Call Report for Banks - Recent Changes, Highlights, and Pitfalls

In January, 2016 the Agencies again delayed implementation of proposed changes to the 2016 Call Report. Proposed revisions to the December, 2015 and March, 2016 Call Reports will be effective no sooner than the September, 2016 Call Report.

The Agencies propose deleting certain items on RI related to Other Than Temporary Impairment, and items on schedules RC-C and RC-N related to certain restructured loans. New thresholds are proposed for reporting on RI-E, RC-F, and RC-G, along with additional preprinted captions. In addition, the Agencies propose increasing the deposit size threshold from $100,000 to $250,000 on RI, RC-E, and RC-K. The Agencies are considering a less burdensome version of the Call Report for institutions that meet certain criteria.

The Agencies visited with a limited number of banks during third quarter 2015 to see how the banks prepare their call report and where a significant amount of time and/or manual processes are required. Basel III risk-based capital changes became effective with the first call report filing in 2015. The line items related to the Capital Conservation Buffer must be completed in March, 2016. Clarifications on the risk reporting of loan categories, unused commitments, and interest rate locks will be reviewed.

We'll review the proposed changes, along with updates on some of the RC-R risk-based capital items, and other announced changes or updates due to revisions in accounting standards.

Covered Topics:

2016 Proposed Revisions:

  • Eliminating certain items on Other than temporary impairment, certain restructured loans, certain assets covered by loss sharing agreements
  • Increases in reporting thresholds from $25,000 to $100,000 on RI-E, RC-D, RC-F, RC-G, RC-Q
  • Instruction updates on:
    • Home equity lines that convert from revolving to non-revolving
    • Securities for which a fair value option is elected
    • Net gains/losses and OTTI on equity securities that do not have readily determinable fair values
  • Increasing deposit size threshold used to report certain deposit information from $100,000 to $250,000 in RC-E, RI, and RC-K
  • Adding contact information for CEO
  • Adding additional preprinted captions in RC-F and RI-E
  • Revision of statements used to describe audit work on RC M1
  • Deleting RI 11, extraordinary items

RC-R Risk Based Capital:
  • New line items must be completed in 2016 for the Capital Conservation Buffer
  • Clarifications on risk weighting of loan categories, unused commitments, and interest rate locks

Who Should Attend?

This update will benefit more experienced Call Report preparers, reviewers, and auditors. It will supplement annual comprehensive Call Report training recommended by bank regulators.

"This is a good education source for call report preparation in the webinar format. Thank you so much." - Yu C., First Commercial Bank (USA)