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BOARD OF GOVERNORS
R-366
Dr THE
274
FEDERAL RESERVE SYSTEM
WASHINGTON
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 22, 1958.
Dear Sir:
There have been forwarded to you today under separate cover
copies of Form FR 107 to be used by State bank members in submitting their reports of earnings and dividends for the six months
{mding December 51, 1958.
The form has been revised by eliminating three interest items,
and by rearranging tho reserve items in sections 2 and 5 so as to conform to the revised form of condition report, FR 105.
The arnount of 11 ReserVt3S for contingencies" reported against
i tern 16 (d) of revised .Form E'R 107 should agree with the amount of the
corresponding item in Schedule G of the r<:>vised form of condition report. If the amount heretofore reported as 11 ReserVE3S for contingencies"
in earnings and dividends reports has included any valuation allowances
which in the condition reports have been deducted from assets, an appropriate adjustment should be made in the next report on Form FR 107.
The adju;Jtment may be reported under item 6 (d) of Form FR 107 against
such a caption as "Valuatton allowances heretofore included in reserves
for contingencies". If, however, tl1e amount is substantial and the
bank so desires, the adjustment may be effected by interlining a new
item following item 9 reading "Deduction on account of valuationallowances heretofore included in reserves for contingencies". In
either case the amou.11t wl thdra~m from "Reserves for contingencies"
should be included in item lO(d). Definitions of the terms "Reserves
for contl.ngencies" and "Valuation allowances" are contained in the
parnphle".::, of instructions, Form F'R 105a, governing the preparation of
reports of condition of State bank members, copies of which are being
sent to you for uoe in connection with the next call for condition
rC:ports.
TO PRESIDENTS
L. P. Bethea,
Assir.::tant Secretary.
OF ALL FEDERAL RLSEHVE BAL\IKS
@FedFRASER