FINANCIAL INSTITUTION REPORTS

Federal Financial Institutions Examination Council

3501 Fairfax Drive - Room B7081a - Arlington, VA 22226-3550 - (703) 516-5588 - FAX (703) 562-6446 - http://www.ffiec.gov

TO: CHIEF EXECUTIVE OFFICER (also of interest to Chief Financial Officer)

SUBJECT: Revisions to the Consolidated Reports of Condition and Income and the FFIEC 101 Report

The Federal Financial Institutions Examination Council (FFIEC) has approved revisions to the Consolidated Reports of Condition and Income (Call Report) that will take effect March 31, 2014, and March 31, 2015. The Call Report revisions include certain reporting changes proposed by the FFIEC's member agencies in February 2013 (see FIL-8-2013, dated March 8, 2013). The FFIEC and the agencies have modified these proposed reporting changes in response to comments received on the proposal, including concerns about reporting burden.

The FFIEC and the agencies also have finalized changes to the regulatory capital components and ratios portion of Call Report Schedule RC-R, Regulatory Capital, and revisions to the FFIEC 101, Regulatory Capital Reporting for Institutions Subject to the Advanced Capital Adequacy Framework, which were proposed in August 2013 (see FIL-41-2013, dated September 24, 2013). The FFIEC 101 report is completed only by advanced approaches institutions. In general, an advanced approaches institution has consolidated total assets of $250 billion or more or consolidated total on-balance sheet foreign exposure of $10 billion or more, is a subsidiary of a depository institution or holding company that is an advanced approaches institution, or has elected to use the advanced approaches to calculate its total risk-weighted assets. The U.S. Office of Management and Budget must approve all of the revisions to the Call Report and the FFIEC 101 before they become final.

The reporting changes to Call Report schedules other than Schedule RC-R, which would involve quarterly reporting unless otherwise indicated, are summarized as follows:

• Effective March 31, 2014, institutions would begin to report:
  • Information about international remittance transfers, which would be collected initially as of March 31, 2014, and, in general, semiannually thereafter as of each June 30 and December 31 (new item 16 of Schedule RC-M, Memoranda). All institutions would respond to yes-no questions about remittance transfer activity, and institutions with more than 100 transactions per calendar year would report the estimated number and dollar value of remittance transfers;
  • Any trade names (other than an institution's legal title) used to identify physical offices and the addresses of any public-facing Internet Web sites (other than the institution's primary Internet Web site address, which is currently reported) at which the institution accepts or solicits deposits from the public (revised item 8 of Schedule RC-M);
  • A response to a yes-no question asking whether the reporting institution offers any deposit account products (other than time deposits) primarily intended for consumers (new Memorandum item 5 of Schedule RC-E, Deposit Liabilities); and
  • For institutions with $1 billion or more in total assets that offer one or more deposit account products (other than time deposits) primarily intended for consumers, the total balances of these consumer deposit account products (new Memorandum items 6 and 7 of Schedule RC-E).
• Effective March 31, 2015, institutions with $1 billion or more in total assets that offer one or more deposit account products (other than time deposits) primarily intended for consumers would begin to report the amount of income earned from each of three categories of service charges on their consumer deposit account products (new Memorandum item 15 of Schedule RI, Income Statement). This income is included in total year-to-date service charges on deposit accounts.

The revisions to Call Report Schedule RC-R and the FFIEC 101 are consistent with the revised regulatory capital rules approved by the federal banking agencies during July 2013. The regulatory capital components and ratios portion of Schedule RC-R would be aligned with the revised rules and would include these changes:

• Existing items 1 through 33 of Schedule RC-R would be designated Part I.A, Regulatory Capital Components and Ratios, in March 2014. All institutions except advanced approaches institutions would complete Part I.A in their Call Reports for March 31 through December 31, 2014. No changes would be made to Part I.A in 2014.
• A new Part I.B, Regulatory Capital Components and Ratios, would be added to Schedule RC-R in March 2014. Advanced approaches institutions would complete Part I.B in their Call Reports for March 31 through December 31, 2014.
• Effective March 31, 2015, Part I.A would be removed from Schedule RC-R and Part I.B would be designated Part I, Regulatory Capital Components and Ratios. All institutions would then complete Part I of the schedule.

In addition, existing items 34 through 62 and Memorandum items 1 and 2 of Schedule RC-R would be designated Part II, Risk-Weighted Assets, in March 2014. No changes would be made in 2014 to Part II, which all institutions would complete in their Call Reports for March 31 through December 31, 2014. The agencies expect to request comment in the first quarter of 2014 on a proposal to implement a revised version of Part II of Schedule RC-R in March 2015 that would incorporate the standardized approach for calculating risk-weighted assets under the revised regulatory capital rules. The revised version of Part II would be completed by all institutions beginning with the Call Report for March 31, 2015.

The changes to the FFIEC 101, which is completed only by advanced approaches institutions, would take effect March 31, 2014. As revised, FFIEC 101 Schedule A, Advanced Approaches Regulatory Capital, incorporates the capital disclosure template adopted by the Basel Committee on Banking Supervision in June 2012 and includes certain additional items, such as the supplementary leverage ratio. In addition, changes have been made to nine of the risk weighted assets schedules in the FFIEC 101 to implement the revised rules that apply to advanced approaches institutions in 2014.

To help you understand the changes to the Call Report, drafts of the revised Call Report schedules and draft instructions for the new and revised Call Report items are available on the FFIEC's Web site (www.ffiec.gov/ffiec_report_forms.htm) and the Federal Deposit Insurance Corporation's (FDIC) Web site (www.fdic.gov/callreports). Drafts of the revised FFIEC 101 report and its instructions also can be accessed on the FFIEC's Web site. As is customary, for the March 31, 2014, and March 31, 2015, report dates, as applicable, institutions may provide reasonable estimates for any new or revised Call Report and FFIEC 101 items initially required to be reported as of that date for which the requested information is not readily available.

Please forward this letter to the person responsible for preparing the Call Report and, if applicable, the FFIEC 101 at your institution. For further information about the revisions to these two reports, state member banks should contact their Federal Reserve District Bank; national banks and federal savings associations should contact the Office of the Comptroller of the Currency's Office of the Chief Accountant in Washington, D.C., by telephone at (202) 649-6994 or by e-mail at callreportstaskforce@occ.treas.gov; and FDIC-supervised banks and savings associations should contact the FDIC's Data Collection and Analysis Section in Washington, D.C., by telephone at (800) 688-FDIC (3342) or by e-mail at insurance-research@fdic.gov for the Call Report, and the FDIC's Capital Markets Branch in Washington, D.C., by telephone at (202) 898-6888 or by e-mail at regulatorycapital@fdic.gov for the FFIEC 101.

Judith E. Dupré
Executive Secretary

Distribution

FDIC-Supervised Banks (Commercial and Savings), National Institutions, State Member Institutions, and Savings Associations