. 

For example, you hold a political subdivision’s $350,000 in deposits. Under state law, you must pledge 

securities to cover only the uninsured portion of such deposits, or $250,000. Although you have pledged 

securities with a value of $300,000 to secure these deposits, consider only $250,000 of the political 

subdivision’s $350,000 in deposits – the uninsured amount – as preferred deposits. 

In other states, you must participate in a state public deposits program to receive deposits from the state 

or from political subdivisions within the state in amounts exceeding federal deposit insurance. Under 

state law, you calculate annually the value of the securities you must pledge to the state, but this 

represents only a percentage of the uninsured portion of your public deposits. State law may require you 

to participate in the state program that may ultimately require you to share in any loss to public depositors 

incurred in the failure of another participating institution. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

As long as the value of the securities pledged to the state exceeds the calculated requirement, you 

protect all of your uninsured public deposits from loss under the operation of the state program if you fail. 

Therefore, consider all of the uninsured public deposits preferred deposits. 

For example, you are participating in a state public deposits program with $1,000,000 in public deposits 

under the program and $700,000 of this amount is uninsured; you pledge securities with an actual value 

of $800,000. You should report the $700,000 in uninsured public deposits as preferred deposits. 

DI230: RECIPROCAL BROKERED DEPOSITS 

Report the total amount of reciprocal deposits included in “Total Broker-Originated Deposits” from Lines 

DI100 and DI110 above. Report the data on an unconsolidated single FDIC certificate number basis 

pursuant to the first paragraph under GENERAL INSTRUCTIONS in the DEPOSIT DATA FOR DEPOSIT 

INSURANCE PREMIUM ASSESSMENTS section. 

 As defined in Section 327.8(s) of the FDIC’s regulations, “reciprocal deposits” are “[d]eposits that 

 an insured depository institution receives through a deposit placement network on a reciprocal 

 basis, such that; (1) for any deposit received, the institution (as agent for depositors) places the same 

 amount with other insured depository institutions through the network; and (2) each member of the 

 network sets the interest rate to be paid on the entire amount of funds it places with other network 

 members.” 

COMPONENTS OF DEPOSITS AND ESCROWS: 

The sum of DI310, DI320, DI330, and DI340 must equal SC710 plus SC712. 

DI310: Transaction Accounts (Including Demand Deposits) 

Report the balance of all transaction accounts included in SC710, Deposits, and SC712, Escrows. 

Transaction accounts are those deposit and escrow accounts from which the depositor is permitted to 

make: 

 Transfers or withdrawals by negotiable or transferable instruments. 

 Payment orders of withdrawal, telephone transfers, or other similar devices for purpose of making 

payments or transfers to third persons or others. 

 Third party payments at an automated teller machine (ATM), a remote service unit (RSU), or 

other electronic device, including by debit card. 

Transaction accounts include demand deposits, NOW (negotiable order of withdrawal) accounts, ATS 

(automatic transfer service) accounts, and telephone and preauthorized transfer accounts. These 

accounts may be interest-bearing or non-interest-bearing. 

Exclude money market deposit accounts (MMDAs) and other savings deposits as defined below in DI320 

and DI330, even though such deposits permit some third-party transfers. However, report as a 

transaction account an account that otherwise meets the definition of a savings deposit but that 

authorizes or permits the depositor to exceed the transfer limitations specified for that account. 

DI310 plus DI320 plus DI330 plus DI340 must equal SC710 plus SC712. 

DI320: Money Market Deposit Accounts 

Report the balance of money market deposit accounts (MMDAs) as defined in 12 CFR §561.28 or 

applicable state law. 

MMDAs generally have the following requirements:

 SCHEDULE DI 905 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

 The savings association reserves the right to require at least seven days’ notice prior to 

withdrawal or transfer of funds in the account. 

 The depositor may make no more than six transfers per calendar month or statement cycle, 

provided that no more than three of the six transfers may be by check, draft, debit card, or similar 

order. 

Refer to 12 CFR §561.28 for more detailed requirements of MMDAs. 

DI330: Passbook Accounts (Including Nondemand Escrows) 

Report the balance of nontransactional savings accounts that are not MMDAs or time deposits. 

DI340: Time Deposits 

Report the balance of time deposits. Time deposits are nontransactional savings deposits payable at a 

specified future date with earnings at a specified rate of interest. The interest specified may adjust 

periodically according to a predetermined formula or index or may be fixed for the term of the deposit. 

The specified maturity date must be not less than seven days after the date of the deposit. Time deposits 

may be an open savings deposit or may be evidenced by a negotiable or nonnegotiable instrument or 

receipt commonly known as a certificate of deposit (CD). Open time deposits include club accounts, such 

as Christmas club and vacation club accounts, are made under written contracts that provide that no 

withdrawal may be made until the customer makes a certain number of periodic deposits or a certain 

period of time has elapsed. 

Time deposits issued to deposit brokers in the form of large ($100,000 or more) certificates of deposit that 

have been participated out by the broker in shares of less than $100,000 should also be reported as 

deposits of $100,000 or less. 

Data reported in lines DI350, DI352, and DI360 are used by the Federal Reserve to 

ensure accurate construction of the monetary aggregates for monetary policy 

purposes. 

DI350: Time Deposits of $100,000 through $250,000 (Excluding 

Brokered Time Deposits Participated Out by the Broker in 

Shares of Less Than $100,000 and Brokered Certificates of 

Deposit Issued In $1,000 Amounts Under a Master Certificate 

of Deposit) 

Report the balance of time deposits of $100,000 through $250,000. Do not include brokered time 

deposits participated out by the broker in shares of less than $100,000 and brokered certificates of 

deposit issued in $1,000 amounts under a master certificate of deposit. Include IRA/Keogh accounts 

reported on DI360 that are defined as time deposits of $100,000 through $250,000. 

DI352: TIME DEPOSITS GREATER THAN $250,000 

Report the balance of time deposits greater than $250,000. Include IRA/Keogh accounts reported in 

DI360 that are greater than $250,000. 

DI360: IRA/Keogh Accounts of $100,000 or Greater Included in Time 

Deposits 

Report the balance of IRA / Keogh accounts of $100,000 or greater included in time deposits.

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THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

AVERAGE DAILY DEPOSITS TOTALS: 

DI544: FULLY INSURED BROKERED TIME DEPOSITS: 

Report the average daily deposits totals for fully insured brokered time deposits. 

DI545: OTHER BROKERED TIME DEPOSITS: 

Report the average daily deposits totals for other brokered time deposits. 

DI610: NON-INTEREST-BEARING DEMAND DEPOSITS 

Report all demand deposits reported on SC710, Deposits, and SC712, Escrows. FDIC Regulations 12 

CFR § 329.1, 329.101, and 329.102 define the demand deposits to report on this line. 

A demand deposit is a non-interest-bearing deposit with the following characteristics: 

1. Is payable immediately on demand. 

2. Is issued with an original maturity or required notice period of less than seven days. 

3. Where the depository institution does not reserve the right to require at least seven days’ written 

notice of an intended withdrawal. 

Demand deposits include: 

1. Matured time deposits that do not have automatic renewal provisions, unless the deposit 

agreement provides for the transfer of funds at maturity to another type of account. 

2. Escrow accounts reported on SC712 that meet the definition of demand deposits. 

3. Outstanding checks drawn against zero-balance accounts reported on SC710, including those at 

Federal Home Loan Banks. 

Demand deposits do not include: 

1. Money market deposit accounts, MMDAs. 

2. NOW accounts not meeting the three criteria listed above for demand deposits. 

3. Deposits held either in branches outside of the territories and possessions of the U.S. or by an 

Edge or Agreement Subsidiary or by an International Banking Facility (IBF). 

4. Amounts not included in SC710 or SC712, such as outstanding checks drawn against Federal 

Home Loan Banks. 

DEPOSIT DATA FOR DEPOSIT INSURANCE PREMIUM 

ASSESSMENTS 

GENERAL INSTRUCTIONS 

Each institution must complete lines DI510, DI520, DI530, DI630, DI635, DI641, DI645, DI651, DI655, 

and DI660 on an unconsolidated single FDIC certificate number basis. Each separately chartered 

depository institution that is insured by the FDIC has a unique FDIC certificate number. When an insured 

institution owns another depository institution as a subsidiary, each institution should report only its own 

deposit liabilities in this section (i.e., the parent institution should not combine the subsidiary institution’s 

deposit liabilities with its own in this section). 

In addition, an institution that meets one of the criteria discussed below must complete lines DI540, 

DI550, and DI560 on an unconsolidated single FDIC certificate number basis each quarter. 

 SCHEDULE DI 907 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

Effective March 31, 2008, an institution that (a) reported $1 billion or more in total assets as of the 

March 31, 2007, report date (regardless of its asset size in subsequent quarters) or (b) became insured 

by the FDIC on or after April 1, 2007, but before January 1, 2008, must report both quarter-end balances 

and daily averages for the quarter in this section of Schedule DI. In addition, an institution that meets one 

of the following criteria must report both quarter-end deposit totals and daily averages in Schedule DI: 

1. If an institution reports $1 billion or more in total assets in two consecutive Thrift Financial 

Reports subsequent to its March 31, 2007, report, the institution must begin reporting both 

quarter-end balances and daily averages for the quarter beginning on the later of the March 31, 

2008, report date or the report date six months after the second consecutive quarter in which it 

reports total assets of $1 billion or more. For example, if an institution reports $1 billion or more in 

total assets in its reports for June 30 and September 30, 2007, it would have to begin reporting 

daily averages in its report for March 31, 2008. If the institution reports $1 billion or more in total 

assets in its reports for December 31, 2008, and March 31, 2009, it would have to begin reporting 

daily averages in its report for September 30, 2009. 

2. If an institution becomes newly insured by the FDIC on or after January 1, 2008, the institution 

must report daily averages in Schedule DI beginning in the first quarterly Thrift Financial Report 

that it files. The daily averages reported in the first report the institution files after becoming 

FDIC-insured would include the dollar amounts for the days since the institution began operations 

and zero for the days prior to the date the institution began operations, effectively pro-rating the 

first quarter’s assessment base. 

Any institution that reports less than $1 billion in total assets in its March 31, 2007, report may continue to 

report only quarter-end total deposits and allowable exclusions until it meets the two-consecutive-quarter 

asset size test for reporting daily averages. Alternatively, the institution may opt permanently at any time 

to begin reporting daily averages for purposes of determining its assessment base. After an institution 

begins to report daily averages for its total deposits and allowable exclusions, either voluntarily or 

because it is required to do so, the institution is not permitted to switch back to reporting only quarter-end 

balances. 

The amounts to be reported as daily averages are the sum of the gross amounts of total deposits 

(domestic and foreign) and allowable exclusions for each calendar day during the quarter divided by the 

number of calendar days in the quarter (except as noted above for an institution that becomes insured on 

or after January 1, 2008, in the first report it files after becoming insured). For days that an office of the 

reporting institution (or any of its subsidiaries or branches) is closed (e.g., Saturdays, Sundays, or 

holidays), the amounts outstanding from the previous business day would be used. An office is 

considered closed if there are no transactions posted to the general ledger as of that date. 

DI510: TOTAL DEPOSIT LIABILITIES BEFORE EXCLUSIONS 

(GROSS) AS DEFINED IN SECTION 3(L) OF THE FEDERAL 

DEPOSIT INSURANCE ACT AND FDIC REGULATIONS 

Report on an unconsolidated single FDIC certificate number basis the gross total deposit liabilities as of 

the calendar quarter-end report date that meet the statutory definition of deposits in Section 3(l) of the 

Federal Deposit Insurance Act before deducting exclusions from total deposits that are allowed in the 

determination of the assessment base upon which deposit insurance assessments (and FICO premiums) 

are calculated. Since the FDIC’s amendments to its assessment regulations in 2006 did not substantially 

change the definition of deposits for assessment purposes, an institution’s gross total deposit liabilities 

are the combination of all deposits reported in line SC710 (excluding unposted credits net of unposted 

debits), all escrows reported in line SC712, and accrued interest payable on deposits reported in line 

SC763. 

An institution’s documentation to support the amounts reported for purposes of determining its 

assessment base has always been, and continues to be, subject to verification. This documentation 

908 SCHEDULE DI 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

 SCHEDULE DI 909 

includes the actual system control summaries in the institution’s systems that provide the detail sufficient 

to track, control, and handle inquiries from depositors about their specific individual accounts. These 

systems can be automated or manual. If the system control summaries have been reduced by accounts 

that are overdrawn, these overdrawn accounts are extensions of credit that must be treated and reported 

as "loans" rather than being treated as negative deposit balances. 

Unposted debits and unposted credits should not be included in an institution’s system control 

summaries. However, if they are included in the gross total deposit liabilities reported in this line, they 

may be excluded in line DI520 below. 

DI520: TOTAL ALLOWABLE EXCLUSIONS (INCLUDING FOREIGN 

DEPOSITS) 

Report, on an unconsolidated single FDIC certificate number basis, the total amount of allowable 

exclusions from deposits as of the calendar quarter-end report date if the institution maintains such 

records as will readily permit verification of the correctness of its reporting of exclusions. Any accrued and 

unpaid interest on the allowable exclusions listed below should also be reported in this item as an 

allowable exclusion. 

The allowable exclusions include: 

1. Foreign Deposits: As defined in Section 3(l)(5) of the Federal Deposit Insurance Act, foreign 

deposits include 

(A) any obligation of a depository institution which is carried on the books and records of an 

office of such bank or savings association located outside of any State, unless -- 

(i) such obligation would be a deposit if it were carried on the books and records of the 

depository institution, and would be payable at, an office located in any State; and 

(ii) the contract evidencing the obligation provides by express terms, and not by 

implication, for payment at an office of the depository institution located in any State; 

and 

(B) any international banking facility deposit, including an international banking facility time 

deposit, as such term is from time to time defined by the Board of Governors of the 

Federal Reserve System in regulation D or any successor regulation issued by the Board 

of Governors of the Federal Reserve System. 

 NOTE: Foreign deposits are deposit obligations under the FDIC certificate number of the 

reporting institution only. Deposit obligations of a subsidiary depository institution chartered 

in a foreign country should not be included in amounts reported in Schedule DI under the 

domestic institution’s FDIC certificate number. 

2. Reciprocal balances: Any demand deposit due from or cash item in the process of collection due 

from any depository institution (not including a foreign bank or foreign office of another U.S. 

depository institution) up to the total amount of deposit balances due to and cash items in the 

process of collection due such depository institution. 

3. Drafts drawn on other depository institutions: Any outstanding drafts (including advices and 

authorization to charge the depository institution’s balance in another bank) drawn in the regular 

course of business by the reporting depository institution. These types of drafts only apply to 

unposted debits and unposted credits which have not been extracted from SC710 (due to the 

institution’s system control Summaries). 

4. Pass-through reserve balances: Reserve balances passed through to the Federal Reserve by 

the reporting institution that are also reflected as deposit liabilities of the reporting institution. This 

exclusion is not applicable to an institution that does not act as a correspondent bank in any 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

pass-through reserve balance relationship. A state nonmember bank generally cannot act as a 

pass-through correspondent unless it maintains an account for its own reserve balances directly 

with the Federal Reserve. 

5. Depository institution investment contracts: Liabilities arising from depository institution 

investment contracts that are not treated as insured deposits under section 11(a)(5) of the 

Federal Deposit Insurance Act (12 U.S.C. 1821(a)(5)). A Depository Institution Investment 

Contract is a separately negotiated depository agreement between an employee benefit plan and 

an insured depository institution that guarantees a specified rate for all deposits made over a 

prescribed period and expressly permits benefit-responsive withdrawals or transfers. 

6. Accumulated deposits: Deposits accumulated for the payment of personal loans that are 

assigned or pledged to assure payment of the loans at maturity. Deposits that simply serve as 

collateral for loans are not an allowable exclusion. 

DI530: TOTAL FOREIGN DEPOSITS (INCLUDED IN TOTAL 

ALLOWABLE EXCLUSIONS) 

Report on an unconsolidated single FDIC certificate number basis the total amount of foreign deposits 

(including International Banking Facility deposits) as of the calendar quarter-end report date included in 

line DI520. 

DI630: UNSECURED FEDERAL FUNDS PURCHASED 

Report on an unconsolidated single FDIC certificate number basis the outstanding amount of unsecured 

federal funds purchased, i.e., immediately available funds borrowed (in domestic office) under 

agreements or contracts that have an original maturity of one business day or roll over under a 

continuing contract, excluding such funds borrowed in the form of securities sold under agreements to 

repurchase (which should be reported in Schedule DI641 and Federal Home Loan Bank advances. 

 Immediately available funds are funds that the purchasing institution can either use or 

dispose of on the same business day that the transaction giving rise to the receipt or disposal 

of the funds is executed. 

 A continuing contract, regardless of the terminology used, is an agreement that remains in 

effect for more than one business day, but has no specified maturity and does not require 

advance notice of the lender or the borrower to terminate, either party to terminate. 

Note: Report federal funds purchased on a gross basis; i.e., do not net them against federal funds sold, 

 except to the extent permitted by GAAP. 

DI635: SECURED FEDERAL FUNDS PURCHASED 

Report on an unconsolidated single FDIC certificate number basis the outstanding amount of secured 

federal funds purchased pursuant to the instructions under Schedule DI630 for unsecured federal funds 

purchased.

DI641: SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE 

Report on an unconsolidated single FDIC certificate number basis the outstanding amount of: 

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 SCHEDULE DI 911 

(1) Securities repurchase agreements, regardless of maturity, if the agreement requires the 

 institution to repurchase the identical security sold or a security that meets the definition of 

 substantially the same in the case of a dollar roll. 

(2) Sales of participations in pools of securities, regardless of maturity 

Note: Report securities sold under agreements to repurchase on a gross basis, i.e., do not net them 

against securities purchased under agreements to resell, except to the extent permitted by 

GAAP. Include the fair value of securities sold under agreements to repurchase that are 

accounted for at fair value under a fair value option. 

UNSECURED “OTHER BORROWINGS” - WITH A REMAINING 

MATURITY OF: 

DI645 ONE YEAR OR LESS 

DI651 OVER ONE YEAR 

Report the amount of the institution’s unsecured “Other borrowings” in the appropriate lines DI645 

or DI651 according to the amount of time remaining until their final contractual maturities. Include 

both fixed rate and floating rate “Other borrowings” that are unsecured. In general, “Other 

borrowings” are unsecured if the institution (or a consolidated subsidiary) has not pledged 

securities, loans, or other assets as collateral for the borrowing. Exclude “Other borrowings” that 

are guaranteed by the FDIC under the Debt Guarantee Program component of the FDIC’s 

Temporary Liquidity Guarantee Program. 

SUBORDINATED DEBENTURES-WITH A REMAINING MATURITY OF: 

DI655 ONE YEAR OR LESS 

DI660 OVER ONE YEAR 

Report the amount of the institution’s subordinated debentures in the appropriate lines according 

to the time remaining until their final contractual maturities. Include both fixed rate and floating 

rate subordinated debentures. 

DI540: TOTAL DAILY AVERAGE OF DEPOSIT LIABILITIES BEFORE 

EXCLUSIONS (GROSS) AS DEFINED IN SECTION 3(L) OF THE 

FEDERAL DEPOSIT INSURANCE ACT AND FDIC 

REGULATIONS 

Report on an unconsolidated single FDIC certificate number basis the total daily average for the quarter 

of gross total deposit liabilities that meet the statutory definition of deposits in Section 3(l) of the Federal 

Deposit Insurance Act before deducting exclusions from total deposits that are allowed in the 

determination of the assessment base upon which deposit insurance assessments (and FICO premiums) 

are calculated. For further information on deposit amounts to be calculated, see the instructions for line 

DI510. For information on calculating the total daily average for the quarter, see the General Instructions 

for reporting Deposit Data for Deposit Insurance Assessment Purposes above. 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

DI550: TOTAL DAILY AVERAGE OF ALLOWABLE EXCLUSIONS 

(INCLUDING FOREIGN DEPOSITS) 

Report on an unconsolidated single FDIC certificate number basis the total daily average for the quarter 

of the total amount of allowable exclusions from deposits (as defined in line DI520) if the institution 

maintains such records as will readily permit verification of the correctness of its reporting of exclusions. 

DI560: TOTAL DAILY AVERAGE OF FOREIGN DEPOSITS 

Report on an unconsolidated single FDIC certificate number basis the total daily average for the quarter 

of the total amount of foreign deposits (including International Banking Facility deposits) included in line 

DI550. 

DEPOSIT DATA FOR THRIFTS PARTICIPATING IN THE 

TRANSACTION ACCOUNT GUARANTEE PROGRAM COMPONENT OF 

THE FDIC'S TEMPORARY LIQUIDITY GUARANTEE PROGRAM 

The following items are to be reported by insured institutions that are participating in (i.e., have not opted 

out of) the Transaction Account Guarantee Program component of the FDIC's Temporary Liquidity 

Guarantee Program (TLGP). Thrifts would report noninterest-bearing transaction accounts (as defined in 

the FDIC’s Temporary Liquidity Guarantee Program regulations) of more than $250,000. (Do not include 

custodial or escrow accounts on which "pass-through" coverage applies). 

DI570: AMOUNT OF NONINTEREST-BEARING TRANSACTION 

ACCOUNTS OF MORE THAN $250,000 (INCLUDING 

BALANCES SWEPT FROM NONINTEREST-BEARING 

TRANSACTION ACCOUNTS TO NONINTEREST-BEARING 

SAVINGS ACCOUNTS 

DI575: NUMBER OF NONINTEREST-BEARING TRANSACTION 

ACCOUNTS OF MORE THAN $250,000 

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THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

SCHEDULE SI —SUPPLEMENTAL INFORMATION 

Throughout these instructions, you and your refers to the savings association and its consolidated 

subsidiaries; we and our refers to the Office of Thrift Supervision. 

MISCELLANEOUS: 

SI370: NUMBER OF FULL-TIME EQUIVALENT EMPLOYEES 

Report the actual number of full-time equivalent employees employed by you and your consolidated 

subsidiaries. Report the actual whole number; do not round to thousands. 

SI375: FINANCIAL ASSETS HELD FOR TRADING PURPOSES 

Financial assets held for trading purposes are defined as securities and other financial assets that are 

bought and held for the purpose of short term resale or with the intent of benefiting from actual or 

expected price movements, and carried at fair value with the change in fair value reflected in current 

earnings. Trading generally reflects active and frequent buying and selling to generate profits in the 

short-term. 

Report financial assets held for trading purposes on this line and also on SI376. Financial assets held for 

trading purposes reported on this line should include any trading securities where it is management’s 

intent to actively buy and sell such securities to generate profits in the short term. 

SI376: FINANCIAL ASSETS CARRIED AT FAIR VALUE THROUGH 

EARNINGS 

Report the balance of financial assets carried at fair value where the changes in fair value are reflected in 

current earnings for trading securities, derivatives, and all other financial assets where the fair value 

option is elected. Such assets are reported on various lines on Schedule SC and, therefore, the total of all 

assets reported at fair value is included on SC60. For example, derivative assets are included in SC689. 

Include financial assets held for trading purposes on this line. Such assets are also reported on SI375. 

 SCHEDULE SI 1001 
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1002 SCHEDULE SI 

Available-for-sale securities are financial assets carried at fair value. However for available-for-sale 

securities, the changes in fair value are not reflected in current earnings, but rather in other 

comprehensive income net of any deferred tax impact. Accordingly, do not include the balance of 

available-for-sale securities on this line. Rather, report such amount on SI385. 

Under a “fair value option,” servicing assets may be carried at fair value with the changes in fair value 

reflected in current earnings. However, servicing assets are not financial assets. Accordingly, do not 

include the balance of any servicing assets on this line. 

SI377: FINANCIAL LIABILITIES CARRIED AT FAIR VALUE THROUGH 

EARNINGS 

Report the balance of financial liabilities carried at fair value where the changes in fair value are reflected 

in current earnings for derivatives and all other financial liabilities where the fair value option is elected. 

Such liabilities are reported on various lines on Schedule SC, and therefore the total of all net liabilities 

reported at fair value is included on SC70. For example, derivative liabilities are included in SC796. 

SI385: AVAILABLE-FOR-SALE SECURITIES 

Report all investments in debt securities including mortgage securities, and all investments in equity 

securities that have readily determinable fair values that are classified as available-for-sale and are 

carried at fair value, with the change in fair value reflected in other comprehensive income. Do not include 

equity securities whose sale is restricted by governmental or contractual requirement – for example, 

FHLB stock. Include amounts reported on SC665, Interest-Only Strip Receivables and Certain Other 

Instruments, that are not classified as trading. 

Exclude unrealized gains and losses from current earnings and report, net of taxes, as a separate 

component of equity on SC860, Unrealized Gains (Losses) on Available-for-Sale Securities, until realized. 

In addition, report certain nonsecurity financial instruments, CNFIs, classified as available-for-sale. 

Transfer securities from the available-for-sale category to held-to-maturity at fair value as of the date of 

transfer. 

SI387: ASSETS HELD FOR SALE 

Report all assets held for sale except securities and repossessed assets. Report assets held for sale at 

the lower of cost or market, LOCOM. Recognize unrealized losses in current earnings on SO465, Net 

Income (Loss) from LOCOM Adjustments Made to Assets Held for Sale. 

Transfer assets from the ”for sale” category to an investment account at the lower-of-cost-or-market as of 

the date of transfer. 

Include: 

1. Loans and participations originated or purchased by you with the intent to sell. 

2. Assets originally held for investment but now held for sale. 

3. Assets held for sale, including real estate and branch offices, whether or not there is an outstanding 

commitment to sell. 

Do not include: 

1. Securities, report on SI385. 

2. Repossessed assets.
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

SI390: LOANS SERVICED FOR OTHERS 

Report the principal balance of mortgage and nonmortgage whole loans and participating interests in 

loans serviced by you, but owned by others. 

Include: 

1. Loans and securities that you sold to others but for which you perform the servicing. 

2. Loans serviced by you for others, where the loans have been securitized, whether or not you own 

the securities and whether or not you have reported any servicing assets. 

3. Loans serviced by you for others, where you have transferred the loans to others, but have not 

reported the transaction as a sale. 

4. Loans and securities serviced by you under a contract to a third party who owns the servicing 

rights. 

Do not include: 

1. Loans and securities where you own the servicing rights and where the servicing has been 

subcontracted to a third party. 

2. Loans and securities serviced for you by a consolidated subsidiary or a subsidiary depository 

institution. 

SI394: PLEDGED LOANS 

Report the recorded investment in loans included in SC26 and SC31 that have been pledged as collateral 

for borrowings. Include the recorded investment for loans pledged to the Federal Reserve or to the 

Federal Home Loan Bank. 

When a thrift has pledged an entire portfolio of loans to secure its Federal Home Loan Bank advances, it 

should report the amount of the entire portfolio in this line, excluding any loans within the portfolio that the 

thrift has the right, without constraint, to repledge to another party. (However, if any such loans have been 

repledged to another party, they should be reported in this item.) 

SI395: PLEDGED TRADING ASSETS 

Report trading assets included in SI375 and SI376 that have been pledged as collateral for borrowings. 

Trading assets are financial assets held for trading purposes, as defined in the instructions to SI375. 

RESIDUAL INTERESTS 

Residual interests are defined in 12 CFR Part 567.1 as any balance sheet asset that represents an 

interest, including a beneficial interest, created by a transfer of financial assets that qualifies as a sale 

under GAAP and that exposes the institution to a credit risk that exceeds a pro rata share of the 

institution’s claim on the transferred assets. The transfer of assets may be through securitization or 

otherwise; the credit risk may be directly or indirectly associated with the transferred assets; and the 

exposure to credit risk may be through either subordination provisions or other credit enhancement 

techniques. 

This definition of residual interests is for regulatory reporting purposes, and, therefore, is not the same as 

purchased or retained beneficial interests in securitized financial assets, as that term is used in 

authoritative accounting literature. 

 SCHEDULE SI 1003 
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1004 SCHEDULE SI 

Examples of residual interests include, but are not limited to, credit-enhancing interest-only strips defined 

below, spread accounts, cash collateral accounts, and retained subordinated interests. 

You report all residual interests somewhere on Schedule SC, typically on SC182, SC185, SC217 through 

222,SC665, or SC689. The total of lines SI402 and SI404 should equal all residual interests, as defined 

above, that you have included on Schedule SC. 

In addition, you should report the appropriate amounts in Schedule CC, on CC455 and CC465 or CC468, 

related to direct credit substitutes and recourse obligations. Also, as residual interests are subject to 

specialized regulatory capital treatment pursuant to 12 CFR Parts 567.6 and 567.12, you should report 

the appropriate amounts in Schedule CCR, on CCR133, CCR270, CCR375, and CCR605. 

SI402: RESIDUAL INTERESTS IN THE FORM OF INTEREST-ONLY 

STRIPS 

Report residual interests as defined above in the form of credit-enhancing interest-only strips. 

Credit-enhancing interest-only strips are defined in 12 CFR Part 567.1 as any on-balance-sheet asset 

that, in form or in substance, represents the contractual right to receive some or all of the interest due on 

transferred assets, and that through subordination provisions or other credit enhancement techniques 

exposes the institution to credit risks that exceed its pro rata claim on the transferred assets. 

Report both retained and purchased credit-enhancing interest-only strips. However, do not include 

interest-only strips issued by government-sponsored entities or other interest-only strips that do not 

function in a credit enhancing or otherwise subordinate capacity. 

SI404: OTHER RESIDUAL INTERESTS 

Report any other residual interests and on-balance-sheet recourse assets that you have not reported on 

SI402. Include purchased subordinated interests, purchased subordinated securities, and any other type 

of residual or recourse position that you have purchased from others. Do not include interest-only strips 

issued by the government or government sponsored enterprises, unless they meet the definition of 

residual interest in 12 CFR 567.1. 

QUALIFIED THRIFT LENDER TEST 

SI581, SI582, AND SI583: ACTUAL THRIFT INVESTMENT 

PERCENTAGE AT MONTH-END 

To be a Qualified Thrift Lender, QTL, you must either meet the Home Owners’ Loan Act, HOLA, QTL test 

or the Internal Revenue Service tax code Domestic Building and Loan Association, DBLA, test. 

If you use the HOLA QTL test, report the ATIP from the OTS QTL worksheets, OTS Form 1427, for the 

three months. If you use the IRS DBLA test, leave lines SI581, 582, and 583 blank, and complete SI585 

and SI586. 

IRS DOMESTIC BUILDING AND LOAN TEST: 

Complete these lines only if you do not use the Home Owners’ Loan Act (HOLA) Qualified Thrift Lender 

(QTL) test, but instead use the IRS Domestic Building and Loan Association (DBLA) test (IRS regulation 

26 CFR § 301.7701-13A) to determine if you are a Qualified Thrift Lender. Refer to Appendix A of the 

OTS Examination Handbook, Section 270.
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

SI585: PERCENT OF ASSETS TEST 

SI586: DO YOU MEET THE DBLA BUSINESS OPERATIONS TEST? 

SI588: AGGREGATE INVESTMENT IN SERVICE 

CORPORATIONS 

Report your aggregate investment in the capital stock, loans and obligations, and other securities of all 

service corporations, determined in a manner consistent with 12 CFR Part 559. 

Loans and obligations include all loans and other debt instruments, and all guarantees or take-out 

commitments of such loans or debt instruments. 

For purposes of this reporting only, the measurement of the investment in capital stock should be based 

on the cost method, and not the equity method. Under the cost method, your investment in capital stock 

will include amounts paid to acquire the stock, but will not include accumulated undistributed earnings 

and losses of the service corporations. As a result, your aggregate investment reported on this line will 

likely differ from the related amount obtained from your accounting records and from the amount reported 

on SC540. 

EXTENSIONS OF CREDIT BY THE REPORTING ASSOCIATION (AND 

ITS CONTROLLED SUBSIDIARIES) TO ITS EXECUTIVE OFFICERS, 

PRINCIPAL SHAREHOLDERS, DIRECTORS, AND THEIR RELATED 

INTERESTS AS OF THE REPORT DATE 

Federal Reserve Regulation O defines the terms used in this item. 

An extension of credit is a making or renewal of any loan, a granting of a line of credit, or an extension 

of credit in any manner whatsoever. Extensions of credit include, among others, loans, prearranged 

overdrafts, cash items, standby letters of credit, and securities purchased under agreements to resell. 

For lines of credit, the amount reported as an extension of credit is normally the total amount of the line of 

credit extended to the insider, not just the current balance of the funds that have been advanced to the 

insider under the line of credit. See 12 CFR § 215.3, Regulation O. 

An executive officer of the reporting savings association is person who participates or has authority to 

participate, other than as a director, in major policy-making functions of the reporting savings association, 

an executive officer of the savings association’s holding company, and, unless excluded by the savings 

association’s board of directors or bylaws, any other subsidiary of that holding company. See 12 CFR § 

215.2(e), Regulation O. 

A director of the reporting savings association is person who is a director of the savings association, 

whether or not receiving compensation, a director of the holding company of which the savings 

association is a subsidiary, and, unless excluded by the savings association’s board of directors or 

bylaws, a director of any other subsidiary of that holding company. See 12 CFR § 215.2(d), Regulation 

O. 

A principal shareholder of the reporting savings association is an individual or a company other than an 

insured depository institution that directly or indirectly, or acting through or in concert with one or more 

persons, owns controls, or has the power to vote more than 10% of any class of voting stock of the 

reporting savings association. Regulation O considers shares owned or controlled by a member of an 

individual’s immediate family to be held by the individual. A principal shareholder includes a principal 

shareholder of a holding company of which the reporting savings association is a subsidiary and a 

 SCHEDULE SI 1005 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

 

principal shareholder of any other subsidiary of that holding company. See 12 CFR § 215.11(a)(1), 

Regulation O. 

A related interest is either: 

1. A company, other than an insured depository institution or a foreign bank that is controlled by an 

executive officer, director, or principal shareholder. 

2. A political or campaign committee that is controlled by or the funds or services of which will 

benefit an executive officer, director, or principal shareholder. See 12 CFR § 215.11(a)(2), 

Regulation O. 

SI590: AGGREGATE AMOUNT OF ALL EXTENSIONS OF CREDIT 

Report the aggregate amount outstanding as of the report date of all extensions of credit by you and your 

controlled subsidiaries to all of your executive officers, principal shareholders, directors, and their related 

interests. 

Include each extension of credit in the aggregate amount only one time, regardless of the number of 

borrowers. 

SI595: NUMBER OF EXECUTIVE OFFICERS, PRINCIPAL 

SHAREHOLDERS, AND DIRECTORS TO WHOM THE AMOUNT 

OF ALL EXTENSIONS OF CREDIT (INCLUDING EXTENSIONS 

OF CREDIT TO RELATED INTERESTS) EQUALS OR EXCEEDS 

THE LESSER OF $500,000 OR FIVE PERCENT OF 

UNIMPAIRED CAPITAL AND UNIMPAIRED SURPLUS (CCR30 

+ CCR35 + CCR530 + CCR105) 

Report the number of your executive officers, principal shareholders, and directors to whom the amount 

of all extensions of credit outstanding by you and your controlled subsidiaries as of the report date equals 

or exceeds the lesser of $500,000 or five percent of unimpaired capital and unimpaired surplus. That is, 

five percent x (CCR30 + CCR35 + CCR530 + CCR105). Report the actual number; do not round to 

thousands. 

For purposes of this item, the amount of all extensions of credit by you and your controlled subsidiaries to 

an executive officer, principal shareholder, or director includes all extensions of credit by you to the 

related interests of the executive officer, principal shareholder, or director. A single extension of credit to 

more than one borrower must be included in full for all extensions of credit for each executive officer, 

principal shareholder, and director included in the credit. That is, one loan may be included more than 

once in the calculation of the $500 thousand or 5% of unimpaired capital and unimpaired surplus limit, 

because it will be included for each executive officer, principal shareholder, and director listed on the 

loan. 

SUMMARY OF CHANGES IN SAVINGS ASSOCIATION 

EQUITY CAPITAL 

SI600: SAVINGS ASSOCIATION EQUITY CAPITAL, BEGINNING 

BALANCE 

The EFS software automatically generates this amount from your prior quarter’s SC80. 

1006 SCHEDULE SI 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

 SCHEDULE SI 1007 

Special instructions for mergers and reorganizations: 

 Purchase Mergers – Report SI680 for the previous quarter for the surviving savings association only. 

 Change of Control involving pushdown accounting including receiverships – Report SI680 for the 

previous quarter. Adjustments should be reported on SI660. 

SI610: NET INCOME (LOSS) ATTRIBUTABLE TO SAVINGS 

ASSOCIATION (SO91) 

The EFS software automatically generates this amount from SO91. 

DIVIDENDS DECLARED: 

SI620: Preferred Stock 

Report the dollar amount of cash dividends declared during the period on preferred stock. These 

dividends are not charged to interest expense, but directly reduce retained earnings. 

Include: 

Dividends declared on preferred stock reported on SC812 and SC814. 

SI630: Common Stock 

Report the dollar amount of cash dividends declared during the period for common stock reported on 

SC820. These dividends are not charged to interest expense, but directly reduce retained earnings. 

Include cash dividends made to holding companies as well as to individual shareholders. 

Do not include: 

1. Stock dividends. 

2. Stock splits. 

3. Property dividends. Report as a negative amount on SI655. 

SI640: STOCK ISSUED 

Report the amount of cumulative and noncumulative perpetual preferred stock and common stock issued 

during the quarter. 

Include: 

1. Perpetual preferred stock, including discounts and premiums, issued by you during the quarter 

that qualifies as equity under GAAP. 

2. The par value and paid-in-capital received in connection with the stock issue. 

Do not include: 

1. The conversion of preferred stock into common stock. 

2. Gains on treasury stock sold. Report on SI671. 

3. Capital contributed not connected with a stock issue. Report on SI655. 

When applying push-down accounting, report the amount paid in a change of control for your stock. 

Report the previously recorded par value and capital in excess of par value on SI650.
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

 

SI650: STOCK RETIRED 

Report the amount paid for common and perpetual preferred stock retired during the quarter. Report the 

amount as a positive number. 

When applying push-down accounting, report the previously recorded par value and capital paid in 

excess of par value of the stock acquired by the new owners. The amount paid for this stock is reported 

on SI640. 

SI655: CAPITAL CONTRIBUTIONS (WHERE NO STOCK IS ISSUED) 

Report increases during the quarter in SC830, Common Stock: Paid in Excess of Par, that came from 

stockholders but that did not result from the issuing of stock. 

Include the fair value of employee stock options granted as compensation. 

Also include as a negative amount property distributions to stockholders. Record the transfer of dividends 

other than cash at the fair value of the asset on the declaration date of the dividend. Recognize a gain or 

loss on the transferred asset in the same manner as if you disposed of the property in an outright sale at 

or near the declaration date. 

SI660: NEW BASIS ACCOUNTING ADJUSTMENTS 

Include: 

1. Adjustments made during the period in applying push-down accounting in the change-of-control. 

2. Adjustments made in accounting for a savings association taken into receivership during the 

period. 

SI662: OTHER COMPREHENSIVE INCOME 

The EFS software automatically generates this amount as the change during the quarter in SC86, 

Accumulated Other Comprehensive Income: Total. 

Other comprehensive income includes the change in: 

1. Accumulated unrealized fair value gains and losses on available-for-sale securities, net of taxes. 

2. Accumulated fair value gains and losses on cash flow hedges, net of taxes. 

3. Any minimum pension liability adjustment. 

4. Cumulative foreign currency translation adjustments and qualifying foreign currency transaction 

gains and losses, net of taxes. 

SI668: PRIOR PERIOD ADJUSTMENTS 

Prior period adjustments for purposes of the TFR include: 

1. Changes to a beginning balance of equity capital pursuant to transition requirements under newly 

adopted accounting pronouncements. 

2. Corrections to an income statement for a quarter from a prior calendar year where the TFR for 

that quarter can no longer be amended. 

3. Cumulative effects of a change in accounting principle. 

Also refer to item number 6 in the General Instructions for the TFR. 

1008 SCHEDULE SI 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

 SCHEDULE SI 1009 

Do not include: 

1. Audit adjustments and prior period adjustments within the current calendar year. Correct these 

through an amended report within 140 days of the report date or report them currently in 

Schedule SO. 

2. Corrections of accruals. Report these in the current period in the same data field in Schedule SO 

that they would have been reported had the accruals been made when incurred. 

SI671: OTHER ADJUSTMENTS 

Report other adjustments to equity capital that cannot be included elsewhere in SI610 through SI668. 

Include: 

1. Issuance costs of common stock offerings. 

2. The change in SC891, Other Components of Equity Capital. 

Do not include: 

1. Property distributions to stockholders; report as a negative amount on SI655. 

2. Prior period adjustments to prior calendar years; report on SI668. 

3. Additional contributions of paid-in capital; report on SI655. 

4. Adjustments within the current calendar year. Correct these through an amended report within 

135 days of the report date, or report them currently in Schedule SO. 

5. Corrections of accruals. Report these in the current period in the same data field in Schedule SO 

that they would have been reported had the accruals been made when incurred. 

SI680: TOTAL SAVINGS ASSOCIATION EQUITY CAPITAL, ENDING 

BALANCE (SC80) 

The EFS software automatically calculates this as the sum of SI600, SI610, SI640, SI655, SI660, SI662, 

SI668, and SI671 less SI620, SI630, and SI650. SI680 must equal SC80, Total Savings Association 

Equity Capital, on the current TFR. 

TRANSACTIONS WITH AFFILIATES: 

The following two line items parallel 12 CFR 563.41, Transactions with Affiliates. Section 563.41(c)(3) 

requires each association to maintain records that reflect all transactions between a savings association 

and its affiliates. 

Section 563.41 implements the affiliate transactions regulation found in Sections 23A and 23B of the 

Federal Reserve Act, as codified in 12 CFR Part 223 (Regulation W). Sections 23A and 23B of the 

Federal Reserve Act are made applicable to savings associations by Section 11(a)(1) of the Home 

Owners’ Loan Act. You should include transactions subject to the quantitative limits of Section 23A in 

SI750. Include all other covered affiliate transactions in SI760, including transactions subject only to 

Section 23B. 

Affiliate and covered transaction are defined in Regulation W, as modified as appropriate for savings 

associations in Section 563.41. Generally, an affiliate is defined as: 

1. Your parent company. 

2. Any company controlled by your parent company that is not a subsidiary of yours (except a bank 

or thrift subsidiary of yours). 

3. Any company that you or another affiliate sponsors or advises. 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

 

4. Any company which shares a majority of the same directors with you or your parent company. 

Information in this section is not made public on an individual institution basis, but is available in the OTS 

aggregates. 

SI750: ACTIVITY DURING THE QUARTER OF COVERED 

TRANSACTIONS WITH AFFILIATES SUBJECT TO 

QUANTITATIVE LIMITS 

Report all covered affiliate transactions subject to quantitative limits. Generally, these include: 

 All purchases of assets by you from affiliates. This includes all commitments outstanding at the 

end of the quarter to purchase assets entered into with affiliates that will close in your name. 

Report such commitments on a gross basis. Do not net commitments to sell against 

commitments to purchase, even if the commitments are for the same or similar items and even if 

you will disburse or receive no cash. 

 All extensions of credit to affiliates. This includes, but is not limited to, loans and receivables 

whether or not supported by a loan document or contract; purchasing a note or other obligation of 

an affiliate, as well as loan guarantees or letters of credit on behalf of an affiliate. Acceptance of a 

security issued by an affiliate as collateral for an extension of credit to any third party. 

Include all transactions that occurred during the quarter, regardless of whether you have paid affiliates 

during the quarter or owe the amount as of the end of the quarter. 

SI760: ACTIVITY DURING THE QUARTER OF OTHER COVERED 

TRANSACTIONS WITH AFFILIATES NOT SUBJECT TO 

QUANTITATIVE LIMITS 

Report all other affiliate transactions that are not included in SI750. Generally, these include: 

 The sale of securities or other assets from you to an affiliate, including assets subject to a 

repurchase agreement. 

 Your payment of funds to, or furnishing of services to, an affiliate, including such tasks as 

collection of debt payments, data processing, maintenance, office supplies or payroll. 

 Any transaction in which an affiliate receives an agency or broker’s fee from you for its services 

on behalf of you or a third party. 

Include all transactions that occurred during the quarter, regardless of whether you have paid affiliates 

during the quarter or owe the amount as of the end of the quarter. 

ASSETS COVERED BY FDIC LOSS-SHARING AGREEMENTS: 

Under a loss-sharing agreement, the FDIC agrees to absorb a portion of the losses on a specified pool of 

a failed insured depository institution’s assets in order to maximize asset recoveries and minimize the 

FDIC’s losses. In general, the FDIC will reimburse 80 percent of losses incurred by an acquiring institution 

on covered assets over a specified period up to a stated threshold amount, with the acquirer absorbing 20 

percent of the losses on these assets. Any losses above the stated threshold amount will be reimbursed 

by the FDIC at 95 percent of the losses recognized by the acquirer. Reference the FDIC’s web site for 

“Loss-Share Questions and Answers”. 

Report in the appropriate line items below the Schedule SC – Consolidated Statement of Condition 

carrying amount as of the report date of all assets acquired from failed insured depository institutions or 

otherwise purchased from the FDIC that are covered by loss-sharing agreements with the FDIC. These 

1010 SCHEDULE SI 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

asset amounts should also be included in the balance sheet category appropriate to the asset on 

Schedule SC. 

Do not report the “book value” of the covered assets on the failed institution’s books, which may be the 

amount upon which payments from the FDIC to the reporting bank are to be based in accordance with the 

loss-sharing agreement. 

ASSETS COVERED BY FDIC LOSS-SHARING AGREEMENTS: 

SI770: LOANS AND LEASES 

Report the carrying amount of loans and leases held for sale and the recorded investment in loans held 

for investment (included in SC306, SC330 and SC26) acquired from the failed insured depository 

institutions or otherwise purchased from the FDIC that are covered by loss-sharing agreements with the 

FDIC. 

SI772: REAL ESTATE OWNED 

Report the carrying amount of real estate owned (included in SC40) acquired from failed insured 

depository institutions or otherwise purchased from the FDIC that are covered by loss-sharing 

agreements with the FDIC. 

SI774: DEBT SECURITIES 

Report the amortized cost of held-to-maturity debt securities and the fair value of available-for-sale debt 

securities (included in SC11 and SC22) acquired from failed insured depository institutions or otherwise 

purchased from the FDIC and covered by loss-sharing agreements with the FDIC. 

SI776: OTHER ASSETS 

Report the carrying amount of all assets that cannot properly be reported on SI770, SI772, and SI774, 

and have been acquired from failed insured depository institutions or otherwise purchased from the FDIC 

and are covered by loss-sharing agreements with the FDIC. 

MUTUAL FUND AND ANNUITY SALES: 

SI815: TOTAL ASSETS YOU MANAGE OF PROPRIETARY MUTUAL 

FUNDS AND ANNUITIES 

Report the total of net assets held by mutual funds and annuities as of the report date for which you, your 

subsidiaries, your affiliates, or parent company acts as investment adviser. 

AVERAGE BALANCE SHEET DATA (BASED ON MONTH-END DATA) 

Report average balance sheet data for the quarter. At a minimum, compute these data based on 

balances at month-end. However, you may compute these data based on other than month-end 

balances, such as daily or weekly balances. All balances should be as reported in Schedule SC. For 

example, the balance of loans should reflect premiums, discounts, deferred loan fees, allowances for 

credit losses, etc. Each month's average should be computed using the prior month's ending balance 

plus the current month's ending balance divided by two. For example, the balance at December 31 is 

considered to be the beginning balance at January 1. The average for the three months in the quarter 

should then be summed and divided by three. 

 SCHEDULE SI 1011 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

 

In the case of a business combination accounted for using the purchase method of accounting or 

acquisition by a holding company where you used pushdown accounting, you should include amounts for 

the acquired entity from the date of its acquisition through the end of the quarter. 

Example of Averaging: 

Balances 

Month Beginning Ending Average 

 December N/A 1,500 N/A 

 January 1,500 1,575 1,538 

 February 1,575 1,550 1,563 

 March 1,550 1,695 1,623 

 Sum 4,724 

 Quarter Average Balance = $4,724 / 3 = $ 1,575 

 If you consummated a merger on February 20, the calculation would be as follows: 

Beginning Ending Average Adjustment 

Adjusted 

Average 

 December N/A 1,500 N/A N/A 

 January 1,500 1,575 1,538 1,538 

 February pre-merger 1,575 1,550 1,563 x 19 days = 29,698 

 February post-merger 3,200 3,280 3,240 x 9 days = 29,160 

(29,698+ 29,160)/28 2,102 

 March 3,280 3,965 3,623 3,623 

 Sum 7,263 

 Quarter Average Balance = $7,263 / 3 = $2,421 

1012 SCHEDULE SI 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

SI870: TOTAL ASSETS 

Report your average assets for the quarter based on the calculation explained above using total assets 

reported on SC60. 

SI875: DEPOSITS AND INVESTMENTS EXCLUDING NON-INTERESTEARNING ITEMS 

Report your average deposits and investments for the quarter based on the calculation explained above 

using interest-earning deposits and investments reported on SC112 through SC185. Do not include 

mortgage loans and mortgage-backed securities included in SI880. 

If you invest in adjustable rate products on which the interest rate has been reduced to zero as a result of 

market conditions, you should continue to report such investments in these averages. 

SI880: MORTGAGE LOANS AND MORTGAGE-BACKED SECURITIES 

Report your average mortgage loans and mortgage-backed securities for the quarter based on the 

calculation explained above using mortgage loans and mortgage-backed securities reported on SC210 

through SC222 and SC230 through SC265. 

SI885: NONMORTGAGE LOANS 

Report your average nonmortgage loans for the quarter based on the calculation explained above using 

nonmortgage loans reported on SC300 through SC330. 

SI890: DEPOSITS AND ESCROWS 

Report your average interest-earning deposits and escrows for the quarter based on the calculation 

explained above using interest-earning deposits included in SC710 and SC712. If you offer deposit 

products on which you periodically adjust the interest rate, and the interest rate has been reduced to zero 

as a result of market conditions, you should continue to report such deposits as interest-bearing accounts 

in these averages. 

SI895: TOTAL BORROWINGS 

Report your average interest-bearing borrowings for the quarter based on the calculation explained 

above using interest-bearing borrowings reported on SC720 through SC760. 

BROKERAGE ACTIVITES: 

SI901: DOES YOUR INSTITUTION, WITHOUT TRUST POWERS, ACT 

AS TRUSTEE OR CUSTODIAN FOR INDIVIDUAL RETIREMENT 

ACCOUNTS, HEALTH SAVINGS ACCOUNTS, AND OTHER 

SIMILAR ACCOUNTS THAT ARE INVESTED IN NON-DEPOSIT 

PRODUCTS? 

 SCHEDULE SI 1013 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

 

Indicate whether the institution acts as trustee or custodian for Individual Retirement Accounts (IRAs), 

Health Savings Accounts (HSAs), or other similar accounts. To answer “Yes” on this line, the institution 

must be acting as trustee or custodian for accounts that are invested, to some extent, in non-deposit 

products (e.g. stocks, bonds, variable annuities, mutual funds) but those same accounts may also be 

invested in deposit products. Note that this line item is related to that of DI200 which asks the amount of 

IRA and Keogh accounts invested in deposit products. 

Other similar accounts include Roth IRAs, Coverdell Education Savings Accounts, and Archer Medical 

Savings Accounts. Federal savings associations are permitted, under certain circumstances, to act as 

trustee or custodian for these types of accounts without obtaining trust powers. Place an “X” in the box 

marked “Yes” if the reporting institution acts as trustee or custodian for these types of accounts, 

regardless of whether it has trust powers, as long as the accounts are invested, to some extent, in nondeposit products. Otherwise, place an “X” in the box marked “No.” 

SI905: DOES YOUR INSTITUTION PROVIDE CUSTODY, 

SAFEKEEPING OR OTHER SERVICES INVOLVING THE 

ACCEPTANCE OF ORDERS FOR THE SALE OR PURCHASE 

OF SECURITIES? 

Indicate whether the institution takes orders from customers for the sale or purchase of securities (e.g. 

stocks, bonds, mutual funds, variable annuities), in custody, escrow, safekeeping, and other similar types 

of accounts. In some institutions this activity takes places in a trust department but federal savings 

associations are permitted to conduct this activity without obtaining trust powers. The account holders 

may be employee benefit plans, Individual Retirement Accounts, foundations, or other types of 

customers. Place an “X” in the box marked “Yes” if the reporting institution takes orders from customers 

for the sale or purchase of securities. Otherwise, place an “X” in the box marked “No.” 

SI911: DOES YOUR INSTITUTION ENGAGE IN THIRD PARTY 

BROKER ARRANGEMENTS, COMMONLY REFERRED TO AS 

“NETWORKING”, TO SELL SECURITIES PRODUCTS OR 

SERVICES TO THRIFT CUSTOMERS? 

Indicate whether the institution has entered into a contract with a broker-dealer or registered investment 

adviser to provide non-deposit products (e.g. stocks, bonds, mutual funds) or services (investment 

advisory or financial planning) to its customers. The broker-dealer or registered investment adviser may 

or may not be an affiliate of the institution. Institutions that have entered into a contract with an insurance 

company to only provide insurance products (e.g. life insurance, fixed annuities, property & casualty 

insurance) to its customers should place an “X” in the box marked “No”. Place an “X” in the box marked 

“Yes” if the reporting institution has entered into a contract with a broker-dealer or registered investment 

adviser to provide non-deposit products or services to its customers. Otherwise, place an “X” in the box 

marked “No.” 

