Schedule HC-N: Past Due and Nonaccrual Loans Guide¶
Form: FR Y-9C (Consolidated Financial Statements for Holding Companies) Schedule: HC-N - Past Due and Nonaccrual Loans, Leases, and Other Assets Frequency: Quarterly Purpose: Detail asset quality by delinquency status across all loan categories
Overview¶
Schedule HC-N provides a matrix of loan quality, breaking down each loan category from HC-C by delinquency bucket: - 30-89 days past due (Column A) - 90 or more days past due and still accruing (Column B) - Nonaccrual (Column C)
This schedule is essential for credit risk analysis and early warning detection.
Delinquency Classification¶
Column A: 30-89 Days Past Due¶
Loans where payment is 30-89 days late but still accruing interest.
Regulatory Significance: Early warning indicator; "criticized" classification
Column B: 90+ Days Past Due and Still Accruing¶
Loans 90+ days late but still accruing interest. Generally requires: - Well-secured and in process of collection, OR - Consumer loans (auto, credit card) where collection expected
Column C: Nonaccrual¶
Loans where interest accrual has stopped due to: - Full repayment of principal and interest is not expected - Payment is 90+ days past due (unless well-secured) - Designated as troubled debt restructuring (TDR)
Schedule Structure¶
LOAN CATEGORIES (rows mirror current HC-C)
├── Item 1: Loans secured by real estate
│ ├── 1.a: Construction — 1.a.(1) 1-4 family, 1.a.(2) other/land dev
│ ├── 1.b: Farmland (domestic offices)
│ ├── 1.c.(1): Revolving open-end 1-4 family (HELOCs)
│ ├── 1.c.(2): Closed-end 1-4 family — (a) first liens, (b) junior liens
│ ├── 1.d: Multifamily (5+) residential (domestic offices)
│ ├── 1.e: Nonfarm nonresidential — 1.e.(1) owner-occ, 1.e.(2) other
│ └── 1.f: RE loans in foreign offices
├── Item 2: Loans to depository institutions — 2.a US banks, 2.b foreign banks
├── Item 3: Agricultural production / loans to farmers
├── Item 4: Commercial and industrial loans (single line; no US/non-US split)
├── Item 5: Loans to individuals
│ ├── 5.a: Credit cards
│ ├── 5.b: Automobile loans
│ └── 5.c: Other consumer loans
├── Item 6: Loans to foreign governments
├── Item 7: All other loans
├── Item 8: Leases — 8.a consumer, 8.b other, 8.c lease finance receivables (HCs < $5B)
├── Item 9: Total loans and leases (sum of items 1-8.b)
├── Item 10: Debt securities and other assets
├── Item 11-12: U.S. Government-guaranteed / FDIC loss-share covered portions
└── Memoranda M.1-M.9 (loan modifications, CRE finance, non-US, HFS/FV, etc.)
MDRM Matrix (Key Categories)¶
Real Estate Loans (current codes)¶
| Category | 30-89 Days (A) | 90+ Days (B) | Nonaccrual (C) |
|---|---|---|---|
| 1.a.(1) 1-4 family construction | BHCKF172 | BHCKF174 | BHCKF176 |
| 1.a.(2) Other construction/land dev | BHCKF173 | BHCKF175 | BHCKF177 |
| 1.b Farmland | BHCK3493 | BHCK3494 | BHCK3495 |
| 1.c.(1) HELOCs | BHCK5398 | BHCK5399 | BHCK5400 |
| 1.c.(2)(a) Closed-end 1-4 first lien | BHCKC236 | BHCKC237 | BHCKC229 |
| 1.c.(2)(b) Closed-end 1-4 junior lien | BHCKC238 | BHCKC239 | BHCKC230 |
| 1.d Multifamily | BHCK3499 | BHCK3500 | BHCK3501 |
| 1.e.(1) Owner-occupied CRE | BHCKF178 | BHCKF180 | BHCKF182 |
| 1.e.(2) Other nonfarm nonres CRE | BHCKF179 | BHCKF181 | BHCKF183 |
Commercial and Consumer Loans (current codes)¶
| Category | 30-89 Days (A) | 90+ Days (B) | Nonaccrual (C) |
|---|---|---|---|
| 2.a US depository institutions | BHCK5377 | BHCK5378 | BHCK5379 |
| 2.b Foreign banks | BHCK5380 | BHCK5381 | BHCK5382 |
| 3 Ag production | BHCK1594 | BHCK1597 | BHCK1583 |
