Every Schedule RC-C Part I line item and code
Item 1.a.(1): 1-4 family residential construction loans
Construction loans secured by real estate for building 1-4 family residential properties, including combined land-and-construction loans on 1-4 family homes.
- Spec home construction loan to a builder
- Construction-to-permanent loan during the construction phase
- Loan to an individual to build their own house
- Teardown / rebuild of a single-family home
- Townhome or duplex construction (1-4 units)
Watch out: A construction-to-permanent loan stays here only while construction is underway; once the property is complete and the loan converts, it moves to item 1.c. Construction of an apartment building (5+ units) is NOT here. It goes to 1.a.(2).
Official MDRM definition
LOANS SECURED BY 1-4 FAMILY RESIDENTIAL CONSTRUCTION
Loans for the purpose of constructing 1-4 family residential properties, which will secure the loan. Includes construction loans to developers secured by tracts of land on which 1-4 family residential properties, including townhouses, are being constructed.
Item 1.a.(2): Other construction, land development, and other land loans
All construction and land development loans other than 1-4 family residential construction: commercial construction, multifamily construction, land development, and raw land loans.
- Construction loan for an apartment building (5+ units)
- Construction loan for an office, retail, hotel, or warehouse project
- Acquisition and development (A&D) loan for a subdivision
- Raw land / unimproved land loan
- Consumer lot loan for a future home site
- Condo conversion financing
Watch out: Multifamily construction stays here until the building is complete and the loan converts or is refinanced. It does not go to item 1.d (multifamily) while under construction. A lot loan to a consumer is still a land loan, not a consumer loan.
Official MDRM definition
LOANS SECURED BY OTHER CONSTRUCTION LOANS AND ALL LAND DEVELOPMENT AND OTHER LAND LOANS
All construction loans for purposes other than constructing 1-4 family residential properties, all land development loans, and all other land loans. Include loans for the development of building lots and loans secured by vacant land, unless the same loan finances the construction of 1-4 family residential properties on the property.
Item 1.b: Loans secured by farmland
Loans secured by farmland and improvements, including land used for crops, livestock, orchards, and timber where the land is the collateral.
- Loan to buy a farm or ranch, secured by the land
- Mortgage on agricultural land including farm buildings
- Refinance of a farm real estate loan
Watch out: The test is the collateral, not the borrower: a farmer's operating line NOT secured by farmland belongs in item 3 (agricultural production), and a loan on the farmer's personal residence belongs in 1.c.
Official MDRM definition
REAL ESTATE LOANS SECURED BY FARMLAND
Loans secured by mortgages or other liens on farm land and improvements thereon, and all other land known to be used or usable for agricultural purposes, such as crop and livestock production, including grazing or pasture land, whether plowable or not and whether wooded or not.
Item 1.c.(1): Revolving, open-end 1-4 family loans (HELOCs)
Revolving, open-end lines of credit secured by 1-4 family residential properties, home equity lines of credit, whether first or junior lien.
- Home equity line of credit (HELOC)
- First-lien HELOC used to buy a home
- Open-end line secured by a rental single-family house
Watch out: Lien position does not matter for this line: a first-lien HELOC is still 1.c.(1), not 1.c.(2)(a). Closed-end home equity LOANS (a fixed term loan, not a line) go to 1.c.(2)(b) if junior lien.
Official MDRM definition
REVOLVING, OPEN-END LOANS SECURED BY 1-4 FAMILY RESIDENTIAL PROPERTIES AND EXTENDED UNDER LINES OF CREDIT
The amount outstanding of loans extended under revolving, open-end lines of credit secured by 1-4 family residential properties. These lines of credit, commonly referred to as 'home equity lines,' typically are secured by a junior lien and usually are accessible by check or credit card. Report the amount outstanding as of the report date, not the total amount the customer is authorized to borrow.
Item 1.c.(2)(a): Closed-end 1-4 family loans, first lien
Closed-end loans secured by first liens on 1-4 family residential properties, standard first mortgages.