1014 SCHEDULE SI 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

 SCHEDULE SI 1015 

SI915: DOES YOUR INSTITUTION SWEEP DEPOSIT FUNDS INTO 

ANY OPEN-END INVESTMENT MANAGEMENT COMPANY 

REGISTERED UNDER THE INVESTMENT COMPANY ACT OF 

1940 THAT HOLDS ITSELF OUT AS A MONEY MARKET 

FUND? 

Indicate whether the institution offers a “sweep” program to its customers whereby the customer’s deposit 

funds are invested or reinvested into money market mutual funds on a regular basis such as daily, 

weekly, etc. Place an “X” in the box marked “Yes” if the reporting institution offers a sweep program to its 

customers that invests or reinvests on a regular basis deposit funds into a money market mutual fund. 

Otherwise, place an “X” in the box marked “No.” 
THIS PAGE INTENTIONALLY LEFT BLANK 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

to the relationship), you may use any reasonable method to establish values for purposes of reporting on 

this schedule. Reasonable methods may include appraisals, book value, or reliable estimates. Valuation 

methods should be consistent from reporting period to reporting period. This “reasonable method” 

approach to reporting market value applies both to financial assets that are not marketable and to 

physical assets. Physical assets held in fiduciary accounts may include equipment, art, collectibles, and 

household goods. 

Only those Individual Retirement Accounts, Health Savings Accounts, and other similar accounts offered 

through a fiduciary business unit should be reported in Schedule FS. When such accounts are not 

offered through the trust department or fiduciary business unit, they should not be reported in Schedule 

FS. Accounts that consist solely of deposits in the thrift itself should not be reported in Schedule FS. 

If two institutions are named cofiduciary in the governing instrument, both institutions should report the 

account. In addition, where one institution provides fiduciary or related services to another institution’s 

accounts (for example: Bank A provides custody services to the trust accounts of Bank B; or Bank A 

provides investment management services to the trust accounts of Bank B) both institutions should report 

the accounts, according to the services provided. 

Exclude unfunded trusts, anticipated testamentary executor appointments, and any other arrangements 

that represent potential future fiduciary accounts. 

Report asset values net of any outstanding liabilities. For example, report: (1) an employee benefit 

account with participant loans net of the outstanding loan balances; (2) an account with a real estate 

asset and corresponding mortgage loan net of the mortgage liability; (3) gross fiduciary assets net of any 

associated overdrafts; and (4) gross assets net of the fair value of derivative instruments, even if the fair 

value is negative. 

Reflect securities lending transactions as sales or as secured borrowings according to GAAP. A 

transferee (borrower) of securities generally is required to provide collateral to the transferor (lender) of 

securities. When such transactions do not qualify as sales, securities lenders and borrowers should 

account for the transactions as secured borrowings in which cash (or securities that the holder is 

permitted by contract or custom to sell or repledge) received as collateral by the securities lender is 

considered the amount borrowed and the securities loaned are considered pledged against the amount 

borrowed. For purposes of this schedule, securities held in fiduciary accounts that are loaned in 

securities lending transactions and are accounted for as secured borrowings should be reported as an 

asset of the respective fiduciary account that loaned the securities, but the collateral received should not 

be reported as an asset of the fiduciary account. 

In the Fiduciary and Related Assets section (FS210 through FS291), you should include for each account 

in whatever line item is pertinent, the market value of common trust fund units, collective investment fund 

(CIF) units, and shares of proprietary mutual funds held by the account. Proprietary mutual funds are 

those funds where you, your affiliates, or your subsidiaries act as investment adviser to the fund. You 

should not report a common trust fund or a collective investment fund administered by you as a 

separate account in FS260/262. You should report each proprietary mutual fund as a separate account 

in FS260 and include its assets in FS262. When reporting a proprietary mutual fund in FS290, subtract 

from the value of the mutual fund as a whole, those shares held by fiduciary or custodial accounts that 

are already reported in the fiduciary and related section on FS210 through FS291. This will prevent 

duplicate reporting. 

MANAGED ASSETS 

Report the total market value of assets held in managed fiduciary accounts. An account should be 

categorized as managed if you have investment discretion over the assets of the account. Investment 

discretion is defined as the sole or shared authority to determine what securities or other assets to 

purchase or sell on behalf of the fiduciary account, even if that authority is not exercised. If you have 

delegated your investment authority to another institution, then you both have investment discretion for 

reporting purposes. You should report an account as either managed or nonmanaged based on your 

predominant responsibility. 

 SCHEDULE FS 1303 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

1304 SCHEDULE FS 

Whether an account where investment discretion has been delegated to a registered investment adviser, 

whether affiliated or nonaffiliated, should be reported as a managed account depends on whether the 

delegation of investment authority to the registered investment adviser was made pursuant to the 

exercise of investment discretion. If so, the account is deemed to be a managed account. Otherwise, the 

account would be a non-managed account for purposes of Schedule FS. 

NONMANAGED ASSETS 

Report the total market value of assets held in nonmanaged fiduciary accounts. An account should be 

categorized as nonmanaged if you do not have investment discretion. Accounts should be categorized 

as nonmanaged where you are a fiduciary and provide a menu of investment options but the ultimate 

selection authority remains with the account holder or an external manager. For example, if you provide 

a choice of sweep vehicles or an array of mutual funds, you are not necessarily exercising investment 

discretion. Another example of a fiduciary nonmanaged account is where you serve as trustee for a 

401(k) employee benefit plan and the plan participants make their own investment selections. Investment 

advisory agency accounts for which a savings association provides investment advice for a fee but where 

the ultimate investment decision rests with the customer should be reported as a nonmanaged account. 

NUMBER OF MANAGED ACCOUNTS 

Report the total number of managed fiduciary accounts. 

NUMBER OF NONMANAGED ACCOUNTS 

Report the total number of nonmanaged fiduciary accounts. 

FS210 Through 213: Personal Trust and Agency Accounts 

Report the market value and number of accounts for all testamentary trusts, revocable and irrevocable 

living trusts, and any other personal trusts and estates. Include accounts in which you serve as trustee, 

executor, administrator, guardian, or conservator. Do not include personal investment management 

accounts, these should be reported on FS260/262. Personal investment advisory accounts should be 

reported on FS261/263. Also, do not include Keogh Act plans, and other pension or profit sharing plans 

for self-employed individuals. These should be included in FS240 through FS243. Individual Retirement 

Accounts, Health Savings Accounts and other similar accounts should be included in FS234 through 

FS237 and in FS240 through FS243. Include accounts that only receive custody or safekeeping services 

in FS280 and FS281. 

Retirement-related Trust and Agency Accounts: 

FS220 Through FS223: Employee Benefit - Defined Contribution 

Report the market value and number of accounts for all employee benefit, defined contribution accounts 

for which you serve as trustee or in another fiduciary capacity. Include 401(k) plans, 403(b) plans, profitsharing plans, money purchase plans, target benefit plans, stock bonus plans, employee stock ownership 

plans, and thrift savings plans. Employee benefit accounts for which you serve as a directed trustee 

should be reported as non-managed. The number of accounts reported should reflect the total number of 

plans administered rather than the number of plan participants. Report employee benefit accounts for 

which you are a custodian in FS280 and FS281. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

 SCHEDULE HC 1403 

Equity: 

Perpetual Preferred Stock: 

Include: 

1. Preferred stock that the holding company has issued that is nonredeemable by the purchaser and 

that qualifies as equity capital under GAAP. 

2. Preferred stock convertible into common stock. 

Report preferred stock net of issuance costs, premiums, and discounts. If the holding company issued 

preferred stock above par value, include the amount paid in excess of par with the par value. 

Dividends on perpetual preferred stock reduce retained earnings when declared. Include them on 

HC575, Dividends Declared Attributable to Holding Company. 

Do not include: 

1. Redeemable preferred stock. 

2. Permanent preferred stock issued by a consolidated subsidiary. 

HC221: Cumulative 

Report permanent preferred stock where the stockholders are entitled to receive unpaid dividends before 

the payment of dividends on other classes of stock. 

HC222: Noncumulative 

Report permanent preferred stock whose dividends do not accumulate if unpaid. 

Common Stock: 

HC223: Par Value 

Report the par value of all outstanding common stock – permanent, reserve, or guaranty stock – that the 

holding company has issued. 

If the par value of common stock issued is less than $500, report “1” in this data field to indicate that it is 

not zero, and, if necessary, reduce the amount that you report on HC224 by one. 

You must reduce retained earnings at the time that the holding company declares dividends on common 

stock. Report the reduction of retained earnings on HC575, Dividends Declared Attributable to Holding 

Company. 

Do not include deductions for: 

1. Stock the holding company reacquired – treasury stock. Report as a negative on HC229, Other 

Components of Equity. 

2. Unallocated ESOP shares. Report as a negative on HC229, Other Components of Equity. 

HC224: Paid in Excess of Par 

Include: 

1. Amounts paid in excess of par value from the issuance of common stock for cash or nonmonetary 

assets. Deduct the costs of issuing common stock. 

2. Permanent capital contributions by the stockholders not related to the purchase of stock.
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

Do not include: 

Paid-in capital from the issuance of preferred stock. Report on HC221 or HC222, Perpetual Preferred 

Stock. 

Accumulated Other Comprehensive Income: 

HC225: Accumulated Gains (Losses) on Certain Securities 

Report accumulated gains (losses), net of taxes, on securities and on certain nonsecurity financial 

instruments, CNFIs, classified as available for sale (AFS). 

Gains and losses reported here are not reported in the statement of operations until either the asset is 

sold, an other-than-temporary impairment loss is recognized, or this amount is amortized in accordance 

with the following paragraph. 

Include the unamortized amount of the gain or loss at the date of transfer of debt securities transferred 

from AFS to held-to-maturity (HTM). Continue to report this gain or loss on this line until it is completely 

amortized over the remaining life of the security as an adjustment of yield in the same manner as a 

discount or premium. 

In addition, report on this line the amount of the other-than-temporary impairment (OTTI) on AFS and 

HTM debt securities that is related to all factors other than credit, where that amount is appropriately 

recognized in other comprehensive income. 

Report this data field as negative when your unrealized losses exceed unrealized gains. 

HC226: Gains (Losses) on Cash Flow Hedges 

Report the accumulated fair value gain or loss, net of taxes, on cash flow hedges. 

HC227: Other 

Report any accumulated other comprehensive income not included on HC225 or HC226. 

Include: 

1. Any minimum pension liability adjustment. 

2. Cumulative foreign currency translation adjustments and qualifying foreign currency transaction 

gains and losses, net of taxes. 

3. Any other items of accumulated other comprehensive income not reported in other Accumulated 

Other Comprehensive Income HC line items. 

HC228: Retaining Earnings 

Retained earnings consists of the holding company’s accumulated net income, less distributions to 

shareholders, and certain accounting adjustments. 

HC229: Other Components of Equity 

Report amounts reported under GAAP as separate components of equity. In most cases the amounts in 

this data field will be negative, as these items typically reduce equity capital. 

1404 SCHEDULE HC 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

Include: 

1. Treasury stock. 

2. Unearned employee stock ownership plan (ESOP) shares, when such reporting is required under 

GAAP. 

HC240: Total Equity 

The EFS software will compute this line as the sum of HC221, HC222, HC223, HC224, HC225, HC226, 

HC227, HC228, and HC229. 

Generally, parent only Total Equity should be equal to consolidated Total Equity (HC630), less any 

amount reported on HC620, Noncontrolling Interests in Consolidated Subsidiaries. If this is not the case, 

explain the difference in a user note. 

HC20: Total Liabilities and Equity 

The EFS software will compute this line as the sum of HC220 and HC240. This amount should equal that 

on HC210. 

HC250: Net Income (Loss) Attributable to: Holding Company 

Report the holding company’s net income or loss. Include the parent holding company’s proportionate 

share of any thrift institution subsidiary’s income or loss. The amount reported on this line is comprised of 

the amounts reported on HC509, HC570, and HC571. 

HC575: Dividends Declared Attributable to: Holding Company 

Report the cash and noncash dividends declared on preferred and common stock reported on HC221, 

HC222, HC223, and HC224. 

Included in Total Assets: 

HC301: Cash, Deposits, and Investment Securities 

Report the total amount of cash, including deposits with financial institutions, and investment securities. 

Do not include the holding company’s investments in subsidiaries. Report such amounts on HC330 and 

HC340. 

Receivable from Subsidiaries: 

HC310: Savings Association 

Report the holding company’s receivable from savings association subsidiaries, which is sometimes 

referred to as “advances to” or “due from.” Include certain ESOP borrowings reflected on the savings 

association’s books that are reported as receivables on a parent only basis.

HC320: Other Subsidiaries 

Report the holding company’s receivable from subsidiaries other than savings association subsidiaries, 

which is sometimes referred to as “advances to” or “due from”. 

 SCHEDULE HC 1405 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

Investments in Subsidiaries: 

HC330: Savings Association 

Report the holding company’s direct investment in savings association subsidiaries in a manner that 

reflects the equity method of accounting. In most cases, if you are wholly owned, this line should equal 

your equity (SC80). 

Report zero if this holding company is not the direct owner of the savings association. 

HC340: Other Subsidiaries 

Report the holding company’s investment in subsidiaries other than savings association subsidiaries in a 

manner that reflects the equity method of accounting. If this holding company is not the direct owner of 

the savings association, report the holding company’s investments in one or more the mid-tier holding 

companies. 

Intangible Assets 

HC350: Mortgage Servicing Assets 

Report the carrying amount of mortgage servicing assets. 

HC360: Nonmortgage Servicing Assets and Other 

Report the balance of the parent’s nonmortgage servicing assets and other intangible assets. 

Include on this line intangible assets such as the following: 

1. Goodwill. 

2. Customer relationships and customer lists, including core deposit premiums. 

3. Employment agreements. 

4. Non-compete agreements. 

5. Lease agreements. 

6. Computer software costs. 

HC370: Deferred Policy Acquisition Costs 

Report deferred policy acquisition costs (DPAC) incurred by insurance companies. DPAC include 

variable acquisition costs such as commissions and underwriting and policy issuance expenses related to 

both new and renewal insurance policies and annuities. 

Included in Total Liabilities (Excluding Deposits) Payable to 

Subsidiaries: 

Borrowings, as the term is used here, means short-term or long-term debt, negotiated with specified 

terms, usually including interest rates and repayment dates. Borrowings exclude deposits and 

transactional liabilities, such as accounts payable, income taxes payable, and accrued liabilities. 

1406 SCHEDULE HC 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

 SCHEDULE HC 1407 

Savings Association Subsidiaries: 

HC410: Transactional 

Report the holding company’s payable to savings association subsidiaries, which is sometimes referred to 

as “advances from” or “due to”. Do not include amounts reported on HC420. 

HC420: Debt 

Report the amount of borrowings the holding company owes to the reporting savings association. Do not 

include amounts reported on HC410. 

Other Subsidiaries: 

HC430: Transactional 

Report the holding company’s payable to subsidiaries other than savings association subsidiaries, which 

is sometimes referred to as “advances from” or “due to”. Do not include amounts reported on HC440. 

HC440: Debt 

Report the balance of the holding company's borrowings from its subsidiaries other than savings 

association subsidiaries. Do not include amounts reported on HC430 and HC445. 

HC445: Trust Preferred Instruments 

Trust preferred securities are typically issued to third party investors by a wholly owned trust of the 

holding company. The holding company typically borrows from the trust substantially all the net proceeds 

from issuance of the trust preferred securities. For parent only reporting, report the balance of the holding 

company's borrowings from the trust that issued the trust preferred securities. 

In most cases, the holding company's financial statements do not reflect consolidation of the financial 

statements of the trust that issued the trust preferred securities. Accordingly, the amounts in HC445 and 

HC 670 should be equal. If the trust is consolidated, report on HC 670 the balance of the trust preferred 

instruments. 

HC450: Other Debt Maturing in 12 Months or Less 

Report all borrowings, excluding deposits, payable to subsidiaries, and trust preferred instruments that 

you would classify as current liabilities if the holding company were to present a classified balance sheet. 

Include such borrowings that, within the next 12 months, either (1) contractually mature; (2) are callable at 

the option of the lender; or (3) otherwise become due and payable. 

Callable, as the term is used here, refers to an option by the lender to require repayment of the borrowing 

before its contractual maturity. 

A classified balance sheet is one that includes subtotals for current assets and current liabilities. Most 

savings association holding companies do not present a classified balance sheet. However, for purposes 

of HC450/HC680 and HC460/HC690, classify all borrowings as either current or noncurrent. 

Example: A holding company’s borrowings, on a consolidated basis, include a FHLBank advance where 

the contractual maturity date is beyond the next 12 months. However, beginning on a date within the next
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

12 months, the FHLBank may exercise its option to require immediate repayment of the advance. You 

should include that advance in HC450/HC680. 

HC460: Other Debt Maturing in More Than 12 Months 

Report all borrowings (other than payables to subsidiaries and trust preferred securities) except: 

1. Debt maturing in 12 months or less reported on HC450/HC680. 

2. Deposit and escrow liabilities held by you or any other subsidiary depository institution. 

Reflected in Net Income: 

HC505: Interest Income 

Report interest income on all interest-bearing assets, including those assets reported on HC301, HC310, 

and HC320. 

Dividends 

As stated in the General Instructions to Schedule HC, the amounts in the “Parent Only” column should 

reflect the holding company’s investment in subsidiaries, and the operations of those subsidiaries, under 

the equity method of accounting. Consistent with those instructions, the holding company’s net income 

on a “Parent Only” basis, as reported on HC250, should reflect the holding company’s equity in net 

income or loss of its subsidiaries. Typically, such income or loss is presented as two separate 

components: 

1. Dividends from subsidiaries – that is, the distributed component, and 

2. Equity in undistributed income or loss of subsidiaries. 

Accordingly, report on HC525 and HC535 the dividends from subsidiaries component of the holding 

company’s equity in net income or loss of its directly owned subsidiaries. 

For example, assume that the holding company’s equity in the net income of its savings association 

subsidiary is $10 million; and that dividends declared by, and received from, the subsidiary are $3 million. 

The holding company’s net income on a parent only basis reported on HC250, “Net Income (Loss) 

Attributable to Holding Company”, would include the $10 million. The holding company would report the 

$3 million on HC525. Note that the holding company’s $7 million ($10 million - $3 million) undistributed 

income component of its equity in income of the savings association subsidiary would not be reported 

separately on Schedule HC. 

HC525: From Savings Association Subsidiaries 

Report dividends from savings association subsidiaries in which you have direct ownership. Such 

dividends should be recognized by the holding company under the equity method of accounting. 

HC535: From Other Subsidiaries 

Report dividends from all other subsidiaries than savings association subsidiaries recognized by the 

holding company under the equity method of accounting. 

HC509: Total Income 

Report the holding company’s total income from all sources, including the amounts reported on HC505, 

HC525, and HC535. 

1408 SCHEDULE HC 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

Interest Expense 

HC545: Trust Preferred Instruments 

Report interest expense from borrowings from the trust that issued the trust preferred instruments. 

HC555: All Other Debt 

Report interest expense, excluding interest expense on trust-preferred instruments and on deposit and 

escrow liabilities held by a subsidiary depository institution. 

HC570: Total Expenses 

Report the holding company’s total expenses from all sources, including the amounts reported on HC545 

and HC555. 

HC571: Total Income Taxes 

Report the holding company’s provision for current and deferred income taxes, determined in accordance 

with GAAP. 

HC565: Net Cash Flow From Operations Attributable to: Holding 

Company 

Report the net increase or decrease in cash and cash equivalents from operating activities, as it would 

appear in a statement of cash flows prepared in accordance with GAAP. Do not include any change in 

cash and cash equivalents from investing and financing activities. 

CONSOLIDATED 

Prepare the consolidated amounts on Schedule HC in accordance with GAAP unless specifically stated 

otherwise. All data is reported as of the end of the quarter, or in the case of income, expense, and other 

activity data, for the period of one calendar quarter. Report subsidiaries that are not GAAP-consolidated 

subsidiaries using the equity method of accounting. 

HC600: Total Assets 

Report total consolidated assets. Report details for components included in Total Assets on HC601 

through HC660. 

HC610: Total Liabilities 

Report total consolidated liabilities. Report details for components included in Total Liabilities on HC670 

through HC690. 

Equity: 

Perpetual Preferred Stock: 

Include: 

1. Preferred stock that the holding company has issued that is nonredeemable by the purchaser and 

that qualifies as equity capital under GAAP. 

 SCHEDULE HC 1409 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

1410 SCHEDULE HC 

2. Preferred stock convertible into common stock. 

Report preferred stock net of issuance costs, premiums, and discounts. If the holding company issued 

preferred stock above par value, include the amount paid in excess of par with the par value. 

Dividends on perpetual preferred stock reduce retained earnings when declared. Include them on 

HC775, Dividends Declared Attributable to Holding Company. 

Do not include: 

1. Redeemable preferred stock. 

2. Permanent preferred stock issued by a consolidated subsidiary. 

HC621: Cumulative 

Report permanent preferred stock where the stockholders are entitled to receive unpaid dividends before 

the payment of dividends on other classes of stock. 

HC622: Noncumulative 

Report permanent preferred stock whose dividends do not accumulate if unpaid. 

Common Stock: 

HC623: Par Value 

Report the par value of all outstanding common stock – permanent, reserve, or guaranty stock – that the 

holding company has issued. 

If the par value of common stock issued is less than $500, report “1” in this data field to indicate that it is 

not zero, and, if necessary, reduce the amount that you report on HC624 by one. 

You must reduce retained earnings at the time that the holding company declares dividends on common 

stock. Report the reduction of retained earnings on HC775, Dividends Declared Attributable to Holding 

Company. 

Do not include deductions for: 

1. Stock the holding company reacquired – treasury stock. Report as a negative on HC629, Other 

Components of Equity. 

2. Unallocated ESOP shares. Report as a negative on HC629, Other Components of Equity. 

HC624: Paid in Excess of Par 

Include: 

1. Amounts paid in excess of par value from the issuance of common stock for cash or nonmonetary 

assets. Deduct the costs of issuing common stock. 

2. Permanent capital contributions by the stockholders not related to the purchase of stock. 

Do not include: 

Paid-in capital from the issuance of preferred stock. Report on HC621 or HC622, Perpetual Preferred 

Stock.
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

Accumulated Other Comprehensive Income: 

HC625: Accumulated Gains (Losses) on Certain Securities 

Report accumulated gains (losses), net of taxes, on securities and on certain nonsecurity financial 

instruments, CNFIs, classified as available for sale (AFS). 

Gains and losses reported here are not reported in the statement of operations until either the asset is 

sold, an other-than-temporary impairment loss is recognized, or this amount is amortized in accordance 

with the following paragraph. 

Include the unamortized amount of the gain or loss at the date of transfer of debt securities transferred 

from AFS to held-to-maturity (HTM). Continue to report this gain or loss on this line until it is completely 

amortized over the remaining life of the security as an adjustment of yield in the same manner as a 

discount or premium. 

In addition, report on this line the amount of the other-than-temporary impairment (OTTI) on AFS and 

HTM debt securities that is related to all factors other than credit, where that amount is appropriately 

recognized in other comprehensive income. 

Report this data field as negative when your unrealized losses exceed unrealized gains 

HC626: Gains (Losses) on Cash Flow Hedges 

Report the accumulated fair value gain or loss, net of taxes, on cash flow hedges. 

HC627: Other 

Report any accumulated other comprehensive income not included on HC625 or HC626. 

Include: 

1. Any minimum pension liability. 

2. Cumulative foreign currency translation adjustments and qualifying foreign currency transaction 

gains and losses, net of applicable income taxes. 

3. Any other items of accumulated other comprehensive income not reported in other Accumulated 

Other Comprehensive Income HC line items. 

HC628: Retained Earnings 

Retained earnings consists of the holding company’s accumulated net income, less distributions to 

shareholders, and certain accounting adjustments. 

HC629: Other Components of Equity 

Report amounts reported under GAAP as separate components of equity. In most cases the amounts in 

this data field will be negative, as these items typically reduce equity capital. 

Include: 

1. Treasury stock. 

 SCHEDULE HC 1411 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

1412 SCHEDULE HC 

2. Unearned employee stock ownership plan (ESOP) shares. 

HC60: Total Holding Company Equity 

The EFS software will compute this line as the sum of HC621, HC622, HC623, HC624, HC625, HC626, 

HC627, HC628, and HC629. 

This subtotal excludes noncontrolling interests in consolidated subsidiaries. 

HC620: Noncontrolling Interests in Consolidated Subsidiaries 

Include: 

1. Common and perpetual preferred stock issued by the holding company’s consolidated 

subsidiaries to third parties that constitute a noncontrolling interest. 

For any net income or loss attributable to a noncontrolling interest in a consolidated subsidiary, 

see the instructions for HC640, Net Income (Loss) Attributable to Holding Company. 

Do not include: 

1. Mandatorily redeemable preferred stock that must be classified as a liability under GAAP. Report 

this amount on HC610, Total Liabilities. 

2. Redeemable and perpetual preferred stock that was issued by consolidated subsidiaries and is 

owned by the holding company or its other subsidiaries as an investment asset. When making 

consolidating entries, eliminate the preferred stock of the consolidated subsidiary. 

HC630: Total Equity 

The EFS software will compute this line as the sum of HC60 and HC620. 

Generally, consolidated Total Equity should be equal to parent only Total Equity on HC240, plus 

Noncontrolling Interests in Consolidated Subsidiaries on HC620. If this is not the case, explain the 

difference in a user note. 

HC70: Total Liabilities and Equity 

The EFS software will compute this line as the sum of HC610 and HC630. This amount should equal that 

on HC600. 

HC635: Net Income (Loss) Attributable to Holding Company and 

Noncontrolling Interests 

Report net income or loss on a consolidated basis, including the net income or loss attributable to 

noncontrolling interests in consolidated subsidiaries. The amount reported on this line is comprised of the 

amounts reported on HC709, HC770, and HC771. 

HC640: Net Income (Loss) Attributable to Holding Company 

Report net income or loss on a consolidated basis attributable to the holding company only; that is, 

without regard to the net income or loss attributable to noncontrolling interests in consolidated 

subsidiaries.
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010

 SCHEDULE CCR 1601 

SCHEDULE CCR — CONSOLIDATED CAPITAL 

REQUIREMENT 

Throughout these instructions, you and your refers to the reporting savings association and its 

consolidated subsidiaries; we and our refers to the Office of Thrift Supervision. 

GENERAL INSTRUCTIONS 

OTS-regulated savings associations must comply with two overlapping sets of regulatory capital 

standards listed below: 

12 CFR § 567, Capital (FIRREA) 

1. Tangible capital: The minimum ratio, as a percent of tangible assets, is 1.5 percent. 

2. Core or leverage capital: The minimum ratio, as a percent of adjusted total assets, is 3 percent for 

savings associations assigned a composite CAMELS rating of ”1”, and 4 percent for all other 

savings associations. 

3. Risk-based capital: The minimum ratio, as a percent of risk-weighted assets, is 8 percent. 

12 CFR § 565, Prompt Corrective Action (FDICIA) 

4. Tangible equity: Savings associations with tangible equity equal to or less than 2 percent of 

tangible assets are critically undercapitalized. 

5. Tier 1 or leverage capital: Savings associations are adequately capitalized or well capitalized if 

the minimum ratios, as a percent of adjusted total assets, are 4 percent or 5 percent, respectively. 

Note: § 567 contains an exception to these standards. 

6. Tier 1 risk-based capital: Savings associations are adequately capitalized or well capitalized if the 

minimum ratios, as a percent of risk-weighted assets, are 4 percent or 6 percent, respectively. 

7. Total risk-based capital: Savings associations are adequately capitalized or well capitalized if the 

minimum ratios, as a percent of risk-weighted assets, are 8 percent or 10 percent, respectively. 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

Note: The following paragraph refers to numbers 1 through 7 above. 

Schedule CCR - Consolidated Capital Requirement uses the following conventions: 

 Tangible capital (FIRREA) [See 1 above.] 

Schedule CCR does not include this measure because the minimum ratio is no longer considered 

a meaningful limitation for most savings associations. 

 Tangible equity (FDICIA) [See 4 above.] 

 CCR840 reports the calculated tangible equity ratio. 

 Core or leverage capital (FIRREA) [See 2 above.] and Tier 1 or leverage capital (FDICIA) [See 5 

above.] 

Schedule CCR treats these two measurements as one and refers to them as Tier 1 (core) capital. 

CCR810 reports the actual ratio. An adequately capitalized savings association must have a 

minimum Tier 1(core) capital ratio of 4 percent. CCR20 reports the calculated amount. 

 Tier 1 risk-based capital (FDCIA) [See 6 above.] 

 CR830 reports the calculated ratio. 

 Risk-based capital (FIRREA) [See 3 above.] and total risk-based capital (FDICIA) [See 7 above.] 

Schedule CCR treats these two measurements as one and refers to them as total risk-based 

capital. CCR820 reports the calculated ratio. An adequately capitalized savings association must 

have a minimum total risk-based capital ratio of 8 percent. CCR39 reports the calculated amount. 

Generally, report all data on a consolidated basis with all subsidiaries that you would consolidate under 

GAAP, except as noted in these instructions. 

Where OTS exercises its Reservation of Authority under 12 CFR Section 567.11, and requires a savings 

association to apply another risk weight, credit equivalent amount, or credit conversion factor that OTS 

deems appropriate for the risk of a particular asset or off-balance sheet item, or where such requirement 

is imposed via a formal enforcement action (e.g., cease and desist order), the savings association should 

report these assets, regardless of asset type, on CCR 506 according to the newly assigned risk weight. 

See instructions for CCR 506. For savings associations subject to an Individual Minimum Capital 

Requirement (IMCR) imposed pursuant to 12 CFR Section 567.3 or a capital requirement imposed by 

formal enforcement action (e.g. capital directive or cease and desist order) that change the Tier 1 (Core) 

or Total Risk-Based capital requirement on CCR 27 and CCR 80, respectively, you must over-ride the 

calculated amount, and self-report the supervisory capital requirement on those lines. See also OTS 

Handbook Section 80 on Administration for additional information on types of enforcement actions. 

Subsidiary: The term subsidiary means any corporation, partnership, business trust, joint venture, 

association, or similar organization where you, directly or indirectly, hold an ownership interest and 

consolidate the assets with yours for purposes of reporting under GAAP. Generally these are majorityowned subsidiaries. 

This definition does not include ownership interests taken in satisfaction of debts previously contracted, 

provided you have not held the interest for more than five years, or a longer period if approved by OTS. 

Generally, treat investments in entities not constituting subsidiaries under this definition as equity 

investments for capital purposes. 

The following shows the regulatory capital treatment of debt and equity investments in subsidiaries and 

other subordinated organizations: 

 Consolidate includable subsidiaries in accordance with GAAP. 

 Deduct debt and equity investments in nonincludable subsidiaries in full (100 percent) from 

assets and capital. All previously applicable transition provisions have expired. 

 Deduct nonincludable equity investments in subordinate organizations constituting subsidiaries in 

full (100 percent) in computing total capital for the total risk-based capital standard. 

1602 SCHEDULE CCR 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010

 SCHEDULE CCR 1603 

Nonincludable subsidiaries: Generally include subsidiaries engaged as principal in activities not 

permissible for a national bank. The instructions for CCR105 define nonincludable subsidiaries. 

Note: Do not consolidate subsidiaries with investments fully covered by the FDIC. Include all FDICcovered assets in the zero percent risk-weight category, and report them on CCR409, Notes and 

Obligations of FDIC, Including Covered Assets. 

These instructions deal with investments in mutual funds and certain asset pools based on the 

characteristics of the assets in the fund. Where the mutual fund holds various assets that have different 

risk weights under the capital requirement, risk weight the entire ownership interest in the mutual fund 

based on the category of the asset with the highest capital requirement – highest risk weight or subject to 

deduction. On a case-by-case basis, OTS may allow you to assign the portfolio proportionately to the 

various risk-weight categories based on the proportion of the risk-weight categories represented in the 

mutual fund. See 12 CFR § 567.6(a)(1)(vi)(C). 

Lower-tier subsidiary: Subsidiaries where you do not directly hold an ownership interest. Rather, your 

service corporation or operating subsidiary directly or indirectly holds the ownership interest. 

TIER 1 (CORE) CAPITAL REQUIREMENT 

CALCULATION OF CORE (TIER 1) CAPITAL 

CCR100: Total Equity Capital (SC84) 

The EFS software generates this line from SC84, Total Equity Capital. 

Explanatory Note: 

Schedule CCR adjusts Equity Capital, CCR100 in calculating Tier 1 (core) capital according to 

the OTS capital rule. For example, the OTS capital rule does not include cumulative perpetual 

preferred stock in Tier 1 (core) capital. Furthermore, the OTS capital rule requires you to deduct 

debt and equity investments in nonincludable subsidiaries and certain other assets from total 

assets and equity capital in computing Tier 1 (core) capital. In addition, OTS’s capital rule 

reverses the adjustment to GAAP equity for unrealized gains and losses on available-for-sale 

(AFS) debt securities included in SC860 in computing Tier 1 (core) capital. However, you report 

marketable equity securities at the lower of cost or market for Tier 1 (core) capital purposes. 

Deduct: 

CCR105: Investments in, Advances to, and Noncontrolling Interests in 

Nonincludable Subsidiaries 

Reduce Tier 1 (core) capital by your investment in, advances to, guaranteed obligations of, and 

noncontrolling interests in certain nonincludable subsidiaries. The general instructions to Schedule CCR 

define subsidiary. 

In consolidation, you eliminate the investment and intercompany loan accounts of subsidiaries, and you 

establish the noncontrolling interests in subsidiaries on Schedule SC. Therefore, you must obtain the 

amount of the investment and advances from your books before consolidation (as well as the 

noncontrolling interests after consolidation). Calculate the investment using the equity method as 

prescribed by GAAP plus any loans, advances, guaranteed obligations, or other extensions of credit, 

whether secured or unsecured. Use negative investments to offset loans, guaranteed obligations, or 

advances to the same subsidiary, but do not reduce this line below zero. If you have a nonincludable 

subsidiary and the result on this line rounds to zero or is a negative amount, report a one to indicate that 

you have reported your nonincludable subsidiary. 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

1604 SCHEDULE CCR 

Note: Report investments in subsidiaries and equity investments where the FDIC fully covers the 

investments on CCR409, zero percent risk weight: FDIC Covered Assets. This rule applies to your 

investment regardless of the business activity of such entity. 

Nonincludable Subsidiaries 

Section 5(f) of HOLA [12 USC 1464(t)(5)(A)] defines nonincludable subsidiaries as subsidiaries of a 

savings association that engage in activities impermissible for a national bank with the following 

exceptions: 

1. Subsidiaries only engaged in impermissible activities as an agent for its customers where the 

subsidiary has no risk of loss. 

2. Subsidiaries engaged solely in mortgage banking activities. 

3. Insured depository institutions acquired as subsidiaries before May 1, 1989. 

4. Subsidiaries of federal savings associations that existed on August 8, 1989, and were chartered 

before October 15, 1982, as a savings bank or cooperative bank under state law. 

5. Subsidiaries of federal savings associations that existed on August 8, 1989, that acquired their 

principal assets from a savings association chartered before October 15, 1982, as a savings bank 

or cooperative bank under state law. 

Generally, a subsidiary of a savings association is nonincludable if any of its unconsolidated assets are 

impermissible for a national bank. If any lower-tier subsidiary engages in impermissible activities or 

invests in an entity that engages in impermissible activities, but the first-tier subsidiary owned by the 

parent savings association does not directly engage in impermissible activities, the first-tier subsidiary is 

an includable subsidiary. Deduct only subsidiary’s investment in the nonincludable lower-tier subsidiary 

in computing the capital of the upper-tier subsidiary on an unconsolidated basis and in computing your 

consolidated capital. Deduct from total capital, equity investments of subsidiaries in lower-tier subordinate 

organizations that are not considered subsidiaries, if those equity investments are not permissible for 

national banks. 

Fully deduct all nonincludable subsidiaries from capital. 

You should report investments in and advances to nonincludable subsidiaries net of all general valuation 

allowances, specific valuation allowances, and charge-offs, as they have already reduced equity capital. 

CCR115: Goodwill and Certain Other Intangible Assets 

For some savings associations, this line may equal SC660. However, you may manually override this 

amount in certain cases. For purposes of regulatory capital only, you may elect to: 

 Reduce the amount Goodwill by any associated deferred tax liability. 

 Reduce Core Deposit Intangible Assets (CDIs) and Certain Other Intangible Assets acquired in a 

nontaxable business combination by any associated deferred tax liabilities. 

 You do not reduce the amount of Purchase Credit Card Relationships (PCCRs) by any 

associated deferred tax liability. 

Report this as a positive amount. The EFS software will deduct this line from equity capital in calculating 

Tier 1 (core) capital. 

Include: 

1. Goodwill. 

2. Core deposit intangible assets (CDIs). 

3. Purchased credit card relationships (PCCRs). 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010

Do not include: 

1. Servicing assets. 

2. Certain nonsecurity financial instruments reported on SC665. 

3. Net deferred tax assets. 

4. Computer software (purchased and internally-developed). 

5. Intangible pension assets. 

CCR133: Disallowed Servicing Assets, Disallowed Deferred Tax Assets, 

Disallowed Residual Interests, and Other Disallowed Assets 

Report this as a positive amount. The EFS software will deduct this line from equity capital in calculating 

Tier 1 (core) capital. 

Disallowed Servicing Assets 

You may include servicing assets reported on SC642 and SC644 in regulatory capital, subject to both of 

the following limitations: 

1. For mortgage and nonmortgage servicing assets, and PCCRs, combined — include in capital the 

lesser of: 

a. 100 percent of Tier 1 (core) capital. 

b. 90 percent of fair value. 

c. 100 percent of reported amount. 

2. For nonmortgage servicing assets and PCCRs, as a separate sub-limit — include in capital the 

lesser of the following: 

a. 25 percent of Tier 1 (core) capital. 

b. 90 percent of fair value. 

c. 100 percent of reported amount. 

Accordingly, on CCR133, include the amount of servicing assets reported on SC642 and SC644 (that are 

not in a nonincludable subsidiary) and PCCRs included on SC660 that exceed the above limitations. 

For purposes of the 25 percent and 100 percent of Tier 1 (core) capital limitations above, base the 

deduction on a Tier 1 (core) capital subtotal before the deduction. In addition, in computing the deduction 

for the 25 percent and 100 percent limitations, you may reduce the amount of servicing assets by any 

corresponding deferred tax liability. 

Disallowed Deferred Tax Assets 

If regulatory capital includes disallowed deferred tax assets, include the amount of the disallowed 

deferred tax assets on this line. To the extent that realizing deferred tax assets depends on your future 

taxable income (exclusive of reversing temporary differences and carryforwards), or your tax planning 

strategies, such deferred tax assets are limited for regulatory capital purposes to the lesser of the 

following: 

1. The amount that you can realize within one year. 

2. 10 percent of Tier 1 (core) capital. 

Accordingly, disallowed deferred tax assets is that amount includable in assets under GAAP, but not

includable in regulatory capital pursuant to OTS policy. The deferred tax asset subject to the limitation is 

the net deferred tax asset or liability included on Schedule SC, adjusted for the deferred tax asset or 

liability added to or subtracted from total assets related to the following: 

1. Accumulated gains and losses on certain AFS securities and cash flow hedges on CCR280. 

2. Goodwill and other intangible assets on CCR265 and CCR285. 

 SCHEDULE CCR 1605 

3. Servicing assets on CCR270. 
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1606 SCHEDULE CCR 

Note: You can generally realize deferred tax assets without limitation from the following sources: 

1. Taxes paid in prior carry-back years. 

2. Future reversals of existing taxable temporary differences. 

For purposes of the 10 percent of Tier 1 (core) capital limitation above, base the deduction on a Tier 1 

(Core) capital subtotal before the deduction. 

Disallowed Residual Interests 

Include on this line that portion of credit-enhancing interest-only strips (as defined) reported on SI402 that 

must be deducted in computing Tier 1 capital, pursuant to 12 CFR Part 567. With certain exceptions 

provided for in the regulation, you must deduct from equity capital the amount of any credit-enhancing 

interest-only strips that exceeds 25% of Tier 1 capital before the deduction. In computing the deduction, 

you may reduce the amount by any corresponding deferred tax liability. 

CCR134: Other 

Report other items required to be deducted from Tier 1 Capital not included in CCR105 through CCR133. 

Include the accumulated net increase in retained earnings (equity capital) resulting from certain net gains 

reported on SO485; specifically, those gains, net of losses, on liabilities carried at fair value, net of 

income taxes, that are attributable to changes in the savings association’s own creditworthiness. 

Add: 

CCR180: ACCUMULATED LOSSES (GAINS) ON CERTAIN 

SECURITIES AND CASH FLOW HEDGES 

Report on this line: 

1. Accumulated Unrealized Gains and Losses on Certain Securities 

Equity capital on SC80 includes a separate component for accumulated, unrealized gains and losses, net 

of income taxes, on certain securities. See SC860, Unrealized Gains (Losses) on Certain Securities. 

However, you cannot include most of that separate component of equity capital in regulatory capital, as 

specified below. 

For regulatory capital purposes on Schedule CCR, but not for reporting purposes on Schedule SC: 

 Report aggregate AFS debt securities at amortized cost, not at fair value. 

 Report aggregate AFS equity securities at the lower of cost or fair value, not at fair value. 

Report on CCR180 the amount on SC860, Unrealized Gains (Losses) on Certain Securities, adjusted for 

losses on certain equity securities, as follows: 

 SC860, Unrealized Gains (Losses) on Certain Securities 

 Plus: As a positive number, any portion of the amount on SC860 that represents unrealized 

losses on equity securities (but not debt securities), net of gains and net of income taxes. 

2. Accumulated Gains and Losses on Cash Flow Hedges 

Equity capital on SC80 includes a separate component for accumulated gains and losses on cash flow 

hedges. See SC865, Gains (Losses) on Cash Flow Hedges. However, you cannot include that separate 

component of equity capital in regulatory capital. 

Report the result on CCR180 as follows: 

 When the amount on this line represents gains, net of losses, report a negative number 

reducing capital. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010

 SCHEDULE CCR 1607 

 When the amount on this line represents losses, net of gains, report a positive number 

increasing capital. 

Report the corresponding adjustment to assets on CCR280. See the instructions for CCR280 for 

additional information. 

CCR185: Intangible Assets 

Report PCCRs included on SC660. 

CCR195: Other 

Report other items permitted to be added to Tier 1 Capital that are not included in CCR180 through 

CCR185. 

Include the accumulated net decrease in retained earnings (equity capital) resulting from certain net 

losses reported on SO485; specifically, those losses, net of gains, on liabilities carried at fair value, net of 

income taxes, that are attributable to changes in the savings association’s own creditworthiness. 

CCR20: Tier 1 (Core) Capital 

The EFS software will compute this line as follows: CCR100 less CCR105, CCR115, CCR133, and 

CCR134, plus CCR180, CCR185, and CCR195. 

CALCULATION OF ADJUSTED TOTAL ASSETS 

CCR205: Total Assets 

Report total assets of the consolidated entity as reported on SC60, Total Assets. The EFS software will 

compute this line from SC60, Total Assets. 

Deduct: 

CCR260: Assets of "Nonincludable" Subsidiaries 

Report the entire amount of the assets of nonincludable subsidiaries included in Schedule SC. For 

consolidated subsidiaries, this amount should equal total assets of the subsidiary less any assets 

eliminated in consolidation. For subsidiaries accounted for under the equity method, this amount should 

equal your investment account plus all advances to the subsidiary. 

Report this as a positive amount. The EFS software will deduct this line from total assets in calculating 

Tier 1 (core) capital. 

CCR265: Goodwill and Certain Other Intangible Assets 

Generally, this line will equal SC660, Goodwill and Other Intangible Assets, with the exception of certain 

intangible assets such as intangible pension assets and computer software. Accordingly, the EFS 

software will automatically generate this line from SC660. However, if you have an intangible asset that 

is not required to be deducted from Tier 1 capital, such as intangible pension assets or capitalized 

computer software costs, you may change the generated amount. 

 Goodwill 

If you elect to reduce the amount of Goodwill by any associated deferred tax liability on CCR 115, 

then you must also reduce the amount of Goodwill on CCR 265 by the same amount. 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

1608 SCHEDULE CCR 

 Certain Other Intangible Assets 

Similarly, if you elect to reduce the amount of Certain Other Intangible Assets arising from 

nontaxable transactions by any associated deferred tax liability on CCR 115, then you must also 

reduce the amount of Certain Other Intangible Assets on CCR 265 by the same amount. 

Report this as a positive amount. The EFS software will deduct this line from total assets in calculating 

Tier 1 (core) capital. 

CCR270: Disallowed Servicing Assets, Disallowed Deferred Tax Assets, 

Disallowed Residual Interests, and Other Disallowed Assets 

For most savings associations this line will equal CCR133. Accordingly, the EFS software will 

automatically generate this line from CCR133. However, this amount may change in certain cases. For 

example, deferred tax liabilities are deductible from servicing assets on CCR133, but are not deductible 

from servicing assets on CCR270. In which case you may override the generated amount. 

Report this as a positive amount. The EFS software will deduct this line from total assets in calculating 

Tier 1 (core) capital. 

CCR275: Other 

Report other items required to be deducted from Adjusted Total Assets not included in CCR260 through 

CCR270. 

Add: 

CCR280: Accumulated Losses (Gains) on Certain Securities and Cash 

Flow Hedges 

Report on this line: 

1. Accumulated Unrealized Gains and Losses on Certain Securities 

Report amounts included in total assets for accumulated unrealized gains and losses on certain 

securities, including any related component of income tax assets. Calculate the amount included on this 

line for unrealized gains and losses on certain securities as follows: 

 The amount included in SC60, Total Assets, that corresponds to the separate component of 

equity capital on SC860. 

 Add to this amount: As a positive number, any amount included in SC60 that represents net 

unrealized losses on equity securities. That is, you include all unrealized gains and losses on 

available-for-sale securities included in assets except for those losses on equity securities. 

2. Derivative Instruments Reported as Assets Related to Qualifying Cash Flow Hedges 

Report amounts included in total assets for the gains and losses on derivative instruments reflected in 

SC865, Gains (Losses) on Cash Flow Hedges, including any related component of income tax assets. 

Do not include derivative instruments reported as liabilities. 

Report the result on CCR280 as follows: 

 When the amount on this line represents a net amount that increased assets reported on 

Schedule SC, report a negative number that will deduct this amount from total assets for 

regulatory capital purposes. 

 When the amount on this line represents a net amount that decreased assets reported on 

Schedule SC, report a positive number that will add this amount back to total assets for 

regulatory capital purposes. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010

Report the corresponding adjustment to equity capital on CCR180. See the instructions for CCR180 for 

additional information. 

CCR285: Intangible Assets 

For most savings associations, this line will equal CCR185; therefore, the EFS software will generate the 

amount from CCR185. 

CCR290: Other 

Report other items permitted to be added to Adjusted Total assets that are not included in CCR280 or 

CCR285. 

CCR25: Adjusted Total Assets 

The EFS software will compute this line as follows: CCR205 less CCR260, CCR265, CCR270, and 

CCR275 plus CCR280, CCR285 and CCR290. 

CCR27: Tier 1 (Core) Capital Requirement 

This represents the Tier 1 capital necessary for adequate capitalization pursuant to 12 CFR § 565. 

The EFS software will compute this line as CCR25, Adjusted Total Assets, multiplied by four percent. If 

we have assigned you a composite CAMELS rating of one, you should override the calculated amount 

and report CCR25 multiplied by three percent. 

If you have an individual minimum capital requirement (IMCR) or are subject to a capital directive or other 

formal enforcement action that requires the maintenance of a capital level in excess of the minimum 

requirement, you should override the calculated amount and report your IMCR or other capital 

requirement. 

This amount should never be less than three percent of CCR25. 

CCR30: TIER 1 (CORE) CAPITAL 

The EFS software will bring forward Tier 1 (core) capital from CCR20. 

TIER 2 (SUPPLEMENTARY) CAPITAL 

Under the OTS risk-based capital regulations, there are two types of capital: Tier 1 (core) capital and Tier 

2 (supplementary) capital. Tier 2 (supplementary) capital includes certain specified instruments with 

characteristics of capital that do not qualify as Tier 1 (core) capital. You may include Tier 2 

(supplementary) capital in your total risk-based capital, up to a maximum of 100 percent of your Tier 1 

(core) capital. 

Tier 2 (supplementary) capital consists of the following: 

1. Permanent instruments not qualifying as Tier 1 (core) capital. Report on CCR310, Qualifying 

Subordinated Debt and Redeemable Preferred Stock; CCR340, Other Equity Instruments; and 

CCR355, Other. 

2. Maturing instruments. After adjustments for the limitations described below, report on CCR310, 

Qualifying Subordinated Debt and Redeemable Preferred Stock; CCR340, Other Equity 

Instruments; and CCR355, Other. 

3. Allowances for Loan and Lease Losses. Report on CCR350, Allowances for Loan and Lease 

Losses. 

 SCHEDULE CCR 1609 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

4. Up to 45 percent of your pretax unrealized gains, net of unrealized losses, on AFS equity 

securities. Report on CCR302. 

5. Noncontrolling interests in includable subsidiaries consolidated under GAAP that are not eligible 

for inclusion in Tier 1 (core) Capital on CCR190, provided the noncontrolling interest meets the 

other requirements for Tier 2 (supplementary) capital and neither you nor any of your subsidiaries 

or other subordinate organizations that you own, directly or indirectly, hold the noncontrolling 

interest. Report such noncontrolling interest on CCR340, Other Equity Instruments. 

Maturing Capital Instruments Issued on or Before November 7, 1989 

Maturing capital instruments approved or grandfathered by the FHLBB before December 5, 1984, 

continue grandfathered status under the prior and current OTS capital regulation. You may include them 

in full in Tier 2 (supplementary) capital until the last year before maturity. 

With our prior approval, you may include maturing capital instruments issued on or before November 7, 

1989, in Tier 2 (supplementary) capital, following the procedures below that are applicable to instruments 

issued after that date. 

Maturing Capital Instruments Issued After November 7, 1989 

You may elect to include maturing capital instruments issued after November 7, 1989, by choosing one of 

the following options. Once you elect either option, you must continue to apply that option for all 

subsequent issuances of maturing capital instruments as long as there is a balance outstanding of such 

issuances. Once such issuances have all been repaid, you may elect the other option for future 

issuances. 

Option 1 Tier 2 (supplementary) capital is equal to the outstanding capital instrument multiplied by 

the applicable percentage from the following amortization schedule: 

Years to Maturity Percentage Counted as Tier 2 

(Supplementary) Capital

Greater than 5 

Greater than 4, but less than or equal to 5 

Greater than 3, but less than or equal to 4 

Greater than 2, but less than or equal to 3 

Greater than 1, but less than or equal to 2 

Less than or equal to 1 

100% 

80% 

60% 

40% 

20% 

0% 

Option 2 Tier 2 (supplementary) capital will include only the aggregate amount of maturing capital 

instruments that mature in any one year during the seven years immediately before an 

instrument’s maturity that does not exceed 20 percent of your capital. Capital is Tier 1 

(core) capital plus, without limitation, items included in Tier 2 (supplementary) capital. 

There is no percentage of assets limitation for general loan and lease valuation allowances. 

There are no limitations on maturing capital instruments based on maturity dates. There is 

no limitation on Tier 2 (supplementary) based on the amount of Tier 1 (core) capital.

CCR302: Unrealized Gains on Available-for-Sale Equity Securities 

You may include in Tier 2 (supplementary) capital up to 45 percent of the amount of any pretax 

unrealized gains. This is net of any unrealized losses, on AFS equity securities included in SC140, Equity 

Securities Carried at Fair Value. If losses exceed gains, do not report an amount on this line. When you 

report unrealized gains, net of unrealized losses, here and include them in supplementary capital, you 

must include the entire (100 percent) unrealized gains, net of unrealized losses, in assets to risk weight. 

In other words, you must risk weight the fair value, not the historical cost of these AFS equity securities. 

1610 SCHEDULE CCR 

Do not include unrealized gains on AFS debt securities or on equity securities in a trading portfolio. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010

 SCHEDULE CCR 1611 

CCR310: Qualifying Subordinated Debt and Redeemable Preferred Stock 

Include: 

1. Perpetual subordinated debentures and mandatory convertible securities. 

2. Maturing subordinated debentures, mandatory convertible securities, and redeemable preferred 

stock calculated according to the above instructions. For thrifts that have elected to be taxed 

under Subchapter S or are organized in mutual form, include the amount of subordinated debt 

securities issued to the Treasury Department under the CPP in this calculation. 

CCR340: Other Equity Instruments 

Report equity instruments you issued that we permit as supplemental capital but not as Tier 1 (core) 

capital and that you deducted on CCR134. 

Include: 

1. Cumulative preferred stock reported on SC812. 

2. Preferred stock reported on SC812 or SC814 where the dividend adjusts based on current 

market conditions or indexes and the issuer’s current credit rating; and 

3. Any other equity instruments reported on CCR134 except preferred stock that is, in effect, 

collateralized by assets of the reporting savings association. 

CCR350: Allowances for Loan and Lease Losses 

Report ALLL established by you and your consolidated includable subsidiaries as defined in the 

instructions for CCR105. You cannot grandfather ALLL for nonincludable subsidiaries for this calculation. 

Note that Tier 2 (supplementary) capital limits the inclusion of ALLL reported on CCR 350 to 1.25 percent 

of risk-weighted assets. Apply the percentage limitation to Subtotal Risk-Weighted Assets on CCR75. 

