I'm verifying revenues reported on all of our 2017 CRA reportable loans. I'm coming across several where the lender used figures from YTD financial statements. I was always under the impression we should use revenue from tax returns as this is an accurate and annual figure.

Can we report the sales listed on a financial statement or should I use revenue code 3 since no tax returns were provided?

Trace to either as long as you are using gross annual revenue. If the financials are YTD but only consist of 9 months, do not use.

I agree with Tennismom. As long as you can tie back to an annual revenue, you're good. Avoid projections or any partial year numbers.

Can I ask a follow up to this?
Current year to date revenue (as of October) is 910,000.
Last year was 777,000.
Prior year was 1,400,000.

Would I report as a 1 or 2?
Is there some guidance I can look to on this? Is it just the prior year? or past 2?
Thanks!

The reporting guide says the revenue used in the credit decision (paraphrasing from memory)...I'd ask your lender if it's not clearly documented in their credit memo. An internal procedure, maybe to use/report the most recent in file might help.

Note: Cannot use YTD revenues unless it is the fiscal year end for the company. The only time a partial year can be used is for start -up businesses.

You may want to go to the FFIEC site and look at the guidance document.