- 30-year fixed-rate first mortgage
- Adjustable-rate first mortgage (ARM)
- First mortgage on a non-owner-occupied single-family rental
- Investor loan on a 1-4 unit rental property
- Completed construction-to-perm loan after conversion
Watch out: Owner occupancy does not matter here: a loan on a single-family RENTAL is still a 1-4 family loan in 1.c.(2)(a), not nonfarm nonresidential CRE, even though many bankers think of it as an investment property loan.
Official MDRM definition
ALL OTHER LOANS SECURED BY 1-4 FAMILY RESIDENTIAL PROPERTIES: SECURED BY FIRST LIENS
All permanent loans secured by first liens on 1-to-4 family residential properties.
Item 1.c.(2)(b): Closed-end 1-4 family loans, junior lien
Closed-end loans secured by junior (second or lower) liens on 1-4 family residential properties.
- Fixed-term home equity loan in second lien position
- Closed-end second mortgage
- Piggyback second lien from a purchase transaction
Official MDRM definition
ALL OTHER LOANS SECURED BY 1-4 FAMILY RESIDENTIAL PROPERTIES: SECURED BY JUNIOR LIENS
All permanent loans secured by junior (i.e., other than first) liens on 1-to-4 family residential properties. Even if the bank also holds a loan secured by a first lien on the same property and there are no intervening junior liens, loans secured by junior liens are included in this item.
Item 1.d: Loans secured by multifamily (5+) residential properties
Permanent loans secured by residential properties with 5 or more dwelling units.
- Mortgage on a completed apartment building
- Loan on a 5+ unit residential complex
- Refinance of a stabilized multifamily property
Watch out: Only COMPLETED multifamily properties belong here. While the building is under construction the loan is 1.a.(2). A 4-plex is 1-4 family (item 1.c), not multifamily.
Official MDRM definition
REAL ESTATE LOANS SECURED BY MULTI-FAMILY (5 OR MORE) RESIDENTIAL PROPERTIES
All permanent nonfarm residential loans (excluding construction and land development loans) secured primarily by real estate on nonfarm properties with 5 or more dwelling units, including apartment buildings and apartment hotels, 5-or-more-unit dwellings with commercial units combined where use is primarily residential, and cooperative-type apartments in structures of 5 or more units.
Item 1.e.(1): Owner-occupied nonfarm nonresidential property loans
Loans secured by owner-occupied commercial real estate, where the primary source of repayment is the cash flow of the business that occupies the property (or an affiliate) rather than rent from third parties.
- Loan to a manufacturer secured by its own plant
- Loan to a dentist secured by the office they practice in
- Warehouse loan where the borrower's business occupies the building
- Loan to a church or nonprofit secured by its own building
Watch out: The owner-occupied test is about the SOURCE OF REPAYMENT, not just who occupies the building: if repayment depends primarily on third-party rents, it is 1.e.(2) even if the owner keeps a unit. Hotels and motels are generally NOT owner-occupied under the instructions, room revenue is treated like rent, so they go to 1.e.(2).
Official MDRM definition
LOANS SECURED BY OWNER OCCUPIED NONFARM NONRESIDENTIAL PROPERTIES
Nonfarm nonresidential property loans for which the primary source of repayment is the cash flow from the ongoing operations and activities conducted by the party, or an affiliate of the party, who owns the property, not third-party, nonaffiliated rental income.
Item 1.e.(2): Other nonfarm nonresidential property loans (investor CRE)
Loans secured by nonfarm nonresidential real estate that is NOT owner-occupied, income-producing commercial property where repayment comes from rent or property income.
- Loan on a strip mall or shopping center leased to tenants
- Office building loan repaid from tenant rents
- Hotel or motel loan
- Self-storage facility loan
- Mixed-use building loan where commercial value predominates
- Warehouse leased to third parties
Watch out: Mixed-use property follows the predominant-value rule: classify by which use accounts for the majority of the property's value (e.g., ground-floor retail under apartments is 1.d if the residential value predominates).
Official MDRM definition
LOANS SECURED BY OTHER NONFARM NONRESIDENTIAL PROPERTIES
Nonfarm nonresidential property loans where the primary source of repayment is derived from rental income associated with the property (i.e., loans for which 50 percent or more of the source of repayment comes from third-party, nonaffiliated rental income) or the proceeds of the sale, refinancing, or permanent financing of the property.