For regulatory capital purposes, the ALLL potentially reportable on CCR350 consists of: 

1. First − allowances established to cover probable, but not specifically identifiable, credit losses 

associated with on-balance-sheet loans and leases, reported as ALLL on mortgage loans (SC283) 

and on nonmortgage loans (SC357). 

2. Second, if the capital limit mentioned above permits − liabilities for credit losses associated with offbalance-sheet credit exposures (such as commitments, letters of credit, and guarantees) included in 

Other Liabilities and Deferred Income (SC796), with the following exception: Any portion of this 

liability related to transfers of loans or other assets reported as sales with recourse is separate and 

distinct from the ALLL, and therefore is not includable in CCR350. 

Include purchased ALLL where the balance and nature of the purchased ALLL is consistent with OTS 

policy in the Examination Handbook, Sections 260 and 261. 

Do not include: 

1. ALLL of unconsolidated subordinate organizations. 

2. ALLL of nonincludable subsidiaries. 

3. Recourse liability accounts that arise from recourse obligations for any transfers of loans or other 

assets that are reported as sales. Such accounts are separate and distinct from the ALLL. 

CCR355: Other 

Report other items permitted in Tier 2 Capital that you do not include in CCR302 through CCR350. 

CCR33: Tier 2 (Supplementary) Capital 

The EFS software computes this line as the sum of CCR302, CCR310, CCR340, CCR350 and CCR355. 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

1612 SCHEDULE CCR 

CCR35: ALLOWABLE TIER 2 (SUPPLEMENTARY) CAPITAL 

The EFS software computes this line as follows. 

If Tier 1 (core) capital is a positive amount, the software reports the lesser of the following: 

1. Tier 2 (supplementary) Capital reported on CCR33. 

2. Tier 1 (core) Capital reported on CCR30. 

3. If you have negative Tier 1 (core) capital, the software reports zero on CCR35. 

The amount of Tier 2 (supplementary) capital included in total capital cannot exceed the amount of Tier 1 

capital. 

CCR370: Equity Investments and Other Assets Required to be 

Deducted 

Report the assets that 12 CFR § 567.5(c) requires to be deducted from total capital unless deducted 

elsewhere. 

Include: 

1. Investments in other depository institutions (reciprocal holdings) that other depository institutions 

may count in their regulatory capital such as capital stock, qualifying subordinated debt, etc. 

2. The entire amount of all the following items: 

a. Your nonincludable debt and equity investments including debt and equity investments in 

subordinate organizations not constituting subsidiaries under 12 CFR § 567.1 (investments in 

entities not consolidated under GAAP) that engage as principal in activities impermissible for 

national banks and not otherwise includable under § 5(t) of HOLA. 

b. Investments in real property except real property primarily used or intended to be used by 

you, your subsidiaries, subordinate organizations, or affiliates as offices. 

c. Real property acquired in satisfaction of a debt, where you intend to hold the property for real 

estate investment purposes or do not expect to dispose of it within five years. 

The term equity securities means any: 

1. Stock. 

2. Certificate of interest of participation in any profit sharing agreement. 

3. Collateral trust certificate or subscription. 

4. Preorganization certificate or subscription. 

5. Investment Contract. 

6. Voting trust certificate. 

7. Securities immediately convertible into equity securities at the option of the holder without 

payment of substantial additional consideration such as convertible subordinated debt. 

8. Securities carrying any warrant or right to subscribe to or purchase an equity security. 

9. Investments, loans, advances, and guarantees issued on behalf of unconsolidated subordinate 

organizations. 

10. Investments in real property not classified as fixed assets or repossessed property. 

Do not include: 

1. Interests in real property that are primarily used by you, your subsidiaries, subordinate 

organizations, or affiliates as offices or related facilities to conduct business. Report on CCR506, 

100 percent Risk weight: All Other Assets. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010

 SCHEDULE CCR 1613 

2. Interests in real property that you acquire in satisfaction of a debt previously contracted in good 

faith or acquired in sales under judgments or decrees (REO). Report on CCR506, 100 percent 

Risk weight: All Other Assets. 

3. FHLBank Stock. 

4. Equity investments permissible for both savings associations and national banks. Risk weight 

them at 100 percent on CCR506. These include: 

a. Freddie Mac Stock. 

b. Fannie Mae Stock. 

c. Equity investments in subordinate organizations not constituting subsidiaries under 12 CFR § 

567.1 – investments in subordinate organizations not consolidated under GAAP, that engage 

solely in activities as agent for customers or engage as principal in activities permissible for 

national banks or otherwise includable under § 5(t) of the HOLA. 

d. Real estate loans that are equity investments under GAAP and are permissible investments 

for national banks. 

e. Mutual funds and pass-through investments, defined in 12 CFR § 560.32 that invest in any of 

the above categories of permissible equity investments. 

5. Investments in subsidiaries and/or equity investments that FSLIC or any successor agency fully 

covers. Report the entire amount of such investment on CCR409, 0% Risk weight: Notes and 

Obligations of FDIC, Including Covered Assets. There is no requirement for you to deduct such 

investments from capital. 

Computation of CCR370 When General Valuation Allowances have been established: 

Calculate the amount of equity investments reported on CCR370 net of charge-offs and general valuation 

allowances. For example, if you established a $10 specific valuation allowance against a $100 equity 

investment, you only deduct $90 from total capital and enter $90 on CCR370. 

In computing CCR370, you should reduce the amount you calculated using the above instructions by the 

amount of general valuation allowances established against equity investments and required deductions 

in real property investments. To receive this credit, you must establish the general valuation allowance at 

the savings association level as a contra-asset to the equity investments and investments in real property. 

You must have and maintain adequate records to enable examiners to verify your claim that you 

established the general valuation allowances against these specific assets. 

For example, if you have a $100 equity investment, net of charge-offs and specific valuation allowances, 

against which you established no general valuation allowance after July 1, 1994, you should enter the full 

asset amount, $100, on CCR370. If you established a $10 general valuation allowance against that same 

asset, you should deduct the $10 general valuation allowance from the $100 investment, resulting in 

deduction of $90. 

Do not include general valuation allowances established on other assets in the credit computation 

outlined above. 

CCR375: Deduction for Low-Level Recourse and Residual Interests 

If you elect the “direct deduction” approach for low-level recourse and residual interests, report on this line 

the amount of 1) low-level recourse and 2) residual interests reported on SI402 and SI404. However, you 

should reduce the amount of residual interests reported here by any amount reported on CCR133. In 

addition, you may reduce the amount of low-level recourse and residual interests reported here by the 

amount of any corresponding deferred tax liability. 

Include: 

1. The amount of recourse liability you retain when it is less than the capital requirement for creditrisk exposure and therefore not converted to an on-balance-sheet equivalent. For example, in the 

sale of most assets with one percent recourse, the amount of liability retained usually is less than 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

the capital requirements, and therefore you would report one percent of the assets sold on 

CCR375 or CCR605. See the instructions for the 100 percent credit conversion factor in the 

Conversion of Off-balance-sheet Items to On-balance-sheet Equivalents section above. 

2. The amount of on-balance-sheet financial instruments representing subordinated credit risk 

interests, including interests in spread accounts and asset pools. However, your low-level 

recourse requirement may exceed the amount of this instrument if you are subject to credit losses 

exceeding the amount of the instrument. 

CCR39: TOTAL RISK-BASED CAPITAL 

The EFS software will compute this line as the total of CCR30 plus CCR35 minus CCR370, and CCR375. 

RISK-WEIGHT CATEGORIES 

General Instructions 

To calculate the total risk-based capital standard you must classify your assets in one of four risk-weight 

categories described below. Do not risk weight the assets that you have deducted from Tier 1 (core) 

capital – for example, nonincludable subsidiaries, nonqualifying intangibles, and disallowed assets. 

Consolidate the assets of includable, GAAP-consolidated subsidiaries in determining the appropriate riskweight categories. However, exclude the assets of nonincludable subsidiaries and nonincludable 

equity investments when computing risk-weighted assets. 

As discussed under the general instructions to CCR, where OTS exercises its Reservation of Authority 

under 12 CFR Section 567.11, and requires a savings association to apply another risk weight, credit 

equivalent amount, or credit conversion factor that OTS deems appropriate for the risk of a particular 

asset or off-balance sheet item, or where such requirement is imposed via a formal enforcement action 

(e.g., cease and desist order), the savings association should report these assets, regardless of asset 

type, on CCR 506 according to the newly assigned risk weight. See instructions for CCR 506. For 

savings associations subject to an Individual Minimum Capital Requirement (IMCR) imposed pursuant to 

12 CFR Section 567.3 or a capital requirement imposed by formal enforcement action (e.g. capital 

directive or cease and desist order) that change the Tier 1 (Core) or Total Risk-Based capital requirement 

on CCR 27 and CCR 80, respectively, you must over-ride the calculated amount, and self-report the 

supervisory capital requirement on those lines. See also OTS Handbook Section 80 on Administration for 

additional information on types of enforcement actions. 

Tier 2 (supplementary) capital includes ALLL but does not include other general valuation allowances. 

Consequently, to calculate the amount to be risk weighted, you may deduct allocated general valuation 

allowances from assets other than loans and leases but you may not deduct ALLL from loans and 

leases. In other words, you should risk weight loans at their recorded investment less only their specific 

valuation allowances, and risk weight all other assets at their recorded investment less their specific 

valuation allowances and allocated general valuation allowances. 

1614 SCHEDULE CCR 

You should risk weight assets after you make regulatory capital adjustments to those assets. For 

example, if we required you to deduct gains or add back losses on AFS securities in Tier 1 (core) capital, 

you should risk weight those securities at historical cost, not at fair value. The same is true for 

adjustments for disallowed servicing assets, disallowed net deferred tax assets, and other adjustments to 

Tier 1(core) capital. If you exclude assets, portions of assets, or adjustments to assets from Tier 1 (core) 

capital, you should exclude them from risk-weighted assets. Additionally, where you have included up to 

45 percent of the pretax unrealized gains, net of unrealized losses, on AFS equity securities in Tier 2 

capital (CCR302), you should include 100 percent of those unrealized gains in risk-weighted assets. In 

other words, you should risk weight the fair value, not the historical cost, of these AFS equity securities. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010

In determining the appropriate risk-weight category for secured loans, you must look at the type of 

collateral. In determining the appropriate risk-weight category for investments in mutual funds, you must 

look to the characteristics of the assets in the fund. Where the portfolio of a mutual fund consists of 

various assets that require different treatment under the capital requirement, you have two alternatives: 

1. You may deal with the entire ownership interest in the mutual fund based on the asset with the 

highest capital requirement in the portfolio, or exclude the mutual fund from assets and thus 

deduct it from calculations of total capital, as appropriate. 

2. You may assign different risk-weight categories to the mutual fund on a pro-rata basis, according 

to the investment limits for different categories in the fund’s prospectus. 

Regardless of the risk-weighting method used, the total risk weight of a mutual fund must be no less than 

20 percent. 

Accrued interest receivable that is not delinquent is part of the recorded investment in that loan or 

investment and should be risk-weighted with the underlying asset. Generally, delinquent accrued interest 

receivable is risk weighted at 100%

Multiply the sum of each risk-weight category by the appropriate risk-weight percentage for that category. 

For instance, you would multiply the sum of the zero percent risk-weight category by zero percent. After 

adding each risk-weight category and multiplying by its appropriate risk weight, add the product of each 

risk-weight category. This results in the on-balance-sheet portion of the total risk-based capital standard. 

Include off-balance-sheet items in the total risk-based capital standard after converting them into onbalance-sheet equivalents. Convert off-balance-sheet items by taking the dollar amount of the offbalance-sheet item or the grossed up amount of off-balance-sheet recourse obligations under 12 CFR § 

567.1, as appropriate. Multiply that amount by the appropriate credit conversion factor from the table that 

follows the discussion of risk-weight categories. Additionally, you should risk weight interest-rate and 

exchange-rate contracts by calculating a credit equivalent amount. See explanation following the 

discussion of off-balance-sheet items. 

Report in the appropriate category all on-balance-sheet assets together with all on-balance-sheet 

equivalents (off-balance-sheet items after converting them according to the discussion above). From the 

sum of on-balance-sheet and off-balance-sheet risk-weighted assets, deduct ALLL that exceeds the 

amount you may include as capital on CCR350. 

Note: Report all loans and investments that are more than 90 days past due on CCR506, 100 percent 

Risk weight. Report all of these loans on CCR506 regardless of the type of investment or collateral, 

except for certain covered assets. See the instructions for CCR 409 and CCR 450 to report covered 

assets. 

0% Risk weight 

CCR400: Cash 

Report all cash-on-hand, including the amount of domestic and foreign currency owned and held or in 

transit in all your offices. Convert any foreign currency into U.S. dollar equivalents as of the date of the 

report. 

Do not include: 

1. Cash deposited in another financial institution, whether interest-bearing or non-interest-bearing. 

Report on CCR445. 

2. Cash equivalents such as travelers’ checks. Report on CCR445. 

 SCHEDULE CCR 1615 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

CCR405: Securities Backed by Full Faith and Credit of U.S. Government 

Report securities, not loans, on this line. Report the amount of securities issued by and other direct 

claims on the following: 

1. The U.S. Government or its agencies to the extent such securities or claims are unconditionally

backed by the full faith and credit of the U.S. Government. 

2. The central government of an Organization of Economic Cooperation and Development (OECD) 

country. 

Include: 

1. Most Ginnie Mae securities. (Note that an interest only strip or Ginnie Mae security that exhibits 

similar interest rate risk would not be eligible for 0% risk weight. Report as 100% risk weight on 

CCR 505.) 

2. U.S. Treasury securities. 

3. SBA pools or certificates, or portions thereof, that have an unconditional guarantee by the full 

faith and credit of the U.S. Government. 

Do not include: 

1. Notes and obligations of the FDIC. Report on CCR409. 

2. Assets collateralized by U.S. Government securities. Report on CCR450, 20% Risk weight: 

Other. 

3. Mortgage-backed securities (MBS) where you have recourse for the underlying loans. The 

capital requirement on such obligations should follow the standard treatment of recourse 

obligations. 

4. Delinquent mortgage loans previously securitized with Ginnie Mae, where either (a) you have an 

unconditional repurchase option, or (b) you have repurchased the loans under such an option. 

Report on CCR450, 20% Risk weight: Other. 

CCR409: Notes and Obligations of FDIC, Including Covered Assets 

Report notes and obligations of the FDIC that have the unconditional backing by the full faith and credit of 

the U.S. Government. Include the following items: 

1. FDIC insured deposits. For example, time certificates and/or savings deposits at an FDIC -

insured institution that the savings association has booked an asset can be risk weighted at 0% 

up to the limits of FDIC insurance. 

2. Direct claims on and claims unconditionally guaranteed by the FDIC. 

3. Debt guaranteed under the FDIC’s Temporary Liquidity Guarantee Program. 

4. Other similarly guaranteed debt. 

5. Report the portion of covered assets fully covered against capital loss and/or yield maintenance 

agreements initially by the Federal Savings and Loan Insurance Corporation (FSLIC), regardless 

of any successor agency, such as the FDIC. Place assets without initial FSLIC coverage (for 

example, those included in a deductible) in a risk-weight category according to the characteristics 

of the asset. If you cannot assign a deductible under a coverage agreement to a specific type of 

asset, then you should place the deductible in the 100 percent risk-weight category. 

Include the portion of assets fully covered against capital loss and/or yield maintenance agreements by 

the FDIC. Place that portion of assets without FDIC coverage (for example, those included in a 

deductible) in a risk-weight category according to the characteristics of the asset. If you cannot assign a 

deductible under a coverage agreement to a specific type of asset, then you should place the deductible 

in the 100 percent risk-weight category. 

1616 SCHEDULE CCR 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010

Include investments in subsidiaries and equity investments with full FDIC coverage, regardless of the 

percentage of ownership or business activity of the entity in which you have invested. 

CCR415: Other 

Report all zero percent risk-weight assets not included above as defined in 12 CFR § 567.6(a)(1)(i). 

Include: 

1. Deposit reserves at, claims on, and balances due from Federal Reserve Banks, excluding interest 

rate contracts. Report interest rate contracts on CCR450, 20% Risk weight: Other. 

2. The book value of paid-in Federal Reserve Bank stock. 

3. That portion of assets not included elsewhere in the zero percent risk-weight category directly 

and unconditionally guaranteed by the U.S. Government or its agencies, or the central 

government of an OECD country. 

4. Prepaid assessments of FDIC deposit insurance premiums. 

CCR420: Total 

The EFS software will compute this line as the sum of CCR400 through CCR415. 

CCR40: 0% Risk-Weight Total 

The EFS software will automatically compute this line as zero percent times CCR455, the risk-weighted 

product of all zero percent risk-weighted assets. 

20% Risk weight 

CCR430: Mortgage and Asset-Backed Securities Eligible for 20% Risk 

Weight 

Report mortgage-related securities and other asset-backed securities that meet the criteria for 20% risk 

weight. Note that if you have a subordinate class of an otherwise 20% risk weight, high-quality MBS, 

you must gross up and risk weight your security plus the balance of all classes senior to it. However, if 

you are able to utilize the ratings based approach (12 CFR 567.6), it is not necessary to gross up the 

more senior positions. See also CC455, CC465, and CC468. 

Include: 

1. Most Fannie Mae and Freddie Mac mortgage-related securities. (Note: Report Fannie and 

Freddie principal-only stripped securities (POs) and interest-only stripped securities (IOs) that are 

not credit enhancing on CCR 506.) 

2. Asset-backed securities with an AAA or AA rating that meet the criteria of the ratings based 

approach - 12 CFR § 567.6. 

Do not include: 

1. Stripped MBS. Report IO and PO strips that are not credit enhancing of otherwise high quality 

MBS on CCR506, 100% risk weight. 

2. Ginnie Mae mortgage pool securities. Refer to instructions for CCR405. 

3. MBSs where you have recourse for the underlying loans. The capital requirement on such 

obligations should follow the treatment of recourse obligations. 

 SCHEDULE CCR 1617 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

1618 SCHEDULE CCR 

CCR435: Claims on FHLBs 

Report all investments in, claims on, and balances due from Federal Home Loan Banks. 

Include: 

1. Book value of Federal Home Loan Bank stock. 

2. Demand, savings, and time deposits with a FHLBank. 

3. Securities, bonds, and notes issued by the Federal Home Loan Bank System 

4. The credit equivalent amount of interest rate contracts, interest-rate swaps and caps, where the 

counterparty is a Federal Home Loan Bank. 

CCR440: General Obligations of State and Local Governments 

Report the amount of securities and other general obligations issued by state and local governments. 

CCR445: Claims on Domestic Depository Institutions 

Include the following obligations of domestic depository institutions: 

1. Demand deposits and other transaction accounts. 

2. Savings deposits. 

3. Time certificates. 

4. Travelers’ checks and other cash equivalents. 

5. Cash items in the process of collection. 

6. Federal funds sold. 

7. Loans and overdrafts. 

8. Debt securities. 

9. The credit equivalent amount of interest and exchange rate contracts (interest-rate swaps and 

caps) where the counterparty is a domestic depository institution. 

Do not include: 

1. Investments in other depository institutions where those institutions may count the investments in 

their regulatory capital, such as capital stock, qualifying subordinated debt, etc. Report on 

CCR370, Assets Required to be Deducted. 

2. Interest rate contracts with a FHLBank or a Federal Reserve Bank. Report on CCR435 and 

CCR450, respectively. 

CCR450: Other 

Report all twenty percent risk-weight assets, not included above, as defined in 12 CFR § 567.6(a)(1)(ii). 

Include: 

1. Assets conditionally guaranteed by the U.S. Government, such as VA and FHA insured mortgage 

loans, the guaranteed portion of SBA, FhmA, and AID loans, and FICO and REFCO bonds, etc. 

2. Delinquent mortgage loans previously securitized with Ginnie Mae, where either (a) you have an 

unconditional repurchase option, or (b) you have repurchased the loans under such an option. 

3. Loans and other assets fully collateralized by deposits. 

4. The credit equivalent amount of interest rate contracts (interest-rate swaps and caps) where the 

counterparty is a Federal Reserve Bank. 

5. Assets collateralized by U.S. Government securities other than mortgage related securities on 

CCR430. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010

6. Securities issued by, or other direct claims on, U. S. Government-sponsored agencies, including 

notes issued by Fannie Mae and Freddie Mac. Do not include equity securities or MBSs. 

7. Loss sharing agreements entered into by the FDIC with the acquirers of assets from failed 

institutions are considered conditional guarantees for risk-based capital purposes due to 

contractual conditions that must be met. The guaranteed portion of assets subject to a losssharing agreement may be assigned a 20 percent risk weight. Consult with your regional 

supervisory regarding the appropriate risk-based capital treatment for specific loss-sharing 

arrangements. 

CCR455: Total 

The EFS software will compute this line as the sum of CCR430 through CCR450. 

CCR45: 20% Risk-Weight Total 

The EFS software will compute this line as twenty percent times CCR455, the risk-weighted product of all 

20 percent risk-weighted assets. 

50% Risk weight 

CCR460: Qualifying Single-family Residential Mortgage Loans 

Report the carrying value, outstanding balance less all specific valuation allowances, of all qualifying 

single-family residential mortgage loans secured by a first lien when you have no other extensions of 

credit secured by a second lien on the same property to the same consumer, if such loans meet all of the 

following criteria: 

1. You have prudently underwritten the loan. 

2. The loan is performing and not more than 90 days past due. 

3. The current LTV ratio is 90% or less, calculated using the value at origination, including loans 

individually insured by private mortgage insurance or other appropriate credit enhancement that 

brings the effective LTV down to 90% or less. 

Notes: 

1. See 12 CFR 567.1 for the definition of Qualifying Mortgage Loan. 

2. A loan with an LTV higher than 90%, without PMI or other readily marketable collateral 

enhancement, would not typically qualify for the 50% risk weight. The Real Estate Lending 

Guidelines urge savings associations as well as other types of banking organizations, to require 

PMI or other appropriate credit enhancement if a mortgage exceeds 90% LTV. See 12 CFR 

560.101, and the footnote in the section on supervisory loan-to-value limits. These guidelines 

constitute a supervisory presumption of safety and soundness. To overcome that presumption 

for a loan that exceeds 90% LTV, a bank or thrift must demonstrate to the examiners' satisfaction 

that the loan is both prudently underwritten, and that it qualifies for the 50% risk weight in spite of 

the absence of private mortgage insurance or other appropriate credit enhancement. 

Also, report the combined carrying value of all mortgage and consumer loans secured by liens on the 

same one- to four-family residential property, with no intervening liens. For example, you hold extensions 

of credit secured by first lien and second lien positions. Include in 50 percent risk weighting, if the loan 

meets all the following criteria: 

1. You have prudently underwritten each loan. 

2. Each loan is performing and not more than 90 days past due. 

 SCHEDULE CCR 1619 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

1620 SCHEDULE CCR 

3. One of the following is true: 

a. The combined loan-to-value ratio (CLTV) does not exceed 90 percent at origination. 

b. The combined extension of credit is insured to at least a 90 percent LTV ratio by private 

mortgage insurance, or there is other appropriate credit enhancement to bring the effective 

LTV down to 90 percent or less. 

c. The current LTV ratio is 90% or less, calculated using the value at origination, including 

loans individually insured by private mortgage insurance or other appropriate credit 

enhancement that brings the effective LTV down to 90% or less. 

When you hold the first lien and junior liens on a 1-to-4-family residential property and no other party 

holds an intervening lien, view the loans as a single extension of credit secured by a first lien on the 

underlying property. Use this treatment to determine the LTV ratio, as well as for risk weighting. Assign 

the combined loan amount to either the 50 percent or 100 percent risk category, depending on whether 

the credit satisfies the criteria for 50 percent risk weighting. In determining the LTV ratio, you need not 

include loans classified in Schedule SC as commercial loans made to businesses and secured by 

residential property when you calculate the CLTV ratio for that property. If such loans are not included in 

the CLTV ratio for that property, you should risk weight such commercial loans at 100 percent. 

If there is an intervening lien, do not combine the loans because another entity holds the second lien (the 

intervening lien). For example, you hold a first mortgage and third lien as a home equity line. In this 

case, you risk weight the carrying value of the loan secured by the first lien at 50 percent if the LTV is less 

than 90 percent and it otherwise meets the 50 percent risk-weight criteria. You risk weight the carrying 

value of the loan secured by the third lien at 100 percent, regardless of the CLTV. 

In addition, include the following types of loans in the definition of single-family mortgage loans. These 

loans must meet the criteria above to be risk weighted at 50 percent: 

1. Loans on interests in cooperative buildings. 

2. Loans to individuals to fund the construction of their own home that meet the definition of a 

qualifying mortgage loan in 12 CFR § 567.1. You may include any accrued interest receivable in 

the loan balance. 

3. Mortgage loans on mixed-use properties that are primarily single-family residential properties. 

Do not include: 

1. The combined carrying value of mortgage and consumer loans secured by first or second liens on 

the same property when the CLTV ratio exceeds 90 percent. Report the combined carrying value 

of these loans on CCR506, 100% Risk weight: All Other Assets. 

2. The combined carrying value of mortgage and consumer loans secured by first and second liens 

on the same property if any of the extensions of credit are nonperforming (nonaccrual) or more 

than 90 days past due. Report on CCR506, 100% Risk weight: All Other Assets. 

3. A loan to a consumer collateralized by a junior lien when another lender holds an intervening lien. 

For example, you hold the second lien and another lender holds the first lien, or you hold the first 

lien and the third lien, but do not hold the second lien (intervening lien). Report the junior lien on 

CCR506, 100% Risk weight: All Other Assets. 

4. Foreclosed real estate. Report on CCR506, 100% Risk weight: All Other Assets. 

5. Loans to individuals to construct their own home that are not qualifying mortgage loans as 

defined in 12 CFR § 567.1. Report on CCR506, 100% Risk weight: All Other Assets. 

6. The portion of loans guaranteed by FHA that may be risk weighted at 20 percent. Report on 

CCR450. 

7. Loans to commercial entities collateralized by mortgages of third-party borrowers (warehouse 

loans), or small business loans collateralized by a lien on a residential property. Report on 

CCR506, 100% Risk weight: All Other Assets. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010

 SCHEDULE CCR 1621 

CCR465: Qualifying Multifamily Residential Mortgage Loans 

Qualifying Multifamily Mortgage Loans (12 CFR § 567.1) Under Current Rule 

Report the carrying value plus accrued interest receivable, of permanent, first mortgages secured by first 

liens on multifamily residential properties consisting of five or more dwelling units that meet all the 

following criteria: 

1. Amortization of principal and interest occurs over a period of not more than 30 years. 

2. Original minimum maturity for repayment of principal on the loan is not less than seven years. 

3. At the time you placed the loan in the 50 percent risk-weight category, the owner had made all 

principal and interest payments on the loan for the preceding year on a timely basis according to 

the loan terms (not 30 days or more past due). 

4. The loan is performing and not 90 days or more past due. 

5. You made the loan according to prudent underwriting standards. 

6. The current outstanding loan balance does not exceed 80 percent (75 percent for variable rate 

loans) of the value of the property securing the loan. “Value of the property” (when you originate 

a loan to purchase a multifamily property) means the lower of either the purchase price or the 

amount of the initial appraisal, or if appropriate, the initial evaluation. Where a purchaser is not 

purchasing a multifamily property, but taking a new loan on his currently owned property, 

determine the value of the property by the most current appraisal, or if appropriate, the most 

current evaluation. 

7. For the property’s most recent fiscal year, the ratio of annual net operating income generated by 

the property, before payment of any debt service on the loan, to annual debt service on the loan 

is not less than 120 percent, (115 percent for variable-rate loans). In the case of cooperative or 

other not-for-profit housing projects, the property generates sufficient cash flows to provide you 

comparable protection. The debt service coverage ratio should be based on a fully indexed 

payment that will amortize the loan over its contractual term. It has long been industry practice to 

offer multifamily property loans with relatively short terms compared to the amortizing payment 

schedule. For example, the loan may have a 10-year term and a payment based on a 30-year 

amortization schedule with a balloon payment at the end of the term. In such cases, the DSCR 

should be based on the fully amortizing, fully indexed payment over the scheduled amortization 

period, but no longer than 30 years. 

In cases where a borrower refinances a loan on an existing property, the borrower must comply with the 

above criteria. 

12 CFR § 567.1 defines residential property as houses, condominiums, cooperative units, and 

manufactured homes. This definition does not include hospitals and nursing homes. Manufactured 

homes are those subject to HUD regulations under Title VI of the U.S. Code. 

Include mortgage loans on mixed-use properties that are primarily multifamily residential properties if they 

satisfy the criteria for qualifying multifamily mortgage loans. 

Grandfathered Qualifying Multifamily Mortgage Loans 

Qualifying multifamily mortgage loans include multifamily mortgage loans that on March 18, 1994, met the 

criteria of qualifying multifamily mortgage loans under our capital rule on March 17, 1994, and continue to 

meet those criteria, namely: 

1. An existing property consisting of 5 to 36 dwelling units secures the mortgage. 

2. The initial LTV ratio is not more than 80 percent. 

3. For the past full year, the property’s average annual occupancy rate is 80 percent or more of total 

units. 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

1622 SCHEDULE CCR 

CCR470: Mortgage and Asset-Backed Securities Eligible for 50% Risk 

Weight 

Mortgage-Backed Securities: 

Report MBS, other than high quality MBS reported on CCR430, secured by qualifying single-family

residential mortgage loans eligible to be reported on CCR460 or qualifying multifamily residential 

mortgage loans eligible to be reported on CCR465. Include POs secured by qualifying single-family or 

multifamily residential mortgage loans unless you can report them on CCR430. 

If qualifying multifamily residential mortgage loans back the securities, you must receive timely 

payments of principal and interest according to the terms of the security. Generally, consider payments 

timely if they are not 30 days or more past due. 

Note that if you have a subordinate class of an otherwise 50% risk-weight, high-quality MBS, you must 

gross up and risk weight your security plus the balance of all classes senior to it. However, if you are 

able to utilize the ratings based approach (12 CFR 567.6), it is not necessary to gross up the more senior 

positions. See also CC455, CC465, and CC468. 

Asset-Backed Securities: 

Also include asset-backed securities eligible for 50% risk weight under the ratings-based approach (“A” 

rated that meet all the criteria of the ratings based approach). 

Do not include: 

Interest Only Strips. Report credit-enhancing interest-only strips as residuals. Refer to the definitions 

in 12 CFR 567.1 and to the capital treatment in 12 CFR 567.6(b). See instructions for lines CCR133, 

CCR270, CCR375, CCR605, and SI402. Report IO and PO strips that are not credit enhancing of 

otherwise high quality MBS on CCR506, 100% risk weight. 

CCR475: State and Local Revenue Bonds 

Report securities issued by state and local governments where the revenues from a stated project such 

as a toll road repay the security. 

CCR480: Other 

Report all fifty-percent risk-weight assets not included above as defined in 12 CFR § 567.6(a)(1)(iii). 

Include: 

1. The credit equivalent amount of interest and exchange rate contracts (interest-rate swaps and 

caps) where the counterparty is an entity other than a domestic depository institution, a FHLBank, 

or a Federal Reserve Bank. 

2. Revenue bonds issued by any public-sector entity in an OECD country that are payable solely 

from the revenues generated from the project financed through the issuance of the obligations. 

3. Qualifying residential construction loans, also called residential bridge loans, meeting the criteria 

of 12 CFR § 567.1. Such loans must satisfy the following criteria: 

a. You must make the loan according to sound lending principles to a builder with at least 15 

percent equity in the project (or higher, depending upon the risk of the project) who will 

construct a one- to four-family residence that, when sold, will be owner-occupied. 

b. You must obtain sufficient documentation from a permanent lender (that may be the 

construction lender) demonstrating all the following: 

i. The homebuyer intends to purchase the residence. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010

ii. The homebuyer has the ability to obtain a permanent qualifying mortgage loan 

sufficient to purchase the residence. 

iii. The homebuyer has made a substantial earnest money deposit. 

c. The construction loan must meet all the following requirements: 

i. Not exceed 80 percent of the sales price of the residence. 

ii. Be secured by a first lien on the lot, residence under construction, and other 

improvements. 

iii. Be performing and not more than 90 days past due. 

d. The home purchaser(s) must intend that the home will be owner-occupied and must not be a 

business entity or any entity that is purchasing the home(s) for speculative purposes. 

e. You must retain sufficient undisbursed loan funds throughout the construction period to 

ensure project completion. The builder must incur a significant percentage of direct costs; for 

example, the actual costs of land, labor, and material, before he draws on the loan. 

CCR485: Total 

The EFS software will compute this line as the sum of CCR460 through CCR480. 

CCR50: 50% Risk-Weight Total 

The EFS software will compute this line as 50 percent times CCR485, the risk-weighted product of all 50 

percent risk-weight assets. 

100% Risk weight 

CCR501: Securities Risk Weighted at 100% (or More) Under RatingsBased Approach 

Include on this line: 

1. Asset-backed securities or exposures eligible for 100% risk weight under the ratings-based 

approach. Example: “BBB” rated. 

2. Also include asset-backed securities or exposures that receive a 200% risk weight under the 

ratings-based approach. Example: “BB” rated. For these 200% risk weight items, you must first 

multiply the balance by 2 (two). 

Note: Only a limited set of asset-backed securities and other exposures arising from securitization 

activities qualify for this risk weighting, and these must meet all of the requirements of the ratings-based 

approach. Refer to 12 CFR 567.6(b)(3). 

CCR506: All Other Assets 

Report all other assets except those included above or in any other risk-weight category. 

Include: 

1. Consumer loans. 

2. Commercial loans. 

3. All assets that are nonperforming or more than 90 days past due, except for certain covered 

assets. See the instructions for CCR 409 and CCR 450 for reporting covered assets. 

 SCHEDULE CCR 1623 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

4. All repossessed assets including repossessed real estate (REO), other repossessed assets, and 

equity investments that have the same characteristics as REO, for example stock from an REO 

workout firm that has been approved for inclusion in the 100% risk-weight category. 

5. First and junior mortgages on one- to four-family dwelling unit properties that do not qualify for 

inclusion on CCR460 (50% Risk weight: Qualifying Single family Residential Mortgage Loans). 

6. Multifamily mortgage loans that do not meet the qualifying criteria for inclusion on CCR465, 50% 

Risk weight: Qualifying Multifamily Residential Mortgage Loans. 

7. Residential construction loans, except those to individuals to build their own homes that you 

report on CCR460, and except qualifying residential construction loans (bridge loans) as defined 

in CCR480. 

8. Nonresidential construction loans as defined in the instructions for SC260, Nonresidential 

Property. 

9. Obligations issued by a state or political subdivision for the benefit of a private party or enterprise 

where that party or enterprise, rather than the issuing state or political subdivision, is responsible 

to pay principal and interest on the obligation (industrial development bonds). 

10. Private-issue debt securities, including commercial paper, except those that you report in the 20 

percent or 50 percent risk-weight categories. 

11. Investments in fixed assets and premises. 

12. Qualifying intangible assets reported on CCR185. 

13. Servicing assets, less the amount included on CCR133. 

14. The gross amount of wrap-around loans where you are liable on the first mortgage or must 

assume the first mortgage to perfect your position. Report the wrap-around loan net of the first 

mortgage if you have no liability on the first mortgage loan or obligation to assume it. 

15. Equity investments that are permissible for both savings associations and national banks and 

including the following: 

a. Fannie Mae Stock. 

b. Freddie Mac Stock. 

c. Equity investments in unconsolidated subordinate organizations (those that do not qualify 

as subsidiaries under 12 CFR § 567.1) that engage solely in activities as agent for 

customers or engage as principal in activities permissible for national banks or otherwise 

are includable under § 5(t) of the HOLA. 

d. Real estate loans that are equity investments under GAAP and are includable under the 

Office of the Comptroller of the Currency’s (OCC’s) capital rule. 

e. Mutual funds and pass-through investments, defined in 12 CFR § 560.32, that invest in 

any of the above categories of permissible equity investments. 

16. Loans to commercial entities collateralized by mortgages of third party borrowers (warehouse 

loans). 

17. Interest-only (IO) and principal only (PO) stripped securities that are not credit enhancing. This 

category includes most IOs and POs issued by Fannie Mae and Freddie Mac. 

18. Any other remaining assets that you do not deduct from capital on CCR133 or CCR375, or that 

you do not “super risk-weight” using CCR605 and CCR62. 

19. Assets reported on this line generally receive a 100 percent risk weight. The risk-weighted 

amount is automatically calculated. However, you will need to override the automatically 

calculated amount where OTS exercises its Reservation of Authority under 12 CFR 567.11, and 

requires a savings association to apply another risk-weight, credit equivalent amount, or credit 

conversion factor that OTS deems appropriate for the risk of a particular asset or off-balance 

sheer item, or where such requirement is imposed via a formal enforcement action (see OTS 

Handbook Section 80 for types of formal enforcement actions). For those assets, report at the 

assigned risk-weight, conversion factor, or credit equivalent amount on this line regardless of the 

asset category. For example, if the assigned risk weight for certain assets is 200 percent, multiply 

1624 SCHEDULE CCR 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010

those assets by the assigned 200 percent risk weight, and manually include this amount with the 

amount of assets risk-weighted at 100 percent for a new total. If the assigned risk-weight is 75 

percent for certain assets, multiply those assets by 75 percent, and include them on this line as 

well. If a conversion factor is assigned at 100 percent, multiply the asset times 100 percent and 

times the appropriate risk-weight (assigned or not assigned), and include the amount on this line. 

CCR510: Total 

The EFS software will compute this line as the sum of CCR501 and CCR506. 

CCR55: 100% Risk-Weight Total 

The EFS software will compute this line as 100 percent times CCR510, the risk-weighted product of all 

100 percent risk-weight assets. 

CONVERSION OF OFF-BALANCE-SHEET ITEMS TO ON-BALANCESHEET EQUIVALENTS 

Include off-balance-sheet items in the total risk-based capital standard after converting them into onbalance-sheet equivalents. Convert off-balance-sheet items to on-balance-sheet equivalents by taking 

the dollar amount of the off-balance-sheet item and multiplying it by the appropriate credit conversion 

factor from the table below. 

SC689, Other Assets, and SC796, Other Liabilities and Deferred Income, include the fair value of 

derivative instruments. We treat on-balance-sheet derivative instruments used for risk management 

purposes, rather than for trading, as off-balance-sheet items for risk-based capital purposes. Accordingly, 

you should risk weight only the converted on-balance-sheet equivalent amounts, not the amounts 

reported on SC689 and SC796. 

Place the on-balance-sheet equivalents (converted off-balance-sheet items) in the appropriate risk-weight 

category just as any other on-balance-sheet assets. For example, place an off-balance-sheet letter of 

credit in the same risk-weight category as the loan would be upon execution of the letter of credit. 

As mentioned, where OTS assigns a conversion factor to certain off-balance sheet assets under its 

Reservation of Authority or under a formal enforcement action, convert those assets into on-balance 

sheet equivalents by multiplying those assets times the assigned conversion factor. If OTS does not 

assign a risk-weight, use the risk-weight normally applied to the assets’ category. However, report the 

amount on CCR 506. Do not report the asset in any other risk-weight category. Similarly, OTS may also 

assign a risk-weight in addition to a credit conversion factor. Report this amount on CCR 506 as well. 

Loans in Process (Undisbursed Loan Balances) 

You may convert all LIP that meets the following criteria at a zero percent conversion factor. In other 

words, you do not risk weight it. 

1. LIP that contractually must be fully disbursed or expire in one year or less under the original 

terms of the contract. 

2. LIP that you may disburse over a period of time exceeding one year and that meets both of the 

following criteria: 

a. You may unconditionally cancel the agreement. 

b. You make a separate credit decision before each draw. 

 SCHEDULE CCR 1625 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

1626 SCHEDULE CCR 

Convert all LIP that does not meet the criteria in #1 or #2 above at a 50 percent conversion factor and 

place in the risk-weight category appropriate for the related loan, except as follows: 

1. When the borrower pays interest on the full amount of the loan, including both the disbursed and 

undisbursed portions, you must convert the LIP to an on-balance-sheet equivalent at a 100 

percent credit conversion factor. 

2. When the LIP is a direct credit substitute, you must convert it to an on-balance-sheet equivalent 

at a 100 percent credit conversion factor. 

Table of Conversion Factors for Off-Balance-Sheet Items 

This calculation translates the face amount of an off-balance-sheet exposure into an on-balance-sheet 

credit equivalent amount. 

Zero Percent Credit Conversion Factor (not risk weighted) 

Include: 

1. Unused commitments with an original maturity of one year or less. 

2. Unused commitments with an original maturity of greater than one year: 

a. That you may unconditionally cancel at any time, and

b. You have the contractual right to make, and you do make, either: 

i. A separate credit decision based upon the borrower’s current financial condition 

before each draw, or, 

ii. An annual, or more frequent credit review, based upon the borrower’s current 

financial condition to determine whether or not to continue the lending arrangement. 

3. Unused portions of retail credit card lines of credit that you may unconditionally cancel to the 

extent allowed by applicable law. 

4. Unused portion of home equity lines of credit: 

a. That you may unconditionally cancel at any time to the extent allowed by federal law, and

b. You have the contractual right to make, and you do make, either: 

i. A separate credit decision based upon the borrower’s current financial condition 

before each draw, or, 

ii. An annual, or more frequent credit review, based upon the borrower’s current 

financial condition to determine whether to continue the lending arrangement. 

5. A commitment to make a permanent loan, where either the balance sheet or off-balance-sheet 

includes the construction loan. If the commitment to make the permanent loan exceeds the 

construction loan, treat the excess as a separate commitment and convert it to an on-balancesheet equivalent. 

Twenty Percent Credit Conversion Factor 

Trade-related contingencies are short term, self-liquidating instruments used to finance the movement of 

goods and collateralized by the underlying shipment. For example, a commercial letter of credit. 

Fifty Percent Credit Conversion Factor 

Include: 

1. Transaction-related contingencies, including performance bonds and performance-based standby 

letters of credit. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010

 SCHEDULE CCR 1627 

2. Unused commitments with an original maturity greater than one year, including home equity lines 

of credit that are not in the zero percent credit conversion factor category because they are not 

unconditionally cancelable. 

3. Revolving underwriting facilities, note issuance facilities, and similar arrangements where the 

customer can issue short-term debt in its own name, but where you have a legally binding 

commitment to either: 

a. Purchase the obligations the customer is unable to sell by a certain date. 

b. Advance funds to its customer if the customer is unable to sell the obligations. 

Example: 

You have a $1 million off-balance-sheet letter of credit guaranteeing the completion of a road in a 

residential construction project. Letters of credit that guarantee performance have a conversion factor of 

50 percent. You convert the $1 million off-balance-sheet item into a $500,000 on-balance-sheet 

equivalent ($1 million times 50 percent), and place this in the 100 percent risk-weight category on 

CCR506, which is the same risk-weight category as on-balance-sheet residential construction loans. 

One Hundred Percent Credit Conversion Factor 

Include: 

1. Financial guarantee-type standby letters of credit. Convert the face amount to a credit-equivalent 

amount. 

2. Assets sold with recourse: 

a. If you sell a $100 loan with ten percent recourse, you must convert the full $100 – the 

grossed up amount – at 100 percent, except where the amount of recourse liability that 

you retain is less than the capital requirement for credit-risk exposure. In that situation, 

the low-level recourse provision limits your capital charge to a dollar-for-dollar 

requirement against the amount of credit-risk exposure retained. For example, in the 

sale of most assets with one percent recourse, the amount of liability retained is less than 

the capital requirement. Therefore, one percent of the assets sold would be the capital 

requirement. Report this low-level recourse amount on CCR375 or CCR605. No offbalance-sheet conversion is necessary. 

b. Loans serviced for others where you or your subsidiaries are liable for credit losses on 

the loans serviced. In general, do not consider servicing of VA loans in GNMA pools as 

recourse servicing; however, we reserve the right on a case-by-case basis to treat such 

servicing as recourse. Note: You should not risk weight the on-balance-sheet asset. 

You should convert the full outstanding balance of the loans serviced at 100 percent. 

c. Treat the subordinated portions of senior/subordinated securities, both retained and 

purchased subordinated pieces, identically to assets sold with partial, first-loss recourse 

under 2(a) above. You generally should not risk weight the on-balance-sheetsubordinated security. You should convert the full amount of both the senior and 

subordinate portions of the mortgage pool security at 100 percent. 

d. You may elect to apply the 100 percent credit conversion factor to only the retained 

recourse amount related to transfers of small business loans and leases of personal 

property, according to § 208 of the Riegle Community Development and Regulatory 

Improvement Act of 1994. Qualifying savings associations may apply the treatment under 

§ 208, as implemented, to transfers on or after March 22, 1995. See § 208 of the Riegle 

Act and 12 CFR § 567.6(a)(2)(i)(C). 

3. Forward agreements and other contingent obligations with a specified draw down are legally 

binding agreements to purchase assets at a specified future date. You should convert the 

principal amount of the assets you will purchase on the date you enter into the agreement. 

4. Securities of customers where you lend such securities to others as agent and you indemnify the 

customer against loss. 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

Example: 

You have a $1 million off-balance-sheet, legally binding commitment to purchase and the institution 

has the intent to take delivery of (e.g., a regular-way trade, which is not accounted for as a derivative) 

FannieMae or FreddieMac MBS. Forward agreements to purchase assets at a specified date have a 

conversion factor of 100 percent. You convert the $1 million off-balance-sheet item into a $1 million 

on-balance-sheet equivalent, and you place it in the 20 percent risk-weight category on CCR450. 

Interest-rate and Exchange-rate Contracts, and Certain Derivative 

Contracts 

Credit Equivalent Amount 

This calculation translates interest-rate and exchange-rate contracts into an on-balance-sheet credit 

equivalent amount. The credit equivalent amount of interest-rate and exchange-rate contracts is the sum 

of: (1) current credit exposure, and (2) potential credit exposure. 

The credit equivalent amount, consisting of the current exposure plus the potential credit exposure, is 

assigned to the appropriate risk-weight category and reported on one of the following lines: 

20% Risk weight 

CCR435 Claims on FHLBs 

CCR445 Claims on Domestic Depository Institutions 

CCR450 Other (where the counter party is a Federal Reserve Bank) 

50% Risk weight 

CCR480 Other – where the counter party is other than a domestic depository 

institution, a FHLBank, or a Federal Reserve Bank 

1. Current Credit Exposure 

Current credit exposure is the replacement cost of the contract, measured in U.S. dollars, regardless of 

the currency specified in the contract. 

Replacement cost is the loss that you would incur if a counterparty defaults. You measure replacement 

cost as the net cost of replacing the contract at the current market value. If default would result in a 

theoretical profit, the replacement value is zero. The replacement cost calculation incorporates changes 

in both interest rates and counterparty credit quality. 

2. Potential Credit Exposure 

Potential credit exposure means the estimated potential increase in credit exposure over the remaining 

life of the contract. You calculate it as follows: 

Interest-rate Contracts 

Multiply the notional principal amount of the contract by either: 

1. Zero percent, if the contract has a remaining maturity of one year or less. 

2. One-half of one percent if the contract has a remaining maturity greater than one year. 

Exchange-rate Contracts 

Multiply the notional principal amount of the contract by either: 

1. One percent if the contract has a remaining maturity of one year or less. 

2. Five percent if the contract has a remaining maturity greater than one year. 

1628 SCHEDULE CCR 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010

Interest Rate Contract Example: 

You have a $10 million notional amount interest rate swap agreement. You report the positive fair value 

of this derivative instrument of $80 thousand as an asset and include it in line SC689, Other Assets. 

However, you do not include this $80 thousand on-balance-sheet amount in assets to risk weight. 

Instead, you include in assets to risk weight the credit equivalent amount of this interest rate exchange 

agreement, which you have calculated to be $130 thousand. You computed the $130 thousand by 

adding the current credit exposure of $80 thousand (equal to the replacement cost of the contract) to the 

potential credit exposure of $50 thousand (equal to the $10 million notional amount times 0.5%, for this 

contract with a remaining maturity of 2 years). You include the $130 thousand in assets to risk weight, in 

the 20 percent risk-weight category on CCR435, because the counterparty is a Federal Home Loan Bank. 

Foreign Exchange Rate Example: 

Your thrift has a foreign currency exchange rate contract where the thrift will deliver €1 million (Euros) and 

receive $1.8 million (US Dollars) in 90 days. The exchange rate was 0.90 (US Dollars/Euros) and it is 

now 0.95. No matter which side of the contract your thrift has taken, it should always be measured in 

dollars for capital purposes. The market loss of $100,000 is reported on SC796. As there is a market 

loss, the current credit portion is $0. The potential credit portion is $18,000 because the term is less than 

one year. You would report $18 on CCR480 as the counterparty is a broker (non-bank). 

Do not include in risk-based assets: 

(1) A foreign exchange rate contract with an original maturity of 14 calendar days or less; and 

(2) Any interest rate or foreign exchange rate contract that is traded on an exchange requiring the daily 

payment of any variations in the market value of the contract. 

See 12 CFR 567.6 for more information. 

Netting of Current Replacement Value under Qualifying Bilateral 

Netting Agreements 

You may net the current replacement values of multiple rate contracts with a single counterparty under a 

qualifying bilateral netting agreement in accordance with the OTS’ bilateral netting rule according to 12 

CFR § 567.6(a)(2)(v)(B). A bilateral netting agreement is a master contract under which two parties 

agree to net the amounts they owe each other under rate contracts covered by the agreement to reduce 

their credit exposure. You may only net contracts for capital purposes under this rule if all of the following 

are true: 

1. The rate contracts are between the same two parties. 

2. You net only interest rate contracts and foreign exchange rate contracts for capital purposes. 

3. The bilateral netting contract covering the rate contracts results in a single netted amount being 

payable or receivable in case of the default, insolvency, bankruptcy, or similar circumstance of 

either party. 

4. If you are party to the bilateral netting agreement, you have legal opinions concluding that the 

courts and other legal authorities of relevant jurisdictions would uphold the contract. 

CCR605: Amount of Low-Level Recourse and Residual Interests 

Before Risk weighting 

If you elect the “super risk weighting” approach for low-level recourse and residual interests, report on this 

line the amount of 1) low-level recourse and 2) residual interests reported on SI402 and SI404. However, 

you should reduce the amount of residual interests reported here by any amount reported on CCR133. 

 SCHEDULE CCR 1629 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

Include: 

1. The amount of recourse liability (low-level recourse amount) that you retain when it is less than 

the capital requirement for credit-risk exposure. Therefore, you do not convert it to an onbalance-sheet equivalent. In the sale of most assets with one percent recourse, the amount of 

liability retained usually is less than the capital requirement. You would report one percent of the 

assets sold on CCR375 or CCR605. See the instructions for the 100 percent credit conversion 

factor in the Conversion of Off-balance-sheet Items to On-balance-sheet Equivalents section. 

2. The amount of on-balance-sheet financial instruments representing subordinated credit risk 

interests, including interests in spread accounts and asset pools. However, your low-level 

recourse requirement may exceed the amount of this instrument if you are subject to credit losses 

exceeding the amount of the instrument. 

Do not Include: 

Credit-enhancing interest-only strips reported on SI402 that exceed 25% of your Tier 1 Capital. 

You must deduct the amount that exceeds 25% of Tier 1 capital on CCR 133. 

CCR62: RISK-WEIGHTED ASSETS FOR LOW-LEVEL RECOURSE 

AND RESIDUAL INTERESTS (CCR605 X 12.5) 

This notional risk-weighted amount is your low-level recourse and residual interests amount on CCR605 

multiplied by 12.5. Note: This computation results in a risk-weighted asset amount that when multiplied 

by 8 percent results in your low-level recourse amount. By converting your low-level recourse and 

residual interests amount into risk-weighted assets, this method increases your total risk-based capital 

requirement instead of reducing your total risk-based capital like the deduction method. 

The EFS software will compute this line as CCR605 multiplied by 12.5, the reciprocal of the 8 percent 

risk-based capital requirement. 

CCR64: ASSETS TO RISK WEIGHT 

The EFS software will automatically compute this line as the sum of CCR420, CCR455, CCR485, 

CCR510, and CCR605. 

Total assets subject to risk weighting are as follows: 

1. Adjusted Total Assets, CCR25. 

2. ALLL, CCR350 plus CCR530. 

3. Assets you are required to deduct, reported on CCR370. 

4. Off-balance-sheet items you are required to convert to assets to risk weight. 

5. Unrealized gains on AFS equity securities reported on CCR302. 

6. Less any on-balance-sheet assets reported on CCR375. 

CCR75: Subtotal Risk-Weighted Assets 

The EFS software will compute this line as the sum of CCR40, CCR45, CCR50, CCR55, and CCR62. 

CCR530: Excess Allowances for Loan and Lease Losses (ALLL) 

Report an amount on CCR530 only when the ALLL reported on CCR350 is less than the ALLL reported 

on SC283 and SC357. This could occur when the total ALLL reported on Schedule SC exceeds the 

regulatory capital limit of 1.25 percent of risk-weighted assets. Report on CCR530 the ALLL reported on 

SC283 and SC357 that is not included on CCR350. Excess ALLL may not include amounts for liabilities 

for credit losses on off-balance-sheet credit exposures. 

1630 SCHEDULE CCR 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010

CCR78: TOTAL RISK-WEIGHTED ASSETS 

The EFS software will compute this line as CCR75 minus CCR530. 