| 4 C&I | BHCK1606 | BHCK1607 | BHCK1608 |
| 5.a Credit cards | BHCKB575 | BHCKB576 | BHCKB577 |
| 5.b Auto loans | BHCKK213 | BHCKK214 | BHCKK215 |
| 5.c Other consumer | BHCKK216 | BHCKK217 | BHCKK218 |
| 8.a Consumer leases | BHCKF166 | BHCKF167 | BHCKF168 |
| 8.b Other leases | BHCKF169 | BHCKF170 | BHCKF171 |
Total Loans and Leases (item 9 — current codes)¶
| Metric | MDRM | Note |
|---|---|---|
| 30-89 days total | BHCK1406 | (legacy BHCK5524 discontinued 2017-12-31) |
| 90+ days total | BHCK1407 | (legacy BHCK5525 discontinued 2017-12-31) |
| Nonaccrual total | BHCK1403 | unchanged |
Key Asset Quality Metrics¶
Nonperforming Loans (NPL)¶
NPL = Nonaccrual + 90+ Days Still Accruing
= BHCK1403 + BHCK1407 (item 9 totals; or detailed sum)
NPL Ratio¶
NPL Ratio = NPL / Total Loans (HC-C Item 7)
= (BHCK1403 + BHCK1407) / BHCKB528
Typical ranges:
- Strong: < 1%
- Average: 1-2%
- Weak: > 3%
- Crisis: > 5%
Delinquency Rate (30+ Days)¶
Delinquency Rate = (30-89 + 90+ + Nonaccrual) / Total Loans
= (BHCK1406 + BHCK1407 + BHCK1403) / BHCKB528
Coverage Ratio¶
Coverage = Allowance for credit losses / NPL
= BHCT3123 / (BHCK1403 + BHCK1407)
Higher coverage = more reserved against expected losses
Texas Ratio¶
Texas Ratio = (NPL + OREO) / (Tangible Equity + Allowance)
= (BHCK1403 + BHCK1407 + BHCK2150) / (BHCT3210 - BHCK3163 + BHCT3123)
>100% = Potentially troubled
Reconciliation to HC-C¶
The row totals in HC-N (Column A + B + C for each category) should NOT exceed the corresponding HC-C balances, as they represent only the impaired portion.
HC-N RE sub-items (all columns) ≤ HC-C Item 1 (Real estate loans)
HC-N Item 4 (all columns) ≤ HC-C Item 4 (C&I loans)
HC-N Item 9 total (all columns) ≤ HC-C Item 7 (Total loans and leases)
etc.
Analytical Applications¶
Trend Analysis¶
Watch for:
- Rising 30-89 days → future NPL increases
- Migration from 30-89 → 90+ → Nonaccrual
- Concentration in specific loan types
Vintage Analysis¶
Combined with Call Report Schedule RC-M: - Track delinquency by origination year - Identify vintage-specific problems
Geographic/Industry Concentration¶
Combined with Call Report Schedule RC-C Part II: - Identify geographic hotspots - Industry-specific stress
Historical Context¶
2008-2010 Financial Crisis¶
Peak delinquency rates: - 1-4 family: 10%+ NPL ratio - CRE: 8%+ NPL ratio - Construction: 15%+ NPL ratio
COVID-19 (2020)¶
- Initial spike in early delinquencies
- Forbearance programs masked true delinquency
- TDR modifications increased
Current Environment¶
Monitor for: - CRE (especially office) stress - Rising consumer delinquencies - C&I credit deterioration
MDRM Quick Reference¶
| Category | 30-89 Days (A) | 90+ Days (B) | Nonaccrual (C) |
|---|---|---|---|
| 1.a.(1) 1-4 Family Construction | BHCKF172 | BHCKF174 | BHCKF176 |
| 1.c.(2)(a) Closed-end 1-4 First Lien | BHCKC236 | BHCKC237 | BHCKC229 |
| 1.e.(2) Other Nonfarm Nonres (CRE) | BHCKF179 | BHCKF181 | BHCKF183 |
| 4 C&I | BHCK1606 | BHCK1607 | BHCK1608 |
| 5.a Credit Card | BHCKB575 | BHCKB576 | BHCKB577 |
| 5.b Auto | BHCKK213 | BHCKK214 | BHCKK215 |
| 9 TOTAL loans & leases | BHCK1406 | BHCK1407 | BHCK1403 |
Legacy aggregate codes BHCK5526/1422/3492 (RE total) and BHCK5524/5525 (total 30-89 / 90+) were discontinued (2017 and earlier) and removed; the current form has no item-1 RE total and reports the total at item 9.
Last Updated: 2026-06-11 (v8 conceptual-accuracy sweep; rebuilt to current 148-cell HC-N spec, verified vs MDRM + warehouse) Reference: FR Y-9C Instructions (current form, March 2026 field spec)