Board of Governors of the Federal Reserve System

Data Dictionary

Item Number 6418

Call confidentiality applies to FFIEC 031/041.

Data Description:

Report this line as a positive amount since it will be deducted from item 5279 Tier 1 (core) capital.

Savings associations may include servicing assets reported in items A607 and A608 in regulatory capital, subject to both of the following limitations.

For mortgage and nonmortgage servicing assets, and PCCRs, combined - include the lesser of:

100% of Tier 1 (core) capital,

90% of fair value, or

100% of reported amount (amortized cost, net of specific valuation allowances).

For nonmortgage servicing assets and PCCRs, as a separate sub-limit - include the lesser of:

25% of Tier 1 (core) capital,

90% of fair value, or

100% of reported amount (amortized cost, net of specific valuation allowances).

Accordingly, in item 6418, include the amount of servicing assets reported in tems A607 and A608 (that are not in a "nonincludable" subsidiary) and PCCRs included in item 0507 that exceed the above limitations.

For purposes of the 25% and 100% of Tier 1 (core) capital limitations above, the deductions should be based on a Tier 1 (core) capital subtotal before the deduction. Also, in computing the deduction, for the 25% and 100% limitations, the reported amount of servicing assets may be reduced by any corresponding deferred tax liability.

Disallowed Deferred Tax Assets

Also includes in 6418 the amount of disallowed deferred tax assets that will be deducted from regulatory capital. To the extent that the realization of deferred tax assets depends on a savngs association's future taxable income (exclusive of reversng temporary differences and carryforwards), or its tax planning strategies, such deferred tax assets are limited for regulatory capital purposes to the lesser of:

The amount that can be realized within one year, or

10% of Tier 1 (core) capital

Accordingly, disallowed deferred tax assets is that amount includable in assets under GAAP, but not includable in regulatory capital pursuant to OTS policy. The deferred tax asset subject to the limitation is the net deferred tax asset or liability included on Schedule SC, adjusted for the deferred tax asset or liability added to or subtracted from total assets related to the following;

Net unrealized gains and losses on certain available-for-sale securities in item A140,

Goodwill and other intangible assets in items 5272 and 5301, and

Servicing assets in item 6420.

Note that deferred tax assets that can be realized from the following generally are not limited:

Taxes paid in prior carry-back years, and

Future reversals of existing taxable temporary differences.

For purposes of the 10% of Tier 1 (core) capital limitation above, the deduction should be based on a Tier 1 (core) capital subtotal before the deduction.

NOTE:

Definition revised 9/30/1998.

Reported on Schedule CCR of the SVGL report.

For SVGL, title is "Fixed-Maturity Deposits - More Than Three Years Thru Five Years." This item is on the report forms 19840331 thru 19890331; no data on FDR.

COMPARABILITY:

Beginning 3/31/02, definition revised to include "disallowed residual interest."

Prior to 3/31/02, item name was "Disallowed Servicing Asssets, Disallowed Deferred Tax Assets, and Other Disallowed Assets."

Beginning 3/31/1998, definition revised to clarify that servicing assets are reduced by corresponding deferred tax liabilities only in the 25% and 100% limitations and not for the 10% haircut.

Prior to 3/31/1998, item name was 'Nonqualifying Purchased Mortgage Loan Servicing".