CCR80: Total Risk-Based Capital Requirement 

The EFS software will compute this line as CCR78, Total Risk-Weighted Assets multiplied by eight 

percent. This represents the Total Risk-based Capital necessary to be deemed adequately capitalized 

pursuant to 12 CFR Part 565. 

If you have an individual minimum capital requirement (IMCR) or are subject to a capital directive or other 

formal enforcement action that requires the maintenance of a capital level in excess of the minimum 

requirement, you should override the calculated amount and report your IMCR or other required amount. 

This amount should never be less than eight percent of CCR78. 

CAPITAL AND PROMPT CORRECTIVE ACTION RATIOS 

The EFS software will compute the following ratios. These ratios provide you and the data user with 

instantaneous calculation of important capital ratios. 

CCR810: Tier 1 (Core) Capital Ratio 

The EFS software will compute this ratio as Tier 1 (core) capital divided by adjusted total assets 

(CCR20/CCR25), expressed as a percentage. 

CCR820: Total Risk-Based Capital Ratio 

The EFS software will compute this ratio as total risk-based capital divided by risk-weighted assets 

(CCR39/CCR78), expressed as a percentage. 

CCR830: Tier 1 Risk-Based Capital Ratio 

The EFS software will compute this ratio as Tier 1 (core) capital, less the deduction for low-level recourse 

and residual interests, divided by risk-weighted assets ((CCR20-CCR375)/CCR78), expressed as a 

percentage. 

CCR840: Tangible Equity Capital 

If you do not report purchased credit card relationships (PCCRS) or servicing assets on nonmortgage 

loans or if you do not have non-qualifying PCCRs or non-qualifying servicing assets on nonmortgage 

loans, the EFS software will compute this ratio as Tier 1 (core) capital plus cumulative perpetual preferred 

stock less PCCRS and servicing assets on nonmortgage loans divided by tangible assets less PCCRS 

and servicing assets on nonmortgage loans ([CCR20-CCR185+SC812-SC644]/[CCR25-CCR285-

SC644]), expressed as a percentage. 

If you have non-qualifying PCCRs or non-qualifying servicing assets on nonmortgage loans, as 

determined under CCR133, you should manually override the software calculation for CCR840. You 

should take into consideration adjustments made on CCR 133 so that PCCRs and servicing assets on 

nonmortgage loans in Tier 1 (core) capital are fully deducted for purposes of the tangible equity ratio. 

 SCHEDULE CCR 1631 
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THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

 

SCHEDULE FV — CONSOLIDATED ASSETS AND 

LIABILITIES MEASURED AT FAIR VALUE ON A 

RECURRING BASIS 

Throughout these instructions, you and your refers to the reporting savings association and its consolidated 

subsidiaries; we and our refers to the Office of Thrift Supervision. 

GENERAL INSTRUCTIONS 

BACKGROUND 

Complete this Schedule if your total assets reported on SC60 are greater than $10 billion at any time 

during the fiscal year. Report on this Schedule all assets and liabilities measured at fair value on a 

recurring basis (i.e. either marked-to-market through earnings each reporting period or, for available-forsale securities, reflecting changes in fair value as a component of other comprehensive income), 

including on a quarterly basis for purposes of the Thrift Financial Report. 

FAIR VALUE MEASUREMENTS: LEVEL 1, LEVEL 2, LEVEL 3, AND 

LESS: AMOUNTS NETTED 

For each asset and liability caption in this Schedule, report the fair value amounts which fall in their 

entirety in Levels 1, 2, or 3, respectively, in accordance with GAAP. The level in the fair value hierarchy 

within which a fair value measurement in its entirety falls should be determined based on the lowest level 

input (with Level 3 being the lowest and Level 1 the highest) that is significant to the fair value 

measurement in its entirety. 

For each asset and liability caption in this Schedule where you have a legally enforceable master netting 

agreement, you may have reported on Schedule SC the asset net of a related liability, or the liability net 

of a related asset, consistent with GAAP. However, report on this Schedule the gross amount of the 

asset or liability by the applicable Level (1, 2, or 3), even though you may have reported such amounts 

net on Schedule SC. In addition, for each asset or liability where the amount on Schedule SC has been 

reported net of a related liability or asset, respectively, and where the amount on this Schedule has been 

reported gross (that is, without regard to the related liability or asset), report the related netting 

adjustment. 

 SCHEDULE FV 1701 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

 

LINE-BY-LINE INSTRUCTIONS 

ASSETS 

FV111, 112 and 113: Federal Funds Sold and Securities Purchased 

Under Agreements to Resell 

For federal funds sold and securities purchased under agreements to resell that are included on SC125, 

Federal Funds Sold and Securities Purchased Under Agreements to Resell, and that are measured at fair 

value on a recurring basis, report these assets by the applicable Level (1, 2, or 3). 

FV131, 132 and 133: Trading Securities 

For trading securities that are included on SC11, Cash, Deposits, and Investment Securities, and SC22, 

Mortgage-Backed Securities, report these assets by the applicable Level (1, 2, or 3). All trading securities 

are measured at fair value on a recurring basis, with changes in fair value reported through earnings. 

FV151, 152 and 153: Available-for-Sale Securities 

For available-for-sale securities that are included on SC11, Cash, Deposits, and Investment Securities, 

and SC22, Mortgage-Backed Securities, report these assets by the applicable Level (1, 2, or 3). All 

available-for-sale securities are measured at fair value on a recurring basis. However, the change in fair 

value on available-for-sale securities is reflected in other comprehensive income – not in earnings. 

FV211, 212 and 213: Loans and Leases 

For loans and leases that are included on SC26, Mortgage Loans, and SC31, Nonmortgage Loans, and 

that are measured at fair value on a recurring basis, report these assets by the applicable Level (1, 2, or 

3). 

FV241, 242 and 243: Mortgage Servicing Rights 

For mortgage servicing rights that are included on SC642, Servicing Assets on Mortgage Loans, and that 

are measured at fair value on a recurring basis, report these assets by the applicable Level (1, 2, or 3). 

FV261, 262 and 263: Derivative Assets 

For derivative assets that are included on SC689, Other Assets, report these assets by the applicable 

Level (1, 2, or 3). All derivatives are measured at fair value on a recurring basis with changes in fair value 

reported through earnings. 

FV311, 312 and 313: All Other Financial Assets 

For all other financial assets that are included in SC60, Total Assets, and that are measured at fair value 

on a recurring basis, report these assets by the applicable Level (1, 2, or 3). 

1702 SCHEDULE FV
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

 

FV11: Federal Funds Sold and Securities Purchased Under 

Agreements to Resell 

FV13: Trading Securities 

FV15: Available-for-Sale Securities 

FV21: Loans and Leases 

FV24: Mortgage Servicing Rights 

FV26: Derivative Assets 

FV31: All Other Financial Assets 

For each asset category, the EFS software will compute this line as the sum of the amounts reported in 

the columns for each Level (1, 2, and 3), as follows: 

FV11 = FV111 + FV112 + FV113 

FV13 = FV131 + FV132 + FV133 

FV15 = FV151 + FV152 + FV153 

FV21 = FV211 + FV212 + FV213 

FV24 = FV241 + FV242 + FV243 

FV26 = FV261 + FV262 + FV263 

FV31 = FV311 + FV312 + FV313 

FV114: Federal Funds Sold and Securities Purchased Under 

Agreements to Resell 

FV134: Trading Securities 

FV154: Available-for-Sale Securities 

FV214: Loans and Leases 

FV244: Mortgage Servicing Rights 

FV264: Derivative Assets 

FV314: All Other Financial Assets 

For each asset category where the amount on Schedule SC has been reported net of a related liability, 

and where the amount on this Schedule has been reported gross (that is, without regard to the related 

liability), report the related netting adjustment. In all cases, the netting adjustment will be negative. 

However, report the amount as positive, as the EFS software will subtract the amount from the total 

before netting to arrive at the Total, After Netting. These adjustments will align the amounts reported for 

assets on this Schedule with the amounts reported on Schedule SC. 

 SCHEDULE FV 1703 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

 

FV12: Federal Funds Sold and Securities Purchased Under 

Agreements to Resell 

FV14: Trading Securities 

FV16: Available-for-Sale Securities 

FV22: Loans and Leases 

FV25: Mortgage Servicing Rights 

FV27: Derivative Assets 

FV32: All Other Financial Assets 

For each asset category, the EFS software will compute this line as the total before netting, less the 

amount reported for Less: Amounts Netted, as follows: 

FV12 = FV11 – FV114 

FV14 = FV13 – FV134 

FV16 = FV15 – FV154 

FV22 = FV21 – FV214 

FV25 = FV24 – FV244 

FV27 = FV26 – FV264 

FV32 = FV31 – FV314 

FV41, 42, 43 and 44: Total Assets Measured at Fair Value on a 

Recurring Basis 

For each Level (1, 2, or 3) and for the total before netting, the EFS software will compute this line as the 

sum of the corresponding amounts reported or computed for each asset category, as follows: 

FV41 = FV111 + FV131 + FV151 + FV211 + FV241 + FV261 + FV311 

FV42 = FV112 + FV132 + FV152 + FV212 + FV242 + FV262 + FV312 

FV43 = FV113 + FV133 + FV153 + FV213 + FV243 + FV263 + FV313 

FV44 = FV11 + FV13 + FV15 + FV21 + FV24 + FV26 + FV31 

FV46: Total Assets Measured at Fair Value on a Recurring Basis – 

Less: Amounts Netted 

The EFS software will compute this line as the sum of the corresponding amounts reported for each asset 

category, as follows: 

FV46 = FV114 + FV134 + FV154 + FV214 + FV244 + FV264 + FV314 

FV48: Total Assets Measured at Fair Value on a Recurring Basis – 

Total, After Netting 

The EFS software will compute this line as the sum of the corresponding amounts reported for each asset 

category, as follows: 

FV48 = FV12 + FV14 + FV16 + FV22 + FV25 + FV27 + FV32 

1704 SCHEDULE FV
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

 

LIABILITIES 

FV511, 512 and 513: Federal Funds Purchased and Securities Sold 

Under Agreements to Repurchase 

For federal funds purchased and securities sold under agreements to repurchase that are included on 

SC730, Federal Funds Purchased and Securities Sold Under Agreements to Repurchase, and that are 

measured at fair value on a recurring basis, report these liabilities by the applicable Level (1, 2, or 3). 

FV531, 532 and 533: Deposits 

For deposits that are included on SC710, Deposits, and that are measured at fair value on a recurring 

basis, report these liabilities by the applicable Level (1, 2, or 3). 

FV611, 612 and 613: Subordinated Debentures 

For subordinated debentures that are included on SC736, Subordinated Debentures, and that are 

measured at fair value on a recurring basis, report these liabilities by the applicable Level (1, 2, or 3). 

FV631, 632 and 633: Other Borrowings 

For other borrowings that are included on SC760, Other Borrowings, and that are measured at fair value 

on a recurring basis, report these liabilities by the applicable Level (1, 2, or 3). 

FV651, 652 and 653: Derivative Liabilities 

For derivative liabilities that are included on SC796, Other Liabilities and Deferred Income, report these 

liabilities by the applicable Level (1, 2, or 3). (All derivatives are measured at fair value on a recurring 

basis with changes in fair value reported through earnings.) 

FV711, 712 and 713: All Other Financial Liabilities 

For all other financial liabilities that are included in SC70, Total Liabilities, and that are measured at fair 

value on a recurring basis, report these liabilities by the applicable Level (1, 2, or 3). 

FV51: Federal Funds Purchased and Securities Sold Under 

Agreements to Repurchase 

FV53: Deposits 

FV61: Subordinated Debentures 

FV63: Other Borrowings 

FV65: Derivative Liabilities 

FV71: All Other Financial Liabilities 

 SCHEDULE FV 1705 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

 

For each liability category, the EFS software will compute this line as the sum of the amounts reported in 

the columns for each Level (1, 2, and 3), as follows: 

FV51 = FV511 + FV512 + FV513 

FV53 = FV531 + FV532 + FV533 

FV61 = FV611 + FV612 + FV613 

FV63 = FV631 + FV632 + FV633 

FV65 = FV651 + FV652 + FV653 

FV71 = FV711 + FV712 + FV713 

FV514: Federal Funds Purchased and Securities Sold Under 

Agreements to Repurchase 

FV534: Deposits 

FV614: Subordinated Debentures 

FV634: Other Borrowings 

FV654: Derivative Liabilities 

FV714: All Other Financial Liabilities 

For each liability category where the amount on Schedule SC has been reported net of a related asset, 

and where the amount on this Schedule has been reported gross (that is, without regard to the related 

asset), report the related netting adjustment. In all cases, the netting adjustment will be negative. 

However, report the amount as positive, as the EFS software will subtract the amount from the total 

before netting to arrive at the Total, After Netting. These adjustments will align the amounts reported for 

liabilities on this Schedule with the amounts reported on Schedule SC. 

FV52: Federal Funds Purchased and Securities Sold Under 

Agreements to Repurchase 

FV54: Deposits 

FV62: Subordinated Debentures – 

FV64: Other Borrowings 

FV66: Derivative Liabilities 

FV72: All Other Financial Liabilities 

1706 SCHEDULE FV
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

 

 SCHEDULE FV 1707 

For each liability category, the EFS software will compute this line as the total before netting, less the 

amount reported for Less: Amounts Netted, as follows: 

FV52 = FV51 – FV514 

FV54 = FV53 – FV534 

FV62 = FV61 – FV614 

FV64 = FV63 – FV634 

FV66 = FV65 – FV654 

FV72 = FV71 – FV714 

FV81, 82, 83 and 84: Total Liabilities Measured at Fair Value on a 

Recurring Basis 

For each Level (1, 2, or 3) and for the total before netting, the EFS software will compute this line as the 

sum of the corresponding amounts reported or computed for each liability, as follows: 

FV81 = FV511 + FV531 + FV611 + FV631 + FV651 + FV711 

FV82 = FV512 + FV532 + FV612 + FV632 + FV652 + FV712 

FV83 = FV513 + FV533 + FV613 + FV633 + FV653 + FV713 

FV84 = FV51 + FV53 + FV61 + FV63 + FV65 + FV71 

FV86: Total Liabilities Measured at Fair Value on a Recurring Basis – 

Less: Amounts Netted 

The EFS software will compute this line as the sum of the corresponding amounts reported for each 

liability category, as follows: 

FV86 = FV514 + FV534 + FV614 + FV634 + FV654 + FV714 

FV88: Total Liabilities Measured at Fair Value on a Recurring Basis – 

Total, After Netting 

The EFS software will compute this line as the sum of the corresponding amounts reported for each 

liability category, as follows: 

FV88 = FV52 + FV54 + FV62 + FV64 + FV66 + FV72 
THIS PAGE INTENTIONALLY LEFT BLANK
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

 

 SCHEDULE CMR 1833 

Adjustable-Rate Mortgage Loan Servicing 

CMR431 through CMR432: Balances Serviced 

Report the outstanding balances of ARMs serviced for others that reset based on current market indices 

on CMR431 and those that reset based on lagging market indices on CMR432. See the instructions for 

adjustable-rate single-family mortgages for a definition of current market versus lagging indices. 

CMR433 through CMR434: Weighted-Average Remaining Maturity 

(WARM) 

Report the WARM of ARMs of each index type on CMR433 and CMR434. Calculate the WARM as 

described in the general instructions to Schedule CMR. 

CMR435 and CMR436: Weighted-Average Servicing Fee 

Report the weighted-average net servicing fee that you retain in basis points for current market index 

ARMs on CMR435 and for lagging market index ARMs on CMR436. See example above for description 

of its calculation. The mortgage servicing fee is the spread you retain. This is the difference between the 

weighted-average note rate on the mortgages being serviced and the rate of interest passed on to the 

owner of the mortgages, less any payments to third parties such as guarantors, master servicers, and 

subservicers. 

CMR441: Total Number of Adjustable-Rate Loans Serviced 

On CMR441 report the total number of adjustable-rate loans in the balances on CMR431 and CMR432. 

CMR442: Of Which, Number Subserviced by Others 

On CMR442 report the total number of ARM loans in CMR441 where you own the right to service for 

others but have contracted the servicing out to a subservicer. 

CMR450: Total Balances of Mortgage Loans Serviced for Others 

The EFS software automatically computes this line as the sum of the balances on CMR401 through 

CMR405, CMR431, and CMR432. 

CASH, DEPOSITS, AND SECURITIES 

We collect information about most of the financial instruments on SC11, Cash, Deposits, and Investment 

Securities, in this section. We do not include mortgage-derivative securities. General instructions to 

Schedule CMR that apply to this section are: 

1. Report outstanding principal balances, not carrying values, unless explicitly instructed otherwise. 

Do not deduct or add discounts and premiums or valuation allowances. 

2. Report coupon rates, not effective rates, unless explicitly instructed otherwise. 

3. In calculating the WARM, observe the following: 

a. For a security that will repay principal periodically over its life, such as through scheduled 

sinking fund repayments, you should treat each repayment as a separate instrument when 

calculating the WARM. 

b. For variable-rate instruments, calculate the WARM using the months to the next repricing as 

the remaining months to maturity.
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

 

1834 SCHEDULE CMR

CMR461: Cash, Non-Interest-Earning Demand Deposits, Overnight 

Fed Funds, Overnight Repurchase Agreements 

Report on CMR461 the outstanding balance of cash, cash items, non-interest-earning demand deposits, 

overnight Federal funds sold, securities purchased under overnight repurchase agreements, and 

investments in money market mutual funds. Also, include accrued interest or dividends receivable on 

deposits and investment securities that you report on CMR461 through CMR481 or as code 121 in 

Supplemental Reporting of Market Value Estimates, as appropriate.

CMR464: Equity Securities Carried at Fair Value 

Report investments in equity securities including mutual funds, that are classified as either available-forsale or trading, and are carried at fair value. Include limited partnership investment funds. Include 

investments in perpetual preferred stock or preferred stock convertible to common stock where such 

preferred stock has a readily determinable fair value. 

Do not include: 

1. Investments in money market mutual funds. Report on CMR461. 

2. Preferred and common stock where there is no readily determinable fair value. Report on 

CMR530. 

CMR470 through CMR472: Zero-Coupon Securities 

On CMR 470 report the recorded investment of zero-coupon securities, including Treasury bills. Do not 

include Z-tranches or accrual bonds of CMOs or REMICs. You should report those on CMR357. On 

CMR471, instead of a WAC, report the internal rate of return of these securities regardless of whether 

you report them at historic cost or fair value. Report the WARM on CMR472. Do not include securities 

that you could consider complex securities such as callable zero-coupon securities. Thrifts with complex 

securities, including structured securities, are required to self-value these instruments on the section, 

Supplemental Reporting of Market Value Estimates using asset code 121 in Appendix D. We define 

both complex securities and structured securities in Thrift Bulletin 13a, Appendix D. 

CMR473 through CMR475: Government and Agency Securities 

Report debt instruments issued by the US government and nonmortgage debt issued by federal 

agencies. 

Include: 

1. US Treasury securities, except Treasury bills on CMR470. 

2. Nonmortgage debt issued by FNMA, FHLMC, GNMA, the FHLB System, and other government 

sponsored agencies. 

3. FICO bonds. 

4. SBA securities. 

Do not include: 

1. Mortgage-backed instruments or derivatives issued or guaranteed by FNMA, FHLMC, or GNMA. 

Report with Mortgage-Backed or Mortgage-Derivative Securities as appropriate. 

2. Complex securities, including structured securities, as described in Thrift Bulletin 13a, Appendix 

D. 

3. Stripped securities. Report on CMR470. 

4. Stock of Federal agencies. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

 

 SCHEDULE CMR 1835 

5. Securities issued by state or local governments. 

6. Securities purchased under overnight repurchase agreements. 

On CMR473 report the outstanding principal balance of the relevant instruments. Report the WAC of 

those balances on CMR474 and their WARM on CMR475. The general instructions to Schedule CMR 

describe how to calculate both of these items. 

Supplemental Reporting 

If the balance reported on CMR473 includes adjustable-rate or inverse floating-rate securities, report the 

entire balance at a greater level of detail in the Supplemental Reporting Section. The additional detail 

provided by such reporting improves the estimates produced by the OTS Model. For information, see the 

instructions for Supplemental Reporting for Assets and Liabilities. 

CMR476 through CMR478: Term Fed Funds, Term Repurchase 

Agreements, and Interest-Earning 

Deposits 

Include any Fed funds sold and securities purchased under repurchase agreements that you did not 

report on CMR461. Also, include interest-earning nonmaturity deposits and all time deposits held with 

banks and other depository institutions, including FHLBs. Report the outstanding principal balance on 

CMR476, the WAC of those balances on CMR477, and their WARM on CMR478. For deposits that have 

no contractual maturity, use one month when you calculate the WARM. 

CMR479 through CMR481: Other (Munis, Mortgage-Backed Bonds, 

Corporate Securities, Commercial Paper, 

Etc.) 

This section includes a broad range of securities: 

1. Debt securities issued by state and local governments. 

2. Commercial paper and other corporate debt securities, except for structured securities as 

described in Appendix D of Thrift Bulletin 13a. 

3. Mortgage-backed bonds. 

4. Promissory notes. 

5. Limited life preferred stock. 

Do not include: 

Callable and other structured securities of these types. Report the market value estimates of these 

on Supplemental Reporting of Market Value Estimates using asset code 121 found in Appendix D. 

Report the outstanding principal balance of these securities on CMR479, their WAC on CMR480, and 

their WARM on CMR481. In calculating the WAC use the tax-equivalent yield for state, county, and 

municipal securities. Use the dividend yield for preferred stock. 

Supplemental Reporting 

If the balance reported on CMR479 includes adjustable-rate or inverse floating-rate securities, report the 

entire balance at a greater level of detail in the Supplemental Reporting Section. The additional detail 

provided by such reporting improves the estimates produced by the OTS Model. For information, see the 

instructions for Supplemental Reporting for Assets and Liabilities. 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

 

1836 SCHEDULE CMR

Outstanding Balance of Complex Securities (Not including Mortgage 

Derivative Securities) 

Thrifts with complex securities, including structured securities, are required to self-value these 

instruments in the section Supplemental Reporting of Market Value Estimates using asset code 121 in 

Appendix D. We define both complex securities and structured securities in Thrift Bulletin 13a, Appendix 

D. Do not include mortgage derivative securities. 

CMR490: Total Cash, Deposits, and Securities 

The EFS software automatically computes this line as the sum of the balances on CMR461, CMR464, 

CMR470, CMR473, CMR476, and CMR479. For all editing and output data uses, our data systems will 

add the balance for complex securities reported as code 121 in the section for Supplemental Reporting of 

Market Value Estimates to this line. 

ADDITIONAL ITEMS 

You report in this section certain additional items needed for the OTS Model. The definitions and 

instructions for these items are the same as on Schedule SC. 

Items Related to Mortgage Loans and Securities 

The following items pertain to asset balances on CMR125, CMR185, CMR261, CMR262, CMR281, 

CMR282, CMR291, CMR292, CMR311, and CMR312. 

CMR501: Nonperforming Loans 

Report the outstanding balance of nonperforming mortgage loans and securities. Nonperforming loans 

are nonaccrual loans plus loans that are at least 90 days past due but still accruing interest. Outstanding 

balance is defined in the general instructions to Schedule CMR. 

Include: 

1. Nonperforming mortgage warehouse loans that you reported as mortgage loans on Schedule SC. 

2. Delinquent mortgage loans previously securitized with Ginnie Mae, where either (a) you have an 

unconditional repurchase option, or (b) you have repurchased the loans under such an option. 

Also, with respect to (a) report the related liability on CMR786, Other Liabilities I. 

CMR502: Accrued Interest Receivable 

Report amounts for the types on SC228, Accrued Interest Receivable on Mortgage-Backed Securities, 

and SC272, Accrued Interest Receivable on Mortgage Loans. 

Include: 

Interest receivables on mortgage warehouse loans that you reported as mortgage loans on Schedule 

SC. 

CMR503: Advances for Taxes and Insurance 

Report amounts paid on behalf of borrowers for taxes and insurance of the types reported on SC275, 

Advances for Taxes and Insurance. 

Include: 

Advances related to mortgage warehouse loans that you reported as mortgage loans on Schedule 

SC. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

 

 SCHEDULE CMR 1837 

CMR504: Less: Unamortized Yield Adjustments 

Report the net amount of unamortized premiums and discounts related to balances on CMR125, 

CMR185, CMR261, CMR262, CMR281, CMR282, CMR291, CMR292, CMR311, CMR312, and CMR501. 

Include: 

Premiums or discounts related to mortgage warehouse loans that you reported as mortgage loans on 

Schedule SC. 

CMR507: Less: Valuation Allowances 

Report general and specific valuation allowances established to recognize credit losses. 

Include: 

Allowances related to mortgage warehouse loans that you reported as mortgage loans on Schedule 

SC. 

CMR508: Unrealized Gains (Losses) 

Report, on a consolidated basis, gross unrealized gains (losses) on loans held for sale, available-for-sale 

securities, and trading securities. Also report the accumulated gain or loss (change in fair value) on the 

asset attributable to the designated risk being hedged on a qualifying fair value hedge. 

Include: 

Unrealized gains or losses related to mortgage warehouse loans that you reported as mortgage loans 

on Schedule SC.

Items Related to Nonmortgage Loans and Securities 

The following items pertain to asset balances on CMR325, CMR326, CMR335, and CMR336. 

CMR511: Nonperforming Loans 

Report the outstanding balance of nonperforming nonmortgage loans. Nonperforming loans are 

nonaccrual loans plus loans that are at least 90 days past due but still accruing interest. Outstanding 

balance is defined in the general instructions to Schedule CMR. 

Do not include: 

Nonperforming mortgage warehouse loans that you reported as mortgage loans on Schedule SC. 

CMR512: Accrued Interest Receivable 

Report amounts of the types on SC348, Accrued Interest Receivable on Nonmortgage Loans. 

Do not include: 

Interest receivables on mortgage warehouse loans that you reported as mortgage loans on Schedule 

SC. 

CMR513: Less: Unamortized Yield Adjustments 

Report the net amount of unamortized premiums and discounts related to balances on CMR325, 

CMR326, CMR335, CMR336, and CMR511. 

Do not include: 

Premiums or discounts related to mortgage warehouse loans that you reported as mortgage loans on 

Schedule SC. 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

 

1838 SCHEDULE CMR

CMR516: Less: Valuation Allowances 

Report general and specific valuation allowances established to recognize credit losses. 

Do not include: 

1. Allowances related to mortgage warehouse loans that you reported as mortgage loans on 

Schedule SC. 

2. Valuation allowances established to recognize decreases in the value of real estate held for 

investment or repossessed assets. See instructions for CMR520 and CMR525 for proper 

treatment of such valuation allowances. 

CMR517: Unrealized Gains (Losses) 

Report unrealized gains (losses) on loans held for sale, available-for-sale securities, and trading 

securities. Also report the accumulated gain or loss, change in fair value, on the asset attributable to the 

designated risk being hedged on a qualifying fair value hedge. 

Do not include: 

Unrealized gains or losses related to mortgage warehouse loans that you reported as mortgage loans 

on Schedule SC. 

CMR520: Real Estate Held for Investment 

Report assets of the types on SC45. Report those amounts net of any appropriate valuation allowances. 

CMR520 should equal SC45. 

CMR525: Repossessed Assets 

Report repossessed assets of the types on SC405 through SC430. Report those amounts net of any 

appropriate valuation allowances. CMR525 should equal SC40. 

CMR530: Equity Investments Not Carried at Fair Value (Excluding 

FHLB Stock) 

Report equity investments of the type on SC540, net of any appropriate valuation allowances. Do not 

include Federal Home Loan Bank stock reported on SC510; report FHLB stock on CMR543, Other 

Assets, Miscellaneous I. Also do not include any loans made to subordinate organizations; report such 

loans with commercial loans on CMR325 or CMR326. Reclassify any investments accounted for by the 

equity method with a negative balance to CMR786, Miscellaneous Liabilities I. 

CMR535: Office Premises and Equipment 

Report assets of the types on SC55. CMR535 should equal SC55. 

Items Related to Certain Investment Securities 

CMR538: Unrealized Gains (Losses) 

Report gross unrealized gains (losses) on any available-for-sale securities and trading securities on 

CMR461, CMR473, CMR476, and CMR479 or as code 121 in Supplemental Reporting of Market Value 

Estimates. Also report the accumulated gain or loss, change in fair value, on the asset attributable to the 

designated risk being hedged on a qualifying fair value hedge. 

Do not include: 

1. Unrealized gains (losses) related to equity securities reported on CMR464. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

 

 SCHEDULE CMR 1839 

2. Unrealized gains (losses) related to zero-coupon securities reported on CMR470. 

Both CMR464 and CMR470 are reported at recorded investment and, thus, already include unrealized 

gains or losses. 

CMR539: Less: Unamortized Yield Adjustments 

Report the net amount of unamortized premiums and discounts on securities whose balances you report 

on CMR461, CMR473, CMR476, and CMR479 or as code 121 in Supplemental Reporting of Market 

Value Estimates. 

Do not include: 

1. Unamortized yield adjustments related to equity securities reported on CMR464. 

2. Unamortized yield adjustments related to zero-coupon securities reported on CMR470. 

Both CMR464 and CMR470 are reported at recorded investment and, thus, already include premiums 

and discounts. 

CMR540: Less: Valuation Allowances 

Report all valuation allowances related to securities whose balances you report on CMR377, CMR378, 

CMR461, CMR464, CMR470, CMR473, CMR476, and CMR479 or as code 121 in Supplemental 

Reporting of Market Value Estimates. 

Other Assets 

CMR541: Servicing Assets, Interest-Only Strip Receivables, and Certain 

Other Instruments 

Report assets of the types reported on SC642, Servicing Assets on Mortgage Loans, SC644, Servicing 

Assets on Nonmortgage Loans, and SC665, Interest-Only Strip Receivables and Certain Other 

Instruments. CMR541 should equal the sum of SC642, SC644, and SC665. 

CMR543: Miscellaneous I 

Report assets of the types included on line SC689, Other Assets, except for the following items: 

1. Unamortized options fees, Other Assets Code 16. 

2. Deferred net losses (gains) on asset hedges, Other Assets Code 17. 

3. Derivative instruments in a gain position at fair value, Other Assets Code 20. 

Include: 

1. Assets of the types included on SC615 and SC625, Bank-Owned Life Insurance. 

2. Federal Home Loan Bank Stock reported on SC510. 

Report amounts on CMR543 net of specific valuation allowances. Deduct all general valuation allowances 

on SC699 from this line. The sum of CMR543 and CMR544 should equal SC510, SC615, SC625, SC660 

plus SC689, minus SC699. 

CMR544: Miscellaneous II 

Report assets of the types included on line SC660, Goodwill and Other Intangibles. 

Include the following items included on SC689, Other Assets: 

1. Unamortized options fees . 

2. Fair value of all derivative instruments reportable as assets (Code 20). 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

 

1840 SCHEDULE CMR

The sum of CMR543 and CMR544 should equal SC510, SC615, SC625, SC660 plus SC689, minus 

SC699. 

CMR550: Total Assets 

The EFS software automatically computes this line as the sum of the following line items: 

 CMR125 CMR185 CMR261 CMR262 CMR281 

 CMR282 CMR291 CMR292 CMR311 CMR312 

 CMR325 CMR326 CMR335 CMR336 CMR377 

 CMR378 CMR490 CMR501 CMR502 CMR503 

 CMR508 CMR511 CMR512 CMR517 CMR520 

 CMR525 CMR530 CMR535 CMR538 CMR541 

 CMR543 CMR544 

Less the following items: 

 CMR504 CMR507 CMR513 CMR516 CMR539 CMR540 

CMR550 plus the balance for Complex Securities reported as code 121 on the section for Supplemental 

Reporting of Market Value Estimates should equal SC60, Total Assets. For all editing and output data 

uses, our data systems will add the balance for complex securities reported as code 121 in the section for 

Supplemental Reporting of Market Value Estimates to this line. 

Memoranda Items 

CMR578: Mortgage Warehouse Loans Reported as Mortgage Loans at 

SC26 

Report the outstanding balance of performing loans included on SC26, Mortgage Loans, collateralized by 

mortgage loans rather than liens directly on real estate. 

CMR580: Loans Secured by Real Estate Reported as Nonmortgage Loans 

at SC31 

Report the outstanding balance for the following types of performing loans on SC31 (Nonmortgage 

Loans): 

1. Any timeshare loans on CMR125 or CMR185. 

2. Loans to finance small businesses that are primarily secured by single-family residences, where 

you have classified the loans as commercial nonmortgage loans. 

Market Value of Equity Securities and Mutual Funds Reported at CMR464: 

Report on CMR582 and CMR584 the current market value of the assets whose recorded investment you 

report on CMR464. The sum of CMR582 and CMR584 should equal CMR464. 

CMR582: Equity Securities and Nonmortgage--Related Mutual Funds 

Report on CMR582 the current market value of all investments in common stock, except FHLB stock, and 

in mutual funds that invest entirely in nonmortgage-related instruments. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

 

 SCHEDULE CMR 1841 

CMR584: Mortgage-Related Mutual Funds 

Report on CMR584 the current market value of all investments in mutual funds, including limited 

partnership investment funds, that have any investments in mortgages, mortgage securities, mortgagederivative securities, mortgage servicing rights, or other mortgage-related instruments. 

At your option, you may use code 129 to report your estimate of mortgage-related mutual funds in each of 

the seven interest rate scenarios listed on the Supplemental Reporting of Market Value Estimates. 

Mortgage Loans Serviced by Others 

CMR586: Fixed-Rate Mortgage Loans Serviced by Others 

Report on CMR586 the outstanding balance of all performing fixed-rate mortgages that you hold but 

others service. 

CMR587: Weighted-Average Servicing Fee 

Report on CMR587, in basis points, the weighted-average servicing fee paid to others to service the 

fixed-rate mortgage balances on CMR586. Calculate the weighted-average servicing fee in the same 

manner as described for the WAC in the general instructions to Schedule CMR. 

CMR588: Adjustable-Rate Mortgage Loans Serviced by Others 

Report on CMR588 the outstanding balance of all performing ARM balances that you hold but others 

service. 

CMR589: Weighted-Average Servicing Fee: 

Report on CMR589, in basis points, the weighted-average servicing fee paid to others to service the ARM 

balances on CMR588. Calculate the weighted-average servicing fee in the same manner as described for 

the WAC in the general instructions to Schedule CMR. 

CMR590: Credit Card Balances Expected to Pay Off in Grace Period 

Report on CMR590 the amount of the outstanding credit card balances expected to pay off within an 

interest-free grace period and, thus, not incur interest charges. 

Example: You have $100,000 in outstanding fixed- and adjustable-rate credit card balances scheduled 

to pay off over 60 months. You estimate that customers will repay 30 percent of those balances within the 

grace period. You would report $30,000 on CMR590. 

LIABILITIES 

Annual Percentage Yields 

Unless otherwise stated in the reporting instructions, report the interest rates for all liabilities as annual 

percentage yields (APYs). The rates and balances used in calculating the APY should be those as of the 

reporting date, unless otherwise stated in the reporting instructions. If the APY is equal to zero, report .01, 

one basis point. 

In general, APY reflects the relationship between a given principal balance and the amount of interest that 

it would earn for a three hundred sixty-five day year. Calculate the APY using the following general 

formula: 
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1842 SCHEDULE CMR

APY = 100 [(1 + Interest/Principal)(365/Days in Term) - 1] 

Where: Principal = The amount of funds on deposit as of the reporting date. 

 Interest = The total dollar amount of interest that you will pay on the Principal over 

the remaining term of the account. 

 Days in Term = The actual number of days remaining to maturity. You can use the above 

formula to compute the APY for instruments of any maturity. 

We base the following examples on balances and rates as of the reporting date: 

Example: 

You will pay $30.37 in interest on a $1,000 certificate of deposit with six months remaining to maturity, 

where the six month period contains 182 days. Calculate the APY as follows: 

APY = 100 [(1 + 30.37/1,000)(365/182) - 1] 

 = 6.18% 

Suppose now that you will pay $133.13 in interest on a $1,000 certificate of deposit with two years 

remaining to maturity, where the two-year period contains 730 days. Calculate the APY as follows: 

APY = 100 [(1 + 133.13/1,000)(365/730) - 1] 

 = 6.45% 

Use Days in Term equal to 365 for accounts without a stated maturity. For example, you pay $61.68 in 

interest for $1,000 deposited in a NOW account for 365 days, assuming the depositor makes no further 

withdrawals or deposits during that time. Calculate the APY as follows: 

APY = 100 (61.68/1,000) 

 = 6.17% 

Reporting of Deposit Information 

Schedule CMR collects information on early withdrawals during the quarter for CDs and the balances 

deposited in new accounts during the quarter for CDs and nonmaturity deposits. We use this information 

to develop core deposit attrition rate estimates. The OTS Net Portfolio Value Model uses attrition rate 

estimates to estimate the interest rate sensitivity of your core deposits. Refer to the instructions for the 

specific line items for definitions of early withdrawals and new accounts. 

Reporting the information on early withdrawals and balances deposited in new accounts is optional for 

only those institutions with total assets (SC60) of less than $300 million. 

FIXED-RATE, FIXED-MATURITY DEPOSITS 

CMR601-CMR603, CMR615-CMR617, 

CMR631-CMR632, and CMR641: Balances 

Report each outstanding CD balance in the cell corresponding to its remaining maturity and original 

maturity. 

Include: 

1. CDs. 

2. Notice accounts. 

3. Consecutive monthly payment accounts – for example, Christmas Club accounts. 
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 SCHEDULE CMR 1843 

Do not include: 

Variable-rate, fixed-maturity deposits. Use code 200 to report these deposits in Supplemental 

Reporting for Assets and Liabilities. 

Note: We include notice accounts in the maturity/repricing column that corresponds to the remaining term 

of the notice period. We include consecutive monthly payment accounts in the maturity/repricing column 

that corresponds to the remaining term required to qualify for the bonus rate. 

CMR605-CMR607, CMR619-CMR621, 

CMR634-CMR635, and CMR643: Weighted-Average Coupon (WAC) 

Report the weighted-average APY of the CD balances reported in each of the nine cells listed above. 

Calculate the weighted-average APY in the same way as described for the WAC in the general 

instructions to Schedule CMR. 

CMR608-CMR610, CMR622-CMR624, 

CMR636-CMR637, and CMR644: Weighted-Average Remaining 

Maturity (WARM) 

Report the WARM, in months, of the CD balances reported in each of the nine cells listed above. We 

describe how to calculate the WARM in the general instructions to Schedule CMR. 

CMR604, CMR618, CMR633, and CMR642: Early Withdrawals during 

Quarter 

Report CDs (or portions of CDs) that meet both of the following criteria: 

1. Were subject to early withdrawal penalties. 

2. Were withdrawn during the quarter before their contractual maturity. 

Report balances withdrawn before maturity in the maturity bucket corresponding to what the remaining 

maturity of those balances would have been at the quarter’s end had they not been withdrawn. 

CMR645: Total Fixed-Rate, Fixed-Maturity Deposits (CDs) 

The EFS software automatically computes this line as the sum of CMR601 through CMR603, CMR615 

through CMR617, CMR631, CMR632, and CMR641. 

MEMO: FIXED-RATE, FIXED-MATURITY DEPOSIT DETAIL: 

CMR650 through CMR652: Balances in Brokered Deposits 

For the total CD balances reported in each original maturity column, determine the portion that are 

brokered deposits. Report these balances for each original maturity. The term brokered deposit, defined 

in 12 CFR § 337.6, refers to funds obtained, directly or indirectly, by or through any deposit broker. 

Example: You report $125,000 on CMR602, $225,000 on CMR616, and $250,000 on CMR631. Of the 

three balances, $50,000, $25,000, and $35,000, respectively, are in brokered accounts. You would 

report $110,000 (= $50,000 + $25,000 + $35,000) on CMR651. 
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1844 SCHEDULE CMR

Deposits with Early-withdrawal Penalties Stated in Terms of Months 

of Forgone Interest: 

CMR653 through CMR655: Balances Subject to Penalty 

For the balances reported in each original maturity column, determine the portion subject to early 

withdrawal penalties (EWPs) stated in months of forgone interest. Report these balances for each original 

maturity column. Do not include CDs having EWPs stated differently (flat penalty, market-related penalty). 

Example: You report $125,000 on CMR602, $225,000 on CMR616, and $250,000 on CMR631. Of the 

$125,000 balance, $100,000 are CDs with an EWP of 1.12 month’s interest. Of the $225,000 and 

$250,000 balances, a total of $450,000 are CDs with an EWP requiring forfeiture of 1.98 months’ interest. 

You would report $550,000 (= $100,000+$450,000) on CMR654. 

CMR656 through CMR658: Penalty in Months of Forgone Interest 

For the balances reported in each original maturity column, and totaled on CMR653 through CMR655, 

report the weighted-average EWP in months of foregone interest for each year (or fraction of a year) of 

contractual maturity. Report to two decimal places. Report these for each original maturity column. 

Example: You report $125,000 on CMR602, $225,000 on CMR616, and $250,000 on CMR631. Of the 

$125,000 balance, $100,000 are CDs with an EWP of 1.12 month’s interest. 2 Both the $225,000 and 

$250,000 aggregate balances are CDs with an EWP requiring forfeiture of 1.98 months’ interest. You 

would calculate the weighted-average EWP on CMR657 as follows: 

EWP = (100,000 x 1.12) + (475,000 x 1.98)

 (100,000 + 475,000) 

 = 1.83 months 

CMR659 through CMR661: Balances in New Accounts 

New accounts are those where a customer, who did not previously have a fixed-rate, fixed-maturity 

deposit, acquires one, or where the contract terms have changed on an existing account. For purposes 

of CMR, a new account where the contract terms have changed is one in which: 

 There has been a change in the name of the account (including additional or dropped owners), or 

 The maturity of the new CD is for a different term than the matured CD (that is, it would fall into a 

different maturity bucket). 

For rollovers, if there has been no change in the ownership of the account and the maturity of the new CD 

is within the same maturity bucket, the new CD is not considered a new account even if new funds are 

added to the CD. 

For example, a three-month CD issued during the quarter would not be a new account if the account 

holder had a CD with original maturity of 12 months or less that matured during the quarter. A CD would 

be a new account if it were a 3-month CD rolled over from a CD with an original maturity of more than 12 

months or if a three-month CD were rolled over to a 24-month CD. In both of these cases the maturity 

bucket has changed. 

 

2 The early withdrawal penalties are in months of forgone interest for each year (or fraction of a year) of remaining maturity. 

EWP= (Penalty in $) * 12 months per year

($ Interest paid over remaining maturity) 
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 SCHEDULE CMR 1845 

Also include as new accounts: 

1. Accounts where there has been a name added or deleted. 

2. Deposits acquired from an acquisition of a depository institution or its branches or from other bulk 

purchase of deposits. 

 On CMR659, report the portion of balances on CMR601 and CMR615 that are new CD balances 

with original maturities of 12 months or less. 

 On CMR660, report the portion of balances on CMR616 and CMR631 that are new CD balances 

with original maturities of 13 to 36 months. 

 On CMR661, report the portion of balances on CMR632 and CMR641 that are new CD balances 

with original maturities of 37 or more months. 

FIXED-RATE, FIXED-MATURITY FHLB ADVANCES, OTHER 

BORROWINGS, REDEEMABLE PREFERRED STOCK, AND 

SUBORDINATED DEBT 

CMR675-CMR677, CMR679-CMR681, CMR683-CMR685, CMR687-

CMR689, CMR691-CMR693, CMR695-CMR697, CMR699-CMR701, 

CMR703-CMR705: Balances 

Report each outstanding balance of fixed-rate, fixed-maturity borrowings in the cell corresponding to its 

coupon class and remaining maturity. The coupon classes are: under 3.00%; 3.00% to 3.99%; 4.00% to 

4.99%; 5.00% to 5.99%; 6.00% to 6.99%; 7.00% to 7.99%; 8.00% to 8.99%; and 9.00% and above. 

Include: 

1. FHLB advances. 

2. Commercial bank loans. 

3. Repurchase agreements. 

4. Retail repurchase agreements. 

5. Commercial paper issued. 

6. Subordinated debt. 

7. Redeemable preferred stock. 

8. All other borrowings. 

Do not include: 

1. Notice accounts. Report on CMR601 to CMR661. 

2. Consecutive monthly payments accounts. Report on CMR601 to CMR661. 

3. Collateralized mortgage securities issued. Report on CMR785. 

4. Structured borrowings. Report on Supplemental Reporting of Market Value Estimates, see 

below. 

5. Variable-rate, fixed maturity borrowings. Report on Supplemental Reporting for Assets and 

Liabilities. 

Distribute amortizing instruments across remaining maturity columns, in the appropriate coupon class, 

according to their contractual principal repayment schedules. For example, a $120,000 note, with an APY 

of 9.5 percent and remaining maturity of ten years, amortizes as follows: 

1. $3,000 in the next three months. 

2. $33,000 in months four through 36. 

3. $84,000 in the last 84 months. 
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1846 SCHEDULE CMR

You would report the note on CMR695, CMR696, and CMR697 as $3,000, $33,000, and $84,000, 

respectively. 

Structured Borrowings 

For the purpose of these instructions, structured borrowings include borrowings or FHLB advances with 

embedded options or derivative-like features where the borrowings’ coupon, average life, or redemption 

value is dependent on a reference rate, and index, or a formula. The term structured borrowings

includes, but is not limited to, putable or callable borrowings, variable-rate borrowings with embedded 

caps, floors or collars, step-up variable rate borrowings, or amortizing borrowings. 

OTS requires all institutions to report the market value of each structured borrowing in Supplemental 

Reporting of Market Value Estimates. Refer to the Supplemental Reporting of Market Value Estimates 

sections of these instructions for guidance on reporting market value estimates. 

CMR678, CMR682, CMR686, CMR690, 

CMR694, CMR698, CMR702, CMR706: WAC 

Report the weighted-average coupon (WAC) of the balances reported in each coupon class. To 

calculate the WAC, first determine the APYs of borrowings that you report in each coupon class. For 

instance, for the 5.00 to 5.99 percent class, determine the APYs of borrowings reported on CMR679 

through CMR681. Second, for each coupon class, use these yields to calculate the WAC, as described in 

the general instructions to Schedule CMR. 

CMR711 through CMR713: WARM 

Report the weighted average remaining maturity (WARM) for each remaining maturity column. To 

calculate the WARM, first determine the remaining maturity of each of the borrowings that you report in 

each remaining maturity class. For example, for the 0 to 3 months column, determine the remaining 

maturity of borrowings on CMR675, CMR679, CMR683, CMR687, CMR691, CMR695, CMR699, and 

CMR703. Second, for each remaining maturity class, use these remaining maturities to calculate the 

WARM, as described in the general instructions to Schedule CMR. 

CMR715: Total Fixed-Rate, Fixed-Maturity Borrowings 

The EFS software automatically computes this line as the sum of CMR675 through CMR677, CMR679 

through CMR681, CMR683 through CMR685, CMR687 through CMR689, CMR691 through CMR693, 

CMR695 through CMR697, CMR699 through CMR701, and CMR703 through CMR705. 

Memo: 

CMR755: Book Value of Redeemable Preferred Stock 

Report the book value of redeemable preferred stock of the type reported on SC800. 

NONMATURITY DEPOSITS 

CMR762 through CMR763: Transaction Accounts 

12 CFR § 561.29 defines transaction accounts and they include NOW, Super NOW, and other interestbearing transaction accounts. Report total balances of all interest-bearing transaction accounts on 

CMR762. 
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 SCHEDULE CMR 1847 

Report the WAC for total interest-bearing transaction account balances on CMR763. Determine the APYs 

of balances on CMR762. Use these to calculate the weighted-average APY in the same manner as the 

WAC computation described in the general instructions to Schedule CMR, and report it on CMR763. 

CMR764: Balances in New Accounts 

Balances in New Accounts are end-of-quarter balances in accounts where holders had no transaction accounts 

with you at the end of the prior quarter. 

Also include as new accounts: 

1. Accounts where there has been a name added or deleted. 

2. Deposits acquired from an acquisition of a depository institution or its branches or from other bulk 

purchase of deposits.

CMR765 through CMR766: Money Market Deposit Accounts 

12 CFR § 561.28 or applicable state law defines money market deposit accounts (MMDAs). Report total 

balances of MMDAs on CMR765. 

Report the WAC for MMDA balances on CMR766. Determine the APYs of balances on CMR765. Use these to 

calculate the weighted-average APY, in the same manner as the WAC computation described in the general 

instructions to Schedule CMR. Report the result on CMR766. 

CMR767: Balances in New Accounts 

Balances in New Accounts are end-of-quarter balances in accounts whose holders had no MMDA with you at 

the end of the prior quarter. 

Also include as new accounts: 

1. Accounts where there has been a name added or deleted. 

2. Deposits acquired from an acquisition of a depository institution or its branches or from other bulk 

purchase of deposits. 

CMR768 through CMR769: Passbook Accounts 

Passbook accounts consist of all nonmaturity deposits not on CMR762, CMR765, and CMR771. Report total 

balances of Passbook Accounts on CMR768. 

Report the WAC for passbook accounts balances on CMR769. Determine the APYs of balances on CMR768. 

Use these to calculate the weighted-average APY, in the same manner as the WAC computation described in 

the general instructions to Schedule CMR. Report the result on CMR769. 

CMR770: Balances in New Accounts 

Balances in New Accounts are end-of-quarter balances in accounts where holders had no passbook accounts 

with you at the end of the prior quarter. 

Also include as new accounts: 

1. Accounts where there has been a name added or deleted. 

2. Deposits acquired from an acquisition of a depository institution or its branches or from other bulk 

purchase of deposits.

CMR771: Noninterest-Bearing Nonmaturity Deposits 

Report balances of all nonmaturity deposit accounts that are permanently non-interest-bearing on 

CMR771. Do not include balances in nonmaturity deposits, transaction accounts or MMDAs, that do not 

currently earn interest because they are below the contracted minimum balance required to earn interest. 
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1848 SCHEDULE CMR

CMR773: Balances in New Accounts 

Balances in new accounts are end-of-quarter balances in accounts where holders had no noninterestbearing nonmaturity deposits with you at the end of the prior quarter. 

Also include as new accounts: 

3. Accounts where there has been a name added or deleted. 

4. Deposits acquired from an acquisition of a depository institution or its branches or from other bulk 

purchase of deposits. 

ESCROW ACCOUNTS 

Escrow accounts include the types of accounts on SC712 that you report in Schedule CMR as follows: 

 Report balances of escrow accounts associated with single-family first mortgages that you own 

on CMR775. 

 Report balances of tax and insurance escrows associated with single-family first mortgages 

serviced for others on CMR777. 

 Report balances of principal and interest escrows established pursuant to loan servicing 

agreements, including those in custodial accounts, on CMR786, Miscellaneous Liabilities I. 

 On CMR779, report balances of all escrow accounts not on CMR775, CMR777, and CMR786. 

 Report escrow accounts associated with mortgages that you partially own according to the 

percentage of ownership. 

Example: You sell an 80 percent participating interest in a pool of mortgages and retain the servicing. 

You have $60,000 in tax and insurance escrow accounts and $40,000 in principal and interest escrow 

accounts associated with the pool of mortgages. You would report the following amounts: on CMR775, 

$12,000 (= $60,000 x .20); on CMR777, $48,000 (= $60,000 x .80); and on CMR786, $40,000. 

Report the WAC of escrows on CMR775, CMR777, and CMR779 on CMR776, CMR778, and CMR780, 

respectively. Calculate the WAC as described in the general instructions to Schedule CMR. If the WAC is 

zero, report 0.01, one basis point. 

CMR781: Total Nonmaturity Deposits and Escrow Accounts 

The EFS software automatically computes this line as the sum of CMR762, CMR765, CMR768, CMR771, 

CMR775, CMR777, and CMR779. 

CMR782: UNAMORTIZED YIELD ADJUSTMENTS ON DEPOSITS 

Report on CMR782 unamortized yield adjustments of the type on SC715. Also include the component of 

the carrying value of deposit liabilities that consists of accumulated gains and losses, the change in fair 

value on the deposits, attributable to the designated risk being hedged on a qualifying fair value hedge. 

CMR784: UNAMORTIZED YIELD ADJUSTMENTS ON BORROWINGS 

Report on CMR784 unamortized yield adjustments applicable to liabilities of the types on the following 

line items: 

1. SC720 (Advances from FHLBank). 

2. SC730 (Federal Funds Purchased and Securities Sold Under Agreements to Repurchase). 
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 SCHEDULE CMR 1849 

3. SC736(Subordinated Debentures, Including Mandatory Convertible Securities and Limited-Life 

Preferred Stock). 

4. SC740 (CMOs, Including REMICs). 

5. SC745 (Other Mortgage Collateralized Securities Issued). 

6. SC760 (Other Borrowings). 

Add to this amount any unamortized yield adjustments related to redeemable preferred stock of the type 

on SC800. Also include the component of the carrying value of borrowings that consists of accumulated 

gains and losses (the change in fair value on the borrowings) attributable to the designated risk being 

hedged on a qualifying fair value hedge. 

OTHER LIABILITIES 

CMR785: Collateralized Mortgage Securities Issued 

Report the carrying value of collateralized mortgage securities issued that you do not record as sales in 

accordance with GAAP. 

CMR786: Miscellaneous Liabilities I 

Report amounts of the types included on SC763, Accrued Interest Payable on Deposits, SC766, Accrued 

Interest Payable on Other Liabilities, SC776, Accrued Taxes, and SC780, Accounts Payable. 

