Board of Governors of the Federal Reserve System

Data Dictionary

Item Number 3632

Call confidentiality applies to FFIEC 031/041.

Data Description:

Includes the amount of undivided profits and capital reserves less the carrying value of treasury stock and less the amount of any borrowings by an Employee Stock Ownership Plan (ESOP) that the reporting bank reports as "Other borrowed money." as of the report date. The amount of the undivided profits and capital reserves reflects the transfer of net income, declaration of dividends, transfers to surplus, and any other appropriate entries. (See the Glossary section for "treasury stock" for further information in the Instructions for the Reports of Condition and Income Manual.)

Adjustments of accruals and other accounting estimates made shortly after the report date which relates to the income and expenses of the year-to-date period ended as of the report date is reported in the appropriate items of Schedule RI, Income Statement, for that year-to-date period.

Savings banks should include in this item the outstanding balance of any net worth certificates issued to the FDIC. Massachusetts mutual savings banks and cooperative banks that have issued mutual capital certificates to the Mutual Savings Central Fund or the Cooperative Central Bank under the terms of capital assistance agreements should also include the outstanding balance of such certificates in this item.

Capital reserves are segregations of undivided profits and are not to be reported as liability accounts or as reductions of asset balances. Capital reserves may be established for such purposes as:

(1)   Reserve for undeclared stock dividends -- includes amounts set aside to provide for stock dividends (not cash dividends) not yet declared.

(2)   Reserve for undeclared cash dividends -- includes amounts set aside for cash dividends on common and preferred stock not yet declared. (Cash dividends declared but not yet payable is included in "Other Liabilities (2938)".)

(3)   Retirement account (for limited-life preferred stock or subordinated notes and debentures) -- includes amounts allocated under the plan for retirement of limited-life preferred stock or subordinated notes and debentures contained in the bank's articles of association or in the agreement under which such stock or notes and debentures were issued.

(4)   Reserve for contingencies -- includes amounts set aside for possible unforeseen or indeterminate liabilities not otherwise reflected on the bank's books and not covered by insurance. This reserve may include, for example, reserves set up to provide for possible losses which the bank may sustain because of lawsuits, the deductible amount under the bank's blanket bond, defaults on obligations for which the bank is contingently liable, or other claims against the bank. A reserve for contingencies represents a   segregation of undivided profits. It should not include any element of known losses or of any probable losses the amount of which can be estimated with reasonable accuracy (see the Glossary section for   loss contingencies" for additional information in the Instructions for the Reports of Condition and Income Manual.)

Excludes from undivided profits and capital reserves:

(1)   Any portion of the proceeds received from the sale of common stock in excess of its par or stated value (reported in item 3839) except where required by state law or regulation.

(2)   Any portion of the proceeds received from the sale of preferred stock in excess of its par or stated value (reported in Schedule RC, item 3282 or 3838, as appropriate).

(3)   "Reserves" that reduce the related asset balances such as valuation allowances (e.g., allowance for loan and lease losses), reserves for depreciation, and reserves for bond premiums.

NOTE:

Reported in Schedule RC - Equity Capital for the FFIEC 031-034 reports.

COMPARABILITY:

Prior to 3/31/94, includes: Reserve for securities (other than for any net unrealized loss on marketable equity securities) -- includes all reserves for securities created by appropriations of undivided profits. However, valuation allowances for securities created by charges to expense is deducted from the related category of securities. In addition, the amount of any net unrealized loss on marketable equity securities is reported as a deduction from equity capital in item 0297.

Prior to 3/31/90, excludes: (1) any portion of the proceeds received from the sale of perpetual preferred stock and common stock in excess of its par or stated value (reported in item 3240) and (2) any portion of the proceeds received from the sale of limited-life preferred stock in excess of its par or stated value (reported in item 3282).

For the UBPR series, the FDIC's Data Element name is PFT-UNDIV