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FIL-63-97 Attachment C

OPTIONAL REGULATORY CAPITAL WORKSHEET

WORKSHEET PART 1.

Schedule Item # Amount Item Name/ Comments
CALCULATION OF ELIGIBLE TIER 1 CAPITAL
Components of Tier 1 Capital:
1. RC 24 plus 25 _________ Common stock and surplus
2. RC 26.a plus 27 _______ Undivided profits and F/X translation adjustment
3. RC-B
RC-B 		6 col. C minus
6 col. D 		_______ Unrealized loss on equity securities (subtract total of items 6.a and b, column D, from total of items 6.a and b, column C; however, if the amount is negative, enter zero)
4. RC-M 9 _______ Qualifying perpetual preferred stock & related surplus
5. RC-G 3 _______ Qualifying minority interest in the equity accounts of consolidated subsidiaries (exclude nonqualifying portions)
6. Line 1, plus line 2 minus line 3, plus lines 4 and 5 _______ "Gross" Tier 1 Capital
Adjustments to Tier 1 Capital:
7. RC-M 6.b.(2) _______ LESS: All other identifiable intangible assets
8. RC-M 6.c. _______ LESS: Goodwill
9. RC-M 6.e. _______ PLUS: Intangible assets that have been grandfathered or are otherwise qualifying for regulatory capital purposes
10. Line 6 minus lines 7 and 8 plus line 9 _______ "Adjusted Gross" Tier 1 Capital
11. 25% of line 10 _______ Limitation on the amount of purchased credit card relationships (PCCRs) that may be held as an asset
12. 50% of line 10 _______ Limitation on the total amount of mortgage servicing assets (MSAs) and PCCRs that can be held as assets
13. RC-M 6.b.(1) _______ Intangible assets: PCCRs (If 90% of the fair value of PCCRs is less than RC-M, item 6.b.(1), enter 90% of the fair value on line 13 and add the difference to line 14)
14. Line 13 minus line 11 _______ Disallowed PCCRs: If line 13 minus line 11 is a negative number, enter 0; otherwise, enter the difference
15. RC-M 6.a. _______ Intangible assets: MSAs (If 90% of the fair value of MSAs, as reported in RC-M, item 6.a.(1), is less than RC-M, item 6.a, enter 90% of the fair value on line 15 and add the difference to line 17)
16. Line 15 plus the lesser of line 11 or line 13 _______ MSAs plus the qualifying portion of PCCRs
17. Line 16 minus 12 _______ Disallowed MSAs and PCCRs based on an aggregate limitation (If line 16 minus line 12 is a negative number, enter 0; otherwise, enter the difference)
18. RC-F Memo #1 _______ Disallowed deferred tax assets
19. Sum of lines 14, 17 and 18 _______ Total disallowed MSAs, PCCRs and deferred tax assets 1
20. Line 10 minus line 19 _______ Tier 1 Capital
(report in Schedule RC-R, item 3.a)
CALCULATION OF ELIGIBLE TIER 2 CAPITAL
Components of Tier 2 Capital:
21. RC-R 2.a _______ Portion of qualifying subordinated debt and intermediate-term preferred stock and related surplus that is includible in Tier 2 capital
22. RC-R 2.b _______ Portion of other qualifying limited-life capital instruments that is includible in Tier 2 capital
23. RC
RC-M 		23 minus 9 _______ Cumulative perpetual preferred stock
24. RC-M 7 _______ Mandatory convertible debt, net of common or perpetual preferred stock dedicated to redeem the debt
25. Sum of lines 21, 22, 23
and 24 		_______ Tier 2 capital components BEFORE the addition of qualifying allowance for loan and lease losses (ALLL) 2
Calculation of Risk-Weighted Assets:
26. "Gross" risk-weighted assets from Worksheet Part 2, Row 28 [or from of "gross" risk-weighted assets excluding assets deducted for capital purposes, but before deducting any excess (disqualified) ALLL and any allocated transfer risk reserve] _______ "Gross" Risk-Weighted Assets excluding assets deducted for capital purposes, but before deducting any excess (disqualified) allowance for loan and lease losses and any allocated transfer bank's own calculation risk reserve.
Constraint on Allowance for Loan and Lease Losses (ALLL):
27. 1.25% of line 26 _______ Maximum amount of ALLL permitted in Tier 2 capital
28. RC 4.b. _______ Allowance for Loan and Lease Losses (ALLL)
29. Enter the lesser of lines
27 or 28 		_______ Amount of the ALLL allowed in Tier 2 capital
30. Subtract line 29 from 28 _______ Excess (disqualified) ALLL (report in Schedule RC-R, item 3.d)
31. Add lines 25 and 29 _______ Eligible Tier 2 capital
32. Enter the lesser of lines
20 or 31 		_______ Tier 2 Capital
(report in Schedule RC-R, item 3.b)
33. RC-M Memo 1.a (from 12-31-96 Call Report) and from bank records _______ Reciprocal holdings of bank capital instruments plus investments, both equity and debt, in unconsolidated banking and finance subsidiaries that are deemed to be capital of the subsidiary, plus any other assets that must be deducted when determining total risk-based capital in accordance with the requirements of the bank's primary federal supervisory authority.
34. Line 20 plus line 32 minus line 33 _______ Total Risk-Based Capital
(report in Schedule RC-R, item 3.c)
CALCULATION OF RISK-BASED CAPITAL (RBC) RATIOS
35. RC 4.c. _______ Allocated Transfer Risk Reserve (ATRR)
36. Line 26 minus the sum of lines 30 and 35 _______ Risk-Weighted Assets (after deduction of all disallowed intangibles, disallowed deferred tax assets, the excess ALLL, and ATRR) [report in Schedule RC-R, item 3.e]
37. Divide line 34 by line 36 and multiply by 100 _______ % Total RBC Ratio
38. Divide line 20 by line 36 and multiply by 100 _______ % Tier 1 RBC Ratio
1 Banks should add to this line the amount of any other assets that must be deducted when determining Tier 1 capital in accordance with the requirements of their primary federal supervisory authority.

2 Banks that file FFIEC 034 may add the amount shown on RC item 28.b. to this sum -- losses deferred pursuant to 12 U.S.C. 1823(j).

Last Updated: March 23, 2024