Include amounts of the types on line SC796, Other Liabilities and Deferred Income, except for the 

following: 

1. Financial option fees received. 

2. Deferred net gains (losses) on liability hedges. 

3. Negative goodwill. 

4. Derivative instruments in a loss position at fair value. 

For definitions of these items, see the instructions for line SC796, code numbers 02, 03, 12, and 20, 

respectively. 

Also include: 

1. Balances in principal and interest escrow accounts established pursuant to loan servicing 

agreements. 

2. The liability associated with delinquent mortgage loans previously securitized with Ginnie Mae, 

where you have an unconditional repurchase option. The related loans are reported on CMR501, 

Nonperforming Loans. 

CMR787: Miscellaneous Liabilities II 

Report amounts of the types included on line SC790, Deferred Income Taxes. Also include financial 

option fees received, negative goodwill, and derivative instruments in a loss position at fair value. For 

definitions of these items, see the instructions for line SC796, code numbers 02, 03, 12, and 20, 

respectively. 

CMR790: Total Liabilities (Incl. Redeemable Preferred Stock) 

The EFS software automatically computes this line as the sum of CMR645, CMR715, CMR781, and 

CMR782 through CMR787. For all editing and output data uses, our data systems will add the following 

balances to this line: 

1. Variable-rate, fixed-maturity liabilities reported as codes 200, 220, and 299 in Supplemental 

Reporting for Assets and Liabilities. 
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1850 SCHEDULE CMR

2. Structured borrowings reported as codes 280 through 290 in Supplemental Reporting of 

Market Value Estimates. 

CMR793: NONCONTROLLING INTEREST IN CONSOLIDATED 

SUBSIDIARIES 

Report amounts accounted for as noncontrolling interest in consolidated subsidiaries and included in 

SC800, with the following exceptions: 

 Also include on CMR793, REIT preferred stock even if it is not included in SC800, but rather you 

have elected to report it as a liability on SC760, Other Borrowings. 

 Do not include redeemable preferred stock even though you reported it in SC800. Report all 

redeemable preferred stock on CMR755, Book Value of Redeemable Preferred Stock. 

CMR796: EQUITY CAPITAL 

Report on CMR796 the amount on SC80, Total Equity Capital. 

CMR800: Total Liabilities, Noncontrolling Interest, and Capital 

The EFS software automatically computes this line as the sum of CMR790, CMR793, and CMR796. For 

all editing and output data uses, our data systems will add the following balances to this line: 

1. Variable-Rate, Fixed-Maturity Liabilities reported as codes 200, 220, and 299 in the section for 

Supplemental Reporting for Assets/Liabilities. 

2. Structured Borrowings reported as codes 280 through 290 in the section for Supplemental 

Reporting of Market Value Estimates. 

FINANCIAL DERIVATIVES AND OFF-BALANCE-SHEET 

POSITIONS 

INTRODUCTION 

Divide financial derivatives and off-balance-sheet (OBS) contracts into the following ten general types of 

contracts for reporting on Schedule CMR: 

1. Optional commitments to originate mortgages. 

2. Firm commitments to purchase, sell, or originate mortgages. 

3. Optional commitments to purchase or sell mortgages. 

4. Commitments to purchase, originate, or sell nonmortgage financial assets and liabilities. 

5. Interest-rate swaps. 

6. Interest-rate caps. 

7. Interest-rate floors. 

8. Futures. 

9. Options on futures. 

10. Construction LIP. 

Note: Report information about financial derivatives and OBS contracts on Schedule CMR even though 

you report derivative instruments in Schedule SC on SC689, Other Assets, or SC796, Other Liabilities. 
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 SCHEDULE CMR 1851 

Report OBS contract positions on CMR801 through CMR880. To report an OBS contract position, report 

the contract code described below that corresponds to the position in the column Contract Code. Enter 

the notional principal amount of the position in the column Notional Amount. Report information in the 

other columns according to the instructions for each type of contract. We provide examples of how to 

report various positions for each type of contract in the individual sections. 

Reporting More Than 16 Financial Derivatives and OBS Positions 

CMR801 through CMR880 accommodate the reporting of 16 financial derivatives and OBS positions. If 

you have more than 16 positions, you must report the remaining positions by one of the following two 

methods: 

1. Report the remaining positions on the continuation sheet Supplemental Reporting for Financial 

Derivatives and Off-Balance-Sheet Positions in the same manner as the initial 16 positions. 

Number each position sequentially in the column Entry #, beginning with the number 1 for the first 

position reported. Use as many continuation sheets as necessary to report the remaining 

positions. On CMR902, report the number lines that you report in this manner. 

2. You may provide your own estimate of the market values of the remaining positions in each of the 

seven interest-rate scenarios on Supplemental Reporting of Market Value Estimates. To report 

under this method, see Supplemental Reporting for Derivatives and OBS Contracts in the section 

Supplemental Reporting of Market Value Estimates. On CMR903, report the number of lines that 

you report by this method. 

If you choose this method, you must report all positions of Optional Commitments to Originate 

Mortgages, discussed below, as part of the 16 positions on CMR801 through CMR880. 

Contract Code 

Identify all OBS contract positions by a contract code. We provide a list of codes for each type of contract 

in Appendices B and D. The first two digits of the four-digit contract codes designate the general type of 

contract. For example, all codes for optional commitments to originate mortgages begin with the digits 10. 

The last two digits of the code designate the specific type of OBS contract within the general type. For 

example, we designate optional commitments to originate 30-year fixed-rate mortgages by the code 

1014. 

Reporting Instructions 

We provide instructions below for each of the ten general types of financial derivatives and OBS 

contracts. Each section begins by defining the contracts covered in that section. We also provide 

guidance on how to combine or aggregate contracts for reporting purposes. We specify what to report in 

each of the five columns, CMR801 through CMR880, and provide examples. 

Report all rates as a percent to two decimal places. For example, to report a coupon rate of 7.5 percent, 

report 7.50. Report all prices as a percentage of par to two decimal places. For example, to report a price 

of 102 percent of par, report 102.00. Report a price of par as 100.00. 

Optional Commitments to Originate Mortgages 

An optional commitment to originate a mortgage is an obligation to originate a mortgage loan at a 

specified interest rate, fixed or adjustable, where the potential borrower faces no substantial penalty for 

failing to take the loan. Report only those optional commitments to originate where you have in effect or 

have offered a specified interest rate, a rate lock, that is currently subject to the borrower’s acceptance. 

Commitments to originate are firm when both the borrower and the lender are obligated to close the loan 

at the interest rate specified. We provide instructions for reporting firm commitments below. 

Aggregation 

Report all commitments having the same contract code as a single position. See Appendix B for codes. 

For example, report all commitments on one-month COFI ARMs (code 1002) as a single position, report 

all commitments on six-month and one-year COFI ARMs (code 1004) as a single position, and so forth. 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

 

1852 SCHEDULE CMR

Column 1: Contract Code 

Report the contract code for the position in Column 1. Refer to Appendix B for the list of codes. 

Column 2: Notional Amount 

Report the dollar amount of commitments outstanding in Column 2. For rate locked loans that have yet to 

receive credit approval, deduct an amount representing expected credit denials. Do not adjust the 

reported amount for fallout of approved loans. 

Column 3: Maturity or Fees 

Report in Column 3 the dollar amount in thousands of loan origination and loan discount fees that you 

would collect if each loan closed. These fees should include compensation for buy-ups or buy-downs. Do 

not include any other fees collected in the loan origination process, such as application, appraisal, credit, 

and title fees. 

Column 4: Price/Rate #1 

Report in Column 4 the WAC of outstanding commitments. Refer to the calculation of the WAC in the 

general instructions to Schedule CMR. 

Column 5: Price/Rate #2 (Optional) 

Reporting this information is optional. Report in Column 5 the percentage of optional commitments, by 

dollar balances, outstanding as of the end of the previous quarter that closed during the quarter. 

Example: You report $120 million of optional commitments on 30-year, fixed-rate mortgages as of June 

30. Of the $100 million of optional commitments that you reported in the previous quarter’s report, the 

report for the quarter ending March 31, $75 million closed during the quarter. You would report 75.00 

[equal to ($75 million/$100 million) x 100] in Column 5 for the quarter ending June 30. 

We intend to use this information to develop fallout rate estimates for savings associations that report this 

data. The OTS Model uses these estimates to estimate the interest rate sensitivity of your mortgage 

pipelines. 

If you choose not to report this information, you should leave this cell blank. The OTS Model will use 

national fallout rate estimates to estimate the market value of your mortgage pipelines. 

Examples: 

Position 1: You have $25 million of optional commitments to originate 30-year fixed-rate mortgages. 

The WAC for these commitments is 8.67 percent. You would collect loan origination and loan discount 

fees of $560,000 if all the loans in this position closed. Sixty-five percent of the optional commitments 

outstanding at the end of the prior quarter closed. 

Position 2: You have $5 million and $10 million of optional commitments to originate six-month and oneyear COFI ARMs, respectively. Combine these positions for reporting purposes because you report them 

under the same contract code. The respective WACs on these commitments are 7.10 percent and 7.40 

percent, and loan origination and loan discount fees you will collect total $420,000. You choose not to 

report in column 5. 

You would report these positions as follows: 

 [1] [2] [3] [4] [5] 

 Contract 

Code 

Notional 

Amount 

Maturity or 

Fees 

Price/Rate 

#1 

Price/Rate 

#2 

Position 1 1014 25 000 560 8.67 65.00 

Position 2 1004 15 000 420 7.30 

Firm Commitments to Purchase, Sell, or Originate Mortgages 

Firm commitments to purchase or sell mortgages are agreements to purchase or sell mortgage loans, 

MBS, or mortgage derivative products at a specified price on a specified date. Firm commitments to 

originate mortgages are binding obligations to provide a specified amount of a mortgage loan at a 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

 

 SCHEDULE CMR 1853 

specified interest rate, fixed or adjustable. You should consider commitments to originate mortgages firm 

only if the borrower is obligated to pay you a substantial penalty if the borrower fails to take the loan. The 

penalty should approximate the difference between the value of the loan at the commitment rate and the 

value of the same loan at the subsequent lower mortgage rate. 

Aggregation 

Report all commitments having the same contract code as a single position. See Appendix B for codes. 

For example, report all firm commitments to purchase one-month COFI ARM loans on a servicing 

retained basis as a single position (code 2002), report all firm commitments to sell six-month or one-year 

Treasury ARM MBS as a single position (code 2066), and so forth. 

Report commitments to purchase or sell mortgage loans and commitments to purchase or sell MBS 

separately because the contract codes are different. 

Column 1: Contract Code 

Report the contract code for the position in Column 1. Refer to Appendix B for the list of codes. 

Column 2: Notional Amount 

Report the dollar amount of commitments outstanding in Column 2. 

Column 3: Maturity or Fees 

Report in Column 3 the dollar amount (in thousands) of fees, if any, associated with the position. Report 

fees you will pay as a negative value. 

For commitments to originate mortgages include loan origination and loan discount fees that you would 

collect if each loan closed. These fees should include compensation for buy-ups or buy-downs, but not 

other fees collected in the loan origination process, such as application, appraisal, credit, and title fees. 

For commitments to purchase or sell mortgages, report any additional fees, net of costs. 

Column 4: Price/Rate #1 

Report in Column 4 the weighted-average interest rate specified in the commitments. Refer to the 

calculation of the WAC in the general instructions to Schedule CMR. Leave this column blank for 

commitments to purchase or sell mortgage derivative products. 

Column 5: Price/Rate #2 

Report in Column 5 the weighted-average price as a percentage of par, to two decimal places, that you 

will pay or receive on the commitments. For commitments to originate mortgages, report a price of par – 

for instance, 100.00. Leave this column blank for commitments to purchase or sell mortgage derivative 

products. 

Examples: 

Position 1: You have a mandatory delivery commitment with FNMA to sell, on a servicing retained basis, 

$25 million of one-year Treasury ARM loans with a required net yield of 7.5 percent at par. The required 

net yields for mandatory forward sales quoted by FNMA and FHLMC are net of the servicing fee. The 

contract code assigned to these commitments is 2026. You would use the code 2126 if the commitment 

to sell included the servicing of the loan. 

Position 2: You have a commitment to purchase $15 million three-year Treasury ARM MBS with a passthrough rate of 7.70 percent at par. You also have a commitment to purchase $5 million five-year 

Treasury ARM MBS with a pass-through rate of 8.00 percent for 98.00, percent of par. You should 

combine these positions and report them as a single position because they have the same contract code. 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

 

1854 SCHEDULE CMR

Report the positions as follows: 

 [1] [2] [3] [4] [5] 

 Contract 

Code 

Notional 

Amount 

Maturity or 

Fees 

Price/Rate 

#1 

Price/Rate 

#2 

Position 1 2026 25 000 0 7.50 100.00 

Position 2 2048 20 000 0 7.78 99.50 

Optional Commitments to Purchase or Sell Mortgages or MBS 

Optional commitments to purchase mortgages or MBS are contracts that grant the buyer of the option the 

right, but not the obligation, to buy a specified type and amount of mortgages or MBS, with a specified 

WAC for mortgages or pass-through rate for MBS, at a specified price, called the strike price, on a 

specified date, called the expiration date. 

You can hold either a long position in an optional commitment to purchase or sell, having bought the 

option, or hold a short position in an optional commitment to purchase or sell, having sold the option. A 

savings association can have any of four types of positions listed below in an optional commitment on 

mortgages or MBS: 

1. Long the option to purchase the mortgages or MBS. 

2. Long the option to sell the mortgages or MBS. 

3. Short the option to purchase the mortgages or MBS. 

4. Short the option to sell the mortgages or MBS. 

If the contract does not specify both a price and a pass-through rate, you should not report it on Schedule 

CMR. For example, FNMA issues optional delivery commitments where it does not specify the required 

net yield. You should not report such commitments on Schedule CMR. 

Aggregation 

Report each optional commitment to purchase or sell mortgages or MBS as a single position. 

Column 1: Contract Code 

Report the contract code for the position in Column 1. Refer to Appendix B for the list of codes. 

Column 2: Notional Amount 

Report the notional principal amount of the commitment in Column 2. 

Column 3: Maturity or Fees 

Report the number of days until the commitment expires in Column 3. 

Column 4: Price/Rate #1 

Report the coupon rate or the pass-through rate in Column 4. 

Column 5: Price/Rate #2 

Report the strike price as a percentage of par in Column 5. 

Examples: 

Position 1: You have purchased an optional commitment to sell $10 million of five-year balloon 

mortgages with a coupon of seven percent at a price of 98.00, percent of par. The commitment expires in 

45 days. 

Position 2: You have sold an optional commitment to purchase $25 million of 8.5 percent coupon 15-

year fixed-rate mortgages for par in 20 days. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

 

 SCHEDULE CMR 1855 

Report the positions as follows: 

 [1] [2] [3] [4] [5] 

 Contract 

Code 

Notional 

Amount 

Maturity or 

Fees 

Price/Rate 

#1 

Price/Rate 

#2 

Position 1 3030 10 000 45 7.00 98.00 

Position 2 3052 25 000 20 8.50 100.00 

Commitments to Purchase, Originate, or Sell Nonmortgage Financial 

Assets and Liabilities 

Commitments to purchase, originate, or sell nonmortgage financial assets and liabilities are agreements 

to purchase or sell financial assets and liabilities other than mortgages or MBS, for a specified fixed price, 

on a specified date. You should report commitments to purchase, originate, or sell mortgages or MBS 

according to the instructions for those commitments above. 

You should not report repurchase and resell agreements as OBS contracts. You should report such 

agreements as the underlying on-balance-sheet asset or liability that they represent. Report on CMR461 

or CMR476 through CMR478, and CMR675 through CMR715, respectively. 

Aggregation 

Report commitments to purchase or sell nonmortgage financial assets and liabilities that you can combine 

under the same contract code as a single position. See Appendix B for codes. For example, report all 

commitments to purchase nonmortgage financial assets (code 4002) as a single position, report all 

commitments to sell core deposits (code 4024) as a single position, and so forth. 

Column 1: Contract Code 

Report the contract code for the position in Column 1. Refer to Appendix B for the list of codes. 

Column 2: Notional Amount 

Report the dollar amount of the commitments outstanding in Column 2. 

Column 3: Maturity or Fees 

If the position consists of commitments on nonmortgage financial assets, report the weighted-average 

maturity (WAM) of the assets in months in Column 3. If the position consists of commitments on core 

deposits, leave Column 3 blank. If the position consists of commitments on other liabilities, report the 

WAM in months in Column 3. Refer to the calculation of the WARM in the general instructions to 

Schedule CMR. 

Column 4: Price/Rate #1 

If the position consists of commitments on nonmortgage financial assets, report the WAC of the assets in 

Column 4. If the position consists of commitments on either core deposits or other liabilities, report the 

weighted-average interest rate paid on the liabilities in Column 4. Refer to the calculation of the WAC in 

the general instructions to Schedule CMR. 

Column 5: Price/Rate #2 

Report in Column 5 the weighted-average price as a percentage of par you will receive on the 

instruments underlying the commitment. Refer to the calculation of the WAC in the general instructions to 

Schedule CMR. 

Examples: 

Position 1: You have agreed to sell $500,000 of ten-year Treasury securities with a WAC of 9.23 

percent at a weighted-average price of 95.39, percent of par. 

Positions 2 and 3: You have agreed to sell four branches and the liabilities maintained at those 

branches. The branches contain $16 million in core deposits that pay a weighted-average rate of 6.4 

percent, and $44 million in other liabilities that pay a WAC of 7.5 percent and have a WARM of 26 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

 

1856 SCHEDULE CMR

months. The agreed upon premium is 2 percent, net of any assets that will change hands in this 

transaction. The seller pays $58.8 million, or 98 percent of par, to the buyer for assuming $60 million of 

liabilities. 

Report the positions as follows: 

 [1] [2] [3] [4] [5] 

 Contract 

Code 

Notional 

Amount 

Maturity or 

Fees 

Price/Rate 

#1 

Price/Rate 

#2 

Position 1 4022 500 120 9.23 95.39 

Position 2 4024 16 000 6.40 98.00 

Position 3 4026 44 000 26 7.50 98.00 

Interest-Rate Swaps 

Interest-rate swaps are agreements to exchange streams of coupon payments based on a notional 

principal amount. One or both of the coupon payment streams varies with a specified interest rate index. 

Aggregation 

Report each swap as a separate position. 

Column 1: Contract Code 

Report the contract code for the position in Column 1. Refer to Appendix B for the list of codes. 

Column 2: Notional Amount 

Report the notional principal amount of the swap in Column 2. 

Column 3: Maturity or Fees 

Report maturity information for both current and forward swaps in Column 3 using the same format. First, 

report the effective date of the swap, the date that interest for the first payment of the swap agreement 

begins to accrue, in YYMM format. Second, report the maturity date, the date of the last payment of the 

swap agreement, also in YYMM format. 

For example, for a current swap effective February 21, 1991, and maturing February 21, 2002, report 

91020202 in Column 3. For a forward swap effective February 21, 2000, and maturing February 21, 2010, 

report 00021002 in Column 3. 

For a mortgage swap, report the maturity date of the underlying pool of mortgages, not the date the 

agreement terminates. 

Column 4: Price/Rate #1 

For fixed-for-floating swaps, report in Column 4 the fixed rate that you either receive or pay. 

For basis swaps, report in Column 4 the margin added to, or subtracted from, the index being received as 

a positive or negative number, respectively. If there is no margin, leave Column 4 blank. 

For mortgage swaps, report in Column 4 the mortgage coupon rate or the pass-through rate that you 

either receive or pay. 

Column 5: Price/Rate #2 

For fixed-for-floating swaps, report in Column 5 the margin added to or subtracted from the index as a 

positive or negative number, respectively. If there is no margin, leave Column 5 blank. 

For basis swaps, report in Column 5 the margin added to or subtracted from the index being paid as a 

positive or negative number, respectively. If there is no margin, leave Column 5 blank. 

For mortgage swaps, in Column 5 report the margin as a positive number if it is added to the index that 

you receive. Report the margin as a negative number if it is added to the index that you pay. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

 

 SCHEDULE CMR 1857 

Examples: 

Position 1: You pay a fixed rate of 9.20 percent and receive three-month LIBOR on a $25 million swap 

that went into effect in March 1990 and expires in March 2002. 

Position 2: You will pay a fixed rate of 9.00 percent and receive six-month LIBOR on a $10 million 

forward swap that begins in December 1994 and ends in December 2003. 

Position 3: You purchased a $25 million swaption that would begin, if exercised, in June 1993 and 

mature in June 2004. The swaption grants the right to pay a fixed rate of 9.5 percent and receive threemonth LIBOR. 

Position 4: You pay one-month LIBOR and receive COFI on a $15 million swap that went into effect in 

December 1993 and expires in June 2005. 

Position 5: You pay one-month LIBOR plus 0.30 percent and receive a mortgage coupon of 10 percent 

under a mortgage swap that went into effect September 1990. The notional principal amount of the swap 

is $8,235,000 as of the report date. The underlying pool of mortgages matures in September 2015. 

You would report the positions as follows: 

 [1] [2] [3] [4] [5] 

 Contract 

Code 

Notional 

Amount 

Maturity or 

Fees 

Price/Rate 

#1 

Price/Rate 

#2 

Position 1 5004 25 000 90030203 9.20 

Position 2 5006 10 000 94120312 9.00 

Position 3 5104 25 000 93060406 9.50 

Position 4 5062 15 000 93120506 

Position 5 5072 8 235 90091509 10.00 0.30 

Interest-Rate Caps 

An interest-rate cap is an option contract that compensates the holder of the cap when a specified 

interest-rate index increases above a specified rate (called the cap rate or strike rate). The party that has 

purchased the cap is long the cap; while the party that has sold the cap is short the cap. 

An interest-rate corridor is an agreement that combines a short position in an interest-rate cap and a long 

position in an interest-rate cap. To report corridors, report the two component cap positions separately. 

An interest-rate collar is an agreement that combines an interest-rate cap position and an interest-rate 

floor position. To report collars, report the component cap and floor positions separately. The instructions 

for reporting interest-rate floors, as well as an example of reporting a collar, are below. 

Aggregation 

Report each interest-rate cap as a separate position. 

Column 1: Contract Code 

Report the contract code for the position in Column 1. Refer to Appendix B for the list of codes. 

Column 2: Notional Amount 

Report the notional principal amount of the cap in Column 2. 

Column 3: Maturity or Fees 

Report maturity information for both current and forward caps in Column 3 using the same format. First, 

report the effective date of the cap (the first exercise date of the cap) in YYMM format. Second, report the 

maturity date (the month of the last payment date of the cap), also in YYMM format. 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

 

1858 SCHEDULE CMR

For example, for a cap with its first exercise date on February 21, 1991, and with its last payment date on 

February 21, 2001, report 91020102 in Column 3. For a forward cap with first exercise date on February 

21, 2000, and last payment date on February 21, 2010, report 00021002 in Column 3. 

Column 4: Price/Rate #1 

Report the cap rate, or strike rate, in Column 4. 

Column 5: Price/Rate #2 

Leave Column 5 blank. 

Examples: 

Position 1: You are long a $10 million cap based on six-month LIBOR with a cap rate of 8.25 percent. 

The first exercise date was in November 1993, and it expires in November 1998. 

Position 2: You are long a $25 million forward cap based on COFI with a cap rate of 8.5 percent. The 

cap’s first exercise date will be in February 1995, and it expires in February 1999. 

You would report the positions as follows: 

 [1] [2] [3] [4] [5] 

 Contract 

Code 

Notional 

Amount 

Maturity or 

Fees 

Price/Rate 

#1 

Price/Rate 

#2 

Position 1 6006 10 000 93119811 8.25 

Position 2 6020 25 000 95029902 8.50 

Interest-Rate Floors 

An interest-rate floor is an option contract that compensates the holder of the floor when a specified 

interest-rate index decreases below a specified rate – called the floor rate or strike rate. The party that 

purchased the floor is long the floor, while the party that sold the floor is short the floor. 

Interest-rate collars are agreements that combine interest-rate floor and interest-rate cap positions. The 

instructions for reporting interest-rate caps are above. To report collars, report the component cap and 

floor positions separately. For an illustration, see the second example below. 

Aggregation 

Report each interest-rate floor as a separate position. 

Column 1: Contract Code 

Report the contract code for the position in Column 1. Refer to Appendix B for the list of codes. 

Column 2: Notional Amount 

Report the notional principal amount of the floor in Column 2. 

Column 3: Maturity or Fees 

Report maturity information for both current and forward floors in Column 3 using the same format. First, 

report the effective date of the floor (the first exercise date of the floor) in YYMM format. Second, report 

the maturity date (the month of the last payment date of the floor), also in YYMM format. 

For example, for a floor with its first exercise date on February 21, 1991, and with its last payment date on 

February 21, 2001, report 91020102 in Column 3. For a forward floor with first exercise date on February 

21, 2000, and last payment date on February 21, 2010, report 00021002 in column 3. 

Column 4: Price/Rate #1 

Report the floor rate, or strike rate, in Column 4. 

Column 5: Price/Rate #2 

Leave Column 5 blank. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

 

 SCHEDULE CMR 1859 

Examples: 

Position 1: You are short (sold) a $10 million floor based on the three-month Treasury rate with a floor 

rate of 6 percent. The first exercise date was in October 1993 and it expires in October 1998. 

Positions 2 and 3: You entered into a $25 million interest-rate collar where you are long a three-month 

LIBOR cap at a strike rate of 8 percent and short a three-month LIBOR floor at a strike rate of five 

percent. The first exercise date was in September 1989 and it expires in September 1999. Report the 

cap and floor components of the collar separately in positions 2 and 3 below. 

You would report the positions as follows: 

 [1] [2] [3] [4] [5] 

 Contract 

Code 

Notional 

Amount 

Maturity or 

Fees 

Price/Rate 

#1 

Price/Rate 

#2 

Position 1 7038 10 000 93109810 6.00 

Position 2 6004 25 000 89099909 8.00 

Position 3 7034 25 000 89099909 5.00 

Futures 

A futures contract is an agreement to buy or sell a specified commodity or financial instrument for a 

specified price on a specified date. The party that agrees to purchase the instrument is long the futures 

contract and the party that agrees to sell the instrument is short the contract. 

Futures are exchange-traded contracts. You should not report forward contracts, traded over-the-counter, 

as futures. Estimate the market value of the forward contracts in the seven interest rate scenarios 

described in the section Reporting of Market Value Estimates as code 500 in Supplemental Reporting 

of Market Value Estimates. 

Aggregation 

Report futures positions with the same contract code and same delivery date as a single position. See 

Appendix B for codes. For example, report short positions in Eurodollar futures (code 8046) deliverable in 

March separately from those with a June delivery date. 

Column 1: Contract Code 

Report the contract code for the position in Column 1. Refer to Appendix B for the list of codes. 

Column 2: Notional Amount 

Report the notional principal amount of the futures position in Column 2. 

Column 3: Maturity or Fees 

Report the delivery date for the futures position in Column 3 in YYMM format. 

Column 4: Price/Rate #1 

Leave Column 4 blank. 

Column 5: Price/Rate #2 

Leave Column 5 blank. 

Example: 

You have the following short futures positions: 

1. Eurodollar futures contracts – $1 million notional principal per contract, expiring in March 1996. 

2. Eurodollar futures contracts expiring in June 1996. 

3. Three-month Treasury bill contracts – $1 million notional principal per contract, expiring in March 

1996. 
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1860 SCHEDULE CMR

You would report the positions as follows: 

 [1] [2] [3] [4] [5] 

 Contract 

Code 

Notional 

Amount 

Maturity or 

Fees 

Price/Rate 

#1 

Price/Rate 

#2 

Position 1 8046 10 000 9603 

Position 2 8046 15 000 9606 

Position 3 8034 12 000 9603 

Options on Futures 

A call option on a futures contract is a contract that grants the buyer of the option the right, but not the 

obligation, to acquire a long position in a futures contract at a specified price, the strike price, on a 

specified date, the expiration date. 

A put option on a futures contract is a contract that grants the buyer the right, but not the obligation, to 

acquire a short position in a futures contract at a specified price on a specified date. 

 You can hold either a long position in a call option or a put option, having bought the option, or a short 

position in a call option or a put option, having sold the option. Therefore, you can have any of four 

positions in an option on a futures contract: 

1. Long a call option. 

2. Long a put option. 

3. Short a call option. 

4. Short a put option. 

Aggregation 

Report as a single position all options on futures contracts with the same contract code, strike price, and 

expiration date. You must report options on futures positions separately if they have different expiration 

dates. 

Column 1: Contract Code 

Report the contract code for the position in Column 1. Refer to Appendix B for the list of codes. 

Column 2: Notional Amount 

Report the notional principal amount of the option position in Column 2. 

Column 3: Maturity or Fees 

Report the expiration date of the option position in Column 3 in YYMM format. 

Column 4: Price/Rate #1 

Report the strike price of the option position in Column 4. 

Column 5: Price/Rate #2 

Leave Column 5 blank. 

Examples: 

Positions 1 and 2: You are long 10 put options on Eurodollar futures, $1 million notional principal value 

per option contract, at a strike price of 93.00 expiring in March 1995 and 15 put options on Eurodollar 

futures contracts, also at a strike price of 93.00, expiring in June 1995. 

Position 3: You are short 50 call options on Treasury bond futures contracts, $100,000 notional principal 

value per contract, at a strike price of 102.00 expiring in March 1996. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

 

 SCHEDULE CMR 1861 

You would report the positions as follows: 

 [1] [2] [3] [4] [5] 

 Contract 

Code 

Notional 

Amount 

Maturity or 

Fees 

Price/Rate 

#1 

Price/Rate 

#2 

Position 1 9040 10 000 9503 93.00 

Position 2 9040 15 000 9506 93.00 

Position 3 9060 5 000 9603 102.00 

Construction Loans-in-Process (LIP) 

Construction LIP includes the portion of construction loans that you have closed but have not yet 

disbursed the proceeds. The funded portion of construction loans is included in the relevant on-balancesheet asset section. Report the undisbursed LIP for both loans reported as construction-only loans and 

construction-permanent loans reported as single-family, multifamily, or nonresidential loans. 

Report construction LIP where you have specified an interest rate. Include fixed-rate loans and all 

adjustable-rate loans that reprice less often than monthly. You should not report agreements where you 

determine the rate at the time when you disburse the funds. 

If the agreement contains a commitment to provide a mortgage loan upon completion of the construction, 

report the mortgage commitment as an optional or firm, as appropriate, commitment to originate a 

mortgage in the corresponding sections above. For construction-permanent loans where the permanent 

rate has been set, use the construction phase as the WARM for the LIP. Report a firm commitment to 

originate a fixed-rate mortgage for the permanent portion of the loan. 

Aggregation 

Report fixed-rate construction LIP separately from adjustable-rate construction LIP. 

Column 1: Contract Code 

Enter the contract code for the position in column 1. Refer to Appendix B for the list of codes. 

Column 2: Notional Amount 

Report in Column 2 the amount of undisbursed funds, that portion of the commitments that have not been 

drawn down. 

Column 3: Maturity or Fees 

For fixed-rate construction-only LIP, report an estimate of the weighted-average term to maturity, in 

months. For construction-permanent loans, report an estimate of the term to completion of the 

construction phase only; do not include the maturity of the mortgage. For adjustable-rate loans, 

use the number of months until the next reset to calculate the WARM. (Note: loans that reset more often 

than monthly do not need to be reported on this line). 

Column 4: Price/Rate #1 

Report the weighted-average interest rate on the loans in Column 4. Refer to the calculation of the WAC 

in the general instructions to Schedule CMR. 

Column 5: Price/Rate #2 

Leave Column 5 blank. 

Example: 

You have two fixed-rate construction loan commitments outstanding. On the first commitment, a $1 million 

loan with a one-year term that you expect to disburse in approximately four months, for a term to maturity 

of 16 months, at an interest rate of 10 percent. On the second, a $2 million loan with an 18-month term 

you expect to disburse in approximately two months, for a term to maturity of 20 months, at an interest 

rate of 11 percent. 

You would report the position as follows: 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

 

1862 SCHEDULE CMR

 [1] [2] [3] [4] [5] 

 Contract 

Code 

Notional 

Amount 

Maturity or 

Fees 

Price/Rate 

#1 

Price/Rate 

#2 

Position 1 9502 3 000 19 10.67 

SUPPLEMENTAL REPORTING FOR ASSETS AND 

LIABILITIES 

INTRODUCTION 

This section allows you to report selected assets and liabilities at a more disaggregate level than you 

report in the Assets and Liabilities sections of Schedule CMR. For example, if you have adjustable-rate 

second mortgage loans tied to different indices, you may report the balances tied to each rate index 

separately. We will derive the interest rate risk exposure estimates using this detailed information instead 

of the more aggregated data reported for those assets in the other sections. This results in more accurate 

market value estimates for the instruments on the supplemental form. 

Supplemental reporting is available for the following: 

Assets (Optional Reporting) 

1. Certain types of loans. 

2. Other investment securities of the types on CMR473 and CMR479. 

Liabilities (Required Reporting) 

1. VRFM liabilities. 

Supplemental reporting is also available for OBS positions, as described below. 

Each line on the supplemental reporting form for assets and liabilities consists of a balance with a given 

asset or liability code, a rate index code, and information describing those balances – margin, coupon, 

remaining maturity, etc. Number all lines used to report supplemental information sequentially, with the 

first line on the form receiving the number 1 in the column titled Entry #. We describe all other entries in 

detail below. If there are insufficient lines on the Supplemental Reporting page to report the different 

combinations of instrument and index codes, use as many continuation pages as necessary. 

SUPPLEMENTAL REPORTING FOR ASSETS (OPTIONAL) 

You may report three broad classes of assets on the Supplemental Reporting form: 

1. The following types of loans: 

a. Adjustable- and fixed-rate multifamily and nonresidential mortgage loans and securities. 

b. Adjustable-rate construction and land loans. 

c. Adjustable-rate second mortgages. 

d. Adjustable-rate commercial loans. 

e. Adjustable- and fixed-rate consumer loans. 

2. Investments in securities of the types on CMR479, Municipal securities, mortgage-backed bonds, 

corporate securities, commercial paper. 

Besides a column for the entry number, there are nine input columns on the Supplemental Reporting 

form. You will not always use all nine columns, depending on the asset. Below we describe the reporting 

for each column for each of the three classes of assets. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

 

 SCHEDULE CMR 1863 

Loans 

Column 1: Asset Code 

Loans where OTS permits supplemental reporting are in Appendix C by Schedule CMR cell number. For 

each CMR cell number, you may use one or more codes to represent types of loans in that cell. For 

example, CMR335 and CMR336, Adjustable-rate and Fixed-rate Consumer Loans, respectively, may 

each be disaggregated into seven asset codes that correspond to different types of consumer loans. For 

example, you can report auto loans by entering asset code 183 in column 1 of the first line; education 

loans by entering asset code 182 on the next line; etc. Other CMR cell numbers – construction and land 

loans, second mortgages, and commercial loans – have only one code each. For those assets, balances 

cannot be disaggregated further by loan type, only by index code. See the description of column 2 below. 

Column 2: Rate Index Code 

From the list of Interest Rate Index Codes in Appendix A, report the code representing the index the 

reported loan uses. For example, you could report adjustable-rate auto loans tied to the prime rate with 

an asset code of 183 in column 1 and an index code of 830 in column 2. You could report auto loans tied 

to the one-year Treasury rate on a separate line with an asset code of 183 and an index code of 312. 

Column 3: Balance 

Report the outstanding balance of the loan in column 3. 

Balances reported for asset codes within a given CMR cell number must sum to the balance reported in 

that cell in the Assets sections of Schedule CMR. For example, balances on the Supplemental Reporting 

form with asset codes 180 through 189, various types of consumer loans, and index codes designating 

adjustable-rate loans, must sum to the balance reported for total adjustable-rate consumer loans on 

CMR335. Likewise, the balances with asset codes 180 through 189 and an index code designating fixedrate loans, must sum to CMR336, total fixed-rate consumer loans. 

Column 4: Margin/WAC 

If the entry represents an adjustable-rate loan, report the weighted-average margin, in basis points, in 

column 4. If it is a fixed-rate loan, report the WAC, in basis points, in column 4. Note that this differs from 

treatment in the Assets section of Schedule CMR, where the WAC is in percentage points. Report the 

net margin or the pass-through rate for adjustable-rate and fixed-rate securities, respectively. We 

describe how to calculate the weighted-average margin and the WAC in the general instructions to 

Schedule CMR. 

Column 5: Rate Reset Frequency 

If the loan is adjustable-rate, report the weighted-average frequency where the coupon rate resets, in 

months, in column 5. You should calculate the weighted-average frequency of the coupon reset in the 

same manner as the WARM, as described in the general instructions to Schedule CMR. However, 

instead of months to maturity, use months between coupon reset dates. If the loan is fixed-rate, leave 

column 5 blank. 

Column 6: Months to Full Amortization 

Leave this column blank for all assets except multifamily and nonresidential balloon mortgage loans and 

securities – asset codes 100, 105, 106, 107, 108, and 109. For those assets, report the weighted-average 

number of months remaining until the balloon mortgage would fully amortize. Calculate this item in the 

same manner as described for WARM, in the general instructions to Schedule CMR. However, instead of 

months to maturity, use months to full amortization. 

Column 7: Remaining Maturity 

Report the WARM, in months, in column 7. Calculate the WARM as described in the general instructions 

to Schedule CMR. For balloon mortgages, use the number of months until payment of the balloon. 

Column 8: Distance to Lifetime Cap 

Use this column only for adjustable-rate multifamily and nonresidential mortgage loans and securities, 

asset codes 100 through 119. For all other types of loans, leave it blank. 

For each asset code, calculate the difference between the WAC and the weighted-average lifetime cap 

for the loans or securities in that category. Report the result in column 8, in basis points. For example, for 
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1864 SCHEDULE CMR

a WAC of 10 percent and a cap of 12 percent, report a value of 200 basis points. Calculate the WAC as 

described in the general instructions to Schedule CMR. Calculate the weighted-average lifetime cap the 

same way. For loans and securities that have no lifetime caps, report 9999 in this column. 

Column 9: Distance to Lifetime Floor 

Use this column only for adjustable-rate multifamily and nonresidential mortgage loans and securities, 

asset codes 100 through 119. For all other types of loans, leave it blank. 

For each asset code, calculate the difference between the current WAC and the weighted-average 

lifetime floor for the loans in that category. Report the result in column 9, in basis points. For example, for 

a WAC of 10 percent and a floor of 8 percent, report a value of 200 basis points. For loans and securities 

that have no lifetime floor, report 9999 in this column. 

Other Investment Securities 

You can provide additional information about securities on CMR473 and CMR479. You may distinguish 

three different types of instruments – fixed coupon, floating-rate, and inverse floating-rate securities – 

using the codes listed in the appropriate sections of Appendix C. 

Column 1: Asset Code 

Asset codes for reporting supplemental information are in Appendix C. For CMR473, Government and 

Agency Securities including SBA securities, applicable asset codes are 300 through 304. For CMR479, 

Other Securities – Munis, Mortgage-Backed Bonds, Corporate Securities, Commercial Paper, Etc. – 

applicable codes are 120, 122, and 124. 

Column 2: Rate Index Code 

From the list of Interest Rate Index Codes in Appendix A, report the code representing the index the 

security uses. Use code 900 if the security has a fixed coupon. 

Column 3: Balance 

For each type of security, report the outstanding balance of all securities of that type on CMR473 or 

CMR479. The total outstanding balance on the Supplemental Reporting section with asset codes 300 

through 304 must equal the amount on CMR473. In addition, the total balance with asset codes 120, 122, 

and 124 must equal the amount on CMR479. 

Column 4: Margin/WAC 

If the entry represents a floating-rate security, report the margin, in basis points, in column 4. If the 

security is a fixed-coupon security, report the coupon, in basis points, in column 4. Note that this differs 

from treatment in the Assets section of Schedule CMR, where the coupon is in percentage points. 

Column 5: Rate Reset Frequency 

If the balance reported in column 3 is floating-rate or inverse floating-rate, report the frequency that the 

coupon rate resets, in months, in column 5. If the balance reported in column 3 is fixed-coupon, leave 

column 5 blank. 

Column 6: 

Leave this column blank. 

Column 7: Remaining Maturity 

Report the remaining maturity, in months, in column 7. 

Column 8: 

Use this column only for reporting the benchmark rate (in basis points) of inverse floating-rate securities. 

For example, if you derive the coupon of such a security using the formula 17.5 minus six-month LIBOR, 

the benchmark rate is 17.5, and you should report it as 1750 basis points in column 8. For all other types 

of securities, leave this column blank. 
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Column 9: 

Leave this column blank. 

SUPPLEMENTAL REPORTING FOR LIABILITIES (REQUIRED) 

Report variable-rate, fixed-maturity liabilities in the section, Supplemental Reporting for Assets and 

Liabilities. 

Include liabilities of the following types that have contractually stated maturities and indexed rates: 

1. Certificates of deposit. 

2. FHLB advances. 

3. Commercial bank loans. 

4. Repurchase agreements. 

5. Retail repurchase agreements. 

6. Commercial paper issued. 

7. Subordinated debt. 

8. Redeemable preferred stock. 

9. All other borrowings. 

Do not include: 

1. Mortgage collateralized securities. Report on Supplemental Reporting of Market Value Estimates. 

2. Structured borrowings. Report on Supplemental Reporting of Market Value Estimates. 

General Instructions: 

Report information about your VRFM liabilities as follows: 

Assign liability and index codes to each VRFM liability that you issue, using the lists of codes in 

Appendix D and Appendix A, respectively. For example, each variable-rate FHLB advance indexed to 

the Fed Funds rate would have the liability code 220, the code for FHLB advances, and the index 

code 800 (the code that shows that the interest rate on the advances uses the Fed Funds rate as an 

index). Report each VRFM liability you issue using either one of two ways: 

A. Individually – This option produces a very accurate valuation, but it might require the 

reporting of a large amount of data. 

B. Aggregated with similar liabilities – This option produces somewhat less accurate 

valuations, but it requires the reporting of a smaller amount of data. 

1. If you choose the individual option, supply the required information – liability code, index code, 

balance, margin, rate reset frequency, months to reset, and remaining maturity – for each VRFM 

liability issued that you report individually. For example, you would report each FHLB advance 

described in the example above individually. 

2. If you choose the aggregated option, report VRFM liabilities on the Supplemental Reporting Form 

aggregated by liability and index code. Thus, you would report all VRFM liabilities that have the same 

liability and index code aggregated as a single position. For example, you would report all FHLB 

advances described in the preceding example together as a single position regardless of differences 

in margin, rate reset frequency, months to next reset, or remaining maturity. 

Entry Number 

Number all lines used to report supplemental information, starting with the number 1. 
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1866 SCHEDULE CMR

Column 1: Liability Code 

The liability code is a three-digit code that denotes the type of liability reported. The codes are included in 

Appendix D – List of Codes Used for Supplemental Reporting. 

Column 2: Rate Index Code 

The index code is a three-digit code that describes the index of the VRFM liability reported. The codes 

are in Appendix A, List of Interest Rate Index Codes. 

Column 3: Balance 

If you choose option A, report the outstanding balance of each individual VRFM liability. If you choose 

option B, report the total outstanding balance of that position. In either case, do not report the carrying 

values. 

Column 4: Margin in Basis Points 

The margin of a variable rate liability is the amount added to the index rate to derive the coupon rate. If 

you choose option A, report the margin, in basis points, of each individual VRFM liability. 

If you choose option B, report the weighted-average margin for each position. See the general 

instructions to Schedule CMR. 

Column 5: Rate Reset Frequency 

If you choose option A, report the index rate reset frequency, in months, of each individual VRFM liability. 

If you choose option B, calculate the weighted-average rate reset frequency for each position by 

multiplying the reset frequency of each liability expressed in months by the ratio of that liability’s balance 

to the position’s total balance. Calculate the weighted-average rate reset frequency for each position. See 

the general instructions to Schedule CMR. 

Column 6: Months to Next Reset 

If you choose option A, report the number of months until the next index rate reset for each individual 

VRFM liability. 

If you choose option B, calculate the weighted-average months to next reset for each position. To do this, 

multiply the number of months until next reset for each liability by the ratio of that liability’s balance to the 

position’s total balance. Calculate the weighted-average months to next reset for each position. See the 

general instructions to Schedule CMR. Round the weighted-average months to next reset to the nearest 

month. 

Column 7: Remaining Maturity 

If you choose option A, report the remaining maturity, in months, of each individual VRFM liability. 

If you choose option B, calculate the WARM for each position. To do this, multiply the remaining maturity 

of each liability expressed in months by the ratio of that liability’s balance to the position’s total balance. 

Calculate the weighted-average remaining term for each position. See the general instructions to 

Schedule CMR. 

Column 8: 

Leave this column blank for all VRFM liabilities. 

Column 9: 

Leave this column blank for all VRFM liabilities. 

SUPPLEMENTAL REPORTING OF MARKET VALUE 

ESTIMATES 

To calculate the market value of some of the assets, liabilities, and financial derivatives and OBS 

instruments that you hold, we need more information than is feasible to collect on Schedule CMR. This 

section of Schedule CMR collects your own estimates of the market values of certain instruments in each 

of the seven interest rate scenarios shown in the Interest Rate Risk Exposure Report that we produce 
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 SCHEDULE CMR 1867 

each quarter. We combine the estimates you report with the market value estimates calculated by the 

OTS Model to evaluate your exposure to interest rate changes. 

You must report market value estimates if you have the following types of financial instruments: 

1. Financial derivatives and OBS contracts that you cannot identify by a contract code. For instance, 

CMO swaps. 

2. Mortgage-derivative securities. 

3. Complex securities. If you have complex securities, you must report market value estimates for those 

securities. Common types of complex securities include structured securities, such as step-up bonds, 

index-amortizing notes, dual index notes, de-leveraged bonds, range bonds, and inverse floaters. 

4. Structured Borrowings. 

Moreover, you have the option to report market value estimates for collateralized mortgage securities you 

issue and for mortgage-related mutual funds. 

If you report your own estimates for a given type of instrument, you should do so consistently across 

quarters. If you do not report market value estimates, you should leave the cells blank. 

Reporting Guidelines 

When estimating the market values for this section, you should use the same methodology you use in 

your TB 13a analyses. First, calculate the base case market value of each instrument in the current 

interest rate environment. Then calculate market value estimates in the six shocked interest rate 

scenarios – the plus and minus 100, 200, and 300 basis point shocks described in TB 13a – by assuming 

parallel shifts in the term structure of interest rates. In periods of low interest rates, it is possible that the 

simulation of the - 300 interest rate scenario could result in negative interest rates. To avoid this 

possibility, you should set a floor of ten basis points for all interest rates when performing your own 

simulations. 

Assumptions used in the calculations must be reasonable and consistent with the analysis you perform to 

satisfy TB 13a. Your prepayment assumptions should relate reasonably to market consensus in the 

current interest rate scenario. In the six shocked scenarios, prepayment assumptions should reflect 

changes likely to occur in prepayment rates under each interest rate shock. If you perform the valuation 

by estimating the present value of future cash flows, both the discount rates and expected future cash 

flows should reflect the current yield curve or that or similar instruments in the current rate scenario. In the 

shocked scenarios, discount rates and expected future cash flows should reflect likely changes that would 

occur under each shock. 

To evaluate an institution’s market value estimates, OTS examiners will, at a minimum, determine 

whether the institution: 

1. Uses zero-coupon (spot) rates of the appropriate maturities to discount cash flows. 

2. Uses implied forward interest rates to model variable rate cash flows. 

3. Values embedded options using appropriate option valuation methodology, e.g., Black-Scholes 

type formulas, Monte-Carlo simulations, lattice methods, etc. 

Examiners may determine an institution should use more sophisticated measurement techniques to 

address specific supervisory concerns (e.g., high volume and price sensitivity of a group of structured 

advances; the institution’s results may materially misstate the level of risk; a combination of low Postshock NPV Ratio and high Sensitivity Measure; etc.). In any case, the institution should be very familiar 

with the details of the assumptions, term structure, and logic used in performing the measurements. 

Measures obtained from either a third party or from an FHLB originating a structured FHLB advance may, 

therefore, not always be adequate. 

Report the following type of instruments on the Supplemental Reporting of Market Value Estimates. 
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1868 SCHEDULE CMR

Market Value Estimates of Financial Derivatives and Off-BalanceSheet Contracts 

Report an estimate of the market value of financial derivatives and OBS contracts according to the 

instructions for either case 1 or case 2 below. 

Case 1: You hold financial derivatives and OBS contract(s) that do not have contract codes listed in the 

instructions. In such instances, report market value estimates for those contracts, in each of the seven 

interest rate scenarios listed, using contract code 500, from Appendix D, on the Supplemental Reporting 

of Market Value Estimates. 

Case 2: You have more than 16 financial derivatives and OBS contract positions and have chosen to 

provide your own market value estimates of the additional positions instead of reporting them in the 

section, Supplemental Reporting for Financial Derivatives and OBS Positions. See Reporting More Than 

16 OBS Positions in the section Off-Balance-Sheet Contracts. In such instances, you must report the 

estimated aggregate market value of the additional positions in each of the seven interest rate scenarios 

listed on the Supplemental Reporting of Market Value Estimates using contract code 500 from Appendix 

D. 

You may also include estimates of the market value of loan servicing rights other than single-family first 

mortgages; for instance, servicing of commercial real estate, second mortgages, home equity loans, auto 

loans, credit cards, etc. 

Market Value Estimates of Mortgage Derivative Securities 

Reporting Information: Report the estimated aggregate market value of mortgage-derivative securities 

in each of the seven interest rate scenarios. This is in addition to the general requirement that you report 

the recorded investment of these securities on CMR351 through CMR376 as described in MortgageDerivative Securities in the Assets section. 

You must report the market value of all CMOs, residuals, stripped MBS, and CMO swaps under the seven 

interest rate scenarios on the Supplemental Reporting of Market Value Estimates using asset code 123 

found in Appendix D. In valuing floating-rate CMOs, on CMR351 and CMR352, you should use a 

methodology that accomplishes the following: 

1. Values the cap and floor of the floater. 

2. Discounts cash flows using the zero-coupon Treasury curve and a spread to the curve. 

CEO Memo 55, dated April 30, 1996 contains a detailed description of a methodology that incorporates 

these two requirements. The memo is available on OTS’s web site, www.ots.treas.gov. 

Use of Information: When calculating your Interest Rate Risk Report, the OTS Model will use market 

value estimates of mortgage derivatives if you report them. If you have such derivatives but do not report 

market value estimates, the OTS Model will estimate market values using values of similar instruments as 

proxies. 

Market Value Estimates of Complex Securities 

Reporting Information: If you report any complex securities you must report the estimated aggregate 

market value of those securities in each of the seven interest rate scenarios using contract code 121 from 

Appendix D. 

Use of Information: When producing your Interest Rate Risk Exposure Report, the OTS Model will 

include in NPV the market value estimates of these securities. 

Market Value Estimates of Structured Borrowings 

For the purpose of these instructions, structured borrowings include borrowings and Federal Home Loan 

Bank (FHLB) advances with embedded options or derivative-like features where the advance’s coupon, 
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 SCHEDULE CMR 1869 

average life, and redemption value are dependent on a reference rate, an index, or a formula. Structured 

borrowings include, but are not limited to, putable and callable advances, variable rate advances with 

embedded caps, floors, or collars, step-up variable rate advances and amortizing advances. The amounts 

you enter in the rate shock scenarios are the estimated market values of the contract after the rate 

change. See Appendix D, codes 280 through 290, for a detailed description of structured borrowings 

whose market value estimates you report on Supplemental Reporting of Market Value Estimates. 

The important contractual terms used in classifying these positions are 1) who owns (has the right to 

exercise) the option, and 2) the type of option. The type of option is classified using standard option 

terminology, i.e., the owner of a call has the right to buy at the exercise price, and the owner of a put has 

the right to sell at the exercise price. Standard option terminology is not always consistent with the 

terminology used in marketing these instruments. 

For example, with a putable advance, an FBLB effectively purchases a put option from the borrowing 

member. This put option provides the FHLB with the right to terminate the advance and offer alternative 

credit on new terms if interest rates increase. An advance with these terms would have position code 280. 

The terminology on these products may be an issue since some FHLBs call putable advances putable 

advances, and other FHLBs call them callable advances. From the perspective of standard option 

terminology callable is not the proper term for this instrument, since the FHLB has the right to sell (put) 

the advance back to the member when interest rates increase and the value of the debt has fallen. 

A callable advance in standard option terminology allows the member to prepay the advance. The 

position code for this contract is 282. If the advance allowed the FHLB to convert the advance from fixed 

to floating rate, the advance would be termed a convertible advance and would have position code 281. 

A similar, but more complicated advance is the periodic floating rate advance. In this advance the interest 

rate floats by being periodically reset to LIBOR. However, the member effectively sells a floor to the 

FHLB, which limits the reduction in interest payments when LIBOR decreases. The position code for this 

advance is 283. 

Market Value Estimates of Mortgage-Related Mutual Funds (Optional) 

Reporting Information: If you report mortgage-related mutual funds on CMR584, you may use code 

129 from Appendix D to report the estimated aggregate market value estimates of those mutual funds in 

each of the seven interest rate scenarios. 

Use of Information: When producing your Interest Rate Exposure Report, the OTS NPV model will use 

the market value estimate you provide for these mutual funds. 

Market Value Estimates of Collateralized Mortgage Securities Issued 

(Optional) 

Reporting Information: Report only those collateralized mortgage securities issued that you do not 

record as sales. Report information on collateralized mortgage securities issued in two places: one 

mandatory, the other optional: 

1. Report the book value of CMOs and other collateralized mortgage securities issued on CMR785. 

Balances on CMR785 should not be on CMR678 through CMR706. 

