Securities Lawyer's Deskbook                          published by The University of Cincinnati College of Law

Rule 9-04 -- Income Statements

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1. Interest and fees on loans. Include commitment and origination fees, late charges and current amortization of premium and accretion of discount on loans which are related to or are an adjustment of the loan interest rate.


2. Interest and dividends on investment securities. Disclose separately



(1) taxable interest income,


(2) non taxable interest income, and


(3) dividends.



3. Trading account interest.


4. Other interest income.


5. Total interest income (total of lines 1 through 4).


6. Interest on deposits.


7. Interest on short-term borrowings.


8. Interest on long-term debt.


9. Total interest expense (total of lines 6 through 8).


10. Net interest income (line 5 minus line 9).


11. Provision for loan losses.


12. Net interest income after provision for loan losses.


13. Other income. Disclose separately any of the following amounts, or any other item of other income, which exceed one percent of the aggregate of total interest income and other income. The remaining amounts may be shown as one amount, except for investment securities gains or losses which shall be shown separately regardless of size.



(a) Commissions and fees from fiduciary activities.


(b) Commissions, broker's fees and markups on securities underwriting and other securities activities.


(c) Insurance commissions, fees and premiums.


(d) Fees for other customer services.


(e) Profit or loss on transactions in securities in dealer trading account.


(f) Equity in earnings of unconsolidated subsidiaries and 50 percent or less owned persons.


(g) Gains or losses on disposition of equity in securities of subsidiaries or 50 percent or less owned persons.


(h) Investment securities gains or losses. The method followed in determining the cost of investments sold (e.g., "average cost," "first-in, first-out," or "identified certificate") and related income taxes shall be disclosed.



14. Other expenses. Disclose separately any of the following amounts, or any other item of other expense, which exceed one percent of the aggregate of total interest income and other income. The remaining amounts may be shown as one amount.



(a) Salaries and employee benefits.


(b) Net occupancy expense of premises.


(c) Goodwill amortization.


(d) Net cost of operation of other real estate (including provisions for real estate losses, rental income and gains and losses on sales of real estate).


(e) Minority interest in income of consolidated subsidiaries.



15. Income or loss before income tax expense.


16. Income tax expense. The information required by Rule 4-08(h) should be disclosed.


17. Income or loss before extraordinary items and cumulative effects of changes in accounting principles.


18. Extraordinary items, less applicable tax.


19. Cumulative effects of changes in accounting principles.


20. Net income or loss.


21. Earnings per share data.

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