When I prepare the Part 365 report and determine the limits, I use the number on the FFIEC 041 Call Report Schedule RC-R, line item 21 "Total Risk Based Capital." I am at a state non-member bank.
The calculation for Total Risk Based Capital can be followed on Schedule RC-R, and it encompasses many things. It does include, in addition to other things, the "allowable Tier 2 Capital" which is, amongst other things, the Allowance for Loan Loss Balance that is eligible for inclusion (1.25% of Total Risk Weighted Assets). I have found it very difficult to calculate Total Risk-Based Capital without the Call Report since it is dependent on the amount of ALLL eligible for inclusion and this number is not available unless you go through the risk-weighting of assets process.
Last edited by JenHack; 08/13/12 08:29 PM.