2. At your option, you may use code 210 to report your estimate of the value of the collateralized 

mortgage securities issued, in each of seven interest rate scenarios listed on the Supplemental 

Reporting of Market Value Estimates. 

Reporting Guidelines 

Report positions in the Supplemental Reporting of Market Value Estimates as follows: 

Column 1: Entry Number 

Number all lines used to report supplemental market value information, starting with the number 1. 
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1870 SCHEDULE CMR

Column 2: Position Code 

The position code is a 3-digit code that denotes the type of instrument reported. The codes are included 

in Appendix D. 

Column 3: Balance 

Report the outstanding balance for each position whose market value estimates are reported in Column 3 

through Column 9. For zero-coupon instruments, report the recorded investment, which is the amortized 

value of the investment. 

Column 4 through Column 10: Estimated Market Value After Specified Rate Shock 

Report the estimate of the market value in each of the following interest rates scenarios: -300 basis 

points, -200bp, -100bp, No Change, +100bp, +200bp, +300bp, respectively. 

SUPPLEMENTAL REPORTING FOR DERIVATIVES AND OFFBALANCE-SHEET POSITIONS 

In this section, you may report supplemental information about OBS contracts as described in Reporting 

More Than 16 OBS Positions in the section Off-Balance-Sheet Contracts. If you have more than 16 OBS 

positions, you may report those positions in the same manner that you reported the initial 16 positions on 

the continuation page Supplemental Reporting for Financial Derivatives and OBS Positions. 

To report positions using supplemental pages, number the positions sequentially in the column Entry #,

beginning with number 1 for the first position on the first supplemental page. The same instructions in the 

section Off-Balance-Sheet Contracts used to report the initial 16 positions apply. Use as many 

continuation pages as necessary to report the remaining positions. 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

GLOSSARY

Throughout these instructions, you and your refers to the reporting savings association and its 

consolidated subsidiaries; we and our refers to the Office of Thrift Supervision. 

We use this glossary to explain terms that we use in connection with the Thrift Financial Report. We have 

neither officially approved nor sanctioned the definitions. They are not legal definitions and you should 

not use them to interpret or define provisions of our regulations or other official documents. A more 

extensive glossary of financial terms is available on the OTS web site. Also refer to the glossary in the 

OTS Trust and Asset Management Handbook. 

 a 

Above Par (Value) 

A higher dollar amount than the face value, or par, of a security. Above par occurs when a security sells 

at a premium – for more than par or face value. The premium is the difference between the face value 

and the market price. 

Accelerated Mortgage Amortization 

(1) The restructuring of an existing mortgage loan by increasing the monthly payment to pay off the loan 

in a shorter time than the original maturity. (2) Prepayment of loan principal. 

Acceleration Clause 

A clause commonly included in mortgages and bonds, it gives the holder the right to demand that the 

borrower pay the entire outstanding balance in the event of default or other breach of contract. 

Accounts Payable 

Short-term liabilities incurred and amounts recorded on the books of a company or individual that are 

owed to a creditor for previously purchased merchandise or services rendered. 

Accounts Receivable 

Amounts recorded as assets on the books of a company or individual that are due for merchandise sold 

or services rendered. 

Accretion 

Addition to income resulting from gradual, periodic reduction of deferred income. 

Accrual Basis 

(1) The basis of accounting under which revenues are recorded when earned and expenditures are 

recorded as soon as they result in liabilities for benefit received, notwithstanding that the receipt of the 

revenue or the payment of the expenditure may take place, in whole or in part, in another accounting 

 GLOSSARY 2001 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

period. (2) Opposite of cash basis accounting. The accrual basis of accounting must be used in the 

preparation of the Thrift Financial Report. 

Accrued Dividend 

A dividend declared by the Board of Directors and considered to be earned and payable but not yet paid 

on stock or other instruments of ownership of a business. 

Accrued Expense 

Costs incurred during an accounting period but not paid. 

Accrued Interest 

Interest earned, but not received or credited, for the period of time that has elapsed since interest was 

last received. 

Actual Thrift Investment Percentage (ATIP) 

A ratio whose numerator is housing-related investments, called qualified thrift investments, and whose 

denominator is portfolio assets. The ratio is used to determine whether a savings association meets the 

qualified thrift lender (QTL) test. Savings associations may elect to use the Internal Revenue Service tax 

code Domestic Building and Loan Association (DBLA) test rather than the QTL test. 

ADC 

Acquisition, development, and/or construction. 

Add-on Interest 

The amount of interest the borrower will pay during the term of the loan that is added to the principal of 

the loan to determine the face amount of the note. The borrower signs a note promising to repay the face 

amount (principal plus interest), although only the principal is disbursed to the borrower. Since the 

interest is not yet earned at the date of closing, a contra-account to the loan is set up representing the 

unearned interest. This contra-account is reduced monthly and credited to interest income until at the 

time of maturity the contra-account is zero and the full principal is due. Report loans with add-on interest 

net of the unearned interest in Schedule SC. See Discount Loan. 

Adjustable Rate 

An asset or liability repriced (rate adjusted) periodically during its life according to a predetermined 

formula or index. The interest rate is automatically adjusted at stated intervals. See Adjustable-Rate 

Mortgage, Floating-Rate Securities, and Floating-Rate Tranches. 

Adjustable-Rate Mortgage (ARM) 

A loan with an interest rate that is periodically adjusted, moving higher or lower in the same ratio as a 

preselected index, such as Treasury bill rates. ARM loans may limit interest rate increases, caps, within a 

given time period and over the life of the loan, and may limit the frequency of interest rate adjustments. 

ARM loans may initially have below-market interest rates, teaser rates, in return for the borrower sharing 

the risk that interest rates may rise during the course of the loan. 

2002 GLOSSARY 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

Adjusted Basis 

Equals cost at which an asset is acquired and adjusted for certain occurrences since the day of 

acquisition. For example, the adjusted basis of real property is generally the purchase price plus capital 

improvements to the property less any depreciation taken. Adjusted basis is used in calculating gains 

and losses on the sale of an asset. 

Adjusting Entries 

Bookkeeping entries made after the trial balance is prepared but before the closing entries. The adjusting 

entries are necessary to make the income and expense accounts consistent with the accrual method of 

accounting. 

Advances 

Loans the Federal Home Loan Banks issue to member savings associations. 

Affiliated Company 

 (1) A company that exercises control over another company either directly or indirectly. (2) A company 

that has common ownership with another company. 

Affiliated Person 

(1) A director, officer, or controlling person of a savings association or its holding company. (2) A member 

of the immediate family residing in the same household as a director, officer, or controlling person of a 

savings association. 

Agencies 

Securities issued by an agency or government-sponsored enterprise of the federal government, for 

example, Fannie Mae, Ginnie Mae, etc. 

AICPA 

American Institute of Certified Public Accountants. 

ALLL 

Allowance for loan and lease losses. 

Allowance 

A reserve set aside for bad debts or for depreciation. See Allowance for Loan and Lease Losses (ALLL) 

and Valuation Allowances. 

Allowance for Loan and Lease Losses (ALLL) 

Valuation allowances established to absorb unidentified losses inherent in a savings association’s overall 

loan and lease portfolio. See General Valuation Allowances and Specific Valuation Allowances. 

Alternative Mortgage Instruments 

Mortgage plans that differ from conventional fixed rate, fixed term, fixed monthly payment, fully amortized 

mortgages. 

Amortization 

(1) The gradual reduction of an asset or liability by means of periodic charges to reduce income or to 

increase expense. (2) The repayment of a loan calculated so that the principal will be paid in full through 

monthly payments of principal and interest for a predetermined period of time. 

Amortized Cost 

Equals the face value net of unamortized discounts and premiums less write-offs. See Book Value, Face 

Value, and Recorded Investment. 

Annual Percentage Rate (APR) 

A requirement of Truth in Lending laws designed to show consumers the total cost of credit, including the 

effective interest rate plus certain finance and service charges, points. 

 GLOSSARY 2003 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

Annual Percentage Yield (APY) 

The effective annual rate of income expressed as a percentage of the price originally paid. This 

calculation assumes that interest earned is reinvested. 

Annuity 

(1) A series of equal payments at fixed intervals, such as monthly or annually. (2) An investment yielding 

fixed payments during the holder’s lifetime or for a stated number of years. 

Anticipatory Hedge 

(1) A long anticipatory hedge is initiated by buying futures contracts to protect against a rise in the price of 

an asset to be purchased at a later date. (2) A short anticipatory hedge is initiated by selling futures 

contracts to protect against the decline in price of an asset to be sold at a future date, or to protect 

against a rise in interest rates of a fixed-rate liability or a future repricing on a variable-rate liability. 

APB 

Accounting Principles Board. 

Appraisal 

An estimate of the market value of an asset by a qualified appraiser. 

Appreciation 

The increase in value of an asset, specifically the increase in market value of real estate. 

APR 

Annual Percentage Rate. 

APY 

Annual Percentage Yield. 

ARB 

Accounting Research Bulletins. 

Arbitrage 

A transaction that involves buying a commodity in one market and simultaneously selling it in another 

market to profit from a disparity in prices between two markets. In a true arbitrage, the timing of the 

transactions must be simultaneous, thus imposing no risk to the investor. 

Arm’s-Length Transaction 

(1) A transaction negotiated by unrelated parties, each acting in his or her own best interest. (2) The 

basis for a fair market value determination. 

Arrears 

A payment not made when due. Frequently used in connection with installment notes, mortgages, rent, 

and other obligations due and payable on a certain specified date. 

Asked Price 

The price at which a security is offered for sale. 

Assessment 

(1) An estimate of the value of real property for levying taxes; also called assessed valuation. (2) A 

charge against real property levied by a public governing body for a local improvement, such as a sewer 

repair or street paving. 

Asset 

Anything owned by an individual or company that has commercial usefulness or value if sold. An asset 

may be physical property, enforceable claims against others, including loans and accounts receivable, 

and deferred expenses. An asset may be tangible or intangible. 

2004 GLOSSARY 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

Asset/Liability Management 

A planning and control process, the key concept of which is the integrated approach to matching the mix 

and maturities of assets and liabilities to achieve a favorable and even flow of “net interest margin.” 

Assisted Merger 

The takeover of a troubled savings association by another depository institution with financial assistance 

provided from a federal deposit insurance fund. 

ATIP 

Actual Thrift Investment Percentage. 

ATM 

Automated teller machine. 

At-the-Money Option 

An option with a strike price equal to the current market price of the underlying cash or futures contract. 

In this instance, the intrinsic value is zero and the value of the option reflects a premium paid for: (1) the 

time the holder has to decide whether or not to exercise the option, and (2) the expected price volatility. 

The value of this premium declines over time. 

Automated Teller Machine (ATM) 

A machine that permits customers to gain access to their accounts through the use of a magnetically 

encoded plastic card and by pushing appropriate buttons on a computer terminal. ATMs dispense cash, 

accept deposits, transfer funds from one account to another, and perform other functions. Generally, 

ATMs are available 24 hours a day. 

Average Rate of Return 

The return of an investment calculated by totaling the cash flow over the years divided by the amount of 

the investment, and dividing that amount by the number of years (or months) that the investment is 

outstanding. 

b 

Bad Debt Reserve 

A valuation allowance that savings associations maintain for income tax purposes to offset losses from 

foreclosed or uncollectable loans. 

Balloon Loan 

A loan that does not fully amortize during the loan term, and at maturity the unpaid principal is due in a 

lump sum. Periodic payments may be for principal and interest, or for interest only. 

Bank Check 

A check that a bank draws on itself then has it signed by an authorized bank officer. See Cashier’s 

Checks and Official Checks. 

Bank Insurance Fund (BIF) 

A fund, administered by the FDIC, that insures deposits of member banks (primarily commercial banks) 

up to $100,000 per depositor. BIF was merged into the Deposit Insurance Fund in 2006 pursuant to the 

Federal Deposit Reform Act of 2005. See Deposit Insurance Fund. 

Bank Investment Contract (BIC) 

Investment contract issued by a bank where interest is guaranteed by the bank in a portfolio over a 

specific time frame with a specific yield. Unlike guaranteed investment contracts (GICs), BICs do not 

include annuity provisions. 

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Banker’s Acceptance 

A draft drawn on a depository institution by another, which when accepted by the depository institution, 

obligates the depository institution to pay specific obligations of the draft writer when due. Acceptance 

converts a depositor’s “order to pay” into an unconditional “promise to pay” by the accepting depository 

institution. Bankers acceptances are effectively a guaranty of payment for a purchase and are generally 

used in financing the import, export, transfer or storage of goods. 

Banking Act of 1933 

Legislation that (1) created the Federal Deposit Insurance Corporation to provide insurance of deposits 

for member banks; (2) provided for the regulation of banks; and (3) limited branch banking. Also known 

as the Glass-Steagall Act. 

Basis Point 

A measurement of yields or changes in prices or yields for securities. One basis point equals one onehundredth of one percent. One hundred basis points equal one percent. 

Bear Market 

(1) A period of falling prices. (2) A condition of a stock market characterized by a selling trend and 

declining prices. (3) Opposite of a bull market. 

Bearer Bond 

A bond that does not have the owner’s name registered on the books of the issuing agency or company, 

and is payable to whomever holds the bond. 

Before-Tax Income 

Gross income less all expenses except for income tax expense. 

Below Market 

A price that is lower than the prevailing level at which a security is currently quoted or traded. 

Below-Market Interest Rate 

A lower interest rate than the current rate for conventional financing in a given geographical area. 

Programs with below-market rates may be used to assist low or moderate income buyers. 

Below Par 

A price lower than par or face value. The difference between the price and the face value is the discount. 

BIC 

Bank Investment Contract. 

Bid 

(1) The price that a potential buyer is willing to pay for a security. (2) An offer to purchase something. 

BIF 

Bank Insurance Fund. 

BIF HOLA Savings Association 

A BIF-insured, OTS-regulated savings association. 

Blanket Mortgage Loan 

A loan made to developers or contractors to purchase one or more tracts of land with the intention of 

dividing the land into smaller parcels for resale or development. 

Bond 

A certificate that evidences a debt. The debt is initiated when the issuer sells the bond to the holder for a 

specific amount of cash. The issuer is obligated to pay the holder of the bond a fixed sum (the bond’s 

face value) at a stated future date and to pay interest (usually twice a year) at a specified rate during the 

life of the bond. Corporations, the federal government, and state and local governments may issue bonds 

as a means of raising funds in the capital markets. Bonds may be issued in registered form, in which the 

2006 GLOSSARY 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

name of the holder is on record with the issuer, or in bearer form, in which the name of the owner is not 

registered and the bond is payable to whomever bears or presents the bond to the issuer for redemption. 

Bond Discount 

The difference between the purchase price and face value of a bond when the face value exceeds the 

purchase price. Normally a bond sells at a discount when the stated interest rate of the bond is less than 

the current market interest rate. The discount is accreted to interest income over the life of the bond, 

increasing the stated interest rate of the bond to the market interest rate at the time of purchase. 

Bond Equivalent 

A yield based on a 365-day year with two semiannual coupon payments. 

Bond Premium 

The difference between the purchase price and the face value of a bond when a bond sells above par. 

Normally a bond sells at a premium when the stated interest rate is greater than the current market 

interest rate. The premium is amortized to interest income over the life of the bond, decreasing the stated 

interest rate of the bond to the market interest rate at the time of purchase. 

Bond, Debenture 

A bond for which there is no specific security, collateral, set aside or allocated for repayment of the 

principal. 

Bond, Interim 

Sometimes used before the issuance of permanent bonds to raise funds needed only temporarily. 

Synonymous with temporary bond. 

Bond, Junk 

Bonds rated lower than investment grade that yield higher rates of interest than the current investmentgrade bond market. 

Bond, Par 

A bond selling at par, whose interest rate is in line with prevailing market interest rates. 

Bond, Stripped 

Bonds whose coupons have been clipped off. The principal and interest (coupons) are sold to separate 

groups of investors. Those seeking current income buy the strip of coupons, and those wanting a lump 

sum at maturity buy the principal or “corpus” portion. Because each portion is worth less than its whole, 

both are sold at a deep discount from their face values. 

Bond, Treasury 

A U.S. Government long-term security sold to the public with a maturity longer than five years. 

Bond, Zero-Coupon 

A security sold at a deep discount from its face value and redeemed at the full amount at maturity. The 

difference between the cost of the bond and its value when redeemed is the investor’s return. These 

notes provide no interest payments to holders. 

Book Value 

(1) The amount at which a business carries an asset on the accounting books. (2) Book value is equal to 

face value less unamortized discounts, plus unamortized premiums, plus accrued interest, less 

depreciation, valuation allowances, and write-offs. (3) Equivalent to Carrying Value. 

Branch Office 

An office of a savings association physically separate from the home office that offers the same kinds of 

deposit and most loan services conducted at the home office. 

Broker 

An agent or middleman who does not actually own the securities or property he sells or buys. A broker, 

as opposed to a dealer, is always acting on behalf of another individual. 

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Broker-Originated Deposit 

Any deposit placed in a savings association by or through a deposit broker. 

Brokerage Fee 

A fee, usually referred to as a commission fee, charged by a broker for execution of a transaction. The 

broker may base the fee on an amount per transaction or a percentage of the total value of the 

transaction. 

Bull Market 

(1) A period of rising prices. (2) Opposite of bear market. 

Buy-Back Agreement 

A provision in a sales contract stating that the seller will repurchase the asset sold within a specified 

period of time, usually for the selling price, if certain stated conditions exist. See Repurchase Agreement 

and Recourse. 

Buying Hedge 

Buying futures contracts to protect against possible increased cost of commodities or financial 

instruments that will be needed in the future. Also referred to as a long hedge. 

Buying Long 

Buying stocks, bonds, or commodities outright with the expectation of holding them for a rise in price and 

then selling. 

c 

Call 

(1) An option to buy a specific security at a specified price within a designated period. (2) A demand by a 

lender for payment of a loan because of the failure of the borrower to comply with the terms of the loan. 

(3) A demand by the issuer of the redemption of stocks or bonds. See Put Option. 

Call Option 

An option that gives the option buyer the right to purchase – go long – the underlying futures contract at 

the strike price on or before the expiration date. 

Call Price 

The price at which a callable bond is redeemable. It is used in connection with preferred stocks and debt 

securities having a fixed claim. It is the price that an issuer must pay to voluntarily retire such securities. 

This often exceeds the par or liquidating price to compensate the holder of the called security for his or 

her loss of income and investment position resulting from the call. 

Callable Bond 

A bond that is redeemable by the issuer prior to maturity; for example, most Treasury bonds are callable 

five years before maturity at a specific price. 

C and D 

Cease and Desist Order. 

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Cap 

(1) The maximum rate to which an ARM may adjust, also referred to as a ceiling. (2) A contractual 

agreement, akin to an insurance policy, in which a third party limits the interest that will be received or 

paid if interest rates increase by a predetermined number of percentage points, also referred to as an 

interest-rate cap. 

Capital 

Generally represents the owners’ interest in the company’s net assets. It is also called equity capital, 

stockholders’ equity, and net worth. The capital of a company includes capital contributed by the owners’ 

plus the retention of earnings over time. 

Capital Asset 

(1) An asset with an expected life of over one year and one that is not bought and sold in the normal 

course of business. (2) A fixed asset. 

Capital Expenditure 

Money spent for additions or improvements to structures or equipment used to carry on the activities of 

an organization or individual. 

Capital Gain or Loss 

The gain or loss incurred from the sale or disposition of assets other than inventory, such as investment 

securities, and real estate. 

Capitalize 

The treatment of large expenses as part of a firm’s assets. Thus, rather than treating an expenditure as a 

deduction from the income statement, it is treated as an asset. 

Capitalized Interest 

Interest not expensed, but added to the carrying value of an asset. The purpose of capitalizing interest is 

to obtain a measure of acquisition cost that reflects the total investment in the asset. Interest is typically 

capitalized for assets that are constructed for a business’s own use or for assets intended for sale or 

lease that are constructed as a discrete project. 

Capitalized Loan 

A loan to which all amounts due are added to the balance of the loan and all payments received are 

deducted from the balance of the loan. For example, each month as interest is earned and escrow 

payments become due, these amounts are added to the loan balance; when payment is received it is 

deducted from the loan balance. Any unpaid amounts become part of the loan principal. 

Captive Insurance Company 

An insurance company in which an association is required to purchase stock in order to receive 

insurance. 

Carrying Amount of Loan 

Recorded investment in the loan minus valuation allowances. 

Carrying Value 

(1) The amount at which an asset is carried on the books of a business. (2) Amortized cost – face value 

adjusted for unamortized discounts and premiums, accrued interest, depreciation, valuation allowances, 

and write-offs. (3) Equivalent to Book Value. 

Cash Basis Accounting 

(1) A method of accounting in which income and expense items are recorded and recognized when cash 

is received or disbursed. (2) Opposite of accrual basis accounting. The accrual basis of accounting must 

be used in the preparation of the Thrift Financial Report. 

Cash Market 

A market in which securities are traded for immediate delivery for a cash payment. 

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Cash Price 

The price that a specific financial instrument is presently selling in the open market. 

Cashier Checks 

A check drawn by a financial institution on itself, signed by an institution’s authorized officer and payable 

to a third party named by a customer making the withdrawal. See Official Checks. 

CD 

Certificate of Deposit. 

Cease and Desist Order (C & D) 

A demand from the courts or government agency that an entity cease an activity. 

CEBA 

Competitive Equality Banking Act of 1987. 

Chattel Mortgage 

A mortgage on personal property, such as an automobile or furniture, that is given as security to pay an 

obligation. 

Certain Nonsecurity Financial Instruments (CNFI) 

Unsecuritized financial instruments accounted for at fair value. CNFIs include interest-only strip 

receivables, loans receivable, other receivables, or retained interests in securitizations that can be 

contractually prepaid or otherwise settled in such a way that the holder would not recover substantially all 

of its recorded investment. 

Certificate of Deposit (CD) 

A written document a financial institution issues to a depositor as evidence of its deposit. It includes the 

institution’s promise to return the deposit at a specified future date with earnings at a specified rate of 

interest. It may be negotiable (transferable to another party) or nonnegotiable. The interest specified 

may adjust periodically according to a predetermined formula or index or may be fixed for the term of the 

deposit. 

Certificate of Deposit (demand) 

A negotiable or transferable receipt issued for funds deposited with a financial institution and payable on 

demand to the holder. These receipts normally do not bear interest and are used principally by 

contractors and others as a guarantee of performance of a contract or as evidence of good faith when 

submitting a bid. They may also be used as collateral. 

Charge-Off 

The amount of loss to an asset that, when recorded, directly reduces the balance of an asset. 

Consequently, the loss is not established separately as a valuation allowance. See Write-off. 

CIF 

Collective Investment Fund. 

Classified Assets 

Assets, generally loans, whose value may not be recoverable. Such assets are classified as 

substandard, doubtful, or loss. Refer to OTS Regulation § 560.160. 

Clear Title 

A title to real or personal property that has no liens recorded against it and that is transferable to another 

party. Synonymous with good title, just title, and marketable title. 

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THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

Close of Business 

The time established by the reporting institution as the cut-off time for receipt of work for posting 

transactions to its general ledger accounts for that day. The time designated as the close of business

should be reasonable and applied consistently. The posting of a transaction to the general ledger means 

that both debit and credit entries are recorded as of the same date. 

Closed Position 

Forward or futures contracts offset in full are closed because the obligations cancel each other out. 

Closed-End Credit 

A loan where the entire amount is disbursed to the borrower. Overdraft privileges, credit cards, most 

home equity loans, and lines of credit are open-end rather than closed-end loans because, although they 

have a fixed ceiling, the association will not necessarily disburse the full amount of the line of credit. 

Closed-End Mortgage 

A mortgage with a prohibition against additional borrowing using the same lien. The prohibition against 

additional borrowing protects the existing creditors from having the security diluted. 

Closing 

Consummating a financial transaction. In mortgage lending, closing is the process of the delivery of a 

deed, the signing of loan documents, and the advancing of funds by the lender. 

Closing Price 

The price at which transactions are made just before the end of trading on a given day. 

Closing Transaction 

(1) The final transaction for a particular security during a trading day. (2) An option order that will 

eliminate or decrease the size of an existing option position. 

CMO 

Collateralized mortgage obligation. 

CNFI 

Certain nonsecurity financial instruments. 

Collar 

A maximum and minimum rate of interest that will be paid on the par value of a floating-rate note. See 

Interest-Rate Collar. 

Collateral 

Something of value pledged as security for a loan. The lender can repossess the collateral if the loan is 

not repaid. 

Collateral Loan 

A loan for which the borrower deposits certain property with the lender as a pledge of payment. The 

lender usually has the right to sell the property to pay off the debt if the borrower does not pay according 

to its term. 

Collateral Mortgage 

A document used with a loan that effects a lien on real estate, where the loan is not a purchase-money 

mortgage. 

Collateralized Mortgage Obligation (CMO) 

A multiclass, mortgage-backed security. An underlying pool of mortgages held by the issuer serves as 

collateral for the debt obligation, and principal and interest payments from the pool of mortgages are used 

to retire the CMOs. Typically, a single issue of CMOs contains three or more classes, tranches, of bonds 

having fixed or floating interest rates, and different lengths of maturity for each class of bond that provides 

a form of call protection to the holder of a CMO. 

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Collateral Trust Notes 

Bonds secured by the deposit of other bonds or stocks, usually issued by holding companies, investment 

trusts, and railroads. 

Collective Investment Fund (CIF) 

The collective investment of fiduciary accounts. Generally includes accounts held by a trustee, executor, 

administrator or guardian. Used primarily to describe the collective investment of tax-qualified retirement 

plans. Also referred to as Group Trusts. See Common Trust Fund. 

Combined Construction-Permanent Loan 

Loans used to finance construction and that are converted to permanent loans upon completion of 

construction. Typically, the borrower makes no principal payments during the construction period, and 

upon conversion to a permanent loan begins to make both interest and principal payments. 

Commercial Letter of Credit 

An instrument by which a financial institution lends its credit to a customer to enable him to finance the 

purchase of goods. Addressed to the seller, the letter authorizes him to draw drafts on the financial 

institution under the terms stated. 

Commercial Loan 

Loans made to businesses for the financing of inventory purchases and operating expenses, as 

distinguished from personal loans or consumer credit loans. Commercial loans are typically short-term 

loans or acceptances. 

Commercial Mortgage 

A loan secured by real estate that is used, zoned, or intended for business purposes or multi-unit 

dwellings, or is part of a real estate investment portfolio. 

Commercial Paper 

An unsecured debt instrument issued by a corporation with a fixed maturity, typically for a short-term 

period (30, 45, 60, or 90 days). It is generally priced at a discount from par and is redeemable at par on 

the maturity date. Individual and corporate investors buy, sell, and trade commercial paper. . 

Commissions 

(1) A fee for services rendered. (2) The fees that a broker charges a customer for executing a trade. 

Commitment 

An advance agreement to perform in the future, such as to provide funds for a mortgage loan or to buy or 

sell securities. Commitments may be at a fixed interest rate or price determined on the commitment date 

or at a rate or price to be determined at closing date. Commitments may be in the form of a commitment 

letter or may be verbal. 

Commitment Fee 

(1) A fee paid by a borrower to a lender for the lender’s promise to loan money at a future date. (2) In the 

secondary market, a commitment fee is a payment by a financial institution to a mortgage buyer, such as 

Freddie Mac, Fannie Mae, etc., for the buyer’s promise to buy loans at a future date. 

Common Stock 

Securities that are evidence of proportionate equity or ownership of a corporation. They give the holder 

an unlimited proportionate interest in the corporation’s earnings and assets after satisfaction of claims 

from creditors and the holders of preferred stock. 

Common Trust Fund 

The collective investment of fiduciary accounts. Generally includes accounts held by a trustee, executor, 

administrator or guardian. See Collective Investment Fund. 

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Community Reinvestment Act of 1977 (CRA) 

Legislation that requires financial institutions to meet the credit needs of all segments of their 

communities, including low- and moderate-income neighborhoods. 

Compensating Balance 

A dollar amount equal to the lowest percentage of a line of credit that the customer of a financial 

institution is expected to maintain, usually in a demand deposit account, as a condition for being granted 

a line of credit. 

Competitive Equality Banking Act of 1987 (CEBA) 

Legislation passed by the U.S. Congress in 1987 that resulted in the following: 

 Established the adoption of generally accepted accounting principles (GAAP) in financial 

reporting. 

 Established classification of impaired assets. 

 Changed appraisal standards. 

 Affected minimum capital requirement provisions. 

 Established capital forbearance. 

 Mandated Troubled Debt Restructuring (TDR) disclosure. 

 Gave the thrift industry the Qualified Thrift Lender test (QTL). 

Compliance Exam 

An examination of a savings institution to determine how well it is complying with federal law and 

regulations, particularly those dealing with consumer protection and nondiscrimination. 

Compound Interest 

The interest that accrues when earnings for a specified period of time are added to the principal, so that 

interest during subsequent periods is computed on the principal plus all accumulated interest. 

Comprehensive Income 

The change in equity of a business enterprise during a period from transactions and other events and 

circumstances from nonowner sources. It includes all changes in equity during a period except those 

resulting from investments by owners and distributions to owners. 

Condominium 

(1) A single dwelling unit in a multi-unit structure in which each unit is individually owned. (2) A form of 

real estate ownership in which the purchaser receives title to a particular unit in a project and 

proportionate interest in common areas. 

Conforming Loan 

A mortgage loan that conforms to specified limits such as loan-to-value ratio, term, interest rates, or other 

characteristics. Typically these conform to guidelines established by Freddie Mac, Fannie Mae, or Ginnie 

Mae. 

Conservator/Conservatorship 

An individual or institution the Court or the FDIC appoints to protect and conserve the assets of a troubled 

financial institution to facilitate liquidation, merger, or replacement of management. A conservatorship 

affects the control and operation of an institution or company but does not alter its ownership. See

Receivership. 

Consolidation 

The results obtained when the accounts of a parent company and its majority-owned subordinate 

organizations are combined to reflect the financial position and results of operations of the group as if 

operated as a single entity. This involves intercompany eliminations and noncontrolling interest 

adjustments. 

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Consolidation Loan 

A loan that combines several debts into one loan, usually to reduce the annual percentage rate or dollar 

amount of payments made each month, by extending them over a longer period of time. 

Constant Prepayment Rate (CPR) 

The percentage of principal amount of a pool of mortgages that have been or are expected to be prepaid 

on an annual basis over the life of a pool. 

Construction Loan 

A short-term interim loan for financing the cost of construction. The lender makes payments to the builder 

at periodic intervals upon completion of certain phases of construction as provided in the loan contract. 

See Loans in Process. 

Consumer Credit 

See Consumer Loan. 

Consumer Loan 

Loans to individuals or families where the proceeds are used for consumer purposes, versus business or 

investment. 

Contingency Fund 

Assets or other resources placed aside for unexpected expenditures, or for anticipated expenditures of an 

uncertain amount. 

Contra Account 

An account offset against another account. A contra account to an asset, contra-asset, has a credit 

balance and a contra account to a liability, contra-liability, has a debit balance. A contra account has no 

value in its own right and can only be stated in terms of the asset or liability to which it applies. Examples 

of contra-assets are discounts, deferred loan fees, and accumulated depreciation. An example of a 

contra-liability is a discount paid for deposits. 

Contract Month 

The month in which the futures contract may be fulfilled by making or taking delivery. Most interest rate 

futures contracts are liquidated prior to the contract month. 

Conventional Mortgage 

A mortgage originated by a financial institution without government insurance or guarantee. 

Cooperative 

A system of indirect ownership of a single unit in a multi-unit structure. The individual owns shares in a 

nonprofit corporation that holds title to the building. In turn, the corporation gives the owner a long-term 

proprietary lease on the unit. Also called a co-op. 

Core Capital 

One of three capital standards established for savings associations in 1989. Also known as Tier 1 

Capital. 

Core Deposits 

The base of deposits a savings association expects to retain over relatively long periods. In the 

application of purchase accounting in a merger, a dollar amount is allocated to the value of retaining the 

core deposits and this amount is established as an intangible asset known as a core deposit intangible 

(CDI). 

Correspondent Bank 

A bank that is the depository for another depository institution, typically located in another city or 

marketing area. The correspondent bank provides services such as accepting deposits and collection of 

loan payments for the other depository institution. 

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Cost of Capital 

The rate of interest that an association must pay to a third party to borrow money or raise equity capital. 

Cost of Funds 

The interest paid or accrued on savings and borrowings, expressed as a percent of the average total 

savings and borrowings during a given accounting period. 

Coupon 

A tab attached to a bond, which can be torn off and presented to collect an interest payment at a given 

date. 

Coupon Rate 

The rate of interest paid on a particular security. For mortgage-backed securities, the word coupon is 

customarily used to describe the stated contract interest rate. 

Coupon Strips 

Ordinary bonds, typically, U.S. Treasury bonds, purchased and then repackaged so that the rights to 

interest and principal payments are sold separately. The effect is to transform a regular interest-paying 

security into zero-coupon securities. See Bond, Strip. 

Covered Interest Arbitrage 

Investing dollars in an instrument denominated in a foreign currency and hedging the resulting foreign 

exchange risk by selling the proceeds of the investment forward for dollars. 

CRA 

Community Reinvestment Act of 1977. 

Credit 

Any amount that, when posted, will increase the balance of a liability, income, or capital account or 

decrease the balance of an asset or expense account. Liability, capital, and income accounts normally 

have credit balances, and asset and expense accounts normally have debit balances. 

Credit Loss 

Loan losses that arise from a contractual relationship between a creditor and a borrower. 

Credit losses may result from the creditor’s own underwriting, processing, servicing, or administrative 

activities along with the borrower’s failure to pay according to the terms of the loan agreement. While the 

creditor’s personnel, systems, policies, or procedures may affect the timing or magnitude of a credit loss, 

they do not change its character from credit to operational. 

Credit Risk 

The potential for a borrower to default on all or part of a loan and, consequently, the potential for the 

value of the loan held by a savings association to decrease. 

Cross-Hedge 

A hedge transaction whereby the correlation between the two items being hedged is similar but not 

perfect. For example, hedging a commercial loan with a Ginnie Mae futures contract. 

d 

DBLA 

Domestic Building and Loan Association. 

Dealer Reserve Accounts 

Refundable amounts held as collateral in the purchase of installment notes from a dealer. For example, a 

savings association purchases $100,000 in installment notes from a dealer for the full face amount for 

which it pays $90,000 to the dealer and holds the remaining $10,000 as collateral. The $10,000 held as 

collateral is a dealer reserve account. 

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Debenture 

A debt instrument secured only by the general credit of the issuer. A corporate obligation sold as an 

investment. 

Debit 

Any amount that, when posted, will increase the balance of an asset or expense account and decrease 

the balance of a liability, income, or capital account. Asset and expense accounts normally have debit 

balances; and liability, capital, and income accounts normally have credit balances. 

Debt 

Money owed by one person or entity to another. 

Debt Securities 

A security representing borrowed funds that must be repaid. Examples of debt securities include bonds, 

certificates of deposit, commercial paper, and debentures. 

Deed 

A written agreement in proper legal form that conveys title to, or an interest in, real property. 

Deed in Lieu 

A deed given by a borrower to a lender to repay a mortgage loan and avoid foreclosure. A deed given in 

lieu of foreclosure. 

Default 

Failure to do what the law requires or to carry out the terms of a contract. 

Defer 

To delay payment to a future time. 

Deferred Expense 

An expense paid before the corresponding benefit is fully received, such as a prepaid insurance premium. 

For accounting purposes, the expense is recorded as an asset until benefit is obtained, and may be 

prorated over a number of subsequent accounting periods. 

Deferred Income 

Any income received before it is due or before it is earned. Rent paid in advance is an example of 

deferred income received during one accounting period but earned in a later accounting period. Deferred 

income is generally recorded as a liability until it is earned, at which time it is taken into income. Interest 

received in advance is also deferred income; however, instead of being recorded as a liability, interest 

received in advance offsets the balance of the loan to which it applies. 

Deferred Loan Fee 

A loan fee, also referred to as points, typically received at loan closing. Deferred loan fees are 

considered interest paid in advance. Once the loan is disbursed, the deferred loan fee is reported on the 

balance sheet as a contra-asset to the loan and is accreted to interest income. 

Deficiency Judgment 

A court order that authorizes the collection from the debtor of the part of the debt remaining unsatisfied 

after foreclosure and sale of collateral. 

Delinquency 

Failure to make payment on a debt when due. 

Demand Deposit Account 

A non-interest-bearing account from which a depositor may withdraw funds immediately without prior 

notice. Since funds may be withdrawn on demand in person or by presentation of a check, the account 

has many of the liquid characteristics of circulating currency. See FDIC Regulations §§ 329.1, 329.101, 

and 329.102. 

2016 GLOSSARY 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

De Novo Association 

A newly chartered savings association. 

Deposit 

Money placed in a depository institution for safekeeping. Includes demand – usually checking – 

accounts, savings – passbook – accounts, time deposits, negotiable certificates of deposit, money market 

accounts, etc. Most deposits are interest bearing. 

Deposit Broker 

A person or entity engaged in the business of placing funds or facilitating the placement of funds of third 

parties in accounts issued by a depository institution. 

Deposit Insurance Fund (DIF) 

A fund, administered by the FDIC, insuring deposits of member banks and savings associations. DIF was 

established by the Federal Deposit Reform Act of 2005 to replace BIF and SAIF as the insurer of banks 

and savings associations. 

Depository Institution 

A financial intermediary that accepts savings and demand deposits from the general public. 

Depreciation 

The gradual decline in the value of a property over its useful life. Depreciation is recognized through a 

systematic charge-off of the cost less salvage value over the estimated useful life. It is a bookkeeping 

entry that does not involve any cash outlay. 

DIF 

Deposit Insurance Fund. 

Direct Investment 

Investment by savings associations directly in the equity of a venture, as opposed to investment in a debt 

instrument. With direct investment, an association actually owns all or part of a venture, rather than 

loaning money to finance the venture. 

Discharge of Lien 

The recorded release of a lien when debt has been repaid. 

Discount 

The difference between the purchase price and face value of a security when the face value exceeds the 

purchase price. Normally a security sells at a discount when the stated interest rate of the security is less 

than the current market interest rate. The discount is accreted to interest income over the life of the 

security, increasing the stated interest rate of the security to the market interest rate at the time of 

purchase. 

Discount Bond 

See Bond Discount. 

Discount Loan 

A loan on which the amount disbursed at closing equals the face amount of the loan less interest that will 

be earned over the life of the loan, and sometimes miscellaneous charges. The borrower must repay the 

full face amount of the loan. See Add-on Interest. 

Discount Paper 

Short-term non-interest-bearing securities issued at a price below par. The difference between the 

purchase price and the amount redeemed at maturity is accreted to interest income over the life of the 

security. 

Discount Rate 

(1) The rate representing the amount of money deducted from the face value of a note. (2) The add-on 

rate of interest charged to Federal Reserve System member banks for borrowing at the discount window. 

 GLOSSARY 2017 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

Discount Securities 

Short-term non-interest-bearing debt instruments issued at a price below par and redeemed at maturity 

for full face value; usually short-term such as Treasury bills. 

Discount Window 

A “window” available to Federal Reserve System members that allows them to borrow against collateral. 

Discounted Cash Flows 

Anticipated net cash receipts from an investment discounted to present value under the theory that cash 

received in the future has a lesser value than the same amount of cash received today. Several 

assumptions must be made in this calculation: estimated cash flows, timing of the cash flows, and the 

discount rate used. 

Dividend 

A portion of the net profits the Board of Directors officially declares for distribution to the shareholders. A 

dividend is paid at a certain rate for each share of stock held by each stockholder, such as, at ten cents 

per share. 

Dividend, Extra 

Distribution of excess profits over and above the regular dividend. 

Dividend, Scrip 

A promissory dividend payable in the future. The directors vote to withhold actual cash dividend until a 

certain future event has taken place. 

Dividend, Stock 

A payment of stock in lieu of a cash dividend on a pro rata basis according to the amount of stock held by 

each stockholder. 

Docket Number 

A five-digit number the OTS assigns to each savings association it regulates. The number is used to file 

and retrieve all financial, organizational, and regulatory data regarding that institution. 

Dollar Reverse Repurchase Agreement 

A financial transaction similar to a reverse repurchase agreement in which a dealer loans money by 

buying a security and agreeing to sell it back to the customer at a higher price at a later date. In a dollar 

reverse repurchase agreement (dollar reverse repo) the dealer does not sell back the exact same security 

but another, substantially identical security. See Repurchase Agreement. 

Domestic Building and Loan Association (DBLA) 

Defined in the IRS Tax Code as a domestic or federal savings and loan association whose principal 

business is acquiring savings deposits from the public and investing in loans. Savings associations may 

substitute the IRS DBLA test for the Qualified Thrift Lender (QTL) test. 

Doubtful Assets 

(1) Those assets that will probably not bring full value upon liquidation. (2) A classification of assets under 

OTS Regulations. See Classified Assets. 

Duration 

(1) The number of years required to receive the present value of future payments, both interest and 

principal, from a bond. To determine duration, calculate the present value of the principal and each 

coupon, and then multiply each result by the period of time before payment is to occur. (2) The concept 

of duration relates the sensitivity of bond price changes to changes in interest rates. 

Dwelling Unit 

(1) A unified combination of rooms, whether existing or under construction, designed for residence by one 

family. (2) Living quarters consisting of contiguous rooms providing complete independent facilities for 

living, eating, cooking, sleeping, and sanitation. 

2018 GLOSSARY 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

Dwelling Units, One- to Four- 

(1) Single-family dwellings in detached or semidetached structures including manufactured housing. (2) 

Permanently financed units in a condominium or cooperative arrangement, where the owner of each unit 

has an undivided proportional interest in the underlying real estate and common elements of the 

structure. (3) Structures consisting of two- to four-dwelling units. 

Dwelling Units, Five or More 

A structure, or structures, containing five or more dwelling units; also referred to as multi-family residential 

property. This mortgage classification includes: 

 A single mortgage secured by five or more dwelling units in one structure, or in semi-detached or 

detached structures. 

 The construction financing of condominium or cooperative apartments until the construction 

phase is complete because the units are in structures containing five or more units and are 

covered by one mortgage. 

 Fraternity/sorority houses offering sleeping accommodations, living accommodations for students 

or staff of a college or hospital, and retirement homes with sleeping and eating accommodations 

that are not condominiums or cooperatives. In these cases, the number of bedrooms in the 

structure will be the number of dwelling units. 

 Mobile home parks. 

This category does not include the construction of single-family dwellings in one project, even though it 

may involve only one construction loan. In this case, the future use of the property as single-family 

dwellings and the fact that the dwellings are in detached or semi-detached structures determines the 

classification. 

e 

Education Loan 

An advance of funds for the purpose of financing a college or vocational education. 

Effective Rate 

The actual yield of interest as opposed to the stated rate. For deposits, the effective rate of interest is 

based on the accounting method used to compute interest and the frequency of compounding. For loans, 

the effective rate is the stated interest rate plus fees and charges prorated over the life of the mortgage. 

Employee Stock Option Plan (ESOP) 

An employee benefit where employees receive as compensation equity shares (stock) of the employer. 

Stock acquired for this purpose by a loan or guarantee of the employer is transferred to a trust. The loan 

is then typically paid off through dividends received on the stock and through additional contributions from 

the employer. 

Equity Investment 

Investment in the ownership of property or a business where the investor’s profit depends on the profit of 

the underlying investment. The investor may receive a specified rate of return dependent on the profit of 

the underlying investment. 

Equity Kicker 

Added to a stated rate of return, the investor participates in the profits of the underlying investment. 

Equity Loan 

A loan that uses the borrower’s equity in real property as collateral; also called a home equity loan. The 

loan may be for a variety of purposes. It is typically an open-ended second or junior mortgage loan. 

 GLOSSARY 2019 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

Equity Method 

A method of accounting for an equity investment in another company or joint venture. The carrying value 

of the investment reflects a share of the acquired firm’s increases (or decreases) in retained earnings. 

Example: If association A purchases 20% of association B’s stock and association B earns $3 million 

after taxes during the next year, association A will increase the carrying value of its investment by 20% of 

$3 million, or $600,000. If association B pays half of its earnings in cash dividends, association A will 

decrease its investment by $300,000. 

Equity to Assets Ratio 

Total equity divided by total assets. This ratio provides information on the proportion of total assets 

provided by shareholders, owners, on any given date. A high equity ratio may indicate the existence of a 

protective buffer in the event the company suffers a loss. 

Equity to Liabilities Ratio 

Total equity divided by total liabilities. 

Escrow 

A written agreement under which funds transferred from one party to another are placed with a third 

person or entity, usually a depository institution, acting as custodian. The custodian completes the 

transfer to the second party only upon the fulfillment of certain specified conditions. For purposes of the 

calculation of deposit insurance premiums, escrows are included as deposits. 

ESOP 

Employee stock ownership plan. 

Eurobond 

A bond issued for release by a U.S. or other non-European company or government for sale in Western 

Europe. In that market, corporations and governments normally issue medium-term securities with 

maturities of 10 to 15 years. 

Eurodollars 

Deposits denominated in U.S. dollars at banks and other financial institutions outside the United States. 

Although this name originated because of the large amounts of such deposits held at banks in Western 

Europe, similar deposits in other parts of the world are also called Eurodollars. 

EWP 

Early withdrawal penalty. A penalty for withdrawing funds from a time savings account prior to a stated 

date. 

Exercise 

To execute the right granted under the terms of a contract. To exercise a call, holders exchange the call 

option position for a long futures position. To exercise a put, holders exchange the put option position for 

a short position in T-Bond futures. 

Exercise Price 

See Strike Price. 

Expense 

The costs of resources used to create, or intended to create, revenues. 

f 

Face Value 

The sum of money denoted on the principal or “face” side of a financial instrument representing: (1) the 

amount of money the issuer promises to pay at maturity and (2) the amount on which interest is 

computed. Synonymous with par value. 

2020 GLOSSARY 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

Fair Market Value 

The price at which property transfers from a willing seller to a willing buyer, each of whom has a 

reasonable knowledge of all pertinent facts concerning the property in question and similar properties on 

the market, and neither being under any compulsion to buy or sell. 

Fannie Mae 

Federal National Mortgage Association (FNMA). A U.S. government sponsored enterprise. 

Fannie Mae/Freddie Mac Pool 

Mortgage-backed security that represents a proportional undivided ownership interest in a pool of 

mortgage loans where the full and timely payment of principal and interest is guaranteed by Fannie 

Mae/Freddie Mac. 

Farmers Home Administration (FmHA) 

A federal government agency that finances and insures loans to farmers and other qualified borrowers for 

rural housing and other purposes. 

FASB 

Financial Accounting Standards Board. 

FASB ASC 

Reference to the FASB’s Accounting Standards Codification 

FDIC 

Federal Deposit Insurance Corporation. 

Federal Deposit Insurance Corporation (FDIC) 

A government corporation that insures deposits in savings associations and commercial banks through 

the Deposit Insurance Fund. 

Federal Funds 

Overnight, unsecured loans of funds between banks. Generally considered as funds that are immediately 

available and invested only for one business day, they are typically treated as cash equivalents. Federal 

funds bought and sold for longer periods ranging up to 90 days are referred to as term federal funds. 

Federal Housing Administration (FHA) 

The FHA is a division of the Department of Housing and Urban Development whose activities include 

insuring residential mortgage loans under a nationwide system. This enables lenders to loan a higher 

percentage of the value of the underlying property. FHA loans generally require a down payment of not 

less than five percent of the original amount of the loan. 

Federal Home Loan Banks (FHLBs) 

Twelve regional banks of the Federal Home Loan Bank System that provide credit to member savings 

associations. 

Federal Home Loan Bank Board (FHLBB) 

A former independent agency in the executive branch of the federal government that regulated and 

supervised the savings and loan industry, the Federal Home Loan Banks, the Federal Savings and Loan 

Insurance Corporation, and the Federal Home Loan Mortgage Corporation. In 1989, FIRREA abolished 

the FHLBB and transferred its functions to other agencies, including the Office of Thrift Supervision. 

Federal Home Loan Bank System 

The group made up of the Federal Housing Finance Board and the twelve regional Federal Home Loan 

Banks. The fundamental purpose of the System is to serve as a central credit facility for member 

associations. 

 GLOSSARY 2021 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

Federal Home Loan Mortgage Corporation (Freddie Mac) 

A government-sponsored but privately owned corporation, Freddie Mac is a secondary market facility 

under the supervision of the Office of Federal Housing Enterprise Oversight. Freddie Mac is authorized to 

buy conventional whole mortgage loans and sell participation certificates secured by pools of these 

conventional mortgage loans. 

Federal Housing Finance Board (FHFB) 

An independent agency in the executive branch of the federal government that replaced the FHLBB in its 

authority to govern the Federal Home Loan Bank System. Its duties are: 

 To supervise the Federal Home Loan Banks. 

 To ensure the Federal Home Loan Banks carry out their housing finance mission. 

 To ensure the Federal Home Loan Banks remain adequately capitalized and able to raise funds 

in the capital markets. 

 To ensure the Federal Home Loan Banks operate in a safe and sound manner. 

Federal National Mortgage Association (Fannie Mae) 

A government-sponsored but privately owned corporation, Fannie Mae is a secondary market facility 

under the supervision of the Office of Federal Housing Enterprise Oversight. Fannie Mae supplements 

private mortgage funds by buying FHA, VA, and conventional loans and issuing mortgage-backed 

securities. 

Federal Reserve Board 

The seven governing members of the Federal Reserve System who are appointed by the President of the 

U.S. for 14-year terms. Board members play an important role in determining the country’s monetary 

policy, which, in turn, strongly influences economic activity. 

Federal Reserve System 

The system of independent central banks that influences the United States’ money supply and credit 

through its control of bank reserves. Federal Reserve actions impact security prices. For example, 

restriction of bank reserves and lending ability in an attempt to restrain inflation tends to drive up interest 

rates and drive down security prices over the short run. Also called the Fed. 

Federal Savings & Loan Insurance Corporation (FSLIC) 

A government corporation the National Housing Act established in 1934 that insured deposit accounts in 

federal savings associations, federally chartered national savings banks, and state-chartered savings 

associations that were members of the Federal Home Loan Bank System. Under the Financial 

Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989, the Savings Association 

Insurance Fund, SAIF, replaced the FSLIC as an insurer. All assets and liabilities of FSLIC were 

transferred to the FSLIC Resolution Fund. 

FHA/HUD 

Federal Housing Administration/Housing and Urban Development 

FHLB or FHLBank 

One of the twelve district banks of the Federal Home Loan Bank System. 

FHLBB 

Federal Home Loan Bank Board. 

FHLMC 

Federal Home Loan Mortgage Corporation. Also known as Freddie Mac. 

2022 GLOSSARY 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

Fiduciary 

Someone who is entrusted with the care of another person's money, property or other items of value. 

Acting in a fiduciary capacity generally includes acting as a trustee, executor, administrator, registrar of 

stocks and bonds, transfer agent, assignee, receiver, guardian or conservator of the estate of a minor or 

incompetent, investment adviser, any capacity in which you possess investment discretion on behalf of 

another, or any other similar capacity. 

Finance Subsidiary 

A savings association’s subsidiary whose sole purpose is to issue securities, typically preferred stock or 

mortgage-backed securities, that the parent itself is authorized to issue directly – or, if the parent is a 

mutual association, is authorized to issue if it converted to the stock form – and to remit the net proceeds 

of such securities to its parent association. 

Financial Accounting Standards Board (FASB) 

An accounting organization established in 1973 that is responsible for establishing generally accepted 

account principles (GAAP). FASB is a self-regulated organization whose impact affects accounting firms 

and practitioners. 

Financial Asset 

A financial asset represents Cash, evidence of an ownership interest in an entity, or a contract that 

conveys to a second entity a contractual right (a) to receive cash or another financial instrument from a 

first entity or (b) to exchange other financial instruments on potentially favorable terms with the first entity 

Financial Futures 

A futures contract based on financial instruments or indices. 

Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) 

An act of Congress to reform, recapitalize, and consolidate the federal deposit insurance system, and to 

enhance the regulatory and enforcement powers of federal financial institutions’ regulatory agencies. 

FIRREA established the Office of Thrift Supervision (OTS), the Federal Housing Finance Board, the 

FSLIC Resolution Fund, the Resolution Trust Corporation, and the Resolution Funding Corporation. 

FIRREA dissolved the Federal Home Loan Bank Board (FHLBB) and Federal Savings and Loan 

Insurance Corporation (FSLIC). 

FIRREA 

Financial Institutions Reform, Recovery, and Enforcement Act of 1989. 

First Mortgage 

A mortgage that creates a lien against real property. A first mortgage has first priority against other 

claims in the event of foreclosure. Also called a senior or first lien. 

Fiscal Year 

Any consecutive 12 months designated as the time frame for financial reporting and preparation of 

balance sheets, profit and loss statements, and other financial summations. 

Fixed Assets 

Those tangible assets, such as office buildings, furniture, fixtures, and equipment, used in the operation 

of a business that are not intended to be sold in the normal process of the business. 

Fixed-Rate Mortgage 

A mortgage in which the interest rate and the amount of each interest and principal payment remain 

constant throughout the life of the loan. 

Floating-Rate Securities 

A security whose interest rate varies or floats in relation to a specific index or benchmark, such as the rate 

on Treasury securities, LIBOR, etc. 

