Board of Governors of the Federal Reserve System

Data Dictionary

Item Number 4092

Call confidentiality applies to FFIEC 031/041.

Data Description:

Includes all operating expenses of the entity for the calendar year-to-date not required to be reported.

If the absolute value of the dollar amount of net (gains) losses on other real estate owned, net (gains) losses on sales of loans and leases, or net (gains) losses on sales of premises and fixed assets exceeds ten percent of the amount reported in this item, the dollar amount of this individual component of "Other noninterest expense" in Schedule RI-E, item 2.b, or 2.c (item 4180 or 4185), is reported respectively. (Absolute value refers to the magnitude of the dollar amount without regard to whether the amount is a net gain or loss.) For those other individual components of this item with the three largest dollar amounts that exceeds ten percent of the amount reported in this item, the dollar amount is stated and a description of the component in Schedule RI-E, item 2 is provided.

Includes as other noninterest expense:

(1) Fees paid to directors and advisory directors for attendance at Board of Directors or committee meetings (including travel and expense allowances);

(2) Premiums on fidelity insurance (blanket bond, excess employee dishonesty bond), directors' and officers' liability insurance, and life insurance policies for which the bank is the beneficiary;

(3) Federal Deposit Insurance, Financing Corporation (FICO), and Comptroller of the Currency assessment expense net of all assessment credits during the period;

(4) Legal fees and other direct costs incurred in connection with foreclosures and subsequent noninterest expenses related to holdings of real estate owned other than bank premises (including depreciation charges, if appropriate);

(5) Net losses (gains) from the sale or other disposal of assets other than securities and trading assets. Banks should consistently report net losses (gains) on each of the following types of assets either in this item or in Schedule RI, item 5408 (item 5.b.(2) on the FFIEC 034, item 5.f.(2) on the FFIEC 031, 032, and 033). Includes in this item net losses (gains) from:

(a) All assets reportable as loans and leases in Schedule RC-C (for the FFIEC 031-034 reports). Includes net unrealized losses (and subsequent recoveries of such net unrealized losses) on loans and leases held for sale during the calendar year to date.

(b) Premises and fixed assets.

(c) Other real estate owned. Includes all gains and losses recognized on sales or other disposals of other real estate owned, increases and decreases in the valuation allowance for foreclosed real estate, and write-downs of other real estate owned subsequent to acquisition (or physical possession) charged to expense during the calendar year to date. Does not include as a loss on other real estate owned any amount charged to the allowance for loan and lease losses at the time of foreclosure (or physical possession) for the difference between the carrying value of a loan and the fair value less cost to sell of the foreclosed real estate.

(d) Personal property acquired for debts previously contracted (such as automobiles, boats, equipment, and appliances).

(e) Detached coupons and ex-coupon securities.

(f) Coins, art, and other similar assets.

(g) Branches (i.e., where the reporting bank sells a branch's assets to another depository institution which assumes the deposit liabilities of the branch).

(6) Sales taxes, taxes based on the number of shares of bank stock outstanding, taxes based on the bank's total assets or total deposits, taxes based on the bank's gross revenues or gross receipts, capital stock taxes, and other taxes not included in other categories of expense. Excludes any foreign, state, and local taxes based on a net amount of revenues less expenses (reported as applicable income taxes in items 4302 and 4315 (Schedule RI, items 9 and 11.b, as appropriate)).

(7) Amortization expense of intangible assets (as defined for item 2143 (Schedule RC, item 10) (listed and described regardless of amount in item 4531 (Schedule RI-E, item 2.a). Banks also are permitted to net any servicing asset amortization expense against servicing income reported in item 5407 (Schedule RI, item 5.b.(1) on the FFIEC 034, item 5.f.(1) on the FFIEC 031, 032, and 033).

(8) Cost of data processing services performed for the bank by others.

(9) Advertising, promotional, public relations, and business development expenses. Also includes the cost of athletic activities in which officers and employees participate when the purpose may be construed to be for public relations with employee benefits only incidental to the activities.

(10) Cost of gifts or premiums (whether in the form of merchandise, credit, or cash) given to depositors at the time of the opening of a new account or an addition to, or renewal of, an existing account.

(11) Fees levied by deposit brokers that are, in substance, retainer fees or that otherwise do not represent an adjustment to the interest rate paid on deposits the reporting bank acquires through brokers. However, report as interest expense on the appropriate category of deposits those finders' fees and brokers' fees that do represent an adjustment to the interest rate paid on brokered deposits.

