lists the various items that, if applicable, should appear on the face of the balance sheet of banks and bank holding companies. The following line items are relevant in the context of loans and investments:
- Interest-bearing deposits in other banks
- Federal funds sold and securities purchased under resale agreements or similar arrangements (which should be presented gross rather than netted against Federal funds purchased and securities sold under repurchase agreements).
- Trading account assets (which include securities or any other investments held for trading purposes only)
- Other short-term investments
- Investment securities
Companies are required to disclose the aggregate book value of investment securities and show the aggregate market value on the face of the balance sheet. The carrying value and market value of should be disclosed in a note for securities of:
1. US treasury and other government agencies and corporations
2. States of the US and political subdivisions
3. Other securities
Separate disclosure is required for total loans, the related allowance for losses, and unearned income.
On the balance sheet or in the notes, reporting entities should disclose the amount of total loans by categories (e.g., commercial, financial, and agricultural; real estate – construction; real estate – mortgage; installment loans to individuals; lease financing; foreign; and other). However, other categories may be used if more appropriate.
The amount of foreign loans is required to be disclosed if S-X 9-05
applies. S-X 9-05
applies once foreign activities – measured by specific indicators such as assets, revenue, and other – exceed a threshold of 10% for that indicator.
For each period for which an income statement is presented, disclosure is required of changes in the allowance for loan losses showing the balance at the beginning and end of the period, the provision charged to income, recoveries of amounts charged off, and losses charged to the allowance.
As of each balance sheet date, disclosure is required of all loans above a specified threshold granted to directors, executive officers, or principal holders of securities, or any associate of such persons. If the aggregate amount of such loans exceeds 5% of stockholder’s equity, an analysis of activity for the most recent year should be provided.
Question LI 12-3 addresses whether the requirements of Regulation S-X Article 9
and Guide 3 also apply to registrants that are not bank holding companies but engage in similar lending and deposit activities.
Question LI 12-3
Do the disclosure requirements of Regulation S-X Article 9
and Guide 3 also apply to registrants that are not bank holding companies but that are engaged in similar lending and deposit activities?
explains that while S-X Article 9
and Guide 3 apply to bank holding companies, they may provide useful guidance to certain other registrants, including savings and loan holding companies, on disclosures relevant to an understanding of the registrant's operations. To the extent particular guidance is relevant and material to the operations of a reporting entity, the SEC staff believes that comparable data should be provided.
does not require banks to present classified balance sheets; therefore, the distinction between current and noncurrent is not relevant for banks and bank holding companies.