 GLOSSARY 2023 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

Floating-Rate Tranches 

CMO tranches that have rates that adjust in the same direction, and by the same amount, as an index 

such as LIBOR. 

Floor Planning 

Commercial loans that finance automobile or mobile home floor stock (dealer inventory). 

FmHA 

Farmers Home Administration. 

FNMA 

Federal National Mortgage Association or Fannie Mae. 

Forbearance Agreement 

A verbal or written agreement providing that the savings association will delay exercising its rights in the 

case of a mortgage loan foreclosure as long as the borrower performs certain agreed-upon actions. 

Foreclosure 

Legal process protecting the mortgagee should the mortgagor default on the mortgage, whereby the 

mortgagee obtains title to the collateral. 

Foreign Exchange Rate 

The price of one currency denominated in another currency such as the value of British pounds 

expressed in U.S. dollars. 

Forward Commitment or Forward Commitment Contract 

Agreement between a buyer and seller to purchase or sell a specified amount of mortgages or securities 

at an agreed-upon price, and at a specified future date. Sometimes called a forward delivery contract or 

forward coverage. 

Forward Delivery 

Delivery of loans or securities to be made at a future date. 

Freddie Mac 

FHLMC, Federal Home Loan Mortgage Corporation. 

Freddie Mac Participation Certificate (PC) 

A mortgage-backed security, guaranteed by the Federal Home Loan Mortgage Corporation as to the 

timely payment of interest at the certificate rate and the ultimate collection of principal, which represents a 

proportional undivided ownership interest in a pool of mortgage loans. Generally, each PC group 

contains fixed-rate equal installment conventional residential mortgage loans with original terms to 

maturity of between 10 and 30 years. 

FRR 

SEC Financial Reporting Release. 

FSLIC 

Federal Savings and Loan Insurance Corporation. 

FSLIC Resolution Fund 

A fund FIRREA established to assume all the assets and liabilities of FSLIC. The RTC managed the 

FSLIC Resolution Fund. The RTC was dissolved in December 1995, upon the satisfaction of all debt and 

liabilities and the sale of all assets assumed by it. 

Funded Debt 

Debt that is usually long-term, for which certain assets have been set aside to satisfy the debt. 

2024 GLOSSARY 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

Futures Call Option 

An option contract that gives the buyer the right to assume a long T-Bond futures position at a fixed strike 

price any time prior to the contract’s expiration date. When assigned, a call option seller automatically 

assumes a short futures position. 

Futures Contract 

An agreement to take (by the buyer) or make (by the seller) delivery of a specific commodity on a 

particular date. The commodities and contracts are standardized so that an active resale, secondary, 

market will exist. Futures contracts are available for a variety of items including grains, metals, and 

foreign currencies. 

Futures Price 

The price of a contract for delivery of a specific dollar amount of a standardized financial instrument in a 

designated future month. 

Futures Put Option 

An option contract that gives the buyer the right to assume a short T-Bond futures position, at a fixed 

strike price, any time prior to the contract’s expiration date. When assigned, a put option writer 

automatically assumes a long futures position. 

g 

GAAP 

Generally accepted accounting principles. 

Gap 

The imbalance between the maturities (or repricing) of assets and liabilities of a financial institution; a 

measure of that imbalance. Gap refers to a specific time interval, such as a 30-day gap, which is the 

degree to which assets repricing within 30 days exceed or fall short of liabilities repricing in 30 days. See

Net Portfolio Value Model. 

General Valuation Allowance 

A contra-asset established against receivables and investments based on the amount expected to be 

collected. General valuation allowances are established for the purpose of covering probable but not 

specifically identifiable credit losses. See Allowance for Loan and Lease Losses and Specific Valuation 

Allowance. 

Generally Accepted Accounting Principles (GAAP) 

The basic principles of accounting promulgated either through authoritative sources such as the Financial 

Accounting Standards Board (FASB), or, if no written standards exist, through widespread common 

practices. 

GIC 

Guaranteed Investment Contract. See Bank Investment Contract (BIC). 

Government National Mortgage Association (Ginnie Mae) 

A wholly owned U.S. government corporation, known as Ginnie Mae, which is part of the Department of 

Housing and Urban Development (HUD). Ginnie Mae guarantees the timely payment of principal and 

interest on mortgage-backed securities that represent an interest in a pool of mortgages insured by VA or 

FHA, and are backed by the full faith and credit of the United States government. 

Ginnie Mae Certificates 

Mortgage pass-through securities with the full and timely payment of principal and interest guaranteed by 

Ginnie Mae. A Ginnie Mae certificate represents a proportional, undivided ownership interest in a pool of 

fixed-rate mortgage loans. Also known as Ginnie Mae Pools. 

Ginnie Mae Pool 

See Ginnie Mae Certificates. 

 GLOSSARY 2025 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

Goodwill 

The premium exceeding fair value of net identifiable assets of an acquired association in a purchase 

business combination. 

Government Sponsored Enterprise (GSE) 

Privately owned corporations chartered and supervised by the U. S. Government. GSEs include Fannie 

Mae and Freddie Mac who are supervised by the Office of Federal Housing Enterprise Oversight 

(OFHEO), a part of HUD. Federal Home Loan Banks are also GSEs and are supervised by the Federal 

Housing Finance Board. 

Graduated-Payment Adjustable Mortgage Loan (GPAML) 

A graduated payment mortgage that has a variable interest rate. The initial scheduled payment is 

insufficient to pay all the interest due. The unpaid interest increases the principal of the loan and the 

scheduled payments increase over the term of the loan so the loan will fully amortize at maturity. 

Graduated-Payment Mortgage (GPM) 

A graduated payment mortgage with a fixed interest rate. The initial payment is lower than that on a 

standard fixed-rate mortgage and is insufficient to pay all the interest due. The unpaid interest increases 

the principal of the loan and the scheduled payments increase over the term of the loan so the loan will 

fully amortize at maturity. 

Grandfather Clause 

Any condition that ties existing rights or privileges to previous or remote conditions or acts. More 

popularly used when a new regulation goes into effect, to exempt associations already engaged in the 

activity being regulated. 

Gross 

The total amount before any deductions. 

Gross Income 

Total income before deducting expenses. 

Gross Margin 

See Net Interest Margin. 

GSE 

Government Sponsored Enterprise. 

Guaranteed Student Loans 

Education loans primarily made by banks, savings and loan associations, and credit unions, and some 

colleges, payment of which is guaranteed by the federal or state government. 

h 

Hedging 

The matching of assets to liabilities of a similar nature; the assumption of one risk calculated to offset 

another. The buying or selling of offsetting positions to protect against an adverse change in price or 

interest rates. In mortgage banking, the purchase or sale of mortgage futures contracts to offset cash 

market transactions to be made at a later date. 

HMDA 

Home Mortgage Disclosure Act. 

2026 GLOSSARY 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

Holding Company 

A corporation or other entity that owns a majority of voting stock or securities of another corporation, thus 

obtaining control of the other corporation. Section 1730a of the National Housing Act (NHA) defines a 

savings and loan holding company as follows: “savings and loan holding company means any company 

which directly or indirectly controls an insured institution or controls any other company which is a savings 

and loan holding company by virtue of this subsection”. NHA defines control as owning 25 percent or 

more of the voting stock. Also referred to as Thrift Holding Company. 

Home Equity Loan 

Revolving, open-end loans secured by a one- to four-family property and extended under lines of credit. 

Although residential property secures home equity loans, in some cases they may not have an appraisal 

meeting OTS standards, or may not have a sufficient loan-to-value level and, thus, are classified as a 

nonmortgage loan. 

Home Improvement Loan 

A loan usually not secured by a recorded lien on the property and usually short-term, made to a property 

owner for such improvements as maintenance and repair, additions and alterations, or replacement of 

equipment or structural elements. 

Home Loan 

A residential mortgage loan secured by a one- to four-family property. 

Home Mortgage Disclosure Act (HMDA) 

A law that requires the annual disclosure of mortgage loan data by depository institutions, service 

corporations, and mortgage banking subsidiaries located in metropolitan statistical areas. Institutions 

subject to the Act are required to disclose data on all mortgage loans and home improvement loans that 

they originate and purchase each year. 

Hypothecated Deposit 

Deposits accumulated until the sum of the payments equals the entire amount of principal and interest on 

the contract, at which time the loan is considered paid in full. Typically state law determines the handling 

of hypothecated deposits. In reporting Schedule SC, you should net hypothecated deposits against the 

related loans. 

i 

Income 

Money or its equivalent, earned or accrued, arising from the sale of goods or services. 

Income Tax 

A tax on annual earnings and profits of a person, corporation, or organization. Traditionally, there are 

federal, state, and city taxes, although not all states and not all cities tax income. 

Index 

A price indicator such as LIBOR or T-Bill rates. The repricing of the interest rate on an adjustable rate 

mortgage is typically governed by an index rate. Rate movements of the mortgage are adjusted to 

correspond to movements in the index. The index rate generally is a published interest-rate series that is 

readily verifiable by the borrower and not under the control of the lender. 

Individual Retirement Account (IRA) 

Special accounts where you can save and invest, where the taxes generally are deferred until money is 

withdrawn. These plans are defined by statute and are subject to frequent changes by Congress. 

Withdrawals of tax-deferred contributions are generally taxed as income, including the capital gains from 

such accounts. Withdrawal prior to a specified retirement age or for purposes other than those specified 

by law may be subject to a tax penalty. Types of IRAs include Keogh Plans, Roth IRAs, and Education 

IRAs. 

 GLOSSARY 2027 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

Initial Margin 

The amount of deposit a broker initially requires to purchase securities on behalf of an investor. See

Margin. 

Insolvent 

(1) A condition in which the value of liabilities exceeds the value of assets according to some accounting 

standard such as generally accepted accounting principles (GAAP). That is, net worth, or capital, is 

negative. (2) The state of being unable to pay debts when demanded by creditors at maturity. 

Installment 

The regular, periodic payment to repay a debt that a borrower agrees to pay. . 

In-Substance Foreclosure 

A situation in which the lender considers the collateral underlying a loan repossessed in substance by the 

lender and accounts for it at its fair value, consistent with generally accepted accounting principles 

(GAAP). In-substance foreclosure occurs when the debtor formally or effectively abandons control of the 

collateral to the creditor. 

Interest 

A fee paid for using money that belongs to another, usually expressed as an annual percentage of the 

amount used. A financial institution makes periodic payments of interest to savers for the use of their 

deposited funds. A borrower pays interest on a loan to the financial institution for the use of its funds. 

Interest-Only (I/O) Strip 

The interest portion of a security (debt security or mortgage security). The owner of an IO strip receives 

only the interest payments of the security. The owner of an IO strip of a mortgage pool security receives 

only the interest payments on the cash flow of the underlying mortgages. 

Interest-Rate Cap 

See Cap. 

Interest-Rate Collar 

(1) A contractual agreement that limits the interest paid or received if the interest rates increase or 

decrease by a predetermined number of percentage points. (2) A two-sided cap. 

Interest-Rate Swaps 

A transaction that involves two parties exchanging their interest payment obligations – no principal is 

exchanged – on two different kinds of debt instruments, one bearing a fixed interest rate and the other a 

floating interest rate. If a savings association has fixed-rate assets and floating-rate liabilities, it typically 

will swap its floating rate payment for a fixed-rate payment to match liability repricing to asset repricing. 

In-the-Money 

An option with a favorable price opportunity. The strike price is less than market for a call and above the 

market for a put. 

Intrinsic Value 

The amount by which an option is in-the-money. For call options, it is the current T-Bond futures price 

minus the strike price if the difference is a positive number. For put options, it is the strike price minus the 

current price of T-Bond futures if the difference is a positive number. See Swap. 

Inverse Floater 

An asset that adjusts in the opposite direction of the movement of interest rates. Generally the inverse 

floater adjusts by a multiple of an interest-rate index. It is usually repriced based on a formula containing 

a multiple of the LIBOR rate. For example, if an inverse floater adjusts at an inverse of 1.25 times LIBOR, 

a decrease of two basis points in LIBOR would result in an increase in the rate of the inverse floater of 2.5 

(2 x 1.25) basis points. 

2028 GLOSSARY 
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Inverse-Floating Rate Tranches 

CMO tranches that have adjustable rates that adjust in the opposite direction as an index such as LIBOR. 

Frequently, the rate adjusts by a multiple of the change in the index. 

Investment 

The use of capital to create more money, either through income-producing vehicles or through more riskoriented ventures designed to result in longer term capital gains. 

Investment Accounts 

Accounts that range from short-term, highly liquid securities, such as U.S. Treasury Bills, to long-term 

railroad equipment trust certificates that are not always liquid. In between, there are debentures, floaters, 

notes, put bonds, and cushion bonds, along with a broad array of short-term money market instruments. 

Investment accounts may be trading accounts, available-for-sale, or held-to-maturity. 

I/O 

Interest Only. 

I/O Strip 

Interest-only strip. The interest portion of a security (debt security or mortgage security). See Interestonly Strip. 

IRA 

Individual Retirement Account. 

Issuer 

One who issues securities to others. 

j 

Joint Venture 

Any joint undertaking between two or more parties in such legal form as joint tenancy, tenancy in 

common, partnership, or a corporation. 

Judgment 

A formal decision given by a court. A judgment against a property is generally a lien against the property. 

See Lien. 

Junior Lien 

A lien that is subordinate to the claims of prior lien(s) or mortgage(s). See Second Mortgage. 

Junk Bonds 

Bonds issued by companies without long track records of sales and earnings. These bonds are more 

volatile and pay higher yields than investment-grade bonds. 

l 

Land Loan 

Loan for unimproved land, developed building lots, and the acquisition and development of land. 

Letter of Credit 

A document issued by a financial institution on behalf of its customer authorizing a third party, or in some 

cases the customer, to draw drafts on the institution up to a stipulated amount and with specified terms 

and conditions. The letter of credit is a conditional commitment, except when prepaid by the customer, 

on the part of the institution to provide payment on drafts drawn in accordance with the terms of the 

document. 

Liabilities 

Debts incurred but not paid. For savings associations, liabilities consist of deposits, borrowings including 

long-term debentures, and other liabilities. 

 GLOSSARY 2029 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

LIBOR 

London Interbank Offered Rate. An international interest-rate index, similar to the federal funds rate of 

banks in the United States. It is commonly used as a repricing index for various financial instruments 

such as ARMs, CMO tranches, and interest-rate swaps. 

Lien 

A claim by one person or entity on the specific property of another and that serves as security for a debt. 

The security interest in real estate created by a mortgage. A lien is typically recorded in the legal 

jurisdiction (county) in which the property is located. 

Line of Credit 

A pre-established loan authorization with a specified borrowing limit extended by a lending institution to 

an individual or business. Most lines of credit are unsecured; however, certain lines of credit, such as 

home equity loans, are secured by the borrower’s equity in property. A line of credit allows borrowers to 

obtain a number of loans without re-applying each time as long as the total of borrowed funds does not 

exceed the pre-established credit limit. 

LIP 

Loans-in-process. 

Liquidation 

Closing a savings association by paying the claims of insured depositors and other secured creditors. 

Liquidation may be a voluntary decision made by the board of directors, or may be mandated and 

executed by the FDIC. 

Liquidity 

The amount an entity holds in cash and other assets quickly convertible into cash without significant loss. 

Loan 

Money advanced by one entity to another to be repaid within a specified time, typically with a specified 

rate of interest, as set forth in a note or other evidence of indebtedness. Loans may be unsecured or 

secured by real or personal property but do not represent an equity interest in the underlying security for 

the lender. See Mortgage Loan. 

Loan Loss Reserve 

A contra-asset set up to compensate for anticipated losses from loans. See Allowance for Loan and 

Lease Losses. 

Loan Origination 

The steps a lending institution takes to obtain a borrower and underwrite a loan up to the time a loan is 

booked, including soliciting, processing applications, appraising, and closing. 

Loan Origination Fee 

The initial service charge that a lending institution imposes on a borrower for underwriting a loan. See

Origination. 

Loan Participation 

(1) The purchase of portions of outstanding loans by investors, who then participate on a pro rata basis in 

interest and principal payments; (2) a loan or package of loans in which two or more lenders share 

ownership. See Participation Loan. 

Loan Portfolio 

The total loans held by a financial institution or other lender, at a given time. 

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THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

Loans-in-Process 

Loans that an association closed, but the full principal of which has yet to be disbursed. Generally, these 

are construction loans that are typically disbursed in stages as construction is completed. The full 

amount of a loan is recorded on the savings association’s books at closing, with the undisbursed portion 

recorded in the contra-asset account called loans-in-process. Report loans on the TFR net of loans-inprocess. 

Loans to Facilitate 

A mortgage loan in which the lender provides a borrower with funds at a high loan-to-value ratio and/or 

below-market interest rates to facilitate the borrower’s acquisition of a piece of property owned by the 

lender. 

LOCOM 

Lower of cost or market. 

Long 

(1) As a noun, one who has bought futures contracts and has not yet offset that position. (2) As an 

adverb, going long, the action of taking a position in which one has bought futures contracts without 

taking the offsetting action. The long protects against declining rates of interest. 

Long-Term, Fixed-Rate Tranches 

CMO tranches that have fixed rates and are expected to mature in five years or more. 

Long-Term Planned Amortization Classes (PACs) 

CMO tranches that have fixed rates, a prioritized repayment schedule within certain prepayment speeds, 

and expected maturity of more than five years. Targeted Amortization Classes (TACs) are considered to 

be substantially similar to PACs for reporting purposes. 

Long-Term PAC Support Tranches 

CMO tranches that have fixed rates, expected maturity of more than five years, and are part of a CMO 

structure that contains a PAC or TAC tranche(s). 

Loss 

(1) The amount of all expenses exceeding revenues for a period or for a transaction. (2) A classification 

of assets under OTS regulations where recovery is unlikely. See Specific Valuation Allowance, Classified 

Assets. 

Lower-of-Cost-or-Market (LOCOM) 

An accounting method used to establish the amount at which certain assets are recorded. The amount 

established is the lower of the cost of the asset or the current market value. Under this method, assets 

must be written down if the market value falls below amortized cost but the asset may never be written up 

to a market value above amortized cost. 

LTV 

Loan-to-value. The ratio of a loan to the appraised value of the property securing the loan. 

m 

Maintenance Margin 

Additional assets required by a broker on a margin account due to decreases in the market value of the 

securities that guarantee the margin account. See Margin. 

Majority Stockholders 

Stockholders whose share of voting stock is so large that they can exercise control over the corporation. 

. Generally, an ownership of 20% or more is deemed to constitute control. 

Majority-Owned Subsidiary 

A subsidiary whose parent company, or parent’s majority-owned subsidiaries, owns more than 50 percent 

of the outstanding voting capital stock. 

 GLOSSARY 2031 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

Mandatory Convertible Securities 

Subordinated debt instruments that are eventually transformed into common or perpetual preferred stock 

within a specified period of time. Generally, there are two types: (1) equity contract notes - securities that 

oblige the holder to take common or perpetual preferred stock of the issuer in lieu of cash for repayment 

of principal; and (2) equity commitment notes - securities that are redeemable only with the proceeds from 

the sale of common or preferred stock. 

Mandatory Delivery 

A lender’s commitment to deliver loans or securities or pay a penalty. 

Margin 

(1) The amount of deposit money that a securities broker requires from an investor to purchase securities 

on credit. (2) An amount of money or securities deposited by buyers and sellers of futures contracts and 

short options to ensure performance of the contract terms, such as, the commitment to make or take 

delivery of the commodity or the cancellation of the position by a subsequent offsetting trade at such price 

as can be attained. Margin in commodities is not a payment of equity or down payment on the 

commodity itself, but rather is in the nature of a performance bond or security deposit. See Initial Margin 

and Maintenance Margin. 

Mark-to-Market 

An accounting procedure by which assets are recorded at current market value, which may be higher or 

lower than their purchase price or book value. Examples of the use of mark-to-market accounting are: 

purchase accounting, pushdown accounting, and accounting for certain securities. See FSAS No. 115, 

Accounting for Certain Investments in Debt and Equity Securities. 

Market Value 

(1) The price established in a competitive market where buyers and sellers meet to buy and sell similar 

products. (2) A price determined by supply and demand factors rather than by management. (3) The 

price at which an owner is prepared to sell and an unrelated buyer is willing to buy. 

Marketable Title 

Title to property that is free from a claim, lien, charge or defect and that will not be subject to legal 

objection. Also known as perfect title, clear title, and good title. 

Master Netting Agreement 

A master netting arrangement commonly creates a right of set-off that becomes enforceable and affects 

the realization or settlement of individual financial assets and financial liabilities only following a specified 

event of default or in other circumstances not expected to arise in the normal course of business. A 

master netting arrangement does not provide a basis for offsetting unless (1) a company has a legally 

enforceable right to set off the recognized amounts, and (2) it intends either to settle on a net basis, or to 

realize the asset and settle the liability simultaneously. When financial assets and financial liabilities 

subject to a master netting arrangement are not offset, the effect of the arrangement on an entity's 

exposure to credit risk is disclosed. 

Maturity 

The date on which the principal balance of a debt becomes due and payable. The date when a debt is 

paid in full. 

Maturity Mix 

The variety of assets found in an investment portfolio that vary in terms of length, such as 90-day 

Treasury bills, 20-year corporate bonds, etc. 

MBS 

Mortgage-backed security. 

MCD 

Mandatory Convertible Debt. 

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Merger 

The combining of two or more entities either through one purchasing the assets and liabilities of the 

other(s) or the pooling or combining of two or more entities into one new entity. 

Noncontrolling Interest 

The portion of net worth of a subsidiary relating to shares not owned by the controlling company or other 

members of the combined group. Example 1: A parent owns 75% of the controlling interest in Company 

B; therefore, there is a 25% noncontrolling interest in Company B. Example 2: A parent owns 50% of the 

voting stock of Company B and 100% of Company C; Company C owns 25% of Company B. Therefore, 

the parent effectively controls 75% of Company B and there is a 25% noncontrolling interest in Company 

B. 

MMDA 

Money Market Deposit Accounts. 

Mobile Home 

A movable, portable dwelling without permanent foundation, designed for year-round living. 

Mobile Home Certificates 

Variations of the Ginnie Mae certificate. Fully guaranteed, pass-through securities that are collateralized 

by mobile home loans. 

Mobile Home Loan 

A loan to finance the purchase of a mobile home, secured by the lender’s claim on the mobile home. The 

loan may include funds for associated costs such as transportation of the mobile home and setup on a 

new site. 

Monetary Policy 

Federal Reserve Board policy that pertains to the control of credit availability, and thus interest rate 

levels. 

Money Market Deposit Accounts (MMDA) 

A savings account offered by Federal savings associations in accordance with 12 U.S.C. §1464(b)(1) and 

by state-chartered savings associations in accordance with applicable state law on which market rates of 

interest may be paid if issued subject to certain limitations. Limitations include: (1) Minimum of seven 

days' notice required prior to withdrawal or transfer. (2) Transfers limited to no more than six per calendar 

month. 

Money Market Fund 

The combined money of many individuals jointly invested in high yield financial instruments such as U.S. 

government securities, certificates of deposits, and commercial paper. A money market fund is a mutual 

fund that strives to make a profit by buying and selling various forms of money rather than buying and 

selling shares of ownership in corporations. 

Mortgage-Backed Bonds 

Bonds secured by mortgages. Unlike mortgage-backed pass-through securities, mortgage-backed bonds 

do not convey ownership of any portion of the underlying pool mortgages. However, mortgage-backed 

bonds do offer a more predictable maturity and thus offer a form of call protection. 

Mortgage-Backed Security (MBS) 

A security backed by mortgages, the owners of which participate in receiving payments of principal and/or 

interest. See Mortgage Derivative and Mortgage Pool Security. 

 GLOSSARY 2033 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

Mortgage Banker 

(1) A firm or individual who, acting as a broker, originates loans and then sells them to investors. A 

mortgage banker may retain the servicing rights to the loans it originates, but does not retain the loans as 

an investment (all loans held by a mortgage banker are held for sale). 

(2) A firm or individual who brings a borrower and lender together, receiving a commission if a loan is 

made. 

Mortgage Derivative 

Any variety of mortgage-backed securities of complex structures whose payments to investors are 

derived from the cash flows of mortgages, but in which the cash flows from the mortgages are not passed 

through proportionately to the holders of the securities. 

Mortgage Loan 

An advance of funds from a lender, the mortgagee, to a borrower, the mortgagor, secured by real 

property and evidenced by a document called a mortgage. The mortgage sets forth the conditions of the 

loan, the manner and duration of repayment, and the rights of the mortgagee to repossess the pledged 

property if the mortgagor defaults. 

Mortgage Loans Outstanding 

The total amount of money that is owed by mortgagors (borrowers). 

Mortgage Origination 

The making of a new mortgage. See Loan Origination. 

Mortgage Participation 

The division of a mortgage or pool of mortgages into units owned by one or more investors, who 

participate in receiving payments of principal and interest. See Loan Participation. 

Mortgage Pool Security 

A number of mortgages combined and issued as a single security. Repayments from the mortgages in 

the pool are passed through to the investor(s) proportionate to ownership interest and with the same 

timing with which they are received. The security provides each investor with a proportional ownership 

interest in the underlying collateral. 

Mortgage Portfolio 

All mortgage loans or obligations held as assets by a financial institution or other lender. 

Mortgagee 

The financial institution, group, or individual that lends money secured by real estate. The lender. 

Mortgagor 

Real estate owner who pledges real estate as security for a loan. The borrower. 

Multifamily Residential Property 

Property containing five or more dwelling units. An apartment building, a residence hall for students or 

employees, a retirement complex, etc. See Dwelling Units, 5 or More. 

Municipal Bond 

A tax exempt debt obligation issued by a state or local government agency to raise funds for the public 

good, such as for building low-income housing, improving streets, or building bridges. The bonds are 

redeemed with interest and are backed by the government’s taxing authority. Municipal bonds are 

generally exempt from Federal income taxes. 

Municipal Deposits 

Deposits of state and local government funds, which, under the laws of certain jurisdictions, are secured 

by the pledge of acceptable securities or by a surety contract (depository bond) to directly protect these 

funds. See Preferred Deposits. 

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Mutual Association 

A savings association that issues no capital stock, but is owned and controlled solely by its savings 

depositors, who are called members. Members do not share in profits, but they exercise other ownership 

rights such as electing the board of directors. 

Mutual Fund 

A mutual fund pools the funds of many investors and provides professional management in investing 

those funds. Also called an open-end investment company. See Proprietary Mutual Funds. 

n 

National Bank 

A commercial bank organized with the consent and approval of the Office of the Comptroller of the 

Currency and operated under the supervision of the Federal government. National banks are required to 

be members of the Federal Reserve System and must purchase stock in the Federal Reserve Bank in 

their district. 

Negative Amortization 

Any increase in the loan balance arising from a mortgage payment being too small to pay all the interest 

due that month. The lender effectively makes the borrower an additional loan at the mortgage rate for the 

amount of unpaid interest. This additional loan must be repaid over the remaining term of the mortgage. 

Negotiable Order of Withdrawal (NOW) Account 

A savings account with characteristics of a checking account. An account holder can withdraw funds by 

writing a negotiable order of withdrawal payable to a third party. NOW accounts may earn interest. 

Net 

That which remains after making certain designated deductions from the gross amount. 

Net Assets 

The assets of an individual or entity remaining after all obligations have been met. Assets minus 

liabilities. The owners’ equity. 

Net Income 

Gross income less expenses, including taxes, but before dividends. 

Net Interest Margin 

Interest income less interest expense, before the inclusion of noninterest income and deduction of 

noninterest expense. This is the gross margin for financial institutions. 

Net Loss 

The excess of expenses and losses over revenues and gains during a specified period of time. A 

negative net income. 

Net Operating Income 

Net interest margin less provision for losses and operating expenses plus noninterest income. 

Net Operating Loss (NOL) 

A loss for tax purposes that can be applied against net income from prior periods (NOL carry-back) or 

subsequent periods (NOL carry-forward) to reduce the tax liability of those periods. 

Net Portfolio Value Model 

A model used by the OTS to measure each association’s exposure to interest rate risk by estimating how 

a change in interest rates affects the market value of its assets, liabilities, and off-balance-sheet. 

Net Present Value 

Sum of the future cash flows (positives and negatives) discounted to present value under the theory that 

money received today is worth more than the same amount received in the future. 

 GLOSSARY 2035 
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Net Profit 

See Net Income. 

Net Realizable Value (NRV) 

The estimated sales price from a property, reduced by the sum of: 

(1) Direct selling expenses such as sales commissions, cost of title policy, etc. 

(2) Costs of completion or improvement necessary for sale. 

(3) Direct holding costs, net of rental or other income, including taxes, maintenance, insurance, and cost 

of all capital, debt and equity, during the period held for sale. 

Net Undistributed Income 

Profit earned but not distributed to stockholders. 

Net Worth 

The owner’s equity. Assets less liabilities, deferred income, redeemable preferred stock, and 

noncontrolling interest. Also called net assets, equity, stockholders’ equity, and equity capital. See

Capital. 

NOL 

Net operating loss. 

Nominal Interest Rate 

The stated or contractual interest rate in a loan agreement, bond, or other security, which may differ from 

the effective interest rate. 

Nonconforming Loans 

A real estate mortgage loan is nonconforming if the unpaid principal balance or unexpired term exceeds 

lending limits set by purchasers or guarantors of mortgages in the secondary market – Freddie Mac, Fannie 

Mae, etc. 

Nonmortgage Loan 

An advance of funds not secured by a lien on real estate. See Loan. 

Nonperformance 

The failure of a contracting party to provide goods or services according to an agreement. 

Nonperforming Assets 

Assets that do not earn income, including those originally acquired to earn income (delinquent loans) and those 

not intended to earn income (fixed assets). Typically assets originally acquired to earn income are deemed 

nonperforming when (1) full payment of interest or principal is no longer anticipated, or (2) the principal or 

interest that is due at a regularly scheduled payment date or the maturity date is 90 days or more delinquent 

even if the asset is still in accrual status. Nonperforming loans that are restructured continue to be considered 

nonperforming until a cash payment from the borrower brings the loan current under its restructured terms; for 

instance, a loan cannot be taken out of the nonperforming category simply by restructuring the loan. 

Nonresidential Mortgage Loan 

A mortgage loan secured by nonresidential property such as an office building, store, factory, church, or vacant 

land. 

Note 

An instrument that bears the recognized legal evidence of debt. A note is signed by the maker (borrower) and 

promises to pay a specified sum of money to the lender at a certain future date and place. 

2036 GLOSSARY 
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Notice of Default 

A notice to a borrower with property as security under a mortgage or deed of trust that he/she is overdue in 

payments. If the amount owed, plus costs of preparing the legal papers for the default, are not paid within a 

certain time, foreclosure proceedings may be brought against the property. The filing of a notice of default is 

the initial step in the process of foreclosure. 

Notional Principal 

The amount of principal underlying an interest rate swap transaction, and upon which the swap payment 

calculation is based. See Interest-rate Swaps. 

NRV 

Net Realizable Value. 

o 

Oakar 

An "Oakar" savings association is a savings association (OTS-regulated institution) that was a member of one 

insurance fund, generally the Savings Association Insurance Fund (SAIF), and acquired deposits insured by a 

secondary insurance fund, generally the Bank Insurance Fund (BIF), by means of a so-called "Oakar 

transaction." The most common Oakar transaction occured when a SAIF-member acquired deposits from a 

BIF-member, either by means of a whole-institution acquisition or through a branch acquisition. The reverse, 

an acquisition of SAIF-insured deposits by an OTS-regulated, BIF-member (“BIF HOLA” savings association), 

was also considered an “Oakar transaction.” BIF and SAIF were merged into the Deposit Insurance Fund in 

April 2006 pursuant to the Federal Deposit Reform Act of 2005. 

OBS 

Off-balance-sheet. 

Occupancy Rate 

The percentage of space or units that are leased or occupied. The inverse of the vacancy rate. 

OFHEO 

Office of Federal Housing Enterprise Oversight. 

Off-Balance-Sheet 

An asset or obligation that in accordance with GAAP you do not report on the balance sheet. Such as 

commitments to originate loans, undisbursed loan balances, unused letters of credit, etc. 

Offer 

An expression of willingness to sell something at a given price; opposite of bid. 

Offering 

An issue of securities or bonds presented for sale. An offering may be public (open to anyone wishing to 

buy) or private (predetermined buyers or market). 

Office of Federal Housing Enterprise Oversight (OFHEO) 

A government agency responsible for ensuring the financial safety and soundness of the nation's two 

largest players in the secondary mortgage market, the Federal National Mortgage Association (Fannie 

Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). OFHEO is an independent office 

of the Department of Housing and Urban Development, and was established by the Federal Housing 

Enterprises Financial Safety and Soundness Act of 1992. 

Office of Thrift Supervision (OTS) 

An office of the Treasury Department of the Federal government. The OTS was established in 1989 by 

FIRREA to succeed the Federal Home Loan Bank Board for chartering and regulating federal savings 

associations. 

Official Checks 

A financial institution’s check drawn on its own account for paying its operating expenses and other debts. 

See Cashier’s Checks. 

 GLOSSARY 2037 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

Offset 

The process used to close an open futures option; for instance, to sell after having previously purchased, 

or to buy after having previously sold. 

Open Position 

An outstanding position in a futures contract, which has not been offset. If not covered prior to maturity, 

the trader is liable for taking or delivering the underlying commodities. 

Open Repo 

A repo with no definite term that can be terminated by either party. The rate paid is typically higher than 

that paid on overnight repos and is subject to adjustment on a day-to-day basis. 

Open-End Credit 

An unsecured line of credit that may be used repeatedly up to an established overall limit. Commonly 

known as revolving credit or a line of credit, in which the customer may pay in full or in installments. A 

finance charge is assessed on the unpaid balance. The term does not include negotiated advances 

under an open-end real estate mortgage or a letter of credit. See Line of Credit. 

Open-End Mortgage 

A mortgage that by mutual agreement may have the balance or maturity extended to provide additional 

funds to the mortgagor. See Home Equity Loan. 

Operating Assets 

Those assets that contribute to the regular income from business operations, such as loans and 

investments; the opposite of which are nonoperating assets, such as real estate held for future use and 

non-income-producing intangibles such as goodwill. Nonperforming assets that were acquired with the 

intent to produce operating income are included in operating assets. 

Operating Capital 

Funds available for use in financing daily business activities. 

Operating Expense 

Any expense incurred in the normal operation of a business. This is distinguished from capital 

expenditures, which are disbursements that are capitalized and depreciated over a period of years. 

Operating Income 

Income generated in the ordinary course of business. For savings associations, income generated by the 

customary lending and deposit-taking business. 

Operational Loss 

Loan losses that arise outside of a relationship between a creditor and a borrower. Losses incurred in the 

normal operation of a business. 

For example, an independent third party created credit cards through the use of an illegal credit card machine 

and stole the identification and credit card numbers of various individuals. The subsequent charges on these 

credit cards and losses incurred by the bank would be an operational loss, because the bank did not issue 

these credit cards and did not have a contractual relationship with a borrower. 

Option 

A right to buy or sell specific securities or properties at a specified price within a specified time. (1) Call option: 

The right but not the obligation to purchase a specific amount of a specific commodity or security at a specified 

price before a specified date. The seller (writer) grants such right to the buyer of the call. (2) Put option: The 

right to sell a specific amount of a commodity or security to the writer of the put at a specific price on or before 

a specific date. The buyer of a call or put pays to the seller (writer) a “premium” for being granted the right. 

There are options on actual securities or commodities as well as options on futures contracts. 

2038 GLOSSARY 
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Option ARM 

It is an adjustable rate mortgage on which the interest rate adjusts monthly and the payment adjusts annually, 

with borrowers offered options on how large a payment they will make. Payment options include fully 

amortizing, interest-only, and a "minimum" payment that may be less than the interest-only payment. The 

minimum payment option results in a growing loan balance, or negative amortization. 

Option Buyer (Holder) 

A person who holds the rights granted by the option contract. 

Option Seller (Writer) 

A person who, in exchange for receiving the premium, agrees to assume the opposite side of an option 

contract at a fixed price any time prior to the contract’s expiration date. 

Originate a Loan 

To make or issue a loan; the process whereby a lender qualifies a borrower, appraises the collateral, 

processes all documents, advances funds, and places the loan on its books. 

Origination Fee 

A charge imposed by a lender for evaluating, preparing, and processing loan applications. 

OTS 

Office of Thrift Supervision. 

Out-of-The-Money 

An option where the strike price exceeds market for a call and is less than market for a put. 

Over-Collateralization 

Providing collateral in excess of what is needed to support the principal amount of secured debt. It is viewed 

as using two separate loan pools. One pool provides sufficient cash flow to support the debt; the other pool 

subsidizes cash flow shortfalls for loans with losses or delinquencies. 

Overdraft 

A draft or check written for an amount that exceeds the funds in the account on which the check is drawn. An 

overdraft, if not covered immediately by the writer of the check, essentially becomes a borrowing. 

Overnight Money 

(1) Any money that is replaced daily. (2) Funds loaned by one financial institution to another overnight, 

including but not limited to the federal funds market. A means for firms to earn interest on undrawn funds 

in their operating account at the end of the business day. 

p 

P & I 

Abbreviation for principal and interest. This is customarily used to describe the regular monthly checks 

that the servicer pays to the registered owner of the mortgage-backed securities. 

P/O 

Principal-only. 

P/O Strip 

Principal-only strip. 

PAC 

Planned Amortization Class. 

Paid-In-Capital 

The amount of capital in excess of the par value of common stock contributed to a corporation by its 

owners. 

 GLOSSARY 2039 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

Paper Gain Or Loss 

An expression for unrealized gains or losses on securities in a portfolio, based on comparison of current 

market quotations and the original costs. 

Par Value 

(1) The value assigned to a share of stock by the issuer at the time the stock is first offered for sale. The 

par value may be more or less than the market value. (2) The value of a bond or note at maturity. (3) 

The face value of a security. 

Partially Amortizing Loan 

A loan in which the periodic payments cover all of the interest charges but only part of the principal, 

therefore an unpaid balance is left when the loan matures. See Balloon Loan. 

Participation 

(1) Ownership by two or more lenders or investors of all or a portion of a single mortgage or a package of 

mortgages. (2) The cooperative origination by two or more lenders of a single, usually large, mortgage 

loan. See Loan Participation. 

Participation Certificate (PC) 

A document that describes a package of loans and the portion that is being bought or sold. See Freddie 

Mac Participation Certificate. 

Participation Loan 

(1) A loan made by one lender, known as the lead lender, in which one or more other lenders, known as 

participants, own a part interest. (2) A loan originated by two or more lenders. (3) A loan having two or 

more banks as creditors. See Loan Participation. 

Pass-Through 

This term, as used for mortgage-backed securities, signifies that the interest and principal payments due 

and/or paid on the underlying mortgages are passed through to the holders of the securities on a pro rata

basis. 

Pass-Through Securities 

Securities that convey ownership of a fraction of each mortgage in a pool of mortgages backing the 

security. Each security owner shares proportionally the interest and principal payments generated by the 

underlying pool of mortgages. 

Passbook Account 

A savings account that normally requires no minimum balance, or a nominal minimum balance of perhaps 

$50 to $100, no minimum term, no specified frequency of deposits, and no notice or penalty for 

withdrawals. A periodic statement mailed to the depositor has generally replaced the actual passbook, in 

which transactions are recorded. 

Passbook Loan 

A loan secured by funds in a savings account on deposit with the same association originating the loan. 

The pledged funds may not be withdrawn during the life of the loan. See Share Loan. 

Past Due 

An account on which payment has not been made according to the terms of the loan document. 

Delinquent. 

Payables 

A bookkeeping term for any accounts or notes payable. 

Payoff 

The complete repayment of loan principal, interest, and any other sums due. Payoffs result from either 

installment payments over the full term of the loan or lump sum payments, including payments made on 

the sale of the underlying collateral. 

2040 GLOSSARY 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

PC 

Participation Certificate. 

PCCR 

Purchased credit card relationship. 

Pension Fund 

A fund set up to collect regular premiums from employees and/or their employers, invest those premiums 

safely and profitably, and pay out a monthly income to employees who retire after reaching a specific age 

and length of service. 

Permanent Mortgage Loan 

A mortgage that is not a construction loan. Typically permanent mortgage loans are fully amortized for a 

period of 20 years or more. However, this classification also includes balloon mortgages and short-term 

mortgage loans that are not construction loans. 

Permanent, Reserve, or Guaranty Stock 

Par value of common stock outstanding. See Common Stock. 

Personal Check 

A check drawn on a depository institution by an individual against the individual’s own funds, as opposed 

to a check drawn against a business account. 

Planned Amortization Class (PAC) 

The PAC feature of a security creates a reserve or sinking fund that attempts to ensure the planned 

maturity for the bond or CMO tranche. Therefore, the payments on a PAC security are virtually insulated 

from prepayment risk. See Short-term Planned Amortization Classes and Long-term Planned 

Amortization Classes. 

Pledged Assets 

Assets pledged as collateral security against liabilities. 

Pledged Deposits 

Deposits to which a security interest has been attached or perfected by a creditor. Also called loans on 

deposits and share loans. 

PMI 

Private mortgage insurance. 

Point 

An amount equal to one percent of the principal amount of an investment or note. Loan discount points 

are a one-time charge assessed at closing by the lender to increase the yield on the mortgage loan to a 

competitive position with other types of investments. 

Pool 

A large group of mortgages which back a mortgage security. See Mortgage Pool Security. 

Pooling-of-Interest Method 

A method of accounting for business combinations which is no longer permitted by GAAP. 

In the pooling-of-interest method, assets, liabilities, and capital of the combining associations are added 

together on a line-by-line basis without any adjustments for current market value. The current carrying 

value (typically, historical costs adjusted for amortization of premiums and depreciation and accretion of 

discounts) of each asset, liability, and capital account of the disappearing association is added to the 

corresponding account of the surviving association. 

In the reporting period in which the merger occurs, income and expense is reported as though the entities 

had been combined for the entire period. See Purchase Method. 

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Portfolio 

Holdings of securities by an individual or entity. A portfolio may contain any marketable or potentially 

marketable investment such as bonds, mortgages, debt securities, equity securities, etc. 

Position 

Having a position in a futures contract means to have bought or sold a contract that has not been offset. 

See Open Position. 

Positive Gap 

An excess of assets repricing during a period of time over liabilities repricing during the same period; an 

asset sensitive position. See Gap. 

Preferred Deposits 

Deposits of states and political subdivisions in the U.S. that are secured or collateralized as required 

under state law. See Municipal Deposits. 

Preferred Stock 

Capital stock with preferences or special rights attached. For example, a stockholder may have a 

preferred position to receive dividends and/or proceeds in liquidation. Preferred stock typically yields a 

stated rate of interest, dividends, that may be cumulative or noncumulative. Preferred stock may be 

redeemable by the holder or nonredeemable. 

Premium 

(1) The amount, often stated as a percentage, paid in addition to the face value of a note or bond to 

adjust the yield to market. (2) A fee charged for the granting of a loan – points. (3) The price paid for an 

insurance contract. (4) A product given free or sold at discount, offered as an inducement to the public to 

open or add to a savings account, or to purchase other specified products or services. (5) The price paid 

by the buyer of an option contract. See Discount. 

Prepayment 

A payment made before its due date. For example, a 30-year mortgage may be prepaid after ten years if 

the mortgagor sells the property and the purchaser does not assume the mortgage. Borrowers typically 

prepay loans when interest rates fall and they can obtain cheaper financing. 

Prepayment Clause 

A provision in a promissory note stating the amount a borrower may repay ahead of schedule without 

incurring a penalty. 

Prepayment Penalty 

A fee assessed by a lender on a borrower who repays all or part of the loan principal before it is due. The 

prepayment penalty compensates the lender for the loss of interest that would have been earned had the 

loan remained in effect for its full term. 

Present Value 

The discounted value of a certain sum to be paid in the future, based on the theory that cash received 

today is worth more than the same amount of cash received in the future. See Net Present Value. 

Price 

The amount of money a seller receives for goods or services sold. Price is the amount of money actually 

received by the seller, not necessarily the amount originally asked for or the face value. In the buying and 

selling of bonds and mortgages, price is stated as a percentage of the face value of that instrument. For 

example, if sold at par, the price is 100 percent of the face value; a premium price could be 105 percent; 

and a discount price could be 95 percent of face value. See Premium, definition 1, and Discount. 

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THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

Prime Rate 

The interest rate charged by leading banks to their most secure customers. The prime rate tends to be a 

yardstick for general trends in interest rates. The interest on adjustable rate loans is sometimes stated in 

terms of the prime rate. For example, the rate of an adjustable rate loan may be stated as fifty basis 

points (0.5%) over prime. 

Principal 

(1) The amount of funds borrowed. (2) At closing, the face amount of a loan. (3) The amount of debt, 

exclusive of accrued interest, remaining on a loan. 

Principal-Only 

An account that does not charge interest on the remaining balance, so that payments are credited to 

principal only. 

Principal-Only Strip (P/O) 

A security from which the interest coupons have been separated. The owner of a P/O strip of a mortgage 

pool receives only the principal payments on the cash flow of the underlying mortgages. See InterestOnly Strip. 

Private Mortgage Insurance (PMI) 

Insurance policies written by private companies insuring lenders against loss resulting from defaults on 

mortgages. Generally, OTS will recognize only those insurance companies whose PMI is accepted by 

Fannie Mae or Freddie Mac, for purposes such as calculating high LTV and the risk weighting of a loan. 

Profit 

The excess income after all costs and expenses are paid. Net income. 

Profit and Loss Statement 

A summary listing a firm’s total revenues and expenses within a specified period of time. Also called a 

statement of operations or an income statement. 

Profitability 

A firm’s ability to earn a profit and its potential for future earnings. 

Promissory Note 

A written promise to pay a specific sum of money to a specified party under conditions mutually agreed 

upon. Also called a note, promise, or bond. 

Proprietary Mutual Funds 

Those funds where the savings association, its affiliates, or its subsidiaries act as investment advisor to 

the fund. 

Prospectus 

A written offer to sell property or a security that provides a detailed description of what is being sold, 

including its characteristics and quality. 

Prospectus Supplement 

A document supplementing the Prospectus, disclosing pertinent information relating to the specific series 

of securities that are being issued. It includes stated maturities, repayment periods under different 

scenarios, specific financial assumptions as to the composition of the underlying collateral, the 

capitalizations of the issuer, and other terms relevant to the series. 

Provision for Loan Losses 

A charge to expense for loan losses. See Valuation Allowance, Allowance for Loan and Lease Losses, 

Specific Valuation Allowances, Charge-off, Write-off. 

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Purchase Method 

A method of accounting for a business combination as the acquisition of one enterprise by another. 

In an acquisition accounted for under the purchase method, the assets and liabilities of the disappearing 

association must be recorded on the books of the surviving entity at fair value. The fair value of an asset 

is generally its market or appraised value. The fair value of liabilities is generally their present value using 

an appropriate discount rate. The carrying values of the capital accounts of the disappearing association 

are not carried forward onto the books of the surviving association. To the extent possible, the cost of the 

acquisition must be allocated to each identifiable asset or liability being acquired. Identifiable assets can 

be tangible (such as securities or mortgage loans) or intangible (such as core deposit base). Any excess 

of the cost of the acquisition over the fair value of the identifiable assets and liabilities is recorded as 

goodwill. 

The adjustments to record purchased assets at fair value due to interest rate fluctuations are reported as 

a direct adjustment to assets. Adjustments to purchased deposits are reported on SC715, Unamortized 

Yield Adjustments on Deposits; adjustments to any other liability are reported as a direct adjustment to 

the liability. 

Purchase-Money Mortgage 

A mortgage where the purpose of the loan is to purchase the property securing the loan. 

Purchased Credit Card Relationships 

The premium paid to acquire established credit card accounts from a financial institution. Buyers pay a 

premium over the dollar value of the credit card accounts themselves in order to acquire the customer 

loyalty in an established line of business. 

Push-Down Accounting 

A method of accounting used when an entity changes ownership. The purchase cost to the new owner is 

pushed down to the entity, thereby marking all assets and liabilities to market. This is also known as 

new-basis accounting. At the date of acquisition, the purchased entity is given a new basis, which is 

valued at market. 

Put Option 

A buyer acquires the right to sell a specific security, at a specified strike price, at any time before the 

expiration of the option. 

Q 

QTL 

Qualified Thrift Lender. 

Qualified Thrift Lender (QTL) 

A savings institution that qualifies for low cost advances from its Federal Home Loan Bank by virtue of 

having at least a certain percentage of its assets in housing-related investments. Institutions may use the 

HOLA QTL test or the Internal Revenue Service tax code Domestic Building and Loan Association 

(DBLA) test. 

r 

Rate of Return 

The measure of income from or profitability of an investment. See Return on Investment and Yield. 

Rate-Sensitive Asset 

An asset that will experience a change in its market value over some specific time period due to changing 

interest rates in the market. 

Rate-Sensitive Liability 

A liability that will experience a change in its market value over some specific time period due to changing 

interest rates in the market. 

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THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

Real Estate 

Land and all physical property attached to the land. Includes all physical substances below, upon, or 

attached to land; thus houses, trees, and fences are classified as real estate. All else is personal 

property. 

Real Estate Investment Trust (REIT) 

An organization, usually corporate, established for the accumulation of funds for investing in real estate 

holdings, or the extension of credit to others engaged in real estate construction. These funds are usually 

accumulated by the sale of shares of ownership in the trust. 

Real Estate Loan 

A loan fully secured by real estate, regardless of how the proceeds will be used. 

Real Estate Mortgage Investment Conduit (REMIC) 

A mortgage securities vehicle authorized by The Tax Reform Act of 1986. The REMIC rules authorize a 

new entity (a REMIC) to hold commercial or residential mortgages and issue securities representing 

interests in those mortgages. The REMIC itself generally is exempt from Federal income tax, and the 

income from the mortgages held by the REMIC is taxed to the holders of the REMIC regular and residual 

interests. 

Real Estate Owned (REO) 

A term frequently used by lending institutions to describe ownership of real property, generally acquired 

as a result of foreclosure. 

Receivables 

Accounts receivable owned by a business. These may be pledged as collateral for a loan secured from a 

bank or other financial institution, known as factored receivables, and classified as a secured commercial 

loan. 

Receiver/Receivership 

A party appointed by a court or the FDIC to manage property subject to litigation, or the property and 

affairs of a bankrupt financial institution. The receiver maintains and manages the property in the interest 

of lenders or creditors until a final disposition of the property is made. A receivership ends the corporate 

existence of an institution; it removes the institution from its owners, who lose their equity interest. See

Conservator. 

Recorded Investment in a Loan 

The principal balance of the loan less direct write-downs, adjusted for related discounts or premiums and 

other yield adjustments. Carrying value before deducting valuation allowances. See Schedule SC, 

Mortgage Loans. 

Recourse 

The rights of a holder in due course of a negotiable instrument to force prior endorsers to meet their legal 

obligations by making good the payment of the instrument if dishonored by the maker or acceptor. The 

holder in due course must meet the legal requirements of presenting and delivering the instrument to the 

maker of a note or acceptor of a draft, and must find that this legal entity is in default. See Residual. 

Recovery 

The collection of money on a loan that you previously charged-off. 

Refinancing 

The repayment of a loan with funds from a new loan secured by the same property as the first loan. The 

new loan may be secured from the same lending institution or a different one, and typically has a modified 

interest rate or maturity date. See Restructured Debt. 

Registration Statement 

A document containing a prospectus and other information required by the SEC in transactions involving 

public offerings, such as the issuance of CMOs. The registration statement enables a series or, in the 

case of a shelf registration, several series of securities to be offered. 

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REIT 

Real Estate Investment Trust. 

Release 

(1) The discharge of property from a mortgage lien. (2) A written statement that an obligation has been 

satisfied. 

REMIC 

Real Estate Mortgage Investment Conduit. 

Rent 

Income received from leasing property. 

REO 

Real estate owned. 

REPO 

Repurchase Agreement. 

Reporting Period 

The period for reporting the statement of operations and activity of an entity. This may be any number of 

days or months, normally one, three, six, or twelve months. The reporting period for the TFR is three 

months. The reporting period for Cost of Funds is one month. 

Repossession 

The reclaiming or taking back of items purchased on an installment sales contract on which the buyer has 

fallen behind in payments and consequently defaulted. 

Repriced at Maturity 

An asset or liability that carries a fixed interest rate during its term and, therefore, cannot reprice until 

maturity. 

Repricing 

A feature of some specific assets and liabilities, where the interest rates (and possibly other associated 

features) change, based on predetermined terms and schedules. This feature may occur periodically or 

only once. 

Repurchase Agreement (REPO) 

A financial transaction in which an organization borrows money by selling securities and simultaneously 

agreeing to buy them back later at a higher price, generally less than 30 days. Repurchase agreements 

are commonly called “repos”, and they function similarly to a secured loan with the securities serving as 

collateral. In a resale agreement, the organization, in effect, loans money by buying securities and 

agreeing to sell them back to the borrower later at a higher price. In either case, the difference between 

the bought and sold price of the securities constitutes the yield on the transaction. See Resale 

Agreement. 

Resale Agreement 

A financial transaction in which an organization lends short-term money by buying securities and 

simultaneously agreeing to sell them back later at a higher price. See Repurchase Agreement. 

Reserve 

(1) A valuation allowance. (2) A portion of retained earnings that has been set aside for the purpose of 

assuming liabilities. (3) Cash set aside to absorb losses or contingencies that have not yet occurred but 

are foreseen. See Valuation Allowances. 

