2023 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.