Appendix A: Summary of Changes to the BHCPR

This appendix describes the signi­ ficant changes to the Bank Holding Company Performance Report since the publication of the previous edition of the manual (dated March 2005).

BHCPR User’s Guide • March 2007

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Summary of Changes to the March 31, 2007 Bank Holding Company Performance
Report (BHCPR)
Since the last revision of the BHCPR in March 2006, new ratios and line items were added due to new report­ ing requirements for the FR Y-9C reporting form and a new page was added to provide additional detail on concentrations of credit. 1. Cover Page, Table of Contents: • The titles for pages 7 and 7A were retitled to “Percent Composition of Assets” and “Loan Mix and Analysis of Concentrations of Cred­ it,” respectively, and new page 13B, “Past Due and Nonaccrual Loans and Leases (Continued),” was added. 2. Page 4, Non-Interest Income and Expenses: • To follow the revised Y-9C layout, under the “Non-Inter­ est Income and Expense” and “Percent of Adj Oper Income (TE)” headings, the line items for “Insurance activities rev­ enue” were moved under “Investment banking fees and commissions.” 3. Page 7, Percent Composition of Assets and Loan Mix: • The page was retitled “Percent Composition of Assets.” • The entire “Loan Mix, Pct of Gross Loans & Leases” sec­ tion was moved to page 7A. 4. Page 7A, Analysis of Concentra­ tions of Credit: • The page was retitled “Loan Mix and Analysis of concen­ trations of Credit.” • In the “Loan Mix” section and under the “Construction and Land Dev” item, new line items were added for “1-4 Family” and “Other” loans and under the “Non­ farm Nonresidential” item, new line items were added for “Owner-Occupied” and “Other “ loans. • The denominator for the con­ centration ratios was changed from “Tier 1 Risk Based Capi­ tal plus Allowance for Loans and Lease Losses” to “Total Risk Based Capital.” • In the “Percent of Total Risk Based Capital” section and under the “Construction and Land Dev” item, new line items were added for “1-4 Family” and “Other” loans and under the “Non­ farm Nonresidential” item, new line items were added for “Owner-Occupied” and “Other “ loans. 5. Page 12, Allowance and Net Loan and Lease Losses: • In the “Net Loan and Lease Losses by Type” section and under the “Construction and Land Dev” item, new line items were added for “1-4 Family” and “Other” loans and under the “Non­ farm Nonresidential” item, new line items were added for “Owner-Occupied” and “Other “ loans. 6. Page 13A, Past Due and Nonaccrual Assets: • The “Memoranda” section was moved to new page 13B due to space limitations on the page. 7. Page 13B, Past Due and Nonaccrual Assets (Continued): • Under the “Construction and Land Dev” item, new line items were added for “1-4 Family” and “Other” loans and under the “Non­ farm Nonresidential” item, new line items were added for “Owner-Occupied” and “Other “ loans. 8. Page 14, Risk-Based Capital: • In the “Tier 1 Capital” section, a new line item was added for “Less: Cumulative Change in Fair Values of Liabilities” under the “Less: Goodwill and Other Intangible” item. 9. Page 16, Foreign Activities: • In the “Net Losses as % of Foreign Loans & Leases by Type” section, the line item for “Leases” was removed in that this item is no longer reported on the Y-9C report­ ing form.

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BHCPR User’s Guide • March 2007

Summary of Changes to the March 31, 2006 Bank Holding Company Performance
Report (BHCPR)
The following peer groups, ratios and line items were either modified or added to the March 2006 BHCPR, primarily due to new reporting requirements for the FR Y-9C report­ ing form. 1. Cover Page: • In the Peer Group Descrip­ tion section—peer groups 5 and 6 were combined due to the increase in the asset-size threshold for filing the FR Y-9C from $150 million to $500 million for most bank hold­ ing companies. Peer group 5 is now defined as BHCs with consolidated assets of less than $500 million. Peer group 6 will be maintained for all periods prior to March 31, 2006. 2. Page 1, Summary Ratios: • In the “Losses, Allowance, and Past Due and Nonaccrual” sec­ tion—a new ratio was added for “Allowance for Loans and Lease Losses to Total Loans and Leases Not Held-ForSale” for both current and historic time periods. Total loans and leases not held-for­ sale are reported on schedule HC, line item 4.b. of the FR Y-9C, “Loans and leases, net of unearned income.” 3. Page 5, Assets: • In the asset structure sec­ tion—the line item for “Loans to Foreign Governments and Institutions” was removed; the calculation for “Other Loans and Leases” was revised by summing the new FR Y-9C line items for “Loans for Purchas­ ing and Carrying Securities” and “All Other Loans” with “Loans to Foreign Govern­ ments and Institutions” for both current and historic time periods. In addition, the line item for “Acceptances” was removed. For historical cal­
BHCPR User’s Guide • March 2007