Reserve For Bad Debts 

See Bad Debt Reserve. 

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Reserve Requirements 

The portion of deposits in transaction accounts that member banks are required to maintain with a 

Federal Reserve Bank. 

Residential Mortgage 

A loan extended with residential real estate as collateral. 

Residual 

(1) Defined in 12 CFR Part 567.1 as any balance sheet asset that represents an interest, including a 

beneficial interest, created by a transfer of financial assets that qualifies as a sale under GAAP and that 

exposes the institution to a credit risk that exceeds a pro rata share of the institution’s claim on the 

transferred assets. The transfer of assets may be through securitization or otherwise; the credit risk may 

be directly or indirectly associated with the transferred assets; and the exposure to credit risk may be 

through either subordination provisions or other credit enhancement techniques. 

(2) Purchased or retained beneficial interests in securitized financial assets. 

(3) The tranche of a CMO that represents the difference between the cash flows received on the 

mortgages collateralizing the CMO and the required interest payments to holders of all other tranches. 

The residual tranche represents an equity interest in the CMO. 

Restructured Debt 

Debt that has been restructured by adding to the outstanding principal balance or by modifying the terms 

of the debt. Restructured debt involves debt of borrowers who may or may not be experiencing financial 

difficulty. See Troubled Debt Restructuring. 

Retained Earnings 

An equity capital account comprised of accumulated unallocated profits from the current and all prior 

reporting periods. Retained earnings are the profits that are neither paid out in cash dividends to 

stockholders nor used to increase other equity accounts. 

Return on Assets 

A financial measurement of how efficient a business is in using its assets. Return on assets is the ratio of 

net income divided by average total assets. 

Return on Equity 

A measure of how effective a business has been in investing its net worth. Return on equity is expressed 

as a ratio, calculated by dividing net income by average equity. 

Return On Investment 

The rate, usually expressed on a bond equivalent basis, needed to equate the present value of future 

cash flows with a given purchase price for that issue. It assumes that periodic cash distributions can be 

reinvested at the same rate. 

Revenue 

All earnings received from selling a firm’s product or service during a given period. 

Revenue Bonds 

Issued by state and local governments whereby the revenues from a project, such as a toll bridge, repay 

the borrowing. In contrast to a general obligation bond backed by the taxing power of an issuer. 

Reverse Repurchase Agreement 

See Repurchase Agreement. 

Revolving Credit 

A line of credit extended to customers to use as often as desired up to a certain dollar limit. The line of 

credit may be paid in full upon receipt of a monthly statement or paid off in several installments, in which 

case an interest charge is added. 

 GLOSSARY 2047 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

Risk 

The possibility that a loss will occur if a debt is not paid. 

Risk-Controlled Arbitrage 

A method used to fund long-term assets with short-term liabilities, using a hedge to reduce interest-rate 

risk. For example, using repurchase agreements (short-term) to purchase mortgage-backed securities 

(long-term) and using a futures contract to hedge against rising interest rates. 

Rollover 

The practice of reinvesting capital and interest of one investment into a substantially identical new 

investment. 

s 

Safety Factor 

The difference between net income from collateral and the payment of interest on a funded debt. See

Spread. 

SAIF 

Savings Association Insurance Fund. 

Sale and Servicing Agreement 

In secondary market transactions, a contract under which the seller/servicer agrees to supply, and the 

buyer to purchase, loans from time to time. The contract sets forth the conditions for the transactions and 

the rights and responsibilities of both parties. 

Sale-Leaseback 

The sale of property that is then leased back to the seller. 

Sales Draft 

An instrument that arises from using a bankcard that obligates the cardholder to pay money to the card 

issuer. 

Sallie Mae (SLMA) 

Student Loan Marketing Association. 

Salvage 

An attempt to recover some portion of a loan that has been written off the bank’s books. 

SAM 

Shared-Appreciation Mortgage. 

Sasser 

A SAIF-insured institution that has a bank charter and, therefore, that OTS does not regulate. 

Satisfaction of Judgment 

The legal procedure followed when a debtor pays the amount due as determined by the court in a 

judgment. 

Savings 

The amount of income that is not consumed. 

Savings Account 

Money that is deposited in a depository institution, normally not subject to withdrawal by check. Savings 

accounts usually bear interest. Also called passbook accounts. 

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Savings Association Insurance Fund (SAIF) 

A fund, administered by the FDIC, insuring deposits of member savings associations up to $100,000 per 

depositor. SAIF was established by FIRREA in 1989 to replace the FSLIC as the insurer of savings 

associations. SAIF was merged into the Deposit Insurance Fund in 2006 pursuant to the Federal Deposit 

Reform Act of 2005. See Deposit Insurance Fund. 

Savings Certificate 

Evidence of the ownership of a savings account typically representing a fixed amount of funds deposited 

for a fixed term at a specified rate of interest. See Certificate of Deposit. 

Savings Liability 

The aggregate amount of an association’s deposits, including earnings credited to such accounts, less 

redemptions or withdrawals. 

SBA 

Small Business Administration. 

Seasoned Loan 

A loan that has been on the association’s books long enough to demonstrate that the borrower’s credit is 

sound. 

SEC 

Securities and Exchange Commission. 

Second Lien 

A lien subordinate to the first. See Junior Lien, Second Mortgage. 

Second Mortgage 

A mortgage that has rights subordinate to the first mortgage (the proceeds from a foreclosure sale must 

pay the first mortgage before any funds can go to repay the second). 

Secondary Market 

The market for reselling outstanding securities, opposite of primary market in which newly created 

securities are sold. See Freddie Mac, Fannie Mae, and Ginnie Mae. 

Secured Creditor 

A creditor whose obligation is backed by collateral. 

Secured Debt 

Any debt for which some form of acceptable collateral has been pledged. 

Securities 

Any documents that identify legal ownership of a physical commodity or legal claims to another’s wealth. 

Securitize 

To put in the form of a security. For example, Freddie Mac securitizes a savings association’s loans 

when they pool the loans into a participation certificate. 

Security 

(1) The collateral given, deposited, or pledged to secure the fulfillment obligation or payment of a debt. 

(2) An instrument that provides evidence of debt or of rights to share in earnings or distribution of 

property. 

Security Ratings 

Ratings placed on securities according to the degree of investment risk incurred by the purchaser. 

Segregated Account 

Funds set aside to meet specific obligations. Usually applies to cash set aside to meet drafts drawn 

under a letter of credit issued by the savings association; may also apply to funds set aside to honor 

checks certified by the savings association. 

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Self-Liquidating 

Describes an asset that can be converted into cash or subject to the total recovery of invested money 

over a period of time. 

Selling Hedges 

See Short Hedge. 

Senior Lien 

Opposite of Junior Lien. See First Mortgage. 

Sensitivity Analysis 

Another term for gap analysis, an evaluation of an association’s make-up, revealing the areas in which it 

is exposed to the risk of changing interest rates. See Gap. 

Serial Bond Issue 

Bonds of a single issue that mature on staggered dates rather than all at once. The purpose of a serial 

bond issue is to help the issuer retire the bonds in small quantities over a long period. 

Service Charge 

A fee for services rendered or to be rendered. 

Service Corporation 

A corporation previously defined in OTS regulations as being owned by one or more savings associations 

and performing services and engaging in certain activities for its owners, such as originating, holding, 

selling, and servicing mortgages; performing appraisal, brokerage, clerical, escrow, research, and other 

services; and acquiring, developing, or renovating and holding real estate for investment purposes. This 

term became obsolete with the issuance of the Subsidiary and Equity Investment Rule, effective January 

1, 1997. 

Servicing Assets 

Benefits recognized by an entity undertaking a contract to service loans and other financial assets. 

Servicing includes collecting principal, interest, and escrow payments from the borrowers; paying taxes 

and insurance from escrowed funds; monitoring delinquencies; executing foreclosure, if necessary; 

temporarily investing funds pending distribution; remitting fees to guarantors, trustees, and others 

providing services; and accounting for and remitting principal and interest payments to the holders of 

beneficial interests in the financial assets. 

SFAC 

Statement of Financial Accounting Concepts issued by the Financial Accounting Standards Board. 

Share Loan 

A loan secured by funds on deposit at a financial institution. One purpose of a share loan is to preserve 

interest due on deposits by not withdrawing the funds until the date on which the interest payment is due 

or the account matures. See Passbook Loan 

Shared-Appreciation Mortgage (SAM) 

A home-financing technique where the borrower receives a mortgage rate that is lower than the prevailing 

rates. The borrower must agree to give the lender a share of the profits from the eventual sale of the 

property. A SAM has payments that are based on a normal (typically 30- year) amortization schedule, but 

the loan becomes due and payable at an earlier date (typically not later than at the end of 10 years). A 

SAM has an interest rate below that on a conventional mortgage and a contingent interest feature, where 

at either the sale or transfer of the property or the refinancing or maturity of the loan, the borrower must 

pay the lender a share of the appreciation of the property securing the loan. 

Shareholder 

The owner of shares of equity in an organization. The owners of a corporation. 

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Shelf Registration 

A type of Registration Statement, pursuant to Rule 415 of the SEC, that authorizes a certain principal 

amount of securities to be issued, in whole or in parts, in the future, thereby spreading the issuance dates 

over a period of time. 

Short 

(1) The sale of a futures contract. (2) A trader who has a short position in a commodity. 

Short Hedge 

A hedge transaction in which futures contracts are sold and then purchased; a short hedge protects the 

hedger against interest rate increases, the major risk faced by financial institutions. 

Short-Term Debt 

An obligation that is usually due within one year. 

Short-Term Fixed-Rate Tranches 

CMO tranches that have fixed rates and expected maturity of five years or less. 

Short-Term Planned Amortization Classes (PACs) 

CMO tranches that have fixed rates, a prioritized repayment schedule within certain prepayment speeds, 

and expected maturity of five years or less. Targeted Amortization Classes (TACs) are considered to be 

substantially similar to PACs for reporting purposes. 

Short-Term PAC Support Tranches 

CMO tranches that have fixed rates, expected maturity of five years or less, and are part of a CMO 

structure that contains a PAC or TAC tranche(s). 

Single-Family Dwelling 

A housing unit designed for occupancy by one individual or family. See Dwelling Units, 1-4. 

Sinking Fund 

The obligation to retire debt instruments according to a predetermined schedule. 

Special Redemption 

Special redemptions are designed to allow the issuer to retire a security earlier than scheduled, 

precluding interest from accruing during the remaining period. The amount of principal redeemed is 

limited to the amount that would have been retired at the next scheduled payment date. 

Specific Valuation Allowance 

A valuation allowance representing an amount classified as a loss on specific assets. In the TFR, assets 

are reported net of specific valuation allowances. See Valuation Allowance. 

Spread 

(1) The difference between interest income and interest expense. (2) The simultaneous purchase of one 

futures contract and sale of another, either different contract months or underlying instruments. One does 

this to try to profit from differing rates of change in different contract months or contracts, often due to 

changing market factors, such as, rising or falling rates, shifts in yield curve. 

Standard Prepayment Assumption 

A commonly used prepayment model based on an assumed monthly rate of prepayment of the then 

current principal balance of a pool of new mortgage loans. 

Standby Letter of Credit 

A letter of credit that can only be drawn against if a specified business transaction is not performed. 

Standbys 

Non-binding commitments to make or take delivery of securities, commonly used in the mortgage market 

when dealing with Fannie Mae. 

 GLOSSARY 2051 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

Stock Dividend 

See Dividend, Stock. 

Strike Price 

The price at which the holder of the call or put may exercise his right to purchase or sell the underlying 

futures contract. Synonymous with exercise price. 

Strip 

A hedge transaction which involves selling or buying the same futures contract across several delivery 

months, such as, selling T-Bills for June, September, and December at the same time. The objective is to 

lengthen the effective hedging period. 

Strip Certificate 

A certificate showing ownership of a fractional share of stock that can be converted into a full share when 

presented in amounts equal to a full share. 

Strip Hedge 

The selling of a series of futures contracts with different maturities. The purpose is to lock in interest 

costs that vary based on the contract settlement date. 

Structured Securities 

Debt securities with derivative-like characteristics that are issued by corporations and governmentsponsored enterprises (GSEs), including Freddie Mac, Fannie Mae, and the Federal Home Loan Banks. 

Structured notes take various forms and often contain complex rate-adjustment formulas and embedded 

options, such as, calls, caps, and collars. 

Student Loan Marketing Association (Sallie Mae) 

A government-sponsored private corporation created to increase the flow of funds into loans by facilitating 

the purchase of student loans in the secondary market. 

Subordinate Organization 

Any corporation, partnership, business trust, association, joint venture, pool, syndicate, or other similar 

business organization in which a savings association has a direct or indirect ownership interest. There is 

an exception when that ownership interest qualifies as a pass-through investment pursuant to 12 C.F.R. § 

560.32 and the savings association designates it as such. 

Subordinated Debt 

Obligations whose liquidation preference is inferior to that of other debt. 

Subprime Lending 

Credit extended to borrowers exhibiting higher (frequently much higher) risk of default characteristics than 

traditional bank lending customers. Risk of default may be measured by traditional credit risk measures 

(credit/repayment history, debt-to-income levels, etc.) or by alternative measures such as credit scores. 

Subprime borrowers represent a broad spectrum of debtors ranging from those who have exhibited 

repayment problems due to an adverse event, such as job loss or medical emergency, to those who 

persistently mismanage their finances and debt obligations. Subprime lending does not include loans to 

borrowers who have had minor, temporary credit difficulties but are now current. 

Subsidiary 

Any organization controlled by another organization. The OTS Subsidiary and Equity Investment Rule 

defines subsidiary as a consolidated subsidiary and refers generically to organizations under the control 

of a parent organization as subordinate organizations. See Consolidation. 

Substandard 

Describing conditions making a risk less desirable than normal for its class. A classification of assets 

under OTS Regulations. See Classified Assets. 

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Super-Floater 

An asset that has a variable rate that adjusts by a multiple of a change in an interest-rate index. Thus if 

the super-floater adjusts at 1.25 times the change in LIBOR, a decrease of two basis points in LIBOR 

would cause a decrease of 2.5 (2 x 1.25) basis points in the super-floater. Super-floater is most 

commonly used to describe CMO tranches that reprice based on a formula containing a multiple of the 

three-month LIBOR rate. 

Super Floating Rate Tranches 

CMO tranches that have rates adjusting at some multiple of, and in the same direction as, an index such 

as LIBOR. 

Super Principal Only (P/O) Tranche 

A long-term zero coupon, deep discount PAC that is the only support tranche of a PAC or TAC CMO. 

Supervisory Authority 

The official or officials authorized by law to ensure that associations comply with the governing charter, 

statutes, and by-laws. 

Supervisory Merger 

The takeover of one savings association – typically an insolvent association – by another with our 

oversight. 

Suspense Account 

A general ledger account used to hold over unposted items so the business day can balance at closing. 

Swap 

An agreement between two parties to exchange a series of cash flows, one representing a fixed rate and 

the other a floating rate. In a currency swap, two parties contract to exchange the cash flows - of equal 

net present value of specific assets or liabilities that are expressed in different currencies. 

In the classic – widely known as plain vanilla – interest-rate swap, two parties contract to exchange 

interest service payments, and sometimes principal service payments, on the same amount of 

indebtedness of the same maturity with the same payment dates - one providing fixed interest-rate 

payments in return for variable-rate payments from the other and vice versa. Basis swaps – floating rate 

swaps based on different indices, such as prime against LIBOR – and combined interest rate and 

currency swaps, circus swaps, are also common. There are numerous variations involving many 

counterparts that result in highly complex swap transactions. 

t 

T-Bill 

Treasury Bill. 

TAC 

Targeted Amortization Class. 

Tangible Capital 

Our capital regulations define tangible capital as equity in accordance with GAAP, adjusted for unrealized 

gains and losses on certain available-for-sale securities, less investments in nonincludable subsidiaries, 

less goodwill and other intangible assets, less certain nonqualifying equity instruments, plus 

noncontrolling interest in includable consolidated subsidiaries, plus nonwithdrawable deposits of mutual 

associations. Our capital rule requires savings associations to hold a ratio of 1.5% tangible capital to 

tangible assets. 

Tangible Net Worth 

GAAP net worth less goodwill and other intangible assets. 

 GLOSSARY 2053 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

TBA 

Abbreviation for future pools to be announced which are bought and sold for future settlement. To be 

announced refers to interest rates and due dates which are determined at a later date. Trading in these 

securities is done on a yield basis. 

TDR 

Troubled Debt Restructuring. 

Teaser Rate 

The initial below-market interest rate offered on an adjustable-rate mortgage in return for the borrower 

sharing the risk of rising rates during the course of the loan. 

Term Federal Funds 

Federal funds with a term of more than one business day. 

TFR 

Thrift Financial Report. 

Threshold Rate 

Represents the rate established by management policy for a fixed-rate asset category above which new 

assets may be added and below which lower yielding assets will be sold. Should be tied to policies 

related to dollar volume and maturity limits. 

Thrift Financial Report 

The financial report that we require of all savings associations under our jurisdiction; OTS Form 1313. 

Thrift Holding Company 

See Holding Company. 

Tick 

Refers to a change in price, either up or down. Synonymous with minimum fluctuation. 

Time Deposit 

An interest-bearing deposit that will mature on a specific date. 

Time-Share Loan 

A loan that enables a buyer to take part in a form of real property ownership that grants each of several 

owners the exclusive right to occupy a housing unit during a specified time period each year. These 

loans are reported as nonmortgage loans on the TFR. 

Time Value 

A portion of an option premium unrelated to buying and selling at a more favorable price. 

Trade 

A term that indicates the consummation of a security transaction, either a purchase or a sale. 

Trade Date 

The date a security transaction is actually executed. 

Trading Account 

Securities that you intend to hold principally for the purpose of selling them in the near term. Trading 

activity includes frequent buying and selling of securities for the purpose of generating profits from price 

fluctuations. Securities in a trading account must be listed on financial reports at market value. 

Tranche 

Also called a class. CMOs generally have several bond classes; each bond is considered a separate 

tranche or class, each with different maturities and/or interest rates and accrual structures. 

2054 GLOSSARY 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

Troubled Debt Restructuring 

A troubled debt restructuring occurs when the financial institution provides the borrower certain 

concessions that it would not normally consider. The concessions must be in light of the borrower’s 

financial difficulty, and the objective must be to maximize recovery of the institution’s investment. 

Troubled debt restructures are often, but not always, the result of legal proceedings or negotiations 

between the parties. 

Troubled debt restructures include situations in which the reporting association accepts any one of the 

following: 

 A note, secured or unsecured, from a third party in payment of its receivable from the borrower. 

 The underlying collateral in payment of the loan, either through foreclosure, other transfer of title, or 

in-substance foreclosure. 

 Other assets in payment of the loan. 

 An equity interest in the borrower or its assets in lieu of its receivable. 

 A modification of the terms of the debt including, but not limited to any of the following: 

o Reduction in stated interest rate. 

o Extension of maturity at an interest rate below market. 

o Reduction in the face amount of the debt. 

o Reduction in the accrued interest. 

A foreclosure or other asset received in payment of a loan is TDR only if a loss is incurred. In calculating 

whether or not a loss occurred, the fair value of the foreclosed property is compared to the recorded 

investment in the receivable without deducting valuation allowances or charge-offs. 

Treasury Bill 

A U.S. government short-term security sold to the public each week at a discount, maturing in 91 to 182 

days. 

Treasury Bond 

See Bond, Treasury. 

Treasury Note 

A U.S. government long-term security, sold to the public, maturing in one to five years. 

Treasury Stock 

Stock reacquired by the same company that issued it with the intention of subsequent resale or transfer, 

such as an Employee Stock Option Plan. 

u v 

Unlimited Mortgage 

An open-end mortgage; a mortgage not limited to a fixed amount. 

Unrealized Gain or Loss 

A loss that you have not yet realized because the related asset has not yet been sold or disposed of. 

VA 

(1) Valuation Allowance. (2) Veterans’ Administration. 

Valuation Allowance 

A contra-asset established against receivables and investments based on the amount expected to be 

collected. Valuation allowances are established for covering probable and estimably credit losses. See

Allowance for Loan and Lease Losses, Allowance, Specific Valuation Allowance, and General Valuation 

Allowance. 

 GLOSSARY 2055 
JUNE 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

Variable Rate 

An interest rate on an asset or liability that can be repriced periodically when market interest rates 

change, without regard to maturity. Also called “floating rate”. See Adjustable Rate Mortgage. 

Variation Margin 

See Maintenance Margin. 

Voting Stock 

Stock for which the holder has the right to vote in the election of directors, the appointment of auditors, 

and other matters brought up at the annual stockholders’ meeting. Most common stock is voting stock; 

most preferred stock is nonvoting stock. 

wxyz 

Warehouse Loan 

A short-term line of credit used by mortgage bankers to fund loans prior to sale. Financial institutions that 

hold loans as collateral until collateral is delivered to the investor usually provide this type of credit. 

Warehousing 

Inventory financing. See Warehouse Loan. 

Weighted Average Coupon (WAC) 

The WAC is calculated as a weighted-average of the underlying mortgage interest rates as of the issue 

date, using the balance of each mortgage as the weighting factor. A WAC is needed only when the 

underlying mortgages have varying interest rates. 

Weighted Average Maturity (WAM) 

The weighted average is the remaining term to maturity of the underlying mortgages at the issue date, 

using the balance of each mortgage as the weighting factor. 

Weighted Average Remaining Term 

The remaining term to maturity over time as the security ages. This number can be calculated at any 

point in time. Sometimes weighted average remaining term is mistaken for the weighted average 

maturity, which is the remaining term at the issue date. The weighted average remaining term must be 

recalculated each month and is impacted by prepayments. 

Whole Loans 

Mortgages that are not divided into participation units or pooled to back securities or participation 

certificates. 

Whole Pools 

A mortgage certificate where ownership is represented by an entire pool of mortgage loans, as opposed 

to a fractional interest in a pool. 

With Recourse 

An agreement where the seller assumes a stated level of risk for the performance of the asset sold; the 

purchaser has the right to endorse a claim against the seller for sustained damages in the case of 

nonperformance. See Recourse. 

Without Recourse 

An agreement where the purchaser accepts all risks in the transaction, and gives up rights to any 

recourse. See Recourse. 

2056 GLOSSARY 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL JUNE 2010 

 GLOSSARY 2057 

Wraparound Mortgages 

A second mortgage that wraps around, or exists in addition to, a first or other mortgage(s). The lender 

assumes the existing mortgage(s) thus continues to pay the monthly installments at the original lower 

interest rate(s), and also loans the purchaser additional money to meet the higher purchase price 

specified in the contract. The rate charged to the purchaser on the total mortgage amounts is higher than 

the original rate. This type of mortgage allows the terms of the original mortgage to be satisfied, 

compensates the seller for the sale of his or her investment, and allows the buyer to purchase a home. 

The wraparound lender benefits from the below-market rates of the existing mortgage that the lender has 

assumed while charging the purchaser a higher rate on the full loan. 

Wraparound mortgages are also used as a method of obtaining refinancing when an owner wants to 

increase the amount of mortgage outstanding. In this case the lender assumes the existing mortgage 

and the borrower enters into a loan in an amount covering both the old mortgage and the additional funds 

disbursed. 

Write-Off 

An asset or portion of an asset charged off as a loss because it is determined to be uncollectable. See

Charge-off. 

Write-Up 

Increasing an asset’s book value by adjusting the value of an asset to correspond to an appraisal or 

market value. Unrealized gains. 

Year-End Adjustment 

A ledger account modification entered at the close of a fiscal period. The modification might be the result 

of an accrual, prepayment, physical inventory, reclassification, policy change, audit adjustment, or other 

entry. 

Yield 

The effective annual rate of income being accrued on an investment, expressed as a percentage of the 

original price. 

Yield Adjustment 

A portion of the purchase price of an asset that is an adjustment to interest over a specified period, 

typically over the life of the asset. A yield adjustment is set up in a separate account from the asset and 

is accreted to income at a rate similar to interest. Examples: Discounts and premiums, loan fees, prepaid 

interest, etc. 

Yield to Maturity 

The rate of return earned by a debt instrument held to maturity. The rate of return calculates interest 

payments reinvested at the coupon rate, and factors in capital gains or losses. 

YTD 

Year-to-date. Generally designates that income figures are for the year up to a given date, rather than for 

a shorter period such as a month or a quarter. 

Zero Rate 

A type of asset or liability that bears no interest. Examples: Commercial checking accounts and vault 

cash. 

Zero-Coupon Bond 

See Bond, Zero Coupon. 
THIS PAGE INTENTIONALLY LEFT BLANK 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

INDEX 

A

Accountants 

Change of.........................................................1102 

Codes for type of work performed...................1101 

Accounting fees .....................................................312 

Accounting principles 

Retroactive changes to.....................................1008 

Accounts Payable ..................................................229 

Accounts receivable...............................................222 

Accrual basis of accounting...................................301 

Accrued interest receivable 

Nonmortgage loans............................................216 

Accrued interest receivable 

Mortgage loans ..................................................211 

Mortgage-backed securities...............................206 

Securities ...........................................................204 

Advertising expenses.............................................312 

Affiliates 

Transactions with...................................1009, 1010 

Allowances for loan and lease losses 

Mortgage loans ..................................................212 

nonmortgage......................................................216 

Tier 2 Capital...................................................1611 

Amended reports ...................................103, 301, 316 

Asset codes 

Schedule CMR.................................................1911 

Asset-backed securities..........................................204 

Assets 

Average............................................................1013 

Contingent .........................................................706 

Audit codes..........................................................1101 

Available-for-sale securities ..................................202 

Gain or loss in regulatory capital.....................1606 

B

Balance sheet 

Classified, defined ...........................................1407 

Bank accounts 

Zero balance ......................................................224 

Bank-owned life insurance 

Income ...............................................................310 

Schedule SC.......................................................220 

Bilateral netting agreement 

Risk weighting.................................................1629 

Borrowed money 

Interest expense .................................................304 

Schedule SC.......................................................227 

Borrowings 

Average............................................................1015 

Discounts and premiums ...................................227 

Interest Payable..................................................229 

Branch office 

Sale of................................................................309 

Broker 

Fee income.........................................................307 

Receivables........................................................222 

Broker payables .....................................................230 

Brokered deposits ..................................................901 

Building lots ..........................................................211 

C

Capital 

In excess of par value ....................232, 1403, 1410 

Reconciliation of..............................................1006 

Regulatory ...........................See Regulatory capital 

Capitalized interest ................................................305 

Cash 

Risk weighting.................................................1615 

Schedule SC.......................................................202 

Cash flow...............................................................801 

Cash Flow Hedges 

Gains(Losses) in Schedule SC...............1404, 1411 

Cash items 

Risk weighting.................................................1618 

Schedule SC.......................................................202 

Charge-offs............................................................401 

Charitable contributions ........................................314 

Charter Conversion................................................103 

Checks 

In process of collection......................................202 

Classified assets.....................................................416 

CMOs 

Interest expense .................................................304 

CNFIs ....................................................................221 

Available-for-Sale ...........................................1002 

Income from ......................................................310 

Collective investment fund..................................1303 

Commercial loans 

Nonmortgage in Schedule SC............................213 

Sales/Purchases..................................................806 

Commercial paper 

Liability .............................................................228 

Commercial Paper .................................................204 

Commitment fees 

Amortization......................................................307 

nonrefundable ....................................................230 

Refundable.........................................................226 

Commitments 

Risk weighting.................................................1626 

Schedule CC ......................................................701 

Common stock...................................232, 1403, 1410 

 INDEX 2101 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

Issuance costs adjusting retained earnings.......1009 

Common trust fund..............................................1303 

Computer software 

Amortization......................................................313 

Schedule SC.......................................................221 

Consolidation.................................................201, 301 

Regulatory capital..................................1602, 1614 

Schedule SO ......................................................301 

Construction loans 

Balances in Schedule SC ...................................208 

Churches............................................................209 

Combination land/construction loan..................208 

Combined with permanent loan.........................208 

Condominiums ..................................................209 

Conversion to permanent loans .........................802 

Dormitories........................................................209 

LIP.....................................................................701 

Mobile home parks ............................................209 

Multifamily, Schedule SC .................................209 

Nonresidential, Schedule SC .............................209 

Retirement homes..............................................209 

Risk weighting, qualifying...............................1622 

Single-family developments ..............................208 

Undisbursed commitment..................................701 

Unsecured..........................................................213 

Consumer loans 

Sales/Purchases..................................................806 

Schedule SC.......................................................214 

Unused line of credit..........................................704 

Contributed capital ............................232, 1403, 1410 

Convertible securities 

Issuance costs ....................................................222 

Cooperative buildings 

Loans on units in................................................208 

Core capital................................................1602, 1603 

Core deposit intangibles 

Amortization..............................................221, 313 

Corporate Debt Securities......................................204 

Credit card lines 

Risk weighting.................................................1626 

Credit cards 

Overpayments....................................................225 

Schedule SC.......................................................215 

Servicing income ...............................................307 

Unused line of credit..........................................704 

Credit-enhancing interest-only strips 

Defined ............................................................1004 

Custodial services................................................1302 

D

Data Processing Services 

Income from ......................................................310 

Deferred income ....................................................229 

Deferred loan fees..................................................207 

Deferred Policy Acquisition Costs ......................1406 

Deferred tax assets 

Regulatory capital............................................1605 

Cash items .............................................................223 

Delinquent loans....................................................501 

Deposit Insurance Fund.......................................2017 

Deposit insurance premiums 

Expensed............................................................314 

Prepaid...............................................................222 

Deposits 

Average............................................................1013 

Broker-originated...............................................901 

Definition of ......................................................223 

Demand, defined................................................907 

Discounts and Premiums ...................................226 

Escrows..............................................................225 

Interest expense .................................................304 

Interest payable..................................................229 

Jumbo ........................................................902, 903 

MMDA ..............................................................905 

Passbook............................................................906 

Penalties for early withdrawals..........................304 

Preferred ............................................................904 

public funds – Schedule SC...............................223 

Reciprocal balances ...........................................224 

Risk weighting.................................................1618 

Schedule DI .......................................................901 

Time...................................................................906 

Transaction ........................................................905 

Transaction account fees....................................307 

Types of accounts ..............................................905 

Unamortized brokers fees..................................226 

Uninsured ..........................................................904 

Zero coupon.......................................................223 

Derivatives 

Fair value in assets.............................................222 

DIF...............................................................223, 2017 

Direct credit substitutes .........................................704 

Directors' fees and expenses. .................................311 

Dividend income ...................................................302 

Dividends 

Capital reconciliation.......................................1007 

Other than cash ................................................1008 

Payable ..............................................................230 

Dwelling unit 

Defined ............................................................1806 

E

Electronic Filing ....................................................103 

Electronic Filing System (EFS).............................101 

Employee benefits .................................................311 

Employees 

Number of........................................................1001 

Equity capital 

Reconciliation of..............................................1006 

Equity instruments 

2102 INDEX 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

Inc. in Tier 2 Capital........................................1611 

Equity investments 

in regulatory capital.........................................1602 

Regulatory capital, deduction from .................1612 

Equity securities 

Defined in capital.............................................1612 

Gains incl. in Tier 2 capital..............................1610 

Escrows .................................................................225 

Interest expense .................................................304 

Tax and insurance..............................................225 

ESOPs 

Debt ...................................................................228 

Employer contributions to .................................311 

Unearned shares.................................................233 

Examination fees ...................................................314 

Excess servicing ......................... See Servicing assets 

Extraordinary items 

Gains and losses.................................................316 

F

Fannie Mae 

Stock..................................................................204 

Federal Funds 

Sold....................................................................203 

Term ..................................................................203 

Federal funds purchased 

Interest expense .................................................304 

Federal Funds purchased .......................................227 

Federal funds sold 

Risk weighting.................................................1618 

Federal Home Loan Bank 

Accrued dividends .............................................222 

Advances ...........................................................227 

Commitment fees...............................................227 

Deposits .............................................................202 

Dividends...........................................................303 

Prepayment fees.................................................316 

Prepayment penalties.........................................304 

Reverse repurchase agreements.........................227 

Securities ...........................................................203 

Stock, Risk weighting......................................1618 

Fee Income ............................................................307 

FHA/VA Loans 

Schedule LD ......................................................601 

FHLMC 

Participation certificates ....................................206 

Securities ...........................................................203 

FICO bonds ...........................................................203 

Fiduciary services 

Income .............................................................1307 

Managed accounts ...........................................1303 

Nonmanaged accounts.....................................1304 

Settlements and losses .....................................1315 

Fiduciary Services ...............................................1301 

Filing 

Filing Deadline ..................................................102 

Financing leases 

Commercial .......................................................214 

Fiscal year end.....................................................1101 

Holding company ............................................1402 

FNMA 

Mortgage securities, risk weighting.................1617 

Pools ..................................................................206 

Securities ...........................................................203 

Foreclosed assets ...................................................216 

Deed in lieu of ...................................................415 

During the quarter..............................................415 

Gain or loss from sale........................................308 

Held over 5 years...............................................218 

Income from operations.....................................308 

In-substance.......................................................216 

Junior liens.........................................................216 

Provision for loss...............................................313 

Troubled debt restructured.........................217, 414 

Valuation allowances.........................................403 

Writing down to market.............................216, 305 

Foreign currency translation..............233, 1404, 1411 

Forward agreements 

Risk weighting.................................................1627 

Fraud expense........................................................314 

Freddie Mac 

Stock..................................................................204 

Futures.................................................................1102 

Contract codes, Schedule CMR.......................1908 

G

GAAP 

Use of in the TFR ......................104, 201, 224, 301 

General Instructions...............................................101 

General valuation allowances 

Foreclosed assets ...............................................218 

Other assets........................................................223 

Generally accepted accounting principles .....201, 301 

GNMA securities 

Repurchase option liability................................228 

Risk weighting.................................................1616 

GNMA Securities 

Pools ..................................................................206 

Goodwill................................................................221 

Amortization......................................................313 

Schedule SC.......................................................221 

Write-downs ......................................................313 

H

Held-for-sale assets..............................................1002 

Held-to-maturity securities ....................................202 

High loan-to-value mortgages ...............................601 

Holding company 

 INDEX 2103 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

GAAP ..............................................................1401 

Schedule HC....................................................1401 

Schedule SC.......................................................201 

Home equity loans 

Disbursements ...................................................802 

Nonmortgages....................................................214 

Risk weighting lines-of-credit .........................1626 

Schedule SC.......................................................210 

Unused line of credit..........................................704 

Hypothecated deposits...........................................207 

I

Intangible assets 

Deducted from Tier 1 ......................................1604 

Schedule SC.......................................................221 

Intercompany payables ..........................................230 

Interest Expense.....................................................303 

Interest income ......................................................301 

Yield adjustments ..............................................302 

Interest payable......................................................229 

Interest rate caps 

Contract codes, Schedule CMR.......................1907 

Interest rate floors 

Contract codes, Schedule CMR.......................1908 

Interest rate index codes 

Schedule CMR.................................................1901 

Interest rate swaps 

Contract codes, Schedule CMR.......................1906 

Payables.............................................................230 

Receivables........................................................222 

Risk weighting.............................1618, 1622, 1628 

Internet web address ............................................1102 

HOLDING COMPANY ..................................1402 

Investment securities 

Commitment to purchase...................................703 

Commitment to sell ...........................................703 

Investments 

Income ...............................................................302 

L

Land 

Office buildings .................................................219 

Land loans .............................................................211 

Leases 

Deferred gains on sale and leaseback ................230 

Net income from................................................310 

Office buildings and equipment.........................219 

Property leased to others....................................222 

Legal expenses.......................................................311 

Letters of credit 

Commercial - defined ........................................704 

Prepaid, in Schedule SC ....................................224 

Risk weighting.................................................1626 

Standby - defined...............................................704 

Undrawn amount ...............................................704 

Leverage capital...................................................1602 

Liabilities 

Contingent .........................................................706 

Off-balance-sheet credit losses ..........................230 

Liability for credit loss 

ALLL, included with .......................................1611 

Life insurance 

BOLI..................................................................220 

Key Person.........................................................220 

Lines of credit 

Commercial, unsecured .....................................213 

Risk weighting.................................................1626 

Unused amount..................................................703 

Litigation reserves .................................................230 

Loan fees 

Deferred.............................................................207 

Loan origination expense.......................................314 

Loan payments 

Unapplied ..........................................................230 

Loan servicing 

Credit card fee income.......................................307 

Escrows..............................................................225 

Fee expense .......................................................312 

Liability .............................................................230 

Receivables (taxes, ins., princ. & interest).........222 

Recourse, risk weighting .................................1627 

Loans 

Agricultural......................................................1202 

Airplanes............................................................215 

Auto, consumer..................................................215 

Average............................................................1013 

Boats..................................................................215 

Commercial, Secured.........................................213 

Commitment to sell ...........................................703 

Delinquent .........................................................501 

Deposit...............................................................214 

Education...........................................................214 

Farm.................................................................1202 

Farm, nonmortgage............................................213 

Floor-planning ...................................................213 

Gains and losses on sale ....................................309 

Held for sale ....................................................1002 

Home equity ......................................................214 

Home improvement ...........................................214 

Insured by FmHA, AID, SBA ...........................213 

Mobile home, consumer ....................................215 

Modified ............................................................414 

Motorcycles .......................................................215 

Nonaccrual.........................................................503 

Nonmortgage .....................................................212 

Officers, directors and shareholders ................1005 

Originated for sale ...........................................1002 

Personal .............................................................215 

Purchased...........................................................804 

Serviced for others...........................................1003 

Share, risk weighting .......................................1618 

2104 INDEX 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

Small business .................................................1201 

Sold....................................................................805 

Sold with recourse, financings...........................228 

Time-share.........................................................215 

Loans-in-process 

Commitments in Schedule CC...........................701 

Disbursements ...................................................802 

Mortgage Loans, in Schedule SC ......................207 

Risk weighting.................................................1625 

LOCOM adjustment 

Valuation allowance ..........................................402 

LOCOM adjustments 

Income statement...............................................308 

LTV ratio 

Calculation.........................................................602 

M

Management services ............................................312 

Mandatorily convertible securities ........................228 

Manufactured housing 

Construction loans on ........................................208 

Market research expenses......................................312 

Money orders.........................................................225 

Mortgage 

Office premises..................................................228 

Mortgage loans 

Accrued Interest Receivable..............................211 

Allowance for loan and lease losses ..................212 

Apartment buildings ..........................................210 

Average............................................................1013 

Churches............................................................211 

Commercial .......................................................211 

Commitments ....................................................701 

Co-op units ........................................................208 

Co-op units, risk weighting..............................1620 

Defined ..............................................................207 

Discounts and premiums ...................................207 

Dormitories........................................................210 

Farms .................................................................211 

First Liens on 1-4 Dwelling Units .....................210 

Held for investment ...........................................207 

High loan-to-value.............................................601 

Home equity loans.............................................210 

Junior liens.........................................................207 

Junior Liens on 1-4 Dwelling Units...................210 

Land...................................................................211 

Mixed use property............................................207 

Mobile Home Parks...........................................210 

Multifamily........................................................210 

Multifamily, risk weighting.............................1621 

Negative amortization as disbursements............802 

Nonresidential....................................................211 

Nursing homes...................................................211 

Originated for Sale.............................................207 

Origination commitments ..................................702 

Participating interests ........................................207 

Participating interests, income...........................302 

Participations purchased ....................................804 

Participations sold..............................................805 

Permanent loans on 1-4 dwelling units..............209 

Real estate investments......................................218 

Refinancing activity...........................................701 

Refinancing, in Schedule SC .............................209 

Retirement homes..............................................210 

Second mortgages..............................................207 

Small business ...................................................213 

Sold with recourse, risk weighting ..................1627 

Unearned interest...............................................207 

Wrap-around......................................................228 

Wrap-around, in assets ......................................208 

Wrap-around, income from ...............................302 

Mortgage Loans 

Origination disbursements.................................802 

Mortgage pool securities 

Defined, Schedule SC........................................205 

Private issues .....................................................206 

Mortgage-backed Bonds........................................204 

Mortgage-backed securities 

Commitment to purchase...................................703 

Commitment to sell ...........................................703 

Document custodian services ..........................1302 

Purchase/sale activity ........................................801 

Risk weighting.......................................1617, 1622 

Mortgage-Backed Securities 

Interest Income ..................................................302 

Municipal securities 

Risk weighting.................................................1618 

Mutual funds..........................................................204 

Proprietary .......................................................1303 

Regulatory capital............................................1603 

Risk weighting.................................................1615 

Unremitted funds ...............................................226 

N

Net deferred tax assets 

Schedule SC.......................................................222 

Net Portfolio Value Model ..................................1801 

New basis accounting ..........................................1008 

Nonaccrual loans ...................................................503 

Noncontrolling shareholders 

Net income allocated to .....................................301 

Net loss allocated to...........................................310 

Nonincludable subsidiaries 

Consolidation, exception to GAAP .................1603 

Defined ............................................................1604 

Noninterest expense...............................................311 

Noninterest income................................................306 

Non-interest-earning Deposits 

 INDEX 2105 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

Schedule SC.......................................................202 

Nonmortgage loans 

Interest Income ..................................................302 

Origination commitments ..................................702 

Sales/Purchases..................................................806 

Schedule SC.......................................................212 

Nonperforming assets 

Risk weighting.................................................1615 

Nonsecuritized financial instruments.....................221 

Schedule CC ......................................................705 

O

Off-balance-sheet items 

Contract codes, Schedule CMR.......................1903 

Risk weighting.................................................1625 

Office 

Data center fees .................................................312 

Equipment rental................................................312 

Leasehold improvements...................................219 

Leasehold improvements, amortization.............312 

Office buildings .....................................................219 

Construction of ..................................................219 

Depreciation ......................................................219 

Depreciation expense.........................................312 

Leasing income..................................................310 

Office supplies expense.........................................314 

Options 

Schedule CMR.................................................1853 

Standby fees received ........................................230 

Organization cost 

Expense..............................................................314 

Other assets............................................................221 

Other Comprehensive Income 

Accumulated......................................................232 

Reconciliation..................................................1008 

Other liabilities......................................................230 

OTS assessments 

Complexity component....................................1307 

Expensed............................................................314 

Outstanding checks 

Cashiers checks..................................................224 

Overdrafts..............................................................228 

P

Paid-in Capital...................................232, 1403, 1410 

Pass-through investment 

Income ...............................................................303 

Net income from................................................310 

Past-due assets 

Risk weighting.................................................1615 

Past-due loans 

Defined ..............................................................501 

Troubled debt restructured.................................505 

Pension 

Expense..............................................................311 

Pension Asset intangibles 

Amortization......................................................313 

Schedule SC.......................................................221 

Pension Intangibles................................................221 

Pension liability 

Minimum ...............................................1404, 1411 

Personnel expenses................................................311 

Postretirement benefit 

Liability .............................................................230 

Preferred stock 

Convertible ....................................231, 1403, 1410 

Cumulative ....................................231, 1403, 1410 

Issuance costs ................................231, 1403, 1410 

Issued by Subsidiaries .......................................234 

Issued by subsidiary...........................................228 

Noncumulative...............................231, 1403, 1410 

Perpetual (nonredeemable) ............231, 1403, 1409 

Redeemable, in Tier 2 capital ..........................1611 

Redeemable, Issuance costs...............................222 

REIT ..................................................................228 

Prepaid expenses 

Schedule SC.......................................................222 

Prior period 

Corrections to ....................................................301 

Prior period corrections .........................................310 

Promissory Notes...................................................204 

Provision for loss 

Calculation.........................................................402 

Public relations expense ........................................312 

Purchased credit card relationships 

in regulatory capital.........................................1604 

Purchased servicing .................... See Servicing assets 

Push-down accounting 

Adjustments to retained earnings.....................1008 

Q

Qualified Thrift Lender .......................................1004 

Questions 

Common questions ............................................101 

R

Real estate 

Sale of................................................................309 

Real estate held for investment 

Net income from................................................310 

Real estate investments..........................................218 

Real estate taxes 

Payable ..............................................................229 

Receivables 

Intercompany.....................................................222 

Noninterest bearing............................................222 

Record Retention ...................................................103 

Recorded investment 

Defined ......................................................207, 414 

Recourse 

2106 INDEX 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

Low level risk weighting .......................1613, 1630 

Recourse obligations..............................................704 

Recourse Obligations.............................................230 

Recovery 

Defined ..............................................................402 

Of assets.............................................................408 

Refinancings 

Multifamily........................................................210 

Regulation O 

Definitions .......................................................1005 

Regulatory capital 

Adjustments to GAAP .....................................1603 

ALLL...............................................................1611 

Assets required to be deducted ........................1612 

Deferred tax assets...........................................1605 

Gains on equity securities................................1610 

IMCR...............................................................1609 

Individual minimum capital requirement ........1609 

Mutual funds....................................................1603 

Nonincludable subsidiaries..............................1603 

Purchased credit card relationships..................1604 

Reciprocal holdings .........................................1612 

Risk weighting rules ........................................1614 

Servicing assets................................................1605 

Standards .........................................................1601 

Tier 2 capital....................................................1609 

REIT preferred stock .............................................228 

Dividends...........................................................304 

Replacement cost 

Defined ............................................................1628 

Reporting Basis .....................................................104 

Repossessed assets............ 216, See Foreclosed assets 

Repurchase agreements .........................................227 

Residual interests 

Defined ............................................................1003 

Schedule CC ......................................................705 

Residual interests in financial assets sold ..............222 

Retained earnings ..............................233, 1404, 1411 

Adjustments to.................................................1008 

Retirement accounts 

IRA/Keogh ........................................................903 

Reviewing the TFR................................................105 

Risk weighting 

Depository inst., claims on ..............................1618 

Exchange-rate contracts...................................1628 

Federal Reserve, claims on..............................1617 

FHLB, claims on..............................................1618 

General rules....................................................1614 

Interest-rate contracts ......................................1628 

LIP...................................................................1625 

Low-level recourse ..........................................1629 

Multifamily mortgages ....................................1621 

Off-balance-sheet items...................................1625 

Residual interests.............................................1629 

Revenue bonds.................................................1622 

Single-family mortgages..................................1619 

Super risk weighting........................................1629 

U.S. Government, claims on............................1616 

U.S. Treasury securities...................................1616 

Risk-based capital................................................1602 

Rounding ...............................................................104 

S

SBA pools 

Risk weighting.................................................1616 

SBA Securities 

Nonmortgage .....................................................203 

Schedule CMR 

ARMs, frequent reset.......................................1818 

Balances reported ............................................1802 

Balloon Mortgages, defined.............................1807 

Balloon mortgages, fixed rate..........................1810 

Brokered deposits ............................................1843 

Buydowns........................................................1808 

Call loans, defined ...........................................1807 

Cash, deposits and securities ...........................1833 

CMOs ..............................................................1829 

Issued...........................................................1849 

CMOs, Residuals.............................................1830 

Commercial loans............................................1824 

Commitments, Nonmortg. fin. assets...............1854 

Compared to Schedule SC...............................1805 

Consolidation...................................................1802 

Construction LIP..............................................1861 

Construction loans ...........................................1821 

Construction loans, defined .............................1807 

Consumer loans ...............................................1826 

Credit cards......................................................1841 

Debt securities .................................................1835 

Deposits ...........................................................1842 

Deposits, Nonmaturity.....................................1846 

Escrows............................................................1848 

Exemption from filing .......................................104 

Federal funds sold............................................1835 

Fixed-rate mortgage loans and securities.........1808 

Format..............................................................1802 

Futures .............................................................1859 

Home equity loans...........................................1840 

Interest rate caps ..............................................1857 

Interest rate floors............................................1858 

Interest rate swaps ...........................................1855 

Inverse floaters ................................................1829 

Land loans .......................................................1821 

Land loans. defined..........................................1807 

Liabilities.........................................................1841 

Liabilities,Fixed rate........................................1845 

Loans serviced by others .................................1841 

Market value estimates ......1801, 1802, 1831, 1866 

Mortgage pool securities, multifamily.............1818 

 INDEX 2107 
MARCH 2010 THRIFT FINANCIAL REPORT INSTRUCTION MANUAL 

Mortgage-derivative securities ........................1828 

Multifamily mortgage loans ............................1818 

Multifamily mortgage loans, defined...............1807 

Mutual funds, Mortgage-related ......................1841 

Noncontrolling interest ....................................1849 

Nonmortgage loans,Securitized.......................1824 

Nonperforming assets ......................................1836 

Nonperforming loans.......................................1807 

Nonperforming loans defined ..........................1802 

Nonresidential Mortgage loans, defined..........1807 

Off-balance-sheet items.........................1850, 1870 

Options on futures ...........................................1860 

Other assets......................................................1839 

Pass-through rate .............................................1803 

Pass-through securities, defined ......................1807 

Pay-through securities, defined........................1808 

Preferred stock, Redeemable ...........................1846 

Repurchase agreements ...................................1835 

Second mortgages............................................1822 

Servicing, Mortgage ........................................1831 

Single-family mortgage loans, defined............1806 

Stripped MBS ..................................................1830 

Superfloaters....................................................1829 

Supplemental Reporting ..................................1862 

Teaser ARMs...................................................1814 

Teaser ARMs, defined.....................................1807 

TimeshareTime loans ......................................1840 

Unrealized gains and losses.............................1838 

Use of estimates...............................................1802 

WAC defined...................................................1803 

Warehouse loans....................................1824, 1840 

WARM ............................................................1804 

Weighted average margin................................1804 

Weighted averages...........................................1803 

Zero-coupon securities ....................................1834 

Schedule SC...........................................................201 

SEC file number ..................................................1402 

Securities 

Accrued interest and dividends receivable ........204 

Asset-backed......................................................204 

Auto loans..........................................................204 

Available-for-sale balances .............................1002 

Credit cards........................................................204 

Gains and losses on sale ....................................308 

Income ...............................................................302 

Mortgage Derivatives ........................................206 

Mortgage pass-through ......................................205 

Mortgage-backed...............................................204 

Pledged on margin accounts ..............................203 

U.S. Government and Agency, Schedule SC.....203 

Unrealized gain or loss ..................232, 1404, 1411 

Service corporations ....See Subordinate organizations 

Servicing 

Loans serviced for others.................................1003 

Servicing assets .....................................................220 

Regulatory capital adjustments........................1605 

Sale of................................................................309 

Severance pay........................................................311 

Share loans.............................................................214 

Risk weighting.................................................1618 

Sinking fund mortgages.........................................224 

Small business loans....................................213, 1201 

Specific valuation allowances................................201 

Provisions and transfers in Schedule VA ..........410 

State and Municipal Obligations 

in Schedule SC ..................................................204 

Stock 

Issued...............................................................1007 

Retired .............................................................1008 

Subscriptions .....................................................226 

Stock exchange ticker symbol .............................1402 

Stock subscriptions................................................230 

Structured borrowings 

Schedule CMR defined....................................1845 

Subordinate organizations 

Definition...........................................................104 

Investment in .....................................................219 

Negative equity investment ...............................230 

Net income from................................................310 

Subordinated debentures........................................228 

in Tier 2 capital................................................1611 

Interest expense .................................................304 

Issuance costs ....................................................222 

Subordinated securities 

Schedule CC ......................................................705 

Subsidiary 

Defined for regulatory capital..........................1602 

GAAP consolidated ...........................................104 

Lower-tier, defined ..........................................1603 

Nonincludable, defined....................................1604 

Sale of................................................................309 

Supplementary capital .....................See Tier 2 capital 

T

Tangible capital ...................................................1602 

Tax and insurance escrows 

Advances for......................................................212 

Taxes 

Deferred.............................................................229 

Income tax expense ...........................................315 

Interest income from refunds.............................310 

Payable ..............................................................229 

Receivable .........................................................222 

Telephone expense ................................................314 

Temporary employee expense ...............................311 

TFR 

Copies of Forms and Instructions ......................101 

TFR Schedules 

List of ................................................................101 

Tier 1 capital........................................................1603 

Requirement ....................................................1609 

2108 INDEX 
THRIFT FINANCIAL REPORT INSTRUCTION MANUAL MARCH 2010 

 INDEX 2109 

Tier 1 risk-based capital ......................................1602 

Tier 2 capital 

Allowable in total regulatory capital ...............1612 

Defined ............................................................1609 

Time-share loans....................................................215 

Construction loans .............................................209 

Trading securities ..................................................202 

Defined ............................................................1001 

Transmission..................................................101, 103 

Travelers’ checks 

Risk weighting.................................................1618 

Treasury stock ...................................233, 1405, 1411 

Treasury tax and loan accounts..............................224 

Troubled debt restructured 

Defined ..............................................................414 

Nonaccrual status...............................................503 

Schedule PD ......................................................505 

Trust Services ......................................................1301 

Trusts...................................................................1304 

Fee income.........................................................307 

Uninvested funds ...............................................225 

U

U.S. government and agency securities ................203 

IO and PO Strips................................................203 

U.S. Savings Bonds 

Redeemed ..........................................................202 

U.S. Treasury bills.................................................203 

U.S. Treasury securities 

Risk weighting.................................................1616 

U.S. Treasury tax and loan accounts......................230 

Unapplied loan disbursements...............................222 

Unposted credits ....................................................223 

Utility deposits.......................................................222 

V

Valuation allowances 

Elimination in sales ...........................................403 

Provision for loss...............................................305 

Provision for loss on noninterest bearing assets 313 

Purchased assets ................................................404 

Reconciliation....................................................401 

W

Web site expense ...................................................314 

Who must file ........................................................103 

Who to call ............................................................101 

Withholding taxes 

Employees’ share...............................................226 

From deposits ....................................................226 

Payable, employer's share..................................229 
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