Item 2.a: Loans to commercial banks in the U.S.
Loans to and acceptances of U.S. commercial banks, including their U.S. branches and agencies of foreign banks.
- Term loan to another bank
- Loan to a bank holding company's bank subsidiary
- Purchased banker's acceptance of a U.S. bank
Watch out: Federal funds sold are NOT loans to depository institutions on RC-C, they are reported on Schedule RC, item 3. On the FFIEC 051 this whole category is one line: item 2, RCON1288.
Official MDRM definition
LOANS TO DEPOSITORY INSTITUTIONS AND ACCEPTANCES OF OTHER BANKS: TO COMMERCIAL BANKS IN THE U.S.
Item 2.b: Loans to other depository institutions in the U.S.
Loans to U.S. depository institutions other than commercial banks, savings banks, savings and loans, and credit unions.
- Loan to a credit union
- Loan to a savings and loan association
Official MDRM definition
LOANS TO OTHER DEPOSITORY INSTITUTIONS IN THE U.S.
Loans to and acceptances of depository institutions, other than commercial banks, domiciled in the U.S. Excludes loans to and acceptances of commercial banks in the U.S.
Item 2.c: Loans to banks in foreign countries
Loans to banks domiciled outside the U.S.
- Loan to a foreign correspondent bank
Official MDRM definition
LOANS TO BANKS IN FOREIGN COUNTRIES
Item 3: Loans to finance agricultural production and other loans to farmers
Loans for agricultural production: crops, livestock, and farm operating needs, and other loans to farmers that are not secured by real estate.
- Farm operating line of credit
- Crop production loan
- Livestock purchase loan
- Farm equipment loan to a farmer
Watch out: If the loan is secured by farmland it moves up to item 1.b, collateral wins. A loan to an agribusiness processor (not a farmer) is usually C&I, item 4.
Official MDRM definition
LOANS TO FINANCE AGRICULTURAL PRODUCTION AND OTHER LOANS TO FARMERS
All loans for the purpose of financing agricultural production, whether secured or unsecured and whether made to farm and ranch owners and operators (including tenants) or to non-farmers. Excludes loans secured primarily by real estate and loans to farmers for commercial and industrial purposes (e.g., when a farmer is operating a business enterprise as well as a farm).
Item 4: Commercial and industrial (C&I) loans
Loans for commercial and industrial purposes to businesses, working capital, equipment, inventory, and other operating credit, that are not secured by real estate and don't fit a more specific category.
- Working capital line of credit to a business
- Equipment loan to a company
- Business term loan for expansion or acquisition
- SBA 7(a) loan not secured by real estate
- Business credit card balances
- Overdraft of a commercial deposit account
- Floor plan / dealer inventory financing
Watch out: Collateral beats purpose: a business-purpose loan secured by real estate is reported in item 1, not here, even if the real estate was taken out of an abundance of caution. Business credit cards are C&I, not item 6.a (which is consumer credit cards only). Loans to banks or finance companies have their own lines (items 2 and 9.a).
Official MDRM definition
COMMERCIAL AND INDUSTRIAL LOANS
The sum of commercial and industrial loans to U.S. addressees (1763) and commercial and industrial loans to non-U.S. addressees (1764).
Item 6.a: Credit cards (consumer)
Credit card balances of individuals for household, family, and other personal expenditures, including purchased credit card paper.
- Consumer credit card receivables
- Purchased credit card portfolio
Watch out: Business-purpose credit cards belong in C&I (item 4), not here.
Official MDRM definition
LOANS TO INDIVIDUALS FOR HOUSEHOLD, FAMILY, AND OTHER PERSONAL EXPENDITURES (I.E., CONSUMER LOANS) (INCLUDES PURCHASED PAPER): CREDIT CARDS
All extensions of credit to individuals for household, family, and other personal expenditures arising from credit cards. Report the total amount outstanding of all funds advanced under these credit cards regardless of whether there is a period before interest charges are made.
Item 6.b: Other revolving credit plans (consumer)
Revolving consumer credit other than credit cards and other than real-estate-secured lines.