culations, acceptances have been added to “Intangible and Other Assets.” Acceptances are no longer reported sepa­ rately on the FR Y-9C. • In the “Memoranda” section— new line items were added for “Loans Held-For-Sale” and “Loans Not Held-For-Sale” for both current and historic time periods. Loans Held-For-Sale are reported on schedule HC, line item 4.a. of the FR Y-9C, “Loans and leases held for sale.” • In the “Total Investment Secu­ rities” section—the calculation for “Asset-Backed Securities” was revised to include the new FR Y-9C report totals for “Asset-Backed Securities (HTM), Amortized Cost” and “Asset-Backed Securities (AFS), Fair Value.” • In the “Available-For-Sale Securities” section the calcula­ tion for “Asset-Backed Securi­ ties” was revised to include the new FR Y-9C report total for “Asset-Backed Securities (AFS), Fair Value.” 4. Page 6, Liabilities and Changes in Capital: • In the section detailing the structure of liabilities and capital—the line item for “Acceptances” was removed. For historical calculations, acceptances have been added to “Other Liabilities.” Accep­ tances are no longer reported separately on the FR Y-9C. 5. Page 7, Percent Composition of Assets and Loan Mix: • In the “Percent of Total Assets” section—the line item for “Acceptances” was removed. For historical calculations, acceptances have been added to “All other Assets.” Accep­

tances are no longer reported separately on the FR Y-9C. • In the Memoranda section— new line items were added for “Loans Held-For-Sale” and “Loans Not Held-For-Sale” for both current and historic time periods. • In the “Loan Mix, % of Gross Loans & Leases” section—the line item for “Loans to Foreign Governments and Institu­ tions” was removed and add­ ed to “Other Loans & Leases” for both current and historic time periods. 6. Page 9, Derivatives and OffBalance-Sheet Transactions: • In the section detailing the dollar volume of off-balance­ sheet and derivative contract balances—the calculations for “Credit Derivatives (BHC and Guarantor)” and “Credit Derivatives (BHC as Benefi­ ciary)” were revised to include the new FR Y-9C report items for notional amount of credit derivative swaps, total return swaps, credit options, and other credit derivatives. In addition, new line items were added for “Credit Deriva­ tive Contracts—Investment Grade” and “Credit Derivative Contracts—Subinvestment Grade.” • In the “Percent of Total Assets” section—new ratios were added for “Credit Deriva­ tive Contracts—Investment Grade” and “Credit Derivative Contracts—Subinvestment Grade.” 7. Page 10, Derivative Instruments: • The “Impact of Nontraded Derivative Contracts:” section was removed for both cur­ rent and historic time periods (these items are no longer reported on the FR Y-9C). A-3

8. Page 11, Derivative Analysis: • The “Impact of Nontraded Derivative Contracts:” section was removed for both current and historic time periods. 9. Page 12, Allowance and Net Loan and Lease Losses: • In the “Analysis Ratios” section—a new ratio was added for “Allowance for Loans and Lease Losses to Total Loans and Leases Not Held-For-Sale” for both cur­ rent and historic time periods. This is the same ratio that was added to Page 1. • In the “Net Loan and Lease Losses by Type” section—the

line item for “Other Loans and Leases” excludes “Loans to Foreign Governments and Institutions,” which are listed separately. 10. Page 15, Insurance and BrokerDealer Activities: • In the “Insurance Activities ($000)” section—all institu­ tions are now required to report total life insurance assets, thus the caption for “Cash Surren­ der Value of Life Insurance (if > 25%)” was revised by removing the 25 percent threshold requirement.

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BHCPR User’s Guide • March 2007