Federal Financial Institutions Examination Council
3501 Fairfax Drive - Room D8073a - Arlington, VA 22226-3550 - (703) 516-5588 - FAX (703) 562-6446 - http://www.ffiec.gov
September 18, 2007
CHIEF EXECUTIVE OFFICER (also of interest to Chief Financial Officer)
Proposed Revisions to Reports of Condition and Income (Call Report) for 2008
The Office of the Comptroller of the Currency (OCC), the Federal Reserve Board (Board), and the
Federal Deposit Insurance Corporation (FDIC) (the banking agencies) are requesting comment on
several proposed revisions to the Call Report. The proposed reporting changes, which have been
approved by the Federal Financial Institutions Examination Council (FFIEC), would take effect as of
March 31, 2008. The agencies encourage you to review the proposal and comment on those aspects
that are of interest to you. Comments may be sent to any or all of the agencies by the methods
described in the attached Federal Register notice. All comments will be shared among the agencies and
should be submitted by November 13, 2007. The FFIEC and the agencies will consider all of the
comments as they finalize the revisions to the Call Report.
The banking agencies are proposing to implement a number of reporting changes related to 1-4 family
residential mortgage loans such as reporting interest and fee income on and the quarterly average for
such mortgages separately from income on and the quarterly average for all other real estate loans. The
agencies would also add new items for restructured troubled mortgages and mortgage loans in process
of foreclosure. Call Report Schedule RC-P on closed-end 1-4 family residential mortgage banking
activities, which is completed by larger banks and smaller banks with a significant level of such activities,
would be expanded to include originations, purchases, and sales of open-end mortgages as well as
closed-end and open-end mortgage loan repurchases and indemnifications during the quarter.
The Call Report's trading account definition would be modified in response to the creation of a fair
value option in generally accepted accounting principles. Schedule RC-Q, which collects data on fair
value measurements for trading assets and liabilities and other assets and liabilities accounted for under a
fair value option, and certain other schedules, including the loan schedule (Schedule RC-C), would also
be revised to enhance the information available on instruments accounted for under this option.
Revisions would also be made to the schedule on trading assets and liabilities (Schedule RC-D), which
is completed only by banks whose trading assets exceed a specified threshold, the measurement of
which would be slightly modified. The Call Report instructions for reporting credit derivative data in the
risk-based capital schedule (Schedule RC-R) would be clarified and a corresponding change would be
made to the schedule itself.
In addition, the threshold for reporting significant items of other noninterest income and expense in the
explanations schedule (Schedule RI-E) would be adjusted. The instructions for reporting fully insured
brokered deposits in Schedule RC-E, Deposit Liabilities, would be revised to conform to the
instructions for reporting time deposits in this schedule. Finally, the banking agencies are proposing to
revise the Call Report instructions for reporting daily average deposit data by newly insured institutions
for deposit insurance assessment purposes in Schedule RC-O to conform these instructions with the
FDIC's assessment regulations (12 CFR Part 327). The Office of Thrift Supervision is proposing to
make an identical instructional revision for daily average deposit reporting in the Thrift Financial Report.
The banking agencies are also seeking comment on a plan to discontinue the mailing of paper Call
Report forms and instructions to banks. The Call Report forms and the instructions are available on the
FFIEC's Web site (http://www.ffiec.gov/ffiec_report_forms.htm) and the FDIC's Web site
(http://www.fdic.gov/regulations/resources/call/index.html) each quarter before any mailings of the paper
forms and instructions are completed. A paper copy of the report forms and instructions can be printed
from the Web sites. In addition, banks that use Call Report software generally can print paper copies
of blank forms from their software.
To assist you in understanding the proposed changes to the Call Report, drafts of the March 2008 Call
Report forms are available for your review on the FFIEC's Web site
(www.ffiec.gov/ffiec_report_forms.htm). The draft forms also illustrate other Call Report revisions that
were previously approved for implementation in March 2008. These revisions involve the reporting of
deposit data for deposit insurance assessment purposes in Schedule RC-O (see FIL-21-2007, dated
March 2, 2007) and, for certain banks with less than $300 million in assets, data on construction, land
development, and other land loans; nonfarm nonresidential real estate loans; and related loan
commitments (see FIL-7-2006, dated January 27, 2006). Draft instructions for the changes proposed
for March 2008 will be posted on the FFIEC's Web site for your review at a later date.
For further information about the proposed reporting revisions, please contact Gary Christensen at
the OCC (202-874-4482), Arthur Lindo at the Board (202-452-2695), or Robert Storch at the FDIC