- Overdraft protection line of credit on a consumer checking account
- Unsecured personal line of credit
Watch out: A HELOC is real-estate secured, so it is 1.c.(1), never here. Unplanned consumer overdrafts go to 6.d.
Official MDRM definition
LOANS TO INDIVIDUALS FOR HOUSEHOLD, FAMILY, AND OTHER PERSONAL EXPENDITURES (I.E., CONSUMER LOANS) (INCLUDES PURCHASED PAPER): OTHER REVOLVING CREDIT PLANS
All extensions of credit to individuals for household, family, and other personal expenditures arising from prearranged overdraft plans and other revolving credit plans not accessed by credit cards.
Item 6.c: Automobile loans (consumer)
Consumer loans for the purchase of private passenger vehicles, including purchased/indirect auto paper.
- New or used car loan to an individual
- Indirect auto loan purchased from a dealer
- Light truck or SUV loan for personal use
Watch out: RVs, boats, and motorcycles are NOT automobile loans, they go to 6.d other consumer. A vehicle loan to a business is C&I.
Official MDRM definition
AUTOMOBILE LOANS TO INDIVIDUALS FOR HOUSEHOLD, FAMILY, AND OTHER PERSONAL EXPENDITURES (I.E., CONSUMER LOANS) (INCLUDES PURCHASED PAPER)
All consumer loans arising from retail sales of new and used passenger cars and other vehicles such as minivans, vans, sport-utility vehicles, pickup trucks, and similar light trucks for personal use, both direct and indirect loans, and retail installment sales paper purchased from automobile dealers. Excludes loans for motorcycles, recreational vehicles, golf carts, boats, and airplanes.
Item 6.d: Other consumer loans
All other loans to individuals for personal expenditure: single payment, installment, and all student loans.
- Unsecured personal installment loan
- Student loan
- Boat, RV, or motorcycle loan
- Share/deposit-secured consumer loan
- Unplanned overdraft of a consumer checking account
- Chattel-only manufactured home loan
Watch out: A manufactured/mobile home loan is consumer only when NOT secured by real estate; once land is part of the collateral it is a 1-4 family loan in item 1.c.
Official MDRM definition
OTHER CONSUMER LOANS TO INDIVIDUALS FOR HOUSEHOLD, FAMILY, AND OTHER PERSONAL EXPENDITURES (INCLUDES SINGLE PAYMENT, INSTALLMENT, AND ALL STUDENT LOANS)
All other loans to individuals for household, family, and other personal expenditures (other than those that meet the definition of a 'loan secured by real estate' and those for purchasing or carrying securities), including purchases of household appliances, furniture, trailers, and boats; repairs or improvements to the borrower's residence not secured by real estate; and educational expenses, including student loans.
Item 7: Loans to foreign governments and official institutions
Loans to foreign governments, central banks, and official institutions.
- Loan to a foreign central bank or government agency
Official MDRM definition
LOANS TO FOREIGN GOVERNMENTS AND OFFICIAL INSTITUTIONS
Item 8: Obligations of states and political subdivisions in the U.S.
Loans to (and non-security obligations of) U.S. states, counties, cities, and other political subdivisions, other than securities and leases.
- Direct loan to a municipality
- Tax-exempt loan to a school district or utility district
- Fire district or water authority financing (loan form)
Watch out: Municipal SECURITIES belong on Schedule RC-B, not RC-C. Only loan-form obligations are reported here.
Official MDRM definition
OBLIGATIONS (OTHER THAN SECURITIES AND LEASES) OF STATES AND POLITICAL SUBDIVISIONS IN THE U.S.
All obligations of states and political subdivisions in the United States (including those secured by real estate), other than leases and other than obligations reported as securities. Includes the fifty states, the District of Columbia, and their counties, municipalities, and school districts.
Item 9.a: Loans to nondepository financial institutions (NDFIs)
Loans to nondepository financial institutions: mortgage companies, finance companies, insurance companies, private funds, REITs, broker-dealers, and other nonbank lenders.
