Board of Governors of the Federal Reserve System

Data Dictionary

Item Number 2728

Call confidentiality applies to FFIEC 031/041.

Data Description:

Includes the unamortized balance of discounts and premiums on deposits. Report the face amounts of the related deposits on items 2339 and 2071. These yield adjustments are amortized to interest expense on item no. 4326. This data field may be negative, representing a debit.

In marking assets and liabilities to fair value, discounts and premiums must be recorded and amortized in accordance with GAAP as principally prescribed in APB No. 16. "Business Combinations" and FAS No. 72, "Accounting for Certain Acquisitions of Banking or Thrift Institutions." This item is reported monthly and quarterly.

Also includes:

1. Discounts and premiums from marking deposits to fair value as a result of an acquisition, merger, or change in control;

2. Unamortized deferred gain or loss on hedging transactions closed prior to adoption of SFAS No. 133; and

3. Accumulated gain and loss (the change in fair value) on deposits attributable to the designated risk being hedged on a qualifying fair value hedge under SFAS No. 133.

This line is negative (i.e., a debit) when unamortized discounts, capitalized expenses, and losses on terminated interest-rate swaps exceed the total credit-balance yield adjustments.

COMPARABILITY:

Prior to 3/31/04 item name was "Unamortized Yield Adjustments on Deposits" and included the unamortized balance of discounts and premiums on deposits. Reported are the face amounts of the related deposits in item 2339. These yields adjustments are amortized to interest expense in item 4326.

Prior to 3/31/90, item name was "Discounts Net of Premiums on Deposits and Borrowings."

Prior to 9/30/1998, definition included commissions paid on deposits and promotions, give-aways and other capitalized expenses.

NOTE:

Beginning 12/30/2000, definition items under "Includes" revised to:

1. Discounts and premiums resulting from initially recording purchased deposits at fair value;

2. Discounts and premiums related to accounting for a derivative instrument embedded in deposits as either a separate asset or liability, when required by SFAS No. 133;

3. The accumulated gainor loss (the change in fair value) on deposits attributable to the designated risk being hedged on a qualifying fair value hedge under SFAS No. 133; and

4. Unamortized deferred gains and losses on hedging transactions closed prior to adoption of SFAS No. 133.

Beginning 9/30/2000, items 2 and 3 under "Includes" revised to:

2. Unamortized deferred gains and losses on hedging transactions closed prior to adoption of SFAS No. 133;

3. The accumulated gain or loss (the change in fair value) on deposits attributable to the designated risk being hedged on a qualifying fair value hedge under SFAS No. 133.

Beginning 9/30/1998, definition revised to.

Exclude:

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; reported in item 0507; or

3. Deferred gains and losses on deposit hedges prior to the adoption of SFAS No. 133; reported in item 2074, Code 03.