(12) Research and development costs and costs incurred in the internal development of computer software.

(13) Net losses (gains) from all transactions involving foreign currency or foreign exchange other than trading transactions. Banks should consistently report these net losses (gains) either in this item or in Schedule RI, item 5408 (item 5.b.(2) on the FFIEC 034, item 5.f.(2) on the FFIEC 031, 032, and 033).

(14) Charges resulting from litigation or other claims.

(15) Charitable contributions including donations by Clifford Trusts.

(16) Retainer fees, legal fees, audit fees, and other fees and expenses paid to attorneys, accountants, management consultants, investment counselors, and other professionals who are not bank officers or employees.

(17) Office supplies purchased, printing, and postage.

(18) Telephone and telegraph expenses.

(19) Examination and other fees levied by supervisory authorities.

(20) Net tellers' shortages, forged check losses on payment of checks over stop payment orders, losses from counterfeit money, and similar recurring operating losses of this type.

(21) Losses from robberies, defalcations, and other criminal acts not covered by the bank's blanket bond.

(22) Travel and entertainment expenses, including costs incurred by bank officers and employees for attending meetings and conventions.

(23) Dues, fees, and other expenses associated with memberships in country clubs, social or private clubs, civic organizations, and similar clubs and organizations.

(24) Civil money penalties and fines.

(25) All service charges, commissions, and fees levied by others for the repossession of assets and the collection of the bank's loans or other assets, including charged-off loans or other charged-off assets.

(26) Expenses (except salaries) related to handling credit card or charge sales received from merchants when the bank does not carry the related loan accounts on its books. Banks are also permitted to net these expenses against their charges to merchants for the bank's handling of these sales in item 5407 (in Schedule RI, item 5.b.(1) on the FFIEC 034, item 5.f.(1) on the FFIEC 031, 032, and 033).

(27) The cost of bank newspapers and magazines prepared for distribution to bank officers and employees or to others.

(28) Depreciation expense of furniture and equipment rented to others under operating leases.

(29) Cost of checks provided to depositors.

(30) Amortization expense of purchased computer software and of the costs of computer software to be sold, leased, or otherwise marketed capitalized in accordance with the provisions of FASB Statement No. 86.

(31) Certain net losses (gains) on futures and forward contracts held for purposes other than trading recognized as described in the Glossary entry for "derivative contracts." Banks should consistently report these net losses (gains) either in this item or in Schedule RI, item 5408 (item 5.b.(2) on the FFIEC 034, item 5.f.(2) on the FFIEC 031, 032, and 033).

Excludes: (1) material expenses incurred in the issuance of subordinated notes and debentures (such expenses are capitalized and are amortized over the life of the related notes and debentures and the expense is reported in "Interest on Notes and Debentures Subordinated to Deposits (4200)"; (2) expenses incurred in the sale of preferred and common stock, (such expenses are deducted from the sale proceeds and the net amount is credited to the appropriate stock account). For perpetual preferred and common stock only, the net sales proceeds are reported in "Sale, Conversion, Acquisition, or Retirement of Capital Stock, Net (4346)"; (3) depreciation and other expenses related to the use of bank owned automobiles, airplanes, and other vehicles for bank business (included in "Expenses of Premises and Fixed Assets (4217)"); and (4) write-downs of the cost basis of individual held-to-maturity and available-for-sale securities for other than temporary impairments reported in item 3521 and in item 3196, respectively (in Schedule RI, item 6.a, and item 6.b).

NOTE:

Reported in Schedule HI for the FR Y-9C (BHCK) report.

For the (BHCK) FR Y-9C report, the MDRM reflects data starting for the period of June 30, 1981 thru current archival file.

Reported on the Income Statement for the FR Y-11Q (BHCS) report.

Reported in Schedule RI - Income Statement for the FFIEC 031, 032, 033, and 034 reports.

COMPARABILITY:

Beginning 6/30/1997, a nonbank subsidiary may include as other noninterest expense in this item net losses (gains) from the sale of loans and certain other assets as long as the nonbank subsidiary reports such transactions on a consistent basis for the "BHCS" series.

Prior to 12/31/84, excludes taxes based on the bank's gross revenues or gross receipts.