- Warehouse line of credit to a mortgage company
- Loan to a consumer finance company or fintech lender
- Subscription/capital call line to a private fund
- Loan to an insurance company or REIT
- Credit to a broker-dealer
Watch out: NDFI lending is a current examiner focus, so classification here gets attention. A loan SECURED by real estate to a REIT still goes to item 1, the real-estate-secured test outranks the borrower type.
Official MDRM definition
LOANS TO NONDEPOSITORY FINANCIAL INSTITUTIONS AND OTHER LOANS: LOANS TO NONDEPOSITORY FINANCIAL INSTITUTIONS
Item 9.b: All other loans
Loans that fit no other RC-C category, including loans to nonprofits not secured by real estate and margin/securities-purpose lending.
- Margin loan / loan to purchase or carry securities
- Unsecured loan to a nonprofit organization
- Loan that fits no other RC-C category
Official MDRM definition
OTHER LOANS
Derived on the FFIEC 031 as the sum of loans for purchasing or carrying securities, including margin loans (1545), and all other loans excluding consumer loans (J451).
Item 10.a: Leases to individuals (consumer leases)
Lease financing receivables from leases to individuals for household, family, and other personal expenditures.
- Consumer automobile lease
Official MDRM definition
LEASES TO INDIVIDUALS FOR HOUSEHOLD, FAMILY, AND OTHER PERSONAL EXPENDITURES (I.E. CONSUMER LEASES)
All outstanding balances relating to direct financing and leveraged leases on property acquired for leasing to individuals for household, family, and other personal expenditures.
Item 10.b: All other leases
All other lease financing receivables, net of unearned income.
- Equipment lease to a business
- Commercial vehicle or machinery lease
Watch out: Leases are their own category: an equipment LEASE to a business is item 10.b, not C&I, even though an equipment LOAN would be item 4.
Official MDRM definition
ALL OTHER LEASE FINANCING RECEIVABLES
All outstanding balances relating to all other direct financing and leveraged leases on property acquired for leasing to lessees other than for household, family, and other personal expenditure purposes.
Item 11: LESS: Any unearned income on loans reflected in items 1-9
Unearned income included in the loan balances above, deducted to get to the net total.
- Unearned income on precomputed installment loans
Official MDRM definition
UNEARNED INCOME ON LOANS
Unearned income only to the extent that it is included in the various loan items above. For banks that report each loan line net of unearned income, this item will be zero. Excludes unearned income on lease financing receivables.
Item 12: Total loans and leases held for investment and held for sale
Total loans and leases held for investment and held for sale. Ties to Schedule RC, items 4.a plus 4.b.
- Total loans and leases, net of unearned income
Official MDRM definition
TOTAL LOANS AND LEASES, NET OF UNEARNED INCOME
The sum of items 1 through 10 minus item 11, total loans and leases, net of unearned income.
Not RC-C: Federal funds sold and reverse repos
Schedule RC, item 3 FFIEC 031, 041, 051
Federal funds sold and securities purchased under agreements to resell are reported on the balance sheet (Schedule RC, item 3), not as loans on RC-C.
- Fed funds sold to a correspondent
- Reverse repurchase agreement
Not RC-C: Loans held for trading
Schedule RC-D / RC item 5 FFIEC 031, 041
Loans held for trading are reported as trading assets (Schedule RC, item 5, and Schedule RC-D where applicable), not on Schedule RC-C.
- Residential mortgages held in a trading account
Not RC-C: Unused commitments and letters of credit
Schedule RC-L FFIEC 031, 041, 051
Off-balance-sheet exposure, unused loan commitments, unused HELOC commitments (RCON3814), and standby/commercial letters of credit, is reported on Schedule RC-L, not RC-C.
- Unused portion of a line of credit
- Standby letter of credit
- Unfunded construction commitment
Not RC-C: Past due, nonaccrual, and charge-offs
Schedules RC-N and RI-B FFIEC 031, 041, 051
Past due and nonaccrual status is reported on Schedule RC-N; charge-offs and recoveries on Schedule RI-B, both broken out using the same loan categories as RC-C.
- 90 days past due loan reporting
- Nonaccrual loan reporting
- Charge-off of a loan balance