NY Banking L § 244 (2021)
2021 New York Laws BNK - Banking Article 6 - Savings Banks 244 - Earnings; How and When to Be Computed; Transfers to Surplus Fund.

§ 244.  Earnings;  how  and  when to be computed; transfers to surplus fund.  1. Every savings bank shall close its books  no  less  frequently than  quarterly.  To determine the amount of gross earnings for any such accounting period the following items shall be included:  (a)  All  earnings  actually  received,  less  interest  accrued   and uncollected included in a previous computation of earnings;  (b) Interest accrued and uncollected upon debts owing to it, exclusive of  debts  or  portions  of  debts,  which  its board of trustees or the superintendent shall have directed to be excluded from  the  computation of the accrual;  (c)  Amounts  added  to  cost  for  the  purpose  of amortizing bonds, promissory notes or other  interest-bearing  obligations  purchased  for less than par;  (d)  Any  profits  actually received from the sale of securities, real estate or other property owned by it;  (e) Amounts recovered on  assets  previously  charged  off,  including amounts  allowed  by  the superintendent on account of assets previously disallowed by him and other amounts allowed by the board of trustees  on account  of  assets previously disallowed by it. For the purpose of this paragraph amounts transferred to valuation reserves shall be  considered as amounts charged off;  (f)  Provided  the superintendent shall have approved, and only to the extent of such approval, any increase in the  book  value  of  the  real estate  and  building  or  buildings  thereon used by it as its place or places of business;  (g) Such other items as the superintendent, in his discretion and upon his written consent, may permit to be included.   2. To determine the amount of net earnings for such accounting period, the following items shall be deducted from gross earnings:  (a) Any expenses paid or incurred, both ordinary and extraordinary, in the transaction of its business, the collection of debts owing to it and the management of its affairs, less expenses incurred and deducted in  a previous computation of earnings;  (b)  Interest  paid or accrued and unpaid upon deposits held by it and upon debts owing by it, less interest accrued  upon  such  deposits  and debts and deducted in a previous computation;  (c)  Amounts  deducted  from cost for the purpose of amortizing bonds, promissory notes or other  interest-bearing  obligations  purchased  for more than par;  (d)  Any losses sustained by it, except to the extent that such losses have been charged against the surplus fund or valuation reserves. Losses to be deducted from gross earnings shall include all deductions from the book value of assets made pursuant to the directions  of  the  board  of trustees   or   by   reason   of  the  disallowance  of  assets  by  the superintendent, and shall include amounts  transferred  to  a  valuation reserve,  other  than  amounts  transferred  to  the  surplus fund under subdivision  three  of  this  section.  With   the   approval   of   the superintendent, any items referred to in this paragraph may be excluded. For  the  purposes of this paragraph, provision for disallowances may be effected by charge off or by establishment of valuation reserve and  any existing  valuation  reserve  may  be deducted from the related asset in determining the amount of loss sustained.   The balance thus obtained shall constitute the net  earnings  of  such savings bank for such period.   3.  If  at  the  close  of  any accounting period the net worth of any savings bank, including the net earnings for that period, is  less  than ten  per  centum of the amount due to depositors, including all interest accrued and credited for  that  period,  such  per  centum  of  its  net  earnings  for  such period as may be determined by the superintendent of financial services shall be credited to its surplus fund.   4.  For  purposes of this article, the term "net worth" shall mean the excess of assets at book value,  less  allocated  reserves,  over  known liabilities.